we're looking, though, at support down at 530. we'll probably get a better buying opportunity. >> see you later. thanks very much. that'll do it for "power lunch." sue? >> "street signs" begins right now. see you later, ty. and welcome to "street signs" where the dow is trying to ditch its string of down days. industrials down 19 of the past 23 session. do not fret. as herb might say, it could be a lot worse. we'll explain why. speaking of mr. g., herb is ready to tell us why starbucks big bread bet is brilliant. i say it's half baked. we're going to slice and dice that story. plus, disney taking a stand against childhood obesity. some bad news for the queensland and northern territorial aerial service. better known as qantas? >> without the u. we have highlighted in the market recent troubles. let's now try to find the positives.

dow is on track for a positive session. a shot tomorrow at its first two-day win streak since the end of april. catch that. also the s&p 500 going for a second straight day of gains. it is up about 2% for the year. the nasdaq is also up for a second straight day. something it has not done in over a month. it is up more than 6% this year to date. we continue to watch the shares of facebook down once again. also hitting a fresh post-ipo low. in fact, in just a few minutes' time we'll hear from shawn parker. who's he? the napster co-founder who's a big facebook friend. one of the early investors. his first comments since the ipo of facebook. you have to stick around for that. first, courtney and rick on the markets. we've got some gains. they're not hitting it out of the park. you know what, we'll take what we can get, right? >> exactly. the volume's pretty low, too, mandy. really narrow trading range. we are higher now. a lot of triggers hoping perhaps in vain for more out of that g-7 conference. they're now awaiting the ecb tomorrow, ben bernanke thursday

to really inspire at least a catalyst for a move one way or the other. utilities and staples have been gaining a little bit of strength in the last couple hours. although we still are seeing some negative moves. they're still moving higher. mcdonald's, kraft and coke some of those names. financial made moves early and stayed high throughout the session. despite a number of analyst notes to the contrary. raymond james downgrading 76 names including a lot of financials. i isi estimating jpmorgan's trading loss. financials higher all the same. we do have individual movers to focus on. i want to mention jc penney. ceo ron johnson making some comments at a consumer conference today uptown about their pricing strategy. investors still aren't buying. lower again today. mandy and rick? >> thanks very much for that, courtney. over to rick santelli now. to what extent are we seeing some profit taking now, at least in the longer dated treasuries considering the recent rally we've had? >> you know, a little bit, whether it's profit taking or just the accelerator pedal easing back on buying at these

unbelievably high prices, low yields. the outcome is the same. we're all waiting for gadot. but it's really code for some plan in europe. granted, there's been a bit of a reprieve today. i think the only chart that really matters is watching that 10-year in spain. you know, on march 30th, last week, it had its recent high watermark around 6.65. down about 35 basis points at 6.30. home spri hope springs eternal. a two front economic war. our own data and what's going on in europe. >> nervous about their bond auction on thursday. with some of the goings on it's more like waiting for guffman. as we mentioned at the top of the show the dow has registered four wins days in the last 23 sessions. five if today holds. over the time down nearly 9%. as bad as this sounds it could be worse. remember all the way back in 2008 we had an eight day slide where the dow fell 22%.

let's talk about where we're going from here. david mcle vany. kyle herrington, founder and hanging partner of herrington capital management. kyle i'll begin with you onset here. a lot of people are starting to get very, very nervous. they stay there's no reason to own stocks right now. i don't know what's going to happen with the election. i don't know what's going to happen in europe. i don't know what's going to happen in health care. make the case for owning equities right now. >> here's the deal. right now in the last 15 or 20 trading days i felt like i've played psychologist more than i've played money manager. day in and day out i'm playing, i'm on the phone with clients, answering questions, making them feel more comfortable for the exact same questions you just asked. i'm making the case here. i think the flight to quality here is to the precious metals area, in the gold, silver and copper. whether it be a mutual fund etf or -- >> is that short -- neumont mining, is that a short term haven play? >> a short term play but not as short term as you think.

