Skip to main content

tv   Countdown to the Closing Bell With Liz Claman  FOX Business  January 27, 2015 3:00pm-4:01pm EST

3:00 pm
for companies to get involved in tweeting that don't have to involve a natural disaster. that's my final -- melissa: there you go. we've got to leave it there. i'm sorry, it's time for liz. that's all for now. we hope you are making money today. countdown starts right now. liz: thank you, melissa. just like the star wars battle between darth vadar and oh by won denobody by, the negative market forces were clearly in demand this morning, but now you can say obi wan's positive forces are trying to make a comeback. at its worst the dow was down 390 points this morning, and in a stunning drop, look at this, the tech-heavy nasdaq was losing 112 points. but to the positive forces first, january consumer confidence hit the highest level since august of 2007. why are you so happy? coming in way with over analyst expectations. that's thanks in large part to falling energy prices. new home sales, these are the signed contracts, rising sharply
3:01 pm
in december, up 11.6% from the previous month logging 31,000 sales above the 4 a a 5 -- 450,000 economists were expecting, that's good. but orders for durable goods tanked sharply in december. that raises all sorts of questions as to whether businesses are primed to spend this year, 2015. 3.4% decline was the fourth deline in five months. heavy machinery maker caterpillar getting hit very hard after it gave a disappointing outlook for the year citing prices in oil, copper and coal. falling commodity prices also hitting freeport-mcmoran, it is taking aggressive action to cut spending by more than $2 billion. shares of both companies right now moving lower. we've got cat losing 7%, freeport-mcmoran which is already down much dramatically over the past year down another 5.75%. but perhaps the most powerful negative, the rising, almighty
3:02 pm
u.s. dollar taking a big toll on large u.s. companies which which make a big portion of their revenue oversea ises. procter & gamble, dupont, pfizer, bristol meyers quick and 3m also getting hurt by the strong dollar. as we look at the shares, they're saying the 2015 numbers will be hurt because the dollar's so strong and oversea ises consumers can't afford their products. but the major indices, here's the good news, they're way off the lows. so glad you're with me, let's start the "countdown t." ♪ yeah, i know, it's a snore easter. nowhere near as horrific as expected. volume trending right in line with monthly averages. we had traders telling you, don't worry, we can trade electronically, and they are. why? because the dollar turns out much stronger, and it's not a good thing now for companies
3:03 pm
like on your screen, procter & gamble, pfizer, dupont, united technologies. and this is just the early scene for the earnings numbers. they have all cited earnings hits due to the strong greenback. so what will the next dollar bomb be to drop? let's get right to the floor show, traders at the new york stock exchange, cme group and the nymex. also joining me, ubs' global currency managing director. let me first start with teddy weisberg. we know some of the names that are saying we're not going to do as well as we thought in 2015 because of a strong dollar. what is the chatter on the floor of who's next, teddy? >> well, i don't think it matters, liz -- liz: well, it does, teddy, because people have investments in a lot of names. >> well, i understand that, but we had this conversation six months ago, and it's all about the strong dollar. you know, these companies have had the wind at their back for 15, 20 years, and now, of course, the dollar's reversed, and what we're doing is we're seeing the end result of the strong dollar vis-a-vis their
3:04 pm
offshore sale ises. you know, it depends on which company it is, but most of the big u.s. multi-nationals -- and that's a lot of companies -- liz: yes. >> -- have some exposure, some more than others, to offshore markets. so none of this should come as a big surprise because this is a direct by-product of a complete switch in the dollar from being weak for years to now being strong. and it could go on for a long, long time. liz: let me get to thomas at ubs, and he is the global head of currency strategy. tom, is teddy right? does it really matter? i guess the laser-sharpness focus of the question is does every u.s.-based multi-national that has exposure overseas, will every single one of them get hit by the u.s. dollar? >> welcome to the world here in switzerland. strong currency for quite some time -- liz: i know, i know. >> it's even stronger. we see companies, obviously, complain all the time about
3:05 pm
currency that's a very natural fact that we see here in switzerland. but when you look at the details, you see that many of them have their earnings abroad, and as long as they have their earnings abroad and the costs abroad, you don't see too much happening. let's say, for example, car industry or capital goods, they have -- [inaudible] but not too much on that side. others like health care, in the health care sector, they probably saw some more. so the strong dollars that some effect -- has some effect but not all over the board. liz: yeah. i think these an important point to make, gary. when thomas says that, you can't look at all these companies the same and then trade against them thinking they're not going to do well. apple's got overseas exposure, and they may very well kill it after the bell today. gary, what are you seeing in the pits in response, i guess, to this strong dollar that's affecting the united technologies and thetizers of the world? thetizers of the world?
