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tv   After the Bell  FOX Business  December 12, 2013 4:00pm-5:01pm EST

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[closing bell ringing] david: just in time for the closing bell. there we see it. it is not a pretty day on wall street although those dogs were pretty. we love the st. bernards. don't have the little kegs around the neck. lori: sure did? david: it did? good. lori saw it. have the eagle eyes. russell 2000. we had one gainer. all the others doing, not so bad. kind of an inverted pyramid. biggest loss at the top. at the end you end up with a gain in the russell 2000. dow jones taking it on the chain, a triple-digit loss for the dow. lori: s&p flat, generous. david: we can do that. emphasize the positive with the russell 2000. time now for the front page headlines a critical day for the ryan-murray budget plan on capitol hill with the house of representatives expected to vote on the deal, the final vote later today. supporters believe it will pass with bipartisan support. lori: the labor department said initial jobless claims, surged, oh, no, much more than expected
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last week, jumping 68,000 to 368,000 t was largest weekly increase since november last year. four-week moving average increased by 6,000. it was thanksgiving. maybe there was noise regarding holiday. david: maybe be a little bit of that. retail sales were up .47%. largest data point and continued strengthening of economy as we go into the who say sales. lori: shares of the yoga gear maker, lululemon took a beating today, off nearly 12% after the company's fourth quarter outlook disappointed investors. latest setback for lulu which recalled some of its pants earlier this year because they were too sheer and ceo blamed our bodies. david: that was not too bright. do you have a pair of those pants? lori: i have several. i have a few complaints but they -- david: 11% down. ford by the way is hiring in the u.s. automaker will recruit more than 5,000 new workers. that is great news including 3,000 salaried staff.
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ford will launch the most vehicles globally in a single year in 2014, in more than a century. lori: check out shares of aramark surging in the stock market debut the company sells food and drinks at stadiums, corporate offices. it raised 25 large in the ipo today. "after the bell" starts right now. david: so we're still settling with a triple-digit loss on the dow but there was unindexey waiver that was up, russell 2000. let's break down the action with david kudla. he will tell us why he thinks the market is overdue for consolidation phase. ron weiner, rdm financial group ceo with four ways to play the market heading into 2014. alan knuckman, alan in the pits of the cme. alan, i will start with you. what was going on today? do you see this more like
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profit-taking than a selloff? >> i would hope so. percentage terms these aren't big moves to the downside but it has been kind after long, painful slog to the downside here recently. a slow drip so to speak. today we got back unchanged, more disappointment than anything else. we were unable to keep that. we are below the weekly lows, the lows from last week. so that is important technically. but i'm not worried, yes consolidation is in order. when, but i don't think it will happen before s&p gets down to close below 1730 once again. we're only 2% off the all-time high. lori: ron, to you now. we got a lot of economic data to start the session. it was largely mixed. how did investors interpret that? why did they decide to sell today? >> you know i don't see any reason for them to sell the way they did. in fact goes down a little bit more we'll look at that as opportunity to buy. unemployment is good. certainly strong but ism numbers are great. but i think other things like china's numbers.
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china's export numbers were up 12%. their spend something going up. europe has come out after recession couple months ago or theoretically. these are all buyers. i think on a macropoint, looking from a macropoint of view i things look fine. with these little pullbacks this is nothing to get upset about. in fact start looking for opportunities. david: david kudla, you still see 10% pullback coming. we're 2% off our highs as alan just told us. are you still committed to that 10% pullback? if so, when. >> i'm still committed to that 7 to 10% pullback. and i agree, with ron and alan. everything is fine in terms of the long-term secular bull market we're but we've come so far there is now a consolidation phase that i think needs to take place. it is healthy for the ongoing strength of this bull market. we've come a long way this year. and the fear over the taper i think is what gives us that
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correction. selling begets selling. what we're concern about, people talk about smart money. they talk about dumb money. we're worried about scared money. people have come into this bull market later rather than sooner, five years ago, and will sell at the first sign of a steeper selloff. that is what we're concerned about but we think the market, buyers will come in and market will move higher from there. lori: alan, there was a lot of fed speak today leading up to next week's fomc meeting and this is the big debate, the taper debate. what is your expectation? >> there is no debate. we talk about -- lori: sure they's a debate. december taper, early next year. >> the fed will do what they're going to do to support the economy. when they realize the economy has come back and can hold its own then they will step back. until then they will do what they're going to do. don't fight it. go with it. lori: volatility hitting multiweek highs though and because people are concerned. they want to know when this thing is going to commence. even if it's a small taper.
