Elude people . Why do the talking heads focus fed tapering or even syria when what matters is the recovery in the two regions of the world that used to produce terrific earnings for so Many American companies and thats why the market rallied today. Sure, it helped that maybe there will be no war with syria, but wait a second. This is about international. The dow gaining 141 points about the International Companies in the dow. The nasdaq falling 1. 2 . Nasdaq 100, highest level since november of 2000. Hallelujah lets acknowledge that china and europe are returning, please. Why is that so hard . Weve had so fabulous news out of china excellent stories about target and infrastructure spending. 128 last time and that was like a 10 move. Now on top of all of this, a fantastic chinese export number, 7. 2 growth versus the 6 many were expecting. Just when people had given up on china, and so many other his started to believe that seethrough buildings are the landmark and hallmark of the chinese economy, were seeing extraordinary growth spurt. No wonder the fxi has broken out here. Stands to reason when you put the economic puzzles together. We dont see some electric number out of europe and maybe a better than expected european pmi. They have to produce better retail sales down the road or how about the little notice and the greek Prime Minister saying, the most bedraggled country in all of europe may be back in growth mode . Hes confident that 2014 will bring the turn after six straight years of recession. Spains been making similar noises. The rebound, its real. Of course, we always have to recall that china and europe are joined at the hip. The chinese export number, no doubt boosted by europe, 25 of chinese exports go to europe. The markets been hideous and its one of the main reasons china had to look inward for growth. They didnt have the export markets and they didnt build inward. It was less inflationary and more sustainable. One of the principal worries, and given that these turns arent the focus of most investors because theyre so focused on the tea leaves or the fed. They are no more being focused on now than when they were first happening november in 2011. It isnt surprising that they arent being factored into the calculous of most american stocks right now because they werent when things started going bad. Hey i think its a big mistake. Why in let me first tell you anecdotally how important this turn in europe is. A couple of years ago we went to the plant in dearborn, michigan that makes the f150. Al mulally was there. Hey, good news that hes not going microsoft. I was all bowled up about ford as we say in the trading desk and thinking they were at 5 bucks a share. The stock was breaking up at 18 and i was thinking imyou have prooing balance sheet, growing dividend and this could be the stock for the next couple of years. I was dead wrong. Dead wrong. Ford would be cut in half in ten months because as the company was in the downturn it was clueless about the european weakness ahead. Maybe ford was paying too much attention and they were being put through perhaps the worst central banker, who as European CentralBank President was worried about inflation when deflation was knocking at the door. It went from a huge win to a colossal loss, and thats the case now, though. But is ford back above the 18 level when europe started falling apart . Hardly, although the stock is closing in on it. My question is why shouldnt ford be able to take out that 18 level, the problem that europe is now turning and the American Market is the strongest its been in years or how about etn, sandy who comes on the show was upgraded from hold to buy by morgan stanley. Etn has been in the doghouse since it guided in the last quarter. What happens if it turns into a tailwind with the genuine rebound in business. You dont want to overlook asia for eaton. It came before the negative guidance, it, like ford, could be breaking out here. Now think about all of the u. S. Companies that are levered to china. Not that long ago jim chanos lowered the boom, when david faber asked him about it, he called, chanos called the hushlg machinery maker a master short and thought it would have been one of the best shorts in ages and i dont know if he was long, but the stock did subsequently drop and a turn in china where caterpillar was dramatically overinventoried could be huge for cat and any better orders out of china will be the worstperforming dow stock. Perhaps more. How about cummins, cmi. And cummins is relying on china for the upside. All right. Lets talk about the elephant in the room. Tomorrows big launch is all about a new, cheaper iphone. It dove tails nicely. And the next day with china mobile. A gigantic chinese carrier that has not been a friend of apples. Talk about a reason for the naysayer analysts to upgrade and raise targets and oh, boy, are you ever going to hear that, and maybe you dont recall, the analysts gave the company a real beatdown over a lack of chinese customers. This, less expensive phone is the answer to the naysayers for apple. Best