dispensation? >> no. >> we'll be doing ge earnings and "squawk on the street"? >> the report is -- try to hang in there. make sure you join us. "squawk on the street" is coming up next. live from the financial capital of the world, this is "squawk on the street." good morning. >> we'll be talking about the merger in a moment. >> looking forward to that. also this morning, two major quarterly reports. we start with our parent company, ge. earnings per share, 22 cents, moving five cents of restructuring charges, prophet fell 42% i guess the street was kind of expecting that. it indicates a small decline. >> bank of america posted a sec quarterly loss, 26 cents a share, worse than anyone had anticipated. obviously ge, bank of america not really helping the futures. we have been lower throughout the morning, mark. >> yeah. right now we're at 10.25 below fair value. that's about 100 on the dow. let's hit the markets. we start with cool breeze. here's the big board. >> we've seen futures drop. traders ver lightening up on the longs here. even if the earnings are not that bad. bank of america, it was a greater than expected loss, but very simple question. do you believe that credit quality is improving? if you do, then basic of america is a good stock to own. a lot of people think it's not. shares of ge, our parent company, down about 3%. it was disappointing on the top line. of course, you know what happened with ge capital overall and the continuing concerns there with that particular division. ibm, great quarter, they were up beautifully throughout the third quarter, stocks under some pressure, even though they guided higher, made some positive comments. finally just want to note, halliburton has had a lot of problems. natural gas prices have hurt them dramatically. what they need is an improvement in the rig count, an it's still not entirely clear they'll get that. this is an options exploration day, and the trading may well be affected. tradertalk.cnbc.com. bob? >> we'll have a lower open die spite better than expected results. the standout clearly will be google, much better than expectations. and the ceo, eric schmidt pretty optimistic about things. he's there's now the business confidence to invest heavily. they've seen a big pickup in online ad sales. clearly it is not translating throughout the west of wildly held, at least in the premarket, some of the other big names are also under just a bit of pressure today. losses of about 1% in premarket. the upgrade is at rbc. rangold has been benefiting, and then newtry system on an upgrade. sharon? >> traders jockeying for positions in the crude options ring. it has been quite a week for oil prices. we hit a new high overnight. will oil take a bit of a pause after the week-long rally? in fact it's the biggest weekly gain that we've seen in two months time. what has taken us here, of course, a lot of it has to do with the foreign exchanges market, and take a look at what has happened to the euro in this period of time. adam kminski out with a note that if it continues a rise, we could easily see higher prices toward the end of the year. if we go above that mark, we could see $80 oil very quickly. >> over to you in chicago. >> it's kind of interesting. i don't see big changes, basically unchanged to $3.45, but the dollar is higher today, and the two-year note yield is up about four basis points, you know, just something to pay attention to, i don't know how much they're related, but of course we paid a lot of attention to yesterday's story. what makes the story go up? quantitative easing, we saw that in the british pound yet it was lightly positive today, on short metrics. there was a slight negative revision, but all things being equal, many traders say the agency buy back at 10:30 eastern. mark haines back to you. now back to cnbc hq and what i'm sure will you the highlight of your day, david faber, breaking down ge's quarterly results. >> thanks, mark. we'll look at the old parent company. the stock is looking off a bit this morning on earnings. bottom line of which were better than many analysts had anticipated. they had a web call, not much to tell you in terms of headlines, some positive characterizations about the global mark, i would say from c oeismt jeff immelt, but of course they're down, down, down, no surprise there, as you look at the earnings per share number, coming in two cents about how far what had been expectations, and there is a look, however, at the revenue like. capital and fun was down the most in risen. and energy infrastructure managing to do better. now, you know, in temples of earnings, it's a bit of a different story. technology down, we're doing about 11%. nbc also up 13%. a lot of this is what you've seen at a lot of corporations, namely cost cutting in the face of declining revenues, significant cost cutting, enhancing margins, hence some up numbers. capital and finance, however, not certainly an up number, but profitable nonetheless, $263 million was the actual earnings for capital and finance, down as you saw, 80% on revenues that were down 30%. as for highlights, well, we know that nbcu is a cable company, a cable network's company, and that certainly was one of the places that showed strength for the overall. usa rated number one, syfy all going to why there is a very likely, though not definite, deal under which ge will be ceding control of nbc universal to comcast because of the cable properties. we spent an awful lot of time talking about the nbc network, but the fact is capable is what drives nbc universal studio, of course has a good quarter or good year or bad year, but it is the capable networks that continue to drive that part of the company. no comments on what we can tell you about, and to what ge will look like in three years, even three years, or whether there's a plan beyond simply ceding control, no clarity at this point to tell you about. the stock, as i said, going to be off a bit. erin, back to you. >> mr. faber, no pay for you, but of course i'm not talking about david. he earns his salary and a huge premium on top. ken lewis making an arrangement, but honestly, he got to keep something, and we'll explain. also ahead, pfizer's ceo in a cnbc exclusive, we're down to the opening bell. it will not be a pretty one, but don't go away. anything can happen. busy morning. l-informed people considering a chevy malibu. are you a cop? no. you didn't hear it from me, but this malibu is a best buy. yeah, i heard that from consumers digest. it offers better highway mileage than a comparable camry or accord. estimated 33 highway. i saw that on the epa site. so how come the malibu costs so little. it's a chevy. you have cop hair. introducing the 60-day satisfaction guarantee. buy a new chevy if you don't love it, we'll take it back. last month, this woman wasn't even able to get around inside of her own home. they chose mobility. and they chose the scooter store! if you or a loved one live with limited mobility call the scooter store! no other company will work harder to make you mobile or do more to guarantee your complete satisfaction. if we pre-qualify you for a new power chair or scooter and your claim isn't approved, the scooter store will give you your power chair or scooter free. that's our guarantee. they were so helpful and nice. they filed all the paperwork, and medicare and my insurance covered the cost. we can work directly with medicare or with your insurance company. we can even help with financing. if there's a way, we'll find it! so don't wait any longer, call the scooter store today. bank of america reporting third quarter results this morning. we use the word result when you can't talk about profits. loan loss is the culprits as they have been for all the banks this week, especially the commercial deposit takers. ken lewis agreed to give up his compensation for this year, but did get to keep the retirement package. ken feinberg is the one that negotiated the deal. david, this is one of those things that, you know, may or may not be crucial from the "do you bike the stock" but for some it may be, but it's this year getting rid of the money. he's keeping the retirement. >> from our perspective, this is really not a big deal, not a key part of the piece of whether you want to own b of a. mr. lewis will