Transcripts For CNBC Power Lunch 20131210

Ceo. And what an incredible 24 hours. Culminating in this a new ceo. This is just a day after the government sold off its remaining stake in the big automaker. Its announced its first ever female chief executive. Who is she and whats ahead for the automaker now . Sue is off today but that means i get to spend an hour with melissa lee. Hi, melissa. My pleasure. You said it, crisis over. Steve liesman reporting the fed will get ready to taper as early as next week. You take a look at the three tests the fed had out there, which was fiscal uncertainty going away, confidence in the outlook, along with the notion of Interest Rates, all seems to be give the fed leeway to do this. Its more likely than not it could be january, but you look at how Interest Rates have behaved and we were talking earlier the bond market is saying the same thing. Absolutely. I mean Morgan Stanley was saying 2. 6 to 2. 9 on the 10year yield is pricing in a move december or january. Whats happening to the short rate and the answer is absolutely nothing. Thats the thing that gives the fed leeway. Talk about crisis over and these people which i think they are raising their hands clapping but hands up for bread, i dont know. A budget deal in d. C. As we said. A big deal for the fed in terms of getting that fiscal uncertainty out of the way. Taper beginning is a sign of normalization but folks, dont get too excited on that. A very long way to go. The volcker rule in place. Replacing one uncertainty the bigger when igs this going to happen, is it going to happen with the smaller uncertainties, 800 pages with what does this mean for banking, lending, the macro economy. Now dont get too excited about this either. Mortgage debt rising, diana olick our ace housing reporter points out thats because of fewer foreclosures out there. That means that. But still normalizing and flat and not declining anymore. Government out of gm. Call this the tail bone of t. A. R. P. , the vestige that was out there. Thats progress that is done and out of the way. Europe stabilizing. This much growth. But it was two quarters of growth and we havent seen two quarters backtoback growth in europe since 2011. And the china data supportive of a europe stabilizing that story. Thats key to watch that. If we could get the economies around the world, the big ones firing on all cylinders that could be a game changer and you have as we reported earlier this week, rising Household Wealth and that if you combine that with confidence, may be you have a breakout for the consumer next quarter. In terms of the fed its not important when they taper but what they do with the Unemployment Rate threshold as well as the inflation threshold. I dont think they touch that, melissa. They dont. Until they feel like the market doesnt believe in their promise. So youre saying of lower for longer. Taper without an adjustment. Until theres a sense of fear out there from the fed that the short end of the curve is not behaving. All right. Steve, thank you. My pleasure. Tyler, to you. Thank you. Our next guest is a legendary market player whose insights are among the most lilly regarded and listened to on wall street. Bill conway cofounded the Carlyle Group 26 years ago and live at the Goldman Sachs Financial Services with Kayla Tausche for a rare exclusive sit down. Kayla . Thank you so much, tyler. Bill conway cofounded the Carlyle Group in 1987. He remains its cokey but a visionary on the markets. Who better to get his take on where we stand today. Thank you for being with us. Thank you. Steve liesman is reporting the fed is likely to taper ins december. There seems to be a lot more fiscal certainty in washington. Is the overhang gone . What do you where do you go from here . The economy is in much better shape and has been for the last year or so healing gradually and i think the healing continues. Steve liesman might know more than i do when theyre going to taper or decide to do that. I think the qe has gone on long enough. And do you think its been effective . Its gbeen going on four plus year, done a lot of things but the critics say its created this divide among the haves and have nots. I would say the initial moves to qe were absolutely essential beginning with t. A. R. P. And the really saving of the banking system, the automotive businesses, aig, the cret is businesses as well credit businesses as well. Progressively the impact of qe impacts have been less effective. Theyve still been great for the Mortgage Market but i dont think theyve done as much good and i think it is time to begin to taper. You mentioned the auto business. Big news for gm. The government fully selling its stake in the automaker even if its at a loss and a new ceo coming in today. Youre close with dan akerson but what do you think of gm at this point . I own some gm. I know you always ask people on the show, do you own anything. I do own some of the stock in gm. I bought it after dan becames the ceo. He was a partner of carlisle for seven years before he went to gm. And ive known him 30 years. I think hes done a great job. I think gm has healed. Its 15 quarters of consecutive profit. Im sure they still have a lot of other things to do. Dan had a personal situation that made it so he had to leave. The recovery of gm is something that as americans we can all be proud of. One of the tail ends of dodd frank regulation came out today, the volcker rule. Its been highly anticipated by a lot of banks but a lot of other companies have benefited. Carlisle, other