Months. Has it finally turned a corpser . Speaking of corners, we have switched corners, tyler, the gentleman that he is, is braving you the snow and the ice in new york city and he is down on the floor of the new york estock exchange. A mucky day. Not since 2008 has it been so high. More evidence the housing recovery is taking root. Prices rising in the big cities but a warning we may head into a recession next year if the u. S. And europe dont solve their fiscal messes. Right now the dow industrials a built of a breather down 21 points. Meanwhile, 34 days to the fiscal cliff. Will a deal be done in time . Today, president obama meets with Small Business leaders to make his case for the possibility of higher taxes ahead. Our washington correspondent, john harwood, is here with the very latest. Hi, john. Reporter hi, tyler. You know, everybody is staking out public positions and trying to drive Public Opinion their way. The president s been doing that all week. He is doing that with his meeting at 2 30 this afternoon with Small Business leaders from around the country. He is later going to travel to pennsylvania to make his case publicly, part of what he is saying is that if you adopt his plan on the extension of the bush tax cuts that is for the middle class and not for people at the top that almost every Small Business owner is going to get a tax cut as a result of that. And republicans are staking out their own position that tax revenue can go up but not tax rates. Once they get into the room and the hard bargaining which of the positions ultimately falls away. The signs remain positive, tyler, we will get a deal by the end of the year. The president just half of the equation. Congress is the other half. And many of those members, all in the house, are up for reelection in just two years time. They have got to be careful, dont they, on how their constituents view all of this, whether they are in the gop and averse to raising taxes or in the Democratic Party and averse to cutting benefits. I can tell you from having visited John Boehners district north of cincinnati last week the fis cliff maybe an abstract discussion here in washington but out there in southwestern ohio, if we tip back into recession, the economic pain would be very real. Middle town and the rest of southwestern ohio has been working its way back economically from the longterm loss of manufacturing jobs and troubles in the auto industry. The last thing this area needs now another economic setback from the fiscal cliff. House Speaker Boehner and his colleagues in the congressional leadership have founded conciliatory notes about their prospects that sounds like good news here at the local chamber of commerce here in middle town but only up to a point. I want to be confident. I want to be optimistic but no i think i would rather be veered at this point. Reporter one of the speakers constituents, steve hightower, has a Petroleum Distribution business, like the economy is doing well. He has known boehner for years and believes the speaker wants to make a deal with president obama to avoid the fiscal cliff and impact on families but also seen washingtons disfunction and has his doubts. Somewhat just like the president , time to go ahead and do your job. Reporter Speaker Boehner is secure enough in his own district here north of cincinnati i75 that his constituents will give him a freehand to negotiate. His bigger challenge is pulling together republicans from districts across the country behind any deal he ultimately strikes with president obama. The next four weeks that is the challenge john boehner, eric canter, and candidates on the house and senate are going to find. How do you put together a deal that not only the leaders agree upon but members of the caucuses can give majority to us in both houses . Indeed, john, thank you very much. Meantime, some important Economic Data came out today and if you were looking at it expecting to see signs of worry about that looming fiscal cliff, you might be surprised. Steve liesman has been analyzing it. It doesnt seem to show an economy that is all that worried about whats like ahead for us. Not on the consumer side. Before we have seen the consumer doing well, oblivious to the cliff but measures of Business Sentiment declining because of the cliff. Today, consumer measures continue to look pretty decent and business measures came in not too bad, pretty decent. Look. Durable goods up changed, we expected them to be negative and Business Investment up 1. 