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>> i think, a taper is not, taper is not tightening number one. this is most transparent fed. lori: i'm not talking about tightening. i'm talking about the bond purchases. >> market take it off the table we'll be able to hold it. >> lori, i'll jump in here. it is, it is about the fed. tapering is a form of tightening. it reduces asset purchases. that is what people are concerned about. we know that one of the key fundamental underpinnings of this bull market has been the fed. >> earnings. >> and $85 billion in asset purchases that have fueled this. yes, earnings are there. but we know that, we know the fed has been important and when, when they start to taper we will get that knee-jerk reaction out of markets. david: ron, i know you want to get in on this. i will be more specific with you. you like financials, ron, right now. >> right. david: the problem all the tapering everything the fed has been doing is the distortion of financial industry. nobody would argue that we have real interest rates right now. they are tremendously
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artificial. they're kept artificially low by the bond-buying program and other methods as well. plus we have all the bogus rules n we have the volcker plan. i'm willing to bet money nobody understands the volcker plan real well or volcker rule. with all that working against it why are you in fair of the financial industry, ron? >> the fed said they will be data dependent. the only time they will take the quantitative easing off the table when they feel we can handle it. it ilks time to be big boys and girls to stand on our own. we think the global economy can handle it. there will be a pullback. everybody has to lose some day for a little bit of time. five to seven to 10% pullback. so much cash is at sidelines f it has to come down because people worried about the fed tapering only because the fed thinks the economy is stronger. david: ron, specifically on the financials, stay on financials for a second, we can even more specific on that. because you like jpmorgan which is getting left ways and
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sideways and right ways by all kinds of folks including the sec, the treasury department. why would you go for financials, particularly jpmorgan despite all the regulars against it right now? -- regs. >> which checked. i was on 26th of october. talking about a 13 billion-dollar hit to jpmorgan. it is up 7%. david: another bill hit on bernie madoff. >> yaw, you know what? i hate to think a billion is not a lot of money but however their lending rates are up. their book is up a lot. billion here, billion there. everything is going well for jpmorgan. and the european banks are cutting back. someone has to take the lead as the world expand and global banks which includes citi and bank of america. jpmorgan in particular is probably the strongest of the group and they're going to take share from european banks. they will participate in asia and eventually they will, not just eventually, they're doing fine this year. they're doing fine the past two months.
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they will do fine going forward. when interest rates go up, their margins go up. i think whole banking sector, the banks will do just fine. lori: interest rates are going up to your point. that is great for the lending climate of financials. alan, nobody seems to be optimistic we'll see the run we had in stocks this year next year. i hate to keep going back to the fed but that i the foundation for that thesis. what do you think will be drivers for next year and will we retrace these monumental gains? >> i think we're going to be just keep moving ahead. 1925 is my next target in s&p. we have more upside. to get back to the financials i love jpmorgan. it is going to 64, 13% higher than we are now. xlf, whole financial sector, not just jpmorgan, if you look at etf that is trading between 19 and 21. that target is 23. we're not halfway at the big selloff from 2007 to 2009. we had lot more upside to financials. they know how to make money. i make that point on the air.