private equity firms include. What do you take away and how has it benefited you . I dont know that it has benefited us all that much. Having more intelligent regulation will be a great move and hopefully well get that. One benefit, a small one thats come for carlisle, were actually able to attract more attractive people now because a lot of them are leaving the big commercial banks and want to work for people like the private equity firms. Youve been able to attract a the lot of business to the units that some of the banks are selling off, Wealth Management units, energy units. Thats something that the carlisle has been big on. Some banks are selling commodity units. What are you looking at . What assets are on the block . Some have been great. We bought Natural Gas Partners from barclays, so all these banks have been preparing for dodd frank and its impacts. Today were continuing to look at some but none i can talk about now. Okay. I want to talk a little bit more about the emerging markets because we saw some pullback, some very strong pullbacks earlier in the year on reports that the freg Federal Reserve could taper by the end of this year. You have a lot of presence in the emerging markets. You started investing in china over a decade ago. What are some of the unintended effects of the taper that you could feel in your businesses there . I think tapering could really hurt the emerging markets. When the threat of tapering was here in the summer the emerging markets equities went down, debt went down, currencies went down. Hopefully theyll be better prepared for it this time although i still think it can be rocky. Of course the biggest emerging markets is kind of europe which i think will do okay with the tapering. Weve been very active there lately. Its been a great place because most people are afraid to go there . An oped you wrote in the wall street journal nowhere can my firm invest in companies with as much confidence as we do in the u. S. There is healthy assets but growth. If you were in the u. S. Market this year you did very well, where are you putting your money right now . I still think the u. S. Is the best place to invest. Its hard to find attractively priced transactions in the United States but the Energy Revolution is real and i think Energy Related assets are very attractive. Wave been very active here. I think were going to continue to prices are high in the United States. Youve been selling almost everything in your portfolio you can sell but buying not that much. 13 billion you just raised in your most recent fund. Are you going to have a hard time spending that . For 26 years weve been investing mostly in the United States and i think that although it can be episodic and sometimes better to invest or not im confident we can get that invested. Well catch up with you when you do, bill conway cofounder and co ceo of carlisle. Thank you for being with us. Back to you. All right. Thank you very much. Kayla tausche there. Breaking news in the bond market. Lets go out and talk to Rick Santelli track the action, threeyear notes up for auction. Rick . Absolutely. 30 billion threeyear notes out the door, the grade, demand grade top of one, aminus. A solid auction. 3. 55 the bid to cover. 3. 55 submitted for every dollar worth of securities available. Gives us a demand picture. The best bid to cover in ten months. Indirect at 38. 4 was strong. A little light at 12 on directs. The yield. 631. Well within the bid offer the one issue market a solid auction even though the directs were a bit light. Aminus. While wall street braces for the fed to begin scaling back its easy money program, new rules approved today that its proponents say will at least scale back if not eliminate risky trading. Eamon javers in washington with details. Eamon . The volcker rule designed to ban prop trading by the big banks and others but there are exemptions to the rule that they rolled out today. Let me walk you through the five key exemptions here in this volcker rule starting with underwriting. Banks will be allowed to do underwriting but positions must not exceed what theyre calling reasonably expected demands of customers. Second market making. The trading desk inventory may not exceed what they call that reasonably expected it term in terms of the demands from the customers. Risk mitigated hedging, allowed under this plan, the banks will be required to document the hedging rationale. That means theyve got to explain what theyre doing, why theyre doing it and put it on paper and send it to the regulators. You will be allowed to trade in government obviousligationoblig debt, state and muni debt allowed, and certain trading activities of foreign banking entities will be allowed as well. Those entities allowed to trade as long as the risk is held offshore out of the United States. So all of that, guys, those are the kind of exemptions that we have here and melissa, iflz say theres a lot of subjectivity to a lot of this. They will have to make a lot of judgment calls as they go through enforcing this new rule as it rolls out over the next couple years. Eamon javers thanks for that. The qe pullback near the volcker rule in place, a budget deal close in d. C. The government out of gm and europe stabilizing is the crisis over and how do investors play the market . Bring in bob pisani and kenny polcari, bob, think were going to first with news on the otc market. The important thing here today is the otc markets went down again today earlier in the day, 1115 to 1220 eastern