tv On the Money CNBC June 10, 2017 5:30am-6:01am EDT
hi, everyone welcome to "on the money." i'm becky quick. the summer travel season is here, but there are new tsa rules that could make getting from here to there even harder downsizing or dealing with an estate the company that does everything for you and gets cash for everything and if getting out of your hotel bed and making your way to the gym is too much for you, check this out, a different kind of room service. "on the money" starts right now.
>> this is "on the money," your life, your future. now, becky quick if you're one of those people cramming as much as you can into your carry-on bags, get ready to unpack. the tsa is testing a new strategy, having travelers put all electronics larger than a cell phone in a separate bin that includes ipads, tablets, and e-readers. the idea, make it easier for screeners to catch potential problems in bulging carry-ons. >> they'd have to weed through multiple things in there the more stuff you put in there, the more beganics that are in there, the slower the process will become. >> reporter: eventually, the procedure will be tested at ten
airports, including l.a.x. and logan, coming as the department of homeland security considers extending the ban on passengers carrying laptop computers on to international flights after intelligence suggesting terrorists may try to use laptops to trigger a bomb midflight. >> there's a real threat there is numerous threats against aviation that's really the thing that they're obsessed with, the terrorists, the idea of knocking down an airplane in flight, particularly if it's a u.s. carrier, particularly if it's full of mostly u.s. folks. >> reporter: there's already a laptop ban for flights from some airports in the middle east. since it went into effect, emirates airways, the largest airline in the middle east, has cut some flights to the u.s. due to fewer travelers that slowdown in traffic concerns airline and travel industry leaders, but for now, many believe tighter security or an extended laptop ban will not prompt people to skip overseas trips. >> i think we would find a way
to put up with it, because we're traveling for reasons. >> reporter: so far, travelers seem to be adjusting to the new reality, which could include longer lines and fewer electronics to pass the time on flights. >> i don't know if it will make lines longer, necessarily. i think once people get accustomed to understanding that that's part of the process just as it did with your shoes having to be removed and that kind of thing, i think that people will get accustomed to it and it will change. >> they're horrible. i mean, they're like hour long sometimes, from here, goes down the stairs, all the way back around the side. then you have people trying to go from different level to level. >> it's definitely the worst part of the experience and a lot of us have tried to do precheck and things that fly a lot so we don't have to do that. >> reporter: while travelers may not care with the hassle of tighter security in the airport or on a plane, most are willing to put up with it in order to get away in fact, this summer, a record number of people are expected to fly due to a stronger economy and airfares that are about 8%
lower than this time last year phil lebeau, "on the money," chicago. >> so what will these new rules mean for your next trip and are more changes ahead mike boyd is an aviation consultant and president of the boyd group international mike, great to see you today thank you for being here. >> my honor. thank you. >> just when we thought it couldn't be any more of a hassle trying to travel, here come the new rules. are these necessary rules? should it be taking place? >> i have no problem with separating things so they can see it better. that's going to speed things up, not slow things down but where i'm really concerned is why would you announce the airports where you're increasing security why not send a memo to al qaeda while you're at it but i think these are the sorts of things that do show that we are more concerned about things, and i think very clearly, we're looking at airports that don't look at things as closely as we do. >> you mean instead of telling us the ten airports where these are taking place, just say these are going to be random and rolling checks that take place from time to time, so be
prepared >> yeah. just say we're going to have higher security in some places you may have to separate some of your things, you know, keep your electronics separate that's a very simple thing to do but to say we're going to do it in los angeles uh-uh, for the terrorists, that's a good place to avoid. >> right. >> but overall, i think this is a positive move, to be very blunt. >> in terms of laptops being band, they will be banned from the ten airports, mostly from the middle east, but homeland security has been considering expanding that to 71 airports. do you think that will happen this summer? could laptops be banned on all flights eventually >> i would hope not, because that will change the makeup of air transportation at the communication channels i need my laptop to go with me it's part of my communication network. and if i can't take it, i mean, i used to handle luggage i don't want to put it in my luggage and have people like me handling it. so, the bottom line is we need to have that, so we need to make sure we keep those communication channels open. >> you know, we spoke with a ceo of an airline recently who
