Transcripts For FBC Markets Now 20121130

Lets take a look at yum brands. 74. 75. They get about half of its revenue from china. Not looking so good. Traffic in china stores down about 9 . That is a big deal. The company issuing a negative outlook for china. Lowering their guidance for all of next year as well. This is a loser today. As for all stocks, mixed, cautious. We do have markets of except for the dow. Connell you are right about the end of the month. We have 31 days on our countdown. It seems like the fiscal cliff situation will never end. Monica crowley want to tell us what will happen here in washington. Nobody really knows what the next move will be. Both sides are pretty firm in their position. For anyone who thought that barack obama may move to the middle in his second term or be willing to compromise, we now know that is not true. Connell that is out of the window, and your view. Yes. Connell the democrats will argue, this is nonsense. This is who the president is. This is what he believes. My book is complete with every single time the president has proposed a type of policy. It has evolved the same exact elements we heard from geithner yesterday. Higher taxes and more spending. No entitlement reform. Connell not as much of what you think should happen, i am more interested in what will happen. The ball is now in John Boehners court. What do you think is going to happen . Over the last four years, the republicans have tried to negotiate in good faith. Even two years ago, when the first debt ceiling came up, they said they would put revenues on the table and try to work with our caucus on that. What can we get in return and the president said, basically, nothing. I will not do serious spending cuts. I am not going to do entitlement reform. I am not giving you anything. They came to the table thinking the president would meet them halfway and give them at least something that they want and the president is, yet again, not giving them anything. I think this is what the president wants. He wants the tax rates to go up. Even if that means on everybody. That means more revenue going into the government. He wants the defense cuts. He proposed even more spending. 2 billion more in spending. Connell even from congress today, there have been republicans hear similar things. It does leave them and whatever that is, it does leave them in a tough spot. Now, boehner could come back and say i will not give you 1. 6 billion in tax hikes. Otherwise, the republicans to take a share of the blame. You know, if we do go over that cliff. 400 billion out of medicare. That is the extent to which he is willing to cut. First of all, you have to do reform, connell. You cannot just put a bandaid here caught a little markets on the here. You need a serious overhaul. Connell for what its worth, my take, he would not want to do it because he would not want to be remembered that push the country back into recession. It is not leaving a strong economy, it is transforming the economy into a your european socialist. Connell thank you, monica. Thank you. Connell we do have real numbers on the economy to talk about. Today, we learned Consumer Spending is down for the month of october. Not to worry says stuart hoffman. He joins us from pittsburgh. It is a deal when Consumer Spending falls. We should put it in context. In july, august and september contributors had a pretty good rebound. As you said, some of the Hurricane Sandy koufax did affect this number we will find out on monday whether the sales came back when they announced november numbers. If you average this out, we saw, even in our company, a decline in sales of our merchant services. We have seen more of a return to normal and i was encouraged, but i guess it is now black thursday to cyber monday sales look pretty good. Connell everyone says, all right, well, what if we do not get there in terms of this washington self that monica was just talking about and we do not have a deal at the end of the year. Does that didnt stop us in our tracks and terms of economic recovery . 20 odds on recession. If you go over the cliff and the economy falls into recession, you may have higher tax rates, but you will not have higher revenues. If you go back into recession, less people working, less income, more people out of work, more employment compensation, i do not think that is in anyones interest. Connell if i had to make a prediction, it is in both interest of Speaker Boehner and president obama to come up with a solution. They will both be remembered not necessarily for january, february, arch of next year, but held the second term when. It is always tough. It sure does not help to start out with your first year of your second term with the economy back in recession. I think we will get a deal. We cannot get the compromise on the really big issues like bono commented. I think we will not fall over the cliff. It will be 150175. That will take a bite out of Consumer Spending, ap in the first quarter. We will have a decent holiday sale. Some pay back early next year. Connell thank you, stuart. I think you bring up an important point. Even if we solve this, you will see higher taxes lower spending. Some tough news from microsoft that came out today. The company will cut its order of the new surface tablet that we have talked about from 4 Million Units to 2 Million Units. This is all because of weak demand. It runs on a result eight. They continue to see very weak demand for when does a. The stock is down as you see today by about 1 . The problem is the Environmental Protection agency is leading people. Aaa coming into conflict with that because there is potentially, this could do damage to middles of vehicles. Epa has not commented on the issue so far. The great dividend rush of 2012 turning into a big story at year end. What happens when it all comes to an end . That is what we are going to talk about. Not getting their moneys worth. Ready to make the spurs for not playing their stars. A pretty good game, though, last night. This is a great story. What would you have done if you were the spurs coach . Jim gray is here. Lets take a look at oil first. The mid 80s. 88. 52. Up by 0. 45. We will be right back. Want to try to crack it . Yeah, thats the way to do it now we need a little bit more. [ male announcer ] at humana, we understand the value of qualittime and personal attention. Which is why we are proud to partner with Health Care Professionals who understand th difference that quality time with our members can make. Thats a very nice cake ohh [ giggles ] [ male announcer ] humana thanks the physicians, nurses, hospitals, pharmacists and other Health Professionals who helped us achieve the highest average star rating among National Medicare companies. And become e first and only National Medicare Advantage Company to achieve a 5star rating for a medicare plan. Your efforts result in the quality of care and service were able to provide. Which means Better Health outcomes. And more quality time to share with the ones who matter most. I love you, grandma [ male announcer ] humana. Connell time to make a little bit of money with charles payne. Taking a look at today with charles this dog just got hammered here recently. Down at this level, pretty soon you may hear him say, you should take the company private. He does have a pretty good point. These guys are doing pretty well. If you look at the different websites, it would make a good ally to oriole map on how to win it. Anyway, revenue is up. Operating income of 53 . The searches doing even better. The stock is trading with a 12 pe. Someone you can make some money on this thing. Connell iac interactive. We will have jim gray on later with a sports story. The spurs are playing miami. The coach of the spurs fits his starters. David stern, the commissioner, want to find him for it. Charles i love the move. Here is a coach off by the way that it is not the youngest bunch in the world, guys, you have been working hard, we will take a break. The League Schedule so many games back to back to back on the road. It is really their fault. Connell i want to see what jim thinks of this. It is funny whether the nba all 411 for all. Or whether they are competing with each other. Shares are up right now. Doing better today. 