tv On the Money CNBC April 26, 2015 7:30pm-8:01pm EDT
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welcome to "on the money." i'm becky quick, a super woman telling everyone else to slow down, what arianna has learned about news and business and life. it's that time of year, great outdoors, meet the retailer ready to cash in on spring time fun. move over organic, there's an ugly food movement that wants you to look at produce in a whole new light. when should you borrow or pay cash? master of the dos and don't of debt, "on the money" starts right now. >> here's a look at what's making news, technology investors have reason to smile. the nasdaq hitting an all time
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high on thursday and closing the week even higher. milestone eclipses the previous high 15 years at the peak of the dotcom boom. apple, mike crow soft, google and amazon and facebook. it is up 22% over the past year. markets closed higher on friday. single family homes fell by 11%, that is the biggest percent drop since july of 2013 and comes after three straight months of gains. new home sales dropped the most in the northeast followed by the southern region. comcast is ending its $45 billion merger with time warner cable 14 months after it was announced. it comes amid antitrust concerns and growing opposition to the deal by federal regulators. the merger would have caused an unacceptable risk to competition and innovation. the apple watch has launched globally but can't get it at an apple store. if you pre-ordered online,
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shipments are arrive gs, only a few boutiques have them available in the store. she has transformed the news business and written 14 books and one of the foremost comment ators on politics today. arianna huffington will add one more success to her list, when the post turns 10 years old. thank you so much for being here. >> thank you, becky. >> you are somebody who saw what was happening in news before anybody else did, the huffington post transformed how we use media and how certainly media companies react. i wonder ten years into this, what do you think is the next stage for the media business? >> well, the big trend over the last ten years was moving us from just presenting the news or information to participation, to engagement and getting our viewers and readers involved, i think this is going to escalate over the next ten years.
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and also, every media company will have to be global because the conversation has become global. and yet, one thing that is so interesting to me, is that most of the solutions are -- we just launched this big initiative and media companies will do something similar called what's working it's refocusing not just on the problems and crisis and we'll continue covering relentlessly but also on solutions. >> you opened the doors where everybody has a voice. the controversy that has come from that, you have people who are basically contributing for free. you can make a profit while they are not. there are a lot of people who have no problem because you have so much content on the site. that is the way it's going to be in the future, this like open door policy? >> i think it's actually a combination. we're moving more and more towards hybrid. we have a very robust
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journalistic enterprise with 850 very well paid reporters, editors, engineers, running everything across the world. and we have a platform. now, platform is available for anyone who wants to use it if they want to use it and something of quality to say. it's not a free for all. and that is what is meant from universities and actors and directors and you occasionally blogging, but this is something that everybody is doing, "forbes" and launched around that principle of quality blogging. what people get is distribution and exposure. i'm here -- i'm not being paid but i'm here because you have a great platform and i want to get my message out. >> that is a very fluent point. people do like to have a megaphone that's why they come to your site. >> exactly. >> you're right. you just rereleased the new york
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times best seller thrive in paper back, you talk about this striking a balance of between their work life and private life. it's a really hard thing to do. you're able to do it right now and everything you say makes perfect sense to me but i still struggle when it comes to actually following up and doing it. i know what you're saying is right. >> well, there are 55 pages of scientific notes here that show that in fact, when we take care of ourselves like sleep enough, meditate or have some kind of renewal practice, we're going to be better at our jobs. there's been this collective delusion that burnout is the way to succeed and now the question is how do we get from nothing what's good for us to actually doing it. that's what i was telling just created this e course with oprah that people can check out on oprah.com/thrive. >> what was the defining moment
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that made you recognize in your own personal life that you had to make time for this? >> eight years ago i actually collapsed from burnout sleep deprivation and exhaustion. on my way down hit my head on my desk and broke my cheek bone. as i came to in a pool of bloody had to ask myself the question, is this what success looks like? while conventional definition i'm successful but if you're in a pool of blood and nobody has shot you, you're not successful. that's when i started looking at the new scientific findings that show that we've gotten it wrong. and this idea that that's the only way to succeed by burning out, it's just completely false. >> you are someone who people look to for political leanings, we have president slal elections shaping up. what do you think is going to be the primary focus through this entire election season?
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>> well, what the primary focus should be is different than what the primary focus is going to be. i think it should be all around what's happened to the middle class, you know, the stagnation that we're seeing. even those things are much better as you know, things are not where they need to be in terms of productivity and wages and in terms of investment in our infrastructure. and all of the things we need to be doing. i think that's where the focus should be. >> i want to thank you so much for joining us and congratulations on ten years coming up. it has been amazing to watch. >> thank you so much, becky. >> up next, we're "on the money", america's national parks turn 100, we'll meet the outdoor of the ceo partnering and donating to the national park service. later, don't hate it because it's not beautiful. a new movement wants you to love and eat ugly food. as we go to break, take a look how the stock market ended the week.
