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

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single ford vehicle he wants to make sure will be available, whether diesel, regular gasoline or electric. [closing bell ringing] david: like an electric mustang but the must strange is such a classic. classic look continues even now. liz: bells rang on wall street. let's see how stocks finished up. russell made only gain here but these numbers are still settling. that could change. nasdaq losing a fraction of a percent. the dow and s&p losing identical percentage points here, about .43. tough day even with data. david: we're expecting more good data tomorrow. everybody thinks the jobs numbers will look good. that would lead to early taper than many thought. that is leading to the downturn. when you hear of fear and panic with other times of tapering talk this is not as bad as it looked. let's take a look at your front page headlines as we head into this hour. the economy grew at a much faster pace in the third quarter than previously estimated. commerce department said gdp
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surged at 3.3% annual rate. that is ahead of expecting of the 2.8% pace reported early. liz: there was surprise in weekly jobless claims data. number of people applying for first-time benefits unexpectedly dropped to 298,000 last week. david: atlanta fed president dennis lockhart said it is time for the federal reserve to think about tapering easy money policies. he did not indicate whether the fed would consider taper at its meeting later this month, that is about two weeks from now. liz: european president mario draghi says inflation will be below targets next two years. ecb is ready to boost the economy if necessary. holding interest rates steady. david: new york mayor-elect bill deblasio appointed former new york city police commissioner, william bratton. he served during the giuliani
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administration during the mid 1990s but he was fired. liz: ford unveiled the new version of eye coon nick mustang, it will go on sale at the 50th anniversary of the launch of iconic mustang. time fore"after the bell." david: i have should mention by the way the floorboard of the '67 mustang that chris noth had was not there. it rusted out. we were looking at road beneath our feet. what you do in college, crazy stuff. we have lee munson, portfolio manager, chief investment officer will explain why he doesn't think the fed will taper soon no matter how strong the economic data. we have tim mullen in the pits. tim i want to start with you. the looks like the market is ready for a good jobs report, perhaps, as a result earlier
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tapering than we thought, correct. >> that is the thought in the market action but when you look at bond market and the way the selloff ended i think there is hesitation. if we get a jobs number there is no certainty fed will stop anytime soon. even if they do they're adding liquidity. david: it is not certainty. they're hedging their bet. there is a little bet hedging going on, right? >> i think so. the other main point today, yes the gdp report was stronger. but have the gain came from inventory. that caused a lot of expectations for estimates for q4 to be sub1%. you take with one hand and give with the other. as far as tapering goes that is still debate. you want to watch on december 1th and 18th. i'm not so certain that is on the horizon. liz: that gyrates things definitely. lee, we'll bring you into the conversation. the fed is clear that the unemployment rate truly matters at the moment for the federal reserve before they will make any kind of a tapering decision.
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what do you think the is real story when we see that and does the market react as badly with the first mention end of may, beginning of june? >> i think one thing we have to remember investors are crazed on this taper on, taper off debate. there's a lot of people that have this perception of the fed like a dentist with a new lamborghini will oversteer into the wall. we're talking cars. these are like skilled drivers driving porsche gt-3. meaning in the rain they will slide a little bit. what we're looking for tomorrow is an indication that the job reports are great. you may have a trade because people may sell on that news. but at the end it will take months of this good data. the fed will not come in next week hey, did you see the numbers last friday, let's stop the taper. we have to stop overfocusing. we have to see six, 12 months of solid improvement before we'll actually see the taper. david: lee, i'm just wondering, pulling back for a second here,
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do you think it is rational for stock market to focus heavily as this one is on money printing? >> you know, that is the 64,000-dollar question. number one, the fed is part of the fundamentals, because they're driving nominal gdp. i know we hate to say that but it's true. however, the rub is, is that, we have to remember that when that money-printing stops, we have to make sure the economy can stand on its own. the issue now that we haven't dealt with in my lifetime, really anybody's lifetime on the show today, we haven't had a time where the recovery has been so mediocre and so lackluster it does feel like we're depending maybe a little too much -- david: i was born in 1911. i remember a time like that. liz: tim -- >> you got me. liz: tim, let's talk about one very evident piece of, i guess market reality, that is as long as the federal reserve is very
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much in play with quantitative easing, equities look good. or is this something that you can advise our investors to look out for where there might be signs of stress fractures or little cracks? >> yeah, i mean, sure for the short term this all looks good but when you look at it, mohammed el-erian made a comment, $4 trillion of fed asset purchases, we're a free market economy but that is the biggest government intervention in history of the world but only returned a quarter of a percent to gdp. i don't see where it has been driving gdp i think it is having other events. look at the market up 25%, on 2% revenue growth, 5% eps growth. the bigger problem is investment. investment is down 16%. that tells you what is for the future. for the long haul i think that's a concern. i think right now -- liz: in the last hour we had a stock-picker who recommended a name called lithia. he also recommended stocks that have done not as well for example in the past but then ford, up 46% over the past year.