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i would like to have someone agree with me. i love to hear that. >> despite the everything government says about him, jamie dimon is one of the best bankers world ever seen. >> ever. david: ron,, david, alan knuckman we'll check in with you when the s&p futures close. bar ron's magazine has come up with a list of 10 favorite stock picks for 2014. and wait until you hear how last year's stock picks actually outdid this incredible market. baron's associate editor will tell us about them in just a moment. lori: facebook has problem attracting teenagers. so it is enlisting its instagram unit to fight back against competitors and we'll tell you how. david: and our facebook question today, about online music. we want to know what internet streaming or digital music radio do you listen to? do you see wars going on between spotify and pandora and apple right now? log on to
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>> we're looking at adobe and it is under some pressure here. i'm seeing mixed numbers pertaining to earnings per share so i will tread very lightly there you are seeing the stock in the2-doar rge. it csedt 599 the rnin perhare i kw w ve 3cent wrien dow justatch th. revee nbers hereem a ttleett bt is t renueutlo and tt will beg eentilylat youon't necsari wt tt. yo wan to hea gwth andhe like obousltheyave en gaing bscrers. ey med t aloud package. when you think of adobe you think of photoshop and acrobat software. they posted results and moved to a cloud-based subscriber model. they hope to get more corporate customers. that being said they're giving outlooks here that seam weaker than what people anticipated. watch tomorrow in friday's trading. >> nicole petallides. david: thanks, nicole. it 15 seconds away from the
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close of the s&p futures. let's go back to alan knuckman at the cme. are we still selling or with re buying now? >> it is selling into the close. we're only a couple points off the lows of the session. these are multiweek lows on closing basis anyways. this is heavier than it is in percentage terms. a lot has to do with the market getting good financial data coming out. it already priced that in. that's why we're up significantly for the year, but now the data doesn't support pushing market higher because it is already built in. lori: what is the story for tomorrow? quadruple-witching expiration. david is laughing a me. go ahead. >> a lot going on. in addition we're coming last couple weeks of the year. a lot of people made their money or try to make the money in last couple weeks of the year. this is the dad's time because the guys in the pit are dads. they don't want to be home with their family. or deadbeat that is have to make their money back. gets tough here from out as
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volume gets thinner. you have to see how market reacts when we get another buy. we had a big buy last friday. no follow-through. lori: thanks so much. alan knuckman. david: thanks, alan. lori: "barron's" rereesed favorite stock pick for the year and picks can produce 15% total returns so what stocks should you get in on? >> we have andrew baron, "barron's" associate editor. what is the criteria for picking stocks? >> we try to find stocks where they think 15% upside and they have low price to earnings multiples. hopefully offer upside plus and. lori: what are the riskiest names you say? >> some riskiest names could be simon property group and and new american airlines. airlines are always risky stocks but we think the risk return is pretty good on the new american. david: by the way, s&p, we were looking at some favorite stocks here and we'll go through them in a second, s&p grew 25% this
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year, unbelievable growth year but your stock picks, bettered that, by how much? >> we bettered the market by 10 percentage points. david: how often do you do that? couldn't be every year? >> we've been doing it three years and this is by far the best performance. david: you got what, about 35%. >> 35 versus 25 for the s&p 500, good record. lori: i'm taking notes for myself. we talked about the riskiest. you mentioned simon property. those are mall owners. >> yes. lori: amr which we get. the safest bets, if you don't want to put out too much risk? >> i mean there are not really -- i would say deere is relatively safe and i think metlife is relatively safe. i think intel is pretty safe right now given. lori: no one is buying pc's though. i guess they're doing other jobs though. >> pc market may be bottoming. intel is moving into smartphones and tablets that is the hope next year they start to crack that market. david: intel was never a rider on this bull market. intel was always staying around
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21, 20 two. blackrock, we were talking about financials. so much what happens in the financials is depends on what the fed does. blackrock was a big winner. are you sticking with financials. >> we're sticking with citi group. david: why citi? >> they are only one trading below tangible book value and trading 10 times earnings which is pretty low for the financial sector right now and has great international. david: what are the risks for citi? >> financial instability. higher interest rates. those are probably two the main risks. david: they don't gain with higher interest rates? >> they would argue -- david: loan operations are better. >> loan operations are better and margins should widen. often times investors don't like and sell financials stocks when interest rates rise even though banks may benefit. lori: talk autos, gm, right, over ford? big news with the management shake-up? >> we think, gm has more to go in terms of restructuring its operations and improving itself than ford does. it was a pretty close call between gm and ford. both look reasonably attractive.
