Skip to main content

tv   Power Lunch  CNBC  May 9, 2014 1:00pm-2:01pm EDT

1:00 pm
i think this has been thrown in with the momentum group. it's actually a good valuation, growing business. >> what about you, pete? >> you know, i still love these airlines. every time i turn around, i shake my head. i should be in delta. i think it goes higher. >> target. the anti-josh brown train. >> twitter. have a agreed weekend. "power lunch" starts now. ? apple apparently gearing up. cnbc has confirmed that apple is in talks to make a play for the music company beats for more than $3 billion. the rapper, dr. drea, one of the men behind beats, but what is the company? and is it really a good fit for apple? apples and beets great on salads with walnuts, but we'll explore.
1:01 pm
we'll take a look at all of those and more, and sell in may, go away. you know the saying. how is that old saying holding up? we're going to focus on value over growth. first, sue? got your beats, sue? >> i do. i like that. for more than $3 billion, but what is beats, and what is behind? why does apple want to make this acquisition in this space and with this company? morgan brennan is live at an apples store for us.
1:02 pm
so beats electronics was founded in 2008, essentially two businesses under one umbrella. the flashy high-end ear phones that actually retail in apple stores already, and actually already enjoy their own display table. the second is a music streaming platform, similar to pandora or spot i fill that just launched in january beats pulled in a reported 1.3 billion last year, but this deal may be mostly about the brand, the brand of the cofounders there's celebrity dr. dre, namesake of the -- who could become hip-hop's richest
1:03 pm
man, but also the cofounder. as part of this deal, he is reportedly in talk to joins apple's team in a creative role. they have a number of minority stakeholders. access industries. source telling me this deal is not finalized, but if it does go through we could be getting an official announcement as soon as next week. in the meantime i'm going to test drive these bright headphones. >> how nice of you to color coordinate it with your coat, my dear. wardrobe would be so happy. >> very stylish. >> jon fortt, why does apple want this particular company? does it signal somewhat of a culled real shift for the company, to be going into this particular area? >> i really don't know why they want it. there is a third piece i which i might be the most interesting.
1:04 pm
that's topspin, basically a way for artists and labels to connect directly with their audience. but taking a step back, i remember sitting down with jimmy and dr. dre, just after they were expanding their business into cheaper headphones, and licensing the al go rhythm, their technology in hardware that made it sound the way they do to hewlett-packard. the idea was it would be in laptops, better sound. >> you customize it, right? >> it sounds better with certain times of music. so the bare cas-- bear case, th con case, is they are -- they are style in. apple would be getting into this
1:05 pm
for a brand less valuable. it's not clear that it brings in a demographic that apple doesn't have already. >> what do they get in terms of customers? yeah. >> the pro case is, is this cheap? they could do it very easily, but its a shift in focus, apple has never acquired a brand, particularly a hardware brand, this way before. >> thank you f. jon. dominic chu has a market flash. >> check out what's happening with oracle, after a u.s. appeals court rule that the company is entitled to copyright protection in a lawsuit against google. the issue is being closely watched. >> oracle had sued google, claiming that google had improperly incorporated that language into android operating systems. shares sup nearly -- meanwhile,
1:06 pm
google shares up as well. all right. thank you very much, dom. we were just talking with bob pisani about the fact from the time of left headquarters to the time i got down here, we had a nice pop in this market. not an extreme one, but a nice lift. >> take a look at the dow, 30, 40 appoints into positive territory. yields moved up. that may have been a factor. i just want to show you, the discussions about internet stocks, here's the enter net sector this year, that white line. there's the s&p 500. this is what the bubble we're talking about in the momentum stocks. this is at the story that's been plays out for readily the last six weeks or so. there are internet stocks -- for the first three month of the year. 29, purpose, that broke the --
1:07 pm
there were -- shutter stock. they gave disappoints guidance. bank rate was out on wednesday, but you see it's down today, and rack space near a four-year low. digital hosting service. gap, talk about some upbeat profits, and gap did it again here. how bad was the winter? beacon roofings. they put them all over the -- it was a terrible quarter for them. despite the horrible miss, stock is on the up side right now. hilton had just outstanding number. right across the board they raised their guidance. so mixed records, but we're
1:08 pm
still seeing internet stocks get hit. watch rocket feels. >> see you a bit later at post 9. ty, up to you. how they stick into the old saying sell in may and go away. take a look at the major averages this week. down more than 2%, the russell 2000 off about 10% from the recent high. there are three stocks, i guess that was airline stocks. so where are the value plays? dom any chu knows. >> seema? >> that's right, tyler. there are some bright spots. stocks that have bucked the trend.
