Skip to main content

tv   Wall Street Journal Rpt.  NBC  December 23, 2012 2:30am-3:00am EST

2:30 am
i'm sara gore. i'll see you next week with an all new open associated of "open house nyc." welcome to "the wall street journal report." i'm maria bartiromo. a symbol of american capitalism set to change hands. who is planning on buying the new york stock exchange and why. the fiscal cliff clock ticking down. real estate roars back. what it all means for your mo y money. the hottest holiday toys. the kids at heart and why everything old is new again. the "the wall street journal report" begins right now. >> this is america's number one financial news program, "the wall street journal report." now, maria bartiromo. >> here's a look at what's making news as we head into a new week on wall street. big changes for american icon. a symbol of capitalism and wall
2:31 am
street. the new york stock exchange is being sold to i.c.e., atlanta-based derivatives trading exchange. the deal valued at $8.25 billion. profits at the nyc has shunk, lower trading volumes. i.c.e. is interested in the nyc because of the lower-based derivative exchange. the market could not make its mind up this week. the dow posting the first back-to-back triple digit gains since july. followed up with the worst day in a month. all the moves based on, well, what else, sentiment around the fiscal cliff deal. the economy though is looking stronger than many analysts expected. the gross domestic product was revised upwards, up from a previous level of 2.7%. the gdp is the broadest measure of the size and straeength of t u.s. economy. the treasury department announces a plan to sell remaining shares to gm.
2:32 am
that after bailing out the giant automaker. it will cost taxpayers $12 billion but saved more than a million jobs in the industry. it's not much time left before the bush tax cuts expire and the automatic spending cuts kick in. the dreaded fiscal cliff that will likely have a powerful impact on the economy can washington actually come to an agreement and what's going on behind the scenes? don peebles, chair monday and ceo of the peebles corporation, don was a leading fund-raiser for president obama. good to see you. >> thank you. >> a lot of drama happening in washington. let's talk about the fiscal cliff. what's your take on how this plays out? now with just a few days left in the year to get this deal done. >> i don't think they're going to come back after christmas. i think that we will see them back in early january to make a compromise. i think that comp promise is gog be in between where the president is and where the speaker is. >> you say we go off the fiscal
2:33 am
cliff then? >> yes, do. >> do you think we will see the economy hit recession? that was the expectation, right? >> no. that is the expectation but i don't think so. i think there's been a lot of drama, especially on the tax increase side. the tax increase side is do symbolic. at the end of the day it's not going to have any impact on the deficit or controlling our spending. what's going to have to happen is the spending cut. i think that's where the speaker was having difficulty getting support, is not being specific about where these cuts are coming from. >> where should the cuts come from? i mean, we hear a lot about medicare and medicaid and social security being the drivers of the debt. do you have to make significant cuts in the entitlements to really make a difference? >> if not cuts immediately, structural changes. and that's a problem with the government. that's a problem with this congress in particular. is that they wait until the last minute and they try to cram all this stuff down instead of making a structural change. what needs to happen is a
2:34 am
structural change of medicare, social security and medicaid and we need of look at the other spending areas as well. we're still talking about less than 40% of the government and we really need to look at the entire government and they can't do that in 20 days of helter skelter rushing. i'm hopeful they will come to their senses, do a short-term temporary measure and have a comprehensive review in the first quarter of next year, like any business would do it. >> you make a lot of sense, don. it just seems like we need structural change to these programs because we can't afford them the way they're going right now, right? >> that's right. and american's lives have changed. social security was a very good idea and still is a good idea but we're living a lot longer now than when social security was originally started. so we're much more productive. for example, i see people every day who are working in their 70s and 80s, yet alone retiring at 65 years old. i think there when someone else
2:35 am
for social security has to change as well. we have to update these it ine e entitlements based on where human beings are now. >> don, i want to talk about the underlying economy, really what's going on because we hear so much about housing having bottomed. so amidst all of this uncertainty that we're talking about in terms of the fiscal cliff you've got some strength happening in the underlying economy. the worry is that reverse it is we go over the cliff. talk to us about real estate and housing. you're so uniquely qualified to talk about this in so many different cities. >> you look at housing and it's the bright spot of the economy. i think it's going to help propel our economy back. miami, for example, one of the first to go down deeply along with las vegas. we operate in both of these cities. prices are up in las vegas now 7%. and miami, 8%. so you're seeing tremendous upside in housing. >> these are some of the areas that really plummeted. >> yes. >> yes. so they're coming back? >> yes. >> low bases. >> but in san francisco is coming back as well. miami roared back.