pointed out, look, it's not a great idea to have all of these laptops in the hold underneath either, if people are just checking their bags and putting them in there. you don't want them stored in a single place together because the risk of the batteries being compacted in the same place could be an issue, too sounds like this could be the kind of thing that could be a rolling issue to try to deal with. >> it could be the lithium batteries that could catch fire shouldn't be down there now or in the future that's a different story but as far as having a communication tool with you that you need when you get somewhere, if we take that away, you're going to see domestic air travel drop i mean, there's no question about it it would happen. i don't think we're going to get to that, but if we do, that's what we'll be seeing. >> travelers could spend $money on the fast lanes, the global check-ins. does that reduce traffic in other areas and are the fast lanes still the fast lanes >> well, yes and yes precheck is what we used to have before 9/11, and it has sped --
i think it has made things move faster at big airports even if you have a long line in a precheck, it moves pretty quickly. and to be honest, the people in the blue shirts at airports really do want to get you through there. >> air travel is supposed to be up about 4%, and as phil was saying, prices are down something like 8%. so, you add up lower prices, more demand. does that mean it's going to be a difficult travel season for anybody who is trying to do this as a consumer? >> it shouldn't be capacity will be up 4% that's not a huge amount the difference in the summertime, the mix of travelers is a little different at some airports, you know, more kids, more strollers, more people that don't know you can't bring a swiss army knife with you. there's a little of that. >> yeah, i got flagged one time for trying to bring a chocolate swiss army knife back in i swear, it's just chocolate it was covered in it mike, great to see you, thank you. >> my honor. thank you. up next, we are "on the money. clear out and cash in.
now here's a look at what's making news as we head into a new week "on the money." there were more open jobs in april than at any time over the last 16 years. the labor department's jolts survey measures the openings and rose by more than 4%, suggesting businesses are having trouble finding qualified people as the unemployment rate declined there were more than 6 million open jobs, the most since december of 2000 the dow touched a record high friday morning, as did the s&p 500. the nasdaq closed at a new high
thursday and climbed again in early trading on friday. stocks were mixed at the end of the day. nordstrom may have found a way to alleviate the pressure that many retailers are feeling these days, by going private the heirs to the department store chain are looking into buying shares of the company that they don't already own. if the company is private, there would be less of a need to try and show profits on a weekly or quarterly basis. apple has a new product to compete with google home, the home pod, apple's first new product since the apple watch. >> just like we did with portable music, we want to reinvent home music. >> it will retail for $349 and it's a combination of a speaker and microphone, which responds to royvoice requests home pod is expected to launch later this year. estate sales westbound an adventure for buyers and for the home buyer, they can be time-consuming, awkward, unusual. people are traipsing their home, touching things and looking to pay next to nothing for your home possessions
everything but the house may have a solution. andy neilson is the company's ceo. thanks for being here. >> thanks for listening. appreciate it. >> how does everything but the house work walk us through the process. >> it's an online marketplace with two distinct customers. on the sell side, we're a full-service estate company, so we'll help a seller going through a loss of a loved one, downsize, just a corporate relocation, and we perform the full-service liquidation. >> what's that mean? >> call us when you're going through the proper situation and we'll send in a team to coordinate junk removal or donations and anything that's saleable, we list on our platform at ebth.com. >> i can't deal with this right now, you deal with it. >> stress-free and on the buy side of the business, second set of our customers, everything is sold or bought in a auction-style format, starting at $1, no minimum bid or reserve so we're exposing the items hidden in households to a global audience where we can maximize value.
>> and in terms of who's coming in, how many customers are trying to buy? >> we have over a million users, we have bidders in 150 different countries. so really it's a global marketplace for a traditional estate sale business that to date has been relatively local. >> you guys charge 40% of the take >> we do so, we charge sellers 40%. there's no up-front fee, so at the end of this process, if we sell $100,000 worth of contents, as a seller, you're going to receive $60,000 and we'll receive $40,000. >> that sounds great what if i have something i think is really valuable, like a sentimental piano and i don't want to let it go for less than $10,000, can i put that on >> absolutely. we've sold steinway pianos, artwork, collectibles, automobiles, everything from $5 items up to $150,000 items. >> but i can't say if you don't give me at least $10,000, i want it back? >> no, it's up to us to make sure they're in front of a global audience, thus driving demand and we're able to traditionally produce three times the results of other service providers.