3:06 pm
>> everybody's been talking about this dollar rise for quite some time now, and once we broke that 95, then we get the numbers out that we got this morning, i mean, this market just went into total chaos. what we've got to look at now and in the near future, very near future, is the euro's ecb. this is going to play huge on the dollar. if that euro continues to slide down, today we saw it rise up because of the dollar's pullback and the weak product numbers that we had out early this morning, we're going to see the dollar continue its run up, and it's going to start grabbing more than just the large cap puns, it's going to start getting into the -- large cap ones -- liz: you're telling me the little guys too might be swamped by this in. >> yes, they will. if they're doing a lot of business in the oversea ises markets right now, and if the ecb has a tough time with this with their quantitative easing, if they have that issue, we're going to see the dollar continue to be the safe haven. we're seeing gold and the dollar matching each other being the safe havens right now, i think
3:07 pm
that's going to continue, and we're going to see smaller caps -- liz: okay, let me get to phil flynn because, phil, what's caterpillar's excuse? they've got a lot of overseas exposure, and yet they're also saying high energy and high commodity prices hurt them, and now that stock is falling 7%, widely-held name. >> it's going to -- i think what caterpillar's saying is that the emperor doesn't have any clothes, you know? this mantra that we've been saying, hey, the u.s. is going to be fine and the rest of the world, that's not going to impact us, well, guess what? caterpillar is telling us something different right now. everybody a few months ago was saying, oh, what a great thing, a tax cut for the -- liz: right. it's hurting caterpillar. >> yeah, exactly. and i think that's just the tip of the iceberg, liz. liz: okay. let me go back to thomas this switzerland because it's late there. i just came from there. yes, the swiss currency is very strong, yes, you often hear companies belly aching about a strong swiss dollar, but give us
3:08 pm
some advice, thomas, who do you go with now at this point? do you go with the countries that eventually will tighten sooner rather than later? >> yes, exactly. so what we see are the appreciating companies are the ones where the central bank gives a clear signal where they're going to hike. here today the fed is very much questioned because i assume strongly that the u.s. is the first one to hike rates. no one wants to take the brunt before the u.s., so afterwards we see the pound, maybe canadian dollar, they revert their rate -- [inaudible] but in the end the strength of the dollar is something which is also it's taking away pressure from the fed. but you have hoar a good case -- here a good case for strengthening. liz: good to see all of you. thomas, thanks for staying up with us. here's the euro versus the
3:09 pm
dollar, about 1.1372. we'll see if we see parity eventually. thanks to our traders. by the way, much more on the currency black hole which seems to be engulfing not all, but some major u.s. companies. this guy, wolfgang keyser, he's the guy who tries to help companies avoid currency trains before it's too late -- traps before it's too late. he's going to name at least two more names of companies he thinks are going to be swamped by the u.s. dollar. thanks to our traders in the floor show. well, the city that never sleeps stopped dead in its tracks when it shut down mass transit, broadway shows and just about everything else last night. here's a live picture, and then here's some video of everybody -- that's walking up the street. we walked straight down sixth avenue in the middle of it and took a selfie. i should show that. [laughter] maybe i'll get that to you by the end of the day. today other parts of the
3:10 pm
northeast are really still feeling the ripple effects of this storm from flight delays and cancellations to deserted times square. you never see one car will. every every angle covered. peter barnes has the latest on travel delays from reagan international airport which wasn't hit that badly, but everywhere else around it was. and cheryl casone breaking down the economic impact of the storm. peter, again, with thousands of flights canceled, it's a ripple effect, isn't it? >> reporter: that's right, liz. hey, the sun is shining here in washington, d.c., and there are planes leaving unless you're trying to get to philadelphia, new york or boston or dozens of other airports in the northeast blanketed by snow. according to our friends at, the storm forced airlines to cancel about 8,000 flights yesterday, today and even some already tomorrow, about 2800 yesterday, about 4700 today and already over 500 flights canceled for tomorrow. the industry says that a lot of
3:11 pm
these cancellations have been proactive. >> airlines have been really good about proactively canceling flights to insure that they have crews and aircraft in place when the storm clears. what we're trying to avoid is to have people stranded at the airport because that's not good for anybody. you're seeing a lot of that this time around because cancellations began as early as saturday so people weren't inconveniented. >> reporter: and she's right. we walked around here and found only maybe half a dozen people who were stranded here. the industry says, hey, technology helps, right? and also the airlines are making it very easy for people to reschedule, waiving their rescheduling fees and in some cases offering refunds if you don't want to make your trip at all. liz? liz: i'm so glad that you waved a blackberry, because i do too. [laughter] that's my idea. it's just easier with one hand, what can i say? cheryl, let's talk about the economics of the storm.
