tv Sunday Morning Futures With Maria Bartiromo FOX Business November 11, 2018 6:00pm-7:00pm EST
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have a terrific weekend. maria bartiromo is next. good night from new york. maria: happy weekend. welcome to the program that analyzes the week it was in a position you for the week ahead. but impact program this weekend. coming up in a few moments, average capital managing partner and former host of this program, anthony's carmody will join me to dissect the financial impact of the midterm elections. later we have jim grant on with macro president and economist tiffany conboy, two great minds investing and stay with us to hear what they have to say about current markets. ashley webster is standing by.
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he's dissecting everything from main street to wall street. ashley. >> thank you, maria. democrats held and hope for a blue wave this year and the midterm election, as expected, ended in a split decision. many describe as a referendum on the top agenda. the dems got control of the house for the first time since 2010 while the gop retain control of the senate. markets initially responded positively to the dc gridlock. i once ate the dow surged in a 550 points and then as i gained over 190 points and smb had gains of over 2% for the day. thanks in part to the terms bounce, all industries finished in the green for the week. due to concerns about too much supply and we can demand and for the first time in a month likely - went down more than 20% from a higher 76 back in october the
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third. according to the wall street journal amazon plans to split it second headquarters between two locations rather than picking just one city. under the new plan, amazon will reportedly have 25,000 employees in each location and reports claim the decision to split the locations is due to the recruiting of the best tech talent as well as potential housing and transportation issues. new york city and crystal city in northern virginia are among the cities being considered. disney reported record in all profits this week. disney revenue up 12% from $14.31 billion with fourth-quarter earnings beating expeditions with price hikes at the theme park as well as blockbuster films like the incredible to and antman and the wasp help boost those results. disney announcing is launching a new stream service to compete with netflix late next year. disney plus will consist of disney studio content as well as
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marvel, "star wars", pixar franchises but no word yet on what disney will charge for the service. maria, back to you. maria: thank you so much but washington dc was only the focus is weak. investors pricing for possible change on capitol hill with midterm elections changes. assumed blue wave it certainly was not but it was more of a ripple. democrats in control of the house and rub against strengthened their hold in the senate with both results expected. what will the undivided congress made and for your money? president trump for recognition director and founder of average capital, anthony scaramucci joined me now. anthony, great to see a. >> great to be here, maria. you do an amazing job on the show. way better than me, i might add. a little disappointing for me but i do love you. maria: and i love you. >> love the set and the holding. maria: the book, blue-collar president, can graduations on the book. let me get your take on what has
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happened this past week. we know it was the fact that the dems at the house they do take the majority but the senate, i feel, is the place where things are ratified and he can control. >> the trump train, there's a little bit of everything in this electoral situation, the trump train is steady as she goes with all the progress because the senate is going to ratify trade deals, ratify treaties, also is likely you have one, possibly two more supreme court nominations in the back half of the president's term. although things are favorable for him. negative, obviously, they now have subpoena power and investigatory power in house. if they start to do that you and i both know he could potentially come to the trade deals by slowing them down and enforcing new structures into the trade deal and things like that. in general president story is much intact.
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by the way, without his help the report begins with a bend in a way worse shape. his 26 campaign stops over 14 days made a very big difference. maria: you are right. he was out working hard. he is working hard for senate seats because he knew how important strengthening his hold of the senate would be. >> don't drink, don't smoke, you can fly on air force one at age 72 and do 500 meetings. maria: is amazing. there's an article on friday in the journal and let me review what a separate securing congressional passage of the makeover of the nafta agreement us mca, that will get a lot harder with a split congress. democratic led house give mr. trump political opponents power to demand concessions and a change for allocation of a new agreement reached in september. markets rallied on the us mca and it have to be agreed upon by congress and will markets trade down on the expedition that this congress could slow down the president's agenda?
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>> they certainly could but i think the point i tried to make my book is that the democrats will be way better served to focus on the blue-collar people, lower middle-class people. that trade deal does that. maria: that's why the union's like it. >> example. democrats made a big mistake if they go in the direction because then they look at being a protectionist for no reason. one of the points i make my book is the democrats are making a big mistake by calling the president space things like deplorable or ethnocentric or racist or they would be way better served to recognize he effectively hijacked their base in 2016, moved it to his side of the ledger and they would be way better off focusing on them and hopefully they will do that in congress because one thing we both know about the president he will cut a deal with them. maria: us at talk about our mystical and biotech. the present is often shy about saying drug prices need to come down.