7 to the upside. Building a new block of 32f35 Strike Fighter jets. They are new radar jets. They are really expensive. 15 of the budget goes to this program. That is why this could be a target for cuts. Trying to figure out if it will still happen. Lockheed martin is up right now. The dell just dipped into negative territory. Have not heard from anyone in washington today. So i guess we do not know to go one way or another. That spending number four october, two tenths of a percent of decreases. Connell another big story today, the story in cairo. We will have the latest on that coming up. If you are sick of all this fiscal cliff talk. Wayne rogers is also. Wayne has the answer to all of our debt problems. He is coming up a little bit later on. First, speaking of markets, lets take a look at current fees and how are faring against the u. S. Dollar. [ engine vs ] [ male announcer ] the mercedesbenz winter event is back, with the perfect vehicle thats just right for you, no matter which list youre on. [ santa ] ho, ho, ho, ho [ male announcer ] lease a 2013 c250 for 349 a month at your local mercedesbenz deer. You know how painful heartburn can be. For fast, long lasting relief, use doctor recommended gaviscon®. Only gaviscon® forms a protective barrier that helps block stomach acid from splashing up relieving the pain quickly. Try fast, long lasting gaviscon®. Well, having a ton of locations doesnt hurt. And a santa to boot [ chuckles ] right, baby. Oh, sir. That is a customer. Oh. Sorry about that. [ male announcer ] break from the holiday stress. Fedex office. 521 minutes past the hour, i have your fox news minute. Residence and one new jersey city are being told to stay inside after a train accident. The train went off the track after a bridge collapsed. Melting at an accelerating rate, that is according to a new study. The melting of the ice sheets has raised it. Right now, you are looking at the egyptian capital of cairo. Thousands have gathered after the Assembly Raised through approval of a new constitution in a bid to and anger over morsys newly extended power. Those are your News Headlines on the Fox Business Network. Back to connell. Connell that has been some story. We will talk more about that right now with retired Lieutenant Colonel ralph peters. They are moving. Rather quickly to throw together a constitution. I guess that is scary in some ways. First of all, i am going to say some words that you have never heard on your show. I was wrong about something. I felt the Muslim Brotherhood was going to take this in a slow way to build it in. Instead, morsy and the brotherhood have decided to go whole hog and just go through it right now. This is utterly shameless. While this constitution that now must go to a referendum of the people, the Muslim Brotherhood is pretty sure they can organize a vote for that. There our various provisions that ensure that they will default. One says that any related any question can touch on that. There is a family law that can be basically used to impress women. Freedom of speech is guaranteed, but you cannot insult individual human beings. Connell what do we do . We went through and all watch what happened in the arab spring. The constitution is thrown together in egypt. We know they are an important relationship with us. What do we do . What does the United States do . We have to recognize our limitations. We can only play on the margins. Money changes everything. Morsy is achilles heel, that is really the economy. Tourism is gone. It is very important to them. Foreign investment has essentially dried up. We do spend well over a billion dollars in aid, primarily to the military every year. It filters through the economy. We should stop connell we should stop doing that . If morsy pushes through the constitution, there is no reason to continue sending over billions of dollars a year. It also looks like under this constitution that morsy bought off the army. They get the money. They spend it anyway they want. This constitution, as i understand it, there will be no interference by the army with the government. He has a good chance of becoming this software powered dictator. Connell thank you, sir. I appreciate you coming on. Corporations paying out these early dividends. They are trying to be the coming tax hikes. Our question today will be what happens when all the money stops. What about next year . The nba looking to send out some find for venting their starters. We will find out how jim gray feels about it. Lets look at some of the individual stocks that are winners on the s p 500. Connell back on market now. We have jim gray to talk about the spurs last night venting their stars. What it all means. It is a pretty good story. Then, what happens when the money in. Corporations have been doling out these big dividends to shareholders trying to get ahead of tax hikes. What happens to the markets when they stop doing that . Wayne rogers is here. Telling us he has all the answers. We will see. At the bottom of the hour, we will go back to lauren. A big winner. 2. 40. It is about a 5 pop. Supervalu is the Third Largest Supermarket Chain in the u. S. The stock tanked 18 . It is nice to see it back up today. As for the markets overall, we have been green and red all day. Hoping to round out the week in the plus column. Overall, a pretty flat day for stocks. Back to you. Connell we will talk about basketball now, as we promised. Here is what happened. You have the San Antonio Spurs and their coach. He chose to send four of his key players home last night instead of having them play in miami. They were in the last game of a six game road trip. You talk about the best players on the team. It did not set well. Jim gray is here with us. Longtime Sports Reporter and now a fox news contributor. Thank you for coming in. Is david stern right to be upset about this . Absolutely. I hope he is harsh in his punishment. The fans deserve better. The games are being played for the fans. His mission is to protect his team and win as many games as possible. Connell let me bring up one issue and then we can continue with this. The spurs almost one. But nobody came to the game to see dargo splinter play. Connell you have to pay more. Correct as opposed to playing the rafters. This was the highest ticket price for the fourth level for the season. The game was being played on tnt. It was a preview of the finals. The fans in the stands, there is no reason for anyone to show off and that is not right. Connell the Business Model of sports generally speaking if you are a sports owner or a commissioner of a Sports League is not collective meaning all for one, one for all, is it competitive . It seems to me, that is really at the heart of this on how you view that. You have to have the best interest of the league when you take into account the best interest of the league. The interest of the game and what is in the best interest of the game is what the commissioner has to