3:12 pm
listen, i'll tell you the hilton was making money. i stayed at the hilton last night in midtown, and there were such lines for food and for checking in. it was a good thing at least for some companies but bad for others. >> well, if you look overall what happens a city like new york, boston, philadelphia, it can have a major impact on economic output. look what happened in the first quarter of 2014, it was a 1.4% hit to gdp for the entire first quarter last year because of winter weather. you were talking about the economic output, it's billions of dollars per day. if you look at just new york, philadelphia, boston, it's $8 billion a day that is lost. two days? $16 billion. we potentially were looking at $16 billion. now, it's not going to be that. obviously, it is not. but then you look at what happened in particular here in new york city with the subway system. all of those businesses that wanted to open today, they could not because their employees could not get on subway trains or buses or trains coming in from long island, from new jersey to come to work. so there's a lot of lost
3:13 pm
business actually overall. now really if you look at -- well, i'll give you the winners in a second, but to the point of who loses here, seaports. look at all the shipping, the cargo in seaports in all of these cities, let's be clear here, the airports, the rail lines shutting down as well, amtrak, things like that. but, yes, to your point, there are some winners here certainly when it came to the local story here in new york city, it was the hotels because many wall streeters, many news people, most of my friends even at the networks were like, hey, come down the hilltop. yeah, i'm at home. you've got to put that selfie up on twitter. liz: you know what? i'm going to get that by the end of the show. >> i want to see that. liz: do you want to see? it's the no-makeup finish me and my son. all right, i'll do it. i'll be like hoda and kathy lee when they did the no make-up show. cheryl, thanks. the closing bell ringing in 47 minutes. can apple turn things around for
3:14 pm
technology? apple reports its much-anticipated earnings after the bell. does it all come down to the iphone 6 and the iphone 6 plus sales, and what do the whisper numbers which are far above what the wall street guys are saying tell us? we have the answers for you next. and forget, dude, where's my car, how about big brother, why are you tracking my car? "the wall street journal" report that is the justice department may be tracking your daily commute. and your other driving habits. texting while driving, hmm? we're going to el you about this. stay tuned -- we're going to tell you about this. stay tuned. ♪ ♪ startup-ny.
3:15 pm
it's working for new york state. already 55 companies are investing over $98 million dollars, and creating over 2100 jobs. from long island to all across upstate new york, more businesses are coming to new york. they are paying no property taxes, no corporate taxes, no sales taxes. and with over 300 locations, and 3.7 million square feet available, there's a place that's right for your business. see if startup-ny can work for you. go to and cialis for daily useor you. helps you be ready anytime the moment is right. cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision,
3:16 pm
or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial. the smartest or nothing. the quietest or nothing. the sleekest... ...sexiest, ...baddest, ...safest, ...tightest, ...quickest... ...harshest... ...or nothing. at mercedes-benz, we do things one way or we don't do them at all. introducing the all-new c-class. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services.
3:17 pm
they take us to worlds full of heroes and titans. for respawn, building the best teractive entertainment begins with the cloud. this is "titanfall," the first multi-player game built and run on microsoft azure. empowering gamers around the world to interact in ways they never thought possible. this cloud turns data into excitement. this is the microsoft cloud.
