Transcripts For CNBC Power Lunch 20141117

Nutella, involving a lot of questions, a lot of house, and mexicos first lady. Theres a story from brazil that has just about everybody asking where is the money. Michelle carusocabrera is all over the stories. Stocks march to record highs, a new world opens up for investors, bob is at the nyse to explain this is a very big deal, right, bob . It is, indeed, tyler. The much anticipated Shanghai Hong Kong Stock Exchange went live for the first time, first time foreigners can own 560 Mainland China stocks directly. Look at the full screen here. In addition to stocks you can own that list in hong kong. Now, the hitch here, this is important, you have to be affiliated with a broker with a license in hong kong to trade the stocks. According to the Stock Exchange website, many u. S. And european Brokerage Firms are participating in the exchange because they have brokerage licenses in hong kong. The firms, take a look here, well known names in the u. S. , interak tich brokers is one, Goldman Sachs asia, Morgan Stanley hong kong, and bnp, the french banking firm. Theres many, many more on the list. Whether or not you as an individual can train Mainland China stocks depends on whether your broker has a license in hong kong number one, and number two, whether u. S. Individuals have access to all the exchanges. What you want to do if you are interested, call the your office and speak with your broker. The i spoke with the hong kong brokerage last night and said trading went off with the new style without a hitch. Tyler, a big step in the process of opening up trading in china stocks. Next big stock includs stocks in the emerging market indexes, that would force a lot of buyers into chinese shares. Tyler, im not anticipating that for the next year, but this is a big step in opening up the rest of china to the trading world. Back to you. Bob, thank you very much. Stay with us, why dont you . We have more now with cnbc economic cricketer John Rutledge with the global boutique. Good to see you. How big a phenomena is this from where you sit . Very big deal. Its tricky. Talk about that in a minute, but its very important for china. Chinamen menwants to open up th capital markets. They dont like hooking up to the u. S. An europe anymore. They needed to develop an international rnb, and this is a big step in the direction and explains why china will not let go of hong kong because they are hooked together as part of the plan. Is this a way not only for western or american investors to get into some heretofor get blocked stocks to move freely outside the country . Its both of those, tyler. Today in the first day of trading, northbound orders, Foreign Investors buying mainland shares out numbered southbound orders about 10 to 1. So initially, at least, the foreign institutions are crowding in to the shanghai market. Because they couldnt get in before, theyve essentially overpriced Hong Kong Listed chinese companies. Right. That is companies that are listed in both markets, too expensive in hong kong relative to shanghai, and that means, of course, small caps are too expensive in shanghai. Theres going to be an arbitrage where they are driven back together. Bob, drop in here. Thats an important point, john. Its, in theory, 60 companies that dual list on the hong kong and other exchanges in china. Youd think theres arbitrage when its out of whack, but its difficult because of the way authorities set up the mechanism there. Hopefully thatll get a little bit easier at this point, john. John, we just looked absolutely. Theres a list of some of those in line too. We just looked, john, at a list of the larger market Cap Companies that now part of the Hong Kongshanghai connect. Have you been doing anything this morning with the opening in mind, and are there companies on your buy list . Ive not been doing buying. The relations make the first trades very difficult. The etfs listed in the u. S. , which are basically hong kong stocks and adrs, went down today, pretty big, 1 or 2 for the day, and so the interesting stocks are the large cap stocks listed in the shanghai market, basically the top market caps in shanghai are banks, insurance company, and Energy Shares, and Energy Shares you make an oil priced bet too, but i think if you bought that top ten market cap stocks in shanghai and then took the lift up as the foreign institutions buy in, thats not a bad way to initially play this, but you got to be careful because even in western markets, dual listed shares do not always arbitrage together as the behavior finance shows like royal dutch shell. I think the key points here is financials and material stocks make up the bulk of the well known names that are on the hong kong exchange. The shares, theres smaller consumer oriented companies, you know, the world 1 not just alibaba for Chinese Consumers, but hundreds of them among the Chinese Markets that anyone had access to. Teem who want access to the Chinese Consumer get a wider variety than just alibaba, for example. Thank you so