>> even though it hasn't really acted as a safe haven recently? it's been trading in correlation with the euro and risk assets including commodities. >> i still think there's an allocation of one's port tole owe that should be dedicated to that arena. >> you like precious metals as well, david. brian put out there all the things you could potentially be worried about. the bear case. do we need to readjustment downwards in terms of our expectations for the remainder of the year or have they been priced in? >> i think what's not priced in is the fed's activity in the marketplace. we don't have any real picture of what risk is in the marketplace with manipulated interest rates in the bond market. the ones that we see today at record low rates. last friday was just absolutely amazing to see investors clamber for the safety of german bunds and 10-year treasuries pushing them to unbelievable levels. we'll continue to see that as we see concerns remollify in europe. we don't have any real clarity as to what the solutions will be. we're looking at two key dates.

june 20th. the fed meeting, of course. june 28th and 29th where the euro leaders will get together and figure out forward or backward. will they merge or will they dissolve to some degree. i think all asset classes are in jeopardy until there's some real solutions put in motion with those things in mind. >> david, it sounds like june 17th, i'm not sleeping until june 17th. that's my personal motto. which is the greek elections. doesn't sound like you're that concerned about that. >> i'm not sure greece is really the issue. spain is more of the issue when you look at their banking system with over287 billion over bad loans, real estate loans that have to be unwound or covered. the recapital statiization of t country alone will suck away all of the capital from the ecb and the emergency financing operations that they've put in play already. on a scale of things, greece is small. i would be more concerned with spain. frankly, if you ultimately look

at the u.s. markets, the u.s. debt markets, i think that's where the surprises lie. circuit 2013-2014. >> i'm glad you finished on that note. kyle, to what extent after we got that shocker of a number from the jobs on friday will our market from now on be driven less by europe and more by the economic data we're getting at home? like we saw, for example, this morning with the services index, any kind of better than expected or growth kind of signal from that side is going to get real relief in the markets. >> let me highlight this. i think that first and foremost, it's the jobs domestically where the markets are going to react the most. subnormal, abnormal, paranormal, i think these markets are the new normal going into the election cycle. >> we have to leave it there on that note. thank you very much for joining us, david and kyle. >> good to be with you. on deck, starbucks shelling out big dough for a bread company. brilliant idea or completely half baked? herb is ready to throw down in a heated debate. one man, one mouse and one big fat mission to end america's

sugar high. what mike and mickey have in common.

welcome back to "street signs." brian shactman here at the markets desk. rfmd. rf micro. avian securities up dwrading it with a 4.50 target mainly its presence not only on the iphone but presence on the iphone 5 which would double for that new product. the stock up more than 13%. mandy, back to you. >> thanks very much, brian. starbucks could sure use a jolt today.

that stock is down more than 3% after announcing plans to buy bay bread for $100 million in cash. >> is this a good move on starbucks' part? herb says it is and took short term thinkers to task in a story on cnbc.com today. you and i were getting into it in our nice way today off air. why do you think this is such a good deal? >> think about what starbucks is doing. howard schultz is sitting here. he's got a business that likely is maturing. you can see it with same store sales, 9%. he's getting ahead of the curve. he's expanding and diversifying before people start beating him up by saying -- >> a strike on what, though? why do they need to evolve? evolution juice business. testing alcohol in some stores. now this. >> because it's maturing. >> mcdonald's has been mature for 30 years. that stock kicks butt. growing around the world. why do you need to evolve? >> mcdonald's is a different

type of business. it's a franchise business. starbucks is focused on something very substantial which is coffee. which is a very significantly single -- >> is it anymore? >> it's still the main part of the business. they're also moving into consumer packaged goods which i think is important. again, i look at it and i say, hey, he's doing the preemptive attack before people beat him up and say why didn't he do something. look at the street today. the stock is down. why? because wall street always thinks like short term because, of course, it's going to cost them money. it's going to be dilutive. guess what? that's what they're paid to do. >> i just wonder why so many changes. evolution. the alcohol. this. it's a small deal. three deals in six months. what is schultz's ultimate vision? >> he wants to touch consumers at every point that they consume. >> you want be everybody. that strategy fails 100% of the time. >> let's find out whether or not that is the case. indeed, let's get another voice on this. sam oker. are you taking brian's side or