3:18 pm
♪ ♪ liz: closing bell ringing in 42 minutes now. look at the heat map. this is what we call the dow 30 heat map. utx, interesting, is now up 86 cents. this was one of the companies that said watch out, we are affected by the strong dollar. johnson & johnson too. minnesota mining and manufacturing, 3m up just a penny, you could call that flat, but look at all the red,
3:19 pm
caterpillar, microsoft and intel are the laggards here. but you know wall street's all about look looking ahead, not the rearview mirror. this is the one to watch now, what analysts are saying about apple earnings reporting after the bell today. q1 with stronger than expected sales in its iphone 6, it appears apple has set itself up for quite the shiny green quarter. here with us now is john scherr, whisper founder. hello to you both. right off the bat, q1, $2.59. this is the street, 66.7 billion in revenues. john, if the street has 2.59, what do you have for your whisper number in. >> we have 2.66. liz: why? >> well, because the expectations are higher. people are excited to see apple earnings quarter in and quarter out. apple usually exceeds the analyst estimates, but the real thing that moves the market is
3:20 pm
the expectation. and that's what we track. liz: no doubt it has a lot to do with the iphone 6 and, pete, that's your bailiwick. we've heard everything from 65 million to 70 million in sales for that iphone. either the big or the smaller one. what are you looking for? >> yeah. i've seen stuff even higher than that, some analysts are saying 73 million, that might be a little on the fringe. liz: really. >> but this is definitely a huge, the hugest quarter ever for the iphone. i mean, this quarter always is big, but this is the first time we've had a full quarter of the iphone 6 and 6 plus, and these were two brand new iphones. last year they technically came out with iphones, the 5c and the 5s, but those, the 5c was just a repackaged iphone 5. this time they're state of the art tough and the first time with the big screen. liz: yeah. i love the conversation with people, why did you pick the big one, that's what people talk about.
3:21 pm
but, john, people are also talking about the china syndrome. for the first time, more iphones sold in china than in the u.s. how will that affect the numbers? >> obviously, probably a positive reaction. again, it depends on what actually comes out, and that's what we look at. the expectations right now at 2.66, yes, higher than analyst estimates, somewhat moderate though. over the last two quarters apple's reported numbers in line with the whisper number. so our community has had its pulse on apple earnings. so it's interesting as a whole to see if they beat it, we should see some positive price movement. liz: so if they beat or touch whisper number of 2.66, you think the stock will move in the after market? >> they're going to have to touch it -- they're going to have to top it. just meeting it, that could dampen expectations and put a slowdown in the market. liz: pete, we started by saying it's all about looking forward and not in the rearview mirror, so let's look forward to q2 and the iwatch.
3:22 pm
does that have a meaningful power behind it? >> yeah. the apple watch. i think that's going to be -- i wouldn't say necessarily a disappointment, but it's definitely not going to ignite things the way iphone and the ipad have in the past, and this just has to do with the phenomenon of smart watches. apple has already unveiled the apple watch, and everybody is very interested, but really the whole category of smart watches is something that is like a solution looking for a problem which seems like we've just spent the last decade, you know, getting out of wearing watches, and now technology companies kind of want us to go back in, although they're not really giving quite enough of a benefit to do that. so will the apple watch do well? it's probably going to do a lot better than any smart watch ever, but that's not really saying much. liz: okay. we like the pebble guys over here because they were monk the first. -- among the first. quickly, john, yahoo! comes out after the bell, what's the
3:23 pm
whisper number in. >> it's tempered, it's 30 cents, one credibility ahead of the analyst estimate. it's got a 62% positive surprise history, but the average price move beat or miss, negative. liz: and facebook, everything else, google in a couple of days, thank you very much. pete, you look good on skype, what can i say? >> my pleasure. here from suburban new jersey. [laughter] liz: stuck in the snow. john and pete, thanks so much. keep it here. complete coverage of apple's results after the bell. david asman and i will bring you all the numbers, and we'll find out whether the whisper numbers, we just told you, 2.66, accurate. and for yahoo! we are looking for 30 cents, one cent better than expectations. keep it right here for both. closing bell, we now have about 37 minutes before the closing bell rings. hank greenberg back in court? charlie gasparino joining me next with a fox business exclusive on developments in the aug case that -- aig case that
3:24 pm
involves hank against the government. and according to the "wall street journal," the justice department is secretly tracking the movement of your car. stick around as jeff flock unveils how they've done this secret government program. ♪ ♪
3:25 pm
3:26 pm
3:27 pm
3:28 pm
