That. President obama condemned the armys crackdown, canceled the bilateral u. S. Egyptian military exercise. Cheryl and Berkshire Hathaway has reported buying new stakes in dish network and sun corp. Energy. David shares of kohls got a boost today after reporting a rise in same store sales following down beat reports from walmart and macys. Cheryl and confidence among u. S. Home builders at its highest levels in nearly eight years, thats according to wells fargo can Builder Sentiment index. David the wall the wall stree reporting that the department of energy was attacked by computer hackers last month who gained personal information on thousands of current and former employees. We have earnings coming up, dell in just a moment. After the bell starts right now. Cheryl and lets get to todays action and whats behind the selloff. Weve god edward pavin, chief investment officer, and Mark Sebastian in the pits of the cme. Mark, lets start with you. You know, so much of what weve seen today has been concern that we are going to lose the punch, if you are, and that ben bernanke is going to pull back. Are you buying into that storyline today . Well, it doesnt really matter if im buying in, the tenyear note certainly is. Those yields are getting pretty high, and its the dog thats wagging every other Financial Markets tail. Its driving everything. Now, that said, something really interesting i noticed that was happening, despite this massive selloff we saw very little reaction in the volatility index, the vixx. With the market off, you know, one and a half, over one and a half percent, the vixx is hardly moving. Coming from kind of this 12, 13 level. On a big selloff today with a huge move in the tenyear note, i would have expected the vixx to be up two, three points. Instead its up one and a half. What i think that points to is traders that wering with had buying were had buying vixx calls. They were actually moving their hedges down, thus, they were taking off hedges that were working and rolling them down the better points so they could actually get more long exposure. I dont think theres a ton of legs to this market. I think were going to be nervous until we get fmoc minutes next wednesday. I think those minutes will probably point toward this taper talk maybe being a little overdone. Not saying its not eventually going to happen, but i dont think it happens in september. David one thing that the market was watching very closely today was the move of soros. He bet about one and a quarter billion dollars against the s p rising anymore. Does that you have to factor in a trade like that somewhere, dont you . Well, first and foremost, dave and cheryl, thank you for having me on. David thank you. Its a consideration, you know . If you think about the move that weve had year to date in the s p, its been quite impressive being up almost, you know, 18 for the year. And if you think about the two drivers, a lot of its been multiple expansion, and we feel attaches Investment Council thats going to be david hey, a second, we do have cel earnings coming in dells the most important. Jo lean kept, whats the number . We have 25 cents which is a beat on eps, and we also have revenue coming in at 14. 5 billion which is also a beat of the 14. 18 that analysts were estimating. Of course, these reports were scheduled for next week, dell put them out earlier, the second time this year theyve done that. Were going to take a closer look and get back to you. David this is very interesting because this is one of those few times where management was actually hoping for bad numbers, and as you can see, after hours even though they beat on both the bottom and the top line, the numbers actually down. The reason, of course, is because they put forth this bid of 13. 75 per share, icahn, carl icahn, who owns a big stake in the company be, wants to up that share, and, Mark Sebastian, the point is if the number was bad, it might have been better for the shares because it would have made carl icahns point. Yeah, you know, its really interesting when bad news is good news and vice versa. I think this just goes perfectly with this big soap opera weve been dealing with between billionaires squabbling over billions of dollars. So, yeah, you know, i think this points toward maybe that dell deal breaking up and, you know, i kind of you know, this dell process could be a lot longer. And the whole rebirth of the company may have to take place in the public eye. Cheryl theyre doing it again, theyre bringing up the earnings earlier than expected. You can read into that or you cant, whatever you want to say here, but also not giving any guidance because of the deal talks, again, trying to take the company private, michael dell certainly trying to do that now, but not giving any guidance. Doesnt that hurt someone that is Holding Shares of dell, whether or not they want to buy or sell . Forget the talks, no guidance whatsoever, mark. Well, yeah. Its nice to have guidance. You know, unless youre in a kind of a Merger Arbitrage