time. Spoke with them, they are back up and running. This is where a lot of the companies that arent large enough to trade on the major markets trade like fannie mae and freddie mac and some of the adrs like volkswagen, for example, roche, they have cited a technical glitch. This is the second time its happened in the last month. November 7th was another time it went down. Ill keep an eye on that. Back to the crisis, kenny, and how to play it. Some can argue [ inaudible ] in place 08 and 09 and now sell the news sort of phase. What do you stand . I think the fact that the crisis is beginning to be over, disagree with st. Loueve liesma terms of tapering in december. I think there will be more clarity about when it will start next year. The market is telling you its not expecting it in december. I also think that 2014 will be a stronger year. Were seeing it not only here, we are seeing real growth, we are seeing things Getting Better in the states and the sense from economists and strategists that 2014 will be another strong year. Maybe not up 27 where we are but moving aand with europe stabilizing i think that all plays well for what 2014 is it the key here it doesnt matter whether its now or january, steve mentioned that. We have a budget deal, looks like its happening. A major obstacle. Were moving in the right direction. Gradual improvement in the economy. The key point here is can janet yellen, convince everyone that tapering is not tightening. Thats what we might hear very much on that. Thats what we need to do. Tapering is not happening in december or january. Under any starncircumstance s i expect them to lay the groundwork to make a clearer delineation. Lets head to dominic chu for a market flash. Check out shares the stock at session highs. The company says a late stage trial of its experimental hepatitis c therapy showed 96 of patients in the study showed improvement. Yesterday Gilead Sciences had its own pill approved by the fda. It is considered by Industry Analysts to be the leader in the all oral hepatitis field expected to reap billions in annual sales. Its stock is moving lower so competition perhaps having a hand in that trade. Dominic, thank you very much. More wintry weather hitting the northeast. Three to six inches of snow expected in some parts including the metro area of new york. Weather channels jim cantore has the latest. Reporter i expect to get hammered on by snow when im out here. That did not happen here in baltimore, at least in the downtown area. North and west, 20, 40 miles, 70 miles, anywhere from 4 to 6 inches of snow. And actually it was a rough commute coming in. The winter storm warnings verified swimmingly. Here in the downtown area, we didnt snow at an intense enough rate, right around 3 degrees, we needed a couple degrees cooler to get this to stick. You can see where it did stick on the grass. Now the piles that you see, all right, that one, this one, that came from sundays little overachieving storm we had where we had exactly 1. 6 inches at bwi airport. Either way travel was horrible to say the least this morning along the i95 and many routes north and west of the major metropolitan areas. Cool off for thursday, big chill, teens, piles like this will become solid ice chunks and as we look into the weekend, another winter storm comes calling. This one more than likely for new york, d. C. , philly and baltimore. Will be sleet changing quickly on over to rain. Guys, back to you. Thank you very much. Media stocks have been on fires this year. Check out time warner, where i used to hang out. Its up about 40 . Never did that when i was there. Whats ahead for the media giant in 2014. David faber has an exclusive with the ceo next. Plus, a day after the government sells its remaining stake in General Motors big news the automaker announces a new ceo. The road ahead for gm. And its stock. [ male announcer ] alka seltzer plus presents the cold truth. [ coughs, sneezes ] [ sniffles ] i have a big meeting when we land, but i am so stuffed up, i cant rest. [ male announcer ] truth is, nyquil cold and flu liquid gels dont unstuff your nose. They dont . [ male announcer ] nope. They dont have a decongestant. Really . [ male announcer ] really. Alka seltzer plus night fights your worst cold symptoms, plus has a fastacting decongestant to relieve your stuffy nose. [ inhales deeply ] alka seltzer plus. Oh. What a relief it is. [ male announcer ] cant find theraflu, try alka seltzer plus for fast liquid cold and flu relief. You can fill that box and pay one flat rate. How naughty was he . Oh boy. [ male announcer ] fedex one rate. Simple, flat rate shipping with the reliability of fedex. Welcome back to power lunch. Lumber liquidators at session lows after the Hardwood Flooring retailer provided lower than expected fourthquarter Profit Guidance in the 2014 Profit Guidance well below wall street consensus estimates. Lumber liquidators showing weakness in the trade. Back to you. Thank you very much. The ubs Media Conference is under way in new york city and there youll find the top media ceos have gathered to discuss the changing face of the business. David faber joins us now from the conference where hes joined by a special guest. Hi, david. Hi, tyler. Thats right im joined by the chairman and ceo of time warner, of course. Nice to have you stop by. Good to be here. Nice to have you. I would love to start off on affiliate fees, particularly what you call monetizing your programming rights with carriage fees. It becomes one third of this companys