of all, it could be joy global. It gave hideous guidance. Mike sunderland here today and then you can see the numbers. Oh, man, that was awful. And what has joy global done after that miss as well as multiple downgrades . How about beaten up a buck . What does that tell you . Doesnt that mean the stock has bottomed with the worst quarter and worst guidance. You know what i mean, the orders. The orders were hideous and to me that smells like a bottom. Dont forget, china opens a new coalfired power plant every ten days. Yeah. Ten days. You needy jos equipment to get it out of the ground and the new government in australia and it seems to care about not just the environment. We all want to care about the environment, but about jobs. That means more business for joy, and i am calling that last quarter a tough quarter and thats why joy is more aggressive in the new buyback. There are so many other implications to get the turning point in china. Could that be why fedex doesnt come in despite the quarters . How about csx that was breaking out today. Theres a possibility to an end for the food and Drug Companies that endured endless earnings where the euro is translated into dollars. It could now bounce back. Notably, the poorly performing cisco and the slow going google and google is a huge business in europe. For china, theres a gigantic potential gain for general motors. As does nike. Take one look at yum, parent of kfc, stumbled badly again and the number that you got. What happened . The stock flew up because people want to believe the best about china. People were blind to the changes and these two hushlg markets will miss the federal reserve. Whatever setback we may have with the messy economy because of higher rates can be made up by europe and china. It just wont be the same stocks. He can substitute it for the homebuilders and the Interest Rates went down a little bit and go with the multinational banks and the domestic banks and pick the tech over to europe. Heres the bottom line. You die by the europe and china sword. You live by the europe and china sword. Right now the socialists in europe and communists in china are bailing out the latestage capitalists in the united states. It couldnt come at a better time. Tom in colorado. Tom hey, this is tom. Big booyah to you from boulder, colorado. Man, i know. I like peyton. Peyton looks good. Whats up . I saw lululemon was upgraded today and i bought it in the low 80s before the deluge and then again in the low 60s. My question is do you think the management of this company can get it together and take lulu to the next level . I was going back and forth at the open house at real money. Com that was free thisec wooend and bob said that lulu was going to break out. I was questioning it because Christine Day who is the person who runs it is not going to be running it anymore. They have some momentum there. They do report this week that makes it five below is my pick of the week, not lulu, but i think look, the stock is signalling that the quarter is better and that may be a false tell. I am not going to get behind lulu until i see how the ceo transition takes place. Im sorry. Im sure ill miss a couple of points here. How about pierce in texas, pierce . Thanks for the investments. Of course. The stocks up over a lot in the past year. And its at a 52week high. What do you think . I think it goes much higher. I think its one of those stocks thats in the sweet spot. It reminds me what weed that about radiant and jen worth. Remember what ocwen spells backward. It spells nuco. Jimbo, a happy booyah to you, my friend. . Next time we talk, well either be 10 or 01. Whats up . . Its only a matter of hours. Hey, listen. Thanks for taking my call. I want to ask you about prudential. Prudential and other life insurers comes up as Interest Rates go up and ive liked prudential for a while, and theres also the only life insurer that challenged systemically, and i was wondering what your thoughts are on the whole for buying it, holding it, and the risk associated with it. Why do i not want to buy it . Because my Charitable Trust thinks that aig, stephanie and i go back and forth with this. We think that aig has got catalysts. It does not have catalyst, but i wouldnt sell it if i owned it. Live by the sword, die by the sword and then live by the sword again. Im talking about china and europe and were getting help from our pals overseas. Can you believe it . Theyve been such negatives theyre now positives. It couldnt have come at a better time. Mad money will be right back. Coming up, the right medicine . The cancerfighting biotech firm Seattle Genetics is tearing up the market. Surging over 90 this year, can this pipeline of therapies keep the bears at bay. Cramer is sitting down with the ceo to get this stock a checkup. And later, a cut above . Despite tough times for retail the Company Behind calvin, tommy and more has been bucking trends and strutting down the the wall street catwalk. Can the stock keep lining their portfolio with profits or is a markdown looming . Dont miss cramers earnings exclusive