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big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern. for you and your brother?house ♪ ♪
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outdoor retailer outdoor retailer rei was a beneficiary of the cold snowy winter, revenue surged to $2.2 billion. it stands for recreational equipment inc., has a unique model, co-op with 5.5 million members. jer jerry stritzke, thanks for joining us today. >> thank you. >> let's talk about your cooperative model, it's different from most retailers, explain how it works. >> as a cooperative we're owned by our members.
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as a member owned organization we kind of define success differently. we take a long term perspective and really run our business to meet our membership objectives and for us that's predominantly about delivering a compelling outdoor experience. >> in terms of being a cooperative, i can become a member if i just pay $20. what does that get me? >> it really gives you a lifetime membership in the co-op. the important part of that you become part of a community that's focused on the outdoors. you know, in terms of participating in the co-op, an amazing location for gear. the profits go back to the membership. this year we gave 75% of the profits back to co-op members as a dividend. if you love the outdoors getting money back to buy more gear is amazing. >> the way it works, not everyone gets the same amount of a dividend. i get 10% on everything i purchased at full price at the end of the year in terms of a dividend check? >> it does vary somewhat
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depending how deeply discounted the product is. and but mostly that's just a calculation that we use to figure out how to really give the profits back to the membership. >> it's interesting, your same store sales were up by 4.2% over the last season. what you're talking about, this dividend and being part of a community is really interesting. do you think that's something that a publicly held company able to do or are you able to do it because you are privately held? >> i believe it is a function of being a co--op. we function with a longer time horizon. having been a leader of a publicly traded company for a long time i will say that the long term perspective and focusing on the best interest of the members is something i think all companies should do. but the co-op model creates a unique opportunity that is differentiated. >> you came here from both coach and victoria's secret before that. what's different about this type
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of model versus where you were before? >> those were both amazing companies. what's different about the co-op, we have the ability to find success differently. it's a longer term who oiz design, we think about our members and employees and about the outdoor community we're a part of. then we really hold ourselves accountable on what i would call the typical metrics that a business would look at. the thing i felt as a leader most personally is this idea we look on a long-term basis. we start the conversation, where do we want rei to be five years from now. >> where are you seeing the most growth and added sales in terms of different outdoor activities? >> we're seeing what we would call our heritage categoriecate camp and hike and trail, we've been involved in for 75 years are really strong right now.
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it's kind of a culmination, there's a real movement to urban environments, tighter space, more in that city environment. you combine that with a movement towards fitness, and i think those things and idea of getting outside really dove tail to make traditional outdoor activities compelling. >> does that mean climbing, rock wall climbing type of activities versus sales of tents or something. >> i would say climbing is done well but even more the hiking and trail running and tents and back packing have all done incredibly well this year. >> i know you're also partnering with the national park service, which is celebrating its 100th anniversary, what will your members get at the parks this year? >> one i would say is a natural thing to dorks the co-op started in 1938 around activities in mount rainier. we're investing a significant amount of resources in the
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infrastructure of national parks which we think is important. we're excited one of the things and people don't know, we have a very large outdoor education so we take people outdoors and do programs. we've launched 35 new programs to take people into the outdoors. what we're excited about with the national parks, particularly interested in getting people from urban areas that may not have a very diverse audience that may not get into the parks naturally. >> thank you so much for joining us today. >> you bet, thank you. >> up next, we're on the money, that less than perfect vegetable is still perfectly delicious or so they tell me. a new global movement wants to change your thinking about ugly food. later, it's the big d word, debt. find out when to take it out and when to pay it off. you can find us on facebook, facebook.com/otm.
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the natural the natural resources defense council found 40% of the food in the united states goes uneaten and 20% of all produce is wasted because it's not perfect in appearance. food and wine editor in chief dana cowin has launched love ugly food to get those numbers down. the numbers are stunning, 40% goes uneaten. >> all the way from the farmer
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who doesn't pick things up from the ground all the way to the person at home who tosses food they didn't use in the garbage. it's staggering. there are farmers who say in the tomato season at the height, 22,000 pounds every 40 minutes are tossed because they are imperfect, just in the way they look, not in the way they taste. >> there has to be a huge grade yags between not perfect and dinged up and bruised. i would guess there is stuff that the bugs have gotten to it, it's squishy and never makes it -- zpl that's true and those indeed should be taken out of the food system. we're talking about things that are just aesthetically not what we consider beautiful. so something that is slightly dinged or bent. if you have a bent zucchini you can't sell it. >> that doesn't sell? >> no. >> you say these things and go to the grocery store and don't see that many pieces of food
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that aren't perfect. >> the grocery stores are kpeeling and what do they compete on, beauty. that pile of oranges is gorgeous. >> it's true, i find myself drawn to the stores that have the most gorgeous looking produce. >> but we need to change that, we need to find the beauty on the inside not just the outside. >> how did you first become aware of it? >> i became aware of it because of chefs in copenhagen who took an ancient carrot that had been in the ground an entire year and turned it into a vintage carrot transformed by goat's butter and all of a sudden tchs delicious. then in france, there was a market called and they did a campaign called the inglorious fruits and vegetables and they sold the failed lemon, food made from the produce with the perfect ones and people couldn't tell the difference.