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you got to give credit to the product that is some of these companies make and the way they're managed. it is not just money has been free and fed is floating it in a fake way, right? >> you're right, liz. that's a good point. 70% of the s&p 500 is above the 50-day moving average. this correlation, even best performing stocks have been the most leveraged and probably worst stocks you can think of, highly levered, less quality stocks. ford has been good with auto sales. keep this in mind, this easing, herising tide lifted all the boats in the market. david: lee, he brings up, tim brings up an excellent point which investment is down significantly just as companies are paying back to shareholder. listen i have nothing against greed in and of itself, i'm kind of neutral on it. its actions inside of the marketplace but seems like the focus pushing up stock value has perhaps even sacrificed
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investment needs, no? >> i think we have to think long term. if we can actually get some growth in this economy, then it is going to make up, we're not at a multiple that is so high. i understand that the 50 day moving average. i used to look at charts. i still look at charts and i love technicals but we have to remember market as a whole as aggregate is not priced so high we're in bubble territory that we were couple years ago. david: the question specifically, if you're thinking long term you should not be sacrificing on investment as a lot of companies are in order to boost up share value, right? >> i agree with that and i think that's why if that's the case which i think that case can be made. i will see that point. so if that's the case you have to go where value is. i'm looking buying more in the u.s., small cap value. international, you know, in emerging and developed markets go for those value indexes or value etfs versus the growth stuff because it's true, a lot of that growth stuff is crap. it is overleveraged, it is low
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quality. i love netflix but i'm not sure it needs to be up almost 300% this year. so i'm with you guys on that. mr. is plenty of great places to buy cheap areas of the world. if you focus on that, march begin of safety is there if you're right, then you have less money to lose than buying the -- liz: on our screen we have your emerging market value fund, reits, are great plays. is dividend play over or almost seeing renewed signs of life? >> what i love, look at reits last month, they got slaughtered down over 5%. getting all hot money chasing yield. theyywanted to get two or three times more than 10-year treshall the hot money is leaving, now the shares as buffett said, go back to the rightful owners, my clients. not that the dividend play is alive or dead, you're getting hot money out of dividend plays. it is getting valuations where it is attractive and now i think is more healthy.
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don't try to find high yield. find quality valuations. david: like disney. they boosted their dividend 15% yet very value oriented company. guys, great discussion. tim mulholland we'll come back to the s&p futures. thanks, guys. liz: gdp growth, the economy has gotten its mojo back but look a little closer things are not exactly roaring ahead in such a great way. we're going to assess all of it, give you the true picture of the state of the economy. look good news is good news. we're not negative people here. we have optimism but we're also looking ahead to tomorrow's big jobs report. david: it is the dawn of a new era for detroit after a federal judge ruled the city is eligible for bankruptcy protection. so who ace responsible for the downfall of this once great city and will it spread to other cities as well? that answer coming up. liz: and apple finally break through the great wall of china. it will soon start selling its iphone on china's largest
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liz: guess what the is climbing in after hours trading? gap which came out with same-store sales. let's head back to nicole petallides on the floor of the new york stock exchange. >> time to look at the gap which did well in the latest month, november, same-store sales. the stock after hours is looking higher. let's break down some of the numbers overall. under the gap umbrella is the gap, right? namesake store. there is old navy and banana republic. well old navy same-store sales were up 3%. banana republic same-store sales, that was the weak spot, down 1%. november global same-store sales overall up 2% some that is some good news there for the gap, overall. sales of $1.63 billion and the gap reported november sales up 8%. so in the meantime, we're watching the stock which closed just about $40 at 40.24. the bid ask is 41-dollar range.
