Weekly knight kiinger kiplinger letter remains aa success. While it continues to tout conservative economic views with progresse socicial views. Joining me, knight kiplinger. Welcome to washington business repo. Ur family is an ititution i this town. How do you take such a valued brand and family name thais synonymous wh what you do busine news protect the brand, andeep it fresh . Knight you have toto keep innoting. You ha to keep growing. You cannot stay in a rut. Are in usual in combining properties sustained by ping subscribers yes, they are still out therere with new media. They coexist under the sam roof. They suprt each other, andnd they are both doing very well. Rebecca how do you convince subsbscriberers to continue to pay for the cmodi that so many use and even financi subscribers believ thahat information isis out thereor free . Knightht there has to be some differentiating perspective. Our weekly letter, it haa uniq perspecectiven the gornme, on taxes. We are n in the e news b busins. We areot telling happened. You can get e busisiness news, financncial news anywher but for kiplingngers w will consider judgmt on w what lies ahead, 200,000ayin subscribers in management think our weekly forecasting letter and tax letter r are important to them and worth p paying 70, 80 90 more, and ls their hearts, they are willing to pay for quality information. Rebecca what is it that you say to them that convinces them it is valuable information . Knight we do not keep score of hits and mses, but we e know that our readers do. Our renewal ratesre an annual referendum on how well we serve those readers. We do not have a crystal ball. They know we will not get everything right, but when they look back at the year ahead, the year behd, they say, i got a lot of lue t of that subscription this year. There are things that hehelped me manage my enterpse better. Recca who really dre thatat as a company in rms of pushing wards the digital age and already successfu bnd . Was there a sense in the company, if it ait broke dont fix it . Knight there was a point where we were all mesmerized the internet. We all made theistakeke of givingway too much infoationn for free. Now we are trying to put the free genie back in the botottle. Rebecca yet no one hahas found the perfect forla. What formula a you working under right now, and where do you see yourself . Knight rightow the leadership the unique readers at kiplilinger. Com are growing so rongly with free content and ad revenue igrowing so strongly attracted by those eyebls we are not charging for the content on our w website. On the other side of the shop, the business forecasting side, pepeople are paying 24 the newsletters. Paying for the newsletters. Rebea as you say, so many compies are trying to put the genie back in the bottle. Do youou ever foresee giving away for free paicontent prices . Knight yes. Rebecccca you do . Knight i think we will begin experimentg with the metering system that the New York Times the Financial Times are experimenting with. You do not want to shock p peoplee with thehe price. But previously free websites, starting to get charges for visirs to those sites. Rebecca you do not think you will hurt adership to o the point that i it becomes a losing proposion . Knight that is what our web pepeople are concerned about. They actually like free. They say we are growing so will buy free, lets not diminish the audience by charging. Wewe have never been an early adopter. We let other people get out ahead and take the arrows and stones frorom the slingshots and see w what works and ease into it. Rebecca something ive heard fr otherer successful busines leadaders, so it must be a formula that works. Tell me about your formula for success. You had to take over company that been will run, well managed within the family improvee your value. You show you were willing to get yoyour boots 30 by being an economic suppoer bos dirty by being an enomic reporter for manany years. Knight i was not for the jonal per se. Same parent company. Rebecca and acc at that what youre talking about, but yoyou nt outut there, rolled up your sleeves, when to work, a and then you took over. What did you learn from the working mans side . When i take e over i am going to bring these lessons to the workplace . Knight things i learned from theld dow j jones the old wall street journal was the staff is the most important. Treatingmployees w well, training thehem with good compensation, good benefits, and more than that, and atsphere of respect, that is the key to good business. I kiplinger, i kiplinger the custstomers and the employees come first. If you take care of your customers and employees first the things will follow. Rebecca a lotf people say tt, but you have exampl. You are profitssharing with your employees. Knight thats right. Rebecca when thingsre going well you share