1:09 pm
delta southwest and that that, all up better than 25% so far this year. these stocks could continue to rally. within the energy space. energy stocks in general are benefiting from the expectation that exports will steadily increase over time. lastly nasdaq down 3% this year, but sandisk, companies in the semiconnector space have seen upbeat demand. avago stands to benefit from the launch -- and now important to note if they stocks continue to rally, at some point valuation may become a concern for investors. now to dom who's been
1:10 pm
looking at rising stocks that are still cheap. that sounds like a good recipe. >> my old boss used to say you like buying growth as a reasonable price. yet are still showing signs. so think momentum meets value. we've got three games here. first solar, a company that does solar panels, chips, that sort of thing. believe it or not, one of these hot companies, first solar trades at just 16 times earnings on a trailing 12-month basis, of course, the last 12 months, and is up 19% so far in year. a solar company, a possible momentum stock, but still trade at a relatively reasonable, garmin, we don't talk about it a lot anymore, but in the heyday, this used to be in gps systems, again, garmin trades at just 17 times earnings, but remarkably, the stock, and you may not have
1:11 pm
noticed it, has gone up about 22% just so far in 2014 alone. upside momentum, price action yet trades at a reasonable -- we don't talk about this one a lot. trinity makes rail cars. so, yeah, you think of the cargo containers, oil containers, anything that goes on the rails, they help make. so they about them as a possible leading dater to even a leading indicator like transportation. so below the market, yet is up 46% just so far this year. >> not in a fashionable industry. >> not at all. >> probably penalized for it. >> not sexy at all. it's up 46% so far this year, so an interesting way to look at some of these. some professionals like to put factors together, value on one hasn't, growth on another. >> dom any, thank you very much. thank you, gentlemen.
1:12 pm
given what was just laid out, where can investors find value? jim manage donald is here with me. from northern trust. carmine, jim, i'm going to start with you. we have seen the rotation going probably the last few months or so. do you still find value? i know you like then, but is it getting harder or easy? >> it actually hasn't changed that much year to date, in that we seen just big rotation out of the momentum-oriented stocks. we think this kind of churning will probably go on for the next quarter or two until we have clear evidence about the reacceleration of the u.s. economy. so we still think there's acceptable value. >> carmine, do you agree with that? >> basically, yes.
1:13 pm
we've seen a market so far this year, interest rates having falling there's no question in my mind that you'll see a progression coming into the year. and m & a activity is soaring. between repurchases and m & as that will be concluded with debt or cash. so it's a powerful phenomenon that i think investors should take advantage of. >> i nour you're look -- maybe more bullish? >> yeah, that's more optimistic. i think there's got to be better evidence that they can break out of this growth based. >> we're seeing some positive signs, but the housing market is going nowhere fast. so we're not that excited about the upside potential. >> carmine, tell me what you they the bond mark is saying.