♪ ♪ liz: in hank greenberg's long-standing case over the government bailout of the company he used to run, aig, many have said he didn't stand a chance of winning, but now the tides may be turning. the government isn't the only loser if hank wins. charlie, what do you have? >> well, yeah, i mean, here's what -- we should point out that the decision on the case, the judge, it's a federal judge, it's a claims court and the
3:29 pm
federal claims court in washington, he's going to make his decision probably at the end of march, maybe early april, but he still has a little while to go. he has to read a lot more briefs. probably hasn't come to a decision yet. that's what most people are expecting, in march. and this decision, if hank wins -- and i say if, but a lot of legal scholars think he has a good chance given the fact this is a very pro-shareholder rights judge. that's what this comes down to. shareholder rights were trampled on by the government which basically wiped out aig when it bailed it out. could have accepted, hank said, hank is arguing other terms, a potential partner in china. ignored that just to take over the company. and, essentially, use it as a vehicle to bail out other companies. remember, they were at the center of the financial crisis. if you bailed out aig, goldman sachs got bailed out. it was easier to bail out aig than goldman sachs and morgan stanley -- liz: piecemeal, yeah. >> the only way they could do it
3:30 pm
through them, hank argues, is by taking it over, and the only way to take it over was to wipe out the shareholders. and he thinks that's an illegal taking. who's the big loser if he wins? well, the federal government could be on the hook for $50 billion, that's something along the lines of what he's asking for, but the other loser would be aig, and here's why. a irk g had a chance to join -- aig had a chance to join hank's case, and it was a story we broke here on fox business. we were the first to report that they were not going to join the case, and they didn't. and they're going to lose out on those -- liz: and the board at the time accepted the bailout deal. they claim they were under duress, or at least some do. >> the new board of aig for the new company, you know, supposed to have a fiduciary respondent to the shareholders? well, guess what? it gave up on a potential -- liz: probably thought hank couldn't win. >> are yes. and i -- liz: you had 50/50, i think i
3:31 pm
had 60/40. i thought that he had a chance because the judge seems to be at least sympathetic to hank's argument. >> see, i think -- yeah. and i think aig, from what i understand, aig was worried about the optics of joining the case. you are actually suing the government after the government bailed the company out. but hank makes a more, it's a deeper, it's a deeper sort of case here. he's not saying they got bailed out, he's saying, listen, we got wiped out to bail out everybody else. that's basically what he's saying. and, yes, we did survive, but we survived only by ignoring other, better potentially better plans for aig so we could help bail out goldman and morgan stanley. remember, aig insured all the debt on the books of those companies, all the toxic debt, the housing-related debt that was underwater at the time. so if you bail out aig, you de facto bail out goldman sachs. it's going to be interesting. march, aig is going to be
3:32 pm
playing some degree of damage control if he wins. the company decided not to take his case. liz: folks, that'll be a huge headline -- >> you survived davos, right? liz: yeah. and you did too. thank you very much. >> cnbc? we beat the hell out of them, didn't we? liz: closing bell ringing -- [laughter] in 28 minutes. earnings season, and while some big multi-nationals, as we mentioned, these are companies that do business overseas, one commercial real estate giant with a large footprint overseas, particularly in europe, is hitting it out of the park. i call it how to succeed in europe without really trying. but, boy, he's definitely tried and succeeded. we're speaking exclusively and chairman and ceo. they on more rooftops of warehouses than any other company in the the world. 500 million plus square feet. stock hitting a 52-week high
3:33 pm
today while the rest of the market is down. and is the government spying on you while you run into the grocery store, drive to work, cheat on your wife, use the bathroom? jeff flock has that story next. stay tuned. ♪ ♪ hard it can breathe with copd? it can feel like this. copd includes chronic bronchitis and emphysema. spiriva is a once-daily inhaled... ...copd maintenance treatment... ...that helps open my airways for a full 24 hours. you know, spiriva helps me breathe easier. spiriva handihaler tiotropium bromide inhalation powder does not replace rescue inhalers for
3:34 pm
sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva. discuss all medicines you take, even eye drops. stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells,... you can get hives, vision changes or eye pain, or problems passing urine. other side effects include dry mouth and constipation. nothing can reverse copd. spiriva helps me breathe better. sfx: blowing sound. does breathing with copd... ...weigh you down? don't wait ask your doctor about spiriva handihaler. dentures with toothpaste or plain water. and even though their dentures look clean, in reality they're not. if a denture were to be put under a microscope, we can see all the bacteria that still exists on the denture, and that bacteria multiplies very rapidly. that's why dentists recommend cleaning with polident everyday. polident's unique micro clean formula works in just 3 minutes, killing 99.99% of odor causing bacteria. for a cleaner, fresher,
3:35 pm
brighter denture everyday.
