Transcripts For CNBC Power Lunch 20141112

And now we turn to the meat and potatoes of power lunch. Playing the weather. Today on the big show the cold, commodities and stocks. Winter weather moving in early. Watch for an impact on your portfolio. And a car in 30 minutes. Auto nation says it can do that. It can make it happen. Its plan that can revolutionize the way we buy from dealers. And the soap opraw looked like it was on the track to better transparency. Wait until you see what the president and his wife are up to. Down to sue at the new york stock exchange. We are going to begin with the arctic blast enveloping parts of the country and the impact of Energy Prices heading into early winter. Nat gas traders preparing for one of the favorite trades this time of year, the socalled widow maker. Dominic chu is looking at which stocks may be impacted the most by the cold. First we go to kate kelly in texas on that nat gas trade. Reporter its only mid november and already a changing Weather Forecast is roiling the natural gas market. In recent weeks we have been down to the 3 range. Today we are somewhere in between even as cities like houston where today i am standing in front of a natural gas plant braced for an early cold snap. It appears to be starting right now in houston where we have morning temperatures of an unseasonably low 46 degrees. Another super cold winter could help natural gas futures market live up to its nickname which is the widow maker with traders in a splice of the market that has been bearish so far telling me prices could experience wild volatility going as low as sub2 or as high as the high fives. It all depends on Mother Nature but leaves ample levels of gas and storage among natcherate gas providers should probably keep prices relatively muted. Well see if that holds up if we get another deep freeze in places like chicago and the northeast, though, both of which could have gas delivery challenges to contend with if we have another deep freeze this year. Indeed. Thank you very much. Lets go back to dominic chu because he has three stocks to watch as we head into what looks like a cold, cold winter. Whether or not it is good to trade stocks you think might benefit from the cold weather remains to be seen. Often times the tracks dont trade predictively because of the weather. On apparel side Deckers Outdoor behind the ugs brand of boots. The shares were down 10 . They got hit pretty hard. Look at the last season. This is last winter from the end of november through the end of february. You look at names one month Deckers Outdoors up about 2 here. Interesting move here for deckers. If you take a look at the next company we are looking at one that does equipment, touro that makes chainsaws and blowers and snow machines, snow plows and snow blowers, those types of equipment over the past month those shares up 11 . If you look at the last winter season toro shares have made a nice move higher here between the end of november and the end of february of last winter shares up about 7 . We finish with one that some people like to maybe call a Winter Weather trade and thats netflix because cabin fever sets in and maybe you want to stay home and watch the shows, binge watch all of them. Netflix shares have taken a huge hit. That Earnings Report didnt help. The last winter season you take a look at this trade here. It did start off pretty weak and somehow managed to finish up about 22 . A handful of names to maybe think about. Its not that the trades often work or dont work but certainly ones that investors like to focus on as they bundle up because of the cold weather. We have breaking news in the bond market. The tenyear note up for auction and Rick Santelli will give it a grade. Charlie minus, c minus. A fairly average option but a little less than average on all metrics. Tomorrow we finish up with 16 billion. The yield at auction 3. 365. The one issue marker was flipping around a bit. It looks like 36. 5 but it was 236 trading most of the time. A little price off on that. 252 to bid the cover was light. 44. 7 close to average on indirect. 14. 4 on directs. Fuelers take 42 . A little less than average will finish up tomorrow. Havent had a solid auction in a while and i think that is important to ponder. Sue, back to you. Indeed it is, rick. To washington and a news alert. Thats right. The Washington Post just posted a story on its website saying that hackers have attacked a web server connected to computers at the National Oceanic and Atmospheric Association known as noaa, the u. S. s weather gathering entity. Noaa operates satellites and earth orbit gathering data about weather around the world funneled to a series of clients and recipients. The post reporting that its sources say that the hack apparently came from chinese sources. We have been unable to confirm that. I did just as im getting ready to stand up here get a statement from noaa sent by email saying that in recent weeks four noaa websites were compromised in an internet sourced attack. They