1:14 pm
you mentioned falling interest raids, yet at the same time you expect the stock market to move smardly higher. the big conundrum is which mavgt has it right, equities or the bond market? actuali it's basic the same ware -- just before qe 1, 2 and 3, interest rates fell and started to rise after the fed implement implement implement implemented ke 1, 2 and 3. interest rate rose in anticipation, and once -- on the taper, rates actually started to fall. much more importantly here, the fed -- when the fed started to taper back last year, the federal deficit was running somewhere over a trillion dollars. today it's running at half that pace. and neither -- take the entire
1:15 pm
purchases of debt -- treasury securities, that's basically been offset by the decline in the deficit. so the environment has clearly improved here, especially for interest rates. and i think think move lower. >> we have to leave it there, but jim quickly you like high-yield debt? >> so high yield is a good example of the canary that's not getting woozy. we think that the spread tightness is adjust and likely to freep reasonable returns going forward. >> thank you, gentlemen. our jon fortt laying out why apple may want to buy beats, but is it a good move? would buying a company like spotify make a better decision or are other stocks worth buying right now? some people look at those gains on a percentage basis. they think about tires.
1:16 pm
and what they've been through lately. polar vortexes, road construction, and gaping potholes. so with all that behind you, you might want to make sure you're safe and in control. ford technicians are ready to find the right tires for your vehicle. get up to $120 in mail-in rebates on four select tires when you use the ford service credit card at the big tire event. see what the ford experts think about your tires. at your ford dealer.
1:17 pm
what is this place?
1:18 pm
where are we? this is where we bring together reliably fast internet and the best in entertainment. we call it the x1 entertainment operating system. it looks like the future! we must have encountered a temporal vortex. further analytics are necessary. beam us up. ♪ that's my phone. hey. [ female announcer ] the x1 entertainment operating system. only from xfinity. tv and internet together like never before. . check out what's happening with deckers with an outperform rati rating, saying the focus sneaker brand gained, deckers knowing for uggs boots, up about 3% on the day. cnbc has confirmed that apple is in talks to buy the
1:19 pm
headphone maker beats electronics. that would be apple's biggest acquisition, but will this deal be a hit with consumers? we have cnbc technology contributor natalie moreries and kafka. what do you say here, natalie? is this a great parlay for consumers? >> that's the question. a lot of times when we see these big acquisitions, the acquiring company says we'll leave them alone, we're not going to disrupt their culture. apple doesn't do that. it takes the whole enchilada, so it will be interesting to see what they do with this, not only the streaming service, but also the hardware. >> would that be a marriage made in heaven? >> it's a couple different things, i think johnny will touch the actual product. the other question is, what did
1:20 pm
edd eddie q do? a lot of teem are interested in the idea of subscription music, but not really mainstream right now. that's why it did a deal with apple just last month to sell subscriptions through the apple store. apple obviously has a lot -- >> my theory here, peter and natalie, is what they'll do is sort of the cell phone and contract deal. you buy a two-year contract to buy -- to subscribe to music through appearing, they will throw in heavily discounted beats headphones for you. and that would be the formula. is this a tacit admission that the era of downloading, of itunes as a music platform is ebbing or maybe even over? >> we've already seen the writing on the wall there. this is the first time in years we've seen a decline in digital download, so i think they want to absorb not only the software, but also the deals, because
1:21 pm
they're a bit behind in making those deals. steve jobs never wanted to do streaming -- >> that won't help. that said the label -- there's some debate about that, but from the people i've talked to they'll happy to do it, but the deals don't carry over. >> what about apple do about the audio quality of beats headphones? they're not necessarily regarded as much more than a fashion item. they're good headphones >> yeah, a lot of people are buying them right now, whether or not the audio philes are lauding them. >> just a reminder cnbc's parent nbc universal has a minority interest in rerecode. putting the other music players in the spotlight, so should you get into these stocks
1:22 pm
right now? how to play it? plus if you're playing the commodities market, you need to watch this new report very closely, right, jane wells? >> sue, it's looking good if you buy groceries, knolls so good if you're long on the markets. we're going to talk about the very first estimates from the usda on corn, wheat, soy beans and meat, after the break. that's keeping you from the healthcare you deserve. but if healthcare changes, if it becomes simpler... if frustration and paperwork decrease... if grandparents get to live at home instead of in a home... the gap begins to close. so let's simplify things. let's close the gap between people and care.
