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c84eafce7e8bad91f07543ae9198b46d | https://www.cnbc.com/2009/09/23/motivating-motivational-speakers-in-a-recession.html | Motivating Motivational Speakers in a Recession | Motivating Motivational Speakers in a Recession
Motivational Speaker
I think motivational speakers have the hardest job in the world.
Harder than being a standup comic.
If I pay money to go to a comedy club, I'm choosing to be there, I'm hoping to laugh. Being forced by management into a conference room to sit and listen to someone talk to me is not usually the best part of a corporate junket.
The speakers who do it well are gifted, with the ability to entertain you, teach you, and maybe even inspire you.
Terry Paulson is one of those people.
He's a long-time friend of mine who's made a nice living speaking at corporate events. A past President of the National Speakers Association and the Global Speakers Federation, Paulson is naturally, honestly, authentically optimistic, a talent that has served him well.
CNBC Slideshow - Best American CEOs of All Time
However, in this recession, motivational speakers are trying to motivate themselves. Business is down, and they're trying to get the word out that their skills are needed now more than ever. Do you agree?
Here's part of an editorial Paulson wrote for Townhall.com. Read it, and let me know what you think in the comment section at the bottom.
"When the Meetings Industry Is Hurting, Business Feels the Sting," by Terry PaulsonThere is some less than funny business going on in these tough economic times. Offhand comments by politicians and media pundits about "meeting excesses" have had a chilling effect on the meetings industry. One event planning company reported losing 90% of their scheduled events for 2009 after President Obama commented on Las Vegas meeting excesses. In response, associations have merged, meetings moved from resorts to less "lavish" properties, and meetings were consolidated or scheduled for fewer days. According to the CEIR Index published by the Center for Exhibition Industry Research, the exhibition industry suffered big declines in the first quarter of 2009, dropping nearly 12 percent compared to the first quarter of 2008. In the first quarter, revenues were hardest hit, dropping 20 percent, as both exhibit space used and the number of exhibitors also fell double digits. The Convention Industry Council, Meeting Planners International and the National Speakers Association have all been working to get the message outthat meetings are good for business and jobs. The US Travel Association has developed a Web sitewith factual information, an engaging video and other resources to help make the case. A recent study released in September by the U.S. Travel Association found that for every dollar invested in business travel, businesses experience an average of $12.50 in increased revenue and $3.80 in new profits. Such meetings not only provide benefits to the meeting sponsor and attendees, but to the economically vulnerable meetings destinations. For members of associations and those working for corporations, meetings mean more than business. Author and management visionary Peter Drucker once observed, "The fastest growth industry in the U.S. will soon be continuing education of adults because things are changing so fast in every field and occupation." The age of lifelong employment and secure professions is over, and there is a compelling need for targeted, competency-based training that will help leaders and professionals in all areas move from obsolescence to relevance. National Speakers Association President Phil Van Hooser says, "Not only do meetings help drive a vibrant and productive economy, but, with the right programs and speakers, meetings matter in developing leaders and a workforce ready to help invent a profitable future." In support of meetings, Van Hooser has challenged speakers around the world to use the platform to reinforce the message that Meetings Matter and to provide the content to help attendees make change work. More optimistic projections are surfacing. According to a poll conducted by Special Eventsmagazine, event planners are getting more optimistic about business for the rest of the year: Some 41 percent of special event professionals polled this summer by Special Events predict that the economy will start to recover this year, up from 7 percent of respondents in March. No matter what the short-term numbers indicate, meetings do matter. Meetings mean business. Meeting together, we can invent a profitable economic future and create the jobs that will help turn this economy around. It's time politicians and media experts focus on the importance of meetings rather than discount their value. Meetings are part of the answer in turning our economy around.
Questions? Comments? Funny Stories? Email
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bd4e60c49eaf2b25a198161da74805ae | https://www.cnbc.com/2009/09/23/prop-desk-fords-forecast.html | Investors are buzzing about Ford after CEO Alan Mulally suggested that things are looking up for the automaker.
As Ford unveiled The Figo, a car aimed at the market in India and Asia, Mulally also revealed some interesting insights into the company's future sales. He said Ford expects sales to grow to about 12.5 million in 2010. And that Ford expects to be profitable in 2011.According to published reports, Mulally's upbeat comments inspired some bullish speculation in the options pits.
As Ford gets business back into gear, what’s the trade?With Ford CEO Alan Mulally predicting a rise in sales over next 2 years and a strong presence in Asia, the Ambassador thinks this stock is worth watching. “I’d put fresh capital to work in this stock today,” says Seymour."I'm a buyer too," adds Joe Terranova.
VIDEO0:0000:00Have You Driven a Ford Lately?
______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send your e-mail to .
Trader disclosure: On Sept. 23rd, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova Owns (F); Terranova Owns (F) Calls And (F) Puts; Terranova Works For (VRTS); Najarian Owns (ACI) Call Spread; Najarian Owns (C) Calls; Najarian Owns (DELL) Call Spread; Najarian Owns (ERTS) Call Spread; Najarian Owns (GE) Calls; Najarian Owns (JPM) And Is Short (JPM) Calls; Najarian Owns (MS) And Is Short (MS) Calls; Najarian Owns (MSFT) And Is Short (MSFT) Calls; Najarian Owns (PALM) Calls; Najarian Owns (ORCL); Najarian Owns (TEVA); Najarian Owns (V) And (V) Calls; Najarian Owns (WFC) Put Spread; Najarian Owns (YHOO) Call Spread; Finerman's Firm Owns (MSFT), (NOK), (PBR), (WMT), (RIG), (TGT), (BDX); Finerman's Firm Owns (BAC) Preferred Shares, Finerman Owns (BAC) Preferred Shares And Owns (BAC); Finerman Owns (RIG); Finerman's Firm Owns (WFC) Preferred Shares And Is Short (WFC); Finerman Owns (WFC) Preferred Shares; Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (USO); Seymour Owns (AAPL), (BAC), (RIG), (SBUX), (FXI), (F), (TTM)
For Jim SuvaCitigroup Owns (PALM)Citigroup Has Received Compensation From (PALM)Citigroup Is A Market Market In Securities of (PALM)Citigroup Is A Market Market In Securities of (RIMM) For Dennis GartmanGartman Owns Gold
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b29819cc1705f75c38f1e7b379320664 | https://www.cnbc.com/2009/09/23/second-look-at-secondaries.html | It seems like the market is about to be flooded with secondaries again. Here are just a few that we found:E*TradeThe online broker raised $147 million of net proceeds through a common stock offering to shore up its capital base. The company, which has reported eight straight quarterly losses as delinquencies and charge-offs mounted, said it sold almost 80.23 million shares of common stock.
US Airways
The number 6 U.S. airline, said it planned to sell 26.3 million shares to the public. It did not disclose pricing, but such a sale would be worth about $138 million at the latest closing price.
Palm
The smartphone maker will offer 20 million common shares for $16.25 each, and expects net proceeds of about $313.1 million, according to a filing with the SEC on Wednesday.
What should you make of all these offerings?
I think it’s a sign of an improving credit market, muses Joe Terranova.
I expect more and more secondaries to come, adds Karen Finerman. It improves balance sheets and gives companies in desperate need of finance, such as the REITs, new life.It makes me nervous, counters Pete Najarian. It could be a sign of a top.
VIDEO0:0000:00Second Look at Secondarys
______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send your e-mail to .
Trader disclosure: On Sept. 23rd, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova Owns (F); Terranova Owns (F) Calls And (F) Puts; Terranova Works For (VRTS); Najarian Owns (ACI) Call Spread; Najarian Owns (C) Calls; Najarian Owns (DELL) Call Spread; Najarian Owns (ERTS) Call Spread; Najarian Owns (GE) Calls; Najarian Owns (JPM) And Is Short (JPM) Calls; Najarian Owns (MS) And Is Short (MS) Calls; Najarian Owns (MSFT) And Is Short (MSFT) Calls; Najarian Owns (PALM) Calls; Najarian Owns (ORCL); Najarian Owns (TEVA); Najarian Owns (V) And (V) Calls; Najarian Owns (WFC) Put Spread; Najarian Owns (YHOO) Call Spread; Finerman's Firm Owns (MSFT), (NOK), (PBR), (WMT), (RIG), (TGT), (BDX); Finerman's Firm Owns (BAC) Preferred Shares, Finerman Owns (BAC) Preferred Shares And Owns (BAC); Finerman Owns (RIG); Finerman's Firm Owns (WFC) Preferred Shares And Is Short (WFC); Finerman Owns (WFC) Preferred Shares; Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (USO); Seymour Owns (AAPL), (BAC), (RIG), (SBUX), (FXI), (F), (TTM)
For Jim SuvaCitigroup Owns (PALM)Citigroup Has Received Compensation From (PALM)Citigroup Is A Market Market In Securities of (PALM)Citigroup Is A Market Market In Securities of (RIMM) For Dennis GartmanGartman Owns Gold
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49026ec4f552d04c86509055c4bf9fbd | https://www.cnbc.com/2009/09/23/the-financial-crisis-this-dayone-year-ago-sept-23-2008.html | The Financial Crisis: This Day—One Year Ago, Sept. 23, 2008 | The Financial Crisis: This Day—One Year Ago, Sept. 23, 2008
A capital idea on Capitol Hill.
The stakes are high Tuesday as Treasury Secretary Hank Paulson and Federal Reserve Chairman Ben Bernanke head to Capitol Hill to make the case for their $700 billion bailout plan.
This Day 1 Year Ago - A CNBC Special Report - See Complete Coverage
Many members of Congress remain skeptical about the plan, reports Charlie Gasparino. The Treasury chief must convince legislators that the plan is not merely a Wall Street bailout, but a Main Street rescue, needed to ensure the health of the US economy.
Meanwhile, Wall Street is also fending for itself.
Goldman Sachs says it will receive a $5 billion investment from Warren Buffett's Berkshire Hathaway.
"It's a vote of confidence which is gold plated," says Michael Holland, money manager at Holland & Co. "You don't get better than this."
Top savings and loan Washington Mutual is talking to multiple suitors about a takeover deal, as well as exploring options to raise capital.
What You Were Reading:
Commodities Boom Is Back, Thanks to BailoutHow Will the Bailout Work? No One Actually Knows
Canada's Toronto-Dominion Bank is weighing a bid for all or part of WaMu, joining a mix of other suitors, sources tell Reuters.
Others weighing possible takeover bids for Washington Mutual include Banco Santander , Citigroup and JPMorgan Chase . HSBC and Wells Fargo also have looked at Washington Mutual, Reuters says.
Analysts generally agree that WaMu would be more attractive to bidders if the US government would buy some of WaMu's mortgage-related debt as part of the bailout.
The Crisis: 1 Year Later - A CNBC Special Report - See Complete Coverage
"It appears that investors do not believe that the TARP (Troubled Asset Relief Program) will be completed quick enough to help WaMu—and furthermore may not provide the support they need anyway,'' says Tim Backshall, chief strategist at Credit Derivatives Research.
Elsewhere, a return to normalcy—of sorts.
Barclays rehires 10,000 Lehman Brothers employees as a series of former Lehman units reopened on Monday under Barclays' aegis.
The Dow
S&P 500
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6a55ce5e634b4289466efcf05aebcc27 | https://www.cnbc.com/2009/09/23/the-internetthe-new-brain.html | The Internet...The New Brain | The Internet...The New Brain
I gotta admit it - the Internet makes me feel a bit like Gomer Pyle.
"Gaaw-aawl-ly""Shazam!" "Surprise, surprise, surprise!"
I am in total awe of how the Internet has changed my life:for the better, and yeah, even at times, for the worse.
But the Internet is our new world and as Cortes would instruct us: our boats are burned, there is no going back. We have no choice but to embrace and thrive in this new world of constant evolution at warp speeds.
And brace yourself-the Internet is getting smarter - way smarter than us.
Wired For ThoughtWired For Thought
Author and brain scientist (of course he's a brain scientist!), Jeffrey Stibel writes in WIRED FOR THOUGHT How The Brain is Shaping the Future of the Internetthat business leaders must think of the Internet as a 'thinking machine' - the first real replication of the human brain OUTSIDE the human body.
In the book, Stibel writes how the Internet is evolving into a brain and those companies, networks and Web sites that are able to leverage this insight will own the future.
The book goes on to make some compelling predictions including thelooming dangers that threaten social networking sites like Facebook and Twitter .
I asked the author to write a guest blog for Bullish to share his theory.
Guest Blog: "The Brain Behind the Internet Outperforms the Stock Market" by Jeffrey Stibel, author of "WIRED FOR THOUGHT."
You’ve heard this argument more than once, I’ll bet: Internet stocks are a risky investment. Having served as President and CEO for more than one publicly-traded Internet company, I have heard the cynical rhetoric of those who skim financial headlines: “Sure, Internet stocks perform miracles during boom years, but they always seem to come crashing down during bad economic times.” As a scientist, I’m hardwired to seek out proof, so I decided to see if the “fair weather” investment reputation that Internet companies and their stocks have been tarred with since the dot com bubble can be substantiated.
It turns out that Internet stocks are now some of the best (dare we say safest?) investments around.
Take for instance, a comparison of the recent performances of both theDow Jones Internet Composite Index and the Standard & Poor’s 500 Index. The DJINET is up 57% year- to-date, compared to 16% for the S&P 500. On a rolling 12 month basis (Sept 08-Sept 09), the Internet Index is up 6% as compared to a loss of 16% for the S&P 500. Even across the past two years (Sept 07-Sept 09), Internet stocks outperformed the traditional indices: down only 11% versus 30%.
To be sure, different indices will have different results but this is not a “just noticeable difference”: Internet stocks are outperforming their mainstay stock counterparts by a large margin.
And the reason, while hard for most people believe, is simple: The Internet is a brain!
We have forged swords to extend the length and power of our arms; telescopes and cameras to extend the power of our eyes; artificial hearts to mimic the organic pumps that beat in our chests. But as outlined in my forthcoming book—Wired for Thought—with the Internet, we have created something unlike anything humankind has built before.
Sure, this may all seem like science fiction, but I assure you there is far more science than fiction to this analogy. The brain is one of the most complex networks in the world, with more neurons than there are stars in the galaxy. Its hardware is a complex network of neurons; its software a complex network of memories. The Internet is also a network. Its hardware is a complex network of computers; its software a complex network of websites. The brain has neurons and memories; the Internet has computers and websites.
(The Internet is pictured here below on the left, the brain is pictured here below on the right)
Companies that possess the foresight to understand the flexible and evolving nature of the Internet are successfully leveraging this new “brain” to build better businesses, in good times and bad. And we have seen that trend gain increasing momentum over the last couple of years. As President of Web.com during that period, I had an opportunity to interact with scores of small business owners who came to view the Internet as more of a living, thinking business partner.
An understanding of the similarities between the Internet and the brain is what helps many Internet companies outperform the overall market. Just as the brain powers every part of our body, so too does the Internet improve the performance of companies who have the foresight to allow the Internet to power their company’s operations.
You may argue that is a brain and is like a brain is merely a matter of semantics, but either scenario allows you to navigate an unforeseen future.
Just as the battle cry in the mid- 19th century gold rush was “Go west, young man,” this century’s entrepreneurial battle cry is, “Go online!”
Entrepreneurs who view the Internet as a brain know where the Internet is headed and what it can mean for their long-term fortunes. The inevitability is no less obvious than that of the railroads pushing West. And by absorbing these ideas, it has allowed Internet companies to position themselves a few miles down the track—set up a depot and a water tower—and have it ready when they get there.
So, yes it may sound off-the-wall at first blush, but seeing the Internet as a brain has helped my teams develop companies worth hundreds of millions of dollars. It's an insight that will lead to the development of future businesses worth far more than that. More importantly, it is going to change the world as we know it, revolutionizing the way we think about the Internet and the way we think about ourselves.
______________________________
Jeffrey StibelJeffrey Stibel
Jeffrey M. Stibel, author of Wired For Thought, is a brain scientist and entrepreneur who has helped build numerous public and private companies. He is currently President of Web.com, a public company which helps entrepreneurs launch and grow their businesses on the Web. Stibel was the recipient of a Brain and Behavior Fellowship while studying for his PhD at Brown. He serves on the boards of a number of private and public companies, as well as academic boards for Brown and Tufts University.
Stibel is the author of the forthcoming book, Wired for Thought: How the Brain is Shaping the Future of the Internet, published by Harvard Business Press.
Questions, comments? bullishonbooks@cnbc.com
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43f211f9bbfeaf848cd78741aa232c79 | https://www.cnbc.com/2009/09/23/tony-fratto-if-youre-heading-to-pittsburgh.html | Tony Fratto: If You're Heading to Pittsburgh | Tony Fratto: If You're Heading to Pittsburgh
Fratto's Pittsburgh Favorites:
Bread: Mancini's Bakery in West Park neighborhood in McKees Rocks - what I grew up on; skipped eating lunch at school so I could buy a "stick" (baguette) on the way home.
Hot Dogs & fries: The "O" - The Original Hot Dog Shop (University of Pittsburgh's campus) Forbes Ave., Oakland. Seriously - the best hot dogs and fries anywhere. Don't order large fries unless you have a crowd.
Sandwich: Primanti Bros (Strip District - original location) It's all Pittsburgh - don't let it scare you. Just. So. Good.
Breakfast: DeLuca's Penn Ave. in the Strip District. Get the sweet sausage.
Italian Restaurant: Piccolo Piccolo, Wood Street, Downtown (get a reservation)
Non-Italian Restaurant: Mallorca on West Carson Street, South Side (Spanish - outstanding).
Pizza: Mineo's Pizza, Murray Avenue, Squirrel Hill. Love it - a post-Kennywood Park tradition.
Club/Lounge: Bossa Nova owned by my good friend Robin Fernandez. Very cool place.
______________________ Tony Fratto is a CNBC on-air contributor and most recently served as Deputy Assistant to the President and Deputy Press Secretary for the Bush Administration.
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78dd07eebc1dfa10599c2da5a6b7a877 | https://www.cnbc.com/2009/09/23/traders-bullish-on-this-oil-services-firm.html | Traders Bullish on This Oil Services Firm | Traders Bullish on This Oil Services Firm
Bullish traders were piling into Smith International yesterday, apparently betting that the oil services company will break through resistance levels that have been in place for months.
Smith International finished the regular session yesterday up 5.83 percent to $29.79 and rose to $30.28 in after-hours trading. The shares have not closed above $30 since June 12, having tested that level and pulled back a month ago.
More Options Tips from Jon NajarianOptions Tips from Pete NajarianRead The CNBC Stock Blog
Options activity blew away the average volume of 1,000 calls per day, showing more than 27,400 traded by the end of the session on . About 22,000 of those calls changed hands at the November 32 strike, most of them bought at the asking prices between $1.20 and $1.60.
There was ZERO open interest at the strike because these options just came online Monday following Friday's expiration, so this is fresh buying with conviction. The stock needs to rise more than 12 percent by late November for these calls to turn a profit.
Total calls at all strikes outnumbered puts by more than 6 to 1, another bullish indication.
___________________________Options Trading School:
Options Terminology: GlossaryBasic Strategies — with ExamplesOptions Basics: The ABCs
___________________________
Disclosure:
Najarian owns a call spread in SII.
___________________________
___________________________
Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of .
___________________________
Disclaimer
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e0c6eef7a68c25c7d3e8aef9fa4bfc0d | https://www.cnbc.com/2009/09/23/treasury-demand-strongmay-go-longer-strategist.html | Treasury Demand Strong—May Go Longer: Strategist | Treasury Demand Strong—May Go Longer: Strategist
During the height of the financial crisis, investors flocked to the safety of U.S. treasury debt and many on Wall Street are now calling the top in treasurys. So have bonds turned too risky? Kevin Giddis, managing director of Morgan Keegan and Michael Pond, strategist at Barclays Capital shared their insights.
VIDEO0:0000:00Bonds: Too Risky?
“There’s still such strong demand in the treasury market if you look around for available investments and we’ve seen the contraction of a lot of spreads,” Giddis told CNBC. “Treasurys continue to be the game in town … there’s still a great demand for treasurys and it may go on a while longer.”
Giddis said bonds have capital structure and their seniority to equity makes them less risky.
“At some point inflation is going to come back, but you’ve still got a window,” said Giddis. “You’re well into next year before this is a big problem. We can peak in yields to the downside in the next 3 to 4 months, but the buyers aren’t thinking 3 to 4 months out, they’re thinking about today. And the buying continues for the balance of this year.”
Investors should build long-term portfolios using municipal bonds, recommended Giddis.
In the meantime, Pond said most risk assets are all going in one direction while bonds are going in the other.
“Supply has increased dramatically over the past year,” said Pond. “We think next year’s supply in the coupon area in treasurys will be even greater than this year. Supply will continue to move up and we think demand for safe haven bid in treasurys will fade if we get the sustained balance in GDP that we expect.”
Pond suggested buying TIPS rather than normal treasurys because they offer very cheap inflation insurance.
Art Cashin: Fed's 'Reverse Repo' Program Won't HappenTrack Bonds Here
______________________________
Disclosure:
No immediate information was available for Giddis or Pond.
______________________________CNBC Slideshows:
The Biggest Holders of US Government Debt
______________________________CNBC's Companies in the News:
Berkshire Hathaway
Goldman Sachs
Buffett's Big Bet on Goldman Reaps a Huge Payoff
Bank of America
Bank of America Cuts Overdraft, Account Fees
Ford
Ford CEO says US Market Looking Good
Kraft
Cadbury CEO Says Past Deals Beat Kraft Offer
______________________________
Disclaimer
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6ccd62ffb2b0684a7db6134e069ae15c | https://www.cnbc.com/2009/09/23/whats-next-for-retail.html | VIDEO0:0000:00Retail Therapy?
The recession of the past year took its toll on the retail sector. And despite a stock-market rally throughout the spring and summer, in which these companies took part, pundits and the press said that the back-to-school season would offer no relief. Of course, we now know they were wrong, and VF Corp. has performed well regardless. That’s why Cramer has been such a big backer of the stock.
On its July 21 earnings call, the company announced it would survive the rest of the year, too, with its most difficult comparisons behind it. But a lot has happened since then. Consumer confidence is rising, retail stocks are firing up, and the economy looks ready to turn. If that’s the case, then VF Corp. , maker of Wrangler, The North Face, Vans and other big clothing brands, could do much better than anticipated.
Cramer wanted to know what to expect, so he invited CEO Eric Wiseman onto Mad Money. The CEO’s stock has climbed 31% since his last visit to the show, on Feb. 11. Will that upward trend continue? What’s in store for the entire sector? Watch the video to find out.
Cramer's charitable trust owns VF Corp.
Call Cramer: 1-800-743-CNBC
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com
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b61cb2f9e8a67cb23acabb4e2748f14f | https://www.cnbc.com/2009/09/23/your-first-move-for-thursday-september-24th.html | Here’s our Fast Money Final Trade. Our gang gives you tomorrow’s best trades, right now.
Tim Seymour says “it will be a shallow pull back but it will be a pullback. Petrobras to low 40’s.”
Joe Terranova suggests longGilead .
Karen Finerman prefers longBecton, Dickinson .
Pete Najarian says keep an eye on eBay , the stock is hot.
VIDEO0:0000:00Fast Money Final Trades
Click here to see other Final Trade posts.
______________________________________________________Got something to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! Prefer to keep it between us? You can still send questions and comments to .Trader disclosure: On Sept. 23rd, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova Owns (F); Terranova Owns (F) Calls And (F) Puts; Terranova Works For (VRTS); Najarian Owns (ACI) Call Spread; Najarian Owns (C) Calls; Najarian Owns (DELL) Call Spread; Najarian Owns (ERTS) Call Spread; Najarian Owns (GE) Calls; Najarian Owns (JPM) And Is Short (JPM) Calls; Najarian Owns (MS) And Is Short (MS) Calls; Najarian Owns (MSFT) And Is Short (MSFT) Calls; Najarian Owns (PALM) Calls; Najarian Owns (ORCL); Najarian Owns (TEVA); Najarian Owns (V) And (V) Calls; Najarian Owns (WFC) Put Spread; Najarian Owns (YHOO) Call Spread; Finerman's Firm Owns (MSFT), (NOK), (PBR), (WMT), (RIG), (TGT), (BDX); Finerman's Firm Owns (BAC) Preferred Shares, Finerman Owns (BAC) Preferred Shares And Owns (BAC); Finerman Owns (RIG); Finerman's Firm Owns (WFC) Preferred Shares And Is Short (WFC); Finerman Owns (WFC) Preferred Shares; Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (USO); Seymour Owns (AAPL), (BAC), (RIG), (SBUX), (FXI), (F), (TTM)
For Jim SuvaCitigroup Owns (PALM)Citigroup Has Received Compensation From (PALM)Citigroup Is A Market Market In Securities of (PALM)Citigroup Is A Market Market In Securities of (RIMM) For Dennis GartmanGartman Owns Gold
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6797d7c9f714385ba5a7d52d7a6b422b | https://www.cnbc.com/2009/09/24/american-greed-season-4.html | AMERICAN GREED - SEASON 4 | AMERICAN GREED - SEASON 4
The new season of "AMERICAN GREED" begins on Wednesday, January 27th.
The show will air on Wednesdays at 9PM, 10PM and 1AM.
Wednesday Jan 27 - American Greed #25
Wednesday Feb 3 - American Greed #26
Wednesday Feb 10 - American Greed #27
Wednesday Mar 3 - American Greed #28
Wednesday Mar 10 - American Greed #29
Wednesday Mar 17 - American Greed #30
Wednesday Mar 24 - American Greed #31
Wednesday Mar 31 - American Greed #32
Wednesday Apr 7 - American Greed #33
Wednesday Apr 14 - American Greed #34
Wednesday Apr 21 - American Greed #35
Wednesday Apr 28 - American Greed #36About CNBC:CNBC is the recognized world leader in business news, providing real-time financial market coverage and business information to more than 340 million homes worldwide, including more than 95 million households in the United States and Canada. The network's Business Day programming (weekdays from 5:00 a.m.-7:00 p.m. ET) is produced at CNBC's headquarters in Englewood Cliffs, N.J., and also includes reports from CNBC news bureaus worldwide. Additionally, CNBC viewers can manage their individual investment portfolios and gain additional in-depth information from on-air reports by accessing http://www.cnbc.com.Members of the media can receive more information about CNBC and its programming on the NBC Universal Media Village Web site at http://nbcumv.com/cnbc/.
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3682d12cdaffa2ef20e39caaeb4dd053 | https://www.cnbc.com/2009/09/24/chryslers-comeback-plan-and-hiring-outlook.html | Chrysler's Comeback Plan and Hiring Outlook | Chrysler's Comeback Plan and Hiring Outlook
After 3 months of kicking the tires and looking under the hood at Chrysler, CEO Sergio Marchionne is about to roll his game plan for fixing the troubled American auto maker.
AP
The Marchionne presentation will focus not only on the broader topic of bringing Chrysler back to profitability, but also on a fresh brand strategy and the models he plans to add, build upon, and push over the next five years.
To implement the plan, Chrysler will reverse course and start hiring more workers, while asking some of it's current staff to put in overtime. In essence, Chrysler is going from playing defense to playing offense.
What's the game plan? Separate, clearly define brands.It's long been a running joke in the auto industry. What's the difference between a Dodge Caravan and Chrysler Town and Country? The cup holders. The similar minivans have come to symbolize the problem with Chrysler and Dodge. Their line-ups have been, and continue to be, stocked with cars, minivans and SUV's that are trying to attract the same buyer. Sure, there have been a few models that have stood out and differentiated themselves (Chrysler 300C, Dodge Charger), but for the most part they have been indistinguishable, and largely forgettable. That will change, with each brand becoming more distinct.
Chrysler: Look for the brand to go more upscale from its current positioning. Company executives have talked about putting Chrysler on a level with Lincoln and even Cadillac. That's a lofty goal. If Chrysler is going to achieve that level, it will have its work cut out.
Marchionne's Chrysler Surprise: A Weaker than Expected Company
Dodge: To differentiate from Chrysler, look for Dodge to build off its performance background and emphasize driving dynamics and technology. If Dodge is going to be the mass market brand Marchionne envisions, it will have to turn around its track record of cranking out lackluster cars.Jeep: It has the strongest brand name, and should be the easiest for Chrysler to parlay. A model like the Wrangler is a winner. Now Jeep needs to expand that success, especially on the lower end of the market.
Leveraging Fiat platformsWhile Chrysler will not be importing and selling the entire line-up of Fiat models, it will be using Fiat platforms and technology to rapidly expand its offerings with fuel-efficient cars. That means building models in the A, B, and C segments that connect with buyers who traditionally have not considered Chrysler, Dodge, and Jeep models for fuel efficiency.
The smallest, the A platform models will be covered by the Fiat 500, and Fiat 500 convertible coming in early 2011. Six months later, look for models built off the platform used for the Fiat Panda, a popular hatchback in Europe.In the C/D segment, where Chrysler offers the Dodge Caliber, Jeep Patriot and Jeep Compass, Fiat plans a flurry of new models including a mid-size crossover to hit showrooms by 2013 and a compact sedan.
Keep in mind, Fiat is not planning to simply replicate its models in the U.S. Nor will it ditch Chrysler, Jeep and Dodge models all together. In fact, I'm told a new Chrysler Sebring and Jeep Liberty are part of the early plans. Above all else, Fiat will use its expertise in small cars to help Chryslers three brands work their way into those segments. Its already making plans to transform its plants in Belvidere, Illinois and Toledo, Ohio to build B and C segment cars.
Come November, Marchionne will unveil his game plan publicly. Until then, he remains a CEO saying little about turning around Chrysler, but promising to match the success he has enjoyed at Fiat.
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b80f917ca731d64c0deb4b8f0b3079e2 | https://www.cnbc.com/2009/09/24/cnbc-transcript-cnbcs-becky-quick-speaks-with-billionaire-investor-warren-buffett-today-on-cnbcs-squawk-box.html | CNBC TRANSCRIPT: CNBC'S BECKY QUICK SPEAKS WITH BILLIONAIRE INVESTOR WARREN BUFFETT TODAY ON CNBC'S "SQUAWK BOX" | CNBC TRANSCRIPT: CNBC'S BECKY QUICK SPEAKS WITH BILLIONAIRE INVESTOR WARREN BUFFETT TODAY ON CNBC'S "SQUAWK BOX"
WHEN: TODAY, WEDNESDAY, SEPTEMBER 16TH
WHERE: CNBC'S "SQUAWK BOX"
Following is the unofficial transcript of a CNBC interview with billionaire investor Warren Buffett.
All references must be sourced to CNBC.
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BECKY QUICK: Welcome everyone. We are here at Fortune's Most Powerful Women conference with Warren Buffet, who is one of just three men who made it into this conference. Warren, thank you very much for joining us today.
WARREN BUFFETT: That's right. Thank you.
BECKY: How'd you-- how'd you make it into the women's conference?
BUFFETT: Nobody knows. I mean-- for a guy that couldn't get a date in high school this is Heaven, I can tell you that.
BECKY: You know, we've been looking back at a year later. We are one year out from Lehman's and a lot of people are trying to figure out whether it was the right choice, whether it was the wrong choice. There are some people who say if Lehman didn't fail the rest of the-- the capital markets would not have survived. What do you think?
BUFFETT: Well, I think -- I think Lehman was destined to fail unless the government came in big time. And -- you know, for one reason or another the -- they generally said they didn't have the authority. My experience usually is it that whatever the government wants to do, they find the authority, but if -- if -- listen, if Merrill Lynch hadn't gotten sold on -- on -- on -- on Sunday -- what would have happened Monday would have been off the charts.
BECKY: So the
BUFFETT: We'll
BECKY: -- more important
BUFFETT: -- we're
BECKY: -- one to save?
BUFFETT: Lehman -- Lehman probably should have been -- not saved isn't the right world -- word, but transferred in some kind of an orderly manner. I mean it was -- it was the chaos that came after the fact that it just -- it just happened and there was total disorder. And I think the trustee for Lehman has said between $50 and $75 billion at Lehman itself was lost unnecessarily because of the disorderly way that the liquidation took place.
BECKY: Obviously there were a lot of calls that were going on behind the scenes at that point. Were you a part of any of those calls?
BUFFETT: Oh, I -- I got a call. I was in Edmonton -- at a social event that -- I was at the hotel about 6 o'clock or so Edmonton time. And I did get a call from -- from -- the head of -- the head of Barclay's -- Bob Diamond and -- and Michael Klein, who was an investment banker. And they had just learned apparently that the British authorities would not allow them to take over all of Lehman. This was not just the part that they took over later. But they were -- they were talking about -- about coming in and taking over Lehman. And the British authorities had said if -- if it involved more than three billion pounds, as I remember, it needed the vote of shareholders and that couldn't take place 'til sometime later so they were asking if we would write an insurance contract that would protect everybody on the other side of trades until they got that shareholder approval. So they were looking for a solution I can tell you at about 8 o'clock on -
BECKY: On Saturday?
BUFFETT: -- on Saturday. And 8 o'clock in the evening. And -- they didn't find one.
BECKY: Were you surprised? I mean it -- what happened? Did you turn down this offer? What happened?
BUFFETT: Well, what happened is they described the transaction to me that I really couldn't grasp -- quickly. And so I asked them to send me a fax at the hotel. I was gonna go to the social affair that would break up around midnight. Send me a fax, that explains the transaction in detail so I could understand it. Tell me how much of a limit they needed and -- how much of a premium they would pay. And then I would get back to them promptly. I'd call 'em that night. And -- 'cause it was a complicated transaction they were describing. I didn' t -- I didn't fully understand it and people were waiting for me downstairs. Anyway -- when I got back to the hotel that night around midnight, but there was no fax. Apparently it blew up at some point in that period.
BECKY: What -- what did you hear afterwards? That -- did they explain to you why or what?
BUFFETT: Well, I -- no, I -- I don't know why they felt the transaction was unfeasible or I don't know if for some other reason that Barclay's decided they couldn't go ahead with Lehman at that point. And as you know, a few days later they actually made a transaction with the broker-dealer arrangement. But -- the way I understood it on Saturday at 8 o'clock New York time or so was that -- that -- one of the authorities in -- in England had ruled essentially that if it involved more than, I think, three billion pounds that they couldn't do it without shareholder approval.
BECKY: Did you get other phone calls that weekend?
BUFFETT: I (LAUGHS) got a lot of phone calls. I had a phone call on Friday night -- the Friday -- late Friday afternoon -- on AIG. And they -- they were gonna need many, many billions of dollars by the following Wednesday, so I went down to the office on Friday night and looked hard at whether we might possibly buy a very large property casualty operation from them. And -- spent a few hours then. And then I called (AIG CEO) Bob Willumstad and I said, "Unfortunately -- I can't do this deal. And don't waste your time with me, so go someplace else." Then on Sunday after I got back from Edmonton, AIG was in the picture again and they were looking for an insurance policy in connection with an offer that was being made for AIG. I think it was by Chris Flowers and perhaps KKR, a few people.
BECKY: Right.
BUFFETT: A few people. And they said they were gonna get goin' to a board meeting and decide whether they were going to accept this. But if they did accept it would we be good on a certain type of reinsurance transaction. I said I thought we would. But then that blew up on Sunday night, so it was -- a lot of action.
BECKY: Is this different than any time you'd ever experienced before?
BUFFETT: It was --
BECKY: That were --
BUFFETT: -- it was -- except for the Solomon experience I had in 1991, when I was more directly involved. This was a very extraordinary weekend.
BECKY: What did you see in the AIG deal, in the offer there that you -- that you thought, "Forget about it. This is not gonna work?"
BUFFETT: I just -- we were talking about buying a property casualty operation that might have sold in the $25 billion range. And what I saw indicated to me I wouldn't have wanted to pay that in the first place. And beyond that it would have required New York State Insurance Department approval and who knows was else. And I just -- there was no way to hand a lot of money by Wednesday the next -- the next week.
BECKY: And in hindsight do you have any regrets about any of the decisions you made that weekend?
BUFFETT: No. I -- I mean the -- the -- I should have been probably doing other things too. No, I -- I'm -- I am -- I am glad we didn't buy that particular insurance operation. I would have done the reinsurance transaction that was involved on Sunday night. The Lehman thing I still don't understand, even to this day, exactly what the transaction was. No, it was -- it was -- it was a movie to see but not to -- participate in.
BECKY: We are one year out. When-- in-- in the worst of it last year, what was-- the worst possible thing you could imagine happening that didn't happen?