business, i dont see a lot of reasons for an average retail trader to be in bell in the first place. In dell in the first place. There are hundreds of better opportunities in the stock market than a crazy deal between dell right now. So, you know, i dont see a lot of point to being involved in this david and ed world, you dont like tech in general. Its not just dell, youre sort of crossing off the whole tech sector, are you not . Yeah, dave, were actually quite underweight the sector, and part of premise there is that the earnings momentum is just not there. The price momentum and the individual stocks, excuse me, is not this. And and you take a look at some of the recent companies that reported whether its oracle or ibm or either cisco, microsoft, across the board theyve been disappointing. Dell may be a silver line, and who knows what the underlying motives are for putting up a good print. But the sector overall for us is just not very attractive. Cheryl we want to bring in joling kent from our newsroom, youre looking at these numbers, going through the report. What else are you seeing in the report . Nordstrom, just to bring you breaking news, theyre reporting a beat on eps, 93 cents, beating 88 cents which was what the street had estimated. Revenue coming in at 3. 1 billion which is a diss on the 3. 29 billion. Theyre reporting that sales were moderately better than earlier in the year but certainly softer than expected. Their total sales for 2013 theyre predicting would be up 34 . Theyre also saying for their samestore sales, those would be up 23 for all of 2013. So giving a little bit of an outlook there. David all right, but losing a lot of rice in the action after hours right now, we can see at the end of the day at 59. 33, its now trading about 57. Mark sebastian, when you put in light of what happened to walmart today, what do you think about Consumer Spending . Well, that doesnt sound great, right . The lowend consumer isnt spending, and the highend consumer isnt spending. That paints a real rosy picture granted, its just two big retailers, the consumers definitely becoming more fragmented between all these individual retail stores, but if youre going to pull these two aside, kind of two, you know, standard bearers of thnd and the high end certainly doesnt look good for the consumer. And, you know, makes me wonder whether were worrying too much about tapering in september. Cheryl you know, also, mark, as we look for the markets today overall and you look at what we had, you know, not just nordstrom, but all the other retail, we had walmart a big drag on the dow today and the cisco story, that as a group, you know, thats done nothing but jump higher in this year. Youve got to wonder what this says about the overall economy and whether or not really the consumer is not going to take us until the end of the year, and were going to get more days like today. You know, i dont know. You know, i think we need to see some of some tech spending, we need to see corporations starting to spend some of that cash. The consumers cant carry this market, especially with job growth being in waitressing and waitering and not in, you know, technical engineering and all the things that are actually highpaying jobs and this growth in the parttime positions. So i think the consumer has a lot weighing on them, companies have a lot weighing on them. We need a lot of clarity, and between the fed and the kind of the administration, stuff coming out of washington. You know, where is clarity . Thats not there. If we get clarity, the economy will adjust, and thats really the problem. David but, edward, is the problem went you look at what happened today, the big news from the fed next week, but if theres such a downdraft on a week before were getting news from the fed, what does that mean for the market, is this the beginning of the selloff that has been foretold . I think were going to be stuck in a trading range for the rest of this year. Back in june when i was on your show i talked about a range of 1750 to 1550 on the s p, and i think we still have about 7 downside from here which would be very, very constructive, it would be healthy, it would be back to the rising 200day moving average and revisit the june lows of this year, and i think thats, you know, perfectly acceptable. Right now we do have to kind of navigate through this tapering issue. I think the price fixing that weve seen in the bond market for quite some time needs to come to an end. And, you know, what were watching very importantly is something that came out recently, the fact that some of our two large creditors of foreign holders were actually selling treasuries in june to the tune of about 242 billion. So that helps exlain why yields are staying as high as they are in light of the fact that the fed is still purchasing about 85 billion a month. From a consumer perspective, youve got the headwinds of potentially higher rates as well as crude which is up about 15 on a yearoveryear basis. Cheryl edward, mark, thank you for your