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gm is under 10 times earnings. may do a dividend first time since emerged from bankruptcy and went public. it is interesting play. david: what about a wild stock like tesla? >> tesla is valued at $20 billion on a tiny fraction of that of revenue. i think it's, it is an accident waiting to happen right now. it is discounting a lot of growth in the electric car market and their ability to -- david: they're somewhat dependent on government subsidies. >> without those subsidies, i'm not sure whether tesla sells those cars. you have to bewarery of companies that depend on government subsidies like them. there are some solar stocks like solarcity that depend on it. i would be careful about that because the rules can change and rules do change it will hurt tesla. lori: do you expect the stock picks for the new year to perform as well in 2013? >> i don't think so. we can beat the market by a couple percentage points biel be happy but -- lori: i'm sorry is that a statement on the broader market performance you expect next year? >> yeah. i think market could be up 10% next year.
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if we can do, low teens i think we would be pretty happy with that. david: you don't get a sense this bull's running out of steam? >> i mean, i don't think so. i think, you know, earnings may be up next year. i think fed will be reasonably accommodative. i think stocks are main game in town. bond are not very attractive. other asset classes don't look as good and people will continue to move into stocks. david: andrew, thanks for coming in. congratulations. terrific forecast. very good. well he is the one billion dollar man who sold his company to facebook. now instagram's ceo, has come up with a plan to help facebook win back the teen users. how? we'll tell you. we have got details coming up. lori: apple rebounded in china thanks to the success of its new iphone 5s. how much market share does apple have now? we'll talk about that in just a moment. ♪ this is the quicksilver cash back card from capital on
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david: time for a quick speed read, some of the day's other headlines, five stories in a minute. first up, billionaire john malone could expand his european empire. liberty media global unit is in talks to take over the deutch telephone provider zigo estimates it could be worth nine million dollars. american airlines adding new jets to hits fleet with a $3.9 billion order. it will be split between bombard did i air and embraer. they ordered 90 new aircraft. iphone sales surging in china, claiming 12% in the market. coming before the country's
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largest wireless carrier, china mobile, starts taking orders for i phones. good for iphone. buffalo wild wings is forming a new relationship with pepsico. it will go beyond soda and give the restaurant access to all pepsico products. glow, fertility app created by paypal, was released four months ago but reportedly helped 1,000 women get pregnant. fertility they say is only beginning of list of health problems he wants to solve. [buzzer] that is today's "speed read." >> i distracted you. david: that is all right. good news for the company. lori: and for women around the world. trying to get knocked up. david: one way to put it. i don't think that we'll see the ads. do you want -- at any rate. lori: instagram launched a new direct messaging system today if you haven't heard, allowing users to have option of sharing images with video up to 15 friend of their choosing. misdemeanor were speculating it
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would put the company in more direct competition with rifle snap chat. how does instagram chat measure up. david: jo ling kent was there in new york. jo, how does this feature plan out. >> it has been greeted with a collective, mff. the messaging service many were expect something exactly that. the question now can this featureture alleviate facebook's teen problem. facebook owns instagram. this puts, instagram against snap chat and twitter. ceo kevin sistrom felt it was natural extension what should come next. instagram has 150 million active users. there are big opportunities for companies to make money off direct messaging. companies and popular brand with accounts on instagram will send images to those who follow that kind of a new type of unpaid advertising strategy.