are not sourcing it in this statement here to the chinese. Noaa saying noaas staff detected the attack. Unscheduled maintenance impacts were temporary and all services have been fully restored. They say the effects did not prevent noaa from delivering forecasts to the public. The investigation is continuing. No other details from noaa. Back to you. Thank you very much. Back to the weather which is related to what he was talken about. Boulder, colorado digging itself out this morning. They better keep shovels handy. The Winter Weather nationwide here is dr. Greg postel with more. Cold air. These are unbelievable. Denver topping out at 5 which is 50 degrees below average. Been a long time since i have seen a departure from average like that. Guys, the cold air today will linger not just here but tomorrow, as well. Look at these numbers. Denver only gets back up to 17. Chicago 33. New orleans 53 degrees. Thats 20 plus degrees below average. There we go friday and its going to go on and on. Look at the scope of all of these blues out here. That tells you it is a big air mass. Those big air masses are sometimes hard to move. It will be sticking around well into next week. On saturday we will be watching the progress of a potential snow storm across the middle of the country. In kansas city, for example, st. Louis, wichita, omaha, watch out for ice. This can be a really nasty event over the weekend and move eastward from there on sunday. Thank you very much. We are watching yahoo and twitter at this hour. Maris Marissa Mayer facing pressure. The stock is off almost 40 so far this year. We want you to join the conversation. Which company has the clearer strategy, yahoo or twitter . Go to cnbc. Com vote. Jon fortt is looking at mayers future at yahoo. I think looking at Marissa Mayer she is in a different position. She bought herself some time. Revenues were higher than a lot of people expected. She reported 200 million in mobile revenue. 1. 2 million projected for the year and began to show more how mobile is playing out. Now with the acquisition for 640 million it at least gives them another angle to play in programmatic video advertising although there are questions about how it is being kmaudatized and how much Strategic Value it will have. Julia will tell you dick costelo has had increasing questions. To julia in los angeles. Is this a moment of truth for Dick Costello . He has been facing growing criticism of the strategy. The stock down. He is unveiling a plan to grow twitters user base and revenue. So far investors like what they see from his presentation over the past hour. Stock is up about 4. 5 just today. These are all on announcements that they make it easier for new users to sign up and get hooked. They will remove friction from the experience. We want to deliver an instant timeline to new users. The instant timeline will remove the need for users to start following accounts when they first come to twitter. He is also announcing they will improve private messaging. He announced they will deliver new services, new tools to App Developers to help syndicate tweets and ads. We are going to explore additional mobile applications beyond twitter. Vine is the first such application, but there will be others. After he spoke cfo laid out his aspirational plan for the company to generate as much revenue as the biggest internet kaech companies out there right now. Do you happen to remember after that really quite nice debut at the end of the first day of trading i recall twitter stocks somewhere in the mid 40s. It is roughly in the mid 40s now. Thats absolutely right. The stock has been on a total roller coaster. It went up and went down. It went up after the Earnings Call about three months ago but after the most recent earnings there were a lot of concerns and questions about the user growth. It all came down to the fact that people are worried that twitter does not have to expand beyond those who use it on a monthly basis. What they are talking about right now to investors is the idea that they are more valuable than that. They are going to grow that core user base and get tweets to be seen by everyone. We should point out the vote which began with a heavy bias towards twitter having the clearer strategy, that margin narrowed as our segment went on. 53 of you say twitter has the clearer strategy. 38 say yahoo. 