perspective. David by the way, were getting new clues in whats at stake in the showdown over dell whose numbers we just had forecast. Between the pc makers founder, michael dell, and billionaire carl icahn. It was a positive report, they beat on the top and the bottom line, but that actually may be bad for this man, michael dell. Cheryl plus, is new york city headed the same way as detroit . Were going to dig into the rising concerns over the big apples fiscal health. David we want to hear from you as well about todays action, do you believe todays market slide will cause the fed to delay its tapering . Theyre so concerned about Market Action these days. Is that whats driving the fed . Your answers, log on to facebook. Com afterthebell, let us know what you think. 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The most highly recommended bed in america. Now each of you n rsonalize your comfort at the touch of a button with our new tempurchoice. So both of you can get your best nights sleep together. Cheryl lets head back to nicole on the floor of the new york Stock Exchange. Nicole, more on dell. Released earnings just a few moments ago. Headline, in your opinion, nicole. Reporter i think, obviously, this is something well continue to follow, so lets just start off with the numbers that were seeing. I think right now were starting to see the bidask improve some. The first headline was that the stock was not reacting at first, though it is improving now. Earnings per share peating the estimates by a penny beating the estimates by a penny, that was better. Also revenue came in for the laters quarter, 14. 5 billion which exceeded analyst estimates of 14. 18 billion. That, obviously, is good news for the shareholders when you start to see the beat. However, what does this mean for michael dell v. Carl icahn . Another piece of news is the notebook sales fell 10 . However, dell noted, and they definitely want to put a good spin on this one, they were the only vendor among the top five to increase pc unit shipments over the yearoveryear and sequentially in the past two calendar quarters according to ibc. Thats good news there for dell. As we noted, were going to hear more from the shareholders on september 12th. This is a key, key story, the stock is nowhere near where it was back in 2007, but obviously, michael dells baby, and he wants to hold on to it and carl icahn, not necessarily so. Cheryl yeah, trying to take it private. Nicole, appreciate it. Well, for a deeper dive inside those dell numbers david lets bring in an analyst, jeff, bottom line here is another report and this was not that, this was a beat on the top and bottom line, but a poor report could have helped michael dell and the company persuade more shareholders to sell now rather than risk it later. So was a good report actually bad news for michael dell here . Well, thats a fair question, and i think when you look at these fundamentals, its really looking at dell operating as if it was a private company for the second sequential quarter, right . The Gross Margins and operating margins are operating at very suppressed levels, but revenue was flat yearoveryear, and they bet on the beat on the bottom lines. If fundamentals came in slightly better than weak expectations. Cheryl one of the things nicole was looking at as far as headlines standing out to her was the fact that pc shipments actually improved overseas, i think thats interesting, but yet notebook sales were down 10 . Hard to see sales decline in a completely Wireless Environment were in and then to have pc sales go up overseas, what do you make of that . We expected notebooks to be down. What dell has been using, though, is aggressive pricing initiatives, and their playing a little bit of defense here. And that is, actually, it got them better revenues overall on the pc side. Now, shipments increased because of those pricing concessions that theyre giving. David well, at least to a larger issue than just the fight between michael dell and carl icahn, the real story is can a pc maker survive in this environment . Now, i just bought myself one of those mac airs, i love it. [laughter] of course, its not a dell product, but the fact is there are, there is still a market for pcs. But can it survive in this market . Yeah. I think the real challenge here is to transform the company, right . They need to have a much better mobile strategy which includes tablets and smartphones outside of just pcs. I think the notebook numbers kind of tell the story at be 10 . But if you look at the other side of the business, if you exclude pcs, Enterprise Solutions and software were up 9 yearoveryear, and thats the piece that management is really focused on, that michael dells focused on transforming. Cheryl that seems to be where michael dell believes that hes going to find success, is going to be on the business side and not the consumer side. If he does not succeed, though, in this fight with carl icahn, will he have that card to play in the end . Um, this is the challenge. I think, i think personally that the, you know, the deal on the table is a good thing for dell was they can headache that trans because they can make that transaction a little faster. The other alternative that carl icahn is proposing is to sort of recapitalize the company, lever it up and do a tender offer at 14 a share. That gives them a lot less flexibility to transform away from that pc business, and were looking for total pcs to be down over 8. 