Transcripts For CNBC Squawk On The Street 20141024

First case of ebola in new york sending futures lower. Is wall street finally giving up on amazon . It was a big mix. Head winds bring worries to that stock. The company poised to open down over 10 . Value in proctor or ford or ups . Those companies in the green this morning after reporting earnings, as well. Futures are moving lower to the down side after lows of the morning amid concerns about new york citys first ebola case. A doctor tested positive for the virus after treating ebola patients in west africa. Some of the gains from thursdays rally were pared back where the doctor was being tested, dr. Craig spencer at bellevue hospital. Had been at guinea. A lot has been written about where he was, that he went bowling, he rode the atrain. We knew we would be dealing with this in some city at some point. Right. I think one of the reasons why i feel if we werent in new york we would be saying, i dont know what new york is thinking. Didnt we just have four people who lived with the late mr. Duncan who didnt come down with it . Emergency workers who held him didnt come down with it. Are we going to be talking about bowling balls at gutter in brooklyn . Am i supposed to turn to you and say im so glad i wasnt the gutter. And i bowl at Brooklyn Bowl . We are not going to get to that. I hope we dont get to that. One hopes we dont. I took the subway as i do every morning. Wasnt concerned and neither did anybody appear concerned i was with. Subway riders, an alltime high, i would add. So we hope that it is a rational respon response. One would expect it will be. It does seem as if we crossed at least some area perhaps of understanding of how this virus really gets transmitted when you look at the fact it has been solely Health Care Workers at this point. By the way, very happily, we can also say only one person died so far. Its easier to get killed by an axe in the subway than by ebola. By what . An axewielding man. There was an axewielder in the city. Im saying there is a lot of craziness. Probably easier to get the flu and die from that. Im going to put it out there. A lot of guys in Law Enforcement said this. There should be quarantine. You go to these areas youre a health care worker, how about a 21day quarantine . Nancy snyderman, she is a terrific doctor she came back from africa with the team and did selfquarantine. The key is to encourage doctors to heroically keep going to west africa. Doctors without borders, ten days back. I think the more i talk about it, the less i should talk about it. On that note, lets get to meg terrell with a lot more on the ebola case in new york. Reporter i think you guys are making good points about the importance to not panic here in new york city. We did just get information about dr. Spencer. We initially heard his temperature was as high as 103 yesterday morning. Now we learned it was actually 100. 3, so much lower than we initially heard. A lot of people are concerned because he was out and about in the city wednesday evening. Health officials are trying to tell people because he wasnt feverish at the time and ebola doesnt spread when youre not systemat systematic. He finished his work in guinea on the 12th, left the country on the 14th. Arrived at jfk on the 17th. It wasnt until tuesday he started to feel sluggish. Of course not until yesterday morning he came down with a fever. Because he is a doctor and he had been through all the trainings, he followed all the right protocols, so did the folks who picked him up. We have video from the New York Post showing Emergency Responders wearing full personal protective equipment. And taking tons of precautions getting him to bellevue one of the designated hospitals in new york with an ebola unit to keep him in isolation here. Health officials are tracing his contacts. They identified four. They know he had contact with including his girlfriend and two friends with whom he had close contact then an uber driver who they say is at low risk. They are continuing that. Its really important to emphasize the risk of spreading in the community here in new york is very low. As you pointed out in dallas, Thomas Eric Duncan had 48 contacts, none of whom came down with ebola. It was two Health Care Workers. Bellevue says they are well prepared. Thank you, meg terrell who will be reporting on the story throughout the day and has since the crisis began. We will start off with amazon. That Company Reported a far wider than expected Third Quarter loss as the Online Retailer continued to invest heavily in new businesses, products and services. Revenues were below what the street was looking for, despite what was a 20 jump in sales. The Holiday Quarter guidance is below consensus. The companys cfo spoke about amazon strategy during last nights Conference Call. We remained focused on driving a better Customer Experience through price selection and convenience we believe putting customers first is the only reliable way to create lasting value for shareholders. They do say customers 34 times in the Conference Call. The second most often used word is excited. 21 times. The question is, will investors still be excited . That is always the key. Amazon, if you want to correlate the stock price to what the financial metrics are, its always been revenue growth, growth of assets and gross profit dollars. Those have been the correlations. Not net profit. Not Free Cash Flow, not operating cash flow. One wonders whether that is going to start to break down as people start to lose faith. This is the Fourth Quarter in a row where the stock suffered almost a doubledigit decline. Metrics were quite awful. There was a moment in the Conference Call where it finally happened. An analyst broke ranks with the amen corner group of people. Aaron rubenson from Wolf Research asked this. Hello and thanks for taking my question. Hoping we can go back to square one here if you dont mind. Can you tell us or remind us what Financial Measures are important to you . While Financial Measures, which Financial Measures do you hold yourselves and the board hold you actable to . Because its a little hard to see any of it making positive progress. I would like to go back to basics. That said, why are there only two downgrades today . People like to people are very forgiving. Not any more. This was it. This was the call where you finally heard someone say, you have no clue whatsoever. The answer is always the same and has been since day one. We are going to maximize Free Cash Flow returns, well have our return on invested capital be above our cost capital. Thats what its always been. The question is, do you follow . There have been crisises of confidence in the past between joseph bezos and his shareholder base. Theyve always come back into the fold. Its that revenue guidance for the Holiday Quarter that has to be giving people. Trying to match the ups revenue guidance of 11 for the holidays with amazon. Im beginning to and federal express. Yes. Im beginning to think that, first of all, amazon, the new products have just been not good. What a diplomat i am. You dont have a kindle fire phone . I have seven gopros. I think what matters is maybe the omni channel. Maybe the model of what you hear from the targets of the world. Youve got bricks and mortar and you can return. Maybe that is impacting it. Did not get that question on the Conference Call. Wish we did. Im beginning to think the other guys have figured it out. Meantime, someone wrote this morning, bezos net worth of 29 billion is ten times the entire profit the company ever amassed. I love that stat. That one i did not know. I remember when the peak occurred here. Which quarter was it . When did the documentary come out . July. We have a very good way of doing that. We did that on walmart, too. And costco . Not mcdonalds. There is mr. Bezos who famously would not agree to sit down and talk to us, unfortunately, when we did take a look at this company. Too busy spending 100 million on movies. And blaming, i thought interestingly, a move from purchasing text books to renting text books. That threw me for a loop. Its not clear how much it really would have mattered. Massive full page out in the Washington Post for alpha house season two with mark goodman. I remember delta house failed. I dont know. This Conference Call reads to me like, you know what are they just setting us up to outperform for the Fourth Quarter . Last year they earned 500 million and overdeliver. Then everybody will go, you see . They turned the old switch. They were able to generate it. Make sure those metrics that do matter for investors. He follows up with a great note saying they could make money. They could make money. And the sparts aparts are worth than the whole. They