not starve with his retirement package. and clearly the quarter was pretty mixed, pretty noisy, but i don't think you want to really buy or own b of a for the quarter, you want to earn it for a turn in credit and a turn in the economy. >> there's different way toss look at it. jpmorgan in a sense is in a class of its own, but you have citi and b of a. citi gets half of its business from outside the usa, and b of a is more of a play of america. >> we don't cover citigroup, we do like b of a and jpmorgan. as you mentioned, jpmorgan more leveraged to the capital markets, but i think both have considerable up side over time. as we think about bank of america again, you know, investors i think will look through this quarter and again i think look at b of a's longer term -- which we think is closer to share. >> i'm sorry to interrupt, but we're almost out of time and i'm dying to ask you, how can you recommend b of a given the uncertainty of the management? >> you're right, we don't know who will be running this company, but again, in our opinion, b of a does is not have to become a great company in order for the stock to work. all that has to happen is consumer credit quality to improve over time. >> thank you very much, david george. george david, why do those names always seem to go together in one way or the other. >> it's confusing. up next, the word on the street. and later inside google's third quarter results. now you've said t. i give up. stock is up 54% over the past year, the ceo made some hmm comments about the state of downturn. and pfizer's ceo. this is "squawk on the street." we'll be right back. as we count down to the opening bell, you can see we'll have a lower open, just off the lows of the session. obviously general electric, its capital unit, and bank of america the reason. ge, as we said, did have an increase in the industrial areas, even in dish washers. >> i bought one. >> we'll see if we pay any attention to that, but so far, no. "the washington post" -- i really did -- >> you bought a dishwasher? ge, please? >> of course. >> "the washington post" reporting this morning congressional budget analysis has given house leaders cost estimates for two health care plans. over ten years, the plans would cost either $859 billion or $905 billion. $46 billion difference, ah, chump change, the $859 plan would rely more heavily on medicaid. pfizer and wyeth merging, drug industry's most expensive deal this year, $68 billion. maria bartiromo has an exclusive interview this morning with the ceo. >> thank very much. the deal closed yesterday. joining us is jeffrey kind her, jeff, it is nice to have you back on the program. welcome back. >> thank you so much. good morning. >> tell me how important this deal is for pfizer and what this will do for earnings? >> this is an important and exciting day not just for pfizer, but for the patients and other customers we serve around the world. it puts us in a strong position to provide medical and health care solutions to patients for everything from neonatal vitamins to infant formula, to vaccining, all the way to alzheimer's treatments. it will put us in a position to deliver a strong, stable and consistent earnings and top-buying growth into the future. >> so this is your third megadeal in the last decade. you had one in 2000, now wyeth, what can you tell us from the previous deals about certainly mistakes or lessons learned in terms of getting this integration to go as smoothly as it could? >> you know, maria, when we first talked about our strategies, we, before even doing this deal, established some very important strategies to change other company's trajectory. this deal is not about a particular product. this deal is about transforming our company into a more diversified business and to providing real focus and accountability. we've been planning this integration for nine months. today is day one, and we're ready to go. we've made speed of decisionmaking and agility a high priority. we'll be announcing our decisions around our r&d centers around the world in 30 to 60 days, dramatically faster than in previous deals. we've learned that that's important. >> absolutely. it's one of the things that certainly analysts are talking about, as the potential risk for the company, the smooth integration. i'll get to that in a moment, but some people were disappointed you had to cut the dividend in order to finance the wyeth deal. >> we'll be talking about that, as we always do, in december, but you know we have a lot of tines to deploy capital on behalf of the company, whether it be kids, buybacks, investing in the business, in growth opportunities, and we'll be deploying our capital with great regard for the future of our company, as well as the importance of providing a good returns. >> if the new bill passes in its current form, what's the biggest concern for the industry and pfizer? >> it's very important to reform of system, and we continue to be in support. there are elements of the current bill we think need to be addressed, but by and large we're supportive of the efforts, and we as an industry have made significant contributions to that effort and will continue to do so. >> i'll ask you more about that to try to get into the challenges that the business faces on the "closing bell." . this analyst is rating pfizer a high risk. he says that continued deterioration of the base business in the u.s., negative u.s. cash flow position, modest uncertainty that the asset acquisition due to any reason offer additional risks to the target on pfizer. give me your sense of the deterioration in the business as a result of patent expirations and everything else. >> first of all, our business continues to perform very well during this period, and we'll by continuing to focus on the business. i'm very proud of the fact that our organization throughout this period of planning for the acquisition focused on delivering for our customers and will continue to do so. >> mark haines? >> yeah. sir, we've known for years that americans pay higher prices for your drugs and anyone else's drugs around the world, yet that hasn't changed. why not? why are we americans still footing the bill for the r&d? >> well, mark, that's a very serious issue that we need to address with our trading partners around the world. we've been urging the u.s. government to address it, because it's fundamentally unfair that our system that encourages innovation does in fact bear that burden. because of the fact of support for the innovation, an industry have continued to create high-tech jobs in this country, but having said that you may a very fair point and it's something we need to address. >> do you believe in the bachus bill, then? >> i believe that chairman baucus's bill has many things we support, but by and large, we do as a country need to reduce the overall cost curve, as well as provider greater access. pharmaceuticals are a very important investment in ultimately reducing health care costs, because everyone would rather take a pill and prevent disease than going to the hospital incurring the greater costs that that incurs. >> what's the most important thing in the pipeline right now? >> we have terrific new potential treatments for alzheimer's, for oncology, for pain, for rheumatoid arthritis. we're very excited about the combined pipeline as well as in the vaccines area, an entirely new opportunity for pfizer. and wyeth also brings us a new platform for biologics that we're excited about. >> we'll continue our discussion on "closing bell" later. we appreciate it. >> appreciate it. mark and erin, back to you. >> thank you very much. we look forward to "closing bell." the final countdown of the opening bell is on the other side of the break. this is cnbc's "squawk on the street." 