7 . Consumer confidence up, not too bad a number. Chain store sales for the week ending saturday, including black friday. The best saturday or week ending saturday after thanksgiving that i could find back to 1990. Caseshiller home prices continue their march upward. Look at Consumer Confidence and the cliff. I want to show you the twoyear chart heerz that dip you see in the middle of your screen there, that is the last debacle, the debt ceiling debacle. Cant see it here yet. So you dont get excite about the numbers, give you a longer view whether it should be if these were normal times, see there off to your left, 85s, 90s, 100s that would be real healthy Consumer Confidence. Deutsche bank warping today if the fiscal xlif not properly dealt with, consume could be in for a rude awakening. Cliff is ny dealt with, consume could be in for a rude awakening. Third quarter gdp on thursday. A little bit of sandy and a little bit of fiscal cliff in this 1. 2 to 2. 2, those are the forecasts i have seen so far. Do you think perhaps the consumer is not reflecting the fiscal cliff issues because the last time, we keep going up to the edge of the cliff and then things get things get resolved . Its a good question. It strikes n s me that looking at the debt ceiling debate i think consequences were equally stark but more easily understood, people anticipated that and more bad stuff in the economy. The Consumer Confidence numbers showed that job prospects looked good, home buying intentions look good, a buoyancy to the consume theyre wasnt there. Wasnt there. Face the debt ceiling. Yeah. Thank you, steve. Sure. As always. If you want more on this special coverage that we have, the crisis is in a special section of our website, riseabove. Cnbc. Com, check it out. It has some terrific information, ty. Breaking news now from the bond market. Twoyear notes up for auction. You saw the results flash across the screen a few moments ago. Rick santelli breaking down the action from the cme. Hi, rick. Hi, tyler f on the fiscal cliff could get such a good grade, aplus on a twoyear note auction, 35 billion worth. The yield was. 27, which was the offer side of the one issue market, 27 1 2 was the bid. So, price title f we look at the indirects, they were 34. 4, a little better than 31 ten auction average. Last month, directs had an alltime record 38. 2. This time, 23. 6. But well ahead of 15 on a ten auction average. Heres the beauty of this auction. The bid to cover, ten auction average around 380 came in at 4. 07. Over 4 chasing every dollars worth of two years available that equals one year ago bid to cover and i couldnt find a hire one in my 22year database. So aplus for the first of three auctions totaling 99 billion. Sue, its all yours. Rick, thanks, ill take it. As you may know, European Finance ministers did reach a Debt Reduction deem for greece, open he can the door up for support of greeces teetering banks. Thoughts now on that deal from our guest with jpmorgan funds, more than 1. 3 billion in assets. Good tough back. Thanks for having me. We are going to talk later with you how to invest against the environment we find ourselves in now this deal greece has reached, do you have confidence that its enough, basically shore up the banks to get them enough down the line . A step in the right direction. We knew the last time wed restructuring it wasnt going tonight end of t if youre asking me are we completely now through and behind and is this whole greece saga and debacle behind us, that im a little bit concerned of. You have to find a way to help these economies and peripheral europe grow i think a lot of these calls for austerity needs to be pawed, abandoned. You need to talk about more debt forgiveness, possibly grants rather than loans. These are steps in the right direction but again, i think we will see over the next year. How easy is it going to be to get growth into the equation, given where they are now . Incredibly difficult. One of the things you can do right off the bat is recognize when your economy is in a very, very severe recession, practically depression, just call it what it is, raising taxes, cutting spending and laying off more Public Sector workers isnt going to be the solution. What you are doing there enforcing all this us a ter sit pushing many of these economies deeper and deep near the hall. I think the calls for austerity, may make sense in the long run need to be pawed, have to find a way to help these economies return to growth and then start easing in these austerity measures. Joe, we are going to talk later about the fiscal cliff and how to invest here at home and globally as well. See you in a few minutes. Now to courtny reagan with a market flash. Hi you court. Hi, suit. Shares of monster, a company we have been watching closely, of course, the controversy involving the Energy Drinks, shares ring off the highs, still up almost 12 1 2 . Goldman sachs says that the fda response to letters sent by two senators on the safety of those Energy Drinks will likely be benign as far as regulatory concerns go. Facebook shares have been on a tear lately up more than 30 the past couple of weeks so has the social media giant finally convinced investors that its worth a second look . Plus you can the chevy volt still struggling to make inroads