http://www.clipsyndicate.com/rss/feed/225 http://player.clipsyndicate.com/view/225/1006909 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1006909?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/4/58/351/322dadd0-cc6f-4c30-8c69-324eb0911a8d_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Interview and discussion with the Founder of Liz Lange Maternity Liz Lange. She talks about her huge success on the field of design and fashion. (Venture)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1006909?cpt=8&wpid=140 Sat, 04 Jul 2009 03:30:17 +0000 Progress On Fashion Business Interview and discussion with the Founder of Liz Lange Maternity Liz Lange. She talks about her huge success on the field of design and fashion. (Venture) http://www.clipsyndicate.com/video/playlist/225/1006909?cpt=8&wpid=140 Bloomberg institute --www.ncicap.org-- >> welcome to big ideas. we are welcoming liz go lang to the program. >> when you used to think of maternity clothes, you didn't think of catwalks. liz lang set out to make chic clothes. it was a market most retailers had ignored. she proved there was huge opportunity there as orders poured in from around the world. she opened a store on mad ison avenue. nike contacted her to create a line. her business grew as this went baby bump crazy. next, target came calling. they wanted to take her hip momma designs to the masses. some warned that going down markets would destroy her up-market cache. her business grew 20% and in 2007 she sold the company for a reported $50 million to blue star alliance. selling off just in time for the slowdown, well, that's another bump she can be proud of. thanks so much for joining us, liz. where did you get this idea? i know you were a vogue editor and worked for a design firm and never ben pregnant. where did this idea get planted? >> you got it right. well, i was definitely that time in my life. i don't think i would have thought of that idea. i was 28 or 29. i was newly married. my friends were getting pregnant and it was on my mind but i wasn't pregnant and i noticed -- well there were two things. i was working with this designer and making nonmaternity clothing. and they would buy our dresses and outfits. i said what are you doing here, you're pregnant. they said, you don't understand, there's nothing out there. that was thought number one. i said, gee, what's out there for pregnant women isn't out there, it's not what they wanted to buy. and number two, when they did squeeze themselves into one of our nonmaterpt designs, the fact that it was smaller, made them look sexier and better. it's hard to imagine today in twine that maternity clothing wasn't always fashion nabble and fitted, but back then -- it was colors, little baby doll dresses. everything was huge. and pregnant women, it's an evolution, but they start small and it grows. so it was like this aha moment, that they need to be fitted and grow with women. and it needs to be fashionable and look like real fashion and i couldn't get the idea out of my head. >> you get the idea. what's the solution here? you decide to start your own company. where do you get the money? >> it was crazy. i got the idea. but i never considered myself an entrepreneur. i wasn't thinking of starting my own business. i went to the designer. he was my partner and i said we have to do maternity, not just regular clothing. we have to do maternity. he had no interest in that as nobody did. i went to a few retailers and i said i am thinking of doing this materpt line. they said, maternity, ha. but again, i couldn't get it out of my mind. >> it kept you up at night? >> it did. i thought if i didn't do this line of maternity clothing and someone did it later, i wouldn't forgive myself. i left the designer i was working with. i didn't go out raising capital, but with the little money i had, little money from my parents and new husband -- >> in 2000? >> $50,000. i didn't go to one person and said, can i have $50 thousand. between $25,000 and $50,00. i ordered some fabric. i noticed across the street there was a for rent sign in this little office building. it was in the back of the building. it was tiny. and my idea was, i didn't want to invest in actually making a lot of clothing and hoping women could come buy it. i know the retailers had no interest. maternity they said was bad business. i said fine. i don't need a retailer to get between me and my potential customer. so i -- >> you got out your sketch book? >> i don't know how the industry works. >> crude sketches. >> i'm not an artist and not trained in design. i went to brown university and majored in comparative literature. i always loved fashion. and i think that i always -- everyone has their specifics. taste was one of mine things. beyond that, no. in a notebook, i made very crude sketches. i tore things out of magazines. i loved the sleeve of this and neck line of that. >> she tore it from newspapers. very little cash. liz languagee, - laverpbingl lang. >> welcome back. we are with liz lange. we were talking about, you tore out newspapers, small rental place. how did that become the first line? >> my real key is i thought about the fact when women aren't pregnant, which is most of the time, every designer is ving to dress them. i thought what is happening to them? we see them on the cover of every magazine. i reached out to some of the celebrities. i didn't know them personally. but i reached out to assistants and i was able to dress a bunch of them. i dressed cindy crawford and my phone was ringing of the hook. >> did you seal those first or pick up the material? >> i should back up. i pounded the pavement. i know where all the factories were and went to a bunch of factories and found one that was willing to do small lots and work with me on making the first sample and then the production and everything was made to order in the beginning. i found a factory to make the sample line. and so and so wants this dress in green. it was very mom and pop and i would deliver dresses to these women. >> how long did it take you to become profitable? >> almost right away because i hadn't invested a lot and i started to get a lot of press. so maybe -- >> what did you do? how do you expand from there? >> i didn't know what to do. i didn't have a website. i slapped together a website. this was 1998. so women who didn't just live in new york city, they could speak to me on the phone and order them. i i targeted l.a. and things started to move. things started to grow. i outgrew this. my first store i opened on mad ison avenue in new york city and then beverly hills and store in long island. and within the first two years of my business and it was a big shock to me when i had nothing more than a showroom, nike called. >> i wanted to talk to you. >> corporate relationship. nike wants a materpt line. i almost fell of of my chair. i barely had a storefront. and nike was so huge. i didn't know i was on their radar and they said we want to do maternity athletic apparel and we identify you as the leader. and together, we did a deal. >> what was your revenue at that point and how did your revenue change? >> well, that became a licensing deal, so, to -- >> we went to selling in every nike town, nike.com and nike goddess store. it was growing 100% every single year. i couldn't -- it was like one of those whirl wind entrepreneurial -- >> did you start hiring a lot of people. >> i started hiring more and more people every single day. we grew in the end by 50 employees before i sold the business. and i don't know, i loked back at the time. we all worked about 20 hours a day. honestly, like, i worked - i waited on tons of customers. the five or six women -- >> did you manufacture your clothes or nike was doing that? >> they were doing it. but that was just a partnership. what we were really doing is not athletic apparel. nike was not manufacturing the dressings and the fittings and the jeans and tee-shirts. >> were you stil manufacturing? >> yes, i was. i stayed with the factory for the first six years. and i'm only 11 years old. in the beginning, i mentioned that we were doing made to order. that changed. sometimes we were making 1,00 or 2,000 of one style. everyone kind of grew with me. it was a happy entrepreneurial story where people were able to do that. >> and then target. >> then target came in. and this is a big one. this is what changed everything. >> the nike was fabulous. >> but when i was able to work out a deal with target where we do a liz lange for target. and we started out by being in every target location as half of their maternity department and they had their own label was the other half of their maternity department and also the same thing on target.com. but soon, they gave us the entire maternity department. >> within six years? >> that deal started in 202 when we rolled out. >> we are watching liz lange. and in six years, she went from a small tiny ofice to lots of target stores. >> this is "venture." we are joined with liz lange. and we were talking about how you just found this partnership with target. going to be half of their materpt line in all their stores. that had to be huge. you came from a small store to this household name. >> that changed everything. we were catering to a very wealthy clients in los angeles and new york city and we were dressing every woman in america. >> did that concern you from going from the high profile to affordable clothing or discount retailer. >> that's the entrepreneur in me. so many people advised me against it. i think it's about the high-low mix. sometimes it's a different customer or same customer. wasn't giving women enough credit. i didn't understand why there couldn't be a liz lange in target and nordstrom. >> did you reach out to target? >> i reached out to target, but it was mutual. it happened very quickly. from the day i reached out to them, they said, let's talk about this. we hammered out a deal in six months. >> how do the deals work? >> it's a classic licensing deal whereby target licenses the right to use our name and they sell it. they manufacture and distribute it to their target locations and we get a percentage of those sales. they also market it. the marketing was great, to. they put money. >> when was this? >> 2002 it started. >> i know five years into your business, probably you were diagnosed with cervical cancer. you run a maternity line. >> irony wasn't lost on me. here i am the face of materpt clothing and i'm facing a disease that prevents me from being able to have children. i already had a boy and girl who are now 10 and eight. it was a scary time and from a business point of view, i was in the midst of launching the nike line and negotiating the target line. when target wanted me to come to minneapolis to talk business, i couldn't, because i was doing radiation every day and i couldn't leave, but i didn't want to tell them that, so it was a difficult time. >> you got the target deal. >> i ended up putting it off. and said i was tied up in new york. that might have even helped. that might have seemed i wasn't eager. cool customer. there was a break in my radiation treatments and i did a round trip to target in one day to minneapolis and we negotiated on that day. but today i'm a big advocate for cervical cancer and i created a website which has information about it. >> you did this company and you sold your majority stake. where did that decision come from? and the number we have here is $50 million is what it was sold at. >> i know it was reported that way. i wasn't necessarily thinking about selling, but offers started to come in a year ago fall, the fall of 2007 that were attractive. and i had worked at this for so long. i love it. it's a huge passion. the store is my baby and the business is my third child. it was the right time and it was time to monday advertise the success. >> how many employees? >> 50 employees. again, we never talk revenues. we had a huge busines and maternity department at every target location. so it was a very god time in the company. it was a gait time in the economy. so i can't -- the timing was good. >> we are talking to liz lange. she went from $50,000 to multi-million dollar company. you are watching "venture." we will be right back. >> welcome back to "venture." liz lange, the founder of langematerpt. you sold your stake in the company. we are talking about why you decided to do it. and tell me more about why you decided to do it? >> the right offer at the right time. >> what happens when you spell your name? you are selling your name? what does that give you going forward? >> that's definitely a strange thing. it's hard to sell your name. on the other hand, two partners and what we wanted to do with the brand and i'm still involved with them. i'm the creative director and i make a lot of the decisions but don't make them solely. >> you are involved in the day-to-day processes of marketing the line? >> i'm involved in that. i don't run it anymore, i'm not the president. i loved giving that up. i'm a little back to some of the stuff i like the most, which is marketing the brand and working on design. >> marketing the brand at this point -- it's a tough retail environment. >> they are having to sel items at zoupts. they are cutting store openings. how does that afect design labels? >> this is a very, very tough time as everyone knows for retailers, for designers. there is no doubt there are becoming fewer and fewer channels. retailers want major markdown dollars. >> how do you kep the competitive advantage then? >> about sharp price point. today, the customer is not willing to pay overinflated prices. target has it right with their price point. they are one of the retailers will end up fine. >> what do you think are some of the trends t in materpt wear? >> the trend i started 11 years ago are there today. it needs to be extremely fashionable. you see pregnant celebrities and every woman wants to dress like them. sexy, but appropriate and wearing clothing that really celebrates this fabulous time in your life and looks like any fashion. >> going forward, you have relaunched your high-end line. >> we are excited about that. >> at nordstrom.com. >> we are excited about that. working on a new book. this book is al about how to look fabulous post-baby. working on nonmaternity items. we are working on a baby line and just debuting our diaper bags. >> still growing? >> still growing. >> as the pregnant women continue to grow. what are you reading right now? >> sitting on my table. favorite book is called "american wife." >> you have ben dressing american wives for quite some time. thank you for joing us. this is liz <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006909"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006909" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Business,Manufacturing,Retail,Marketing,fashion http://player.clipsyndicate.com/view/225/1006899 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1006899?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/4/58/351/8b3013cc-64a7-4505-b58e-5dd47d4f3bbb_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Analysis and discussion with the Chairman and CEO of Union Pacific James Young. He talks about navigation of business on time of economic crisis. (For the Record)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1006899?cpt=8&wpid=140 Sat, 04 Jul 2009 03:01:06 +0000 Business Management During Economic Downturn Analysis and discussion with the Chairman and CEO of Union Pacific James Young. He talks about navigation of business on time of economic crisis. (For the Record) http://www.clipsyndicate.com/video/playlist/225/1006899?cpt=8&wpid=140 Bloomberg businesses turn to them for hauling goods. i sat down with virginia and, the chairman and ceo of union pacific. a -- i sat down with gm young -- jim young, the chairman and ceo of union pacific. >> after a very strong drop in our earnings, when you go back about six months ago, i think the best thing i can see is that it is may be stabilized. but i do not see anything that says this is moving to the positive. you have to stabilize before you start to move up. there are some signs that i see her customers are making more inquiries in terms of if they start of a plant, are we ready to handle their business? i told them that i would take their order and look to the assets out there. but i do not see anything right now that is in the positive move yet. > so it is cautiously optimistic. in the time that you have been in the business, have you seen anything similar to the downturn you were experiencing right now? >> note. i have been in the business 21 years. if you look back at prior recessions, this is the worst. there is a significant international component. a good economists always looks set trends and tries to look backwards to what happened in prior cycles. the international peace of this is pretty dramatic when you look at our economy and in terms of where we're at right now. >> expand on that. > if you think about the last meaningful recession, early 1980's, look at what has happened in that time. you have had production to continue to move out, china, mexico, in terms of consumer goods. all in the production has continued to migrate outside of the united states. china, of being a consumer, again, you always think about import business into the country. we also look at the peak of their economy, exporting prior to china or steel. this is a much greater economic downturn in the u.s. alone. >> when you look it turns in business improving, how much time do have in the world of business for some time of turnaround? is a very quick or do have several weeks or months? >> it can turn around very quickly. going back to 2003-2004, you had a mild recession. in the timeline, we went -- are volume grew about 10% to 15% in six months. what we're looking at is inventories. you look at finished automobiles, the look in inventories in terms of coal, you follow retail sales, you follow consumer confidence -- there is something that i feel is important that we note inventory levels are being managed very tightly. if you get some kick in demand, consumer demand, you can see production start a pretty quickly. i wish i could see the deal was a good to you that i am seeing that, but i am not right now. >> transporting automobiles is a large part of union pacific's business. they have become more nimble as the auto industry struggled. the on-line industry volume went down 50% in the first quarter. that is pretty significant. would you do with the business that is lost when the city on an streak in shambles, pre much. >> first, women sure that we do not slip ourselves. at a time like this, -- first, we make sure that we do not slip ourselves. at this time, you can take your eye off of the things that are important. the auto industry today hit the numbers for your down almost 50%. and let's see that changing right now. in fact, chrysler, with the bankruptcy, there shutdown. for us, in that business, we are the best way to move vehicles. it can still be a very good business. >> we know the auto industry is shriveling. what other segments of your business, energy, agriculture, where those customers saying? >> one of the things you look at historical in our business is cold. it has always been a pretty stable business for us. today, it is down nearly 15%. they have seen a downturn in electric demand and power demand. but, long-term, that is a) of the equation. we turn these cars faster and save the money. i do not think the food consumption in the world is changing dramatically. you have some pressure today. market pallia home and in a restaurant, you consume less food. -- when you eat at home and not in a russia, you consume less food -- when you eat at home and not in a restaurant, you consume less food. lumber reflects the industrial sector. customers are looking at how we can reduce the costs. that means that we have customers that are talking to as that, in may cases, never considered rail. >> let me ask you about a segment of the business that is related to agriculture, ethanol. that seems to be much talk about -- much-talked about. > it is still a very good business. there are a lot of dynamics going on in the market with the price of corn and the economics. if you have had some bankruptcies in terms of some of the producers. but the effect of the matter is, unless the new administration changes their perspective on ethanol, i still see it gaining. ethanol is part of the equation for the foreseeable future. when it goes from no business to a substantial business, is significant double-digit kind of growth, or a high single-digit number in the next two years. >> with union pacific being among the most aggressive, the company plans to reduce the headcount by about 4000 more workers this year. that is in addition to the 5200 train operators already furloughed. how much more can you do? is there anything that you can cut? >> if the volume continues to deteriorate, you have your train starts. that will mean -- you'll have fewer train starts. that will mean more loofurloughs. i have had people come and look of spending and said that we do not need to do this right now. it would be very easy for me to say that every but it takes 20% out. corporate america is littered with corporations, over time, who went too fast. you have to say, you understand the seriousness of the situation. the have done very well. there is more we can do, but i will also this is a business that is a holocaust investment. when you look at how the locomotives, we have over 2000 among dozenlocomotives and storage reno. there is no model -- we're trying to work their way through this year. we have those 2000 locomotives. there is no market for them. the investment we made in the new rail, that is still there. we can do more, but there is immensely element in terms of how far you can go. we're also doing some things, trying to retain labor. we'll resume introduced a program called alternative work -- wheat introduced a program called alternative work. last summer, we introduced a program that to kissers and percent of their employes were paid 100% of their -- > that leaves you with $7 billion of assets sitting idle. how much longer can you have those assets sitting idle in terms of workers and trains and other things, waiting for this turnaround? >> where we are at, number one, knowno one predicted this downturn. the planners in the company, their definition of a serious downturn was maybe a 10 for its unsigned -- a 10% reduction. what we were able to do on the labour side is that, you realize about baby boomers retiring, you know, it is happening. we're going to lose maybe 3000 or 4000 employees to attrition this year. we need to size the work force easier. get the folks of a furlough to date back to work. question had a representative from the united transport union who praised you for handling the furloughs the way you are in terms of keeping some people on board with benefits and such. what lessons have you learned over time in terms of labor, the union, and what lessons do think he will take away from this downturn in terms of labor? >> we are about 95% union. there are 12 or 13 different unions that have an impact on our business. in many cases, we have this fight. there are issues that sometimes we need to fret over. what i have seen with their unions, the presidents, they recognize -- there's more people. they understand the business. they recognize the potential negative if they're on top of legislation passes nbc -- passes in d.c. we enjoyed it time for the last three years or four years where we were hiring. it is much more enjoyable to run a business that is growing and hiring than where we are today. i am confident our union leadership understands the consequences and we can work together. >> let's look at pricing. that ties into what the customers anticipate. pricing has been depressed. what are you doing in terms of pricing and trying to keep it as stable as possible during this time? >> pricing is, in real terms, a slowdown. we have been able to get some positive pricing. in the first quarter, up price was up 5% to 6% duri. fuel was down. what we're doing is selling a valid proposition. we have proved it time and time again. if customers see the value, they're willing to pay a higher price for that. and a lot of cases, it reduces their inventory costs. i am not one to tell you that the environment is not tough. the domestic trucking sector is a very tough sector. this industry sustained growth capital with financial returns. we need to continue to work on price. >> how low can you anticipate this depression in pricing? the you get any leverage and all -- any leverage at all in the next three months to six months or a year? >> [unintelligible] >> it is pretty much based in for 2009. >> we expect we did about 5% to 6% in the first quarter. that is how we expect the rest of the year to play dead. next year, there will be a slow recovery in the economy. i think there will be some cause of price -- some caused a price. you have legacy contracts. there is a big difference between a 10-year legacy and markets. i am assuming that we will see some kind of economic recovery next year. >> the stimulus bill signed by president obama several months ago was sold as a way to get the economy moving with billions of dollars targeted for infrastructure projects. but the initiative has not yielded any significant proof for the rails just yet. >> the timing is probably the key issue. if you think about building a highway infrastructure, the rails will be involved in the cement, stone, still, and lumber involved with the type of connection. i think the best guess renown is that the stimulus might be in the second half of the year. my concern is that the negative side, the states are struggling in terms of their budgets and revenue flow. you may get some effect from the fed. but since there promises at the state level, you may see a reduction in projects. we're not seeing anything at this point. >> when that starts to move, are you anticipating that being a segment that is clinton the quickly? >> i think it will trade the goal -- i did it will. the goal is that it has to have -- is to get people back to work, start spending money, it projects going, get people back to work. those projects, is district to move, they can move fairly quickly. >> can you pinpoint where the recovery in our business might start first? what segment? would it be in the materials area? would it be in aggro? not automobiles, obviously. >> your asking me to predict the future. -- you are asking me to predict the future. i would said that i think there will be a peak shipping season this year. there will be the -- whether it is holiday shipping or importing, that will depend on the consumer. i think they egg business is going to continue. i think the auto business will come off of extreme lows and you will still see it for the next couple months ended will start to pick up slightly on the back end. >> why do you think that? what it is when to change. -- what do you think is going to change. >> you still have to turn in your clunker. >> even in these challenging times, investors see the balance sheet as relatively solid. the company issued $750 million of debt in the quarter and pay down about $250 million of that debt. their balance sheet is roughly $1.5 billion. union pacific also declared a 70¢ per share dividend. >> last year, in the middle of the year, we decided that things were not looking very well for the next year. so we started to build up cash. we ended the year with about $1.3 billion on the books. we were not buying their shares back right now. there are still low of 333 million shares authorized for buyback. we are being conservative in terms of reducing our capital spending. it is to $2.6 billion this year. when i told employees and shareholders -- employees and shareholders is that we will get through this. we are a strong company. we have the financial power. >> union pacific is keeping us powder dry until a pickup in business. in 2004, the company was unprepared for an economic turndown. >> we really stumbled in 2004 when the economy turned around. we were very aggressive in cost. we had acquired some companies over the years that were not help with their infrastructure. we have some challenges. our customers have long memories. there was a business that we lost with our inability to support customers at that time that probably should be back. when you rember the last time, you understand the drivers that were out there. you have to understand the network capability. what is the ability of your factories? for us, it was 200,000 carloads a week. we are running 140,000 carloads a week. there is a huge spread their. >> of the sick, the deadly crash between the commuter train and the freight train -- obviously, if the deadly crash between the commuter train and the freight train got a lot of attention. there has been some talk about cameras inside the trains come in terms of the cabins, and, as well, the voice recorders like to have been airlines. you think that is warranted? is that an extra set of safety the two would want on your union pacific trains? > you can argue that it would improve safety. we're trying to do is to work with our employees in terms of her -- they want to go home at night, at the end of the day. we enforce rules compliance and make sure that there is a total safety culture, which is unique in our industry, where, instead of mandating safety, you care about your peers. it is a pure tennis 50 focus. -- is a peer safety kind of focus. the tragedy in california is that there was only one person sitting in the cab. we have a minimum of two. i think that can make a difference. kresa want to move on to green. there are initiatives -- >> i want to move on to green. there are initiatives. you have something called the agreement. > it is new technology that has -- called the green coat. gre-- green goat. >> is a new technology. it is a hybrid. it is really good in terms of fuel-efficient say and significantly reduce emissions. primary battery powered emissions are zero. our industry takes very seriously how we are viewed in the community. we are not an industry that can pack up and move offshore. >> when you look at your hybrid strategy, with a locomotive, what the use the in the next three years to five years? >> we own about 8000 locomotives. the average life is 20 years. dramatic changes when to take time. new locomotives you buy today are substantially more fuel- efficient, more emissions from lay than a locomotive six years or seven years ago. there is a natural progression we have a program for distributed power. you have reduced see where you have two or three locomotives at the front, you move them around. you have to in the front and one in the back or vice versa. it reduces fuel. they're safer. they reduce emissions. general electric just announced that they will focus on a new hybrid road-save locomotive. the concept is pretty simple, but it is based on the hybrid car. today, if you're moving downhill, you're losing all that energy. but they're going to try to do is harness that energy in terms of the battery cycle. we're the largest consumer in terms of diesel fuel than any company in america. we use 1.2 billion gal.. so energy efficiency forest is a huge leverage item. i think you know the math. you can move a ton of freight about 450 mi. on 1 gal. of diesel fuel. that is pretty phenomenal when you think about it. it is still a huge cost for a spray working with the manufacturers -- is this still a huge cost for us. working with the manufacturers, that is something that we are to improve. >> you want to put saddam place where, when there is a rebound, you can ticket-digit -- you can take advantage of it. >> chances are, what you take from here to california, when you have for lunch or dinner, in all likelihood, it has ridden on our railroad. if they want rail carload business, warehousing, those are new products that will be put into place. >> three years to five years from now, look like a very different business in terms of shies -- in terms of size or shape than now? >> we are prepared for a slow recovery. in fact, that is what we are modeling today. but that does not change the long-term strategy, safety, good service, smart investment pays off for this business. you will not build another railroad in this country. the rail system, in america, if you move to any place in the world, if you travel in europe and so far, it provides all features with a very low-cost mode of transportation. i am hoping i am wrong about the slow recovery. but we are a very good company and. >> union pacific has <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006899"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006899" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> NYSE:UNP Business,Economy,Manufacturing,Transportation,Automotive http://player.clipsyndicate.com/view/225/1006869 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1006869?