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a retailer to watch. winner year-to-date, up almost 30%. david: nice little bump after hours. thank you, nicole. s&p futures are closing right now as a matter of fact, let's go back to tim mulholland. we may hear the closing bells. there they go. all right, tim, what do the soothsayers say about tomorrow at the s&p? >> well everyone is expecting higher number because of jobless claims report and adp report. that much surprise woold be as expected, 185 or lower. worry all bond traders these days. stronger economic data will cause route in the bond market and weaker number cause as rally in bonds and stocks are on their way. i don't think anyone takes seriously will start tapering. maybe they might at the december meeting. everyone doesn't take it that serious to be anything disruptive at this point. david: unless they have blow away numbers tomorrow. we'll see. tim, good to see you. liz: let's continue that exact point because the u.s. economy
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did grow at much faster pace than previously estimated in the third quarter. gdp coming in at 3.6%. listen, people pull this number apart. there are manymany components to it. there is a catch. con say reading was skewed due to high inventory levels. what is the true state of the economy and what is the fed going to do and which side will it cede? we have dean baker, cofounder of center for economic and policy research. welcome dean, great to have you. let's get to the issue some economists are questioning. it appears in the gdp number which looks healthy, much better than expected, looked like businesses were stockpiling inventory and if you sort of x that out, gdp would have come in at 1.9%. can you clarify that for us? >> yeah. one of the components of gdp is inventory accumulations. that tends to be a very erratic number. we're looking at how much businesses accumulated during this quarter compared to
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higher quarters. jumps around a lot. sometimes they're deliberately stockpiling. sometimes they can't sell things but either which way it is almost certain they will not be building up inventories at the same rate next quarter. insofar we had inventory accumulations adding to growth it is likely we'll see them subtracting from growth in the fourth quarter. so, in this quarter is big addition. next quarter big subtraction. liz: what is so bad about jointory stockpileeng? i look at that, say, business leaders who i think are usually pretty smart guys are looking at this saying, we expect demand to pick up. i see that as bullish. >> well, it tends to be very erratic. really a measurement story. if you go back you find quarters where there is big up tick in inventories for no obvious reason. almost invariably it is reversed in the next quarter. okay. >> so it could be the case everyone got optimistic but i don't see anything to suggest that. i think most likely something that will be reversed. doesn't mean they're selling them off.
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doesn't mean they're accumulating them at the same rate. liz: dean, how do you see the u.s. economy right now? >> i think it necessary a period of slow growth. if you pull out the inventories final demand growth has been 2% for three years now. we do have some segments, rest dengal construction has been good. it will continue to be strong. but, you know, that is pretty much it. government has been a big drag on the economy because we've had cutbacks at state and local levels. more recently at the federal level. basically a economy without a lot of dynamism. 2% would be okay if we were full employment, economy's potential, somewhere around 2 1/2%. liz: interesting to me we're saying, very thing some people in congress asked for, particularly conservatives, slim down, cut back, they did. you're saying that because of those cutbacks that is the drag on the economy? >> absolutely. i mean in other contexts you could talk about the private sector making up the gap but when we're still so far full employment, so much excess capacity, no one rushes out to invest because the local
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government laid off school teachers or federal government laid off air traffic controllers. doesn't make any sense. we need the demand in the economy. we're just not getting it. liz: what should we be doing? we've done what one side wanted to do, that is cut back on government jobs. we've done what the democrats wanted to do, the president got a stimulus passed. president bush went through with the tarp and bailed out the auto industry. yet we're not seeing the job growth or unemployment rate at levels we need to see it at. what's missing? >> well i would say two things. one you can go the route of stimulus. stimulus was not large relative to the size of the problem. other is over longer term we have to get the trade deficit down which means getting the dollar down. we're shipping $5 billion worth of demand overseas, money earned here, spent in europe, china, demand, whatever. it is very hard to fill that gap. we did that in the last decade with the housing bubble. that is not a really good way to go. i would put the emphasis down to
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get the trade deficit close closer to balance. liz: you think the weaker dollar is better. exports looked not certainly so bad. exports were up. people are buying our good overseas. >> well, it was some improvement but we actually revised down the previous numbers, previous month ace numbers. so it wasn't much of an improvement. we have a ways to go. we have a deficit of 500 billion. maybe we're moving in the right direction but if so, very slowly. we have to pick up that pace. liz: precursor to the government's jobs number report, adp, came out yesterday. look better than expected, 218,000 jobs created what are you expecting from the labor department tomorrow? >> i will be a pessimist, 141, 50. last month was strong numbers. strong growth in retail employment. very strong growth, manufacturing construction. i think latter two were a mom lace. the -- anomalies. think people are doing earlier than normal hiring, christmas