uphold. Even though he is hired and paid by the owners. This is totally unacceptable. It should be a heavy fine. I dow that he would take a draft choice. You cannot do this. This is not behavior that is acceptable. I concur more with david stern because it is reprehensible. I understand it. I have Great Respect for this coach. He has done things like this in the past. Lets hope this gets him back on track. Connell the best player may be sitting out that day taking a rest. They do it in soccer. At least those teams have the common decency and courtesy to bring those teams to the arena. If you are going to do it, at least camouflage it better. Dont be so blatant to put these guys on a plane to orlando and send these guys home and say this does not matter. They plate 82 games for a reason. Do not do that to the people. That is not there and it is not right. Connell having the amount of backtoback aids that they have. Does that need to be rethought or no . If they do not want to be salaries that they are paid, then they should revisit all of this. I do not see where the union says lets get back 10 of the game. I do not see where the teams say we can operate and say we do not need to take in the revenue from the state and television and so forth. Maybe they should roll it all back. That would be a real good idea, connell. Connell it depends on how you look at the Business Model of sports. I just thought maybe a find at the most. David stern does not show a whole lot of compassion. Connell that is true. That is definitely true. A suspension load really get people fired up. These are not easy decisions. Connell good to see you. Thank you. The story we have been doing for weeks about a different kind of stimulus. They are basically trying to get ahead of tax hikes. The question going forward, what happens when the stimulus is not there anymore, then one for the markets . That is coming up. What about now for the markets. We will be right back on markets now. Much more to come. I am dennis neal with your fox business brief. Consumer spending still more than expected in october. Income growth stalled. Up two tenths of 1 from september. Personal income was unchanged. Ford expects november to be a record month for hybrid sales. Shares of active network are soaring. Merrill lynch citing attractive valuation. The companys stock has taken a hit after a weaker then expected forecast. That is the latest from the Fox Business Network. Giving you the power to prosper. [ male announcer ] where do you turn for legal matters . At legalzoom, weve created a better place to handle your legal needs. Maybe you have questions about incorporating a business youd like to start. Or questions about protecting your family with a will or living trust. And youd like to find the right attorney to help guide you along, answer any questions and offer advice. 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I am not sure how much these dividends are actually affecting stocks. The reason is, even though there are 25 companies that have announced special dividend or accelerated dividends, when you add up all the money involved, it is not a huge number. Most stocks run by institutions. I do not see much stimulus here. I think the market takes into account the valued stocks. I think people are much more focused on what will happen to gmp growth next year. People think it will be modest. Connell over and over here. Try to handicap this. The whole fiscal cliff situation. When you make assumptions for next year. Can you make any right now. What percentages do you put on the fact . Here is what i think people in the markets are doing right now. There is a part they know and a part that they do not know. Most people expect growth to be sluggish. Whatever it is, it will probably make it more sluggish. What they are then deciding is is it really realistic that the companies can earn 115 next year. I think they are wondering about that. You are seeing the pe in the come down. The uncertainty is what kind of deal are we going to have. Are you going to have a reoccurring psychological drama coming out of washington where they do not make a deal. I think the market fears that. It undermines confidence of the consumer and companies. Connell one of the things that gets lost in all of this is even if they do a deal, the idea of that selling everything and putting us on the right track just based on the fact that a deal will be reached, it will not be something in and of itself is growth. You wont raise taxes and cut spending. Neither one of those stimulates growth. It is a matter of how you do it. This is why, although obamas proposal did not talk about spending cuts and i wish he had, he talked about stimulus and Infrastructure Spending as part of his proposal. They will spend some on infrastructure. They are worried about the economy. Very anemic in the first half of next year. Connell what do you make of it . We do not have a choice. We have to raise revenue. We have to cut spending. We have to get on a more solid path. There will be a cost to it. The other problem is, you know, to your point, when you talk about, lets say you use the word tax reform, what does that mean, they will deal with either the mortgage deduction, the charitable deduction or the state tax deduction. Think about how that affects the behavior of individuals. That is all coming down the road. That will come and it talked about exterior. It really affects peoples behavior. Connell robert, always great stuff. Thank you. We do have a little piece of breaking news that wave want to pass along. Lottery officials are telling us that the mechanic and his wife are the missouri winters of half of that jackpot. Still waiting on that arizona winner. I mechanic and his wife out of missouri. Congratulations to them. Apparently, at least half of that big jackpot is theirs. Lets go to lauren, back at the new york Stock Exchange. Year to date, down about 80 . The news is that the board says the ceo will stay. He is 32 years old. Investors seem to think they should get someone more Business Savvy and that proposition. Down more than 8 right now. We are pushing close to session lows on the Dow Jones Industrial average. Just trying to stay above 13,000. The nasdaq and s p are down each about a third of 1 right now. Connell, back to you. Connell where you are a winner, just to be clear. Thank you. Connell we will stay with technology for just a moment to talk about zynga. That stock has been sliding. Down about 7 . Zynga and facebook restructuring their agreement on online games. It certainly exists relationship complicated. Both of them reacting to filings that came out after the close yesterday. The two of them will be putting distance between themselves and no longer be found to each other exclusively. They are given free reign to develop on other platforms. In return, facebook also giving a little bit more rain here. The company will be able to start coding games with their own free platform tier. In this statement we are not in the business of building games and we have no plans to do so, though you have to wonder, connell, if they were not interested, why did they go through the trouble of revising the contract . Connell fairpoint. Shibani, thank you. Shibani joshi from the newsroom. You can stop worrying, wayne rogers has the whole thing solved. Wayne with this simple fix to the budget problems. He is coming up next. Some of the losers in the market. Here are the winners on the nasdaq today. Connell we have been telling you all our long now here on markets now that wayne rogers would come in and solve the fiscal mess. That