5 this year. David jeff, thank you very much. Very interesting. by the way, after hours lets see what happened. Its close to the price that carl iran carl icahn is unhappy with, which is 13. 75. So its come up three cents, and, again, theyre guaranteed 13. 75 right now if they take what michael dell is offering. Cheryl but you just told the whole story, i got a mac air, and i love it. Welcome to mac world, and this is why you cannot succeed in the consumer side of the business, and michael dell knows this. David carl icahn playing both sides was, of course, he just bought a big stake in apple. So you wonder what his final interest is in all of this. Well, the world is in the middle of a global currency war and an International Monetary crisis is looming, so says our next guest, Tangent Capital Partners jim ricard. Hes going to tell us how you can make money during times of turmoil. Cheryl and could new york be the next detroit . Wow. Michael bloomberg, hes raising red flags about the big apples fiscal health. How concerned should investors be . You like those new york bonds, dont you . She knows you like no one else. And you wouldnt have it any other way. But your erectile dysfunction you know, that could be a question of blood flow. Cialis tadalafil for daily use helps you be Ready Anytime the moments right. You can be more confident in your ability to be ready. And the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. Tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. Do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. Do not drink alcohol in excess with cialis. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, seek immediate medical help for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a 30tablet free trial. Cheryl time for a quick speed read of e of the days other headlines. Five stories, one minute. First up, British Airways parent has placed an order for up to 220 airbus a320s that could be worth 20 billion. The planes are due to be delivered between 2015 and 2020. Foreclosure activity rose in july as lenders continue to adjust to new regulations and work through backlogs. A report from realty track showed it climbed from a sixyear low in june. The Worlds Largest pc maker sold more smartphones and tablets in the first quarter. Lenovo announced revenue which climbed 105 to 1. 2 billion. Wow. China producing fewer millionaires as the economy slows. The number of chinese millionaires grew at the slowest rate in five years in 2012 climbing just 3 from the previous year. And microsoft pushing back the release date of xbox 1 in order to improve the launch date improvement of the console elsewhere, now available in the u. S. And 13 countries in november, and that is the speed read. I made it. David by the way, applied materials, that stock is trading 3 down. They missed on some key numbers there. Cheryl nordstroms down 3 . David yeah. Its not a good day for earnings. Not a good day for cities, particularly detroit after becoming the biggest u. S. City to go bankrupt, but now new york citys mayor is warning that his city its our city, by the way the big apple could be the next in line. Cheryl were taxpayers on this set, all of us. David we sure all. Cheryl joining us now with the details is david lee miller. Reporter consider this, detroit is now in the red more than 18 billion, but whats really scary here is that other cities, larger cities could be next to declare bankruptcy. And little more than three months now, new yorkers are going to go to the polls to elect a new mayor. Mayor Michael Bloomberg is warning his successor that new york could be next, his words haved new york. Listen. Avoiding the hard choices is how detroit went bankrupt. Reporter bloomberg says pension and Health Care Costs for city workers that contributed to detroits financial ruin threaten new yorks economic stability. Most new york City Employees and retirees pay nothing for 6. 