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hiring. a lot of hiring that would normally take place in november took place in october. i think i ace weak story i think it will be 140, 150. which may surprise people on negative side. liz: thanks for telling the story with us. >> thanks for having me on. liz: david: smart guy. plays it right down the middle. why sales fail to accelerate in the crowded european market. liz: from gm to ford, will alan mulally stay at the automaker which he turned around and aimed at man or will he go with all the rumors to microsoft? wait until you hear how alan mullally phrased it outside the fox studios with the new mustang, our facebook question is about ford's new mustang. if you have the cash which would you prefer? buy a 2015 mustang or gm rival,
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chevy camaro. liz: camaro. david: i guess you know which one i want. log on to let us know. ♪ this is the quicksilver cash back card from pil one. it's not the "limit the cash i earnvery month" card. it's not the "i only earn decent rewards at the gastation" card. it's the no-games, no-signing up, everyday-rewarding, kung-fu-fighting, silver-lightning-in-a-bottle, bringing-home-the-bacon cash back card. this is the quicksilver card from capital one. unlimited 1.5% cash back on eve purchase, everywhere, every sing day. so ask yourself, what's in your wallet?
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david: time for a quick speed read, of the day's other headlines, five stories, one minute. twitter names first female board member. she was the former ceo of the
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economist group. we wish her well. southwest airlines will add flights to new york's laguardia airport. of the low-cost carriers are dividing rights to 34 slots after american and us air won the justice department's approval for their merger. fast-food workers on strike in 100 cities across the country to push for higher play. workers are calling for the minimum wage to rise from 7.25 an hour to 15 bucks an hour. gm is dropping its chevy brand in europe by the end of 2015. auto giant will focus its resources on reviving its opal brands in the region. fox's super bowl advertising inventory is already sold out with 30 seconds of airtime securing average rate of $4 million. fox was allotted 65, 30-second slots. making a lot of money on that one. that is today's "speed read." liz? liz: sold out. david: that's good news. liz: ford's iconic mustang get as major makeover and just in the last hour right outside of
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our studios we spoke with ford ceo and president alan mulally. showed off the auto giant ace brand new mustang. you can have steering wheel on left or right side. we talked how it will be available in europe, asia for the first time. also talked about how it will at some point be available as an electric vehicle. but of course we asked him about the persistent rumors that he will be the next chief executive of microsoft and here is what he >> i serving ford. i always have, always will and no change to mm plan at ford. liz: why do you think your name keeps coming up? >> i think people are looking for leadership and i can understand that but i love serving ford. liz: alan, great to have you. >> due want to look at the back end of the ford? liz: we'll look at the back end as we run around. >> now look. liz: tell me about this one. look at these headlights and taillights. three vertical bars, they go in sequence. look at the lines. the lines on the back, the
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shoulder, the stance. it is lower and it is wider. do you love it? liz: i love it. will it ever be electric? >> could be some day as you know we have hybrids, plug-hybrids and all electric. as batteries get smaller and cost effective we'll selectric vehicles in all different vehicles. liz: that is news. ford mustang at some point could be electric. competition is vicious is now. bmw, i-3. the prius, the volt, leaf, tesla getting a lot of attention. exciting time or worrisome time because sales haven't followed? >> we have a great lineup electric vehicles. most important thing we do is keep driving cost down of batteries and get the size down and get infrastructure to charge them. then i think we'll see more and more electric vehicles going forward. when you walk into the ford showroom, petro, diesel, hybrid, plug-in hybrid. liz: like starbucks we should be
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able to customize everything. range anxiety, don't you agree as ceo of ford there need to be more charging stations before that chicken and egg questions gets out of whack. >> that's why we really stress and working with governments in all the states to improve the infrastructure. make that happen whether hydrogen or electricity we'll need the infrastructure, absolutely. liz: david, microsoft's stock. david: $5. $5, a mustang will never be electric. willing to put it down now. liz: all right. david: i bet you take me up on that? liz: yes, i would. david: you think they will go with electric. liz: i believe him. david: he said they may. he didn't say they will. i bet five bucks they won't do it. liz: microsoft stock actually fell this morning when he started hitting the tape with all the that he was saying, forcefully,. rick shurland in that mora. alan calls you a liar. you're not telling the truth.