BUFFETT: Well, I think if-- if the-- country and the Fed. I mean if Bernanke and Paulson and whoever else was involved with the decision, but if they hadn't have stepped up to guarantee-- in effect guarantee commercial paper and guarantee the money market funds-- the meltdown would have been immediate. I mean it-- I don't-- it-- it's hard to tell how far it would have gone. But it would have gone-- it would have gone further than anybody would have wanted to-- to see. And that-- you can argue, (LAUGHS) if Bank of America hadn't bought Merrill Lynch on Sunday, on Monday I think Merrill would have gone. I mean-- and so if you had Lehman and Merrill go in the same day-- who knows what would have happened.
BECKY: Who do you think the biggest heroes are?
BUFFETT: Well, I think the heroes are-- are-(Federal Reserve Chairman) Bernanke. I think (former Treasury Secretary) Paulson's a hero. I think (current Treasury Secretary) Geithner's a hero are-- I-- I-- you know, you can look back and say you could have done this a little differently or that a little differently, but at the time I called it an economic Pearl Harbor and in the end we got through Pearl Harbor. And-- and it could have turned out a lot differently.
BECKY: There are some people, including (bank analyst) Meredith Whitney, who say-- we've just kicked things down the road. That the banks-- are-- are still struggling. That we have a lot of problems that could still come up from credit cards, from other areas, from consumers getting pinched for-- needing credit. Are we through the worst of it? And--
BUFFETT: Oh, I think we're certainly-we're through the worst of it in residential real estate in all probability. And-- and-- and the reason is we're building a lot fewer houses and we're-- and we're forming households, so that solves itself over time. Doesn't do it in a day or a week, but it solves itself. So we're further on that. We're gonna have unusual losses in credit cards and in commercial real estate, all of that. But we're a lot better off than we were a year ago. I mean for one thing on some of the-- some of the toxic assets have been flushed through. There's been capital raised. There's -- we're immeasurably better than we were-- off than we were a year ago.
BECKY: But is there a risk of a second downturn? Will unemployment levels climb to a point where it becomes a leading indicator rather than a lagging indicator?
BUFFETT: I-- I think the odds are very much against getting significantly worse. It's sort of plateaued at the-- at the bottom right now, but if you got some horrible exogenous event, some-- some, you know, 9/11-- type event or worse-- you know, you could have something that would be dis-- really disruptive and start things all over again. But in terms of problems that we've identified and are working with, we've got more to come. But we're-- we're-- we're past the-- we're past the critical point.
BECKY: What are the most important economic indicators that you watch? Is there a series of numbers? Are there-- some statistics that you look at most closely?
BUFFETT: Well, I look at our businesses every day. But I-- I look at everything. I mean I-- I-- I look at car loadings. I look at the Fed's balance sheet. Whatever it may be. I mean I-- and-- and we have not bounced-- but we've quit going down. I'm and-- and it-the world will come back. I've never been able to tell whether it's gonna be a week or a month or-- six months. But we are on the mend. And-- and if you look at-- at housing prices and activity in the mid to lower price range, it changed dramatically from a year ago. We're seeing some stability.
BECKY: All right. Let me go at this another way. Let's pretend you're on a desert island for a month. There's only one set of numbers you can get. What would it be?
BUFFETT: Well, I would probably look at-- perhaps freight car loadings and-- perhaps-- and-- and truck tonnage moved and-- but I'd want to look at a lot of figures.
BECKY: You are the biggest shareholder-- Berkshire Hathaway is the biggest shareholder in Kraft. Is the Kraft bid to go after Cadbury a good one?
BUFFETT: Well, it's a pretty full one. I mean-- the-- Kraft-- Kraft has got-- anytime you're in a takeover, you know, that-- the animal spirits run high and all of that. But Kraft has the disadvantage of using an undervalued stock. So if you-- if part of your currency is a stock that's worth more money than it's selling for and you're-- you're paying full negotiated value for the other guy's property and you wouldn't sell your own property for anything like the market price, it's-- it's a-- it makes it a tough game. So it's-- it's a full price.
BECKY: Are-- that makes it sound like as if you're not in favor of this bid?
BUFFETT: No, I-- I've got a lot of confidence in (Kraft CEO) Irene Rosenfeld. She'll-- but they have to do a lot of things right to justify this price.
BECKY: You know, Warren-- at the last filings released for the SEC it showed that you were selling-- some of your healthcare holdings. WellPoint, United Healthcare. Is that because you worry that the healthcare proposals out there in Washington might now affect the business?
BUFFETT: No, those are not my holdings. Those are Lou Simpson's. I've never bought a healthcare shock that I-- any-- well, jobs-- jobs in a healthcare stock. But in terms of the-- of the-- of the insurers or providers-- those are not my holdings. I-- I've never bought a share in WellPoint or United Health.
BECKY: What do you think about the-- the talk towards health care and where things are headed right now?
BUFFETT: Well, I think that-- unfortunately, I think that the -- what-- what-- we're really talking about reforming health insurance more than health care. So I-- the incentives that produce the 16 or so percent of GDP that's going to health care, I think unfortunately they're getting-- they're going to get changed. But-- so I think that we really-- and I'm talking as much about reforming health care as we're talking about reforming the insurance. And I think that will be an opportunity missed if we don't do more about looking at what-- what the incentives are in the present system and what they would be in an ideal system.
BECKY: And then finally, if-- if you had to-- give a gauge of where you stand on the economy again right now-- versus what you were thinking three months ago, is it the same? Is it better?
BUFFETT: It-- it hasn't gotten worse. It hasn't gotten much better either. But the very fact that time is passing, it's-- it's gotten better in residential real estate. That's important. Certain things haven't hit much yet. Commercial real estate, for example. But we are moving through a recession. And-- and-- and I see nothing that makes me worry about the fact that it's going to be worse than I would have thought three months ago.
BECKY: And, again, Warren, we want to thank you for your time for joining us today.
BUFFETT: Thank you.About CNBC:CNBC is the recognized world leader in business news, providing real-time financial market coverage and business information to more than 340 million homes worldwide, including more than 95 million households in the United States and Canada. The network's Business Day programming (weekdays from 5:00 a.m.-7:00 p.m. ET) is produced at CNBC's headquarters in Englewood Cliffs, N.J., and also includes reports from CNBC news bureaus worldwide. Additionally, CNBC viewers can manage their individual investment portfolios and gain additional in-depth information from on-air reports by accessing http://www.cnbc.com.Members of the media can receive more information about CNBC and its programming on the NBC Universal Media Village Web site at http://nbcumv.com/cnbc/.
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a2995077561b6bc8ff6e3d4b53e18324 | https://www.cnbc.com/2009/09/24/cnbc-transcript-cnbcs-maria-bartiromo-speaks-with-president-bill-clinton-today-friday-september-18th-on-cnbcs-closing-bell-with-maria-bartiromo.html | CNBC TRANSCRIPT: CNBC'S MARIA BARTIROMO SPEAKS WITH PRESIDENT BILL CLINTON TODAY, FRIDAY, SEPTEMBER 18TH ON CNBC'S "CLOSING BELL WITH MARIA BARTIROMO" | CNBC TRANSCRIPT: CNBC'S MARIA BARTIROMO SPEAKS WITH PRESIDENT BILL CLINTON TODAY, FRIDAY, SEPTEMBER 18TH ON CNBC'S "CLOSING BELL WITH MARIA BARTIROMO"
WHEN: TODAY, FRIDAY, SEPTEMBER 18TH AT 4PM ET
WHERE: CNBC'S "CLOSING BELL WITH MARIA BARTIROMO"
Following is the unofficial transcript of a CNBC interview with President Bill Clinton, today, Friday, September 18th at 4PM ET on CNBC's "Closing Bell with Maria Bartiromo."
All references must be sourced to CNBC's "Closing Bell with Maria Bartiromo."
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MARIA BARTIROMO: Mr. President, good to have you on the program.
BILL CLINTON: Thank you, Maria.
MARIA BARTIROMO: Thanks so much for joining us. The fifth-- Clinton Global Initiative (PH)-- congratulations on that. Tell me about the progress the last four years, and what you're expecting from this CGI.
BILL CLINTON: Well, in-- in the first four years, we've had a total-- of more than 1400 commitments involving-- far more than that, thousands of our people, 'cause a lotta people do them together. Over a ten year period, those commitments will be worth $46 billion in (?) everything from building a clean energy future to alleviating poverty to p-- helping people go to school or college and dealing with the healthcare challenges in America and around the world.
Already, more than 200 million people in more than 150 countries have had their lives improved in some measurable way by this work. So, the idea of bringing people from all walks of life f-- all over the world together to just discuss these things and then come up with a concrete action, and saying to people, "We want you to make a commitment and to keep it"-- turned out to be a magical, simple, powerful thing that has kept us going now through five meetings. We're about to have another one. And it looks like it's gonna be a success.
MARIA BARTIROMO: That's terrific. Now this year, we're coming off the worst recession in-- in a generation. Have you seen any reluctance on the part of some of the participants? What are you expecting in terms of commitments--
BILL CLINTON: Well-- here's what I know so far. We have almost exactly the same number of people paying to come as came last year, which surprises me. And we may actually-- equal or even exceed our number last year, so that surprises me. I will be surprised if we-- have the same dollar amount, for one simple reason. The most expensive commitments are those that involve clean energy.
And I just think that the-- first, there's not that much money around. And secondly, the markets for more energy production in the areas-- in many countries is down because the growth has been down. But it looks to me like, based on what I've seen so far, that we're gonna raise a h-- a huge amount of money-- to do the things that we normally do, and that we'll be-- we'll be doing very well in energy projects in low-income countries and in all kinds of anti-poverty and healthcare and education areas.
And we've (?) gotten an unusual amount of interest in corporations now in trying to figure out how to build real markets in poor countries. The other day f-- in-- in my own foundation, (CLAP) for example, we had-- a major pharmaceutical company join with us in reducing the price of a tuberculosis drug-- Pfizer. And they'd never done it before. You know-- they cut that 60 percent. It's the only drug we know of that people who are HIV positive and have tuberculosis can take without just being paralyzingly sick.
And I talked to the new president. And he said, "Well, look, we were marketing all of our products to 15 percent of the world. And now we have to figure out how to reach 100 percent." So-- the interesting thing to me is how many business people are now thinking, "You know, this should be good business to actually help lift (?) learning s-- and lift health and lift income standards in-- countries that can either be our customers, or maybe in the future, our employees."
MARIA BARTIROMO: It's so important, but also a business opportunity
BILL CLINTON: Yeah.
MARIA BARTIROMO: So it's-- and they're-- they're recognizing it. You have a special session on-- on Tuesday called the G20 (PH)-- ahead of the-- World Leaders-- Meeting (PH) in-- in Pittsburgh. What do you think those leaders should be prioritizing at that meeting? What are you expecting out of this session?
BILL CLINTON: Well, first of all, let's talk about the G20. So-- I'm sure all of your viewers know, but the first-- group of countries that went beyond the G8, the emerging markets of the future and mostly big countries with sizable economies-- began to meet in my second term in the aftermath of the 1998 financial crisis, which was mostly in Asia but also gripped Brazil.
And it was obvious that those countries were being really affected by the decisions of the Monetary Fund, the World Bank and the big economies themselves-- the European Union, the United States, Japan. They wanted to be a part of that-- China, India, Brazil, all the other members of the G20.
And now-- in the aftermath of this latest financial crisis, the G20 was seen as an essential instrument of global recovery, because we knew it wouldn't be enough for the U.K. or France or Japan or America to come back alone. And China knew that in order for its growth to continue it had to have customers for its products. It's interesting, China had $2 trillion, no financial problems, but they had 35 million unemployed factory workers because the Europeans and the Americans couldn't buy their products anymore.
So, I think that there's a general awareness that we have to go beyond the G8 to have more players in a global economy if we're gonna have balanced growth and mutual benefits. And I just wanna hear these people talk in advance of the G20 about what the long-term future is and whether there's anything both the businesspeople who are here and the non-governmental actors who are here can do to strengthen broad-based economic growth in those countries.
MARIA BARTIROMO: Before I ask you what you're expecting out of the Global Health Panels (PH) in-- in sessions at CGI, what are your thoughts on the current debate? You and your wife, Secretary Clinton, have spent so much time trying to make a change in healthcare. Do you think that a public plan will actually accomplish what you think needs to be accomplished?
BILL CLINTON: Well, what I-- I think-- l-- let me back up and say-- first, I think that the President was right to take up healthcare reform. I think it's not just about extending coverage to people who have coverage. It's about ensuring that the people who already have coverage will be able to keep it at a price they can afford.
It's about ensuring that people who practice medicine and deliver healthcare will be able to do that in the future without having to spend more and more and more of their time shuffling paper and navigating the finance system. And I believe a bill will pass which will make it better, because there is not anywhere near the potential for a filibuster in killing it now, that there was when I tried it.
Because we have all the same problems now we had then, except they're worse. Because-- the American people want it to happen. And because, frankly, I think the-- the-- some of the Republicans are a little more open to working with the President and (?) that they don't have the-- the same capacity they did in '94 to shut it down. All they needed were 41 of the 45 Republican Senators to kill anything. And I couldn't get five of them.
So, I-- I think we'll get a bill. Now, I think that-- I think that-- that the President did the right thing that (?)-- now, on the public option, let's just talk about what the real issue here is. The real issue is, if the people who don't have insurance now are the people who might lose it in the future-- a small business can no longer afford to provide for its employees, for example, even with the new subsidies-- if they go into the marketplace in a given state and they can't afford a policy, will the plan fail if there-- they don't have an option like a public option? That's-- again, that's what the f-- federal employees' health insurance is in a way. It's a public option but it's provided by private companies.
Medicare is the clearest example. Medicaid-- that-- that's-- the-- military system-- all of these things have m-- a greater or lesser degree of public involvement. The real argument for the public option is to guarantee, not that you displace the insurance companies, but that there will be an affordable option. Now, Senator Snowe from Maine says that we should create it and keep it in reserve, and it should only be available in states where there is no effective competition, where there are no affordable policies.
That's what the government wound up doing with the senior citizens drug program. I don't know if you remember this, but they-- they said that the government can't go in and bargain for lower prices-- buying the drugs in bulk-- unless the prices are clearly way out of line with what should otherwise be available.
So what happened in that framework with the backup, is all this (SIC) companies came in and competed with each other and the program actually has cost less than we thought it would in the beginning. So, maybe what they'll wind up with is a public option that can be brought into play if there's no competition. The main thing is, you don't wanna get a market that is so dominated by one or two companies that they can charge whatever they want, and de facto, you won't get the-- the coverage you wanted (?).
And keep in mind, those of us who have coverage should want everybody else covered. Because when people aren't covered, what happens is, they do get healthcare when they need it. But it's too late. It's too expensive. They get it in the emergency room when they're-- got some advanced condition or some horrible accident. Then all of those costs get passed on to the rest of us. So, my sh-- short answer is, that's why I like the public option. But maybe what will happen is-- since some people don't want more government involvement than is necessary in the healthcare system-- maybe it'll be brought in as a reserve if there's no other competition.
MARIA BARTIROMO: Are you surprised at how divided the country has become about this? I mean, President Carter said part of the upset over the healthcare reform is-- and he said-- overwhelming-- he said an overwhelming part of the criticism of President Obama's plan has to do with racism. Do you agree with that?
BILL CLINTON: No, I agree with the President on that. I think the-- (COUGHS) I think that he has to win the argument on the healthcare. It may be that some of his more extreme critics also are racially prejudiced. But they're the same-- those people were opposed to what I tried to do when I tried to do it.
And so, I think they also are against him on healthcare. So, I-- I think the-- this is a battle that has to be fought on healthcare. He got a majority of the vote in November. He's had approval ratings that went well above a majority. Most Americans are way over being divided racially. They think our diversity is a big asset for us in the 21st Century. And they wanna be free to disagree.
So, I-- I-- I th-- and I think President Obama and the White House said it just right-- that we-- there's no question that some of the extreme critics that he's had, some of the crazy things that have been said about him were said by people who are also racially prejudiced. But the core of this battle is over what kinda healthcare system we should have. And President Obama recognizes that. That's the battle we oughta fight.
MARIA BARTIROMO: That's-- that's right. It's not about race.
BILL CLINTON: That's correct. He's gotta win the-- you gotta win the healthcare argument. And-- (LAUGHTER) I thought his speech was very good. And I think we're gonna win it.
MARIA BARTIROMO: Global Health at CGI-- let's talk about that. You-- you-- you make-- some really important points, kicking off the sessions with the fact that more than 70 million children will not see the inside of a primary classroom-- Global Health on Education. Two hundred twenty-six million won't continue on to secondary school. Add to that so many global health issues-- the world faces. What kind of progress can be made? What can corporate America do in particular?
BILL CLINTON: Well, first, let's focus on-- on the education issue, on how inexpensive it would be to put a lotta these young kids in school. When I was in my last year, we allocated $300 million of your money, tax money, to give to poor countries to feed children that were poor, if the kids would come to school to get the meal.
That program's still in place. That $300 million increased school enrollment by six million, 50 bucks a kid. That's how much just the inducement of a good meal every day got people to school. Now, I don't wanna oversimplify this. You also have to have school facilities. You have to have a teacher. You need some learning materials. But the point is, it doesn't cost a lot of money in a lotta these poor countries.
Secondly, if you think about them as future customers, future employees, every year of schooling in a country with a per capita income that's under $2 a day adds ten percent to earnings every year for life. Just one year. So you get massive benefits. I'll gust (SIC) give you an example-- that I'd (?)-- I visited one of the college education programs in Haiti which I have supported, which has been a CGI participant.
And they give scholarships to young Haitians who will go to school there if they graduate first in their school classes anywhere in rural Haiti. Almost all those kids-- well, first of all, all of them now who have graduated have stayed in Haiti. They haven't left-- unless they left to go to school more. Nobody's chosen to make a living outside Haiti. They all go to work immediately for salaries four to ten times the national average.
So, this is a big economic issue. And what should be done, in my opinion is, that when businesses should either sponsor their own schools for either enrollment or efficient building or learning materials, supporting the teachers, or they should work through a local non-governmental group to do that, if there is a big program in areas where they're otherwise active. Because all they're doing is making more customers for the future. And they're creating political and social stability in the country by getting kids off the streets or outta the workforce and into school.
MARIA BARTIROMO: And as far as global health, what are the most important issues that corporations need to focus on?
BILL CLINTON: I think-- first, the basic things-- clean water. A billion people have no access to clean water. Then let's look at what (?)-- 25 percent of the deaths every year-- and far more in poor countries-- are from AIDS, tuberculosis, malaria and infections related to dirty water. So making sure that there's elemental-- healthcare clinics and basically train paramedical workers who can diagnose and get medicine to these people, that's really important.
I-- I find-- you know, we sell this AIDS medicine all over the world. We're now doing the same thing thanks to the Gates Foundation partnership with discount tuberculosis medicine. I mean, malaria medicine. I just mentioned our partnership with Pfizer on tuberculosis. Not many of these people are gonna die because they can't get medicine 'cause it's too expensive.
They're gonna die now because there are no healthcare networks out there to find them, to test them, to deliver the medicine, to check on them, see if they're taking it. So, this is an enormous opportunity for corporations and for our country, I might add. I'll never forget, we announced this malaria program in Tanzania on a Sunday afternoon a couple years ago in an area that was 98 percent Muslim.
And keep in mind, k-- Tanzania's one of the places our embassy was blown up by al-Qaeda operatives in 1998, right? So, I know these people didn't agree with President Bush's Iraq policy. But in a village of 2,000, 12,000 people showed up for the announcement. And what those people knew about America was that-- and most of 'em didn't know me-- I mean-- you know, I hadn't (?) been in office in awhile. They just knew that the Americans were comin' and they wanted 'em to live. They wanted their children not to die of malaria.
This is not rocket science. This is the-- the economic and social and political benefits of saving these children is breathtaking. And-- so, that's what I would like to see the business community focus on. They can-- we now need the kind of basic organizational-- structures that are second nature to business out there in the healthcare networks of the world.
MARIA BARTIROMO: You went to North Korea and was (SIC) able to rescue those two female journalists. I think the country was just in awe that you did that. Can you tell us about the trip-- about seeing Kim Jong-Il? What was it like?
BILL CLINTON: Well, let me say first of all, I was honored t-- to do it. And-- it was a wonderful experience. And those young women are very impressive. I was-- I was even-- I felt even better about doing it after I met them and saw what good people they were. And they-- and I met their families. And, you know, it-- it was an amazing thing.
I had a very good talk-- with Kim Jong-Il. But I have not talked about it for a simple reason. Then (?) the minute I got back and I debriefed the Secretary of State-- the National Security Advisor and the President and offloaded all that, everything important that happens from now going in involves a decision that either the-- someone in the Obama Administration has to make and execute or what the North Koreans do.
And the reason I haven't said more is, I don't want anything I say could inadvertently complicate the potential for progress. And Americans should be encouraged. I mean, look what's happened since those young women got back. We've had-- the Korean released and the prospect of new harmony and new cooperation between the t-- two Koreas and the announcement that North Korea will accept our special envoy-- Ambassador Bosworth (PH), who's a very good man, to come there and have a meeting.
And so, that's all I can tell ya. They-- I-- these countries have gotta decide where they're going with this relationship and these larger issues. And I don't want anything I say to inadvertently have an impact on that. So, I've-- I told the White House I wouldn't talk about it. And I'm not goin' to.
MARIA BARTIROMO: I understand. The economic crisis-- there has been a lot of talk about what transpired throughout this crisis. What do you think as you look back during the years of real economic euphoria under your Presidency-- when, you know, we-- we were looking at these euphoric days, the stock market surplus? Could things have been done differently? Should we not have had these theme-- as a country-- government-- the media-- that everybody should own a home? What do you think? Perhaps the steps could have been different.
BILL CLINTON: Well, I think at some point-- we all wanted to maximize home ownership. We got above two-thirds ownership for the first time when I was President. And I think that one of the reasons that we wanted to do it so badly, apart from the-- the dignity, the sense of achievement it gives a family to have their own home, is that so many Americans had all their savings in their home.
That is, you know, that otherwise the-- the savings rate of Americans was quite low even when we had a lotta prosperity. And then in the last decade, it actually got-- to zero or negative levels. Now, interestingly enough, even in this tough times, it's three to five percent. It's coming back.
So, I wanted some savings out of it. And I thought we could-- go to two-thirds. I didn't know if we could go to 70 percent. I didn't have to make that decision, because when I left it was about 67 percent. The-- we began to worry in 2000 about-- Fannie Mae and Freddie Mac and whether the-- the secondary mortgage institutions, whether they were taking on too much risk. But the way they really got in trouble was 2004 to 2007-- you know, with all those securitized and subprime mortgages and all of that.
I think that really is what caused the problems. The-- the thing that happened right after I left office, the little slow down we had when the tech market bubble burst, I think that's-- was just normal. You know, the markets go up and down. There was a lot of exuberance. And I remember when the-- whether the technology bubble burst, the demand for information technology services grew-- it's unbelievable-- from 1999-- 1997 to '99--
MARIA BARTIROMO: We (?) remember.
BILL CLINTON: --at 500 percent a year. Well, a lotta people made investments in that market based on that projection. Nothing can grow like that forever. But when it burst, it fell to a growth-- information technology services-- of 50 percent a year. Most businesses (NOISE) would kill for 50--
BILL CLINTON:--percent growth. In other words, it showed that while there mighta been exuberance in the investment sector, it was sort of on the top of still a very big long-term trend. What happened here with-- less oversight from the SEC and with the mistakes that were made-- both in the private sector at-- places like Bear Stearns and others-- was the-- the system crashed.
So, w-- if we'd had a different SEC, might it have made a difference? P-- perhaps. If we-- had moved on-- the risk exposure of Fannie Mae and Freddie Mac, would it have made a difference? Perhaps. But the main thing is, we were-- we had private institutions that were too heavily leveraged that were basically generating growth and income for themselves out of turnover transactions that had no benefit for the underlying economy.
And that's what we have to avoid now. I think the most important thing is to talk about-- we're gonna avoid now. Warren Buffett and-- and-- John Bogel (PH) and Pete Peterson (PH), a number of other distinguished American businesspeople, have recently issued a report for the-- Aspen Institute-- on the short-termism of American (UNINTEL). You know, how much-- that we all wanna turn a profit every quarter and we think we always have to be turning over things.
And basically, they argue we should be thinking about investment as what it does to productivity and business services and long-term employment and long-term growth. And they give a lot of-- recommendations. I would recommend that every person watching this program and the people in the-- Obama Administration look at their report and ask themselves, "How can we go forward with an economy that is focused on providing employment and growth in a way that benefits all Americans?" If that happens, the finance sector will do fine.
MARIA BARTIROMO: So should-- the deficit be a bigger priority then?
BILL CLINTON: I think, yes. But the deficit will be a big priority. But it is very important that we not do what is now and (?) almost universally conceded, that President Roosevelt made a mistake when he started to bring the deficit down in 1937 before the economy had fully recovered. So what happened was, he couldn't really bring the deficit down because there was not enough revenues coming in. There was too much of a slow down. And he contracted it again.
I think when it is apparent that we are-- that the recovery's in full harness, at that point-- the government will have to address the deficit. Because at that point, the rest of the world will not want to buy our public debt. They'll know that we can do it. And they will expect us to stand up and do our fair share.
It's clear what we oughta do at-- we just need to-- among other things, go back to the simple premise that whenever we start something new, whether it's a tax cut or a program, it has to be fully paid for by rigorous accounting rules. Those so-called pay-go (PH) rules were abandoned in these last eight years, so that the tax cuts and the Medicare drug program, the principal expenditures apart from the Iraq and Afghanistan conflicts, didn't have to be paid for.
If those pay-go rules had been in effect, the deficit over the next ten years, the debt, would be five or six trillion dollars lower. Just giving up on discipline, I think it was a mistake. And I think that as soon as we know we got a economy in harness again, even though it will require some difficult choices, I think they'll have to be reinstituted.
MARIA BARTIROMO: I wanted to ask you about investing in girls. But let me just check, because I'm getting the--
BILL CLINTON: Yeah, go ahead.
MARIA BARTIROMO: It's okay?
BILL CLINTON: Do that.
MARIA BARTIROMO: Investing in girls is a big part of the program.
BILL CLINTON: It is.
MARIA BARTIROMO: Why is it so important? What do you want people to know about the importance of investing in girls?
BILL CLINTON: Well, I suppose, first, I should pay due homage to-- to Hillary, who has made this a big issue in the-- as her-- as Secretary of State, the role of women and girls in the economy and the long-term stability of societies. Because she's been educating me about this for more than 20 years now.
But I-- I think it's very important to realize that most of the children who are out of school are girls. I think it's important to realize that in every society with all the different religious and moral standards that different societies have, the one universal thing that always lowers the birthrate is putting more girls in school and giving your-- you know, more young women access to the labor market.
That the political empowerment of women almost universally leads to less human trafficking. We also have a lot of emphasis on human trafficking this year. There's still too many children sold, not only into sex slavery but into other kinds of bondage. So, if you look at the astonishing success of Rwanda-- genocide in '94. By '98, the-- per capita income of the country is still under a dollar a day, about $268. Ten years later, it's over $1,000 a year.
So it's virtually quadrupled. It also is the only country in the world where a (?) majority of their parliament are women, where-- half the governors are, a lotta the mayors are-- and where there is a-- a deliberate decision because of the horrible experience of the genocide to have an equal share of the country's decision-making in the hands of women and to make sure that all the girls are in school.
So, I just think it's-- every man-- who's a father of a daughter will have no problem figurin' this out. But people, without regard to gender identification, should be for this 'cause it's what works to lift poor countries to new heights.
MARIA BARTIROMO: Mr. President, thank you so much.
BILL CLINTON: Thank you.About CNBC:CNBC is the recognized world leader in business news, providing real-time financial market coverage and business information to more than 340 million homes worldwide, including more than 95 million households in the United States and Canada. The network's Business Day programming (weekdays from 5:00 a.m.-7:00 p.m. ET) is produced at CNBC's headquarters in Englewood Cliffs, N.J., and also includes reports from CNBC news bureaus worldwide. Additionally, CNBC viewers can manage their individual investment portfolios and gain additional in-depth information from on-air reports by accessing http://www.cnbc.com.Members of the media can receive more information about CNBC and its programming on the NBC Universal Media Village Web site at http://nbcumv.com/cnbc/.
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20848e009f0fed35272070e179d8fe2c | https://www.cnbc.com/2009/09/24/cramer-reacts-to-robertsons-calls.html | When Julian Robertson speaks, investors listen. To say that Wall Street respects the Tiger Management founder and chairman would be an understatement. So much so that Cramer urged anyone who disagreed with Robertson to “recalibrate” his position.
VIDEO0:0000:00Stop Trading, Listen to Cramer!
“Because he is that good,” Cramer said.
Robertson sat down for an in-depth interview with Erin Burnett, offering his take on US debt, interest rates and, of course, stocks. Cramer used Thursday’s Stop Trading! to respond. Watch the video for calls on Visa , Apple , Google , Mastercard , Nordic American Tanker , Treasurys and more.
Call Cramer: 1-800-743-CNBC
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com
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83a2091e8c37bf93bf25aa03bb5d2441 | https://www.cnbc.com/2009/09/24/earnings-roundup-sept-24.html | Earnings Roundup: Sept. 24 | Earnings Roundup: Sept. 24
What follows is a roundup of corporate earnings reports for Thursday, Sept. 24.
BEFORE THE BELL
Rite Aid
The third largest US drug store posted a lower profit of $0.14 per share in their second quarter that ended Aug. 29. Revenue fell 3 percent to $6.3 billion from $6.5 billion a year ago. The company lowered its outlook for 2010 because of the difficult economic climate.
Click for Full Story
3Com
The networking solutions posted earnings of 8 cents a share in its first quarter ending Aug. 28, beating analyst estimates. The company also reported higher-than-expected revenue of over $290.5 million, a 15 percent decrease its profit a year ago.
Click for Full Story
AFTER THE BELL
Research In Motion
The wireless products manufacturer is expecting a profit of $1.00 per share and a 40 percent revenue increase from last year to $3.62 billion.
*Earnings data based off of Thomson Reuters
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01990e52662a7bac1cf351e439b6ed81 | https://www.cnbc.com/2009/09/24/ford-hopes-new-figo-will-help-it-win-asian-buyers.html | Ford Hopes New Figo Will Help It Win Asian Buyers | Ford Hopes New Figo Will Help It Win Asian Buyers
Ford Motor is increasing its focus on the fast-growing car markets of the Asia-Pacific region, executives said Wednesday as they rolled out a new small car in India.
The “Figo,” a four-door hatchback with expansive side windows and cat’s-eye headlights, was designed with the help of Indian engineers and will be built in India and shipped to nearby countries. Ford’s top executives introduced the car with techno music and fanfare at a five-star New Delhi hotel and said the car was emblematic of Ford’s new emphasis on the region.
“Asia-Pacific is a really important market for us,” Alan Mulally, chief executive of Ford , said after the Figo’s introduction. “We will accelerate our presence” in the region, he said, and India will play a large part in that push.
Ford SignTheTruthAboutMortgage
The Figo will be available in India in 2010. Ford did not provide any details on the Figo’s likely price or fuel consumption or say which countries it would ship the car to from India.
Ford Motor soldiered through the global recession without seeking bankruptcy protection like its big American peers. But the company still suffered as car sales dropped in North America and Europe, losing $1.4 billion in the first quarter of 2009. To date, Ford trails General Motors and Toyota in China and has a tiny presence in India.
The Figo represents the first product of Ford’s $500 million investment to transform its manufacturing plant in Chennai, formerly Madras, in southeast India. Ford has doubled the Chennai plant’s production capacity to 200,000 vehicles a year and will be able to make 250,000 diesel engines a year by 2010, executives said Wednesday.
India is “going to be a key design and manufacturing hub” for Ford, Mr. Mulally said. Foreign car manufacturers are turning to India’s combination of engineering expertise and emphasis on value and fuel efficiency to design hyper-efficient cheap cars. “Literally, India is designing the small car for the world,” he said.
Later this week, Mr. Mulally will travel to China, where he is expected to announce a new production plant. Xinhua, China’s state-run news agency, said the plant, with annual capacity of 300,000 cars, would be located in Chongqing, in southern China, and would produce high-end sedans and sport utility vehicles.
“India and China are going to be the game-changers in the next decade, so it is natural for the major manufacturers to focus on them,” said Neeraj Bandhu, director for India at CSM Worldwide, an automotive consulting firm.
India and China will lead the world’s car-buying recovery, CSM Worldwide predicts. Car sales in India will be 45 percent higher in 2011 than they were in 2007, the firm said, followed by 39 percent growth in China and 26 percent growth in Brazil. In contrast, car sales in North America and Europe will not have returned to their 2007 levels by 2011.
Like Renault-Nissan and Toyota, Ford is integrating its global operations to achieve economies of scale and relocating manufacturing and research to low-cost areas like India. CSM Worldwide predicts that Ford’s production in its home market of North America will decline to 35 percent of global production by 2015 from 54 percent in 1997.
Last year, General Motors introduced a small car called the Spark in India, and it plans to bring out a mini-car later this year, developed with the help of local engineers. Volkswagen and Toyota are also planning to sell small cars in India.
Ford’s approach to the Indian market suggests that the company is still a newcomer here, analysts say. For example, Figo is Italian for “cool” but does not mean anything in Hindi, the most widely spoken official language of India. While it was developing the Figo, the automaker created a fictitious target customer in India: Sandeep, a man in his mid-20s. While the name is a common first name in India, the concept suggested the Indian market was a mystery to Ford executives, the analysts said.
Maruti Suzuki, Hyundai and Tata Motors dominate the Indian car market, while Ford is the seventh-largest manufacturer here, according to the Society of Indian Automobile Manufacturers. U.S. automakers have struggled in India because they came to the market with midsize cars, analysts said.
Ford’s new approach wins praise. In the past, “they did not target the mass market, or refresh their product,” said Mr. Bandhu. But, he said, “there is a lot of interest” in hatchbacks like the Figo.
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2bed2d6a2281568665c133ac403a0012 | https://www.cnbc.com/2009/09/24/ge-gets-positioned-for-a-decline.html | GE Gets Positioned For a Decline | GE Gets Positioned For a Decline
General Electric has rallied back to its highs from early 2009, prompting one large investor to position for a decline.
detected the purchase of 5,500 November 16 puts for $0.67 and the sale of 5,500 November 13 puts for $0.14. Volume was more than twice open interest in both strikes and the transaction resulted in a net debit of $0.53.
GE is down 2.5 percent to $16.58 in midday trading. The industrial and financial conglomerate is up 18 percent in the last month, outpacing a 2.18 percent gain for the Dow Jones Industrial Average. GE is the parent company of CNBC.
Today's put spread trade will generate a maximum profit of 466 percent if GE closes at or below $13 on expiration. Another investor sold 3,500 November 17 calls for $0.93, also reflecting an expectation the shares are headed lower. Volume was below open interest in the strike.
The next scheduled event that could serve as a catalyst for the shares is the release of third-quarter earnings before the market opens Oct. 16.
Options volume in GE was about evenly split between calls and puts today, marking a contrast with the more bullish pattern over the past 20 days when calls outnumbered puts by 2 to 1.
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a680a2e0c39878b118667a2e95d25d99 | https://www.cnbc.com/2009/09/24/google-on-the-prowl.html | Takeover talk hit a fever pitch on Thursday after Google CEO Eric Schmidt said he expects to make one acquisition a month!Okay, he said one small acquisition a month – but nonetheless that’s still a lot of acquiring.
"It's clear that the worst is behind us," Schmidt says. "What we see at Google is some level of improvement and what is more important is we see it not just in the United States but outside the United States," he says.It appears Schmidt is reasonably optimistic about the economy and about to go shopping. But is there a way for you to profit? There’s no better expert to consult for insights than top ranked Internet analyst Mark Mahaney of Citi.
Mahaney's M&A Targets
- Mobile Internet Enabling Technologies - Internet Video Enabling Technologies - Local/Geo Targeting Technology - International Expansion (Russia, China, Korea) - Green Infrastructure Technologies
VIDEO0:0000:00Analyze This
TAKEOVER TALK
Fast: Will Google buy Palm?Mahaney: I’d be very surprised to see them do something like that. They don’t need to get into the handset selection game. I’d be shocked to see that.
Fast: What publicly traded company is Google most likely to buy?
Mahaney: I don’t think they will buy a public company. Remember, Google has bought 90 companies over the last 5 years. But YouTube, DoubleClick and their investment in AOL are the only three names that you’ve probably ever heard of. I think they continue to purchase small niche firms.