dont think this is a bad company. They want to see discipline. I found a company that does a lot of what they do that sells 30 times earnings, not ebitda, not reps, thats about ten times as big as they are in growth rate and its called alibaba. I would say if you think amazon is going to turn the jets and alibaba goes to 120. Why not swap out amazon and get into my buddy pal friend alibaba . Who wants to get into the content business. They can do whatever they want because they like to make money. They can do whatever they want. You have to trust them to do whatever they want. Youre not going to have a say. I have three words for jeff bezos. Watch forrest gump. We learned from mr. Ma. A jack ma reference. Thats right. We have a lot more earnings to get to. Ford, p g, microsoft and how their stocks are faring in the premarket. What are todays results from ups telling us about the economy, the economy and the Holiday Season . Well talk to kurt kuehn later this morning. We are trying to get as much information about that doctor in the hospital in new york city. A lot more squawk on the street. Gamble beating the stre its quarterly earnings. Revenue in line. P g announcing plans to exit the duracell battery business. Automotive revenue came in slightly below forecast. Ups better than expected results adding december shipments up 11 from a year ago. Well talk to the cfo late they are morning. Probably most interesting is the duracell news out of p g. I remember in 2005 when they did the largest deal. It was a great deal. I remember when gillette got with duracell. You were going to have batteries in your razors, which some of us do. This just says proctor and gamble means business. Weve been waiting for them to trim, not the fat which they continue to do, but the brands that are just not going to generate the organic growth they need to go back. This is bold action that weve been looking for. Thats why proctor is up nicely. It makes sense. They broke a fivequarter string of lower Gross Margins matching a year ago. They shed 25 brands in five quarters. They mean business. I think mr. Mcdonald is now at the va knew this. I feel like there was kind of setting this in place but didnt get a chance to finish. Its really aggressive. Ive been comparing this very much to what disney did. Disney would make a lot of movies, then realized we have good franchises. Lets just do them over and over again. That a sequel for winning franchise, billion dollar franchise is better than constantly trying to find new ones. Proctor is going back to its roots. Duracell is just not synergistic. Its a crummy business the battery business. Its a football business. Cvs has it for this much, walgreens has it for that much. To get out of that business and go onto something where you can maintain a price point is a brilliant move. Ford, north america, operating net 39 . They dont have the right cars. I looked at the gm call. It was down. Gm has much more back than ford. Maybe his hand wasnt as strong as we thought. It just wasnt that great a quarter. You dont think its about new f150 coming out . Some were saying, jim, you love the f150. Gasoline is down. Oreilly automotive was up. That was a play on keeping your car longer. I think gm, we thought they would be off. Kind of like distracted by the recalls and they werent as much. In ford we thought they had better models and they dont. I dont know. Ford is quite surprising. Its really not that much different from the analyst meeting. Its not a new leg down. When you go over the deck, youre reminded, wow, they were doing better six months ago. Good everyone m was doing good six months ago and is now doing better. Doesnt matter. Gm is a hated stock. The group is hated. What is the eventual number going to be . Go over that acquisition they made in 2005. Youll see that proctor did buy it talking about duracell . Yes. Proctor did buy it for gillette. They had a range of businesses and perhaps that was the beginning when they should have realized they should be buying companies in their core competence. They got out of food. Pringles. Jif is gone. You dont have to be the biggest to be the best. Unilever had caught up. This is, again, why proctor is doing better. A. J. Lafley will not be in that job forever. Had it, left it and come back to it. We are talking about a successor in the not too distant future. Dismantling a company he helped build. I think the important thing is that this company is no longer the proctor we are used to, which is to say, you know what . They hire well. Its a lifetime business. You go to proctor. You go to proctor, you worry about your job every minute. Microsoft beat the street. Better cloudrelated products. Commercial cloud revenue grew 28 year over year. Fifth consecutive quarter of triple digit growth. We are the only company with cloud revenue at our scale growing at triple digit rates. Surface revenue 2x. Xbox sales 2x. This was a fabulous quarter. One of the things i love, he figured out you want to combine the beauty of a sales Conference Call. Customer obsessed, those are all really good. Then integrate the apple Conference Call lingo. The Overall Health of the windows ecosystem. Since when does windows have an ecosystem . Now it does. Theyve gone from being a shakespearean tragedy to being one of the light comedies. I like that the cfo was asked if the company was cool. Her response was, i wasnt that cool in high school. She wasnt. She is not cool. Doesnt mean she is not someone you want to be with. She is not cool. When carl asked why did you accelerate the buyback. Her answer is, hey, thanks for the question. We are proud of the increase in share return this quarter and focused how we can continue to do that as part of our overall longterm shareholder growth. That is code we are in there buying back stock aggressively. Amy hood, who you know i think is fabulous. She is one of the great cfos in the country, is just part of this orchestration of a wonderful Conference Call. Its got that going. Sondheim . Not sweeney todd. Not follies. This is more company. My favorite of them all. If the late Leonard Bernstein could do a score to this, beautiful. Mad dash in a minute. Cause everyones coming in for the new iphone. Whwhat. Kind of service plan can you get . Well right now if you select the 15 gig plan well double your data and make it 30 gigs for the same price. Well that great youll take it. In head are you inside my mind right now . Nope where was. Albuquerque who was the porcupine what is my fave hollandaise sauce no way. The new iphone is here and now you get 30 gigs of data to share starting at 160 dollars a month. They take us to worlds full of heroes and titans. For respawn, building the best teractive entertainment begins with the cloud. This is titanfall, the first multiplayer game built and run on microsoft azure. Empowering gamers around the world to interact in ways they never thought possible. This cloud turns data into excitement. This is the microsoft cloud. Its in this spirit that ingu u. S. Is becoming a new kind of company. One that helps you think differently about whats ahead, and whats possible when you get things organized. Ing u. S. Is now voya. Changing the way you think of retirement. We are five minutes away from wrapping up the week. Lets do our mad dash this friday. Opco initiates a pro go with a sell. I didnt think you were allowed to do that . Shrinking growth outlook, unrealistic expectations, valuation. Its not a shrinking growth outlook. The expectations are not unrealistic. Valuation im not crazy about. There will be insider selling. The International Demand for gopro alone is incredible and they are not Even International yet. I think the problem with gopro is they cant make enough for the christmas season. They cannot make enough for the accessories that you buy. This is Cabbage Patch dolls. Its like you couldnt store them then one day its over. This is far from over. Alibaba, they rang the bell that day. Yes. Having this as a sell, i want to go against it. If it comes down. All right. Well watch gopro with a lot of the other names. We mentioned whether it be amazon down, microsoft up. Ford. Things we havent gotten to yet. Its a fresh approach on education superintendent of public instruction Tom Torlaksons blueprint for great schools. Torlaksons blueprint outlines how investing in our schools will reduce class sizes, bring back music and art, and provide a wellrounded education. And torlaksons plan calls for more parental involvement. Spending decisions about our education dollars should be made by parents and teachers, not by politicians. Tell Tom Torlakson to keep fighting for a plan that invests in our public schools. The all new, head turninghat cadillac ats coupe. Its irresistible. 