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45 names scheduled to report this week. Well, today with u. S. Markets closed, Global Investors are watching two Big International stories. One in europe, the other in asia. In europe germanys largest bank, Deutsche Bank, reporting an unexpected net loss of 1. 35 billion for the Fourth Quarter. The firm saying 2014 will be a year of challenges, but it does expect to reach its 2015 target. And over in asia, china, the worlds second largest economy, reporting Economic Growth of 7. 7 last year. Well be digging through those numbers, finding out what to expect this year. Thats in just a moment. And speaking of overseas, liz claman will be live in davos, switzerland, all week with a huge lineup of guests from the World Economic forum. On wednesday her guests will include pierre due point, imaxs ceo and ernie sorenson. And thursday liz will be talking to ciscos john chambers, renault nissans carlos [inaudible] cocacolas muhtar tent and citigroups michael corbett, and you dont want to miss any of those interviews, because you know theyre going to be great. And on this market holiday, we still have all of the business stories that you care about today and into tomorrow. Our own jo ling kent is here with the latest, peter barnes is in washington tracking the latest hints about our chick health and rich edson is covering wall street versus washington and the department of justices fight with some big name corporations this year. Jo, lets start with you. China posting its lowest gdp growth rate in six months, dragging the shanghai composite down today. Whats latest over there . Chinese gdp came in at 7. 7 , down from the 7. 8 growth in the third quarter, and thats according to chinas National Bureau of statistics. Full year growth clocked in at 7. 7 which beat the governments target just by a sliver. But whats happening beneath the surface is whats important to watch here. The stagnating growth is primarily due to a weaker investment in infrastructure, thats down 15 yearoveryear in the Fourth Quarter compared to 25 year on year in the third quarter. China is trying to address issues of industrial pollution and corruption which means theyre reducing spending in some key growth areas. Another area to watch, real dispose able incomes in urban areas, down to 7 last year from 9. 6 in 2012, and thats the lowest annual rate since the new millennium. This is an important number when it comes to china trying to to pivot to become that consumptionbased economy that analysts are talking about. Most importantly, theres the slowdown in credit growth. Liquidity still very much a concern this the new year, the average sevenday repo rate spiked to a one month high of 6. 6 on monday, up significantly from 5. 2 on friday. The peoples bank of china says it has provided emergency funding to support commercial banks. Now, taking a look at the market, this news basically brought the shanghai composite down. 7 and hong kongs hang seng was down about. 9 , sandra. Zahn zahn thank you, jo ling kentment here in the u. S kent. Economists think 2014 could be a breakout year for the economy, but retail numbers suggest it may not be at full strength yet. Peter barnes has the story. Reporter thats right, sandra. Many economists think the economy is poised to take off this year, but one analyst says they may be wrong because of weak earnings and warnings from some retailers. Two prominent consensus forecasts from Blue Chip Economic indicators and the National Association for business economics see gdp rising to 2. 8 this year from about 2 last year. And some economists expect growth could top 3 this year, maybe even more. But brian sew si of bell lues capitalled visors says week results from some retailer who is serve middle and lower income families like family dollar, express and American Eagle suggest many consumers are still watching their pennies. All indications are that walmart will warn. Thats not necessarily just because amazon is taking massive market share, its because the core walmart customer earning 30,000 a year, theyre also the dollar store customer, and theyre just not making as many trips to walmart as possible. Reporter Consumer Spending makes up twothirds of the economy which is why were paying attention to all of this, of course. The Commerce Department said that retail sales excluding autos rose to a seasonal hiadjusted seasonallyadjusted 350 billion in december, but he thinks the numbers are being skewed by wealthier customers purchasing more expensive goods. Sandra . Sandra peter barnes, thank you so much. After imposing a Record Number of fines against corporations last year, the department of justice is putting new pressure on businesses again in 2014. So who is it targeting this year . Rich edson has the details. Rich . Reporter thanks. Among others, jpmorgan has already agreed to a 13 billion fine right after the 2013 fiscal year ended, and before it