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now you have a democratic congress in charge in the majority and house elijah cummings and nadler and judiciary committee they will want these pharmaceutical companies to come in and start talking about how they arrive at a price. i'm wondering if pharmaceuticals is one area that is under pressure as a result of the divided congress. trying to look for specifics. >> i think so. i also think this is one of the mistakes that are made by the middle number, /-slash never trump in the publican party. he's been jamming the idea of negotiating directly with the pharmaceutical companies on their prices for medicare. there's been a little equivocation on the inside related to that. here's another example where the president can split the seam and get in there with the democrats and work on what drug prices. maria: anthony, great to see y
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you. trump, blue-collar president. >> please, go out and buy the book. please. how is that? like a jeb bush way to separate please, clap and buy the book. maria: anthony scaramucci, thank you for joining us. stephanie pomeroy back up next. right after the sprint will foxbusiness special presentati presentation. women in money caused by deidra bolton. i'm excited about the program. check out the preview. >> i wanted to create something that was authentic and owned by, not just women, but senior people at the firm where we would hire great talent, not because they were women, and we would promulgate talent. >> that is so important. that's the double edge sword people think about in any quota meeting, category, where you want the best people but you want a diverse group of people
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maria: welcome back. federal reserve meeting and as expected it did not raise interest rate. it signaled that we should expect a fourth rate hike of the year and month at the december meeting. that committee saying he wants to raise rates three times next year. joining us is a special panel on the potential effects of the fed policy in the economy and market. stephanie is in the comments and president of macro maintenance and did grandma founder of the
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grants interest rate observer and it's great to have a vote on the program could thank you for joining us. interest rates is dictating markets. honestly it has for a long time but jim, you think something is fundamentally shifted. were moving into a new era with regard to interest rates. >> i'm less dogmatic than i might've been years ago when i knew about the future but seems to me bond yields probably, not surly, bottom in 2016 and i was when the ten year treasury fetched all of one in 38% and since then has more than doubled. but i think more important than speculation is the observed fact that we have been living in a world of interest rates. we have worldwide and we have had ten years experience with things we never experienced before. for example, their present funding cost for example and even today we had upwards of
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7 trillion of debt yielding less than nothing. not much when you think about it. so, way back when the great victorian financial editor pronounced alluding to the national [inaudible] it can stand many things but cannot stand 2%. he meant that 2% was an incitement to doing things one ought not to do with money. we have had ten years, not of wealth, i think positive to present. 10 years of negative, almost very low interest rates, great incitement to do what one ought not to do with money. reach for you, speculate and take risks. maria: and when you have ten years of their race or negative rates, stephanie, your behavior changes in the way you invest in the way you buy in the way you
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borrow. it all changes. that is to do now. >> that was the intention of the fed's quantitative using program. it was to punish those seeking safety and reward being brave but reckless risk. using that vividly borne out in the corporate bond market where we met with corporate market in general where we now seen record levering up by corporations and they even, as the fed tightened, starting in december 2015, enjoyed lower and lower borrowing cost because the appetite for risk was so rapid that people continued to defy the fed's effort to raise rates and drove corporate borrowing costs lower. however, i think that it started to change and i agree with jim that were starting to see some signs of a ship there and the piper will be paid next year when 780 billion dollars of corporate debt roles at higher interest rates.