much. Bob, thanks to you, and John Rutledge, thank you very much. Great. More on this on the website at cnbc. Com. Check out japan focused initiatives today. They are whacked on news that japan took a surprise turn into recession. Worlds Third Largest economy shrinking for a Second Straight Quarter as consumer and corporate spending fails to gain traction after a sales tax increase in april. If youre short japan, you are making out. Check out the proshares ultra short, ci japan, thats funding that etf itself, up three and a third percent today alone. Lets go to kate rogers now with the flash desk. Hey, tyler, a lot of news today, beginning with a megamerger. Agreed to be bought by activists for 66 billion and 219 a share. That ends a hostile bid by bill ackman. Trading up 5 , and actavis up 2 1 . They could not justify paying the high price, trading up under half a personality. In other drug news, they would buy a portfolio of pet drugs from the labs for 255 million trading up two and a third personality today. As for abbott labs, thats up a third percent. Back to you. Thank you. Oil moves lower, prices plunge 20 over three months. There you see west texas down 69 cents and ice brent crude off 61 cents. Midterms are over. Looks like the Keystone Pipeline may well get the stamp of approval from congress for what that is worth. But its still facing that veto threat from the white house. Jackie deangeles looking at stocks that could benefit from the vote on the pipeline. Jackie . Good afternoon, tyler, its not a done deal yet, but thats right. We are looking at the invester side of it, stock angles to play. Theres a lot of names, not giving them all to you, but look at angles and examples. Most obvious play, of course, is transcanada. The builder, the constructer of the nearly 8 billion project, but on the gas an exploration side, theres a lot of names in canada that are moving product through the pipeline. One is canadian natural resources. Also, consider the refiners, look at valero, benefitting from the lower leg of the keystone that opened this year. They could see action from there. Conoco has significant states in the oil sands area, and theres a houston based company, quanta services, an infrastructure play, and theres an operating unit that helps with the construction of the pipeline. A lot of angles to look at this from. I want to note on crude oil, two sides to the story here on keystone. You get the bulls saying, more exploration if this is approved, and also maybe lifting that ban on exports. The bear case to this is we got the oil in the united states, we dont necessarily need to bring more in right now. Thats why prices are depressed. Theres a lot going on here surround keystone, back to you. Thank you very much. In atlantic city, the stakes are getting higher. Another casino shuts down, the trump taj mahal. Can they get together . Weigh in at cnbc. Com vote, and Morgan Brennan rolling the dice throughout the story has whats next for atlantic citys future. Morgan . Hi, tyler. Another losing hand for onetime gaming mekkah, atlantic city. They are expected to close trump taj mahal, and this will be the fifth casino in the hard hit city to shutter this year as competition in neighboring states eroded revenues. Its owned by Trump Entertainment Resorts that closed trump plaza in september, an estimated 3,000 fulltime workers lose jobs from this. That brings the tally of lost positions up to 11,000 for the year, but it also means, as you can see on this map here, that a vast swath of the board walk will now be vacant because this property sits next to caesars show boat that closed, and next to that, rebel, remaining closed as a new owner put an expected 200 million in renovations. Perhaps most importantly, this closing brings a big battle in focus, which is property taxes. The taj and carl icahn says it needs 17 5 million in tax breaks from the city and state to stay open. So far, thats been rejected it adds to a growing list of casinos fighting assessments. Theres an e kwif lanlt of 18 acs annual budget last month, and the city had to pay a hefty tax refound. The implications of this, tyler are huge, and they are suffering from high employment, unemployment, high crime, and high poverty, and all of this as officials intend to auction off bonds to raise money later this month. A human tragedy there, morgan, with 11,000 individuals who lost their jobs so far this year from the shut down of those casinos, very, very sad in a very stressed city as well. Lets lock in the vote on atlantic city, and the question we asked can ac get itself together . 