tv On the Money With Maria Bartiromo CNBC June 16, 2013 7:30pm-8:01pm EDT
>> welcome to "on the money." the market, volume it comes back to stocks. how to deep your money safe? right now. the fight over immigration moves front? center. i'll talk to a former ceo who was himself an immigrant. he says washington's approach is all wrong, and his incredible success story could never happen today, and the next big thing in smartphones, googles new buy and mapping the industry.
here's what's making news. it was a wild week nor market. the dow jones industrial average had its first three-day losing streak of the year. after spiking for the ten year bond and big losses in japan that made investors nervous but things bounced back on thursday with a nearly 200-point game on this and hope the federal reserve will not slow down the bond-buying program. but the markets fell back again on friday. retail sales for the month of may were better than expected, rising .6%, and consumption contributes to gdp and makes up more than two-thirds of the u.s. economy. america is on track with the smallest deficit for five years. the -- a fall of more than 25%. a reason standard and poor's
raised the credit rating from negative to stable. a the software will he easier photo sharing and it's siri voice activation software. >> the dow losing streak, bond yields rising, worries about the federal reserve. what to do, stand pat? joining me right now, the chief investment officer, and jason, chief investment officer. thank you so much. so, rebecca, not like their there was change in sentiment this week. now we know the fed is going to stop at some point, but really, really volatile markets. up 200, down 200, then a big bounceback on thursday. were you surprised? >> a little bit. we all knew the day would come
butl the quantitative easing, the monetary policy in the u.s. and europe and japan, something there's no precedent for. so we knew there would be some sort of market reaction when the tone started to change, but this is bigger than most people expected. >> what does the world look like when the federal reserve does in fact make the announcement that the -- they're meeting next week, but what happens when in fact we know that the fed is not going to be buying the $85 billion in bond for the month. >> it depends on why. if it's not going to be buying the 58 million because real growth is getting better, that's not a problem. it's going to be associate width higher spanx the stock market in particular will deal with it. if it's because inflation is getting out of control, that would be a very different story, because that would suggest that interest rates have lost control and into be back up. the good thing is that inflation is coming down, and inflation expectations are also coming down. so, i am really quite bullish.
higher taxes and despite fiscal tightening, is showing amazing resiliency relatively speaking, retail sales have held up. consumer confidence has held up well, and that's coming with the effects from both the equity markets and housing, and i don't think either of those are going away quickly. >> i want to get your take on the economy, where the strength and weaknesses are. listen to jack welch, the former ceo oge said this week. >> things are not bad. this is not a -- it's a 2% economy, and not going to create enough jobs with this level of economy to get out of the sevens. >> so, 2% economy. do you think the market is ahead of itself, knowing that we're in a 2% growth? >> i don't think so. the phrase we've been using is tina. there is no alternative.
i also agree with rebecca you're not in a situation where you're going to be getting very high yield rate from bonds. the backup is a good reminder you can lose money, particularly in bond funds. so, it's a very strong environment, i think, very strong reminder that equities are very important part of the total return that investors are seeking. >> one of the good things he ó it not coming down quickeñ consumers doing well, businesses cautious, and we're in a global economy and a lot of u.s. companies today depend on sales joest assess. the u.s. is doing better but overseas, europe is still struggling with the recession, china's economy is growing, markets are face something pains right now, and even if the consumer is doing better, overseas still a little bit tricky, and that affects the corporate sector more the consumers. >> let talk about the fed, the meeting next week.