1:23 pm
constipated? .yea dulcolax tablets can cause cramps but not phillips. it has magnesium and works more naturally than stimulant laxatives. for gentle cramp free relief of occasional constipation that works! mmm mmm live the regular life.
1:24 pm
can you start tomorrow? yes sir. alright. let's share the news tomorrow. today we failrly busy. tomorrow we're booked solid. we close on the house tomorrow. i want one of these opened up. because tomorow we go live... it's a day full of promise. and often, that day arrives by train. big day today? even bigger one tomorrow. when csx trains move forward, so does the rest of the economy. csx. how tomorrow moves. it is time for "power lunch"
1:25 pm
countdown. joining mess jim iuorio and jeff kilberg. good to see you guys. do you buy, sell or hold some of the major players in the music space? jim, what do you do? >> first, we've got to remember the $3 billion, that's the equivalent of couch cushion change for apple. it protect doesn't affect their stock price either, but it's two issues. yes, they are buying cool, but they used to innovate cool, but they're buying cool. it's probably a wash. you go to the broader pictures, i still like apple. >> i'm rockin' the beats on air right now, sue. yes, arguably they paid more than they should have, but think about, they are getting a branch, a segue into chrysler. chrysler already has dodge and fiat, so now their hat is getting handed to them. now they have a foot in there.
1:26 pm
>> that's an interesting perspective. >> we talked about buying it before earnings, an excellent run-up. wait for lower price, but long term apple is going to crush it. >> skullcandy, what do you think? >> skullcandy is rallies, the market is misinterpreting this. the story is not about headsets. skullcandy does not look good to me. this story is about streaming. i wouldn't do nick -- >> i disagree, jimmy. >> if i had a gun to my head, i would sell it. >> i disagree. i think it's cool skullcandy i think is interior to the beats, but someone will buy them and they'll go higher. i they people are trying to get into the younger stream, and skullcandy is one tier lower. jeff, i'm going to start with you, google? >> yeah, google, i want to sell short term. i think what google is doing is a phenomenal company, but i think right now it's had a great year. three years up 100%, so we have
1:27 pm
to will et it come back a bit. >> google is caught in the headwind of the big risk-off -- >> yes, very susceptible. >> in the nasdaq futures settle back about 3560, to me that means this should be over and i would buy it then. this one for you, jim, sirius/xm. >> i wouldn't -- no, sirius/xm, if it traded above 3.25, i think it had a bottoming pattern, but it's got to settle above 3.25. >> >> pandora for you, jim? >> i do like sirius. but fast forward to pandora. i think it's an buy, an acquisition target, you're seeing folks slowly starting to spend money. >> all right. thanks, guys, have a great weekend. >> you two. dominic chu, dom?
