tv Power Lunch CNBC March 11, 2013 1:00pm-2:00pm EDT
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t for use in women or anyone younger than 18. axiron can transfer to others through direct contact. women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these signs and symptoms to your doctor if they occur. tell your doctor about all medical conditions and medications. do not use if you have prostate or breast cancer. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet, or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. see your doctor, and for a 30-day free trial, go to axiron.com. otherworldly things. but there are some things i've never seen before. this ge jet engine can understand 5,000 data samples per second.
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which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪ >> we >> we asked you to weigh in on our urban outfitters debate. simon is going to go first in the final straits. >> i would continue. >> virtual doctor, what have you got? >> freeport, fcx.
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buy on that one. >> it is a good thing. blackstone, moving higher. >> oi, big luxury. >> have a great day. we'll see you tomorrow. halftime is over. power lunch and the second half of the trading day starts right now. >> good afternoon, everybody. two major american businesses. two major american brands, and two of the most iconic logos of all teaming up this hour. the nfl and general electric. >> and is this company a force to be reckoned with once again? we will explain that. and anyone on a pension or soon to be receiving one better pay attention. your money may be on thin ice and the people who back it up may not be in a position to
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help. pensions at chrisk. but first, downtown. >> thanks very much. i'm looking forward to the pension plan. but first we're looking at the dough hitting a brand new all time high today. rilt now we're up 38 points. s&p 500 not to be left out. also closing in on record territory, it's at the highest intraday levels since october of 2007. now up just about three points. the number to beat is 1576 on an interday basis for an all-time closing high, 1565. a post of big names hitting all-time highs today. on the list, johnson & johnson, disney, 3m and craft foots. >> and two of the biggest best
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known businesses in the united states. general electric and nfl teaming up to try and make football safer. there is no bigger name in the business of sports than the nfl. the league brings in revenue of $10 billion a year. but the golden goose of cash under attack from lawsuits by players saying the league concealed the long term risk of concussions. we are live where that partnership is being announced at this hour. >> the country's biggest industrial company and the largest professional sports league teaming up about concussions. ge and the nfl donating $40 million for a research project aimed at improving monitoring technology. the second initiative could
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award up to $20 million to firms with identities to better protect against concussions. now the first initiative plays to ge's strength and will beover seen by ten individuals, including nine doctors. not only in sports injuries but also brain injuries sustained by members of the military. for the nfl, this is part of an about face that began back in 2009. the nfl denied the link between repeated concussions and chronic diseases like dementia and depression. lawsuits are alleging negligence by the league because it failed to warn players of those risks. since then the nfl has made changes to the game and how players with head injuries are assessed. >> does football need to make safety changes and what do the
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players want? we're taking the conversation further now through a couple of former gridiron greats. >> now power lunch welcomes number 66. a former starting center for the notre dame fighting irish. a man who has been in the midst of gridiron warfare. attending three bowl games in the 1990s. jeff killer killburg. then there is pete of fast money fame. he hit for the golden gophers of the university of minnesota, the tampa bay buccaneers and then the minnesota vikings. he's a 6'2", 235 pound former line backer. >> and one of the forces of nfl films, mr. birdsaw. pete is expected to join us in just a moment. jeff, i got to ask you, how many
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concussions did you have during your football career? >> i only had two documented. all jokes aside, this is a pertinent topic and i'm happy to see that they are addressing this. athletes are getting bigger and stronger and the collisions are getting much more severe. >> there are critics who say, jeff, that in trying to make the game safer, commissioner goodell is at risk of making the game more boring. do you agree with that? >> well, that is the conversation out there. but from a former athlete perspective, i disagree. i think there is still an electric pizazz to football. i don't think you're going to lose that game with a safer helmet. they will look the same, maybe shinier. but the fans will get that delivered to them in the proper manner. >> jeff, one of the issues is compliance. i think it's fantastic what ge and the nfl are doing but it's a