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we will find out if homeowners in 24, 2006 can handle any modest increase in interest rates from low levels but the modest increase may kickoff a lot of marginal borrowers. 2019 will be interesting in that regard. maria: i want to get your take for the equity markets but jim, we can look at the corporate debt market and national debt. federal debt because let's go through this chart you brought us. it's about the fact the rainout were taking a look at $2,120 in debt it took us - it took us a long time to get to $1 trillion in debt. >> took us 193 years to go from alexander hamilton to the first trade with ronald reagan and 1986 came the second trillion in 1995 or thereabouts my
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5 trillion and we achieved 10 trillion, is achieved the word? [laughter] in 2008. now, 21 trillion and this year, of great founding press ready, will post a budget deficit in excess of $1 trillion. if you look at the supply of government securities, taking account the expanded treasury, expected that dispositions it is said so elegantly, tightening. that some of bonds will be the greatest as a percentage of gdp since 1945. further to stephanie's point about the rollover drama of next year with the government itself will be very interested force in the bond market and perhaps the bond market will handle - it will decide the treasury is a thing to have. if it does not think that, i
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given where the fed is and what you see happening with rates? >> 2018 was the year of the impact of fiscal policy. fiscal stimulus and the tax cuts where the story. it drove profit growth and economic activity. 2019 will be the year where our focus is on monetary restraint. it will be the opposite. we will see not only the fed continuing its quantitative typing program but global central banks will also complete their quantitative using cycles that they are no longer be adding liquidity globally. monetary restraint will be a driving force behind the markets. i think again corporate bond market will be the flashpoint for this. dislocations there will have conferences for equities as they always do. maria: if i could get 3% just as a naïve and simple think i can get the present in the two-year and probably going to be money out of equities.
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several weeks on october, and allocation shipped? >> yeah, especially you do that if you felt that we had seen the peak in economic activity and earnings growth and corporate profit margin at record levels. these are figures that are just unsustainable in normal times but when the fed is ratcheting rates up on an economy that is toting record leverage they seem particularly vulnerable so smb earnings estimate which is calling for half the rate of growth we had this year but is still robust, 11% sort of number that estimate will be nudged down steadily over the next few months and i will drive stock prices with it. maria: i love your recent peace, jim, what corrections correct. we saw a correction in october and it was correcting what was going on in terms of the zero interest rates.
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you are pointing out another indication of these zero rates and that is what happens in terms of lending with private equity investments with uber left doctor. >> uber is nice here and it's announced its intent to be the amazon of tradition. it has raised 14 billion and i'm going for memory but common equity and preferred markets and it has lost half of that in operating deficits. it's a major loser with operationally and it's raised about the money in the corporate debt markets. uber has been sustained over the past years with meteor arc revenue growth in passenger has a sustained by accommodating venture capital and debt markets. and low interest rates. the rates have set the tone for the very, very easy terms on which capital is allocated. maria: $120 billion evaluation.
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>> yes, those are the investment bankers. [laughter] they will not get it and they ought not to get it because uber achieves no economies of scale. maria: where you hide during the market disruption? you have that anytime you think the markets will get impacted by this, equity markets, we did see that in october and are we done? [laughter] or we see another big selloff? you exciting evaluations to come down? >> they say never forecast direction in time. i have been surprised it has taken this much time for evaluations to return to some sense of normalcy but again i think the fading of the tax-cut affect next year and the emergence of monetary restraint at front and center will drive equity prices substantially lower. maria: substantially meaning 30%, 40%, what? >> i don't - [inaudible]
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[inaudible conversations] >> in the fullness of time,. [laughter] maria: great to see you both. great conversation. stephanie and jim, thank you. don't go anywhere. more wall street after this. i know you want to leave me for schwab, but before you do that, you should meet our newest team member, tecky. i'm tecky. i can do it all. go ahead, ask it a question. tecky, can you offer low costs and award-winning wealth management with a satisfaction guarantee, like schwab? sorry. tecky can't do that.