herb's side? good or bad move, this one? >> i have to say i think this is a really good move. i think starbucks really is trying to jurp in against some of their competitors. mcdonald's has made a play in the past few years with its mccafe line of coffee beverages. starbucks has to fight back. they have to innovate. everyone right now is innovating. they have to offer the food line to be able to offer customers additional day parts to want to come into the store. >> to brian's point, they're not overextending themselves? they're not shoveling too many growth nicinitiativnichinitiati plate at the same time? >> i think that they're not going to overextend themselves too much. certainly bakery products is not a far stretch from coffee products. i think it fits in well with the starbucks branding. but certainly they're not going to be making burgers any time soon. i don't think they're going to overextend themselves past what they've done now. >> i didn't say, sam, this was a bad deal. what i was -- it's 100 million

bucks. i don't know le boulanger. i don't know their business model, profits, whatever. i'm wondering why they feel the need to evolve so quickly in a short period of time. they still have a lot of organic markets to grow into. >> it's not quickly. this is a long-term process. >> i've got the answer. buy rim and start celling cell phones. >> that's an excellent diversification strategy. >> you get a free venti latte. or a free blackberry with a purchase of a venti latte. doesn't this put them in too much competition with panera? instead of being unique they're starting to merge. >> maybe putting panera in competition with them down the road. way down the road. >> should panera be worried about this, sam? >> panera has their own customers. they have a customer base. they have fans who really rely on them every day. i don't think they're going to be scared too much that starbucks is going to tread too much on that space. panera has that brand rick in

addition. starbucks does, too. it is going to take a long time. it is a long term plan to take le boulanger across the country. >> i'd be the first guy to hit him on something like this. i want to look for a problem. i just see them doing something that a lot of companies are afraid to do because they're afraid of wall street. they're not kowtowing to wall street. i think that's the message here. >> people who bet against howard schultz have failed miserably as well. i'm not knocking the deal. i'm trying to play foil to you and wond whaer the ultimate strategy is. use bar? alcohol bar? bread bar? a little coffee. >> as i say in my piece today, it's a calculated bet. that's what he's paid to do. given the history, the odds are with him. >> and 100 million bucks is a weekly salary. chump change. just ahead on "street signs," the stock that's been dealt a bad hand. plus can anything stop the video game drain? i'm sorry to break it to you. but a little airline known as qantas has booked a first class

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ticker shfl. down big today on earnings. the company makes slot machines and card shuffling machines for casinos. still the stock is up 17% over the last year, brian. from card games to video games. what everybody wants to know is where have all the gamers gone? video game sales hitting a six-year low. the most recent sales numbers came in april. they were down 42% from last year. the gamer stocks, folks, have felt it. electronic arts. gamestop. alldown. gamers turning online, ipad, iphone, anything but the console. nintendo also trying to stop the video game drain. the company hoping its new wii console will lure them back in. julia boorstin is live with the president of nintendo. >> here with us is the new console with its touch screen controller. reggie, nintendo posted a $551 million loss in the year ended

march 31st. your consumers have so many inexpensive options. how can you turn things around? >> for us it's all about the games. when we talk about new games, we launch hardware to bring new experiences and to make those innovative games possible. so consumers will always have low price options. for us it's about great game experiences we bring to the party. >> i know one of the apeoples of the new wii u is this touch screen. just yesterday xbox announced it's launching a new app to turn any tablet or smart screen into a touch screen controller. how can you get anyone to buy a new console when you have to compete with that? >> what we're doing is a fully integrated system. you buy the wii you want. no second purchase to get to a second screen. what we have is a totally integrated experience. software that brings it all to life versus what our competitors may try and do. so for us, as long as we have games like mario, we share over 20 games that bring this to