part you got right, i am here. Connell here is the one serious part about that, a bunch of us got into a room together and said here is the issue. Lets go ahead and solve it. It has been done already. It can be solved, if you want to solve it. That is correct. All they have to do is embrace it. Senator from tennessee. He has done a study also. Here is the book. Follow that. I do not care. What is the magic of 2 , for example. This is all made up stuff. This is just grabbed out of the sky. He is just saying, they are just grabbing at numbers. They have not done this in any methodical way. Connell your solution that we just put on the screen there, lets cut the rates. Close some of these loopholes up and cut regulation. Simple enough. They are politicians. They cannot agree. Why they cannot agree is just idiotic to me. It seems simple to you and i. We have a disagreement we sit down and figure it out. Connell if you think we go off the cliff, if these automatic spending cuts and tax increases not a disaster at all. It was there before. Before bush. Bush came in and we had tax cuts. It will work well again. [talking over each other] the biggest problem, i think, this got in the white house and the people surrounding him think all you have to do is primed the pump. They have pumped money into the economy for four years. It did not work. You have to try to do something else. Connell Monica Crowley was an inch he made the case that the president essentially wants to go over the fiscal cliff. The things he would get are the things he wants anyway. First among them, higher taxes. Do you think the president because of legacy terms wants to get this taken care of . By the way, that may work. I do not know. I know this, the congress will not be happy. Sometimes it comprehends the policies that we have to bring into that entitlement programs and all of those things. You have to do it in a composite way. Connell still a problem in that sentence the rational people part. Connell thank you for coming in. Have a great weekend. We have Cheryl Casone and Dennis Kneale ready to take things over on market now. Working through gridlock on capitol hill. It is a fiscal cliff survival kit. Just what you need before the weekend. Steps you need to protect yourself. What Small Business needs to do now to prepare for the coming left. It is all next on markets now. Streamline the process . At fidelity, we it by merging two toolinto one, combining your customized charts with leadingedge analysis tools from recognia so you can quickly spo key trends and possible entry and exit points. We like this idea so much that weve applied for a patent. Im colin beck of fidelity investments. Our integrated techcal analysis is one more innovative reason seous investors are choosing fidelity. Now get 200 free trades when you open an account. I heard you guys can ship ground for less than the ups store. Thats right. Ive learned the only way to get a holiday deal is to camp out. You know weve been open all night. Is this a trick to get my spot . [ male announcer ] break from the holiday stress. Save on ground shipping at fedex office. Like 20 off ea sports madden nfl 13 . You should never go forth and fourteen, you cant do that. [ morgan ] getting a chance to hang out with madden in his game room. Blue go. Did you hear the pop . [ morgan ] and barbecue with madden. Watch football with madden. Learn from madden. Was that good, coach . [ morgan ] and get coached by the ultimate coach madden. Does all this make sense to you . Um, yeah. [ morgan ] yup, pretty epic. Join visa nfl fan offers and make your season epic. [ malennouncer ] rated e for everyone. Dennis it is almost noon. I am Dennis Kneale. Cheryl i am Cheryl Casone. Both sides sticking to party lines refusing to budge on the fiscal cliff. We will break through the gridlock on the last day of our special series fiscal cliff survival kits. David dietz from another taken. Dennis what your Small Business needs to do to prepare for falling off of the cliff. Cheryl in all of this is a Silver Lining especially dividend payouts and stimulus payoffs. Dennis a push to replace the paper dollar with a coin. Wont believe how much money for taxpayers. Cheryl Lauren Simonetti in the Stock Exchange. The nasdaq anderson be a higher but not for the dow. The dow is negative but the other two are positive. The second week in a row, all three indices are down right now and near session lows, relatively flat, major declines, and major comments out of anybody in washington regarding the fiscal cliff today so we have this cautious market. Lets look at the biggest loser in the s p 500, cabarrus 9. Shares are tanking 14 . They operate diaz they. Com internet addresses, they renewed contract with regulators but as part of the deal they can no longer raise prices without permission. They were doing this automatically four times not to do that without permission anymore. Verisign down 13 and change. Dennis price controls on internet domain names. That is just wrong. President obama on the road pushing his plan to soak the rich and a toy factory in pennsylvania but republicans not playing. Peter barnes join those with uptotheminute coverage. The president trying to get republicans to knuckle under on higher taxes for the wealthy. Not only is he in pennsylvania about to speak in the next hour or so but the white house has announced that the president will meet next week at the white house with governors to quote try to win support for their plan and he is going to give a speech on wednesday to the Business Roundtable which is made up of 200 corporate c e l as. He really likes the ceos. Yesterdays treasury secretary tim geithner was on capitol hill lobbying down the president s marker in this fight, repeating the president s demand for 1. 6 trillion in taxes over ten years on families making and to 50, and dollars the year and includes 400 billion in change in medicare, medicaid and other entitlements over 10. The president wants to extend the current payroll tax cut for another year, that is 100 billion and includes billions in additional stimulus measures including 50 billion in new Infrastructure Spending. All this is dead on arrival with republicans on the hill. Republican whip Kevin Mccarthy saying in a statement, quote, the president is heading to pennsylvania today in full Campaign Mode to make arguments increasing taxes is the only solution to the nations economic woes. He is wrong. We also be hearing again from House Speaker john boehner and democratic leader House Democratic leader nancy pelosi. More dueling press conferences as this fight continues. Dennis more fiddling while the cliff looms. Peter barnes. Cheryl for get kicking the can down the road. Our next guest says the tables could be said for lawmakers to put off making the real decision on a clip for another four years. David dietz, chief investment officer, is here. You think this is a real possibility. Everything stays as is because they dont cut a deal. For two reasons. Basically austerity arguments are going to give way to progrowth. We are in a weak economy, unemployment is close to 8 . If they raise taxes at all, it is counter to getting this economy back on track, totally inconsistent with ben bernanke anddthe federal reserve, it doesnt work. Cheryl you say ben bernanke is the only adult in the room. Look at the polling of congress it makes sense. They are acting like children according to recent polls. Ben bernanke pull those out of the worst downturn since 1930 and raised the spigot so money is flowing out to raise taxes or cut spending is inconsistent with low Interest Rate