Transcripts For CNBC Squawk Box 20121127 : comparemela.com

Transcripts For CNBC Squawk Box 20121127

And find a solution. Among our guests, three men who understand washington, wall street and Corporate America very well. We have the chairman of president george w. Bushs council of economic adviser, ed lazear, roger altman, and real estate tycoon don peebles. But lets cover this mornings top headlines. We do have a lot in the corporate headlines this morning including Equity Residential and avalon bay communities agreeing to buy archstone from Lehman Brothers holdings. The price tag, about 6. 5 billion in cash and stock. The deal gives lehman cash to help pay its creditors as it liquidates. But it paid 22 billion for this company originally. So 6. 5 billion versus 22 billion, and you can see how lehman got into some of the problems it did. Also this morning, europe set to delay the introduction of stricter rules on bank capital. The eu reportedly prepare to go follow the United States while it lobbies for a reconsideration of the u. S. Stance. The delay could push back the start of basel iii by about six months. The law was mepts ant to be pha in by the start of 2013. Archstone was not part of the zell asset, was it . I feel like zell was related to it. But he sold right at the top. So that was part of the problem. It wasnt just a total lack of due diligence. I mean, everything was valued hire when archstone was first sold, right . Yes. But as im looking at this, no, sam zell i do not believe was involved. That was the Equity Office and and then blab stone. But blackstone even though they bought at the top figured out a way to then sell pieces of it very, very quickly. And they did very well. Entrade is no longer accepting u. S. Customers citing legal and regulatory pressures. That announcement coming hours after the u. S. Commodities regulators sued the exchanges owner alleging that it allowed unauthorized trading by u. S. Customers, u. S. Customers must close their accounts and withdrawal all funds by the end of the year. And a group of former mf Global Customers is asking a court for permission to subpoena the commodities brokers executives, including former ceo jon corzine, although no ones seen him. The Commodity Customer Coalition is an advocate for trader customers who lost money when mf global went under. It wants to question mf executives under oath. We used to have him on here a lot. Have we placed the call . Is he returning our calls . Yeah, call me. Judge denied a similar request in february. And while corzine has stepped down, some executives remain at the company and theyre assisting in its wind down. Bankruptcy beard dino, california has devoted to halt payments in an effort to try to balance its budget. The city will present the plan to a bankruptcy judge on friday. Sa they need to close a nearly 46 billion budget deficit. New york and new jersey need at least 71. 3 billion to recover from the devastation of super storm sandy and prevent similar damage from future storms. This is according to the states latest estimates. That total of course could grow. Steve liesman has been crunching the newspaperup i numbers and hn the next hour. This is to try to build up some sort of protection, some massive floodwalls. Governor cuomo was saying this would be like 9. 1 billion to start building. Questions about the future of the sec following mary shapiros exit. Elyse walter could run the agent until december 2013 when she would have to be renominated and reapproved by the senate. Among the issues, and ongoing battle over regulating the 2. 5 trillion Money Market Fund industry, some 63 unfinished rule making requirements that are all part of doddfrank and continuing fears of course about market stability and High Frequency trading. P. Money markets used to be covered by the fdic when the crisis first came on. And also worth pointing out, there was one failure of mary sha piros time in office, shall was this was it. She wanted to regulate that business. You remember that vote. If there was any regulation, the money Market Industry claimed they would go out of business because there would be too much collateral set aside. I have money in a Money Market Fund because the bank talked me into it. I dont know why im keeping it there. 0 interest. Not covered by the fdic. What do you you get on 10,000 per year . A couple pennies. I think like a couple hundred dollars for way more than 10,000. Thats what i mean. So most interesting sentence in any article this morning related to mary shapiro owe s departure, the floating of salary crawchek as the next sec chairman. Elyse wont be there . Theyre not calling heart interim. Shes sort of like the interim interim. She may stay, but may not. Sally looking for a job . We got her last job at bank of america. She admitted that. Anyway, her maim is on the list. He have not put her name forward. She doesnt need the money of a big job at this point. You cant make any money unless youre accepting bribes, which i dont think is legal. Did you see the other name floated by a regular squawk guest last night for treasury secretary . Who . Warren buffett was interviewed on charlie rose and asked remember we asked him and he was erskine bowles. On charlie rose, he said the perfect person would be jamie dimon. Wish i would have heard that before he came on. Jamies not going to do that, is he . I dont think james pie will that. I still think in this environment, i dont think the president is ready to take on they dont see eye to eye on a lot of things. He wouldnt even talk about how he really feels. Last january he was on with you you from davos and still a democrat barely was his wording on it. But hed also like to have someone who understands the markets. Get around all the free market stuff, completely abolish free markets . If europe become as big issue, if something rises up with the bond markets that was the point Warren Buffett made. He said if you want someone who understands the markets and the turmoil that well be in. And also they even talked about the london whale and what that meant. Probably wont be a bankster this time. We had a guy who ran a metals company. A railroad dude. Thats true. Chief of staffer. Wed like erskine bowles. But that will never happen. That would be one way to rise above. Which were not seeing a lot of. Im going to put my pin on, but i feel like its around here somewhere. You didnt wear yours later. Afraid to get on camera . You have a spiky haircut. Ill keep trying, but well get to other quick headlines. We have new numbers showing more americans fell behind on their auto loan payments in the third quarter. Credit reporting Company Trans union now saying the raft auto loan payments at least 60 days overdue rose to 0. 