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. You are watching cnbc squawk on the street. Opening bell in about 30 seconds. A lot of earnings to get to. What a month. Five 200 point games for the dow this month. We are still down almost 400 points. When you go out now, you know what people are talking about besides football . The market. Its been ages when i go to a tavern or out to nner. People say ive been watching that apple. Im think iing people want that steady stuff. Well see if we get more craziness today. Msci celebrating the launch. And unicef celebrating its annual trickortreat. Amazon will be the one you want to watch. Yeah. I dont want to touch that. You set us up, youve got a whole three months before you do it. Im taking my cue from that Conference Call, basically listen, we are going to spend and get a return on investment. There is a lot of faith in amazon shareholders. I dont know where the stock goes because if you were to put it near term earnings multiple on it and or think thats whats important as opposed to sales growth or gross Profit Growth or tangible assets, whatever it may be, youre talking about a whole different equation. Tracking for the worst year for amazon since 08. Google sells it for cheap. Google is a continual theme for anyone doing online which is google beat the heck out of us. Remember yelp. The monopoly that is google in europe hurt us. The monopoly. Amazon is no longer a monopoly but google is a monopoly according to germany stock. Amazon no longer . Amazon has never been. The omni channel which we all thought was, give me a break, amazon is killing it. I wish someone asked about amazon having a building. Would have been interesting. They have a retail store. Someone asked about amazon fresh in brooklyn. One thing that is unbelievable about amazon, lets say it was your kid, like my daughter down in new orleans. Dad, you need 100 million because i want to spend it on the movies. Okay. Thats fine. Im thinking about building my own phone. 200 million . Fine. Everythings fine. How about a fire . Heres 300 million. The discipline is not really there. They would argue differently saying we have discipline to focus on what we believe our customer wants and to continue to invest in the business in ways we choose to. We are the dominant emarketplace in the United States and potentially the rest of the world. Well take shots at things. Some will work. Facebook takes shots at things. I looked at the mandarin presentation. This guy has game. He goes to china and talks the talk. Mark zuckerberg who has been studying mandarin, originally for his wife when she wasnt his wife, but her family is mandarin. My wife speaks mandarin, i did not learn mandarin. There you go. Its not too late. When does he have time to learn mandarin . On a plane . He probably has hes like Rosetta Stone guy in his head, a rosetta chip. Some stocks getting a pop today. Kla. Credit suisse downgrades it. Grinch. State street out there today. Ups, procter and gamble. I would like to see Northern Trust and bank of new york do as well. When we look at yesterday there was a really shocking move by Diamond Offshore in the Conference Call. I was hoping to see more of a follow through with the drillers today. No. If oil breaks through 90, well go down again. The drillers are saying im glad you said that. Its an algorithm. Yes. Drillers are saying oil will go through 80. If that happens, well be down today. That means more money if you shop at target. But there will be a break in the stock market if oil goes below 80. Pandora down 9 , they beat by a penny. Stocks down 13 this year. I dont know how much people can ask for there. That number read good, but im not a big fan because there is so much competition in that group. There is a lot of competition in that group. We are seeing stocks that continue to do well. I dont know if youre following cvs. They have been killing it because of this no smoking thing. Awfully close to an alltime high. I think who has game. Those guys have game. They got out of taken and have been making hay. Those of us who hate tobacco and we hate it, send them to cvs. Brilliant move by them. Colgate palmolive. When procter was in the dog house we would look at colgate and say why doesnt procter learn from them . Procter has more game, better dividend. Bond market equivalent with upside. I like procter and gambtec proc colgate. Deckers. 117. Im going to talk to martinez tonight on mad money. I think he was being conservative. Angel is doing a great job. I want to spend time on that. People look at a conservative guidance and think like under armour that its over. These companies say, dont go crazy. Deckers is dont go crazy, skechers and under armour. Thats way think is happening in those stocks. I dont want to discourage people from owning any of those three. Travel stocks havent been hit the way they have been hit in the past. Delta airlines up today. Isnt that interesting . The duncan case made people feel better. Where is the czar today . Im asking where the czar is . I dont know. He should come out today and say, you know what . Youre a health worker, we love you. You come back you are going to the equivalent of ellis island. Or guantanamo. We are not sending people who come back to guantanamo. Weather is good there. Oh, boy. All right. I am being facetious. But i think a quarantine. A czar would be doing that. As i said and others are far more expert, what we should be focused on is containing the epidemic in west africa. Thats what its about. If you allow geometric progression of the disease there, we are going to talk about this a lot more often than with more concern than we currently are. We are dealing with Health Professionals are risking their own lives. Not disagreeing. I know glaxo. I did speak with the quintiles guy. He said forget it. The vaccine will take a long time. Dont think anything is going to happen overnight. They are trying to compress what takes years. Paul allen donated 100 million to the state department for containment of the evacuation of Health Care Workers. That is so great. Back to where we started on travel. American airlines which had incredible numbers. Unbelievable quarter. Up another 2 plus. They just coin money at these prices. Ive got to get in that airline business. We are getting breaking news on this chiquita story. Chiquita shareholders in a special meeting rejected the companys proposed merger with fyffes, an irish produce companies. Chiquita brand shares up on the news here. They are going to terminate Transaction Agreements with fyffes and start discussions with the Cutrale Safra groups. Their current offer on the table is 14. 50 per share. Back to you. Lets get to bob pisani with the dow up almost 53. A different reaction than we would have had a few weeks ago on news of a doctor testing positive for ebola in new york. Much more nuanced response from the market we had today. Lets talk about earnings. Generally, again the friend generally better than expected. Very impressive numbers from ups. Youve got to look at not only the domestic numbers of 6. 9 . Most analysts were in the 5 range. Total International Volumes close to 7 . Again, a lot were in the 5 range. Those were good numbers. They beat, they reiterated guidance. Lets talk about hotels. Windham big in the time share business. Vacation rentals. They had a good report overall. They are down right now. The problem is even though they beat their 2014 initial guidance is a bit on the cautious side. They raised 2014 guidance. Its the 2015 guidance people are reacting to. They did approve an increase in their buyback. Choice hotels, beings ecolodge, comfort inn beat and raised 2014 estimates. That stock trading upward fractionally. Want to move on to the Exploration Production companies. Cabot, a big shale producer were light on the top and bottom line. What i found interesting was there was no talk about reducing production in light of lower prices. In fact, they said they are going to see a meaningful rampup in Oil Production in the Fourth Quarter. Nothing from them on reducing it so far. Stock is up fractionally. You are right. E p, all the big names, eog, chesapeake, they are all trading down significantly here. Lets move on. Nasdaq. Volatility helped these companies dramatically. Im talking about the exchanges. They came in roughly in line but did announce a 500 million Share Repurchase program, as well. That stock is trading down. You spent a lot of time on amazon. The thing amazing to me and i spend a lot of money on amazon. Revenue up 20 and still a loss of 95 cents . 