3 billion dollars in annual health insurance. Workers also pay little for pensions that have taxpayers on the hook for 8 billion this year. New york city has right now 10,000 Police Officers retired who are under 40 and collecting pensions, and they will technically collect those pensions for the lets of their lives. Reporter contracts for almost all 300,000 city workers expired at least three years ago. The next mayor will be under pressure to win concessions. The unions have tried to weed it out. They dont want to negotiate with mayor bloomberg because hes a tough businessman. Reporter many new yorkers remember when the city almost went broke after president ford said no to a bailout. Since then, a state financial control board oversees the city budget. The editor of the chief, a newspaper for city workers, calls bloombergs warning fear mongering. I think its partly a scare tactic, and its partly about spin of looking to deflect any blame for his basically having abdicated his responsibility as mayor to negotiate timely new contracts with the unions. Reporter a number of unique factors led to detroits bankruptcy. New yorks mayor bloomberg says every city has a lesson to learn. Across the country state and municipal pensions are underfunded now by more than 1 trillion. For example, chicago recently laid off more than 2,000 School Employees including teachers, the key reason here the escalating costs of pensions. Back to you. David new york has 5,000 fewer cops than it did ten years ago, its paying twice as much for cops because the pension costs have increased four times. Theres no way we can sustain it. David lee miller, thank you very much. Cheryl david, thank you. Well, are we on the brink of another Global Financial crisis . Our next guest, jim ricard, author of currency wars, says a monetary collapse is already unfolding. Hes going the give you some ideas how to trade. David david also where the british pound is going. And this guy, George Clooney, does not think that gives him the right to weigh in on the way sony makes movies, so does loeb as a leading shareholder have the right to push aggressively for a new strategy . Were going to being asking a former chairman and ceo of Sony Pictures, peter guber, what he thinks. Cheryl George Clooneys so pretty. David it is time for a look at todays market drivers. Stocks sell off after stronger than expected Economic Data triggered fears over the Federal Reserve plans to start tapering bond purchases. All three major indices posted the steepest declines in eight weeks. Americans filing for first time unemployment fell unexpectedly last week to the lowest level in four 1 2 years. Jobless claims declined 15,000 to 320,000. Precious metals rallying today. Gold rose 2 . It really popped. To close in at 1369. 90 an ounce. Silver soared 5 . Chairman . Cheryl anyone concerned about the Global Economy should listen to our next guest. He says he has a way to make money in world of currency wars and potential collapse. David listen up. Joining us now, jim rick regards, author of book, currency wars which will give you a strategy to play these things. Jim, first of all, im interested in the u. S. Dollar but you have news about the british pound. You think the british pound is headed for a crisis. How so . What is it . If there is currency crisis, well certainly have one sooner than later, they have one from time to time. Steriling in the eye of the storm. David why . He will print money until he hits targets. This is recommended theory in jackson hole said the United States should do the same thing. David should i be before we get too much in the weeds, just a basic investment question, should i there for short the british pound . If youre trader as opposed to investor, short the british pound there are other currencies to be long. Target, 6. 5 , two. 5 inflation but the fed announced these targets and there is wiggle room whether they will stick to it. Carney says heres the target. Well deep printing until we get there, bank of england. Theyre using among terri solutions to structural programs. They may never get there. They may print so much money investors lose tolerance. U. K. Sold most of their gold. They have a Printing Press and no gold. Theyre extremely vulnerable. Cheryl you see a banking crisis coming from a currency perspective. What does that mean . If you have a Global Banking crisis you will affect all currencies. The big winners will be gold. You can see the banking crisis. Since 2008, the banks were too big to fail. The banks are berg. They have higher concentration of assets and derivatives books are larger. Everything about too big to fail in 2008 is bigger and more dangerous. So you can see the crisis coming of the problem the last time the fed printed 3 trillion between 2008 and 2013 to patch it over. What will they do the next time . Print 6 trillion . Their Balance Sheet is shot. They have used up all the dry powder. Next time there is liquidity crisis the fed will not be able to print because they already did that. David in fact the fed were expecting a tapering. Perhaps todays Economic News assured there would be taper as early as sent that is not cutting it off. They will be printing money just less rapidly. Wont that lead to further lowering of gold price . If they taper i expect that is bullish for the dollar and temporarily bad for gold. David how low would gold go if they start tapering . Gold could trade down to a thousand. I dont think they are going to taper. I should be clear. I dont think they will taper. Because fundamentals are weak. They said contingent on data and performance. Fewer people applying for Unemployment Benefits that is not the big story. The big story, Labor Force Participation is crashing. That is only reason unemployment is coming down. Look at fun puns. 50 million americans on food stamps. 