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/4/58/351/e54fe2ea-6db2-4a41-8ac5-8409c0f44395_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Growing ranks of unemployment swell to 9.5% and some bank starts to repay the troubled asset relief program funds. (Political Capital)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1006869?cpt=8&wpid=140 Sat, 04 Jul 2009 02:51:25 +0000 Unemployment Rate Remains High Growing ranks of unemployment swell to 9.5% and some bank starts to repay the troubled asset relief program funds. (Political Capital) http://www.clipsyndicate.com/video/playlist/225/1006869?cpt=8&wpid=140 Bloomberg last month. what does that mean? >> i think of it this way. in the first quarter, it was like we were in the ring with muhammed ali. now we are in the ring with floyd patterson, we are still getting whopped, but it is just not as bad as before. >> let's talk about the short term. unemployment does remain high. markets are up 30%. some banks are starting to repay tarp funds. should i feel good or worried? >> i think you should feel good or better than you did earlier. it is a lot like last year. in the middle of last year, we were starting to talk about a recovery and we got hit by rising gas prices and the lehman brothers bankruptcy. this time, we have rising gas prices again so that throws into question if we will have this recovery. what is helpful is that we have the government and the central bank determined to not have a rerun of lehman brothers. it is a recovery, but it is going to be a feel bad recovery. >> when will the jobless rate get back to what economic experts call equilibrium. >> it is a problem. some economic experts are saying that the equilibrium rate is not 5%. maybe 6% or even higher. the reason for that is that we have had a lot of jobs disappear. the big job creating states like california and florida will be on their backs for a while. if you say the equilibrium rate is 6%, it will take years and years to get back to 6%. we are in for some toough job markets. >> you always bring equilibrium to us. let me turn now to <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006869"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006869" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Business,Economy,Banking http://player.clipsyndicate.com/view/225/1006864 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1006864?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/4/58/351/aec4f026-4567-492b-9428-f9ec480b24b0_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">President Obama arrives in Moscow on Monday to do his agenda about missile defense and political reform. (Political Capital)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1006864?cpt=8&wpid=140 Sat, 04 Jul 2009 02:41:43 +0000 Dominant Agenda Of President Obama In Moscow President Obama arrives in Moscow on Monday to do his agenda about missile defense and political reform. (Political Capital) http://www.clipsyndicate.com/video/playlist/225/1006864?cpt=8&wpid=140 Bloomberg will be the agenda? political reform, missile defense? >> in terms of where we can expect real progress, it will probably be on disarmament. the treaty expires in december. a missile defense shield is also tied to that issue. iran and north korea, in light of what has been happening in the last few days, that is on the agenda as well. they are driving home the point that they want to appeal to all levels of russian society. >> hillary clinton downplayed political reform when she went to china several months ago. is the same thing going to happen in russia? >> that is what we are hearing. the president is saying in his blog that he is hoping for a highly practical agenda. they do not want any more poking in the eyes by raising issues of ideology and democratic rights and so on. that is the message that the russians are putting out. we will see what obama will do. >> the moment that mahmoud ahmadinejad won that landslide victory, the first ones to congratulate him were the russians. >> they are very consistent in the sense that they believe that messing with eternal affairs is against the message that the russian government wants to put out. they like the order of stability and we have seen that constantly in the region with the revolutions in past years in georgia and ukraine. the russians have been against any kind of civil unrest. they may have some concerns on that issue domestically. to expect that they are going to change that as a result of one visit from barack obama, that is unlikely. >> the first african-american president and the first african american president to visit moscow, what is the reaction? >> it is really divided. in parts of russia, they are very racist. i have heard off hand remarks about barack obama. i have heard negative language and very harsh slang directed toward the u.s. president. at the same time, there is a small but very important segment of russian society that looks upon the election of a black president, a president whose father was a muslim, as a real sign that american democracy still exists and it is something to look up to. that is a very important segment of the society here. it will be interesting to see what the reception will be, whether obama works his magic on the population at large as he has managed to do in so many european countries, given the fact that russia has historically not been a super tolerant society. >> we look forward to your reports next week. when the american <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006864"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006864" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Government & Politics,Politics - U.S.,obama http://player.clipsyndicate.com/view/225/1006855 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1006855?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/4/58/351/069a5acf-66d7-488a-a9d7-7ed0ce2821a0_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Interview and analysis with Senator Mark Warner. He tackles about the Climate Change Bill and Health Care. (Political Capital)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1006855?cpt=8&wpid=140 Sat, 04 Jul 2009 02:31:16 +0000 The Battle Of Health Care Interview and analysis with Senator Mark Warner. He tackles about the Climate Change Bill and Health Care. (Political Capital) http://www.clipsyndicate.com/video/playlist/225/1006855?cpt=8&wpid=140 Bloomberg program with senator mark warner. it is good to have you here on the fourth of july weekend. thank you for being with us. >> thank you for having me. >> they brought the battle of health care to your state. one of the big fights is over the so-called public option. one is a full fledged medicare and another is a fallback plan if things do not work with the private sector and then the co- ops. >> i do not support a single payer. idea. >> a national coop? >> i would be open to a national or state version. we should have a competive state system. >> the house passed a controversial climate change bill. it was called a carefully balanced measure that enables coal usage to grow as electricity demand increases. do you agree and would you support something along lines of the house bill? >> i think there is going to be more work done in the senate. i want a bill that i can vote for. i think we can improve on the house bill. i want to make sure that we have the ability to take on the question of climate change. i want to make sure that we keep american business competitive. >> let me just say that the reasoning is not just around climate, but we are still spending billions of dollars on oil from countries that do not like us. i think that the next 25 years is going to do what it did over the last 25 years. america needs to lead. i think we need to make sure there is a transition period for manufacturing so that we don't put such an immediate burden on it, but remove some of these jobs in countries that are not a dissipating in this. i want appropriate transition periods, but i want a bill that i can vote yes and get a large majority of the senate. >> you are a pretty good political prognosticator. you have a pretty good political track record. what are the odds that the senate will pass a health-care bill and then a climate change bill? >> i would say 50% or 60%. we have to take on health care from a defensive standpoint. not only for health care coverage but to get the federal deficit under control. we have to take on the energy bill from an offensive standpoint because where are the jobs and the wealth going to be created over the next 25 years? it is if we get the energy right. right now, we are not in the lead. >> one of your concerns has been chronic long-term deficit. you have advocated a program to deal with that. a leading democrat said that over the long run, in addition to what you have talked about, you have to talk about moving to a value added tax. would you put that on the table? >> before you start talking about new revenues, you have to show that you can limit federal spending. a big piece of that is going to be health care. a big piece of that is going to be about entitlements. while i am a new senator, i am not sure that the current process will ever give us the will to take on entitlement reform. i think that a bipartisan commission would then give you a straight up and down vote. that is the only way you are going to get the kind of resolution that we need. >> should a value added tax be considered as you look at the long run? >> if we can show that we can actually tighten our belt, i think that looking at additional revenue sources, if there is a gap, that can be discussed at that point. >> is that an area that you want to think about? >> in 2004, in virginia, we tightened spending. we still had a revenue shortfall. we put a tax reform bill in place that raised revenue but we did it in a process in which we slowed spending first. >> you proposed another plan. how would it have been better? >> hopefully, it would include the chairman and the fed and an independent chair with a staff underneath it that can draw information from day to day regulators. it's job is systemic risk. you cannot call it a defined entity. the fed's major job should be policy. i hope that they would act quickly and more expeditiously. >> you have had two months to look at sonia sotomayor's record. everybody has a good sense of who she is. are you going to vote for her ? >> i think she is extraordinarily qualified. >> and she will be confirmed? >> i believe she will be confirmed. >> you must know your people pretty well. tom davis is a shrewd republican and says that this time things are different. the democrats and republicans do not have the burden of george w. bush. he also says that virginia is a countercyclical state. he says republicans are the favorite this time. >> under that theory, barack obama would not have won virginia last year. i think that at the end of the day, it may just be my state, but it is more about who can get stuff done. they want it to get done in a bipartisan way. the democratic candidate has worked against party lines. whenever there came those moments in time when we had to step up and make tough choices, he was not there. i think that our candidate will be successful. >> <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006855"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006855" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Law & Legal Issues,Legal,Government & Politics,Politics - U.S. http://player.clipsyndicate.com/view/225/1006837 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1006837?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/4/58/351/0e302774-414c-4352-b0ee-99bc17cabd91_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Analysis and discussion with the Founder of Jack Welch Institute Jack Welch. He talks about the rethought and retools on business education. (Market Week)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1006837?cpt=8&wpid=140 Sat, 04 Jul 2009 02:00:26 +0000 Importance Of Business Education Analysis and discussion with the Founder of Jack Welch Institute Jack Welch. He talks about the rethought and retools on business education. (Market Week) http://www.clipsyndicate.com/video/playlist/225/1006837?cpt=8&wpid=140 Bloomberg globe. he and his wife suzy have decided it is not enough. they are launching an on-line mba program that is distinctly jack welch. they are ready to launch a new institute. they sat down here with me at a plush new york restaurant just across from their home in midtown manhattan to talk about why business education had to be rethought and retooled. >> i have been following online education for about five years with an entrepreneur who encouraged me to get involved. i saw the way it can change lives. we can touch people who can keep working, veterans coming home, all kinds of audiences, and still earn money in their jobs. >> i think that just looking at it from a perspective of someone who knows jack, he is fundamentally an educator. this is the opportunity for him to take this teaching, teaching at mit and with other courses and books and so forth, and extend the reach and fulfill truly who he is. >> 10 years ago, "fortune" magazine called you the manager of the century. what did it take you so long to do this? >> i think it is now it there. but first, online has a certain thing to it. we will put out the highest quality mba program out there. this will not be an mba mill. it will be quality education and quality curriculum with outstanding faculty from the best schools in the country. >> give us the numbers on the university. what do you expect with enrollment and profit? >> in the first year, we are are hoping for 500 to 1000 students. >> we are really inventing something. this has not been done before, for profit, and we have these resources to bring on great people. this high-quality online education with the stock philosophy embedded in the traditional mba has not been done before, so we will learn as we go. >> you are launching this at a time when people are very worried about their jobs and paying their bills. education can sometimes take a back seat when you are in the workforce. how do you pay for an mba, essentially? >> this is the best time. people are uncertain about the future and they know they need more education. online education is booming. people are seeing it as a way to upgrade themselves, get themselves better positions in the workforce. >> without taking the risk of leaving their jobs. >> tell me what you think is wrong with mba schools as they stand? there is a lot of things right. we are not in the camp that says that everything is wrong with mba education on-line and off, but there is something we can overcome online, that in most programs, it is not a global enough. we will have every global aspect, first of all to our students, but also in the philosophy. and there are sellers of marketing and finance and strategy, and that is not the way business is done. we are going to make it part of the program. >> we are not anti-mba's. we like them and hire them. we just want to enrich the experience. >> what do you think those schools have a responsibility to teach after this crisis? >> a key discussion of ethics and compensation. i taught a course this year at mit where we said that week when we would talk about the top, the bailout of the automotive company. how could a faculty teach the same course in the fall and spring of 2008, 2009, that they taught in 2006 and 2007? too many of them were. with an on-line school, we can adapt to the times and bring today's business every week in this course. i will be online, video, talking about the week's events. here is what happened this week. let's debate it. >> that is what the technology enables. here is an opportunity for jack to speak directly to the students every week about very current events, and then have people writing in online, debating each other. a student in romania could be talking about what is going on with a student in japan, facilitated by jack's comments. that is a unique experience. >> are you going to be infusing ge management techniques into the courses? >> the philosophy i believe in and have written about in two books, the philosophy we do every week, that will be overlaid over the traditional way. a student will be able to debate what is in a textbook by the professor and get the best of both. >> from teaching to tweeting. >> ridiculous, ridiculous, absolute political grandstanding. >> what has him so steamed? >> jack and suzy welch not only teach, they tweet. they also go on tours and write a column for "businessweek" magazine. the jump on the latest internet fad because they say it makes them better what they do. >> it is a kick. it is a kick to be able to get up in the morning and have some thoughts and put them out there and watch people respond to your ideas. you have hundreds of thousands of people responding. last weekend, we were going to do our column and we had a whole bunch of questions to answer. what is on everyone's mind out there? we wrote "we have got to write our column for tomorrow. give us some questions." several hundred questions came in instantly. there were fantastic. we used one about president obama -- is he going too fast? and we took that -- that was not from one person, that was from several. we have communication. we test ideas out there. you have a real feel for what is out there. i love it. >> we would like to have fun, obviously. i think we're sort of connection junkies. we like connecting with people. we talked with every single person online. it is just our personality. we have similar personalities. tweeting is made for us. when i first learned about twitter, i learned a few weeks before jack started, i said, "oh, my god, this is made for you." i knew where we were going. it worked out great. >> this morning i tweeted about david ortiz. he had a home run last night and several in the last week. i said that it looks like david is hitting the ball. >> that is fine. that is the bottom line with tweeting, it's fun. >> what did you talk to barney frank about? >> i did not talk to him. he is pushing on lightening up the standards for fannie mae and freddie mac. hasn't he caused enough trouble? he went out and did that before in the housing crisis. >> that brings up an interesting point, because you had one tweet about the "new york times" labor discussions with "the boston globe," and that generated news reports. you ever thought that people would pick up on it and you would have to censor yourself? >> no. it is what i believe. why would i want to censor myself? i do not worry about whether i am saying something that -- >> should no business person do without one? >> it is a personality thing. >> if you are running a company, you have to be a lot more careful than if you're a citizen. i am not sure every ceo should be doing this. >> you think it will make money? >> that is the question. >> it is really important for us to get a sense -- trying ideas out. some are not so good. you always want to have voices coming at you to test your ideas. it is a great medium, in my view. >> what are most viewers and readers -- in this day and age, what are they most concerned about? >> it is jobs, and on the political side, the pace of change, whether it is right or wrong, doing too much, if we have to do it. you get both sides of that argument. >> people are demoralized. just trying to get my arms around the trends. a lot of questions about iran, but people saying that their team is demoralized and how do i motivate them? i am afraid that if i lose my energy, i will be one of the people let go. there is fear and concern, but exhaustion with the recession. >> how does that fear turn to optimism? jack welch answers that. plus, find out the hot button issue that has the welches up in arms. >> welcome back to "for the record." i am betty liu. jack welch is an optimist when it comes to how the u.s. economy will fare in the long run. but add in president obama's budget plans and the welches paint a worrying picture, one that has been convinced that the president is leading down the wrong path. while the u.s. economy is not falling as much as it was a few months ago -- >> we have not seen an uptick. we are bumping along. this economy has a lot of way to go before we get out of this. we are deleveraging. when you deleverage that much debt and people start saving and governments start saving, it is going to take time. i have been quoted several times as saying that ben bernanke, hank paulson -- they are national heroes for what they did last fall when it was close to breaking out. we were close to the end of the ball game. >> they are being raked over the coals right now, though. >> ridiculous, ridiculous, absolute political grandstanding. they did a fantastic job. societies do this. >> one thing we cannot question is ben bernanke's motives. he is a great american who loves america. what would be his motivation except to save the system from destruction? he was looking at the entire ship going to the bottom of the sea. if he did what he is accused of, his motives were so noble. to be crucified now seems political. >> there is a lot of debate about whether or not he should go another term when his term is up in january. do you feel that he deserves to get another term? >> absolutely, 100%. >> let me ask you also about the panel you were at at bloomberg. >> his plan for the next five years cannot happen. >> what i took away from that is that the war is not over, the economic cris is not over. when do you think it will be -- not even when, but how is it going to be over? >> it will be over when confidence is gradually brought back into the system. we have two things happening. unemployment is a lagging indicator, normally. but in a case like this, when you have such massive unemployment in such a short time, 14 months, you don't get buying power very quickly after that. people are not spending the way they spent before. the recovery will be slower. >> does that mean less americans have to adjust to a lower level of growth than for the long term? >> the president's forecast of 4% growth is not doable. we did not do it in the 1970's, 1980's, 1990's. it is larger than he is going to get. we have a top line that is high, to stuff in more programs, and the deficit does not look as bad. if we get up to 2% -- >> something will give. what is going to give? >> when a leader in a company has all kinds of programs that puts in big sales numbers, then he puts in the programs, and then at the end of the year it comes and the bottom line is terrible because he did not get the top line, so something has to give next year. you cannot have those programs. we are in for a huge tax increase. >> on the corporate, personal income -- >> everyone is going to be taxed. >> there is only one way to close that gap. >> has the legacy of jack welch focused too much on short-term targets? the legendary ceo defends his 20-year record. and sage advice that any mba student should hear. >> it is often said that jack welch's legacy of never missing short-term targets for 20 years has become a source of pride and a burden for ceo's. should chief executives be so focused on short-term goals? how else can they communicate their success? >> at a time like this, we have to communicate like we have never communicated before. employees need to know what is happening. employees need to feel the economy and feel why we are doing things, what is available, all the time. it is not a once-a-month communication. it is constant. >> at the panel, the moderator was asking you -- you had a legendary 20 years at ge, always met your short-term targets. but in this cris, companies failing to meet those targets and seeing their stocks go down because of that, in retrospect, do you think it was a good thing or a bad thing? >> meeting short-term targets? oh, absolutely. >> you set the standard. >> 20% growth over 20 years, that is long-term in my view. i always have a belief that you eat while you dream. eat is being deliberate in the short-term, dreaming is being deliberate in the long term. any jerk can say that we will make the next quarter and squeeze everything out. come back and see me in five years. no, you have to do both. >> i mean, it is the essence of leadership, the balancing of those two. >> why the hell would i not meet my targets? >> but do you entertain other ideas of how you can benchmark performance besides meeting revenue targets? >> three major measures -- are you delivering cash, are your employees engaged, really engaged in the mission, are they feeling good about you, do the customers love your product? you get this right, you will come out pretty good in the long term. >> pretty much everything follows that. >> what do you say to an mba grad right now heading into the wide world where wall street is vilified and washington is the lender of last resort? >> i say that america is the greatest place in the world for growth and opportunity. the more education you can get, the better off you will be. >> the days of graduating and having the big expense account and having that tv version of what it is, that is over, but that is ok because it is incredibly fun. >> business kids coming out of school and coming to our institute -- it is a noble work. the government does not create anything. we give them the money from the efforts that we put in, and then they guide the system -- laws, regulations, foreign policy. it all comes from a healthy economy. without a healthy economy, you have nothing. >> words of wisdom from two who want to infuse hope and idealism back into the world of business. whether it be launching an on- line mba program or a waxing about the beauty of the economy, it is about beginning again. i am betty liu. thanks <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006837"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006837" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Business,Marketing,Careers & Occupation,Education http://player.clipsyndicate.com/view/225/1006803 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1006803?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/4/58/351/3b1bc036-15d3-498e-b459-16825ec46f6c_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">China and Europe leads the way in the wind energy revolution. (Taking Stock)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1006803?cpt=8&wpid=140 Sat, 04 Jul 2009 01:30:16 +0000 The Business Of Wind China and Europe leads the way in the wind energy revolution. (Taking Stock) http://www.clipsyndicate.com/video/playlist/225/1006803?cpt=8&wpid=140 Bloomberg the way, and now it is time for the u.s. to catch up. this is "venture." welcome to "venture," the world of small business and big ideas. we welcome peter mandelstam, the founder of bluewater wind. it is a scene that invokes the epic of don quixote. the wind energy has had its share of powerful foes. there was a battle that left the nantucket project dead in the water. >> that is industry talking points. they don't want it to interfere with their views. a lot of other locations put it on the back side. >> never deterred, in 1999, peter mandelstam founded bluewater wind. with bluewater, he launched a twist. he switched his focus offshore where logistics were more challenging, construction more expensive, and many of the laws governing the offshore frontier have yet to be made. offshore wind farms have been done in european countries. getting his first contract was an uphill battle. oil hikes helped to tip the scale. delaware was one of the first to take a chance. he has worked his way up to what is known at the mid-atlantic bight. across the country, wind energy initiatives are picking up momentum. billionaire t. boone pickens has got in the game. >> we have got to get our own natural resources, and that resource is wind. >> the president is a supporter. >> legislation that will spark a clean energy resolution. >> let's not kid ourselves. [inaudible] wind producers not only have access to tax credits but performance production credits. >> that is good news to peter mandelstam, but is offshore energy viable without government subsidies? the answer, my friend, may be blowing in the wind. peter mandelstam, thank you so much for joining us. i just found out that you were kind of a serial entrepreneur before you started bluewater wind. talk to me about your progression through finding the company. >> in 1989, i read an article that changed my life. an article was written in "the new yorker." i became an environmentalist, went to conferences, founded a nonprofit, and then found and on-land wind company, and then an offshore wind company. it has been an evolution in my own thinking where i can make the greatest returns and the greatest difference, and that is offshore wind. >> differences between offshore wind and onshore wind, because this is certainly one of the issues that makes your company unique in what we are seeing right now. >> done both on-land and offshore, i feel that i understand the differences. in montana, i had 8,000 acres. the problem was, i could only build the rather small project. when we think about the mid- atlantic, we think about the northeast. 100 million people live along the east coast. they can get all of their electricity from offshore wind. >> some of the arguments with offshore wind is that it is intermittent, you don't know when it is going to happen. when is energy the best? what time of day? what can the east coast expect from that energy source? >> one of the myths about wind in general is that you don't know when the wind is going to blow. with good meteorology, the wind will blow and produce electricity 80% during all hours of the year. the utility that we are partnering with is going to forecast a day ahead in real time to know when the wind is going to blow. >> why is it so much more expensive to do offshore wind? >> everything is much more expensive. the meteorological towers that i put up, $15,000. another meteorological tower, $6 million. you have to mobilize a boat and a crew. the advantage is that you are very close to the load. 100 million people in all of the coastal states, they will never get wind from the midwest. there is no empty land in upstate new york or delaware and maryland. the solution for them is to bring the power from the water. >> so it has to do with land use? >> yes. >> when you founded bluewater wind in 1989, what was the wind energy like at that time? >> it is amazing how i have really grown up with the growth of the wind industry. my first year, there were 200 people at the conference, and the industry did 11 megawatts. this past year, 22,000 people and the industry did 8,300 megawatts. 