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brutal sport. even if you have different technologies at work and different equipment, you still have to have compliance from the players, don't you? and how easy is it going to be to get them to hit more correctly and not hit as hard? >> i think compliance is a very important factor. football is a brutal sport. if you don't want to play football, there's soccer. football is america's sport and there will continue to be excellent games out there. they will find the technology to reduce the impact to the brain. i played with nearly 25 team nates that went on to play in the nfl and many of them suffered severe concussions. i have two little boys so i worry about the effects of concussions. >> would you let them play football? >> yes, i will. we will play some flag football initially. i think they are really reducing a lot of the impacts on kick off. maybe it's boring because you
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don't get hester to run back like he used to, but it's important to dial it back a little bit to protect the game and more importantly protect the players. >> pete, let me ask you first, how many concussions do you think you had during your playing career, college, pro, high school and so forth. have they affected you in any measurable way? how sympathetic are you to the idea of the player lawsuit taking on the nfl? the players say the nfl not only down played the long term risk of the concussions but actually actively concealed the risks. they knew more than they were letting on. >> i until we get that to the courts, i don't know that we will know the answer. dozens would be my accurate answer. somewhere in the dozens. how many were diagnosed? very, very few. the problem with football is the
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diagnosis program. that's why i think this is an absolutely outstanding idea. they're going to work on everything to analyze some of the helmet technology. and i heard them talk about hitting. how do you cause guys not to hit as hard. you can't do that, sue, but you can make sure that the head injuries are curtailed somewhat by how guys are hitting. you can't pull back but where you hit somebody is something that has been addressed. guys were going after the head quite a bit before. you're not seeing that to the same degree any more. >> i think that's a very interesting point. mary, let's bring you into the conversation. one of the things that i thought was very interesting and impress ive is they will use independent neurological consultants. one of the complaints was that the neurologists on staff were
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c complying with what the league wants them to do. i found it encouraging. >> and that's something that the players' association has pushed for and the players themselves. now there is an ipad app that goes through the different steps to analyze whether a player is capable of going back into the game. this could turn into a costly issue for the nfl as well. there is an important argument that would allow some of the players' families to pursue this in court. the nfl has blocked that. if that happens this could be a multibillion dollar legal problem for the nfl. they want to start developing ways to prevent it or at least mitigate some of the risks that are involved with playing. football, not only again on the professional level but college and high school level as well. >> pete, you said you began the
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conversation by saying you probably had dozens of diagnosed concussions. would you let a child of yours play full contact football? >> i absolutely would and jeff brought this up. he and i have talked about this. my son plays flag football. when he gets to the high school level and he has proper coaching and you have to get to those levels that you get the fundamentals, how to hold your head, how to move your body in specific ways. right now you're learning all the different skill sets that you need at the flag level. once you put the helmets on, that's a completely different ball game. you have the guidance of folks that have kree decredentials be them. >> pete gave more concussions than he received. he gave a lot. >> all right folks, thank you very much. very interesting conversation.
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it's obviously a top of my mind right now. commissioner goodell saying what does he worry about most. so is the league doing enough to keep players safe? why don't you vote at finance.yahoo.com. there are your options. sue? >> well, as you know, ge is also making moves off of the football field. the ceo releasing his letter to shareholders and in it he slams regulation. saying the explosion of new regulations on the business and the unprecedented level of uncertainty will keep the u.s. from a i chiefing its full growth potential. despite that, ge plans to return $18 billion to investors this year through the process of dividends and buy backs. shares down just under 1% at $23.58. lowering the rate from neutral
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to buy. it is said that ge has delivered a lot in the past couple years. ge up 23% in the past one-year period and up 12% so far this year. >> bed bath and beyond moving higher by a $1.53. this after an article over the weekend saying shares could rise 25% over the next year on strong profits but could get a 43% premium in any possible acquisition. the retailer is not looking to sell itself, a buyer might pay as much as $85 a share. also positive on the financial firm genworth. the outlook is improving after internal restructuring.