life. we do think consumers will buy it and buy it in droves. >> it's interesting. this focus on the second screen, you know, microsoft is doing that. krou don't have to kbo out and buy a whole new xbox to be able to use a second screen with xbox. you do have to go out and buy a wii u. how much is there a concern that consumers are strapped for cash? you can play a game like angry birds for almost nothing on your ipad. how are you going to get people to go out and buy this? >> we're very concerned. what we have to do is we have to provide a consumer experience that they look at and say this is worth my money. we think new mario games, new zelta games, the type of entertainment we bring gives a lot of value for money. >> nintendo has traditionally appealed to a more casual gamer. those are gamers leaving for the social and mobile games. are you trying to shift your focus to appeal to the more hard core gamers? >> nintendo has always appealed to all kinds of game rs. we have gamers for the most aggressive, the most core of the core as well as the most casual. we have that entire arc.

we have to appeal to that entire arc. we think that as consumers have experiences potentially on some other touch screen that they'll be ready for the types of experiences we bring with wii u. >> i understand you want to jump in here? >> i'll jump in. i'm wondering, is there any possibility that five years down the track this kind of game console might be completely obsolete? i remember playing atari that was fantastic. we've moved so far from those days. it's very clear the way technology is moving now it's possible in five years' time we're going to be doing everything online, don't you think? >> here's the interest thing. this industry is constantly innovating. what we'll be doing five years from now, we're not all so sure. but we do know that integrated experiences with multiple screens and consumers having different types of experiences where this industry is going. that's exactly what the wii u brings to the party. >> so a question, though, about the rise of the social and mobile games. you are making a big push for the meverse.

a social network for nintendo. how is that going to boost your bottom line? >> the way it's going to boost our bottom line is it's going to drive engagement by the consumer. in the end consumers want to talk about their high scores. they want to talk about difficult jumps in games. we enable them to do that right through the game. that's the big difference between all of the other social networks out there. everything happens within the game universe itself. we think by being more engaged, by getting more passionate about the software itself, that's what's going to drive our bottom line. >> reggie, we'll have to see how he does once it's on sale. thanks so much for talking to us, president of nintendo north america. >> thank you very much. sorry about this, mandy. disaster du jour comes from your homeland. we're talking ability qantas air. the stock hitting an all-time low after it forecasts an earnings drop of 91%. qantas says the european crisis and rising fuel bills could double the losses in its international business. >> i'm going to hazard a guess.

i'm going to guess the australian dollar being as strong as it is, i know it's come off its highs, is still very strong, will be hurting that company. this is a company that used to be hailed as one of the most profitable airlines in the world. just to add water, sunshine stock. ticker wtr hitting a new 52-week high. up more than 80% since the start of 2012. meantime, napster co-founder sean parker making his first public comments on facebook following its ipo. kayla tausche joins us now with what mr. parker said. i presume it wasn't -- a million is not cool. you know what's cool? a billion. >> right now its market cap is 56 billion. details, details. sean parker was in new york city launching his new product air time which he's actually launching with his napster partner in crime, shawn fanning. but we asked him, there's an analyst on cnbc recently who said in five years' time, facebook won't exist. it will be whittled down to nothing. here is how he answered that

question. >> analysts have been predicting the demise of facebook since -- you know, since very early days. you know, there were these predecessors like friendster and myspace that seemed like fads but failed for reasons that had nothing to do with culture. they had to do with technology. facebook is such a basic utility. it's something that is such a part of people's lives. i think it's hard to imagine it going away. >> now, parker said that he sold a minimal number of shares leading up to the ipo. in the eight years of the company, he said, that's an astounding thing. even though you saw a lot of investors selling in the ipo that throughout the life span of the company they really weren't. interesting to note there was a rumor parker was trying to off load $150 million in facebook stock in the year leading up to the ipo but his price was too high. we'll see if he can actually make a buck on that. when we asked him about the lackluster reception of the ipo and what he thought of that, this is how he answered that. >> there's almost a sense of relief with the ipo.