did, the department of justice had collected 8 billion this fines. In just antitrust penalties, the government collected more than a billion dollars last year, that was for the or second straight year, and the third time in five years. A former senior justice official says he expects the government to continue focusing on financial crimes. Weve seen the rise or really role of antitrust in this area over the course of the last year. You know, the libor cases that came out in the u. S. And europe, you have the cds investigations which have been out there for a while, the new Foreign Exchange cases that are out there. So i think youre going to see more antitrust cases in the Financial Services sector. Fines are increasing globally where the u. S. Collected a billion dollars in antitrust fines, the European Union hit businesses with 2. 5 billion, and analysts say thats on top of increasing fines in china, japan and south korea. Different governments are also fining the same companies for the same crime, like the ongoing libor investigation where american and british authorities are collecting more than a billion dollars in fines. Back to you. Sandra all right, thank you so much. Well, the closing bell is ringing this about 52 and a half minutes. Intel, the blue chip chip maker, will be handing out pink slips to over 5,000 employees very soon, but what do the cuts say about the companys overall strategy for 2014, and intel ever really recover its near monopoly status . And your favorite new york airport is finally getting a makeover. What kind of improvements are you see at laguardia . We have all the details for you next. My dad hastror afib. Illation he h the most common kind. Its not caused by a heart valve problem. Dad, it says your afib puts you at 5 times greater ri of a stroke. Thats why i take my warfarin every day. But it looks like maybe we should ask your doctor about pradaxa. In a clinical trial, pradaxa® Dabigatran Etexilate mesylate . Was proven superior to warfarin at reducing the risk of stroke. And unlike warfarin, wh no regular blood tests or dietary restrictions. Hey thanks for calling my doctor. Sure. Pradaxa is not for people with artificial hearvalves. Dont stop taking pradaxa without talking to your doctor. Stopping increases your risk of stroke. Ask your doctor if you need to stop pradaxa stopping increases before surgery or a dical or dental procedure. Pradaxa can cause serious, sometimes fatal, bleedg. Dont ke pradaxa iyou have abnormal bleeding or have had a heart valve replaced. Seek immediate medical care for unexpected sig of bleeding, like unusual bruising. Pradaxa may increase your bleeding risk if youre 75 or older, have a bleeding condition or stomach ulcer, take aspirin, nsaids, or blood thinners. Or if you have kidney problems, especially if you take certain medicines. Tell your doctors about all medicines you take. Pradaxa side effects include indigestion, stach pain, upset, or burning. If you or someone you love has afib not caused by a heart valve problem. Ask your doctor about reducing the risk of stroke with pradaxa. Over the pizza place on Chestnut Street the modest first floor bedroom in tallinn, estonia and the southbound bus barreli down i95. This magic moment it is the story of where every great idea begins. And of those who believed they had thpower to do more. Dell is honored to be part of some of the worlds great stories. That began much the same way ours did in a little dorm room 2713. This magic moment this magic moment sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you u to reach Global Markets and drive forward with broader possilities. Cme group how the world advances. If your denture moves, it can irritate your gums. Try fixodent plus gum care. It helps stop denture movement and prevents gum irritation. Fixodent. And forget it. Sandra youre traveling experience in and out of new york city hopefully will look a little wrighter soon. New yorks Governor Andrew Cuomo is taking over the renovation project of the dark and dingy laguardia airport. If youve been there, you know what were talking about. It will modernize manhattans closest airport. Laguardias Central Terminal was originally built to accommodate eight million travelers a year but currently serves 12. 5 million. Governor cuomo hopes the terminal will eventually handle up to 17. 