with the ceo of pvh. Plus, rising star . Born in beverly hills, Citi National bank is expanding to serve clients from coast to coast. Its 30 rise has investors saying hooray for hollywood, but can rising rates pull the red carpet from under it . Dont miss cramers exclusive all coming up on mad money. Dont miss a second of mad money. Follow jimcramer on twitter. Have a question . Tweet cramer, madtweets. Send jim an email to madmoney cnbc. Com or give us a call at 1800743cnbc. Miss something . Head to madmoney. Cnbc. Com. Ready to run your lines . Okay, who helps you focus on your recovery . Yo, yo, yo. Aflac. Wow. [ under his breath ] that was horrible. Pays you cash when youre sick or hurt . [ japanese accent ] aflac. Love it. [ under his breath ] hate it. Helps you focus on getting back to normal . [ as a Southern Belle ] aflac. [ as a cowboy ] aflac. [ sassily ] aflac. Uh huh. [ under his breath ] i am so fired. Youre on in 5, duck. [ male announcer ] when youre sick or hurt, aflac pays you cash. Find out more at aflac. Com. [ male announcer ] when youre sick or hurt, aflac pays you cash. Dont tell mom. Dont tell mom. Dont tell mom dont tell mom. Okay. Dont tell mom. Dont tell mom. Dont tell mom . Yeah. The best stories youll ever tell start with, dont tell. Dont tell dad. Start yours in the new santa fe. From hyundai. The 5. 5 billion there are biotech. You know ive been a big fan of this entire space. The company uses antibodybased technology to search and destroy cancer cells without causing Collateral Damage to healthy tissue thats nearby. Its a big step up from chemo therapy which is the medical equivalent of that vietnam story about detroying the village in order to save it. Sgen is everything we like in a biotech. The companys main product was approved for hodgkins lymphoma two years ago. It has 20 other Clinical Trials going studying this drug on various different forms of cancer. Four of these trials for phase three and that includes a tcell lymphoma. Thats not even the companies with big pharma players that could bring in billionses of dollars in milestone payments that could be one or two a year. S goshing en has given us an 88 gain since we spoke to the companys ceo just last december. It has more room to run so lets check in with dr. Clay segal. Hes the chairman, president and ceo of Seattle Genetics and find out more about where his company is headed. Welcome back to mad money. Nice to be here, jim. Have a seat. Thank you so much. Ive been thinking about this drug and all of the different applications. It seems like its a pipeline in itself. Yeah. As you said, we have over Clinical Trials along with etceteris and different settings and frontline therapy. So when youre first diagnosed. Our approval is hodgkins lymphoma and in the relapsed settings and were redefining what patients get in the front line. You did mention some of the doctors are trying to use it off label. Is this because its saving more lives than what theyre currently using . Its not a drug that gives you a little bit. This is something that safes lives and it is something that benefits a lot of patients. Were excited about it. E plain the difference between current therapy and your therapy and the first line and why you should be first line. You mentioned tcell lymphoma. It is treated about four drug cocktail or c. H. O. P. As its called and it gives you a 45 complete remission rate in tcell lymphoma patients. We did a leadin trial to our front line phase three trial and we showed that if you did etceteris plus chp. It causes neurotoxicity and we have an 88 cra, almost double so then we went to regulators and u. S. And europe and japan and were doing an International Stud ney 300 patients and 150 with c. H. O. P. And 150 with chp adcetris and we redefine therapy by making it less toxic. Would that be something that we find results then . Not for this specific trial. That will take longer. We submitted quite a few abstracts to the ash meetings in december and well have to see what gets accepted. You mentioned the submissions arent even here yet. They are due soon to ash, and who are they to accept or not accept . Well, ash gets loads of submissions. They cant accept everything that comes their way. They have to pick and choose, but we usually submit quite a few to ash and they have committees that accept them or not. They were due in august so we did our sub missions already. A lot of them have been coming public and a lot of them are raising cash. While some analysts think you to raise cash, its your discretion with these partnerships. Yeah. The partnerships have been great. Our Main Business is to develop drugs to treat patients that have lifethreatening diseases and have cancer and we have another part of the business and thats working with our technology and other companies and we are thrilled that we have 12 partners. We do about one to two partnerships per year and it puts our technology in your hand and that brings in substantial upfront money and royalties. Lets say for the tcell lymphoma. It would be 10 billion and youre keeping american