there was such a speculative market around facebook shares. in particular the retail investor. the fact that that's no longer an issue for the company is probably a good thing. eventually, you want the stock to stabilize and you basically want to have a lot of large institutions who take a long view. >> e thinks there was a speculative market involving the retail investor and that it's a good thing it's gone. i would argue it's not exactly gone when you see the stock trading the way he has. >> i'm going to guess he's trying to see the glass half full on that one. lackluster is an understatement. >> fanning. the guy next to him. that's the guy that created napster, folks. this is a guy that was way ahead of his time. got sued out of business. napster became -- >> one of the original hackers. >> it was purchased off the scrap heap, basically. but that guy. it's good to see sort of him back in the game, i think. he was an originator. he couldn't steal a lot of music on a 9600 watt modem. then when you did you got caught. >> if only they had invented

itunes. maybe things would be different. >> we got to get to a market plash now. brian shactman. >> i can remember waiting forever for my napster to downloa download. hyatt hoe tels. prices are still lag ing. they'll try to focus more on franchising in north america. one interesting note maybe on the negative side. construction financing still a challenge for them. which i found pretty surprising. stock up almost 2%. back to you. >> thanks very much for that, brian shactman. coming up next on the show, maria bartiromo's exclusive sit-down interview with former president bill: listen. we're going to get his take on the fiscal cliff that is looming. mouse house game changer. disney tv about to become a junk food free zone. at what cost? we'll talk more about this story when "street signs" returns. [ mechanical humming ]

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by the way, folks, after a choppy start to the day we're now extending our gains. nasdaq now up by about .6%. in the meantime, it is time for today's street talk. first up, netflix. it is not necessarily a good one. >> not good for limelight networks. that stock down 12.5%. reports out that netflix may be developing its own content delivery mechanism. right now it compresses video. lime zbln light and akamai compress it further, get the video out. it could be a negative to limelight. they're heavily exposed to netflix from the video delivery service. jeffries expressing doubts

saying this would not be netflix's first effort at this. investors taking it out on limelight. >> after getting cold cocked yesterday, up again. >> today the rise. pulling a rocky. core logic index showed a second year of year over year price gains for homes. in fact, 2.2% from march to april. 1.1% year over year. so a little bit of stability, at least from core logic. you can debate case-shiller versus core logic. either way, core logic showing bryce ga price gains. lennar up 37%. >> they're not the only one that's had a great past six months or so. as for dollar general, what's going on with that one right now? >> it's interesting. it is down 3%. even though earnings jumped 36%. that would be great for most companies. 36%. that's fantastic. the problem is, a, it unveiled plans for a secondary stock offering. b, it did not raise its full

year same-store sales guidance. maybe wall street, again, one of these stories that herb always talks about. hi. see you in a few minutes. if you're a high valuation, high growth company you better deliver or this is what happens. >> look how obedient he is. he's not coming in. waiting for his time. waiting until we call on him. good boy, herb. we'll get to you. caci international. >> up nicely after winning $165 million contract with the government. specifically the department of defense. that stock up 4.5%. the last stock is a name you know. >> six flags. i'm actually going there on thursday. taking the little boys. maybe they're taking me. i was the one who wanted to go. >> dragged around by the corn dog. did you get a season pass or a one off? >> a one off. let's go and have some fun day. >> in jackson, new jersey. >> indeed. >> you know where to find her on thursday. >> i'll be incognito. groucho marx nose and dreadlocks

hair. oppenheimer out with a positive note on six flags. saying season pass looks good. $50 price target. you're going to drop a couple hundred bucks on funnel cakes, dart games, rides. are you tall enough to ride the roller coasters? >> i don't think i quite make that. it's like yogi bear standing like this. please let me in. herb's been waiting. he's been obedient. he's seen his share of controversial companies. he's here to tell us why ubiquiti networks is one of the ones we're watching today. >> i've been obedient? >> she's actually 6 feet tall. i'm 8'4". you're 6'5". >> company went public in october. right out of the gate it disclosed without its knowledge, its products had been shipped around by, quote, third parties which the company now says was one of its now former distributors. there are other issues. in the end it's about business. why saratoga research has it rated a sell and has had for

