tv Power Lunch CNBC June 18, 2012 1:00pm-2:00pm EDT
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josh? >> ebay. >> ron? >> recommended buying s&p. i would stay long. >> john? >> sisqo, long it. >> bmc, buy it. >> that was fast. we're done. "power lunch" starts right now. welcome to "power lunch." i'm john harwood in washington. president obama in mexico has just commented on the greek elections that provided hope to euro zone advocates that the greece situation and the bailout may be preserved. here's the president. i guess we don't have that. that would, in fact, stabilize the crisis, the debt crisis in the euro zone and that's what investors have been relieved about with the early gains faded somewhat. >> thank you very much. we'll stay after that. if he says more about greece or other newsworthy topics. you have heard a lot about
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greece and europe in the past few hours. but over the next 15 minutes, here's our promise. we are all about investing and making money in the usa. as there are clear cut opportunities based on what's happening overseas. topic number one, housing in the usa. there's a key new report out today on the home builders. another key topic for us, microsoft. that company set to release information in the next few hours. who knows what exactly it's going to be about? it could be a real market mover. sue herrera at the new york stock exchange. hi, sue. >> hi, ty. good to see you. we didn't get the pop people thought we would and not much follow through and really smack dab in the middle of the range for the market today and a perfect day to focus on other opportunities and we start with the home builders. u.s. home builder sentiment hitting the highest in some five years and diana olick is live
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for us. >> they're feeling better about their market but just not feeling as good as they did last month. on the monthly sentiment index, confidence rose one point versus a four-point jump in may but june hits the highest level since the spring of 2007. take a look. the builders warn recent economic report that is have shown some weakening in the pace of recovery factored in to the margin gain with tight lending and inaccurate appraisals. current sales conditions up two points. buyer sales and expectations over six months both unchanged. builders in the midwest and west gain confidence. not so much in the southeast and the west where the index dropped. tyler, that could be based on out west where you have all the foreclosures. inventory's very low and the builders starting to feel competitive again. >> i guess that's a good sign. thank you very much, diana.
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how do you play the home builder sector right now? hanging out with us for the week is tyler, tyler -- >> yeah. can you remember that? >> biltmore capital's chief officer. are there home builders you like? >> i would be somewhat concerned in the space. they have run up dramatically over the s&p over the past year so again it's a space that you have to worry about. if you're going to go in the space, go with the larger players, some of the big players. tol brothers, for example. they're accessed to capital and important to borrow cheap. they can borrow cheap and make bolt-on okay weizations and dealing with the higher end borrower getting a mortgage and so important in this environment. >> the other one you like is lennar? >> yeah.
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>> a different story a little bit. >> they're making acquisitions in that business and with rates so low that's going on and able to increase revenue in that area and access to some cheap credit and also buy some real low levels sort of vulture real estate plays and again this is certainly the time to be able to buy those types of plays and those two to get in the space, we would do it that way. >> love the name. tyler vernon. thanks. sue, back to you. >> i feel left out. nat gas moving smartly and sharon epperson has the details. >> reporter: hi, sue. the heat is on and seeing that in the natural gas market and surged as much as 6% intraday on weather forecasts for two weeks. what does it mean? greater cooler demand and probably injections or additions to storage levels that will be less than expected. and so we are seeing prices that have hit the highest level we
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have seen for the month of june. key level next is $2.76. some traders say will we see the high we saw of this session first? but the fact remans there's plenty of natural gas out there, quite a lot, in fact. and we got to get past that $2.76 level to stop the down trend for natural gas. microsoft has an unveiling tonight and says you can't afford to miss it. rumors are swirling. lots of talk. what are the facts? john forte is chasing down the rumors. what do we know, john? >> reporter: we don't know much, tyler. we know barnes & noble isn't part of it. probably not an ereader. last week a source said it was a developer eccentric event. another told me it's not. we won't shoot the presentation with the cameras.