______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send your e-mail to .Trader disclosure: On Sept. 24th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Terranova Owns (F); Terranova Owns (F) Calls And (F) Puts; Terranova Works For (VRTS); Finerman's Firm Owns (BAC) Preferred Shares, Finerman Owns (BAC) Preferred Shares And Owns (BAC); Finerman's Firm Owns (WFC) Preferred Shares And Is Short (WFC); Finerman Owns (WFC) Preferred Shares; Finerman Owns (RIG); Finerman's Firm Owns (MSFT), (NOK), (PBR), (WMT), (RIG), (TGT); Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (USO); Seymour Owns (AAPL), (AA), (BX), (EEM), (RIMM), (BAC), (RIG), (SBUX), (FXI) For Steve CortesCortes Is Short (FXI) Cortes Owns S&P Futures Cortes Is Short The Euro Cortes Is Short British Pound
For Mark MahaneyCitigroup Has Received Compensation From (GOOG) (GOOG) Has Been A Client of Citigroup In Past 12 Months Citi Is A Market Maker In Shares Of (GOOG)
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1a99fbb290da9aca722b96740c6682ce | https://www.cnbc.com/2009/09/24/Hot-Holiday-Toys-from-Toys-R-Us.html | Consumer Nation | Consumer Nation
What will Santa have in his bag this holiday season? Toys ‘R Us, the largest U.S. toy retailer, has issued its forecast for the hottest toys.With consumers still watching their spending carefully, one theme that stands out is a focus on value. Toys on the list range from $10 (squeaking Zhu Zhu interactive hamsters ) to about $350 (Disney 's Netpals netbook computer). Click ahead to see which toys made the cut.
What will Santa have in his bag this holiday season? Toys ‘R Us, the largest US toy retailer, has issued its forecast for the hottest toys.With consumers still watching their spending carefully, one theme that stands out is a focus on value. Toys on the list range from $10 (squeaking Zhu Zhu interactive hamsters) to about $350 (Disney 's Netpals netbook computer). Click ahead to see which toys made the cut. By Christina Cheddar BerkPosted 24 Sept 2009
Company: Spin MasterRetail Price: $40.00This line of the popular brand can be separated into seven different Bakugan marbles, or joined together to create one united force. (Ages 5 years and up)Photo Provided By: Toys 'R Us
Company: Spin MasterRetail Price: $40.00This line of the popular brand can be separated into seven different Bakugan marbles, or joined together to create one united force. (Ages 5 years and up)
Company: Spin MasterRetail Price: $27Toys that allow for open-ended play are thought to give children more options. With the ChixOs loft, kids can design their own perfect space. (Ages 4 years and up)Photo Provided By: Toys 'R Us
Company: Spin MasterRetail Price: $27Toys that allow for open-ended play tend to be the most sought after during the holiday season. With the ChixOs loft, kids can design their own perfect space. (Ages 4 years and up)
Company: Crayola BeginningsRetail Price: $25The perfect toy often depends on the child’s age. This one helps toddlers learn to draw. Music plays to the speed of the child’s scribbles. Built-in storage makes the toy portable. (Ages 24 months and up)Photo Provided By: Toys 'R Us
Company: Crayola BeginningsRetail Price: $25The perfect toy often depends on the child’s age. This one helps toddlers learn to draw. Music plays to the speed of the child’s scribbles. Built-in storage makes the toy portable. (Ages 24 months and up)
Company: AsusRetail Price: $350Tweens may like the Disney Netpal from Asus for its fashionable colors, but parents will likely focus on the netbook's safety features. There are more than two dozen parental controls to affect how children can browse the Web. (Ages 6 years and up)Photo Provided By: Toys 'R Us
Company: AsusRetail Price: $350Tweens may like the Disney Netpal from Asus for its fashionable colors, but parents will likely focus on the netbook's safety features. There are more than two dozen parental controls to limit how children can browse the Web. (Ages 6 years and up)
Company: ThinkwayRetail Price: $100For preschool fans of Disney-Pixar’s Toy Story, there are these interactive versions of the popular Buzz Lightyear and Woody characters. The action figures can speak more than 100 phrases. (Ages 4 years and up)Photo Provided By: Toys 'R Us
Company: ThinkwayRetail Price: $100For preschool fans of Disney-Pixar’s Toy Story, there are these interactive versions of the popular Buzz Lightyear and Woody characters. The action figures can speak more than 100 phrases. (Ages 4 years and up)
Company: Mattel (MAT)Retail Price: $26The buzz is already building for Disney’s newest animated feature film, The Princess and the Frog, which will be released ahead of the holiday season. No doubt there will be girls asking for a Princess Tiana doll from Mattel, available as of October. (Ages 4 years and up.)Photo Provided By: Toys 'R Us
Company: Mattel (MAT)Retail Price: $26The buzz is already building for Disney’s newest animated feature film, The Princess and the Frog, which will be released ahead of the holiday season. No doubt there will be girls asking for a Princess Tiana doll from Mattel, available as of October. (Ages 4 years and up.)
Company: Toys ‘R UsRetail Price: $120Toys ‘R Us is expecting remote-controlled vehicles to be very popular because that tends to happen when video game console sales are expected to be weak , which is the case this year. Pictured here is an all-terrain vehicle sold under the retailer’s store brand. It can travel on land, water, or snow. With the aid of a ramp, it can travel though the air up to six feet. (Ages 8 years and up)Photo Provided By: Toys 'R Us
Company: Toys ‘R UsRetail Price: $120Toys ‘R Us is expecting remote-controlled vehicles to be very popular - that tends to happen when video game console sales are expected to be weak, which is the case this year. Pictured here is an all-terrain vehicle sold under the retailer’s store brand. It can travel on land, water, or snow. With the aid of a ramp, it can travel though the air up to six feet. (Ages 8 years and up)
Company: Fisher-Price (MAT)Retail Price: $80The Laugh & Learn Learning Farm has several modes to keep babies entertained. (Ages 6 to 36 months)Photo Provided By: Toys 'R Us
Company: Fisher-Price (MAT)Retail Price: $80The Laugh & Learn Learning Farm has several modes to keep babies entertained. (Ages 6 to 36 months)
Company: Fisher-Price (MAT)Retail Price: $35Baby Ah-Choo needs some love and care to make her feel better. To inspire creative play, the doll sneezes and sniffles and asks for a tissue. (Ages 2 years and up.)Photo Provided By: Toys 'R Us
Company: Fisher-Price (MAT)Retail Price: $35Baby Ah-Choo needs some love and care to make her feel better. To inspire creative play, the doll sneezes and sniffles and asks for a tissue. (Ages 2 years and up.)
Company: Mattel (MAT)Retail Price: $80This toy will make you think. The helmet measures brain activity, and allows players to challenge one another to use their mind to move a ball through an obstacle course. (Ages 8 years and up)
Company: Mattel (MAT)Retail Price: $80This toy will make you think. The helmet measures brain activity, and allows players to challenge one another to use their minds to move a ball through an obstacle course. (Ages 8 years and up)
Company: Hasbro (HAS)Retail Price: $35The Nerf blaster can hold as many as 35 darts at once. It can fire one dart at a time or unload of them in “slam” fire mode. (Ages 6 years and up)Photo Provided By: Toys 'R Us
Company: Hasbro (HAS)Retail Price: $35The Nerf blaster can hold as many as 35 darts at once. It can fire one dart at a time or unload all of them in “slam” fire mode. (Ages 6 years and up)
Company: Lego SystemsRetail Price: $110This 789-piece Lego construction set is available exclusively at Toys ‘R Us, and allow s Star Wars’ fans to build the Mon Calamari Star Cruiser. (Ages 9 to 14 years)Photo Provided By: Toys 'R Us
Company: Lego SystemsRetail Price: $110This 789-piece Lego construction set is available exclusively at Toys ‘R Us, and allows Star Wars fans to build the Mon Calamari Star Cruiser. (Ages 9 to 14 years)
Company: Hasbro (HAS)Retail Price: $100Transformers are back on the list for yet another year. This year, Hasbro has this action figure that can be built by combing six different construction vehicles known as Constructicons. (Ages 5 years and up)Photo Provided By: Toys 'R Us
Company: Hasbro (HAS)Retail Price: $100Transformers are back on the list for yet another year. This year, Hasbro has this action figure that can be built by combing six different construction vehicles known as Constructicons. (Ages 5 years and up)
Company: Nintendo (NTDOY)Retail Price: $50This sequel to Wii Sports includes more than a dozen games. (Rated E for Everyone)Photo Provided By: Toys 'R Us
Company: Nintendo (NTDOY)Retail Price: $50This sequel to Wii Sports includes more than a dozen games. (Rated E for Everyone)
Company: CepiaRetail Price: $10Pick a hamster to suit your personality. These interactive critters can make sounds and even play in hamster tubes and wheels. At $10 each, they will likely make good stocking stuffers. (Ages 4 years and up)Photo Provided By: Toys 'R Us
Company: CepiaRetail Price: $10Pick a hamster to suit your personality. These interactive critters can make sounds and even play in hamster tubes and wheels. At $10 each, they will likely make good stocking stuffers. (Ages 4 years and up)
Company: Mattel (MAT)Retail Price: $180Mattel’s Barbie is always popular with girls. This year, Toys ‘R Us highlights the Barbie b-nails digital nail printer, which allows young fashionistas to glam it up with a spa-like manicure. (Ages 8 years and up)Photo Provided By: Toys 'R Us
Company: Mattel (MAT)Retail Price: $180Mattel’s Barbie is always popular with girls. This year, Toys ‘R Us highlights the Barbie b-nails digital nail printer, which allows young fashionistas to glam it up with a spa-like manicure. (Ages 8 years and up)
Company: Spin MasterRetail Price: From $20Spin Master has a new collection of fashion dolls that will allow girls to take the fun online. Each Liv doll comes with a code that can be used at the . (Ages 5 years and up)Photo Provided By: Toys 'R Us
Company: Spin MasterRetail Price: From $20Spin Master has a new collection of fashion dolls that will allow girls to take the fun online. Each Liv doll comes with a code that can be used at the Liv World website. (Ages 5 years and up)
Company: Nintendo (NTDOY)Retail Price: $170Nintendo’s DSi handheld consoles will again be on many holiday wish lists. The updated systems allow kids to take pictures and search the Internet. (Ages 6 years and up)Photo Provided By: Toys 'R Us
Company: Nintendo (NTDOY)Retail Price: $170Nintendo’s DSi handheld consoles will again be on many holiday wish lists. The updated system allows kids to take pictures and search the Internet. (Ages 6 years and up)
Company: Sony (SNE)Retail Price: $200Last year, Oprah made Amazon’s Kindle a hot holiday item. This year, Toys ‘R Us selects Sony’s Reader for its list. These portable, electronic books can fit easily into a pocket and store about 350 eBooks. (Ages 12 years and up)Photo Provided By: Toys 'R Us
Company: Sony (SNE)Retail Price: $200Last year, Oprah made Amazon’s Kindle a hot holiday item. This year, Toys ‘R Us selects Sony’s Reader for its list. These portable electronic books can fit easily into a pocket and store about 350 eBooks. (Ages 12 years and up)
Company: Spin MasterRetail Price: $17Last year, crafts and games were popular gifts. If that trend repeats , the Spin Master’s Paperoni may be a popular item. The Deluxe Studio, which costs about $17, has everything kids need to get going on their own 3D artwork. (Ages 4 years and up)Photo Provided By: Toys 'R Us
Company: Spin MasterRetail Price: $17Last year, crafts and games were popular gifts. If that trend repeats, the Spin Master’s Paperoni may be a popular item. The Deluxe Studio, which costs about $17, has everything kids need to get going on their own 3D artwork. (Ages 4 years and up)
Replay SlideshowHighlights from Frederick's of HollywoodConsumer Nation Blog
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28931b7ef4c58e16c11fb74af845726a | https://www.cnbc.com/2009/09/24/housing-recovery-at-a-crossroad.html | Housing Recovery at a Crossroad | Housing Recovery at a Crossroad
I hate to say "I told you so," okay, that's a lie, who doesn't love to be right?
Existing homesales took a U-turn in August after four straight months of gains, and this is exactly what we were afraid of, as inventory at the low end of the market runs dry and the first time home buyer tax credit draws to a close.
Housing Will Remain Weak As Long as Jobs Are Scarce
As I showed you in the last couple of months, sales activity is all on the low end of the market.
This month the Realtors added a new chart to their release (the chart I've been showing you for the last two months).
As you can clearly see, 70 percent of the sales market is under $250,000. Is that healthy? I don't think so.
Here's what NAR Chief Economist Lawrence Yun says about it:
This is indicating that the first time buyers are typically on the lower price, looking for lower priced homes, so that is stimulating, and also for repeat buyers, I think this is a change in psychology or just a view that they want to stay well within their budget, and the tighter underwriting standards are also saying to people: Don't overstretch, if you overstretch we will not lend you the money.
He also re-trashed the new appraisal rules for slowing down the home buying process and stalling certain sales. But I think we're seeing exactly what we expected, which is that the "recovery" in sales was based entirely on juice from the first time home buyer tax credit and big activity on the lowest priced properties and foreclosures. My minions out in California, where foreclosure sales rule, tell me there isn't enough low-priced inventory. With the mid and high end still stuck, there's your sales decrease.
Slideshow: 10 Most Affordable Metro Areas
Until we see recovery across the market, at all price points, we can't say this housing market is in full recovery.
I do think the Fed's new commitment yesterday to stick with and slightly extend its purchase of agency MBS is a positive sign going forward because it will keep mortgage rates low.
But the first time home buyer tax credit expiration will do just the opposite.
A new NAR survey of home buyers found the a full half of all first timers said they would not have purchased without the credit. I'm not taking a side in the tax credit debate (there are enough others doing that), but I am saying that whatever the outcome, extension or no extension, it will have a large effect on home sales going forward.
This is a critical time in the housing recovery.
Some say we're at bottom, some say we're "bouncing around the bottom" and others are expecting a double-dip housing recession.
Stay tuned.
Slideshow: 10 Most Popular Relocation Cities
Questions? Comments? RealtyCheck@cnbc.com
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bd6f2f46b51ab190b2a76ff062fbcaec | https://www.cnbc.com/2009/09/24/lightning-round-ot-arcsight-akamai-tech-and-more.html | VIDEO0:0000:00Lightning Round OT
Blue Coat Systems : Go with ArcSight instead, Cramer said.
Akamai Technologies : Sell AKAM, Cramer said. The company missed its latest quarter, and he won’t recommend the stock until Akamai delivers good numbers.
YRC Worldwide : YRCW is a buy on a pullback to $2-$3, Cramer said.
Call Cramer: 1-800-743-CNBC
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com
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815ff758394d3d9b7016e2e340599c9b | https://www.cnbc.com/2009/09/24/nintendos-holiday-gambit-a-wii-price-cut.html | Nintendo's Holiday Gambit: A Wii Price Cut | Nintendo's Holiday Gambit: A Wii Price Cut
Following price cuts by its two rivals, Nintendo reduced the price of its Wii video game system by $50. The widely expected move could help the company reverse slowing momentum as it heads into the holiday sales period.
WiiAP
The Wii’s price will fall to $199 this Sunday. This is the system’s first price change since it was introduced in 2006.
Three years is an extraordinary stretch for a gaming system to go without a price cut — but the Wii is far from a typical system. Nintendo chose to focus on lapsed- and non-gamers this generation, altering the way games are played rather than markedly improving the graphics and features of the previous cycle of video game machines. As a result, the Wii has dramatically outsold the Xbox 360 and PlayStation 3.
Both Sony and Microsoft have cut the retail price of their systems in the past month. Sony introduced a redesigned, slimmer PS3 for $299—condensing their available systems to a single device. The move resulted in a 72 percent month-over-month increase in hardware sales.
Microsoft still offers two models of the Xbox 360—a $199 entry-level system and a system for core gamers, which recently reduced its retail price by $100 to $299.
While Nintendo is far and away the hardware sales leader in the gaming industry, Wii sales are nearly 10 percent off last year’s pace. And, given Sony’s momentum since its price cut, the company’s hands have been tied.
Software sales for the Wii—and the industry in general—have stagnated this year, due to a lack of blockbuster games and the ongoing economic crisis. Even “Wii Sports Resort,” expected to be one of Nintendo’s best selling games this year, got off to a slower start than the company had hoped.
Like the moves by Sony and Microsoft, Nintendo’s announcement was a poorly kept secret. Retail circulars from Wal-Mart and Toys R Us that heralded the new price leaked online more than a week ago.
The company had hoped to avoid this action for as long as possible—even going out of its way to squelch industry speculation that it would cut prices.
In June, company president Satoru Iwata noted that while analysts and publishing partners are always pushing for price reductions, the move is not the cure-all many believe it to be.
“People often talk about the price cut as if it’s an almighty weapon,” he said. “The fact of the matter is what a price cut can do is rather limited … At the time of the price cut, we see a momentary spike in sales, but usually that cannot sustain its momentum and [sales] come down to below the price cut level.”
Those momentary spikes can be significant, though. The NPD Group, which tracks game and gaming hardware sales, says that historically, price cuts result in a month-over-month sales increase of anywhere from 40-60 percent.
Even if the Wii price cuts result in a sales surge, it may not be enough to turn the year around for the gaming industry. Barring a 14 percent increase in sales every month for the rest of the year, 2009 will be the first year since 2004 to fail to post a year-over-year sales increase.
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4412e41367ba3a27301e8e477bff6251 | https://www.cnbc.com/2009/09/24/october-to-be-cruel-for-markets-strategist.html | October To Be ‘Cruel For Markets’: Strategist | October To Be ‘Cruel For Markets’: Strategist
Stocks remained lower on Thursday after the 7-year bond auction, sending mixed signals to investors about the stability of the market. How should investors be trading? Eric Thorne, investment advisor at Bryn Mawr Trust Wealth Management and David Kelly, chief market strategist at JPMorgan Funds shared their insights.
“Over the next 12 to 18 months, we will see continued gradual improvement in the economy and in the markets,” Thorne told CNBC. “But in the short term, we’re particularly concerned that the markets have gotten ahead of themselves.”
VIDEO0:0000:00Stocks Trade Higher Out of Gate
Thorne said it is important for investors to cut positions back where they might be “overweighted,” and look around for more conservative plays.
“The large cap asset class domestically probably does a little bit better [and] consumer sector does a little bit better also,” he said. “The economy is going to get better but October is going to be a cruel month for the markets. We may see an interesting 30 days here.”
In the meantime, Kelly said the market still has a long way to go on the upside but investors shouldn’t get too caught up trying to time the upsides.
“The good news is that the recovery train just left the station, but the bad news is that it’s local and it’s going to take a long time,” he said. “But everything we’re seeing suggests that the economy is growing not just here, but around the world at a 3 to 4 percent pace. We should sustain this for a number of years, but it will take us a long time to get us back to full employment. But while that’s going on, play the recovery trade.”
GE Gets Positioned For a DeclineMarket Has Much Higher to Go: Strategist
______________________________
Disclosure:
No immediate information was available for Kelly or Thorne.
______________________________CNBC Slideshows:
The Biggest Holders of US Government Debt
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A123
Battery Maker A123's Shares Soar in Nasdaq Debut
Google
Google Gmail Users Again Hit by Technical Problems
Citigroup
Citigroup Cutting Branches to Focus on Six Markets
Sony
Sony's Latest Gaming Device Cuts Out Retailers
______________________________
Disclaimer
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9ae6840c1e378a1d4611cda219cffcc5 | https://www.cnbc.com/2009/09/24/oil-industry-sets-a-brisk-pace-of-new-discoveries.html | Oil Industry Sets a Brisk Pace of New Discoveries | Oil Industry Sets a Brisk Pace of New Discoveries
The oil industry has been on a hot streak this year, thanks to a series of major discoveries that have rekindled a sense of excitement across the petroleum sector, despite falling prices and a tough economy.
These discoveries, spanning five continents, are the result of hefty investments that began earlier in the decade when oil prices rose, and of new technologies that allow explorers to drill at greater depths and break tougher rocks.
off shore oil rig
“That’s the wonderful thing about price signals in a free market — it puts people in a better position to take more exploration risk,” said James T. Hackett, chairman and chief executive of Anadarko Petroleum.
More than 200 discoveries have been reported so far this year in dozens of countries, including northern Iraq’s Kurdish region, Australia, Israel, Iran, Brazil, Norway, Ghana and Russia. They have been made by international giants, like Exxon Mobil , but also by industry minnows, like Tullow Oil.
Just this month, BP said that it found a giant deepwater field that might turn out to be the biggest oil discovery ever in the Gulf of Mexico, while Anadarko announced a large find in an “exciting and highly prospective” region off Sierra Leone.
It is normal for companies to discover billions of barrels of new oil every year, but this year’s pace is unusually brisk. New oil discoveries have totaled about 10 billion barrels in the first half of the year, according to IHS Cambridge Energy Research Associates. If discoveries continue at that pace through year-end, they are likely to reach the highest level since 2000.
While recent years have featured speculation about a coming peak and subsequent decline in oil production, people in the industry say there is still plenty of oil in the ground, especially beneath the ocean floor, even if finding and extracting it is becoming harder. They say that prices and the pace of technological improvement remain the principal factors governing oil production capacity.
While the industry is celebrating the recent discoveries, many executives are anxious about the immediate future, fearing that lower prices might jeopardize their exploration drive. The world economy is weak, oil prices have tumbled from last year’s records, corporate profits have shrunk, and global demand for oil remains low. After falling to $34 in December, oil prices have doubled, stabilizing near $70 a barrel. But if the world economy does not pick up, some analysts believe the price could fall again.
Oil companies contend that is not a prospect they can afford. Despite reaping record profits in recent years, many executives have warned that they need prices above $60 a barrel to develop the world’s more challenging reserves. In fact, some exploration activity has already slowed this year, as producers seek better terms from service companies and contractors.
It is not just oil that is benefiting from the exploration boom. Repsol, Spain’s biggest oil company, said this month that it had discovered what could turn out to be Venezuela’s biggest natural gas field. In recent years, companies have found substantial natural gas reserves in the United States, from shale rocks once believed to be impossible to drill.
“The No. 1 question that exploration teams have right now is, Where do we go next?” said Robert Fryklund, who ran the operations of ConocoPhillips in Libya and Brazil, and is a vice president in Houston at Cambridge Energy Research Associates.
Exploration spending swelled in recent years, partly to offset a doubling of costs throughout the industry — from steel prices to the cost of renting deepwater drilling rigs. A big issue confronting the industry now is how to drive down costs while maintaining a high level of exploration. On average, costs have fallen by 15 to 20 percent from their peak, according to petroleum executives.
Exploration remains a risky, and costly, business, where some deepwater wells can cost up to $100 million. From 30 to 50 percent of exploration wells find oil.
Some executives are also worried the world might face a shortfall in supplies in coming years if another decline in oil prices causes exploration to falter.
The chief executive of the French oil giant Total, Christophe de Margerie, has warned that such a supply crunch is possible by the middle of the next decade. “There could be a shortage of capacity,” he said.
His concerns echoed those of Abdullah al-Badri, the secretary general of the Organization of the Petroleum Exporting Countries, who said that lower oil prices also threatened investments by OPEC nations.
Saudi Arabia is also unlikely to expand its production in coming years because of the uncertainty clouding future oil demand, Ali al-Naimi, the kingdom’s oil minister, signaled earlier this month. Saudi Arabia is just completing a $100 billion program to increase its capacity to 12.5 million barrels a day, from around 9 million barrels a day just a few years ago.
Although they are substantial, the new finds do not match the giant fields discovered in the 1970s, like Alaska’s Prudhoe Bay, Ekofisk in the North Sea, or Cantarell in Mexico. They are also dwarfed by the last enormous discovery, the Kashagan field in the Caspian Sea, discovered in 2000 and estimated to hold over 20 billion barrels of oil.
“We have not seen another Kashagan, but still these finds are very material,” said Alan Murray, the exploration service manager at Wood Mackenzie, a consulting firm in Edinburgh.
Since the early 1980s, discoveries have failed to keep up with the global rate of oil consumption, which last year reached 31 billion barrels of oil. Instead, companies have managed to expand production by finding new ways of getting more oil out of existing fields, or producing oil through unconventional sources, like Canada’s tar sands or heavy oil in Venezuela.
Reserve estimates typically rise over the life of a field, which can often be productive for decades, as companies find new ways of getting more oil out of the ground.
The industry’s record has improved in recent years, thanks to high prices. According to Cambridge Energy Research Associates, oil companies have found more oil than they produced for the last two years through a combination of exploration and field expansions.
“The appetite for opening new frontiers when prices were low in the 1990s was very small,” said Paolo Scaroni, the chief executive of Italy’s oil giant Eni. “Today, the biggest discovery of all is technology.”
CNBC Slideshows
10 Hottest Commodities of 2009Which Oil Nations Make Money?
One of the largest finds this year was made by a small producer, Heritage Oil, at the Miran West One field in the Kurdistan region of northern Iraq. It found nearly two billion barrels of oil and plans to drill a second well before the end of the year. While the central government of Iraq has had a hard time attracting investors to develop its huge fields, local authorities in Kurdistan have been successfully wooing foreign producers.
Meanwhile, in the Gulf of Mexico, BP’s discovery proves that the area remains one of the most promising oil regions in the United States. BP has estimated that the Tiber field holds four billion to six billion barrels of oil and gas, which would be enough, in theory, to meet domestic consumption for more than a year.
“In 30 years I’ve been in the business, the Gulf of Mexico has been called the Dead Sea countless times,” said Bobby Ryan, the vice president of global exploration at Chevron. “And yet it continues to revitalize itself.”
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63671c46d07e449e4677186e156b655f | https://www.cnbc.com/2009/09/24/playing-the-pullback.html | Viewers must rethink their investing strategies, Cramer said Thursday, given a recent string of bad news. He’s certainly adjusted his. Whether it was this week’s earnings reports or the release of disappointing economic data, he saw no choice but to trade offense for defense. At least until this pullback in stocks plays itself out.
VIDEO0:0000:00Defensive Tackle
“We are staying defensive,” Cramer said, “until proven otherwise.”
During last Friday’s Game Plan, he pointed to specific events that would make either a bullish or bearish case for the market. If General Mills reported a strong quarter and investors went after the stock, it could indicate a growing pessimism about the economy. If payroll-processing company Paychex announced its quarter and had nothing good to say about hiring, the reaction could be much the same. And if Bed, Bath & Beyond delivered good numbers but Wall Street didn’t seem to care, then it was definitely time to reassess.
Sure enough, that’s exactly what happened. Even more, Thursday’s existing-home sales number was off, oil was down all week, and even copper took a hit. This helps to prove the defensive thesis, Cramer said, and it’s the reason his charitable trust has been taking profits in its industrial holdings and moving into more so-called safety stocks. He predicted a 3% to 5% decline as the market pauses before its next leg up.
Cramer also told viewers to watch AAR’s quarter. Good news from this aircraft-maintenance company would make Boeing and its 3% dividend yield more attractive. Well, the good news came.
Lastly, because we’re playing defense, investors can buy some defensive stocks. Cramer said he likes Procter & Gamble and Kimberly-Clark , a high yielder that benefits from the weak dollar and cheap natural gas.
What’s the big takeaway? Pre-plan your reaction to market events before they happen. That way you can make calm, rational decisions if stocks turn downward, as they have this week.
“You have to know what could cause you to change your mind about the market before it happens,” Cramer said. “Otherwise you’re just going to make excuses for sticking to your same view … no matter how wrong it is.”
Cramer's charitable trust owns Procter & Gamble.
Call Cramer: 1-800-743-CNBC
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com
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360333d74716cae49d7cc1b3ffc99e17 | https://www.cnbc.com/2009/09/24/pops-drops-american-greetings-electronic-arts.html | Following are the day’s biggest winners and losers. Find out why shares of A123 Systems and American Greetings popped while Moody's and Electronic Arts dropped.
POPS (stocks that jumped higher)American Greetings (AM) popped 30%. The greeting card company posted a 10-fold jump in quarterly profit that trumped Wall Street estimates, helped by lower expenses and improved inventory management, sending shares to their highest in more than a year. - I can't get excited, says Joe Terranova.
A123 Systems (AONE) popped 51%. The battery maker had its IPO this morning, which was met with high demand on hopes the company will be a big player in lithium-ion battery technology for the auto industry. - I'm not sure about the valuation, says Tim Seymour.
DROPS (stocks that slid lower)
Moody's (MCO) dropped 4%. Hearings into whether the company knowingly issued incorrect ratings were postponed until next week after Republicans asked for more time to review a whistleblower's complaint. - It's Ground Hog for Moody's, muses Karen Finerman.
VIDEO0:0000:00Stock Pops & Drops
Electronic Arts (ERTS) dropped 3%. Microsoft denied market speculation that it was in talks to buyout the company. - If Microsoft isn't interested I think someone will be, speculates Guy Adami. I like this stock.
AnnTaylor (ANN) dropped 5%. Goldman downgraded the stock to ‘neutral’ from ‘buy.’ - It's never good to be downgraded, says Karen Finerman.
Bed Bath & Beyond (BBBY) dropped 3%. Although the home goods store reported a second-quarter profit that topped Wall Street estimates it refrained from boosting its profit outlook. - I like this stock in the mid-30's.
Dendreon (DNDN) dropped 5%. Investors took profits after the firm announced it had filed an application with the FDA for approval of Provenge, its prostate cancer vaccine.
Cardinal Health (CAH) dropped 3%. Deutsche Bank downgraded the healthcare provider to ‘hold’ from ‘buy’ saying the stock is fully priced
______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! If you'd prefer to make a comment but not have it published on our website send your e-mail to .Trader disclosure: On Sept. 24th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Terranova Owns (F); Terranova Owns (F) Calls And (F) Puts; Terranova Works For (VRTS); Finerman's Firm Owns (BAC) Preferred Shares, Finerman Owns (BAC) Preferred Shares And Owns (BAC); Finerman's Firm Owns (WFC) Preferred Shares And Is Short (WFC); Finerman Owns (WFC) Preferred Shares; Finerman Owns (RIG); Finerman's Firm Owns (MSFT), (NOK), (PBR), (WMT), (RIG), (TGT); Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (USO); Seymour Owns (AAPL), (AA), (BX), (EEM), (RIMM), (BAC), (RIG), (SBUX), (FXI) For Steve CortesCortes Is Short (FXI) Cortes Owns S&P Futures Cortes Is Short The Euro Cortes Is Short British Pound
For Mark MahaneyCitigroup Has Received Compensation From (GOOG) (GOOG) Has Been A Client of Citigroup In Past 12 Months Citi Is A Market Maker In Shares Of (GOOG)
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8ead7000d5336dbe8d4aa57fbdeb6df4 | https://www.cnbc.com/2009/09/24/rim-ready-for-a-breakout-or-selloff.html | RIM Ready for a Break-out? Or Sell-off? | RIM Ready for a Break-out? Or Sell-off?
CNBC.com
By any historical measure, Research in Motion has a pretty good, three-month stock run.
From a low of around $66 on July 13, they're just shy of $84 today.
Hardly a slouch.
But measure that against another major player in smart phones, Apple , which was at $142 on July 13, and was at $185 at the start of trading today. RIM has underperformed Intel , Google and Hewlett-Packard . The question is, why?
No good reason, really, except to say that the company has lost a degree of its buzz factor, especially among consumers. Apple has attracted the lion's share of headlines; Palm too has generated a fair amount of publicity, though not necessarily the good kind. And then there's RIM, which continues to plod along, quietly expanding its marketshare, quietly releasing new handsets, quietly holding onto its bread-and-butter enterprise customers. Not so quiet are the enormous price targets for these shares, not the least of which is RBC's $150 target on these shares, with analyst Mike Abramsky, who nailed Palm's earnings last week, expected a slight beat and raise report tonight after the bell.
Analysts anticipate $1 a share on $3.6 billion in revenue. The other key metrics to watch: 4.1 million new subscribers, and 8.7 million Blackberrys shipped.
Abramsky is slightly higher in all categories, and when it comes to guidance he's decidedly more optimistic than consensus: He expects $1.06 to $1.08 a share on about $4 billion in revenue with analyst consensus at $1.05 on $3.9 billion. He's also expecting 4.3 million new subscribers and 9.5 million to 9.8 million Blackberrys shipped.
His research suggests that Verizon and Sprint is seeing nice traction with the Blackberry Tour, and Blackberry appears to be fairly health at AT&T and T-Mobile .
But more importantly is what RBC's proprietary research found because of what it suggests for the overall smartphone sector: RBC IQ/ChangeWave survey data of 4,200 respondents shows smartphone sales momentum is accelerating, with 37 percent of respondents saying they own a smartphone, "an all-time high, up from 34 percent in June."
Slideshow: Evolution of Wireless Communication
Part of the reason for RBC's high target on RIM, indeed the high target on RIM by many analysts right now, is precisely because of the acceleration of smartphone adoption. Billions of cell phones have been sold, but only a tiny percentage of them are so-called "smartphones," or net-enabled, highly capable devices like a Blackberry or iPhone. Most analysts agree that the potential in this sector is enormous, and will likely translate into several success stories, rather than one dominant player. With RIM and Apple momentum only gaining speed, amid hiccups by market leader Nokia , and a questionable future for Palm and its Pre, it seems some key players have plenty of room to run.
RIM shares have lagged the rest of tech if only because the emphasis lately has been on smartphones alone, and the stiff competition these companies face among each other. Apple's run can likely be attributed to its multiple revenue streams and the fact that its top and bottomlines are not solely dependent on iPhone the way RIM's balance sheet depends on Blackberry alone. I've written about that before, that Apple seems more attractive because of the revenue streams it enjoys from Macs, and iPods, and iTunes, and the App Store, and its operating system, etc. But lost in that message is just how fast the smartphone sector is growing and the enormous influence Research in Motion continues to wield in it.
RIM's had a nice run, but a strong report tonight and optimistic guidance, could be the catalyst investors have been waiting for to unlock this stock and its potential. And in potentially a very big way.
CNBC.com's Earnings Central
Questions? Comments? TechCheck@cnbc.com
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9bc19959ac7648a7fd63c357e9125f56 | https://www.cnbc.com/2009/09/24/should-ceos-buyout-options-be-a-securities-violation.html | Should CEOs' Buyout Options Be a Securities Violation? | Should CEOs' Buyout Options Be a Securities Violation?
The revelation that Marvel Entertainment CEO Isaac Perlmutter received option grants for more than a million shares while the merger of his company to Walt Disney was underway is a recent example of how CEOs of target firms have used this practice for personal gain.
Indeed, in my research paper titled: “Stock Option Grants to Target CEOs during Private Merger Negotiations,” which is co-authored with Jie Cai and Anh Tran, we document that the Marvel situation is just another example of a target CEO benefiting from the private knowledge of the impending acquisition his firm.
In the paper, we examine whether the granting of unscheduled options to target CEOs while merger talks are underway violates securities laws, particularly those aimed at preventing insider trading. After all, during our data collection stage we uncovered many instances in which target CEOs received substantial unscheduled options when their firms were privately been sold.
CNBC.com
These awards would end up netting these target CEOs millions.
My co-authors and I were baffled to discover that target CEOs, such as Marvel’s Perlmutter, are not technically in violation of Sections 10(b) and/or 16(b) of the 1934 Securities Act which penalize insider trading. Specifically, these laws state that “any person purchasing or selling a security while in possession of material, nonpublic information shall be liable in an action in any court of competent jurisdiction…”
However, well-timed option awards (such as those received by Perlmutter) are not actionable as insider trading violations. This occurs because an option award is technically not a “purchase” of securities for the purpose of the 1934 Act.
Despite the fact that granting unscheduled options to target CEOs might not violate insider trading laws, according to our research, such practice might be costly to target shareholders. This occurs because after receiving the options target CEOs can only cash in the options if deals go through. This might prompt these executives to accept lower takeover bids. In the firms we analyze our estimates indicate that, on average, shareholders in these targets lose about 307 million dollars when their firms are sold.
To put this result into context, for the average target firm in our sample, target value is reduced by 54 dollars for every dollar the target CEO receives from unscheduled options granted during private merger negotiations.
An example of this appears in the figure below (adapted from my paper) which illustrates the stock price of Scientific Atlanta (SA) around its acquisition of Cisco systems. According to our estimations, SA’s should have commanded an offer of approximately 44.36 per share. It was sold for $43 per share. As a result, shareholders probably lost close to 209 million dollars when SA was acquired. However, unscheduled options SA’s CEO Mr. James F. McDonald received during merger negotiations were valued at over $2 million.
Finally, we also find (as the Marvel example illustrates) that reporting regulations related to executive compensation promulgated under the Sarbanes-Oxley Act and other laws, have done little to eradicate the practice of granting CEOs unscheduled stock options during private merger negotiations.