170 million inventory evaluation reduction on fire phone sales being poor. This is the great irony. North America Media up only 5 . Is this ironic . This is because the old school physical text book sales were weak from the shift of ownership to rental. And to digital. I would note, you see that electronic and general merchandise, thats 2 3 of amazons revenue. That was a very good number. That was one of the few pieces of good news we saw overall from the company. Right now the dow industrials, very steady, up 50 points. You can see amazon, by the way, that is a 52week low for amazon. The worst day for amazon since the last time they had earnings. We are minus one on the day, up seven on the week. Twoday chart shows where the pinball bumpers are. If you open the chart up to august, it is screaming where the next yield stop will be. Those two bottoms around 233, 234. Thats what technicians are looking at. Keep that same time frame, august 1st, and lets throw a bund up there. Left side of the chart right a smidge under 90 is where the last two yield bottoms are. Thats where the stopper was today. If we look at the dollar yen, which is one of the most talked about cross currency trades on this Trading Floor the last nine months or so, you can see the dollars resurging a bit. The yen is doing a bit better today. Good moves as we grab that 108 handle again. Especially considering some of the Economic Issues and tax issues coming forward very quickly for the japanese and their economy. The last chart, dont show this chart much. Considering that cameron is taking on the notion that he has to start writing checks for europe is really a big deal. We want to watch the pound versus the euro. You can see on this chart doesnt look like Anything Electric is going to happen, but give it some time. Carl, back to you. Thank you very much. When we come back, veteran microsoft analyst weighs in on the dow component results. Big day . Ah, the usual. Moved some new cars. Hauled a bunch of steel. Kept the supermarket shelves stocked. Made sure everyone got their latest gadgets. Whats up for the next shift . Ah, nothing much. Just keeping the lights on. laugh nice. Doing the big things that move an economy. See you tomorrow, mac. See you tomorrow, sam. Just another day at norfolk southern. This guy could take down your entire company. H . Stay with me. On thursday a hamster video goes online. On friday it goes viral a network choking phenomenon. Why do you care . Hes on the same cloud as your business. The more hits he gets, the slower your business may get. Do you want to share your cloud with a hamster . Today theres a new way to work. And its made with ibm. An Unprecedented Program arting busithat partners businesses with universities across the state. For better access to talent, cutting edge research, and state of the art facilities. And you pay no taxes for ten years. From biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo. Startupny has new businesses popping up across the state. See how startupny can help your business grow at startup. Ny. Gov aaron paul taking on toys r us. Upset that the toy store chain pulled Action Figures styled after the characters. They did that after a petition filed by a florida mom. Wait, so toys r us pulled all breaking bad figures from their shelves that still sells barbie . I wonder what is more damaging . Florida mom messed it up for everyone. A lesson retailers, no matter what they do, are going to get it. Call saul. Talking about toys r us, there is a company having a rough go of it. Has had a rough go of it. People who took it private wish they could have brought it public quite some time ago. That has not happened. Then the toys in general, mattel, hasbro. Hasbro doing better. Hasbro and star wars will be big next year. You can get toys on the web. The web is made for toys. Not text books. Those are rentals. You rent your text books, buy your toys. That was a horrendous Conference Call. Not since the rebellion of procter or the mcdonalds call, i mean the procter call with mcdonald. Are you kidding me . You cant be this bad . Do you care at all . Yes, we care about what do they care about . Cash flow. Future cash flow. Listen to the comcast call. We work for comcast. Operating cash flow, a number that doesnt lie. Well be back. To help entertain some friends at the beach. Before earning 1 cash back everywhere, every time. And 2 back at the grocery store. Even before he got 3 back on gas. All with no hoops to jump through. Rafael was inspired to use his bankamericard cash rewards credit card to spend a night watching the stars, under the stars. Thats the beauty of rewarding connections. Apply online or at a bank of america near you. Celgene. This company is amazing. The Company Sells at less than 20 times earnings. This is going right to 120 is my view, taking gilead with it. Only 1 off the 52week high. Gilead was the controversial hepc. Regeneron should see 400 today. People want your view on bmy. Bristol was what can i tell you . Bristolmeyers, very fine quarter. They are doing a lot of things right. Remains a core holding for every person who thinks what stock can i own the next five years . We never mentioned shire. Thats our bad. Shire had an unbelievable quarter. It did it is well off the lows when everybody sold it. When the abbvie deal broke. The hive 1. 6 billion. Not unlike biomarin. They do a lot of orphan drugs, a great Business Protected by patent. Theres a lot these companies are doing great. They are going up because they are inventing things and discovering things and curing things. Finally on the broader market, we are going to talk to mike santolli. You have a bull and bear in the ring. One pushes the other out of the ring and they reset. Master blaster. I like that. If i said that, people would be saying, do you know how hard sumo wrestlers work, how could you say that . Whatever i say is completely misinterpreted. Guantanamo was a joke. I want guantanamo closed. Except the really bad guys. Sometimes im facetious. I want it closed to people who wanted closed, i want it open for people who want it open. That way i dont get in trouble. People are worried about ugg and deckers. Is the new sneaker really good . Angel martinez will explain why this company is doing incredibly well. Angel martinez tonight, special edition of a stock getting hammered that maybe shouldnt be. Have a fabulous weekend. Denver won last night. You are in good shape. Youve got a bye. I go to arizona. Ive got a bye the rest of the season if you are a new york football fan. Arizona is going to youll have your hands full. Yes. I have ellington, palmer and i have floyd. Im playing against myself in my fantasy league. Im a triple schizophrenic this week. Mad money 6 00 p. M. When we come back, breaking news on new home sales. Kurt kuehn on the companys better than expected earnings. Theyre coming. What do i do . You need to catch the 4 10 huh . The Equipment Tracking system will get you to the loading dock. There should be a truck leaving now. I got it. Now jump off the bridge. What . In 3. 2. 1. Are you kidding me . Go. Right on time. Right now, over 20,000 trains are running reliably. We call that predictable. Thrillingly predictable. Its in this spirit that ingu u. S. Is becoming a new kind of company. One that helps you think differently about whats ahead, and whats possible when you get things organized. Ing u. S. Is now voya. Changing the way you think of retirement. The all new, head turning cadillac ats coupe. Its irresistible. Get to the terminal across town. Are all the green lights you . No. Its called grid iq. The 4 51 is leaving at 4 51. They cut the power. Itll fix itself. Powers back on. Quick thinking traffic lights and self correcting power grids make the world predictable. Thrillingly predictable. Breaking news. New home sales were up 18 coming in. That was the august read. September there is a giveback. Going from 5. 04. Comes down to 4. 66, up 15 from the previous month, we end up at 4. 