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>> i believe bertha has news for us. >> just a couple minutes ago, he was asked about the fate of nbcu, and he said that nbc was a great franchise. and he said it comes into speculation every time this year because of the option. he said right now they just want to be ready for several scenarios. not saying he wouldn't want to sell it or would, but the company is not in special need of cash, however, they want to explore all types of scenarios. back to you. >> this is more than just the ant speculation about the vendys option. there's more going on than that. thanks, bertha. let's get the buzz as we await the opening bells. hogan, good morning, sir. >> good morning, mike. >> you know, i've got a fluorfull of people behind me, 99% of whom are cautious, skeptical, et cetera, and it keeps working higher. >> yeah, you know it's funny, it was the same group that they were up cautious, and now we're 55% off the bottom. it's a natural human instincts. i think you have a market with a lot of fully invested bears that are in this market kicking and screaming. that probably continues throughout the entirety of the earnings season. this seems like a big week of, but we only had six dow components. next week we get 150 s&p companies. i think the trend will be higher through earnings. >> but then the question is, what then, art? >> that's exactly the question. what is it that's going to slow this down. first of all, if estimates for next year compress and we put a fair market multiple on what 2010 should look like, that could close us down. and when we have to bridge a gap that's being stimulated, that's the other hurdle in the road, but that won't happen over the next couple, three weeks. >> art hogan, thank you. perfect timing. two seconds before the bell. >> here we go with the bell. >> the tintinnabulation, here at the big board, the lee keepia society, and cric at nasdaq. our market reporters are standing by, yes a lower open than we anticipated down 50, bob. >> pretty simple, futures were down all morning. look at the big names. ibm, bank of america, big gains in the third quarter here, earnings are coming out, not bad, but it's not a bad time to lighten up after the gains we have seen here. so let's look at ibm, which is right here. >>ed important thing, they guided higher, but remember ibm was up, what, 15% in the third quarter. it's not a silly thing to lighten up at this point. here's bank of america right here. the symptom just opening down 90 cents. the important thing here greater than expected loss, but it's a simple play. do you believe in improving credit quality? in general, if you do. bank of america is a good hold. if you don't, it's not. that's the dividing line. general electric, our parent company, you heard ge capital profits down. earnings did beat estimates overall, and you heard those comments on nbc universal from berth that. key point about halliburton, what they need is a pickup in rig counts. we are do you think 100 points in the dow, bob. >> and we've had opened loer, too. tech earnings have been good. all with strong earns, google shares up about 3%. now being to a street high $700, a number of firms out raising the price, but that eclipses everybody. apple, inat the, research in motion, giving some back this morning, a lot of talk about gold. we've been talking about the up in gold. randgold is riding that, upgraded over appear rbc. newtry systems up as well. there's an ipo to talk about today, the china real estate information corp, the ipo pricing at 12, the lower end of the range. a lot of talks today about deman for ipos. eighth month alone, and only one has been above the expected range. i will update you when itb gins trading. cric the ticker. >> the dollar index is rebounding, dow is down triple digits. still above $77. this is the pit to watch in the near term. traders making bets in the options ring. in fact the bets they made yesterday, they increase those bets that oil prices would top $100 a barrel by december. the call options we saw for december at the $100 strike price increased by about 10port yesterday, so keep your eye on that. that will become the front contracts next wednesday. we're looking at heating oil and gasoline futures helping to lead the way this week to the prices we have seen in the crude market, up 8%, 9% on the week, as we see refiners cutting back on the runs. meanwhile, opecs cutting shipments, due to high inventories, and the cftc and s.e.c. releasing their report today, that joint report on regulatory harmonization. rick, to you in chicago. >> thank you very much. the data day was surprisingly strong, so strong figures there and strong revisions. now, if you look at international capital flow, what investors are doing with their money, you know, japan actually accumulated a little more than china for the current moon that we're looking at. on the year, though, it's interesting. the japanese holdings are up about $100 billion. the chinese are up about 60 billion for a grand total of around $800 billion, so there's about $70 billion difference, but at least based on this data, nothing to work about yet, but of course the conversation is always going to be whether they continue to buy or buy into the future or hold what they already own. as far as today, 10:30 eastern, look for an agency buyback. long-term rates are depending down a bit, but we want to pay attention to 350 regarding the ten-year note yield. mark, back to you. >> thank you, rick. markets opened lower as expected, about 100 on the dow, again as expected. david sawyerby joins us. thanks for being with us, and we're working on getting joe keating into this little party as well. i'm reading my note, there's an interesting point in here. if you value this market a cash flow -- >> yes. >> -- you're saying it's not too bad? >> i believe so. i've always thought that cash flow -- or free cash flow is a better metric to pick stocks than earnings per share oar price to earnings. if you look at cash flow, the opportunity to xwi companies at free cash flow yields still well in excess of 5% to 6% on an enterprise value to cash flow at seven to eight times ebitda, i think that's a good backdrop to find opportunistic buys. while many of us wore on a price-to-earnings basis, with trailer earnings close, that's not very appetizing, but on a cash flow basis, i think there's still room for this market to run. >> from early june to early july, the average fell about 10%, but by the time you recognize it, it's more than halfway down and what do you realistically do with portfolios? we could get another 10% correction, because as you pointed owl white the s&p 500 on a capitalized weighted basis has recovered 47% of its original bear market decline, more telling to me it that the average stock in the s&p 500 has now recovered 68% of its bear market decline. that's a quick recovery in roughly a seven-month time period, and it does set you up for what i would describe as a 10% hiccup. >> joe keating is with us now. joe, if we've recovered 68% of what we've lost, again in the macro context here, right? are we now pricing in earnings that we'll see in the new normal, in an economy that is not for a while going to be as big as it was two years ago? >> well, i think you're right, erin. here's the key. the economy is recovering. i believe a recovery began during the third quarter of the year and it will be a gradual recovery. however, therefore not v-shaped. however, it's very likely that the recovery in earnings could be v-shaped, because of the expense reductions that took place over the last 18 months and the continued focus on profitability, any pickup in revenue, which is now beginning to show up will disproportionately flow to the bottom line and we could get a much stronger rebound in earnings than we're going to get in economic growth. >> so what will be your strategy right now? i know you're expecting a bit of a pullback, which obviously david is as well, but you would buy it is it. >> absolutely. i think any pullback, you've got to go into the market. a lot of investors are not as invested as they would like to be. the liquidity that the federal reserve has pushed into the system is not being lent or spent and flowing into assets, flowing into commodities, bonds, stocks, you don't want to get in front of this thing. you want to be invested. i wouldn't chase it, so whab a an investor is average in over the next three months, get your money to work. don't stay on the sidelines. >> david, you like ocharlie's, which has a delightful ticker systemible of chux. >> yes, mark, i think -- >> is chux up? >> yes, it's just under $10 a share, and it dropped to roughly $1 a share when it was priced for armageddon back in march. >> that's back people were upchucking chux? >> just