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as for actual paid advertising inside instagram direct, he said it was a little too early to talk about that. sharing photos that self-destruction like snap chat, they said they could create a ephemeral messaging service in the future. he left that option wide open. that is something we should expect at this point. look at twitter, it has 232 million monthly active users. they added photos to the main photo stream and instagram is nipping at its heels. it is quickly approaching with 150 million monthly active users sistrum indirectly needled twitter, that instagram direct following back and following you to do the direct messagings. he is saying instagram's strategy is more efficient and trying to gain more users. facebook ace stock is up more than 5% today after the launch. systrum told me the service was not created for a specific younger age group in mind but facebook investors are clearly
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reacting postively here. guys? david: jo, thank you very much. appreciate it. michelin north america celebrating its opening of its newest manufacturing facility in south carolina. over $700 million they spent on this. so is manufacturing on a comeback in the u.s.? we're going to be talk next to pete selleck, michelin north american chairman and president. lori: the business of streams music is becoming more and more competitive. how do companies stand apart and who is leading the charge? coming up we'll talk to music industry insider about who is getting all the revenue. ♪ [ male announcer ] e new new york is open. open to innovation. open to ambition. open to boldids. that's why n york has a new plan -- dozens of tax free zones all across the state. move here, expand here, or start a new business here and pay no taxes for ten years...
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lori: time for a look at today's market drivers. stocks ended lower. all three major averages on track to close the week in the red in fact. it will be the second losing week in a row for dow, s&p and russell 2000. number of americans file be for unemployment surged to 3,680,000, reversing prior three weeks declines. it was the largest weekly gain in more than a year. retail sales rose in november at the fastest pace in five months. sales climbed .7 of a percent on strong buying of autos. david: november's manufacturing activity rose to its highest reading since april 2011. michelin was putting final touches on its 19th facility here in north america. the new $750 million south carolina plant will begin
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producing large tires in january. those large industrial tires. so is manufacturing back on its feet here in the united states? that would be nice. joining us for details, michelin north american chairman and president, pete selleck. pete, congratulations. talk about south carolina for a second. this is your 9th facility if i'm not mistaken in south carolina. what is it about that state that keeps you coming back? >> hi, david. good to be with you. 40 years ago we started producing michelin tires in the state of south carolina. over that time we've been growing and groping and growing. we've had a lot of success. we just opened today our new plant that makes these large earth movers tires. tires behind me. that is the first tire. it was just produced. this is actually the second plant that makes earth mover tires that we've got up now in south carolina. what is really interesting about this, is that 80% of these earth mover tires made in south carolina, are exporters of the rest of the world. david: right.
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>> 30% go to canada and 50% go to container ships in the rest of the world. not only manufacturing in the united states but we're producing products and sending them to the rest of the world. so that is very interesting story. david: by the way, i don't know if you get a sense of perspective by tire behind him. pete, these are tires that are twice the height of, man, these are 12, 13, 14 feet high. i guess, they're used almost primarily for mining activities, correct? >> that's exactly right. this is the largest tire in the world. as you said it is 13 feet tall. it weighs 5.5 tons. and it is used predominantly on large construction equipment and mining equipment. the mines need these tires to basically operate the larger pieces of equipment to make their mining operations much more efficient. so that demand is very strong. and even in the recession, even in recession when mining activity went down a bit, the mining companies were still using these tires at an increasing rate to increase the productivity of their operations. a lot of demand. david: 2008, 2009, your guys