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that you are going to microsoft. he just really seemed forceful in what he was saying. definitely there until 2014. i would foresee he ever went to microsoft because his family is in washington state, it would be more of emeritus chairman guidance leader type of position. david: he did come from a different background into the auto industry but going into the silicon valley world after being in the detroit world for so long, thuite a culture shock. i don't know if it would be so seamless. greatest manager, certainly, any car company's had in my lifetime but making that jump would be quite a jump. if microsoft wants him at least stock holders we want to leave him at the top. boy has he done great things for ford. david: we're talking about detroit. speaking of detroit, it is eligible for bankruptcy protection. hasn't done it yet. judge says, okay you can if you have to. is detroit just the first shoe to drop? how many other big cities are close to bankruptcy? who are they? do you live in or near one of
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these cities? how could their bankruptcy affect your life? names and details coming right up. liz: apple hitting a new 52-week high, after finally inking that deal much talked about with china mobile. what having access to the world's largest mobile carrier market do for the u.s. tech giant? next we have a classic bull very as you a -- versus a classics bear debate with two top on lifts. ♪ ally bank has a raise your rate cd at wo'tthat's correct.ate. cause i'm really nervous about getting trapped. why's that? uh, mark? go get help! i have my reasons. look, you don't have to feel trapped with our raise your rate cd. if our rate on this cd goes up, yours can too. oh that sounds nice. don't feel trapped with the ally raise your rate cd. ally bank. your money needs an ally.
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david: no doubt, you heard the news, apple has just sign adlong-awaited deal with china. china of course is the world's largest mobile market. so far the news has been great for the stock but is this a lasting move up or just a temporary blip? liz: joining us now for a bull versus bear debate, we have the bull. john bright, avondale partners. technical bear, thomas key, stock traders daily ceo and president said he would not buy the stock right here. i will begin with you. you have a strong buy and current price target of $600. what will get apple there? is it all china mobile and business that could come from that? >> that is new products in the current quarter. not only the new ipad products but i do think china mobile would be another one. and third it will be capital allocation in early 14. david: thomas this, is the biggest mobile market in the world. we're talkinghundred million customers out there.
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how could this not be great for apple? why do you think now is the time to short apple? >> well, let's start by saying i always brought on when i'm selling apple or suggesting to short apple. there is a time to buy apple as this just doesn't happen to be that time in my opinion. i give you three solid reasons why, look what happened in thanksgiving to the stock price of apple. people expected this to happen. the stock's up 10% since thanksgiving. that is a handful of days to go. so the stock expected this news. i also say this news is big news. the china mobile market is massive. david: it is huge. it is massive. >> that is what is expected. absolutely. but it was expected. i would also call however apple's reaction today to be a complete dud based on the news. as of close of the market apple was at its lows of the days and looked like it was deteriorating. i would call that a dud as far as reaction tt the news. apple tends to buy the rumor sell the news. that is typical for apple.