36 say, yes, it will over time. 64 of you say, no, its a lost cause. Kate rogers now for a market flash. Kate . Tyler, check out the biggest percentage loser in the s p 500. The independent oil and Natural Gas Company will reduce spending from 50 to 550 million in 2015 citing decline in oil prices. The stock currently trading down about near 12 . Back to you. Thank you. Check out this frozen water fountain. It is so cold, the water is freezing as it comes out in that city of if thes, kansas city, and this November Arctic blast hitting large parts of the u. S. , here to tell us more is whether channels carl parker. So looks a lot more like the dead of winter than november right now. Look at the snow cover in the country, and half of the nation now covered in snow, of course, that makes cold air colder coming down from canada. Its chilly in the midwest and northeast through midweek, and then well see some moderation, those cold temperatures begin to lift out by the weekend, and not bad at all saturday, sunday, and monday for the east, another cold shot behind that, though, moving in towards the holiday. How about snow . Light snow now, but thats going to be replaced by very strong west winds coming across the great lakes, and that will set up a tremendous lake effect snow band. Talking two to three feet of snow there from buffalo and on southward, very difficult travel and blizzard conditions, hvp snow on the way for western michigan, could be double digits from grand rapids to Benton Harbor and kalamazoo. Back to you. Two feet in buffalo. Might be wondering where sue is . Trying to get to where the bulls are roaming on wall street. Shes stuck in traffic. Shell join us when she gets there. Three top stock picks from the three smartest stock pickers we know of the alist you need to see, and well show it to you. Plus, if you have not heard from the hr team yet about next years benefits, you will soon. Kate rogers will show us whats happening with Business Owners and their staffs. Thats right, tyler. 2015 bringings new challenges and opportunities stemming from president obamas Affordable Care act. Everyone mewants to know, what does it mean for me . Ill run through that after the break. To the Stock Exchange, how its shaping up, dow up 25 points on the trader session, and the s p also at session highs as well. As you can see the s ps up about 1. 37. All right, one of the biggest oil deals in years, haliburton buying hughes in cash and stock, and the biggest player in the arena, getting 67. 7, both stocks going in different directions, halliburton down, and baker hughes up 11 . Downgrading the Hotel Operators caughting it to a buy, following a 630 run up in the stock. Ubs likes marriotts story, but theres signs of a slow down in the current growth cycle. Downgrading starwood down for similar reasons. Faulty ignition switches on gm vehicles get more time to file claims. Ken feinberg overseeing the Compensation Fund says they will now allow an extra month until january 31st, 2015. A very rough week for u 2s bono. He injured his arm, than a injury requires surgery to repair causing the band to shift the schedule including cancelling an appearance on the tonight show starring jimmy fallon. Last week, his private plane lost a hatch as landing in an airport in berlin, germany. Everybody okay, but, obviously, very scary stuff. And it is happened again, the noro virus striking at sea, this time, it was aboard a Crown Princess cruise returning from tahiti and hawaii. Sounds fun until the virus struck. 170 people were sickened, and the ship returned to port in san pedro, california, a day earlier than scheduled. Officials are on the case. Can value, and shares of carnival, little changed, down a tenth percent, but up 18 in the year. Ty, back to you. Glad i can say that. Sue, you have no idea how glad i am youre there. Fantastic. Its real, man, get on the west side drive, youre caught in the traffic. Love it, hate it, like it or not, president obamas Affordable Care act impacts businesses in the year ahead. Kate rogers, but shes here to explain what leaders in that community, their Human Resources team, and their employees are in for. Kate . No pressure, tyler. No pressure, do it all. Stakes are high for Small Businesses, this open Enrollment Period kicked off saturday and runs through march. No more skirting penalties for companies with 100 or more fulltime workers. They now have to offer their workers government approved Health Insurance or face a penalty of 2,000 per worker per year for failing to comply. Businesses with between 50 and 99 fulltimers, those who work at least 30 hours a week will be facing these same concerns in 2016 as its their turn to comply. These cuts are heavy on the mind of Small Companies. Adp released a report on the top concerns for mid sized businesses with between 50 and 999 workers. In order, their top worries are Health Care Benefit costs, Affordable Care act, and the level of government regulations they face. While individuals use healthcare. Gov, Small Companies send workers to the Small Business Health Options or shop exchanges. Enrollment is not looking promising so far. A Government Accountability Office Reports finds enrollment will fall short of the projected 2 million Small Business workers on both state and local shop exchanges. Companies and workers have not been rushing into the exchanges ahead of the mandatory enrollment. This summer, 76,000 workers enrolled on these exchanges from 18 states. So whats important about enrollment