The Marvel case along with our findings illustrate potential loopholes in existing securities laws aimed at deterring insider trading and weaknesses in the way executive compensation is reported by public firms. Moreover, we suspect that if regulators go over data related to merges in the recent past, the issue of unscheduled stock options to target CEOs during merger negotiations might reach a status similar to the recent option backdating scandal.
You can read the full paper here.
Stock Prices for Scientific-Atlanta. This figure graphs daily closing prices for Scientific-Atlanta from 5/18/2005 until 2/24/2006. These dates coincide with the initiation of merger talks between Scientific-Atlanta and Cisco and the date in which the deal between the two parties is completed, respectively.
Stock Prices for Scientific-AtlantaStock Prices for Scientific-Atlanta
_________________________Eliezer Fich is Associate Professor of Finance at Drexel University, Le Bow College of Business
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a8782b8643ec9080263825f1c7a63a2a | https://www.cnbc.com/2009/09/24/sonys-latest-gaming-device-cuts-out-retailers.html | Sony's Latest Gaming Device Cuts Out Retailers | Sony's Latest Gaming Device Cuts Out Retailers
For Sony, the PSP Go represents a bold leap forward in the field of digital content distribution.
For retailers, it might as well be called the PSP No.
Image of the PSP Go by SonyPhoto: Sony
Unlike its predecessors, the new portable gaming system from Sony does not run on traditional packaged software. Any game or movie the user wants has to be downloaded — and that leaves retailers out of the loop on the most profitable part of any gaming system.
While Sony will pocket a substantial profit from sales of the PSP Go itself (the device is, at its heart, a redesigned — and more expensive — version of existing hardware), the real money in gaming made is on the software side. By cutting retailers out of the mix, the electronics company is able to make more off of each transaction, boosting its revenues, while negatively impacting the bottom line of specialty stores like GameStop and Game Crazy — and even big box retailers like Best Buy and Wal-Mart.
As a result, it appears most retailers won't be giving the PSP Go launch the pomp and circumstance most new console devices receive.
Though it goes on sale Oct. 1, the PSP Go is barely mentioned on GameStop's Web site. And analysts don't believe brick & mortar locations will go out of their way to promote the device during the holiday season either.
"They're not getting a significant profit margin off of the hardware," says Eric Handler, senior equity analyst at MKM Partners. "If you're not benefiting from software sales, why should you allocate any significant floor space to it?"
To be clear, no U.S. retailer is refusing to sell the PSP Go. And most of the complaints have been indirect ones — never on the record.
One analyst likens the sniping by retailers to that of a petulant child.
"I think they're all kind of greedy," says Michael Pachter, managing director of equity research at Wedbush Morgan Securities. "Retailers that sell consumer electronics should never feel they have the right to sell content for those products. For example, many retailers sell iPods — but they have no chance of ever selling content for those."
Still, facing the potential of a less than enthusiastic retail push, Sony will have two choices — spent heavy marketing dollars for ads and premium floor space at key retailers or look for alternate ways to sell the PSP Go.
One of those alternative may be targeting its existing customer base.
"I would think the best way to reach the consumer is to offer it via PlayStation Home (the PS3's virtual community, which also has a shopping component)," he says. "In my mind, you have a core base of Sony gamers there and it seems like a logical way to reach that audience."
CNBC Slideshows:
2009's Top Selling Video Games2010's Video Games to Watch
The PSP has a moderate share of the portable gaming market. Launched with great fanfare in 2005, the device has worldwide lifetime sales of 52.9 million units. Nintendo's DS (along with its two variations — the DS Lite and DSi) have sold over 108 million units.
Retail foot-dragging aside, the PSP Go faces some additional challenges with consumers. At $250, the device costs substantially more than both Microsoft's Xbox 360 and the Nintendo Wii.
And because games can only be downloadable from Sony, the company is firmly in charge of pricing. At present, it does not plan to offer AAA titles at a discount from what they would cost at retail, which has angered some gamers.
Pachter only expects Sony to sell 1 million units of the device over the holiday period — mostly to hardcore enthusiasts who feel driven to always own the newest hardware system.
By early next year, he says, look for Sony to have to make some changes.
"I think they're going to be put in the position of having to discount that thing after the holidays," he says. "I think it settles down to $199 and the [existing] PSP-3000 goes to $149."
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6bf49888c552824c85fa62b6f540ba44 | https://www.cnbc.com/2009/09/24/think-google-books-is-evil-get-inside-larry-and-sergeys-brain.html | Think Google Books is Evil? Get 'Inside Larry And Sergey's Brain' | Think Google Books is Evil? Get 'Inside Larry And Sergey's Brain'
I don't know if you can actually pity the Google Guys - especially after Jim Cramer said he thinks the stock is "too cheap" and says it should skyrocket another $100 to become a $600 a share company. But the guys who promised to "do no evil' are coming under fire from all sides: authors, publishers, the Justice Department and now fellow C-Suiters are throwing some grenades.
Yahoo's! new boss, Carol Bartz went off on Google when she was asked if the media are "too obsessed with change at Yahoo." The San Francisco Chroniclereports Bartz replied, "When you get outside of New York City and Silicon Valley, everybody loves Yahoo ... I mean, why are you cynical about us? Be cynical about frickin' Google. Leave us alone."
"Frickin' Google."Yikes!
On CNBC.com now: Jane Wells on "Frickin' Google"
But not everyone is ready to tar and feather them. Some say all the rage against the Google Guys has nothing to do with copyright issues, or privacy, or the art of the word - rather, it's all about the (you know where I'm going here) - it's all about the Moolah, the Benjamins, the MONEY.
This is a guest blog written by Richard Brandt, journalist and author of, INSIDE LARRY AND SERGEY's BRAIN.
Richard BrandtRichard Brandt
Google Books program – What's the beef?, by Richard Brandt
Over the past few years, opposition to Google's plan to scan out-of-print books, allowing people to search through them or see entire copies, has gathered so much opposition that you'd think the company was proposing to drown kittens for profit.
Since Google reached an agreementwith the Authors Guild and the Association of American Publishers last year, the U.S. Justice Department and European regulators have expressed concerns and are investigating the terms of the deal. Attorneys general from at least five states have filed objections. The head of the Library of Congress has objected, as have several university professors and some libraries. An organization called the Open Book Alliance, organized by lawyer Gary Reback and whose members include Microsoft, Amazon.com, Yahoo and the Council of Literary Magazines and Presses, was formed just to oppose Google on the issue. Reback was an attorney influential in getting restrictions on Microsoft's alleged monopoly several years ago.
Google HeadquartersAP
Let's step back a moment and look at what Google is trying to do.
It first proposed digitizing books in 2003. Nobody objects to in-print books, where revenues may be shared with copyright holders or methods set up to let them opt out. Neither is there a problem with digitizing books no longer under copyright – which only includes books over a hundred years old.
The long-standing problem has been millions of books that are no longer in print but may still be under copyright. Nobody buys these books any more, simply because they cannot be found anywhere but in libraries and used book stores.
Even Amazon.com can't get the vast majority of them. Worse, in the vast majority of cases, nobody knows who owns the copyrights anymore. Google proposed letting anyone who owned a copyright to come forward and opt out of the program. But publishers wanted Google to spend millions of dollars to find the copyright owners, a laborious process that could never be completely successful.
The real stumbling block has been that book publishers have been afraid that Google will make money off these books and they won't – although they would never be able to make any money without Google Book Search or a similar project either. So they filed suit, but reached a settlement with Google in October 2008.
In that settlement, Google agreed to create a not-for-profit Books Rights Registry that would try to find copyright holders, maintain a listing of their rights, and allow them to opt in or out. It would also put $125 million into a fund that would be used to compensate authors and publishers for any money Google receives, likely to mostly be from advertising. Google CEO Eric Schmidt told me that he thought that deal was a “no brainer” and would be easily acceptable to all parties.
But now Google is being accused of setting up a monopoly, despite the fact that anyone else who wants to spend millions of dollars scanning books and reaching a similar deal with publishers – such as Microsoft, Amazon.com and Yahoo – has every right to do so.
Regulators are concerned that the deal would allow Google and publishers to set prices without competition. Libraries are concerned about getting free access to the books and the Registry. Privacy advocates, such as the American Civil Liberties Union, are worried about Google having knowledge of what books people are looking at, although they don't seem to mind the amount of information Amazon.com collects on book searchers and buyers.
Are these fair criticisms?
Lawyer Reback says that Google has a monopoly on search and that, like Microsoft a decade ago, it is using that monopoly to gain unfair advantage over other products, in this case, out-of-print books. But the issue remains that, without such a deal, nobody would have access to these books. Authors get payments that they could never have received otherwise. As a book author, I can assure you that the vast majority of books never provide any revenues beyond the advance they got for writing the book before it is ever published.
The real opposition is that the companies that compete with Google don't want the competition from Google Book Search, and don't want to pay to get in the game, as Google has. Since the deal between Google and the publishers is not exclusive - the usual criterion for determining a monopoly violation—the monopoly complaints are not worth the paper they're printed on.
I happen to be strongly in favor of the settlement. Right now the Justice Department is trying to reach a compromise with Google that addresses the concerns. Let's hope that is successful, although even that is not likely to stop the complaints and lawsuits. But, in the end, the Google Books project will have one overwhelming effect if it is allowed to go through: Dramatically increasing the amount of knowledge available to the world. What's wrong with that?
Google V. The World
______________________
Inside Larry & Sergey's BrainInside Larry & Sergey's Brain
Richard L. Brandt is a journalist with over 20 years’ experience covering science, technology and business.
He is the author of, INSIDE LARRY AND SERGEY's BRAIN (Portfolio, September, 2009).
Questions, comments? bullishonbooks@cnbc.com
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2a30b1c71e7a3f2af19b014a4a0aae09 | https://www.cnbc.com/2009/09/24/us-may-face-armageddon-if-china-japan-dont-buy-debt.html | US May Face 'Armageddon' If China, Japan Don't Buy Debt | US May Face 'Armageddon' If China, Japan Don't Buy Debt
The US is too dependent on Japan and China buying up the country's debt and could face severe economic problems if that stops, Tiger Management founder and chairman Julian Robertson told CNBC.
Julian Robertson, founder and former CEO of Tiger ManagementCNBC.com
"It's almost Armageddon if the Japanese and Chinese don't buy our debt,” Robertson said in an interview. "I don't know where we could get the money. I think we've let ourselves get in a terrible situation and I think we ought to try and get out of it."
Robertson said inflation is a big risk if foreign countries were to stop buying bonds.
“If the Chinese and Japanese stop buying our bonds, we could easily see [inflation] go to 15 to 20 percent,” he said. “It's not a question of the economy. It's a question of who will lend us the money if they don't. Imagine us getting ourselves in a situation where we're totally dependent on those two countries. It's crazy.”
Watch the Interview With Julian Robertson (Pt. 2)Slideshow: The Biggest Holders of US Government Debt
Robertson said while he doesn’t think the Chinese will stop buying US bonds, the Japanese may eventually be forced to sell some of their long-term bonds.
VIDEO0:0000:00Investment Legend Julian Robertson
“That's much worse than not buying,” he said. “The other thing is, they're buying almost exclusively short-term debt. And that's what we are offering, because we can't sell the long-term debt. And you know, the history has been that people who borrow short term really get burned.”
The only way to avoid the problem, he said, is to "grow and save our way out of it."
"The U.S. has to quit spending, cut back, start saving, and scale backward," Robertson said. "Until that happens, I don't think we're anywhere near out of the woods.”
Robertson is not very optimistic about the short-term.
“We're in for some real rough sledding,” he said. “ I really do think the recession is at least temporarily over. But we haven't addressed so many of our problems and we are borrowing so much money that we can't possibly pay it back, unless the Chinese and Japanese buy our bonds.”
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6ab23ca0e545f7161da57f5569af9a16 | https://www.cnbc.com/2009/09/24/visas-education-push.html | Visa's Education Push | Visa's Education Push
Managing money successfully. It's become a key theme at the Clinton Global Initiativeas leaders look for avenues to educate the consumer. Visa is one company leading the charge announcing its continued commitment to financial literacy on Wednesday, September 23.
The commitment? Visa says it will educate 20-million consumers worldwide by 2013. That's double its original plan unveiled at CGI just a year ago.
Visa Chairman and CEO Joseph Saunders stopped by the Closing Bell at CGI in and exclusive interview with Maria Bartiromo to talk about this initiative. For Saunders, financial literacy is of the utmost importance.
VIDEO0:0000:00Visa's Education Push
"The most important tools to spur financial inclusion is not a product – it is knowledge."
Saunders said, "We've made a commitment to make sure that we put financial literacy programs out to as many individuals as we possibly can.
It's impossible to electronicize the money transfer without having people understand how to use it.
So I think its essential to the development of the economies around the world in the long run."
On the consumer front, Saunders told Bartiromo the consumer is still facing challenges. "I think the consumer felt that their savings was in the value of the real estate they own. Now that the value of that real estate has diminished, I think they feel the need to put money in savings accounts."
Healthy Horizons -- A Special Report
While the consumer looks to gain confidence, Saunders is growing more confident on the state of the U.S. economy. "I think the economy is doing better. I think we're above the bottom. The question is - is the recession going to be a v-shaped recession or take longer? I think we need to bide our time and wait and see."
For Visa though, there's clear evidence of growth overseas. Saunders told Bartiromo "it seems that Asia may be leading the world out of this particular recession. Having said that, the United States is critically important to anything that happens. I'm very confident and bullish in where we'll wind up a little bit down the road."
Visa CardFlikr/liewcf
When asked if international growth is the 'jewel' in Visa's business, Saunders said, "we haven't penetrated the rest of the world to the extent that we have the United States. So we have two things going on. The improvement in their economy in the secular shift from checks…and cash to plastic."
On the regulatory front, Washington is clearly playing an unprecedented role in business today. For the credit card industry, that means consumers now have 45 days to reject proposed rate increases under the current reform. Companies will also have to mail bills 21 days before the due date, up from 14 days. Saunders told Bartiromo "the government is going to do what they think they need to do to protect consumers." Saunders also said he "hopes and believes there will be a dialogue that will make that an effective oversight matter." _____________________________
The Dow 30 in Real TimeThe CNBC Stock Blog
_____________________________
Questions? Comments? Write toinvestoragenda@cnbc.com
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5883d2e9ed0f99c702241990f3fff582 | https://www.cnbc.com/2009/09/24/web-extra-goldman-vs-apple.html | Which stock do you think will hit $200 first, Goldman or Apple? Find out what the Fast Money traders have to say then tell us what you think!
This content is only available online - you won't find these trades on TV.
VIDEO0:0000:00Fast Money Web Extra
______________________________________________________Got something to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! If you'd prefer to make a comment but not have it published on our website send your message to .Trader disclosure: On Sept. 24th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Terranova Owns (F); Terranova Owns (F) Calls And (F) Puts; Terranova Works For (VRTS); Finerman's Firm Owns (BAC) Preferred Shares, Finerman Owns (BAC) Preferred Shares And Owns (BAC); Finerman's Firm Owns (WFC) Preferred Shares And Is Short (WFC); Finerman Owns (WFC) Preferred Shares; Finerman Owns (RIG); Finerman's Firm Owns (MSFT), (NOK), (PBR), (WMT), (RIG), (TGT); Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (USO); Seymour Owns (AAPL), (AA), (BX), (EEM), (RIMM), (BAC), (RIG), (SBUX), (FXI) For Steve CortesCortes Is Short (FXI) Cortes Owns S&P Futures Cortes Is Short The Euro Cortes Is Short British Pound
For Mark MahaneyCitigroup Has Received Compensation From (GOOG) (GOOG) Has Been A Client of Citigroup In Past 12 Months Citi Is A Market Maker In Shares Of (GOOG)
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bd1959f4744d74cede80c3ba82b99050 | https://www.cnbc.com/2009/09/24/yahoo-ceo-bartz-be-cynical-about-frickin-google.html | Yahoo CEO Bartz: 'Be Cynical About Frickin' Google' | Yahoo CEO Bartz: 'Be Cynical About Frickin' Google'
Yahoo! CEO Carol Bartz got characteristically irked off this week when asked by a reporter if the media "is too obsessed with change at Yahoo." According to the San Francisco Chronicle Bartz replied, "When you get outside of New York City and Silicon Valley, everybody loves Yahoo. . .I mean, why are you cynical about us? Be cynical about frickin' Google. Leave us alone."
Well, well, well!
Portfolio's Worst American CEOs of All Time
Cue the folks at Glassdoor.com, a company I've written about many times which allows employees to anonymously rate their companies and their CEOs (assuming the employees are are whom they claim to be). Glassdoor decided to see how Bartz is faring compared to her predecessor, Jerry Yang, as well as Google CEO Eric Schmidt.
Think Google Books is Evil? Get 'Inside Larry And Sergey's Brain'
Bottom line, Bartz is doing better than Yang, with a 55 percent approval rating compared to Yang's 34 percent when he left. But she' not doing as well as Eric Schmidt's 87 percent approval rating. Impressive! But here's the hitch: Glassdoor says Schmidt's 30-day trailing average is at its lowest level ever. You can see in this chart that his rating has taken quite a fall in the last month. So has Bartz's.
Click here to view Glassdoor CEO chart.
Google as a company also still rates higher than Yahoo, 4.0 versus 3.3 on a scale of 1 to 5. But as you can see in this second chart, Yahoo's numbers have generally moved up this summer, while Google's have generally moved lower. Frickin' what??
Click here to view Glassdoor Yahoo chart.
What are employees of both companies saying?
"Jerry and Sue were the wrong people to lead the company," someone claiming to be a Yahoo VP writes on Glassdoor. "That's fixed now." "Yahoo! is often spoken of in the shadow of Google--even though Yahoo! is the prime internet portal," writes a purported software engineer. "Also, management is not always transparent, for e.g., with the recent Microsoft-Yahoo deal."
Comments from people claiming to be Google employees sound reminiscent of Microsoft workers a decade ago:
"Google is a big company that provides a comfy job but none of the burning desire to go that extra mile because they aren't making the effort to take you with them," writes someone identified as a senior engineer.
Another writer claiming to be a Google product manager says, "The company is getting really big. Products and infrastructures are huge now. Launching new products is getting really hard. Persuading people to go for a new idea can be an endless round of futile meetings." Finally, from an account manager, "Google is a large corporation, and that is starting to show more and more due to the economy."
Questions? Comments? Funny Stories? Email
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ad1e86b47d2fdd7da371b70b4af19c9e | https://www.cnbc.com/2009/09/25/airline-boss-gets-checkin-rage-police-called-report.html | Airline Boss Gets Check-In Rage, Police Called: Report | Airline Boss Gets Check-In Rage, Police Called: Report
Ever stood in an airport check-in queue and wished the airline boss could experience the same horror? Well the chief executive of budget airline Jet2.com did just that and wound up with a police caution for shouting expletives at his own staff, according to British media reports.
Philip Meeson was carrying out one of his routine spot checks at Manchester Airport when a queue of some 220 passengers got his blood boiling. He marched to the front of the line and laid into his staff with a tirade of four-letter words, various newspapers reported.
Meeson’s outburst won applause from the weary passengers, but the check-in staff were less than impressed and called the police, the reports said.
"Police were called to the check-in area at Terminal One, following reports that a man was being abusive to staff,” a Greater Manchester Police spokesperson told the Telegraph newspaper.
Jet2.com
"Officers attended and warned the man about his future conduct and behaviour under the Public Order Act," the spokesperson told the Telegraph.
The man admitted to officers that he’d been "unprofessional and irate," the spokesperson said, but he quickly calmed down so no further action had been necessary.
Meeson "was not happy with the service the Jet2.com customers were getting," Jet2.com said in a statement. He "took immediate action after seeing the length of the queue and requested that workers get it sorted immediately in his own passionate style!"
Jet2.com maintained that it was a "friendly," low-fares airline that just wants to "banish check-in queues."
Slideshow: In Flight and On Display - The Paris Air Show
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b7747da6f99dbc0a259a5154cbb95dd0 | https://www.cnbc.com/2009/09/25/anheuserbuschs-next-sponsorship-play-ping-pong.html | Anheuser-Busch's Next Sponsorship Play: Ping Pong | Anheuser-Busch's Next Sponsorship Play: Ping Pong
Ping PongPing Pong
It's a classic pairing: sports and beer advertisers, but now Budweiser is taking an off-beat approach.
As Advertising Weekwraps up here in New York, one major marketer, Budweiser , is sponsoring what it hopes will be the next hot sport to succeed Poker - Ping Pong!
Bud Light is sponsoring the biggest-ever table tennis tournament, called "HardBat Classic," which is airing this Sunday at 5 pm on ESPN . Five hundred players shelled out a hundred dollars each to compete in the tournament that was held at the Venetian Las Vegas this summer, competing for a $100,000 first-place cash prize. That two day tournament will be edited into a fast-paced two hours. K-Swiss is also a sponsor, hoping to revive the 70s chic sneakers and sweatbands that fit with the Ping Pong aesthetic.
Slideshow: Top 10 Video Games for 2010
Some major television names are behind this push for a new sport to take off. There's nothing on TV bigger than "American Idol," and the production company behind the show, FremantleMedia, is a producer. Also attached is the Mark Gordon Company, which has produced ABC's "Gray's Anatomy," "Private Practice," "Criminal Minds," and other big TV series. Radical Media, which makes everything from TV commercials to music videos and documentaries, is known for its ability to match brands and content. The goal is for Sunday's show to get huge ratings, and for this to yield a spot for HardBat on a cable or broadcast network next year. The tournaments as well as the sponsorships and ad time would generate a multi-platform revenue stream. They're already planning another tournament for early next year.
You don't have to be an athlete to be great at Ping Pong, everyone knows how to play, and it elicits all sorts of pleasant childhood memories of afternoons spent in rec rooms. I see the potential for celebrity HardBat tournaments, just like the World Series of Poker. But do people care enough about Ping Pong?
Some crazy characters certainly turned out for the event:
But it doesn't have the same kind of built-in Vegas fan base as poker, for sure. A lot will hinge on how interesting the show is, whether they can build up suspense and competition. The types of rackets and rules are supposed to create longer rallies Whether or not this works I think it's notable that such high-profile producers are looking for sponsorship opportunities, trying to create the kind of multi-revenue stream opportunities that are so hard to come by.
Questions? Comments? MediaMoney@cnbc.com
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341e062f29cb2b8101d49071c76432a9 | https://www.cnbc.com/2009/09/25/call-of-shamevote-now.html | Call of Shame-Vote Now | Call of Shame-Vote Now
Call of ShameCNBC.com
Autumn is upon us, but I see no fall off in candidates for our weekly look at finance's festering underbelly. Here's our list of nominees for The Call of Shame. Vote for your pick at the bottom.
And feel free to leave a comment.
AN INSIDE JOB
Perot employee Reza Saleh is accused of making $8.6 million in illegal profits using inside information to buy stock options ahead of Dell's proposed purchase of the company. The Wall Street Journal reports that Saleh was also Ross Perot's inside man 30 years ago in rescuing two employees held hostage in Iran. If he's guilty, I say that instead of prison, we put him in Special Ops to go back to Tehran...
TRUMP'S LIBYAN IN-TENT
Oh, Donald. Didn't someone on your team realize that they were renting out your estate TO MOAMMAR GADHAFI? The Libyan dictator's tent has been up and down on Trump's suburban Seven Springs property this week even though Gadhafi wasn't actually staying in it. It's just a "symbolic" gesture he takes with him every time he leaves home. New Jersey officials refused to let him set up camp on property he owns there. Let it never again be said that New York is classier than New Jersey.
CHAIS LUNGE
California's attorney general is lunging at ailing Beverly Hills money manager Stanley Chais, accusing the 83-year-old Friend of Bernie of pretending to be an investment advisor, when in truth he was just sending hundreds of millions of dollars of client's (and his own) money to Madoff. Chais is in New York where he is being treated for a blood disorder, and his attorney says he's too frail to travel west for trial. The lawsuit claims Chais promised returns of up to 25 percent while raking in $270 million in fees.
CRASH TEAM
Ok, I've almost learned to accept cheating in cycling or baseball. But intentionally crashing your car to throw a race? This week Renault's Formula One was given a "suspended permanent ban" (oh, that'll show 'em!) for Nelson Piquet's intentional race-fixing crash at the Singapore Grand Prix last year. Look, it's a Renault, it would've crashed eventually on its own.
KEN LEWIS IS "AWESOME"
Another week, another problem in the Bank of America-Merrill Lynch deal. This week the bank failed to turn over requested documents in time to a congressional committee. The bank says it's working to remedy that. But my favorite part of the story details what documents HAVE been turned over.Reuters reportsthat House Oversight and Government Reform Committee Chairman Edolphus Towns claims the bank has sent him "hundreds of pages of unrelated, extraneous information" which includes "emails from employees to Ken Lewis about his 'awesome' performance on 60 Minutes, emails to employees about company discounts at retailers, the announcement of the 'Annual Pecan Sale'" and "an invitation to attend an East Asian investment conference, written in Chinese."
BLOTTO
Only in California. The state lottery's TV show apparently gave $2.8 million away to someone who never actually qualified to be there, while another person who won a $2,000 consolation prize should've actually been allowed to compete in a game worth potentially $30,000. Now you begin to understand why we can't balance a budget...
Questions? Comments? Funny Stories? Email
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7e1ae0e6bd3fe272a6a1aeb302d28026 | https://www.cnbc.com/2009/09/25/cnbc-checkerboard-programming-for-the-week-of-september-28th-all-times-are-et.html | CNBC CHECKERBOARD PROGRAMMING FOR THE WEEK OF SEPTEMBER 28TH (ALL TIMES ARE ET) | CNBC CHECKERBOARD PROGRAMMING FOR THE WEEK OF SEPTEMBER 28TH (ALL TIMES ARE ET)
Mon, 9/28
8PM & 1AM -- Dirty Money: The Business of High-End Prostitution
9PM -- Inside American Airlines (2 Hours)
Tues, 9/29
8PM -- Biography on CNBC #1 - Ray Kroc
9PM & 1AM -- Executive Vision #1
10PM -- Cruise Inc: Big Money on the High Seas
Wed, 9/30
8PM -- Biography on CNBC #2 - Sam Walton
9PM & 1AM -- American Greed#21
10PM -- American Greed #22
Thu, 10/1
8PM -- Put it on the Map
8:30PM -- The NEW Age of Walmart(90 Minutes)
10PM -- Biography on CNBC #3 - Enzo Ferrari
1AM -- Inside Track: Refueling the Business of NASCAR
Fri, 10/2
8PM -- Fast Money (30 Minutes)
8:30PM -- Options Action
9PM & 1AM -- The Suze Orman Show
10PM -- American Greed #23
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e404ac9c6a2f587860fdae4c1731b6a0 | https://www.cnbc.com/2009/09/25/cramers-tech-specs-3com.html | Investors who want a “cheaper, smaller, speculative” stock than Cisco Systems should buy 3COM, Cramer said Friday. The company just reported an “unbelievably fabulous” quarter, beating the Street’s estimates and raising guidance, and “that made me a believer.”
VIDEO0:0000:00InterNet Gain?
3COM and Cisco operate in the same space, networking equipment, and it’s a key element of Cramer’s latest favorite growth trend: the mobile Internet. They make Ethernet switches, routers, Internet-protocol telephony, wireless networks and similar products. Wherever there’s a need for a better connection and more bandwidth, these companies make it happen. The big difference is that 3COM often charges less, and that should allow them to start taking market share from Cisco.
The depression/recession of late 2008 put the upgrade of many data centers on hold, Cramer said, which has pushed the currently running networks to their fullest capacity and created an increased demand for gear needed to run them. So business is good for 3COM. And the orders are coming in from both the consumer and enterprise sides, as companies upgrade their own networks to utilize new technologies that make their IT applications more efficient.
3COM has another force driving sales right now as well, China, where it’s been growing steadily since 2003. Remember, China committed $40 billion to build out its wireless infrastructure, and 3COM, through its joint venture with Huawei, will take advantage of that. The company already controls 32% of the Ethernet-switch market and 33% of the router market there. Cisco is bigger in the Middle Kingdom, but those numbers are still significantly higher than 3COM’s standing throughout the rest of the world: just 3%. And 3COM’s direct business in China accounts for 40% of total sales, and it’s growing.
H3C, as the joint venture is called, sells to larger enterprise clients than 3COM’s main business, which focuses on small to mid-sized companies. H3C’s branded products recently launched outside of China, and Cramer’s predicting that even a small bump in market share outside of the company’s geographical base “could be huge for 3COM’s earnings.”
Business stabilized last quarter for 3COM in all of its locations, Cramer said, with more and bigger deals coming from North America, too. The balance sheet holds $667 million in cash but just $200 million in debt. Only four analysts cover the stock – two buys and two holds – so the stock could go higher as 3COM attracts more attention.
One final point from Cramer: Bain Capital made a $5.30-a-share offer for 3COM about two years ago, but the government stopped it for fear that China would be able to breach US network security, as the Defense Department relies on 3COM’s cyber-security products. The stock, trading at about $4.95, is below that offer, which should be 3COM’s floor, Cramer said, and “I don’t think it can get that much cheaper.”
So what’s the bottom line?
“After that incredible quarter, I think 3COM has the best opportunity to take networking market share in [its] history,” Cramer said. “This tech stock is a buy, buy, buy.”
Cramer's charitable trust owns Cisco Systems.
Call Cramer: 1-800-743-CNBC
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com
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84941dfb674d0ff9e64687390866ec17 | https://www.cnbc.com/2009/09/25/dendreon-makes-the-listagain.html | Dendreon Makes The List...Again | Dendreon Makes The List...Again
2,226 percent. That is the astronomical increase in shares of baby biopharma Vanda so far this year. And it's the prime historical example of "Biotech Takeouts and Breakouts" Bernstein's Geoffrey Porges uses in a sequel research note to clients he put out today.
On July 31st, Porges wrote the first installment calling for a second half rally in biotech. Today he writes, "While that rally has yet to materialize, the conditions for it remain favorable, and we believe resolution of political risks in the remainder of 2009 will improve investor sentiment toward the group." The political risks he's referring to relate to healthcare reform. Anyway, through a special formula, he and his team identify 28 companies that are potential takeouts, 17 that could break out and three that might be both. The dual candidates are Abraxis, Protalix and Optimer. The bigger takeout targets, according to Porges, include Dendreon, Alexion and United Therapeutics. And his possible higher market value breakouts are Cell Therapeutics, Pharmasset and Allos, which announced this morningthat the FDA has approved its lymphoma drug.
Human Genome Sciences
VNDA
Protalix
Genzyme
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b5cfcfa76bcb826715de01bf3c7bfd7c | https://www.cnbc.com/2009/09/25/four-steps-to-protect-a-windfall.html | Four Steps to Protect a Windfall | Four Steps to Protect a Windfall
AP
It may seem like a problem you'd love to have: Deciding what to do with a sudden inheritance from a long lost relative or a big win in the lottery.
But, as the sad tales of some lottery winners clearly demonstrate, sudden wealth could quickly spiral into a living nightmare -- with the loss of not only wealth, but also family, friends and even health.
If you're lucky enough to receive a windfall, understanding the psychology of sudden wealth can help you take the right steps to protect your money and lifestyle.
"People think windfalls are about money. But it's really all about change and transition ... and people need time to adjust," says Susan Bradley, a Certified Financial Planner who is founder of The Sudden Money Institute in Palm Beach Gardens, Fla., and author of "Sudden Money: Managing a Financial Windfall."
Money shock isn't necessarily limited to those who get millions suddenly deposited into their bank account.
In fact, unexpectedly getting as little as three months' worth of salary in one lump sum can set off a chain reaction of panic, guilt and fear for some, according to psychologist Dennis Pearne, co-author of "The Challenges of Wealth" and a wealth counselor and consultant based in Framingham, Mass.
"A person making $60,000 a year ... who suddenly has $15,000 plopped in their lap" can go into money shock, Pearne says.
Following are four steps that can help you adjust to a new financial reality after a windfall:
Step 1: Money moratoriumThe shock of a sudden windfall can set off a litany of irrational behaviors, such as giving all the money away, becoming a recluse, spending the money lavishly, and hiding or hoarding the money. Other hallmarks of money shock include engaging in self-destructive and expensive activities such as drinking, using drugs, gambling and sex addiction, says Pearne.
Bradley says such problems stem from the fact that most people don't understand the limits of their new wealth, especially if the windfall is relatively large.
"(The money) can be seem infinite ... people often get an 'I'm invincible, anything is possible' feeling," she says.
These powerful emotions may create trouble for those with new wealth.
To counteract these emotions, it's important to allow time to adjust to the new wealth circumstances that follow a windfall. Pearne and Bradley recommend that people who receive a windfall do nothing with their money for at least a few months, if not an entire year.
That means saying "no" to gifts for family or friends, new investments, lavish cars or house purchases, and trips around the world. It's not even wise to retire.
"Park your money someplace safe where it won't depreciate and take a money holiday," Pearne says. She recommends CDs as one possible home for the new cash.
Bradley says the money moratorium acts as a timeout that allows you to come to grips with your new financial situation and get your emotions under control.
"Emotionally, a windfall results in a stress reaction," Bradley says. "When people are in that state, they are using their reptilian brain and are prone to react rather than respond."
Taking a breather from the excitement of getting a lot of money -- and knowing you don't have to make any decisions right away -- can help calm emotions and set the stage for better decision-making, Bradley says.
During the money moratorium, there is a lot of work that needs to be done. While the money is safely parked in CDs for six months to a year, start to assemble a team of advisers you trust, including a fee-based financial planner, an estate attorney, a money manager who has experience with high-net-worth individuals and an accountant, Bradley says.
"This is a time to discover, organize and explore," Bradley says.
Step 2: Emotional inventorySudden wealth can lead to what psychologist Pearne calls "identity dissolution." All the parameters set up in life -- which define identity -- are suddenly gone.
After an especially large windfall, traditional work may become an option rather than a necessity; all the years of school training to get to a skill level are no longer necessary for survival.
Next: Set aside play money...read more
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b2efc4506ffdb6aa05d5e830c78d2ca1 | https://www.cnbc.com/2009/09/25/geny-college-resource-startup-thrives-despite-recession.html | Gen-Y College Resource Startup Thrives Despite Recession | Gen-Y College Resource Startup Thrives Despite Recession
In the midst of the "Great Recession," Jordan Goldman, now 27, launched a startup that has risen to become one of the largest resources for college information on the Web.
Goldman said the weak economy has helped his year-old company - - thrive, because it provides helpful information to students and parents that they cannot afford to get on their own right now.
CNBC sat down with the young entrepreneur at his New York office and asked him where he got the idea for Unigo, how the recession impacted the startup, what advice he has for aspiring entrepreneurs and more.
VIDEO0:0000:00Recession Startup: Unigo.com
CAN YOU EXPLAIN UNIGO.COM IN A NUTSHELL?Unigo is one of the largest resources for college information, created by the students themselves. So we get hundreds of students on every single campus across America to send in reviews and photos and videos, just kind of honest encapsulations of what it's really like on their campus, and the value of having that much content is you can subsearch.
You can say only show me your reviews of Princeton written by African American students or by female students or by students from California, so you can see your school from the eyes of someone who's just like you.
US News & World Report says the school is ranked number five, but how helpful to you? It can be ranked number five, but you could be miserable there, so the idea here is see what students like you think of the school. Where do people that you would relate to learn the most and enjoy the most? If you're going to make a four-year, $250,000 decision, you want to make that with the best possible information. HOW DID YOU COME UP WITH THE IDEA FOR UNIGO.COM? When I was first applying to college, I thought the resources that were out there were not as good as they could be. They didn't give all the information, so I wrote a book proposal and sent it into Penguin Books and said I'd like to have a completely student written resource.
I'd like to have something that's more comprehensive, more honest and those came out in [four] editions from Penguin .. .When I was 23, I started saying how can I take this to the next level, how can we put it online and make it even easier, even more helpful, even more honest and kind of insider perspective and help more kids go to college by seeing the right information. So I wrote a business plan and took it around and was able to raise financing, and we launched Unigo when I was 26, so we've been live now just under a year. WAS YOUR AGE A BARRIER IN STARTING YOUR OWN BUSINESS?It both helps and hurts. It helps in the respect that people like to help out young entrepreneurs. So when I did my business plan I pretty much did a Google search for business plan and found all the components and then reached out to as many people as I could find that had done this before and were business professionals, and I'd say 'Can I take you out to lunch?' or 'Can I take you out to dinner? Can I tell you my idea?' and 'What am I doing right?' or 'What am I doing wrong? What am I not thinking about that I should be thinking about?' and wound up taking 50 to 100 people out to dinner, and if I wasn't so young they may not have been willing to sit down with me, but over the course of the year and taking lots and lots of people out to dinner, the idea got better and better and better and the business plan evolved and it got to a point where it was financeable and we were able to raise capital and get Unigo off the ground.