what are you expecting in. >> what i'm hoping to see is fed chairman bernanke trying to calm things down. he is not going to say, don't worry about it. they don't want the market to get too one-sided. so my hope is that he says, it is coming but it's going to come slowly, going to be gradual, and just calm the market down. that's the best case scenario for me and i think it's likely. >> i think rebecca is right. i think bernanke has been the most transparent central banker in a long time, and i think people -- there's a lot of people do what i do, try to make things complicated to make themselves useful, but he has given you the play book and is telling you, 6-1/2% unemployment rate is one of the markers they will be using. 2 1/2% inflation. until then, i think there's a lot of hand-wringing and nash
good nashing of death. >> are you bullish on the market? >> i am. i think that for the individual investor, we've been saying this for a long time, have to be very careful in bond funds. individual is one thing, but -- >> the first time in a while starting to lose money. >> the last two weeks was the biggest outflow since 2011 in bond funds. >> it's been a big win for the -- >> why are we so focused on japan? feels leak the u.s. is tracking japan tick by tick. i know the japanese market has not been investable in 20 years. this year, markets are up 80%. >> markets react to what is not priced and we have so used to japan doing nothing and what was not priced in is them actually succeeding. so when prime minister abe last fall, when he got into office,
start evidence launching three errors, monetary, renation, fiscal renation, and structural reform, people thought this is a big change. we didn't expect this. so the central bank of japan's balance sheets. so the money they're printing has gone just from april to today from 60 trillion yen to almost 75 trillion yen. >> in a month and a half? >> makes the fed look benign. it's extraordinary. so i think the market is paying attention to it because it wasn't expected. an extraordinary move, and japan is stale big economy in the world, so if they can get growth back that has positive trickle-down effects for all of us. >> good to see you both. thank you so very much. jason, rebecca. up next, the senate starts debate on an immigration reform bill that would provide a immigrants. i talk to a ceo who is an immigrant himself who says washington's approach is all
wrong. >> google changes the road for navigation and the smartphone wars. time to take a turn? we'll be back in a moment. we've been bringing people together. today, we'd like people to come together on something that concerns all of us. obesity. and as the nation's leading beverage company, we can play an important role. that includes continually providing more options. giving people easy ways to help make informed choices. and offering portion controlled versions of our most popular drinks. it also means working with our industry to voluntarily change what's offered in schools. but beating obesity will take continued action by all of us, based on one simple common sense fact... all calories count. and if you eat and drink more calories than you burn off,
>> this bill with provide a pathway to earned citizenship for the 11 million individuals in the country illegally. that pathway is arduous. it will take at least 13 years before the vast majority of these individuals are able to even apply for citizenship. >> president obama urging congress to pass the immigration reform bill, being debated on
the senate floor this week. a hot butn issue for hector ruiz. he used to cross the border to go to school here. and he rows to become the fearless ceo of amd and he is now known for his challenging its rival, intel in one of the largest antitrust suits ever. he details all of this fight in his incredible career in his new book "slingshot." >> one thing that has been important for me to understand, and i hope that the book explains that, is that fair competition is an incredible source of innovation, and if you take fairness out of it, you get incremental innovation, which is good but not great. but if you keep fair competition in play, it -- things can change an industry. and the whole premise of the book, a story about what happens when -- is not at play, and one
of the reasons to have -- people are struggling so much us because they were hurt as much as everyone was by not playing fair. >> that's a great analysis. we need a fair marketplace for the competition and innovation to thrive, actually. so, let me ask you about the competition in technology today. a lot of people expecting that laptops, pcs, are on their way out. we see what's going on with dell, the mobility trend overtaking the pc trend, with everybody wanting devices. what does that do for the chipmakers? >> i think we're going to see a shift of value creation in chipmakers, and probably a good example is in the last two years there has been this sea change towards mobility, what people want things they can carry with them. and so what that did is shifted the opportunity to a company in taiwan called tsnc, manufacturing company, because they are the only ones that are
making the products used in most mobile products. if you look at their market value, it's almost the same as intel market value, and just happened in the last two years, which means there's a shift in value being created, due to the shift in mobility. >> i want to talk abouture story. you have an amazing story. you're from mexico and you used to cross the border after day as child to go to school in the united states. tell bus that. >> first of all i was so fortunate to live on a border where the american side of the border was so enlightened. frankly they invited mexican students to come across and go to school. probably wouldn't final that today. but i was very fortunate to do that, and they allowed me to do that, and i was thrilled to have that opportunity, so, you can imagine as a child, a young teenager, going across, it was
phenomenal and aim grateful the people that made that possible. >> let me ask you about the there's a new bill in the senate to provide provisional legal status to up authorized illegal immigrants. this plan will take immigrants 13 years before they can apply for citizenship. right now it takes two to four years. is this the right approach? >> no. it's terribly unfair for the 11 million people here already, that the vast majority of them are paying taxes, obeying the laws, and if you think about the fact they're going to pay a fine, they're gene to spend ten years on probation and then three years more before they get a chance to do that, you have to think of a very serious crime for somebody that can commit to have to pay that kind of fine. so i think it's unfair situation. >> i think you're not alone in that. let me ask you about this proposal raise the cap on h-1b stresss, temporary visas do we need to raise the cap? do you find you can find the
skill sets required in workers when you're looking for employees? >> i think the challenge we have -- i'm probably the only one in silicon valley who does not agree with the h-1b visas. i think it's shortsighted. we have hundreds of thousands of engineers here that need to be repurposed and it will take investment on the industry. certainly bill gates and markxk zuckerberg show you don't knee a degree to be successful. we can do a lot with what we have here so i'm not sure that portion of the bill is -- >> i guess there is a real debate on that. hector, great to have you on the programful thank program. thank you so much. >> up next, what is the best way to get where you're going? and you can find us an facebook.