3:36 pm
3:37 pm
♪ ♪ liz: i want you to look at this company right now, pld, it owns more rooftops than any other real estate company in the world. we're talking about 590 million square feet overall. these are over thousands of buildings.
3:38 pm
what's in them that they now have an unbelievable occupancy rate but not just in the u.s.? over the past year, the stock is up some 30%, hitting a 52-week high today, but despite the economic troubles particularly in europe, that's precisely where the company is seeing strong growth. i want this story. i hope you do too. we've got it in a fox business exclusive, prolodge's chairman and ceo. wonderful to see you, hamid, thank you for joining us. >> thank you. nice to be back. liz: well, how did you do it? you've got a 95% occupancy rate for your industrial buildings, specifically in europe. what are you doing right that you're able to have such a positive europe story? >> well, we have a great portfolio around the world including europe, and quality always does well. but the european markets in our business have not been as terrible as the headline suggests. at the low point we were in the low 90s in occupancy, and we worked that up to about 95%
3:39 pm
today. in fact, we were up about 200 basis points of occupancy just recently. and we're outperforming the market because of that quality. so partly it's that the market is not as bad as everybody thinks, and partly we've got a great portfolio and a great team. liz: i don't mean to cast a negative pall, but we got a terrible durable goods number today, down fourth month in a row, and that's -- those customers are the people, i guess, that you're talking about. who are your customers, these big industrial companies? i don't care if you mention u.s. or europe or anywhere else, but who's renting your buildings? >> if you look at anything in your studio or on your desk, it's likely to have come through one of our warehouses. so our business is very broad. of course, durable goods are important, but consumption is even more important. and quarter by quarter changes in numbers don't really affect us all that much. so i think we are in a secular
3:40 pm
growth mode certainly in the u.s. europe is recovering a little slower. asia's doing somewhere in between. and the real big story is not really demand, it's supply. the supply of new industrial product has been a fraction of what it usually is at this point in recovery. so vacancies are going down, and we're getting pricing power, and rents are going up, occupancies are going up everywhere, and our development business is beginning to get to normal cycle type levels. liz: you also have a dividend. 2.9%. that's an interesting story when people are always looking for yield. let's go to the greenback. everybody's talking about how the muscle-bound dollar is hurting a lot of big companies that develop goods overseas. do you see any negative effect, i guess, in the next quarter or current quarter that might hurt you in the future? you have to anticipate the worst, don't you, hamid? >> sure. in fact, we have anticipated the
3:41 pm
worst. we are an asset-heavy company, we own buildings, so we need to insulate ourselves against currency movement. so what we do is we actually own assets in local currency, and we have a lot of matching debt in the same local currency. so our u.s. portfolio is less levered, our overseas portfolio is more hedged because of in this leverage that matches the assets. so we actually have had less than a penny of impact from not only the euro, but also the yen which has depreciated significantly. so we've anticipated changes this currency both good and bad and built a business structure that insulates us from that. liz: well, see, that's what other companies that are supposed to be smart hadn't done. you obviously know your currencies and how to hedge. thank you, hamid, we'll continue to follow your story. >> thank you. liz: prologus ceo and chairman. these are the stories that can
3:42 pm
possibly make you money in the future. hopefully, you bought it before when we last profiled them. for all you commuters driving to work, did you know that big brother may be watching your every move as you drive? okay, we're not talking about cameras here, you know, the cameras on the street that bust you for running red lights. according to "the wall street journal," the justice department has a database to track in realtime the movements of millions of cars in the u.s. is this something to worry about? is this a privacy red flag or actually a safety must have? let's go to jeff flock live from chicago who's been digging into the story that was first broken by the journal. jeff? >> reporter: it is fascinating. the journal has set you off a firestorm on both sides of the issue, and i tell you, it is about what data the government is gathering that a lot of people did not know about. as you point out, it's not just cameras. take a look at this though, this is on interstate 95 on the maryland/virginia border. according to "the wall street journal," there are cameras that have also license plate readers
3:43 pm
in them that can compute and find out what the license plate is as the car goes by so it can track where you were, which direction you're going. some of the cameras can even capture your picture. license plate readers are nothing new, as you may know, private companies do this as well trying to repossess vehicles. we got one example of how this works, and you've got to see this, vigilance solutions. fascinating, take a look. >> we decided to make a quick sweep through a parking lot here. as you can see, there's a number of different cars. and we're watching car detector. as we can see, car detector is popping up every fleet, oscillating back and forth between the passenger and driver side cameras as it picks up each of the different cars. and we'll sweep every single car or we'll scan every car through this sweep.