the pain that was experienced in the dining space, but it's a way you can play offense, and i think that's a place to put your money in the casual dining area. we've had discussions about fossil, the watchmaker, which i think is a good play, their non-u.s. business is continuing to grow. third straight month of healthy names, siemens -- >> okay, we've got to leave it there. i'm sorry. we're out of time. for the record, joe keating recommending dividend-paying common stocks backed by brand-name products and solid business models, according to our -- we've got to go. thank you, guys. next, inside google's numbers, the stock up 40% over the past six months, mark, chp be underperforming. it posted big earnings yesterday. plus much more on bank of america and ge. investors watches both stocks this morning. we are back in two minutes with more of "squawk on the street." under 25 billion barrels of google's third quarter results topped wall street expectations last night. high owes profit ever, which, mark, is a pretty amazing achievement, which we talk about an economy that could take who knows how long to get back to two years ago. the world's biggest search engine up about -- is it 80%? i thought it was 40% over the past six months. >> well, let's see -- wow. >> 54% over the past year. keith, we appreciate having you with us. >> thanks for having me. >> when we look at the highest profit ever for google, and we're talking about this, when is the economy going to get back to its size of a couple years ago, what do you see there? >> absolutely. i think what this is showing is that, as powerful as this macroenvironment event that we've been in is, there's an incredible secular shift that google is benefiting from, as advertisers try to move more dollars online. if anything, this recession has been a catalyst for marketers to reallocate their spending to where they're getting the most return for it, based on all the advertisers we talked to, that's search. >> that's search. are you confidence that the business -- the first question on advertising itself, do you think we're sealing real improvement, a real recovery? >> i do. we fully expect that online in general and search in particular will lead the advertising recovery. it was the first place cut by most advertisers and still the highest form of advertising for most advertiser. so when you got it aside when you first put your together back in, do you put it in broadcast, radio or print, online is the easy answer. >> are you confident their business model, which still relies virtually on tiesing is the right way to go? >> absolutely. you clearly have a massive pool of dollars out there that's able to fund the research and development that google is putting into new product. while search is the overwhelming majority of where their revenue comes from, almost all of it, they have built such massive traffic bases, that over time they'll monetize much in the same way they monetize search. they had a huge search business really before they started to monetize it. >> your price target of of 60 to 680, which you are raising now to those numbers, what is that about? is that about 30 times trailing? >> yeah, it's about 30 times trailing, about about 25 times what we're expecting for next year. >> and the growth has been about 25%. so -- >> exactly. it's easy to make a valuation argument for google given the growth you've seen in this business. if things continue the way they are, i mean, 680 is where we think it goes over the next 12 months and honestly that's the lower bond of what we think. >> five years from now, what's google going to be? what kind of company? >> you know, five years from now, you've got basically the operating system for advertising. they're delivering and have built kind of the dashboard for advertisers around things like video, search, print, i mean, essentially taking what they have done with search into all of these other vertebra cass, as all advertising moves digital, eventually. >> fascinating company to watch. >> absolutely. >> keith, thank you very much. appreciate your time. >> thank you. anytime. that puts us back to below 10,000. >> yeah, we poked ahead and now we've stabilized. plus the state of american business, from a man whose interests, they kind of dip into many different sectors. things are getting better or worse, he'll know it and he'll tell us. >> whoos he? we'll tell you. and we'll hit the break with a few widely held moves. this is "squawk on the street." we'll be right back. with you realtime flash, starts with william sonoma downgraded. it's up 194% since the march low, jenworth one of the weaks, so the theme is the same. financials, of course, weak. i always like to work at sympathy. wells fargo reports next week, and it is down. accenture, maybe some ibm, it's down as well. mattel sales reported down, notch as much as expected. spot on, 50-year-old barbie, down 8%. polly pocket down two. despite, mark, best efforts in my household. >> thank you, sir. >> look who bought an alarm clock, bill griffeth. >> my gosh, you come up with the -- >> not only is he up, but he's on tv. joining us live from the business council ceo summit in north carolina. the top voice in business, the one and only bill griffeth. >> lovely north carolina down here, on what was the coldest day on record yesterday for that date. lucky us coming down here, but we are at the ceo summit. i'm here with a man i consider the restly entrepreneur, the great bob johnson. you and i were talking about the business pursuits you have going. i'm struck obviously by the seeming optimism that came out of the survey results of you ceos yesterday, where 62% said things are better than six months ago. it's what comes after that. how do you gauge the economy right now? >> i share that opinion. i think we're moving to cautious hope, maybe each cautious optimism that the economy is coming back. we think the big banks are fixed, we think there's still limitations still on availability of credit. consumer confidence is still tough, but overall we're seeing that businesses are -- we believe that the economy is moving in the right direction. >> but for you, and all your various business interests, the one thing you see most consistently is credit and the flow of credit. >> yeah, i'm in the automobile business, and the flow of credit for people who want to buy cars is still tough. we have a bank and looking to get into the card product, and debit card business. access to credit is still a big problem. that you're seeing people having limited amount of credit available to them, but at the same time, they're spending a little bit more. so flow of credit is extremely important, and that's why i think this economy still has some rough patches. until you get the consumers back engaged, you're going to have a tough time. >> let's face it, money is as cheap as it is because of the federal reserve and what they have done to keep interest rates as low as they are, but eventually the fed will have to take some of that stimulation away. are we ready for that yet, do you think? >> i don't think so. for example, in the hotel business right now, we're sitting on a billion dollars of liquidity in our hotel fund. we're looking to go out and find credit to buy assets, but right now you can't find credit even if you do the proper underwriting, looking at assets where we have experience in buying. so i think if you were to see the feds pull back that trillion dollars or so that they have in the overhang in the market, i think you see a -- i wouldn't call it a setback, but would slow down any improvement toward increased product activity. >> what's the headline for bob johns johnson? how do you characterize that? >> cautious hope that we have passed the worst part and it will get better. we still have to solve unemployment and still keep credit flowing. >> always good to see you, bob. >> all right. >> bob johnson joining us. we have interior secretary ken salazar. the big theme is energy sustainability. we'll talk to him about that. >> thank you, bill. by the way, carrie, i didn't know, is outside of raleigh durham. next up, this morning a cnbc contributor day with the obama administration's top economic policymakers. see what they're really saying about jobs and the dollar. and there's more outrage coming from bailouts to bonuses, newspaper headlines are telling the story this morning. we have the president of sifma, who takes the other side. we're back in two minutes. the gold delta skymiles credit card... from american express... it's the official card... of the world's largest airline. and it's the only credit card... that earns miles on delta. miles that take you... to more places than ever before. over 350 destinations worldwide. so switch today. get up to 25,000 bonus miles-- good for a free flight. call now to apply. there's no annual fee for the first year... and you can redeem... with no blackout dates or seat restrictions. these are just a few of the benefits... of carrying the official card of delta air lines. switch now and you can earn miles... on delta with your purchases: groceries, gas, entertainment, and more. get up to 25,000 bonus miles... with the gold delta skymiles credit card. call 1-800-skymiles to apply. this is the official card... of the world's largest airline. live from the financial capital of the world, welcome to the second fun-filled, illuminating, enlightening, entertaining, edifying, exciting "squawk on the street." >> elucidating, did you use that one? >> good morning, everybody. 