tv On the Money CNBC March 23, 2014 7:30pm-8:01pm EDT
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here is a look at what is making news. fed chair janet yellin speaks, for the first time since she became chair. yellin said the fed would slow down by another $10 billion and would stop using 6.5% as an unemployment rate target. there will be a considerable period after it ends before it will be appropriate before it will begin to raise rates. the markets didn't like that comment about timing.
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the dow falling triple digits on wednesday. these tests determine whether the banks can withstand the economic down turn. and share buybacks. few companies reporting earnings this week. fedex missed and blamed bad weather. the markets didn't like what janet yellin had to say this week. joins us right now barry napp
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it is good news that the fed feels confident that the economy is going to improve. my concern is that the fed is going to be wrong. his friend s there start hikin in 2015. >> that brings us back to the point of where the economy stands right now. where is your sense of what is happening. i think the economy is in good shape. the issue we thought was uncertainty about public policy and what was going on in washington? that slowed investment and hiring. that has gotten substantially better.
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let's talk about the other factors. it looked like we cared for about a day. is that something that either of you think could come back and pressure stocks from here? >> if putin doesn't stop with crimes. then the european recovery is in trouble. the chinese economy has clearly slowed and the market is sensitive. it seems like. >> so my perspective on that is that. we did a macro survey recently with my clients and the vast majority think that the deflation is a bigger risk than the inflation.
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and will dampen the enthusiasm for a time. is this a good sign or does it start to worry you? >> overall it is a good sign. that there is liquidity in the market. that is what the stock is supposed to be about. so they can go out and expand and hire more people. some of the deals that are coming out have been frothy. that was 1999 and you don't want
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to make those comparisons. do you think this woucould be a year where we tread water for a bit? i would not be committing new dollars today. concerns and a rice se in inter rates,ed f eed fed normalising policies has never been the end of the economic bull market. it is merely a pause, a pause that refreshes i suppose to use a cliche. and i would commend it on that pull back.
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when we come back, who is watching your car? gm and toyota, they were uncovered by the public. and later, you know you have been there, travel trouble. we are talking about the worst and the best airports in america. as we head to a break right now look at the market as we head into the week. [ male announcer ] the founder of mercedes-benz once wrote something on a sheet of paper and placed it in his factory for all to see. ♪ four simple words where the meaning has never been lost. the challenge always accepted. and the calling forever answered. ♪ introducing the all-new 2014 s-class.
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to cover up and being imposed a fine. >> and the former head of the national highway traffic safety administration. thank you both for being here today. i would like to start talking about this. the justice department is very clear. mary barra is scheduled to testify before congress. it is a problem. also it is going to be a huge drain on senior management time for a long time. these things get worse before they get better. it is not going to be a problem for gm to handle whatever fines and penalties and lawsuits.
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this is going to be a significant issue for a while. >> joan, you have criticized the national highway traffic situation. why do you think the agency didn't demand a recall? >> i think they have a culture problem like general motors does. they never asked general motors for enough information according to them. in my view they had more than enough information when a team looked at one crash in wisconsin and determined that the ignition was in the accessory position meaning you can run the radio and not the car. and the airbags didn't inflate. the system in the car wasn't working. but they identified why. the agency had this. they talked to general motors about it and then it went into a deep, dark, hole.
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i completely disagree with that. >> do you think this is a wake-up call for the agency? >> it should be. when the fort fidfire stone cau passed in 2000, it put additional requirements to report to the agency. one of the issues here is that they keep everything secret. they are very, very secretive beyond what is to be disclosed by the freedom of information act. and it seems like every time we turn around there is another recall that has come. should consumers be concerned about quality? >> cars are safer than they have been. some have up to ten airbags per car. you have collapsible steering wheel columns and so, safety equipment is very common.
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quality scores are way up. but none the less there are defects. honda just had a big recall of mini vans because of potential engine fires. so look, anything that is complex and made in this volume you are going to have recalls. it is hard to say that cars are not safe. >> joan, what do you think? >> they are safer and the reason is because the government has issued motor vehicle safety standards. they crash test the cars in the government and that information is public. the companies are sensitive about it. they make an effort to exceed the requirements of these crash tests.