projections, of course, is the fact if they are not met, premiums rise. Insurance companies hedge bets the summer before Enrollment Period begins, so if this years goals are not met, prices hike next year. Back to you, tyler. Thank you very much. Well have three top stock picks from the three smartest stock pickers around. Plus, two big scandals, and a mystery mexican mansion in brazils once great oil company. The house of scandal, mexico president and first lady have ownership of or potentially have ownership of, juicy updates on the stories today, just two minutes away. The cnbc Trend Tracker live data board brought to you by the cme group. For tapping into a wealth of experience. For access to one of the top Wealth Management firms in the country. For a team of Financial Professionals who provide customized solutions. For all of your Wealth Management and retirement goals, discover how pnc Wealth Management can help you achieve. Visit pnc. Com wealthsolutions to find out more. [ radio chatter ] [ male announcer ] andrew. Rita. Sandy. Meet chris jackie joe. Minor damage, or major disaster, when you need us most, were there. State farm. Were a force of nature, too. Were a force of nature, too. How can in china,sumption impact wool exports from new zealand, textile production in spain, and the use of medical technology 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. But what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. Welcome back to power lunch, linkedn, facebook planning a new product and professionals called facebook at work. In effort to compete with it, google drive and microsoft office. Linkedin trading down 5 and facebook is down 1 . Back to you, sue. Thank you very much. Look at the right side of the screen because youll see a fire ball coming from kobani, syria where troops fend off thousands of fighters from the islamic state. They are helped from the u. S. Air force, and reports on the scene say thats what likely caused that fire ball in North Eastern syria along the turkish border. Well getting rare video in from syrias largest oil feel. It was produced by kurds and syria who share the revenue, but for now, production has halted because that oil field is surrounded by isis. Ty . Brazils Company Owned by the government is going down in flames. Michelle carusocabrera has details on a mushrooming scandal. The hits keep oncoming, not meeting the production targets, and this is on top of friday when the offices were raided across the country and arrests were made, and now they are saying as of friday, their earnings report, its going to be delayed indefinitely because they dont know what effect the scandal has on asset prices. What do the allegations do when it comes to the scandal . Bribery, money laundering, calling it the car wash scandal, and allegation is at least hundreds of millions of dollars may have been siphoned away from petrobras. The stock is hammered as a result of this and declining oil prices, remember, Oil Production in brazil is expensive, offshore, very deep, and they need oil at 80 to 85 a barrel in order for the extraction costs to break even. Add that with the scandal, and questions about what youre going to ever know about their earnings, take a look. Now, this, the bonds, remember this is one of the most indebted Oil Companies in the world because they spend so much money offshore and deep. This is the price of the bonds. Look back just a couple months ago, tyler. Trading above par. Yeah. Up at 104. Now at 97 cents. Look at the peak there. Exactly. The question is how far up the chain does this go . The current president of brazil used to be the chairman of petrobras. Well see. Well find out. Switching to mexico, another scandal that, michelle, you covered for us ahead of other press operations last week involving the first lady of mexico, some houses, some government contracts, and whats the latest . Now we know its multiple houses. Latest is that mexicos first lady, a former soap opera star, received two homes from their employer, the Major Television network in mexico, subject to a new set of regulations imposed by her Husbands Administration last year. The tv network is called televisa, and she was given title to that home after she married her husband, who was then a governor. The tv network says theres nothing untoward about this, they made a statement saying its common to use property as retention microphone for employees, and they do it with many employees. Last property they gave her is adjacent to the now controversial mansion worth a reported 7 million and seen in a photo shoot for a spanish gossip magazine hola, whats controversial . The title of the house is held by a Construction Company that has won many lucrative contracts. She paying off a loan to the Construction Company, and when shes finished, they transfer the property to her name. When they returned from the summit on saturday, the president announced theres going to be more answers on the house and why exactly they have it. All right. Thank you very much. Michelle carusocabrera. Sue, down to you. Time to look at the metals markets, and gold is closing right now, ty, and lets get you the latest read because its actively traded today, right now, down 2. 