right . Some of these you keep the american rights and you let oversea right goes to others . With our Technology Partnerships those are where the other company uses their own antibody and we use our technology and we have global rights and thats the technology pich. With adcetris we did a partnership with takeda and we own u. S. And canada and we have sales reps selling the product and we approved it now in over 35 country, the Millennium Group from takeda s. E. A. L. Sells it internationally and we get milestone payments and royalties. Phase one Clinical Trial of renal cell carcinoma. When i see phase one. It basically says three years before you see any results on this . Sometimes its quicker. We have seven products that we are developing in Clinical Trials and the first was for aml, acute my loma leukemia. We have a new one that just started in phase one that weve been working on for years, jim. One of the thing, some of the analysts a lot of people feel that literally that the cycle that everythings gotten overheated, and i get that, but regeneron and celgene, you guys have been delivering and i didnt really understand this, frankly. Included in the quarterly update we heard was that the fda will not consider label expansion for adcetres to include a retreatment claim at this time. It sounds thats not necessarily the case. What happened is we went to the fda with two data sets. One looking at getting rid of the 16cycle maximum which was a really critical one from a commercial standpoint and from putting this in the hands of the dollars to make decisions for their patients and then the other one we asked for was retreatment and we got the removal of the 16cycle cap which was actually much more important of the two. Okay. Because it made it like the more important one was retreatment and if the stock keeps going higher and higher and i have to find something bad to say because theyve been overrun by the goodness of your products. Thats what i think happened. Thats dr. Clay segal, chairman, president and ceo, and one of the biggest winners. They have one of the most amazing drugs currently on the market today. Stay with cramer. Coming up, a cut above . Despite tough times for retail, the Company Behind calvin, tommy and more has been bucking trends and strutting down the wall street catwalk. Can the stock keep lining your portfolio with profits or is a markdown looming . Dont miss cramers earnings exclusive with the ceo of pvh. This man is about to be the millionth customer. Would you mind if i go ahead of you . Instead we had someone go ahead of him and win fifty thousand dollars. Congratulations you are our one millionth customer. Nobody likes to miss out. Thats why ally treats all their customers the same. Whether youre the first or the millionth. If your bank doesnt think youre special anymore, you need an ally. Ally bank. Your money needs an ally. Especially today, as people are looking for more low, and no calorie options. Thats why on vending machines, were making it easy for people to know how many calories are in their favorite beverages, before they choose. And were offering more low calorie options, including over 70 in our innovative cocacola freestyle dispensers. Working with our Beverage Industry and restaurant partners, were helping provide choices that make sense for everyone. Because when people come together, good things happen. Weve been pointing out a major retail theme. The consumers in america seem to be holding back on apparel and maybe spending more on hard goods and that doesnt seem that all of the apparel stocks are hard. The Company Behind pvh and Tommy Hilfiger, and pvh is a major explosion in europe and something that could become a powerful positive and a tailwind and snot a headwind and the european economy is starting to roll. The company delivered twocent earnings beat off of the 37 basis and although the guidance was downbeat versus what some of the analysts had hoped for. As of today the stock is up 19 since we spoke to the ceo and that was just back in june 12th. The fabulous and bankable chairman to learn more about the quarter and whats next for his company. Manny, welcome back, to mad money. Thank you, great to see you. I have to admit, im confused because on the one hand, this is a fabulous quarter. Our results from the quarter is from the release and we were driven from the newly acquired business and the organic growth in Tommy Hilfiger. At the same time you then immediately say, look, dont get too excited. Which is it . Because youre excited and then we tell you not to be. Our performance was strong, but as theyre looking out into the Third Quarter of this year, were seeing a tremendous amount of volatility with the consumer around the world. We cant seem to get the consistency from the sales trend point of view. Traffic at stores and what we see walking through our doors, so were just not as bullish as weve been in the past coming into the quarter and i think now is an appropriate time to be somewhat have some caution as we think about the consumer and where were heading with it. I