Transcripts For CNBC Power Lunch 20141111 : comparemela.com

Transcripts For CNBC Power Lunch 20141111

A major trade deal. We will have a list of the stocks that stand to benefit from what could be a trilliondollar deal. Getting our heroes back to work. We are going to spot light how one wall street firm is taking our vets from the battlefield and putting them on the Trading Floor with great success, a story you really dont want to miss. Lets check in with sue at the nyse. We do begin with alibaba and the Biggest Online shopping day in the whole entire world. How big was it . It is singles day. The chinese e commerce giant reaching 9. 3 billion in sales in 24 hours in china. The highest number for cyber monday here in the u. S. 1. 7 billion. Its not helping alibaba shares today. You saw the stock having the worst day since the ipo in september. Our david faber got a major exclusive with alibabas founder and executive jack ma inside the companys headquarters in china. David filed this report just minutes ago. Reporter in its most successful day of selling things ever alibaba sells 9. 339 billion worth of stuff to largely chinese consumers on its socalled singles day. Is it enough to make founder and executive chairman jack ma happy . Apparently not. This month im not very happy. Why not . I think too much pressure. I think i tried to make myself happy now because i know if im not happy my colleagues are not happy. And my shareholders will not be happy and my employees, my customer will not be happy. So i have adjusted because maybe the stock goes up or maybe people have expectation on you, maybe i think too much about the future and have too many things to worry about. In 2009 was not too much of anything. Last year 5. 8 billion. This year lets figure at least 9 billion. How much can this grow . This is number six and on the ten anniversary of 11 11 day i wish it will be a Global Shopping day for states and europe and anywhere in the world. I cannot imagine how big that will be because i want more companies involved, more offline shops involved. It is going to be big. I think the number today im happy about that. Long range interview ma stated he is worried about deliveries taking place. And as for happiness, one would expect given the success of the ipo and company and the success overall that alibaba seems to be having in its still early days, remember it is only 15 years old, he might be finding happiness but ma said im going to try to at least figure out how to make myself a bit happier. Back to you. So alibaba singles day sales breaking that record over 9 billion. Thats the report while americans spent hundreds of billions of dollars on major holidays each year. Aside from big ones like christmas here is a look at major money makers that most people consider sort of fake holidays. There is mothers day. 19. 9 billion. Thats from 2013 to 2014. Valentine day 17. 3 billion. Fathers day bringing up the rear there, 12. 8 billion. Rbc Capital Markets is hosting a Technology Conference today. Mark harris is head of Global Research for the firm. Welcome to power lunch. I know you dont specifically cover alibaba but your firm certainly does. It has a 130 price target on the stock and a buy on the stock. When you look at this Amazing Company now that it is public, will it be an even bigger powerhouse than it is now . David posed that question to jack ma. What are your thoughts . I think the reality is it can continue to grow. You look at the Market Opportunity ahead of it and the untapped Market Opportunity ahead of it. Obviously within china there is still enormous room. You can see the impact as it is continuing to grow. Think about the International Side of that. Our analyst on the internet certainly would be the first to point out they have hardly begun to touch things outside the borders. That is the real opportunity for the company. The other thing that may fall in your wheelhouse is the issue of net nutrality. It is a big issue after the president weighed in saying it is in favor. Should internet providers be regulated like Utility Companies . They can vote at cnbc. Com vote. While america weighs in, the impact of Net Neutrality where you stand covering technology as you do. I will hold off answering that question because the Technology Conference is going on. We have a panel of experts specifically addressing that topic. Invite me back i will have a better answer at that point. I think the debate is happening. I dont think it is a settled issue. I will have more to talk about after that. I think it is far from settled. I think you are absolutely right. Lets turn to the survey if we could. You asked 87 participants various questions having to do with technology the way they use technology, some of the more interesting questions was do you think apple will hit a 1 trillion market cap in 2015 keeping in mind that the current value is at about 630 billion . 14 said yes. I was surprised that a larger percentage said no. Whats your take on that . So i think people understand that this is certainly going to be a company that is going to be growing a lot. This is over the next 12 to 18 months and we are talking about a company at 630ish now. And the law of large numbers begins to kick in. We asked another question around apple pay is the growth of that as one of the angles on this and said what do you think over the next year and then five years from now. In the next year people said 1 to 3 . Five years out they said this is a company that will own maybe around 10 to 20 of the market, almost 40 . 39 on our survey said 10 to 20 and a tail thought more. Lots of opportunities within the next 12 months i think that is the question you saw a little bit in the apple pay answer. On the issue of cutting the cord, you asked what medium they primarily used to watch tv. 60 said cable, 12 said satellite. 