3:44 pm
>> reporter: isn't that amazing, liz? it's just fascinating to see, fascinating, liz, to see how this works. the government is doing it, apparently, with fixed cameras. but you see how that worked there. kind of chilling to a lot of people. the aclu spoke for a lot of people today when they said, you know, this is, this is something that we really should know about if we're going to do something like this. liz: well, of course -- >> reporter: it's been in secret up to this point. liz: by the same token, sometimes these things solve murder cases. tough to say. >> reporter: absolutely. there's an argument on both sides of the issue. but as you point out, if you're out cheating on somebody, they might know -- liz: so you and i both saw richard gere's movie, arbitrage -- >> reporter: lived that many years ago, but i've smartened up since then. [laughter] liz: jeff, thank you very much. jeff flock. the closing bell, about 15 minutes away, we've got a tough market day here but not as bad as it was earlier.
3:45 pm
we were down some 390 points on the dow earlier, now down 259. can hurt investor confidence, but our next guests both say forget investor confidence day-to-day, there is always a way to make money. but they have different ways. you're going to hear their best investment ideas next the you've got the risk and the stomach for that. ♪ ♪ opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.
3:46 pm
3:47 pm
having a perfectly nice day, when out of nowhere a pick-up truck slams into your brand new car. one second it wasn't there and the next second... boom! you've had your first accident. now you have to make your first claim. so you talk to your insurance company and... boom! you're blindsided for a second time. they won't give you enough money to replace your brand new car. don't those people know you're already shaken up? liberty mutual's new car replacement
3:48 pm
will pay for the entire value of your car plus depreciation. call and for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch to liberty mutual insurance and you could save up to $423 dollars. call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance.
3:49 pm
liz: market selloff, closing bell rig in about ten and a half minutes. looking at the big board, a loss of 273 for the dow jones industrials, had been down 390. nasdaq was down 112, it's down 80 now, so slightly looking better, but you could blame that dollar, right? it wasn't long ago that investors were piling in to the
3:50 pm
high yield market and for good reason. global high yield bonds gained an average of 16.4% in the six years after 2008. that's the average. but junk bonds have fallen out of favor recently, as they've also known to be called. investors continue yanking millions of dollars from risky, high yield mutual funds and now adding fuel to the fire, multi-nationals which make up a good chunk of the high yield index are getting slammed by currency exposure. so where should yield-hungry investors put their money today? is it time to go abroad or stay here and find some other nuggets? let's bring in bmo's senior investment strategist and ron heller, yes, former super bowl winner for the 49ers. hi to both of you. good to see you. >> good to see you. >> good afternoon. liz: brent, multi-nationals are getting slammed by the dollar. is this a one quarter deal? it doesn't seem like it is. >> i would think it's more of a one quarter, two quarter type of
3:51 pm
thing. think back to the 1990s. liz: ron, multi-nationals are a big part of the high yield market, you like that, don't you? how do you make sure you're investing in a company that doesn't have horrific exposure? because not all of them do. >> yeah. that's why you can't buy an index basket. you have to be securities selective, and you've got to do your homework on the fundamentals side and know where your risk is. liz: well, brent's risk is overseas. brent, this is very interesting to see why you feel that it's really time to go overseas, and specifically you can get to some of your picks right now because people are dying to hear where they can find yield with a little bit of risk but at least some reward. >> yes. you know, to back up and put it in perspective for the past five years, since march 2010 we've had an overweight to the u.s., and for much of the past year we've spent time decreasing that and moving more toward
3:52 pm
international, and that's really a monetary policy call. about a year and a half ago the euro skeptics started becoming more popular in europe, and that was the impetus for the ecb and for the fiscal authorities to stop austerity measures. and so if you look overseas right now, expectations are extremely low, banks are actually beginning to lend, and the fundamentals, valuations are a lot lower. so we've become more interested in moving money towards the eurozone. this is an index -- etf which is a dow jones stock which yields about 4% and gets exposure to those countries in europe and the european monetary union. and we believe that's a decent investment going forth. liz: germany, france, spain, you also like evid which is the emerging markets dividend. that kind of hunts and gathers some of the names that give you those dividends. this one provides exposure to china, taiwan and korea. let me go to ron and, ron, why