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microsoft has a new version of a phone and the real buzz is about tablets and consumer tablet situation is tricky. the major pc makers and intel tell me they're focused on business tablets and may be forcing microsoft to do a branded tablet for consumers. this is a big risky move by microsoft. they have to somehow make it good enough people want it and limited enough they won't bring it to work and undercut the pc system. microsoft has to do a tight rope. >> very, very interesting. jon fortt and following that for us for the remainder of the day. tyler vernon, let's get thoughts on how you're playing tech and chips and tablets and more. >> sure, tyler. that is a great space to be in. a secular trend. everybody in the u.s., we love the technology and can't get enough of it. intel's the first place i'd
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play. very mature company. didn't realize what was happening with the smartphone business and the tablet business and invested in r&d to get in the business and finally got it. i announced major partnerships with smartphone providers, with tablet providers and seeing revenues from that space over the next couple of years. in addition, with the windows 8 coming out, we think we'll see a technology upgrade cycle happening and good things with the company and we like intel here. going forward, we like lenovo. not a lot of people know about it out here. they're selling more computers at this point than dell computer. so they're starting to really get a name brand. the ceo executing on all cylinders. coming out with smartphones and tablets and continues just to make more and more revenue, taking more market share. >> thank you very much.
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we'll check back with you a few. >> it's a bicentennial as a bank for citigroup. they were here after ringing the bell in honor of his company's 200th anniversary. it hasn't been a great year for citi stock, however. down 27%. the banking index down 6% in the same period of time. but he is optimistic, at least in the housing sector. >> certainly parts of the country starting to firm up. seeing that in new york city. seeing that in certain parts of the u.s. so it's not one market. and we actually are starting to see in the cities commercial real estate do a lot better, rentals are very strong so we're not done yet. in terms of recovery of the housing sector. it takes sometime. having said that, we like the signs we are seeing. >> and you can see more of maria exclusive interview today on "the closing bell."
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it is also an anniversary for facebook. the stock listed a month ago today on the nasdaq. remember the optimism of that launch? it's down $30 but you can see that the shares did get a pickup last week coming back to the plus side of that $30 a share mark. and as facebook's value remains in question, the value of used cars is not in question. and it's a very telling statistic for detroit. the new surge in the auto industry is a pricing challenge at the showroom. the price of used cars now starting to fall a bit. phil lebeau is live with more frr wh for what it means. >> reporter: look at the wholesale market right now. over the last three months, they have noticed a drop of 3.5% and seeing it on the retail side, too. go to the lot and see prices down 3.7% according to kelly
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blue book and expecting prices to drop 6% to 7% this year and there's greater new car supply in the showrooms and people find greater selection. more opportunity to buy. remember the price difference isn't that great between new and used. why not buy new? loans and financing is expanded. easier to get that auto loan and challenging credit and the reason to see new car sales improve and look at the dealer stocks. this is all about churning the market, sue. all of the stocks on a role this year. even if used car prices have peaked, sue, there are a lot of people going in there, they're going to trade in the car at a pretty decent price and the bottom line is we have seen a peak. that doesn't mean it's bad news for the dealers throughout. >> thank you very much. another note with cars, getting more and more gadgets built in to them, ford is setting up in the land of gadgets. the detroit automaker opened a new research and development lab in silicon valley and working with microsoft as part of its
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sync technology. bmw and her dwith labs in the v. a sad note here. dan dorfman, known for his pioneering market coverage died over the weekend at 80. dan dorfman suffered from a heart condition and he was very influential on tv and in print. as much a newsmaker as a reporter. he delivered reports that were must watch viewing and often moved stock prices and also authored "heard on the street" column and wrote for "usa today" and "esquire." he moved to the internet early in 1999. and until last year, he blogged for the huffington post. he was a wonderful guy. he kept us all on our toes and he will be sorely missed, ty. >> he was an original and doing things that sometimes drew
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controversy to him based on the fact that he was doing something that really nobody else was doing, and it put him in contact with people who sometimes were controversial of themselves. >> very much so. >> he was original. >> he was. what i loved about dan is took the work very seriously. he didn't take himself too seriously and made him so much fun to work with. >> quite a character. >> all right. we promised you the usa block. not a since l menlgs of greece, spain and italy and now the old continent again. the yield on spain's 10-year going above 7%. there it is at 7.17. that makes spanish debt widely seen as unaffordable. we are diving past greece next and don't miss how i made my millions tonight at 9:00 on cnbc. i'll be there. a couple of very, very interesting stories. one about a company that's actually making toys in the u.s.