11 said apple tv. Netflix is only 9. Hulu 3. Many people say cable is dead but doesnt appear that way. Lets make sure we set our sample here. We have 1,000 attendees at a conference here in new york across the spectrum of internet to software to hardware. If you are looking at the bigger mass market of it there probably is some amount of chord cutting going on. Even when we asked the forward view Going Forward would you cut it . 75 said no. Now and later at least our audience did not seem to think that was the case. It is a pretty good sample. 1,000 tech savvy people. Absolutely. Mark, we are going to hold you to your word and have you back. Best of luck at the conference. Thank you very much. Lets lock in the vote. Should internet providers be regulated . 62 of you said yes but 37 said no. The u. S. And china making a major trade break through when it comes to technology. It happened at the apex summit in beijing. The two countries agreed to drop tariffs on a range of tech and it products. Backers hope that will cover 1 trillion worth of trade. The deal expands and covers everything from medical devices to gps devices. The global deal could be approved by the World Health Organization in december. Thank you very much. Lets bring in dominic chu looking at which u. S. Companies may be impacted the most by this agreement . As im looking behind you here it is a lot of medical companies. Sue talked about them. We are talking about an Information Technology agreement that covers what some estimates to be 4 trillion in it tech spending trades all over the world. If you take a look at this trillion dollar tech trade solution that sue talked about, maybe a trillion dollars covering medical device companies. The big one in the United States that may see an impact because of lower tariffs, taxes on export products you check out big ones. Ge medical device unit makes mri machines, all the big machines. Jau Johnson Johnson along with medtronnic. Could see perhaps an impact based upon all of this trade agreement. This is not an agreement yet. This is just china and u. S. Getting together. Gps, Telecom Technology could be an important beneficiary. As we look at big names, garmen is u. S. Traded. We know who they are. Did you check all of your con soles in your automobile for the gps products. Tom tom is a european provider. These are Bigger Companies that may see an impact in case they do come to some overwhelming agreement globally about the information trade agreement. One other thing to note here. We will talk about other places in the market that will do this coming up on street signs. You are talking about all kinds of consumer technology. Think video game con soles like mini superkurcomputers. Well stay tuned for that. Meantime shares of ford have been driving higher today. Its a big day for the auto maker, the first of the new redesigned aluminum f150 pickups begins rolling off the Assembly Line today. Phil lebeau is live in deerborn speaking with the ford ceo. As we see the new f series rolling off the line keep in mind how important this is for ford. These models will be shipped and headed to show rooms. They will go on sale next month. And then by the end of this month what you want to focus on is the fact that we are expecting mpg ratings to come out from ford. A lot of people are saying what will it be for this truck . Will it be close to 30 miles per gallon on the highway . It is what this truck can do offroad, not just in day to day driving around on the highway, but what it can do offroad. In the last month we had a chance in san antonio, texas to put one through the paces. The hill dissent is a piece of technology worked in. It has a 360 degree camera that allows you greater visibility when you are in there especially towing. It is 700 pounds lighter because of the aluminum panels replacing the steel panels. Ford ceo says those panels and the fact that it is lighter will help this truck improve its capability. First and foremost what you get by having 700 pounds out of the vehicle is more capability. That is what truck customers want. They want more pay load and towing and more fuel efficiency. Keep in mind the f series is the best selling vehicle in the United States and has been since 1981. Look at what it has done over the last 14 years or so. The High Water Mark back in 2004 when they sold well over 900,000. The lowwater mark when the recession was hitting in 2009. This year there are over 600,000. We will probably finish over 750,000 fseries sold. As you take a look at shares of ford keep this in mind, ford, gm, auto makers have not participated in the rally this year. Ford is hoping if people look at next year and look at higher auto sales that perhaps then that stock will get a bit of a bounce. A car crash death more than a decade ago has apparently come back to haunt General Motors in a big way in its ignition recall crisis. This is a very involved story that tells us a good bit about the history of how that crisis began and was handled. Reporter and the fact that this family involved in this story which was detailed today in the new york times, this family was not notified that a relative was one of the 13 cases that General Motors long acknowledged. They didnt know that until they were contacted by a reporter within the last couple of weeks. This continues to bring up the question has General Motors told everybody involved everything they need to know . Gm has said we have been open and honest about the information over the last six months. This Story Highlights that a lot of people are saying are you kidding me . These people didnt know until a reporter had to call them and yet it was known supposedly there was a victim because of one of the malfunctioning ignition switches . Not a good day to say the least. Phil lebeau reporting for us today from ford Assembly Line. Dominic chu now, market flash. Its Analyst Investor meeting day today. The company says it seized 2015 revenue gruth and 2017 Revenue Growth as a result. Those shares up towards session highs up by about 3. 