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still had strong demand? >> that's exactly right. and the customers keep pulling this and that's why we opened up this new plant. we're all very, very excited about this. david: i went to australia a couple years ago. australia has these huge open pit mines. i guess you feed them. of course they feed china. that is a question of how important, that really put as fine point how important china is. and in its development. do you see any signs of movement one way or another? either more growth or slowdown in china? >> well, you know, the rate of growth in china today is a little bit less than it was in the past. we were talking 10%. now we're talking something between five and 7%. clearly that has some impact but, mining activity is going to continue to grow as emerging markets continue toevep, ddle cssonsution creas. the islmos reay,ther is ry ltle sk makghuge vestnt a yo sai $750illi t bui ts capaty t bical trehe
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rketor tutur is ry, very promising. david: the idea of a real slow down, significant slow down in china keep you up at night, the possibility of one? >> well, you know, you never know. you never know what will happen in the economy and certainly you've got to focus on growth. you've got to be aggressive and at the same time you have to be able to react quickly. in 2009 when the economies obviously got into great difficulty. we learned how to pull back and pull back in responsible way. right now full speed ahead. as soon as we start to see signs, we'll drift back a bit. right now we're not seeing signs. we're very optimistic. david: glad you're hiring. 750 million-dollar plant is nothing to sneeze at. i want to get back to the whole issue of south carolina. south carolina is one of the least unionized states in the country. ohio used to be the tire capital of the world. now it could be argued south carolina is the tire capital. how much of their pro-work attitude has to do with you going there? >> well, clearly, that's an
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issue. that's an issue people talk about. and one of the misconceptions has to do with how much we pay our people here. we pay our people exactly the same as we pay in our three unionized plants. we have 15 plants now no north america and united states. three are unionized. pay and benefits between union and non-undoes not exist. that is really not issue. 9 issue in south carolina, that is working not just for us but other manufacturing companies is you have a great infrastructure. for us the port is very important. we need to be close to ports for the natural rubber coming in and to export these huge tires out in container ships. that is very important. the technical school system is very important. most importantly we found a workforce that has tremendous work ethic, perfectly adapted to type of work we do in tire manufacturing plants. david: governor nicky hayley must love you guys to pick up the jobs, particularly they lost an amazon plant because of tax policies. i have time for one more
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question. it's a little off the beat. you were an army officer. how, i think you're a west point grad as well. how did being an army officer train you to be such a good manageer? >> well i think in the military you tern about service. you also learn about leadership. because at a very young page you're put in charge of people, very, very quickly. so the concept of serving others, being a servant leader and having a customer out there you're constantly serving, the word service is often used to talk about the military. clearly service a very important word in our company and culture. david: pete selleck, bringing a lot of jobs to the united states. thanks very much for coming in, pete. appreciate it. >> thanks, david. good to see you. david: good to see you as well. lori? lori: great story. some say the music industry is dying. our neck guest says it is definitely not, just different. he will explain exactly how. david: it's a battle over middle earth. we look at a billion dollar rift in tinseltown who gets profits
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and it helps keep your mouth healthy, too. [ applause ] biotene -- for peop who suffer from dry mouth. lori: streaming music. this is one of the most competitive industries on the planet. players like apple, spotify, pandora, all vying for your business. david: just take a look at the hit pandora's stock took this week when it was announced spotify was adding led zeppelin to his catalog and provide mobile music for free. one company been in the music business for decades is adapting their model. bmi senior corporate vice president of strategy communication and new media and drove me home one time is a years ago. we haven't seen each other. great reunion. good to see you, richard. >> you too, david. david: everybody, i don't know
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about everybody but we all used to have albums, cds, cluttering up your rooms. our wives telling us to throw them away. do people own music anymore? do they just rent it out or listen to it on these radios? >> i think music ownership has become a specialty market. it is almost become a novelty. we saw physical goods and we saw digital goods and now we're seeing no goods at all. we're seeing access and moving from owning things to just getting to them. lori: what do you make of this spotify deal with led separate minute and overall trend with people renting music and how do you monetize that. >> i think mon tissization will catch up. it is such a big shift in consumer patterns we're waiting for the consumer patterns to settle down. spotify done a couple of things. first they make on demand music. there are streaming models and on demand. on services that offer both services and on demand there is