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arriving arriving in mexico for the g-20 summit. high on the agenda, of course, the mess over in europe. president obama saying the vote in greece keeps it, greece that is, on the reform path. >> the election in greece yesterday indicates a positive prospect for not only them forming a government but also
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them working constructively with their international partners in order that they can continue on the path of reform and do so in a way that also offers prospects of the greek people to succeed and to prosper. >> next step in greece is to build a glompboverning coalitio. michelle caruso-cabrera is live covering it all in athens. michelle? >> reporter: hey there, tyler. yeah, what's been considered the worst-case scenario is averted. a deep renegotiation of the bailout agreement did not get in to power and the pro-bailout party has won and greek media has been carrying the political theaters that happens here in greece as they try to form a government. the leader of the winning party meeting with the leaders of the other parties trying to build a coalition. if you don't understand parliamentary democracy, don't
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worry about it. just know that we believe might be running the country before the end of the week and form a government officially tomorrow or the day after. the next step is, that government says they'll try to renegotiate the bailout agreement that keeps greece afloat and easier terms. there's a growing consensus in a lot of places this is something done if greece pays the bills back. the former prime minister of greece george papandreou appeared on tv networks and joined cnbc today and he, too, was lobbying to get greece more time and understanding. >> i do believe greece really can change. we have great potential and the vote yesterday will open up, i believe, a government of a coalition. which is pro-european and will continue major reforms we need to make in order to make our economy viable. we have put too much weight on the austerity side to cut the deficit while, in fact, we have a country not poor but it was poorly managed. now we have to reorganize our
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economy. that takes time. reform our tax system. the civil service. we have made major reforms already but we need to take it forward. it takes time, understanding. >> reporter: so, a lot of the things done here in greece is raised taxes and cut spending but a lot of really deep changes need to be done. they need to make the size of government smaller, they need to reduce bureaucracy, liberalize the labor markets. that's an economist way to say that they have to give more control back to the employers so that they can hire and fire more easily because if you know you can fire you're more likely to hire. that's something that doesn't often happen here in greece. because the labor markets are so stiff. those are going to be very tough things to get done. and it's a question of whether or not greece can achieve that. back to you guys. >> michelle, thank you very much. now to brian shactman.
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>> thank you very much. idcc. wireless communications. a lot going on with the stock. resumes trading up 27.25%. they also doubled their stock repurchase and raised the guidance. good day for i 2kcc. back to you, sue. >> and back to europe. all right. the greek elections behind us. the focus of spain and italy. how do you navigate the euro zone contagion fears? let's bring in katie nixon of private clients at northern trust and oversees more than $170 billion in assets. nice to see you. >> nice to be here. >> the market moved past greece to a certain point and hammering spain right now with the yield well up above 7%. how big a worry is that to you trying to navigate the waters? >> absolutely, sue. i think the relief rally as a
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function of the greek election is measured in minutes, not hours even. and clearly attention is back on spain with a keen focus on the spanish banking system looking at how much to recapitalize and also what to do to stem the capital flight. and in the meantime, the debt downgrades of last week aren't helping with spain just above junk status and clearly tensions are very, very high there. >> a question i have is whether or not a downgrade to junk is already in the market and the interest rate that we're seeing spike up seems to be indicating that's what's expected. >> it is interesting that the volumes on spanish bonds have not been very high. what could exacerbate and accelerate the yield increase if the index funds have to sell spanish debt and goes to junk status and looking at that and since there's no organic demand, more supply on the market will clearly push the yields up.