revenues, once the spin of time is completed. Youve got six of ten of the largest distributors signed up, four more to go. Some the audience are worried about your ability to extract significant inkreenss and whether you will face a blackout from one of these providers. I dont think so. Dont worry. Were quite respectful and conscious of the needs and economics of our distributors and thats why weve been able to sign six out of the ten already. Remember some of the Biggest Networks in the United States. Youve got cnn, tbs, it tnt, cartoon network. So this is a valuable group of networks and i dont see any problems with this. Our distributors are finding this valuable and thats why theyre signing up. Remember the other thing, video on demand is most important advance in tv. Its important to everyone. Happening on the internet, happening on your living room. We have the biggest grant of video on demand rights for all of our networks of any network group. So thats another reason why were making this a better deal. This is important to the growth of the company, something investors have seized on over the last year, one reason your stock has done well. You remain confident you can continue to extract those increases. Youve been talking about doubledigit increases. Its going to work out for them too. Theyre going to make more money. You mentioned on demand and interesting comments in your presentation moments ago. Video on demand rights are now ubiquito ubiquitous, all the distributors have them, but you seem to criticize parts of the cable industry for not doing enough with them. Our parent by the way, you actually praised, comcast. Yeah. Do you think consolidation of the Cable Companies would be a good thing for on demand . Well, if the companies that are growing by consolidation are the ones that are offering this kind of thing to consumers, then it would be a good thing. People love video on demand. They love to be able to get their Favorite Network whenever they want on an ipad or on a mobile device. Thats why all these Internet Services are so popular. The greatest thing on any screen is tv network. People love it. Think of your favorite show. You want to see it wherever you want, when you want, on whatever device you want. But you feel as though the cable industry has failed you in terms of realizing that goal . What were saying is we like to encourage the ones doing the most so that as they see the success of it, as they see happy viewers, then the other ones get more interested because it takes energy, it takes money, to bring this to consumers and were encouraging everyone to do it. So its the ceo of a company that once owned time warner able do you think or would you look favorably on it potentially being acquired . Im not taking sides on whos running what. Im just urging all the cable operators, the telcos, give your viewers, give them their Favorite Networks, put them on demand. Weve given you the rights. We didnt charge extra. You should give it to the viewers and dont charge extra. Bring the good mood to everyone. Talking about charging you charge i believe its 14. 95 a sub for hbo. No. Thats not thats not what it is. No. I think thats what i was talking. The wholesale charge. No. Its less . Yes. What am i paying for hbo then . I dont know. Whats the Value Proposition . Hbo some. Yeah. The best original programming, the biggest movie lineup, all on demand. Subgrowth again . Subgrowth, very healthy this year. You get asked a lot i know about the netflix comparison. Wait. Lets not leave hbo yet. Hbo overseas grow more than 20 . And domestically its growing. Every time youre asked about netflix the fact its at a lower price point or amazon prime eating up some growth. These things go together. Hbo households love netflix, netflix households watch more hbo than any other households. So these are Different Things that theyre complimentary. Finally, i did note there was no followup when talking about cnn and you said you could see, quote, the expansion of the news definition in prime time. What that means, cnn has tremendous strength in breaking news. Whenever you see world events, everyone tunes to cnn. It happened this year three times. Our commitment to that, ability to cover it domestically overseas, were not going to flag in that. What weve seen is when there isnt breaking news theres an interest from viewers to see news on subjects like culture, lifestyle, technology, religion, entertainment, sports, cuisine even. Anthony bourdains show. We want to make sure that were covering all of the subjects that if you think about a magazine, think of all the subjects that you real about in your favorite magazine. Theyre all news. So we just want to make sure that were not being reducktive or narrow in what news we cover. You happy with jeff zuckers performance . Hes doing a very good job. Great new talent at cnn. As always, very much apprecia appreciated. Thank you for sitting down with. Thanks for having me. Youre welcome. The chairman and ceo of time warner. That time spin is still on track for the second quarter. Yes. Of next year because yesterday there was a little bit of not confusion but perhaps a story not correct out there. Send it back to you guys. Thank you very much, david faber. Got big fuse in the auto sector. General motors announcing a new ceo. Its first ever female. Who is she . What will she bring to gm . And whats the road ahead look like for the automaker now . Phil lebeau joins us and steve ratner one of the key architects in gms bailout, thats next. [ male announcer ] heres a question for you where does the United States get most of its energy . Is it africa . The middle east . Canada . Or the u. S. . The answer is. The u. S. Most of Americas Energy comes from right here at home. Take the energy quiz. Energy lives here. Afghanistan in 2009. On the u. S. S. Saratoga in 1982. [ male announcer ] once its earned, usaa Auto Insurance is often handed down from generation to generation because it offers a superior level of protection and because usaas commitment to serve current and former military members and their families is without equal. Begin your legacy. Get an Auto Insurance quote. Usaa. We know what it means to serve. Welcome back im Sharon Epperson at the nymex. Where gold prices are getting ready to close momentarily. Were looking at a surge in gold up more than 25 bucks above 1260 an ounce an part of the reason is the dip in the that are here. The dollar index below 80. Add to that the Short Covering were seeing. We saw shorts in this market that were at basically the highest level weve seen in 7. 5 years. Were seeing some of that covering and silver a nice lift as well. Well see if silver has a technical breakout at the close. Over to dominic chu for a market flash. Thanks, sharon. Check out shares of burlington stores. The stock lower on nearly ten times its normal trading volume. The off price Retailer Forecast Slower Growth in samestore sales for the coming holiday season. The shares down about 9 in todays trade. Back to you. Thank you very much. In a unanimous decision by the board gm names mary barra its next ceo replacing dan akerson. Hes going to retire next year. As head of design, engineering and quality for gm vehicles, barra a 33year company insider, veteran, the most seeper exec in the running for the ceo and a Second Generation gm employee. Her father a pontiac dye maker more than 39 years. More from phil lebeau along with steve ratner who led the obama administrations Emergency Rescue of the Auto Industry and melissa lee also joins us. Phil, why dont you kick it off and tell us about this new ceo, what her history is, what shes known for and why she got the nod . She came up on the Operations Side of the business and a gm lifer there for 33 years. But more importantly, she is highly respected within this company as somebody who has been pushing gm to think differently, to act differently. In fact, shes well known for once telling the design listen dont build any more crappy cars. I know people might laugh at that but thats a blunt assessment of how General Motors needs to approach building vehicles and has been approaching building vehicles ever since it went through the restructuring. Steve can talk more about that but i do want to play for you one interesting sound bite this morning from a Conference Call with ceo dan akerson when i asked him point blank, what is the significance of a woman running General Motors given the historical background of gm being the Old Boys Club . Heres what he had to say. Mary was not picked because of her gender. People always said to me, you know, im always looking for talent in the company, outside the company. Weve mixed and matched from internal and longtime gm professionals and ive said this publicly before, mary is one of the most gifted executives ive met in my career. She was picked for her talent, not for her gender, not for political correctness, anything of that order. And if you talk with other executives within General Motors, even midlevel executives, lower down executives, all of them say the same thing this morning, mary is the right person for this job right now. And so i just want to say kudos to dan for saying that because as a shareholder you want to hear the new ceo is the best person for the job, not necessarily the best woman for the job. As a shareholder you want to hear there will be continuation of a rationalization of the European Business and india and china. Is this the person that will do that . I have total confidence in what dan just said. Theres absolutely no doubt in my mind that this board, many of whom were picked while treasury was involved and i was involved in some of those selections, picked the best person, the person who understands exactly the issues you talked about, not because shes a woman. I think the fact that she comes out of gm is both a plus and can be an issue. But i do have confidence in this board in making this important decision. Steve, you raised the question i wanted to ask. A lot of people focused on the fact that shes female, first one to head, but she is a company insider. If my history is correct, General Motors has had a long run before mr. Ackerson of insiders as ceo. Part of the old boy network, part of the culture that got that company in trouble. Is it wise to go with a 33year veteran of the company when someone like mr. Ackerson who came in the outside and did what is universally i think regarded as a wonderful job, would it be wiser to have looked outside. One of the current Board Members warned me if thats the right word when we were thinking about management back in 2009 against picking an insider because this company so fundamentally needed a culture change. Now its had two ceos from outside, although youre correct before that they were insiders. A lot of that culture change has been affected and i do have confidence that dan and the board weighed that question and made the decision that mary was the best person even though shes an insider. Thats right. It was ed whitaker preceded mr. Ackerman. Whitaker