30 minutes into the trading day, stocks remain lower, bank of america and ibm the biggest strikes on the dow. on the positive side, estee lauder, a big gain after they said first quarter profit will come in better than expected. even in a down market, 15 companies on the s&p with new 52-week highs, including mattel, harley-davidson and the stock which must not be named? >> now it's not named again. please, bob pisani, elucidate us, inspiring us. >> the three biggest decliners on the dow are the three stocks that have reported today. the big split here is the consumer data going to get any better? >> it's the line right down the middle. there's a lot of cynics who do not think it will get better. one guy wrote to me and said, the guy in the balloon yesterday? that was the whole story. it goes up aimlessly, it comes back down, there's nothing in it, it's a lie. there's a metaphor for what's going on. a lot of cynics are arguing -- i don't feel that way, but if you don't think consumer credit is improving at all, you won't want to hold a bank of america. next week we'll get the regional guys, now you're going to be -- all we'll be talking about next week is commercial real estate. the news, the point of the sin irks is the news flow won't be as nearly as good as, for example, about goldman or jpmorgan. >> thanks for your balloon analogy, how the market is withering. >> the kid was hiding in the garage, okay? he was scared. he was scared. >> he said on television, was asked why are you hiding there? he said, because dad wanted a good show. >> uh-oh. >> yes. >> i want a good show, which is why i'm turning it over to scott wapner. >> we've also opened lower and we acsell rated a bit to the down side. the nasdaq is off by a bit more than 1%, but the story is, ibm had better than expected earns, amd, and google, as you know was very good. it's not stopped google shares, however, from rising today 3.5% or just shy of that. another 52-week high. eric schmidt says the worst is behind thus. they're a bellwether on advertising. so really a good stages of the recovery for google. you're seeing it in the shares here. canacourt came out and upgraded the price of the stock to $up 00, a street high. several other companies did it as well. what do you think of that, guys, $700. >> for ge -- no, no. >> yeah. wouldn't we be happy? >> we would be retired. >> let's check in on the energy trade. we're down about 68 cents for crude, so let's check in with ms. epperson. hi there. >> we just went below $77 a barrel, but keep in mind oil prices are still positive for the week. it was a big weekly gain this week. what does all this mean for what consumers will pay for their heating bills this winter? if you have natural gas, you're in pretty good shape. because futures prices are down about 30%, versus a year ago, compared to heating oil prices, down only about 7% or so. the energy department is saying people that use natural gas will pay about 12% this past winter, where heating oil customers will pay about 2% less. keep in mind what has been going on here is the dollar play once again. consumers will have a hard time figuring out why the weaker dollar they're paying more, but when you look at the decline and the rise in heating oil prices, you'll understand. rick, i hope you have nat gas. >> we do, and we continue to watch when this pricing. short maturities are under a bit of pressure. the curve is flattening just a little bit, but not a lot. hey, we had some important numbers. the best levels since february, the market didn't pay a lot of attention to it, because it's still concerned about the aftermath of cash for clunkers, maybe some of these series of data points will moderate a bit. we had consumer confidence drop pretty significantly in mission, under 70, but here's what's interesting. the one-year horizon by respondents on inflation moved up rather markedly. something to think about. erin, back to you. >> thank you very much. all right. there's been a lot of discussion over whether the obama administration wants a weak dollar. here's a chart of the dollar index. down 11% in just the last six months. also heated debate over how to make china stick to agreements without, you know, starting a trade war. andy bush, cnbc contributor, the foreign exchange strategist for bmo capital markets, had a chance to get a special briefing from top economic policy advisers in the obama administration. he is here with us this morning. did you come away from that meeting with the impression that they do indeed want a weak dollar? >> well, here's what -- first, the thing they said, we're not talking about the dollar, because it's too interesting. that was kind of disturbing. >> that's a little frightening. >> yeah. what they did say was this -- i asked larry summers said he wants to go with an export-driven economy, and do you agree? they said, absolutely. jed yesterday there was a release late, they mentioned the rimindi, and accumulating large balance reserves, which could lead to an unwinding of what we've seen positive lately. so what you take away from this is they're not going to come out and say we want, you know, a weak dollars. summers came out and said we want a strong dollars, but they're saying, our policy is we've got to reduce these imbalances. everybody knows you don't come out and say you want a strong dollar if you're trying to export more. that's the bottom line. >> but we want cheap prices for americans. they understand that very clearly. >> potentially that's true. look at our cpi numbers. they look pretty benign, but the bottom line is we've got a problem. we need to figure out how to grow. without the consumer, that's exporting. the best way to export is let your currency go. >> if you had to take all of your personal savings, wealth, whatever, put it in one currency and one only, for the next, say, three to five years, what would it be? >> brazilian. they have some great growth prospect. the australian dollar is good as well. they were one of the first too exit from the easing strategies. these are countries that are doing quite well and will continue to do well going forward. >> andy, thank you. >> you bet. the dow is below the session right. bank of america, obviously there's been some pressure there. and of course that news came on the same day that ken feinberg said that ken lewis wouldn't get paid this year, but will keep his retirement benefits. what did you learn on the conference call, mary? >> it's still going, ken lewis thanki inin ining taking the ti thank the community. here is some of the highlights. they are expecting ned credit loss toss peak this year. also he said reserve builds will continue for the bank and the fourth quarter is expected tore challenging. meantime they had home prices will remain pressured, and that will pressure bank of america's numbers. lewis went on to point on, the reason he is under fire from regulators was accretive in the quarter. he also says that loan growth declined because of a more cautious consumer and because the capital markets are healthier, so