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>> so, as you try and invest your high net worth individual's money, how does the asset aloe case look? >> we have been consistent for a very long time now in being overweighted in u.s. equities. certainly, we favor very defensive, high quality, large cap u.s. stocks over european stocks at this point. we think the valuation that is are hovering just around low end of the 15-year ranges look very attractive. pristine balance sheets. >> lots of cash, yeah. >> we think that's a good way for investors to play a little defensive risk in their portfolio right now. >> do you have any emerging market exposure? if so, where? >> we are neutrally weighted. we took a broad approach. we're neutral and we have a bias at this point of looking to increase that exposure. clearly, we've been concerned about the slowdown in china and think that the recent policy
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moves prevent a hard landing and we would be willing to increase our exposure. >> that's what our viewers should watch for? >> absolutely. >> thank you so much. >> nice to be here. >> we are analyzing the analyst on a break and on the list two big dot-com names and a tractor. an update on the colorado wildfires. still burning 131 homes have been destroyed so far. but high winds 30 to 50 miles per hour are fanning those flames. it could make the number go higher today. we're watching it for you and we're back in two minute's time. that's why programs like... ...the mickelson exxonmobil teachers academy... ...and astronaut sally ride's science academy are helping our educators improve student success in math and science. let's shoot for the stars. let's invest in our teachers and inspire our students. let's solve this.
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this is big news. welcome welcome back. brian shactman here watching oracle. orcl. at least two analysts reporting that the head of u.s. sales is either gone or leaving the company. take a look at the stock chart. off of the lows but clearly this man is considered important to the company. good for 2.5% plus. tyler, i saw -- i cheated ahead. don't talk bad about tractor supply later. >> we'll get to tractor supply in a minute. it is one of your faves. i like it, too. tyler, which tyler? tyler vernon back to break down some of the biggest analyst's calls on this day. quote, listen to this, tyler, we believe that we are as close to the reality of a digital commerce environment on the
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precipice of change than ever before. >> i buy it. as far as buyers and sellers, my sister goes to garage sale, buys things and sell them on ebay. it's not just her. again, big expansion is in brit countries. >> up 47% in a year. you say outperform. >> a lot of upside with the stock. >> morgan upgrading groupon. quote, deployed systems in the u.s. that enhance the ability to send personalized and real vale deals around the globe. you like it? >> i don't think the call. this company is still fairly new. i think they have a lot to prove. earnings per share don't look as good. i would much rather own a google, especially in this market environment with the volatility we are seeing. a proven name. we're seeing more add dollars come to the internet so again
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i'd much rather go with google than a groupon. >> up 10% today and down 40%. >> especially now. i think buying it bought it too late. >> talk about tractor supply. anything as far from ebay and groupon as you can see. key bank downgrading it from buy to hold. >> do you feel hurt on that? >> citing, quote, entry data points that suggest softer consumer demand in recent months. i'm not sure that was english but you get the idea. they downgraded it. >> yeah. i agree with this call. i actually think it could be an underperform. look at the chart, up about 45% over the past year and if you compared the s&p against it, s&p is up about 5 so i'm worried about the valuation concern at this price. especially we think that there will be a slowdown with the consumer and that's really what this economy operates on. consumer stores.
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waiting for the consumer to come. >> brian shactman trying to help it, doing everything to roll through the mud one more time. we'll be back. next up, the monday metals market close after this. you want to save money on car insurance? no problem. you want to save money on rv insurance? no problem. you want to save money on motorcycle insurance? no problem. you want to find a place to park all these things? fuggedaboud it. this is new york. hey little guy, wake up! aw, come off it mate! geico. saving people money on more than just car insurance.