with buyers but gm now doubling down with a big bet on electric. Phil lebeau live at the l. A. Auto show. Phil . Im sitting in the allnew chevy spark ev. At a time when electric car sales are struggling in the u. S. You is this the right time for gm to roll out an allelectric compact car . That story coming up on power lunch. Sfx sounds of african drum and flute look whos back. Again . Its embarrassing its embarrassing we can see you carl. We can totally see you. Come on youre better than this. All that prowling around. Yeah, youre the king of the jungle. Have you thought about going vegan carl . Hahaha you know folks who save hundreds of dollars by switching to geico sure are happy. How happy are they jimmy . Happier than antelope with nightvision goggles. Nice get happy. Get geico. Fifteen minutes could save you fifteen percent or more. Shares of General Motors today, as you see, down two pennies there 25271 despite weak sales of its chevy volt, a good looking car, the automaker doubles down on electric by unveiling a new model. Our phil lebeau is behind the wheel at the l. A. Auto show. Phil . Tyler, we are going to see more electric vehicles coming from gm, starting midmiddle of next year this is the new chevy spark ev. When you look at the chevy spark, saying to yourself, looks like a little compact car it is the first Pure Electric car from General Motors since the ev one. It goes on sale in california and oregon only, middle of next year. Gm expects the press point to be somewhere around 25,000. The allimportant question, what is the range going to be, how far will it go fully charged . Gm is not saying at this point, only it will be competitive with other electric cars. Speaking of other electric cars this market is struggling now look at auto sales through september of this year. 73 , almost 8 million vehicles in the u. S. , are gasoline powered. Still a predominant source of power train in this country. Hybrids, 279 , 300,000. As for Pure Electric, just 8,289 Pure Electric cars sold in the u. S. Right now. Take a look at shares of General Motors in the last year. If you were a gm investor in the last year, up 24 . A lot of people talk about gm ought to learn what they are doing at tesla, tesla leading the way with electric cars. Gm versus tesla, no comparison, gm up 24 , tesla up just 1. 4 . As i said at the beginning of this report, you will see more electric vehicles coming from General Motors the next couple of years. Tomorrow morning, first on cnbc, squawk on the street, talking with mark roy, the head of gm north america, not only about the spark ev, tyler, but gm doubling down on electric and extended range electric vehicles, believe this is the market to be in the years to come. What do they base that an awful lot of taxpayers still with a stake in that company would be skeptical saying why are you doubling down on a Car Technology so far done nothing but louz money . Their belief is that in the long run, it will pay off. You bring up a good point, tyler. Going to be a lot of people who look at this and say listen, the vol has not lived up to the sales expectation bus youre going to be selling it soon in china, expect seams to ramp up there cadillac an ev. Why make all of this vernlgts you talk with dan ackerson says emphatically evs are the future for this industry, maybe not this year, maybe not next year but down the road, why they continue to invest in electric cars. Thank you very much, phil lebeau in los angeles for us today. So, what do you think of the electric car . Go to finance. Yahoo . Com results coming up later on power lunch. We are watching facebook. The last two weeks, 10 , 25 the past two months. People thinking facebook has turned a corner. Julia boorstin is in los angeles with details on that. Hi, julia. Hi, sue. Even with some new privacy concerns, things are definitely look up for the social network and the stock is holding on to the gains the last two months. Two of wall streets most bearish analysts have turned to bulls, bernstein and btig upgrading the stock in expectation of a surge in mobile ad revenue, facebook has to walk a delicate line. More ads good for the bottom line but could turn off users. Facebook survived the biggest lockup explorations without a flood of selling. Instagram, 10 million photos uploaded over the weekend. The fad growth the acquisition was worthwhile and facebook building new revenue streams, yesterday, part energy with apples itunes for the gift service. Facebook does face growing privacy concerns after proposing some new policy changes to advocacy groups just yesterday urged facebook to withdraw some of those changes. We will talk more about those privacy issues and how facebook is handling them, a topic face book is familiar with coming up on street since. Sue, privacy is something facebook know it is needs to keep it in check. 