5 dollars, but silver, copper, palladium, and platinum have been actively traded in todays session all in the red across the board with actually the plat number market, one of the biggest losers for percentage movers. The scenario and bond market, we are tracking the action at the cme, over to you, rick. Glad you fought the traffic and made it, sue. Happy about that. Theres not a lot of traffic in terms where treasuries and, indeed, many ten year sovereigns are stopping with respect to the technicals. Look at the intraday of ten, that chart looks like yes are up, but just a couple basis points into the well worn range of 230 to 238 weve been in for three weeks of trading days. Now, lets look at several sovereigns from the standpoint of october 1st of this year. Of course, starting with our 10s, resistance 238 to 240. Look whats going on with bunds, and the gilt, ten year between 225 and 2 286789 the similarity of the patterns, despite many differences in underlying economies, all share one common denominator which is back ped pedaling from central banking activity. That last chart epitomizes its not hard to get stocks up if your income is down. The dollar yen goes down, yen going down against the nikkei, which did not have a terrific day today because of the gdp was far from terrific. Sue, tyler, back to you. Very good point, rick, very good point, thank you. Well, if you want a list of the best stock pickers in the u. S. A. And world, dont move, a new list is out, and kate kelly has it. Right, kate . Thats right, sue, a firm called semetric showed us the best performing Hedge Fund Managers are to date based on court filings. The names will surprise you when we come back. Music. The getaway vehicle for all the confidence you need. Td ameritrade. You got this. Welcome back, Energy Stocks fall in the face of lower oil prices. Resources, new field explorati n exploration, among the leading laggards today. On the flip side, airlines moving higher. Not only benefits from lower oil prices, but they are not passing savings on to consumers as they fly to near capacity. United continue thenal, southwest, american, and delta all to the upside, tyler . Well, kate, thank you very much. From one kate to another kate. The world is a competitive place, perhaps nowhere is that as true as it is in the world of stock picking from actively managed funds to the hedge fund world, kate kelly is here to name the three top stock pickers and their choices, kate . We have a study conducted by the Research Firm to find out who are the best single stock pickers these day in a universe of a thousand hedge funds look at. Results were interesting, and perhaps not what youd expect using the recent round of filings that correlates well to a typical long and short funds, overall performance for that period of time. Take a look at what they found as the five top stock picking funds out there. Names you would not know, whale rock capital management, a Boston Hedge Fund founded by a former tech analyst, alexander that manages 850 Million Dollars in assets, presuming whale rock holds same positions as it did on september 30th. The study shows the data storage provider was the best in the long portfolio. We dont know the short side, and alibaba and mip shop, the discount retailers were close seconds. Second best performing manager is another firm called matrix capital, and the winning streak so far this quarter is about tech. The Organizational Software company tablo software, the communications workday, and professional social network, linkedin, of course, and third winner is par capital management, a boston based firm whose founder was an Airline Analyst at one point at luma sales. With that knowledge to driveway from, they profited on paper. Alaska air, delta airline, and global eagle entertainment so far this quart, provider of data, tv, and movie content to airlines, tyler. I think i said i would give you five, but i gave you three. They were good ones. Holdings as of september 30, right . Heres the premise, from september 30, but assume they hold them for six weeks or so. Biggest holdings or best performing ones . Most well performing on the long on the side. We dont know what the short side is or commodities are, but in the stock long position ar a arena, 24 is the best set of performers. You know always fun to know. What are they doing right . Boston . I dont know. They were in the same office towerment might be something in the water there. We need a live shot on where the Hedge Fund Action is in boston. Thank you very much. Sue, down to you. Very interesting. All right, overseas, japan slips into recession, and Jp Morgan Says dump the u. S. And buy europe. A good idea right now or not as we head into the Holiday Season . Darren richards joining us, chief Investment Officer of akt wealth advisers, and paul deidrich, the ceo of global markets, good to see you