42% of all the power plants in the united states are wind. in terms of new power, it is the number one provider. the market wants it, the regulators want it, the industry wants it. it is a great source of technology. it has been the fastest growing energy technology. in the market, it dominates all new power plants. >> we will talk all about it. stay with us. you are watching "venture." >> welcome back to "venture." with us today is peter mandelstam, the founder of bluewater wind. where did those initial startup funds come from? what were the first few projects? how did you start getting to become profitable? >> i took the profits from earlier businesses and put them into the next business. when i had success in montana, i took that money and put it into bluewater. i put the profit from housing into arcadia. i kept rolling up profits into a bigger venture. >> did you have initial venture capitalists or people helping out? >> no. i applied and people from wall street laughed. i would call folks on wall street and visit them. they said they were making 100% a day with enron. all of the costs and all of the revenues are known and fixed, and that has been the case. no wind farmer has gone bust, and enron is gone. >> when did you start becoming profitable? >> i was putting a lot of money into seeding projects. >> let's talk about the delaware project. in 2005, a professor and his class started researching wind energy, and that opened the floodgates, correct? >> yes. i like to read widely, so i read this "new york times" article, which made me an environmentalist. i came to his class. there were a handful of people at the university. they were doing profoundly interesting and important work with offshore wind. i went to the class and read a report from a student. >> from a student? >> yes, and the professor. delaware has an enormous offshore wind resource. i opened an office. the delaware legislature -- >> you opened an office? >> yes. >> you read a report from a student. how does that progress to opening an office? >> you make an educated guess, and then you really make your structure happen. when i came to delaware, there was a very narrow knowledge of offshore wind, but the legislature was mad. there was competition for fossil fuel power energy. i beat coal, beat gas, and ran the offshore wind project. >> nrg was the company with the coal plant. these had very powerful things at the time. your communication was grass- roots. what gave you that idea and how much was the citizenship of delaware? how did you turn their opinion up against lobbyists? >> the citizens deserve the credit. i began my career in politics. i ran it like a political campaign, totally open and transparent, lots of time on the ground. i basically lived in delaware for two years. i educated folks, provided them information, and then all the various groups, religious groups and environmental groups, citizen groups, consumer groups, they came to love offshore wind and bluewater. >> how many people did you have working for you at that time? >> at one point, i had 68 folks, and tens of thousands of volunteers that came to meetings, testified, and wrote comments. >> this is as much a volunteer effort -- i guess you got the volunteer side of it to get involved? >> it was a grass-roots effort. people saw that there was a different way to do it in delaware. people came out and organized spontaneously, testified, wrote articles, contacted opinion leaders, contacted the governor. they did a lot of volunteer work. i had a professional staff. >> it cost you quite a bit of money, too. you had to have meteorologists. >> some called me either a visionary or foolish to spend $5 million of my own money, but it paid off. i thought it was a good investment in delaware. >> how does this power connect to the grid? >> like any power plant, it has a cable that goes to a substation, and that gets distributed throughout the region. in this case, the cable is longer from the offshore to the land. >> are there any concerns of having to redo infrastructure in certain areas to accommodate this? >> no. one of the beauties is that all of the electrical infrastructure has power plants on the land side and load along the water, so the flows are towards the ocean. with offshore wind, you plug in from the water side and have no congestion. >> we are talking wind power with peter mandelstam, founder and president of bluewater wind. stay with us. you are watching "venture." >> welcome back to "venture." we are with peter mandelstam, the founder of bluewater wind. we are talking about the wind industry. one of the questions i have is -- so much of what you did for this company and what you do is on the political side. what is the bigger obstacle for you? is it financing? >> i think the challenge has been to educate folks. offshore wind is new in the u.s. but well established in europe. in delaware, they did not understand about offshore. the goal was to get tens of thousands of folks and all of the decision makers and the public service commission to understand this. that was an education campaign. i like to say i am a science teacher providing information. everything we did was on the public record. >> $1.5 billion project, correct? >> yes. >> the public service enterprise group had to delay the project because it was unable to get these federal permits to build these offshore things. that has to be an issue that you guys deal with. >> i am the chairman of the wind energy group in the u.s. from 2005 to two weeks ago, the permitting regime was not in place. the bush administration failed to listen to u.s. law. congress required them to do it in may 2006. until a few weeks ago -- the bush administration had not done it. obama came to office, and ken salazar got it done in 100 days. on earth day, they announced the regulations were out. the president talked about the projects in new jersey. the rules are now out, and we now have a road map to build these projects. >> then there is the delaware- biden connection, correct? how did that play a part? >> the vice president has been a huge champion in renewable energy. he spoke well of bluewater. the vice president, in his speeches, has understood that this is not just about jobs. it is about the economy, clean energy, stable prices. of course, let's talk about the all-encompassing issue -- climate change. the highest point in delaware is a few hundred feet. i think the average height is 60 feet. if the antarctic shelf melts, delaware is in trouble. vice president biden understands that this is a national issue. >> you are very good at the politics part, i got to tell you. one of the things that people bring up is that there are so many government incentives going in to develop these wind farms. i know one of the issues is the production tax credits. essentially, people are getting tax credits for financing these projects. and then you can build bigger projects. some of the concerns, you should apply the same types of credits to other types of clean energy. >> nuclear has a much larger and lucrative credit. i would happily trade the very modest credit that wind energy gets for the other technologies. all energy technologies are subsidized by the government. there are studies that show they get much larger subsidies. >> do you think that it is a sustainable industry, built on subsidies? >> in the case of wind energy, we are moving away from subsidies. offshore is still in its infancy. in europe, it is established. we are seeing a move away from the subsidies. we need to get the industry moving offshore. coal, oil, and gas have had subsidies for 50 or more years. >> denmark is an interesting case. 20% of its electrical grid comes from wind energy. in the u.s., only 1%. what percentage do you see that reaching in the next few years? >> i think new york is a good example. in 1998, there were no wind turbines. now there is 5% of new york coming from wind. it has grown very quickly. i do think in the next few years we will get to 20%. >> you heard it you peter mandelstam, founder of bluewater wind. stay with us. you are watching "venture." we are talking wind energy. >> welcome back to "venture." we are with peter mandelstam, the founder of bluewater wind. let's talk a little bit about financing. in 2007, you had an australian investment firm, babcock &amp; brown, purchase the company. >> i brought it along. i had won the delaware project. i was looking for a big, strategic investor to carry bluewater to the next level. i sold a majority stake to babcock &amp; brown. they are now selling off their assets. i am bringing in new investment capital into bluewater. >> is that one new investor or several new investors? >> we have got a lot of people competing for our affections. credit suisse is representing bluewater. i am confident that we will find a new investor and transition. >> how much has the value of your company gained as wall street becomes interested in wind energy? the idea of the firm, what gain in the valuation? >> entrepreneurs are always putting a value. we have a total development cost of about $9 billion. when we started, we were talking about projects in the hundreds of millions of dollars. >> what kind of exponential growth? >> yes, almost definitely. we see the academics at the university of delaware talk about replacing all of the electricity in the northeast, all of the heating in the northeast, and all of the transportation fuels in the northeast with offshore wind. the president is going to go to a california standard for fuel efficiency. the way to charge electric vehicles is with offshore wind. >> i want to get back to the financial side of things. have you ever thought about going public? is the ultimate goal to maybe eventually go public? >> when you take a company public, you lose control. having built a lot of successful companies, control has been important to me. i think i will keep bluewater private. >> there are so many more people getting into this wind energy. t. boone pickens, for instance. how has the competition -- everyone is competing for the next big thing, right? how has the competition played out in your strategy for the company? you are also competing with financing. >> i welcome the competion because it serves the investment community that this is an ever-better investment. being in a crowd that is rather small, there is a lot of water out there and lots of ability to do lots of projects. the delaware-new jersey project that i have ready to finance, once i get the permit, is 580 megawatts. thanks to president obama and secretary ken salazar, we are starting permits in about a month. we expect to go into the water two years from today. >> [unintelligible] >> we will invite you to the ribbon cutting. >> are you going to bid on new york? >> absolutely. they have a great opportunity. >> peter mandelstam of bluewater wind. thank you for joining us. you can watch more "venture" next week. thank you for watching. [captioning made possible by <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006803"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006803" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Business,Economy,Energy http://player.clipsyndicate.com/view/225/1006778 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1006778?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/4/58/351/5892af75-6ba4-471b-ae71-b59c34317619_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Analysis and discussion with President of Corporate Securities Advisors James Ledinsky. He talks about the banking financial status. (Taking Stock)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1006778?cpt=8&wpid=140 Sat, 04 Jul 2009 01:17:10 +0000 Deals Of Merrill Lynch And Bank Of America Analysis and discussion with President of Corporate Securities Advisors James Ledinsky. He talks about the banking financial status. (Taking Stock) http://www.clipsyndicate.com/video/playlist/225/1006778?cpt=8&wpid=140 Bloomberg in september. by the end of january, john thain was gone. did they make the right call? students and teachers weighed in. >> it is very clear that, if he was going to be a scapegoat, there were a couple of things that he was -- plenty of people were pointing to, including his office having been contacted earlier, the bonuses paid in december instead of january. i think the losses that john thain did not have anything to do with, but he came in with a spectacular record, not only at goldmansachs, but on the new york stock exchange. he was mr. fix it. he had a lot of talent. but more importantly than that, i think there is obviously a challenge on keeping the financial advisor. they're entrepreneurs, anyway. they all have their own book. i happened to deal with merrill. i can recall what they were like 15 years to 20 years ago, how they operated, and how now it is basically 1%. now you have a team in those cases. it is three or four or six or eight. it is like your own private group. they're really doing that right. i think there is a good chance that that part will grow and prosper. what i am more worried about is the banking side. to make this work, you have to get the commercial bankers on the same page. i have been told that the good number of investment bankers have started going to regional or the start. some have enough in the bank if they're going to take a 12-month or 16-month sabbatical. we are at a point where we are walking on sand. i grew up in michigan. if you're standing there, you have the sand coming out under your feet. if thain could have stayed around, he could've been a presence that would've been helpful to bankers. >> i was hoping you could give us some insight into what you think the conflict will result in going forward. >> you are in the war. your boss is the key regulator and is saying, for the sake of the economy, you have to go through with it. maybe there were some assurances given. that is probably one of the toughest problems that will have to be resolved. i do not think it can even be a waiver. >> what do you think would have happened if the deal did not go through, if the merger had not been executed? >> if the merger had stopped at some point, the government would have had to step in in some form, either with another party, in guaranteeing a certain amount of liability. lehman brothers was a real shock. it was not that a large institution was allowed to fail, but the ramifications it had on the market. a lot did not realize how far down it went. >> he will tell us how merrill lynch was like under former ceo dan o'neill. >> having left merrill lynch earlier this decade, win smith has a vision of the world that once consumed most of his time. he has some advice for the students at the university of florida regarding his own wall street colleagues. >> the real world makes real sense and it gets paid a reasonable amount of money. i spent 30 years on wall street. i enjoyed every single second. the vast majority of people with whom i worked with have high ethics. they think they're doing the right thing for society. but the reality is that, new york city and london are not the rest of the united states. when you go to a small community like the one that i live in now, you realize that people are very happy on $50,000 or $60,000 a year. they are living a very healthy life. they are intellectually smart. some of those people i see there are as smart as any i have seen on wall street but have chosen to do things very differently. i think the real world outside of the major new york and california are very different. what i think you're seeing right now is anger. that is why you are seeing a populist movement. people do not understand how their lives have been affected by these financial wizards and how they cannot get access to credit and what has happened to their 401k and their ira and now they cannot afford to retire or send their kids to school. the populist anger in america is out there. what i hope will happen is that we will likely get bad regulation to fix the problem. >> it is my understanding that merrill offered goldman and bankamerica 9.1% stake. what is your opinion on what happened? would merrill have been able to survive? >> there could have been different ways that merrill could have raised capital. it had to raise capital at that time. i think the strategic fit of merrill with bank of america is very strong. merrill considered many things over the years. i remember a comment that walter grison made in the early 1970's or the 1980's when he came with the cma accounts and there was a question about glass-steagall. what is your mission of the future bank? over the years, there have been a lot of people interested in merrill lynch. we came very close to merging with chase. that would've been a very strategic move. it did not happen for probably normal reasons in a merger. i am not sure what the leadership team was going to look like. there were discussions with american express a couple of times over the years. we always determined at the end that we would rather be independent and be the acquirer instead of the acquired. >> that wraps up this edition of the bloomerg's master class. thank you for joing us as we watched firsthand what future wall street pros are learning. [captioning made possible by <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006778"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006778" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> NYSE:MER, NYSE:BAC Business,Education,Economy,Banking,Business http://player.clipsyndicate.com/view/225/1006771 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1006771?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/4/58/351/64b5972d-5e31-411a-bd52-099ce08faeae_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">A bit of a culture fear and mentality that built up where people distribute mortgage securities were not permitted. (Taking Stock)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1006771?cpt=8&wpid=140 Sat, 04 Jul 2009 01:09:08 +0000 Regulation That Creates Transparency And Safety Bounds A bit of a culture fear and mentality that built up where people distribute mortgage securities were not permitted. (Taking Stock) http://www.clipsyndicate.com/video/playlist/225/1006771?cpt=8&wpid=140 Bloomberg about hurting any feelings. >> there was opposition in the ranks at merrill. how difficult was it for the leaders to work opposite stan o'neal? >> they had their heads chopped off so they did not speak. i had the financial flexibility to do something else. a lot of people did not. a lot of people will tell you that they did not like it there. they did not agree. they needed good money. they need a job. they had families. there was a bit of a culture of fear. there was a mentality that built up where people distributing mortgage securities were not permitted to say that we cannot sell this junk. they were not in the decision. >> how do you think the company can incentivize the corporate leaders of the world to cooperate in the results and long term success instead of greed and ruthless competion? >> i do not think you can legislate morality or ethics. i think that is very difficult. i think you have to have regulation that creates some real good transparency and creates certain safety bounds. but it comes back to trust. i am in business with customer service. if my clients do not believe in me and do not think i am telling the truth, they can go somewhere else. if you're in the financial business, i think it comes down to the same thing. everything starts at the top. it really is. leadership starts with what the leader is doing as well as with what he is saying it. he is the accountability on the part of the board and on behalf of the shareholders to make sure that the right leader is put into place. i think you have hit a key thing right now. why is wall street under such a microscope for now? main street does not like it. main street is looking and are saying that people are losing money, causing pain, causing the banks to not lend to us anymore, and they're walking away with $16 million -- i forgot a zero -- $160 million in severance pay. that is not fair. i think you're on to a key point. everybody has to really regain the trust and the confidence of main street. and they're going to have to do it through their actions. at the end of the day, i think most americans will acquire wealth creation if it is done appropriately. i think people applaud bill gates to build something in the shop or steve jobs to build something in his garage and he is the richest man in the world. you applaud that. we do not applaud people who inherit the seat that was created by others and they think they are responsible for the creation of the company and then should be paid what alex rodriguez is paid. i think that it has caused a lot of skepticism on wall street. i think you have to legislate that there is transparency on how compensation is being rewarded, who is accountable, why they're paid. should shareholders not vote on compensation? i think that should be asked. i think there are pluses and minuses to that. i am not in favor of that. but i am in favor of the boards being responsible. >> [unintelligible] >> i am worried that some of what is being done is not stimulus but is politically focused on some programs. there is a question about who is going to pay for it and who is going to finance it. on the way over, i mentioned to them i saw a cartoon in the newspaper today. it was regulators drilling bernie madoff. and they ask him, where did you learn this scheme? and he said, social security. social security is a ponzi scam. we are in the hours economy since the 1920's. we have to erron the side of spending more rather than less in order to get the economy going and get the confidence they can. it is easy to be a back seat driver right now. time is going to tell. i am worried about the size and direction and how it will be financed long-term. <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006771"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006771" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Education,Business,Economy,Business http://player.clipsyndicate.com/view/225/1006763 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1006763?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/4/58/351/4c465f6d-9528-4a80-b2a1-45de698d4c3b_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Firms were not allowed to be corporate firms. Merrill Lynch became a corporate firm. (Taking Stock)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1006763?cpt=8&wpid=140 Sat, 04 Jul 2009 01:00:27 +0000 Biggest Issues On Corporate America Firms were not allowed to be corporate firms. Merrill Lynch became a corporate firm. (Taking Stock) http://www.clipsyndicate.com/video/playlist/225/1006763?cpt=8&wpid=140 Bloomberg issues facing corporate america. we recently visited the university of florida to sit in history. they decided to do a deal that would change the face of the u.s. financial system. the title of the class is impose, expression, or intuition? the class was part of a course given by bruce foerster, markets. he has been teaching a course on capitalism for the past several years. two special guests joined the class that day. win smith is the son of winthrops smith, a pillar at merrill lynch for more than a generation and is credited with bringing wall street to main street. smith remains a local critic. the other guest was jim ladinski. he was a principal at morgan stanley and also holds managing director positions at chicago capital markets and a director. q&amp;a. we will pick up in there with a theme that remained constant throughout the morning, corporate culture. >> i think you can keep it partially. there is a reason why firms were not allowed to be corporate firms. merrill lynch became a corporate organization in 1968. we really believed that it was our company and we also believed we have an obligation to the people who gave us the jobs, the people who work for us, and future generations. that came about through leadership. it came about when i sat with the ceo and he was in the room as a team and we argued. we could comment on some deals. structuring some deals is business. and we were free to debate. and there could be heated debate. attitudinally, that is important. but it is harder. when you have a $10 million book, that is paper. that is like playing a video game. that is not your own money. they argued for years not to let goldman go public. when you're spending your own money and it is really at risk, you think about the world very differently. i think it is key. i do not know that your going to go back to partnerships, but you have to build an internal governance and an internal attitude that people realize they're not just playing video games. they're playing with real money. >> let's take the board of directors. if we read each individual's biography, we would say, wow, great accomplishments, very impressive, individually. what happens to those 15 individuals when they get into an air-conditioned room on the 40th floor and they cannot act together like when they were ceo's? you were in that room. what happened? >> i cannot tell you that. [laughter] there was a great story i read years ago about group think. a lot of bad decisions were made with group think. how are boards selected? the ceo selects the board. there is a nominating committee, but it is fake. they select people who are going to look for good on the board. either they will have diversity or people that have good pedigrees. but they are not selecting people to challenge them. they are not going to elect the people who are going to be really independent. i am not sure how that happened, but i think it has to happen. one of the things that the sec has to think about is what is the progress going to be going forward? maybe we should be considering that. there had been a lot of gadflies who have tried to get cumulative voting put in. nobody wants that because i can get all my votes to get you off the board. you need to <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006763"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006763" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> NYSE:MER Business,Education,Economy,Stock Market,Business http://player.clipsyndicate.com/view/225/1006246 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1006246?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/3/58/351/09094eab-f6b1-4c34-9106-49b99cbbd3b2_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Interview and discussion with the President of the Iowa Northern Co, Daniel Sabin. He talks about his company's profile, from the deepest challenges to the sweet success. (Venture)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1006246?cpt=8&wpid=140 Fri, 03 Jul 2009 14:30:17 +0000 Spotlight - Iowa Northern Beginnings Interview and discussion with the President of the Iowa Northern Co, Daniel Sabin. He talks about his company's profile, from the deepest challenges to the sweet success. (Venture) http://www.clipsyndicate.com/video/playlist/225/1006246?cpt=8&wpid=140 Bloomberg giants dominate the business, norfolk southern, the nsf, csx, and union pacific. but there are smaller players in the market. today we will sit down with one railroad entrepreneur who is bringing the short line to the big time. i am cris valerio, and this is "venture." welcome to "venture," the world of small business and big ideas. we welcome the owner and president of the iowa northern railroad co., headquartered in cedar rapids, iowa. it cuts right through the heart of farm country. the shoreline road runs diagonally, north to south, from manley to cedar rapids, iowa. in 1994, he bought the struggling line that at one time was part of the chicago, long island, and pacific railway companies. >> 8000 miles of modern steel rail in its network. this is a fabulous empire through the wonderland. >> now, the 163-mile stretch of rail goes through ethanol plants and grain processing facilities through the heartland. it calls archer-daniels midland one of its customers. it helps the little rail company that could become one of the most profitable short lines in the west -- the u.s. by 2008, its members had grown to more than 45,000. capital improvement helped bring the average track speed from 10 miles per hour to 30. it is not all agree on the train. also owner of the hawkeye express, shoveling bands to football games. he >> see some of the tailgaters. it has >> not always been it full stream i had come either. last year's flooding affected a critical bridge. rerouting has been costly. the association of american railroads said that may carload traffic was down 24.7% year over year. nevertheless, said it plans to spend additional $55 million of the next five years. - over the next five years. thank you so much for coming. the railroad business is very much a part of who you work for from an early age. taqa was a little bit about that. - talk to us a little bit about that. > my father was a locomotive engineer. my brothers all went on the road. five of us worked on the railroad by some point. i hung around a railroad constantly, and i had the opportunity to start when i was 15, in 1968, and i worked as a track laborer and a number of things, and then i became the youngest train dispatcher in the united states when i was 18. then i started going to school, want it to go get my degree and go into management. >> you ended up at csx, correct? > yes, then out on my own -- >> you co-founded a company at that point. > iron road railways. >> will was the experience of starting up at first venture? >> it was pretty exciting. in lot of the big railroads had given up on these lines. >> what year was this? >> this was in 1994. the east coast was having a rough time with a rights in those days. a lot of industries left new england in particular. it was on its last breath in the midwest. i knew one of the original residents of the line and work with them a little bit as a consultant. they were ready to give up, so the directors asked if i would find a buyer for them, and i said i would be happy if i could be considered to buy it. it would be going home for me. it was in very bad shape. >> where did you get the funds to buy it, and how much did you buy it for in 1994? >> in 1994, we raised $250,000 of down payment, and the grain elevators along the line on it. i paid them on $35 a car. that is a penny a bushel. we have not paid them off in about four years. we spent about $2 million to buy the railroad. we doubled the service immediately, and we really worked hard to get their costs down. the freight rates were higher than trucks. they had no incentive to ship by rail, even though they all did. we changed that fast. we were profitable within four years. >> we will talk about that model for the business, but first of all, for the audience and for myself, talk about shorelines. where did they come from and how did they differ from the big lines? >> most of us are spinoffs from the larger railroads who had either gone through a bankruptcy or just, after the act in the mid-1980's, started looking for clients with a low density, and decided it was a better way to save the industry by spinning those off. a lot of folks like myself, maybe more risk-averse and less bureaucratic and willing to try it some new things, got into the business, and by far, most of them are very successful now. >> what did your family think when you returned to iowa, by what your -- buying what your dad used to work on? > a lot of thought i was crazy. but it was fun to get back to iowa, where my roots are. >> you are watching "venture." >> welcome back to "venture." we are joined by dan sabin, the president of iowa northern railroad. we were talking about how you got the idea to buy the company in 1994. i did a history lesson and learned that the rail line was built in 1856. your line is very old as well. >> our line was built mostly in the 1870's. i think it arrived in in about 1876. >> when you got to it in 1994, it was not in very good shape. >> no, it was very bad shape. five locomotives, but generally only one would be working at a time. a very difficult to move any traffic at all. >> 0 was the customer base at that time for the line that existed? >> about 15 grain to elevators on the line, and they did not ship to very many processors or anything. we handled 235 cars a month when we took over now a good month we 4000 carloads. >> you invested $1.3 million per year since to have taken over that company. you have increased the carload. talk to me about the building growth strategy. you told me i had a commercial break that you knew exactly what you need to do coming into that railroad. >> one of the things before we took over the grain elevators on the line on the railway, and they were trying to hold costs down. they kept trying to match the cost curve, and as a consequence, they were less competitive in their own market place. what we did when we took over -- they had 64 grain cars, working just several days a week. we put it on a daily schedule. we got several hundred cars and started looking for better locomotives. we ran, with