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Part of a whole new line of tablets from dell. Its changing the conversation. The markets are treading water, the dow industrials down 25 points, 12,941 nasdaq barely positive, less than three points, 2979. The s p 500 has ticked negative by a third of a point at 140597. Kenny poll carvey with us, independent trader here at the new york stock exchange. Lots to talk b i want your advice here. I win powerball and win 425 million what do i do with it . Put it in the market . Had take the opportunity, stocks go on sale again, very frustrated with the lack of development out of washington. You cant imagine in the next 17 days, because on december 14th, they are all going back home for the holidays and all that stuff, they are going to come to a real deal. Your thought is churning, more of the same. Follow the headlines a little bit. Nice words from one guy, goes up. The money they Say Something the market produces positive, everyone runs for cover because they are afraid. The fact is if they come with a deal, something thats realistic and reliable and the market believes, this market will take off, shorts will run for cover. If the market sees a punt . Will punish it, express its dissatisfaction. The time for me to buy with my 425 million . The longterm investor should not be running away, he should you can taking advantage. Stocks will be on sale, right . The minute macys holds a sale, everyone runs out and goes shopping. Stocks on sale, you should buy. Potatoes and negotiation the recipe today. This is the we are playing hurt edition, mines not as bad as yours, i can put mine down. Jeff killer, cnbc contributor. We will drill down on thing, m and a action, conagra is buying ral core, what do you make of the deal . People feel it is a good deal for conagra because the ral corps space is the only place available. This activism theme we have seen talking about power lunch in 2013. Actual acceptance price was about 107, not 90. Exactly. Quite a bit of premium put into the deal. Lets talk about oil. Because this is a phenomenon that you have never seen. No one. No one has seen it hasnt happened in the history of oil trading. Tell us whats happening with brent crude now . Brent crude the first time is take over trading contract. Now the most traded commodity future in the world. Ever since crude oil, wti here domestically as well as brent oversees taking over, a lot more relevance than seeing spread between these two contracts way lot of traders look at, above 20. I think that all stems from the geopolitical tension the lack of supply potentially out of the middle east. We have conagra ceo on cnbc with jim cramer tonight on mad money. Thats at 6 p. M. And 11 p. M. Eastern time. So you dont want to miss that Courtney Reagan has a market flash for us. Court . Thanks very much, sue. I know you were talking about the oil markets earlier. We have a connection for you here at the market flash. Look at rowen, offshore contractor drirl, the company did issue its monthly status update with regardses to threga did issue its monthly status update with regards to its rigs. Consumer confidence rebounding, new highs, multiyear highs, housing on the road to recovery in many cities. Greece reaching a deal but fears about the fiscal cliff do persist. Whats an investor to do . You heard kenny polcaris advice a minute ago. We have more than 1 trillion worth of Investment Advice on the other side of our break here. The powerball, the rest of you can go home, im going to take home that had 500. How would you invest that kind of money, next. With the spark cash card from capital one, olaf gets great rewards for his Small Business pizza [ garth ] olafs Small Business earns 2 cash back on every purchase, every day helium delivery. Put it on my spark card [ pop ] [ garth ] why settle for less . Great businesses deserve great rewards awesome [ male announcer ] the spark Business Card from capital one. Choose unlimited rewards with 2 cash back or double miles on every purchase, every day whats in your wallet . Can i still ship a gift in time for christmas . Yeah, sure you can. Great. Wheres your gift . Uh. Whew. [ male announcer ] break from the holiday stress. Ship Fedex Express by december 22nd for christmas delivery. [ male announcer ] tis the season to discover the kid in all of us. Enjoy Free Shipping and great values on your Holiday Shopping from l. L. Bean. Gold prices closing now and a woman who loves golden dome, Mary Thompson at the nymex. Mixed picture in the metals on exploration. Tuesday, gold prices settling lower as a december options expired today. Traders calling it a fairly quiet concession. A lot of the movement directed by the dollar which strengthened as investors started to question that greek debt deal. This kept pressure on the precious metals, the long term, investors becoming bullish. Speculate verse increase third bullish bets not only on gold but silver and