2:36 am
miami's inventory is lower than it was at its peak. the price increases are happening more prrapidly than t last peak in '06. >> fascinating. how important is this for the overall economy that you're seeing these hot spots of real gop development and bursts of economy in certain cities. >> one, of course, the inventory shrink and prices increase, greater demand for any construction. most america's networks are tied up into their homes and their net worth has gone up so they're optimistic about the economy and will begin to spend well. people can start speelling thei homes and move to other places where there's jobs. there's going to be a free up of entry level housing as well. i think it will be a good year. i think if the government can just get out of the way, go ahead and tell us what the rules are going to be, whatever they're going to be, make the rules. step up to the plate and about responsibly and make some
2:37 am
decisions. tinge free market system and the small business owners will make it work. >> are a lot of people in business talking about what's going on with guns and the potential for new gun legislation? i mean, this week we saw sporting chain dick's stop selling assault rifles. private equity firm selling the interest in the freedom group, a gun company, all in the wake of trat tragedy that we're still in mourning over in connecticut. do you think we will see real change in gun laws? >> yes, because i think the president is committed to bringing something forward quickly. senator feinstein is bringing something i, as well. i don't think there's any businessperson that i've come across over the last week or so that has not talked about what's happened here and talked about guns. and there is no case to be made for some reasonable basis to have assault weapons in the hands of the average citizens. there's no rational case for that. this is another example of where the laws get outdated with modern society. we talked about social security.
2:38 am
let's look at gun control, the right to bear arms. sure, when we were protecting ourselves in the embryonic stages of our nation's founding but today where does that stop in does it mean we can have mini nuclear weapons at home, too? the right to bear arms has to be reflective to what the founding fathers had mind. they lad no idea people would have rapid mng guns in their homes. >> you make sense. don peebles joining us. up next on the "the wall street journal report," it's not too late to bye a last-minute holiday gift for the kids on your list. and when it comes to the hottest stellars, he's not playing around. and later, gifts any time of year, the why and how behind the art of doing good. as we take a look at how the stock market did. i always wait until the last minute.
2:39 am
can i still ship a gift in time for christmas? yeah, sure you can. great. where's your gift? uh... whew. [ male announcer ] break from the holiday stress. ship fedex express by december 22nd for christmas delivery. military families face, we understand. at usaa, we know military life is different. we've been there. that's why every bit of financial advice we offer is geared specifically to current and former military members and their families. [ laughs ] dad! dad! [ applause ] ♪ [ male announcer ] life brings obstacles. usaa brings advice. call or visit us online. we're ready to help. can i still ship a gift in time for christmas? yeah, sure you can. great. where's your gift? uh... whew. [ male announcer ] break from the holiday stress. ship fedex express by december 22nd for christmas delivery.
