Transcripts For KICU First Business 20140318

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sanctions against russia for engineering the succession referendum in crimea. and he threatened further punishment. so what did the markets do? they all rose on monday and not by a little, especially the dow. after 5 sessions of gains, gold closed lower as investors moved into stocks. and after 2 up sessions, oil ended down. factories are crankin' it up. u-s manufacturing output was bigger last month than it's been in 6 months. assembly lines cranked out more cars, chemicals and business equipment helping lift the economy from january's snowstorms. and it's the biggest study yet to see if the stuff in dark chocolate can in fact help prevent heart attacks and strokes. sadly for the 18- thousand participants, the nutrients will not be administed via candy bars but in pill form. let's turn to trader lincoln ellis. he's with green square capital. a lot of people might be surprised the markets went up so well yesterday. we have volatility, uncertainty and tension in crimea and yet that was the result. >>friday was really the selloff for the positioning for the weekend for something that investors thought might go very poorly but in fact it went very much to plan. both the outcome and the u.s. and european response to itonce we broke through some of the levels that were pierced to the downside on friday. we had a short squeeze and a move much higher later in the afternoon even with some late saber rattling from the kremlin. >>today and tomorrow of course traders are going to be watching the fed. tell me about the expected outcome there. >>a little bit of a shift particularly because janet yellen's focus is much more on employment where bernanke's was much more on the crisis/firefighting and he did a good job there. i think it's the appropriate person to tackle this very difficult employment situation. so looking for more qualitative kinds of reads in the labor market and looking for some slight changes and forward guidance. there ares some different guideposts that i think investors are anxious to see and then put monet to work. >>any sense as to the tapering? will she likely not say anything significant there? >>i think the tapering will continue at pace. the industrial production from monday and the housing numbers continue to show slow but steady growth and a little bit of contractionvery much weather relatedbut still very much on pace with the kind of recovery that will be able to digest a little bit less liquidity in the system. >>lincoln ellisthanks so much. >>you bet. a few hours after the president announced new sanctions against russia, russian president vladimir putin formally declared ukraine's crimea region as a sovereign independent state. that followed the breakaway republic formally declaring its independence and asking russia to annex it. the u-s has now frozen the assets and banned travel for 11 russian politicians, including top aides and allies of mister putin. president obama has sent vice president biden to eastern europe to meet with the anxious leaders of poland, estonia, lithuania and latvia. here's chuck coppola with information on the missing malaysian airlines flight 370. bill, the search for malayasia air flight 3-7-0 is still dominated by more questions than answers. the area of the search has expanded considerably and now stretches from australia to kazakhstan. france is also lending a hand because of expertise gained during the two year search for an air france jet that crashed into the atlantic ocean in 20-09. 24 other countries are also involved in the search. authorities also say they are renewing their focus on the pilots and those on board because they believe the jet was intentionally taken off course. and another scare in the air. a delta flight from orlando to atlanta on sunday lost a wing panel. that didn't affect the plane's ability to fly or land. the crew declared an emergency. the plane did land safely. nobody was hurt. the aircraft was pulled out of service and is being inspected to determine why the panel came off. general motors is issuing another recall -- this time for 1.5 million vehicles. it's already in the midst of a recall investigation of 1.6 million vehicles for a faulty ignition switches. now...1.1 million models -- listed here -- are being recalled due to a possible problem with service air bag lights that could result in nondeployment. 300 thousand chevrolet and gmc models are being recalled to fix a material on instrument panels, while overheating brakes are being cited in 64 thousand cadillac x-t-s models. jessica caldwell of edmunds dot com says general motors is being extremely proactive. "i think what the takeaway here is, is that gm is looking at everything and they are being very critical of themselves and making sure that they are going to catch anything if there is an issue that's out there, so i think they are taking a very aggressive safety stance right now." gm also said this week it is taking a 300 million dollar charge against it's first quarter earnings due to costs associated with the faulty ignition switch recall. another retailer admits to a hack attack. this time it's professional beauty supply store sally beauty supply-- a security breach may have put 25-thousand customers at risk. the company says it is investigating. this just after target says the massive data breach it suffered late last year may be worse than originally reported. the retailer stated in an s-e-c filing that given the ongoing investigation it is possible more theft will be uncovered. retailers are under pressure to quit tobacco. 