coming out of southwestern bell. I want to get your perspective on that as well. From a stock standpoint the fact that the stock hit a new alltime high yesterdays session and not doing too much to todays session maybe speaks volumes to this choice of barra. When you look at her background she comes up from the operations and engineering side of the business. When was the last time that General Motors had somebody from the engineering side of the business running the operation . Thats part of what i think people are interested in with mary barra, she understands at the end of the day, you can do all you want about talking about changing the culture what matters is what youre putting in the show room. If its not high quality and competitive doesnt matter whos running that company its not going to sell. I think she has said that repeatedly. She said it this morning. It comes down to the product. Its interesting that people are cheering this move because she does come from the engineering side of the business and not the finance side where historically General Motors has run into problems. All right. Phil, thank you very much. Melis melissa, thank you. Steve we dont want you to run off because i want to ask you a question weve been sort of focusing on today. And weve declared that the crisis, the financial crisis of 2007, 2008, 2009 is over. Obviously it has long ten drals, some vestiges still there, d. C. Close to a budget deal, the beginning of the end for qe by many accounts, volcker rule in place and General Motors, the government getting out of it. Europe stabilizing. Whats your take . Are we out of crisis mode right now . I think were certainly out of crisis mode. I think we probably have been for some time now. Were certainly equally certainly not at the end of our economic challenges. We did have a good jobs number last friday. But when you adjust for inventories, the gdp number was nothing to brag about. Household incomes are not recovering in a meaningful way. We have a budget deal but we still have big longterm budget issues. I would say that we have made a lot of progress. But we still have plenty of work to do and nobody should be declaring victory and going home. If you see it as you said, out of crisis mode, do you think its appropriate at this juncture for the fed to start pulling back on its stimulus . I think whether it happens in december or happens early next year, to me is not the most important decision. I think the fact is the economy is weak, inflation is still running at about. 7 , very, very low, and so i think theres no danger in what the fed is doing. I think it has been a positive for the economy and i think over the next, say, six months or so they will find their way toward a taper and that feels like the right time frame. Steve ratner, chairman of willett advisors. To the bond market. Rick santelli tracking the action at the cme. Interesting point of time given the increased notion there could be taper on the table next week and 10s and 30s hitting the market tomorrow. Whats misfiing about it, the fed is getting behind what treasury market has been advertising on the worlds biggest billboard the cme group. Two day rates on tens they have moderated slipping under the 280 mark, 274, 275, psychological support, not wild trade. Switch gears. Fed going to taper, well i can tell you that the yield curve is flattening, not necessarily the response i would like to see. Look at 5s versus 30s, wider on the 30 maturity see its flattened a bit. Opening chart up to november 1st. 16 basis points. Last chart is the chart Pay Attention to. Dollar index within a fifth of a cent of going down on the year in terms of net change. Melissa lee, its great to see you and back to you. Good to see you too, rick. Thanks so much. Crisis over, so big question now, how do you make money from here. Dominic chu talking to the pros and working on a playbook for us. Its going to happen eventually right . If Steve Liesman is right, how should you stack your game plan . We spoke to some experts out there and a couple takes after the break. We will bring you the taper playbook. Keep it here on power lunch. The American Dream is of a better future, a confident retirement. Those dreams, theres just no way were going to let them die. Like they helped millions of others. By listening. Planning. Working one on one. Thats what Ameriprise Financial does. Thats what they can do with you. Thats how ameriprise puts more within reach. [ male announcer ] how could switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the Aerospace Industry in the u. S. . At t. Rowe price, we understand the connections of a complex, global economy. Its just one reason over 70 of our mutual funds beat their 10year lipper average. T. Rowe price. Invest with confidence. Request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. Welcome back to power lunch. Im seema moody. Facebook shares at session highs. According to Morgan Stanley survey, facebook has the highest penetration for online local advertising which is expected to be a 25 billion market by 2014. Analysts writing that facebook can capitalize on its low cost way of distributing content and highly engaged social users. And that this could help facebook grow its small to medium sized business presence which could provide a lift to overall revenue. Facebook not the only social media stock outperforming today. Twitter, groupon and pandora in the green. Thank you very much. So crisis over. How do you make money from here . Dominic chu has been