tv On the Money ABC June 26, 2016 7:30am-8:00am EDT
hi, everyone. welcome to "on the money." i'm becky quick. a stunning move. why it matters to you and what it could mean for your money. the most reliable new cars you can buy. what the big sur va says may surprise you. speaking of cars, will the marriage be a happy one? our conversation with gmc's mary barra. of course, is this really a good thing? >> you don't have to wait for a drink at the bar. you go right up. >> "on the money" starts right now. >> announcer: this is "on the money," your money, your future. now, becky quick. >> stunning developments overseas. the united kingdom has voted to exit the european union. does this mean that great britain will become little
england or is it going to unleash itself from bureaucratic control. and why does it matter to the average american? joining us is the council of foreign relations president. what happens now that they voted to leave? >> the process begins and it will be a messy divorce between the united kingdom and the eu but i think emotions will split within the uk itself. instead of being the united kingdom, i think scotland will have a referendum and go its own way, people in ireland will want to unify with ireland. this is the beginning of the end of a country that's had a glorious history. >> is it the beginning of the end for the eu as well? >> that's hard to say but quite possibly. if not the end of it, certainly the change of it. you will see other countries that may want to have their own referenda. it creates questions
european project which began after world war ii and to knit germany and france so closely and the scary thing, the frightening of this is it may have set in motion trends which the entire european union project will begin to unravel. >> you know, it is reflective of the populist anger that we see here in the united states, not just playing out overseas, we've seen it in asia and all around the globe as the voters seem to be pushing back against the institutions that they feel don't have a voice or say in and they feel like they haven't got answer fair shake from. >> absolutely. in the case of the eu, it's seen as inefficient, the phrase is a democratic deficit. it's remote and people affected by it feel in turn they can't affect it. it's the same way that people vote in this country against trade agreements because they are unhappy with globalization or worried about it. >> or they lost their job? >> or they lost their job.
the problem is, this is against the eu and the price of britain will have all kinds of consequences. people wanted to clearly send a message but my guess is in a couple of weeks there's going to be voters' remorse or wake up with a hangover because they will wake up with a poorer country that could unravel, certainly will have much less influence to the united states. also, britain will become a less important country. the so-called special relationship is about to become a lot less special. >> we've learned from all kinds of candidates and elected officials here in the united states already saying that that special relationship will stand, that they are our closest allies. what does this mean for the average american? >> for the average american, probably the biggest thing to take is that the european stability that has done us so much good and a message to us, what i think they should take from this is the same kind of that led to the surprising vote is here in this country. we have to think very
what this country's relationship is with the world and a real message to people in washington or institutions like the congress. they have to be responsive to the american people. it could be a wake-up call if in fact they are prepared to listen to it. >> what could the response be here in the united states or what should the response be if this is a wake-up call? >> it ought to be that kind of business as usual, what we've seen the last three years, the sequester, we can't have default. for people hurt by globalization or trade agreements, we have to make education and training a serious offer for the american people. we've got to make it possible for people to navigate this dynamic world where the united states can exist and can thrive in isolation. >> richard, thank you for your time today. >> thank you, becky. now that britain will be breaking away from europe, will your retirement savings take a hit?
on friday morning expecting that britain would stay in the eu because that's what the markets told them and conventional wisdom. they got a very different market reaction. what do you do if you're thinking about retirement or the average person thinking, holy cow, what's happening to my savings? >> don't overreact. you're right, the markets have priced in the idea that britain would remain part of the european union. i'm not sure why the markets were convinced about that but they were. you had two emotional reactions on friday morning. first of all, you had shock because a lot of people, especially the other way, and disappointment. and markets, of course, feed off of emotion. you see a big global selloff in stocks because of this. but to be honest, you've got to look at, particularly if you're a u.s. investor, does this really change the outlook for american companies and global companies? it's a big problem for a little country. great britain is less than
global gdp. it's a minuscule part of exports to britain are a very small part of the u.s. economy. i don't think it's going to derail the u.s. economy or the global economy. markets, as usual, have probably overreacted. investors should stick with a long-term plan and not overreact themselves. >> what i'm hearing from you is don't sell, hold on to things and potentially buy even more or is that saying too much? >> well, no, it's not saying too much. if you're going to be getting in and out of the markets, the best time to get in is when everybody else is scared and there's a lot of fear about this. it's a big deal for britain but britain will have more than two years to try and negotiate the terms of its divorce from europe and businesses will adapt, europe will adapt, britain will adapt to that. it will be negative for the british economy but not horrendous for the british economy and i think for the global economy it should be okay and meanwhile you have very low