policies he has gotten going and people say when should we address the deficit . Same question as when should ben bernanke start raising Interest Rates. He told us there is 2014, inflation is not a problem. You dont see it. Is that this a problem . Why is the ten year treasury just one. 6 . Whar the bond vigilantes . No one worries about the deficit right now. Theyre worried about a slowgrowth economy. Cheryl using markets have already priced in the fiscal cliff arguments but why do we see markets get so volatile when john boehner comes out, are almost afraid to see him talk again today because senator reid comes out and down and up. So much reaction. You cant rule out the risk that nothing is done and they dont reach an agreement and if taxes go up and spending is cut we will be in a recession next year. And employment 9 , we cant rule that out but it doesnt make sense to let that happen for the administration, the principal of punishing the wealthy is enough to allow the rest of the country to go into a funk doesnt make sense. Cheryl we see numbers and taxing the top 2 do nothing to deal with the overall deficit problem but you also think at the end of the day doesnt matter about the deficit. We are focused on the wrong issue and you are telling longterm investors stay in, dont tinker. Stay the course. Stocks are still cheap, very dumb policy makers at the end of the day. This is not sandy number 2. We can fix it. The stock market is not just the United States. Take a company like cocacola, 80 of sales outside this country and finally even if we were to go off of the cliff there are longterm benefits and a lower deficit so at the end of the david as a longterm rise in, properly diversified state of course. Cheryl japanese stocks and aig, a stock that has run up 39 over the last year despite government issues and government involvement youre sticking with a ig. Want to recommend that going into a cliff discussion. There is nothing about sandy and recent events that would cause anyone not to renew their property and cash will policy. No matter what happens to the economy people will pay that insurance, it is the dominant provider trading 40 off of book value. The concern is government over hang but the government will get out quickly now that the election is past, once morsi 8 is off of the job the new guy is going to say now we can sell the losses on Tim Geithners books and so i like aig for the long term. Cheryl whoever is the next tim geithner, you never know. We were talking about the dividend payers and focus on dividend payers because of potential for 39 hit on taxes, 43 pretending to make more. At the same time you are saying the stocks of the dividend payers and chevron and honda and you like these bigger names, stock names. Were looking at valuations, a good valuations there, not just dividend by themselves. If they dont have the earnings that will honor the dividend doesnt matter. Cheryl great way to end. Thank you very much. Coming up, the fiscal cliff survival kit will be continuing to take right now to save money. Dennis doing a little ventriloquism. Cheryl you will thinking of those great points. Dennis not just real change but loose change, coins in my pocket and now it is worse. The u. S. Wants to replace the dollar bill with a dollar coin. It could save the government 4 billion but only over the next 30 years. Next is late next month when the mint present congress with its proposal to change from a dollar bill to one dollar coin. It will never happen. Because there is no way to put up with it. Cash registers and hundreds of millions of cash registers set to receive dollar bills that have to totally change everything not going to happen. Cheryl our currency system is what it is, to make the move you are right, a costbenefit would not be there. Dennis spending one trillion dollars a year too much and theyre talking about 4 billion over 30 years, drop in the bucket and fiddling [talking over each other] cheryl man purses, not that big a deal. It is great for your phone, you can put moisturizer in there. How come women dont carry them . Dennis they are men and it is important element to stand up and be a man. 50 shades of lawsuits. We will tell you about a porn film playing off of that popular 50 shades of gray. Now the target of a major Motion Picture studios lawsuits. Cheryl this is happening now, taking it to the streets. Protesters in egypt right now opposed to president Mohamed Morsi making their voices heard. We will have a live report from cairo. Dennis we will take a look at oil. We are live at the cme next. Cheryl time to make some money, the dish on fish, what you need to know. Charles the broad market is moving sideways, special dividends to get ahead of higher capital gains. These are absolutely on fire. These are Companies Like dell web, i saw a long time ago. We have pharmaceuticals, special dividends of 8 , nasdaq holdings, stock up 26 . The big name in the mix is a dish, you have a company that is doing extraordinarily well sitting on 3 billion in cash. And supporting john mccain, and right meaning companies. 42 of the quote. It is a 5 dividend and that would be a 5 dividend announced right now. If it was the 1 special dividend he would save 47 billion and the enticement for dealing in large shares of companies and a lot of people like doing it. And this may be one of them. So people on the street looking at something that might be up, a double digit move. Cheryl obviously it is good for lot leadership. [talking over each other] charles absolutely wonderful. And a buy back any day. [talking over each other] hope we are back on monday saying [talking over each other] 15 past the hour, stocks every quarter hour. Team coverage, phil flynn, trading pits of the cme the first Lauren Simonetti at the Stock Exchange with the dow turning negative. I was going to say good morning. Almost the market playing defense. Unlike the past two days, all ten s p sectors in the green, havent seen a double day like that for almost six months but now we have the defensive play, positive utilities and telecoms. Definitely a trend in the market right now but negative across the board and with that, lets say hello to phil flynn. A big down day and gold down 11. The day after record volume in that contract here at the cme, a lot of stuff happening, on gold today, people looking to take delivery on the contract but they might not get it because of the problems with Hurricane Sandy and the depository, there may be a bit of be late to get sheared gold but if you take the delivery today you might have to wait a little bit. The other issue traders are watching carefully is the Train Derailment in the delaware river. Tte refineries in new jersey, 80 a be all there are concerns it could impact supplies, the ability to move eating land gasoline by rail out of the refinery and also concerns they may shut the refinery down if there is an evacuation. We have not heard anything about that yet but something traders have to watch going into the weekend because supplies in the northeast are very tight because of Hurricane Sandy. Cheryl thanks to both of you. Dennis a free teen derails spilling hazardous chemicals. Residents are being warned to stay inside and got those detail ahead. Cheryl amazing all the impact of of that. Commercial Real Estate Investing has gotten a big boost in the portfolio, Merry Christmas season may help one companys profits. Dennis and currencies against the u. S. Dollar which may soon be, coin. Welcome back to fox ms. This, the senate has voted to expand sanctions on iran over the countrys nuclear program. The new rules