5 million a year. Us airways and delta take up the main travel, this 2012 it was named the nations worst airport. Guess theyre hoping thatll change. Well, with the s p and dow closing last week, relatively unchanged, is ow the time for investors to take a look at equities overseas . Our next guest who manages over 63 billion believes there may be new opportunities to make big bucks outside the United States. Joining us now is Danny Montgomery scott, chief investment strategist. Thanks so much for joining us ahead f a short week. Thanks, sandra. Sandra so what are we looking at here . The stock market was pretty much flat on friday as we head into this week, but yet you have big ideas of whats to come this 2014. In 2014. Well, we host a rather sanguine view. We think the u. S. Is poised to accelerate, and its occurring at a time thats contemporaneous to other economies like europe, like japan, and i think china will again stabilize with something north of a 7 growth rate. So you have this synchronized Global Expansion that i think is Fertile Ground for risk assets. Yes, we hold a rather optimistic view as to how equity prices are going to perform in 2014. Sandra so, mark, one might easily challenge you on that when we only saw 74,000 jobs added in the latest month. That doesnt look so well for the United States. As a single data point, sandra, it certainly doesnt. That was most unpleasant. But the fact of the matter is i think a lot of that can be attributed to weatherrelated conditions. Ive seen estimates that take that to 160, 170 ex weather which is about on par with the 170,000 the u. S. Economy has been producing on average over the last six months, so i expect that pattern to resume in the coming months. Sandra okay. So you paint a pretty rosy picture for the u. S. Where do you see our stock markets going, the s p 500, for example . Well, we thought we would see upper singledigit returns, 79 . Within the u. S. Equity market, we prefer more cyclical sectors, more economicallyexposed to benefit from an uptick in industrials and technology companies. But actually we think a more rewarding experience for investors are going to come from overseas markets where valuations are even more attractive, and the story there is just brightening. And thats particularly in europe. Sandra so we just showed your target for the s ps 1931 for end of 2014, thats about a 5 gain from where we settled on friday. Youre calling for a decent rally. Were not talking about, you know, not talking about last years 30 rally here, to be sure. So you talk about growth in europe, youre optimistic about europe. Weve seep a very stale seen a very stale, stagnant growth. How would you get investors excited about europe . Where do you see opportunities . Well, really throughout the euro area. Certainly germany and france, particularly now that Francois Hollande is talking about providing more accommodative tax structure in france s so thats an easy experience, i think, for investors to look for, kind of counterparts the u. S. Equivalent like a seemans versus a ge. But for more speculative investors, actually where we think an even greater appreciation experience might be found is in the peripheral countries, the italys, the spains, even the portugal cans ott world that are starting to turn around and actually coming back in the case of, you know, portugal and certainly weve already seen it in ireland, coming back to the debt markets after just a couple of years ago having gone through a bailout. And so we think thats where we think we can find better opportunities, because valuations are cheaper than in the u. S. , and the growth is just starting to come online. Sandra so i want to point to a couple of stocks the last time you were on this program, november 3 19th, and you had a 11th, and you had a couple winnerrings. Hp and tal international. Hp up 9 , tal didnt do so well, down 13 . Id be curious where yd tell viewers to, what you would tell them to do with their money now with these two companies. Well, certainly hold both or if you havent, buy both. And because we think both are well positioned. One is an Oil Services Company thats really in the exploration and production business. State of the art equipment, pays about a 3 dividend yield. Still through this is upside think theres upside there. Energy in the u. S. Is an important theme for us, and tal inc. And a leasing company, so for income investors who are looking for something to supplement their investments, thats a nice place we think theyll hold value and, basically, provide financing to shippers and container companies. And theres a consequence on the back of global trade. We think fal will tal will perform better. Sandra now, youve got some new stock picks for us today specifically in the financial sector. And as we have seen so far, big bank names have been outperforming. Citigroup an exception. You happen to like citigroup. Explain why. Yeah. Citigroup didnt get quite the same benefits of its earnings announcements as some of the other banks have reported so far, but why we like citigroup is its among the cheapest, still selling at a discount to tangible book value. We think the story there is a turnaround one that is going to take some time to develop, but in the meantime, it also has the largest emerging market footprint of u. S. Based Money Center Banks and, obviously, with per capita incomes rising, we think that bodes well for their international franchise. So as a consequence, thats our way to play not only the recovery domestically, but globally. Sandra were