daily service, and were able to turn their equipment much more efficiently and cut rates by 20%. > how quickly did your business increase when he made the initial changes? >> roughly doubling every year. we were profitable within about four years. we started putting more money in the track. we had a few federal grants that came along. every time we pick up a dollar, we put it in the track. >> then the ethanol boom came. let's talk a little bit about that. that is a huge part of what of the rail transport -- on both ends of the production line. > adm has a huge ethanol plant in cedar rapids. we do about 1/3 of all of their grind. that represents about close to 17,000 cars per year. then we encourage the company to build an ethanol plant on our line. we gave them good service, we give them are out options. a very few short lines more than one connection to the outside world. the system, if you will. we had a five connections, or five outlets come to the other railroads, so we could leverage the railroads and little bit to get better service. it makes our customers far more competitive. >> how does the licensing for the different areas work? the actual five connections to the other lines -- how does the money transaction happen? >> will we typical -- what we typically do is that we send the customer the freight bill for our portion, then we interchange to the major system, and then the customer has through rates on the entire network. as we get bigger, we become part of the tariff and we collect the money. but we all share a division of revenue. he depends on mileage and what markets we are serving. >> how eight you secure the atm contract -- did you secure a seat adm contract? >> in 1994, there was no service going to them. we were introduced to adm and prior to that, we would call on them and we cannot even get in the door. we were just a mom-and-pop shop and they did not have confidence with us. after about five years, they give us a chance, and our service became very dependable. we did it just-in-time delivery. at 3:00 p.m. they put in an order for the corn they wanted, and that is what they get. they do not have any more or less, so they do not have been having costs of detention or dimmer ridge, and they don't have a lot of congestion at their plant. it like the concept of working with a short line. >> what percentage of your revenue comes from that partnership? >> at one time it was about 75%, and now it is about 48%, because we have grown quickly with other commodities. >> you do you want to continue to diversify the other areas? > we do. we handle the john deere tractor business. most experts -- mostly exports. union pacific came to us and said that we would like to focus on wind energy. >> i want to talk about that when we get back. dan sabin, owner and president of iowa northern railroad company. >> welcome back to "venture." i'm cris valerio, joined today by mr. dan sabin, president of iowa northern railroad. let's talk about the facility in manly, one of the biggest capital improvement projects that you have really had. tell us about that project and what it has done for business. >> we decided about at 5 years ago that as the ethanol industry matured, there were a lot of customers who built their plant on one single large railroad. we decided that as the market evolves on the renewable fuel standards showing what the building of the market would be, we took 100 acres and joined with a family from buffalo center that had a company that is an ethanol truck company. we put together a joint venture can put together about a $60 million facility so that people could market their ethanol all over, depending on where the best markets were in a given time. if there were on a western carrier, which they had access to los angeles or texas, the best market might be new york harbor. we had good freight rates with the eastern carriers. we were able to work out means of having that ethanol truck into manley, we would state it, and then build 100-car unit trains to albany or baltimore or wherever the market was hot. we have the customers tell us where they want to become and they're not captive to shippers. >> how much do you invest in that project? >> we start with $1 million apiece, and we borrowed $4 million, and then we had another company, a large chemical truck company, and we kind of pooled our resources and ended up getting nearly 20 milly dollar facility built with only about $4 million in debt. >> you have since made that money back at this point? >> it is still a work in progress. we're looking at fairly large expansions. our goal is that there will be 1 billion gallons of ethanol by about 2012. we are about 300 million gallons right now. >> there have been changes on the political landscape with rights to ethanol. one of which is that there certainly has been an epa plan to measure biofuels'effect on land cultivation. also, the obama administration is encouraging other types of renewable energy outside of ethanol. do you have concerns that the energy might not take off as much or reap as much, and therefore have an effect on your bottom line, your revenue? >> we don't. we think the renewable fuel standard will hold a fairly high percentage of ethanol. yet within 300 miles of manley, i walkout is 60% of all the ethanol produced in the country. we have a reputation for high- quality service and routing options. we are also focus on cellulosic ethanol, conversion of crop waste into fuel with the cap and trade situation now in carbon credits, we expect it 20 or 25% of the coal burning plants will have to blend a biomass products. we are looking at the concept of having crop waste palletized and then shipped to utility plants and exported worldwide as a fuel. >> diversifying keep your company. you mentioned wind power. talk a bit about how you guys have gotten in on that area. > you can look in almost any direction nc about 300 or 400 wind turbines. union pacific came to us and said that it wanted to focus attention on the wind energy, and moving the components. half 5 for six sides selected. manley, iowa, his right where they wanted to be. it lot of the origination start on short lines. then u.p. brings them from california and texas, the east coast, canada. we are now looking at about 3000 this year. >> we are with mr. dan sabin from the iowa northern railway company. >> welcome back to "venture." i am cris valerio, here with dan sabin from the iowa northern railway company. let's talk about the flood, first off. it damaged one of your main bridges. >> unfortunately, end pacific came to our rescue. -- fortunately, a union pacific came to our rescue. they said let's work together to really 80 your customers. adm being out biggest customer at the time, they stepped up to the plate and prepaid their freight bill for a while so that there would be cashed for the peril. canadian national has come in now. we have a shorter detail for similar quarter for them. my son is active in government affairs. the day the bridge when down, he was on the phone with a congressman's staff from our district in iowa. he did an act of congress to get the money put together. it was just awarded to us a couple of weeks ago. it will cover our portion. >> how much do you expect revenue to gain this year, or do you expect a decrease this year? >> the way it is looking, we will have a 3% growth in 2009 over 2008. we were predicting 40% before the bridge when down. once we get the bridge done in october, we are looking about 59% growth next year with all the new companies -- customers coming on line. >> where are they coming from? >> a new ethanol plant is on the line. we are able to consolidate some volumes. manley terminal is developing a lot of new commodities. >> freight railroad for the month of may was down 24.7% compared to last year. the big guys are obviously having a hard time. is it because of the short lines that they are just being able to weather this more? >> i think so. we are also fortunate geographically. we have an agricultural base, it will have to move regardless of the economy. we have also seen that the areas that affected us -- a findi -- financing issues that are hurting now, and we used to do tractors to russia. the wind industry has about 5% growth in -- 500% growth in wind components this year, but it was expected to be 1000%. we put most of our employees on a four-day week right now. that hurts. we don't want to do that. we decided to do that instead of cutting back the staff. we reduced train service to coincide a bit more with the demands. " we expect that once the bridge is back, we will crank up again by about 40% in activity. >> congress is trying to pass a bill to overhaul the regulatory area. a lot of the railroads are against it. >> we are concerned that if there is a major regulation, it will hurt our ability to price competively, and capital spending is the big thing. the billions of dollars spent in the railroad industry fbr by private companies. -- every year or by private companies. if we start getting more regulated, the ability to constantly reinvest and increase capacity is going to be damaged civilian. -- damaged severely. >> <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006246"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006246" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Business,Economy,Transportation,rail http://player.clipsyndicate.com/view/225/1006243 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1006243?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/3/58/351/f1b5e7e6-9e9b-47df-9c3a-d5296e00fd09_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Interview and discussion with the Chairman and C.E.O. of Union Pacific, James Young. He talks about how his company handle the economic downturn and their plans to further success. (Bloomberg News)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1006243?cpt=8&wpid=140 Fri, 03 Jul 2009 14:01:08 +0000 Spotlight - Rail Business Interview and discussion with the Chairman and C.E.O. of Union Pacific, James Young. He talks about how his company handle the economic downturn and their plans to further success. (Bloomberg News) http://www.clipsyndicate.com/video/playlist/225/1006243?cpt=8&wpid=140 Bloomberg are turning to them to haul goods. i sat down with kim young, chairman and ceo of union pacific, to talk about how the company is now getting the economic downturn. > railroads are a barometer of the economy. based on the calls i get from economists around the economy, they're asking what do we see. everybody's looking for good news and signs. what i see is this -- after a very strong drop in the loading, when you go back about six months ago, the best news i can see is that it is may be stabilized. but i will tell you that i do not see anything that suggests is moving to the positive. coming down, you have to stabilize before you move up. there are some good signs that i see with customers that are making more inquiries in terms of if they start up a plan, at a shift. are we ready to handle their business? i tell them that i will take the order right now. we have a lot of assets out there. i just don't see any right now and that says we have a positive move yet. > cautiously optimistic. at any at the time that you have been in the rail business, have you seen anything similar to the downturn that you are experiencing right now? >> no, and i have been in the business for about 31 years. when you look back at prior recessions, this is unmatched. i think what is unique about this one is that there is a significant international component. good economists always look at trends come and they try to refer backwards to what happened in prior cycles. this one is unique. the international peace of this is pretty dramatic. when you look at the impact on our economy in terms of what we are at right now. >> expand on that, the international peace. > you think about the last, i would say, meaning " recession, probably the early 1980's. it looked at what has happened in that time line, production continuing to move off, china, mexico, in terms of consumer goods, auto production has continued to migrate outside of the united states. china being a consumer. again, you always think about input business coming into the country. we are also, when you look at the peak of our economy, exporting products to china, or steel. this is a much greater economic downturn than just the u.s. alone. >> when you the clues in terms of business improving, what will you be looking for? how much lead time you have in the real business for some type of turnaround? is a very quick, or do you have several weeks or months? >> it can turn around very quickly. you go back to 2003 to 2004, where you had a mild recession and you came out and that timeline, we went from -- our volume grew in a six-month time when about 10% to 15%. it is a pretty quick turn. we take a look at inventories. obviously, you're finished automobiles. you look at inventories in terms of coal that project out. you followed retail sales, you follow consumer confidence. there is one thing that i feel is important, that we know inventory levels are being managed a very tightly. if you get some kick in demand, consumer demand, he was a production start up pretty quickly. -- you will see a production start up pretty quickly. i wish i could see i could see that demand at this point, but not right now. > automobiles is a large part of union pacific's business. the company has been forced to become more nimble as the auto industry struggles for its life. revenues for automatic transfer or down 55% in the first quarter. that is pretty significant. what are you doing to shift that auto business that has been lost as we see the auto companies in shambles, pretty much? >> the first thing we're doing is making sure that we do not slip in service. you absolutely, at a time like this, when you think about the cris that many companies are under, you can take your eye off of the things that are important -- for us come in my business, it is safety and service. the auto industry today -- you hit the numbers. we are down almost 50%. i do not see that changing right now. chrysler, with the bankruptcy, is shut down. general motors will likely be shut down for a while. rail is the best way to move finished vehicles. we may have a smaller network long term. >> outside of the auto industry, which we know is struggling, what are other segments of your business telling you -- energy, agriculture -- what are those customers saying? >> one of the things that is historically in our business, ", that has been a pretty stable business for us -- coal, that has been a pretty stable business for us. the whole market is down. but they have seen, obviously, is a downturn in electric demand, power demand. i also tell you that long term, coal is part of the equation. in a lot of cases, the utilities on their own cars. as we turn these cars faster, we save money. the ag sector -- i don't think that food consumption in the world is changing dramatically. you have some pressure today where more people eat at home and at restaurants. you consume less food. but it does not change the equation in terms of world population, diets, when you think about products. long-term, the business will be a big business. the rest, you get into steel production, cement, lumber, chemicals. >> those are down significantly. >> reflects the industrial sector in terms of the economy. customers are looking at how they can reduce their costs. that means we have customers that are talking to us that in many cases never considered rail. >> let me ask you about at some of the business, ethanol -- a segment of the business, ethanol. it does not seem like it is turning out to be a big business. >> it is still a very good business. it has slowed down some. a lot of dynamics in the market with the price of corn, and you a bankruptcy's with some other producers that i cycling through. but the fact of the matter is that unless the new administration changes their perspective on ethanol, i still see as a growth business. california-based their standard in terms of requiring -- california raised their standard in terms of requiring ethanol over the next two years. what has happened is that it has slowed down from almost no business to a substantial business, a significant double- digit kind of growth in numbers. i think it will be more of a high single-digit never. >> it has been a cost-cutting story for the railroads. with union pacific being among the most aggressive. the company plans to reduce headcount by as many as 4000 more workers in this year. that is in addition to the 5200 train operators already furloughed. will it be enough to weather the worst recession in decades? how much more can you reduce? is there anything left to cut in terms of cost at union pacific? >> volumes continue to deteriorate, then you will reduce the number of train starts and double -- that will end up in more furloughs. i feel good about our team. they understand financial dynamics. i have people come in where they have looked at spending pay a fat that said, you know what, we do not need to do this now. it would be very easy for me to say that everybody takes 20% out. corporate america is littered with corporations over time where they went too far too fast. what i have done with our team is to say that you understand the seriousness of the situation. i expect you to take a hard look of what you are spending money, and they have done very well. there is more we can do, but i will also tell you that this is still in many ways a business that is a high fixed cost investment. when you look at locomotives, i have over two dozen locomotives in storage right now. -- over 2000 locomotives in storage right now. there is no model that -- what we are trying to do is work our way through this year. those 2000 locomotives -- there is no market for them, they are on the books. the investment -- we have made a new railroad that is still there. we can do more, but that eventually is a limit in terms of how far you can go. we are also doing some things in trying to retain labor. we introduced a program called alternative worth that instead of the traditional model, where you are a road employees, conductor, you were furloughed and he lost to benefits and pay. what we did last summer was introduced a program that, for a certain percentage of our employees, was paying 100% of benefits and breeding work a seven to eight days a week. -- bringing work the seventh eight days a week. >> that leaves you with $7 billion of assets with a sitting idle. how much longer can you have those assets sitting idle in terms of workers and trains and other things, waiting for this turnaround? >> no one predicted this kind of a volume downturn. even my experienced planners within the company, in their definition of the serious downturn was maybe 10% reduction in volume. we are running today over 20%. you cannot stand business with the $7 billion of assets not generating revenues. what we are able to do in the labor side right now is -- you read a lot about baby boomers' retirement. paul guess what? it is happening. we're seeing good attrition in our numbers come up losing 3000, 4000 employees due to attrition this year, and that allows me to size the work force is here, get the folks who are furloughed today back to work. >> you had a representative from the united transport union who praised you for handling the furloughs the weight that you are in terms of keeping some people on board with benefits and such. what lessons really have you learned over time in terms of labor, the union, and what lessons do you think you are going to take away from the downturn in terms of labor? >> we are about 95% union in terms of delivering jobs. 12 or 13 different unions that have an impact on our business. you always come in many cases, how this might set up what is right -- have this mind set of what is right. there issues that we need to fight over. the unions, the presidents, they recognize -- they are smart people, they understand the business -- they recognize what the potential negative is it the wrong legislation passes in d.c. this is a much better environment. our industry went from an environment with the mergers you the -- back over the last 15 or 20 years, the discussion was always about downsizing. for the last three or four years, we were hiring. i will tell you, it is much more enjoyable to run a business that is growing and hiring then where we are today. i am confident that our leadership of the unions understand the consequences. >> pricing has been depressed. what are you doing in terms of pricing, trying to keep it as stable as possible during this time when volumes are down and business is low? > pricing in real terms is still down. it is only in the last two years that the industry has gotten positive pricing. the actual core price was up 5% to 6%. separate price from fuel charges. fuel was down. our average revenue per unit was only about 1% in the first quarter. what we're doing is selling the value proposition. we have proven time and time again that good service -- customers see the value and are willing to pay higher price for that, and in saves money. if they owned equipment, it will reduce their investment in equipment long term. i will not tell you that the environment isn't tough. the truck sector is very aggressive in pricing. this industry can sustain growth capital and finance returns and we have got to continue to work on price. >> how long do you anticipate the depression in pricing? to you get any leverage at all in the next three to six months, a year? it is pretty much make in for 2009 -- >> what i said to our shareholders, we did 5% to 6% in the first quarter. next year, we are expecting some slight recovery in the economy. i think we can still see positive price in terms of what - again, you have legacy contracts -- say, a 10-year legacy deal in the markets. in some areas, it is pretty soft. i am assuming we will see some economic recovery, at least next year. >> the stimulus bill signed by president obama and several months ago was sold as a way to get the economy moving with the dollars targeted for infrastructure projects. > i think timing is probably the key issue here. you think about repairing highway infrastructure, the rails will be involved in this man, stone, steel, lumber that is involved in that type of production. i think the best guess right now is that of the stimulus effect might be the second half of the year in terms of my money will flow. my concern is that the negative side is that a lot of states are struggling in terms of their budgets and revenue flow. you may get some stimulus to affect -- stimulus to the effect, but because of the problems at the state level, you may end up reducing their projects. all i can tell you is that we had inquiries on projects but we're not seeing any at this point in terms of actual shipments. >> when that starts to move, do you anticipate that being a segment that moves quickly? >> the goal of the stimulus money is that you have a product ready to go. again, the goal is to get people back to work, start spending money and getting projects back to work. those projects, if they start to move, could move fairly quickly. >> can you pinpoint where the recovery in your business might start first? what segment? would it be in the materials area? would it be in agri -- not cars, probably come up but where do you anticipate that? >> you are asking me to predict the future. when i think from this point of what other potentials for some upside, i think there will be peaks of shipping season this year. what is that all about? however the shipping a come import goods coming in? -- how is the shipping, import goods coming in? we will see that in the middle of summer, maybe august. i think the agribusiness will turn around in the fall in terms of where we are at. ulysses and optic their print this might surprise you, but i think -- you will see some opted there. this might surprise you, but i think the auto business will come up from the extreme lows and start to pick up slightly on the back end. > why do you think that? > the rails today, some of the incentives -- being paid to turn in your collector -- clunker. >> investors seat union pacific's balance sheet as relatively solid. it pay down about $250 million of its debt. cash on the balance sheet is roughly $1.5 billion. union pacific also recently declared a 27-cent-per-share dividend. i asked jim young about what else the company plans to do with the cash. >> we consciously last year, the middle of the year, decided that we need -- things are not looking very well here next year. we started build cash. we ended the year at about 1 billion on the books. we were not buying the shares back right now we had a good program of buying back. i still think of a 35 million shares to buy back. we put that on hold until we see things turning around here. we are being conservative in terms of reducing some of the capital spending to about $2.6 billion this year, again, to generate cash. what i told employees, shareholders, is that we will get through this and we are a strong company and we have the financial worst hour -- have the financial horsepower to withstand a sustained recession. >> in 2004, the company was unprepared for an economic rebound after cutting its staff to the bone. >> we were very aggressive in cost. we had acquired some companies over the years that were not healthy with their infrastructure. we still have some challenges with them. we learned a tough lesson. customers have long memories. we still have business that we lost with our inability to support customers that time that probably should be backed in u.p. when you rember the lesson, do you understand what the drivers were out there? understanding your network capability, what is the ability of your factory, to use that analogy, to produce that at an efficient level of volume? for us, it is about 200,000 carloads a week. that is what we pay debts as with our investment of work that that will be the optimum point. we are running 140,000 carloads a weak right now. a huge spread there. >> there was that that the crash between the metro -- that deadly crash at the matter of getting a lot of attention this year. you and union pacific have at that face outward from the train. there is talk about cameras inside of the train in terms of the cabin, and, as well, voice recorders, as they have on airlines. do you think that is warranted, an extra step of safety that you would want? >> the airline industry has said today. you could argue that would improve safety. what we are trying to do, though, is work with our employees -- they want to go home at night, at the end of the day, and what we are trying to reinforce it is a tension in the cabin, rules compliance, taking care of each other. and something unique in our industry, which is instead of me mandating safety, you care about your beer. it is a. . and safety. -- you care about your peer. it is a peer-to-peer kind of safety. you have the capability to intervene without a consequence. the tragedy in california is that you have one person sitting up in the cab. the freight rail, you we have a minimum of two. >> there have been some initiatives that end pacific -- at union pacific and other bills in terms of green. you have something called the green toad. - green goat. >> it is battery operated technology. it is a hybrid. it is more of what is used in yards when you are in a local community. they are good in terms of fuel efficiency, significantly reducing emissions. when you think about the primary battery power, emissions are zero. our industry takes very seriously how we are viewed in the community. we're not an industry that can pick up of short. >> when you look at your hybrid strategy with the locomotive, where do you see it in the next three to five years? >> we on about 8000 locomotives. the average life is 20 years. dramatic change will take time. new locomotives you buy today are substantially more fuel efficient, more emissions friendly than and locomotive produced in six or seven years ago. we have a natural progression. a program called distributed power it where instead of two or three locomotives in the front of the train, you have one in front or two in back, two in front or one in the back. they help with the dynamics of moving the trend over the train -- moving the train over the training. general electric, i believe, just announced that it will focus on a new hybrid road freight locomotives. the concept of there is simple, but it is straight out of the hybrid car. today if you are moving downhill, you are losing all the energy. what they will try to do is harness the energy in terms of the batteries cycle. we are the largest consumer in terms of the diesel fuels of really any company in an era got. last year we used about 1.2 billion gallons. energy efficiency is a huge leverage item. you can move a ton of freight on the railroad, about 450 miles, on one gallon of diesel fuel. it is a huge cost for us, that working with the manufacturers, we have to continue to improve. >> is there anything out there and it tends of new business that is creative, people have not seen before, you try to put in place now, so that when there is a rebound, you take advantage of it? >> do we have our refrigerator train project that goes out of california and to new york. would you have for lunch or dinner, chances are it was called on our -- it was hauled on our railroad. there is a logistics' arms of our business that can offer one- stop shopping to customers. they want real come across other business, where housing -- rail, carload business, where housing. >> when you look at union pacific years from now, does it look like a different business in terms of size or shape it that it does today? > if i could see the future -- part of my job is trying to see that. we are prepared for a slow recovery. that is what we are modeling today. but it still does not change to the long-term strategy safety. smart investment pays off for this business. he will not build another railroad in the united states. you think about what we have -- the rail system in america is unique it anywhere in the world. if you go to europe, china, some of the areas out here, it provides our producers with of very, very low-cost mode of transportation. i'm hoping i'm wrong with that the slow recovery, but either way, we are very good company. >> despite the turns in the economy, end pacific has every <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006243"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006243" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> NYSE:UNP Business,Economy,Transportation,rail http://player.clipsyndicate.com/view/225/1006225 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1006225?