24 million americans unemployed or underemployed. 11 million americans are on disability. The fundamental economy is in terrible shape. I think they wont taper which would be bullish for gold and bad for the dollar. Cheryl favorite currency . Euro, has been for two years. Two years ago, krugman were running around with hair on fire and end of euro i was saying euro is strong again. Cheryl they are out of recession. They have done everything right. They made structural adjustments. David bullish on draghi. Bullish on euro. Singapore dollar, core korean yuan. Im done with australia. David we ran out of time but could come on for an hour. Which could have a currency show, one hour currency show. Jim, Tangent Capital Partners. Thanks for coming in. Cheryl very interesting. David Billionaire Hedge Fund manager dan lobe and Hollywood StarGeorge Clooney go headtohead over the sonys movie business. Should wall street have some kind of say in the Entertainment Industry . Peter guber, former head of Sony Pictures weighs in. Cheryl two billionaire investors changing their tune on gold. Were talking about it. You follow that lead. Weve got the latest coming up. When we made our commitment to the gulf, bp had two big goals help the gulf recover and learn from what happened so we could be a better, safer energy company. I can tell you safety is at the heart of everything we do. Weve added cuttingedge technology, like a new deepwater well cap and a stateoftheart monitoringenter, whe experts watch over all drilling activity twentyfourseven. And were sharing what weve learned, so we can all produce energy more safely. Our commitment has never been stronger. A lot can happen in a second. With fidelitys guaranteed onesecond trade execution, we route your order to up to 75 Market Centers to look for the best possible price maybe even better than you expected. Its all part of our goal to execute your trade in one second. Im derrick chan of fidelity investments. R onesecond trade execution is one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. Does your mouth often feel dry . A dry mouth can be a side effect of many medications but it can also lead to tooth decay and bad breath. Thats why theres biotene. Available as an oral rinse, toothpaste, spray or gel, biotene can provide soothing relief, and it helps keep your mouth healthy, too. Remember, while your medication is doing you good, a dry mouth isnt. Biotene for people who suffer from dry mouth. Cheryl gold bugs should pay close attention to. Investing. In the precious metal. John paulson, headed for the exits in a last quarter, cutting Gold Holdings in half. He was telling investors to hold on to gold. Similar story for george soros. According to a regulatory filing, sold significant positions in the market vectors. Gold miners etf and spdr gold trust, in the second quarter. Dave. David thats why they get big busts. Activist Hedge Fund Founder daniel lobe suggested sony spin off 20 of entertainment division. Clooney said, Hedge Fund Guy should not comment on the entertainment business. Is it ever wise for wall street to mix with hollywood decisions . Joining me with someone knows territory better than anyone i know. Peter guber, chairman and ceo of mandalay entertainment. More important, chairman and ceo of Sony Pictures aforementioned Sony Pictures. Pete, thanks for coming on. My pleasure. David where do you weigh in on this. There are two businesses. One group, daniel lobe is in showbusiness. George clooney is in showbusiness. They fit together but they fit together because they need each other. You know, the glory folks need the gold and the gold folks need the glory to sell. You cant say theyre at odds. They have different interests. Daniel lobe is interested in shareholder wealth, a creation, value proposition. George clooney is interested in the talent, creation of Cultural Values and entertain audiences. Different interests. Both see the same thing differently. He sees sony real need of capital in a way he thinks make shareholder creation, value. David right. George clooney will pick the movies and casting and tell him what to do. I dont think either are completely right or completely wrong. David here is what george, at the risk of bringing up an old quote, since this quote they have kind of, mended their way as little bit anyway. George clooney said, of mr. Lobe, he said, a guy from a hedge fund entity, is the single least qualified person to be making these kind of judgments and he is dangerous to our industry. Dangerous to the industry . I dont know what your industry would do without folks like that right . Hunt for gold in our industry is pervasive, longstanding and effervescent. Were always looking. It is a money grabber. Needs that capital to create the content. When companies are capital constrained they have to look outside of themselves. When theyre capital constrained, when a company like