1:28 pm
>> check out the maker of viking up ends. you can see the stock is down about 6.5%, but over the course of the past year, it's gained about 54%, investors thinking now maybe the time to take a few of those profits still a focus. tyler, back over to you. >> it's interesting to learn that viking oven -- >> the gold there, up about 30 cents at 1288 per ounce, basically unchanged, folks. silver a bit lower, copper higher by about 0.7%. palladium down, and platinum at 1461, down 1.40 or about one tenth of 1%. seema mody following the big movers. >> hey, tyler, we are seeing a bit of a comeback on this friday afternoon, the nasdaq up about six to seven points, though keep in mind the nasdaq down about 1.5% on the week. we've seen a lot of volatility
1:29 pm
in the so-called momentum stocks, valuation being the big concern there, but at least for today, we're seeing a rebound in a lot of the social media names, plus tesla shares higher, so a lot of focus on the momos. the focus being the -- acquisition -- dollar acquisition of beats, which would be the biggest acquisition in apple's history, a venture capital source telling me you're starting to see more acsises, for example, facebook buying oculus and google buying nest. you know, reversion is the expression used on this trading floor. that means things that stretched a bit, well, are coming back in. is is it a weekend? does it just mean people are
1:30 pm
taking the breather? i don't know, but it's pretty compelling. yes, these yields are a bit lower. remember that horrible auction yesterday, these yields are higher. spreads we talked about all year how they've been flattening. the combination of 5s and 30s, two days of steepening. dollar index has been spongy. two days of up side, mostly because many people and investors selling the euros, so i'm not sure if if we're going to see this on monday, but at least for today, what was got for the last several weeks isn't good to today. sue, back to you. >> rick, thank you very much. you're up to date on the interest rate scenario right now. if you're a commodities analyst or trader, or you invest in ags, this is a must watch report. hi, jane. >> our if you eat food, sue, this is the first estimate for the years, potential good news
1:31 pm
for your grocery bill. it looks lie the days of $8 a bushel corn are gone. if you look at corn today the first look at projections for the year's projections. much higher than consensus, and higher than expected ending stocks. what's the average price going to be in expecting 385, 45 a bushel. that's potential as much as nearly a dollar less than this year, and global corn supplies week roundiful with the end of the year projected to have the largest supply in 15 years. soy bean prices, supplies also expected to more than double this year. they're up even though it looks like it's bearish, ending stocks at 330 million bushes. the average price possibly back down into single digit range, 975 to 1175 a bushel. wheat more of a mixed picture. winter wheat product expected to be down 9%, but wheat prices
1:32 pm
down as it also looks like consumption will fall, partly because livestock can switch back to corn and beef and there's also less livestock as herds recover from the drought. it looks good for consumers. farmers may not get the pricing they had, be they will have plenty of product, but it's cautioned these are highly tentative. as a planting season is still very early and rains have delayed much of it. back to you. >> jane, thank you very much. it is the most expense i have been real estate market in the entire country. josh lipton live for us in atherton, california. josh? >> yeah, this is where $10 million mansions, they sell within days, home to the bay area's elite. eric schmitt, meg whitman, charles schwab. i'll have the details when "power lunch" returns.
1:33 pm
requires precision and anattention to detail.g it takes knowledge, hard work and a plan. at baird, we approach your wealth management strategy that same way. as an employee owned firm we have the freedom and resources to create customized financial plans built to last, from generation to generation. we'll listen. we'll talk. we'll plan. baird. today is friday today, we greet you.
1:34 pm
treat you. care for you. today, you can come to cleveland clinic for anything, everything or just to get that "thing" checked out. big, small, and yes, the best heart care in the nation. it's here everyday, for everyone. that's the power the power, that's the power of today. cleveland clinic. call today, for an appointment today.
1:35 pm
look who's here. >> wee trying to figure out a direction. take a look at the dow jones
1:36 pm
industrial average. we did move into positive territory sometime in the middle of the day. i've been emphasizing the whole battle of the momentum stocks versus the broader s&p 500. take a look at -- this is x-net. these all these momentum stocks, about 100 of them in there. there's your white line, so the big move up, and now all the way to the down side to the s&p 500, see how stable also and how unstable those momentum names are? internet gainers are you will all over the place. groupon is finally bouncing. it went down for two months in a row. boingo there, that's the wireless has stabilized around $5. pandora went down, sue, it's $40. look. it's 22 now. finally stabilizing a bit here.
1:37 pm
we've been talking about rocket fuel after missed analyst revenue guidance. that's 27% down in the day. this stock went public at $29. not very long ago back in september shutter stock gave poor guidance, but not stabilizing. >> absolutely. a lot of volatility. thank you, bob. have a good weekend. love to mom. >> i will. ty, up to you. >> thank you. it's called by some of the chike-onomy, showing that. >> can't be stopped. what seems unstoppable is the leaders of tomorrow will be women more than men. the question is how companies will respond, especially with the controversial issue of maternity leave?