think its interesting because last year at this time you came on and a lot of people were saying the back to school is not that good and you said i dont know what theyre seeing, but were seeing strength. This year, a lot of my friends in apparel are saying its been tough. You seem to join them saying its been tough. I would have to say its tougher than we would have hoped. Calvin klein and the Tommy Hilfiger business in north america, and the comp trends are up 3 off of being up 6 or 7 in the Second Quarter and i you know, were just trying to understand better the sense of where the consumer is because when you look at the data, you would expect to see it somewhat more robust and right now the apparel area seems to be soft. Do you think this hard good reasoning that ive been using and i see the best buys doing well and i see some amazon stuff doing well and hard goods and autos doing well and theyre just spending at different places. I wish i had a crystal ball. Its really very tough because we came out of july. July was a weak month. Right. We came into august and we had a very strong month of august and the first ten days of september had been softer again and just trying to gain that consistency. So, you know, im more bullish about the Fourth Quarter considering some of the things were up against and it was a softer quarter for us and last year we had to deal with sandy and a number of issues and the Third Quarter, we put up big increases in the Third Quarter and were looking to put gains on top of that and right now were on track, and not to get ahead of ours to say well outperform. Weve been saying that we think europe is turning and it sounds like the companies that have been difficult in europe for you remain difficult. Southern europe continues to be a challenge for us and were looking at trends in Northern Europe that are pretty good and the numbers are 5 , 6 and particularly italy and spain which are big markets for us and were seeing a pullback in business and its driven by two things and the reduction and open to buy dollars by the wholesale accounts and the inability to sell some of the smallest Specialty Stores throughout Southern Europe that were just concerned about the credit situation. So we really have to be mindful as we go into those markets and italy is a very tough market for us right now. Okay. Now lets go back to the united states. You mentioned credit. At one point someone might have been concerned that jc penney which had big, big cuts, but it looks like olman is starting to get that thing better. Reading between the lines and i dont have visibility, as theyve started to see in product categories getting moren vents or on the floor to really start to sell the goods and put their sales philosophy back into effect and getting more promotional and delivering value to the consumer, i think theyre starting to see some good performance there, and were supportive of that and we think particularly for the Fourth Quarter, i think you could see positive results there. Putting the johnson stake in your behind them. Yes. And the inventory position and taking the strategic positions and they were well thought out and some of the tactical ways to get there just werent enough there to support the business. So i think mike has really brought that to the table and hopefully we could see a strong second half. People want them to win, dont they . I think they want to give them the chance. Hes a veteran in retail and some people felt the way he was treated was unfair and the way the company was treated is unfair and its a Great American retailer and it really belongs on the landscape in america. Im glad to hear you say that. Now, i saw a phrase in your release that bothered me. This is the one in calvin klein. We believe the investments we make today are, quote, necessary to rebuild this newly acquired business. It it does seem like that they just that calvin klein was poorly handled. The Calvin Klein Jeans has been a tough business for us and both in north america and in europe and those are areas that are really going require investments to get them back to their historical position in the market, and i think we feel very strongly about that from our longterm point of view and read that as 12 to 24 months, but in the short term, margin pressure moving through goods and repositioning the line here in america, and cleaning up the distribution to some of the accounts thats just not appropriate for it to be sold into here and in europe is a challenge for us. It seems like the other part, the legacy stuff, i dont know. Maybe its doing better because your Heritage Brand seemed to really benefit from a couple of brands that i thought were great that you got from warnaco. That is the warn errs business with a number of key retailers in north america. That continues to be good and our own wholesale heritage businesses, van heusen and izod in particular are very, very strock and the wholesale operating margins are over 12 and that, for us, is a strong performance. We heard from terry lundgren. He wasnt that happy with how apparel