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genworth now up almost 7%. >> and a weak economic outlook over china weighing on the trade. annual industrial production rose 9.9% in january and february. sounds great but that is the lowest level since 2012. and another worries and sign up there as well. inflation, china's consumer price index rising from a year ago. that's a 10-month high. as for the dollar yen and juan trading. speaking of currency, the green back hitting a new high. the dollar also with a three-month high against the
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year ro euro. it is thought that the fed will begin scaling back its stimulus and that might boost demand for the u.s. dollar. ty? >> new developments in the battle over dell's plan to go after an activist who took a stake in the pc giant now striking a deal that will let him look at dell's books. let's look at shares of dell as this drama unfolds. there you see them. our tech correspondent is live in san jose with more on what it means for dell, icon and shareholders. john? >> reporter: just today, icon enterprises released a brief statement saying give i con a look at dell's books. it gives icon more ammunition. they will not be able to use that information pubically. to recap, dell said its founder
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planned to take the company private for $13.65 a share. he said he was pushing for the company to stay public and borrowed to pay out a dividend of nine bucks a share. what's next? march 22 is the deadline. it doesn't look likely. i have been looking at dell's books but why not. free peak at competitor's secrets. investors are in a tricky spot. if this battle goes on too long and dell's underlying business suffers, things could get a lot worse. >> all right. we thank you for that. and courtney reagan for a market flash. >> let's take a look at shares
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of a company releasing earnings. shares are actually falling off sharply. the street is a little disappointed with what they are seeing. >> they are having a real good time on the floor. airline stocks are flying high and so are the profits. what's fuelling those gains? >> a strange new day for the airlines. it used to be that the first quarter is when they lost money. this year they could make a profit. we will explain why when we return. with fidelity's new options platform, we've completely integrated every step of the process, making it easier to try filters and strategies...
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>> >> shares at dick's sporting goods taking a big hit this morning. the retailer reporting weaker than expected fourth quarter earnings. the company misjudged demand for cold weather merchandise due to mild temperatures early in the season. then it had cut stocks of winter gear by january. it forecast weaker than expected earnings for all of 2013. >> sue, are our leaders finally rising above to solve the nation's debt threat? optimism may be rising over a potential deal. john harwood here with potential news. >> reporter: this is the week
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that they return to regular order on capitol hill. the normal budget process. tomorrow, paul ryan, the chairman of the house budget committee will put out his budge which will balance the budget in ten years, including the repeal of obamacare. and later in the week, patty murray will come out with hers which reduces the deficit, will not eliminate the deficit, will protect obamacare and the medicaid program serving the poor. the job of trying to bridge those differences will be taken up by president obama, among others. and he talked about what his approach was going to be. >> our focus now, as the president has said, is on working with congress in regular
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order on the budget process. and through that process, hopefully produce a bipartisan agreement on deficit reduction, balanced deficit reduction that couples entitlement reform. >> the way that would work is that you would have the budget sequester, if this is successful, replaced by entitlement cuts. and a tax reform process that would produce some revenue that, in theory, would meet democrat's desire for additional revenue. and the president will continue to try to make that happen. he will see both the house and senate caucuses and we will see soon whether or not he can bridge the gap and make a deal. it's failed so far. >> there are a lot of fingers crossed certainly down here. john harwood, thank you very much. and we want to let you know that tomorrow night exclusively on
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the kudlow report, represent paul ryan will join larry talking about those very issues that john just outlined for us. >> the stocks have been flying high with the airline index up 45%, 20% so far this year alone. what is fuelling the red hot sector? phil lebeau knows. >> really have not seen a lot of storms that have hit the bottom line. then you look at passenger revenue and it continues to go up. it has been posting positive numbers in the month of january and february. airline passenger numbers up in large part because ancillary fees continue to bring in plenty of money for the airlines. the airlines brought in $36 billion in things like baggage fee fees, where you are sitting,
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when you board. they have also been able to keep their fares relatively in check. we have not seen a lot of fare sales. are the airlines jacking up the fares? they haven't been able to. you will see that the average air fare here in the united states, while it has gone up slightly, it has not been huge. delta, wow. look at that return over the last six months, up 76%. when you compare alaska versus the dow, no comparison at all. til tylor, analysts are expecting a posted profit. >> phil, a quick follow up. fares may not have gone up very
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much but fees have. >> and that's where they're making their money. and that's the different between some carriers making and others losing money. >> all right. thanks very much. monday is analyst time. they are looking at citi and best buy and yahoo!. today we grade the graders after this. [ male announcer ] the lexus command performance
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welcome back to welcome back to "power lunch." take a look at the vix. it measures volatility. we dipped below the first time since april 20, 2007. it also hit a high back in october of 2008. my, what a long way we have come. sue? >> indeed you're right. the tax season not helping intuit. making one of the biggest decliners in the s&p 500. the shares have risen 17% since late november. right now intuit is down to $66.57. >> time to analyze.