1:38 pm
under the age of 35, the figures reversed, 40% of younger women have graduated college, compared -- this means employers when looking for the best talent will be choosing from a larger pool of women. white hou this from this morning. >> students today say when they go and interview with employers, the employers that talk to them about how to balance their job with their families are the ones they're most attracted to. women are already telling us they are choosing their employers willing to make these change. >> according to the national partnership for women and families, the u.s. is one of only 8 of 181 in the world with no mandated paid maternity leave form the national partnership is an advocacy group for such a law. the u.s. family medical leave act passed in 1994 gives 12 weeks of unpaid maternity leave, but only 60% of workers have
1:39 pm
access to it because of the restrictions in the law. google, among the companies finding it pays off. when they change the maternity leave in 2007, they cut the attrition rate. they extended some paid maternity leave benefits to men this year. in a statement to cnbc, google saying it looked into the attrition data and found there was a new mom problem. women who had recently given birth were twicely likely to leave, flex flexibility was the key. some argue the marketplace will make these changes. given the growing trend of educating women, that seems almost certain, but some ceos tell me national maternity law would be preferable and cheaper to administration than 50 state laws, so there's an argument for that. i just would say, you know, there are things we can do for women in this country beyond given them chocolate-covered strawberries and roses, though good things. >> sue, down to you.
1:40 pm
>> thank you, gentlemen, very much. mansion madness. it is now the most expensive real estate market in america, and it is a beautiful neighborhood. josh lipton is live in atherton, california. >> yeah, here in atherton, mansions sell for more than $10 million. in fact the average home price is up about 40% year over year. brokers say last year there was a buys frenzy for homes in the $5 million range. that demand, they say, has pushed buyers into the ultra-high end. just the first-quarter alone there were seven sales in excess of $10 million. why the increase? because atherton is in the heart of silicon valley, which is thriving. >> we have a market here with high demand/low summer. of course, we are the center of technology, the tech sector is doing well, everybody that drives the tech sector, the local commission, the venture
1:41 pm
capital, private equity we're just the center of innovation here. so that more than anything drives our housing market. >> there are many exclusive communities for the elite in silicon valley, but brothers say atherton is the most sought-after location. buyers are moving fast. they say the two biggest groups are tech titans and chinese investors, though they say they want different kinds of homes. >> my chinese buyers, they like grand. they want to entertain, showcase they've maid it. my tech buyers are almost the opposite. they like their privacy, they like a beautiful home, but much more low key, much more family friendly. >> atherton brokers say their buyers pay for their homes often in cash. some investors from china will actually pay for a mansion sight unseen. deleon is on track to do $500 million in sales this year, actually even buying a plane to he can show chinese and indian
1:42 pm
buyers the beautiful views they might be buying into. the real estate market goes up and down all around the country, but here it's only going up. guys, back to you. >> thank you, josh. >> the "forbes" list just changed. hey, it came out like two weeks ago. they need to update the "forbes" list [ bleep ] it just changed. >> in a big way. >> it's not a done deal yet. but dr. dre is celebrating something. would app.le acquisition put him into the billionaires' club? when we come back. then we gave each person a ribbon to show how many years that amount might last. i was trying to, like, pull it a little further. [ woman ] got me to 70 years old. i'm going to have to rethink this thing. it's hard to imagine how much we'll need for a retirement that could last 30 years or more. so maybe we need to approach things differently, if we want to be ready for a longer retirement.
1:43 pm
♪ woman: welcome to learning. spanish in the car.c on. passenger: you've got to be kidding me. driver: this is good. woman: vamanos. driver & passenger: vamanos. woman: gracias. driver & passenger: gracias. passenger: trece horas en el carro sin parar y no traes musica. driver: mira entra y comprame unas papitas. vo: get up to 795 miles per tank in the tdi clean diesel. the volkswagen passat. recipient of the j.d. power appeal award, two years in a row.
