tomorrow a group of ceos from ge, wal-mart can afford, chevron will meet with the president and somef them, members of the campaign to fi fixed the debt limit, one of the most provocative and economic thinkers, the author of the israel test and new addition today. thank you for being here. >> great to be here. cs. i think rationally so. we are faced with economic calamity if our politics don't work here. what would you put the oddat that busy rationality and effectiveness reemerge from washington, d.c., on the fiscal cliff? >> zero. lou: i thought that. >> if we can keep the current tax rates, we would continue to increase government revenue. increasing 26% under the bush tax ras over the last two years. over t last two years, government revenues have risen 26%, almost a quarter using the buss tax rates. low tax rates bring more revenues, not less revenues. lou: do you interpret all of the drama to be a lack of faith? in front of the growth model that has been demonstrated, as you point out, over the past two years. they are really saying the onomy cannot grow fast enough to support

i think that's terrific news from ge shareholders because it gives them a chance to beat expectations that -- i promised you something bold. maybe a huge buy-back. i bet you could be a stand-out next week. big position. general electric. johnson controls also comes in on friday. last time this company spoke, they delivered sharply better than expected numbers. i still think they should break i was up to bring out immediate value. that would go up 10%. last but not least, we hear from schlumberger, s-l-o-b for you home gamers. that's what people call it. it preannounced a shortfall, so forecasts are for nothing good to happen. what happens if they talk about the long-term where resores are still scarce and prices are high? i think the stock goes up, which is why my charitable trust owns it. that said, i don't expect a big pop. you know why? first they told us short-term there are problems, but it is the best of breed, and oddly, ironically, it's now above the price it stood at preannounced bad earnings. that rarely happens. that's because they're a franchise that always seems to get it

we may get a pop from ge. that's a great time to sell. i think everyone is going to be all in if these numbers exceed and we'll have a perfect opportunity >> you think we're topping out here? >> this feels like you go back to '07 and '80, same way, very complacent about what we're seeing in washington and it's too easy not to sell. >> you said you were wary of oil. what do you like here? what would you buy? >> i like -- i want to see what intel reports. i think that's going to be a bellwether. that's going to really tell us about technology, where we're going, innovation, so that's what we're watching very closely. >> would set the tone for tonight and tomorrow morning. watch for the intel earnings. thanks for joining us here. the dow is up 88. it will not be a five-year high for the dow but it will be for the s&p. see you tomorrow. here's hour two with maria. >> and it is 4:00 on wall street. do you know where your money s.hi, everybody. welcome back to the "closing bell." i'm maria bartiromo on the floor of the new york stock exchange.

we are waiting on corporate results from companies like ge and morgan stanley. they both will report results in a few hours. stock-index futures are little changed ahead of that. flu is being across the country. the costs of developing a sweeping vaccine may be at least $1 billion according to the university of minnesota. with such a hefty price tag, it is a tough sell for product that brings in little profit the company that makes them. some hotels have been changing their routines to be more accommodating to those who are sick. some hotels are even preparing packages for the guests while others are stocking up on hand sanitizer and boxes of tissues. some hotels are even offering humidifiers and drugstore runs. the housing market is in recovery mode. that means the value of the white house is rising as well. more on that coming up in the next hour. live at bloomberg headquarters in new york, linda bell reporting for abc 7 news. back to you. >> thank you. >> 4:40, 36 degrees on this friday morning. first lady michelle obama is showing off a new hairdo on the cap

a billion dollars two years ago in the modernization of their plants as in ge's case reshoring business, two product lines from business, one from china. after being out of intensely u.s.-dedicated manufacturing for 10 or 15 years. and so they realize it's better to have the whole supply chain closerrer together, and particularly to have r&d closer together. bring back the products to america and now they're in the process of saying what did we lose in that 10 or 15-year period. as has been mentioned up here, a lot of the manufacturing work force is aging. one of the rock star positions in the manufacturing plant would be an industrial maintenance technician. these guys, and they're usually guys, they can fix anything, you know? whether it's a hammer or a