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the third piece of information i think is critically important to investor is price. stock price matters. according to our technical analysis, apple hit resistance at 572. liz: so let me flip it back over to john, the bull. all the things he articulated, state your bullish -- when i looked at stock reaction and i thought, half a percent to the upside when you're going to have millions upon millions of potential people buying these iphones? that is a gigantic -- >> gigantic what? liz: meh. my tween is saying that. only texting. what will it take to juice the stock higher? >> keep in mind just because there's a rumor out that they have gotten in, i think probably a credible rumor from the "wall street journal", there was another rumor that china mobile said no, a deal hasn't been done. a strategically a must they get
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into china mobile. financially it's a question mark but fits their trojan horse strategy. financially, the question what do they have to pay to get access to thathundred million subscriber base that exists in china mobile? number one. but from a strategic standpoint, it fits exactly into their software combined with hardware strategy, driving their ecosystem, in what not only is a large market but growing market. remember smart phone penetration is very small in china today. apple's at 6%. and penetration if they catch 6% of 700 million customers, that's big news in 14. david: thomas there is one word we haven't mentioned yet, and perhaps most critical of all, that one word, samsung. this deal has potential maybe not locking samsung out of china or at least really cramming their market share enormously, if this deal can do that to samsung, boy, apple's got a big
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lead, don't they? >> well, i'm not going to compare apple to samsung. i do understand they're direct competitors but i'm talking about price. the price of apple specifically and so i think that we should also look on the other side because as i'm saying there is a time and place to buy apple. i'm suggesting it is not right here. david: you're saying time and price is so low it could be months before it gets down what is your price target, 395? >> no, no. that is not my price target. my downside price target because this is resistance so i would look at support is somewhere near 500. david: okay. >> i would expect apple to retrace back toward 500. if you're an investor, that is where you're going to start looking at apple considering whether or not to make an investment into apple. i'm not saying apple is not going to grow. i'm not saying they don't have opportunities. of course they do. analyst just spoke, yes, he's right there are definite opportunities but you make money on stock price. if you're trader and buying apple at 572, i think you need
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to think again. if you're an investor and holding apple at 572, protect your positions because apple has propensity to decline from here on technical basis falling around to 500 before you look to buy it again. liz: john says 600 before 500. so everybody can decide from this bull-bear debate. thanks very much. david: strong convictions. we appreciate it. john bright, thomas kee. thank you gentlemen. liz: amc entertainment has a special deal for its customers. coming up, dennis kneale has the details of what the company has planned as far as ipo and how some movie-goers could get stocks with their sodas. david: here is subject that could affect you very personally. a federal judge let detroit move forward with the largest municipal bankruptcy in u.s. history. next find out if your city could be next. ♪ [ male announcer ] here's a question for you:
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david: now that the way for detroit's bankruptcy has been cleared, the question is, how many other big cities will do the same? is detroit unique? or have other cities been digging themselves into the same hole and who's next and how soon? for answer west turn to the manhattan institute steve malanga who has reported relentlessly on detroit and other cities problems and the chief culprit, i mean it's no secret, it is unions, pension funds that the unions have been promised over years by politicians who had no intention of fulfilling them, right? >> yeah, detroit has a lot of economic problems but they're kind of blaming everybody from the banks to the governor. what they're not doing is blaming themselves. the pension fund trustees and unions essentially, even as detroit was heading towards bankruptcy were giving out hundreds of millions of dollars in bonuses to detroit workers, and they were --