9 say neither has a Clear Strategy. Dominic chu now who always has a Clear Strategy. This Clear Strategy is about a market flash on batteries and alternative power. This is plug power we are talking about. The stock is moving sharply lower after it cut its Sales Forecast citing program delays and weaker than expected delays. The Company Reported a bigger than expected Third Quarter loss missing estimates by a wider margin. Those shares you can see down by about 15 near session lows. Back over to you. Well, this is a story line literally right out of a soap opera. Michelle carusocabrera is here with juicy details. The mexican president , a 7 million home and a multibilli multibilliondollar government contract all gone off the rails. We will have this incredible story next on power lunch. The pentagon confirming russia has moved forces into eastern ukraine. This video shows what is believed to be russian separatists driving tanks into ukraine earlier this week. Russia denies troops are in ukraine. Russias big etf is up about 1 on the trading session. An incredible political scandal straight from a soap opera begins in mexico and stretches all the way to china and involves a soap opera. Michelle carusocabrera here with the plump and juicy details. Mexican president does not live in the president ial palace. We learned this week he is living in a new mansion in mexico city which is owned by a mexican Construction Firm, a firm that has won many government contracts. The 7 million home is spectacular, all white, marble floors, a modern led lighting system. The Construction Firm that built the home was part of a consortium, one of five companies that bid together and won the contract to build mexicos first high speed rail. The lead was a Chinese Company called China Railway construction. The Mexican Government cancelled the contract with zero explanation. All the contractors were very mad and threatened to sue. A few days later this story about the mansion exploded. The President Office does not deny that the president and his family live in the mansion. The explanation is that its not his house, its his wifes house. The president s wife is a very famous soap opera star in mexico. She is seen on the corner of one of the most prominent Spanish Language gossip magazines. The president s Office Released a statement saying she has her own money and entered into an agreement with the Construction Firm for the house and using her own money she put down 30 and is paying the rest off every month punk chewily. We dont know what she paid. It is impossible to know if she got a sweetheart deal or not. The irony is that mexican president when he was i here the United States participated in an effort to combat government corruption. Do we have any indication that he did anything illegal or wrong . We dont know yet. He is required to report his assets and his familys assets to the comptroller. We dont know if this house was reported. We dont know the deal she got. That would be a gift. In the United States you have to pay taxes on things like that. There are very strict laws about accepting gifts whether you are the president or the president s wife. They could have put windows in it. It is actually open to the air. There are some student uprising protests in mexico this week. Any connection to this . There is now. This was like an added thing. The students were very angry because there is a horrific situation about six weeks ago, 43 students disappeared and we discovered they have been murdered, assassinated, shot to death and then burned. That all came out. The protest started about that. The students get this sense that this is this lawlessness in the country. Is government involved . There are allegations that the local municipality was involved in the killing. It seems to them like a country not in control. Dominic chu market flash. Check out mexicos largest wireless operator moving lower after at t ceo Randal Stevenson told investors at a conference that his company doesnt need to acquire its assets in order to be successful in mexico. At t agreed to buy the countrys number three cell phone operator. At t up by about 0. 7 . Thank you very much. No more fear and frustration. It takes 30 minutes to buy a car . Really . Phil lebeau is behind the wheel for us. This sounds interesting. You sound a little skeptical. I heard from other people who are skeptical. At least one dealership says this can happen. We would like to hear from you. What is your biggest complaint when it comes to buying a car and going to a dealership . Go to cnbc. Com vote. Your votes and more when power lunch returns after this. Up next, a power pitch. Will the panel set High Expectations for the company . What is your differentiating factor . I am wondering what you would do with the 2. 6 million you are asking for. Or will it go umin smoke. Are you in or are you out on this weeks startup . Go to cnbc. Com vote right now and get ready to start voting. Tdd 18003452550 [ male announcer ] your love for trading never stops, tdd 18003452550 even on the go. Tdd 18003452550 open a schwab account, and you could earn tdd 18003452550 300 commissionfree online trades. Tdd 18003452550 so if you get a trade idea, schwab can help you take it on. Tdd 18003452550 were getting a lot of questions tdd 18003452550 about organic food stocks. 