67. It is a big drop psychologically from the original release at 504,000. We are going to continue to monitor housing to see if its a tail or headwind. Well see whats heading for the markets before an important weekend. Especially in new york city and following the big story there. Diana, give me some granular numbers. Im falling off the box im standing on. Ive got to say of course we expected that number to be revised. These new home Sales Numbers are based on signed contracts in september, not closings. They are subject to very wide revisions and thats what we are seeing today is a wide revision. What is interesting is that the median sale price of a newly built home was 259,000 in september of this year. Last year it was 269,800 in the same time period. We did see a big drop in the price, median price of a newly built home. The Home Builders have been raising prices for the past year or two steadily. That caused sticker shock, a lot of the builders were saying maybe we overshot on that. They had higher prices for land, labor, materials. A lot told me they would have to bring it down to get buyers back in the door. They are bringing down the prices. They are still selling that higherend home. Their price point was higher because they were selling the higherpriced home, moving away from entry level homes. Squishy number but on the good side. We did expect that revision to the last month. Back to you. Thanks. Equities are holding on to their marginal gains here. Big mover is amazon. Disappointing delivery. The Online Retail giant missing big yesterday. Shares plummeting nearly 10 . If you look at the stock right now, down about 8 . It is at a 52week low. The lowest since august 2013. Lets talk about it. President of sw retail advisors, a contributor here. Eric sheridan of ubs. Is jeff bezos free pass over . Increasingly what weve seen with each passing quarter, investors are beginning to lose patience with the lack of transparency into these investments. Every investment cycle at amazon has been met with reaccelerating revenue growth. What we are being faced with is decelerating revenue growth. Investors are worried these are more defensive than offensive as you look ought over the forward period. Would you agree with that, stacey . That is the big disappointment here is the rate of sales growth is not keeping up with the rate of how much its costing . Thats the problem here. Amazon clearly said consumers first, shareholders take a number. Its fine when your sales are growing 20 plus, but the guidance they put out for the Holiday Quarter is 17 to 18 sales growth. When you are in investment mode and sales are slowing down, that equation know longer works. You no longer get a free pass for that. In addition, they continue to invest, including in the fire phone, in products that arent working. Big questions here going forward. I should mention that its not just today. Amazon tracking for its worst year since back in 2008. Stacey, the holiday. You mentioned the holiday disappointment. Or maybe eric to you, obviously they are struggling with Global Growth concerns, currencies weighing on the bottom line. Something more worrisome are or they generally conservative with a holiday forecast . They tend to give a wide range of holiday forecasts. Even the high end of that range would imle reply less than 20 topline growth in q4. Adjusting that would get you to flat growth year on year with what we saw in q3. No reaccelerating revenue growth. One area of weakness is media. Where amazon is struggling to live in a world where media moved from physical consumption to digital consumption and streaming consumption where they have less exposure. They tried to offset this with Technology Hardware in the marketplace. Again, they have not succeeded yet. The fire phone, the kindle tablet, both selling worse than expected. Its still worth 133 billion after todays draw. I wonder if jeff bezos cares what people on wall street think of the business. You guys push peoples money around, im trying to generate wealth here. Give me a break. How would you respond to that . We talked about that before. The consistent message from jeff and the board is we are investing long term. We dont care about near term profits. Not being able to see any transparency on when those investments will pay off is whats causing investors to sort of lose their patience. What do you do with the stock . Its down double digits. Clearly, this reaction is negative going into the Holiday Season. If you own it, do you sell it or do you hold it for the long term . I wouldnt be a buyer of amazon. The other one is prime. They increased the fees there. They are talking about no pushback so far. Thats a potential. We are seeing a lot of retailers, including target say, Free Shipping across the board for holiday. So the question is are the retailers that have fallen so far behind amazon finally getting it together and finally going to give amazon, particularly in general merchandise and consumer electronics, a little bit of a run for their money . That coupled with their investments. Do you buy that, perhaps amazon is vulnerable with market share as other retailers get in the ecommerce game. You have a neutral on this stock. Weve long been worried about Offline Retail getting any better than to date at e commerce. We have seen one or two announcements. Its early in a slew of announcements that are going to come to retailers that will create head winds for amazon. Our view is we dont see a compelling reason until you see signs of reaccelerating revenue growth. Or improvement on profits margins. We didnt get that on the call. Certainly the vibe is negative. Thanks to you both. The House Oversight committee is holding a hearing on the obama administrations response to the ebola outbreak. This as a doctor in new york city who recently returned from treating ebola payings in guinea tested positive for virus. The former chief medical officer for the department of homeland security. Dr. Garza, welcome to the program. How are you . Im concerned as many new yorkers this guy was using the subway, went bowling in williamsburg, took a taxi back to manhattan. The critical question was whether dr. Craig spencer was systematic when he did that, and therefore, contagious. When he turned himself in, his temperature was not 103 as previously reported, but 100. 3. Is that accurate . I had not heard that story about his temperature. Let me address questions of him traveling around. Clearly he was without symptoms as he was going about his daily routine, going to the Bowling Alley, taking subways, things like that. From the point of risk to the public, he is no risk of spreading disease to the population. He hasnt developed enough virus in his body to shed them. I would be concerned if he had more overt symptoms, throwing up, diarrhea, things like that. Its important to point out the fiancee of thomas duncan, good night who died from ebola in texas went through the full quarantine and was clear. Its not airborne, in other words. Correct. Even though its highly infectious, meaning you dont need a whole lot of virus to become infected, its not that contagious. You have to be around somebody that is producing fluids. You have to be in contact with the fluids. Typically somebody producing those fluids, whether its vomiting, diarrhea, things like that. They progressed in their disease. To be clear, until ten days ago, dr. Spencer was physically working with ebola patients in guinea, wearing protective gear. Thats how serious his situation was. Last week he travels through europe, been in new york city about a week. People will say, does the rest of the community have to rely on these people that are at risk, simply diagnosing themselves and taking their temperatures twice a day, ensuring they have the good grace to turn themselves in before they are inspefectious f other people . Na is a valid question. Dr. Spencer is in a highrisk category. He was physically working with very infected patients. Thats a much different category than somebody who just by chance is coming from liberia and may not have been around anybody exposed to ebola and has a lower risk profile than dr. Spencer. I agree we need to have a discussion as a nation, as a government on what is the best approach for identifying these patients and not putting the population at risk. People wonder whether the cdc claimed to know more about this strain than they do. Whether this is more contagious than those in the past. How do we get around those concerns . Right. Sometimes that is tough to do. Absent information, people are going to fill in what they think. We do know from this virus this is the most virulent species of ebola, mortality rate from 70 to 90 . The best thing the cdc can do is keep putting out information about the patients and about the virus and things they are doing to protect the federal government. You are never going to get around those conspiracy theorists and things like that. The best thing you can do then is communicate with the American People and show and take very proactive steps then to build that confidence that the federal government is protecting them. Thanks for the advice, dr. Alexander garza. Absolutely thank you. When we come back this morning, microsoft stock getting a lift by the cloud. Cloud revenue doubling in the recent quarter. The stock trading modestly higher after those results. What should we be doing with the stock today . Financial noise financial noise financial noise theres a difference when you trade with fidelity. 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Downgrading American Eagle to a neutral rating. The stock is trading down by 6. 