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jeff killborn joins us. ubs says we expect an increased outlook. and improving efficiency. that's a mouthful. man. that's a lot of words. jeff, what do you think? stock up 37% over the last year. you like it? >> it is a lot of words. they are the best capitalize bank right now but the space as a whole has gone too far too fast. look up nearly 40%. i really think you can get this in and get in a better price. disagree. >> let's move on to best buy. piper jaffray price target from 26 to 16. which, could cause a significant
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upward reevaluation of shares to on top of an impressive run. best buy? >> up 70%? what do you think? >> let's not hurt our arms patting ourselves on the back but we did talk about best buy when it was trading at $12 month ace s ago. i do like best buy as they duke it out with amazon but right now i don't think it's investable so stay away. >> and yahoo! it increased its price target there in recognition of the rising market value of yahoo!'s stake in yahoo! japan. what do you think of yahoo!? >> i like it more. women power here. you're seeing marissa come in and take the bull by the horns. i know yahoo! has been flailing for years and i think she is making a big change.
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get in here. there is a lot more room to run in the upside. >> thanks very much. she is can kk whatever it is. kkr capital. sue? >> he's killer. let's go to the gold market. we are tracking the action. hi, jackie. >> good afternoon. we're watching gold prices today and they managed to struggle but hold on to some gains as we head into the close. the stronger dollar keeping the gains in check dpr the day. the downgrade of the italian debt caused us some safe haven appetite for gold. but analysts expecting a tight range in the next few days. from a technical perspective, peter hug saying that gold would have to close over 16.02 to create upside momentum.
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>> straight ahead. why you need to keep an eye on your pension like never before. the people that are backing it up are in trouble. he did great things in the market. and we're talking dividend players. more power up in 2. your chance to rise and shine. with centurylink as your trusted technology partner, you can do just that. with our visionary cloud infrastructure, global broadband network and custom communications solutions, your business is more reliable - secure - agile. and with responsive, dedicated support, we help you shine every day of the week.
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. >> welcome back to . >> welcome back to "power lunch". we're up 43 points. we have some perspective. steady as she goes? >> very steady. this is the rodney danger field of the market. it doesn't get any respect. we now have the dough and the s&p on track to both be up seven days in a row. we continue to break that down. in fact, even as the dough grinds higher, we have four dou dow components at historic highs. everyone continues to doubt this market. take a look at all of these sector etfs that are at historic
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highs. even the defense. some traders saying that it shows complacency in the market. we have the budget impasse looking at the end of the month and the sequester set to start making an impact in april, people still don't think it's going to happen. >> thank you so much. let's go back to the nasdaq. we are tracking some of the dividend yield players. >> the tech sector has almost been more about growth than dividend but soon that could be changing. technology companies are leading dividend growth in the united states. tech company dividends have increased over 175% since november of 2007. this has been the fastest growth in any sector. tech names, apple tops the list, al gaiting $9.9 billion,
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followed by microsoft and intel. all of these names along with qualcomm and and oracle are sti top of the list. higher dividend could be in the cards. back over to you. >> thank you very much. it's been a long time coming. we're talking about the blackberry z10. the touch screen smart phone is going on sale in the u.s. today. att will begin selling tomorrow. blackberry has said that sales have been outpacing their expectations around the world. the stock is currently up almost 11%. a big mover at $14.48. over to the bond market, rick is tracking the action after a week that saw yields back up. how are we doing this week? >> yields are up a bit.