Slideshow: Colleges That Bring the Highest Paycheck
WHAT WAS YOUR JOURNEY FROM INCEPTION TO SITE LAUNCH?I started when I was 23 when I came up with the idea and wrote the business plan, and then at that time I was living off my savings and pretty much doing it full time and trying to raise money...and you can't get an apartment in New York unless you have a job and can prove an income, and I couldn't do that for a year and a half, so I lived in sublets. And I lived in about 18 or 19 sublets all over Manhattan.
Every single month I had to move somewhere else because my sublet ran out, but I was committed to taking this business plan and raising capital. So it was about a year and a half before we fully raised capital, and then before we went live we were all a team for about six months, so what we did was we had a full-time editorial team, and we contacted students on campuses all over America, and we asked them if they wanted to be our interns and help us in our efforts, and we got more than 300 students that were kind of our troops on the ground.
We said will you spread the word and tell other students that we're putting this together, that this is going to be the world's largest college guide, it's going to be crowd sourced, it's going to be honest and it's all student based, so the schools had no idea we were doing it. At the end of the six months, before we went live, we had gotten more than 30,000 students to create 10s if not 100s of thousands of reviews and photos and videos and in a lot of cases five to 10 percent of the entire student body sent something in. So the day we launched, we launched September 2008, we were one of the world's largest resources for college information form day one. HOW HAS THE RECESSION AFFECTED YOUR BUSINESS?Before the recession people could afford to travel to the schools and visit schools and try to make this decision in the best possible way. Now because people's budgets are tight, it's harder for them to spend thousands of dollars traveling all over the country to visit colleges, but there's still this real need to know before you get to a school what it's going to be like, because it's one of life's five most expensive decisions and one of life's five most stressful life decisions, so you want a certain level of information.
Unigo offers totally for free information that you previously couldn't get without taking a campus tour, so our traffic has kind of been booming, because people have needed what we offer, and we're free and you can get it in your home, so from that respect the recession has been helpful only in that we make available information that people can't afford to get on their own right now.From a business perspective, it's always hard. The advertising market is more difficult, you want to cut costs. I think we've been far more conscious of our own spending. Things that were niceties, we said you know what we can't afford to do that right now. The economy collapsed about a month after we went live, so our belt has been a little bit tighter than we would have thought.
You just really have to assess what you're spending money on and is it going to give you maximum returns, but I think for a young business that's a good process anyway and to the extent the economy made us focus in on that to only spend what you absolutely need to spend and what's going to give us the best possible returns, that was almost good for us in that it really kept us focused and tight. Even though it's a difficult advertising market, we've still been able to attract advertisers like Wall Street Journal and Dell and Apple and Best Buy and other really amazing advertisers that have been growing with us and working with us. Maybe you have to have a bit of a stronger sale and a stronger proposition to them, but in the same respect that's tightened our pitch and it's tightened our focus, so it hasn't necessarily been a bad thing. HOW DID YOU FIND YOUR STAFF?We pretty much hired everyone as a class. Paul Dietze is our COO and CFO, and he was previously at Sony. He was part of the team that helped launch the Playstation, and he was the chief financial officer at LiveNation and was just a mentor and someone I had reached out to when I was in college.
I said (to Paul) here are some ideas I had, can I take you out to lunch? We kept in touch all throughout college, and when I came up with the idea for Unigo, he said he'd like to come on full-time and help do this...Barry Goldberg, who's our CTO, was previously the head of technical development at Princeton Review, so he has a lot of experience in the education space and helping students and helping them get the best information, and then we have this large editorial team, which all started on the same day and we all trained together and we all built this together.All of our employees, except Paul and Barry, our CFO and CTO, were 26 and younger. I just turned 27, so I just broke that barrier, but everyone was 26 and younger. We were a room full of recent college grads, and we said in most companies we would be the people getting photocopies and fetching water for other people, and we reached out and got 10s of thousands of students without the grown ups knowing we were doing it to all take part in something really cool and to make all this really cool stuff, and the fact that six months out of the gate more than a million people have come and seen what this room full of 26 and unders put together was very cool. There are a lot of people that feel professionally you have to earn your dues and no one's going to listen to you until you're 30 or 35, and if you have an idea you can't go for it or you shouldn't bother making a startup ... it just doesn't seem to be the case. WHAT ARE YOUR PLANS FOR UNIGO GOING FORWARD?We're adding new features all the time. Right now we have in-depth coverage of about 350 schools, where we've got 5-10 percent of the student body, where we have a robust level of content, but we want to have that for every school in the country. So we want to expand to every four year school in the country, every two-year school in the country, we want to expand to graduate schools, internationally. Our methodology is really scalable. We want to work with students at all sorts of schools so that Unigo is the world's largest largest resource no matter what level of education you're looking for, whether you're starting your process when you're 18 or whether you're going to grad school when you're in your mid 20s, we want to be the place you come to find out everything you need to know.
WHAT ADVICE DO YOU HAVE FOR YOUNG ASPIRING ENTREPRENEURS?It doesn't matter what your background was, it doesn't matter what your experience was, it doesn't matter who your parents are - whether they're wealthy or not wealthy. Some people say "Oh you have to have all these connections and wealthy parents." It's not really the case. I grew up in Staten Island and my parents were schoolteachers.
I was an English major in college and had nothing to do with business, but if you have a really good idea that you're really passionate about, work through it. Reach out to people that you can learn from, figure it out step by step, like how am I going to practically implement this and just have faith in your own ideas that you're going to be able to find other people, and if your idea is really unique and original and you can execute it, people are going to back you and they're going to get behind you and add their knowledge and experience to your own and you can get what you have off the ground. You can't give up, you just have to work with your idea and take it where it needs to go.
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5937329e5659ff12e4de4c6682b093be | https://www.cnbc.com/2009/09/25/gms-money-back-promotion-is-on-the-money.html | GM's Money Back Promotion is On the Money | GM's Money Back Promotion is On the Money
Almost two weeks into its campaign offering buyers of GM vehicles their money back if they are not satisfied, Bob Lutz likes what he is seeing.
In fact, the Vice-Chairman is so confident the program will work, he is predicting fewer than 1% of those who buy a Chevy, Buick, Cadillac and GMC under this promotion will ask for their money back. Friday morning on Squawk Box Lutz told me, "I'm gonna go out on a limb here and say it will be way under 1% (who ask for their money back)."
VIDEO0:0000:00GM's Lutz on Satisfaction Guarantee Program
Lutz says the program is doing exactly what GM wanted: increasing the percentage of buyers willing to consider a Chevy, Cadillac, Buick or GMC.
Does that mean the money back offer is a home run promotion?
I'm not so sure.
But given how far GM has to go in terms of changing the perception of buyers, there is no doubt it is at least a single or double.
According to Lutz and others who track buyer consideration, the percentage of people willing to at least look at a GM model is up 14-17%. The biggest increase was right after GM launched the program with TV spots featuring Chairman Ed Whitacre. Whitacre said GM is so confident people will like its cars, trucks and SUVs; the automaker is putting its money where its mouth is. Lutz believes that offer has helped the company make inroads with thousands of undecided car buyers. He says, "It is precisely in this undecided vote that we are up anywhere between 14 and 17 percent and we have also had over one million visits to the 60 day satisfaction guarantee Web site. So as far as we can tell and what the dealers are reporting and so forth it is having exactly the effect that we wanted."
But how much is the program actually moving the needle at Chevy, Buick, Cadillac, and GMC?
According to Edmunds.com, the percentage of people checking out 3 of the four brands has in fact picked up.
Edmunds CEO Jeremy Anwyl says GMs newest models (Chevy Malibu, Chevy Equinox, etc) are doing the best job at changing perceptions with buyers. This is why Anwyl believes GMs campaign is one worth continuing, "I think GM has to continue to market along those lines, basically challenge people to give them a shot, and hopefully they will like what they see."
Admittedly, no automaker can change its image with buyers in just two weeks. Heck, when the first Chrysler commercials featuring Lee Iacocca came out as he tried to turn around the company, many in the press scoffed. Eventually, those ads were seen as a stroke of genius. But it took a while for them to gain traction with car buyers. GM is in a similar, though far less dire situation. As Lutz is quick to point out, changing perceptions is a long process, and this is just one step.
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Questions? Comments? BehindTheWheel@cnbc.com
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3f49f29b0ef345d14f0b0a2e586de650 | https://www.cnbc.com/2009/09/25/gnashing-teeth-at-the-typo.html | Gnashing Teeth at the Typo | Gnashing Teeth at the Typo
It is the bane of every editor. The typo.
They are like cockroaches. You urge writers to prevent them. You tell editors to be alert and crush them. You spellcheck for them. You force people to read copy backwards in an effort to find the ones hidden in mental context.
And still they crawl out of the copy.
You tend to get a fair number in Internet news ... partly because of that time pressure thing to
get the story up and out as quickly as possible. When I was in newspapers we'd get typos too. But not as many. You had more time to write and re-read your story. And there was time for copy editors to go over it a few times. Still, the typos would appear. Nice thing about the Internet, you can correct them. On newsprint, it's there forever, baby.
Our readers let us know about them. Some do it nicely. Others not so nicely. For example, a remark from a reader this afternoon: Does anyone there edit what goes up on line? It's pathetic. — Chris
Sigh. No credit for all the stories we get up without typos. But I can understand the viewpoint. Typos are typically taken as a sign of sloppiness. If you mix up your "is" and your "if," how can you be trusted to get the yield curve right? A valid point. If it's any excuse, and it's not, writers typically typo because they are so preoccupied with the bigger picture they forget to do the little stuff right. Editors let typos get by for much the same reason. Plus all their multi-tasking demands.
Anyway, thanks to those of you who give us the heads up. Oh and ironically ... Chris? There was a typo in your missive ... no "s" was needed on "unprofessional."
Update: Yes, I have a typo up there. I wish I could say I did it for a double-dose of irony. Alas no ... it was there from the beginning. A news associate here pointed it out as soon as it was up. I corrected. And it came back because of the picture displacement and the fact that our CMS can't &^#*%$@ position things right. I'm leaving it there. As punishment. Thanks to those who wrote in.
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0a282dc0053d81a2bfb21b72cb2afa5e | https://www.cnbc.com/2009/09/25/hirschhorn-why-many-americans-arent-great-traders.html | Hirschhorn: Why Many Americans Aren't Great Traders | Hirschhorn: Why Many Americans Aren't Great Traders
VIDEO0:0000:00Hirschhorn: Why Americans Aren't Great Investors
Video: Market coach Doug Hirschhorn, PhD, discusses the six reasons why many Americans aren't always the brightest bulbs when it comes to trading equities.
1. We tend to believe the so-called experts too much If 2008 taught us any lesson, it was to be skeptical and ask lots of questions.
2. Crystal balling You try to predict what is going to happen rather than pay attention to:
What just happenedWhat mistakes you madeWhat lessons can be learnedAnd how you can improve
3. Reactive approach instead of proactive Rule #1 in trading is to always know where your downside risk lies. You tend to only pay attention to risk when it blows up in your face.
4. Control freak You waste time each day watching your investments and the markets because you fear that if you don’t watch it, it will betray you.
5. Immediate gratification mindset You want it now, you want it fast, and you want more of it.
6. Overconfidence You think if you take your investments into your own hands then you can outperform the markets.
Think better, invest smarter.
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d30f50cf529ab81306c876a0b2bbeed1 | https://www.cnbc.com/2009/09/25/is-twitter-worth-1-billion.html | Is Twitter Worth $1 Billion? | Is Twitter Worth $1 Billion?
Twitter
Twitter is on track to raise $100 Million dollars in financing, which would make the micro-blogging site, which currently doesn't have much of a revenue stream, valued at $1 Billion.
The company is set to complete a round of financing from some of its current investors including Spark Capital and Institutional Venture Partners, as well as new investors T. Rowe Price (an unusual investment from the mutual fund company) and Insight Venture Partners.
Slideshow: 10 Biggest Tech Blunders in the Last 25 Years
The company has become a source for celebrity gossip with a direct line to stars themselves, the next generation broadcaster, with millions of users signing up for instant headlines from the likes of CNN and CNBC, and a next-generation communication tool. Everyone from Google to Microsoft to Facebook has acknowledged the site's value and pursued investment in the site. For now, Twitter is going alone and certainly won't have a hard time building a war chest to do so.
They're all Twittering
What would make Twitter worth a billion dollars? It all comes down to Twitter's incredibly fast-growing audience: though Twitter won't release users numbers, its website alone has over 30 million unique monthly users, plus more of its mobile and smart phone services. Last week I blogged about Twitter's new terms of servicethat indicate what we can expect from its new business model. The company is already working with companies to help them track user comments on Twitter and use the site as the ultimate direct-marketing to reach out to interested fans. And then of course there's the potential advertising business that seems just around the corner for the site.
Facebook has also attracted sky-high valuations; an investment from Digital Sky Technologies in May puts the social networking site at $10 Billion, while Microsoft's 2007 investment in the site valued it at $15 Billion. Of course Facebook is now cash flow positive with an estimated $500 Million in annual revenue.
Slideshow: Evolution of Wireless Communication
As ad dollars shift away from newspapers and even traditional TV broadcasting everyone is looking for the silver bullet of how to reach consumers. And not just any consumers – they need those consumers who care about a product and are likely to buy it. Twitter hasn't proven that it can do that, but it certainly has the tools, which is enough for investors to jump on board. It's notable that Twitter doesn't feel any pressure to rush to generate revenues; they're too busy building out their capabilities and securing their relationships with users. As frustrating as it is to wait for the company to launch its businesses, they're right to be careful; in this fast-paced social media space you never know when something new will come along.
Questions? Comments? MediaMoney@cnbc.com
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f61ec27bbca7e0855ab88a1593c09806 | https://www.cnbc.com/2009/09/25/kraft-ceo-heeds-warren-buffetts-animal-spirits-warning-on-cnbc.html | Buffett Watch | Buffett Watch
Kraft Foods CEO Irene RosenfeldAP
Kraft CEO Irene Rosenfeld has promised employees she won't let "animal spirits" take over as the company pursues its proposed acquisition of Cadbury.
That's the phrase Warren Buffett used in a CNBC interview last week as he said Kraft's $16.4 billion stock offer is a "full price." That's seen as a signal Buffett does not want Kraft to raise its offer, despite Cadbury's rejection of the bid as too low.
In a transcript of a Kraft Global Employee Town Hall held yesterday, and filed today with the SEC, Rosenfeld says the combination of Kraft and Cadbury would create a "formidable global powerhouse in snacks, confectionery and quick meals."
But, she adds, "This is something we would like to do, not something that we have to do. And so we intend to remain disciplined in our actions. And I can assure you we will avoid allowing those animal instincts that Warren Buffett alluded to take over."
In last week's CNBC interview, (complete transcript and video here), Becky Quick asks Buffett if he thinks Kraft's bid for Cadbury is a "good one?"
BUFFETT: Well, it's a pretty full one. I mean-- the-- Kraft-- Kraft has got-- anytime you're in a takeover, you know, that-- the animal spirits run high and all of that. But Kraft has the disadvantage of using an undervalued stock. So if you-- if part of your currency is a stock that's worth more money than it's selling for and you're-- you're paying full negotiated value for the other guy’s property and you wouldn't sell your own property for anything like the market price, it's-- it's a-- it makes it a tough game. So it's-- it's a full price. BECKY: Are-- that makes it sound like as if you're not in favor of this bid? BUFFETT: No, I-- I've got a lot of confidence in (Kraft CEO) Irene Rosenfeld. She'll-- but they have to do a lot of things right to justify this price.
Current Berkshire stock prices:
Class A:
Class B:
For more Buffett Watch updates .
Email comments to buffettwatch@cnbc.com
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4e0fbe923854b76184e20a0327b80e5c | https://www.cnbc.com/2009/09/25/lightning-round-ot-windstream-hartford-financial-and-more.html | VIDEO0:0000:00Lightning Round OT
Bruker BioSciences : Bruker is a “winner,” Cramer said. Buy BRKR.
Hartford Financial Services Group : The money’s been made in HIG, Cramer said. Don’t buy until the price drops to $20.
Windstream : Cramer is bullish on WIN and its 10% dividend yield.
Call Cramer: 1-800-743-CNBC
Questions for Cramer?
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b91fa72289b340f8c53d44fec618c65a | https://www.cnbc.com/2009/09/25/losey-401k-match-suspended.html | Losey: 401k Match Suspended | Losey: 401k Match Suspended
Question: My company recently sent out a memo saying they were going to suspend their matching 401k contributions for the rest of 2009 and maybe 2010 as well.
This could dramatically affect my ability to retire.
Are they allowed to do this? Christine, New York, NY
Answer: Christine, each company has their own 401k plan document which contains its own set of rules that normally allow for the suspension, reduction, increase or termination of matching contributions. Companies include this clause to protect themselves from having to make contributions when profits are slim and to reward employees when profits are abundant.
In late 2008 and early 2009, some companies, like yours, have either reduced or suspended their 401k matching contributions. Major industries being affected now include auto, health care, newspaper, gaming, and construction - but many more are considering.
The upside of this cutback/reduction, if you can call it that, is that the alternative was most likely an employee layoff so people are staying employed when their companies cut back on their fringe benefits. So be thankful you have a job.
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The downside of this cutback/reduction to you and your coworkers is the potential loss of many years of tax-deferred compounding and growth on the contribution the company would have made. This could be the equivalent of tens of thousands or hundreds of thousands of dollars over 1-2 decades.
Let’s hope your company can reinstate the company match in 2010. In the meantime, consider saving a higher percentage of your salary (if possible) or invest more aggressively to offset this reduction/decline. If you’re getting a raise this year, consider putting that raise directly into your 401k rather than your pocket.
Bill’s Bottom-line: Don’t count on your company or the government to take care of you in retirement.
_________________________Bill Losey, CFP®, America's Retirement Strategist®, coaches women and couples nationwide with their retirement planning and investment portfolios. Bill is the author of Retire in a Weekend! The Baby Boomer’s Guide to Making Work Optional and he also publishes Retirement Intelligence®, a free weekly award-winning newsletter. You can learn more at .
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2187b5340d2d9fc42c64a9bfdf681ad2 | https://www.cnbc.com/2009/09/25/markets-will-drop-717-in-october-strategist.html | Markets Will Drop 7-17% in October: Strategist | Markets Will Drop 7-17% in October: Strategist
Stocks continued to struggle on Friday. Could this be the beginning of a real market correction? Mike Rubino, president of Rubino Financial, and Paul Schatz, president of Heritage Capital, discussed how investors should position their portfolios for the end of the third quarter.
VIDEO0:0000:00Portfolio Positioning for Q3's End
“I’ve been bullish for a while and over the next year, we’re going higher,” Schatz told CNBC.
“In the interim, the best chance for the first significant correction since the bull leg began in March is coming up early to mid-October."
"It lasts 4 to 6 weeks and we go down 7 to 17 percent. Other than that, we’ve been on an uptrend and it’s going to be a place to buy," Schatz said.
He believes the correction will be healthy for the markets and relatively small, compared to the 50 percent rally since March.
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In the meantime, Rubino is worried about consumers refusing to open their wallets to spend.
“Consumer spending has no chance of coming back with unemployment soaring and the housing market continuing to deleverage on a nationwide basis," he said. "I don’t see how consumers are comfortable spending when they’re worried about their assets being depleted.”
Schatz Likes:
S&P Consumer Staples
S&P Utilities
S&P Biotechnology
Rubino Likes:
Proshares Trust
Proshares Short Oil & Gas
Proshares Short Financials
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No immediate information was available for Rubino or Schatz.
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da2fe48108a30599c1b8926afda395cf | https://www.cnbc.com/2009/09/25/obama-iran-on-notice-after-nuclear-fuel-disclosure.html | Obama: Iran 'On Notice' After Nuclear Fuel Disclosure | Obama: Iran 'On Notice' After Nuclear Fuel Disclosure
President Barack Obama says Iran is on notice following the disclosure of an underground plant to make nuclear fuel that could be used to build an atomic bomb.
He says the international community has spoken. Now he says it's up to Iran to either choose to give up what the U.S. says is the desire for nuclear weapons and abide by international standards, or continue down a path toward confrontation.
VIDEO0:0000:00President Obama: G-20 & Iran
The president would not rule out military options. But he says his preferred course of action is to resolve the standoff diplomatically. (See Obama on Iran and G-20 at left.)
Earlier, Obama and the leaders of France and Britain accused the Islamic republic of clandestinely building an underground plant to make nuclear fuel. Obama called the international response "an unprecedented show of unity."
Obama also asserted that he and other leaders of the world's 20 largest economies took actions that "brought the global economy back from the brink" and saved or created millions of jobs.
"We leave here today confident and united," he said at the conclusion of a two-day summit to deal with the worst economic crisis since the 1930s.
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He spoke as world leaders lined up behind sweeping promises designed to fix a malfunctioning global economic system in hopes of heading off future financial meltdowns.
The leaders agreed to leave stimulus programs in place for now until recoveries are more firm. "We must make sure that when growth returns, jobs do, too," he told a wrap-up news conference.
"We brought the global economy back from the brink. We laid the groundwork today for long term prosperity," Obama said.
"It is important to recall the situation we faced" in April when the Group of 20 leaders last met and when talk was rampant about a second Great Depression.
VIDEO0:0000:00President Obama Q&A
In a statement issued at the conclusion of the summit, the full G-20 leadership echoed Obama's sentiment. "It worked," the statement said of stimulus and other measures taken by the world leaders. (See Obama's Q&A at left.)
"Pittsburgh was a perfect venue for this work," Obama said of the one-time despairing Rust Belt city. "This community has known its share of hard times. It picked itself up and dusted itself off. It serves as a model for turning the page to a 21st century."
Obama brushed off demonstrations in the city. He said they were mild compared with some in the past at international gatherings.
"I fundamentally disagree with their view that the free market is the source of all ills," he said. "Many of the protests are just directed generically at capitalism. ... One of the great things about the United States is you can speak your mind."
Obama said that tough new financial regulations backed by the G-20 summit would help avoid another economic crisis.
He also said that G-20 leaders would spare no effort to reach a global warming agreement at an international gathering later this year in Copenhagen. Summit leaders agreed to a bid by Obama to reduce government subsidies for fossil fuels such as oil and coal that contribute to global warming. He said if fully implemented, the move would phase out $300 billion in global subsidies.
"All nations have a responsibility to face this challenge," he said.
Click Here for Energy and Precious Metals Prices
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f3fdf1b6b2301d0fc44908461772e4d6 | https://www.cnbc.com/2009/09/25/off-to-a-rocky-start.html | Off to a Rocky Start | Off to a Rocky Start
S&P 500 futures drop about 6 points as August durable good orders were well below expectations: down 2.4 percent vs. consensus of up 0.4 percent.
The dollar rallied, as it did yesterday on the disappointing existing home sales report.
Elsewhere:
1) KB Home down 5 percent despite posting a narrower-than-expected Q3 loss as better margins and smaller writedowns. The homebuilder's revenues fell 33 percent as home deliveries fell 20 percent and average prices declined 15 percent. However, new orders soared 62 percent from the year-ago quarter, but were down 27 percent sequentially from the prior quarter.
Weighing on the shares is CEO Jeff Mezger's cautious comments: "it will likely be some time before we see meaningful improvement in the economic conditions that are essential to our industry's future growth."
2) Sara Lee rises 7 percent pre-open after Unilever agreed to buy its soap and personal care units for $1.9 billion dollars. The acquisition allows Unilever to diversify its portfolio of consumer product brands, while the deal will help Sara Lee repurchase $1 billion in stock and "invest for growth" in core businesses. The companies expect the deal to close next year.
3) Another IPO: The busy week for IPOs continues today. Shanda Games (GAME) priced its Nasdaq-listed shares at $12.50 - at the high end of the previously announced range of $10.50-$12.50. The Chinese online video game operator raised $1 billion and becomes the biggest IPO in the U.S. this year.
4) We're growing, but not as much as you wanted. Hewlett Packard down 1 percent pre-open as CEO Mark Hurd said the magic words: "We expect the IT industry to return to growth in 2010 and believe that HP will outpace the market," but their guidance was not as strong as expected. Diluted EPS in the range of $4.20 to $4.30 was near analyst estimates of $4.23, while revenue of approximately $117.0 billion to $118.0 billion is below consensus of $118 billion.
5) Airlines trading up about 2 percent pre-open as UBS upgrades airlines including AMR , Continental, US Air, with United its top pick. UBS says that "Thanks to the recent flurry of capital raises the balance sheets of several of US airlines will be flush with new cash."
6) Goldman Sachs upgrades refining sectorm including Holly, Occidental and Sunoco.
7) The two-day decline in stocks (less than 2 percent on the S&P 500), has some again wondering about the long-sought correction. Bears point out that we have moved over 50 percent since the March lows and are due for a correction, but Laszlo Birinyi (quoted in Morningstar) notes that there is little evidence for an imminent correction: "Give me the evidence...in 1982 we went 424 days before we had a correction. In 2000, we went seven years before we had a 10% correction. In 2002, we went three or four years."
8) Short interest continues to decrease. Traders have bitterly complained that shorting the market has been a recipe for disaster in the past several months; many have told me they have been shorting much less.
We continue to get evidence that shorting is indeed down. From August 31st to September 15th, the total amount of securities on the S&P 500 sold short dropped by 7.3 percent.
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552feb5531226a615246c44a1ac7ac13 | https://www.cnbc.com/2009/09/25/pops-drops-aig-general-mills.html | Following are the week’s biggest winners and losers. Find out why shares of AIG and General Mills popped while Dell and Freeport-McMoRan dropped.
POPS (stocks that jumped higher)AIG (AIG) popped 10%. The ‘dash for trash’ continued on hopes the government might restructure terms of this insurance giant’s bailout. - I don't see anything fundamental here and I'd stay away, counsels Karen Finerman.
VIDEO0:0000:00Stock Pops & Drops
U.S. Natural Gas Fund (UNG) popped 3%. This ETF that tracks the price of nat gas was bid higher on speculation parts of the nation could see a colder than normal fall. - I also think nat gas is heading higher, speculates Joe Terranova.
General Mills (GIS) popped 5%. The maker of Cheerios said profits jumped 51% in the second quarter and the company increased its full year earnings forecast. - I like this company for its gluten free cereals, says Steve Grasso.
DROPS (stocks that slid lower)
Dell (DELL) dropped 8%. Investors didn’t like hearing that Dell paid a 67% premium for its $3.9 billion acquisition of Perot Systems. - I think Dell is a buy at $14.25, says Guy Adami.
Moody's (MCO) dropped 20%. Hearings into whether the company knowingly issued incorrect ratings were postponed until next week after Republicans asked for more time to review a whistleblower's complaint. - I have to wonder what's left of their franchise, says Karen Finerman.
Freeport-McMoRan (FCX) dropped 4%. Investors clobbered the miner as the price of metals retreated this week. - I would not sell it short, counsels Joe Terranova.
UnitedHealth (UNH) dropped 11%. Nervous investors sold-off health care stocks as the Senate Finance Cmte debated reform. - I'd just stay away, says Steve Grasso.
Abercrombie & Fitch (ANF) dropped 8%. Cowen & Co downgraded the teen retailer to ‘underperform’ from ‘neutral’ citing weakness in the sector. - I think the stock trades down to $28.50, says Guy Adami.
______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! If you'd prefer to make a comment but not have it published on our website send your e-mail to .
Trader disclosure: On Sept. 25th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (BTU), (GS), (INTC), (NUE), (MSFT); Finerman's Firm And Finerman Own (BAC) Preferred Shares, Finerman Owns (BAC); Finerma'ns Firm Owns (MSFT), (TGT); Finerman's Firm And Finerman Own (WFC) Preferred Shares; Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM), (UNG), (USO); Grasso Owns (AAPL), (ABK), (ASTM), (BAC), (C), (COST), (CSCO), (PFE), (PRST), (V), (WMT), (FAZ); Terranova Owns (F)GE Is The Parent Company Of CNBC
For Steve GrassoStuart Frankel & Co. Or Grasso's Partners Owns (ACS)Stuart Frankel & Co. Or Grasso's Partners Owns (CUBA)Stuart Frankel & Co. Or Grasso's Partners Owns (GERN)Stuart Frankel & Co. Or Grasso's Partners Owns (HSPO)Stuart Frankel & Co. Or Grasso's Partners Owns (MSFT)Stuart Frankel & Co. Or Grasso's Partners Owns (NWS.A)Stuart Frankel & Co. Or Grasso's Partners Owns (NXST)Stuart Frankel & Co. Or Grasso's Partners Owns (NYX)Stuart Frankel & Co. Or Grasso's Partners Owns (PDE)Stuart Frankel & Co. Or Grasso's Partners Owns (PFE)Stuart Frankel & Co. Or Grasso's Partners Owns (PRST)Stuart Frankel & Co. Or Grasso's Partners Owns (RDC)Stuart Frankel & Co. Or Grasso's Partners Owns (ROK)Stuart Frankel & Co. Or Grasso's Partners Owns (STWD)Stuart Frankel & Co. Or Grasso's Partners Owns (TLM)Stuart Frankel & Co. Or Grasso's Partners Owns (VR)Stuart Frankel & Co. Or Grasso's Partners Owns (XOM)Stuart Frankel & Co. Or Grasso's Partners Owns (XRX)Stuart Frankel & Co. Or Grasso's Partners Owns (SDS)Stuart Frankel & Co. Or Grasso's Partners Is Short (QQQQ)Stuart Frankel & Co. Or Grasso's Partners Is Short (CL)For Joe TerranovaTerranova Works For (VRTS)Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIOVirtus Diversifier PHOLIO Owns (IGE)Virtus Diversifier PHOLIO Owns (DBC)Virtus Diversifier PHOLIO Owns (DBV)Virtus Investment Partners Owns More Than 1% Of (CAL)Virtus Investment Partners Owns More Than 1% Of (DLR)Virtus Investment Partners Owns More Than 1% Of (EXR)Virtus Investment Partners Owns More Than 1% Of (IGE)Virtus Investment Partners Owns More Than 1% Of (DBV)Virtus Investment Partners Owns More Than 1% Of (SKT)Virtus Investment Partners Owns More Than 1% Of (TNB)Virtus Investment Partners Owns More Than 1% Of (UA)Virtus Investment Partners Owns More Than 1% Of (CLB)
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71b45555ccc269bc0d6e99b4fc28f343 | https://www.cnbc.com/2009/09/25/quarter-month-end-preview-winners-and-losers.html | Quarter & Month End Preview: Winners and Losers | Quarter & Month End Preview: Winners and Losers
As we approach another quarter and month end, with just four days to go, the Dow is on track for its best third quarter since the 1939, the S&P is on course for its biggest 3Q gains since 1970, and the Nasdaq Composite is having its best Q3 since 1997, based on September 24 closing levels. Will the markets continue to hold on to gains or sell off by the end of the year?
Here is a preview of how the major indexes stack up versus prior quarters, months, and years. Also see below for Top 10 winning & losing stocks for the quarter so far.
Q3 2009:-The Dow is currently up 1260.44 points or 14.92% for the quarter-The NASDAQ Composite is currently up 272.57 points or 14.85% for the quarter-The S&P 500 is currently up 131.46 points or 14.3% for the quarter
The Dow is on track for its best quarter since Q4 1998 when it gained 17.1%, its biggest Q3 gain since 1939 when it gained 14.95%The S&P is on track for its best quarter since Q2 2009 when it gained 15.22%, its biggest Q3 gain since 1970 when it gained 15.8%The Nasdaq is on track for its best quarter since Q2 2009 when it gained 20.1%, its biggest Q3 gain since 1997 when it gained 16.89%The last time all three indexes were concurrently up by 14% or more for a quarter was in Q4 1998, when the Dow, S&P, and Nasdaq gained 17%, 20.9%, & 29.4% respectively
September 2009:September ranks as the worst month historically on average for all three US major Indexes, with Dow, S&P and Nasdaq Composite posting on average a loss of -1.2%, -1.3%, and -1.04%, respectively:
-The Dow is currently up 211.16 points or 2.22% for the month-The NASDAQ Composite is currently up 98.55 points or 4.91% for the month-The S&P 500 is currently up 30.16 points or 2.96% for the month
The Dow is on track for its best September since 2007 when it gained 4.03%The S&P is on track for its best September since 2007 when it gained 3.58%The Nasdaq Composite is on track for its best September since 1998 when it gained 12.98%
Calendar Year 2009:As of September 24 closing prices the Dow, S&P, and Nasdaq are up 10.6%, 16.33%, and 33.64% year to date:
- The Dow is on track for its biggest yearly gain since 2006 when it gained 16.3%- The S&P is on track for its biggest yearly gain since 2003 when it gained 26.38%- The Nasdaq Composite is on track for its biggest yearly gain since 2003 when it gained 50%
**From March lows (3/09/09):- The Dow is up 3160.39 points or 48.3% from its March low close of 6547.05 - The S&P is up 374.25 points or 55.32% from its March low close of 676.53- The Nasdaq Composite is up 838.97 points or 66% from its March low close of 1268.64
Contine on to the next page for the Top 10 and Bottom 10 stocks QTD in each of the major indices:
Top 10 Leading/Bottom stocks in the S&P for the third quarter so far are:
Top 10 Leading/Bottom stocks in the Dow for the third quarter so far are:
Top 10 Leading/Bottom stocks in the Nasdaq100 for the third quarter so far are:
Send comments to: bythenumbers@cnbc.com
bythenumbers.cnbc.com
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e89c7d5c3bc7c608fceb5c07d28910b1 | https://www.cnbc.com/2009/09/25/rb-singer-usher-digital-tech-in-music-was-inevitable.html | R&B Singer Usher: Digital Tech in Music Was Inevitable | R&B Singer Usher: Digital Tech in Music Was Inevitable
VIDEO0:0000:00Usher at the CGI
The music industry would be in a lot less pain if it had embraced the inevitability of digital technology instead of trying to fight it, R&B singer Usher Raymond told CNBC at the Clinton Global Initiative Thursday.
While at the conference, Raymond also pledged $1 million to his non-profit organization Powered by Service, which targets youth in underpriviliged communities to participate in service projects.
"The reality is—and it's a harsh reality—that everybody might not necessarily be the star, but there's so many other alternatives, there's so many other directions in life," Usher told CNBC at the Clinton Global Initiative. "If nothing, you leave these kids motivated to do something productive."
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aa32ae9d56d28862fc83862fcdd07274 | https://www.cnbc.com/2009/09/25/roginsky-too-big-to-fail-rather-than-executive-pay-is-the-real-problem.html | Roginsky: Too Big To Fail, Rather Than Executive Pay, Is The Real Problem | Roginsky: Too Big To Fail, Rather Than Executive Pay, Is The Real Problem
The subject of executive pay, which has dominated conversations on both sides of the Atlantic, takes center stage once again as the . Yet addressing the subject of executive pay apart from the even thornier issue of the “too big to fail” phenomenon does a disservice both to the constituents these G-20 leaders seek to protect and to the executives whose pay they want to regulate.
The Crisis: 1 Year Later - A CNBC Special Report - See Complete Coverage
The events of the past year should have put an end once and for all to the misguided notion that government and Wall Street are not inextricably interconnected.
No less a Master of the Universe than Hank Paulson determined that government intervention was necessary in order to save our financial system. The ostensible reason for the bailout was that certain institutions, whether investment banks, commercial banks or large insurers, were simply too big to fail.
That is the reason executive pay has become a topic of discussion for government officials, who in a purely market driven system should never be involved in setting the pay of private corporate executives. The events of the past year, however, have exposed the fact that some companies have every reason to expect that taxpayers will continue to backstop self-destructive decisions. Today, whether either side likes it or not, Adam Smith’s invisible hand is often very visibly nudged along by government officials sitting 200 miles away from Wall Street.
On CNBC.com now:
Best American CEOs of All TimePortfolio's Worst American CEOs of All Time
Despite the overhyped cries of socialism emanating from some sections of the punditocracy today, few elected officials are happy that our government has gotten into the financial services business. Though the financial markets have begun to recover, there is no guarantee that our system is out of the woods yet. Just this week, Tim Geithner refused to rule out future bailouts of companies that our government deems too big to fail. As it is, taxpayers will be the not-so-proud stakeholders in Citibank , AIG and other large firms for many years to come.