sony has Electronics Company on one side of the shelf and then a content company on the other side and never really created that real synergy everybody aimed for, that possibility is ripe for somebody like daniel lobe to look at moving those pieces around. At the same time George Clooneys anxiousness is correct. When people move in who think they can pick talent, they can pick the movies, and pick the stories, that doesnt work either. There is a divide. David youre the perfect person to have on. You were head of sony or a while. Lobes hedge fund owns 7 of the company, that is a big stake in a company. Did you ever have one of these big stakeholders try to tell you what to do as head of sony . Everybody told me what to do. You told me what to do. Everybody in the world tells you what to do. It is who you have to listen toys, who do you have to listen to then . I think you have to listen to three things. You have to listen to your shareholders, your chairman of the whole company. You have to listen to the marketplace what theyre responding to the dialogue and reality how youre performing. If youre capital constrained you may have to look outside capital to feed George Clooneys and James Camerons and talent an movies and television you need capital for. You have to listen with both ears to both audiences. David if a studio, i understand George Clooney is saying, you cant judge the direction of a studio by two flops and they have had notable flops recently, if a studio has downward trend, goes on more than two movies, or goes on for a year, these are the two flops they when the money people have to weigh in to talent, i dont care what a genius you are in terms of creativity, youre not making money for me . You know something . You have to be impatient if youre financial and you have to be patient if youre on creative side. Nobody can just make hits. They come in cycles. You have to look at talent managing those assets. I think Michael Linton and jeff blake and those folks, steve moscow on the Television Side done a really good job over long period of time. This is marathon, not a sprint. Idea theyre vulnerable because one or two movies didnt work i dont think is reallies lick. You can find that talent and not support them through failures. David the one thing lobe and clooney now agree on maybe they can put their minds together to figure out how to cut cut waste. Like big government, for example. Ive been on movie sets. I see a lot of people sitting around not creating any value. I see people overorderring more stuff than they need. Is that perhaps one area . Because clooney knows it from the street level, what kind of waste goes on in studio spending and lobe knows it from the big money level. That is maybe where they could get together, no . Yeah. The truth is that George Clooney is a fam noll that filmmaker, terrific guy and very smart. He is very wellmined that area of the film business. He is very efficient and very effective. I give him great grades. He is a good person. The idea, the waste never shows up on the screen. The challenge is when youre making these giant pictures they take a lot of capital to make them, a lot. Average picture may be 3 or 400 million, one of the giant global pictures. Whereas smaller pictures he made, many of them very successful are smaller economic reasons. But the truth is, the big studios really need those big pictures in order to shareholder, create shareholder wealth. So that drama is going on. They both have to be aware of that of the. David peter guber what a pleasure to have you. You were the perfect person for this. Mandalay chairman and former head of Sony Pictures. Good to see you. , go l. A. Dodgers, man. Thanks a lot, peter. Good to see. Didnt i see him at the yankees game . Never mind. From l. A. To seattle, the marijuana centric festival, hemp fest kicks off. David i remember that. Cheryl wait until you see what theyre handing out. Well go off the desk. David maker of americas most popular muffin mix managing to keep costs down which means lower prices for consumers. This is a way to make things work. How disit all work . Jeff flock talking to the ceo of chelsea milling. That is coming up next. Join us at projectluna. Com david well they are busy bees over at the sec. The Securities Exchange commission has new sanctions, this time against the Chicago Stock Exchange over order protection. These are rule violations. Chicago Stock Exchange is required to pay 300,000 in settlement, not a big fine at all. Chicago Stock Exchange broke securities rules from december 2006, to january 2008, so says the sec. Cheryl . Cheryl 300,000 . David it is like a dime in our money. Cheryl or yours. Consumer prices rose. 2 last month exactly in line with economists forecasts. One ceo says the slow growth economy is the new normal. David im told jeff flock, be prepared. He has kind after funny hat. He does have one of those hair protectors. He is in chelsea, michigan. You do what you got to do, dont, you jeff. You have to do what you have to do to tell the