palladium as well. Keep in mind that traders are keeping their sights on 1800 for gold. They say a number of reasons support this even note precious metal has failed three times to get through those levels. This is what they say on this basically supporting golds move, a gold move to 1800, concerns about the middle east, concern about the fiscal cliff and concerns that we are going to see topped easing over monetary easing over in japan. The rest of the metals market, saw a little bit of a bull back in silver. Palladium the best performing metal today. Back to you. All right, mary. On a day like this bob pisani it is easy to look at the overall averages say, not much happening. When you look beneath the surface, you unearth interesting stories. Something going on, moving up again in the Home Building stocks, great numbers from case shill they are morning. Overall, home prices continue to improve this is month after month, overall the third quarter, 3. 6 , home price up 3. 6 compared to the same period last year. Every part of the Home Building metric system is improving month over month. Thats why we are optimistic on Home Building, same situation with autos, by and large. There is the home builders, nice day improvement. Another group moving up, utilities, remember sold off heavily, concerns about higher taxes on dividends. Finally now, getting a twoday bounce, the first two day bounce since the election we have seen in utilities, this is the one we have all been looking for, a sign of some kind of bottom, optimism on the fiscal cliff. Same situation with telecom. They bounce, started improving several days prior to this, started putting together a couple strings of updates. Biggest story of the day in my opinion the greek deal. Can you believe the deal they made . Not saying they took the European Union to the cleaners but imagine this, ten years, no Interest Payments for ten years. 15year extensions on the debt. I want to go to the European Union and refinance my mortgage. I made a deal, instead of 30 years, i have a 45year mortgage, i have lower monthly payments, instead of 3 interest rate, i have a 2 . Here is the best of all no Interest Payments for ten years. Can i get this deal . I want that deal. They are essentially not going to pay the debt back and if they do with devalued your rose. They are going to devalue the euro years down the world. From the moral hazard point of view, a terrible deal overall but very clever because it puts greece sort of back in the camp, now buddy buddies again and got answer credible deal. A good deal. If you are happy about wanting to keep the euro together, a good deal. Go uptown to nasdaq, which is basically hugging the flat line right now. Bertha comes is there. Hugging the flat line, tyler, but fractionally positive, fractionally positive for the month. Nasdaq looking to turn positive here after the big tumble last month. Research in motion, today the worst performer in the nasdaq 100, best perform other is far this month a lot of folks starting to feel questionable about the blackberry ten launch in the new year. Tablet wars continue to show, apple dominates, according to abi research, ten straight quarters, they continue to be the dominant force in tablets. They are losing market share to android and to some exstent to amazon as well. Today, the biggest gainer here on the nasdaq with a monster 41 million shares traded already today r today, acadia pharma, drug trial results positive on drugs to treat parkinsons disease patients who suffer from hallucinations and psychosis. Apparently some 40 of them at some point do suffer from that back to you. Thank you very much. Wow, quite a chart to take a look at. Our guest now believes the market, will be held hostage until a deal on the fiscal cliff is reached. Joe tannious is back with us you can Global Market strategist at jpmorgan fwunsd 1. 3 trillion under management. Your sentiment is being echoed by so many very many people on the floor that i talked to and around town, saying that the markets basically are being held hostage at this point. In the end, the devil is always in the details and is this deal going to be reached between now and christmas, which would be the best Case Scenario at this point . What i try to help investors understand as we travel around the country and the help people talk about this if you believe rationality in the end will prevail, safe to assume there will be a relief rally on the back end of this. For that reason, as i hear all these people ask, should i be out of the market earthquake get out of risk assets, the answer is absolutely not, you need to be in the markets, maybe concern about the volatility and choppiness of it, think about how you can maybe shift your portfolio and be more defensive. So, give me is that one of the reasons why perhaps utilities are bouncing recently, because people are looking for that safety and also