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we're up a couple of basis points on friday to 206. it could be a new close. what is getting a little attention, see, is if you compare ten year rates to boon rate. show this three-year chart and you can see it has been several years since we approached the 54, 55 basis point difference. europe's woes are given flight to safety. bids a little more solid than here. and some of the data of late is pushing our yields up obviously. if we look at something more esoter esoteric, when you look at the corporate grade, it's basically continued to move down, about ready to breakthrough the lowest levels since august. hyg's best level since early february. last chart real quickly, we're
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approaching close to four-year highs against the end. this is a big chart to pay attention to. >> it really is. everyone has been watching that one. rick, thank you very much. it's the end of an era at sony. harold stringer will step down as chairman. he will officially leave in june. it was? june of 2005 that howard took over the chairmanship and ceo position. that is when the ground was beginning to lose ground to apple and samsung. it recorded its biggest lost in history last year. the stock has lost more than half of its value. back to you. >> headline time now. barnes and noble moving higher after forbes speculated it could be taken over by amazon.com.
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purchasing the nook would make amazon the leader in the -- i may sneeze here in a minute and i apologize if i do. >> general electric moving lower. the ceo in an annual letter saying political uncertainty in the u.s. is preventing companies from increasing their capital spending budget. >> and oak tree's howard marks is called wall street's favorite guru. aside from returns, 80 billion returns, marx has also made a killing buying and selling homes. he sold his malibu mansion on 10 acres for $75 million. doesn't that look nice? originally bought the estate for
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$31 million in 2002. the billionaire scooped up a 30 room apartment in manhattan. the ink is barely dry on that one but he could flip it for a profit. 740 park avenue, one of the most prestigious addresses in the world. >> it sure is beautiful. america's pension system may be on the shakeyest ground it has ever been on before. find out why and what happens for you, next. revolutionizing an industry can be a tough act to follow, but at xerox we've embraced a new role. working behind the scenes to provide companies with services... like helping hr departments manage benefits and pensions
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>> welcome back, everybody. more than 10 million workers and retirees could soon see benefits reduced to pennies. the government accountability office has put the spotlight on multiemployer pension plans. gaps have grown for the 107 surveyed plans, mainly because of low interest rates. the pension funds can't make as much money as they had projected. and federal protection is struggling. the pension benefit guarantee program established by congress is facing a severe shortfall. premium premiums.
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>> unfortunately the worst case scenario is that those who are due money under pension plans would not receive that money. traditionally, by law, those that have accrued benefits under pension plans are owed that money regardless of what a company does. >> and there is the target. $1.8 billion in assets. $7 billion in potential liabilities. this affects all sectors which will propose solutions to this gap beginning march 28. >> thank you. fighting back against cyber hacking. it's called dex, defense enhanced cyber security. we have more for us. hi, amen. >> in the wake of the president's executive order on cyber hacking, u.s. intelligence and more are cooperating in ways that was not possible before.
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this is called the enhanced cyber security plans or ecs. it builds on existing protections for the defense sector and defense contractors. what is now being allowed is other companies involved in critical infrastructure are allowed to participate in it. many are already participating in the program. those carriers sell enhanced security protections to u.s. companies. the new program was authorized in december. it protects infrastructure and now companies are eligible to sign up for it. telecom companies are going to be able to provide these services and make money off of new customers coming in looking for the new security. >> appreciate it. markets hovering near highs especially in the s&p right now. coming up next we will talk about those that are rich.
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are they giving back enough? hey, robert. >> bill gates, warn buffet, and a few others are not happy with others in the upper .0001%. why aren't they giving more? the answers coming up next. >> and we are following disney's new yellow brick road. is their big bet on oz paying off? >> how hard can it be?