united states and given those low interest rates, stock prices still look pretty good. if you see them fall, just as well as the case in january of this year or august of last year, may be a good time to put money to work. >> part of the problem may be that heading into this vote, there had been global leaders, there had been business leaders and there had been economists telling us this would be a disaster if britain voted to leave the uk. were they doing a little fearmongering? >> i'm afraid i think they were. economists are trying to scare the british people to some extent into doing what they thought was the right thing but may not -- should not cause a catastrophe and for all of the other economies in the world, it's not that big of a deal. i think the problem was that people were sort of trying to argue a point very voice sir rousely and emotions may have gotten ahead of him here. >> david, thank you. great talking to you. >> thank you. >> again, david
now here's a look at what is making news as we head into a new week "on the money." stock markets got hammered in early trading on friday after that brexit vote. the dow plunging nearly 500 points right at the open with the s&p 500 and nasdaq following suit in that decline. stocks continued to fall by the end of the day. janet yellen testifying before congress this week and saying that there's still considerable uncertainty in the u.s. economy. she also says that the fed will proceed cautiously in raising interest rates and any hikes will be gradual. a macy's ceo is stepping down from his job for 13 years. lundgren is one of the best ceos of the era. macy's is facing online competition like a lot of retailers. up next for "on the money," what's the most reliable car? the answer
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every year jd powers surveys car and truck buyers to find the most reliable brand and frequently you'll find a luxury name right at the top of the heap but this year a korean brand was the winner. turns out, buyers want technology that is easy and works. phil lebeau has more. >> reporter: amy nelson from illinois loves her brand-new landrover. it's stylely, room me and the latest technology that doesn't overwhelm her. >> the appeal to me is it didn't have all of the bells and whistles and so it was simple and clean on the inside and was a good fit for me. >> reporter: jd powers says automakers are doing a better job with the
systems going into new models while glitches is the problem with new car buyers, the technology is becoming more reliable. >> manufacturers are really simplifying their controls to only show those controls that are most relevant for consumers. >> reporter: so which brand had the few west problems with its newest model? kia. the first nonluxury brand to top the survey in 27 years. ranking just ahead of porsche, hyundai, toyota and bmw. for the first time, the big three showed better reliability with the jeep brand showing the biggest improvement despite reports of dozens of accidents linked to a gearshifter that may confuse drivers. quality and reliability have now become a top priority for winning over
taking care of customers and i don't think this recall affects us this much because we take care of our customers. >> reporter: now that she's found what she's looking for, amy nelson believes this suv will live up to her expectation. >> safety and reliability was key and having a car that looked good was a great idea, too. >> reporter: it's about more than just looks. overall, the auto industry is doing a better job with the new vehicles rolling out of the assembly plant and that goes for the big three. as i mentioned during that report, becky, this is just the second time in the last 30 years ford, gm and fiat chrysler all improved their reliability in the same year. becky? >> thank you very much, phil. you shouldn't count out the u.s. w it comes to the future either. mary barra is bringing silicon valley to detroit. she's overseeing the
sharing service lyft and cruise auto mags. it's all part of the future of the company and the future of cars. i recently spoke to barra at a business conference about technology and driving into the future. >> early next year, we'll have a super cruise, where you can take your hands off the wheel and feet off the pedals but you still need to stay alert. but i believe we're on the journey. with the acquisition of cruise automation, of being able to use software and coding, here's precisely where i am, here's what is happening around me and here is the safe path and that's what the acquisition of cruise is about. i believe there will be a day when you get into the back seat or get into some suit because the configuration will be different and you are going from point a to point b completely in an autonomous vehicle. >> do you see that happening five years down the road, ten years down the
>> the day you go to a vehicle and buy an autonomous vehicle and park it in your garage is a ways off but starting to have the opportunity as a consumer to be in a vehicle with a safety driver, i think it's sooner than you think. >> you definitely are paying attention in the silicon valley to what some of the technology companies are doing and people are trying to figure out if apple is going to build that car in the future, is tesla going to build it, is gm going to build it. what do you do to make sure gm is still the car company of the future? >> well, we've had operations and people in the silicon valley for years now. it's important to me because it's the art of if i believe i can do it, i can do it. and that's what i'm working to drive into the company. so, you know, i don't know what everyone else is doing. i can't -- you know, you know as much as i know or maybe more about what the other companies are doing. all i can tell you, from a general motors perspective, with the core technology and experience we have, understanding functional safety and how to integrate
in an infinite number of weather conditions, road conditions and having that piece of machinery last for on average 11 years right now, but much longer than that. i think that experience coupled with the software that really allows you to safely choose the route is something that general motors definitely can do and we're intent on doing and leading. >> you said something very interesting. with silicon valley, that can-do attitude, these are things that we can make possible. do you run up against headwinds at an old gm culture so that maybe you're like, well, that's a little too difficult to come up with? >> i think we keep challenging people but volt was a great example. the team came in and said we can do this in amount of time or give you more miles but it's going to take longer. we said great let's do that miles in this time frame and they went, great, but they did it. and sometimes -- i mean, i'm an