corporate clients are issuing -- speaking the of the corporate and commercial clients, lewis says they remain cautious. now, as ark mentioned, the bank's results come as ceo lewis says he won't be taking any salary. he's expected to keep a retirement package, estimated at more than $of 0 million. he is going to repay the more than $1 million in salary he's received so far, doing so at the suggestion of pay czar ken feinberg. people close to lewis says the decision was voluntary, and in a statement, he said it was best not to get in a dispute with feinberg over pay. bank of america is one of the companies whose pay packages must be approved by feinberg, but in its earnings release, bank of america notes that compensation is changing to deliver a greater portion of pay over time. mark and erin, back to you. >> thanks very much, mary. up next, wall street, main street, and the big disconnect. the head of sifma, wall street's powerbroker on main street, joins us. and five-star fund manager up 30% so far this year, which is better than the market, looking for large-cap value, and mark, sales for porsche down 32% this year. >> no kidding? i guess maybe joe didn't renew his lease? >> why is the company betting that car will turn things around. special interview coming up. to stay on top of my game after 50, i switched to a complete multivitamin with more. only one a day men's 50+ advantage... has gingko for memory and concentration. plus support for heart health. ( crowd roars ) that's a great call. one a day men's. we're back. no shortage of banking news this week. as you can see from the morning headlines, outrage over bonus payouts on wall street. is the financial industry really serious about the performance of back to business as usual. tim ryan, president and ceo of the securities industry and financial markets association. >> i guess we can see that wall street is not really serious about reform. >> well, of course you know that's not true. we've been working very hard at the reform agenda. certainly since the lehman experience. >> the lehman experience was how long ago? >> we've been working on this for almost a year. >> it's probably going to take a little bit longer to get some final legislation in the united states and to see something that conforming in europe. >> i mean, i've got to be honest with you, tim, it really doesn't build my confidence when we come close to going off a cliff because of behavior on wall street, and a year later no one has done diddley about it. >> we've certainly been leading the effort to deal with systemic regulation. we've been active participants in dealing with some of the issues that concern the public, for instance compensation issues. we've put out guidelines to which all of the industry has conformed. those guidelines really mirror the recommendation from the obama administration and from the european regulators so what you really need to do is wait for the end of the year to see what the actual payouts are, as opposed to just accruals. >> tim, one thing that people appear to agree with on both sides of the aisle, to differing degrees, this issue that banks need to have more money for tough times. yet we also hear that some of the most powerful and frankly the banks that emerged unscathed from this, are fighting that tooth and nail. that confuses me. if they were for regulation or for getting it right, why wouldn't they embrace higher capital requirements? >> i lead the trade group that represents these firms. and we are not fighting tooth and nail for increased capital requirements. i think we all know there will be changes for capital performance, there will be changes on required liquidity ratios, reduced leverage. so we all expect that to be embedded in the legislation that will probably be enacted in the next couple months. >> so you would say those reports of individual banks fighting that you think is not fair, not really accurate? >> i don't think it's fair. i'm sure there are specific issues on which specific banks have concerns, but what i've said is yenly the position of the industry at large and that's what we're active proposing in washington and in other capitals around the globe. >> would you not at least agree that the banks have very little sense of pr here with these bonus proposals that are all floating around? they really seem very thick-headed. >> no, i mean, we actually spent a lot of time on this, mark. we talk about the concern that exists among the general public, and certainly among legislators. we're very sensitive to that, so we're not -- >> i got to admit, you don't look sensitive. tim, i don't mean to cut you out after chopping at you, but david faber has some breaking news, and we must go to him. we've been working on this all morning. we can tell you now the u.s. attorney has brought a series of charges against a name may not be familiar to people. gal gal union is one of the rich e men, a very successful hedge fund has been galleon. we've confirmed that he was in fact arrested at his apartment last night. we have just received the complaint from the u.s. attorney's office, he's been charged with numerous offenses related to insider trading, to interstate commerce, use of the mail, employing devices, schemes and artifices to defraud, making untrue statements in materials facts necessary in order to make the statements made. again, you'll have to bear with me as we work through this. it does appear to be specific to trading as well in a number of different instances involving polycom. in january of 2006, hilton hotels in july of 20 07, and also google in july of 2007. as well, the conspiracy count goes on to say at least from in and about up to october 2008, the defendants and others unknow did combine, conspiracy, confed rate and agree with each other to commit offenses against the united states in violation of title xv. again, we'll get more on this. i have tried galleon this morning a number of times and have not gotten comment from anyone at the hedge fund specific to the charges bun unveiled at the time against mr. rajaratnam. again, galleon has been a major force in the industry, not quite the size it one was, but still around $3 billion, from what i'm hearing, delivering a lot of commissions to wall street, known specifically for its acumen in high technology or in technology stocks, and the group manages a series of funds specializing in technology and health care. this is a 40 or 50-page indictment here, so you'll have to bear with me in terms of being specific in terms of what is behind these charges, but it does appear to relate to trading in a number of securities that began as early 2006 period and going on through there. so one would imagine, of course, it's been some time here that they've been looking into this nerms of polycon insider trading. and we'll have more on this significant development, law enforcement, as we go along, mark. >> sounds like they threw the book at him. thank you, david. david faber will have more, will continue to work on the story. still to to come, the farm trade in today's commodity corner. >> that reminds me, i have something for you, and then a five-star fund manager, up 30% so far this year. 