working on a playbook. Weve got so many takes. Heres a comdifferent views. Youve got a number of Different Things about the crisis when its over, the fed wont need to keep buying the bonds much longer. The pros are preparing for the fed taper. We asked a couple whats in their playbook. Start with the sell side. The strategists that investors pay to advise them on what to do. Matt maley said hes going on the defensive, that means hes looking to cut back on riskier assets like emerging markets like high yield bonds. He wants to maybe raise some cash. He thinks all these risk assets will take a hit including stocks and bonds. He sees a possible 10 to 15 correction for stocks. Keep some of the cash handy. For the buy side, the Portfolio Managers that invest the money. We asked veteran dividend she manages around 25 billion in assets and jill says shes look for Quality Companies to outperform in a Slower Growth environment. Some of her top picks including real estate trusts or the res, focus on health care, likes alexandria and Biomed Realty trust and likes the heftier dividend yields in energy some of the Natural Resource partnerships like atlas pipelines and callumet. It may be worth looking at getting your playbooks together. Thats why some pros should be looking at what they want to dos just in case. Interesting idea. Dominic chu, thanks for that. Guess whos in the house . Marcus. He is here the star of the profit and ceo of camping world. Does he think the economic cree sis is over . Plus a new study finds Customer Rage on the wide. What hes seeing in his Stores Coming up on todays power rundown. [ male announcer ] they are a glowing example of what it means to be the best. And at this special time of year, they shine even brighter. 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We have been the home of hope but were going to give you three reasons why the crisis may still roll on, glass half empty view if you will. Stealth stocks doing great and under the radar and melissa and tyler, a question for you, would you trade a percentage of your income for the next five or ten years, no matter how much you made, for cash up front now . Its investing in Human Capital and one of the companies that does this, is our guest on street signs. Interesting concept. Would you do it . That is an interesting one. I have to think about it. Good question brian. Lets check in with dominic chu for a market flash. Good day for autozone, the retailer reported a better than expected firstquarter profit as it focused on selling to auto repair chains. Ta offset weakness in its main do it yourself market as consumers turn to garages, dealingers and service stations to repair their increasingly complex vehicles. Back to you. Thank you very much. In an answer it to brians question, i suppose is depends on the cash and size and percentage of the income im about to give over. Marcus is here, he, of course, is the star of the cnbc series the profit ceo of camping world. Welcome back. We will go through the rundown here. Its all on you. I know youre up to it. Weve been making the case that the crisis is over. There are lots of reasons for us to tackle that argument today. The gm stock sale by the government just one thing. The coming of the taper another. Does it feel as though the crisis is over to you . The American Economy . But should we start singing happy days are here again . The crisis may be over in theory but if people start acting like the crisis is completely over well get back to where we were. Banks loaning at low Interest Rates, 0 credit cards. Im worried we have a little amnesia right now. Isnt it true that it feels this way to me, responsible use of leverage is okay. But often its leverage that kills . The banks are giving out the credit. And people are taking it. Go into Department Stores nearly killed them. Nearly killed them and if consumers dont wise up and start spending more than they make were going to have a problem again. Especially on the housing side. Move on to the especially on the housing side. You buy too much house youre always going to run into trouble. Even if you think you can afford it. Thats right. Lets move on, mary barra going to succeed dan akerson and what do you think of this choice . Insider, longtime vet. In the 90s i was a chevrolet dealer so im familiar with General Motors. This could be one of the brightest days in General Motors history. For the first time theyve taken somebody from the inside that understands product and product is the key to any business thats manufactured. I dont want to see a technology guy or a banker. What i want to see is somebody who knows how to design the product and what the customer wantses. Phil lebeau made an allied point to that, said that often when theyve stayed inside for their choices theyve come out of the finance, apparatus not the engineering and product side and ill tell you some of the new General Motors product is pretty good looking and pretty good. That impala got high ratings. You need to thank her for that. Shes the chief of design. New study finds that Customer Rage is on the rise. More yelling, more screaming, lots of angry they could be writing about me. They are writing about you. My wife. No, shes not. As camping world ceo you deal with Customer Service on a daily basis, is it good, Getting Better, worse . How do you find it when you arent patronizing one of your own stores . I have to think about it both ways. Think about cable and telephone and the things that drive everybody the craziest. Call up