38 . Trans union says the uptick is likely only a seasonal blip. Yeah, rising above. On wednesday, the president will have a bunch of people standing behind will him again. Hell do the thing again, ive got my pen, the senate has the bill, extend it on everyone except 250. So hes going to insist on that. But theyre not going to curb any entitlement spending. So thats where we are. Really. Theyre not rising above, theyre sinking. Do you think roger altman knows anything . Because the democrats have pretty entrenched in totally entrenched. Although the president is in a position, hes not running for reelection again, kind of look at things hes in a position of compromise you would think. 2014, if you can get a Democratic House, then you can consolidate everything and you can get a Democratic House how . By making them by saying the republicans are obstructionists, blah, blah, blah. And then you play for the last two years. Playing to just consolidate all your redistribution. I get it, but also a tough way to play the game. Did you see drudge . I did. Bush 3. Jeb bush talking about 2016. And then christy already talking about 2016. We are. And christie is getting his Reelection Campaign ramped up. He has unprecedentedly high approval rating. After sandy. And he says this is a job he feels leak he needs to continue. Stanley wants him to stay. Some other Corporate News involving erickson. Its filed a lawsuit against samsung alleging patent infringement. Ericcson says two years to trike a deal were unsuccessful. And an hp shareholder filed a lawsuit alleging the tech companys top executives misled investors about two key acquisitions that have caused billions of dollars in losses. The lawsuit alleges that hp management concealed the problems and another recent acquisition which weve talked about, electronic data, in an attempt to boost hp stock price. Meantime in the wall street journal, former employees, Business Partners and attorney attorneys say its not difficult to conclude that the company autonomys accounting was overly aggressive, they say such behavior tip filed autonomy long before hp bought it. And mike lynch says the companys culture was aggressive. They start off talking about how originally the ceo put up a sign on a door that said authorized personnel only and he would tell people there are 500 engineers back there working on top secret projects. Turns out it was a broom which was eithcloset. So part of the extbravado. It is complicated on some of those things. If you dont know to pick up the bench when i went with Boone Pickens in china, i had no krid. Really . Yeah, have you seen, you have to lift up that bench. Being a child. Obviously. I know. Watch shares of yahoo i agree with you very much. Guy back there just scratching his head. They that had clean up after he left the bathroom apparently. For these people on the middle seat . Jetblue watching us, theyre not enjoying this. What are we talking about . Yahoo shares touched 19 yesterday. First time its trade that had high in more than 2 1 2 years. I cant you hugh has been buying back its own stock and more investors are betting on Marissa Mayers ability to turn around the long struggling company. On the economic agenda, we did have october durable goods at 8 30. At 9 00, we get the case shiller home price index. And then Consumer Confidence. Federal Housing Finance agencys house price index and rich mopped f richmond fed survey. Lets get a check on the markets. The futures are a little bit weaker. Right now done by about 21 points. S p by less than 3. In europe, you have seen a few green arrows on the news that there is going to be a deal for greece. Although it does look like theyre giving back some of the gains. In asia overnight, you did see modest declines for most of these markets. Shanghai, market down by about 1. 3 , but the hang seng and the kospi and korea both have just slight declines and in japan the nikkei up by about a third of a percentage point. Oil prices are a little higher, up by about 3 cents. And the ten year note at this point is actually yielding 1. 652 . Not a lot of movement there either. The dollar this morning is up against the euro. Euro at 1. 2941. Dollaryen unchanged. And gold prices are down about 3. 50. Time for the Global Markets report. Kelly evans is standing by in london. Great to see a yyou, especially given the green behind you. Great to be back. Lets give you a sense of whats happening. Its actually a pretty interesting morning because every market seems to like the greece deal except the greek one. Some of the strongest gainers would i seeing in the europe stoxx 600 are the bank stocks. We saw rbs, morgan stanley, gaining almost 3 to the up side. Walking over here, you can look at the stoxx 600 still up 0. 3 , but we are giving up the gains we saw earlier in the session. Want to focus in particular on on whats happening with greek banks. First lets look at the bond wall where we are seeing some differentiation interestingly enough. We did initially have the relief rally and rotation out of the core into the periphery. Yield moving up a little bit despite the better relief in spain. No, i mentioned greek banks. Heres whats interesting. Even as were seeing banks in spain and some of the u. S. Listed companies rallying, take a look at whats happening here. Alpha bank down 7. 