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toyota sales took a hit. do you think gm will be able to rb as easily. ? i think it will come back. it is a good question whether it will come back easily. until toyota had that problem. that huge recall. they had a sterling reputation for safety and for reliability and that sort of thing. general motors is coming into this with more baggage over the years. and you know the unfortunate thing about this from the company's standpoint, mostly from the victims and the families, they have gotten the government out of their owner stip structure. their first ceo in history and talking about a grabrand new st and all of this echos and evokes memory ares of the bad old gm
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york's airport in the news. part of a growing list of concerns for the airline industry as the fliers try to navigate weather. sara thank you so much for being here. all in all, is this a good time to be an airline from the business perspective for that. airlines have seen an increase in revenue. especially because of the baggage fees. we're not seeing them go away anytime soon. we were saying this is a good time to buy airline stocks. if you are a consumer and you are traveling on an airline these days, what is that like? >> what we saw is that it is not
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great news for travellers. there is an uptick for frustration. there were more delays in january than december. so, consumers suffered through that. there is additional complaints but airlines are doing interesting things to connect with their travelers. social media are ways that they are helping to alleviate some of the stresses. if you are sitting online, and you tweet something about the airline they will get back to you and respond? one of the airlines that were called out as having a negative experience was jet blue. they have seen a halo effect of loyalty. people are being hit with delays of increased baggage fees. you won't see people bringing the huge bags.
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>> i'm in favor of pushing that. just check the bags. big news is delta, they have changed their frequent flier miles. this is interesting. it is an advantage for big travelers who will be paying their high prized fairs. but it is a disadvantage where they make you fly to houston before you fly bag to omaha. >> that is true and it is something that beare watching. there is a question about whether airlines will follow suit. >> they asked them about the best and worst airports what did you find? >> we found that the best are those that are bringing local food into the airport experience. swift check ins, tsa precheck two of the best are portland and
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austin. these are destinations that are culinary airports. >> some of the worst, laguardia. bill and hillary clinton national airport. it was under construction. montana. >> thank you so much for joining us. up next a look at the news this week and from wedding bells to rocking chairs we can tell you how to save big on your tax bill at every stage of your life.
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for more on our show and our guests you can go to our website. here are the stories that will impact your money this week. these companies will be reporting earnings results. on monday president obama will be visiting the netherlands. tuesday the s&p case shiller index is due. and on thursday the final read for 4th quarter will be relea d released. on thursday microsoft ceo will be holding his first press conference. if you have made significant changes in your life, that could
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impact your tax bill. >> sharon, thank you for being here today. why don't we start off with people who are newly engaged or newly married. >> well intoly m ll lly newly m couples need to figure out which way to file. jui usually if they are two working together they may want to file married filing jointly. if you are single claim the standard deduction. and perhap s itemize the deductions. >> let's talk about parents you get $3900 for that child not bad
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at all and then their phase out limits for certain credits. that is $1,000 for tax credit for 16 or under and depend ent care credit. and basically you need to be keeping good records all year long. >> i'm still going back that the summer camps that i have all of that tax information because it can be a big savings. >> what about those who are nearing retirement. >> you want to make sure you take advantage for traditional ira. you can still contribute up to $6500 if you are 50 or older. some may make sense if you don't want taxes taken out it will be
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tax free after 59.5. for seniors it is important to know the lower threshold still applies to you. for everyone else this year it is 10%. >> good things to think about. april 15th is coming up quickly. that is our show for today. i'm becky quick. next week lewill be joined by the former white house special adviser on health care. each week keep it here. we are on the money. i'll see you next weekend.
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>> tonight on the profit... i go inside worldwide trailers, a custom trailer manufacturer in tampa, florida. and so is this essentially a commercial kitchen? >> yep. >> that's your serving area. >> co-owners struggle to work together after their nasty breakup. >> you're a pathological liar, is the way i look at it. >> i can't work with you. >> i have my work cut out for me. for me, it's all about business. >> none of it would've-- should've been anything except for business. >> i need to put the controls in place... my name isn't going on this if it looks like this. there's no way. >> we do track our money. >> but no, you don't track your money. and make sure these bitter rivals can work together. >> yeah, you got that right! >> my name is marcus lemonis, and i fix failing businesses. i don't know how you run your
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