both. Thank you. Paul, starting with you. You know, its been a rough year for your peers. You managed to out perform your peers, but you are a value investor, and given what we see in the market, do you still find value, or is it tougher . Its getting much tougher to find it in this particular market. Im barely getting enough for diversified portfolio, but they are still there, its interesting because what we saw with whale rock and par, they have many of the holdings that i have, and their Value Investors too, and it seems to me its the Value Investors are the ones outperforming last year, out jempling benchmarks and the s p this year, and i think that Value Investors buying under valued stocks, thats will continue to overperform. I want you to comment, if you would, on japan. I know you were overweight emerging asia markets. Do you still hold that position, and was japan a surprise to you as it was to many people . Hi, sue. Yeah, we hold emerging markets, but exjapan. Surprised me they went in recession, but surprised seeing the Market Holding its own. The vix index barely higher a treasury moved higher. This indicates whats happening in japan is a global issue and will affect europe and the united states, but end deppic of whats happening in japan, heavy debt levels for generations and all these decades. Pleased with how the market rebounded so far. What do you put money in right now, darren, and then, palm, ill ask you the same question. Last month, increased equity exposure, large cap stocks and international stocks. The jp morgan piece indicated they moved u. S. To international, particularly europe, it makes sense. Timing is hard to call. Last year, we were small caps because they rally first, so we think as europe is set up for recovery, but were not there yet. Weve been inching into the market. Okay, paul, final word. Where would you its hard to find value, but if you find places to put cash to work here or overseas, where is it . Value stocks, under value stocks that have low pes, high returns on equity, high free cash flow, and also looking at long term trends, and i think gasoline prices are going to be lower for a while, and theres a lot of Companies Like macys, alaska air, cvr refining that are value stocks that are going to benefit from lower gas prices. The second oil prices and the second area is storage. Im finding data storage, this is the underlying currency of the tech economy. Were using more and more of it whether its at home or in the cloud, everything else, and these stocks micron technology, seagate, western digital, they are undervalued, have huge returns on equity, huge free cash flow, and this is where weve placed a lot of emphasis. All right. Great ideas, gentlemyegentlemen you so much. Good to see you. Thanks, you too, sue. Looks like its a foggy future for google glass. Some developers reporting ditching the device, and our john ford has the story. John . Tyler, its been two and a half years since we heard of google glass, first kind of futuristic project, google x, googles lab unit that looks into the future, and right now, it looks, according to the roiters story and whats seen in the tech, some back away from it. Nine out of 16 Developers Say they are no longer developing for the device. Google says were committed to it, hundreds of engineers working on it, and were continuing to push forward, but some developer like twitter, known to take a leap on a number of mobile platforms has backed off its development on google glass, all of this leads to questions about googles investment, if it is dedicating all the engineers to the project, will it take off, cost 1500, never did roll out to the biggest mass market, and meanwhi meanwhile, when it comes to things you wear on your face, facebook purchased a company for 2 million, moving into the mainstream, and apple watch, a wrist device, gaining focus there. See what happens in the future. This device was to be a, what, a computer and camera in front of your eyes, right . Wear like glasses, a camera on it, makes some uneasy when people are in a bar or out in public. Are you filming me, are you not . Google said, regardless, its the future, but maybe not. John, thank you very much. All right, attention chocolate lovers, if you read the headlines about a looming chocolate shortage, relax. Sar ha eisen did a lot of research and has facts. One of the scariest stories now, a fear over a chocolate shortage everywhere, when the Companies Weigh in, theres reasons to be concerned, but we have brand new reporting suggesting its not all its cracked up to be of the well explain when we come back on power lunch. 