had done and he did say back to school was Getting Better and do you think theres a shift among the Department Stores and maybe jc penney making a comeback. When you look at all of your customers, someone is not doing as well as others or is it everybody is a little flat. Theres always winners and losers, but i think i would interpret it more that its a general malaise in the apparel sector for the last couple of months and im not specifically pointing to any one channel or customer. I think were just not seeing the strongest traffic that wed like to see, and i think as we get further into back to school and clearly in the holidays selling season i think the consumer will respond and right now we are still struggling with some of that and its just not as robust as wed like it to see. I wouldnt describe it as bad, id just say to you that ive been on here other times and im usually pretty transparent and i talked about the strength in the business and the underlying strength with the consumer and what im saying to you is im just not seeing that kind of strength globally. Its not just a north america issue and its a global issue and its more in that single digit kind of growth and we just dont see the strength that weve seen. All rid. Candid look at apparel. As always, youre straightforward with us. Chairman of pvh and lets not lose sight of the fact that it was a great quarter. Thank you, jim. [ tires screech ] [ male announcer ] 1. 21 gigawatts. Today, thats easy. 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Call Liberty Mutual insurance at. To speak with an Insurance Expert and ask about all the personalized savings available for when you get married, move into a new house, or add a car to your policy. Personalized coverage and savings all the things humans need to make our world a little less imperfect. Call. And ask about all the ways you could save. Liberty Mutual Insurance responsibility. Whats your policy . It is time it is time for the lightning round, buy, buy, buy, sell, sell, sell. [ indiscernible ] play until we hear this sound, and the lightning round is over, are you red, sady, skeedaddy . Well start with roy in oklahoma. Ill start with a big boo h booyah. Booyah. Im tired of making friends and ready to make some money. Avnr, i want you to tell me about it. I dont regard it as a roller coaster and its a great biotech. Well have to start taking profits in the bioteches and theyre getting a little hot. Right now theyre still okay. Andrew in maryland. Andrew a big booyah from baltimore, maryland and thank you. You have the best show on tv. Thank you, raven, still world champs and come on. Go ahead. What do you think of Fortress Investment group. I have to admit that the assets are starting to come to the fore and ive been negative about fortress and theyre getting their act together and ill start thinking that theyre a decent buy. Maybe west has to come off that wall of negativity. Lets go to kaizad from mississippi. Im from ocean springs, mississippi. Wow whats your take on hci group, buy, sell or i like the Homeowners Insurance business. Typically, i also like travelers, but i think youve got a winner here and you have to be careful of the insurers because a lot of people think that theyre late for the cycle, and i like them because theyre inexpensive. Lets go to scott in ohio. Scott this is an unstoppable booyah from toledo, ohio. Whats up . I have a question for you about p. R. I. , primer qaa, love your stock, but i want to get your stock. Its a good company. What am i going to tell you . I think that heres the problem with primerica. It is middle income and i like that group now. I just like it and its not ameriprise, which i really like. Lets go to chris in new york. Chris hey, jim, i have a question about davita. Im worried about davita because it has reimbursement issues and i would like to have them on the show to clarify what the problem is because i dont know what the problems are. I need to know more. Lets go to jim in pennsylvania. Jim . Booyah, jim, this is jimmy from allentown. What the heck is going on with m. E. S. . This has to do with just people think theres a lot of drilling on going in the country. You need to see more fracing for nat gas. This is a play for nat gas drilling and other where you are, where capital oil and gas and this is 25 miles northeast of you. You just dont have a lot of drilling and i looked at the baker hughes count and it wasnt that good, and i have to tell you thats why the stock hasnt run and it is a big disappointment. Welcome back, if you have something to say. Gary in arizona, gary jim, thanks for taking my call. We really like your show out here. Hey, keeping your pigs and metaphor in mind i bought restor pharmaceuticals. Shall i sell or buy . That was the early biotech, please. Please. Sell half and play with the rest of the money because ive got to tell you, that is as speculative as it gets and that, ladies and gentlemen, is the conclusion of the lightning round. The lightning round is sponsored by t. D. Ameritrade. [ indistinct shouting ] [ male announcer ] time and sales data. Splitsecond stats. [ indistinct shouting ] its so close to the options floor. [ indistinct shouting, bell dinging ]. Youll bust your brain box. All on thinkorswim from td ameritrade. What are we supposed to do with the banks here . On the one hand, the banks are one of the few businesses that benefits directly from higher longterm Interest Rates. On the other hand, those rates get too high it can crush the demand for loans and something that were now seeing at least about home mortgages, so maybe we want a bank that doesnt want that much of Residential Real Estate exposure. Take City National, cyn, its a boutique bank, based in los angeles. Substantial Bank Management division that caters to high rollers. It was terrific. It was coming in substantially better than expected and not many did that. The stock has rallied over 36 since we last did it in december. Lets talk to russell goldsmith, and the City National corp so we can learn more about whats happening here and what his companys prospects are. Mr. Goldsmith, welcome back to mad money. Congratulations with the big run because theyve been stalled. Your bank is seeing that loan growth. Your bank is starting to get people who want loans. Absolutely. Cni growth, growth across the whole platform and we have a range of businesses and im happy to say as you pointed out in the last quarter, part of it is the existing client base and utilization is up a bit and were attracting new client which is is exciting. Northern bankers talk about it. Once rates start going up, you use the word, people smell that and they want to go to work. I think thats true. Were seeing people stepping up on housing. We do have a pretty substantial mortgage portfolio, about 4 billion for the private bank lines and when people seay see rates are starting to mup up, uhoh, i better get in. Your clientele is such that theyre not going to be crowded out. They just have to step up and pay for the 3 million house, they cant wait. Thats true, but also, and you know this, rates are still at incredibly low mortgage levels and Interest Rate levels. Yeah, but you talked about housing being up 37 in california. 2. 9 monthly inventory . It must be hard to find a house in california. Surprisingly, it is. Surprisingly, you havent seen the sellers come forward. Youd think that youd see more homes on the market, but were not seeing that. But also the homes that are foreclosed are not the ones customers and thats what i think is held up. Yeah. One thing i thought was most interesting is trying to relate who your customers are and talk about twho who is getting the bankers technologically oriented and theyre getting to have billions and the people who are just newly millionaires. We, over the years in california, picked up a lot of techoriented people and companies, but we havent been a lender. About a year ago we decided we have to step that up. We focus Key Industries like entertainment and real estate. So in tech, we have a team in palo alto, boston and here in new york, and they are lending into middle stage, venturebacked companies and we should be there and it ties in as you say to the private bank. When the companies becomes public, you manage the income that that these people have. Be onning kaeshlly, we even have some warrants. Youve done that . Occasionally. Rose dale, this was obviously something that boosted dramatically the number of assets that we had under management. We picked up 5 billion. Today is the day, your show marks the day that we officially merged with rockdale, so together its a 20 billion Asset Management business. When i saw that number i was thinking, thats extraordinary. What were you five years ago . Oh, probably half that. Did you keep any of the rockdale analysts . Thats a different squad. Right . It was confusing and that company blew up, but it had nothing to do with rockdale investments. You only took the assets. And they were two totally different companies, but with the same common name. When we talk about what the fed wants to do, taper, not taper. In the real world does this have any is this just us in the media talking. Youve seen this. The tenyear is up over 100 buyses points since the talk got real and well see it happen and well see shortterm rates out there and theyve got to get in the intensive antibottics. If we got rid of takener and it could be a good stock market because then wed have longer con stukz. We dont need these extroerd measure and the wife can get through this unbelievably exceeding floor. Weve been in new york as you know, the bank in new york is a 3 billion back and we said its time to think and the other part thats cool is what with i have is 2. 