going to be wrapping up soon. What keeps you up at night . What could derail this current rally . Or i should reference the rally of 201 3. Were flat so far this year. What could send stock markets into a tail spin . Well, perhaps Something Like we saw this that labor report that showed weak, that is jobs news. Wasnt necessarily an aberration but, in fact, was indicative of a slowdown. We dont find the evidence to suggest thats true, but with valuation this is the u. S. Equity markets certainly fully valued, its right for a pullback. Could be international events. For instance, obviously, tensions heating up between japan and china could lead to a mistake of some sort which could be problematic at least on a nearterm basis for geopolitical risks. So theres a couple of conditions out there that were watch, but as part of our part of our base case, we dont think that derails the cyclical bull market. Sandra all right, mark, thanks for joining us. Thanks, sandra. Sandra it is that time of year again, Girl Scout Cookies. 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And, you know, this is the end of the year, and this is when people are counting on their bonuses, and sometimes the Fourth Quarter is an indication where youre going. Citigroup has cut compensation levels about a billion dollars from the previous year, so here is what we know. Bonuses are going down at citi, bow thuses for mortgage traders, they get hit hardest, Something Like 15 percent, but everybody is expected to be down. Citigroup put out some statements to reporters a couple weeks ago that the bonuses are going to be flat this year. I can tell you based on every indication were getting here at fox business that the nation, i believe, theyre the Third Largest bank right thousand, that the bonuses there will be down and in some cases, particularly among traders, particularly among traders who fared the worst in the Fourth Quarter which is in the mortgage division, that those bonuses are going to be down Something Like 15 . But, again, its pretty disappointing on the trading side, and its going to lead to a reduction this bonuses across the board. When you take a billion dollars out of compensation, we should point out thats the way mike corbett, the citigroup ceo, seems to be managing that place. Not exactly going after business but literally scaling down the size of citi in what hes doing, and the biggest scaledown so occurring from what i see at least in compensation, and thats going to hurt bonuses. Sandra so michael corbett, he issued a statement in the earnings release, charlie, saying we didnt finish the quarter as strong as we would have liked. Mike mayors already come out and said this is the worst quarter for citigroup under michael corbett. To be fair, profits at citi more than doubled for the quarter, but they missed analyst expectations, and thats why wall streets souring on them. Yeah, but i mean, profits are supposed to go up quarter by quarter anyway. Its not like theyre supposed to be going down. Wall street is not losing money now, we have a very low Interest Rate environment. This is a time and place where banks should shine. I should point out that despite all the stuff thats gone on at jpmorgan, jpmorgan still earned 18 billion last year. Theyre not the most profit bl bank because of all the stuff thats going on. That designation is going to wells fargo. But they could easily regain that next year if they stay out of trouble. This is an environment where banks generally make a lot of money. Citigroup did not, and its going to hit its earnings. And, you know, citigroups a big employer in this city, in new york around the world i should point out as well, but particularly in new york. You know, all the indications are that this is a company thats not just ratcheting back compensation levels, but its going to squeeze its work force too. So thats just another one of downsides of whats going on sandra and perhaps thats what hurts the worst, its not like this is a financial world problem, this is a bank problem, this is a citigroup problem because it largely underperformed its peers. Well, all the banks are thousand cutting back. Goldman sachs is limiting the number of people in their partnership pool. Jpmorgan is, you know, around the edges you see some cutbacks. I mean, all thebacks are worried about compensation and cutting. Its just that citigroup appears to be getting hit even more. At least thaas our indication. And it flies in the face of some of their statements they made to reporters. They were basically telling people how everythings going to be flat. Not much of a change from last year. I can tell you when you take a billion dollars out of compensation which is what they ratcheted down from 2012 to 2013, people get paid 2013 bonuses right around now, early the following year, and this is 2014. You take a billion dollars out, thats going to hurt. Sandra all right are, charlie, thank you so much