quite a while. even here with the stock having fallen by more than half in the past month, part of the decline was the result of concerns over slowing growth and deteriorating earnings quality. but here are two things i would pay attention to. first, the company recognizes revenue when the product is sold to distributors. that's called sell in. it's considered a very aggressive form of revenue recognition. that can lead to channel stuffing. most hardware companies like cisco do not recognize revenue until it is sold through to the customer. then there are the rising receivable days outstanding. often a telltale sign of what's known as channel stuffing. in this case ubiquiti attributes the rise to dsos to temporary closings of chinese factories during the chinese new year which they said led to a back end loaded sales quarter. all i know is this. rising rereceivables. days outstanding. a back end loaded quarter. no matter what the reasons, that's always a worrisome combo.

in this case, controversies. for more you can actually find more on cnbc.com where i've written up a little piece of this. >> you have. >> did universal tdisplay ever get back to you? >> no. panl. we've asked them a number of times. you know what? that, to me, is a big red flag. >> you and me and a zip car. we're going. road tripping. san diego. me and herb. >> it's actually down the road in new jersey here. >> i'll see them on the way home, then. stop in. you have bill clinton waiting. >> big deal. bill clinton hitting the campaign trail raising money for president obama's re-election campaign. the former president also sat down with our very own maria bartiromo today for a wide ranging interview on the euro crisis, economy, and what some are calling the impending fiscal cliff. maria joining us from the nyse with a debrief. thanks for coming on the show. what did you and the former president talk about? >> it was great to catch up with president clinton. particularly now during this very fragile time in our

economy. given the fact that president clinton oversaw this economy during the go go days of the '90s. the real vie bransy in the economy. was the last president to balance the budget. led a budget surplus. he was concerned about what he saw in europe. the economy is anemic evidenced by jobs numbers last week. he was pretty downbeat about the u.s. economy. one thing he stressed a few minutes ago was the fact we should avoid a fiscal cliff at all times. by all means. in fact, he suggested that the bush tax cuts should be extended as well as those spending programs. bottom line, don't let this go too far to get out of control. avoid that fiscal cliff at all costs. >> what about this upcoming fiscal cliff? because a lot of people are worried and the markets certainly have been reacting to the idea that these bush tax cuts will expire at year end along with the spending programs that will expire.

should those programs and those tax cuts be extended? >> what i think they should do is to find a way to keep the expansion going. and i think the -- as weak as it is here, unemployment in the eurozone, i think, is 11%. and germany's doing well. in a lot of the smaller countries are doing extremely well. many of which are not in the euro. they're trying to figure out a way to promote growth. what i think we need to do is to find some way to avoid the fiscal cliff, to avoid doing anything that would contract the economy now. >> and he followed up with that by saying one way which certainly would create pressure is to raise taxes on folks and cut those very programs that are so important. we also talked about wisconsin. of course, voters going to the polls today. we will learn the result of that. he said it's going to be very, very close. of course, he did campaign with

mayor barrett against scott walker. i asked him about scott walker's chances and whether or not a win for the republican in wisconsin would actually play out for the entire country. does that sort of dictate what happens in the november election. i also talked about all of his fundraising last night. of course, he was in new york city with president obama. a lot of the headlines said this they were courting so-called new york's elite. i asked him about taxes and whether or not this was the same group that president obama has been attacking, saying that they're going to be paying higher taxes and they want a fair share. we got into fair sharedness a bit on taxes given that 50% of the country pays no income tax, brian. >> of course, we're going to get your full interview with him on "closing bell," right, maria? >> that's right. that'll come up next hour, guys. >> look forward to it. thank you very much for that. sounds like a very wide ranging interview. >> you saw the president kind of hedge when she asked him should we raise taxes. that's tough for the democrats right now sfl a very difficult

topic. coming up, winner take all. moyo on china's big resource grab. the curse of the $100 million mansion. why the super rich, the poor buggers, are taking a bath on these trophy mohomes. this is a sob story if you've ever heard one, folks. there's a lesson here. never buy a $100 million mansion. how do you know which ones to follow? the equity summary score consolidates the ratings of up to 10 independent research providers into a single score that's weighted