apple saying that they are bringing back manufacturing to the united states from asia, ge for the pastbilling factories in the u.s., and i think we'll continue to see that which gives people a comfort level. it's buy american again, and i think that that helps move us forward. >> very good. sam, thank you, i'll see you on the countdown coming up in a few minutes here. >> thank you so much. >>> ten minutes before the closing bell sounds for the day. a market holding on to the gains. up 96 points, shy of the high of the afternoon. >> mortgage banking revenues surged by 71% at bb&t, but if refis drop off, what happens to their bottom line? we'll speak with ceo kelly king. >> and later i'll speak with the ceo of the nation's largest mortgage originator. john stumpf will tell us if he thinks the housing comeback can survive this volatile economic environment. back with more on the "closing bell." to be the world's best sport sedan... ♪ ...people noticed. ♪ the all-new cadillac ats -- 2013 north american car of the year. ♪ for a limited time, take advantage of this exceptional offer on the a

are you okay that this is a large part of the profit coming from ge capital?e working that down, joe. 55% industrial, about 45% capital and their goal for 2015 is for that to be 65/35. they're working it down. it's becoming more of a core. they're going back to the core component of capital which is loans and leases that support their sales. so i think that improvement is tangible and is they're on track. they're ahead of track. ending net investment, i didn't hear that. i bet it was around 4.20. they were over 600 back in 2007 or '8. so this is a really good number, joe. a little surprising after the december 17th analyst meeting, which was, you know, they brought expectations down a little bit. >> yeah. mark. that's what i was talking about. that is where jeff was talking about the fiscal cliff, wasn't he? >> yeah, yeah, he was. and, you know, expectations since the last time you and i were sitting here have gone from 47 cents to 43. so they beat at 44. but still three cents below what the street was looking for 90 days ago. >> i'm trying to remember, you kn

this council is made up of business leaders like jeffrey immelt from ge and label leaders like richard white house, once in durham, north carolina, and once in pittsburgh. there have been 18 listening and action sessions. and the idea, according to the white house's web site, is for the council to provide the president with nonpartisan advice about how to strengthen the economy. two years ago today on january 31, 2011, president obama signed an executive order creating this jobs council and section 4 explicitly says, the council shall terminate two years after the date of the order, unless extended by the president. so by this time tomorrow, the jobs council will be a thing of the past unless the president takes some action before midnight. back to you in new york. >> steve: thank you very much. straight ahead, currently 711 here in new york city. imagine calling your doctor and hearing this. >> i'm sorry, the doctor can't see you today. he's on strike. >> steve: man. >> brian: who did that voice? >> steve: somebody on our staff. >> gretchen: i'm not going to say i know whose voice it

and we could see good earnings today from the licks of ge and morgan stanley. also tech stocks could get a boost today from install. they reported earnings which are better than expected and sales hit some forecasts. now looking at the markets right there -- >>> here's part of the reason the markets are riding so high lately. investors have been going all in when it comes to stocks. they poured $8 billion into stock funds in just the first nine days of the new year. that's a record amount and it comes after yanking more than $150 billion from mutual funds last year. investors are also plowing a huge sum into international stocks so far this year. >>> toyota says it's settled what was to be the first of hundreds of wrongful death lawsuits involving problems with sudden unintended acceleration by its vehicles. last month toyota agreed to a settlement worth more than $1 billion to resolve hundreds of lawsuits claiming economic losses but hundreds more lawsuits over wrongful deaths still remain these problems are far from over for toyota. >> it's amazing how they ca

very mixed results from barometer earnings. ge looked good, ups not so good. what you're starting to see is corporate earnings still being fairly solid, as i say, exceeding analyst expectations, but the underlying economy is still in what i would call a stumbling recovery. it's getting better but it will be two steps forward and one step back. >> and i think that key is about the part about it's really getting better. it's not only getting better here. this is back to that global story. getting better in china, gdp from 7.4 to 7.6 to 7.9. manufacturing picked up an exports and in europe draghi and merkel feel the eurozone will start to come out of the recession in the second half, so i think there's more traction, economic traction, than people are giving credit to. >> on a global basis. >> on a global basis. >> china is bouncing back incredibly, so i was just in china. look at countries like singapore, malaysia, indonesia, those countries are coming back, and if they come back and at least get gdp performance, even if it's not 15%, china 7%, 8%, it's going to

geologic time and did not occur at the turn of the last century and the early 1900's, and we know that from ge logic records. -- from a geologic records. we know the issue is to generate a willingness for both political and social will to make changes in the watershed, many of them directed at agriculture practices. the usgs has determined most of the nitrogen and phosphorous come from those sources but also make land-use and land architect changes that can be made in artificial wetlands, allowing them to put it away force us -- away from us. i think it is getting going. >> back to the comments about the mississippi river, i think when you have is a multiplier of sex that were not intended at the start. you basically made an escape route for the majority of the water. when you made was a place to shoot that into one place and keep putting it there. we are seeing a combined affect of decisions that in some cases were made a century ago. >> if people want more missouri water to come in, but all the dams and reservoirs are where a lot of the sentiment is stored, so there is a lot of competing for