for that. And also michael corbett, the citigroup ceo, liz clayman will have him claman will have him on from davos. So that will, obviously, be a key interview. We know liz will ask him the tough questions about the quarter. If you havent been asked yet, you will be soon to buy cookies from your coworkers daughter. Officially lawning on saturday, the nonprofit will sell upwards of 200 million boxes of cookies this year, and if youve ever wondered where the little delights come from, they are not getting help from big food giants. Theyre made by just two licensed bakers in the u. S. , abc smart cookies and little brownie bakers. And despite being around since 1917, quill scout Girl Scout Cookies reflect the changing times. This year they include the first glutenfree violaterty. The sales season ends on march 8th. I think its the samoss i like. Intel is looking to reinvent itself, but can the ceo make up for lost time, and how can investors see whether his gamble is actually paying off . We go inside intel, thats in just a moment. And the u. S. Economy could be set for its strongest growth in 2014 in years. Coming up, well find out why this wont necessarily lead to higher oil prices. And what you, the investor, needs to know about the rapidlychanging Energy Market this year. [ male announcer ] meet mary. She loves to shop online with her debit card. And so does bill, an identity thief who stole marys identity, took over her bank accounts, and stole her haearned money. Unfortunately, millions of americans just like you learn all it may take is a little misplaced information to wreak havoc on your life. This is Identity Theft. And no one helps stop it better than lifelock. Lifelock offers the most comprehensive Identity Theft protection available. 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Use promo code notme. Order now and get this document shredder to keep sensitive documents out of the wrong hands. A 29 value free. Dont wait until you become the next victim. Sandra things are heating up in the oil market, oil futures under pressure following news that iran is beginning to implement the terms of a Nuclear Agreement with world powers, a move that could lead to a lifting of trading sanctions against iran. This, of course, will fuel the Global Oil Supply putting pressure on crude oil prices. All this is good news for the global economy, Oil Producers could start feeling the heat. So what is the best way to play this volatile oil market anyway . Joining me now is andy, thanks for joining us. Good to be here, sandra. Sandra what are we looking at here . It seems like every day whether oils up, everybody pins it on a growing global population, were going to need her energy. And when its down, everybody says, well, look at u. S. Production, its a multidecade high right now, and prices go down. So what really is the biggest trend in the oil market right now . Well, the biggest trend is actually both of those factors clearly in the, our Oil Production today is at the highest levels since september of 1938. Just over 1988. Just over eight Million Barrels a day, and by the end of this year, i expect it to be just shy of nine Million Barrels a day. On the other hand, the rest of the world is concerned about supply shortages or outages that we see in libya, nigeria, sudan and even iraq due to the violence. So those are the two competing forces that are out in the market. Sandra so we just had a full screen proi canting 9. 6 Million Barrels a day by end of the year per day produced in the United States. I have to ask you the big question everybodys asking the oil market right now, are we going to become exporters of oil in the United States . Is this something that lies in our future . Well, this is clearly a very big debate, and whether we export crude oil or not, its how we divide up the pie between the producers and the refiners. Of course, the refinders are benefiting by the lack of crude oil exports keeping as you hear wti prices depressed compared to brent. Meanwhile, the producers would love to access the rest of the world and see themselves getting more money for their oil. Sandra so geopolitical risks, if were talking about irans supply, libyas supply, there was this concern that we were going to have a short in the Global Market because of these two countries and their production. Are we ruling that out now . Well, im not ruling it out, but the fact is that its favorable to see progress being made on the Iranian Nuclear front because as the sanctions get eased, we are going to see her iranian oil hit the market. In libya its really very difficult to say because you do have a split between the east and western parts of the country. A lot of violence, security fears, and its all about jobs and money. So that is a concern in the market. Sandra all right, ann andy, were showing the price of brent, still above 100 a barrel. Heres light sweet crude. We use this as our u. S. Benchmark, its