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Ameriprise asked people a simple question in retirement, will you have enough money to live life on your terms . I sure hope so. With healthcare costs, who knows. Umm. Everyone has retirement questions. So ameriprise created the exclusive confident retirement approach. Now you and your ameripise advisor. Can get the real answers you need. Start building your confident retirement today. I make a lot of purchases foand i get ass. Lot in return with ink plus from chase. Like 50,000 bonus points when i spent 5,000 in the first 3 months after i opened my account. And i earn 5 times the rewards on internet, phone services and at Office Supply stores. With ink plus i can choose how to redeem my points. Travel, gift cards, even cash back. And my rewards points wont expire. So you can make owning a business even more rewarding. Ink from chase. So you can. Welcome back to power lunch. Check out shares of axalta coating. The stock is rising after pricing shares at 19. 50 raising 975 million. The company was sold off by du pont. Thank you very much. The European Space agency confirming this amazing story that the lander has landed on comet 67 p. It did so just after 11 00 a. M. Eastern standard time. These pictures just came into the news room. Amazing stuff. Time for the power pitch where this trivia to convince a panel of experts and his budding marijuana startup has what it takes to be the next big thing. My name is josh gordon, founder and ceo of bureau. Bureau is the premiere crafter of cannabisrelated essentials with a focus on quality, design and safety. The National Marijuana market has taken off recently and is on the verge of the lack of appropriate Packaging Solutions for cannabis dispensaries and the stigmas associated with marijuana use. Bureau seeks to solve these issues via its division offer g offering Promotional Products for mainstream clientele. With 12 products ready to ship in january bureau is well positioned to capitalize on the growing market. We just heard the pitch for bureau but let me introduce you to the panel. With us from l. A. Is david dinnenburg, founder and ceo of kind banking. Before ehoowas partner at a Film Production company. And from San Francisco we have troy dayton cofounded Arcview Group that focuses on marijuanarelated businesses and overseas the network with more than 14 million in investments. Troy is the founding board member of National Cannabis association. And we have the producer and director of the marijuana show. Wendy wrote why marry a millionaire, just be one. Great to have you with us. You are in the hot seat, my dear. Talk to me about how you can protect children especially in the edible market. We have a couple of products here that have already received the child resistant certification. Our concentration is not just creating a product that is child resistant but one that is specifically positioned for cannabis. Im curious about your wholesale versus retail costs and what the profit is. We have about 200,000 in sales to date post getting the 500,000 investment but, again, we have yet to really develop those 12 custom products. Our margins are about 40 and 50 on the wholesale. We got a question for josh. I was curious how you differentiate yourself from a lot of other players in the market, others that are kind of in this space. We are not just offering a bag for low price point cannabis or the low price point dispensary nor just a joint case, really a full range encompassing every category of cannabis that a store will sell. Additionally, we are focused on more of the premium market. I think there is a lack of Packaging Solutions for dispensaries that are trying to position themselves as a more premium dispensary. We hope to land that market share. I have to say that all of the products you got here on display are really elegant and reminds me of the art of shaving but obviously the art of smoking marijuana instead. My curiosity is you got 500,000 and raised that. Im wondering what you have done with it and what you would do with the 2. 6 million you are asking for. My father and i put in 60,000 of seed capital to put in a proof of concept product. After seeing good success with that product we raised 500,000 to build out a full line of 12 custom products. Now we are looking to raise Additional Capital to stock inventory and to have a more aggressive sales and marketing budget. We all heard what josh had to say. Now we need to find out if the panel and you are in or out on bureau . I think you should focus primarily on the child resistant packaging. I think that is a huge hole in this industry and a huge opportunity. For that reason im in. I do not think end consumers are ultimately buying a lot of packaging type things. I think you should focus on producers and the sellers and so since the pivot is going more in that direction im in. Wendy, what about you . I think it is a huge market. I like the fact that it is sleek and sort of the apple of packaging and something kind of cool about that. Was that an in . Im in. Thats an in. Okay. Im all for the coaching. Josh, this is actually quite rare. You got three ins. What is your reaction . Im very happy. Thank you very much. I love the feedback, guys. I feel privileged to be here and excited to hit the ground running. Best of luck. Thanks very much to josh and all of our panelists, david, troy and wendy. Our live voting is about to close. Thank you for your in or out. That is todays power pitch. So josh is stoked. How about you . Lets lock in the vote. In or out on the bureau . Its a dead heat right there. 