focused on the energy for shipping and shipbuilding sectors. The move comes after iran says it may quit the antinuclear arms pact if the facilities were attacked. North korea has been trucking rockets into its northwest launch site, and analysts are questioning the move and whether its a calculated blood that challenging the Obama Administration and influencing south korean voters ahead of the countrys president ial election and the United Nations voted to grant palestine limited recognition of statehood. The move which falls short of independence gives palestinians limited privilegeds as a state including the right to join the International Criminal court. Dennis lottery officials told a News Conference after announcing a 52yearold mechanic in new jersey and his wife claimed their fair share of the record 588 million power ball jackpot. Mark and cindy hill, with two Winning Tickets. They found out she had the Winning Ticket. Went by to see what the numbers were and got back in my car, is that the right number . I was shaking and called my husband and think im having a heart attack. Dennis can she avoid the lottery curse . They had that 580 million prize for whoever holds a Winning Ticket sold at a Convenience Store in suburban phoenix. Cheryl know what i related to our friends with. Personal income and spending for october up 3 from last year, promising news for a company like eden with 130 locations it is one of the largest owners of Shopping Centers in this country mostly in the northeast. Joining me is ceo terry brown. Thank you for being here. You were telling me within the out door malls that you run, big names like targets and whole foods really are bringing in customers for all the other smaller side businesses so things are improving. Things are definitely improving. It takes real anchor of whole foods and other retailers who bring customers back to a shopping place or location once or twice a week. Someone like wholefoods is driving traffic. A lot of people buy their groceries every day to prepare dinner. Cheryl 95 occupancy right now. What we are seeing in the forecasting is 2013 rates are going to go higher. Less rent space for you. We are approaching pre recession peak in terms of we approach 95 of the business, we are largely full but hopefully in 2013 they will allow us to start to put trends to drop cheryl you have 3 billion invested in all of these properties but northeast a heavy center for you, connecticut, new york, what were the effects of the storm on your attendance . We were very fortunate. With respect to our properties we had Power Outages for a few days in places like princeton and long island that the reality, the fiscal plants revived just fine but the november sales for our retailers as with all retailers in the northeast were impacted by sandy and the election. Sales were down in november but for we are hopeful sales will pick up in december. Cheryl your giving credence and confirming what the major retail chains for november samestore sales was impacted by the storm. That did happen at your property. Absolutely. Lost a few days and we think consumers will catch up. Cheryl what is better for you right now . Is it the suburban units or is it more, you have a huge district in d. C. In that one, and the center of boston, is it more urban centers that perform better for you or the outlying . Clearly the urban centers, things that are more democratically driven in terms of population density and Household Incomes are performing much better and that is where most of the activity is in terms of redeveloping great sights and creating interesting places driven by merchandising, design and engagement with the community. Cheryl you were saying fitness, gyms, things like that are a big saying retail spaces right now, the strip malls. No offense but that is what i think. Demographics are driving people, fitness and food, those are hot areas in retail, whether it is fitness in terms of gyms, fitness clothing and related activity, those are really hot areas. Cheryl usa out of a smaller chef inspired restaurants doing well. Of one up for the little guys. Great to have you on the show. Over to you. Dennis fiscal cliff survival kit coming up in the next steps your Small Business should take right now to prepare. Plus jeff flock is milking of fiscal cliff story for us and from the farm. Jeff you dont care about the fiscal cliff but if you care about milk prices if we dont get a deal on a farm bill, milk prices could double within a month. I will explain how that will happen right down here on the farm. We will get it from the horse or the callas and house. You know how painful heartburn can be. For fast, long lasting lief, use doctor recommended gaviscon®. Only gaviscon® forms a protective barrier that helps block stomach acid from splashing up relieving theain quickly. Try fast, long lasting gaviscon®. [ engine revs ] [ male announcer ] oh what fun it is to ride. Get the mercedesbenz on your wish list at the winter event going onow but hurry, the off ends soon. Cheryl 30 past the hour, the largest generic maker pharmaceuticals of by 1 2 . Announcing a major reorganization plan with 2 billion and expenses over the next five years and this is wide ranging including everything from discontinuing research operations, changing the way they get their raw materials, stocks up 3quarters of 1 on this reorganization plan. Markets are down and held hostage by talks on the fiscal cliff in washington. Little changed but down, more declining stocks compared to a advancing stocks so the market is negative today. Cheryl thank you very much. Dennis 31 days left before we go over the fiscal cliff. The chief economist of the National Federation of independent business is here with what your smallbusiness ought to be doing now. Thanks for being with us. The first question i have is what if i just decide cant take uncertainty and will do nothing now. What do you say to that . That is what we see our Business Owners doing, they are really unclear about where the economy is going to go and what the impact of the cliff is going to be nd we ask about their outlook of Business Conditions six months out, mid year next year, 14 said they thought would be better but 19 thought it would be worse than 22 of time 37 your record highs, who knows . No idea where it will go. The best thing to do is sit tight. Dennis what bothers small people most . The rating creases that president obama and the democrats want . Dont increase rates that cap deductions so people will pay more than what the republicans want or is it spending cuts from government . Which of those three is the toughest . The most important issue is what the tax rates are going to be. All Good Business people make decisions on aftertax returns with you are looking at a worker you are going to hire or a new piece of equipment or expanding a business you look at the aftertax returns, that goes down as tax rate marginal tax rates go up. That is the big issue. Dennis if my marginal tax rate stays the same but i cant hire tax bill because they kept my deductions arent i still going to not bought a welding torch i was going to buy . That may be. You made me pick one out of three. Dennis the thing we are worried about, there are things you say they can do. They should wait on spending but tell us about changing their tax filing status. One of those things we are going to see is a big difference between the personal marginal tax rates and the Corporate Tax rates which allegedly are going to be lower to make as competitive internationally so over the past 37 years we have been collecting data we have seen