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earlier it's risk off in the gold markets. sharon epperson is sharing the action for us. when about the gold market today? >> the traders are cautious here. a number of telling me they don't plan to do anything until wednesday. they're waiting for the fed. you can see in the close in the gold market. down a dollar and basically flat trading here for gold prices. there are a number of factors waiting for. folks saying the goldman sachs report over the weekend expecting the m fmoc to ease coming up on wednesday and then the litany of countries other than greece that still have a lot of problems. of course, there's spain but there's also syria and egypt and north korea and iran and that's why the fold selloff is limited
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and looking at the past week or so, we saw money managers raising the net long positions in gold and may have been some short covering and seeing that, the key whether or not gold prices retest the 1640 level. and from there, we could see 1700 for gold. what gives the bulls some resolve, sue, is seeing gold prices outperforming silver we hadn't seen for much of this year and we have seen in the last month or so and with it near the highest levelless this year, lets you know of the global plays and folks want gold over silver. back to you. >> thanks, very much. down here on the floor of the nyse with me is bob pisani. >> for all of this hand waving about the greek elections, it is
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healthy line. we are trading at a narrower trading range than we usually do. this is an 80-point trading range. this could be a telling week. the markets hold up well despite the worries and i think what the fed says and g-20 if miss merkle says could validate the bottom fishing or not. i think this potentially has the makings of an important week. >> are you worried that the euro crisis? it's continuing to drag out. this is obviously a test for the new government. they have a lot on their plate that they have to change, certainly. but what are the expectations in the u.s. market of that? >> well, i think they think it goes on for a long time. everyone adopted the euro to break up strategy. i don't know why everybody adopted this idea. they're going to throw everything at this before that gets close to that. i think it's several years down
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the road from anything like that happening and this policy in the united states. look how defensive the markets are. look at the market leaders today. it bothers me with utility and te telecoms. look at the quarter you have the market leaders for the second quarter, what does that tell you? they're defensive names, high yielding and they're expensive. >> but is that because of europe or because of the fed? >> they need -- largely europe. they need to be involved in the markets and hiding out in the market here and i don't understand it. i mean, i think telecom is 20 times earnings or something. ridiculous. there's the laggards. all the risk-on trades and the big question is there any chance of a move in to those laggards group as we go in to the end of the quarter? maybe after the wednesday fed market. >> yeah. that's it. >> all right. see you in a little bit, bob. over to the nasdaq.
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jackie deangelis is following the big movers. >> we are in the red and seeing the shares of the solar companies. reports in japan that the government to introduce tax incentives to make that solar technology more attractive to users there. so we're seeing a nice move in first so lor and also in sun tech power and shows of ebay today. liking the company's push to break in to physical offline commerce of paypal and popping nearly 5%. also infiniti pharmaceuticals here. treating bone and cartilage cancers and results have not been what they were expecting and down 11% intraday, down 5% right now. sue? >> thank you very much, jackie. all right. rick santelli is tracking the action at the cme.
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the fed looms front and center and very large over the market. how does it look? >> well, you don't need a big rear-view window. when's behind us with greece isn't the issue. it's what's in front of us in terms of solutions. and we're going to continue to grapple with that. we can see funding and the bigger countries like spain, italy under the microscope. look at the intro days. it's flattening a little bit. see 69 last on a 5. settling around 67. the range, 71 to 66 or so. overnight with the volatility. further down the curve, big volatility last night. virtually unchanged on a 10-year. 155 last night to 165. 30-year bond still down a couple of basis points from where it settled. a huge range last night. 276 to 264. looking at the euro currency, always difficult. if they picked the right outcome
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for the greek elections and if you look at the chart, pay particularly close attention to the year to date. the lows in january, beginning of the year around 126.70. even though we topped above the intraday. that previous low would be significant. back to you. >> thank you very much. a new round of departure of goldman sachs. three partners left on friday. the firm left off 50 other executives in the past few weeks. the average salary of partners, $950,000 a year and sometimes less than half of it with the bonus, of course. sue craig worked the story for "the new york times" deal book and with us right now. sue, welcome. who left and what do the departures say of when where goldman is right now and may be going? >> there's three departures on friday and part of a longer bleed of employees over the last year. not only the partnership pool shrunk, the elite few in the
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firm an the firm cut 10% of the staff and it's a sizable number of both in terms of the whole and the elite partner group. >> is this a cost-cutting move principal principally? >> they're firm that is are all seeing less revenue coming in. it's been difficult markets and also facing just really difficult time with new regulation and it's just all pushing on on the revenue and got to get people out the door and shrink the numbers. >> high level partners. >> they were. >> long-time partners in merchant banking. mezzanine finance. who else has left or been reassigned lately? >> there's been a number of sort of both at the partner level and been some senior department departures and including people like ed forth and then you have seen interesting in terms of goldman, you have seen a -- it's hard to say inordinate amount
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but partners leaving and gets rid of higher earners and same time getting rid of the broader and seen a deeper cuts within the executive suite. >> banking ain't the business it once was, doesn't have the revenue coming in and what do you do to maintain profitability? >> cut at the top and save a lot more. >> all right. thank you very much. let's go to brian shactman now. >> starbucks at the highs of the day right now. earlier the ftc granted approval of the $100 million acquisition of a bakery. the market seems to like it, ty. back to you. >> and coming up, the president of u.s. trust, he's going to tell us why baby boomers don't trust their kids with their money. but first, a quick look at how the market's trading right now. the industrials down 9 points. s&p and nasdaq with small gains. ♪
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now that's like sunblock before or sun burn cream later. oh, somebody out there's saying, now i get it! take beano before and there'll be no gas. coming up the top of the hour, we'll go live to a big greek investor about this week's election and what it means for your money. plus, oil sliding recently. pushing gas prices down at the pump. will that trend continue as we head right in to the summer driving season? >> we look at how blue nile.com shook up the diamond business and made millions. all that coming up top of the hour. now back to "power lunch." >> thank you, mandy. see you in a few minutes. a new study finds wealthy baby boomers are ready to cut their kids out of their will and they don't feel gt agent that. good to have keith banks here. >> great to be here, sue.