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maria: welcome back. special program next week. robert kaplan, my special guest. waiting to hear what he has to say about economic growth in the next two years. see you on sunday morning on the parties tell this be every attorney will hear from the outgoing house majority leader, kevin mccarthy, my special desperate this will be his first comments about what the new congress, democrats take to the majority his first comments post midterm elections this weekend but catch the show at 10:00 a.m. i on sunday morning. plus, start smart everyday on weekdays here on foxbusiness. tune in weekdays on foxbusiness
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from six-9:00 a.m. eastern with mornings with maria. i hope you join me every week special programming over it now with this program and amazing new foxbusiness special, women in money, with deidra bolton. stay with us are here. those with it the weekend. thank you for eternity. the great west of the weekend, i will see you next time. >> welcome to women and money. 40% of american women are the breadwinners for the family with more power and more responsibly than ever before. there's a lot to navigate from dealing with practical money and investing issues to how to handle tricky career situations. i'm deirdre bolton and i have not amazing and in special gas where the top of their field. they will share what they learned and put on their mental health and answer top is this related business questions. the show is for all ages, stages for people in all industries. first guest, blackstone's joan salazar. one of the largest global asset
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manager, for the $50 billion in assets. it's invested in companies such as hilton hotels, for sergey and michael's resource. joan is the person for helping bring blackstone's expertise to the individual investor. she runs blackstone's private solutions group, part of her job is explaining how alternative asset are different from traditional investment. >> you think about stocks and bonds, which most people buy on a daily basis to their broker et cetera. we are more liquid, real estate assets, whole company. >> longer-term, we can control the asset and make changes whether it's acquisitions work cutting expenses, changing the marketing plan et cetera. we hold those assets for about five years on average and when we saw them. deirdre: up until this point most of your clients and the firm's you work for, so to
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speak, our pension funds or university endowments and basically institutions with a whole lot of money but blackstone recently has tried to make some of the strategies a little more accessible for smaller investors. even as much as one-5 million of investable assets which in that world it's very small compared to normally - why did you make that decision? >> if you think about it, if you're a fireman or teacher or police officer you have access to alternative investment in your pension fund. we are managing probably a piece of your portfolio but most individuals have to save on their own for retirement. 10, 20, 30 years and until very recently all of that money was invested in stocks and bonds without access to higher returning categories like private equity or certain parts of credit fixed income and hedge
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funds et cetera. deirdre: the reason the institution such as pension funds love working with firms like but don't you make them more money than what normally they can do just in stocks and bonds. what is the magic sauce connect what's the secret sauce and how does that happen? >> there's a real benefit, ill liquidity, meaning that if you think about even investing in banks cds you get paid more generally if you're willing to tie up your money long-term. that same illiquidity premium exists in other categories. typically, someone who has one-$5 million does not need to keep 100 cents on the dollar available in a days notice and perhaps they can wait a month or a quarter to access that they money and therefore, they can earn a higher return.
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deirdre: we have a lot of successful this is owners who watch appear on foxbusiness but one-5 million to just invest is a lot of money. who are these people and what do they do? >> you don't have to have 125 million to invest in alternatives. that would be your total investable pool. the alternative sit alongside your traditional stocks and bonds investment but there entrepreneurs and dentists and doctors in they are professionals or working folks who have accumulated savings and their retirement asset in the long-term. deirdre: what if i am not quite there? i want to be there in five years but not quite there so how can i edit myself and learn more about so that i can eventually invest in that? >> the first thing you want to do is fear out what your goals are and what you're trying to achieve and what your spending needs are and think about do you
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have enough regular income or trying to generate more cash yields than you are today and reading up on areas like private . deirdre: or real investment trust. >> right, or credit products that are floating rate which i will wait where you earn a higher yield as interest rates go up because were in. now where it feels like interest rates are rising and would be two areas to start. deirdre: you have an amazing personal story. you are a native new yorker and grew up in queens but your family has a much longer history than that. how - tell us how that informed and shaped who you are now. >> i did go up in queens. my dad was a holocaust survivor and migrated here from germany. my grandparents and rolled him
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in vocational high school so that he would be able to get a job and drafted into the military and when he came back he felt like he couldn't go to college and needed to work. he was never a large corner when i was in a school my mom went back to work and with no real business skills that she found a mentor who trained her and ultimately became an insurance underwriter. she worked for much of her life till she was 75 actually and so i never questioned that i would have a career that it was important to be independent financially and she loved what she did. i always had a great outlook on that. deirdre: they must be so proud of you, of course. what do they want you to do? today have opinions about your career? >> they wanted me to get a job. [laughter] deirdre: every parents alive as far as that.
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>> they encourage me to do what i really wanted to do. deirdre: when we come back, jones business reasons for starting a mentoring program at blackstone. for senior people at the firm it is mandatory for them to support the next generation. find out what is different about the program and my other people and institutions are trying to copy it. i'm at this wing joint telling people that geico has been offering savings for over 75 years. that's longer than the buffalo wing's been around. dozen wings. and did you know that geico... (lips smacking) offers mo... (coughing) motorcycle insurance? ho-ho... my lips are burning. (laughs) ah... no, my lips are actually burning. geico. over 75 years of savings and service. see how much you could save at geico.com. it's too hot.