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>> you don't need a treasure map to find the prize in the technology industry. location, location, location, google agreeing to pay a billion dollars for waze, proving that navigation is a major target in the smartphone wars. joining me now isc joe brown. good to have you on the program. let's talk about the deal of the week. what is waze, why is mapping
such a hot target? >> waze is a real-time mapping service. the kind of thing that shows you, don't again on the george washington bridge, it's jammed up. and it does it with an active community of 50 million users who, according to waze, submit almost a billion reports a month and these reports say things like, heavy traffic, accident, a speed trap. google is interesting in getting this engagement from their users because it's different from the way you use google maps. google wantsñrzou to love its products so they can advertise o you, and talking about mobile advertisement, the big deal you want identity and you want location, because if it knows who you are, how old you are, what gender you are, and where you are, it can target effectively. >> that's the user experience like on these different applications? for example, the new york stock change city corner of wall street and broad. what does finding the nysc look
for on google maps and appear -- apple maps. >> when you send a report, you get points. your icon has a cute little cloud looking guy and that's different from the stark utilitarian droplets you see on google maps and apple maps. when you're navigating towards the nysc, for example, it will show you more of a 3d perfect. >> the drivers talk to each other, and that data is all very important information, and it's creating a whole registry. >> yeah. basically if i'm google and i see you're actually talking to my application, i know you're engaged and i know if i put an ad for, say, dunkin' donuts that is on your way, you'll see it. >> a lot of discussion about privacy in light of how technology is used. how are companies balancing
protecting this information? the bottom line is, you can be tracked anywhere you go. first because you have easy pass, and they now where you were, now you have a phone in your pocket and we can locate where you are in a nano second. >> if you use google you're being tracked and you agreed to be tracked. you're being advertised against based on who you are. the google services are read your e-mails. you know that because when you send an e-mail to your aunt on a rug you get advertisements about a rug on the e-mail program. >> that's scary. >> google -- g-mail is not free. you don't pay for facebook but it's not free. you're trading your identity and some manner of your privacy in order to use these services you enjoy, and it's not the nasalissenning but -- i suppose
to do to stay healthy. >> qualm come has been riding the wave of mobility. they make all the chips and yet they're backing a clinical trial where you inject a substance into your blood stream and it will alert you, you need to good to the doctor, you're about to have a heart attack. is that the growth that is to come for smart phones? and is it going to be bigger? >> that's hard to pin down. the reality is the smartphone, despite whatever app you have or whatever operating system, the core is a very powerful computer you can really bend to whatever purpose you want, and that is --
that's what the smart phone -- what the healthcare companies can take advantage of now. so the flexibility it offers with the touch screens opens up more possibilities. >> joe, great to have you on the program. joe brown of wired. check out my op-ed, let me in the what you think. up next, a look at the news for the upcoming week. think your job is boring? a bank employee catching a few zs at the office made a $600 million mistake.
>> check out the web site, otm.cnbc.com. follow me on twitter and google. looking at the stories coming up in the week ahead that may impact the markets and your money. a few companies reporting earnings, including fedex, and adobe systems, reporting this week. monday, world leaders gather in northern ireland for the g8 submit, and then the consumer price index will be out, and housing starts for the month, and the big story of the week, happens on tuesday, the two-day meeting on monetary policy. chairman bernanke's news conference is on wednesday. on thursday, existing home sales are due out for the month of day. >> a wakeup call for sleepy desk job yes. a german bank employee fell asleep on his keyboard while
making a transfer from the account of a retire pensioner. with his finger on the number 2 key he accidently withdrew 220 million euros, $295 million. the bank corrected the error but a german court ruled that both the man and his supervisor, who verified the transsection, be reinstated in their jobs. still, one very expensive nap. that does it for us today. thank you so much for joining us. my guest next week, saha, beyond. keep it right here each week. have a great week, and happy father's day to all you dads out there. have a great day. we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s.