5 . National bank of greece, you get the idea, down about the same amount. We saw even losses on on the range of 12 for parias. Its bringing the greek composite down almost 2 last time we checked in. Effectively when youre writing down the deal agreed, it includes provisions that extend maturities, that lower Interest Rates. And guess who will take the hit on some of those holdings. Yep, the greek bank which is have the greek debt. So ironically enough at the same time that these negotiations are giving rise to a rally across the rest of the region, were seeing the concern play out here with regard to what that will mean for those holding some of this will paper. And certainly some of the unresolved issues just about the ability for greece to fund itself going forward. It hardly means weve solved all of our problems. Back to you. So you say kevins . Kevins. I like that. Kevins, yes p. Okay. Kevins. Yeah, im going to regret that i told you that. Yes, you are. And this whole flying private thing, i was gist happy to have an exit row seat on the plane the last time i was flying. Ive had the middle seat the last four or five times and had the baby in my lap, so thats my norm, too. You know they have changing tables in the bathrooms on the planes . I dont know how the bathrooms are that big. I didnt realize they had it. Its a little cramped, but they do have like the pull out things. Theres plenty of room in those. Youve told me. To do terrible things in there. Anyway, coming up what is a mile, 500 2 how high are re talking about. 5200 feet, isnt it . That club. All right. So youre eight miles high basically. Coming up, a busy day on the economic front. Housing, consumer manufacturers, well ask if any of these numbers move the meter for the markets next. But first, it is the first tuesday after thanksgiving. And a new tradition starts today. Its giving tuesday. Organizers say they hope that youll give more of yourself and then share the good deed on social media to encourage others to do the same. Social media aspects of the campaign is intended to attract younger. Take a look at futures ahead of the markets. Right now things setting up in negative territory. Dow jones would open up about 16 points off. S p and nasdaq both off, as well. Todays national forecast, eric fisher from the weather channel. Good morning. Watching a little bit of snow move into the northeast. Nothing too to get too worried about, but more novelty snow than anything else. Take a look at the radar. This is where its really starting to come done hewn here. New york and philly, it will start likely as a bit of rain, mix in with wet snow, but the roads should be in good shape. Harrisburg along i81 and higher terrain, one to three inches of snow. So not a major event. Well track it across southern new england this afternoon. This evening into southeast mass, we will see snow flying that will slow you down. A little bit of accumulation. Plymouth, you might see some of that adding up on the ground. As we get into the day tomorrow, sun starts to come out, temperatures warm and it will all melt away. During the accumulations, one to three highest elevations. If you get out north and west of new york city, youll find spoke especially on the grass and higher elevations, eastern sections of connecticut. Ought side of this, all rainfall. Storms from atlanta stretching back through birmingham and down toward new orleans. All this marching off to the east. Well be seeing a pretty decent a rainfall. In the southeast, they really could use it. Not a bad thing here. Okay. Eric, thank you. Squawk sports news, monday night football, panthers beating the eagles 3022. Cam newton threw for two touchdowns and ran for two more. A lot of times now theres sunday night, monday night, and i think a lot of times theres thursday night. A lot of football. If you want it, you can definitely see it. At least the nfl is still almost as good as college whereas basketball, i dont think its close. In the pros versus for me. Just me personally. I agree with that. Really . Yeah. What y with the school, you can get behind it. Are you Still Holding out some chance on this thursday . Do you think im going, yes. You dont think youll walk out of there with your tail just feeling oh, no. You saw the pittsburgh game. Yeah. Everybody can have a bad day, an off day. All right. Would i go if i thought they were going to lose . Im going to stay up late and get in here early in the morning . I dont want you to be i want you to go in to this realistically. I might cry. I know thats what im worried about. I want you to have realistic expectations. Im going because i think theyre going to win. I said i want you to have realistic expectations. Hope springs eternal. It is a busy day for economic numbers. Joining us is the chief economist with he was snickering over there. Only because of you. We do have a lot of numbers coming out. Maybe the Consumer Confidence the most interesting one just because im still trying to figure out why everything the ceos are concerned about hasnt really trickled down yet. I think one thing about the different reactions consumers versus ceos is these tax changes are so complicated that i think that the ceos have worked it all through and are really worried about what could happen p. And i think the attitude of consumers is its too complicated, theyll have to sort something out, i cant figure it out. And so it is really a streeg differential in behavior that weve seen. The ceos have cut the core Capital Spending orders, postponing them up after the fiscal cliff is resolved. Consumers continuing to spend, responding to the fat that the Unemployment Rates come down, people who have jobs have somewhat less fear theyll lose their job. And spending has been okay on the consumer side. Gr do you have two models for next year, one assuming we have a deal, one assuming we dont . Really about 20 different ones because there are different kinds of deals. I think the most likely case is that we get a fix for the fiscal cliff maybe early january, maybe we go over the cliff for a couple days. And i think the political pressure then to fix it would be intense because of the amt shock. Normally 4. 5 mi

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