around 94 a barrel. What kind of price action are we talking about here . If the bullish Case Scenario works out, are we going back above a hundred . Well, certainly if we have significant violence in the middle east, it could go from 105 to 110. If things remain in the status quo and we keep getting increases in production in north america, i expect oil prices could touch 90, maybe even go to 88, and that could happen this march as refiners undergo maintenance here in the u. S. And decrease their demand for oil. Sandra its just so weird that in your bearish Case Scenario, youre talking about oil going to 90 or 88. I mean, those are still historically very high oil prices. That being said, everyone wonders how this translates to gas at the pump. Where are we going from here . We saw a big slide in gas prices last week. Cold temperatures having an impact on demand. Where are we going, gas prices . Well,today theyre around 3. 30 a gallon, and the bad news for the consumer is other the next couple of months as we go into the summer driving season, prices are liable to increase 1520 cents a gallon, up to about 3. 50 a gallon. I do not see 4 a gallon in the cards at all in 2014. In fact, its possible that by the end of the year we see prices go down to about 3. 10 a gallon. The one thing ill point out this year a number of states have been increasing their state fuel taxes, and the consumer is paying more just for that. Or. Sandra there you go. Were showing arbob gasoline that trade on the nymex, and theyre about 2. 63 a gallon, down significantly. How do we play in this in the ol market, andy . Do you have any specific picks based on your estimates for oil and gasoline . Sure. Well, if the investor wants to play the futures market without buying the futures, theres whats known as the uso oil fund which is an etf to mirror the futures prices. Be you really like the producers, and i focus a lot on those who have gotten exposure in the u. S. , Companies Like anadarko, noble, occidental, they have a significant amount of production many texas and in texas and colorado. Theyll benefit from higher oil prices. Sandra all right, there you have it. The ticker, obviously, uuo, is the big oil fund your recommending. Andy, thanks for joining us. Thanks for having me, sandra. Sandra all right. Well, intel is in the fight of its life. The chipmaking giant is making hefty job cuts this year, the Company Announcing on friday it plans to chop about 5 of its work force. That amounts to about 5400 workers for the global company. So where will the cuts come from, what does this tell us about the companys overall strategy . Barrons columnist tier man ray joins me now. My pleasure. Sandra full disclosure, at the break i said youve got to be sexy because its a chip maker. Intel, its in the fight of its life. Whats going on here. Intel has controlled the personal computer for 30 some years. They were given that monopoly by ibm when the whole pc era started, they along with microsoft. You use their chips every day, but intels not in smartphones, not in tablets, not in the ipad sandra but they want to be. The question is, can they transition from having a monopoly, 90 of the chips that powered these pcs for 30 some years into being a supplier that is one among many . Sandra how are they going to expand if theyre chopping their global work force . They are spreading this about in different parts of the company, and what they say we have lots of different divisions that do different things. Well sort of take here and there selectively the people we dont need as much was were putting less emphasis on the pc, and we will staff up in other areas such as mobile chips. Sandra something i found fascinating is you believe the way intel reports its earnings doesnt exactly benefit the company. Right now they break up the mobile chips from the pc chip sales. Right. Sandra do you see them changing that . Is that something investors are urging . I think intel is very wedded to presenting this multiyear history of their pc chips in this separate division saying look at our pc chips. Weve maintained prices, stable or rising, and weve brought down costs, and weve maintained gross margin. But they keep all the mobile chips off to the side in another division, and the problem is those mobile chips, they dont get the same kinds of high prices. So they really need to mix them together so they can show investors over time, assuming that they succeed and theyre in tablets, how much theyre going to be making. So the chief executive officer, brian kerr zahnish you got it. Sandra always have a tough time with that one. He was very dismissive of expanding the chips into the tab heads and the phones. He has been for a long time. He took over last year from a guy named paul otellini, and paul had been saying, well, people like tablets, but its a little bit so he turned this around last year, and he said, okay . Were going to stop saying tablets are a fad, we need to be in this market. The Company Still reported clash 13. 