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too much demand. not enough supply. is why china is in a race for resources, right? there's some that believe china is about to take a major

slowdown. the proverbial hard landing. which could then reduce demand for commodities as well as why is china in africa snapping up commodities from all those impoverished nations? i'm the guy asking those questions. dambisa moyo has the answers. author of "winner take all." dambisa, in los angeles a few months ago, i was arguing with you. you were telling me why i was wrong, as usual. about china going into africa extracting resourgss from a lot of nations that a lot of countries won't do business with or shouldn't. congo. chad. et cetera. to feed their growing appetite. i think it's a bad thing. you disagree. you're probably right. tell us why i'm wrong. >> i'm definitely right. thank you very much for having me on the show. the fact of the matter it's a win/win -- if i may use a cliche, win/win situation. china is offering trade, investment. these countries have 60% of their population under the age of 24. countries like uganda, 50% of

the population under 15. don't need pity. don't need ate. it's not just africa. brazil. chile. russia. kazakhstan. the fact of the matter is china is doing -- it's open for business. this is very important for these regions. >> china does nothing out of the kindness of their own heart. >> absolutely not. >> it is a win/win. could you even go so far as saying a lot of these really impoverished countries like in places like africa that actually it's lifting a lot of people out of poverty? they're building roads, they're building bridges. okay. china is benefiting from this as well. but they're putting a lot of money into these economies. >> absolutely. as i said, it's absolutely essential for long-term economic growth. but also for undermining or reducing poverty. which is what we need. issues around income ine equality, issues around being able to meaningful put a dent in poverty over time require capital investments. chinese are willing to do that. are there costs? potentially there are. these relationships are evolve ing. it's really essential for us to focus on that. i'm a big bull on commodities more generally. i fundamentally believe this is setting up a floor around the world in terms of resources.

>> the wealth in africa is so c concentrated to top. >> you need to read more books. the fact of the matter, that is changing. we're going to have 3 billion new people in the middle class in the next 20 year. fact of the matter a lot of them are going to be coming from africa. >> sub saharan africa? >> absolutely. after china and india, the third fastest growing economy this year. >> some countries, zambia, botswana, they've been doing well. pretty free markets. what about congo? the countries -- the leadership problem. nigeria. constant struggle over resources. >> of course. brian, it's far too easy to be critical about these places. you miss the bigger picture. there are a number of countries now that have credit ratings. there's much more investment going on. fdi and trade. much more in terms of opportunities. the reality is africa is de -- is not in this deleveraging problem that the rest of the world has seen. it's been ring fenced for many, many years.

i think there are lots of opportunities for investment. >> do you feel there's a risk, however, with china slowing down and to what extent we do not know at this stage. and places like in africa and even chile which i believe out of the latin american economys the most leveraged to china now with copper exports. if china slows down significantly what happens to these export oriented economies. >> there will be knock on effects. to say zero would be absurd. it needs to be taken in the broader context of what's happening in china. i'm actually of the view that china's not going to have a hard landing. we're already seeing a slowdown. i think even the worst case estimates that i've seen is china at 7%, 7.5% gdp growth. that ain't too bad. the fact of the matter is with commodity supplies growing at 2% a year the gap still is at 5% which is why i'm bullish commodities. >> you tell me i'm wrong nicer than anybody ever has on this show. >> i think you might have single handedly made him -- that was his admission that he was wrong. >> it was. but she did it so elegantly. i was like, oh, you know what?

i was wrong. i'm not even upset about it. >> we have to leave it there. it's been a pleasure to have you on the show. let's get another market flash. brian shactman, what are you flashing us? >> borderline meek right there. uri, united rentals. they've had a tough couple of months. down 25% getting a good pop today. piper jaffray initiating with overweight. they have 15% of the equipment rental market in the u.s. they're the biggest player. they see an up tick in construction spending. the price target here is $53. big upside from 32. call it the $100 million house curse. wealth reporter robert frank is here with a look at what is behind the hex, robert. >> as i reported this morning, billionaire john paulson just spent $49 million for a new house in aspen. it had been on the market at one point for $135 million. this reminds us that even in the megamansion market, the good ole days and the good ole prices of