5 on the days session. Amazon shares tanked after disappointing results. Microsoft stock enjoyed a nice bounce from a major boost in its cloudbased sales. Ceo noted last night microsoft was the only company with cloud revenue at its scale growing at tripledigit rates. Joining us at post nine is Rick Sherlund who knows microsoft pretty well good. To see you. Thanks, carl. After oracle and ibm, this is a pleasant surprise . It was a real relief to see a big cap tech Company Actually doing a little better. Where is the strength . Is it cloud, is it surface, xbox . It came from the wrong place this quarter. Well take it. It came from the hardware side where they dont make much money. Who would have thought nokia would have produced good up side for them in the quarter . They sold about a Million Units a surface which is not great, but for them its pretty good. They started selling xbox in china. There was a bit of a sellin for the quarter for china. There was good news on the cloud side. It didnt show up on the up side you would see on the hardware side. Does this mark a turn in the overall narrative for this company . I think the companys weathered the worst of the transition from office. That revenue is growing on a net basis. The loss of and the gain in cloud is net positive for revenues. Satya is about to launch the expansion into the cloud. Microsoft will be the biggest Cloud Company in the world starting this quarter. It will be bigger than amazon. Infrastructure platform as a service. I was going to ask you, everybody is talking about the cloud. You hear it from oracle, sales force, microsoft is winning the cloud right now . It would be nice if it were all organic growth. 128 growth. Unfortunately, its coming out of other parts of the business. Theres about 5 net gain. For sales force. Com, its incremental growth. For microsoft, its enhancing over time because you end up with a more stable business that investors will like better. Its the same thing oracle and s p are doing. Microsoft is further along. Are you changing your tune on the nokia acquisition which will rebrand at lunia . You were critical of it in the past. We referred to it as an acquisition not even a mother could love. No. We are hoping it doesnt hurt them too badly here. Didnt they sell 9. 3 million phones . Im not sure i would take that to the bank yet. Give them a couple of quarters. We are optimistic that they can sort of work their way through this. They cut half the head count. I think the view is they are going to start cutting products out now to rationalize that business. Ballmer was out in interviews claiming credit for building muscle, going to the gym as he likes to say, making cloud a business where there was no Cloud Business before. Is that fair . Does he deserve credit . It was a start. Ray ozzie built the azore business. I think he was frustrated he wasnt permitted to pursue platform as a service as aggressively as he wanted at the time. Satya is counting the table cloud first, mobile first. Youve been vocal on this program and in your notes about use of cash at microsoft. Any change in thinking . The stocks about a market multiple. If you back out the cash, its about three multiple points less than the market. I argue you are not getting paid for the cash. They have about 5. 70 a share in cash, ex the tax you have to pay to bring it back. Thats about 50 billion. They have borrowing capacity. I think you could buy back 10 of the stock which is 35 billion. You think they will . I think the board will meet some time over the next quarter or two and decide what they want to do. One extreme view would be borrow 150 billion. Leverage the heck out of the company and buy back half the stock. Is there anything you could buy . Is there not a business you could buy for 150 billion that might be more productive than doing that . I hope not. Really . How sad. We would rather not see them buy any more companies. Stick with what weve got. I dont think there is any way bill gates will go back with buying back half the company. I think more moderate. They do buy back 10 , 20 . Does the xbox spin off as a concept, does that live or is that tabled . They are more likely going to want to hold on to bing. Xbox still loses money. I dont know there is a good buyer for it. It doesnt fit anywhere. You ship halo 5 a year from now. You probably wait. Youll generate 500 million. Theyll put you solidly into profits in it. I think you keep your options open on xbox. Always good to get your take. Take, Rick Sherlund. Despite the recent volatility, major indices have seen big gains. Will worries about ebola and the Global Economy cap that progress . 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Just keeping the lights on. laugh nice. Doing the big things that move an economy. See you tomorrow, mac. See you tomorrow, sam. Just another day at norfolk southern. We do have this first confirmed case of ebola in new york city. Dow is up the fifth time in six sessions. Jim stewart joins us at post nine. Good to see you. Sort of a reminder how much it takes or how little it takes to get people worried, right . Thats true. Its going to be around for a long time. At least so far, ebola in the United States is not a market or economic event. Its a health event, its a social event, its a government political ichbt, but its only in a very secondary way is it a market event. I think investors are starting to figure that out. I dont want to sound callous, but unless it gets bigger. Hang on. We only need one of these doctors returning from west africa to not check themselves in, turn symptomatic. If any of them fail to do that, we have a problem in a complex city like this. Absolutely. Im hearing they are thinking of imposing new controls on doctors returning. You would have thought they might have thought of that sooner. There are ways to address these issues. Im seeing reports of mishaps. We will get better of handling this. The market was handed an extreme downside scenario like fukushima. Its going to move bids for months. We know nothing about how this will progress. How does that change your psychology as a stock picker . It doesnt affect my views. Accept the fact there are a lot of things about life and the world we simply do not know. Why would you invest on a premise where you dont understand what its all about and what the actual implications are . Theres lots of speculation flying around, something could happen. Something could always happen. I think you stay the course. The president of the world bank was speaking this morning at the Christian Science monitor. He said the economic concern here is fear. This is a sentiment thing. Lloyd blankfein talked about this with you when you were out in california. This has potential to really freeze consumption. Travel. Some behavioral change because of the fear. Thats true. Weve been through these things before. Avian flu in asia. Yes, fear is an issue. I like to think ultimately reason prevails. The extreme comparison would be after 9 11 where people became paralyzed with fear and there were massive economic consequences. If the 24hour rolling News Networks continue to behave as they are, they could stoke up additional fear. Its possible. I think its interesting today this outbreak in new york city, the guy riding around on the subways, the markets are calm. People seem to be taking this relatively in stride. I dont sense an outburst of panic here. People have been absorbing this in texas. Im not saying it couldnt happen. Lets remove ebola. The volatility of the past couple of weeks. Some investors love it and its making others nervous. Where are you . Volatility to me equals opportunity. If stocks never go down, you never get a buying opportunity. I dont bet where the market is going except historically it tends to go up. When you get a big drop, its an opportunity to invest. If you dont get any drops, im doing nothing. Were you surprised to see how sharply we rebounded this week . S p and nasdaq before today were heading for the best week since 2013. What we talked about a week ago changed dramatically. Im surprised at the speed, yes. As we said last week, there werent any real fundamental issues. This was a psychological crack. I disagree. They are suggesting they might extend qe was a game changer. I was saying that last week. He said it last thursday. Youre right. Im sure that plays a factor. I think the sense is europe has got to do something. You want to get ahead of that curve. Who knows . Again, there were no dramatic headlines that said ive got to get out of the stock market. You write about brazil which is going to be fascinating. This to me is so fascinating. You had him on air. I interviewed the finance minister and his candidate who reminds me of ronald reagan. He is an