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>> there are a number of pretty amazing findings in this survey, it has to do with how many of younger generation already helping their parents with medical costs,cost et cetera. you make the thought you think it's based on a personal experience to economic realities. in that, some of these baby boomers had the longest bull market run in history. yet, the gen xors and gen ys did not. >> that's right. it colors how they think about a lot of things. including what you find at the gen xerss and gen yers to diversity to the tangible co commodi commodi commodities. it colors how they invest and really shapes who they are in many respects. >> and they don't necessarily feel as though they need to pass
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on whatever wealth they have accumulated to their children in the way that traditionally parents have passed on wealth to their children. >> when you look at the boomers and you ask them, only 55% thought it was important to leave a financial inheritance to their children and that compares to 76% from the xers and yerss and 73% for the preboomers and reasons is number one they believe that each generation should earn their own wealth because the majority of the boomers did, in fact, do that. number two, they think it's important to invest in their children while they're young and growing up. third most important person is they're expecting to live 20, 25 years or more and a need for the money for themselves going on to the next leg of their journey.
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>> amen, amen as a baby boomer. one of the other findings was that the generations tend to trust their children's ability to manage money more than the baby boomers trust their children's ability to manage it. could that be because they know their children better because they're older and know them? >> that could well be. but you're right. there's a greater degree of confidence on the xers and yers versus the boomers but i think overall there's a real concern across all generations the young people inheriting the wealth are not prepared today and the concern is they're not taking steps to ensure they become prepared and that's concerning to us. >> i also found it interesting that so few of the respondents and it was a pretty big survey. they haven't utilized the traditional wealth plans
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vehicles if you will. for instance, a revokable or irrevocable trust. is that because they don't trust, no pun intended? but why would that be because it's a way to guarantee solitude, if you will. >> it's a great point, view. there's two things from that. number one, a general misunderstanding. a lot of respondents think that having a will is enough. and we know that it isn't. the second thing is their adviser is not really leading that discussion and taking them down that path. and that's a problem, as well. >> all right. mr. banks, thank you for joining us. appreciate it. >> thank you. so the high net worth investors may not be giving money to the kids quite as lavishly in the past but also may not be taking such grand vacations. wealth editor robert frank is looking in to the luxury yacht market and says the summer rentals are staying in port this
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summer. hi, robert. >> hi, tyler. if you dreamed of a super yacht in the mediterranean, this may be the chance. there's a huge over supply and touched off a wave of price cutting. brokers say tell me more than 750 yachts in the mediterranean looking for renters and simply aren't enough rich people to rent them. call it the euro yacht crisis. we looked for some of the best deals and here's what we found. we start a boat called "lady christin christina." 204-foot yacht. it's got a private gym on the lower deck just after the workout, dip in the water and come back for the day of drinking and normally this boat would rent for $430,000 a week. this summer it's 20% off if you rent it for 2 weeks, that's a savings of $174,000. we also have a boat called "bad girl." not her.