dollars into projects like a win farm in texas that is half owned by ge. >> if this produces nothing of value they're getting money from the u.s. taxpayer. >> mbe we don't need wind rbine. maybe it's a was of mey. >> maybe it but we should invest so we're not left behind. >> some of the leanest renewable energy or agent. >> ge would not agree to be interviewed. maybe that's a good thing it if means companies are getting emrrassed about t handout 14. years when i wanted to confront a business, the ceo flew me to his headquarters in fancy jet. >> this is gold. >> at the time this man was the biggest recipient off handouts, the ceo of ethanol maker adm. >> you're a pig feeding at the welfare trough. >> why shy care. >> doesn't bother y. >> not a bit. >> many beneficiaries of corporate welfareeally believe they're being paid to help the country. what i'm providing is so good that it ought to be subsidized. unfortunately a lot of arican companies have become mooches off the government. they go to the government and manipulate the system in their favor. >> that's not what business is about or capitalism is about. >> but toda

ge. again, morgan stanley, the comments from sharon about ge, about margins and industrial growth, and alsogetting attention today. >> simon? >> there is a lot of back slapping here. we've got our first trade on the norwegian cruise lines. remember, the indicative price range was $16 to $18 a share, they priced above that at $19. now it's open at $25. so for those that are selling at the open there, it is a relatively small float, a huge initial profit. and this will be real good news for apollo, which is the venture capital part of the ownership structure. they basically rushed this ipo through very, very quickly, within a week, maybe ten days, in order to capture the higher valuations that you have with the likes of royal caribbean or carnival. they didn't even do a european road show. they just kept it focused on the united states. i'm told, the rumor is it was 15 times over subscribed. that strategy has worked exceptionally well for them. they raised just under half a billion dollars. the capitalization here is now 3 1/2, maybe $4 billion as a result of that open. we're looking for an i

so delicious...so fun. e w eltryeantryean ge, ,r-ssowi ve s,rsclto, y reoun'p yean >> live from the kgo-tv broadcast center, this is abc7 news. >> good wednesday morning. it is 5:00. thanks for joining us. i am kristen sze. >> no frost. but there could be moisture in the form of rain. >> but not enough to obscure the bay lights testing on the bay bridge. >> it is cool to see that drive across the bridge. live doppler 7 hd shows the best radar returns, with yellow in sonoma. we have light showers or sprinkles in the southern section of

ge. steve elmendorf was paid $350,000 from the wind energy association. but possibly the biggest player here was capital tax partners whose website offers clients and intimate knowledge of the tax writing process. it includes a team full of tax experts and advisors that work both on capitol hill and on the white house. capital one and goldman sachs were among the big banks that paid the firm, $2.2 million to get the financing break. verizon and time warner cable paid another $700,000 to keep the appreciation tax low. the motion picture association paid nearly $500,000 to secure tax breaks for movie producers. part of a measure that passed through the finance committee. back in august it went no where for months until it was tackeden to the fiscal cliff bill at the last minute. michael isikoff looking at how that happened. here he is now. mr. isikoff, so, i look at all your reporting on this and i think this is why tax reform can't ever get done. in a way that will make the country, in this day in age, when we expect transparency isn't going to happen. >>

from american banker and later in the program. tyler, back to you. >> strong earnings parade this day. ge reporting a better than expected 7.5% rise in fourth quarter profit. sharp increase in its backlog of equipment orders. the company earned $4 billion. 44 cents a share as a result, the stock up currently trading as you will see, right there. 67 cents. higher at 21.97, 3% move. ge, is 49% owner of nbc universal. the parent of this network. >>> agent from federal aviation administration and national transportation safety board have landed in japan to get a look at the latest boeing 787 that experienced inflight problems. stock had taken a hit on the grounded fleet as you see there. boeing down another half percent or so at $74.82. phil lebeau in chicago with the latest developments. phil? >> we are in the stage of the investigation where they are still gathering information before they make a determination of exactly what went wrong with the plane in japan as well as boston aircraft last week. here is the latest regarding the dream liner investigation. as you mentioned, investigators fr