story. These have been here since 1940. These boxes have been around for 100 years. You know what . They cost 65 cents a box. Jiffy corn muffins have 91 market share. Im with the ceo howard holmes. Just blew it away. Means that 55 cents, blows you away . That does blow me away. It should. You say this economy were in right now is the new normal . I do. I think that everyone would like it to change and go back to the way it was. I dont believe that is going to happen. So you have made a history of keeping costs down as we said. These machines, you have had around forever. People come in here say where is the robots, where are the lays officers. You know what . Weve got in some cases older equipment and in some cases weve got very modern stuff. If it works, it is paid for and can keep up with demand, why change it . You have 91 market share and you dont do a lick of advertising. You dont spend a penny on advertising. No advertising. No freestanding inserts, no coupons of the you know what . By not doing that we can offer the consumer, who is our interests, the very best price. Amazing. And also, vertically integrated. You look at all the people around here. These boxes, i got in my hand right here, you print those yourself. You dont farm that out to anybody . No, we do absolutely everything ourselves, jeff, except we dont grow the crops with the ingredients. Do it old fashions way, david, cheryl. He had to beat off wall street and wants to come and take him over. He said they would just screw it up. Cheryl he probably has a good point on that one. Jeff flock. David 41 market share that is quite an achievement. Jeff, good stuff. We have two images. Take a look, can you tell which one is a lyne and which one is a dog . You really can but a lot of people cant. That is what one chinese zoo is counting on. Well explain. Cheryl oh, my gosh. If youve got it, you know how hard it can be to breathe and man, you know how that feels. Copd includes emphysema and chronic bronchitis. Spiriva is a oncedaily inhaled copd maintenance treatment that helps open my obstructed airways for a full 24 hours. You know, spiriva helps me breathe easier. Spiriva handihaler tiotropium bromide inhalation powder does not replace fastacting inhalers for sudden symptoms. Tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. These may worsen with spiriva. Discuss all medicines you take, even eye drops. Stopaking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat orongue swells, you get hives, vision changes or eye pain, or problems passing urine. Other side effects include dry mouth and constipation. Nothing can reverse copd. Spiriva helps me breathe better. Does breathing with copd weigh you down . Dont wait to ask your doctor about spiriva. S. David time to go off the desk. Before the break we ask which animal was lyne . Clearly the image on the least is the lyne but a zoo located in china thought it could fool people like me by disguising a tibetan mastiff as african lyne. The mastiff, the thing on the right is a large long haired dog with lynelike main but charade was exposed after the visitors heard it bark. The zoo has a lyne but it was reportedly in a separate breeding facility. Unbelievable. Cheryl hemp fest in washington face will have a heavy Police Presence but the cops wont hand out summonses. Instead the officers will hand out a thousand bag of doritos. David what . Cheryl get it . When you smoke pot youre hungry. The threeday celebration is protest of cannabis laws in the world. David Richard Fisher is the president of the Federal Reserve bank of dallas. When does he believe the central bank will begin tapering its Bond Buying Program . Who will replace chairman ben bernanke . By the way, Richard Fisher become as Voting Member of the fed very shortly. So you want to listen in for that. Cheryl time for the top two things to watch for tomorrow. Number two is preliminary reading of august consumer sentiment. The last months reading strongest in six years. Tomorrows reading expected to rise to 58. 5. David number one thing to watch is july housing starts. Economists expect starts to rise 900,000. June starts plunged 9. 9 because we saw those rising interest rates. Cheryl homebuilder confidence. Well, thats it for us. Money with lori rothman in for Melissa Francis is next. Very good evening, everyone. Im lori rothman in tonight for Melissa Francis. Heres whats money tonight. Been anything but smooth sailing for the cruise industry this year from fires to broken down ships. Travelers had plenty of reasons to think twice. But weve got the ceo of Royal Caribbean in studio to tell us how is convincing folks to get back on board. Plus should your boss pay you to skip work and volunteer . The perk is spreading to companies all across the country. Were going to tell you why some say it can actually boost a business as bottom line. Who made money today . It was a tidal wave of red sweeping the marketings of course but these guys managed to float way up into the green anyway. Stay tuned to find out just who