profits. When there are nprofits, the people at the top take the first hit area talk me abt hoyou can pouse this social progressive corporate model and make it work for the bottom line. Knknight it has worked for us for 95 years. Its not altruism. It is progressive self interest. Rebecca what do youain from it . Knight you gain a successful, stablele business. You gain ausiness that moves deliberately, slowly, build conssus u read you gain employee loyalty. Kiplinger, when the hard times hit, and boy, did we have a lot of hard times in the last 15 years thihings start at the top. You eliminate the dividen of the shareholders first. Then senioranagement. Freeze of their sariesefore you inflt pain on the lower employees. Yo g go through a hierarchy of pain, stararting with senior management, then you freezehe pay of everybody, you have to, fore y you lay everybody off. Rerebecca weve got to wrap it up but i want to ask you, your last words to companies who look at that and sa you know, if that r really works, everybody would be doing it. T. Wh would you say to that . Knigight i would say the tyranny of the outside public shareholder inin their focus on shortterm results ruins a lot of good businesses. A closely held familyn company can take a longer ew. It c take a hito the earnings for a y year or two or lolonger and imakefor a very successful, stable business. Rebecca the longest family held Media Company still in production todayn washington d. C. Knight indeed. Rebecca thankfor joining us on washington b business rert. Knht thank you. Rebecca our expert has cards the numbers and has what to expect from the market in the coming months. You may be surprised. Stay with us. Rebecca it is that time of year where yoare probably packing stock reports for your chchip to the beach. You may miss what is going on. With concerns over what is going on in europe, those stocks are outperforming the s p 5 500. Is it time for a course correction in your iesting . To save you moreime in the sand we are bringing the financial analyst to you. Anne Mccabe Triana from curo prate wealth is re and s says there are surpres in the market rig now. And lets talk abobout developed nations. How is it they could be outperforming the s p 500 . We he been told run, dontt walk from european stocks and worry about china. Anne right, exactly. Last y year we substantially are performed the developed international market, so it y be an issue of our market getting expensive and the european markets getting cheaper. They are also about to go into quantitatitive easing. Dont fight the fed d was a big trend here recca but dont just read the headlines. You ha to look deeper. Whatre the curnt numbebers for the international devevelop markets compared to the s p . P . Anne as of friday, your toy out 8 and it s 3 here as of friday. Rebea so, lets start with Interest Rates. What is your crystalal ball telling you . Anne there are a lot of questions, but the biggest is when is the fed going to increase by how much . . Will that stothe bull mket . We are more than six years and tohe bull market rebecca buying hous anall kindof things could impacted. What is e answer . Anne the shorttm Interest Rates go above, long interes above longterm Interest Rates that is a warning sign. Rebecca green light f from you. And with the leadingng econonomic indicators, that is another number. Ananne my favorite. The latest data we havee from may is that the l. A. I was up 70 of 1 ,s solilid increase yearoveryear. Really impornt. What this means is the probability we may go back into recession over the next 12 months is only 4 right now. Takiking pt peormance, that does not guarantee future results. 4 is pretty low. Rebecca there has been n a loof concer about atherecessision. You say right now you think at at very y low probability. Annene t last me i was on, valuatns were one of the indidicators we nt to watch. They are higher than the last time i was on. The ratio onhe s p 500 is 15 just over 20 as ofriday from market close. So definitely one of the five major recession indicators we track. However i wanto remind people the ratio can be elevated for extended peris of time. Rebecca so, you say this time to buy. Were looking at quarterl earningseports. Anne q2 eararnings have started. I am hoping th will take the focus off some of the m more emotional issues like greece in europe and puerto rico and the slowdown in cha and back to fundamenls. I have to tell you, the bar is very low. Consensus is expecting a 3 decline in earnings. I ink if we get a little positive upside surprise, that could be a catyst to purchase out of thirange. Annene good advice. Do not just focus on the media headlines. Thank you as always for joining us. And two Montgomery County businesses, new numbers on the purple becca w wcome back. It is time for the roundtable. Thisis week there