51 say out and 49 say they are in. Lets go to melissa lee. We have a situation we are watching at one World Trade Center pictures coming in. The fdny confirmed two people are trapped on scaffolding dangling at about the 69th floor. We have more calls out. As soon as we have more details we will bring that to you. A scary sight. The bond market and Rick Santelli is tracking the action at the cme. Hi, rick. Indeed if you look at intraday chart you see everything you need to see. Rates have crept up a bit. Right up to the point 1 00 eastern when we had the option i gave it a c minus. 2. 38 is the High Water Mark from the big rally we had. From the end of october you can see this is the 12th session we look to close in the 2. 30s. It is a long run of steady and strong climbs in yield. The last chart its the Foreign Exchange chart of the day. Bank of england down grades growth. The pound not having a very good day. Back to you. Thank you very much. Forget the anxiety of haggling or the hours you spend in the show room. All of that paperwork there is a new way to shop for a car and apparently only takes 30 minutes. We want you to weigh in. What is your biggest car buying complaint. Go to cnbc. Com vote. First to phil lebeau who can tell us about how i can get a car in 30 minutes. Real quick. Last time you bought a car, how long did it take you at the dealership . Depends when you start measuring. It was a process spelled out over several days. When i went to pick it up it went pretty quickly. A lot of people complain about how long it takes at a dealership. Auto nation, the nations largest auto dealership chain has come up with a new system called smart choice express. You go online and look at the entire inventory of all vehicles in the country. You can set up pricing and do a little bit of haggling and financing. You do the paperwork at home. Then what happens . Depending on when they tell you your vehicle is ready you go to an auto nation dealership. When crow get to the dealership the vehicle will be waiting for you. They say if it is a clean transaction you have everything in order you can be out the door within a half hour. So that when you come to the store the only thing that is left is the enjoyable part of the experience. A firm that you selected the car you want if you want to make a change we can quickly do that for you, but youre empowered. They are going to roll out the system started next month in southern florida. We heard from somebody online who saw the story and said i would love to be able to buy my car and configure my car online for a delivery right to my home. I sign my paperwork and near painless car buying. The franchise laws mean we are going to have dealerships for the foreseeable future. This does bring up an interesting transition with other dealers. Can they make the car buying experience seamless from online to the dealership . That is the goal here when they roll out the service. The biggest thing and it was a break through. I think the internet has a lot to do with it is that the whole process has become transparent. I find dealers are much more transparent about showing you what the dealer cost was than they used to be. That is a big improvement. That vote shows what the number one complaint people have, its personnel at dealerships. This service is a Great Service if the right people are running it. They are going to be focusing on training the right people. If you have a transaction and a yahoo you are working with seriously that is the number one complaint that i hear from people regardless of the dealership. If the person there is not good the system and whole experience is not good. I want the dealer or sales person not to treat me like they are doing me a favor. I want them to look at it that way. Thanks very much. We want to note the Dow Jones Industrial average has turned positive and also the nasdaq is positive. How much would you pay to get your kids into an Ivy League School . How Many American parents are now turning to College Planners and paying some very big money for the service. We are talking six figures. Join the conversation. Would you pay that kind of money to get into a Top University . Go to cnbc. Com vote. Power is back in two. Go ahead and put your bag right here. Have a nice flight traveling can feel like one big mystery. Youre never quite sure what is coming your way. But when youve got an entire company who knows that the most ontime flights are nothing if we cant get your things there too. Its no wonder more People Choose delta than any other airline. Welcome back. Right around the corner right down the street from where we are here at the nyse that is the Freedom Tower. What we have right now is some window washers, there are two people on that scaffolding. That is a live picture right