These problems will persist as long as there is not a drastic regulatory overhaul that prevents firms from growing so large that government has to intervene in order to save them. Those who deploy lobbyists to stop any financial regulation essentially expect a system where they roll the dice, collect bonuses paid on short term gains and leave taxpayers holding the bag in the event that something goes wrong. Their repulsion at greater regulation would have been appropriate if they never received a dime of taxpayer money or posed a systemic risk to themselves and to those around them. At this stage of the game, however, this attitude is destructive not just to taxpayers, but to the very financial system from which these executives profit.
House Financial Services Committee Chairman Barney Frankhas pledged to enact “death panels” for institutions that are deemed too big to fail and which therefore pose a systemic risk to our financial system. Virtually every single power player on Wall Street and their cadre of lobbyists will be arrayed against him. The shortsightedness of their position is breathtaking only because it is so self-destructive. The longer too big to fail institutions exist, the more government and other regulators will insist on the right to monitor compensation and other practices that are best left to company boards and shareholders.
Rep. Frank Releases House Version of Obama's Consumer Watchdog Bill
Wall Street and its lobbyists would be better off recognizing that if they want to be masters of their own domain, sometimes it really does make sense to burn the village in order to save it. The faster too big to fail institutions are broken up, the sooner private businesses can get back to privately determining how they want to compensate those who determine whether they sink or swim.
Read All The Guest Blogs on CNBC.com
_________________________Julie Roginsky is a CNBC contributor who has extensive experience in government, politics and public relations on both the federal and state levels including serving as the Washington communications director for former Senator Jon Corzine.
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ff75c3e5fc04a28cd016610bd6e71c30 | https://www.cnbc.com/2009/09/25/secs-rating-agency-reform-may-aid-insider-trading.html | SEC's Rating Agency Reform May Aid Insider Trading | SEC's Rating Agency Reform May Aid Insider Trading
The Securities and Exchange Commission spends a lot of time and money trying to discover insider trading in stocks. But when it comes to structured financial products — the funny securities that were at the heart of the financial crisis — it has just adopted a proposal that will facilitate such trading.
It did that in the name of reforming the credit rating agency system. The new rule shows the dangers of trying to solve one problem without thinking about others.
At the heart of the problem is that it is legal for companies and other issuers of securities to give confidential information to rating agencies.
Back before the crisis, the fact the agencies had access to such information served to enhance the respect given to their opinions.
Now we know that the major rating agencies — Standard & Poor’s, Moody’s and Fitch — disgraced themselves in rating structured finance products. They relied on bad assumptions, and in some cases may have been lied to by issuers. Their models turned out to be spectacularly wrong.
A lot of people think a root cause of the problem was the conflict of interest created by the fact the agencies were paid by the creators of those products, and therefore were dependent on their good will for additional business.
But regulators are unwilling to outlaw the old system, in part because that would leave investors without access to ratings unless they paid for them. So the solution chosen by the S.E.C. is to encourage other rating agencies to rate the products.
The rule adopted last week says that whatever information is given to the agency hired by the issuer to rate the structured finance security must be given to other rating agencies, including those that provide analyses only to investors who pay for them.
The result will be that analysts for the other rating agencies, like Egan-Jones Ratings, will have access to information not available to the general public, and their analyses will go only to clients. Those clients will have the benefit of nonpublic information, or at least of their agent’s analysis of what it means.
The answer is obvious: Cut off the inside information. The rating agencies now have an exemption from the S.E.C.’s Regulation FD, for fair disclosure. If that exemption were removed, the level playing field would be restored. And the respect that ratings now get from people who assume the raters know more than they do would fade away.
There could be temporary exceptions, to allow companies to tell the raters of plans not yet announced — like a takeover — so that the rating agencies could issue their opinions as soon as the announcement is made. But when they did issue the ratings, whatever information the agencies were given would also have to be made public.
Instead of ending the exemption for rating agencies, the S.E.C. broadened it to include agencies that are newly able to demand the information.
“The commission believes it is important to foster competition among rating agencies to improve the quality of ratings services, particularly among those providing ratings of structured finance products, and the recently approved rule change is designed to advance that goal,” said Meredith B. Cross, director of the commission’s division of corporation finance. “We are also mindful of concerns about potential misuse of confidential information, and the new rule includes important safeguards to address those concerns.”
The safeguards include getting the analysts to promise not to disclose the inside information. But the commission did not, and could not, demand that the analysts not use the information in assessing the security. That is the whole point of the new rule.
One argument against making some of that information public is one of confidentiality. The owner of an office building whose mortgage was included in a mortgage-backed security would not like competitors to see his rent roll. But summary data could be developed, and, in any case, public companies have been able to live — and compete aggressively — while making the considerable disclosures required by securities laws.
Sean Egan, managing director of Egan-Jones Ratings, is likely to benefit from the new rule. Not only would he be able to get the information to rate whatever he wanted to rate, but he would have an advantage over other securities analysis firms because he would have access to information they did not have.
It is, he told me this week, an advantage he does not want. “My argument is that there should be no carve-out for ratings firms,” he said. “Why should they be given privileged information?”
He speculated on what would happen if, say, Goldman Sachs asked that its analysts be allowed to get inside information from companies that was not made available to analysts from Merrill Lynch or Morgan Stanley. The S.E.C. would laugh at such a request.
The new rule letting other rating agencies get the information does not apply to corporate and municipal securities, only to structured finance. While it is certainly true that the biggest ratings disasters came in structured finance, there have been some ratings failures elsewhere. It would make more sense to open all the markets, and let everyone have access to the same information.
Rating agencies came to enjoy privileged status for a variety of reasons. They seemed to be almost like utilities, and regulators came to rely on ratings to provide easy comparability in a complex world. Bank regulators allowed banks to carry less capital against AAA-rated securities. The S.E.C. specified that most assets in money market funds had to be held in highly rated securities.
The S.E.C. has repealed some of those rules, and is considering whether to part with others. Bank regulators are working on capital rules. But there remains great demand for that simplicity.
So long as ratings were more or less freely disseminated to all, letting the agencies have access to information not available to others seemed to do no harm. In fact, it may have done harm by providing added credibility to ratings issued by agencies that, no matter how good their intentions, suffered from a fundamental conflict of interest in that they could get the information only if the company being rated chose to hire them.
But there is, in reality, little difference between what a credit rating analyst should do and what a securities analyst should do, particularly for debt securities. There are thousands of securities analysts, many of them seeking to sell their services to institutional investors. It makes no sense to give Egan-Jones, or any other analysis firm, a competitive advantage simply because it chooses to register as a credit rating agency.
There would be another advantage to a rule that said rating agencies got the same information as other analysts. Money managers who lost a lot of their clients’ money in collateralized debt obligations and other funny pieces of paper have been able to blame the rating agencies for misleading them, and thus try to escape responsibility.
In fact, those managers had the obligation to understand what they were buying. The management fees they were collecting should have covered more work than checking out what Moody’s had to say.
In a world where it was clear that Standard & Poor’s had the same information as everyone else, it would be a lot easier for the rest of us to weigh the wisdom of a given rating. The prestige of a Fitch rating would depend on its reputation for superior insight and analysis, not on its access to confidential information.
Floyd Norris comments on finance and economics in his blog at nytimes.com/norris.
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eef9d6ec2d61140ba622d4d6b8754428 | https://www.cnbc.com/2009/09/25/select-medical-ipo-prices-below-estimated-range.html | Select Medical IPO Prices Below Estimated Range | Select Medical IPO Prices Below Estimated Range
Hospital operator Select Medical Holding's initial public offering priced at $10 a share, below the estimated range, and raised $300 million, according to an underwriter.
Cancer TreatmentAP
Select Medical, which operates 87 long term acute care hospitals and 948 outpatient rehabilitation clinics in the United States, cut the number of shares sold to 30 million, an underwriter said.
The company had previously estimated it would sell 33.3 million shares for between $11 and $13. Select Medical is one of the few IPOs this year to miss the estimate range.
The IPO was managed by Goldman Sachs & Co, Morgan Stanley, Bank of America Merrill Lynch and JP Morgan. The underwriters have the option to purchase up to another 5 million shares.
Select Medical said in its most recent prospectus it planned to use most of the money to pay down debt. Revenue for the Pennsylvania company rose 8.1 percent to $2.1 billion in 2008. Net income was $31.8 million.
Select Medical's largest stakeholder is private equity firm Welsh Carson Anderson & Stowe.
Select Medical shares are scheduled to begin trading on Friday on the New York Stock Exchange under the symbol "SEM."
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d9862009d16fa18e22dd47fd5f0cd195 | https://www.cnbc.com/2009/09/25/sports-radio-web-site-making-waves.html | Sports Radio Web Site Making Waves | Sports Radio Web Site Making Waves
Sports Radio InterviewsSource: sportsradiointerviews.com
When Cowboys great Tony Dorsett made fiery comments about Tony Romo, I saw it first on a small independent Web site.
When Minnesota Vikings great Fran Tarkenton bashed Brett Favre, I saw it first on a small independent Web site.
How did this site get the scoop? Because its founder was listening when no one else was.
For years, sports radio interviews have broken news and created controversy but because journalists weren’t listening or were never provided with a transcript, the interviews over the airwaves didn’t make it into print. That meant that whatever was said fell into a black hole.
Enter sports public relations maven Jimmy Shapiro. One of Shapiro’s specialties is booking sports radio interviews for book tours and endorsement campaigns.
Most Beautiful Ferraris of All Time - In Pictures
Being a former sports radio host and program director, Shapiro noticed that many great radio interviews were being posted on local radio Web sites, but there wasn’t a Web site that aggregated all these interviews and brought them out of their local markets.
This meant that unless something was said on a national show like ESPN Radio’s “Mike and Mike,” the world didn’t know if something juicy was said in a local market.
So in January, Shapiro created SportsRadioInterviews.com. The site gathers 10 to 15 of the best radio interviews of the day from around the country.
When ESPN aired Dorsett’s comments about Romo last night, I had already heard it because Shapiro’s site had it up on Tuesday afternoon. The Tarkenton comments – also linked by Shapiro’s site first.
“The sports radio stations obviously love us because we put some of their great interviews out there that could have just been forgotten about,” Shapiro said.
Despite the great execution of his unique site, there are two obstacles that seem to be in Shapiro’s way. The first obstacle is getting credit.
Shapiro often discovers these interviews that happen on local radio stations, but when ESPN or the Associated Press quote from them they just give the stations the credit. As a result, Shapiro’s site doesn’t get the buzz it should get from unearthing the spot.
“When it came out that Chad Ochocinco said he’d tweet during games, he said it on KGOW, which is like the fourth sports radio station in Houston,” Shapiro said. “If I didn’t put it out there, I don’t know if anyone would have seen it.”
KGOW, of course, got all the credit not Shapiro’s site, which he says has done about 550,000 unique hits in eight months.
Secondly, Shapiro admits his resources are limited. He’s busy doing his day job as a sports PR man and doesn’t have the time he ultimately needs to take it to the next level.
“This site has cost me money,” Shapiro said. “Ultimately I’d like to team up with a site so that this could be the best it could be.”
If ESPN or Yahoo wants to get the news happening on sports radio stations across the country days before everyone else has it, Shapiro’s site might be the next great acquisition.
Questions? Comments? SportsBiz@cnbc.com
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9cd746bc791a81335bcae7b9e6a15322 | https://www.cnbc.com/2009/09/25/the-financial-crisis-this-dayone-year-ago-sept-25-2008.html | The Financial Crisis: This Day—One Year Ago, Sept. 25, 2008 | The Financial Crisis: This Day—One Year Ago, Sept. 25, 2008
The crisis goes prime time.
In a nationally televised address Thursday night, President George W. Bush urges Congress to quickly pass a $700-billion rescue package for the US financial system, after key Congressional leaders indicate they've reached an agreement, in principle, on the major parts of the plan.
This Day 1 Year Ago - A CNBC Special Report - See Complete Coverage
Meanwhile, regulators are trying to quickly broker a deal for Washington Mutual, The New York Times reports. And The Wall Street Journal reports that the troubled savings-and-loan has approached private equity firms, including Carlyle and Blackstone, about a takeover. WaMu came under further pressure on Wednesday when Standard & Poor's slashed its credit rating deep into "junk" territory.
The Journal says Spain's Banco Santander has withdrawn as a suitor, and Canada's Toronto-Dominion Bank is only mildly interested. Citigroup, JPMorgan Chase and Wells Fargo are all reluctant to absorb WaMu's loans after conducting due diligence.
Charlie Gasparino reports that hedge fund executives claim several Wall Street firms are now marketing a new hedging product that would allow them to "short" stocks—even those on the banned short sale list.
What You Were Reading:
What the Pros Say: Buy a Mattress!Wall Street Firms Provide Way Around Short-Sell BanShould Buffett Negotiate the Bailout Deal?
On the credit front, Freddie Mac reports that 30-year, fixed-rate mortgages rose to an average interest rate of 6.09 percent, up sharply from the 5.78 percent of a week ago; rates had fallen to a multi-month low in the wake of the government's takeover of Freddie Mac and Fannie Mae earlier in the month.
The Crisis: 1 Year Later - A CNBC Special Report - See Complete Coverage
General Electric (parent of CNBC) warns that turmoil in global credit markets could drive its earnings down as much as 12 percent. It's capital finance unit expects "to see higher losses and loss provisions and lower gains as the economy evolves," says Chairman and Chief Executive Jeff Immelt.
Ireland's economy is now in a recession, the country's Central Statistics Office says Thursday. The Emerald Isle is the first of the 15 Eurozone countries to fall in the current turmoil. The European Commission predicts that Germany, Spain and Britain will soon follow.
What the Experts Were Saying:
Bond king Bill Gross says the proposed $700 billion bailout for financial firms could yield a profit of at least 7 to 8 percent and benefit taxpayers.
VIDEO3:5703:57S&P Could Rally to 1,260
The S&P 500 will likely climb back to around 1,260 after the bailout package solidifies, despite current bearish signs in chart patterns, Clive Corcoran of Tradewithform.com says.
VIDEO0:0000:00Immelt on GE's Guidance, Strategy
GE Chairman & CEO Jeffrey Immelt discusses the company's guidance and strategy moving forward with the CNBC news team.
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19ffbf305019259b015b2942a3fac637 | https://www.cnbc.com/2009/09/25/the-financial-crisis-this-dayone-year-ago-sept-27-2008.html | The Financial Crisis: This Day—One Year Ago, Sept. 27, 2008 | The Financial Crisis: This Day—One Year Ago, Sept. 27, 2008
Bailout politics arise.
Saturday seems more sedate than it has in weeks, but it's a false calm, as Washington scrambles to find common ground on a financial rescue plan.
This Day 1 Year Ago - A CNBC Special Report - See Complete Coverage
House Democrats issue a strongly worded memo denigrating an alternative bailout proposal from House Republicans. The memo says the GOP plan would amount to "a true bailout of Wall Street fat cats," reports Steve Liesman.
But lawmakers continue to huddle with Treasury Secretary Hank Paulson through the evening, seeking to nail down an agreement to create a massive government fund to buy up distressed debt from financial institutions staggered by failed mortgages.
What You Were Reading:
Memo From Democrats Blasts House GOP PlanKudlow: A Paulson-Cantor Plan Is a Win-Win'Fast Money' Traders: What's Coming Next?
"I'm convinced that by Sunday we will have an agreement that people can understand on this bill," says Rep. Barney Frank (D-Mass.), chairman of the powerful House Financial Services Committee.
By midnight Saturday, a deal is reached.
The Crisis: 1 Year Later - A CNBC Special Report - See Complete Coverage
House Republicans, who had worried that the $700-billion program would put taxpayers on the hook, win a provision that will set up an insurance program for mortgage-backed securities.
In addition, the US government will get stock warrants, in theory allowing for a return on its investment as bailed-out companies recover.
The deal looks done but legislators await full details on paper.
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2a44362f27e9fc51ee3c174d3563ccca | https://www.cnbc.com/2009/09/25/us-weighing-fresh-round-of-bailouts-for-smaller-banks.html | US Weighing Fresh Round of Bailouts for Smaller Banks | US Weighing Fresh Round of Bailouts for Smaller Banks
Treasury officials and regulators are weighing a fresh round of bailouts for banks that were deemed too small or too risky to qualify for earlier aid.
CNBC.com
Representatives from the Treasury Department, Federal Deposit Insurance Corp. and House Financial Services Committee discussed the plan by phone Thursday, said California Bankers Association Chairman Dan Doyle, who was on the call.
Small community banks are struggling as commercial real estate and other loans go sour. Officials and industry representatives are considering how to get money to those banks, Doyle said Friday.
Other banking industry leaders confirmed that the conversations are taking place. They did not know when Treasury might announce the plan. Spokesmen for Treasury and the FDIC did not respond to requests for comment.
The money could go to banks whose ratings by regulators made them too weak to qualify for earlier rounds of funding. It may be limited to banks with less than $5 billion on their books.
The banks could be required to raise matching money in the private markets, Doyle and others said.
"The rules were pretty restrictive," he said. "They want to give another opportunity for some of the community banks."
CNBC Slideshows:
World's Best Banks 2009World's Safest Banks
As with earlier capital injections, banks eventually will have to repay Treasury with interest.
The move could prevent some small bank failures, which would ease pressure on the FDIC's dwindling fund that insures bank deposits.
House Financial Services Committee Chairman Barney Frank, D-Mass., has been "very, very supportive" of extending the program to reach more community banks, said committee spokesman Steve Adamske.
Adamske said Frank had talked with Treasury Secretary Timothy Geithner about the plan.
"We're very concerned about the community banking sector," Adamske said. "We await Treasury's decision."
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Adamske said one challenge is that the program was designed for larger banks that are publicly traded.
Many community banks are privately owned or held by small groups of investors, making it more complicated for them to participate.
Rep. Maxine Waters, D-Calif., at a forum Friday, told Federal Reserve Chairman Ben Bernanke that she worries about the ability of small and minority-owned banks to access capital.
Bernanke responded that the "the best source" was the government's $700 billion bailout fund. He also said the government was looking at expanding the program to make it available "very broadly for access." He offered no details.
Small banks have until Nov. 9 to apply for the money.
If more banks are deemed eligible, the deadline could be pushed back as the application process can take months to complete. The plan could prevent officials from winding down a key bailout program. The $700 billion fund is set to expire on Dec. 31.
Republican lawmakers and some Democrats want Treasury to stop lending now that the financial markets have stabilized.
Frank said this week that he supports extending the program beyond the end of the year. Geithner has trumpeted the end of some emergency financial programs as signs the economy is recovering.
The department expects to see tens of billions of dollars in additional repayments to the fund in coming months. But Doyle said FDIC officials still expect up to 150 bank failures this year. So far, 94 banks have been closed. That's the most since 1992, during the savings-and-loan crisis.
Officials are scrambling for a way to add money to the deposit insurance fund, and may levy a second extra fee on the banking industry.
Officials have said the capital injections from Treasury are intended for healthy banks not at risk of failing.
Lobbyists for small banks say the rules have been too restrictive, discriminating against smaller institutions that are likely to succeed.
"We believe the criteria to determine viability have been too strict," said Karen Thomas, the top lobbyist with the Independent Community Bankers of America.
Banks that want government money should be required to raise some private capital to prove that the market believes they will succeed, she added.
The program would help "avoid any preventable bank failures," bolster the FDIC's deposit insurance fund and help small banks "weather the storm," Thomas said.
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4baf62026820c736ef24b08c6324a8d4 | https://www.cnbc.com/2009/09/25/warren-buffett-saves-america-in-ralph-naders-new-nonnovel.html | Buffett Watch | Buffett Watch
Ralph Nader
A fictional version of Warren Buffett assembles a "cadre" of "super-rich" billionaires to "fix" the U.S. government and return "power to the people," in a new book by political candidate and activist Ralph Nader.
"Only the Super-Rich Can Save Us!" has just been published by Seven Stories Press.
Nader doesn't call his book a novel. He describes it as "a fictional vision that could become a new reality." He's also called it a "practical utopia."
In Nader's alternate reality, Warren Buffett is inspired to action by the government's inability to adequately respond to Hurricane Katrina in 2005. "He beheld in disbelief the paralysis of local, state, and federal authorities unable to commence basic operations of rescue and sustenance, not just in New Orleans, but in towns and villages all along the Gulf Coast. . . He knew exactly what he had to do. . ."
To quote the publisher's news release, Buffett "invites sixteen other super-rich individuals around a table to save America... (They) work together to unionize Wal-Mart, rebuild New Orleans with a speed and efficiency FEMA could only dream about, advance clean and transparent elections, effectively clean up the environment, and otherwise galvanize Congress and the corporate behemoths to be accountable to the people."
In an extended excerpt from the book posted by the publisher, the fictional Buffett tells a news conference:
"Our country is sinking deeper and deeper into troubles that are sapping its collective spirit and blinding it to the solutions that are ready at hand. From my observations of the rarefied world of business leaders, I’ve concluded that the vast majority are not leaders except for themselves. A society rots like a fish—from the head down. I want no part of that lucrative narcissism, that abdication from the realities that are blighting our country and the world. I am here to do my part, my duty, in persuading some of my very wealthy peers to live by the words of Alfred North Whitehead: ‘A great society is a society in which its men of business think greatly of their functions.’"
In the interviews he's been doing in recent days to promote the book, Nader says he's reached out to the real versions of the people in his book, telling the New Yorker he's made contact with "about half of his characters." Many of them have responded positively. So far, I haven't seen any mention of Buffett's reaction, if any.
And while the real Buffett is not as much of a political activist as his fictional counterpart, he has publicly supported Hillary Clinton and Barack Obama for president and called on Congress to raise taxes on the "super-rich."
He also brought together some of the world's richest people last May in New York to informally discuss how they could make philanthropy more effective. We assume, however, that no one was wearing a superhero costume.
Current Berkshire stock prices:
Class A:
Class B:
For more Buffett Watch updates .
Email comments to buffettwatch@cnbc.com
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7beb06bbc060b8a64fa0741eb631576f | https://www.cnbc.com/2009/09/25/your-first-move-for-monday-september-28th.html | Here’s our Fast Money Final Trade. Our gang gives you Monday’s best trades, right now.
Guy Adami says “RIM will probably print $65 and I think you own it there.”
Karen Finerman suggests longTarget .
Joe Terranova recommends long Abbot Labs “which looks to be breaking out.”
Steve Grasso says, “Keep an eye on GE. Investors got too focused on GE Capital.”
VIDEO0:0000:00Fast Money Final Trades
Click here to see other Final Trade posts.
______________________________________________________Got something to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! Prefer to keep it between us? You can still send questions and comments to .
Trader disclosure: On Sept. 25th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (BTU), (GS), (INTC), (NUE), (MSFT); Finerman's Firm And Finerman Own (BAC) Preferred Shares, Finerman Owns (BAC); Finerma'ns Firm Owns (MSFT), (TGT); Finerman's Firm And Finerman Own (WFC) Preferred Shares; Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM), (UNG), (USO); Grasso Owns (AAPL), (ABK), (ASTM), (BAC), (C), (COST), (CSCO), (PFE), (PRST), (V), (WMT), (FAZ); Terranova Owns (F)GE Is The Parent Company Of CNBC
For Steve GrassoStuart Frankel & Co. Or Grasso's Partners Owns (ACS)Stuart Frankel & Co. Or Grasso's Partners Owns (CUBA)Stuart Frankel & Co. Or Grasso's Partners Owns (GERN)Stuart Frankel & Co. Or Grasso's Partners Owns (HSPO)Stuart Frankel & Co. Or Grasso's Partners Owns (MSFT)Stuart Frankel & Co. Or Grasso's Partners Owns (NWS.A)Stuart Frankel & Co. Or Grasso's Partners Owns (NXST)Stuart Frankel & Co. Or Grasso's Partners Owns (NYX)Stuart Frankel & Co. Or Grasso's Partners Owns (PDE)Stuart Frankel & Co. Or Grasso's Partners Owns (PFE)Stuart Frankel & Co. Or Grasso's Partners Owns (PRST)Stuart Frankel & Co. Or Grasso's Partners Owns (RDC)Stuart Frankel & Co. Or Grasso's Partners Owns (ROK)Stuart Frankel & Co. Or Grasso's Partners Owns (STWD)Stuart Frankel & Co. Or Grasso's Partners Owns (TLM)Stuart Frankel & Co. Or Grasso's Partners Owns (VR)Stuart Frankel & Co. Or Grasso's Partners Owns (XOM)Stuart Frankel & Co. Or Grasso's Partners Owns (XRX)Stuart Frankel & Co. Or Grasso's Partners Owns (SDS)Stuart Frankel & Co. Or Grasso's Partners Is Short (QQQQ)Stuart Frankel & Co. Or Grasso's Partners Is Short (CL)For Joe TerranovaTerranova Works For (VRTS)Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIOVirtus Diversifier PHOLIO Owns (IGE)Virtus Diversifier PHOLIO Owns (DBC)Virtus Diversifier PHOLIO Owns (DBV)Virtus Investment Partners Owns More Than 1% Of (CAL)Virtus Investment Partners Owns More Than 1% Of (DLR)Virtus Investment Partners Owns More Than 1% Of (EXR)Virtus Investment Partners Owns More Than 1% Of (IGE)Virtus Investment Partners Owns More Than 1% Of (DBV)Virtus Investment Partners Owns More Than 1% Of (SKT)Virtus Investment Partners Owns More Than 1% Of (TNB)Virtus Investment Partners Owns More Than 1% Of (UA)Virtus Investment Partners Owns More Than 1% Of (CLB)
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bf71acab3abf376902b6015cd0a51889 | https://www.cnbc.com/2009/09/27/yoshikami-china-is-not-the-only-emerging-market.html | Yoshikami: China is Not The Only Emerging Market! | Yoshikami: China is Not The Only Emerging Market!
Think emerging markets and everybody immediately focuses on China. Yes, it's a massive opportunity to be sure, but China is not alone in providing investment opportunities for forward thinking investors. There are others.
Trade
Malaysia, Indonesia and Thailand
In Asia, the changing political landscape in Malaysia has set the table for potentially strong foreign investment (likely a positive development for the Malaysian economy). Indonesia, with huge natural resources, shows great promise as a rising economic power. Thailand, despite political unrest, is attractively priced though instability does make this a higher risk strategy.
Video: Opportunities in IndonesiaVideo: Developed World Taking The Wind Out of Asia
India, South Korea
New leadership in India promises reforms that could spur growth. South Korea has shown strength as of late as consumers appear to be recovering from a pause in spending. Other tiger economies will benefit from future explosive China growth and these investment opportunities should not be overlooked.
Fast Money: Don't Get Hurt by Hot Emerging Markets
Latin America
Don't forget about Latin America. There is huge growth in the Brazilian economy as commodities increase in global importance. Natural resources demand will have positive effects not only for Brazil but also surrounding economies. Other countries in Latin America are candidates for investment as well as the entire region begins to gather economic momentum.
Explore!
As these economies grow, consumers will have more purchasing power driving further internal consumption expansion. This is the recipe for increases in equity returns.
Tread carefully when investing in emerging economies; the volatility can be high. But with valuations similar to more established developed markets and growth rates far greater, it does appear to be an attractively priced asset.
Consider moving in gradually and across economies as you increase your exposure to these future economic powerhouses. Hang in there when the short term swings turn against you and add to your position if volatility takes prices down; the right time horizon and perspective is critical.
Lastly, watch carefully the economic statistics to see if your thesis is playing out. Adjust as needed and be proactive. This is the way to successfully invest in the global landscape.
___________________
Michael A. Yoshikami, Ph.D., CFP®, is Founder, President, and Chief Investment Strategist of YCMNET Advisors, Inc., a registered investment advisory firm (www.ycmnet.com). He oversees all investment and research activities of YCMNET. He is a respected lecturer speaking frequently on market issues, tactical asset allocation, and investment strategy. Michael and YCMNET were ranked as one of the top investment 100 advisors in the United States for 2009 by Barrons. He appears regularly on CNBC and CNBC Asia and can be reached directly at m@ycmnet.com.
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d690fe08b3a8b42437dbda5d4180b836 | https://www.cnbc.com/2009/09/28/5-best-biotech-plays-now-analysts.html | 5 Best Biotech Plays Now: Analysts | 5 Best Biotech Plays Now: Analysts
Biotech companies continued their rally today, with the biotech index up more than 35 percent in the last three months.
VIDEO0:0000:00Biotech Rally: Still Time to Get In?
Eric Schmidt, biotech analyst at Cowen, and Joel Sendek, managing director and biotech analyst at Lazard Capital Markets, explained the force behind the comeback and the best stock plays for investors right now.
(See their picks and pans, below.)
“We found that the best time to invest was during the 'HillaryCare'" debate in the early 1990s, Sendek told CNBC. "And valuations haven’t gotten to the point since then until this year.”
“So we think it’s reasonable to invest across the board. Within the types of companies, I would argue for the smaller ones because I think there’s more upside.”
CNBC Investing Intelligence:
Bookmark: Track the 30 Key Health Care StocksS&P to Hit 1,200 in 3-6 Months: StrategistArt Cashin: Stocks Riding Jewish Holiday, Dollar, M&A
Sendek added that the smaller biotech firms are less likely to be affected by Washington’s health care reform discussions.
“When people don’t know anything other than there’s going to be reform, they sell first and ask questions later,” he said. “As we get details, it’s getting clearer that biotechs won’t be impacted as much.”
Schmidt said investors should look for good fundamental values, take into account the company’s future cash flows and buy those that are trading at discount to the market.
“Health care reform has kept a lot of investors at bay,” he said. “Whether health care reform happens or not, there’ll be money that comes back into biotech once it’s all decided.”
Schmidt’s Picks:
Biogen Idec
Alexion Pharmaceuticals
Schmidit’s Pans:
Celgene
Sendek’s Picks:
Dendreon
ViroPharma
Acorda Therapeutics
______________________________ Disclosure:
No immediate information was available for Schmidt or Sendek.
______________________________CNBC Slideshows:
The Biggest US Welfare States
______________________________
______________________________
Disclaimer
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ab91e0ff6912f12a23b19139a041507b | https://www.cnbc.com/2009/09/28/5-tech-stock-picks-from-top-analysts.html | 5 Tech Stock Picks from Top Analysts | 5 Tech Stock Picks from Top Analysts
Technology stocks were mostly higher on Monday with the Nasdaq outperforming the broader indexes. Rob Enderle, principal analyst at Enderle Group, and Brian Marshall, senior analyst at Broadpoint AmTech, shared their sector insights and stock picks.
VIDEO0:0000:00Wireless Wars: Where to Invest
“Right now, the consumer is feeling good about things,” Enderle told CNBC. “As the consumer gets more comfortable, they spend more money and as long as that trend continues to improve, we’re in good shape.”
Enderle said Research in Motion has been doing very well as it continues to focus on the business side with a consumer spin. In contrast, Apple is still mostly for consumers and picked up a little bit of corporate business on the side, he said.
CNBC Market Intelligence:
S&P to Hit 1,200 in 3-6 Months: StrategistOctober To Be ‘Cruel For Markets’: StrategistArt Cashin: Stocks Riding Jewish Holiday, Dollar, M&A
In the meantime, Marshall said he expects the iPhone maker to continue performing well.
“We still think there’s upside left… Apple’s going to have a great quarter,” he said. “Historically, December’s been one of the strongest periods for Apple and this year won’t be any different, driven by the ramp-up of China for the iPhone as well as the enterprise…We think it’s going to be a great next three months for Apple.”
Enderle Likes:
Cisco Systems
Mellanox Technologies
Marshall Likes:
Apple
Google
VMWare
______________________________
Disclosure:
No immediate information was available for Enderle or Marshall.
______________________________CNBC Slideshows:
Biggest Tech Blunders in the Last 25 Years
______________________________
______________________________
Disclaimer
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a772921d8a559f3f2cd6d6480beef548 | https://www.cnbc.com/2009/09/28/60-reasons-to-be-bullish-about-china-expert.html | 60 Reasons to be Bullish about China: Expert | 60 Reasons to be Bullish about China: Expert
On the 60th anniversary of the People's Republic of China, many strategists have been speculating that China's economy will continue its uptrend, making the nation the next superpower.
So how can investors benefit from trading this emerging nation and where are the best plays? Matt Comyns, CEO of JLM Pacific Epoch, shared his insights and explained his 60 reasons to be bullish about China.
Click to Read Comyns' Full List Here
"We believe that there's a lot of momentum in the market," Comyns told CNBC. "They had 30 awful years where they were suppressed and there was pent-up demand building. And 30 incredible years, especially in the last 10 when they entered the WTO."
VIDEO0:0000:0060 Reasons to be Bullish on China
“China has more than 100 cities with more than 1,000,000 people in [each],” he continued. “The story of the recovery has been in the second and the third-tier cities.”
Additionally, China is a green tech leader, said Comyns. China is spending $30 billion on green technology as part of its current stimulus plan. An example of a new policy recently unveiled is the “Golden Sun” initiative, which aims to achieve solar power generation by 2011.
Comyns said he likes Yingli Green Energy , one of the leading solar companies in China traded on U.S. markets.
More Market Intelligence:
Yoshikami: China is Not The Only Emerging Market!Art Cashin: Jewish Holiday, Dollar, M&A Driving Stocks
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______________________________
Disclaimer
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b48926a2e0de9b03c8c19ee548c9f2d6 | https://www.cnbc.com/2009/09/28/allen-stanford-back-in-jail-after-being-beaten-by-inmate.html | Allen Stanford Back in Jail After Being Beaten by Inmate | Allen Stanford Back in Jail After Being Beaten by Inmate
Allen Stanford, the alleged mastermind of a $7 billion fraud, is back in his jail cell after suffering a mild concussion, broken nose and two black eyes in a prison brawl last week, his lawyer said on Monday.
R. Allen Stanford
Stanford, 59, was injured in a fight on Thursday with a fellow inmate at the Joe Corley Detention Facility in Conroe, Texas, and was hospitalized over the weekend.
"I don't have any reason to believe that he was targeted in some way because of who he is," said Kent Schaffer, Stanford's court-appointed attorney. Schaffer said he had no details of the altercation, or who else was involved.
"He's in reasonably good spirits although he was feeling a lot of physical discomfort," Schaffer told Reuters. "He was trying to get rest yesterday afternoon after he returned to the jail."
Stanford has called conditions in the prison "intolerable" and has requested a transfer out of the facility, 40 miles north of Houston, where he has been held since his arrest in June.
He has denied allegations that he ran a Ponzi scheme targeting clients of his offshore bank in Antigua. He faces life in prison if convicted of all 21 criminal charges against him.
Last month, Stanford spent five days in the hospital undergoing heart tests.
Slideshow: A Rogue's Gallery of Financial Criminals
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55927a79e59184f017c31b2c030c1452 | https://www.cnbc.com/2009/09/28/art-cashin-jewish-holiday-dollar-ma-driving-stocks.html | Art Cashin: Jewish Holiday, Dollar, M&A Driving Stocks | Art Cashin: Jewish Holiday, Dollar, M&A Driving Stocks
Mergers and acquisitions, rising Japanese yen and the Judaic Day of Atonement: what do they mean for stocks? Art Cashin, director of floor operations at UBS Financial Services, offered CNBC his market insights.
VIDEO0:0000:00Trader Talk With Art Cashin
The S&P 500, Nasdaq and the Dow were each rising Monday morning — the latter up as much as 125 points.
Cashin said that upsurge may have been driven, in part, by historical patterns surrounding the Jewish Yom Kippur holiday on Monday.
"There's old Wall Street folklore that says, 'sell'em on Rosh Hashanah, buy'em back on Yom Kippur.' I don't know for sure, but it works 17 out of the 20 years that I've seen on the floor," Cashin mused.
Dow 30 Stocks — in Real TimeUS Dollar Index TodayOil, Gold, Natural Gas Prices Now
He said that the market may have been buoyed by the wave of dealmaking. But he noted that traders are watching the US dollar closely, especially in light of World Bank President Robert Zoellick's comments that America mustn't take for granted the greenback's status as the global reserve currency.
More CNBC Investor Intelligence:
'Fast Money' Trader: Watch for Oil 'Super-Spike'Warning: Dollar is 'New Peso'!How You Can Spot a Housing Turnaround
Cashin touched on "what happened last Wednesday," when all three indexes ended lower.
That "could have been critical — or it could've just been a speed bump and we lost a hubcap on it. We'll see if there's any real damage to the car this week."
______________________________CNBC Slideshows:
Central Banker Report Cards 200915 Most Beautiful Ferraris of All Time
______________________________
______________________________CNBC's Companies in the News:
Bank of America
BofA Suspends ACORN Commitments: Report
Berkshire Hathaway
Buffett Watch: Too Late to Buy Berkshire Hathaway?