3:53 pm
should investors choose bonds instead of just the companies themselves? >> well, i mean, we get a big, tangible fixed income. we get paid every single month off our high yield etf, you know? we get about a 9% coupon, about a 12.5% total return with a two-and-a-half year duration. i don't know of any stock market that's going to return that for you month in and month out. and with the contagion in the high yield market, it's a huge market between bonds and loans, about $3 trillion, there's a lot to do. if you can't find 70-100 securities with that kind of safety with those kind of numbers, then you're looking in the wrong places. liz: well, you like titan international, again, the bonds of these, and you also like iam gold which is a mid-tier mining company. what kind of returns do you see with these two names? >> absolutely. titan is just over 10%. again, look at caterpillar. the new issue market or the new product market is slowing dramatically, so titan makes
3:54 pm
secondary market tires and wheels. people aren't going to buy new tractors and farm equipment, so they're going to replace their tires and wheels, and it's a great thing. it's just been marked down 15 points not because of anything fundamental with the company. liz: brent, do you have an etf that you like for those investors who simply want to stay put in the? >> sure. i guess in the u.s. we've stuck more with the value type stocks. the big fear is deflation, and we believe it's highly unlikely in 2015. in fact, as the eurozone reflates, that will actually with, you know, cause bond yields to move higher, etc. liz: okay. >> so in the u.s. we would focus more on value type of stocks. iwd, ticker symbol, and since the recovery has began value versus growth has been delineated by whether yields are moving up or down. you should focus your portfolio more towards value stocks. liz: okay. value stocks it is. good to see all of you.
3:55 pm
ron, do you think de-flategate is going to affect the psychology? you having won a super bowl for the 49ers, going to affect the psychology of the patriots? >> it will. it's taking less time for planning, for preparation, you're spending more of your mental time talking about de-flategate rather than strategy and your opponent, you need to get that cycling edge -- psychology edge, so it will affect them. liz: i think so too. good to see you. closing bell five minutes away. we're off session lows, we should tell you how to prepare for tomorrow, but apple's about to release earnings after the bell. will the iphone 6 sales amaze? and we can tell you what to expect during your morning commute tomorrow. this was mine today. my son and i, dewey and i, trudging through snowy midtown manhattan right smack in the middle of sixth avenue. right by radio city. we stood in the middle of the
3:56 pm
street. that never gets to happen. stay tuned. ♪ ♪ recently, a 1954 mercedes-benz grand prix race car made history when it sold for a record price of just under $30 million. and now, another mercedes-benz makes history selling at just over $30,000. and to think this one actually has a surround-sound stereo. the 2015 cla. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services.
3:57 pm
3:58 pm
you are gonna need a wingman. and with my cash back, you are money. forget him. my airline miles will take your game worldwide. what i'm really looking for is -- i got two words for you -- re-wards. ♪ there's got to be better cards than this. [ male announcer ] there's a better way with compare hundreds of cards from all the major banks to find the one that's right for you.
3:59 pm
it's simple. search, compare, and apply at first round's on me. liz: with the vix up nearly 16% there is lot of fear in the market. david: it was worse. looks like creeping toward 400 to the negative side. look what is coming with nicole petallides and of course apple is reporting earnings. we're expecting a jump of 7% either way, depending on the numbers we get. >> we'll see. everybody is expecting a jump in revenue. apple is hot product. we read reports about them gaining market share but question is will they meet expectations wall street. we know it's a great company but it is all about the expectations. it has been a great performer up 40% offer the last year or so. liz: you know what might be juicier? yahoo!. yahoo! is on deck. they want to know what marisa mayer is will say or do.
4:00 pm
>> they have a lot of asian exposure. [closing bell ringing] david: we didn't talk about microsoft. techs getting killed. microsoft down almost 9%. but bells are ringing on wall street. liz: let's see how stocks finished. dow industrials getting hurt, i wouldn't say crushed but down earlier 390 points, the worst percentage drop since 2011 of the of the russell 2000 down half a percent. what does that mean? that means the small caps don't have as much exposure to stronger u.s. dollar. david: that's a great point. that there are other bright spots in the mixed picture. we've seen a lot worse today. the question is what will we see from apple? we'll know in 30 minutes. we'll take you there. "after the bell" starts right now. liz: 15 and 3 -- 4 spike in the fear index. david: wow. z:


info Stream Only

Uploaded by TV Archive on