people switch back and forth. It costs money to change your status but the difference between tax rates gets big enough people will do it so we will see people switching from Sole Proprietorships into corporate status so they can take advantage of lower tax rate. Dennis Something Like two thirds of balls business profits are taxed under personal rates will go up among the biggest smallbusinesses. I heard from a wealth manager today who said his business, state lawyer businesses are jamming on Business Owners trying to transfer wealth to their kids to avoid all the new taxes coming. Are any of your Small Business guys talking about that . They probably are. We dont ask them monthly information about that but obviously there is a major change in the death tax that looks like it is going to be on the rise in. You get 5 million exemption down to 1 million and rates go up to 50 . Anytime you can make that transformation of the lower tax rate you will take advantage of that. Dennis are we going to go over the cliff or not . The odds are pretty high that we are. If you look at the lines being drawn on the sand, the president campaigning and proposals dont look like they are negotiable from either side. Dennis one upside, the way federal guideline either party will make some real cuts because they have no choice. Thanks for being with us. Cheryl we will switch gears. Maybe time to cry, the farm bill has expired and congress failed to come to an agreement on a new one. Lawmakers are pushing to include the bill in the fiscal cliff deal. Jeff flock live in woodstock, ill. With the details. Jeff we talk so much about the fiscal cliff we have forgotten that a farm bill is not getting done either and not only has it not gotten done but the old farm bill expired. A Dairy Cooperative in michigan, because we dont have a farm bill, what could happen in the next week to month . We ritter back to the old farm bill of 1949. We referred to the permanent law 1949 and january 1st which could mean a double crisis for the consumer and double crisis for the producer. Of a great thing. The government by law would have to pay terms of the 49 law which would double the price of the milk the cows put out. It is crazy. It is. Definitely. It is not good for anybody, the consumer or the producer. Take a look at milk prices, trending down lately if we look at them, corn prices have stayed high. You already had enough trouble down on the farm. You cant get this done also with the Senate Passing a bipartisan farm bill house has passed a bill, theyre not that far apart. It seems to be a nobrainer to me. It is a much improved safety net for the dairy industry, better consumer, save the taxpayers money. What is killing it is the Food Stamp Program is part of that and theyre fighting over how much to cut, both sides agreed to cuts, a question of how much to cut in farmers are caught in the middle. Cheryl great stuff, jeff flock, thank you, appreciate it. Dennis 50 shades of coin. 50 shades of gray sold fiftyfive million copies and a new porn film playing off of that popular novel the target of a major Motion Picture studios lawsuits. Cheryl a different story in the middle east, protests are growing in egypt. Wait until you see what happens tomorrow. Those opposed to president Mohammad Morsi making their voices heard. Dennis lets look at ten year treasuries. Tracy i am tracy byrnes, markets are searching for direction as investors look to washington for the latest on the fiscal cliff negotiations. Right now the dow is down 9 points. Aaa joins the controversy surrounding the new blend of gasoline containing 50 ethanol. The nations largest Automobile Group is urging regulators and fuel producers to stop selling it. Trading potential for consumer confusion voided warranties and vehicle damage. The Environmental Protection Agency Approved the blend in june. Apple is looking to take a bite out of the Chinese Market with Consumer Electronics heavyweight announcing the i phone 5 will go on sale in china december 14th, the ipad mini and fourth generation i had become available december 7th. Of these products are sold in 40 countries. The latest from the Fox Business Network giving you the power to prosper. And personal attention. Which is why we are prou to partner with health care professials who understand the difference that quality time with our members can make. Thats a very nice cake ohh [ giggles ] [ male announcer ] humana thanks the physicians, nurses, hospitals, pharmacists and other Health Professionals who helped us achieve the highest average star rating among National Medicare companies. And become the first and only National Medicare Advantage Company to achieve a 5star rating for a medicare plan. Your efforts result in the quality of care and service were able to provide. Which means Better Health outcomes. And more quality time to share with the ones who matter most. I love you, grandma [ male announcer ] humana. Call this court battle 50 shades of corn. Comcast Nbc Universal of small film porn peddlers of for of corn version of 50 shades of gray, universal making a legit movie viewer callin that based on a huge selling book that universal says a koren rep off. The latest effort. Zynga zapped by facebook, the farm bill game maker suffering from the social network which will have the right to develop its own games never mind it has no plans to. Zynga shares down 8. 5 on that news. Read between the lines of a profile of cbss chief in the wall street journal this morning, the good and bad news, cbss king of broadcast tv which based a threat to get down 10 this season in ratings, the audience down 20 but between the lines this follows profiles of his big rival, the ceo of viacom. Cbs and viacom control redstone, now 89 years old, in the drivers seat, and campaigning for a shot at the seat. Cheryl thousands of protesters are gathering in egypts Tahrir Square falling egyptian is longest rushing through and approving a draft constitution. Steve harrison joined us from cairo, egypt. The moves by the Egyptian Government to put through a constitution, rush it through in one night was aimed to calm these protests on the rig on the street the the reverse has happened, the opposition appears more energized right now, the largest press we have seen in days. The draft constitution has been criticized by opponents of the government who are concerned about protection of womens rights and concerned about a role of islamic law in egypts legislation as well. What we are likely to see besides a large protest today will be a protest in support of perhaps president Mohamed Morsi tomorrow. Both sides evenly divided and calling on followers out on the streets to make their debt as street protests and unrest continued in egypt. Cheryl it will be an interesting weekend in cairo. Thank you very much. The fiscal cliff pushing private equity firms to take a waitandsee approach as they sit on piles of cash. Robert gray joining us in an exclusive interview on what it takes to get the mouth of the sidelines. Robert the founder of seers capital group, thank you for joining us, you raised more money than you advertise, 650 million in the latest round. Congratulations, thank you for joining us. Fiscal cliff, how is this affecting someone in the private equity world as you sit on this pile of cash and look at 2013 and dont know what tax ritter going to be, lot of uncertainty, how do you plan for that . I dont think private equity is different from anybody else out there. We all want to see what is happening. You heard a lot about and seen the shows here about Business Leaders trying to get to congress and get some momentum on this. I think people have a real concern that we are not going to see the kinds of solutions we need in the long term and so that has held off investing in new businesses as well as the nature of the economy today. What has been happening in europe, so people believe there will be resolution and resolution look more favorable to them, they are going to wait on making decisions around investment. Dennis we are not expecting activity before the end of the year. It is almost december, a pretty slow time. A lot of activity in the middle market where you are. 500 million deal in the third quarter. You said this was in anticipation of the cliff situation. As we look to next year, taxes going up as we sit here today, money is cheap, the fed pumping cash in. Will we still see dales if taxes go up or will it put the brakes on things . You hear a lot of things about taxes. The middle market it is more severe and most of those are run by entrepreneurs, frankly having either dividend taxes jumped up to 43. 