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>> i tell you, obviously it is market's up a lot since the lows in march, and the perceived riskier names have had the biggest increase, but where we're finding value in these days is maybe some of the larger, you know, traditional growth names that are best in class and still selling at pretty reasonable valuations. i do think you still need exposure to those companies also, maybe a barbell-type approach that do have leverage to continued improvement in the economy, though. >> let's talk about some of those names. >> sure. >> because you do have different sectors here represented. let's start with lowe's. is that a bet on the return of the housing market or just consumer spending? >> well, it is sort of both, and we think it's a -- that's a trend that probably plays out over the next couple years, but lowe's has been dealing with a tough housing market for a few years now, you know, before the market really started turning down. again they really are best in class, been picking up market share during the downturn, so we think that paying 15 times next year's earnings is not -- on depressed earnings is not paying a lot for best in class company with a great balance sheet. >> and i'm trying to pick which one i want to go to. cisco did a deal, they have a whole lot of cash, but are betting on big companies spending money? >> they are, but again they're also at the heart of the growth of broadband, which we see continuing for, you know, years and years with pretty good visibility of growth. they'll never grow like they used to, but you're paying 16 times next year's earnings for a company that can use their cash to acquire and develop best, you know, continue on cutting edge of technology in that area. >> ken croft, thank you. good to see you again. >> you're welcome. a bigger one is actually ahead. we've got about a quarter of the s&p 500 reporting next week. so is there a way to trade ahead of any of those names? that's our trade topic. as we take a break, a look at the companies on the earnings docket next week. 100 years of engineering excellence is right on time. it's gmc truck month. shop sierra 1500 slt with the 403 horsepower 6.2 liter v8. it's the most powerful half ton v8 in its class. step up to the best. it's gmc truck month. get 0% apr for 60 months on 2009 gmc sierra or get $6,000 total cash back on select 09 sierra 1500 extended and crew cabs in stock. see your gmc dealer today. ♪ today ♪ must have been one of the strangest days ♪ everyone may face the same uncertainty. ♪ some would say that you won't find ♪ protecting yourself, however, requires good decisions. find strength and stability with mass mutual, a company owned by its policyholders. ask your advisor or visit massmutual.com. april update on the breaking news. ran rangaratnam. he's been charged with a couple other co-conspirators with insider trading with any number of stocks from 2006 through 2008. earlier i mentioned a number of the charges relating to trading that took place in 2006 and 2007. it also appears that the fbi has been tapping mr. rajaratnam's phone, his cell phone, and using at least evidence of why they brought these charges record of conversations that they say indicate he knowingly used inside information to trade in securities that include clearwire, akami, amd, people support. these were trades that took place in the 2008 time period. we are expecting at 1:00 to hear more about these charges from the u.s. attorney. a joint news conference between the u.s. attorney's office, the s.e.c. and the fbi. it appears this investigation has been going on for quite some time, given the length of the charges and some of the details that are now revealing themselves or at least being contended by the u.s. attorney's office in making these charges. remember, of course, it can sometimes just be civil litigation that the s.e.c. looks for disgorgement or whatever the fraud may be, and is not accompanied by criminality charges. in this case you've got both civil, criminal, the fbi involved, clearly an investigation that's been going on for quite some time. numerous references as well to a cooperating witness it's something that the s.e.c. has been looking on the for quite some time. namely a hedge fund hiring employees based on their insider knowledge, about companies at which they worked. and so hiring those people, looking for an edge that would constitute a criminal edge in terms of those people then telling the manager of the hedge funds specifics that will allow them to gain as investment edge in the various investments they are making. that certainly seems to be part of this, again a cooperating witness quoted time and again as are transcripts of conversationings between mr. rajaratnam, associates and others who have been charged with giving him inside information. we'll have more, and at 1:00 eastern there will be a press conference details more, but just to recap, galleon, a $3 billion hedge fund, its founder, a forbes list billionaire arrested. not sure where his whereabouts are right now, but we'll let you know. mark, back to you. thank you very much, david faber. let's look at the markets and their internaling. right now the dow is down almost 100 points, s&p is down 12, everybody is losing about 1% to 1.1% internally on the big board, we've got almost 4 to 1 negative on advanced declines, nasdaq not quite as bad. it's about 3 to 1 negative. so let's get some stocks on the move with brian schactman. >> yeah. let's start with halliburton. lost in that shuffle, they bead on the top and bottom lines, and they're getting a nice pop today. i love this story. walmart goes to 9, walmart wants a share. it's going to hurt amazon's margins. finally csx, after financials, it's giving back some of the earlier gains, but it still would have to go back a long way. mark, back to you. let's get our money ready for the weekend. charlie'snary, wes, we always start with the people who got up earlier than we did. charlie, what can we do to keep our money safe this weekend? >> earnings season is demonstrating an interesting tone, partly a quirk of which companies are reporting. we've had a couple big banks with terrific results. i think that sort of set the tone. that's going to change as we have seen from the numbers of b of a. >> what do you say, alan, about next week? >> next week's a big week. over 100 s&p companies reporting here. we think the consumer's got to be careful. it's a little topi here, especially the consumer stocks, like you saw with johnson & johnson. >> but ge, as much as people are bemoaning the continuing in ge capital, increase in trains, wind turbines, dish washers and son ograms. >> it is. it's looking pretty good with ge. we're still a little nervous forward. >> charlie, what part of the market, do you like? >> we're still heavily invested in the cable and telecom area. we think the deal with nbc universal could be a good one for comcast. the deal should be accretive, if they can get it done at less than ten times ebitda, so i think comcast will be generating a whole lot of cash, and a lot will be coming back to the shareholder. >> would you buy them if they don't get nbc universal? >> i would own them either way. i'm not sure the nbc universal deal will be priced exactly right from comcast's perspective, but i think it's strategic enough they could create a pretty competitive franchise with espn if they get this deal. >> it sounds like they'll get a deal. >> i have no insight. >> but your guess -- >> if the price is right, it will get done. >> thank you, charlie. thank you, alan. appreciate it guys. >> so vendi does not have to tell. have a good weekend. let's get back to david faber. >> mark and erin, more updates on this developing story, the u.s. attorney bringing charges against a giant hedge furnished manager. another charging document that jim fork, who runs our desk, has just given to me. we should let people know, the u.s. also indicting daniel jessie, mark kurland, a well-known name from the analyst ranks, also a significant money manager, and a gentleman named robert moffett. again, these charges do seem to stem from contentions on the part of the u.s. attorney's office based on tapped phone conversations that indicate they were providing mr. rajaratnam with inside information. again they cite a number of different snagses based on wire communications that were intersetted over the phone that they conspired to obtainjectain information from an akamai executive on several occasions and may have passed that on to mr. rajaratnam. of course, an s.e.c. has been under attack not just for its huge failure in the case of madoff, but many others as well, being very aggressive under mary schapiro, it would seem, but this is criminal. a u.s. attorney saying we have a case against a lot of well-known people in the industry. there are six names as of now that have been charged in this insider trading case that we'll be getting a lot more on as we go along, but wanted to update people. actually we're coming right back after this. (announcer) we call it the american renewal because we believe that ideas are limitless. that's why, everyday at ge, thousands of scientists and researchers at our global research centers and throughout the company are redefining what's possible by creating the advanced technologies that create jobs. the american renewal is