28 state attorneys general have submitted requests to five big retailers, including walmart, rite aid, walgreens, kroger and safeway. a letter sent to the retailers says "there is a contradiction in having these dangerous and devastating tobacco products on the shelves of a retail chain that services health care needs." jeff lenard explains why drug stores are being targeted, even though convenience stores have higher tobacco sales, "there is a lot of pressure being put on the drug stores because there's only a few that sell tobacco, on the other hand you have 90 some thousand conveinence store chains, one store operations or otherwise that sell tobacco so its a much different animal in looking at putting pressure on them." cvs said last month it would snuff out cigarette and tobacco sales by 20-15. the city of light is now the city with fewer headlights on the road as a way to cut toxic air pollution. paris, france has introduced a temporary driving ban trying to cut traffic by 50%. odd andeven license plate numbers determine who can be on the road. thousands of tickets were issued on the first day. paris is one of the most congested cities in the world and, its warm, dry, windless weather has made its smog worse than beijing, china. the ipo craze continues...chinese e-commerce site alibaba has unveiled plans to go public. it's the latest company to jump into the white hot ipo market. reuters reports the ipo proceeds could top 15 billion dollars. josef schuster, whose company tracks the ipo market, explains what the hype is about. "it's a preeminent e-commerce company in domestic china on the mainland, so it has huge growth potential and has full access to the chinese consumer." meantime, investors in yahoo-- which has a 24% stake in alibaba -- saw shares climb 4% yesterday. the company stands to collect billions off the public offering, which could then be used to issue a dividend or stock buyback plan. sears and lands end are parting ways. the retailer will spin off its lands end clothing business, which will begin trading on the nasdaq april 7th under ticker "l-e." shareholders approved the split late last week. sears -- which has struggled in recent years --recently told investors, it has experienced rare sales growth this winter. sears stock is up about 1 and a half percent. britain's vodafone -- already the second largest telecommunications company in the world -- just got even bigger. the company says it is buying ono, a spanish telecommunications company, for $10 billion. vodafone has been vocal about its desire to exapnd its european operations. you find this startling? fully a third of uninsured americans will choose to remain uninsured though the affordable care reqires people to have health insurance.that's the finding of bankrate.com which reports, 41% of uninsured americans believe health insurance is too expensive. also, 53% of people did not know that the deadline is march 31st. doug whiteman, of bankrate dot com says most americans are unaware they may qualify for subsides. these subsidies will help cut the monthly cost of health insurance. the congressional budget office has said that on average an individual will receive a subsidy of 5 thousand dollars to cut the annual health care cost. whiteman adds that 66% of people ages 18 to 29 say they plan to sign up by the deadline. with just under 2 weeks to go, 5 million people have signed up. the goal is at least 6 million. remember our interview last week with one of the founders of a company called opternative? for only 30-dollars you can take an online eye exam to get a perscription for glasses. the american optometric association is now warning that if you don't go to a professional for an eye exam you could be putting yourself at, quote, "significant risk." opernative's aaron dallek told us you should still go to a professional for a full exam but his service is accurate & can get you a prescription. opternative expects to get fda approval and be in business by the summer. oprah winfrey cuts her final ties to the studio that made her famous. after moving to california to start her o-w-n network she's put chicago's harpo studios on the block. reports say there is a developer ready to buy the parcel for around 32 million dollars. the 4 building site is where her "oprah winfrey show" taped from 19-90 until the end of the show's run in 20-11. the studio will be leased back to oprah's production company for 2 years. the cost of your morning cup of joe could soon be on the rise. arabica bean futures have surged more than 80% in two weeks -- the biggest rally since 19-94. reuters reports that several medium sized roasters are saying that it is no longer possible to absorb the hike and the companies will need to raise prices. larger roasters are insulated from commodity flucuations. starbucks says its prices will remain fixed for the rest of 20-14. still to come: in chart talk, how investors can capitalize on the turmoil in ukraine. the coolest and newest gadgets and gizmos for the home. chuck coppola reports from the international home and housewares show. but first, corporate america's big bet on foreign expansion. turns out it may not have been such a good bet as we will hear. in the past few years, foreign markets - china, india & others were exploding in growth. us manufacturers wanted to ride the wave and so, spent untold billions to buy companies in those areas & in a way turn their backs on the mature and slower growing us market. it turns out, there was a flaw in that strategy. business still needs america, which was the headline of a column in crain's written by columnist joe cahill. it's easy to understand why companies would want to expand thereyou are a u.s. based company and you want to get in where the action is hot. >>emerging markets overseas like china and india have seen much faster growth than the u.s. you have emerging middle class consumers there that are hungering for the kinds of consumer goods that we have had here in the u.s. for years. you've got housing markets exploding and over the long term there will be faster growth there than there is in the u.s. so you saw companies like caterpillar, abbott labs, and mcdonalds focus much more on those markets as opposed to the domestic market. but what we're seeing now is that these overseas markets that are so attractive because of their long term growth rate can also be volatile and unpredictable and they're not necessarily getting the kinds of numbers there that they had hoped for early onwhile in the u.s. there's still a lot of impact on their business. mcdonalds for example still gets a third of its business from the u.s. and the u.s. has been doing poorly and that's pulling down their overall results. >>it reminds methe difference between a long term investing strategy for someone who is planning for retirement as opposed to the quick gains you can get by finding some hotshot company in the short term. >>right. it's a very risky play if you're looking at short term numbers overseas because you don't know what's going to happen. abbott