your cable is out, takes forever except if its comcast. But in my stores the key for me has been making sure that customer feels like they have acs ses to the decisionmaker. Not going on to the internet filling out a form, not going into a long call center, sitting on hold for a while, they want access and they want a decisionmaker. Even if they dont like the answer, they appreciate the fact that you listened and thats whats what do you do when you get a customer complaint . What gets elevated to your level, escalatesed to you . How do you handle it . I have 6,000 employees and i have one rule if it gets to me im giving it away because that means theyve been through a lot of people and havent gotten the resolution they wanted. So if it gets to me, the customer is going to get whatever they want no matter what it costs the employee. Ill remember that. Dont ever call me. Marcus, thank you very much. Melissa, over to you. Thank you, tyler, and marcus. Buffets new Billionaires Club is growing. Robert frank. There are seven new signers to the giving pledge, one is getting a lot richer today. And another has a black belt in karate and plays a mean game of pingpo pingpong. The mystery donors coming up after the break. Welcome back to power lunch. Netflix expanding its series portfolio will stream only a week after the documentary premieres at 2014 sundance film festival. Mitt follows mitt romneys Journey Towards the presidency and this availability of the documentary reflects netflixs continued focus on customer engagement. Theyre doing it just one week after it premiers at sun dance. Back to you. Thanks for that. A new batch of billionaires joining in on warren buffet and bill gates charitable cause. Tell us whos in the spirit of giving these days. tis the season, seven signers to the giving pledge, billionaires in tech, finance, hotels and karate black belt. There are 122 signers, thats the promise started by bill gates and warren buffets for billionaires to give away at least half of their wealth. The signers include eric leafcostco, ceo and cofounder of groupon. He and his wife give a lot to hospital causes. Getting richer as that stock is on a tear. Renee and bob parsons the founder of go daddy. Beth and seth colorman join the list, the investment firm. More signers from overseas. What warren and bill wanted. Uri millner, a new signer and so is datos the Indonesian Banking titan a black belt in karate and chairman of the Southeast Asia table tennis association. So you know how big warren is on pingpong. They had some pretty good matches there. Maybe all done over a pingpong match at some point. Exactly. Before you go, i want to ask you about the story about the tipper giving guy dantic tips to bar tenders and wait staff. A guy that has given away donated 80,000 in tips to people. He has an instagram site called tips for jesus and some tips, 7,000 tips for jesus. 7,000 tip. People think it is jack selby, former Vice President of paypal and one of the cofounders there. But to confirmation. I reached out to him. Tell me about the clues. You were mentioning them. The receipts are filled whoever it is likes tequila. A lot of patron consumed there. But whats interesting, more interesting, a lot of wealthy are into direct giving now rather than going to united way or something. This is direct giving. Youre giving to a waiter to help them out. Part of a trend. Robert, thanks for that story. Robert frank. Coming up next, three of the biggest stock winners in todays trading. Stay tuned. Whats in your ear . Oooo a quarter check for more well, i guess i can double check. My watch [ male announcer ] it pays to double check, with state farm. Ttdd 18003452550 can take you in many directions. 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I want to spread a little love this year [ male announcer ] this december, experience the gift of unsurpassed craftsmanship at the lexus december to remember sales event. Some of the best offers of the year. This is the pursuit of perfection. Take a look at the markets. The dow down bay third of a perce percent. The s p 500 down. Top winners in the s p 500 right now. Were taking a look at nice gains from wpx energy up 4. 6 . Cardinal health up there, up 3. 7 . And autozone up almost 3 ats this hour. As for tonight on fast money the ceo of sun power and, of course, Solar Energy Stocks have been on fire of late. 400 . The stock up 425 this year. A rough past month. Well ask him about that past month and what he sees for the entire industry. 400 . Crisis over for him. Over for sunpower and a lot of the solar stocks. Are you comfortable with that call, crisis over we seem to be making today . Its interesting because buy the rumor sell the news. Is crisis over . Sell the news, thats the question. Good question. We will wrap it up there. Great to be with you as always. Great to be here. That will do it for this edition of power lunch. Thanks for watching. Stay tuned. Street signs begins right now. With all due respect to our friends at power lunch are things all that rosy for the American Economy . Welcome to a sunshine street signs. This hour were going to lay out the reasons to be optimistic heading into the new year and some of the sticking points we still face. Your other big topics how gm just made a huge move to help bust done the glass ceiling, stealth stocks that have been quietly on a roll and a question for you, would you trade a portion of your income for five or ten years, for money right now . Meet the ceo of a Company Offering just that, mandy