happening right now. of your business, when ywhat do you see?uture is the glass half-empty or half-full? well, with ups, you could eliminate warehouses. streamline your supply chain, and even reach new global markets. so your business is more adaptable, more efficient and more profitable. hey, the opportunities are out there. seize them with ups. is anybody else thirsty? bill griffeth from kerry, north carolina, the site of this year's -- and joining me is the man who keynoted the event this morning, mr. ken salazar. good to see you again. >> good to see you. i know it's a hallmark of the obama administration so far to achieve a greener economy, low carbon/high growth. in what in in your view is the incentive for some companies to want to buy into the greener strategy. companies need incentives you, know. >> there are millions of new jobs to be created, and companies like dow chemical and dupont realize the green technology will bring millions of jobs to america. if we don't turn the page and address climate change in the way president obama has wanted to address it, we're going to fall back on the same failed policies that have gotten us here today. so we're excited. it is a hallmark item for the president. >> to this point, it hasn't been that cost-effective to use new energy technologies, but we are the science would suggest at a tipping point. that's the message you bring, i know, to the ceos. is it cost-effective enough for them to employ some of the new technologies, wind power, solar power, things like that? >> the nub technologies that have allowed us to do that, just in the state of california alone, we're looking at standing up ten solar power plants, generating up to five megawatts of power. so when we start talking about those levels of high energy, these companies are understanding that there's lots of jobs and lots of profits to be made here. >> ironically, as we try to wean ourselves from foreign oil, is the one thing that might possibly achieve that just the cost, as the price goes higher and higher, we sit here close to $80 a barrel. we know what happened last year when it weren't to $147, sup ironically the incentive to wean them from foreign holy? >> call it an incentive, and i also call it an imperative. i think there's three drivers that will get us there. we have to reduce our dependence, two, we know we can create millions of clean-energy jobs here, and the dangers of global warming and pollution is something we need to address. so we're addressing that in the legislation we have before us, something that the president has made a signature and hallmark of his administration, and something we're confident we'll be able to achieve. >> thank you for your time, sir. guys, see you later on "power lunch." it does look chilly there. coldest yesterday on record. straight ahead, a luck yury sports car with room for four. this new porsche valued at $132,000 will go for a spin. maybe that's would you joe kernen was running around today. >> a four-seater? i don't think that's quite sporty enough for joe. joe likes performance machines. four seater, i think that might be -- >> doesn't that defeat the -- but they did sell the crossover thing, first. first, oh, chris. >> hey, guys. coming up at the top of the hour we're going to talk about tim guide anywhere's comments on the economy. we're going to get some perspective on that from a couple top chief economists on wall street. so should they raise the minimum amount that you have to put down on a mortgage? some say yes, including scott garrett. he's going to be with us live to talk about why this is necessary. we'll have all that, plus the latest market news from right here on the floor of the exchange as we're down 107 on the dow. first "squawk on the street" is back right after this break. from the front, it looks like any other porsche but it really isn't because it has four doors. ford's sales down 30% this year and they're launching a brand-new car. it's got four doors. we bring in the head of sales in the northeast region, is that it? >> right, brian. >> first of all, what's the name of it? >> porsche panamero. >> why launch a brand-new model in a middle of a recession? >> couple reasons. first, it takes a long time to build a car like this. this car's been in the works for four years. so when you finally get it into fruition, have you to do something with it. bringing it to the market is the thing to do. >> we don't have a lot of time. tons of people want to know about this car because it's our audience, right. what cars are you going up in this segment? who are you trying to get shares from? >> primary are the mercedes-benz s class, bmw 7 series and maserati. >> what about people who say you are kind of substituting a brand with four doors. people want their two-door speedster. >> yeah, we expect that from some people. but at the same time we know this car was engineered, designed and built to be a sports car. unlike any other sedan out there in industry. it's true to the racing and performance heritage of porsche and most of all, it is a porsche. >> what's the price point? >> this car starts at 8.4 four and then the turbo version, which you see here, 132.6. >> i'm going to drive around the parking lot. i might be at the dpxt w bridge before you get the call. thank you very much. >> thank you. >> brian sackman, on his way out of there in that brand-new porsche model. i personally will wait for joe kerner to tell me whether that's a cool car or not. >> look at that. sha we have to take a break. we'll be back. >> don't go away. ♪ [ bicycle bell rings ] [ bell dings, kids cheering ] ♪ ♪ [ cheering ] [ female announcer ] sharing. that's video on the human network. cisco. welcome to the human network. welcome back. updating what is certainly the more interesting stories of the morning to say the least, the u.s. attorney bringing numerous charges for insider trading against a variety of fairly high-profile people on wall street, or at least a couple of them. the main one being raj rajaratnam, who founded and has run the hedge fund galleon grou. he was apparently arrested this morning at his sutton place home and taken by the fbi down to -- to be arraigned later today on the charges against him, which seem to be numerous in -- in number based on corroborating witness and an awful lot of tapped phone lines. certainly an investigation has been going on for quite some time. we're going to have a lot more, of course, as this story continues to develop, shaking the hedge fund world right now. that is for certain. let me send it back to you, erin. >> thank you very much, david. so, mark, yesterday i spoke to general david petraeus, who's in charge of the wars in iraq and afghanistan and pakistan. here's the headline. >> this is about winning the peace. >> winning the peace. >> yes. >> we have an extended conversation but the winning the peace part is where business comes in and cnbc comes in, and we have, as you know, spent a lot of time on this. we're going to be showing you much more of the interview with general petraeus on monday on "squawk on the street." and one of the ways, mark, to win the peace is bring investment in. in what way and how it will be embraced and who will do it? we will be profiling companies. we just got back from iraq over the past couple of days that have done that. oil a big part of the story. >> this is going to be on "street signs"? is this going to be a special? >> it is eventually going to be a special. we're going to do it on "squawk on the street," and then we'll have extended pieces profiling soldiers. one won a purple heart, companies, as well as hedge funds who are investing in iraq. we have royal dutch shell, i think most people who think of iraq, think of oil. it could be the third's biggest reserve. royal dutch shell negotiating oil reserves. one of the biggest questions for iraq, if they cannot figure out how to share oil revenue, will they get the investment? but you can iraq go to the 15th biggest producer of crude oil to the third bigger. but one of the things that interested me the most, people are not focused on investing on oil there the most. big giant companies are but some huge stories outside the oil industry. >> not to further complicate the issue, but don't we american taxpayers have a claim on iraqi