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contested and deeply personal area to talk about. if you do get yelled at, that is par for the course. >> a lot of people say when interest rates go up the stock market run is done. is that true historically? we have charts and graphs to show you what stocks have done recently. >> and something that i am excited about. lots of leaks coming out about the samsung galaxy s4. it could potentially be an iphone killer. all of those things coming up on "street signs". >> thank you so much. pre appreciate it. disney's bet on oz is apparently paying off. >> the royal treasure of oz. it belongs to you. but only after you defeat the wicked witch. >> just hwicked is she? >> the prequell to the 1939 classic clicked with movie gogo,
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making it the first block buster of the year. the updated film starring james franko, plus mila and michelle as a trio of witches. and there is also a talk of an oz sequel. expect to see emerald green nail polish this spring from corporate partners plus a munchkin starbucks latte. this was just the shot in the arm that disney needed after the john carter flop. it took just $30 million opening weekend. >> what's next for disney? more prequells due out this june. the easiest and safest path for
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profits. >> shares up over the last year. today up about a third of a%. the ceo of disney will be on closing bell tomorrow right here on cnbc. >> all right. when it comes to fiphilanthropy the wealthy give a lot but not as much as you might think. >> how much is enough when it comes to charity? american millionaires give away about 1% of their wealth and about 2 to 3% of their incomes. buffet and bill gates have a solution. their hope is that our larger population ends up giving a larger proportion of their income. but a new study points to other possibility solutions. when asked why don't they give more, almost half said they're worried about having enough money to fulfill their family
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lifestyle and their kids. the second reason was markets. if markets could do better, they say, they would give more. and the third, this is the big surprising one. it's finding a cause. a third of them say they haven't given more because they haven't found a cause that they're truly passionate about. the heart may matter as much as the wallet when it comes to charity. >> robert frank reporting. sue? >> the new book, "lean in" showcases her views on the women and the workplace. she appeared on "60 minutes" last night and began with a statement. >> a very blunt truth is that women still run the world. >> what about the women's revolution? >> i think we're stalled. and i think we need to acknowledge that we're stalled so that we can change it. >> are you trying to reignite
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the revolution? >> i think so. >> it is power run down time. they are set and ready. ladies, we're going to jump off with the statement last night that men still run the world do you think there is still a glass ceiling in place for women in the workplace? jane? >> you know, good for her. good for the women who fought the good fight. i just cannot get worked up about this in business. yes, in some cases there is a glass ceiling. i'm focusing on jane. in my work, most of my bosses have been men. sure maybe i have been held back sometimes because i'm female, or maybe because there was someone better. i cannot have a cow about this. >> sicindy? >> i think women can't say there is a glass krooceiling. there is more work to be done.
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facebook stock is still down from the ipo. >> work on that. >> i'm still not clear on the revenue model. i don't need her starting a revolution, but i need her setting a better example. when she triples the revenue, that's the revolution i want to join. >> i think the glass ceiling is in tact in certain industries and much less in others, keeping in mind that we have several high profile executives at nbc that are females. >> how do women walk the narrow line between being aggressive and too aggressive? conservative investor. but that doesn't mean i don't want to make money. i love making money. i try to be smart with my investments. i also try to keep my costs down. what's your plan? ishares. low cost and tax efficient. find out why nine out of ten large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes
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>> >> this is deeply personal for me. i want every little girl to be told that you have leadership skills instead of you're bossy. >> how assertive should women be without being called bossy or worse? >> i think this is a really great point. all together too often, a lot of women approach a job as like dating. should i call in maybe i shouldn't call again. should i ask for a raise. i don't want to seem pushy. that's a really good point. this isn't a date. you're not here to makefriends. you're here to do the best you can in your career and your company. i definitely think -- i haven't been accused of being not
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aggressive enough but a lot of women could be. >> be aggressive, b-e aggressive. just do a good job and treat people fairly. >> and the always present guilt trip of women who have families. the best way of having a family and a career. can you really have it both? this is way too complicated. sometimes i feel guilty at work and sometimes i feel governmeui home. >> i have what i call the death bed dilemma solver. if you have a hot work assignment you need or a hot child assignment you want to be at. which one on your death bed would you want to say you went to? that's what always solves it for me. >> that is a really good point. we have way too much guilt and that's a great revolution to start the low guilt.
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