unabashed pro market, pro competition, pro capitalist and has a chance in latin america . Im blown away. I was talking to him thinking polls are shaky. They are going to back down. Whether you agree or not, i hand it to them. They are sticking by their guns. They say we are completely pro market. Are you going to lift the gasoline price controls thinking they might hedge on that now . Absolutely. They dont want any price controls. They want market prices, efficiency, transparency, root out corruption. I hope they win. Its a great opportunity for brazil. Will they win . Its a long shot. Polls are closed today. It reminds me of what happened in india with modine. Is this an infliction point for merging markets . Hes not going to win. I dont think he can win, but the poll has him ahead today. Id like to think he can win. He is more than modi. I dont know if a republican candidate in the u. S. Would have the nerve to put as the treasury secretary somebody who started a Hedge Fund Like fragga did. Well see. Its a fascinating election. Well know by monday. Ill read it this weekend. Thanks. Sure. Straight ahead, ups topping expectations for the Third Quarter. What is ahead for the Holiday Shopping shipping season. The cfo will join us live. Act i. Scene 3. Open port twentytwoohoneseven on the firewall for customer db access. Install version twopointthree of db connector and ensure verbose flag is set in case of problems. clapping sound isnt the cloud supposed to make business easier . Get the one that can connect to the systems that you already have. Today theres a new way to work. And its made with ibm. An american doctor volunteering with ebola patients in guinea has been hospitalized in manhattans bellevue hospital. Expecting a News Conference with mayor de blasio to start in an hour. Hoping to get more details. What we know is that the doctor had attempt of 100. 3 yesterday morning. We had originally been hearing as high as 103. We know that he was out and about. Health officials are stressing he was not symptomatic at the time. The president of the world bank reiterated that message. The fact that he made the call and got the care literally the morning when his temperature spiked, i think, suggests to me the chance just as everyone said, the chance of infecting others before as the department of Health Person said, almost nil. Dr. Kim calling dr. Spencer a hero saying he was doing exactly what was needed going to west africa to fight the outbreak at the source. Health officials told us the risk to the United States and elsewhere is only eliminated when the infection is contained in west africa at its source. As for here in new york, dr. Spencer took the subway wednesday night and went bowling in williamsburg, brooklyn at a Bowling Alley called the gutter. That was before he had fever. The Bowling Alley saying on facebook it decided as a precautionary measure to close last night and is working with the new York City Health department to clean and sanitize the bar. New yorkers are very, very low risk. Mayor bill de blasio will give an update from brooklyn at 11 30. Thank you very much, meg terrell on the ebola incident in new york. Ups is beating earnings expectations for four cents a share. The shipping giant spending almost 700 million to make sure it copes with deliveries this year predicting volume will rise 11 from last years record. Kurt kuehn is cfo and web of our global cfo council and joins us from atlanta. Welcome back to the program. Welcome back to beating earnings expectations. Great. Thanks. Its nice to have a good solid quarter. A lot of people are talking about international as being the primary driver here. Is it doing the heavy lifting here . We are seeing balance performance across all businesses. International exports up over 9 . We had very strong growth over 6 in the u. S. We are seeing good momentum in both businesses right now. A lot of people, and im sure people where you are will be focused on the fact its 61 days till we get to christmas. You are spending 500 million on Capital Expenditure to deal with this now 11 gain on the record last year. Can you give us some color on what you are building out, why this year will be different . We had seen over the last couple of years the Holiday Season become a bigger and bigger jump from the typical yearround volumes as ecommerce becomes more critical. We are spending a lot of time and money on technology so we have better visibility from all of our major shippers so that we know all the loads coming to us from our customers. And on expanding capacity so we can handle those big increases as customers order their Holiday Gifts online. Who highlight the information situation, last year to paraphrase, a lot of the vendors it would appear were dumping trucks full of packages on you going there you are. You were like where did this come from . If i buy something online through the vendors enterprise software, you can see there is that package on the way . Weve done a lot of work integrating with multiple retailers both brickandmortar and Virtual Systems to get visibility from their dock to our door. We have a control tower where we are constantly communicating so we can keep the service at a very high level and manage effectively through whatever customers tend to get to us. The guidance for the Fourth Quarter looks to be at the mid range now below estimates, about 4 cents below where the market is overall. Are you implying with that guidance now that the cost of doing this, operating costs are going to balloon above the 175 million extra you already earmarked . No. We are not. We are above estimates that the street had this quarter. At least right now we may be a little below for the Fourth Quarter. Weve been consistent. We said we are going to spend about 175 million and added operating expense. We had done 60 so far and there will be 115 that will hit the Fourth Quarter. We are on target for that. We are ready to go. We expect a robust holiday with 11 growth in shipments during the month of december. Not just in the u. S. But international. We are ready for it. Weve done a lot of work. We are primed and ready to go. Speaking of those operating expenses, we are watching crude as we do every day, wondering if its going to crack 80. Your projections for what crude and gasoline will do in the next three to four months . We dont have a hard fast prediction. Its volatile. Lower crude prices is good news for ups and shippers. It allows us to lower our fuel surcharges. You never know. As volatile as the world is, there could be spikes. At this point, so far, so good. We hope it stays low. Ive been looking at a lot of these consumer Staple Company earnings. If you tried to glean what the message is from the u. S. Consumer, looking at a procter and gamble, mcdonalds or cocacola, its not a very strong recovery. You have a unique window to consumer spending. How would you characterize it . We are seeing a fairly robust retail growth in our sector. Some is because some of the transition to brickandmortar. In general we are bullish on the u. S. Economy. We are seeing growth in shipments. Our businesstobusiness, our industrial and manufacturing businesses are solid. We showed about 3 growth in the b2b part of the business. We think the economy is continuing to improve. We are not in boon times but we think there is improvement in employment and that the u. S. Consumer will show up for this holiday. Good night to see you, kurt. Thank you for sparing the time on a busy day. Kurt kuehn, a member of cnbcs cfo global council. The dow is up 34 points. Big mover helping the dow today is procter and gamble. Procter and gamble is hitting a new alltime high that its seen on the stock, back to levels of 1920. P g out with earnings in line today. We learn that the company is spinning off its duracell battery unit. Its a. G. Lafleys plan to simplify p g and bring back sales growth. He has a turnaround to execute here. Last quarter he told us he would exit 100 brands to do that. Weve seen them exit the pet care business, eukanuba and the battery. P g is focused on the winners. It does have hundreds of familiar products. Some hits include tide detergent, pampers diapers. While earnings were in line, there is nothing to write home about. Lafley called this a very difficult operating environment. Sales were flat. Volume was flat. They are getting hurt by overseas problems. The stronger u. S. Dollar and just a weak overall environment. Health care was interestingly a bright spot. A few questions ahead for procter and gamble. Who is going to be the next cfo . Lafley was just brought in to turn things around. Whether they are going to actually return to sales growth and how they are going to do that. Which brands are going to be on the Cutting