were big is this adlines for each major region that makes up the Greater Washington area. Which will matter most to you . Toto go behind the headlines Robert Mccartney and Jennifer Mcconnell are. Welcome to o you both. Jennifer i will let you kick it off with Montgomery County. Two egg businesses there. Jennifer wellknown businesses. We start with discovery. You may remember discovery has picked up p the europe nation ghts for the olympic gameses from 2018 through 20rain two. Discovery is getting the bulk of this revue from International Countries anand affiliatat. Rebecca that is a big deal. Jenner it is a really, really big deal. The other headline marriott. Marriott is in bethesda and they said earlier this year they will be looking to see where they go when their release runs out in 2022 and there are lots of groupshat want to bring them toto the new Pike Community and see if ty can get ththem to move over that way. Rebecca what you think will be the answer to that . Jennififer it depenends. Ththey are rebranding it and they e making g a big push. They want to have amenities for millennialals and they want to push metro. The old white flint d dtrict is making a push. Rebecca robert, you have been following headlines inhe region. Prince georges county with a couple of one that especially surprid me what are the headlines from prie georges county . Robert i think the one you are referring to, the coty executive has quietl pushed to move his offices and the county council rebecca picick up the capital. Thriving largo he is also really now t the one where the purple line now res. Robert leggegett frorom Montgomery County said he would kick in a couple Million Dollars more as Governor Hogan asks to bubud the purple line. Now prince georges is kicking in more, so there are gotiations, Prince Georges County and the state of maryland about how much prince georges contribution will be. Rebecca now they are pushing t to raise minimum wage to 15 an hour. The ceo of dunkin doughnuts came out stronglygainst that. Dunkin donuts says it is a mb idea. Starbucks says they are e doing well. Where will the redskins go . N terry mcaulif after making a big dance for the redskinins, he said, hey, i may not ask Virginia Tech to pay for a n stadium. So, which h of those headlines really stands out to you a having the most impact . Nnifer i am e excited about what discoveries doing. They have found a way a lot of companies were not sure to do. In t this era of cable cor cutting and every thing else they have found a way to bring in more e revenue and keep business healthy. The fact that they are making such a egg push to buy euro sports, it really adds to where they areoing and h they are going to keeeep those revees up. Becca i see this speeding in to thehe limbics coveverage. Anotr will make it happen. Robebert, what aboutut you . Robert there will be a referendum on raising the minimum wage to 15. Is is a big, hot, growing national issue. The e district wl be the first city on the east coast to ha a really b debate about this. Three cities on the west coast already agreed. Businesses will be strongly against it. They will spend a lot money on it. Labor unions, antipoverty groups, and mostst politicians want to be on the side of rebecca b bore we break and come back r the pop quest, i, low, or medidium chancesf that happening questi mark happppening . Robert medium. Definitely not high becae businees will be strong against it. Rebebecca we ll be right baback with thehe pop quiz. Rebecca welcome back. It is time for the pop quiz andd i want to know the answer to th questionongress one the answewer to. Once the answer to. You need to find general manager. Jennifer . W long will it take metro to find a new gm . Jennifer it has been far too long already. I have three words for them. Find a boss. Robert 3 rebecca good. Robert it will take em a monthh to find the person they want andnother 30 two get that person. Recca i think next year. We have a summer series of f the best off coming up. We are proud of this shshow. Make surto stay tune for all our upcoming bestst of washington business report. [captioning perfmed by the national captioning institute, which is responsible for its caption content and accuracy. Visit icap. Org] morris Government Matters this week on this week on Government Matters we literally have not done anything. Mois as Congress Ways a nuclear deal with iran, lawmakers addresess the Nuclear Threat of an electromagnetic pulse. These figures have been vetted. Morris a new and frightening advancement in cyber theft. Hackers steal more than one million fingerprints in the opm data breach. This is a great deal for lockheed maredtin. It gets them in new helicopters. Morris Lockheed Martin will spend 9 million on aircraft and major components of its government i. T. Business. Government matters starts right now