we have it figured out before we make the commitment. that's when they are at their best when they are challenged and the workforce is so excited, even if they are not particularly -- even if their assignment is not working on the autonomous vehicle, they are excited about it and that's what you tap into. i'm really proud of the fact that over the last four years we've improved our employee engagement by 40%. we're attracting people from around the globe. one other thing that people -- they think about general motors of this old company. 25% of our workforce is less than two years experience. so it's a very different general motors than what people think. >> do millennials actually buy cars? we hear about ride sharing and apps like uber. are they buying cars? >> they are. the big issue that negates that is
millennials are doing the major life events seven years later. so whether it's buying that first house, when you decide i need my own vehicle defending on where i live. the nature of the customer, how they want to get from point a to b is changing but i think our core business is going to be very strong for a long, long time. >> our thanks to mary barra. up next, do-it-yourself
i always tell people it's like dave & buster's meets a frozen yogurt time of deal. >> you walk around and if you want that, you can. >> i've never seen anything like this before. when you go to a bar, typically you have to wait a long time to get a drink. so this is really convenient. >> the novelty of being able to pour it yourself seems to be really fun for people. >> bartenders beware, more and more bars and restaurants are tapping into a new trend where the customers pour the beer in the amount that they choose. joining me is josh goodman, the founder and ceo
and new york city paloma rocket which uses the pour my beer system. thank you for being here. >> thank you. >> josh, first of all, how does this work and how did you come up with the idea? >> well, it started in a basement, or actually a bar. a couple of friends of mine were at a bar, couldn't get a drink, and we said there's got to be a better way and started with beer taps on the table and then the wall and thousands of hours later, we are where we are. >> how do you make money on it? >> we sell a software and hardware to the customer and have an ongoing support and maintenance agreement and, you know, it seems to be working out pretty well. >> jeff, you're the first bar in new york city to come up with this and they didn't approach you. you love this idea and found them? >> yes, actually. i hunted josh down via the internet. and we are actually the only bar right now with a fully self-serve beer tap system in new york. >> why do you think you needed
guests love being interactive and touch screens and having control of, you know, what you want to taste and how much you want to taste, i think this is a best way, really, to taste a lot of the beer brewers products that they have now. >> when did you put the system in and what's been the reaction you've gotten from customers so far? >> we had our soft opening a few months ago and customers love it. it is such a fun experience for them. we have people who come back all the time. we actually had a couple come in and have their wedding party there just a few weeks ago. >> that's a good idea. >> we have a lot of return customers and they bring their friends over. basically, the closest thing to having your own bar at home. >> josh, i get it. i get the appeal. as a former bartender, should i be afraid that you're taking jobs away? >> absolutely not. they are always going to have a home within our concept. we found that we are taking the wall down between the bartender and the
bartender interact with the customers and build more rapport and the tips are built in to the price per ounce. much like gas, depending on the amount that you put in your car, the amount you put in your glass is what you're paying for. >> how many locations? >> we've done 280 installations of the system that is in jacqueline's property, it's 51. we came out with it last year and we're now in cruise lines and doing things in brazil for the olympics and all over the world, even australia and europe. >> josh, jacqueline, thank you both for being here. it's a pretty cool idea. >> thank you, becky. up next, "on the money," a look at the news for the week ahead and take a look at how the stock market ended the week.
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ago into a new american century. born with a hunger to fly and a passion to build something better. and what an amazing time it's been, decade after decade of innovation, inspiration and wonder. so, we say thank you america for a century of trust, for the privilege of flying higher and higher, together. ♪
tennis championships begin in london. we'll see if djokovic can win again. on tuesday, the gdp comes out for 2016. on wednesday, a look at the health of the consumer with personal pending numbers for may. at the end of the week, automakers report their sales for the end of june. that's the show for today. i'm becky quick. thank you so much for joining us. ne next week, the 20 something couple planning to see all of the national parks in one year. quite a task. keep it here. we're "on the money." have a great week and we'll see
♪ they go ooh ooh. hey! ♪ ♪ they go oh-ooh-ooooh. ♪ sitting, watching, waiting, wishing. ♪ ♪ i tell you one thing, you never knew it. ♪ ♪ at the back of the bus ♪ there is so much to give, so dream big. ♪ yeah. ♪ ♪ and when they screaming get out, get out. ♪ ♪ll i wanna hear is t down, get down. ♪ ♪ yeah.
♪ll i wanna hear is t down, get down. ♪ ♪ get down, get down. good morning, america. new overnight, muddy mess. receding flood waters revealing the devastation from relentless rain in west virginia. cars piled on top of one another. roads washed away. a major golf tournament canceled. president obama taking action this morning. changing course? donald trump facing new questions on his proposed muslim ban. what he's saying now. >> would a muslim coming from scotland or great britain, have you tweaked your policy on that? >> it wouldn't bother me. >> hillary clinton claims trump is backing brexit for his own bottom line. pride on parade! the celebrations across america and around the world with emotional tributes to the lives lost in the nightclub massacre. >> all: we are orlando. >> the tight security.