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she told me why she started a formal program and what it means to blackstone. >> i had been informally meeting with a lot of women in the firm but we did not have great structure. truthfully, most of my career i do not pay a lot of attention to women's networks or the fact that there weren't a lot of other women in the room and i wanted to create something that was authentic and owned by, not just the women, but senior people at the firm where we would hire great talent, not because they were women and we would promote great talent. deirdre: so important. that's the double edge sword where we talk about gotomeeting category where you want the best people but a diverse group of people. >> exactly. the big surprise was when we looked at who was applying, only 10% of our candidates were female. pretty amazing.
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deirdre: you have done something unique that people outside of the industry may not know about. in fact, you made this program at blackstone so strong your competitor firm, whether you know this or not, are trying to copy it and there was one person at a firm i will not name who said she wanted her senior female people to be in your group until her boss said that was crazy because it's a different company. what are you doing that is so amazing? it's been a successful program and led to retention for blackstone which on a brass tax basis save the money because women don't quit as often. >> it really is not me. there is a broad group of folks from most junior to most senior who are actively involved. we go on campuses and educating women who are freshmen and sophomores and explain to them why a career in finance is interesting, what they have to do to get there and we provide training around and do resume workshops and interview workshops. we do case studies and pull them
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in to apply and have a software program where women spend a day in half with us. they learn all of our different groups and when they arrive at the firm we create a network of all women coming in so that they feel like they have . deirdre: to be honest, everyone does college recruiting and slowly and heart and bunnies and flowers but day in, day out things that hey, i deserve to be promoted and everyone in my group is so how do i handle that. those are the questions. >> it's not enough to just have a policy or idea. you have to put the time and and meet with the women and give real-time feedback and i think it's incumbent upon every female professional to do that. deirdre: what about their professions connect you to feel that is still male-dominated and i'm assuming there was not one female mentor or mentee when you
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started the program. >> we really don't have it set up that way. the men of the firm are just as engaged. tony james, person at the firm who, elongated maternity leave. john gray who recently been named president was one of the founding members of the women's initiative. deirdre: he has four daughters. [laughter] >> this is a big priority for him. he's actively engaged and recently named kathleen mccarthy as cohead of real estate which is our biggest business. it takes a lot of people, a lot of effort and every saturday making it happen. deirdre: joan, on that note, i want to ask you i actually asked people for career russians, do you want to take a stab at the these? >> sure. deirdre: i'm a huge public they, do i admit it openly my competitors in the firm will never let me down and in the meantime, how do i regain the trust of my team and boss?
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>> having spent a career in equity research were everything you do is quite public and i assure you i made many public mistakes, you have to own them. you have to learn from them. there is no successful individual who has not made mistakes and probably what distinguishes is they learn from them and that helps inform they do going forward. i say you own it. deirdre: all right. i keep highlighting a situational work problem and my manager placates me, nothing changes. i've spoken to that person three times, what do i do? do i go about their head? >> go back to the person and say we spoken three times. this is what i think the solution is. can you tell me in what timeframe it will get solved and if that does not happen then yes, i would speak to someone else. deirdre: i deserve a promotion, someone else got it, how do i handle that with my boss? how do i broach the conversation without becoming bitter? >> great question. i always think you don't wait
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for promotions to happen. you let people know beforehand that is something that is important to you. you get a sense of whether that is likely or not. to me, that was one of my earliest lessons. ask for the promotion. deirdre: you published a piece called truths for our daughters and i was one piece of advice that was in there. i also found another one called it's a little longer but you don't need to know it all on day one, even ceos ask questions. i love that. sometimes when you get promoted you feel like i can't ask one thing because it made me look weak but you disagree that. >> totally. it also keeps you back from asking for the promotion because you thank you don't already know everything personal about the job. one of the great things about being at blackstone is the most senior people ask questions all the time because they want to learn and that is how you grow and get better. deirdre: you have said for wom
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women, speak twice as loudly as you thank you need to. i'm assuming because you had more than a 20 year career you are the only senior woman in room at more than a few times. >> that is a fair assessment. yes we want to do find you have to speak up and increase the volume? >> i did. i was pretty shy even though i was in a profession right to speak up all the time and i was in a boardroom giving a presentation and someone said, can't hear you, speak up and i found that would never happen. today i push the women on my team to speak more loudly. in fact, someone came in yesterday and told me she took my advice and found it helpful. deirdre: great. you've also said he prepared, practice judgment developed with time but on day one you cannot the backs and that is part of. >> yes, i think even as the junior professional be incredibly valuable to your team if you take the time and work hard and understand the numbers.