2:40 am
2:41 am
what is playing well in the 2012 holiday shopping season this time of year represents about 20% of annual retail sales. meeting tough competition for consumer competition. my next guest hopes that leaves room for fun as well. jerry storch is with us, ceo of toys "r" us, dedicated toy retailer. jerry, it's always nice to see you. great to see you. >> great to be here. >> does all the drama over the fiscal cliff and this uncertainty about the economy weigh on consumers? how are you expecting the season to play out? >> well, i don't have any doubt that it does weigh on consumers. it's on the news constantly, people worry about it. having said that, we're talking about christmas here. this is no minor holiday. >> right. >> so christmas is going to come on tuesday. it is christmas day. and consumers have to get shopping. the last thing that parents want to cut back on the s. the holiday present for their child
2:42 am
for christmas. >> it's true. i want to go through the toys that you brought. what are you expecting? anything that we should look at as far as the real gauges? >> well, you know, it's all going to come down to the last weekend, to the last few days. >> even christmas eve. >> even christmas eve. at toys "r" us just to make sure, we are open 24 hours all the way through, until 10:00 p.m. christmas eve night. plenty of time. you haven't bought the toy, get out there now, get off the couch, go to toys "r" us. we're open all night. >> that's good, 24 hours. wow. >> 24 hours. >> does that really help, being open? that was the debate around thanksgiving, right? people were like, save thanksgiving, we we don't want to shop on thanksgiving night. >> no doubt that it helps this time of year. a lot of people procrastinated. we have the most number of days between thanksgiving and christmas you can possibly have. early thanksgiving, followed by christmas that last year was on a sunday, this year is not until
2:43 am
tuesday. people are waking up now and realizing, oh, my gosh, christmas is coming on tuesday. >> it will come. every year toys "r" us makes a hot toys list. tell us what you anticipate to be the hot sellers. >> i brought some things that are updated as of this moment. >> i love it. >> as of two days before christmas, these are the must haves that you need and we've got them in stock at toys "r" us. >> legos. >> legos have always been hot. people love legos. they have the best licenses, the best properties. we have teenage mu tant ninja turtles. it just came in. kind of next year's product this year. all the action figures we have are selling out like crazy. this is legos teenage mutant ninja turtles. >> you say it's the largest toy company. >> by far the most rapidly growing company. people love legos. there's a learning component to
2:44 am
it. people think it helps the brain. >> i brought lego friends here. >> cool. >> lego has struggled with girls throughout the entire existence until now, until this year. lego friends is doing fantastic with girls. it has little dolls that you construct, as well as this is lego friends summer riding cap. girlses just love horses. this has been a run away hit, lego friends for girls. >> you have mutant teenage ninja turtles and lego girls. and a bug obliterator. >> space theme for lego this year. and, again, it is something that we've got first to market. it just brought in from the stores over the last week or two. it's really next year's product this year because we're so close to christmas we're able to get some sneak peeks of new products like this. this is going to be a big space thing for lego for next year. they have really complex stories built into each one of these. you can read about them online
2:45 am
about why there are obliterating bugs in outer space. >> what else is on the hot toy list? >> we have if dream lights, great for a younger kid. you may have seen these on television. whole variety of them. they make light patterns and sounds on the ceiling and help children at night. >> so this is infant? >> this is preschool, we call it. but infant to preschool. this is from jake and neverlands pirates, disney jr. property this year. this is the musical ship bucky. this is the pirate ship from that series. again, this is preschool up to the young toddlers. this is a fantastic toy, too. >> love it. >> finally, not to be left out, i brought angry birds air swimmer 'this is radio control air swimmers. what that means is is that the fellow in red there actually flies and he can be controlled with this radio control. >> remote control. >> remote control so attack the other one. you can dive or climb. and he swims with his tail there. you can see him swimming.
2:46 am
attack the other one. this one is the, you know, if you play the angry birds, this is the one that you're knocking down and he's the guy who is doing it. >> incredibly popular. >> it's so much fun. even the crew here when we were starting to fell this, they all flock to that one. they all want the flying angry birds. why not? talk about bringing a virtual world to the physical world and making it real life, there you have it. >> what great toys. >> a lot of fun. christmas is here! go shopping! >> jerry, good to see you. thank you so much. >> nice to see you. >> have a merry christmas. happy new year. jerry storch, toys "r" us. up next on the "the wall street journal report," help giving back. the hard work doing good leads
2:47 am
2:48 am
today's workplace is full of new challengeses. to make things's your for the rest of the year, joseph a. bank is pricing all 100% wool executive suits and collect sports coats at just $200 every day.