5 and personal taxes go up, that is important. We see a lot of those activities and you have also seen a lot of big Dividend Payments and that will continue through the end of the year. If you havent planned to sell before today, you are not going to get anything done before the end of the year. If you havent planned financing you are not going to get that done either. Theres a lot of cheap money out there but the reality, cheap money means low growth and people are worried about growth. Dennis we have seen some pullback. Are you rooting for a pullback . Knowing what the buyout is at the top . Depends whether i am selling or buying. I would like more robust markets but the reality for us, the way we invest, it is driven in eager specific industry much more of a fundamental approach and we think over longerterm we can get the value so timing is important to us. Quite frankly even taxes because most of our money is from institutions or state Pension Funds that are indifferent to taxes. They dont pay any and my obligation to them, not to myself. As a result my behavior could be a little different. Dennis thanks for joining us. Sending it back to you. Cheryl thank you for that interview. Every 15 minutes it is about stocks now. Loren is watching ups. They are busy over there. It is trying to keep a 6 billion deal with at t express alive so the european antitrust regulators with that, submitting plans to the e. U. And what they are playing as they will sell assets and open their air flight operations. We will see if that is sufficient enough, stock is down 4. 8 for markets overall, also a down day, nothing tremendous but still seeing a lot of red on the screen. The range for the dow industrials 60 points from the i to the low of the session, narrower than we have seen in recent days and it is the last day of the month so you can expect some volatility and not seeing much of that although the vix is a little bit. Cheryl we will see you at the top of the hour. Power ball, i am obsessed with power ball. Coming to the golden state, that is ahead in the west coast minute. Dennis remember this on . Dennis dont worry, be happy. A new study of young people around he world offers a new approach, yes worry, but be happy anyway, detail ahead. Cheryl the San Francisco fed says every dollar on infrastructure means enough to dollar boosted the economy back to 1990, highway spending and bridge building over time, and the great recession, in that region. Sale behemoth boeing looking to enter federal remediation talks with one of its unions, the 20,000 Engineer Group is no or close to agreeing on issues like a braises and pensions. He walked out on the union. And reach a strike as soon as possible. California panel, brain power ball to the golden state. Complaints of residents if they did not have a shot at the 870 million jackpot. And it has 120 million annual net revenue to the states coffers. That is your west coast minute. Over to you. Dennis remember that song dont worry be happy . A massive study in 2 dozen countries around the world offers a new approach, yes worry but be happy anyway. Viacom Media International had groundbreaking study, and the ceo, and you did this big survey. 70 , personally touched by the global slump. Thanks for having us here today. We believe in research and do a lot of research on a regular basis. We need to understand the audience we serve so millennials are big audience we serve, 30 years old, in tvs the widely distributed brand, billion millennials on the planet and important demographic to understand. The last study was 2006, and 24 countries, roughly 15,000 interviews and all the wraparound data. Out of it came a couple big things. You are not surprised to be worried about the state of the global economy, and theyre worried about unemployment. This is a trend we see across all the countries we looked at. So you see the statistics, 60 feel touched by the global slump. That number not surprisingly is higher in places like southern europe, 85 in italy, 81 in greece, it is still 71 in the u. S. So a big concern there but the most interesting thing for me that came out of the study is the second point and it is because it is counterintuitive. At the same time you mentioned when we started, dont worry, be happy. This relative to prior studies is the happiest millennial generation. Dennis 76 described themselves as very happy, happy is in mexico, argentina and brazil and only 33 say they are stressed, affected by the slump but 33 feel the stress. Must be good to be young, are we more stressed out than that . The reality is they are very comfortable with their lives, they love their parents, they love their friends and feel more connected than ever and that is helping with their happiness quote and if you will. They are less worried about driving a great car or being rich. They feel comfortable with life they live. Dennis the market will go to a more personal homey pitch and spend more money on viacom networks. The the the upshot of your study of 15,000 people. That is right but seriously, this upbeat generation, marketers should be marketing to them. They want to consume. Dennis the older marketers are depressed too. Thanks for being with us, bob backis. Cheryl homeimprovement retailer hiring employees in wisconsin, theres a catch to this story. The jobs are in north dakota. The worker shortage in the booming oil state is so tight that they have to fly 50 employees on a company jet every week to work at this store and they will say in hotels and flown to wisconsin after each four day shift. Presently they at 270 stores in 14 states and the Unemployment Rate of 2. 3 . This is a permanent solution for as far as we can see. Different story on jobs. Dennis i like it. You watch. The irs will try to tax all the stuff theyre giving them to help them travel. Try to tax the income. Cheryl dont worry, be happy. Dennis gas prices up 30 on average nationwide in the past five years. Cheryl how you feel about paying even more at the pump . The new talk of raising the gas tax to avoid the fiscal cliff, melissa and laurie have more coming up on markets now. The dow sinking below 13,000. [ male announcer ] this is steve. He loves risk. But whether hes climbing everest, scuba diving the Great Barrier reef with sharks, or jumping into the marke he goes with people he trusts, which is why he trades with a company that doesnt nickel and dime him with hidden fees. So he can worry about other things, like what the market is doing and being ready, no matter what happens, which isnt rocket science. Its justommosense, from td ameritrade