1:44 pm
ameriprise asked people a simple question: can you keep your lifestyle in retirement? i don't want to think about the alternative. i don't even know how to answer that. i mean, no one knows how long their money is going to last. i try not to worry, but you worry. what happens when your paychecks stop? because everyone has retirement questions. ameriprise created the exclusive confident retirement approach. to get the real answers you need. start building your confident retirement today. our first topic, is this an early celebration? take a look at this. >> the "forbes" list just changed. baby, hey, it came out like two weeks ago. they need to update the "forbes"
1:45 pm
list [ bleep ] it just changed. >> in a big way. >> oh, my. >> first billionaire in hip-hop right here on the west coast. believe me. in the video, they appear to celebrate the whopping 3.2 billion deal that apple is in to, apparently, to buy dr. dre's headphone maker beats. does this put him in the billionaire club. s i guess it does, right? >> not quite. it's around $800 million. look, he is super rich. more importantly, he is now a crowning example of the great american degree. for a kid from compton to get big in the music business, sell it for $3 billion, that's going to inspire so many great entrepreneur, that's his great gift, whether a billionaire or not? >> did he jump the gun here? >> first of all, if you were going to get that kind of
1:46 pm
payday, i might have trouble containing myself about how much money, but we don't know if it's a done deal, but i think you're absolutely right. dr. dre, i listened to that guy's music when i was growing up. he became a huge producer, and now he's getting into hardware and consumer goods and making it there. he's pretty much had the trifecta in the industry, so yeah, maybe it's hard to contain the excitement. before we move to the second topic, in today's yahoo's topic, we asked, is this a right move in. 51% say no, it should focus on its own products. all right. moving on. new memoir, timothy geithner said he considered stepping down back in 2010 and suggested hillary clinton as a possible successor. he's got a book coming up, a great title "stress test." robert frank, what do we know about geithner and this recommendation to the president? >> what's interesting to read
1:47 pm
andrew sorkin's article in the times, and excerpts from the book, he tried to resign so many times, he was just trying to find anyone around him who the president might accept as a replacement. at some point heside jack lew, and then what about hillary? he was just throwing names in there. i don't know whether to believe it or not, but it sounds like he really wanted to resign many times since 201. >> what's interesting to me, it's no surprise to washington insiders, the circles that they people run in are extremely small. >> yeah. >> the same names keep on coming up over and over and over again, regardless of position, whether state, treasury or otherwise. so it will be interesting to see how many of those names have come up in other books. >> and hillary clinton already had the job. andrew ross sorkin will sit
1:48 pm
down with mr. geithner this monday morning on "squawk box", author of requests stress test" kehl a.m., eastern time. and maher relievi -- mar reese levi, love on the rocks. let's take a listen. >> one of the principles was that there would be equality in the management team. this has not been the case in the proposal to cup. i was going back and forth to try to convince them we should have equality. >> -- it works for france. >> it works for france, doesn't work for corporations. i mean, this is just not the way companies work. i know he wanted the european commission of bullup, france --
1:49 pm
if he was in charge, he should have had his picks. >> i remember when there were a day of mergers of equals, these days someone has to be in control and it led to a botched deal. >> gentlemen, have a good weekend. coming up, fame joe bastianich is in the house part of a new primetime reality series that will air this summer. his take on the economy, plus advice on entrepreneurs who want to get into the restaurant and food business. that's straight ahead when "power lunch" returns. sfx: car unlock beep.
1:50 pm
vo: david's heart attack didn't come with a warning. today his doctor has him on a bayer aspirin regimen to help reduce the risk of another one. if you've had a heart attack be sure to talk to your doctor before you begin an aspirin regimen.