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/3/58/351/c1b8795c-4219-44b5-8ab2-8744bcfdca5e_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Interview and discussion with the President of the L.L.C., Jack Welch and his wife Suzy Welch. They talk about they're plans to launch Jack Welch Management Institute. (For The Record)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1006225?cpt=8&wpid=140 Fri, 03 Jul 2009 13:30:28 +0000 Spotlight - Business Education Interview and discussion with the President of the L.L.C., Jack Welch and his wife Suzy Welch. They talk about they're plans to launch Jack Welch Management Institute. (For The Record) http://www.clipsyndicate.com/video/playlist/225/1006225?cpt=8&wpid=140 Bloomberg suzy have decided it is not enough. they are launching an on-line in the program that is distinctly -- mine in the program that is distinctly jack welch. they are ready to launch a new institute. they sat down here with me at a plush new york restaurant just across from their home in midtown manhattan to talk about my business education had to be rethought and retooled. >> i have been falling on my education for about five years with an entrepreneur -- following online education for about five years with an entrepreneur who encourage me to get involved. i saw the way it can change lives. we can touch people who can keep working, veterans coming home, all kinds of audiences, and still earn money in their jobs. >> i think that just looking at it from a perspective of someone who knows jacked, he is fundamentally at an educator. this is the opportunity for him to take this teaching, teaching at mit and with other courses and books and so forth, and extend the reach and fulfil truly compete is. >> 10 years ago, "fortune" magazine called you the manager of the century. what did it take you so long to do this? >> i think it is now it there. but at first, on line has a certain thing to it. we will put out the highest quality mba program out there. this will not be a mba mill. it will be quality education and quality curriculum with outstanding faculty from the best schools in the country. >> give us the numbers on the inner-city. would you expect with enrollment and profit? >> in the first year, we are open -- are hoping for 500 to 1000 students. >> we are really inventing something. this has not been done before, for profit, and we have these resources to bring on great people. this high-quality online education with the stock philosophy embedded in the traditional mba has not been done before, so we will learn as we go. >> you of logic is at a time when people are very worried about the jobs -- you are launching this at a time when people are very worried about their jobs and paying their bills. education can sometimes take a back seat when you are in the workforce. how do you pay for an mba, essentially? >> this is the best time. people are uncertain about the future and a note they need more education. online education is booming. people are seeing it as a way to upgrade themselves, get themselves better positions in the workforce. >> without taking the risk of leaving their jobs. >> tell me what you think is wrong with mba school as they stand? there is a lot of things right. we are not in the camp that says that everything is wrong with mba education on-line and off, but there is something we can overcome online, that in most programs, it is not a global enough. we will have every global aspect, first of all to our students, but also in the philosophy. and there are sellers of marketing and finance and strategy, and that is not the way business is done. we are going to make it part of the program. > we are not anti-mba's. we like them and hire them. we just want to enrich the experience. >> do you think the -- what do you think those schools have a responsibility to teach after this crisis? > a key discussion of ethics and compensation. i taught a course this year at mit where we said that week when we would talk about the top, the bailout of the automotive company. how could a faculty teach the same course in the fall and spring of 2008, 2009, that they talk in 2006 and 2007? to many of them work. with an on-line school, we can adapt to the times and bring today's business every week in this course. i will be on line, video, talking about the week's events. here is what happened this week. let's debate it. >> that is what the technology enables. here is an opportunity for jack to speak directly to the students every week about very current events, and then have people waiting in -- writing in online, at debating each other. a student in romania could be talking about what is going on with a student in japan, facilitated by jack's comments. that is a unique experience. > are you going to be in fees in ge management techniques into the courses? > the philosophy i believe in an african about in two books, the philosophy we might -- i believe in and have written about in two books, the philosophy we do every week, that will be overlaid over the traditional way. a student will be able to debate what is in a textbook but a professor at the best of both. >> from teaching to tweeting. >> ridiculous, ridiculous, absolute political grandstanding. >> has him so steamed? >> jack and is easy welch not only teach, they -- suzy welch not only teach, they tweet. they also go on tours and write a column for "and business week" magazine. the jump on the latest internet fat because they say it makes them better what they do. > it is a ticket is a kick to be able to get up in the morning and have some thoughts and put them out there and watch people respond to your ideas. you have hundreds of thousands of people responding. last weekend, we were going to do our call and we had a whole bunch of questions to answer. what is on everyone's mind out there? we wrote "we have got to write our column for tomorrow. give us some questions." several hundred questions came in instantly. there were fantastic. we used one about president obama, is he going to fast? and we took that -- that was not from one person, that was from several. we have communication. we test ideas out there. you have a real feel for what is out there. i'd love it. >> we would like to have fun, obviously. i think we're sort of connection and junkies. we like connecting with people. we talked with every single person on line. it is just our personality. we have similar personalities. tweeting is made for us. when i first learned about twitter, i learned a few weeks before jack started, i said, " oh, my god, this is made for you." i knew where we were going. it worked out great. >> this morning i tweeted about david ortiz. he had a home run last night and several in the last week. i said that it looks like david is hitting the ball. >> that is fine. that is the bottom line with tweeting, it's fun. >> what did you talk to barney frank about? >> i did not talk to him. he is pushing on lightening up the standards for fannie mae and freddie mac. as a key cause enough trouble? he went out and did that before in the housing crisis. >> that brings up an interesting point, because you had one. tweeted about the "new york times" labor discussions with " the boston globe," and that generated news reports. you ever thought that people pick up on it and you have to set yourself? > note. is what i believe. why would i want a sense of myself. i do not worry about whether i am saying something that -- > should no business person do without one? >> it is a personality thing. >> if you are running a company, you have to be a lot more careful than if you're a citizen. i am not sure every ceo should be doing this. >> you think it will make money? >> that is the question. >> it is really important for us to get a sense -- trying ideas out. some are not so good. you always want to have voices coming at you to test your ideas. it is a great medium, in my view. > what are marcs to viewers and readers -- in this day and age, what i the most concerned about? > it is jobs, and on the political side, the pace of change, whether it is right or wrong, doing too much, if we have to do it. you get both sides of that argument. > people are demoralized, just to try to get my arms around the trends were paid a lot of questions about iran, but people saying that the team is demoralize and had why motivate them? i am afraid that if i use my energy, i will be one of the people that go. there is fear and concern, but exhaustion with the recession. >> how does that fear turned optimism? jack welch answers that. plus, find out the hot button issue that has them up in arms. >> welcome back to "for the record." i am betty liu. jack welch is an optimist when it comes to how the u.s. economy will fare in the long run. but at in president obama is budget plans and the well to speak or read victor, one that has been convinced that the president is leading down the wrong path. while the u.s. economy is not falling as much as it was a few months ago -- >> we have not seen an uptick. we are bumping along. this economy has a lot of way to go before we get out of this. we are deleveraging. when you deleverage that much debt and people start saving and governments start saving, it is going to take time. i have been quoted several times as saying that ben bernanke, hank paulson, there are national heroes for what they did last fall when it was close to breaking out. we were close to the end of the ball game. >> they are being raked over the coals right now, though. > ridiculous, ridiculous, absolute political grandstanding. they did a fantastic job. societies do this. > one thing we cannot question is ben bernanke's motives. he is a great american who loves america. what would be his motivation except to save the system from destruction? he was looking at the entire ship going to the bottom of the sea. if he did what he is accused of, his motives were so noble. it to be crucified now seems political. >> there is a lot of debate about whether or not he should go another term when his term is up in january. do you feel that he deserves to get another term? > absolutely, 100%. > let me ask you also about the panel you were at at bloomberg. > his plan for the next five years cannot happen. >> what i took away from that is that the war is not over, the economic crisis is not over. when do you think it will be not even when, but how is it going to be over? >> it will be over when confidence is gradually brought back into the system. we have two things happening. unemployment is a lagging indicator, normally. but in a case like this, when you have such massive unemployment in such a short time, 14 months, you don't get buying power of a quickly after that. -- very quickly after that. people are not spending the way they spent before. the recovery will be slower. >> does that mean less americans have to adjust to a level of growth than for the long term? - the world level of growth than the long-term threa? >> the president's forecast of a 4% growth is not doable. we did not do it in the 1970's, 1980's, 1990's. it is larger than he is going to bed. we have a top line that as high, to stop in more programs, and the deficit does not look as bad. if we all agree 2% -- if we get up to 2% -- >> something will give. what is going to give? >> when a leader in a company has all kinds of programs that puts in big sales numbers, then he puts in the programs, and then at the end of the year it comes in the bottom line is terrible, because he did not get the top line, so something has to give next year. you cannot have those programs. we are in for a huge tax increase. >> on the corporate, personal income -- > everyone is going to be taxed. >> there was only one way to close that gap. >> as the legacy of jack welch focused too much on short-term targets? the legendary cdo defends his 20-year record. and sage advice that any mba she started to hear. -- students should hear. > it is often said that jack welch's legacy of never missing short-term targets for 20 years has become a source of pride and a burden for ceo's. should chief executives be so focused on short-term goals? how else can they communicate their success? >> at a time like this, we have to communicate like we have never communicated before. employees need to know what is happening. employees need to feel the economy and feel why we are doing things what is available at all the time. it is not a once-a-month communication. it is constant. > at the panel, the moderator was asking you -- you had of legendary 20 years at ge, always at your short-term targets. but in this cris, companies failing to meet those targets and seeing their stocks go down because of that, in retrospect, do you think it was a good thing or a bad thing? >> meeting short-term targets? oh, absolutely. > you set the standard. > 20% growth over 20 years, that is long-term in my view. i always have a belief that you eat what you dream -- each of what you dream. each is being delivered in the short-term, dreaming is being delivered in the long term. any jerk can say that we will make the next quarter and squeeze everything out. come back and see me in five years. no, you have to do both. >> i mean, it is the essence of leadership, the balancing of those two. >> why the hell would i not meet my targets? > but do you entertain other ideas of how you can benchmark performance besides meeting revenue targets? >> three major measures -- are you delivering cash, or your employees engaged, really engaged in the mission, are you - are they feeling good about you, do the customers of your product? you get this right, you will come out pretty good in the long term. >> pretty much everything follows that. >> what do you say to and mba grad right now heading into the wide world where wall street is vilified and washington is the lender of last resort? >> i say that america is the greatest place in the world for growth and opportunity. the more education you can get, the better off you will be. >> the days of graduating and having the big expense account and having that tv version of what it is, that is over, but that is ok because it is incredibly fun. >> business kids coming out of school and coming to our institute -- it is a noble work. the government does not create anything. we give them the money from the efforts that we put in, and then they got the system. laws, regulations, foreign policy. it all comes to my help the economy. without help the economy, you have nothing. >> words of wisdom from two who want to infuse hope and idealism back into the world of business. whether it be fudging and online mba program -- launching an on- line mba program or a boxing about <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006225"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006225" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Business,Economy,Small Business,Government & Politics,Municipality http://player.clipsyndicate.com/view/225/1006190 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1006190?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/3/58/351/83e4d147-a13a-47ed-8b53-01493c35f409_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Interview and discussion with the Co-Founder of the Better World Books. He talks about how they business starts and how well things are going for them. (Bloomberg News)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1006190?cpt=8&wpid=140 Fri, 03 Jul 2009 13:00:17 +0000 Spotlight - Books With A Soul Interview and discussion with the Co-Founder of the Better World Books. He talks about how they business starts and how well things are going for them. (Bloomberg News) http://www.clipsyndicate.com/video/playlist/225/1006190?cpt=8&wpid=140 Bloomberg as a way to pay off the bar tab has become the eco-alternative to amazon. it turned a profit not just for them, but for literacy programs around the world. i'm cris valerio, and this is "venture." will come to "venture," the world of small business and big ideas. we welcome it xavier helgesen to the program. he turned online shopping into an easy way to change the world. online bookstores are nothing new, and searching for your own copy of "beauty and the beast) has never been easier. now you can also buy a better world, or least that is what a better world promises. this noted democrat -- this notre dame grad decided to create a bookstore for the assault. better world is used books from 1800 college campuses and 1500 libraries around the world. it pays as many as -- says as many as 40,000 books arrive every day to its warehouses. they sell the books through online marketplaces like amazon.com and their own on-line e-commerce site. they distribute many of these books directly to students in need all over the world, playing into the company calls its triple bottom line -- the economic, environmental, and social factors of the business. as of march of this year, the company has selected 23 million books, worth about $6.1 million, for its literacy partners. 2008 revenue is just 40% from the year before, cashing out at $30 million. he is taking his books of the bank. xavier helgesen is with us today. let's talk about the beginning. this was not that long ago, 2002, with two friends, and you guys just had an idea. >> we had a lot of leftover books around the apartment. our employed roommates at left and we were underemployed. we had a lot of time on our hands, so to these books and tried to sell them in the bookstore, but a lot of students do, and the bookstore was like, "these are not worth anything at." we posted them on behalf. -- half.com, and we were making more putting books in them in the morning and we were going to work all day. if you could get a bunch of these books in one place, you could do something pretty interesting. >> at what point did you take that idea and say "let's build a business model"? >> we were not sure if showed work at first. we had friends at a community center in indiana, and we said that we have this crazy idea that we would take a bunch of books, partner with you, about private notre dame, but we know that these are college textbooks and your average age is 12. we just need your back room for about three months, and we promised the books will be gone after people come back to school. the first book drive, we collected 200 bucks, and the first sales were $5,000. > you get all the money to the book's center? how did it work? >> we split the money with them in. we took out expenses and said that whatever is left, we would split it with you. we said what is the value that our nonprofit providers provide? clearly they provide a lot of value. they have the incentive to get the box, put the word out to recruit people. we do not give money to literacy out of profits. we get it straight out of the gross margin. >> the -- first thing i want asked so at what point did you build website? >> here is the great thing -- we did not raise money for the first five years. it was entirely on cash flow. we built a very strong cash flow model. when we took that bilks end, we would never pay anything other than the inbound shipping. we would pay the shipping, and we would also allocate money for our literacy partners. because that all happened after the point of sale, as long as we could get books in the door pretty efficiently, we could grow the business. it is not to say that we did not put a lot of personal credit card debt out there, but in the grand scheme of things, it helped us keep in very truth commission, because we were one under% employee-and-founder- owner. >> are you profitable at this point? > this year we are at break- even, which is where we wanted to be. we have deployed some of it and at losses in the first out of the year. > private investment? > very unique deal, the first investment that a group called the group capital did, specifically in out a social returns. we took 5% of the founders stock and gave the stock options to the literacy partners, which is going to vest over five years. based on, number one, how they do on literacy, and number two, how they help us collect books. if there is any deal on the table, merger, purchase, acquisition, our literacy partners will be with us negotiating in their best interests. >> let's talk about what the business guys. u.s. obviously built this very interesting model. how did you begin to organize the logistics'? >> we are lucky, because my co- founder and i are engineers at heart. we like to think through these things. i think the first purchase we made it was the bar code scanner. we started building all this crazy software early on to price the books and get them all the way out there on the web. >> xavier helgesen and we're talking about better world books. >> welcome back. i'm cris valerio. we are talking better world books, and the co-founder and xavier helgesen. very interesting business model we were talking about. let's backtrack again. we were talking about what this company actually does. give us a line of production of logistics that happens with what you guys do. >> maybe you are moving in your cleaning out your apartment and you have books to give away. he take them down to the brooklyn public library. brooklyn is one of our partners. any books they collect that they don't need for the individual collection, most of them, they go on to us and they say the "sell these on our behalf, we get a share of the money whenever you sell it, a literacy program gets their pick of the share of the money, and it is no cost to us." these are the books that customers see on the website when they are shopping for books. it will see books from the brooklyn public library, books from africa -- >> you have 1000 libraries nationwide? >> it is a really wide reach. everything from super small campuses to the biggest -- >> you give a percentage to the library, the school, a percentage to charity, and at one point, would you take? >> we take the difference between what we give them, the costs, and whatever is left over, our gross margin. >> where is your biggest overhead? you guys actually have 89 employees? >> no, we have over 200. this is a labor-intensive business, no question about it. every week we take in about 200,000 books. that is about three or four points and robert -- three or four barnes and noble superstores that come in our house. they are donated, or if we cannot find a home for them, they are recycled. the books we push out -- we also ship about 10,000 or 15,000 a day. we have a lot of work bringing them in, a lot of work picking them out. >> 1 -- what percentage of the books that are coming in are you actually able to sell? what percentage do have to recycle? >> about 50/50. some price. may not be very high, but some are very high. >> how do you decide? >> software. when we get a book, we stand the bar code and it software predicts if we can sell it or not. it is all home built. that is probably the biggest key to our success, the home brew software. real time pricing is the most interesting part of it. we price all these books on 18 different marketplaces. we price books in yen, pounds, euros, and we should all over the world. >> deicide those pricing points? is that the software that is deciding? >> what is really cool is that the old way to price the book is to take a 75% of the price and write it on a new margin and put it on the shelf. but you have to be competive anybody selling the book. sometimes you do not want to be the cheapest price on the internet. the software handles all that, basically algorithm-driven, and analytics team takes the high level approach it and says that you want to push more textbooks, you are not selling this book quick enough, and the prices rippled through. we take it from all these different web services and web sites and figure out what the market price is, how many copies we have come and set the price accordingly. > you guys are in college and you do the first model. how do you decide to start that analytic side of the team? where did you bring that in? how did those initial -- that has got to be huge, that proprietary system you have. > i had a tech startup before we did this. i had a little experience building software, building programs. we went out on the web and found this russian programming group that would build on my spec for $10 an hour. even in the early days, we were able to afford to have some programmers implementing. the first version of this offer was horrible. we just kept after it and put it 80 or 90 into the suffer at this point. super complex, super attuned to our business. we used to the toyota production system, and whenever somebody has a good idea, that could ripple through the software. >> this is patented, i'm assuming. have you thought about going out and renting or selling it? > that is a great question. there is a company that is a joint venture before that does exactly that. - joint venture we found that does exactly that. >> is that under the banner of the better world books company, a source of profits, helping with the social side of it? >> it is. the most important thing we do to support the social side is run a profitable business. >> stay with us. we are talking about better world books with an interesting business model. >> welcome back to "venture." i'm cris valerio. we are talking big xavier helgesen, one of the founders of better world books. we're talking about your system and how it is organized. it is in indiana warehouse. why did you decide to have it there? obviously, you went to notre dame. your headquarters is in atlanta. > we had a business competition early on in our history, a social venture competion. one of the judges became a mentor, and eventually as ceo of the company fairly early on. an experienced businessman who lived in atlanta and wanted to be ceo, but was not going to leave atlanta. we kind of built the foundation of a corporate office around that, and we have kind of grown it said that most of the corporate team is in atlanta, but all of our attack people, analytics people, and all of the operations is in indiana. >> are there challenges to growing so fast? >> growing -- in the early days, we were growing 300% a year, and last month we grew one under% year over year. -- we grew 100% year over year. it is a huge challenge. we have written the system to scale again and again and again. and also, people -- we are lucky to be in the company that provides meaning along with stock options and fast growth. that has attracted the top- quality people that a business our size would not normally be able to bring in. >> first off, why did you guys decide to include this as part of this business? > you know, it was a combination of design. we knew that the core of the business was going out and asking people to participate with us. we cannot just build -- > remind our viewers again -- this is giving books. > we needed to be ethical and transparent with our literacy partners. in addition, this was our founders of values. we wanted to make a change in the world, wanted to make a difference. this was so critical to us. what we thought was very interesting, that once we were committed wholeheartedly to it, we found more customers willing to come to us, it differentiated the brand, more partners willing to partner with us. >> you had some big names, correct? >> we had some huge names. we had ties with the some of the top internet companies, like amazon, ebay, google. it is great to be able to do this. we have had execs join us from sysco, earthling, some other pretty successful companies. > what a joining you for? >> one is a cfo. we just hired a vp of marketing. he has had a very successful career. a lot of some say that "i have always wanted to change the world, but i have a family to feed, i have a certain quality of living." trying to be able to do this -- we cannot pay wall street prices, but certainly more than most nonprofits. >> by the end of last quarter, you grade -- you guys raised $6.1 million for nonprofit -- your literacy partners. books for africa, invisible children -- those of the literacy partners. how did you decide on those specific ones? > one in seven people and adults cannot read. this is a huge problem. our long-term business strategy is to teach the world to read. it is not only a good thing to do for the world, but a great thing to do for the book business. in order to do that, we need to find groups that had models at scale, and if our customers chose to support us, and we had money that funneled through to them, we needed to be sure that they were really making a difference, putting books in the hands of kids and sending girls to school. that is addressed to the organization. >> how much do you think that value is added it to your customers and your profits? do you guys try to put a number to it? > it is built into the business. the fastest-growing part of our business is the direct website. more customers come straight to us because not only are we a good cause, but also good deal. that is the other thing. maybe a few people will be modest, but to reach our audience, you need a good deal. > welcome back "venture." i'm cris valerio. we're talking big save your helgesen, one of the co-founders of better world books. you guys are pretty green. i was reading on the web site at every order is shipped carbon- neutral with offsets. what does that mean? >> it is another market driven mechanism. it is not paying money out of profit, it is saying that we work with carbon fund and figured out the carbon imprint of shipping a book. we work that backwards and put that in the shopping cart. it is usually only 3 cents or 4 cents a book. most people leave it in there. we were able to plant a tremendous amount of trees. tens of thousands of dollars raised last year just from adding those pennies to the shopping cart. >> what does it cost to you? >> nothing. we just pass it through. they pay the extra cents on the order and we pass it through. > is that a good revenue source, recycling the books? is it a significant one? > it was until the market collapsed in recyclables. it is crazy. it is now break-even. they take it away and don't charges, but we do not get paid. >> you guys think you'll break even this year. do you think you will be profitable next year? >> absolutely. we spent a ton on technology, but we of a point where we will grow up and we have a great cfo now. >> one of the things that has increased is the traffic to your web site. 107% in the first nine months of the fiscal year. where is the traffic coming from? are you guys doing marketing? >> we are very lucky that a lot of it -- the top source's google, the second source's word of mouth. we have a ton of people coming through on paid ads. but we also got a great recommendations. the net promoters court is one of highest in the business, higher than some other online book sites. >> how much is your -- > i don't say, but it is not small. >> what about the social networking sites? does the marketing go pretty far? >> the great thing is that it does not cost us, other than the energy. we have 13,000 facebook fans. we won the "business week" most promising social enterprise award. we went to these 13,000 fans and said, "it would be great if you voted for us," and got 36% of the vote. >> you think this is good for the social cause and for the book business. it is obviously having a of a hard time, bookstore is. barnes and noble is down in the first quarter. what is your outlook for the industry? >> i am still very bullish on the printed book. used books is the right part of the market to be in. we are cheaper than a new book. i think that people are hurting. but these books are a great deal. the book industry in general, if you look at the world, the more educated someone is, the more financially secure they are, the more books they buy. most of the world, the people targeting with our literacy programs, are probably not going to buy a book online in the next few years. if more of these people came up to the level that you and i enjoy, there would be more book buyers in the world. >> that was xavier helgesen, co- founder of better world books. join us next week for "venture." <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006190"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006190" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Business,Entertainment,Economy,Small Business,Books http://player.clipsyndicate.com/view/225/1006160 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1006160?