in today's cover story, a new blackberry is coming onto the market, but not until after christmas. is the company out of touch with customers? stopping corrpution in its tracks. a former dea agent with the backstory on why banks turn a blind eye on laundering money from drug lords. plus, financial stocks could get a lift by the end of the year as prices at the pump tumble. first business starts now.

you're watching first business: financial news, analysis, and today's investment ideas. good morning. it's tuesday, novmber 13th. i'm angela miles. in today's first look: earnings from home depot could be a big key to market action today. until then, a holding pattern: stocks and commodities are sticking close to the flat line on concerns about the so- called fiscal cliff. some economists believe the economy could gain strength if lawmakers can reach a deal sooner rather than later. bloomberg news reports google is being pressured by the ftc to resovle anti-trust issues or face a lawsuit in the next few days. google is accused of abusing its dominance in the internet world. and wednesday is the next lock- up expiration on facebook, allowing employees to sell their shares of fb. good morning to larry shover of sfg alternatives. good to have you on the show larry. there seems to be a shift in the market. everybody is so fixated

on this fiscal cliff. is the market going to be rather lackluster for a couple of days here because of that? > > i think it is. i think people are really concerned about something they should be concerned with. but the fact is, something will break. they will reach some sort of compromise. it might not be something that everybody likes, but i think the market will end up liking it, because there will be stability, there will be a compromise, at least by the end of the year. > > oil is big in this country. apparently we are going to overtake saudi arabia by 2017. so what do you anticipate from the oil trade going forward? > > right now i think the oil traders are bearish on oil. not overly surprised, but maybe not because we're going to become a big exporter, but really because where we are in the business cycle, we don't need to have oil at $85 a barrel. it's a lot better than being over $100 a barrel where it was a few months ago, but the fact is, we are just in a very, very small spot in our business cycle. oil

basically needs to be a little bit lower than where we are in the cycle right now. > > moving you over to stocks and financials. what are you looking for there? breakout or break down? > > i think for the next year i really like the etf xlf, the financial sector, largely because the housing sector is getting better, and i think banks and mortgage companies will benefit from that. also, we are seeing some more capital spending. so all those things are a good tailwind for the financials. > > thanks larry. have a good day. > > thank you. just in time for a month after the holidays, research in motion plans to introduce a new line of blackberry smartphones. the stock rose above nine dollars on the news. analysts call it an ill-timed "hail mary," but they also concede that among fickel smartphone consumers, one big hit, no matter when it happens, is all rim may need. one of the smartphone's earliest success stories, the blackberry, made by canadian company "research in motion," is hoping to make a comeback in january. the company is launching two

new smartphones. but former blackberry owners who've moved on may be a tough crowd to win back. "i think they better be competitive to compete with other smartphones." blackberry, which created the ultimate email-checking device, has been passed up by apps and maps of other smartphones. "apple has taken over the corporate market. they're a couple of years behind and the days of push-email being exclusive to blackberry are over." already, rim has launched marketing efforts in the philippines, one of rim's biggest phone markets. the phones feature a new operating system, touchscreens similar to the iphone and samsung galaxy, and mini keyboards familiar to blackberry owners. "if this fails, rim is toast." mark sebastian says rim really doesn't have a choice. its stock tumbled from $148 per share in 2008 to $6.10 two months ago. but the promise of twice-

delayed new products has kept the faithful... well, faithful. "all it takes is one product and rim will be back. could it double in price? absoultely." government agencies such as the defense department are reportedly considering the new blackberries. a new contract could be awarded in april. target is the latest retailer hoping you'll finish your turkey dinner on the early side so that you can start your holiday shopping on thanksgiving. target is joining wal-mart, toys 'r' us and sears by kicking off black friday shopping on thanksgiving night at 9. retailers usually bank a third of their annual sales during the holiday season and the stakes are high to beat competitors and entice

customers into stores. these retailers all claim a demand from consumers as the reason for the early openings. a former williams sonoma executive is now trying to cook up innovation for best buy. hoping to restore some of its luster, best buy has lured sharon mccollam out of retirement to become its new chief administrative officer. looking to boost both sales and its online presence, mccollam will have her work cut out for her. despite controlling 16% of u.s. consumer electronics sales, the chain has seen shares fall 35% so far this year and posted a $1.2 billion net loss in its latest fiscal year. a busy week is ahead in washington as democrats and republicans face that looming fiscal cliff. today at the white house, president obama meets with the leaders of labor and progressive groups. wednesday he's invited top business leaders over for talks. reports say the ceos of ge, honeywell, walmart, ibm and more will be there. the president then meets with congressional