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10 to one ratio of on demand plays to streaming plays. lori: apple in the mix with i radio. how is all that unfolding? >> when you think about it, there are handful, maybe 10 to 12 big streaming services. we have 10,000 radio stations in the u.s. when you look at pan door remarks if you were to compare radio to radio, the numb pers are somewhere between, seven, 8, 9%, they're generating 7, to 8, to 9% of the total u.s. radio audience combined. one of the reasons we're seeing services take off they're offering such incredible choice. when you look at the unique titles played on commercial radio, all 10,000 and change in u.s. radio station, compare that to the number of unique titles on average per quarter on the average streaming service, it is a like a four to one, five to one ratio. so i think consumers are really understanding the value of choice and the value of a really wide offering that isn't edited by someone else. david: pandora took a hit this week, the stock price took a hit
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anyway because of spotify. i assume because of spotify and deal with led zeppelin. what is surprising me they're not taking more after hit than apple. apple has a far larger music catalog than pandora does an they're cheaper. how does pandora keep its market share while going against what seems to be more from apple? >> here is what i think happened. if you look at spotify i think the real differentiate one porting over. spotify breaking free of desktop to on demand service that is one of the big things that happened. we have that component. the second component spotify embraced globalism. it is, we're in the music rights business. it is complex to clear music rights globally. spotify took that on. they came over from europe into the u.s. market. david: are they unique in that respect? >> they were one of the first and bravest to decide they wanted to navigate through the global music rights market and be able to clear multiple territories. david: requires more lawyers?
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why is it more difficult. >> more lawyers. more work and super high level of complexity. the other thing we're seeing that businesses that focus on music are a lot more successful as opposed to businesses that want to bolt music on to the other offering. >> with all the players who do you see coming out on top? or you know, as time goes on consolidation might happen or losers drop off? who will be the winer? >> i think that chapter hasn't been written yet. i think on demand services will have a very strong showing. i certainly wouldn't count outline extensions from the u.s. broadcast industry and broadcasters around the world. there are services like daser out of france that haven't yet, gained terrific traction in europe and haven't quite come over into the u.s. lori: we're talking about consumer end of this. what about musicians? does t that we're in make it easier or harder for musicians to get their music out? maybe easier there but to make money from their artistry? >> there are two sides. first piece, more music is being played in more places than ever
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before. if you go on the subway everyone has something in their ears and listening to something. that probably wasn't the case preipod. david: making fractions after penny the artists are for each one that's played. >> that's true. one of the things we need to reset our thought process on is, when you think about a radio play, one radio play in new york city in drive time might hit five million listeners. and when you, but when you're compensated for it an artist will say i had one play in new york city and i made whatever i made. one radio play on pandora or, one play on spotify is one play to one person. so there's a five million to one disconnect the way we're counting things. so, i think that we've gotten so granular in way we're talking about the business and expressing activity, that we forgotten that you know, we pay out for a network performance on network television. david: how dot artists pay you? how do you get your cut of all this? >> we actually, work, by ann over head rate comes off
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royalties we negotiate on behalf of our songwriters and publishers. david: wow. what a new world. >> really is. david: unbelievable. >> thank you. david: you have to really roll with the punches. >> you have to be flexible. lori: your wife must be thrilled. no more mess in the house. david: well, we still have a bunch of kds. lori: cassette tapes? david: cds, cds. lori: we won't date you too much. david: richard, good to see you. don't wait 15 years. >> we won't do that. david: david: thank you. richard conlan. a clash of titans not in the latest version of "the hobbit" movie but among some of the biggest egos in hollywood. we'll tell you what is at stake in the showdown next. lori: could bad mannered new yorkers learn a lesson from france how to treat barista's in coffee bars? we have a story everyone is talking about next. ♪ e.