from landover. >> there is speculation this morning that the 30 yard markers and 40 yards marker were that i will and test.to take a ge always been clean. check my record. no deer antler spray? >> i'm not a hunter. >> thanks so much. have loved your coverage from orleans. >> i wonder when he will do to today.at >> i will been waiting for snoop .ogg greg let's check and with jacqui the weather. >> it will feel more like football weather the next couple days. a cold front brought us severe weather expanded grain and flash floods. all that tapering off. we have snow on the western slopes. that will last through the the morning.f 4 images in winchester. gaithersburg had more than 3 inches. two inches at dulles and at reagan national. there's high water. don't drive through it. how deep is and the road know whether has been compromised. find an alternate route. frederick, burma, loudoun, fauquier, stretching into orange themadison, that's where untilgs remain in effect morning. >> been out of the north at 17 miles an hour, very blistering. wind out of the north and northwest. wind gusts even in the 40's. temperatures will

we just throw money at the problem when you have big companies like ge and morgan stanley, you know, at the table, ready to benefit from do what the utilities are doing, methane, carbon capture. >> a multiprongedded approach. at the end of the day, we can want afford to be on the wrong side of history on this or live life in the short term. this is an absolute concern. at the end of the day, face it, the market is worth $6 trillion. we want a piece of that in america. liz: what do you think? >> we do, but now is not the right time. we have to get the market back to creating jobs, talking less than 150,000 on a monthly basis, 8% unemployment, and the government needs to redistrict focuses to get the economy back online rather than focusing on clean energy right now. liz: phil, is north korea and iran or climate change the biggest threat? >> clearly the threats from countries like north korea and iran. they are manageable. you can do something about them. if the climate models are right, there's not a lot that can be done about it other than the things we're already doing, and to your point, you know, u.s. carbon emissio

ge, a part owner of nbc. last month united airliners dreamliner traveling from houston to new jersey made an emergency landingw orleans when a power generator failed and just last friday an ana dreamliner in japan was delayed due to an oil leak. now officials like we said once again just a little while ago have grounded the entire fleet of ana 787s. >>> san francisco is cracking down on smoking again. now you can still smoke on a public street unless the city closes off the street for a fair or festival. the board of supervisors approving an ordinance mandating that promoters post signs saying that outdoor events are smoke-free events. >>> could the bay area's biggest airport change its name? a san francisco lawmaker today introduced legislation to rename sfo harvey milk san francisco international airport. milk was the first openly gay lawmaker. he needs five other supervisors to agree before it can go on the november ballot. if the charter amendment passes s sfo would be the first airport named for someone who is openly guy. it would cost a quarter of a million dollars to change the name. campos says he wou

ge, those kind of companies. google, google got a bunch of money from american tax bayers, they've got a carbon foot print out of you're not a fan of the government fostering any industry then? i mean, the argument for this, charles, at the beginning was, well, the chinese are doing it in hyperspeed, india completely finances its green industry, um, they're booming. we can't let them outboom us, so we have to invest in this before they wipe us out. your thought on that? >> it's -- we're talking -- imagine if you had a replacement for fossil fuels. what is that, a trillion dollar industry? believe me, enough capitalists out there who would love to have a piece of that action. we do not need the government in the way trying to compete for capital, personnel, and we certainly don't need them mucking this stuff up, which is exactly what they've done. neil: all right. i'll put you down as a no. [laughter] charles payne, good to see you. one of the smartest business guys i know, and a nice guy. it alters, depending on the day. anyway, you know this whole dreamliner thing is getting bad. the government is on the case,

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ge and jp morgan chase. seriously? like they need right now a tax subsidy from the middle class of america? but they are getting it. >> that's part of the dog and phoney show. the ceo of goldman sachs says nice things about the president. he said the president, as far as he was concerned, is willing to be serious about getting his hands around the budget deficit with this deal. the ceo of ge, the same sort of stuff. guess what, it never happened. they were promises for president obama and basically in terms of -- in exchange for being promises, guess what, they got tax subsidies. >> charlie you watch wall street as close as anybody. the interesting thing is the dow jumped up 100 points after the so-called deal. a lot of people said the stock market reacted favorably to the deal. >> i would just say that don't base sort of the merits of the deal based on the headlines. that's what stock traders do. they are very headliners or robots. by the way, some of them are robots. after the bank bailouts in 2008 with i covered extensively, markets shot up short term and then it went down to depression