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a smoothy made with an upgly apple or beautiful apple, it tasted the same. a stew, the stew tasted the same. they proved to the consumer that ugly was good and cheaper. this is taken off all around the world but not in the u.s. which is one reason we need markets to pay attention. >> what's your goal with the campaign? >> my goal is to change people's perception so when they see a carrot that may look a little imperfect. >> a little roughed up. >> they can't say i can't use this, they say let me transform it before it goes bad. >> this one is not even that bad. if you just chopped off the end of it and maybe -- >> i would scrape it. >> scrape the end and be fine. >> all right. dana, it's good advice, i had no idea the numbers are that bad. thank you for joining us. >> thank you. >> up next, a look at the news for the week ahead and it takes money to make money but at what cost.
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earnings results are expected from apple, ups, visa, mastercard and exxon-mobil. on tuesday, the s&p shill erin dex will be released. on wednesday an advanced estimate of gross domestic product for the first quarter is due. elon musk will unveil the latest tesla products, a home battery and large utility scale battery. on friday we'll get new car sales for april. overall americans household debt has been on the decline since the peak of the financial crisis but it's still totalled nearly $12 trillion at the end of last year. that is a huge bill. however, when it comes to your money and future, not all debt is created equal. joining us right now is sharon epperson on the difference between the good and bad when it comes to debt. >> the thing to think about with good debt, that is something
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that will improve your life in some way, thinking about going back to school or getting college degree, student loans, buying a new home, mortgage, that's good debt. but debt that's going to stay with you, make your poor, keep recurring and all of that, that is considered bad debt and that's like credit cards and things like that. >> that's a big difference between some of these things and maybe you should think of it from an instant gratification, if it's something i want right now. >> that's the best way to think about it. i'm enriching my life because i really need these shoes but that's probably not true. but when it comes to getting that college education, that is something you really need. if you want to make sure you return on investment is going to be strong here, you don't want to burden yourself with too much debt and same with buying a home, you don't want to buy it more than you can afford. when you need to take out a loan to have these things and life improvements, that's good debt. >> are there other kinds of debt out there too? >> what i really like is the value of debt and retirement. it looks at something called enriching debt.
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that's when you have a mortgage and thinking, do i pay this off or do i now use that money to invest in my retirement or retirement account? you have to look where the money is going and how much interest are you paying on that debt. how much interest could you get if you put the money to work elsewhere, perhaps in financial markets. some people need to think about there may be some ways to have some type of almost enriching debt when the interest rate on that debt is lower than the return that you could get the money elsewhere. >> which is a great point given where interest rates are today. i would think you have to think about tax implications, if you pay off your mortgage, you no longer get that tax advantage. >> returns and taxes, a great way to think about it, absolutely. if you're watching this and have debt, where should you go about starting, trying to get out or figure out what you have right now? >> the first thing you need to do don't hide from it. don't hang up with the creditor calls. face facts what you need to owe and figure out what the highest interest rate is and pay that down first. that's probably gg to be a
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credit card. 14%, you want to whittle that down as fast as possible and talk to a non-profit credit counselor and figure out if you have the right plan in place and it is a great place to go. >> sharon, thank you so much. >> that's the show for today, i'm becky quick, thank you for joining us, next week we'll be in omaha where they mark the 50th year that warren buffett has been at the helm of the company. have a great one and we'll see you next weekend. drivers to your marks... go! it's chaos out there. but the m-class es in your blind spot... pulls you back into your lane... even brakes all by itself.
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>> the following is a cnbc prime original. >> it is both legal and lethal. seven pounds of metal and plastic... that fire a bullet at roughly 3,000 feet per second. it's called the ar-15. [ shell casing clinks ] to some, it is a brilliant piece of engineering, a modern sporting rifle, and a symbol of one of america's most basic freedoms. >> thank god for america! >> all: pass the law! >> to others, the ar-15 is an obscenity, an assault weapon with no justifiable place in civilian hands. >> you don't need an ar-15. yo
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