Johnson & Johnson
Crucell Gets J&J Investment Worth $443.5 Million
Xerox
Xerox to Buy Affiliated Computer for $6.4 Billion
Apple
Apple Passes 2 Billion App Downloads
______________________________ Disclosures:
Disclosure information was not available for Cashin or his company.
Disclaimer
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39bdc2e4e7826d012e9f7b0b97098941 | https://www.cnbc.com/2009/09/28/banks-may-have-to-prepay-fdic-insurance-premiums.html | Banks May Have to Prepay FDIC Insurance Premiums | Banks May Have to Prepay FDIC Insurance Premiums
The Federal Deposit Insurance is expected to take the unprecedented step of collecting banks' regular premiums early to inject cash into the shrinking deposit insurance fund.
FDICPhoto by: Colin Robertson
Three industry executives and a government official say the FDIC board likely will call for "prepaid" bank insurance premiums at its meeting Tuesday.
The banks prefer that option over a special emergency fee— which would be the second this year. The officials spoke on condition of anonymity because the decision has yet to be made public.
A spokesman for the FDIC declined to comment Monday afternoon.
It would be the first time the FDIC has required prepaid insurance fees. The action would bring cash into the fund, but allow banks to spread out accounting for the payments over future quarters.
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e0c2544a030dfc668424235367736631 | https://www.cnbc.com/2009/09/28/brazils-lula-bright-spots-sports.html | Brazil's Lula: Bright Spots & Sports | Brazil's Lula: Bright Spots & Sports
Maria Bartiromo interviewing Brazilian President Luiz Inacio Lula da SilvaCNBC.com
A big vote of confidence on Brazil came less than 48 hours before our exclusive interview with Brazilian President Luiz Inacio Lula da Silva. Moody's Investors Service upgraded the country's credit rating to an investment grade rating of Baa3. Standard and Poor's and Fitch Ratings had already given Brazilian assets their thumbs up last year.
Among the G20 economies, Brazil is one of the few that emerged from recession in the second quarter. South America's largest economy recorded GDP growth of 1.9% from the previous quarter. But unlike many countries, Brazil only experienced a short recession. President Lula is confident about his country's prospects, saying he expects economic growth of 5% in 2010.
VIDEO0:0000:00Brazilian President on His Country's Economy
Brazil is one of the four nations that comprise the BRIC bloc - the others being Russia, India and China.
The rise of the BRICs hasn't gone unnoticed. Leaders of the four countries held their first ever summit in June of this year and some have also been vocal about replacing the U.S. dollar as the world's reserve currency. President Lula is pushing a proposal that he already has kick-started with Argentina. He's "proposing that trade exchanges should be done with our domestic currencies, without the need to buy dollars." President Lula has received positive feedback from the other three BRIC countries and is hoping to get more momentum behind his proposal.
"I don't want a weak dollar and I don't want a strong real," Lula said when pressed on whether he thought the greenback would continue to weaken. But he added that finding "a balance between the different currencies" is important.
VIDEO0:0000:00Rising Tide of Protectionism
An interview with President Lula isn't complete without a mention of sports. He is a big soccer fan and is 100% behind Rio de Janeiro's bid to host the 2016 Olympics. President Lula will be in Copenhagen next month for the International Olympic Committee vote and is counting on President Obama's absence to boost his country's chances of being the first Latin American country to host the Games. President Lula made his case to Bartiromo. He said, "Brazil is among the ten largest countries in the world and the only one that has never organized an Olympic games".
If Brazil scores, the world will be watching its transformation the same way it did with Beijing when it hosted the 2008 Olympics.
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The Dow 30 in Real TimeBehind the Scenes at the Clinton Global InitiativeThe CNBC Stock Blog
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Questions? Comments? Write toinvestoragenda@cnbc.com
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2045fc14a63704b7f9730f937b80895f | https://www.cnbc.com/2009/09/28/church-in-need-makes-discovery-worth-millions.html | Church in Need Makes Discovery Worth Millions | Church in Need Makes Discovery Worth Millions
A church’s prayers to fix its rickety roof may have been answered generously, as its communion chalice has been found to be a rare medieval artefact worth some £2 million ($3.16 million), British media reported.
St Cyriac's Church, in Lacock, UKGetty Images
The small village church in England had been trying to raise money for roof repairs when the discovery was made as the chalice was valued for the first time. The specimen, which dates back to the 1400s, is one of the best-preserved examples of its kind anywhere in the world, one expert told the Telegraph newspaper.
The chalice had been used by countless generations of unsuspecting worshipers at St Cyriac's Church in the village of Lacock, Wiltshire, before being loaned to the British Museum to be exhibited in the 1960s, reports said.
The Church has held meetings with its local residents to talk through whether to sell the chalice and what the money would be used for, according to the Telegraph. It could be used to fund a £350,000 roof-restoration project, with the remaining cash going to an investment trust for the village, the report said.
"We will look at people's opinions and decide what to do next," St Cyriac's vicar, Rev Sally Wheeler, told the Telegraph paper.
The cup, which is only a few inches high, was given to the church by an unknown benefactor around 400 years ago, but had never before been valued, the Telegraph said.
The British museum is now interested in buying the piece, the reports said.
Slideshow: Most Expensive Rare U.S. Coins
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676147774a32a5341f6bd6bfb95a9d0c | https://www.cnbc.com/2009/09/28/cnbcs-mobile-site-goes-global.html | CNBC’s Mobile Site Goes Global | CNBC’s Mobile Site Goes Global
Singapore, 24 September 2009 – CNBC, First in Business Worldwide, in Asia Pacific is expanding its mobile offerings with the revamp of its mobile website as part of a global initiative. The site now includes live U.S. stock quotes, major Asian indices and global business headlines with direct links to the U.S. and Europe mobile web sites. “Executive Insights” and “Investor Briefings” have also been included in the free site, to provide users with expert views from top newsmakers around the world. CNBC mobile users can enjoy a full web experience to make the right investment decisions.
“The revamp of our mobile website reinforces the real time experience and nature of CNBC’s product,” said Satpal Brainch, President and Managing Director, CNBC Asia Pacific. ”This is part of CNBC’s continuing efforts to find the best solutions for our viewers, and why we continue to be the first choice for business news in Asia and worldwide.”
CNBC has also developed a new shortcut BlackBerry icon with Research in Motion as well as a touchscreen widget distributed on Nokia’s Ovi Store. With strong 2G and 3G offerings, CNBC is able to tailor complete mobile solutions for partners including mobile operators and mobile handset manufacturers.
“We are excited about the new global mobile site as it allows us to reach our audience anytime, anywhere, and offers a variety of opportunities for us to work with mobile operators and handset manufacturers worldwide,” Brainch concludes. “We look forward to growing our range of products and developing new partnerships around the region.”
Axiata, the emerging leader in Asian mobile telecommunications, is the telecommunications sponsor for this site that officially launches today.About CNBC Asia PacificCNBC Asia Pacific is uniquely positioned to speak to viewers from across the region. Headquartered in Singapore, the network provides nine and a half hours of live Asia-produced programming, which is complemented with coverage of live market action from Europe and the US. CNBC Asia Pacific's channels, which include CNBC Asia, CNBC-TV18 (India), CNBC Pakistan, Nikkei-CNBC (Japan) are available in more than 21 countries across the Asia Pacific region. CNBC also has a strategic alliance with Shanghai Media Group, which wholly owns a subsidiary, China Business Network, and a partnership with Digital Chosun, part of the Chosun group of companies, the biggest media conglomerate in South Korea. The channels are distributed via satellite, cable and terrestrial broadcast networks, as well as broadband. CNBC content is also distributed on the 3G platform through selective markets. For more information, please visit us athttp://asia.cnbc.com
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f14ae4a7f6772c608b190520e39b8e85 | https://www.cnbc.com/2009/09/28/halftime-report-trading-in-wake-of-megadeal-monday.html | The Dow & S&P both made sharp moves to the upside on Monday buoyed by a slew of new mergers.
Among the companies announcing large takeover deals; Xerox agreed to buy Affiliated Computer Services for $6.4 billion while Abbott Laboratories said it would pay $6.6 billion for the drugs unit of Solvay . The purchase gives Abbott full control of its Belgian development partner's cholesterol treatments and exposure to emerging markets. Also there was a $400 million stock deal between the Dutch biotech firm Crucell and Johnson & Johnson as part of a flu vaccine development deal.
An uptick in mergers and acquisitions is considered a bullish sign as it suggests companies are more optimistic about the economy and see values in the market.
How should you put your money to work, now?I'm seeing a lot of of bullish action in the secondary markets, meaning those that have a lot of broker business, explains Mike Khouw of Cantor Fitzgerald. Keep your eye on GFI Group and Siebert. They could perform if we see a lot of capital markets activity.I'm watching Stifel, Broadpoint and Jefferies, adds OptionMonster Jon Najarian. Volumes have been pretty stellar which suggests options investors think they too could benefit.
Clearly the cash is out there, adds Zach Karabell of RiverTwice. The move in asset managers is interesting because as stock prices go up asset managers make more money. If you're looking for a trade I find Jefferies particularly interesting.-------TOPPING THE TAPE: TECH
The Nasdaq traded higher on Monday after Barclays Capital upgraded Cisco to "overweight" rating from "equal weight," citing an improved outlook for its business in both Europe and North America.
Apple was another notable advancer with China Unicom saying it would begin selling the iPhone in China, starting in October. France Telecom's Orange also said it would sell the product later this year.
What’s the tech trade?
I'm watching Cisco, says Mike Khouw. If it's a name you want to own I think its okay here at these levels.I'm watching Micron , Applied Materials and Cypress , adds Jon Najarian, for unusual options action.
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SECTOR TRADE: STEEL
Goldman Sachs downgraded the steel space from ‘Attractive’ to ‘Neutral’, citing concerns that prices could recede over coming months.
As part of the sector call, Goldman removed Steel Dynamics from its prestigious Conviction Buy list but maintained a Buy on the stock. It’s worth noting that Nucor remains their favorite pick in the space and in fact Goldman raised their price target from $53 to $55.
What’s the trade?Goldman was right on steel earlier this year, muses Pete Najarian. If they’re pulling out as an investor, I too, would take pause.
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FAST & FURIOUS: THE KEY QUESTIONS INTO THE CLOSE
BUY APPLE? Thomas Weisel raised its Apple price target to $210; should you buy?I’m a buyer, reveals Joe Terranova.
BUY NKE? With Nike set to report earnings tomorrow, should you buy?
I think they surprise to the upside and I’m long, says Jon Najarian.
BUY SBUX?Starbucks traded higher as William Blair says margins will be robust in next 2 years; should you buy?
I think it’s an interesting name, says Zach Karabell.
BUY CSCO? Cisco traded higher after being upgraded by Barclays; should you buy?
I think it’s okay to buy it here, says Mike Khouw.
______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to .
Trader disclosure: On Sept. 28th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Terranova Owns (F), (KCE), (SUN), ABT); Terranova Is Short (CCL), (ESS); Terranova Works For (VRTS); Grasso Owns (AAPL), (ABK), (BAC), (C), (COST), (CSCO), (PFE), (V), (WMT); J. Najarian Owns (AAPL), (ACI), (BAC), (BX), (GHL), (GS), (SF), (TTWO),, (WFC), (MU), (PXP); J. Najarian Is Short (V); J. Najarian Owns (RIMM) & (RIMM) Calls
For Steve GrassoStuart Frankel Owns (ACS)Stuart Frankel Owns (GERN) Stuart Frankel Owns (HSPO) Stuart Frankel Owns (MSFT) Stuart Frankel Owns (NWS.a) Stuart Frankel Owns (NYX) Stuart Frankel Owns (PFE) Stuart Frankel Owns (PDE) Stuart Frankel Owns (ROK) Stuart Frankel Owns (XOM) Stuart Frankel Owns (PFE) Stuart Frankel Owns (SDS) Stuart Frankel Is Short (QQQQ)
For Dennis GartmanGartman Owns Gold In Euros Gartman Owns 10-Year Bonds Gartman Owns (AAPL)
For Geoff PorgesA Member of Porges' Household Owns (VRTX) A Member of Porges' Household Owns (EXEL) Sanford Bernstein Owns (HGSI)Sanford Bernstein Owns (GILD)Sanford Bernstein Owns (AMGN) Sanford Bernstein Owns (CELG) Sanford Bernstein Owns (VRTX) Sanford Bernstein Makes A Market In (HGSI) Sanford Bernstein Makes A Market In (GILD) Sanford Bernstein Makes A Market In (GENZ) Sanford Bernstein Makes A Market In (BIIB) Sanford Bernstein Makes A Market In (AMGN) Sanford Bernstein Makes A Market In (CELG) Sanford Bernstein Makes A Market In (VRTX)
CNBC.com with wires
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08a964542afb1fb8676d4286e2256010 | https://www.cnbc.com/2009/09/28/hamilton-consumers-are-alive-well-and-have-been-all-along.html | Hamilton: Consumers Are Alive & Well and Have Been All Along | Hamilton: Consumers Are Alive & Well and Have Been All Along
As this recent article states, consumer sentiment has risen to its highest level since the beginning of 2008.
This news, along with most other news in the last year, suggests that until now consumers have been largely dormant, paralyzed by fear through the course of the recession.
Sales have declined for many major retailers and small businesses; this is not a point that can or will be contested.
The truth is that consumers have not been completely inactive; they have just changed their behaviors.
AP
Sageworks has compiled a list of 10 facts about today’s consumer based on the analysis of sales in consumer-related private businesses over the past year.
The data depicts a thriftier and do-it-yourself-friendly consumer who is unwilling to give up the simple pleasures of life despite job losses and budget cuts.
Sageworks’ data shows that people are still shopping, but they are doing more shopping online. Online shopping makes price comparison easier; people are giving up instant gratification for the satisfaction of finding a good deal.
Another great example of a new trend: consumers aren’t making big ticket purchases of things like furniture or electronics, and have opted to rent these items instead. Businesses renting consumer goods have seen significant growth over the last 12 months. In tight financial times, it’s understandable that consumers feel more comfortable ‘paying as they go’ rather than paying one large lump sum upfront.
People are also indulging in different ways now than they did before the recession hit. Instead of going on vacations, buying expensive jewelry or buying new cars people are indulging instead in going out for dinner and drinks, getting manicures and massages, and staying active. These are all manageable purchases that have been kept in the budgets of many consumers.
From CNBC.com Consumer Nation:
Don't Bet on Retailers to Boost Hiring This Holiday SeasonUnwrapping Toys 'R Us's Holiday PlansCNBC.com Blog - Consumer Nation
There are a few other things that should be highlighted. People are still getting healthcare; offices of physicians have experienced steady growth through the course of the past year. This suggests that people are looking to the future and continue to take care of themselves. The fact that revenue of gyms and sporting goods stores are also up speaks to this point as well.
While layoffs have abounded in the course of the recession, and that is clearly not good news, it has given people the opportunity to go back to school to figure out what trade they would like to be in and to make themselves even more competitive in the job market as it picks back up. This trend is supported by the fact that technical and trade schools have grown their revenues by almost 13% over the last year alone.
While it is great news that consumer sentiment is up, it is also great news that people are finding new ways to stay within a budget without losing sight of their future and current wellbeing.
___________________________Brian Hamilton is the Chief Executive Officer of Sageworks, a financial information company based out of Raleigh, NC.
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ecb859641bdb2cad5d3d479c2036bd72 | https://www.cnbc.com/2009/09/28/how-to-build-the-best-team.html | How to Build the Best Team | How to Build the Best Team
Young Employees
You’ve heard the clichés, but they exist for a reason.
First off, you know you can’t do it all by yourself.
You need a team.
A chain is only as strong as its weakest link – and the same goes for a team.
It might not work to have all MVPs, but it’s certainly worth trying to surround yourself with the best and brightest. (In fact, when it comes to talent and expertise, I like it when I am the weakest link - providing the leadership and guidance, while letting my outstanding teammates score all the touchdowns!)
Finding winners for your team is way easier said than done.
Great talent is always in short supply (even in the worst economy since the Great Depression) and harder to identify than some people think. Therefore, I always try to locate folks whom I have personally worked with before. Obviously, that’s the surest way to ensure success. My second choice is to identify a candidate who can be vouched for by someone I have worked with before, or know well. Getting verification from known parties is always superior to vetting and interviewing strangers.
But clearly, sometimes we have to rely on a “stranger” to fill one position or more on our team.
And beyond vetting the resume, or hiring the candidate provisionally, the interview is all we have to go on.
How can we increase the likelihood of success?
The best advice is to ask open-ended questions and then listen carefully to the answers.
Here are some examples of open-ended questions:
How would describe your leadership style? Tell me all about your greatest strength and greatest weakness…. Why did you move from Company A to Company B?
Questions that begin in “how” or “why” or “tell me about” elicit more subjective and far-ranging answers, which will give you more information about what’s really going on with the candidate. And one final tip for “strangers” – make sure to ask them why they want to work at your company and for you. This is a good way to check their thoroughness. You only want people on your team who go to the trouble of preparing.
In today’s world, there is no excuse for not knowing a lot about the company and the interviewer.
More Executive Strategies on CNBC.com:Where To Find A Job NowHottest States For Green JobsExecutive Career Strategies
________________________________Erik Sorenson is CEO of Vault, the Web’s most comprehensive resource for career management and job search intelligence. Vault provides top talent with the insider information they need to make critical career decisions. An Emmy award-winning media industry veteran, Erik served as president of the MSNBC cable news channel through 2004. His experience spans radio, local and network broadcast television, cable and syndicated TV, and the Web.
Comments? Send them to executivecareers@cnbc.com
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897e973c8dabc83808cf0302887a64b8 | https://www.cnbc.com/2009/09/28/iphones-china-debut.html | Apple's iPhone is going on sale in China next month. Wait until you find out what it’s going to cost!According to published reportsChina Unicom will sell the gadget for as much as 5,000 yuan, that’s $732.50!
CLSA analyst Francis Cheung said the pricing is likely to limit the phones to the highest end of the market, a relatively small but lucrative segment now dominated by the country's biggest carrier, China Mobile.
"They look at this as a high end product, not mass market. It's very expensive. (And) I do get the sense there are going to be affordability issues."
Unicom said the phones would be available for services starting October 1.
What’s the trade?The Fast Money traders suggest focussing on the bigger picture.
Apple has already sold 2 billion aps, muses Jon Najarian. Once they can do that in China, I think it’s going to be huge."I’m a buyer too, says Steve Grasso. But it’s because I like how Apple has developed hand held video games.
______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to .
Trader disclosure: On Sept. 28th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Terranova Owns (F), (KCE), (SUN), ABT); Terranova Is Short (CCL), (ESS); Terranova Works For (VRTS); Grasso Owns (AAPL), (ABK), (BAC), (C), (COST), (CSCO), (PFE), (V), (WMT); J. Najarian Owns (AAPL), (ACI), (BAC), (BX), (GHL), (GS), (SF), (TTWO),, (WFC), (MU), (PXP); J. Najarian Is Short (V); J. Najarian Owns (RIMM) & (RIMM) Calls
For Steve GrassoStuart Frankel Owns (ACS)Stuart Frankel Owns (GERN) Stuart Frankel Owns (HSPO) Stuart Frankel Owns (MSFT) Stuart Frankel Owns (NWS.a) Stuart Frankel Owns (NYX) Stuart Frankel Owns (PFE) Stuart Frankel Owns (PDE) Stuart Frankel Owns (ROK) Stuart Frankel Owns (XOM) Stuart Frankel Owns (PFE) Stuart Frankel Owns (SDS) Stuart Frankel Is Short (QQQQ)
For Dennis GartmanGartman Owns Gold In Euros Gartman Owns 10-Year Bonds Gartman Owns (AAPL)
For Geoff PorgesA Member of Porges' Household Owns (VRTX) A Member of Porges' Household Owns (EXEL) Sanford Bernstein Owns (HGSI)Sanford Bernstein Owns (GILD)Sanford Bernstein Owns (AMGN) Sanford Bernstein Owns (CELG) Sanford Bernstein Owns (VRTX) Sanford Bernstein Makes A Market In (HGSI) Sanford Bernstein Makes A Market In (GILD) Sanford Bernstein Makes A Market In (GENZ) Sanford Bernstein Makes A Market In (BIIB) Sanford Bernstein Makes A Market In (AMGN) Sanford Bernstein Makes A Market In (CELG) Sanford Bernstein Makes A Market In (VRTX) CNBC.com with wires
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ca7405b83f54f595d9f315343a7a55ea | https://www.cnbc.com/2009/09/28/market-insider-good-earnings-could-counter-october-fears.html | Market Insider: Good Earnings Could Counter October Fears | Market Insider: Good Earnings Could Counter October Fears
Wall Street will quickly shift its focus to corporate earnings news once the books are closed on the third quarter this week.
Wall Street tradersCNBC.com
Joe Quinlan, for one, thinks investors are in for some good news. "I'm encouraged that there's a skepticism about the earnings potential for third quarter. A lot of investors are underestimating how productive U.S. companies have become," said Quinlan, who is the chief market strategist at Bank of America Merrill Lynch. "I think final demand is picking up." Third quarter earnings for the S&P 500 companies are expected to be down 24.7 percent. Many analysts think the bar is higher than last quarter in terms of upside surprises. The quarter wraps up Wednesday, and the earrings reporting season starts with Dow component Alcoa on Oct. 7.Of the S&P 500 companies, 73 percent saw positive earnings surprises in the second quarter, and the street has been raising estimates ever since. Quinlan said he is in the process of ratcheting up his own estimates for the third quarter. He also expects to hear more encouraging comments on the outlook from corporate managements as they release earnings news.
Art Cashin: Jewish Holiday, Dollar, M&A Driving Stocks
Stocks were boosted by a spurt of merger and acquisition activity Monday. Xerox said its buying Affiliated Computer Servicesfor $6.4 billion, and Abbot Labs is buying Solvay's Drug unit for $6.6 billion. About $60 billion in deals have been announced in the last five weeks. Reuters Thomson said there have been nearly $500 billion in deals since the start of the year, but that's down about 40 percent from last year and down more than 50 percent from the 2007 peak of $1.28 trillion.
M&A Is Back—And May Bring Big Opportunities for Investor
The return of deal making, however, is a big positive. "It's a sign of business confidence coming back to the market," said Quinlan.
The Dow finished up 124, at 9789, and the S&P 500 jumped 18 to 1962, the best day for stocks since Aug. 21. At the same time, the dollar was firm against a basket of currencies. Oil finished 1.2 percent higher at $66.84 per barrel, while grains and metals were mixed.
Treasuries saw buying on light volume, which drove yields lower. The 10-year was at 3.285 percent, and the two-year was at 0.968 percent. "People are beginning to realize with the twos (2-year note) anchored at about one percent, and the curve breaking above that, a flatter curve is going to be a bull flattening and long rates have to fall," said William O'Donnell, head of Treasury strategy at RBS.
"It took a long time, but people are buying into this whole thing.. as households and banks repair balance sheets, it's leading to a higher savings rate, weaker growth and a lower inflation outlook." O'Donnell said the market was relatively quiet Monday due to the Yom Kippur holiday, the approach of quarter end, and ahead of the Friday jobs report.Trick or TreatJust as many investors had expected September to be a terrible months for stocks, there's some trepidation about October, historically a month of volatility and some memorable crashes. "I'm not fearful about October. I think a lot of investment managers are going to put money to work in October to get that performance," Quinlan said.
Dow 10,000: A Morale Boost, But Probably Not Much More
He said earnings are just one catalyst that will keep stocks positive into the year end. "What I'm telling clients is between now and the end of the year, there's another 5 to 8 percentupside," said Quinlan. He expects the S&P 500 to finish the year somewhere around 1150.There are other strategists, who believe a pull back is on the horizon and the timing could be October because of earnings reports. Quinlan disagrees. "It could be we start out of the gate with some weak earnings announcements," he said. But he thinks the overall picture from the reports will be that the worst is over and that will help the market. "I've been surprised in particular by the resiliency of the global economy...the rebound, the synchronized global expansion. It's not just the U.S.," Quinlan said. "Where we are in the global economy, I thought we'd be first quarter of next year," he said. Another factor that will keep money moving into stocks is the unwillingness of Central Banks to raise rates for awhile. There is also a large amount of money, sitting in money market funds that could still be invested in stocks. "There's $3.5 trillion U.S. dollars in investor cash sitting on the sidelines," he said.Quinlan is bullish for now, but he says the market could run into trouble early next year when the resiliency of the recovery is tested. Issues such as cap and trade, health care reform, the growing U.S. budget deficit and unemployment could all worry the market. "You don't want to be cute in terms of trying to time. We're investors, not traders, but we do think there's good momentum upside from now until early next year," he said.U.S. stocks could also benefit from a rotation away from emerging markets as investors take profits from big moves there and redirect them into relatively cheaper U.S. big cap names. What to Watch Tuesday
Tuesday's market will be watching the S&P/Cash Shiller Home Price Index at 9 a.m. Consumer confidence for September at 10 a.m. There are a few earnings, including drug retailer Walgreen before the bell, and consumer sensitive companies, Darden and Nike , after the bell.The FDIC meets to discussing funding, among other topics. News reports on Monday said the FDIC is expected to collect banks' regular premiums early in order to pump up the waning deposit insurance fund.The Senate banking committee holds a hearing on bank supervision, and the Securities and Exchange Commission holds the first of two days of meetings on short selling.The Senate Finance committee is back to work on the healthcare bill.
Memories If you're anxious about the stock market erasing some of its recently won gains, think back a year ago. The Dow finished Sept 28, 2008 at 11,143, and after the House vote on the bank bailout package failed, it finished Sept. 29 down 778 points at 10,365, still above where it is today.
— Questions? Comments?
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be32656e9e57c45517e953016140d1b3 | https://www.cnbc.com/2009/09/28/market-tips-dollar-weak-for-the-next-2-years.html | Market Tips: Dollar Weak for the Next 2 Years | Market Tips: Dollar Weak for the Next 2 Years
The dollar has suffered heavy selling against the other major currencies in recent weeks, with the yen and euro seeing strong gains. But is the dollar weakness here to stay?
One market expert told CNBC that the greenback is set to remain on the back-foot for the next two years, while the Asian currencies take center stage.
Dollar Weakness Here to Stay
“The next couple of years is all about dollar weakness, it’s all about Asia currency strength,” Stephen Green, senior economist at Global Research at Standard Chartered Bank
Sterling Heads Back to ‘Normal Levels’
“Sterling is going down,” Robin Griffiths from Cazenove Capital told CNBC Monday. “You can say ‘is that the dollar going back up or what?’ - that’s less clear.” He predicts sterling will settle just below the ($)1.50 range, but says this isn’t a reason for concern as “it’s just going back to its normal levels really.”
Betting on the Chinese Consumer
Gain exposure to China's consumer demand story, advises James Holt, VP at BlackRock Investment Management. He tells CNBC how investors can best capitalize on this.
M&A Trends in China
The key pattern behind M&A deals in China is that it has the support of the government, says Wang Wei, chairman of the China Mergers and Acquisition Association, speaking to CNBC.
Investing in Downturns
Downturns are some of the best opportunities to invest in, says Arvind Sodhani, president of Intel Capital, speaking to CNBC.
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9aa2a9ecc2fef94e5b3a91ba05804711 | https://www.cnbc.com/2009/09/28/munich-most-attractive-for-real-estate-investments.html | Munich Most Attractive for Real Estate Investments | Munich Most Attractive for Real Estate Investments
Munich is the most attractive European city for real estate investment judging by the level of demand, surpassing London and Paris, due to its diversified economy and growing population, according to a report by LaSalle Investment Management.
VIDEO7:2807:28Best Cities for Real Estate Investment
“This report is slightly confusing in that it only focuses on the demand side,” Robin Goodchild from Lasalle Investment Management told CNBC. “The pricing side is subtly different, and the pricing has actually been more extreme here in London and actually in Paris.”
London slipped to 8th in the city ranking, but Goodchild said it will “rise back up.”
“Munich and Paris have been neck and neck for the last few years,” he said “and they’re going to stay strong.” He said Paris will stay in the top three and Munich in the top five and “may actually challenge because it is the German city that is doing the best.”
Another surprise was in Oslo, which saw a jump to fourth place from its previous position at ninth. This is because Oslo is benefiting from the massive oil wealth and Norway has a strong economy “so that boosts it giving it an underlying strength,” according to Goodchild.
He said although it doesn’t grow terribly fast, “when the cities that do have growth are not going so fast Oslo and the Swiss cities rise up.”
- For the full interview watch the video above
For Investors:
Special Report: Investing in Emerging MarketsIs Asia's Economic Growth a Given?
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20cfe4ae9d0bdb60f2ff1f62123aae3d | https://www.cnbc.com/2009/09/28/nike-earnings-can-it-still-meet-the-street.html | Nike Earnings: Can It Still Meet the Street? | Nike Earnings: Can It Still Meet the Street?
Nike is scheduled to report earnings for its fiscal first quarter on Tuesday after the market closes. The following is a summary of key developments and analyst opinion related to the period.
Overview: Nike has said it is expecting a gradual recovery. But the athletic apparel company is expected to report that its sales remained sluggish in its first quarter.
Beaverton, Ore.-based Nike, the world's largest footwear and apparel company, has managed to meet and beat expectations during the recession because it has reorganized its structure and tightly controlled inventory and costs.
But Nike's largest market is in the U.S., where shoppers are still keeping a lid on discretionary spending and specialty athletic retailers that emphasize the Nike brand are struggling.
In its second-largest market, China, Nike faces a post-Olympics slump and increased competition from local brands like Li Ning.
By The Numbers: Analysts polled by Thomson Reuters on average expect the company to earn 97 cents per share for the quarter on revenue of $4.9 billion.
Nike earned $1.03 per share on revenue of $5.43 billion in the first quarter of last year.
Analyst Take: Marie Driscoll, a retail analyst with Standard & Poor's Equity Research said she sees a few more weak quarters for Nike's orders, but a weakening U.S. dollar could help the company because it would increase the value of sales abroad.
She said the company's "global superbrand status" will help it grow after the economy recovers and reiterated a "buy" rating on Nike.
What's Ahead: Nike continues to face uncertainty stemming from the weak global economy—including tight consumer spending and fluctuations in foreign currency.
Related Story: Serena's Outburst Might Have Cost Her
Stock Performance: Nike shares fell nearly 5 percent during the quarter and more than 13 percent during the past 52 weeks. Shares of Nike closed Friday at $58.64 near the top of its 52-week range of $38.24 to $68.
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b2ff8e70cfd2e4db77df7cc6285b2caa | https://www.cnbc.com/2009/09/28/oil-vs-goldwhere-you-should-invest-strategists.html | Oil vs. Gold—Where You Should Invest: Strategists | Oil vs. Gold—Where You Should Invest: Strategists
Both oil and gold are up since the March bottom and many say the benefits of investing in them are very similar, but which is a better buy now? Jerry Castellini, president and CIO of CastleArk Management and Bart Melek, global commodities strategist at BMO Capital Markets shared their insights.
VIDEO0:0000:00Commodity Showdown: Gold vs. Oil
“Oil has two distinct advantages over gold—principally, the supply and demand argument,” Castellini told CNBC.
He said a “rapid deterioration” of oil production is taking place around the world.
“Combine that with the world’s need for oil to grow,” he said. “So you combine falling supply with rising demand from an economic standpoint."
"Oil has a very solid base, going out into the next 5 to 10 years and it’s not as dependent on some of the more monetary driven fundamentals that gold is,” Castellini said.
Oil & Energy:
'Fast Money' Trader: Watch for Oil 'Super-Spike'Oil Jumps as Markets Watches Stocks, IranCNBC.com's Complete Energy News and Data
In the meantime, Melek said gold will likely continue trading higher into 2010 and 2011, amid rising inflation concerns and the weakening dollar.
“The U.S. dollar is likely going to weaken over the longer-term and gold seems to be the perfect hedge to protect against the devaluation of the dollar,” he said.
“The U.S. dollar needs to weaken to reestablish some balance of U.S. current account and trade deficits. In the same time, we see inflation increasing quite a bit and gold as a hedge against inflation—the physical demand will likely increase because of that as well.”
Melek added that as wealth in China and India increase, their propensity to consume gold is going to be much greater than in the past.
Commodities, Stocks & Investing:
Gold, Oil, Natural Gas Prices NowWhere's the US Dollar Today?Art Cashin: Stocks Riding Dollar, M&A
______________________________
Disclosure:
No immediate information was available for Castellini or Melek.
______________________________ CNBC Slideshows:
Which Oil Nations Make Money?
______________________________
______________________________Top Oil Companies:
Exxon Mobil
Chevron
ConocoPhillips
BP
______________________________
Disclaimer
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a8416ad910382ae466860c13d6255318 | https://www.cnbc.com/2009/09/28/pops-drops-cisco-merck.html | Following are the day’s biggest winners and losers. Find out why shares of Cisco and Merck popped while IBM and Xerox dropped.
POPS (stocks that jumped higher)Cisco (CSCO) popped 4%. Barclay’s upgraded the networking giant to ‘overweight’ from ‘equal weight’ citing stronger demand. - I think it could break-out to the upside, muses Guy Adami.
Merck (MRK) popped 2%. The company won an agreement to market Australia-based vaccine maker CSL’s Afluria flu drug in the US. - Not too bad, says Jon Najarian.
VIDEO0:0000:00Stock Pops & Drops
CBS (CBS) popped 6%. The media company has plans to announce a partnership with GlobalPost, an international online news service. - I think the P/E is getting rich, says Joe Terranova.
Hartford Financial (HIG) popped 11%. The insurance giant moved significantly higher for no clear reason. - All I can think of is.. they have a new ad campaign, says Steve Grasso.
Starbucks (SBUX) popped 4%. William Blair issued a note saying cost savings are benefiting the company and same store sales are improving. - I like this stock, says Jon Najarian.
Tenet Healthcare (THC) popped 7%. Moody's raised the company’s rating outlook to ‘positive’ after its successful capital raising efforts.
Bob Evans Farms (BOBE) popped 6%. Sidoit & Co. upgraded the restaurant owner to ‘buy’ from ‘neutral’ citing increased consumer spending and lower costs.
DROPS (stocks that slid lower)
IBM (IBM) dropped 1%. Big Blue moved higher early in the day but then gave back gains and then some. - I don't like that it traded below $120 on a good tape, says Guy Adami.
Xerox (XRX) dropped 14%. The company announced plans to buy Affiliated Computer Services Inc (ACS.N) for $5.5 billion to move into the outsourcing business, but shares of the printing company plunged on concerns that it was gambling on a major shift in strategy.
______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! If you'd prefer to make a comment but not have it published on our website send your e-mail to .
Trader disclosure: On Sept. 28th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Terranova Owns (F), (KCE), (SUN), ABT); Terranova Is Short (CCL), (ESS); Terranova Works For (VRTS); Grasso Owns (AAPL), (ABK), (BAC), (C), (COST), (CSCO), (PFE), (V), (WMT); J. Najarian Owns (AAPL), (ACI), (BAC), (BX), (GHL), (GS), (SF), (TTWO),, (WFC), (MU), (PXP); J. Najarian Is Short (V); J. Najarian Owns (RIMM) & (RIMM) Calls
For Steve GrassoStuart Frankel Owns (ACS)Stuart Frankel Owns (GERN) Stuart Frankel Owns (HSPO) Stuart Frankel Owns (MSFT) Stuart Frankel Owns (NWS.a) Stuart Frankel Owns (NYX) Stuart Frankel Owns (PFE) Stuart Frankel Owns (PDE) Stuart Frankel Owns (ROK) Stuart Frankel Owns (XOM) Stuart Frankel Owns (PFE) Stuart Frankel Owns (SDS) Stuart Frankel Is Short (QQQQ)
For Dennis GartmanGartman Owns Gold In Euros Gartman Owns 10-Year Bonds Gartman Owns (AAPL)
For Geoff PorgesA Member of Porges' Household Owns (VRTX) A Member of Porges' Household Owns (EXEL) Sanford Bernstein Owns (HGSI)Sanford Bernstein Owns (GILD)Sanford Bernstein Owns (AMGN) Sanford Bernstein Owns (CELG) Sanford Bernstein Owns (VRTX) Sanford Bernstein Makes A Market In (HGSI) Sanford Bernstein Makes A Market In (GILD) Sanford Bernstein Makes A Market In (GENZ) Sanford Bernstein Makes A Market In (BIIB) Sanford Bernstein Makes A Market In (AMGN) Sanford Bernstein Makes A Market In (CELG) Sanford Bernstein Makes A Market In (VRTX)
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1d164d48924c2a5d80910e50cdb1bf9a | https://www.cnbc.com/2009/09/28/sp-to-hit-1200-in-36-months-strategist.html | S&P to Hit 1,200 in 3-6 Months: Strategist | S&P to Hit 1,200 in 3-6 Months: Strategist
Stocks opened higher on Monday after a wave of merger-and-acquisition activity. Are the markets positioned to head higher or should investors remain cautious?