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david: when they could least afford it. >> they were giving them, basically savings accounts with guaranteed rates of investment returns. 7.5%, you got if you gave them your money. in 2009 when the market fell apart, they gave them 7.5% guaranteed. they were paying for it out of the pension fund. david: they couldn't afford these pensions. all of these gifts given by politicians again who had no intention of being there when the gifts needed to be paid off but if this rule something upheld, if in fact detroit is able to renege on some of their promises they can't fulfill on pensions that could be beginning of something. and a union spokesman in detroit said the following, if this is upheld, this is the canary in the coal mine for protected pension benefits across the country. they're gone. is he right? >> that is little bit after exaggeration this only applies in bankruptcy. it is truly some cities with really big pension debt could make a threat of bankruptcy with
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unions if they don't negotiate. going into bankruptcy is not a good thing for a city or its citizens. if a city gets desperate that may be the case. david: like a company, when you go into bankruptcy, it means in the future it is very difficult to borrow money. cities like nations depend on borrowing money to pay their bills. >> taxes will go up and services will get cut. that is not a good combination. david: talk about cities might be in the same boat. chicago of course we hear about. new york, particularly with a new mayor that has a lot of spending promises he may not be able to deliver on, baltimore, san bernardino, which ones will be next? >> san bernardino is already in bankruptcy. small cities already. desert hot springs on verge of pennsylvania. scranton, pennsylvania is insolvent. it would be in bankruptcy except state is keeping it out of bankruptcy. it has a big judgement has to pay workers it can't afford. you talk about chicago. chicago is not in the same kind of economic shape detroit is but chicago has a huge, huge pension
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problem. some of its pension funds are only 25 to 30% funded. moody's has suggested that they would have to double property taxes to pay off the pension debt over 30 to 40 years. you can't do that in a city. no one is quite sure how chicago will pay off the pension debt. you have money right now but going forward. david: one politician tackled head on, i know a controversial figure, new jersey governor chris christie, approached unions, stood in front of them, booed him, i understand why you're mad at me, because you want to cut pension funds, but why are you not madder against politicians that they couldn't deliver on? is making progress? >> one of the keys legislature went along with him. taxes are now going up. attention earned to california where san jose mayor chuck reeves is trying to get constitutional amendment to allow changes in pensions
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throughout california. it will be a tough battle. david: new york city, financial capital of the world. a lot of people are worried about the new mayor bill de blasio putting on wealth tax. what would the wealth tax do to city? >> state raised taxes federal government raised taxes, taxes relative to the size of the economy is at 20-year high. david: if he raises them even more what would happen? >> i think you will see continued economic struggle. it is not a robust recovery right now. david: steve ma lang today, manhattan institute. thanks for being here. liz? liz: amc entaint has a loyalty plan with a difference. members may cash in on the theater chain's upcoming ipo. you have to hear about this one. creative marketing. we'll tell you now next. listen up, lady, we have a list of the wealthiest bachelors on earth. you won't want to miss this list of billionaire bachelors. ♪ as a business owner, i'm constantly putting out fires.
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so i deserve a small business credit card with amazing rewards. with the spark cascard from capital one, i get 2% cash back on ery purchase, every day. i break my back around here. finally soone's recoizing me with unlited rewards! meetings start at 11, cindy. [ male announcer get the spark business card from capital one. choose 2% cash back or double miles on every purchase, every d. what's in your wallet? i need your timesheets, larry! what's in your wallet? everyand we've made a bito and to keep our commitments. bp supports nearly 250,000 jobs here. through all of our energy operations, we invest more in the u.s. than any other ace in the world. in fact, we've invested over $55 billion here in the last five years - making bp america's largest energy investor. our commitment has never been stronger.
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david: we have some sad breaking news. probably the most admired man in the world, nelson mandela, he was 95 years old, has just died.