the yields, of course . Exactly. You look at the dividend yield, utilities or tell come, clearly with Interest Rates this low where are investors going . Utilities, telecom, into mlps, high yield emerging market debt, all these areas will continue to be in a bid. What i think of from a Sector Allocation standpoint, what i think the next month and a half in the markets, i think of the lower beta areas, utilities and telecom one of them. What would you stay away from . I luook what is going on in europe, see big steps in that right direction. Bob pisani loved the greece deal. A great deal. I like the idea of going to the troy ka and ask them to reinnocent mortgage. How much of a typical portfolio do you think you would allocate into highyield asset . Ultimately depends on the individual investors and how they view sort of risk and what their risk tolerancesome if you are looking for income, if you are look fork a high yield, you know, highyield play in the bond market, between and the emerging market debt, quite honestly, one of your only plays. I think spreads have narrowed considerably. You know, the majority of the that opportunity is probably behind us, however, there is an opportunity there just in coupons, if and when Interest Rates actually start backing up, high yield, generally speaking, moves a little bit closer to the equity markets so i think you will be a little more protected there. In terms of the international arena,s mentioned europe bothers you, an awful lot of focus own asia and china and whether or not really they are going to be able to engineer their way out of this given the wait shanghai index has been performing. Are you at all worried about the asian markets and the impact on the u. S. Market . We look at equities is and the debt in the emerging markets, we think there is an opportunity there we look at the Economic Data coming out of china, clearly disappointing the past couple of years but there are a lot of signs lead us to believe you are starting to see a bottom there and growth should start mixing up over the next couple of quarters. You look at chinese equities grocery out of favor, extremely depressed. Opportunities getting n as the china engine starts to reignite, a followon effect on many economies across air shantsd developed world. Joe, pleasure to have you with us. Joe tanious. Tomorrow on power lunch, the black swan himself will join us, oneonone with the controversial thinker about wall street, washington and which Global Markets we should proceed into perhaps with some caution. Black swan author nassim taleb. A conversion to and interesting guy. Should be an interesting conversation. Powerball jackpot now worth 500 million. Advice forth future lucky winner, that would be me, is on the way. Plus, a washington insiders view on why going over the fiscal cliff might not be so bad for both sides. We will rise above, next. Powerball jackpot now worth Powerball Jackpot now worth at merrill lynch, we understand the importance of your goals. Today, our Financial Advisors lead from a new position of strength. Together with bank of america, they have access to more resources than ever before. A steadfast commitment to help you achieve your financial goals in life. Thats the power of the right advisor. Thats merrill lynch. Welcome back to power lunch, im courtney real when a market flash. Look at shares of adt corporation, the Home Security monitoring service. You are seeing shares trade just off the highs of the day but right now, in this day, the shares have hit the alltime high, spun off from tyco on october 1st. The Company Reported inline earnings, revenue slightly missing the streets expectation bus approve afghanistan 2 billion buy back. The clock ticking down to the fiscal cliff there is some noise in washington that perhaps going over the cliff might be the best sort of tactical solution for both sides. So, how could it benefit democrats and republicans . Andy friedman is a principal at the Washington Update and one of americas top Business Lawyers and savviest political observers. Andy, welcome back. Nice to see you, tyler. Thanks for being with us. Talk a little bit about entitlements. We have talked about taxes and riff new raising and so forth, but an article in the times today about how difficult it seems to be for democrats to find the yield points on entitlement reform. Talk to me about that. Thats true. You heard the democrats today saying maybe we wont touch social security. That systems okay. We dont need to do anything with it now. Maybe we can if i had al little bit with medicare but these are points very difficult if you take medicare and medicaid off the table, then you got to do it three ways. You got to have entitlement reform, increased revenues, it seems and almost everybody says this and economic growth. Correct. Exactly right. You country have a deal if you dont have medicare at least on the table