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the boat. this normally rents for $250,000 a week. summer, discounts of $25,000 a week. finally, in what may be the deal of the summer, we have the 152-foot boat called "cue 1." offering 30% off, savings of $75,000. food and beverages are not included with the rentals so take that $75,000, buy extra cases of dom and caviar and of course are necessities for a yacht trip and there as you get your savings. so some of these yachts are even offering free fuel, free extra days on the boats and even free rides to and from the boats on a private jet. to learn more about mega deals on mega yachts, go to cnbc.com. tyler? >> bad girl or pure one. when ch do you like better? >> i go for "bad girl."
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no pun intended. that's a bigger boat and a nice spread. >> i think the 75k might fit under the tnl expense ratio taking "power lunch." make sure you get the details from him, ty, before i get back. >> will do. it's done. all that worry about the greek elections a enthe impact on the market? the problem today is spain. we talked earlier about it. the 10-year well above 7%. almost 7.18%. up 41% year to date. how worried should your money be? that's next. microsoft's mystery move. the announcement we're all waiting for tonight. we get to speculate coming up next. microsoft's down half a percent. this is the first car that i've been totally in love with
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welcome back to "power lunch." i notice the railroads are up today and outperforming the broader market and then trying to figure out why. look at norfolk southern. a lot of people think the rails are in trouble. one way to make up for it is intermodel. off the ship on to the train and then right on to the trucks. well, much stronger than expected and that is lifting the entire sector.
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ty, back to you. >> thank you very much. time for the power rundown. with us is simon hobbs and bob pisani. let's see if the relief of europe is enduring. simon, bob, has anything changed? what should i take away from all of this, simon? you first. >> in a sense we dodged a bullet, didn't we? least worst outcome. the problem is that because you don't have a panic or capitulation, it's actually if we don't get movement from them by the end of the week certainly the politicians, we are not in a good place. >> the can is not kicked down the road very far but i don't think the break-up of the euro is imminent and there's a signal of a willingness, this week signals it makes the markets more calm and not a lot of people invested in stocks right now. >> sort of agreeing with both of
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you, actually. the can is ticked but not as far. let's talk about microsoft. rumors flying about a microsoft design tablet. a big announcement later today. others speculate a kindle killer or a direct competitor with the mighty ipad. >> i can tell you, remember what happened with some of the other stuff they tried doing so well. i guess they could bring in -- remember the zune? they were killed on that. microsoft windows and the xbox, they might be able to make a tablet and already several years behind. >> the strength, simon, not really except for the xbox been in the manufacturing. >> that's right. if there's a new ipad as loved but the pricing is difficult to compete and not actually kind of
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take power i way from laptops and other window sales. it is a tricky one to pull off. >> apple still has the cool factor going for it. finally, counting on mom and dad for a big fat trust fund, think again. a new survey, we talked about it, finds more than half of baby boomers would leave it to charity rather than to their own kids. any thoughtless here? >> if this keeps up, the kids will be charity cases and not mattering much. i don't know if you saw the survey. 37% said they have discussed their net worth with the kids. maybe if they find out, there's more pressure to be charitable. >> simon? >> i once worked on an idea at college where you have huge death duties at the end of the life and the state absorbs your wealth an you cut income taxes for people in the 30s and 40s and people build wealth much
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more rapidly and early knowing they have to lose it at the end and changing the dynamic. >> you can't take it with you. sue? stay tuned because coming up we're walking the tight rope. we'll talk about the week's stunt. they have an amazing deal to bring in younger residents. we're back in just a minute. [ donovan ] i hit a wall.
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all all right. let's get you up to date on the market. the dow side just kind of sitting there. stuck down 13 points for last few minutes or so. cautious trading. the fed looms large for the market and also a two-day meeting tuesday and wednesday. s&p up a fraction. less than a quarter of a percent. the nasdaq is actually up a full percent and where most of the strength is in today's trading session. ty? >> what the frac is up with this? nat gas on a tear up 20% in the last 3 sessions. look at that. tyler vernon, what do i make of it? what do i do? >> if you're in the money, making money, sell it. that is volatile type of
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