2007 are largely a fantasy. a lot of them did not have happy endings. let's consider our first home, maison delamitie. palm beach. donald trump was the seller. $125 million. it sold for 1$100 million. not a bad discount. today this house is in a bit of array. the russian buyers are now divorcing. no one's lived there in more than four years. it's caught in a massive global legal battle. we saw an even bigger discount at this house which is called candyland. it was on the market. it's called candyland because of candy spelling, the owner. it was on the market at one point for $150 million. it sold for $85 million. a 40% discount. now, again, this was a house that was priced big and sold for 40% discount.

but petra eklestone who was the buyer had hired a team of 500 workers to renovate. it was a bit of a fixer upper. i think renovate. the biggest crash of the decade was this one. this home was owned by leo leona hemsley. this house went on the market for $125 million. it sold for a whopping $35 million. so that's, you know, a huge discount. this mansion is back on the market for $42 million. again, no takers. this shows even in the mega mansion market there are occasional bargains, bargains, of course, being a relative term. >> it is relevant, isn't it? coming up -- >> beverly hills slums here. coming up, disney trying to go junk food free. >> they say no to unhealthy food

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welcome to the world leader in derivatives. welcome to superderivatives.

a nice run this year, up nearly 20% and disney putting its foot down. no more junk food on tv. anything that doesn't mean certain nutritional requirements can't be on the programming. joining us is ceo of research firm. great to have you both on the show. mark, it's easy to be cynical about their motives, but i would say, look, whatever the motives here, it doesn't really matter. at least they are taking the lead. >> absolutely. they are the leader. they sell the children but they also sell to me and i'm a parent. we have a problem in this country. obesity and the time is long since come to deal with this and the leader needs to deal with it. there's really no choice. so i'm delighted they have gotten out ahead. >> dennis, you're on the cynical side? is this a big pr stunt?

>> yes, put out a set of guidelines that's supposed to be an inspiration for companies in terms of how they market their food. so, yeah, we can give disney some -- i think a little bit of credibility on this. but this seems inevitable to me. the fact that they got michelle obama in their press release, mandy, was even more remarkable. this is much more of a marketing story than a health story. >> are they going to stop selling their stuff with their parks or -- >> they are going to change the nutritional requirements. >> there's a lot of people. i may need my funnel cake, right? so i'm going to go to six flags. i'm not going to go to disneyland because i need my fri

fried snickers bar. >> there's lots of other ways around this and apparently they are helping fight obesity. >> mark, who do you think is going to follow? or do you think some of the other companies are going to see how this works out and then maybe follow down the line? >> right. let's say you're at nickelodeon or cartoon network and disney is in the lead and you're the follower. the first thing they are going to do is watch this, take advantage of the advertising opportunity that this presents for them to get some answers that disney will not take now. but, you know, i agree. it is a marketing story. that's the kind of story i like. it is inhe have tanl. that's when things happen, is when they are inevitable and eventually i think they are going to have to follow suit, at least to some degree. >> i haven't gone through it and looked at every figure in the mickey check program. this is the disney branded nutritional guideline.

i did see one interesting thing. >> yeah. >> the fdc guidelines suggested one gram of fat. disney's guidelines, 1.1%. they are a little higher than recommended. >> how bad of them. kudos. >> dennis, mark, thank you very much. we reached out to the networks. cartoon network said -- >> car do you know network adopted our own nutritional guidelines in 2007 that addresses the use of original characters on air. we did not hear from viacom. show is over. >> "closing bell" is coming up next. see you tomorrow. well, in that time there've been some good days. and some difficult ones. but, through it all, we've persevered, supporting some of the biggest ideas in modern history. like the transatlantic cable that connected continents. and the panama canal that made our world a smaller place.

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