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nelson mandel last, dead at 95. he ross from being a political prisoner sentenced to life in prison back in the 1960s. he spent 25 years in jail to eye merge in the '90s as president of a new non-apart tied nation. one of the strongest, probably the strongest nation in all of africa. he has governed through some very tough economic times. unemployment among young people in south africa is said to be 80%. but despite all of the problems with the economy, he is still revered as nation's, one of the nation's top leaders of all time. liz: what he did which was such a surprise to so many people, when he became the leader of south after from a he became a symbol of sort of global reconciliation, instead of saying look what one side has done to the other side. that is what really became sort of the symbol of how you put history behind you and move forward. david: a lot of people thought that once he became empowered that perhaps there would be
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retribution against the whites. in fact he tried as best he could to work with many whites in reforming the economy, switching from the apartheid system to non-apart tied system. it has been a very painful transition and one suffering economically as a result of that transition. nothing works seamlessly. certainly he tried as best as he could do to that. liz: nelson mandela dead at the age of 95. as we shift gears back to business news, movie, some popcorn and how about a little stock with that? a big theater chain is staging a ipo with a special offer for its most loyal customers. david: our own dennis kneale joins us with more. dennis. >> hey, guys. amc entertainment got bought last year by chinese billionaire and wants to go public and will offer stock in direct sale to fans who are member of stubs, amc's customer loyalty program. now some 2.5 million fans pay 12 buck as year to be a member of
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stubs. they get a $10 discount for every $100 on tickets. amc will offer exclusive extra, a chance to spend $100 to $2500 to buy the new shares. as part of an ipo raising 400 million bucks. no wall street fees. no big fat minimums. the terms are the same for amc's own employees. so this is potentially a huge change. could sweep across the stocke market some day. comes courtesy of a up start called loyal free. usually only people allowed to buy in on ipo, sec cleared. certified investors must have million dollars in the market. loyal three lets little guy get in. aims to let you buy stock in a firm right on the firm's facebook fan page. doesn't get anymore democratic than that. liz? david: interesting. i got one of those letters. i got an e-mail. wasn't sure whether it was a crank email. dennis, thank you for clearing that up. we may invest. who knows. >> thank you. liz: dennis kneale. david: they say everything is
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bigger in texas and that certainly is the case for one gingerbread house in the lone star state. we have juicy details when we go of the desk. ♪ hi honey, did you get e toaster cozy? yep. got all the cozies. [ grandma ] with n fedex one rate, i could ll a box and ship it r one flat rate. so i kn untilt was full. you'd be crazy not to.
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tt nana? [ male announcer ] fedex one rate. simple, flat rate shipping with the reliability of fedex. w...look at you. i've always tried to give it my best shot. these days i'm living with a higher risk of stroke due to afib, a type of irregular heartbeat, not caused by a heart valve problem. at first, i took warfarin, but i wondered, "could i up my game?" my doctor told me about eliquis. and three important reasons to take eliquis instead. one, in a cnical trial, eliis was proven to reduce the risk of stroke better than warfarin. tw eliquis had less major bleeding than warfarin. and three... unlike warfarin, there's no routine blood testing. [ male announcer ] don't stop taking eliquis unless your doctor tells you to,
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as stoppg increases your risk of having a stroke. eliquis can cause serious and in rare cases fatal bleeding. don't take eliquis ifyouave an artificial heart valve abnormal bleing. while taking eliquis, yomay bruise more easily and it m take longer than usual for any bleeding to stop. seek immediate medical care for sudden signs of bleeding, like unusual bruising. eliquis may increase your bleeding risk if u take certain medicines. tell your doctor about all planned medical or dental procedures. i've got three important reasons to up my game with eliquis. [ male announcer ] ask your doctor today if eliquis is right for you.
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david: time to go "off the desk." this is the world's largest gingerbread house.
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it has been built in texas of course and it is big enough for a family of five. the 60-foot by 42-foot house, bigger than most manhattan apartments, will serve as a holiday tourist attraction. volunteers built the home using 3,000 pounds of brown sugar, 7200 pounds of flour and 1800 pounds of pure beautier. liz: i bit one of the gutters. also "off the desk," wealth intelligence firm wealth x has put together a list of the most wealthy bachelors. call them what they are, richest guys out there. coming in number three brooklyn nets owner. he has a net worth of $9.3 billion. looks young, david. coming in number two, fashion designer giorgio armani. taking the top spot for the world's wealthiest bachelor, microsoft cofounder, paul allen, net worth of $15.3 billion. david: unbelievable.
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number of one thing tomorrow will be the november jobs report. from the labor department. here on fbn at 8:30 p.m. they expect non-farm payrolls to rise by 180,000. weill be watching. liz: "money" with melissa francis is next. >> the wage war is on. will the fast-food strikes really work? and are the protesters actually employees or are they use union flaks? we're going live on location right now because even when they say it's not, it is always about money. melissa: first tonight the massive fast-food strikes taking place across the country, hundreds of workers walking off the job today. protesters are calling for minimum wage hike up to $15 is everyone out there actual workers who would be making that money? fox news's david lee miller is live at a protest here in


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