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/3/58/351/33057f4d-5c3e-4fa3-b37e-f532c0b4505a_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Unemployment swells to 9.5%, means 467,000 more people lost their job. (Political Capital)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1006160?cpt=8&wpid=140 Fri, 03 Jul 2009 12:21:25 +0000 Economy Under Unemployment Unemployment swells to 9.5%, means 467,000 more people lost their job. (Political Capital) http://www.clipsyndicate.com/video/playlist/225/1006160?cpt=8&wpid=140 Bloomberg week the unemployment rank swelled to 9.5%, 467,000 more people lost jobs last month. what's it mean? >> i sort of think the economy in this way. in the first quarter, we were in the ring with muhammad ali. we were getting hit every which way but up. now we're in the ring with floyd patterson. we're still getting it, but it doesn't feel as bad. the jobs market is going down, but it's not as bad as before. >> and we probably have seven or eight viewers who rember floyd patterson. >> great champion. >> let's talk about the short-term first. unemployment does remain stubbornly high. it's growing, yet markets are up 30%. some banks are starting to repay tarp funds. should i fel good? should i feel worried? >> i think you should feel a little bit better than you did earlier. but, you know, still worried. i mean, it's a lot like last year, right? in the middle of the year last year, we were starting to talk about a recovery, and then we sort of got hit by a double whammy of rising gas prices and then this sort of lehman bankruptcy. this time we got rising gas prices again, so that sort of throws into question whether we're going to get this recovery, but i think, you know, what's helping us this time is that the government, the central banks are determined that we won't have the sort of rerun of lehman. so knowing what we'll get is a recovery, but it's going to be sort of a feel-bad recovery. >> let's go back to the longer term. when will the jobless rate get back to what you economic experts call, i believe, the medium term equilibrium of 5%? >> well, there's a problem. some of the economic experts are saying that equilibrium rate is no longer 5%, it may be 6% or even higher. the reason for that is we've had a lot of jobs permanently destroyed, the automobile industry and, unfortunately, in the media industry, and we've also had, you know, what in the past were the big job creating states like california and florida. they're on their backs and will be on their back for a while. so even if you say the equilibrium rate is 6%, it's going take years and years to get back to <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006160"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006160" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Business,Economy,Government & Politics,Municipality http://player.clipsyndicate.com/view/225/1006156 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1006156?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/3/58/351/2ae89ddd-9f67-42e5-8227-9a2524e88116_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Interview and discussion with Barry Sternlicht of the Starwood Capital Group. He talks about how he end up with real estate business and the challenges they overcome. (For The Record)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1006156?cpt=8&wpid=140 Fri, 03 Jul 2009 11:31:12 +0000 Spotlight - Battle For Real Estate Interview and discussion with Barry Sternlicht of the Starwood Capital Group. He talks about how he end up with real estate business and the challenges they overcome. (For The Record) http://www.clipsyndicate.com/video/playlist/225/1006156?cpt=8&wpid=140 Bloomberg of 32 after starting a fund from the savings and loan crisis and almost doubling his partner's money in 18 months. he's 49 now, and he's done a lot since. he even created the starwood hotel chain. but ask him what he makes of today's mess in real estate, the plunging home prices, the emptying office towers, and he'll tell you there's never been a better time to invest. >> you can get things done when the markets get out of whack, which they're doing as we speak. you can get things done quickly, privately, with very few bidders. people come to you for certainty, and they come to you for speed of execution, because they have to get something done, they have to pay back a loan, they have to sell something quickly because they've got another obligation they have. and what that means and why that's interesting is you can earn excess returns. you can earn a great return for modest. and then there's an asimilar tree and more upside than downside, that's the market we like to plan. >> so it's become more of a buyer's market? >> most markets like this are characterized by guys who rember the value 18 months ago or three years ago, and they knew they'd turn down that bid for $2 hundred million for that office building, and today the building's worth $60 million probably, but they don't want to admit it, and so they hold on quarter to quarter, you're saying, for 60, 80, we want 60, we want 120, we're at 60, we want 90, and then they call us, one of the banks did two days ago, and said, ok, we'll take 60. ok, we'll be there tomorrow. we wait for those phone calls, and they come only in markets like this, only when people don't have time. now we may be the only capital. >> rewind the clock two, three, four years, and it's hard to believe the deals that were getting done and the prices they were fetching. fairmont hotels, $3.5 billion. extended stay, $4 billion. hilton, $19 billion. barry sternlicht just stoped trying, and he might have stayed on the sidelines had certain conditions not changed. >> energy group, security group, because i thought risk and reward had gotten way out of whack. there was a little bit of reward and lots of risk, and pricing was being driven by the lenders who were able to sell off. so prices were zooming up, and it wasn't the market i had started my firm in. the biggest difference today and two years ago, you can buy real estate at deep discounts. prices had risen to the point where prices were soaring in manhattan. they went from $100 to $500 just for the land. construction costs were going out of control. but rents were rising, so it still was sort of working. now the whole thing's gone in reverse. >> so you didn't believe it, or did you? >> commercial real estate, i did not believe it. i dent believe that buying office buildings at 3% yield and 4% yield and financing in the 6%, meaning you have negative spread, i departed from some of my peers in real estate, and we put our money where our mouth is. we invested $2 billion of equity in 2005 and only $180 million in 2007. we stopped buying. this has been a take no prisoners correction. >> what about all those real estate transactions that were done during the boom years with big leverage? hilton, extended stay, fairmont, any of those names. what happens to those transactions? >> we bid on all of them and lost them all, and their equity is, i would say, yield to death. you're going to go bankrupt. and they may have a chance to buy into debt and restructure their deals. but for the most part, there is not a piece of commercial property in the united states that's not down more than 10%. so most of us, even if we had 80% leverage yield or 70% leverage yield -- by the way, you couldn't buy anything unless you leveraged 80%. >> it was all cost of capital? >> it was all willingness to take on that leverage, how aggressive you were going to be with the underwriting of the rent going forward, and, to some extent, cost of capital. but guys were make ago loft money. they're buying a deal, 90% leverage with 17, selling it to a guy who wanted 14, selling it to a guy who wanted eight, and because they had very little quith, they were making very good returns, but it was musical chairs. and the music not only stopped, as them say, the orchestra left the room. >> blackstone group's steve schwartzman had one more deal left in him before the bubble burst. hilton hotels for almost a col $20 million. now hilton is on shakey ground, and it makes for uneasy conversation when is two real estate moguls get together to talk shop. a what do you and steve schwartzman talk about when you talk about that deal? that was the last big leverage deal done in real estate. >> i was buying hilton many times when i was buying hotels, and we couldn't get to that price. they did something very smart. they were able to finance quoting, so while the operating performances were coming down and probably - -- >> so were interest rates. so there's a certificate. they have breathing room. i mean, right now, if you had to sell it, they'd agree that equity's worth nothing. but four, five years from now, unclear. it's deals that i could see having some value. what happens to the loans that are defaulting? we saw saw, for example, the john hancock tower in boston. >> one of the most aggresive buyers in the country bought that building. and really, that was the poster child for the period of time they went through. just reviewing the loan books from a conduit, one of the conduits was the best forms, and we got 40 miles from them on one of the loans. they originated them, and it's interesting, because they never understood the markets. >> what doesn't mean to commercial real estate these days? how much risk do you have to stomach? how long till your bets pay off? where should you be buying? i asked barry stern lift. >> just have to invest. if you're really honest with yourself, in my opinion, commercial real estate has the office, retail shopping centers, malls, or industrial buildings. those major aset classes in real estate, i don't think you'll se income growth for three or four years. it's actually not a question of growth in rent, which we were underwriting. now it's a question of how far they'll fall and the stability to pay the event. and what you try to do is find positions where you can make it through the three, four-year talk. when you know that, over time, the rules increase demand, wil increase, there won't be any new supply, so the markets will begin to absorb and the cycle goes on. it will not be as tight as it was with 2007, 2006, the beginning of 2008, could be a long time, could be a decade. >> what else? what other cities face that kind of potential future? >> washington, d.c. expansion of the government is really good. >> financial capital of the world. >> i think the equity markets will be fine over time. i think boston will be ok. there are certain markets in the united states that are just trading markets. they have no barriers to entry. you know, the cities like houston and dallas, up get the money, they can build anything anywhere. then there are investing markets like boston, new york, washington, san francisco, where there are environmentalists, doyle build. we own our building, and it's leased to the state, and we're, a very good return on our investment. we just wait. >> so we talked for a moment about the potential for a turnaround eventually in the commercial market, but between now and then, whereas the trough? how much worse could it get? >> for commercial real estate, you're hearing it from everyone. the real estate horizon is filled with multiple land mines. every time one of these loans matures, it's going to - >> it's a chain reaction? ought a yeah, it's every one of these trades, all the information is going to roll through the markets and people are going to extrapolate them all, whatever happened. >> replaced on the basis of -- >> exactly. what we're trying to do today is buy debt, because the debt will pay you a yield today, and it will probably mature in 2011, 2012, 2013, and that will be the day of reckoning. every piece of commercial property will be able to carry the mortgage until the day of reckoning when it matures. and when it matures, we'll find out if you were going to get paid off or own the property, have a negotiation. so you've got -- you've got positive leverage, because the only leverage you can get today has to cover it, has debt coverage. and you can buy deep discounts. those are two of the ingredients you need to make money in commercial property. so the third, though, you is need absorption. you need markets to tighten. you need the economy to come out of this. and, you know, up got -- so i think in certain markets, the bell is going off. i think we can talk about the residential markets, and i think you are seeing a bottom forming in many markets. >> good. >> yeah. >> where in particular? >> the tristate region where we're sitting. california, florida, arizona, the markets that really started to fall in late 2005, 2006, that have now fallen 50%, 60%. i think those markets are beginning to bottom and maybe bottom. but selectively, because some people say prices could fall another 20% t. >> we think macro and invest micro. so we love that, because that means everyone runs to want hills. a lot of people might be overjoyed, frankly, to hear you say you think the bottom is forming in residential real estate, but does that mean you're rushing in to buy now? >> well, we're bidding on land. we have a venture with eight executives that cover the growth markets for us. we're losing lots. i think we're more negative on the recovery you can't get any leverage at all on land. there's no income. there's no income. i don't know in we're wrong. i think the big negative for home building is clearly unemployment. having said that, unemployment is 25% in detroit, but 4% in new orleans. i mean, we're not - the opportunity comes from the little, and what cities are really absorbing homes fastest and what's most affordable. >> but you like the markets that have fallen the furthest, florida, central california. is that where you think the opportunity exists right now? >> that's where we're loking. you know, in texas, carolina, one thing that's important in investing is you're creating a million householding a year, and 70% of them buy single-family homes. that's not going detroit. i mean, all that -- >> kind of matters. >> in st. louis, i mean, you know, springfield, massachusetts, there sent huge demand for a single family home today, because there would be in a normal market, guy moving out of a 30-year-old house, but he can't sell it. i think the new calculations in the home market are going to be the fiscal status of the state. because the states will try to raise property taxes. new york city just had a whopper. california is going to increase taxes. i think people -- and you've had a funny market, because normally people just move to the states. they leave their home in detroit and they go to florida. they leaf their home in mass scommass go to text, it, and leave california and go phoenix. they haven't been able to sell their house. so speak are stuck and can't move, so the markets are all screwed up. but this, too, will pass. the u.s. creates a million something householding a year and it has for 20 years and will for the next 20 years. and that will create demand. i like to tell my guys and in home building, it's a question of when you'l make money, not if. >> the public-private investment program, it it's what the government's counting on to clean up bank balance sheets and get credit flowing again to real estate. but for the idea to work, it's going to have to appeal to investors like sternlicht. >> i think the government is making a huge mistake not hurry up, because these bombs that ex-ploflede or beginning to really set off, people will panic. there are a gazillion dollars of this stuff, and if the rating agencies do what they will likely do, companies will blow over, and they will be a baskcase. and these are bags. insurance companies are thick, and they have a book. the government financing, everyone's nervous about the long tentacles of the government and how intrusive they're going to be, but knowing we're all waiting to see the rules of engagement here. what i don't want to see is them taking sides and letting them collude and price the market, and that's just a calamity and a joke. the government did one very smart deal, actually, and the precedent really cover t. they liquidated two banks in nevada and arizona. and they formed a law sharing with other guys that bid, and the deal was the government put up 80% of the money, you put up 20% of the money. let's say their account was worth $100 million, after they made $10 million, you got 20% of their profits. i actually thought that was a brilliant structure. they got 15 bids, which must have surprised them. and we bid. and why that was interesting is because they were in equity, they had 100 million, plus 100 million. we worked it out for them with the portfolio, after they got their $100 million, you got 20%, they got -- you go 80-20 on their money, so our new partners, the government, i thought that structure was fabulous. and i think a better structure than what they've come up with. >> of course, the ppip isn't the only helping hand being extended to bavepblgts there's also the tarp, plus federal guarantees for commercial paper and bond obligations, even if some of that money is getting used to finance private equity deals. j.p. morgan and wells and b of a, they don't do this. they never were in the business of raising private combith funds. they got out of the business. so goldman sachs and morgan stanley, they continue with tarp funds, because the government is helping them through this, but then they issued bonds, $15 billion of bonds backed by the government, and they can continue to do that. they borrow it at quasi government rates and then compete with us. that's just -- and g.e., with the commercial paper, and they can compete with the little guy? practically unamerican. we didn't cause any mess. why are we competing against ourselves? >> but what's the alternative? >> the government needs the other bank holing companies. they're supposed to a bank to take risk and to make loans f. i'm goldman sachs, i should be writing that loan on the commercial deal. i should be selling this piece to the government-sponsored fund, and he should take the whole loans. that is what the mortgage markets and the united states need. we need lenders to make reasonable loans and the banks to hold the piece so they can't sell off in triple-a markets supported by government credit. the cost of funds, and the meas even held by j.p. morgan and wells fargo and regions and p.n.c., that is the only thing getting this market moving again. >> when investors talk about real estate, they talk in capitalization rate, rent divided by price. they work like bond yields. as property prices rise, cap rates tend to fall, as low as 4% in 2007. now they're averaging 9%. if credit markets don't recover and prices keep dropping, here's what barry sternlicht says may happen. >> 20% cap rate. real estate goes to unleveraged deals, which i'm willing to buy the building now with my remaing capital that i have. and beginning the the return two ways. i can get there by the price dropping by half, or with some debt and a little bit of equity on top or 40% equity on top, but i will price what i need to earn on that building. i don't want to earn at 12% or 8% return, because i can go buy commercial-backed securities and earn triple-a. i can buy corporate bonds and earn 10%. >> we should an frayed of that scenario? >> oh, my gosh, yes. if you take the commercial outstanding, knock it down to 1.7 trilion, $1.7 trilion? >> yeah, that's a lot of money. time a yeah, especial until the banking system or an insurance company with these obligations and they'll be insolvent, every one of them. >> hotels might as well number barry stern lift's blood. he started the starwod chain in 195. he even created the w brand. sternlicht left that business in 2005 to focus on starwood capital, but he's back investing in hotels again. today he's working on a new project, a chain of green hotels he hopes to have up and running by the time the industry pulls out of the current slump. >> this is the fun part of what i do. when i came to the industry, you could walk into a room and you could tell the hotel brand. when i left the industry, you knew a westin looked like, a sheraton looked like. you see a picture of them and you can't tell it apart because of the commodity. commadity you can't price. you just go up and down with the sibling. i'm older now, and i have a couple of kids, and i've gotten much more involved in the environmental movement, and i think if you can do good and do green and make money on it, then you have a winning formula. this is the one logo. it tells you something about the brand immediately, it's not just a letter. you know, you can kind of get something different here. it is more expensive to build dreams today, but the materials keep getting better and prices are getting better, and the hardest part today, there's no financing. the inspiration for this property was pretty specific, and we were going to do something as a greenhouse, so it looks like an english greenhouse on sort of modern steroids. and this is a familiarous house in paris that we saw in an article, and i wanted our design team to go look at. and so we had an architect in miami to come one this. we bought the nigerian embassy across the street from the ritz carlton in washington. and you can see we've draped the hotel in images of green. i think one of the interiors will be comfortable. this is the really important to me, and quiet, and have a god water pressure. i think that there's a customer, just like w, that will pay more for this experience. if we can show people how to live green and they can do without sleeping in burlap and without eating carrots, they might actually take it home. for me, this works great, but if we use it as a role model on how to have a great experience in a healthy environment and have a carbon-neutral footprint and use les power and use less energy, it's a fabulous thing. >> you're getting back in the hotel business. how much worse could it get for those guys? >> this is worse than 9/11 for hotels. because it's the who economy and it's global. last june, you prkt that it would take -- or they would be limited to 18 months of pain. that would take us to the end of this year. do you think at this point that things might begin to look up by the end of this year or is that not to optimistic? >> dfrpblt parts of the markets will behave differently. but generically, up stil see supply, that's got to clear. there won't be many new hotels built. i think you'll see demand begin to creep up middle of next year . and i could be totally wrong. we'll se people trade down. the lower you go, the better you are probably right now. until it's chic to spend money again, right now it's an era of consumption. we've done a 180 from where we were. wealthy people have lost a lot of money. some of them lost 70% of their net worth. others, 50%. they still have enough money to go to the resort, but they're not going. for lots of reasons, them just don't want to go. and they're driving and they're going to vermont or they're going to california. but right now with your neighbor not having a job five people you know teetering, you don't want to brag. it's just a different kind of -- like, this is family time. that will change. americans are very optimistic, and knowing they'll get out and they'll have the nice vacation again. >> we're talking maybe just four seasons, that kind of thing? >> corporate profit is going to be bad for a while, so they'll come back, and the lower end, i would think, will do better. and this is a good time to watch. occupancy is down. i just came back from shanghai and beijing, and i stayed in beautiful park hyatt hotels, magazine enough gent, 35% occupancy in china. we have exposure in paris, and i don't know if there's a single hotel market in the world that's up in the whole world. and the decrease in global trade and what's going to happen in eastern europe without credit, i think it's early to make giant bets t. i am comforted by the costs. i think global travel is a great business. you're going to have a billion-plus chinese and a billion-plus indians that will become middle class. they will travel, and they travel within their sphere, but they will travel, and they're new and they create demand. i mean, this is really going to be brazil and russia. i'm just not sure it's going to be the american decade. they have a bigger drivers of growth than we do. but inflation may come back. there's no better asset class in the world than hotels. we've followed inflation every day. you can buy hotels unbelievably cheaply, and so if you can afford to wait, then you can make money over the five-year. >> so god to be building or thinking about building, good to be in a position to buy, terrible, perhaps, to be an owner. >> well, if you were to start today -- yeah, if you bought the last couple of years, you're not happy. but trophy asets, they always have buyers, and people buy -- like they buy soccer teams. they buy beautiful hotels. and like they buy nfl franchises, they buy hotels. so there's a line from here to the end of earth of lovely families. >> talking to barry sternlicht, it's hard not to envision pretty dismal future for real estate. you heard him discus the commercial market. the government's relief effort, and a doomsday scenario even he doesn't to want see. that may be scaring away sternlicht's competitors, but it's luring new investors to starwood. >> you think about it, the pension funds are run with model that has they have put 10% of your fund in real estate. and every time the dow rallies, that's another $25 billion, and they have to put it in real estate. so what happens, prices go up. then the stock market drops, and every endowment is worth less, and some are worth less than that. so they're nervous. and we're in a liquid asset class, and this is the best time. what you see in markets like this, we're seeing where families come out, which is how i started this firm. we're seeing private investors. >> conservative money. >> guys who understand risk and reward, guys who can say, you know, owning this hotel in paris today is the most incredible opportunity. i'll never have a chance to buy this. they want to buy great real estate that they can take a long-term view towards and say, in 20 years, this is worth more than it is today and leave it to their kids. so you're seeing money from that i land and pakistan and switzerland, from families that i have never heard of. we had a contract from an egyptian family, and i can't even find them, but they're going to stroke 145 million euro pound check, that's $300 million, and i asure you, that's not the only money they have. so this is how -- when i started starwood, i was backed by the patriots kerr family and the vanderbilt, the burden family, and that was the only money we could raise from family money. they saw through the chaos and said, oh, there's no one here, we want to be here. and i think that's today. i mean, we're in the market with our funds, and we're definitely -- we love when we get the call on a deal. >> barry sternlicht thinks he's in pretty good shape. unlike many of his rivals, starwood capital didn't pile on excessive leverage during the <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006156"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006156" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Business,Economy,Real Estate,Government & Politics,Municipality http://player.clipsyndicate.com/view/225/1006150 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1006150?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/3/58/351/00f84545-6399-4b7e-bc5c-aa259be58eff_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Interview and discussion with the Rosenwach Tank President, Andy Rosenwach. He talks about how his company starts and its outlook for the future. (Bloomberg News)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1006150?cpt=8&wpid=140 Fri, 03 Jul 2009 11:00:51 +0000 Spotlight - Manhattan Tanks Interview and discussion with the Rosenwach Tank President, Andy Rosenwach. He talks about how his company starts and its outlook for the future. (Bloomberg News) http://www.clipsyndicate.com/video/playlist/225/1006150?cpt=8&wpid=140 Bloomberg the world of small business and big ideas. we welcome andy rosenwach to the program. in the late 18 hundred's, his great-grandfather, an immigrant from poland, bought the company for $5. and now, rosenwach is the leading tank manufacturer and servicing company in manhattan. >> paris has the eiffel tower, and new york has the water tower. rosenwach says this, and he isn't kidding. rooftop water tanks have been an integral part of the new york skyline for more than a century. the name behind the iconic tanks is rosenwach. see the signature branding on some of the city's best-known buildings? in case you were wondering, the tanks store water for drinking, bathing, and flushing. they also help with fire protection for the buildings blofment it's a family business that spans four generations. andy's son is now starting to take the reins. they're not alone in the market, though. their one major rival, isaacs brothers, is also steeped in tradition. they've been around since the 1800's as wel, but unlike the isaacs brothers, the rose spend wach is right in brooklyn. plus, rosenwach can break down an old water tank and assemble a new one again in only 10 hours. them move quick, just like the rest of new york city, but with new technology and a constantly changing skyline, will the water tanks become a relic of the past? thank you so much for joining us. i got to say i'm pretty exciting. are those water tanks? so want to start of, i got a history lesson when i started researching for this interview, and i was reading about kind of where these water tanks came from, and the new york historical society was saying that they have indoor plumbing in new york, began kind of in the 1840's, and then all the tall buildings started popping up after the civil war, and that's when these tanks started coming in. now, your company was actually founded 30 years before your family owned it, is that right? >> that's correct. >> how did your family come up with the company? >> my great-grandfather, harris, came from poland and started working for a tank maker in the metropolitan area. in those days, i think it was basically a commercial business where you serviced tanneries or wineries. businesses that used a vessel in order to contain water. and the story goes that harris bought the business, he was employed under for $55. >> that money was supposed to be for something else, is that right? >> well, i guess -- i just can't remember -- >> oh, i read that money was supposed to bring his wife over. >> yes, yes, and he did that eventually. he did that right after he bought the business, and brought his family over, and here we are today. the actual name, rose spend wach, story goes, was captured as he was leaving port in new york. he picked up the name from a truck that was passing by, and we were derived from our own last name in emmis island from that quick observation as the boats was leaving europe. >> and the company has really grown over the years. >> now, what percent of the tanks, when we look at the new york skyline, what percent of the tanks are from rosenbach? >> we're very happy just to keep busy, and we never count in terms of how many stocks there are or how many tanks. >> if you had to gues. >> well, if we go on top of the empire state building and look around, i think you'll see predominantly most of the tanks have been made by our company. just from different insignia of how we make the tank, we can recognize it. >> excellent. so i heard a lot of the tanks, loft tanks in the city were built kind of in the roars 1920's. after world war ii, you guys were focused on real estate tanks. what do you think when your father and your grandfather were looking at the business as a whole, what was the hardest period throughout these years that the company's been? >> remember, i entered into business in 1975, if you remember, in those years, there was the hardship of standing in line for hours and hours just for a gallon of gas, and each year had its ups and downs with us. whether there's a high sense of busyness or a very slow time in the employment of our product. and we followed the economic situation in the city. the last 10 years we've ben riding pretty well. the infrastructure in the city is still defined, the need for the water tank especially since the sprinkler codes have been changed in the late 1990's. we have buildings going up that require 30,000 to 50,00-gallon reserves. >> we'll have to talk a little bit about that. andy rosenwach, we're talking the tanks in new york city. we'll be back. >> welcome back to "venture." we are talking the water tanks that dot the new york skyline. we are with andy rosenwach, the president of rosenwach tank. what is your annual revenue at this point? >> we average about $20 million a year. >> how many employees do you have? >> we have a steady employment of about 100 people. it is a large family. we work together continually, whether it is good times or bad times. >> did you ever think that you did not want to join the family business? >> i always had the intention of working with my father. as he once told me, the apple does not far fall from the tree. my grandfather -- i remember him. we were all very close together. i had a wonderful 25 years embracing him and learning from him. if it wasn't for his insistence, i would have never have went to nyu for my master's. my