now, as you can see, as we focus in and zoom in the scaffolding, one cable on that scaffolding has snapped. Two people are on the scaffolding. We believe they are in, somewhere in the 60s in terms of floor location, at Freedom Tower. The new York Fire Department is on the scene. They are trying to strategize about what is the best approach to get these two people off of the tower. Very scary, very dangerous situation for the people and everyone on the ground who is watching. Everybody is holding their breath. One cable has snapped. Two people suspended somewhere in the 60s at the Freedom Tower. We will continue to monitor this developing story for you. Lets go to dominic chu for a market flash. Certainly a scary situation there. Obviously scary, something we are watching closely. Turning back to the markets. Alibaba shares at session highs. Remember it is singles day, the sales day that it had sored 56 . The chinese ecommerce giant has a market cap around 295 billion. Shares up 4 since it reported earnings last week. If it was a member of the s p 500 it would rank among the indexs top ten largest companies. We know it is bigger than proctor gamble. It is bigger than walmart and it is also bigger than general electric. Back to you. That is impressive stats. Lets get the trading action at the big board. Bob pisani has the latest. We turned positive briefly and now dipped back into negative. Consolidation is very important for the markets. Look at the s p 500. We were back into record territory at the end of october as i recall there. Important thing is we have very narrow trading ranges. Eight, nine, ten points a day in the s p 500. Look at the vix. Vix has essentially dropped back down. That is a very Important Development we have seen. Here is also what is important. Here is where we are right now here. The market is consolidating the gains that we have seen recently. We have had these flattish slightly up days. This is not green light for risk. The first caveat is europe. Everybody is willing to deal with weak europe as long as ecb is strong. Isis, ebola and ukraine reemerging as issues is also a problem. Here is a problem that i see. S p 500, russell 2000 very overbought right now. Thats going to make it difficult. Thats why moving side ways is good and works off that overbought condition. Remember this report, the chinese hacking the u. S. Weather system, a new etf that is Cyber Security etf. What a great day to have this. No kidding. They have an etf for everything these days. Lets bring in kenny pokari. Welcome guys. David, let me start with you and dove tail with what bob was saying. We made consecutive new highs, probably understandable that this market would want to consolidate and perhaps healthy. Thank you for having me. I agree with some of that. I think on the one hand we are seeing a lot of risks in the Market Driven primarily by Global Growth concerns with europe and japan. U. S. Market has been reaching new highs. There are reasons to be cautious. The flip side is that we are seeing really good indicators in the u. S. We have gdp growth up 3. 5 . We have Companies Reporting well. We have consumers benefitting from lower unemployment and lower oil. I think there could be more legs for continued improvement in the u. S. , as well. You say stay fully invested. Cvs, dr. Pepper and Johnson Johnson are three stocks you like. It is not really exciting. Not a whole lot of volume which gives you that kind of sense of apathy but it is good that it is consolidating. I do think europe remains the risk because if we saw that they cut the Global Growth forecast. Friday will bring italian growth number. If italy is in the session and the ecb doesnt stand up and put its money where its mouth is Global Investors will get frustrated and take some risk off the table. It means a reevaluation. We have to leave it there. We have a lot of breaking news this hour. We will have you back very soon. Thank you very much. Would you pay 100,000 for acceptance into a Top University if it was guaranteed basically . Go to cnbc. Com vote to join our conversation. Sharon epperson for the story on the it costly College Planners. I pay 100,000 to pay 80,000 to go to yale. Many parents are willing to pay this price. Since 2008 the number of College Planning services has quadrupled to more than 8,000. Some of the costliest say 90 to 100 of their clients get into one of their top three college choices. A complete package from initial consultation beginning in junior year of high school through the College Application process can run as much as 100,000 for guidance from one of the top College Planners. Getting help with the College Application process can cost as much as 50,000. These services are definitely for a select crowd. The Higher Ed Landscape as it sits right now, the populations that are best served in a way are families from low socioeconomic back grounds because they will qualify for a lot of pro bono work but will also qualify for a very generous Financial Aid package from some of the best schools. And then, again, of course, the most affluent. Some say it is largely the middle class marginalized. They say advisers work with a group of families that would not need Financial Aid. Very interesting. A lot more information on cnbc. Com. Great story about is a College Planner really worth it for you. Would you pay 100,000 for acceptance into a Top University . 