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. You can bring back from a trip around the world. But you cant always bring back customer data. Because many customers dont like it when their data moves around. Can i go now . If youre going to do business globally, you need a cloud that can keep your data where it needs to be. Today, theres a new way to work and its made with ibm. Theres confidence. Then theres trusting your vehicle maintenance to ford service confidence. Our expertise, technology, and high quality parts means your peace of mind. Its no wonder last year we sold over three million tires. And during the big tire event, get up to 140 in mailin rebates on four select tires. Welcome back to power lunch, whirlpool trading near a record high on solid Growth Prospects and serious efforts to global expansion. In fact, the stock up some 12 after reported Third Quarter earnings last month. Its currently trading up over 2 . Sue . Thank you so much, kate. Well, chocolate lovers, chances are youve seen dire headlines. The world is running out of your favorite sweet. Guess what . Relax. Have a cup of swiss miss, or something better, who knows. The chocolate facts from the fiction floors today. Turns out fears of running out of chocolate are exaggerated. Weve been reporting on this, and there are reports saying its in production, as you can see, but the international koe call organization, in 2013, there was a deficit, but the organization promgts projected a surplus in 2014. In fact, a spokesman said the forecast of the cockococoa shor are, quote, very overdone. The latest to warn about it saying it sold nearly 12 more chocolate to companies this year, talking about a short fall on 2020, mars talk about this, saying they were going to invest more in cocoa stainability efforts, and train farmers and africa and invest in science to boost production. The demand skyrocketed, exploding in asia, places like china and india, and the supply side in ghana, conditions are not ideal like drought and disease are the issue. Its no wonder the crisis soared up close to 20 over the last 18 months, and with that, hershey and mars raised prices for consumers. Dont confuse those prices with the shortage. They did not foresee a significant deficit over the next five years. The upshot is you may pay more for chocolate, but that is a far cry from a shortage. Parrish the thought. Absolutely. Well pay up. Americans and people around the world pay for chocolate. It is more in demand, and part is the Health Benefits of chocolate too. Absolutely, finally the Health Benefits. Appreciate it. Tyler to you. Look at this, lava keeps on flowing over in hawaii. The lathest on the situation there. Plus, facebook goes to work. Going after linked in, and the call to legalize Sports Betting in the united states. Do you think it should be legal . Go to cnbc. Com vote and weigh in. Weve got a big power run down next. For tapping into a wealth of experience. For access to one of the top Wealth Management firms in the country. For a team of Financial Professionals who provide customized solutions. For all of your Wealth Management and retirement goals, discover how pnc Wealth Management can help you achieve. Visit pnc. Com wealthsolutions to find out more. But what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. Im just looking over the company bills. Up . Is that what we pay for internet . Yup. Dsl is about 90 bucks a month. Thats funny, for that price with comcast business, i think you get like 50 megabits. Wow thats fast. Personally, i prefer a slow internet. There is something about the sweet meditative glow of a loading website. Dont listen to the naysayer. Switch to comcast Business Today and get 50 megabits per second for 89. 95. Comcast business. Built for business. Take a look at this, the lava flow in hawaii continues to move. The closest lava is near a buddhist cemetery already breached previously by lava. Officials say none of the break out pose immediate threat to area residents, and all the burning so far has been limited to vegetation. All right. 2 00 p. M. Eastern time, its street signs, whats ahead . Hey, sue, were lucky today because we are talking to the finance philanthropist, we have his ear talking about the next big thing in pharma and how to best accelerate medical advances. What are the three threats to the markets and the three big opportunities . Im join today by the lovely melissa lee because brian is off on assignment. Welcoming melissa at the top of the show, and street signs the name of the game, and power lunch returns after this quick break. Hey i guess were going to need a new santa the music builds to a climax. more people are coming to audi than ever before. See why now is the best time. Audi will cover your first months payment on select models at the season of audi sales event. Visit audioffers. Com today. Yoare you kidding me . Oo . Everybodys on woowoo [elevator bell rings] woowoo . Lock and load, people were going all in on woowoo ok . Mark comp us up a profile page copy susie write us some posts ready grace upload some videos uploading i want sponsored woos. I want targeted woos. We want to be all up in your woowoo feeds gordon register our woowoo handle janice . we need an ethnically ambiguous woowoo mascot. Were cashing in the q4 budget, people, and were buyin some followers hahaha yeah [applause] woo woo woo woo woo woo woo woo woo woo woo woo woo woo woo woo woo oh yeah [laughing] dude. Are you still on woowoo . Naaaahh, man, my moms on woowoo. E financial noise financial noise financial noise financial noise welcome back, im Mary Thompson with breaking news that could affect victims of the madoff trustee, filed in court seeking to get 497 million from two funds that investors put money is in which in turn pit money in, and one of the funds, if it is approved by the court will be but more importantly, this brings the total amount of funds recovered for certain claims to 10. 