leaders friday to address the cliff. "i intend to work with both parties. i said over and over again on the campaign trail, we can't cut our way to recovery, we have to ask the wealthiest americans to pay more." "instead of raising tax rates on the american people and accepting the damage it will do to our economy, let's start to actually solve the problem. "let's focus on tax reform that closes special interest loopholes and lowers tax rates." without an agreement between lawmakers, $600 billion in automatic spending cuts plus tax hikes affecting all americans are set to trigger at the end of the year. greece remains a country on the brink. sunday greek leaders approved a 2013 budget that includes deep spending cuts to pensions and wages, even as protesters took to the streets. now greek leaders are still awaiting word from eurozone finance ministers on whether it

will recieve a $40 billion bailout loan. greece needs the money by friday. gas rationing is set to end in new jersey today. the garden state was the first to implement the 70s era plan after hurricane sandy compromised gas supplies. according to governor chris christie's office, power restoration, along with rationing efforts, have alleviated the need for continued hold backs. "this rebuilding phase is going to have to be done really carefully, and smartly and not in a rushed way." meanwhile, new york's governor andrew cuomo says his state needs $30 billion to help it recover from hurricane sandy. that number is five times his initial damage estimate and exceeds what is currently in fema's disaster relief fund. several organizations are stepping up to combat fraud against members of the military. the new york attorney general is providing financial relief for soldiers who were scammed by smartbuy. the

storefront retailer allegedly was selling electronics from costco, walmart and sam's club at substanially higher prices and tacking on extra fees through its credit-only purchases. meanwhile, a new website, know-before-you- enroll, clues servicemen and - women into for-profit colleges said to be conning military members out of g.i. benefits. the schools promise a high-level education, but often charge 5 times more than public college. the kodak company is clicking with its bond investors to get out of bankruptcy. according to the wall street journal, the iconic photography giant has reached a deal with bond holders at jpmorgan chase and centerbridge partners. kodak would recieve $793 million in loans on the condition it gets $500 million by selling its patent portfolio, perphaps to goole or apple. the deal needs court approval, and there's no comment from kodak. within the next three weeks, one variable that's kept american airlines in bankruptcy may be resolved. the airline and its pilots' union have reached a

tentative agreement that gives the pilots pay raises and a 13.5% stake in the company. a ratification vote by american's 7500 pilots comes next. the labor agreement underscores a need to avert a rapidly approaching pilot shortage as a result of mandatory retirement and increased flight experience required of new pilots. "they simply haven't had the hiring they need to keep up. pretty soon, smaller airlines, private jet companies and others are going to be poached by big airlines." the ceo who shocked wall street with his abrupt departure from citigroup walks away with millions. according to reports, vikram pandit will be paid a $6.7 million bonus for his work at citigroup this year. he will recieve zero in serverance money. it's believed pandit fell out of favor with the bank's board of directors.

lance armstrong is resigning from the board of livestrong, the cancer fighting charity he founded. armstrong says he's stepping aside to spare the organization any negative effects as a result of his fall from cycling grace. armstrong was stripped of his seven tour de france titles and banned for life from cycling by the u.s. anti-doping agency after multiple doping allegations. never underestimate the power of a new coat of paint. sherwin williams, the largest paint- maker in the u.s., is buying privately-held mexican paint company consorcio comex for $2.3 billion. the deal means the companies will combine operations and expand distribution in the united states, canada, mexico and other latin american countries. cleveland-based sherwin williams makes dutch boy, minwax, krylon and its own namesake paints. still to come, dirty money: how

banks are sometimes involved in laundering drug money, and how you could be too. plus, why you need to check your mood the next time you shop. ways corporate america plays on emotions to get you to buy, buy, buy. that's next with bill moller.

why do we buy one brand of bread or cereal or a car over another ? is it quality?

reputation? price? maybe it has something to do with our psychological and emotional needs. let's talk about this. "empathetic marketing" is a book by dr. mark ingwer. he's a consumer psychologist. 85% of all consumer decisions, he says, are made based on a emotional factors. so it's not the rational choices we make. explain how emotion has so much to do with our buying habits. > > firstly, it's not simply what i say, it's proven by neuroscience. there is so much data to identify that what we are doing actually is unbeknownst to us. it is very similar to how we connect to people. it all comes down to something that we call empathy, feeling a deeper connection. and that is ultimately what differentiates good marketers, good products, good services from the ones that... > > so it's the subconscious connection we have with a product it sounds like. > > absolutely. it's like people, people you spend your

whole life with. how quickly you made that decision. sometimes it's not a good idea to say "why did you buy that car?" people will come up with rational answers. they will say, "the car, it's very fuel- efficient," when in fact it makes me feel - people don't like to say this - it makes me feel more of a man, it makes me feel valued, and it's a tool for me to express myself. > > what companies get this? are companies typically understanding this principle? > > there are a number of companies. one that's all too often used is apple. apple gets it. one of the unique stories that we tell that apple is doing is, week after week, they take metrics on how their salespeople are doing. there is a story where, they were looking at, some of their metrics were going down, and they tried to figure out why, and lo and behold, it was that people didn't feel in control. and that's one of the six core emotional needs that i talk about in my book. what people were feeling was they couldn't