1:51 pm
that corporate trial by fire when every slacker gets his due. and yet, there's someone around the office who hasn't had a
1:52 pm
performance review in a while. someone whose poor performance is slowing down the entire organization. i'm looking at you phone company dsl. check your speed. see how fast your internet can be. switch now and add voice and tv for $34.90. comcast business built for business. it summer the new series will feature tim love and joe bathian itch. they'll be vying against each other to invest their own money into food ideas. welcome to joe bathian itch. he as part of the b & b hospitality group along with his
1:53 pm
mom and mario batali. restaurant, eataly, perfect -- >> i just left there. it's packed. everyone is eating gelato, having spa gettic, drinking great wine. >> it's a miserable rainy day in new york city, just a wonderful day to wander through. very excited to welcome you. >> it's a great family to be in. i'm super excited about the show and the whole affiliation. it's great. >> a lot of people want to get into the restaurant business or food business. there is a huge food movement in the last few years, but i don't think a lot of people realize what a tough business it is. >> it's a tough racket, especially here in new york, but throughout the country. the beauty of the show is it takes the food and passion for food, restaurants, and really brings a business edge to it. as much as we love to eat and go out, restaurants are businesses at the end of the day that need to make money. we kind of dissect people's
1:54 pm
passion and their real inspiration and break it down to dollars and cents. we're looking for the next entrepreneurs in the food segment, whether they make pasta, wine or restaurant, and we want to invest, make money, not necessarily just create art. >> you're coming at it from a business -- and i would argue that your family were entrepreneurs. >> by default. they were immigrants, the only job they could get was to be a waiter. and they opened restaurant because they couldn't get another job. 40 years ago being a restaurant tour was very blue collar, very tough life. now it's become media driven, very bright lights, big city, but still restaurant without money making are kind of a hobby. we're looking for restaurants that have passion, but we're investing real dollars and negotiating at the table with these young entrepreneurs and taking a risk. >> how invaluable your advice is going to be for these people. >> it's it's nous just advice,
1:55 pm
they become my partners. we set them up in our pop-up? los angeles. we watch them operate, and then negotiate a percentage of their deal to bring it to reality. we become more than just investors. we become partners. >> i have a little surprise for you. >> tell me. >> full disclosure, i use lidia's products. my family loves them. i tried making my own sauce. it was rejected. >> right. >> so a picture in my kitchen. that's my son daniel. >> he is a consumer. that's the kind of consumers. lidia's saw consumed by young daniel. frankly at $7 a dollar, it's not cost-effective. you won't even pay for the gas. >> that's absolutely true. and i do. even when i did make it myself, he just said, it's not so good, mom. so there you go. pass that along. >> that's a beautiful picture. obviously a fine palate in your family. >> he does. we look forward to july. >> july 8 it will be open and
1:56 pm
downtown at the freedom tower very soon, so we'll have you for lunch. >> we would love that. it's right around the corner. it's a date. >> thank you for having me. thank you to the cnbc family. >> you're one of us now. >> thank you. coming back, the biggest etf winners in today atrading. >> here's the problem. i like joe, okay? but he just invited "power lunch" down there? i'm just going to say it, his mom's restaurant is the best in town. one up for the mom. for lidia's fantastic place. joe, congratulations on your success. coming up, we're going to talk about housing, bashing housing has been become a national pastime. we'll dig in. if the beats deal happens, what's the next company apple should buy? "street signs" is after the break. "power lunch" will return right after this.
1:57 pm
that's keeping you from the healthcare you deserve. but if healthcare changes, if it becomes simpler... if frustration and paperwork decrease... if grandparents get to live at home instead of in a home... the gap begins to close. so let's simplify things. let's close the gap between people and care.
1:58 pm
1:59 pm
we're up about four points on the dow jones industrial average. s&p, though, has turned negative. the nasdaq composite is beari
2:00 pm
bearingly hanging on. three etf winners. er, power shares, and pgj, she try to do say. ty. that will do it for this edition of "power lunch." have a great mother's day, too. >> thank you, and to joe as well. sti stinz stinz begins now. "street signs" begins now. welcome to "street signs." it totally beats me why you wouldn't get excited about apple maybe purchases its way to a recording industry giant. home sellers now maybe getting overzealous? old coins popping up everywhere. which currency will get bitcoin a run


info Stream Only

Uploaded by TV Archive on