8 billion in profit, that was their revenue number, up 3 from a year ago. It was better than forecast. The stock still took a hit last week as a result of this. Wall street still disappointed, theyre still lookiig for more, right . Well, its kind of something is always there each quarter with intel. This time server ccips didnt do as well. You told us theyd be up by this much in 2014, latest quarter doesnt look like its going to happen. Sandra so your opinion and your opinion only, intel in the fight of its life, these are your words yep. Sandra how does it come out of it. I think intel does okay, and i think relative to expectations for the stock, investors will be happy with that. Sandra and over the past year it hasnt done so bad. Us. Well, can the lost boys help nbc find its way back to gold . The details are next on that. And our own peter barnes says tough retail sales may indicate economic troubles, but there are still ways you can play your Favorite Retail companies. Well be talking about that in just a moment. Sandra nbc hopes a little pixie dust will bring the media giant more viewing magic this year. It attracted more than 18. 5 Million Viewers for its live production of the sound of music live in december. Now the network has chosen peter pan as its next rival music call Television Event in 2014 to recreate the ratings success. Nbc is bringing back the sound of music event producers, and while Little Information about casting has leaked yet, the exthe ty producer has already suggested the lead role of peter, traditionally as we known played by a woman, will likely go to a male actor. The musical is set to air december 4th. Second go around for peter as the lost boys, and the lost boys in a Live Television broadcast. For those of you who missed it, nbc aired peter pan as its first live music call back in 1995. That show pulled in 65 Million Viewers. It was the highest viewing for a Single Program that year. Comcast, Parent Company of nbc universal, shares so far not a bad year at 53. 54 a share. Well, now turning to retail, is the shopping spree over after a strong 2013 . So far the Retail Sector is down 5 in 2014, so are there any names investors should be looking at in the new year . Joining me is hp Retail Advisory founder. Thank you for joining me. Im that longing everybody thanking everybody because it is a day off for many. A couple names you like, i want to start out with macys because i think this is maybe an unlikely candidate to look at as a top pick for 2014. Why do you like may is sis . Right. Well, they made that announcement just a couple weeks ago, maybe a week ago or so, where they had fired 2500 people. Sandra right. And they were shutting could be a couple score down a Couple Stores because they wanted to save 100 million. Whenever you get rid of jobs and close down stores, thats never a good announcement. But what theyre going to do with that Capital Expenditure is spend that on online sales. So from what we know and what we saw over the holiday, most of the holiday sales were happening online. So this was a good trajectory. Sandra some of these fascinating numbers that you provided from paypal, 14. 4 of all online sales took place on tablets. 7. 2 of them on smartphones. So people are not just in the stores, theyre not sitting at home, but theyre walking around, hits send on their tablets and purchasing exactly. And thats exactly what theyre forward thinking on this. I think they should have got on the bandwagon many years ago, but now that they are, theyre taking preventive measures to go ahead and take that money that they may have lost at these failing stores and put it to something they know is going to work. Sandra lets focus on target because, obviously, target, everybody looks at this as a, you know, in tough times people are going to shop at the targets sort of at the higher end of those discount retailers. Why do you like tgt . Well, i like target exactly what you said, even with this snafu that happened sandra to put it gentle. Are right. Even with that i think what is going to happen is that the company and the stock is going to stabilize a little bit. Theyre going to report earnings, and i think people are going to return back to target. Lets be honest, people have this brand loyalty. I think it wavered for a little bit, but i think what the ceo went on record saying is that this is the only time this is going to happen. This isnt a reoccurring incident. Theyre not even going to mention it during the earnings. Sandra well, theyve already warned this is going to take a significant chunk out of their Fourth Quarter because this happened in the week leading up to christmas, so theyre acknowledging this had a large impact on sales. Right. But what theyre saying, its not going to be reoccurring. I think its going to stabilize the stock a little bit more. The stock is trading around 