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geing -- >> you got all the money. >> okay. i think we're going to close public comment now. i'm going to call for a five >> public enrichment fund and we have a report from one of the committees. >> yes we have a report from the bilingual community council and bcc and they will be presenting and kim garcia misa. >> all right. welcome to the members of the bilingual community council. you may start when ready. >>

they invested in the modernization of their plants and ge's case reshoring business to pipeline from mexico, one from china. after being out of intensely u.s. dead candidated manufacturing for ten or fifteen years. and so they realized it's better to have the whole supply chain closer together particularly to have r&d closer together. bring back the products to america and now they're in the process of saying what did we lose in the ten or fifteen year period? as mentioned up here, a lot of the manufactures work forces is aging. one of the rock star positions in the manufacturing plant would be an industrial maintenance technician. these guys they are usually guy, they can fix anything. you know, and whether it's a hammer or a computer, they can fix anything. very highly skilled and necessary to keep manufacturing minute plants -- plants running. it was a lost a little bit when america offshore manufacturing and so those skills are absolutely acquired to meat and potato of keeping fact i ares running. so aging work force is a challenge as well. we talked about how in manufacturing do

ges in response rates. and apparently the employment disruption, from what we can see in the survey data, just wasn't there. so it does take us back to your question, the underlying strength. i think december is going -- even with the 200,000 adjusted forecasts, december is going to be another mediocre month, closing out a mediocre year. what we have seen thus far is an average of 150,000 or so jobs every month. that's consistent with the jobs recovery. we're staying in place in terms of labor force statistics. but we're not making any headway in drawing down the labor resources of the country. >> the monthly averages, though, are an awful lot better than where we are in spring last year. so put it into context versus terms of other job recovery stages. >> well, you make a good point there. what we've seen in the last two years is a situation where in the first quarter of the year, this occurred in both 10 and 11, 10 somewhat subdued and then 11 and is 12. we see very strong growth in the first rt yeaher. we then have a low for the second and third quarter and then beginning in the fourth quarter, i can we'

ge is a minority owner of nbc universal, the parent of cnbc and msnbc. that's it from, first in business worldwide. now back to "hardball." ♪ >>> welcome back to "hardball." while much of the focus and scrutiny has been on the rereal challenges on the republican party but there's been less attention paid to questions facing democrats over the next four years. though president obama handily won re-election the democrats face a challenge ever their own. as jonathan martin and maggie haberman pointed out today, quote, he presides over a party that has largely papered over its divisions for the past four years thanks to the president's commanding popularity. but almost as soon as the echo of obama's inaugural address fades and he becomes a lame duck, democrats are going to have to face a central and unresolved question about their political identity, will they become a center left democratic leadership council by a different name party or return to a populist left-leaning approach that mirrors their electoral coalition? to tackle that question we're joined by former san fr

engine making unit has received a contract from a brazilian air manufacturer to provide engine for new regional jet basically replacing former provider of that engine. ge parent. sue, back to you. technologies off the low. >> thank you, mary. back with andrew, senior portfolio manager and managing director of morgan stanley wealth management. you have some stocks on your radar screen right now because so many stocks were really thrown out in december. you find that they are a good value. what are they? >> when you think about it, what a great strategy. buy companies doing well fundamentally, have reasonable evaluations. for one reason or another, giving you an opportunity to step in at a good price. that's what happened to a lot of companies doing very well. so i like stocks like amgen, watson pharmaceutical, texas capital bank shares, three different, one mega, one large, one midcap all doing very well. they underperformed the market last month. >> you also like europe. >> yes. >> you continue to like europe. >> yes. >> you've been very successful where you've placed your bets in europe. looking at hsbc in particular in the financial services arena. w

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roof, and china's a long way from many people's markets, a, and, b, the cost of chinese labor has risen dramatically, huge delta, and american wages flattened out. as a result, geming back into the country, do manufacturing here. isn't that the beginning of a trend? don't you see a trend there? >> no reason, gerri, sorry to tell you, but there's slotly -- absolutely no reason at this point to have a significant trend in the making or that these are anything more than drops in the bucket, and, in fact, let's talk chinese wages for a second, and even transportation costs. there's little doubt that production costs in china are going up. nobody denies that, although, there's big questions as to how much, but here's what else is going on in china, what everybody seems to miss. chinese productivity is going up faster, and everybody knows, except it seems when they talk about china, that when companies get more productive, they can absorb higher costs and maintain and increase profits. gerri: jump in here, is that right or missing something? >> allen east right that the -- from 50,000 feet where allen's looking, the flows are balanced or even maybe favoring offshore.