Block . We did cash crowd yesterday. We had entrepreneurs back at hq and talking about this. This is systematic of Big Companies driving for volume. What a lot of the vendors are saying, we would like to have things just for us. They may be going against exclusive. Could you have a bigger range so we can stock something they dont stock there. They are in conflict with one another which is creating huge opportunity for startups. It will be interesting to see how p g pulls this off. Ive been talking about adult diapers. Two months and they have 7 market share. A huge demographic play. Mcdonalds problem is regional operators want specific product. Hard to do. When we come back, fords executive vp bob shanks will give us reaction to his company results. Music. The getaway vehicle for all the confidence you need. Td ameritrade. You got this. Just take a closer look. It works how you want to work. With a Fidelity Investment professional. Or managing your investments on your own. Helping you find new ways to plan for retirement. And save on taxes where you can. So you can invest in the life that you want today. Tap into the full power of your fidelity greenline. Call or come in today for a free oneonone review. There was no question she reminds you every day. But your erectile dysfunctionthat could be a question of blood flow. Cialis for daily use helps you be Ready Anytime the moment is right. You can be more confident in your ability to be ready. 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Thank you for that. Its good to be back. Young people have our future in their hands. Trust me. Exactly. You wrote a piece not long ago i really enjoyed reading. It involved the word austerity. If there is one word that i think is really misused, next would be reform, it would be austerity. Has europe taken austerity too far . No. They havent if you look at europe as a whole, they are spending more as a share of gdp. Their government are spending more, 47. 8 gdp is government. Thats above where it was prior to the crisis. They have actually grown their government. France, government is 57. 6 of gdp. Italy, its 50. 6 . Then just real simply, the bigger the government is, the smaller the private sector is. Every dime, every franc, every euro that goes to the government has to come from the private sector. The more government spends, the fewer jobs, the less vibrant, the less dynamic economy is. What do you tell dickensians it failed because it wasnt big enough . What i would argue is just show me the country that government has created nirvana. It has never happened. If it should exist, it would be france. They are kinder and gentler. Talk about compassion in government, they spent 57 of their gdp. They have a shrinking economy. Italy declined in the last two years. So has france. Europe is in trouble. They are on the edge of recession. Lets move faster. Couple yes or no. Do you think euro zone is going to slip into a bona fide recession . I think they will flatten out here. Its like a big burden on you. It doesnt mean you cant grow. You said something about stress tests in europe. These stress tests are giving Central Banks control over the private sector. They look at an area they dont like and make more stress on the meter. They say here is what you need to do. Right. Make less loans. Those are bad for your stress tests, but buy government bonds because those are good. Brian, an absolute pleasure. Well be watching those stress test results out over the weekend. How much is a world series win worth . The president and ceo of the San Francisco giants will join us live during the teams third world series run in five years. A simple question e 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. Its in this spirit that ingu u. S. Is becoming a new kind of company. Ing u. S. Is now voya. Changing the way you think of retirement. The ultimate arena for business. Hour after hour of diving deep, touching base, and putting ducks in rows. The only problem with Conference Calls eventually they have to end. Unless you have the comcast business voiceedge mobile app. It lets you switch seamlessly from your desk phone to your mobile with no interruptions. Ive never felt so alive. Get the future of phone and the phones are free. Comcast business. Built for business. Game three of the world series kicks off tonight. Tied at one game a piece the giants are back in San Francisco hoping to win their third title in just five years. Josh lipton is live in San Francisco today outside at t park with the giants president and ceo. Take it away. Thank you sarah. So larry, thank you for joining us. An exciting time obviously for the giants larry. As the ceo what are the main reasons that you see for this teams success. I think it is a lot like the culture of companies you cover. Its the culture. We have a culture where everybody works hard and works together. Led by our manager bruce bochy. And we spaer nothing in terms of scouting and finding a way to win. And the front office. They work really hard. 330 consecutive sellouts. So you have to create the culture just like other companies and other businesses. What is a financial wind fall mean for the giants in terms of ticket prices, in merchandise, tv rights. In the world series what it really means is when you are in the world series, not that year necessarily the financial. Because the revenue from television and tickets gets split up with the players and everything. But the next year it allows you to have a lift and with sponsorships and Ticket Pricing potentially and with the number of tickets sold so it gives you a halo effect into the next year and beyond. Lets talk about payroll a little bit. Because you look at the dodgers. They have a bigger payroll. So why do you think you are here and they are not. Its an art not a science. And there is not a direct correlation a direct linkage between dollars spent and wins. It the it is judgment and the functioning together of the team on the field. And that gets to clubhouse chemistry and cle we take seriously. And it doesnt always work but were going to be 80 or 90 Million Dollars below the dodgers and others. But its function of how well can you work together. Like in any business it is the Chemical Reaction you get when you put it all together and the passion and level of passion. And we have passionate people in this dugout. And the giants thought of as a forward thinking tech savvy team. What is the role of technology in this team and how you use that to get an edge. Technology is use in the business side and baseball side. Were in a lot of businesses. Content business. Were producing content to the world and were also in the business of the entertainment and wont to be in social media if a big way. On the field the players are all carrying ipads and working in various ways to get an edge. When a pitcher comes off the mound they can go and look at the last inning pitched. The batter can look at his last at bat in ways are that very precise. And some is propietary and we develop things ourselves to use to give players the edge. In terms of future potential Revenue Sources im interested larry, some think you could see ads on player uniforms. Is that a possibility . Im not so sure. I think where we are really going. We see ourself as a diversified media and entertainment business. And working on a Real Estate Development in the parliameking working on the representing other businesses and that east really where we see ourselves and i think other teams look at that. Were selling 3 and a half million tickets and you can use the database marketing with others to put on other events. We do about 150 non baseball events here. And that is important and keeps the ballpark moving and the revenues coming because we have to compete with people like the yankees. Bigger market. 18 million household there is. 7 to 8 here, growing. But we have to get into other business to stay with it. And weve done a lot of that. Thanks. Thank you josh. Coming up on the the program re codes wallet mossberg with join us with his review of apple pay. Were back after a quick break baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. And only national is ranked highest in car rental Customer Satisfaction by j. D. Power. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. Who would have thought masterthree cheese lasagna would go with chocolate cake and ceviche . The same guy who thought that small caps and bond funds would go with a merging markets. Its a masterpiece. Thanks. Clearly you are type e. You made it phil. Welcome home. Now whats our strategy with the fondue . Diversifying your portfolio . E trade gives you the tools and resources to get it right. Are you type e . 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