find a genius. they were looking, it was taking them more time, and ultimately what they found out is that everyone was trying to be cool, wearing black, and the geniuses were being imbedded amongst everyone else. lo and behold, they started wearing louder colors, and then they found that in fact their scores went up, because they were able to identify who they needed to get in touch with. > > it's amazing. nobody knew this. i guess more and more companies are getting hip to this, because they are playing to the emotional side more and more. dr. ingwer, thank you so much. > > my pleasure, i appreciate the time. still ahead, a former dea agent takes us deep into the world of drug money and the ties to big banks. the disturbing details, next.

hsbc is the latest big bank under investigation for allowing clients to launder money through offshore accounts. according to a british newspaper, some of that money may have come from drug dealers and gun runners. robert mazur, a former dea undercover agent and author of the book 'the infiltrator: my secret life inside the dirty banks behind pablo escobar's medellin cartel,' is on the line. we cannot show you his face because there is a contract out on his life. good morning to you. can you tell us what does it entail

to uncover money laundering? > > it takes quite a few different approaches, whether it is through regulators, as in the hsbc case, or years of investigating internal transactions that led to identifying the movements of funds, or in the fashion that i did, which was as a long-term undercover agent imbedded within the underworld. i played the role of a mob-connected money launderer, and dealt with not just leaders of the medellin cartel, but also individuals who were senior bank executives, and recorded about 1200 conversations with both bankers and drug dealers in order to document their intent. > > why are some banks and businesses so quick to cast a blind eye to questionable transactions? > > there is roughly $2.1 trillion a year that's generated from the underground economy that includes $400 to $500 billion a year from the sale of illegal drugs, and then moneys from other types of

transactions, like tax evasion, evasion of customs duties, dealing with prohibited nations, pilfering treasuries. it's a big business. when i was in the underworld working as a money launderer, our group could make as much as 25% on the volume of a transaction. so, $1 million and $2 million transactions were a pretty common daily event. > > how can consumers protect themselves? should they be aware of this situation? > > absolutely they need to be aware of this situation. they may otherwise take this money in, and if they don't have appropriate compliance programs in place, if they aren't aware of the nature of the risk that they may be facing because of the nature of their product, the nature of the transactions they conduct, or the location of their customers, they could very well find themselves in a situation where the government accuses them of failing to recognize that the moneys they were receiving were tainted funds. > > robert, good to have you on the show this morning. the book is "the infiltrator." thanks again. > > thank you. coming up, a biotech stock

rallied 14% on positive news on treatment for heptitias c. find out if there's still time to get in on the rally, next.

time now for some chart talk, and matt cavanaugh of cmz trading joins us for that. good morning to you matt. > > good morning. > > so gilead stock had a rip- roaring day yesterday. but is this rally over? > > well, i tell you what - great news, that stock made a 20-year high. they came out with some really good results on their hepatitis c drug, which is also the most common and hardest to treat. really positive news. the stock was up almost to $74. i think in the short- to intermediate- term, it's possible the rally may have peaked out a little bit, just because there may have been a little bit of short-covering there. but i think over the

longer term, as long as this stock can stay in the $70 range, hold that level, it's definitely possible we will see this stock go even higher. definitely into the $80s a possiblity. > > and there could be some more news to come, right? > > absolutely. you know how biotechs are. we are always waiting on the next piece of data, the next piece of info. so, definitely something to keep a close eye on, keep a close risk/reward, keep your stops in tight; but it's definitely possible that if good news comes to this stock, good things could happen. > > where would you put your stops? > > $70 i think. i had that as resistance for the stock before, which you can't really count on so much for these biotechs. but i think if this stock can hold $70, it's possible we see $80. > > thank you for your thoughts. that is matt cavanaugh of cmz trading. have a great day. > > thanks. that's it for now. coming up tomorrow, a look at potential ways traders could profit from the fiscal cliff. from all of us after business, have a great tuesday!

. there are leadership changes. and looking into the investigation of general david petraeus, the other ranking official now involved in the scandal. and why police in point

springs -- palm springs had to shoot a young marine, this is khou channel 11 news. >> good morning, thank you for joining us on this tuesday morning november 13th, steve paulson is looking at our weather, rain coming? >> well, we are looking at sunshine and warmer temperatures, everything but a few high clouds is heading up and over, and that's a 70 by san jose, here is sal. traffic is doing well, here is sal. if you are stating off very early we think you will have a reward for that, here is sal. traffic continues to look good if you are driving 80s on westbound. and traffic is moving along nicely coming into san