biggest educational feet was getting my master's in plumbing from the department of buildings. i went on to become a refrigeration operator. >> that played into the business model, correct? >> exactly. on top of the buildings, we not only have water tanks but cooling towers. every cooling tower in the '60s had what is known as a wooden wet deck. it was made out of redwood. we were the biggest source of redwood east of the mississippi. >> you guys have a mill. you use cedar, mill it in brooklyn, in new york city, where a lot of manufacturing is leaving the city. how did you maintain that decision? >> with the love and passion with the people that we work with and the families that we have learned to know and the customer base that we have. the land never disappears. it only gets more valuable if you live long enough. we always believe with whatever we have, we try to share and pass down. >> city hall has a whole department dedicated to try to keep manufacturing in new york city. are there incentives that they offer you? are there rebates that you are given for manufacturing in the city? >> we do have an incentive, tax-wise, in terms of our own facility for the real-estate tax. i would love to talk to someone in the department in the city to recognize the expense that we go through in terms of servicing our product. without the water tank, new york would go dry. it is very difficult, given the responsibility of insurance and compensation and catering to the environmental laws that we are now working with, as well as safety. we comply with everything. i am proud to work alongside the people that monitor us. >> you mentioned several things there. what is the biggest challenge? operating with a company that is older than 100 years? what is the biggest challenge operating in the modern environment and still working with some old-fashioned technology? >> the biggest challenge is the workers' safety and being able to comply with an environment that asks us to be very careful before we take the next step. when we are on top, there is nothing to hang onto. we are working out there without nets. it is like watching someone with a great bit of talent and skill, as you would watch a circus performer. >> from a financial standpoint, how does that translate? >> it translates to an expense in insurance and additional safety precautions. >> how come there aren't a lot more companies coming into this area of competition? you have had competitors around for a long time. do you expect to see competion? >> my father would always tell people that we are in a dying business. he was so credible, i think his word was quite believable. the business -- in any business, it is what you do now. it is how you achieve tomorrow. >> you heard it from andy rosenwach, the president of rosenwach tanks. you are watching "venture." >> welcome back to "venture." we are talking the tanks that dot the skyline of new york. take a look. >> we are a business of manufacturing, installing, and servicing the wood and steel tanks in manhattan. the company was founded by my great-grandfather in the 1890's, and it has been carried on by father to son. the water tanks are essential to provide the bottles with drinking water, the water that people shower with, and more particularly, it has to fight fire. over the years, i have heard stories where people have told me that when they look up and see a wooden barrel on top of a building in new york city, they consider it vacant or empty, out of use. they have no idea what it is there for. i remember going over a bridge with my father when i was about 12 years old. he said as long as you want to be in this business, there will be enough business for at least taking apart the tanks. he never envisioned that the utility of a wooden water tank would be around in this day and age. but it is. we have new construction going in every month. we are putting up 30,000 gallon tanks on top of those buildings. i estimate there are about 15,000 tanks in new york city. new york is one big tank town. >> we wanted to show that because it is such an interesting process. i got to go up on a roof and watch it happen. there are no nails. it just fits together. when they put water in it, it comes out, but the wood grows and it eventually closes up. talk a little bit about the process of that. has the technology changed much since the 1800's? >> the only changes have been the system of installing the tanks. it has been organized and confined so that a tank can be taken down starting at 7:00 in the morning and put back at 5:00. i guess as we work so vigorously, i have always defined our crews and the people in the industry as the spirit of the new york. in this age of my own self, i must be one big splinter. when i get wet, i swell up like a wood tank. >> sometimes, for instance, there was an example of a hospital where you had to replace some of these tanks. you still have to keep the water supply running. how do you do that? >> there are various ways of keeping the water running. it is a plumbing procedure. we connect the top of the fill line to the tank and connect the two lines together. we add to the pump station a pressure-reducing valve. they can maintain, for the time being, a house system. >> a lot of steps going into it. there is so much more with just putting up those tanks. you have made wood tanks for wine. every giant panda in the u.s. has a rosenwach tank. talk about the areas that you are involved in. >> we have also made a house out of a tank years ago. we expanded into different areas to service our accounts, which is building restoration. every tank that withers away, pipes penetrate into roofs. we took a roofing product and we put it on top of the tank. >> andy rosenwach, we are talking the tanks in new york city. you are watching "venture." >> welcome back to "venture." today, we are talking with andy rosenwach, president of rosenwach tanks. during the break, we were talking and i tried to keep pushing you to figure out how you keep staying competitive. how important is marketing for your type of company, for which you said it is a mom and pop type company. >> we have a great need to give back. when we present ourselves, it is always in a good way. when we give this out to people, they always rember us. >> you guys give these types of pins out to people in brooklyn? >> it is only to our own people. that is an example of how -- >> so you think keeping loyalty of your workers is very important to you. do you guys put ads in newspapers? do the building owners just know you? >> the building owners know us. as i was saying before, you cannot just sit back on your laurels. every day is a new day. we give out on projects. we put up a tank where millions of people walk through it and enjoy new york in that way. we are working on a project over on the west side highway. there are plans of making a stand for refreshments. the stand may be looking at in terms of a tank. we were on an exhibit on healing waters years ago. we will never say no to a customer. >> what is your relationship with your rival like? does your dad or grandpa tell you stories about the company growing up? what is it like now? >> i still don't think rosenwach has any type of competion. i look at websites. i have no thoughts or any ideas about looking backward. we definitely try to make the path. >> you are currently working with your son to bring him in, correct? >> henry is my son, and i have a wonderful daughter. henry is much better than me, as is my daughter. he is studying in college. he is working the business this summer as he did last summer. i have rave reviews from my guys about him. they are very proud of him. >> some businesses in new york are family owned, which is why they last. why do you think that has played into the endurance of this company? >> succession is very difficult. it is very difficult for a father and a son to work with each other. you have to learn to respect each other. education comes from the ground up and you have to go slow. >> that was andy rosenwach, president <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006150"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006150" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Business,Economy,Manufacturing,Small Business http://player.clipsyndicate.com/view/225/1006140 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1006140?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/3/58/351/c9cab95a-e1c7-401e-b1e1-38decfcea493_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Interview and discussion with the Four Seasons Chairman and C.E.O., isadore Sharp. He discusses his company's story, from its beginnings to its secret in success. (For The Record)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1006140?cpt=8&wpid=140 Fri, 03 Jul 2009 10:01:05 +0000 Spotlight - Winter And Summer For Four Seasons Interview and discussion with the Four Seasons Chairman and C.E.O., isadore Sharp. He discusses his company's story, from its beginnings to its secret in success. (For The Record) http://www.clipsyndicate.com/video/playlist/225/1006140?cpt=8&wpid=140 Bloomberg the lobby of the four seasons hotel in new york city. they have spent half a centry building this into one of the best known luxury brands. there are now 80 four seasons around the world. i started our conference by asking the question, hows business? >> we are suffering like most other companies. we are going to be of this year probably 20% over last year. everything is going reasonably well until the last part of 2008. then everything fell off a cliff. we are going to be conservative going through the balance of 2009. hopefully by that time, thing also move another direction. you are a global basis. >> middle east is stronger than what we are doing here in north nerk. the unprecedented word we are throwing around is an unpress departmented recession. our industry is being unfortunately negatively hammered for the wrong reasons, which i think is being corrected now. the government is seing that we are a very strong industry in terms of the rest of the economy. close to 10 pirs of the g.d.p. it's vital for others that this industry keeps growing. >> you've been through a lot of down turns in the past. how does this compare? >> not much different in terms of the decline. i think where it will be different is the extent. it will take longer to come through it. it will probably be a slower growth. cris because it's a financial one. a lot of our business comes through that final sector. that's a readjustment completely in terms of those major corporations. that's why i think it will take a little longer. > what do you think you can tell us about the four seasons customer? >> do they say i still love the brand but can't afford the sweeth right now. the same thing we've always heard. most companies are trying to conserve, lower costs. we work with them in terms of trying to find out what their needs really are and negotiate. we are agrsive in our marketing. it's not natural for people to sort of stop doing what they have always done. our experience has shown over several recessions as things turn around, people get back to their normal way of doing business. >> we are not reducing rates or price adjusting. we may negotiate. >> you mentioned the financial services industry has a lot of industry stayed here. the people who can afford to spend money while they are in the hotel is our target. they serve our purposes. they are using us because they are very busy. time is of the essence. they know when they are here, they are going to get everything working like clock work. their business meeting is going to end up where we are involved. they are not here coming for the glamor of it. they are coming for the function of what we are going to do for them. it all comes down to value. what the customer considers to be of value, they wil buy. the reason we have that competitive advantage which gives us a premium. what we know, what our employees know is that everybody's job is important. >> what do you do now to raise the bar? >> there's no block buster breakthroughs. they are all what i cal incremental changes. things we are constantly trying to discover, what are the customer needs today. your age group is very different when i was thinking when i needed to travel as my grandkids needs are different we are constantly scam inning the needs of the customer. >> in thinking of what to build for the very first hotel and how to operate. i approach it from the customer perspective. what would the customer consider to be useful and of value so they will pay what they need. >> roams are no longer a bedroom. it's an office, a meeting room. all the facilities in that room must be adapted for a very god night's sleep but for us to be able to sit in that room for a business meting and travel for all your technology and have it easily accessible. that's continually improving. you wouldn't go to a hotel and ask, do you have an internet connection? you ask where is the high speed internet connection. there isn't anything we do that shouldn't have value to the customer. >> how we manage is to develop a consensus with our employees our mandate words are control without compromise. they work together to find out what the best way to do this? now you are forced to reducing your staff. even that process and how you handle that. you don't loose contact. as soon as you have an opening, let's bring you back. a man that gives them what they need. what you are asking from them, is to give the customer what they need. >> talking about you specifically. i believe you signed a three year contract to go private. give us an intense an your update. it's not a three-year contract. >> i agreed that i would -- subject to health -- stay on. i have no intentions of calling it at the end of that period. as long as i can continue to add value, have a role to play and healthy enough to keep doing it. i will let the time determine when i should maybe step aside. every c.e.o. manages main job is to prepare for the succession. not just in my position but in every senior position. we've always had succession plans in place. to show the new investors, look, this is a team that's in place. these are the people who will continue to be able to move up. we've had transition of senior leadership at the very top of this company three separate times. it's been sameless. we've led a policy from within. promotion from within at the very top is the most important. everybody else's role is protected eerve knows what is happening. that is in place. it's the unexpected or the inevitable. the plans will keep this company moving forward. in all your years running this business. is there one piece of advice you picked up from over the years that has stayed with you? >> there is. it is in the book. i identify that very important relationship with a gentleman called sir gerald glover who gave me this opportunity in london, england. over a four-year period, i would be flying over to ask him and meet with him. i asked him at the end of it, how could you give me such an important project when you new i didn't really have the wherewithal to live up to my financial obligations if things didn't work out. he said, business is done on trust and belief. all those busines meetings weren't about business points per se, they were about a trusting relationship. i've always used this as a fundamental of business. you have to be able to work with people that you can trust and that this they can understand what that means in terms of commitments. i think that sort of seeps downright through the company. you are no longer a private company. >> going from a public to a private company wasn't done necesarily for final reasons. it was an opportunity presented to me that we could control the change ofship in a e which ownership would probably never have to change again. that appealed to me. having control if something happened to me, my family might have to put the company up for sale. this is what i would consider to be two long-term investors. king dm has been the largest share holder since 194 and 9 cascade company has ben an investor of considerable size. they saw this as an opportunity of a company they knew very women. they knew we had a deproge program that financially would be a good return on their investments. it's worked out well for that purpose. our owners and the people the company see there will not be a change accept for maybe a change of ownership. >> for me, personally, there's no change, we don't run the company any differently. save a little money in terms of all the rourting procedures. we have always run the company as what is right in a business point of view. what about that relationship with the prince as well. does he have more in put these days? >> no. he's available. always accessible. we meet a couple of times a year. he has representatives we meet with on a very regular basis. we will talk if there's an issue that requires their input. they are saying they bought into a management company. we don't have any hard asets. what they invested into was the intellectual capitol of the company, the people. their interests are best served by the people continuing doing what they are doing. the prince has been excemptionally helpful. many hotels he started and built and is continuing to do that today. we didn't make this deal for them to become a financial search horse. a way every hotel rezort feels and looks. one of the things that always appealed to investors when you were a public company is a business model. you have management contracts with property developers we don't get into my financial problems. we don't get into whether any of the rough storms stay on course. because we are financially under pressure. we have a positive cash flow. this business model was put in place many, many years ago just because of this. i saw that we couldn't possibly continue to own real estate and expect to grow the companies. too capitol intensive. way back in 1976 is when i first started this concept of working to develop a management company. you have to be looking at the property values and deterioration and thinking could be opportunities there for you. >> there could be. remember, i got into this business through the real estate end. i still enjoy that aspect of it. and i realize the great value is built in ownership company. i saw i can't ponlly try to develop the hotel business and own the building. i put together what was a necessary business model that i would invest as an owner a limited amount of equity dollars the amount that i would invest, i protected in terms of cash calls i used to call it c.o.d.s. putting my money up. don't come to me if you want more. we still invest but it's always with the protection of the financial abilities that go with. how many development partners do you have over all. we have 83 hotels. we are well over 50 different owners all around the world. new ones are coming almost weekly. >> i wanted to talk about one of your newer projects. another guest on for the record. tell us about how that project is coming along. we made that deal. we are determined to go full steam ahead. he's cleared the site, ready to go. has our letter of intent. i think it had go ahead son as the market settles down and financings becomes another normal way of doing business. it will be great for us to have a hotel in that part of new york. the four seasons business model of managing and not owning allows sharp to look for promising opportunities. he says the most promising opportunities are overseas. we have over 40 hotels in one stage of development or another china is a major market. we are, our plans are really worldwide. middle east. we are slowly moving into latin america. south america. europe, north america, we'll open i think in the year 2010. baltimore and denver. it's worldwide. that's really what we have going for us now is that the demo graphics of how our world of business is going to change is dramatic and it affects the hotel industry. if you think about it, going back years ago now north america, europe and some parts of the far east. now you have india, china, asia, latin america. a merging market of over 3.5 billion people. you are not coming out of the farms. they are coming out of universities. education is high on the list of priorities. we are going to have a very competitive, important market this will be using hotels >> it was an important lesson learned. unfortunately, they have been hit so many times from hurricanes. it is closed right now. >> the first hurricane just as we got started building. that was interesting. our then president of operations took charge and organized a list of equipment we organized in house collecting everything from everybody in toronto. we were the first air lift into nivas. the premier of saint kits when we were done said, what do you need in st. kitses when these things happen. >> we hired 500 nivitians. the island was losing its population. what job was able to do is muster these people together, teach them what was required to serve a very doe handing clientele, usually from new york. i asked them. i said, john, what do you hold out as how you do did all that. he said, it took patient yens and understanding. i knew exactly what he meant. understanding was what these people didn't know. why have you got two forks on the table? you mean there's two different types of tea. the knowing what people had to learn and the patient yens to be able to not make them fel like they should know. it gave us the cotches that we could go anywhere in the world and pull together core people from that community and create a hotel that would compete with people in new york and chicago. it really proved there were people everywhere that would buy into this opportunity to become part of an organization that they really feel they have a purpose. nivas was more than just a successful resort. we lorned how to overcome hurricanes. the fourth one. we learned we could do thir things and rely on people around the world. >> didn't you hear about people practicing going home and practicing proper place settings? >> exactly. i was there about a year after having room service. this place is stretched out over a mile. i asked the young lady, where did you learn to do this job. and perfectly done. she said, i have not worked before. i said, how did you gain this knowledge? >> she said, they let me take everything home so i could practice on my parents. you saw management knew what was required to bring people who had the zoir to do something that they had never done before and to prove they could do it. that's learning curves. stheeze are the things you gain in insight into the service business and what's people through people. jo you are going <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006140"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006140" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Business,Economy,Hospitality/Food,Real Estate http://player.clipsyndicate.com/view/225/1006134 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1006134?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/3/58/351/7147954c-5228-464e-a096-cb46e82ec0c4_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">President Obama arrives to Moscow. He is expected to talk about missile defense, political reform and cooperation and travel spots. (Political Capital)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1006134?cpt=8&wpid=140 Fri, 03 Jul 2009 09:41:31 +0000 Obama's Agenda President Obama arrives to Moscow. He is expected to talk about missile defense, political reform and cooperation and travel spots. (Political Capital) http://www.clipsyndicate.com/video/playlist/225/1006134?cpt=8&wpid=140 Bloomberg we start in our moscow news room with bloomberg's ellen pinchuk. barack obama arrives in moscow on monday. what will be the dominant agenda? missile defense? political reform? cooperation in trouble spots like iran and north korea? >> in terms of where we can expect real progress, they are looking to find a replacement or extension for treaty which expires in december. missile defense fields. iran, north korea, of course in light of what's been happening there the last two days is likely to be on the agenda as well. they want to appeal to all levels of russian society. >> hillary clinton down played political reform when she went to china several months ago. same thing going to happen in russia? not much pressure in political reform? >> that's what we're hearing and president medvedev saying in his blog ahead of the meeting that he is hoping for a highly practical, pragmatic agenda and that could be read as a code that they don't want to have any more of the poking in the eye as the russian side perceived it in the past. that's clearly the message that the russians are putting out. we'll see what obama can deliver. >> there is much talk about cooperation and trouble spots as we said a minute ago. the moment that mahmoud ahmadinejad won that very dubious landslide victory, the first place to congratulate him was the russians. do they really ever cooperate on this stuff? >> they are very zphint the sense that they believe -- consistent in the sense that they believe meddling in internal affairs or destabilization is against the mess thadge the russian government wants to put out. they like the order of stability and we have seen that constantly in the region with the revolutions in the past year in georgia and that the russians have been against any civil unrest and may have concerns on that issue domestically. so to expect that they are going to change that as a result of one visit from barack obama, unlikely. >> first african-american president, first african-american president to visit moscow. what is the reaction there? >> really divide. parts of russia, it must be said, still very very much, you can sense racism. i have heard it on the streets this off-handed remark about obama, some harsh slang directed toward the u.s. president. at the same time, there is a small but very important section of russian society, the so-called intel linch gencia that looks on the election of a black president whose father was a muslim is a sign that american democracy still exists and that is something to look up to. it will be interesting to see what the reception will be, what whether he works his magic on the populace at large as he has managed to do in so many european companies given the fact that russia <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006134"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006134" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Science & Technology,Government & Politics,Politics - U.S.,Science,Municipality,obama http://player.clipsyndicate.com/view/225/1006129 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1006129?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/3/58/351/307f4980-c51d-4897-b7fa-6c1c4a517e21_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Interview and discussion with Virginia Senator, Mark Warner. He shares his thoughts about President Obama's battle for health-care reform and shares his insights about the climate change bill. (Political Capital)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1006129?cpt=8&wpid=140 Fri, 03 Jul 2009 09:31:15 +0000 In-Depth Look - Warner's Climate And Health-Care Outlook Interview and discussion with Virginia Senator, Mark Warner. He shares his thoughts about President Obama's battle for health-care reform and shares his insights about the climate change bill. (Political Capital) http://www.clipsyndicate.com/video/playlist/225/1006129?cpt=8&wpid=140 Bloomberg with virginia senator mark warner. appropriate to have you here. fourth of july weekend. your state. thank you for being with us. >> thanks for having me on. >> let's turn to health care. one of the big fights. not the only one. one of the big fights is over the so-called public option. there are four possibilities. someone a full-fledged medicare. one is a fallback. and the then the co- ons. which has the most appeal to you if any? >> we tuth back up and look at how do we get competion? i don't support a single payer. i'm intrigued with the co-on idea. how do we go into those areas proonedvide some sort of -- >> national co- op? >> i would be interested in a national or state version. we ought to be interested in having a competive-based version. >> the house passed a climate change bill. rick boucher called it a carefully balanced measure. do you agree and would you support something along the lines of the house bill? >> i think boucher did great work on the house bill. i think there is going to be more work to be done in the senate. i want to get to a bill that i can vote for. >> you couldn't vote for -- >> i think there are write as that we can improve on the house bill. i think that is what the senate will do. i want to make sure we have the ability to take on climate change but not hurt the midwest or the south. and let me say that the reasoning here is not only around climate but the fact that we're still spending $600 billion buying oil from countries that don't like us. i think as a former telecom guy that the next 25 years is going to -- job creation will top what happened in telecom over the last 25 years. america needs to be in the lead in this space. let me give you a couple of areas. we have to make sure there is a transition period for manufacturing so we don't particularly the competive areas like paper manufacturing and other areas that we don't put such an immediate burden on that we move some of these jobs offshore into countries that are not participating into some of these regimes. i want to look at the appropriate periods and get to a bill where i can vote yes and get to a large majority of the senate. >> you are a pretty good political prognosticator. you have a pretty good political track record. what are the odds that the senate this year be pass a reform health care bill snpped >> i would put the oddses on both of those well knot of 50%. we have to take on health care from a defensive standpoint to address not only health care coverage but to get our crisis under control and from an offensive because where are the jobs and wealth going to be created over the next 25 years? it is going to be how we get the new energy regime right and right now america is not in the lead. unfortunately europe is in the lead and we have to take that leadership position back. >> one of your concerns has been chronic long-term deficits. the other day a leading wall street fellow and democrat roger altmann said over the long run in addition to what you talked about we're going to have to think about moving to a value-added tax. would you knot on the table? >> i think before you start talking about new revenues you to show that you can limit federal spending and a big piece of that is again going to be health care and entitlements. i strongly believe while i'm only a new snafert, six months in, -- senator, six months in, i'm not sure the current process will give us the will to take on the entitlement reform in a big way. i have the commission that would take it on you would then have a straight up and down vote is the only way you're going to get the kind of resolution around spending that we need. >> should the value-added tax be considered as you look at the deficits? >> if we can show that we can actually tighten our belt on spending. i think the question of looking at additional revenue sources if there is a gap that can be discussed at that point. the first step has to be -- >> is that something -- is that an area ywr you want to think -- >> in 2004, in my home state of virginia, we still tingt. i had a 2-1 republican legislature. we put a tax reform. we slowed spending first. >> senator, you have proposed a committee or council for a systemic risk -- rather than the fed. let's go back to september 14. how would it have been better and different? >> hopefully the council, the treasury secretary, all the individual regulators and and an independent chair that can draw up information from all the day-to-day regulators would have seen more systemic risk because the sole job would be systemic risk. you can't oftentimes you know it when you see it it is not an entity. it ought to be monetary policy. it has a bias towards banks. as we have seen with the a.i.g.'s and others sometimes the systemic risk may rise outside of a financial institution. i hope act quickly and more expeditiously. >> sonia sotomayor. you have had two months to look at the records. as of today are you going to vote for her? >> i think she is extraordinarily qualified. i intend to vote for her unless i hear other things that will come out of the hearings. >> and she will be confirmed. >> yes. >> final political question. i understand you have the highest political rating of anybody in virginia. tom davis, a shrewd republican, says the democrats and republicans don't have the burden of george w. bush but says virginia is a countercyclical state. when one party holds the white house, they also hold the governorship. >> i think at the end of the day what virginians are looking for. it may just be my state. they are more about who can actually get stuff done. people want to get things done. they want to get done in a nor bipartisan way. the democratic account this year has worked across party lines. the republican candidate, a good man. somebody i worked with as well. whenever there came those moments in time over the last 10 or 15 years, he wasn't there. >> who is going <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006129"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006129" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Law & Legal Issues,Health,Legal,Government & Politics,Municipality,Politics - U.S.,obama http://player.clipsyndicate.com/view/225/1006101 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1006101?