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deirdre: joan has advised the next generation to get comfortable with being uncomfortable. she says it's easy to hold yourself back when you think there's someone out there is more talented, more experienced, more skilled and told me in order to grow your career you have to venture beyond what you are already comfortable doing. more on women and money, when we come back.
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what it takes to win. to play tennis at penn state and become an executive recruiter. she's also in entre nous and launched numerous successful businesses. she does not need to teach competitiveness but helps clients and companies channel it. i asked her for best tips, especially for people in the first few steps of their careers. >> first thing people seem to forget is be on time. it is important to dress for the job you are going to work, not the job you thank you should have. everyone talks about that like just for the job you want, not the job you have it for millennial they need to dress up properly for the industry they're going into be confident when you go to - whenever you walk into a building be kind to everyone you meet. that goes without saying but some people try to be tough and strong or what have you and they're not always kind. kindness matters and competence shows anyone can be involved in that process. know that going in.
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research on companies go further than looking at their home page. we have a lot of candidates that will come in and i'll be like what you know about the firm not tell us and some associates have been around since 67 and would regurgitate with a soffit tommy but what you know about the firm and they can't say anything. don't memorize but understand what, for me, executive recruiting is and understand the products we sell or do we market to. understand that you can now position yourself appropriately and there's a lot of better ways to do that these days with linked in. look at people that work there and look at their background and see what people they hire. most companies and their mission statements. understand the culture. we always say want to go in the smile. be bubbly and passionate about what they're doing and what your background is so they can feel like they want to work with you. that is key. they want to work with you but however they don't care if they
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want to work with you until they know you can do the job. you have to show them you can do the job they have a need for and then you can continue with the chemistry. don't only focus on the yankees or giants or whoever their favorite team is or your favorite team but focus on what they have a need for and make their life easier and then you can continue with context. listen more, talk less. millennial's like to unfortunately have a bit of a reputation and i'm not saying it's accurate but for some people it is and some people it's not a large majority they are hard workers and believe in showing who they are and what they do and why they do it so well. but they have to listen. you won't find out what you need to do or what the chemistry is going to be or culture of the company or real role unless you listen. they have to do that a little more. don't lie on an interview.
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people try to pump up compensation or pump up years of experience or functions but it comes out. you could get a job and then they do your references or reviews or what have you and everyone knows. remember that the future employer relates to your current employer or previous employer. if you bash them, they are like this what will happen with me in two years. don't do that. it's a no no in all circumstances. if you find something you really feel is a good fit for you and it's a job you're interested in, find two or three people that can help you it into that company. get linkedin, your network, whatever it is, at your child's basil game and if so and so no so-and-so or whatever company figure out how that person can
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get you your resume to the right person internally because then it looks like an internal referral. totally different ballgame with an internal referral. someone in the company and that to the hr person hiring manager they see you. deirdre: carly o'neill, when we come back we will share a list of the toughest questions out there. more on women and money after this. you're headed down the highway when the guy in front slams on his brakes out of nowhere. you do, too, but not in time. hey, no big deal. you've got a good record and liberty mutual won't hold a grudge by raising your rates over one mistake. you hear that, karen? liberty mutual doesn't hold grudges. how mature of them! for drivers with accident forgiveness,
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>> lou: good evening, everybody. our top stories tonight, a shooting, a mass shooting in california. at a california bar in which 12 people were murdered. including a sheriff's sergeant who tried to stop the killing. the gunman an exmarine, whose neighbors said he struggled with ptsd. he chose a popular and last night a packed night spot to create carnage and chaos before turning the gun on himself. >> we've got to do something about the hate. and we've got to do something to just spread the love and reach out and help people and
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