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david: trouble a foot among the fury towed creatures of hobbit. the sequel is going to war who gets spoiled. lori: dennis kneale with the latest on box office feud. >> hobbit sequel opened overseas last night an took the number one spot in all nine markets where it premiered.3 now tonight at midnight it
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debuts on 3,000 screens here in the u.s., rolling out to a full 3900 screens tomorrow. now the awkwardly named past at thatsy flick, "the hobbit" desolation after smalling is distributed by timeworner, inc.'s new studios. -- smaug. the stock is up 40% in the last 12 months. smaug could take in $08 million in the u.s. and has a chance to clear the billion dollar mark. four films that preceded it, lords of rings trilogy and first hobbit have cleared a stunning in five billion dollars worldwide. that is pretty impressive. imagine what it will be like, guys, if you had the rights to all of that but sold them back in 1998 before the very first film was made? and that would be these guys right here, the famously irascible weinstein brothers. harvey the meaner one and bob the lesser so. they sued time wner or their al iate nat
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eyiled t neesteay - 19. they made $100 million first four preliminaries and warnedder brothers took all the risk and suing to snag 75 million bucks more. they're miffed because time warner separated hobbit into three films and paid the wine steens only for the first one. weinstein brothers say this is about freed and ingratitude. warner says the wine steens committed one of the great blunders in movie history. and i think warner may have a point on that one. dave and lori? david: very interesting. it is amazing. they got $100 million for doing practically nothing other than signing in '98. >> always ask for more, dave. david: yeah. the other funny thing "the hobbit" is nowhere near as successful and popular as the "lord of the rings" was? >> first one came out and made a billion dollars. this will build on a billion dollars. it is building on previous. david: i was wrong on that one. i like the old version better,
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the "lord of the rings." >> there you go. david: thanks a lot, dennis. lori: one of the most unusual hotels on the planet is open for business. you need to book your rooms before it melts away. of course ready to pay a hefty price tag. details when we go "off the desk." david: facebook question is about the booming online music industry. we heard them talk about it. what internet streaming or digital radio do you listen to? pandora, spotify? what is it? let us know. ♪ hi honey, did you get e toaster cozy?
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(announcer) ranked highest in investor satisfaction with self-directed services by j.d. power and associates. >> let's go "off the desk." a cafe in france started charging rude customers extra if you for get your nanners. grunting the words coffee to the cafe staff will set you back nine euros. saying hello, one coffee please, that very same drink will only cost you 1.40 euros. the cafe's manager says people are much more relaxed and smiling more. david: also "off the desk," talk about cool hotel, we previously mentioned ice hotel in swede len because the government required staff to install fire alarms which is weird. the hotel is in business. the ice hotel melts once spring arrives and reconstructed every winter. this year there are 65 rooms including 13 individually designed art suites. the hotel is open from december to april. visitors pay hundreds of dollars
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each for the privilege of freezing essentially. >> no thanks, pass. we asked you on facebook and twitter what internet streaming or digital music radio you listen to. daniel on facebook wrote to us i use xbox music. play it on xbox and windows phone and pc. david: christina said pandora. i play the hawaiian stuff and christmas music all year long. >> number two things to watch, number two on the list is adobe. shares initially fell in the after-hours session following release of quarterly report. quickly reversed downward momentum, trading up 6%. david: nicole told thaws could happen when it was down. now it is up again. number one thing, november producer price index released 8:30 a.m. eastern. it is expected to be flat month over month. we have news out of north korea. i think it is fair to say it has been confirmed and both bbc and abc reporting that uncle of the guy who controls north korea?
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he executed his uncle. >> how about that? can't say we're surprised. third consecutive day of losses with the markets. "money" with medical list is next. david: see you tomorrow. melissa: one of america's female billionaire is right here, ready to get down to business on her hardcore reputation for taking charge with no apologies. all the way up the ladder and shattering the glass ceiling. the larger than life lynn kilton. exclusively right now. even when they say it is not she always knows it is about money. melissa: i am so excited. i've been waiting for this day. private equity titan lynn tilton is the owner of more businesses than any other woman in america. she is a self-made billionaire. her firm, patriarch partners, manages 75 companies with revenues in


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