5 on the days trade. Back to you. To weather now. You dont need to dream of a White Christmas because it looks like winter is coming early. Blinding snow, gusty winds, frigid temperatures slamming the upper midwest. These pictures are from minnesota where they had better than nine inches of snow. Other parts of the u. S. Expected to feel cold temperatures as soon as thursday. Well, it looks like the u. S. Will be locked into arctic air especially eastern twothirds of the u. S. For the week. Only place warmer than normal is southwestern u. S. For t rest of the country temperatures well below average. If we do this on a day to day basis beginning wednesday temperatures as much as 44 degrees colder than what we normally would see this year in places like denver. As we get into thursday we could see the cold air locked in across the eastern twothirds of the nation. Florida the only place that stays warm. Friday timeframe temperatures much colder than what we would see at this time of the year. Polar air invasion is in place. If we look at the entire month of november it is not out of the question the eastern twothirds of the nation may see one of the colder novembers on record. Just what we need. Luxury homes have helped big time in the recovery. What is the health of the Real Estate Market right now . Robert frank is here with new numbers. The higher you go in this market the stronger the market. We will tell you about the most expensive home in the quarter and Biggest Discount sale. We are talking a 4 million price cut. We will show you that house coming up right after the break. Who do you work for . Your boss . Yourself . Your parents . Your family . At baird, what matters most to you. Matters most to us. As an Employee Owned firm, our Financial Advisors have the freedom and resources to realize a plan to fit your familys unique needs. Well listen. Well talk. Well plan. Baird. [annits working forny. New york state. Already 41 companies are investing almost 80 million dollars, and creating 1750 jobs. From long island to all across upstate new york, more businesses are coming to new york. They are paying no property taxes, no corporate taxes, and no sales taxes. And with over 300 locations, and 3. 7 million square feet available, theres a place that is is right for your business. See if startupny can work for you. Go to startup. Ny. Gov. Welcome back to power lunch. Check out shares of rege. The company are moving higher on positive trial data on an experimental bio tech drug for asthma. As for the french giant trading 1. 5 to the upside. Thank you very much. Stocks trading lower, a little bit but not before the dow and the s p 500 hit new intraday highs. The nasdaq reached highest level since march of 2000. Where are opportunities now . Joining me is joe taneus and david marcus, ceo of evermore global advisers. That is the question, when you keep hitting record highs either on intraday or closing basis people get a little nervous. Are you nervous . Understandably people get nervous when you see record highs. We tend to focus on underlying fundamentals. Just because you hit a record high it doesnt mean the market is going to correct itself. You look for things like are we heading into a recession . Do earnings look like they continue to move higher. Are valuations at a point. We dont think we are at a point where markets pull back in a meaningful way. David, those of you argue we did have the pullback allowing the market to continue its rise. Do you agree in general with what joe just mentioned . Absolutely. It is always about the fundamentals and really looking past just where the indexes are and looking at the specific companies. Look, we are a global fund. We can go anywhere in the world. We think the best opportunities are looking at the fundamentals in europe and here in the u. S. Regardless of the fact that we are hitting new highs here. When you get to europe they are not close to new highs so the opportunities are better there. Do you want to comment on that . Lets take a look at what you like in this market if you had to allocate cash. I know you like the u. S. But you take a global view of things. I think it is important that investors realize there is a whole world out there and a ton of opportunities. When we think about where we see the most risk adjusted return we continue to come back here into the United States. If you take a look at what is happening with the Housing Market and Economic Data and labor market and dgasoline prics everything suggests the u. S. Economy continues with the momentum. Overseas in europe i think one day we will be at a point in time where it represents an amazing opportunity. Unfortunately, they have so many issues they need to work through that we are still a bit cautious. Not yet. David, what is it that keeps you up at night about this market . I think that a lot of its factored in there. Everybody expects no growth. There are concerns about where will the pickup come from and when will it come . To the point joe made about sort of holding off on europe i think it is time to go to europe because i want to buy it when others dont want to buy it. That is when i get the Biggest Discounts. Maybe i will be a bit early. Sometimes we have been early over the years. I would rather be early to take advantage. I can always add as it comes in if it continues to be weak. I would rather start the process now while everybody is standing on the sidelines. We just showed viewers some of the stocks you like and some were based overseas. Nice to see you again. Thank you. Luxury home sales a bright spot in the housing recovery. Can it continue and which kind of high end homes are seeing the biggest price jumps . Our wealth editor here with number

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