VIDEO0:0000:00Morning Market Edge
Market strategists Phil Orlando at Federated Investors and Stephen Wood at Russell Investments shared their insights. (See their sector plays, below.)
“The recession is over—we think it ended in the second quarter,” Orlando told CNBC.
“We think third- and fourth-quarter corporate earnings are going to be better than expected: modest topline gains, stronger than expected bottom-line…and as estimates continue to move up, we think the markets are going to grind higher and we’re going to be at 1,200 [on the S&P] in the next 3 to 6 months.”
More Investor Intelligence:
Markets Will Drop 7-17% in October: StrategistArt Cashin: Stocks Riding Jewish Holiday, Dollar, M&A
Wood said he is “guardedly optimistic” on the markets.
“What we’re looking at is a transition period where we’re transitioning from recession into growth, but the growth is going to be slow,” he said. “The consumer is not dead but damaged, I think corporate earnings recover a bit—but we’re not going to recover back to the 2006 levels any time soon.”
Orlando Likes:
Technology*
Materials
Financials
Consumer Staples—Food, Beverage and Tobacco
Health Care—Equipment and Services
Emerging Markets
Orlando Avoids:
Treasurys
Wood Likes:
Technology*
Consumer Discretionary
Financials
Wood is 'Underweight':
Health Care
Utilities
______________________________
Disclosure:
No immediate information was available for Orland or Wood.
______________________________CNBC Slideshows:
World’s Highest Corporate Tax Rates
______________________________
______________________________*Top Tech Companies:
Google
Apple
Microsoft
IBM
Intel
______________________________
Disclaimer
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1cdc8db33edf2c1b9e9a08baf6f5d21d | https://www.cnbc.com/2009/09/28/stocks-surge-on-megadeal-monday.html | The Dow and S&P rallied on Monday, snapping a three-day losing streak, as a string of corporate takeovers in the technology and health-care sectors fueled optimism that value remained in the market.
With Monday's gains, the Dow Jones industrial average held an advance of about 16 percent in the quarter so far, which would make it the index's best such period since the fourth quarter of 1998.What must you know about Monday's market action?
VIDEO0:0000:00Word on the Street
Strategy Session with the Fast Money TradersI’m seeing maximum frustration in the market, muses Joe Terranova. What’s going on in the marketplace reminds me of the song, “Should I Stay Or Should I Go?” Investors don’t know if they should hang on or get out.I think the song is “Waiting Is The Hardest Part,” says Guy Adami. I’ve been waiting for a pullback and it hasn’t come. However, I’m still bearish. It’s quite possible this M&A activity signals the top.
I’m not sure how much of this rally is real money being put to work and how much of it is window dressing for quarter's end, says Steve Grasso. Considering October’s history, I doubt it will be the month that investors say let me step off of the sidelines and get into stocks.
Options action suggests to me that investors are not worried, counters Jon Najarian. It seems like there’s cautious optimism in the market.
It's always a positive sign when you see companies putting money to work, whether they buy other companies, invest in new plants, (or) buy back their own stock," says Tim Smalls, head of U.S. stock trading at brokerage firm Execution LLC. With depressed stock prices, like we've had over the past year and a half, a lot of companies will find it cheaper to buy a company than to grow that same type of company organically. It's a more effective way to put money to work sometimes.-----------
MEGA-M&A MONDAYAmong the companies announcing large takeover deals; Xerox agreed to buy Affiliated Computer Services for $6.4 billion while Abbott Laboratories said it would pay $6.6 billion for the drugs unit of Solvay . The purchase gives Abbott full control of its Belgian development partner's cholesterol treatments and exposure to emerging markets. Also there was a $400 million stock deal between the Dutch biotech firm Crucell and Johnson & Johnson as part of a flu vaccine development deal.
What’s the play?I’m watching Abbott, says Guy Adami, but resistance tends to be $49. And as an M&A play I’d keep an eye on Greenhill and Jefferies .
I’d play it by getting long the KCE , counsels Joe Terranova.
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CHIP NAMES LEAD NASDAQ HIGHER
The tech heavy Nasdaq closed higher on Monday after Citi upgraded Applied Materials to a ‘Buy” citing emerging opportunities for the companies solar-power business.
Cisco also provided a tailwind after Barclays Capital upgraded the firm to "overweight" rating from "equal weight," citing an improved outlook for its business in both Europe and North America.
Apple was another notable advancer with China Unicom saying it would begin selling the iPhone in China, starting in October. France Telecom's Orange also said it would sell the product later this year
What’s the tech trade?
I’m watching Intel , counsels Guy Adami. The price action leads me to believe this stock doesnot want to go higher. And I’m also watching RIM, he adds. If you’re looking to buy I think current levels may be an entry point.
I like Micron and other semi stocks because I think Corporate America is about to upgrade IT, says Jon Najarian, and Micron should be a beneficiary. Also, I’m seeing an unusual amount of options action in this name.
I think technology broadly is in play as the main beneficiary of the PC upgrade cycle, adds Joe Terranova. Names in the space I like include TXN , MSFT , and Apple .
-----------BUZZKILL: STEEL
Goldman Sachs downgraded the steel space from ‘Attractive’ to ‘Neutral’, citing concerns that prices could recede over coming months.
As part of the sector call, Goldman removed Steel Dynamics from its prestigious Conviction Buy list but maintained a Buy on the stock. It’s worth noting that Nucor remains their favorite pick in the space and in fact Goldman raised their price target from $53 to $55.
What’s the trade?I happen to think Goldman is right, muses Guy Adami.
I also think Goldman is right, echoes Jon Najarian.
______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to .
Trader disclosure: On Sept. 28th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Terranova Owns (F), (KCE), (SUN), ABT); Terranova Is Short (CCL), (ESS); Terranova Works For (VRTS); Grasso Owns (AAPL), (ABK), (BAC), (C), (COST), (CSCO), (PFE), (V), (WMT); J. Najarian Owns (AAPL), (ACI), (BAC), (BX), (GHL), (GS), (SF), (TTWO),, (WFC), (MU), (PXP); J. Najarian Is Short (V); J. Najarian Owns (RIMM) & (RIMM) Calls
For Steve GrassoStuart Frankel Owns (ACS)Stuart Frankel Owns (GERN) Stuart Frankel Owns (HSPO) Stuart Frankel Owns (MSFT) Stuart Frankel Owns (NWS.a) Stuart Frankel Owns (NYX) Stuart Frankel Owns (PFE) Stuart Frankel Owns (PDE) Stuart Frankel Owns (ROK) Stuart Frankel Owns (XOM) Stuart Frankel Owns (PFE) Stuart Frankel Owns (SDS) Stuart Frankel Is Short (QQQQ)
For Dennis GartmanGartman Owns Gold In Euros Gartman Owns 10-Year Bonds Gartman Owns (AAPL)
For Geoff PorgesA Member of Porges' Household Owns (VRTX) A Member of Porges' Household Owns (EXEL) Sanford Bernstein Owns (HGSI)Sanford Bernstein Owns (GILD)Sanford Bernstein Owns (AMGN) Sanford Bernstein Owns (CELG) Sanford Bernstein Owns (VRTX) Sanford Bernstein Makes A Market In (HGSI) Sanford Bernstein Makes A Market In (GILD) Sanford Bernstein Makes A Market In (GENZ) Sanford Bernstein Makes A Market In (BIIB) Sanford Bernstein Makes A Market In (AMGN) Sanford Bernstein Makes A Market In (CELG) Sanford Bernstein Makes A Market In (VRTX) CNBC.com with wires
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2fb04183454421e14d14daf56cb7b989 | https://www.cnbc.com/2009/09/28/take-your-position-nike.html | How are traders gaming Nike ahead of earnings on Tuesday after the bell? What must you know?Despite some pockets of strength in retail, Nike will probably say its sales remained sluggish in its first quarter. That’s largely because Nike’s largest market is the U.S., where shoppers are still keeping a lid on discretionary spending.
However Marie Driscoll, a retail analyst with Standard & Poor's Equity Research has a ‘Buy” on the stock. Despite Nike’s big presence here at home, Driscoll feels overseas sales should not be discounted especially with a weaker U.S. dollar promising to provide a tailwind. And she says the company's "global superbrand status" will help it grow after the economy recovers.
So, what’s the trade?
I’m anticipating they will meet expectations, says Citi analyst Kate McShane. However what the Street is looking to hear about is the futures number. I expect down 5% futures. If they beat that number the stocks should be up.Valuations look fair to me, counsels Guy Adami. But if there’s an inventory build I think the stock could get whacked. I’d just wait and see.
VIDEO0:0000:00Take Your Position: Nike
______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to .
Trader disclosure: On Sept. 28th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Terranova Owns (F), (KCE), (SUN), ABT); Terranova Is Short (CCL), (ESS); Terranova Works For (VRTS); Grasso Owns (AAPL), (ABK), (BAC), (C), (COST), (CSCO), (PFE), (V), (WMT); J. Najarian Owns (AAPL), (ACI), (BAC), (BX), (GHL), (GS), (SF), (TTWO),, (WFC), (MU), (PXP); J. Najarian Is Short (V); J. Najarian Owns (RIMM) & (RIMM) Calls
For Steve GrassoStuart Frankel Owns (ACS)Stuart Frankel Owns (GERN) Stuart Frankel Owns (HSPO) Stuart Frankel Owns (MSFT) Stuart Frankel Owns (NWS.a) Stuart Frankel Owns (NYX) Stuart Frankel Owns (PFE) Stuart Frankel Owns (PDE) Stuart Frankel Owns (ROK) Stuart Frankel Owns (XOM) Stuart Frankel Owns (PFE) Stuart Frankel Owns (SDS) Stuart Frankel Is Short (QQQQ)
For Dennis GartmanGartman Owns Gold In Euros Gartman Owns 10-Year Bonds Gartman Owns (AAPL)
For Geoff PorgesA Member of Porges' Household Owns (VRTX) A Member of Porges' Household Owns (EXEL) Sanford Bernstein Owns (HGSI)Sanford Bernstein Owns (GILD)Sanford Bernstein Owns (AMGN) Sanford Bernstein Owns (CELG) Sanford Bernstein Owns (VRTX) Sanford Bernstein Makes A Market In (HGSI) Sanford Bernstein Makes A Market In (GILD) Sanford Bernstein Makes A Market In (GENZ) Sanford Bernstein Makes A Market In (BIIB) Sanford Bernstein Makes A Market In (AMGN) Sanford Bernstein Makes A Market In (CELG) Sanford Bernstein Makes A Market In (VRTX) CNBC.com with wires
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61a64f34a5da83a7ed5632108a2db3c9 | https://www.cnbc.com/2009/09/28/thailands-pm-abhisit-vejjajiva.html | Thailand's PM: Abhisit Vejjajiva | Thailand's PM: Abhisit Vejjajiva
Thailand is a country in transition. It was just three years ago when a coup replaced head of state - Prime Minister Thaksin Shinawatra. Since then, the country has remained challenged. Most recently in April, Prime Minister Abhisit Vejjajiva declared a state of emergency after attempts to topple his government.
Now Prime Minister Vejjaviva has brought his case to New York, telling investors the Thai economy has already bottomed out.
He dropped by the New York Stock Exchange and talked with Maria Bartiromo about the country's recovery. Vejjjajiva told Bartiromo, "we have put in place stimulus packages which are on track, on time, and with investing not just in jobs, but also increasing competitiveness of the economy." Thailand's stimulus plan has a price tag of $42 billion over the next three years. That's equal to one percent of their GDP this year.
VIDEO0:0000:00Thailand in Transition
Vejjajiva said "the government is ready to support the private sector in Thailand, which is now ranked 12th in terms of business facilities among 183 countries by the World Bank."
Thailand's economy has faced two challenges: the global financial crisis and domestic political turmoil. Yet the administration's addressing these issues. The Prime Minister told Bartiromo "the administration is on the right track both in building national reconciliation and boosting economic revival, headed."
Heading to Pittsburgh for the G20, Vejjajiva will represent Southeast Asia nations at the Chairman of the ASEAN. Indonesia is the only other SEA country in the G20.
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The Dow 30 in Real TimeBehind the Scenes at the Clinton Global InitiativeThe CNBC Stock Blog
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Questions? Comments? Write toinvestoragenda@cnbc.com
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d71118100a8ec7bfc2b73560377078ef | https://www.cnbc.com/2009/09/28/too-late-to-buy-berkshire-hathaway-usa-today-evaluates-warren-buffetts-stock.html | Buffett Watch | Buffett Watch
"Is it too late for me to invest in Berkshire Hathaway class B shares since they have run up so much already?"
That's the question from a reader that USA Today's Matt Krantz tackles in his daily column this morning.
Berkshire's Class B shares ($3295 each this morning) are designed to sell for roughly 1/30th the price of Berkshire's flagship Class A shares ($100,400 each today.) That puts the purchase of at least a small number of shares within the reach of individual investors.
While Berkshire's B shares are up 43 percent from their closing low of the year of $2300 on March 5, Krantz notes their 3 percent gain for the year-to-date is underperforming the benchmark S&P's 16 percent advance.
Krantz writes, "The gap will take quite a rally in Berkshire to close. Clearly, Buffett has a solid long-term record, and may come racing back, but assuming that he can always beat the market isn't a safe assumption."
Krantz also looks at Berkshire using four of his usual tests:
Risk vs Reward .. PASS. Over time, Krantz says, Berkshire's high returns have made up for its "moderate" risk, which is 48 percent more than the S&P's long-term risk.Discounted Cash Flow .. NEUTRAL. Analysis shows Berkshire's "current stock price is roughly equal to what the company is expected to generate in cash over its lifetime," making it "fairly priced."Current Valuation vs. Historical Range .. FAIL. Krantz says that analysis puts Berkshire well into the "sell" range, a "red light for investors who believe the stock's valuation will remain close to historical averages."Financial Health .. NEUTRAL. Krantz uses his newspaper's Stock Meter, which gives Berkshire a "middling 3.3" rating on a scale of conservative (1) to aggressive (5).
His conclusion: While investors are historically gone very well with Berkshire and Buffett, the stock's "run this year ... has been disappointing" and "valuation isn't all that compelling" unless profits rebound strongly at Berkshire's subsidiaries.
"If you invest in Berkshire, you might want to heed the constant reminder issued by Buffett: Be patient. You might find yourself holding the stock for a while before you see why Buffett is so famous."
Current Berkshire stock prices:
Class A:
Class B:
For more Buffett Watch updates .
Email comments to buffettwatch@cnbc.com
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b205b7eacbf09c8d4b5f4d70aadcd1fd | https://www.cnbc.com/2009/09/28/trustee-plans-to-sue-madoff-family-members-for-198-million.html | Trustee Plans to Sue Madoff Family Members for $198 Million | Trustee Plans to Sue Madoff Family Members for $198 Million
Irving H. Picard, the court-appointed trustee hunting down any remaining spoils of Bernard L. Madoff’s giant Ponzi scheme, plans to sue Mr. Madoff’s two sons, his niece and his brother this week, seeking the return of $198 million.
Bernard L. MadoffCNBC.com
The lawsuits will accuse the four family members of breach of fiduciary duty and negligence, among other charges, Mr. Picard and his deputy, David J. Sheehan of the Baker Hostetler law firm, told CBS News’s “60 Minutes” in an interview on Sunday.
Mr. Madoff’s sons Mark and Andrew, his brother Peter and niece Shana all were executives with his firm and should have known about the $65 billion fraud that went on for more than 20 years, Mr. Sheehan said.
“Whether or not they have a criminal problem we will pursue them as far as we can pursue them,” Mr. Picard. “And if that leads to bankrupting them, then that’s what will happen.”
Both Mark and Andrew, who have maintained their innocence, are trying to get $90 million they say is owed to them by the their father’s company.
“If you were those sons and you knew today about where all that money came from, wouldn’t you be embarrassed to keep that money?” Mr. Sheehan said. “They should give it all back.”
The trustee and his lawyers have filed 13 suits seeking to recover about $15 billion, including one against Mr. Madoff’s wife, Ruth, and several claims against big investors who had funneled money to Madoff operations.
Asked whether they were working under the assumption that hidden money remained from the Ponzi scheme, Mr. Sheehan said: “Yes, we are.” Mr. Picard added, “We’d assume it’s millions and millions of dollars.”
Mr. Madoff confessed to one of the largest frauds in Wall Street history in December and is serving a 150-year prison sentence.
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b029710e025de57b1312463edf6a80f2 | https://www.cnbc.com/2009/09/28/us-coal-plant-first-to-use-carbon-capture-technology.html | US Coal Plant First to Use Carbon Capture Technology | US Coal Plant First to Use Carbon Capture Technology
The Mountaineer Power Plant in West Virginia has become the world’s first coal-fired power plant to capture some of the carbon dioxide it churns into the air and store it in the ground.
VIDEO0:0000:00US Coal Plant First to Use Carbon Capture Technology
“We are talking about cleaning what is currently one of the major problems in the environment,” Phillipe Joubert, president of France’s Alstom Power, told CNBC. Alstom Power is supplying the capture and storage technology for the plant, which is owned by American Electric Power.
The goal is to trap the CO2, a greenhouse gas, underground for thousands of years instead of letting it enter the atmosphere.
Given the radical nature of the technology, there are significant concerns about the unintended consequences of such below-ground storage, but Joubert sounded a reassuring note.
“We have been using this technology for years, and mostly the oil and gas companies have been using it, and this is absolutely a proven technology,” Joubert told CNBC.
More news from CNBC.com:
US Says Climate Bill Might Not Pass in TimeMaking Sense and Money Out of CarbonLook What's Next Door: A Carbon Neutral House
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3696b6736d1dab1cfc0e4f9c88dfb2c3 | https://www.cnbc.com/2009/09/28/why-i-hate-christmas.html | Why I Hate Christmas | Why I Hate Christmas
Christmas DecorationPhoto by: John Klekamp
The not-so-funny business of ruining holidays.
I used to love Christmas-the gift giving, the time with family, the chance to eat like a pig, and the solemnity of candlelight services on Christmas Eve celebrating God's humble entry into the world.
Now it just depresses me.
A friend sent me these photos taken this weekend at a Target in Union City, New Jersey.
Christmas DecorationPhoto by: John Klekamp
Three months before Christmas...THREE MONTHS...and they're selling decorations. This has to be a new record. Instead of making me want to purchase, I'm afraid it has the opposite effect. Call me a Scrooge, but this year, just like last, I think I'll donate money to charity instead of give presents. Yes, I'll get a tree, and we'll put up the same homemade decorations we've had for years, but I'm going to wait until the last minute to do it, and I'm not buying anything new.
Well, I'll buy some presents for the kids, who've already told me what they want: money. That's the spirit! Done!
Christmas DecorationPhoto by: John Klekamp
Questions? Comments? Funny Stories? Email
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12683d05f3229fff0e0c9b38e1728619 | https://www.cnbc.com/2009/09/28/why-isnt-oil-surging-on-mideast-tension.html | Oil rose nearly 2 percent above $67 a barrel on Monday largely due to growing tensions in the Middle East.
True that’s an increase, but it’s hardly the type of move you might expect after Iran test-fired a missile that could hit Israel and U.S. bases in the Gulf region.
Considering the country is the second-largest oil producer in the Middle East, what gives?
Although uncertainty over supply from the Middle East generally drives prices higher, current tensions with Iran are no match for the fundamentals of global oil demand, writes the Wall Street Journal (Traders) want to see recovering economies and recovery of demand before they're willing to take crude much over $70.
"Oil markets have been watching this soap opera since (Iranian President Mahmoud) Ahmadinejad introduced himself to the world stage in 2005," analysts led by Stephen Schork said in a report. "Every time the U.S., France and the U.K. have attempted to take a hard line with Tehran, their efforts were deflected by the Russians and Chinese." What's the trade?In the short term oil probably heads lower, muses Addison Armstrong of Tradition Energy. I expect bearish inventory numbers will push the price to about $64.
VIDEO0:0000:00Word on the Street
You can find our entire interview with Addison Armstrong at the end of the Word On The Street video.
______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to .
Trader disclosure: On Sept. 28th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Terranova Owns (F), (KCE), (SUN), ABT); Terranova Is Short (CCL), (ESS); Terranova Works For (VRTS); Grasso Owns (AAPL), (ABK), (BAC), (C), (COST), (CSCO), (PFE), (V), (WMT); J. Najarian Owns (AAPL), (ACI), (BAC), (BX), (GHL), (GS), (SF), (TTWO),, (WFC), (MU), (PXP); J. Najarian Is Short (V); J. Najarian Owns (RIMM) & (RIMM) Calls
For Steve GrassoStuart Frankel Owns (ACS)Stuart Frankel Owns (GERN) Stuart Frankel Owns (HSPO) Stuart Frankel Owns (MSFT) Stuart Frankel Owns (NWS.a) Stuart Frankel Owns (NYX) Stuart Frankel Owns (PFE) Stuart Frankel Owns (PDE) Stuart Frankel Owns (ROK) Stuart Frankel Owns (XOM) Stuart Frankel Owns (PFE) Stuart Frankel Owns (SDS) Stuart Frankel Is Short (QQQQ)
For Dennis GartmanGartman Owns Gold In Euros Gartman Owns 10-Year Bonds Gartman Owns (AAPL)
For Geoff PorgesA Member of Porges' Household Owns (VRTX) A Member of Porges' Household Owns (EXEL) Sanford Bernstein Owns (HGSI)Sanford Bernstein Owns (GILD)Sanford Bernstein Owns (AMGN) Sanford Bernstein Owns (CELG) Sanford Bernstein Owns (VRTX) Sanford Bernstein Makes A Market In (HGSI) Sanford Bernstein Makes A Market In (GILD) Sanford Bernstein Makes A Market In (GENZ) Sanford Bernstein Makes A Market In (BIIB) Sanford Bernstein Makes A Market In (AMGN) Sanford Bernstein Makes A Market In (CELG) Sanford Bernstein Makes A Market In (VRTX) CNBC.com with wires
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e576a769d73efab6a773d718c90048f9 | https://www.cnbc.com/2009/09/28/why-one-big-trader-is-grabbing-comcast-options.html | Why One Big Trader is Grabbing Comcast Options | Why One Big Trader is Grabbing Comcast Options
Comcast started rallying this month, and one large investor expects it to keep moving higher through January.
's tracking systems detected the purchase of 10,000 January 17.50 calls for $1.05 and the sale of an equal number of January 16 puts for $0.95. Volume exceeded open interest in the puts but not the calls.
___________________________CNBC/ Trading School:
Options Terminology: GlossaryBasic Strategies — with ExamplesOptions Basics: The ABCs
___________________________
CMCSA shares rose 1.38 percent to $16.92 in Monday afternoon trading. The cable stock is up 8 percent in the last month and is rebounding after finding support around the $16.60 level.
Today's options trade is designed to leverage small gains in the share price into big profits. It cost a net debit of just $0.10 per call contract purchased, meaning the investor will double his or her money for about every $0.10 that CMCSA climbs above $17.60 by expiration. Given the short position in the puts, it will lose money below $16.
Options Tips from Jon NajarianRead The CNBC Stock BlogOptions Tips from Pete Najarian
The next potential event that could serve as a catalyst for the shares is the release of third-quarter earnings before the bell on Nov. 4. CMCSA reported better-than-expected earnings and revenue the last time it reported on Aug. 6.
Overall options volume in the name was almost three times greater than average today.
___________________________Comcast Competes With:
Time Warner Cable
Cablevision
Verizon Communications
DirecTV
___________________________
___________________________
David Russell is a reporter and writer for .
___________________________
Disclaimer
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b48cc22be18b00fd612cbf1420276b4b | https://www.cnbc.com/2009/09/28/why-you-should-buy-these-solar-stocks-analysts.html | Why You Should Buy These Solar Stocks: Analysts | Why You Should Buy These Solar Stocks: Analysts
With the price of solar panels falling, industry watchers say now may be a good time for consumers to take a look at the technology.
VIDEO0:0000:00Time to Buy Solar Stocks?
Analysts Paul Clegg at Jeffries & Company and Vishal Shah of Barclays Capital shared their sector strategies and stock picks. (See their Buy, Sell and Hold calls, below.)
“We’ve seen a significant amount of [panel] supply coming online,” Shah told CNBC.
“I think there is going to be a more balanced supply-and-demand outlook for some of the low-cost solar manufacturers, but not for everyone.”
Shah said the falling price of solar panels will benefit solar stocks and has a positive outlook on the sector in the near-term.
China Investment Pro Picks a Solar StockYoshikami: Don't Miss the Other Emerging Markets!Oil vs. Gold: Which One Should You Buy?
Clegg, on the other hand, is more negative on the solar area.
“We’re still on the sell side,” he said. “We don’t agree that the capacity is absorbed. We think that there’s still a significant amount of overcapacity in the sector and we’d be concerned about the fact that a lot of the companies in this industry are pricing very aggressively.”
Clegg’s Recommendations:
"Buy" rating on MEMC Electronic Materials
"Hold" rating on First Solar and SunPower.
"Sell" rating on Suntech Power and Energy Conversion Devices.
Shah’s Recommendations:
"Buy" rating on Yingli Green Energy .
"Hold" rating on First Solar and Sun Power.
______________________________ Disclosures:
No immediate information was available for Clegg or Shah.
______________________________CNBC Slideshows:
The 10 Hottest Commodities of 2009
______________________________
______________________________
Disclaimer
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e1851b683e94f2d8d82d1e839daf9ef9 | https://www.cnbc.com/2009/09/28/window-dressing-which-stocks-may-be-oversold-or-overbought.html | The end of the third quarter on Wednesday may spark volatility as fund managers engage in what is known as "window dressing".
You might remember that Danielle Hughes of Divine Capital first suggested window dressing as a market influence on Fast Money’s Sept. 9th Halftime Report.
VIDEO0:0000:00Feel the Flow
If you’re not familiar with window dressing, it’s a strategy used by mutual fund and portfolio managers near the year or quarter end to improve the appearance of the portfolio/fund performance before presenting it to clients or shareholders, according to Investopedia.
In a nutshell money managers sell laggards in favor of outperformers to spruce up portfolios and make it look like their holding a lot of winners. Although that doesn’t increase profits, it makes your quarterly statement more appealing.
Following is a list of stocks that Steve Grasso suggests may be oversold or overbought as a result of window dressing.
QUARTER-END CLEAN UP: WHAT THEY'RE BUYING: GRASSO'S PICKS
Quarter-To-Date GE +43% Apple +31% Goldman Sachs +22% QUARTER-END CLEAN UP: WHAT THEY'RE SELLING:GRASSO'S PICKS
Quarter-To-Date IBM +16% Exxon FLAT Potash -1% What's the trade?I think the one mistake on this list is Exxon , muses Joe Terranova. As far as I'm concerned they have the best balance sheet in the world. And if you think the demand for energy will increase long-term, I'd be a buyer of this dip.
______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send your e-mail to .
Trader disclosure: On Sept. 28th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Terranova Owns (F), (KCE), (SUN), ABT); Terranova Is Short (CCL), (ESS); Terranova Works For (VRTS); Grasso Owns (AAPL), (ABK), (BAC), (C), (COST), (CSCO), (PFE), (V), (WMT); J. Najarian Owns (AAPL), (ACI), (BAC), (BX), (GHL), (GS), (SF), (TTWO),, (WFC), (MU), (PXP); J. Najarian Is Short (V); J. Najarian Owns (RIMM) & (RIMM) Calls
For Steve GrassoStuart Frankel Owns (ACS)Stuart Frankel Owns (GERN) Stuart Frankel Owns (HSPO) Stuart Frankel Owns (MSFT) Stuart Frankel Owns (NWS.a) Stuart Frankel Owns (NYX) Stuart Frankel Owns (PFE) Stuart Frankel Owns (PDE) Stuart Frankel Owns (ROK) Stuart Frankel Owns (XOM) Stuart Frankel Owns (PFE) Stuart Frankel Owns (SDS) Stuart Frankel Is Short (QQQQ)
For Dennis GartmanGartman Owns Gold In Euros Gartman Owns 10-Year Bonds Gartman Owns (AAPL)
For Geoff PorgesA Member of Porges' Household Owns (VRTX) A Member of Porges' Household Owns (EXEL) Sanford Bernstein Owns (HGSI)Sanford Bernstein Owns (GILD)Sanford Bernstein Owns (AMGN) Sanford Bernstein Owns (CELG) Sanford Bernstein Owns (VRTX) Sanford Bernstein Makes A Market In (HGSI) Sanford Bernstein Makes A Market In (GILD) Sanford Bernstein Makes A Market In (GENZ) Sanford Bernstein Makes A Market In (BIIB) Sanford Bernstein Makes A Market In (AMGN) Sanford Bernstein Makes A Market In (CELG) Sanford Bernstein Makes A Market In (VRTX)
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5a0a7460e0aa581a6d3aece9aff1d631 | https://www.cnbc.com/2009/09/28/your-first-move-for-tuesday-september-29th.html | Here’s our Fast Money Final Trade. Our gang gives you tomorrow’s best trades, right now.
Steve Grasso suggests long Costco .
Guy Adami prefers longRaymond James .
Joe Terranova likes long Ford .
VIDEO0:0000:00Fast Money Final Trades
Jon Najarian says Plains Exploration & Production is a buy.
Click here to see other Final Trade posts.
______________________________________________________Got something to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! Prefer to keep it between us? You can still send questions and comments to .
Trader disclosure: On Sept. 28th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Terranova Owns (F), (KCE), (SUN), ABT); Terranova Is Short (CCL), (ESS); Terranova Works For (VRTS); Grasso Owns (AAPL), (ABK), (BAC), (C), (COST), (CSCO), (PFE), (V), (WMT); J. Najarian Owns (AAPL), (ACI), (BAC), (BX), (GHL), (GS), (SF), (TTWO),, (WFC), (MU), (PXP); J. Najarian Is Short (V); J. Najarian Owns (RIMM) & (RIMM) Calls
For Steve GrassoStuart Frankel Owns (ACS)Stuart Frankel Owns (GERN) Stuart Frankel Owns (HSPO) Stuart Frankel Owns (MSFT) Stuart Frankel Owns (NWS.a) Stuart Frankel Owns (NYX) Stuart Frankel Owns (PFE) Stuart Frankel Owns (PDE) Stuart Frankel Owns (ROK) Stuart Frankel Owns (XOM) Stuart Frankel Owns (PFE) Stuart Frankel Owns (SDS) Stuart Frankel Is Short (QQQQ)
For Dennis GartmanGartman Owns Gold In Euros Gartman Owns 10-Year Bonds Gartman Owns (AAPL)
For Geoff PorgesA Member of Porges' Household Owns (VRTX) A Member of Porges' Household Owns (EXEL) Sanford Bernstein Owns (HGSI)Sanford Bernstein Owns (GILD)Sanford Bernstein Owns (AMGN) Sanford Bernstein Owns (CELG) Sanford Bernstein Owns (VRTX) Sanford Bernstein Makes A Market In (HGSI) Sanford Bernstein Makes A Market In (GILD) Sanford Bernstein Makes A Market In (GENZ) Sanford Bernstein Makes A Market In (BIIB) Sanford Bernstein Makes A Market In (AMGN) Sanford Bernstein Makes A Market In (CELG) Sanford Bernstein Makes A Market In (VRTX)
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ace45fa60decb3e264076290d0ee7bcc | https://www.cnbc.com/2009/09/29/3-hot-consumer-stocks-portfolio-manager.html | 3 Hot Consumer Stocks: Portfolio Manager | 3 Hot Consumer Stocks: Portfolio Manager
U.S. consumers are still strapped, but some consumer stocks are on the rise, said Ron Sloan, senior portfolio manager at AIM Charter Fund. He shared his best consumer-related picks with investors.
VIDEO0:0000:00Hot Consumer Stocks
“There are stocks that are consumer-related that you can make money in,” Sloan told CNBC.
“You have to find a niche somewhere, [where] the consumer doesn’t feel that it’s a discretionary item.”
He named three stocks that will stand out above the rest because they are “very financially conservative and generate a lot of cash.”
Sloan’s Picks:
Comcast—“It’s not just about basic cable—it’s about wireless, landlines, broadband connections—that’s one of the bullish things about the cable story,” Sloan said.
What Options Say About Comcast Now
H&R Block—“Tax changes—whether they are little, simplified, complex—the tax preparer business moves up,” he said. “I think there’s going to be more tax changes next year and that’s going to be very positive for the company.”
Hasbro—“The kicker on Hasbro is the GI Joe movie, as an example. They get a residual from that and there’s going to be more movies to follow,” he said. “In the meantime, it’s got the kind of basic SKUs that people, when they do buy toys, are going to buy.”
More CNBC Investor Intelligence:
5 Tech Stock Picks from Top AnalystsCharts: S&P May Hit 1,157 but Momentum Is Waning
______________________________ Disclosures:
Sloan’s firm owns shares of Comcast, H&R Block and Hasbro.
______________________________CNBC Slideshows:
Cost of Living: How Much For a T-Bone Steak?
______________________________
______________________________
Disclaimer
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f6703b7e707076bcac4edf89d7ace275 | https://www.cnbc.com/2009/09/29/among-the-new-features-in-cnn-iphone-app-a-price.html | Among The New Features in CNN iPhone App: a Price | Among The New Features in CNN iPhone App: a Price
CNN is coming out with an iPhone application Tuesday that has a feature few other news apps have tried: a price tag.
Apple iPhoneManuel Balce Ceneta
There's been a lot of talk this year about finally charging readers for news, especially on mobile devices, where media executives see a chance to condition consumers to handing over a few dollars for a constant stream of updates to their pocket. CNN is among the first big news outlets to give it a shot. Its app costs $1.99 to download.
The new app follows an announcement this month by News Corp.Chairman Rupert Murdoch that the company will start charging a subscription for access to The Wall Street Journal's mobile applications. It will cost $2 a week starting Oct. 24, or $1 when bundled with either a print or a Web site subscription (Subscribers of both print and online get the mobile app for free).
Even so, CNN is in relatively new territory as a provider of general interest news. Many in the industry are skeptical that readers will pay for much online beyond business and financial reporting —the kind of stuff that helps people make money. How CNN fares in selling its app on Apple iTunes store for the iPhone and the iPod Touch will be closely watched by other media companies as they struggle with the loss of advertising dollars to the Web.
So why does CNN think readers will pay for its iPhone app instead of choosing one of its myriad free competitors?
Simply put, CNN thinks its app is better.
"It really depends on the quality and nature of what you're putting into the market," said KC Estenson, general manager for CNN.com.
Among the high points of the CNN app: It offers the chance to essentially join the CNN reporting team. Readers are invited to submit their own photos and video clips to iReport, a feature CNN already uses on its Web site for gathering material from the public.
The app also has live video feeds for big breaking events. So if a plane crashes in the Hudson River, app users won't have to rush to the nearest TV screen for a live report but could just take out their phone.
It's customizable as well, providing alerts when news on a particular subject breaks. Users can select a local news option that augments CNN's reporting with newspaper stories collected by Topix, an Internet company majority owned by newspaper companies.
Overall, the app has a similar look to the CNN of television, with white lettering on a black background and prominent use of photos for a sleek feel.
Still, there is evidence many readers just won't budge from $0. The Associated Press, for instance, tried charging $2.99 for a BlackBerry application this year. The download rate was less than a tenth of what the app usually attracts, said Jane Seagrave, the AP's senior vice president for global product development. Since dropping the fee, the AP has seen its downloads soar, she said.
"There were too many others that were available on the market for free," Seagrave said. For now the AP is trying to generate revenue from the app by selling advertising on it. She would not disclose how much revenue the AP is getting from mobile phone apps.
CNN's Estenson sees potential in advertising as well, as long as the ads are as standout as the news content and "really looks good," he said.
But some news executives are fed up with waiting for the market for mobile ads to develop, suggesting more might be ready to follow CNN's lead.
USA Today's publisher, David Hunke, has expressed concern that news companies are making the same mistake as in the 1990s, when newspapers started setting up Web sites and giving out news for free. Advertising on the Web hasn't replaced what newspapers get from the printed product, as many thought it would. And now readers are used to finding free news online. News executives don't want to see the same thing happen on cell phones.
"There's a joke in the industry: Every year is the year of mobile advertising," Martin Nisenholtz, The New York Times' senior vice president for digital operations, said at an industry conference this summer. "For publishers to offer their content for free on the mobile platform forever, without getting paid very much money — I don't think it's going to be tenable."
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