labs for example had a very strong position in china which is a big growing market where it wants to sell a lot of infant formula. it looked like everything was going to be great for them after they spun off their domestically oriented pharmaceutical business to focus on the overseas markets. within the first year after the spinoff the chinese authorities leveled some dubious charges of price fixing and raised quality concerns about the infant formula being sold by overseas suppliers and suddenly that growth came to a halt. now that will be temporary but that's not in the plan. in the meantime its business in the u.s. has been tanking. >>now they learned they can play both markets but you have to know what you're doing. joethanks so much. coming up...russia's meddling in ukraine has created hot stocks in energy that may be good buys with potential gains. we'll learn more in chart talk. and after the break, thel latest in household appliances - we head to the housewares show with chuck coppola! homebuilders can't seem to shake the winter blues. a gauge of their confidence ticked up a point to 47. anything under 50 on the home builders - wells fargo housing market index is interpreted as pessimistic. it's the weather. it's making it hard to find lots and labor to get projects started. the worst region for home construction right now - the north east - which happens to be the area of the country with some of the worst weather. in our cover story, more than 60-thousand people looking to slice, dice and entice are packed into the largest housewares show in the world, this week in chicago. worldwide, it is a 319-billion dollar-a-year business that keeps getting bigger. for more than two-thousand culinary entrepreneurs, chicago's international home and housewares show is their best chance to pitch 22-thousand buyers for stores in 45- countries. what's new? vertical grills by ronco. "you don't need to know anything about cooking. it has one dial. set it and forget it." also new--- individual glass aerators by aermate that appeal to americans who spend no more than ten dollars for a bottle of wine. "what we do is take a $10 bottle of wine and make it taste better" "a light pinot noir doesn't have to aerate as much as a malbec. our aerator is different because you can aerate to taste." for anupy singla and her husband, sandeep, this is their chance to give trend of healthy recipies, a flavorful spin toward indian spices, sauces and a stylized yet traditional container. "the first year we were here, we didn't know what we were doing but someone from williams- sonoma saw us and we wound up on williams-sonoma shelves. it's the ability to meet people face-to-face, which still drives retail and drives sales." the show's been around since the 1930's and helped launch a parade of ronco products on television. "introducing auto cup by ronco, the amazing no spill cup" "this amazing kitchen applience scrambles inside the shell." the ronco rollermeasure. only $9.95." so what's the latest pitch?---- housewares for gourmet gardeners---planting bags with holes for drainage and cubes to freeze a dollop of sauce. "our trays clamp so they store for longer time." the privately-held company, homegrown gourmet is encouraging public sector community gardens. "i think a lot of people are taking their health into their own hands." the international housewares association says specialty tools for the kitchen, wine and entertaining gizmos and home soda-making are among the fastest-growing segments in the housewares industry. thank you chuck! as always, we'll wrap it up with chart talk. our regular tuesday morning trader will give us some inside analysis on a possible play to make some money from tensions in ukraine. we'll be right back. the ukraine and crimea issue is not just about geopolitics. it's about energy. let's talk with matt shapiro of mws capital for our chart talk segment. matt, you see some opportunities here. particularly, not with natural gas which is a part of the news right now but on the oil side. >>absolutely. right now a lot of investors have been disappointed with the last 2 u.s. supermajorsexxon and chevron. the stock prices are actually pretty attractive. my pick is chevron which pays a 3.5% dividend. one of the big themes coming out of the geopolitcal moves is everyone saying liquid natural gas. we can move it to europe and we can counter russia's moves. what people don't realize is that liquid natural gas is incredibly expensive. these are 50 billion dollar projects and chevron of all the major u.s. oil companies is the only one with real and big lng exposure. >>you also think that chevron and exxon are deeply diversified companies so they can be in your view a better play. >>right. i think investors really need to analyze and assess and reassess their energy portfolios. there's been a lot of moves in the second and third tier companies in u.s. production which is great but there's actually a glut of u.s. production. alternatively there's been a little bit of a disatisfaction with the big projects of exxon and chevron internationally but given what's going on overseas in europe that's going to pay off especially for chevron which has a $50 billion lng project in australia. it's gonna start increasing their production over the next couple years. more actually than exxon which is mired a little bit in a big project with russiawhich of course creates some uncertainty there. >>good to talk to you matt. you have some good insights into these things. thanks so much. >>thanks bill. you are now set for the business day ahead. tomorrow morning...wall street is bracing for the latest flood of corporate earnings - and it could get ugly. we'll tell you why. i'm bill moller...from all of us at first business, glad you could join us - a good day to you. >> announcer: the following is a paid program for the paint zoom. uh-oh! wasting another weekend working overtime on a painting project? the uneven coverage of that roller not cutting it? tired of battling with a brush? had your fill of spills, splatters, and running up and down ladders? say so long to those obsolete rollers, brushes, and paint tray catastrophes, because now you can paint like a pro with new spray technology that's so advanced, it's simple. introducing paint zoom, the

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