15 times, i think its going to go to around 17 times and go to 72. Sandra all right, so targets another one. Amazon, which this is a very timely company to talk about because the company basically announcing theyve patented the ability to sameday ship based on previous buying habits. I guess thats the best way that i can put it. Theyre basically saying they have the ability to sameday ship something to you if its something that you or people many your area purchase a lot of. Right, exactly. I was also looking at a study done by mint. Com, a company that aggregates about two million of their users to see who was shopping where during black pretty into holiday. Amazon was the first retailer that people were going to. So it gives you an idea of the volume of people that are going right, amazon evenct. Before they reported out sales for the holiday, sales were up 23 . This is a place, they really are trying to be the retailer for all. Not just to buy books anymore, but for groceries. Theyre trying to obtain that market share away from walmart or and target. And theyre doing a pretty good job. Sandra of course, the thing i love about the retailers is every time we report on retail sales data that comes out, weather always plays as much a large such a large part. And i feel like the retailers always have an excuse when they underperform. Do they truly have weather as an excuse in the Fourth Quarter . We did get some snowy, cold weather. We did. And i think that if you look at it per area, you might see a little bit of a falter. Overall, you know, they always say that they try to blame weather to kind of prevent them from seeing some of those negative numbers. You know, they try to, basically, whats the word im trying to think of the term, when people go ahead and, basically, trying to save themselves before bad news comes out . I think retailers are doing the same thing. But as weve seen in the past, weve had snowstorms before, weve seen retailers do the exact same thing, blaming weather, and it really hadnt been that bad. So i think in some ways theyre trying to prepare investors and the shoppers for bad news but really its not going to be that bad. Sandra everybody looked at their 4014ks and saw 2030 gains if they were heavily invested in stocks last year. People kind of going into 2014 feeling pretty good. Does that mean we can start to see the higher end retailers outperforming discounters like walmart . I think thats absolutely right. The economys really bifurcated. Were really going to see that the wealthier are feeling even more wealthy, and the people on the lower end are maybe not feeling as wealthy. So what youre going to see is the discount retailers, even the Dollar Stores doing a little bit better. I know some analysts saying theyre not going to do that well, but were really going to see kind of a bump there. And also the higher end retailers. Ralph lauren, they are killing it on the market right thousand, and were just going to see her of those great numbers. Sandra and, you know, time will tell, but weve still got macys eliminating jobs, still some negative news out there that could cloud the overall industry. We like your picks, we like that you brought them to us, i should say. Macys, amazon, target. Thats a big takeaway there. Thanks so much for joining us. Thanks for having me. Sandra well, Anheuserbusch Inbev has agreed to buy back a south korean brewery for 2. 1 billion at a time of strong Industry Growth across the region. The sale by kkr and company and actinty Equity Partners will be asias biggest ever so far for private equity including floatations. The deal gives those firms returns of more than five times their original investment. They bought oriental from ab inbev after it was forced to divest assets after its 52 billion purchase of anheuserbusch. Keep it here for the next hour, weve got the firstever ibm Retail Technology demo on tv. Ibms jeopardy winning watson giving personalized advice on products, and he helps you shop, you guys. David welcome to after the bell, im david asman with sandra smith who is on her way to switzerland for the davos show. The markets may be closed but fox business is open of the we have a jampacked show. First lets get to the front page headlines. General electric is acquiring a Specialty Oil and gas equipmentmaker from hhustonbased cameron for 550 million. That business generated sales of approximately 355 million in 2012 of it has approximately nine hundred employees. Sandra reuters reporting Ge Capital Aviation Services may be close to ordering 40 boeing medium haul jets. They could include 737 max and. In a deal worth over 4 billion. David possible sale of low end server business. Wall street journal saying dell is one of the parties looking at a possible purchase for the company. Sandra Deutsche Bank shares tumbling in european trading following a surprising Fourth Quarter loss for

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