and probably medicare and social security. And frankly, youre not going to get a deal on those this year anyway. The sometime too short. This has to be something that comes around next year. Whats wrong with the idea that wealthy beneficiaries of medicare, i am seven years away from taking it. Dont look like it. Thank you, man. We shouldnt have to pay more. Shouldnt i . I think theres some truth to it that part a of medicare, the catastrophic coverage is free, if you will. We pay for it during our lives and dont pay anymore after we are retired. Simpson boles suggested that, have wealthy people pay for some of that coverage . Makes perfect sense. One of your theses here is that both sides, democrats and republicans, have some sort of tactical incentive to taking it us over the cliff. I would like you to play that out and put a handicapper or odds on that happening. Start with the republicans that is an easy one so many of the republicans signed the norquist pledge saying they will never raise taxes. That makes it hard for them to vote for any compromise that includes a tax increase on anybody. And the president has stayed this thats nonstart fer we dont do that. Thats got to happen. You go to next january, now taxes have gone up across the board on all americans, republicans come back to washington and say we are going to reduce taxes back to the 2013 levels for people under a certain income level. Thats tax reduction. Thats consists with the pledge. So the rates end up where they would likely have been anyway but it avoids the terrible thing of voting for a tax increase . Correct. Why would democrats go along with it . First of all, i dont think anybody wants this, it is bad for the markets to carry this over, january tough time to get this thing done, from the democrats perspective they gain political coverage here, you end up with sequestration, which nobody wants, terrible cuts to social program, terrible cuts to defense. Lets get a better deal. Lets push it off. Democrats get to say okay, these were these awful cuts that we had. Now we can do some smart restores. Exactly. That helps them. One quick thing. Those other restores not immediate, for people und airport, of 55, we push off the cliff. Thaunchts very much r great to be with you. Have you again back soon. Now to Brian Sul Vap whats coming up on a very special edition of street signs. Hey, bri. Yesterday we showed you the third best city for the stock market the past year, that was state of rocky, the city of brotherly love, philadelphia. Today, we are in city number two, the second best returns in the stock market over the past year and i nose my shot looks a little bit bizarre and boring but i can assure you that what is around me is very, very cool. We are going to show it. We are going to show you the city. Introduce to you some of its business people, including a ceo of a company that is closing factories in china and bringing those jobs back here. It is a recovery road trip special, day two on street signs, coming up live from you got to tune in 15 minutes to find out. We will be there, brian. Thats ease. Thanks, buddy. All right. Doubt san jose and jon fortt for breaking news. Jon . Sue, hp has responded to the letter that mike lynch released this morning. Mike lynch being the founder and former ceo of auto mir, the Software Unit hp bought and said last week had a number of Financial Reporting issues. Mike lynch challenging that in a letter this morning, saying that he rejects all allegations of impropriety in autonomys innocence. Hp put out a statement, the key passage here, we believe we have uncovered extensive evidence of a willful effort on behalf of certain former autonomy employees to inflate the underlying financial metrics of the company in order to mislead investors and potential buyers. I asked a qualifying question of hp what does on behalf of mean . They said they believe certain former employees actually misrepresented autonomy finances them dont name those employees here and in the end, say they wont engage in a back and forth with lynch but clearly this this still alive. Reflected in hps stock price, jon, down 1. 25 switching gears a little bit you something going on with the gentleman at apple maps . Tell us whats happening . Richard williamson, longtime am employee, more than a decades, reports out he has been let go by apple, that he was in charge of apple maps which clearly was a bit of a fiasco. Ceo tim cook apologized for those. Eddie cue, who is in charge of apples services, taking the reins. Not so sure all this can be attributed to maps. I have calls into am. They have not confirmed this officialism williamson is a Software Engineer by training, at next, was as scott forestall, not sure this is just about plans. I will bring you more when i have t. Look forward to it very much, jon. Thank you. Let the daydreaming commence, the Powerball Jackpot is now 500 