2:49 am
doing good isn't business as usual in today's world. it requires the same prurlial zeal demanded by start-ups. my next guest has seagrams and the montreal expos and has advice for turning a passion into action. charles bronfman and jeffrey so solomon are the co-authors of "the art of doing good." who is the primary audience for this book? >> this one is for everybody because what we've done is highlight 18 social entrepreneurs who started with nothing, and to show all the problems that they went through and how they made it and in one
2:50 am
or two cases didn't quite make it. >> it's a great way to look at it. 18 social entrepreneurs you want to offer a game plan for launching effective non-profits. what's a social entrepreneur? tell me the way the skills can be useford doing good? >> the dynamics are the same except there aren't capital markets for the social entrepreneur. there isn't the financial potential, bottom line, for the social entrepreneur but the social entrepreneur is driven by that same passion of an idea of how do we make the world better in a more effective way. so one young man jordan who we feature was in optetry school in south africa and put glasses on a 7-year-old nearly blind and saw his life change and he
2:51 am
decided he's going to become the lenscrafters for the third world. >> how wonderful. that's a great story. were you inspired yourself by some of these individuals? what did you learn? >> oh, yes. oh, yes. well, you learn that if people have had tragedy happen to them or if there is something in their lives that influence them mightily, then if they have more than just the normal amount of courage and more than just the normal amount of passion, they took this difficulty and turned it into something that did good for others and saved other people's lives. >> charles, you've signed the giving pledge originated by bill gates and warren buffett, promising to give away half of your fortune to clarity. >> it's not an unusual thing actually in this country because i think that what they are really saying to people, you have a choice of two things. when you die you either give your fortune or as much as you
2:52 am
want to your fortune to things you care about or give it to the government. so it's not that tough of a decision. but that said, i think it will get a lot of people to give more than they have thought of heretofor. >> so you are currently spending down the endowment of the andrea and charles bronfman philanthropies. why put yourself out of business? you make a great point. you make a great point, either the government or give it to where you want. >> i tell you, there's another thing. i could talk all kinds of wonderful things, i didn't want to rule from the grave. but actually after the disaster we had to make a decision. let jeff tell you how we went about that. >> the default with the foundations is they're going to go into perpetuity. perpetuity is a long time. and we know from many foundations today that the donors' intent does not continue for many generations. and the energy and the passion
2:53 am
in the giving doesn't necessarily continue. so we're seeing, and bill gates is a perfect example, bill and melinda decided their foundation will spend down within 50 years of their death. we have seen more and more foundations use the spin-down to have more resources for today's problems and focus dramatically on what they do. >> jeff, are there particulars areas of need or charity you would like to see increased entrepreneurship, anything that looks prime for innovation to you right now? >> yeah, the genius of american philanthropy which leads to world by far is the one volunteerism. number two, as the american industry innovation. so i think we are seeing in, for example, education, dramatic change taking place in terms of charter schools, in terms of focusing on stem -- the science
2:54 am
technology, engineering, and math. things that will transform american education which will transform the american economy. >> this is a very good point. and a lot of, right now, across theountry seeing certain areas become rewired for what you're talking about, technology and science. gentlemen, thank you very much. >> thank you. >> great to have you on the program. charles bronfman and jeffrey saloms solom solomon. up next, the news that will have an impact on your money and what autton wood tree and ice what autton wood tree and ice have in common.
2:55 am
2:56 am
2:57 am
we have some big news to tell you about beginning in january we will have a new home. look for "on the money with maria bartiromo." we will exciting new segments for, you great guests and, of course, i will be here as well. join news january. first, look at the stories coming up in the week ahead that may move the market and impact your money this week. monday is a shortened trading trade on wall street. the noshl stock exchange and nasdaq is closing early for christmas eve. and tuesday, of course, is christmas day. all markets are closed in observance of the holiday. the rest of the week light on economic news. wednesday's s&p shiller index will tell us about b home price changes. and the month of november will be out. earlier in the program we told you about the deal in which the new york stock exchange will be acquired by the i.c.e. in 1792 24 of them got together and established rules for buying
2:58 am
and selling stocks and bonds. the exchange opened its doors in the current address. but as electronic trading came in and volume slowed the new york stock exchange looked for a partner. and now it has one. the deal really the end of an era. that's it for today. thanks for joining me. next week, a look back at the stories, the stocks, and the people who made 2012. each week keep it right here on wall street. have a great week, everybody. have a merry christmas. i'll see you next weekend.?ñ
2:59 am

286 Views

info Stream Only

Uploaded by TV Archive on