0, theres no togetherer, no counters and it has Private Banking and Weight Management and it is different from all of the other banks you will see in manhattan. In other words, i make an appointment when i go. Someone will come out and rip open their Microsoft Surface and bring the tablet over to you and want online banking, sir, well show you this little video on the tablet because people are using how they use branches and weve gone up and hired the guys who designed the apple stores to help us. You did . Same Architecture Firm so we have a branch thats in tune with where new yorkers want to go. One more question. Are there other cities that this can work in . We are opening three offices in the bay wear and two in manhattan. Youve youve delivered and delivered and delivered. Youre the highest quality banks, and independent of the problems that hobbled. Youve made a good call for your listeners. Youve always delivered for everybody. Thats russell goldsmith, the president and ceo of bancorp. If you dont want to hear the craziness. Theyre just making money. Stay with cramer. Humans. We are beautifully imperfect creatures living in an imperfect world. Thats why Liberty Mutual insurance has your back, offering exclusive products like optional better car replacement, where if your car is totaled, we give you the money to buy one a model year newer. Call. And ask an Insurance Expert about all our benefits today, like our 24 7 support and service, because at Liberty Mutual insurance, we believe our customers do their best out there in the world, so we do everything we can to be there for them when they need us. Plus, you could save hundreds when you switch, up to 423. Call. Today. Liberty Mutual Insurance responsibility. Whats your policy . One word, optical. Okay. Its not like the graduate and the Dustin Hoffman movie which told one word, the future is plastic, but if you want to invest in the hottest area of tech it has to be telco equipment. Specifically anything related to delivering higher performance video through your cell phone. Optical. This is confusing because of ciscos most recent quarter which was a record, but it contained almost nothing about telco equipment spending that was positive. In fact, that quarter did more to unfold the positive story here than it did anything else because it kept sienna and on finesar and how good could it be for those also rans when its bad for cisco, at least thats what investors presumed. In fact, i think its fwlaringly obvious, that cisco had an amazing quarter and they just cant admit it because theyre in the process of laying off 4,000 people. Forgive us while we axe 4,000 workers. Unfortunately, that means you wont know anything is good happening here until you see the current cisco quarter which is ages away. The alcatel will get much better. New cpo and theyll be in shape to translate the orders into profits and i think alcatel will get far more than its fair share. Do not the vodafone will be flush with cash to build out whatever it needs verizon cash. This might be one of the most exciting speculations in the world right now. I love how people tell me that ive missed Alcatel Lucent at jim cramer because the stock was at two bucks and i didnt recommend it. So i missed the two to three rally and thats the same catcalling when i said nokia was too cheap to vote at 4. Where was i when it was at three, of course, if you listen to critics youll miss the move to 5. 52. I think its still cheap and how about the test of measurement of optical fibers and something you need if ill build out that infrastructure and admittedly cats and dog company and it could be more than theyre selling for. The company doesnt walk through until season september 30th. Hey, theres been juniper sense the ciscos, but mead i le you that juniper has colds. We know from sienna that business is very strong. However it hassa i humongous move, and i think it has to pull become. When i spoke, gabriela, and the first two have rich foreign bankers and the last is furiously trying to dach up with Verizon Wireless and quality. Dont forget how much vodafone has to order from xilinx, this is historically strong and it coop explosives. Soon they all will, but its not too late to buy any of them in order to play the next telco spending and the one that is delayed for years and years that is now at last upon us. Stick with cramer. Weve been bringing people together. Today, wed like people to come together on something that concerns all of us. Obesity. And as the nations leading beverage company, we can play an important role. That includes continually providing more options. Giving people easy ways to help make informed choices. And offering portion controlled versions of our most popular drinks. It also means working with our industry to voluntarily change whats offered in schools. But beating obesity will take continued action by all of us, based on one simple common sense fact. All calories count. And if you eat and drink more calories than you burn off, youll gain weight. Dont forget how much vodafone two fifes. Five below. Both are better than expected. Im jim cramer breaking news. Democratic Senate Majority leader harry reid has Just Announced a postponement of the syria war vote that was to have taken place on wednesday. Reids aides say this is to give it a chance. But theyre not likely to permit a vote if they think the president will lose that vote. I think thats how this is stack up. Now, all this comes as john