million. Thats 500 million. Cnbcs wealth ed tore robert frank is here with advice for the future winner. You got your ticket she is in not yet, sue, but countless stories on the web today what people could buy with their 500 million from diamond tiaras to ferraris to private jumbo jets. We wanted smarter advice what the whipper could do with their wings, we talked to advisers to the super rich and gave us tips how the win core enjoy and keep all that money. The first is taxes. The winner could choose between a lump sum of 327 million or the annual payments. They should take the lump sum and pay the 114 million in taxes before december 31st f they wait until january 1st and we go off the cliff, those taxes go up to 130 million, you save 16 million paying now the winner should make a gift, tis the season, cities also the tax regime. Couples can now give up to 10 million tax free, next year, that money changed to only 1 m the tax rate on that goes up. Should do it now most important advice, cool off. Sudden wealth can ruin your life, expose to you all kinds of scams and lead to overindulgence. People say you should put the check in the bank and ignore it for three to six moment. Use that time to get your financial bearings and create a real plan. The plan is critical. You should start by hiring a financial adviser, figure out your spending goals, 327 million sounds like a lot but you buy a yacht and a g 550 plane, pretty soon you are done. One of an income plan, you can create a portfolio to meet the needs, balanced stock, bonds, alternative. After that, you can bite diamond tiara and the jet r i think you would look great in a tiara or jet, sue. I dont think my luck will hold up. I have never won anything in my life h a dollar and a dream. A dollar and a dream. Yeah. That kind of rich. Thanks, robert. Oracle chief Larry Ellison, speaking of the super rich, he is at itscooping up real estate u the third richest man who bought the island of lanai will own another piece of beachfront bliss. We will tell you where it is, coming up next. I put away money. I was 21, so i said, hmm, i want to retire at 55. And before you know it, im 58 years old. Time went by very fast. It goes by too, too fast. But i would do it again in a heartbeat. [ laughs ] time for an abbreviated power run down. Joined by jane wells and bob pisani. Cross country version. Mark carney, the first nonbritish citizen ever named to the bank of england. But bob, he is a subject, isnt he, as a member of the British Commonwealth . Regardless. Listen this is a smack in the face to the old bureaucracy, the bank of edge land. One thing carney did, Everybody Knows about made it more transparent about their decisionmaking, what the targets were. He wants a more open policy, he will getted it upper carney. Jane, what do you think . I say put a canadian in charge of the fed. I love canada. Best people, best neighbors. They put up with us. See argo, i love canada, love the way they say about. All happy about it. Gm and the chevy volt. Despite the u. S. Markets weak appetite for electric cars, jane, do you see lot of volts thought in california . No, and this is californias fault, because car makers are doing this because to sell any cars in california, the state is going to make themselves a certain number of electric cars but nobody while californians love their high bids are, the electric cars other than the tesla dont have a Strong Enough charge, not working here, maybe we should put put a can need dan yan in charge of california. Seven hours to charge it, jane. Make anybody happy . How far does the volt go, if it goes 30 miles before the charge runs out. The leaf goes 80, not even a days commute for me h doesnt work. Finally, Larry Ellison scoping up his tenth house on malibus socalled billionaires beach. Jane this is right up your alley. Yeah you know, pretty soon, he owns some houses just billionaire, singular. Here is the headline, the house he bought, ocean front malibu, billionaires beach, assessed at 3. 65 million. Thats it . Its now millionaires beach. Pass the can around and do a timeshare. A better idea, much better idea. Out of places to buy in malibu, what he need it is to do, jane, look directly north or west, great real estate, cheap, called oxnard a great place for him. I found it, 300,000, a few blocks from the ocean over in oxnard. The other side, pacific palisades, jane. All you got to do is move the Pacific Coast highway, this high sway in the way, larry, get to work. I think he should come here, go to long beach island, buy a nice house and rebuild all of that area so badly damaged in the storm. I hope he is list. Ing. Oxnard . Thanks, guys. 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Is this the calm before the storm with the fiscal cliff looming or calm before the calm in the industrials down 36 pints 12931. Current Monetary Base of 2. 6 trillion, ran the model and we see