82 of you say no. Just 18 . 19 say yes. We are continuing to follow the very frightening situation unfolding basically right down the street from where we are. That is a big broad view of the Freedom Tower. And right now if you take a look at this very close shot that is a window washing scaffolding, one cable on that scaffolding has snapped. According to the Fire Department there are two people in that scaffolding. As you can see that is an extremely precarious situation. The fdny is on the scene. We continue to monitor the situation. We certainly hope they are able to get to those two people as quickly as possible. It must be an absolutely terrifying experience. We are back with more on that and the markets on power lunch. Theres confidence. 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And its only on fidelity. Com. Open an account and find more of the expertise you need to be a better investor. Some new developments in the story that is unfolding just down the street from where we are. You are looking at the Freedom Tower. And at this point we know that there are two people or at least that is what the Fire Department has told us, there are two people in that scaffolding. They were window washers on the 69th floor. A cable snapped. If you look closely at that last shot you can see someone, take a look underneath the scaffolding and you can see someone it looks like they are reaching out a window. You can see movement in the scaffolding. Keep in mind the first tenants to move into the World Trade Center which is 1,776 feet in height. It is basically the tallest building in the country. And right now they are trying to figure out how to get those two people off of that scaffolding. They must be absolutely terrified. We are continuing to watch it. It is an extremely precarious situation. Look at the way that is tilted down. One trader came by and said they have closed streets. I cant confirm that other than from what he told me but they have closed some streets surrounding the Freedom Tower. I suppose so that they can get emergency vehicles into that particular area. Also keep in mind that the Freedom Tower is quite near, basically right next door to the september 11 memorial and there are millions of tourists that come through that particular site every day. I dont know what side of the Freedom Tower it is on. I believe it is the side that faces hudson city simply because of the shot that our great director, dan, took earlier. Jackie deangelis is on the scene. Reporter it is the south side where the scaffolding is hanging. As i walked over here i can see scaffolding on the north side being raised. I confirmed with Emergency Services unit professional that they are raising that scaffolding as a backup plan. What they are doing is the first plan of action is to try to cut the windows out. They said if that works it will take about 15 or 20 minutes. They are getting contingency plans in place, as well. You can imagine scene down here quite chaotic. News crews have arrived, emergency vehicles, fire trucks, as well causing all kinds of disturbances, a lot of people watching to see what will happen here. It sounds like they have it under control with the two plans in place. We are hoping they will get the people off the scaffolding in 15 to 20 minutes. Pretty dramatic pictures coming in. This is a picture from the inside. It is a view from the 68th floor and gives us a little more perspective. If you look to the left of that picture you see the statue of liberty in the hudson harbor down at the mid point of the screen. That gives you perspective. Look how small the statue of liberty looks from that high up. It gives you perspective as to how high the two window washers are. We hope that second cable holds and they are able to get them out of that scaffolding as very quickly as possible. A dangerous situation for them but also an extremely dangerous situation for those fdny rescuers who are trying to get them off as quickly as possible. These are highly skilled individuals who work for the fdny as they are highly skilled in virtually every city that has buildings though there is no building of this height or scale in the country. Interesting as jackie pointed out that they are trying to cut out the windows there. You cant just crank them open. These are not your marvin windows, folks. To somehow extract the individuals from that basket that is dangling there. We saw as you pointed out that it did seem like there was some hand traffic moving back and forth between that basket. You see it again. You see some movement there as they try to extract those folks. We want to let our viewers know