3 billion, and so far, they approved 17. 5 billion in allowed claims from the victims of bernard madoff. Again, the recovery continue, and totals now at 10. 3 billion. Back to you. Thank you, time for the power run down. First off, facebook targeting linkedin, keeping the personal profiles separate from the professional one. Is there a demand . I dont know. Facebook has a mixed record when it comes to taking rivaling head on whether its snapchat, whether its a location based thing. With this one, i dont like staying logged on to facebook when i work. It tracks web activity. I think people want to keep their personal and professionalized maybe a little more separate than facebook is going to allow with this. If they launch it. Morgan, do you have reactions here . I did. You know, they declined a comment, but sources told cnbc this has not worked, in early stages, piloted, and expectation is they roll it out over the thex couple months, and the idea is its a separate site from regular facebook with document sharing, able to network with professional peers, and its an interesting idea, has the potential to increase User Engagement and crete another revenue stream. One year gain, boy. Move on to plans public today for a new park peer off manhattans west side that conjures images of dubai, funded by barry diller and feature a 700 seat amphitheater managed by an oscar winner producer. Sounds like a cool thing, and, of course, mr. Dylan is one of the leading backers of the popular high line on the west side. Thats right. Hollywood on the hudson this is dubbed. 170 million project and 130 million is supposed to come from the Family Foundation of barry dill e so this is an interesting project, and i think the fact that according to reports, any construction overages are paid by the foundation as well meaning this is a total win for new york city and residents. Look at that, john, cool, right . What are the squirrels going to think, though . Will they go out there . Those are the residents we have to worry about with wildlife. Theyll find it. All right, last topic. Should spots betting be legalized in the u. S. . We know the nba commissioner said last week, he would like to see a way for it to be legalized, regulated, presumably tax the. Do you see a chance Congress Approves this in the near future . Its the federal law thats keeping it off for now. I think theres a chance, but, you know, people worry about whether betting, legalized, ruins the game. I think Fantasy Sports ruins the games more than anything. But Fantasy Congress would be great. Do Fantasy Congress, sort of banker on which congressperson gets bills passed. That would engage the citizenry. Lets do that. Morgan, how about you . We have a number of congressmen coming out in opposition of this, but that being said, somethings got to give. Later this week, we have new jersey facing off in court with a major sports leagues over its plans to try to thwart that federal ban, and so well see states test the limits and push it out. Well see propoemts in favor of Sports Betting, estimated 400 billion a year is in the socalled black market of Sports Betting. People illegally betting on teams. Bring it to arguably with regulations, and it could be a driver. 63 say, yes, legalize it, and 37 of you say, no. Fantasy congress. Good idea. Sue . I agree with john. I absolutely agree with him. Take a look at the markets before going to street signs, and we have a move in the Dow Jones Industrial average of 25 points to the upside. S p up under 2, and nasdaq turned negative, the leader with the russell 2,000, and actually, thats the Percentage Leader to the downside. As for crude oil and where it sits now, of course, watching that very closely, and the oil market is down twothirds a percent on west texas intermediate and brept off half a percent. That you have it. Hope the ride home is better than the ride in today. Has to be. Thats all for power lunch. Well see you tomorrow, and street signs starts now. Have a good afternoon, everybody, stay dry if youre in the northeast. Trust me. Investing in the next big thing in pharma, talking to a philanthropist, land of the setting sunrising again economically speaking. Whats it mean for you . Settle in for the hour, folks, my copilot is melissa rain as brian is braving the wind and rain. Its dry here. Not much on the surface, but theres big movers, you mentioned the move in japan, watching the etf that tracks japan, the ewj, down 1. 5 , more on this in a bit, but it basically forced recessions since 2008. Theres a bid within the markets to safety as we