>> what happens if something sells after a week >> almost everything sells if not, we'll make a donation on your behalf or return it to the seller but because this is an online auction format and because we've transitioned the estate sales business from a local backyard garage sale into a retaillike customer experience that sells to a global audience, we're able to sell through 99% of the audience. >> i wonder who you're competing with, ebay versus a traditional estate sale place? >> ebay is user-generated content. we put our brand in between buyer and seller to create trust, authenticity and a fantastic customer experience. and really, it's on the service element, you may be competing with the local estate sale provider on the e-commerce experience, sure, we're competing with anybody selling secondhand goods, but ultimately, by solving the shipping and logistics challenges in secondhand inventory, we can sell you used, unpackaged goods in somebody's home at the click of a button, thus creating
convenien convenience, a great customer experience and ultimately higher value to ourselves. >> you're in 27 markets. you started about nine years ago. what's your plan do you go to more markets? >> we're headquartered in cincinnati, we're in 27 cities, primary service areas for our sellers. we can service buyers located anywhere we cover everyone from east coast to west coast. and ultimately, we have a global opportunity here right now it's all about expansion, execution, brand awareness, educating people that this service exists and that we are the ones to provide it for you. >> andy, thank you very much for your time. >> thank you happy to be here. up next, we're "on the money. is your financial planner's goal to make money for you or for themselves a new rule is holding them to a higher standard. we will explain. and on the road to fitness, hotel perks for the health-conscious with a premium price tag. these days families want to be connected 24/7.
new, more reliable equipment for your home. and a new culture built around customer service. it all adds up to our most reliable network ever. one that keeps you connected to what matters most. when a financial planner suggests where and how to invest your retirement savings, you may assume that the goal is to increase your wealth, but it may be to increase his own a new rule is about to change all of that. joining us to explain is a columnist for "o," the oprah mag. furnish, thank you for being here. >> thanks for having me. >> what is the fiduciary rule in simple terms >> it's a new standard in the industry that requires anyone who's giving you investment advice pertaining to your retirement has to act on your best interests alone >> it's kind of ridiculous to
think -- >> right. >> -- that you have to a rule to tell people to treat you fairly and make sure it's in your best interests. >> prior to this, only certified professionals were required to be fiduciaries other people in the marketplace are giving you investment advice regarding your iras and 401(k)s and they were just adhering to a suitability standard, meaning they had to recommend suitable investments, meanwhile they're making commissions and charging exorbitant fees. >> we know some financial firms have been opposed to this. how do you say you're opposed to this without saying you're in favor of eating broken glass >> right, right. the critics are saying this is going to be very costly to transition and phase into this it's estimated it's going to cost billions of dollars and it's going to impact mostly the smaller, independent dealers and investment advisers who can't really afford this transition. you know, london, in the uk, they did this in 2011. they had similar rules enacted, and since then, about 20% of
financial advisers have dropped out of the marketplace. >> because they can't make money if they're not making money on every single product they push your way >> precisely, yeah they want it to be a win-win, right? >> right. >> they want the investor to win, but they also need to be paying their bills. >> okay. so, the one thing i've heard is this is going to be paying people at the lower end of the spectrum, that they're not going to be able to get financial advice because they won't be able to afford to pay for it. >> look, there are a lot of options in the marketplace there are robo advisers that typically invest in low-fee or no-fee, etfs there are ways to do it affordably you may not get the one-on-one advice and counsel that's maybe going to be more expensive for you, but these days, professional investors are saying look, we can't beat the market it's better to put your money in index funds in long run. >> if i'm somebody looking for the best options for retirement, are there questions to ask, red flags to be aware of >> still ask are you a
fiduciary. don't assume that because this rule is enacted, people will immediately be following the regulations. ask how do you make your money there are many different ways. people can still make commission, but they have to be reasonable about it, so get that transparency and be proactive about it don't take a back seat thinking this new rule will be the end all solution. >> are there penalties for people who don't follow the rules? >> there will be so, for the next six months, this is going to phase in, and starting in january, we may see some class-action lawsuits. >> thank you so much for being here >> you're welcome. >> we appreciate it. up next "on the money," a look at the news for the week ahead. and just feet from fitness hotel rooms where there is just no excuse for missing a workout.