that although you are looking at live picture, we put a seven second delay on this, god forbid something happens, there is a seven second delay on this particular live shot just so that you know. Very interesting on the newly opened. Nast located below where this is taking place on the 69th floor. They are apparently from the 20th to 44th floor. They recently moved into that building within the last two or three weeks as i recall. One of the anchor tenants moving. You are still with us, can you give us the scene on it ground . I had heard from one trader that they were closing off some streets surrounding the Freedom Tower. Are they keeping people away . Reporter they have actually closed off the block, any entry to get on to the sidewalk of that building is closed at this point. As you said it really is dramatic as you are watching this. It looks like skraflding doesnt seem like its straight. The other side is straight. This one seems like it is at an angle. People are watching im going into a closed off area. They keep closing off more areas to keep people away from this. So we are watching a live image of window washers at one World Trade Center, the Freedom Tower. New York Police Department and Fire Department attempting to saw out the windows in order to get the window washing folks off of that basket that is there at a precarious angle. Apparently the cable just basically malfunctioned or snapped as they were being either lowered or raised to do their jobs. For perspective i mentioned earlier that the tower is 1,776 feet in height. Its basically steps from where the north tower stood until september 11, obviously, of 2001. It is 104 stories high including observation decks at the very top of the World Trade Center. We now know the window washers are trapped at the 69th floor. We really hope that they are able to extricate them. One cable has snapped. The Fire Department is on the scene. Jackie deangelis telling us some of the streets are closed because they are trying to make sure they are able to get emergency vehicles in there and Emergency Personnel in there. Jackie mentioning to us that they are trying to keep people away and keep people back and a reminder to our viewers although you are looking at a live picture we have a seven second delay on the picture just in case something happens. They are working. Jackie mentioned a moment ago under normal circumstances the fdny said they could possibly cut out windows within about 15 minutes and so this is high drama. We are probably into that 15minute span. It does appear there is some connection between the interior of the building. We have a photograph from the interior looking out. Some connection has been established between the interior of the building and that basket that is hanging there so precariously. Jackie is back now. We are awaiting a statement from the Port Authority. The Port Authority owns the building. We are waiting for some sort of statement from them. As far as i know it has only been nypd and new York Fire Department that have commented on this. Guys, as far as i can tell it is only the nypd and fdny that is here on the scene right now working on it. More and more of a crowd has gathered. People obviously watching to see what is going to happen and also a lot of social media tweeting going on, people taking photographs. Come to the south side. We lost the shot there momentarily. Obviously we reestablished it. Not that anything bad happened. It went to black for a second or two because the scaffold is still dangling. From that angle you can see just how sort of diagonal that scaffolding is. It is diagonal. It should be horizontal. Let me interject. We have statistics here about the building itself. The exterior cladding contains enough glass to cover 20 football fields to put in perspective how large this is. It has as much steel as you would find in 20,000 cars and enough concrete from new york to chicago. It has been a massive intertaking which began in 2006. We hope this situation is resolved as quickly as possible. Reporter there are helicopters flying overhead right now. What you can see from the south side that dangling from the cable and the angle that the scaffolding is on right now it looks like there may be a second set of scaffolding coming down from the top being lowered very slowly. Im not sure what happened with the plan to cut the windows out because i dont see any openings just yet. It seems like there is a second set of scaffolding being lowered down from what i can see right now. One of our producers telling me there is 1. 2 million square feet of space in that particular building. They moved in just recently, about 175 employees moved in, the first wave of the companys work force. They are going to phase them into that building. Hopefully they will not be witness to something unfortunate right now. We are waiting to see whether or not jackie mentioned the scaffolding coming down hopefully they are able to get it to them as soon as possible and get those people off of there. You