for more on our show and on our guests, go to otm.cnbc.com, and you can follow us on twitter @onthemoney. here are the stories coming up that may impact your money this week. on tuesday, the national federation of independent business releases its monthly survey for may that measures the economic optimism of small business owners wednesday is the second day of the federal reserve's open market committee meeting a rate hike is expected. and janet yellen, the chair of the committee, will be holding a news conference. we'll be getting retail sales numbers for the month of may as well, and it is also president trump's 71st birthday. it's also flag day, too. then on friday, bob dylan's "like a rolling stone" turns 52!
when you're traveling, fitting in a workout can be tough. hotels want to try to make it a little easier, but it comes with a price. diana olick has the story. >> reporter: getting out of bed to work out is tough, but what if the bed were right next to the gym? >> we have always wanted to do a room that was built around movement and mindfulness. >> reporter: hilton hotel is betting you'll pay more for this added incentive, 45 bucks more per night for the five feet to fitness room. >> one of the most fascinating elements of this entire space is the sheer volume of different activities and options -- >> reporter: in a small space. >> -- that are here, right >> reporter: right it's a tiny space. >> exactly. >> reporter: it's not just a bike and a yoga mat, but an app rots of active amenities, like sandbags, a ball, foam roller, trx -- >> okay, let's go! >> reporter: and a screen with ondemand instructional videos and routines for every piece of
equipment. >> the great thing is that it takes the guess work out of it. >> reporter: so, would you pay more for this instead of just going down to the regular gym? >> no, absolutely not. >> reporter: why not >> because i can get it all right here why would i pay more just to have it five minutes away? >> reporter: for budget-crunchers, maybe not, but for others -- >> i would be, because i do a series of stretches before i ever walk out of the room. so for me, that would be very convenient. >> reporter: but guests say the fitness rooms cannot sacrifice any of the usual amenities for space, and the fitness area must be clean and well managed. hilton says they are doing special training with the cleaning staff, and each of these rooms has a sound-proof floor so the guests below aren't disturbed. >> you've got cadence, resistance and output. >> reporter: hilton's launch comes after westin announced a new partnership with peloton, an interactive stationary bicycle with live classes. it will go into westin gyms but also into some private rooms
>> the global congregation of people tuned in to wellness is ever enlarging the tent is big. >> reporter: even if the space -- >> cross your legs. >> reporter: -- is not now, hilton executives say that if the pilot project goes well, they'll expand to other hotels as well as to other hilton brands, like embassy suites. they expect demand to be especially strong from international travelers to major cities like here in d.c. becky? >> diana, it makes a lot of sense, although i don't want to be sleeping in a room that smells like the gym. how do they take care of that? >> reporter: they actually have a special air filter i'm not kidding. it's a specialized air flow that cleans the air and you can really tell in the room it smells different than other regular hotel rooms, so they say they've got that covered. >> okay. cross your fingers on that now, obviously, this costs a lot of money up front. are the franchise owners willing to foot the bill how much does it cost them and do they get a return on investment >> reporter: well, hilton say they are excited about it.
it takes about $10,000 to $12,000 to upgrade a regular room, on average, depending on what they decide to put in it, but they say they expect if demand is high, that you'll see a return on that investment as a franchise owner in just about a year >> wow okay, that's pretty fast diana, thank you very much it's great to see you. that is the show for today i'm becky quick. thank you so much for joining us next week, they may be downsizing, but they are upgrading, too the big business of new homes for baby boomers each week keep it right here we're "on the money. have a great one and we will see you next weekend ♪ i love you, basement guest bathroom. your privacy makes you my number 1 place... ...to go number 2. i love you, but sometimes you stink. ♪
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hey, there we're live at the nasdaq market site on a very tough day for technology guys here getting ready behind me while they're doing that, here's what's coming up in the show >> snap out of it! >> that's what investors in snapchat hope will happen. and there's something that suggests now might be the time to buy we'll explain. plus, this is the market, and this is your portfolio, and if you're trailing, we'll tell you how to catch up. and -- ♪ banks are on fire, having their best week of the year, but there's a key event next week that could set them back we'll tell you how to profit the action begins right now.