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/3/58/351/79d900a2-416d-4513-a21a-f99447cc265d_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Interview and discussion with Jason Binn, the founder & C.E.O. of Niche Media. He talks about his company's profile, from its beginnings to its final peak. (Venture)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1006101?cpt=8&wpid=140 Fri, 03 Jul 2009 09:00:41 +0000 Spotlight - Niche Media Beginnings Interview and discussion with Jason Binn, the founder & C.E.O. of Niche Media. He talks about his company's profile, from its beginnings to its final peak. (Venture) http://www.clipsyndicate.com/video/playlist/225/1006101?cpt=8&wpid=140 Bloomberg we welcome magazine magnet and neach magazine founder and c.e.o. jason binn to the program. >> it has been a rough time for the glossy business. there have been closures. restructuring at major shops like news week and magazines like blender moving their enterprise online. magazine magnet jason binn is no industry secret. in 1993 he founded ocean drive magazine. by the time he law firmed his second title, "gotham" his business title had been finely tuned. they cover the very rich. where they live and play. >> there hasn't been a moment that goes by my husband and i don't pinch ourselves. >> he gives his magazines away for free! the catch, it is to people who can afford them. they hunt down high net worth house holds and sign them up. luxury advertisers like the guaranteed reader demographic and distribution. this model has produced a growth rate of 20% this year. to keep buzz going niche media and part of his job is rubbing shoulders with the right people. some of them, like harvey wine seen the have become investors. >> i'm feeling good. >> after the 2007 merger are grunspun media group and ocean drive media group they publish 16 mag zones with a reported annual revenue of more than $180 million. at a time when the a not getting richer at the same rate they used to it seems there is still a market to which they aspire. >> let's talk a little bit about the beginning. how did you get into the publishing industry. >> a couple of weeks after hurricane andrew, we co-founded that magazine. jerry powers. we just started this magazine called "ocean drive". it was at the heart of south florida. the it was a great experience and as the market grew, the magazine grew. there was a great feeding frenzy. >> there was pretty small overhead costs. what were they? was it just the two of you working on submit the >> very little money in the bank. it was a scrappy business. just getting out there creating a category called you know, regional free magazines where they actually look like national magazines in the format. >> how so? >> like a national magazine but it is a local magazine and celebrates the people and places within that community. so we just went down there and really focuses more on the local business owners and over the few years the national players started saying wow, this is a very important vehicle to drive and brand our business. >> now jerry powers kind of became like a mentor to you? is that correct? >> it was great because he had a lot of the business savvy and i was, you know, great to -- marketing and branding. together we fed off each other and created great business that was pretty much breaking even from day one. >> at what point dead you decide i'm going to start my own -- did you decide i'm going to start my own business? >> throughout the roughly 18 years until greenspuns came in and purchased pretty much the whole company but roughly after five years. >> you started niche media? >> and after that hamptons and new york and gotham magazine and that kept expanding and l.a. confidential and pretty much we consistently launched a magazine that, being the combined company every year. >> how did that deal with greenspan media come about? the media played it as a feud between several niche magazines including your partner. >> there were two separate companies. the greenspuns were our partners in vegas and they are an incredible family and incredible people trying to figure out how to put all the companies together. why then? >> i think they enjoyed -- they believed in the model. the model being very city specific. they have been in the media business for as you know many years. back, you know, from even their father and the newspaper business. they want to, i guess, branch out and expand their media horizons. >> what did you learn from that experience? >> well, it was great because when you're in business and you're a small owner, operator business that is aggressively expanding in order to keep expanding and you know, building your brand, building your revenues and staffing, you need to build the sophistication of the people you work with and that's what we have done with the green spuns. >> we'll be right back. you're watching "venture." you may know some of the names of the magazines. gotham. ocean drive. >> boston common or philadelphia style. >> hamptons reform capital file. washington. >> let's talk about the business model. you have 16 magazines. the circulation not that big. pretty small circulation. niche household incomes are targeted. where did you come up with the model? why did you decide this is going to be the model you were going to use? >> you know, to be an active consumer, the typical traditional magazine or newspaper format is very much driven by newsstands and subscrippingses. what we did is rehearsed the model. newsstands and sup scriptions are the smallest part of our distribution model and the biggest part is putting the magazines in the hands of the people that make the money, live in the money and have the money. real active consumers. as we all know you can target someone with a million dollar home but maybe they don't have an active job at that time or they don't have enough, you know, a lot of money in bank and they are trying to save their money so they can do other things. >> so you work with data bureaus? >> yes. we work with companies like expeern. companies that, you know, the magazine industry actually works with when they get their subscriptions and want to know who are the people. what is the demographic? the d.n.a. of those individuals subscribing to the magazine. they really on those companies. >> you do the opposite? you say this is who we want? >> exactly. >> how did that relationship start up? were other people using that for their relationship? >> not that i know of. it was interesting. the magazine in the beginning stage was pretty much directly free on the state. as the business got more sophisticated, as the advertise ofs got more sophisticated we wanted to be more responsible as well band more so fit indicated. we got the direct mail and thought can we go to m.l.s. to find who has a million dollar home but maybe they bought it for $100,000 and the home is worth a million. >> you find out really behind -- >> yes. the three filters that we have learned are filters that you can do that are most credible or household income, which, as you were saying is $250,000 up. a million dollars or more in the bank and their homes are valued over a million. >> how much of the magazines are actual advertising? i read 60%. is that still correct? >> give or take 50% to 55% on average. sometimes 60% but on average we like to create a nice, equal balance between advertising and editorials. >> how do you sell those ads? are they national packages? do you localize them for specific local businesses or luxury brands that are working in those areas? how does that work? >> good question. we kind of do two things. we rely on the local store managers and the local businesses we call owner/operator businesses that have one or two free-standing stores but then we also might deal with a luxury brand that has a free-standing retail boutique and threaverpblg buy so sometimes we go the -- leverage that buy. sometimes we go the reverse and go to the new york agencies and the client. we're pretty much a client bifmente >> what kind of prices are we charging here? what kind of markup are you charging for advertising space? in a regional niche magazine? >> there is a thing in our business called costs per thousands. it is called c.p.m.. how much do i need to spend to reach 1,000 people? for us, c.p.m. is cost per mind because we're ensuring all of our -- to be specific. we're speaking with them. so it is all local content. the distribution is very targeted. besides the direct mail, we're on all the planes coming in and out, we're in all the right restaurants. all the right boutiques. in major cities we're in over 40 hotel rooms. >> you have a reputation with wynn resorts. >> we create this whirlwind. >> jason binn. we'll be right back. founder of niche media. stay with us. you're watching "venture." >> welcome back to "venture." i'm cris valerio. today we are joined by jason binn, the founder of niche media. we were talking about advertising. i have to talk about the environment that we are in right now. it is not a friendly environment to magazines in general. now you are a niche media so it is different but let's run through some of the statistics. magazine advertising is down 26% for the first quarter of this year. people estimating that it is going to fall 11% this year. you have luxury brands like burberry posting a $7 million loss. the c.e.o. actually came out and said that it is the most challenging year for the luxury sector. have you seen your advertising revenues fall? >> yes. we are working harder than we ever have had to work before. >> to maintain or get more advertising? >> to main -- you know, it is interesting. it is about maintaing but it is also about finding new advertising. you know, when you look -- there is so much advertising out there as it is. i think every media company should be and could be more responsible as prospecting. you look at the billboards, telephone booths, the buses, newspapers and magazines, so many prospects out there. we do our best to make sure that we can prospect as much as we can. >> what percentage do you think your advertising has fallen off this year? >> we are tracking -- it is funny. in some ways, we are tracking down roughly around 15%. in other ways, we are also filling out a lot more requests for positioning or these proposals. they are still hungry to advertise. if you are not visible, you are invisible. that's just the reality. we are these local magazines that are really targeted to a certain consumer in a certain market. are we good for the mass brands that want to touch a million people? no. that's not what we ever wanted to be. >> one decision you made was to increase the frequency of some of these. i know "capital style" and others increased issues from six to eight this year. you had "l.a. confidential expand from eight to 10. do you regret that decision given the environment that we are in? and the fact that advertising has fallen off? >> we made a lot of expansion plans since the greenspuns purchased the company. part of it was about building a company. their philosophy was, where do we as a company need to be or want to be in five years? this was never a short-term plan. it was thinking about five years down the road. so they actually, after the purchase, reinvested millions of dollars and wanted to create a foundation. >> are those five-year plans still feasible for niche media? >> to do a 12-month plan today is about as far as you can go. in the old days, being a couple of years ago, you buy a company -- give me a three or five-year plan. typically, since i have been publishing, over the last 16 years, you could really stay within a 5% or 15% margin with your budget. today, it is a whole different world. >> has your targeting demographics changed? have you guys considered lowering -- i don't want to say low lowering the standards but lowering the actual liquidity rates you are looking at? >> we are such a niche. our circulation -- while we might be the largest book in most of these markets distribution-wise, putting 60,000 copies or whatever every month in that market, speaking to those people -- >> how do you afford that, though? how much does it cost to put out these big, glossy magazines? and then get it delivered? how much does it cost for one magazine? >> between $2 and $3 after everything, basic hard costs. and then you do the marketing. >> are you going to stick to that model? >> it is a model that i believe in now more than ever. it is much more efficient. effective for the advertisers. they are trying to touch advertisers more than ever. and connect with them. >> jason binn, founder of niche media. you are watching "venture." we're going to talk a little bit more about that when we get back. you're watching "venture." >> welcome back to "venture." i'm cris valerio. we are with jason binn today, founder of niche media. we were just talking about advertising rates. i just want to talk about growth rates. in 2006, your growth rate was 20%. in 2007, your growth rate was 10%. a lot of that came in the second half of the year, according to reports. how did that happen? how did that work out? that was when the financial cris kind of -- >> i think people really wanted to, like i was saying earlier, get more integrated with not just the communities but the consumers. >> what is your growth rate for this year? so far? >> this year, right now, it is about preserving what we have. we were fortunate enough to keep last year's launch of "michigan avenue." as the crisis was coming. >> that was interesting. you launched that because of the obama campaign. raised awareness, kind of chicago? >> the concept came about prior to, but chicago is a top-three market by the u.s. census bureau. we had to be there. we were able to secure "philadelphia style." at this time, you could not do that. we have these footprints that we have in these other markets. we launched "michigan avenue" backs in september, in the fall. it was one of our most successful launches that we have ever had. while you might think sometimes the markets are challenging, the world is challenging, sometimes if you find the right need or the right voice in a community or a market to an advertiser or a reader, they will find a way to embrace it. >> a large part of what your company does is throwing parties. to a certain extent. you throw more than 500 parties or events a year. why did you decide to incorporate that into the business plan and what percentage of your budget does that take up? >> it is a vertical integration. it starts with having the best people in the marketplace, the best people to buy these products and services, and doing it through a quantifiable, qualified research. the next step is taking the people that are in the pages and creating these events, bringing them to life. it is showing you the credibility, you being the advertiser or the reader, the credibility of the product. these people come to these events, and it brings them to life. the media chronicle is like being a responsible publisher to our advertisers, creating this full, vertical integration with the best tastemakers in the community that are inspiring and motivating, the way people dress, act, and how they style themselves. that is the model. the events are the offspring of the foundation that we have created. >> what is the favorite part of your job? >> bringing it to life, the whole product. the whole product where you can see it, feel it, touch it. we celebrate people and places. >> some have said it is like high school with money. do you agree with that? >> it makes people feel good. you know? it is about celebrating, you know, there is so much going on today in the world that it is a great escape. >> and making money through it. there is an entrepreneur for you. jason binn, founder of niche media. join us next week for more. in <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006101"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1006101" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Business,Media/Entertainment http://player.clipsyndicate.com/view/225/1005994 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1005994?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/3/58/351/9249c7e5-7e9a-4c1f-a32a-0d122c9de4d8_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Many corrections from downdraft in the earlier year are anticipated to have complete meltdown on financial market. (Asia Confidential)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1005994?cpt=8&wpid=140 Fri, 03 Jul 2009 03:30:17 +0000 Urgent Need For Financial Plan Many corrections from downdraft in the earlier year are anticipated to have complete meltdown on financial market. (Asia Confidential) http://www.clipsyndicate.com/video/playlist/225/1005994?cpt=8&wpid=140 Bloomberg the year in anticipation of a complete financial market meltdown. >> yep, with the things are hunky dory and then things came tumbling down. all of the stimulus is holding a steady. it is not truly leading as to recovery. there were significant paper losses. you have two choices. i know you have more. but for the sake of simplicity, you can go about it and wait until the cows come back or you can do something about it. where can i do when i am so far down and out, you say. we have the chairman of the australian national literacy board. he joins us from singapore today. good day, sir. welcome to the show. our people letting it get the better of them? >> during a boom, we believe it is going to go forever. the australian economy vacated and said it would carry on year after year. when we get into a downturn, we do the opposite. why do we not -- basically, we always manage to get it wrong. > basically, we are like lemmings jumping off a cliff. we are jumping onto the proverbial bandwagon. we are creatures of habit and birds of a feather that flock together. >> and australia, two years ago, the average australian was spending 102% of what they earned. the latest information shows that we're now actually spending about 94% of what we are earning. w during a boom, we're so confident. we borrow and borrow. cumins today from across the globe, are actually behaving -- humans today from across the globe are actually behaving more logically. the issue we seem to forget is that i cannot control the government policy. the lifting icahn control is my personal financial situation -- the only thing i can control is my personal financial situation. if i am saving money, i am buying assets that are relatively cheap. am i going to double my money next year? no one has any idea what the markets are going to do. put tax-deductible money into a 401k program. > i have the perfect and guinea pig. my friend had this to be 53 this year. you know a singer to about money. you're not cowering the you know a thing or two about money. -- you know a thing about two o about money. you're not cowering. >>? this, like the great depression, has changed people's behavior. there will be more concerned about the future than there were two years ago. it is interesting that it follows upon which you were saying. >> it is one of the reasons that the australian government -- we have a national strategy around financial interest. there really is an opportunity during a downturn to talk to people about money. the more stupid you had been, the better you have looked. warren buffett says that it is only when the tide goes out that we still has been swimming naked. we are looking in australia to make sure our education programs are ramped up. we will go to a recovery. my big hatred booms -- my big hatred of booms is that we see really dumb behavior. >> during tough times, when people are recoiling and are averse to taking risks, it sounds like you're throwing out some pretty risky ideas. you tell them to buy property. you want to take a look at stocks that are half the price of what they were, even if they do not bounce back to what they are. you can't average out your per unit cost. either way, the math works in your favor. if you got the job, but the income, and got the stuff on the side. >> why will you not see a major boom? the issue is leverage. the point i am making is that, would encourage people to do is to have a budget, by quality assets on a regular basis, the more bust. -- boom or bust. during a bone, my stocks look really dull. the big issue for me is that you do not get smashed when the market is going down. not for one second and mike advocating, -- am i advocating, because prices are historically low. if you have surplus income, it is not a bad idea to be using your surplusing come to build up quality assets. i am not saying that it is a it's cheap as it is going to get. i am saying the outlook is pretty good. i am saying, if you have surplusing come, use it towards quality assets and get rich slower. >> <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005994"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005994" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Business,Economy,Stock Market http://player.clipsyndicate.com/view/225/1005976 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1005976?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/3/58/351/a2726467-fe15-4fcf-a90e-ed4b4ecb1db3_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Oil is set for third weekly loss on rising U.S unemployment. (The Bloomberg Edge)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1005976?cpt=8&wpid=140 Fri, 03 Jul 2009 02:25:45 +0000 Impact Of Bad Employment In Oil Market Oil is set for third weekly loss on rising U.S unemployment. (The Bloomberg Edge) http://www.clipsyndicate.com/video/playlist/225/1005976?cpt=8&wpid=140 Bloomberg been exactly a year since oil prices closed at an all-time high above $145 a barrel. right now oil is extending its losses for the third week of declines. let's check on crude futures. let's get more on oil and the commodities market and bring in our oral reporter from the singapore newsroom. -- our oil reporter. how are those bad employment figures from the u.s. the pact inked -- impacting the oil market today? >> more than anything it has undercut the expectations of demand recovery. when people do not have jobs, they will not be driving to work, so there will be less gasoline demand. it just adds to the overall bearish sentiment in the market. without the demand recovery, because gdp growth is closely correlated, you will not see any sort of impact on the oil price. there's no reason to be buying futures at this point. >> can you believe that just a year ago we were talking about oil at $145 a barrel? it is much less than that now. what has changed in the oil market since? >> in the most fundamental sense, you have just seen a large demand erosion. the u.s. has been running at about a million barrels a day less demand than at this time last year. you have also seen japan's consumption down up to 20% year- on-year. the only place to have seen demand growth is china, india, and the middle east. the u.s. consumes about 20 million barrels of oil a day. at this point, the only thing that is propping up the market has been the financial sentiment and people buying oil futures as a hedge against the falling dollar. >> <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005976"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005976" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Business,Economy,Stock Market,Energy http://player.clipsyndicate.com/view/225/1005922 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1005922?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/3/58/351/cceacd8a-3cc2-4264-9b07-61ac91fc6887_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Net Inflows in Emerging Markets equity investors helps to carry a record performance in developing Asian Stock Fund. (The Bloomberg Edge)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1005922?cpt=8&wpid=140 Fri, 03 Jul 2009 02:13:11 +0000 Emerging Markets Are Back Inflow Net Inflows in Emerging Markets equity investors helps to carry a record performance in developing Asian Stock Fund. (The Bloomberg Edge) http://www.clipsyndicate.com/video/playlist/225/1005922?cpt=8&wpid=140 Bloomberg counterparts. emerging markets are back and float with inflows resuming, capping a record quarter. >> those net inflows for emerging-market equity investors helping carry a record performance for developing asian stock funds. that attracted nearly $1 billion in the week ended july 1. that helped net inflows recover from last week and a posted their first losses in sports. the data comes from a research firm that points to china as the reason for this renewed risk appetite. the reports by china's -- cites china's aggressive efforts to keep g.d.p. around 8%. developing asian stock funds took in $26.5 billion during the quarter. that topped the previous record of $22.4 billion in the fourth quarter of 2007. susan, as you can see, it is all adding up to the msci emerging market index. that rally ever 30% last quarter, turning it into the best performance since the measure was created back in december 1987. it has come <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005922"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005922" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Business,Economy,Stock Market http://player.clipsyndicate.com/view/225/1005913 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1005913?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/3/58/351/292fb012-1161-405c-a2c5-cf189f48482a_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Herbal shampoo maker BaWang begins trading today in Hong Kong. (The Bloomberg Edge)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1005913?cpt=8&wpid=140 Fri, 03 Jul 2009 02:01:32 +0000 Investment On Chinese Shampoo Maker Herbal shampoo maker BaWang begins trading today in Hong Kong. (The Bloomberg Edge) http://www.clipsyndicate.com/video/playlist/225/1005913?cpt=8&wpid=140 Bloomberg ask about any investment opportunity that is undermined. let's get right to the markets, and trading begins right now in hong kong. shades of bwang -- shares are under way. >> we are seeing the start doing very well, this is trading gets under way. we are talking about the chinese herbal shampoo maker, one of the popular ipos this year. investors over prescribed by more than 430 times. let's take a look at the numbers as we look at the bloomberg terminal. the stock is up about 23.5%. in the pre-market it was up around 24%. the stock is $2.94 here in hong kong. we are seeing a nice pop at the open for the stock. it is in line with other i.p.o. 's have seen in the past few weeks here in hong kong. why is it so popular? perhaps it is the star power of jackie chan. he is the face of the herbal shampoo is. the company is selling a 25% stake here in hong kong. as we start trading, let's see how it stacks up against other first-day offerings in hong kong. we have single the first-day gains for other i.p.o.'s over the past month. china metal recycling soared 22%. lumena resources it is up 19%, and 361 degrees int'l finished its first-ever trading up 8%. there's one other that we want to talk about, and as we looked at the terminal at shares, it is up 2.3%. we will see all this does as we move through the day. >> i think it is trading at 300% at this point. we will check that total later. let's <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005913"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005913" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> HKG:1338 Business,Economy,Manufacturing http://player.clipsyndicate.com/view/225/1005884 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1005884?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/3/58/351/2b7f8e8d-5ee4-46fb-8b09-ee08291daa68_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Europe Union has scrap a ban on ugly fruits and vegetable that has kept them out of supermarket. (The Trade)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1005884?cpt=8&wpid=140 Fri, 03 Jul 2009 01:56:50 +0000 Europe Union Scraps Ban On Supermarkets Europe Union has scrap a ban on ugly fruits and vegetable that has kept them out of supermarket. (The Trade) http://www.clipsyndicate.com/video/playlist/225/1005884?cpt=8&wpid=140 Bloomberg small, kirby, fat, thin, or squishy, it does not matter what it looks like or the color of its skin. in europe, the eu has scrapped a ban on ugly fruit and vegetables that has kept them out of supermarkets. officials say it will reduce waste and help farmers sell more. funny looking fruit and vegetables <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005884"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005884" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Business,Economy,Science & Technology,Nature,plants http://player.clipsyndicate.com/view/225/1005875 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1005875?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/3/58/351/122bbeab-9101-47d4-8642-c5cb28fff354_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Buyouts firms want a new rule to prevent private equity fund from slipping the investment to short term profit. (The Trade)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1005875?cpt=8&wpid=140 Fri, 03 Jul 2009 01:55:39 +0000 Buyout Firms Balk At Federal Deposit Insurance Corporation Buyouts firms want a new rule to prevent private equity fund from slipping the investment to short term profit. (The Trade) http://www.clipsyndicate.com/video/playlist/225/1005875?cpt=8&wpid=140 Bloomberg down by 1%. it is run by bill gates and his wife. before we go, big, <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005875"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005875" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> NYSE:MS Business,Personal Finance,Investing,Economy,Insurance http://player.clipsyndicate.com/view/225/1005848 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1005848?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/3/58/351/508d9315-249d-4feb-ba65-0fc3f39e545c_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Hong Kong Monetary Authority signed a memorandum with People's Bank of China on Yuan trade settlement. (The Trade)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1005848?cpt=8&wpid=140 Fri, 03 Jul 2009 01:21:37 +0000 China Offers Tax Breaks To Reduce Reliance On Dollar Hong Kong Monetary Authority signed a memorandum with People's Bank of China on Yuan trade settlement. (The Trade) http://www.clipsyndicate.com/video/playlist/225/1005848?cpt=8&wpid=140 Bloomberg time to implement its program to alow trade settlement in yuan. is it all about making the yuan more -- more global? >> yes. sorry, i was interrupted there for a sec. i think i heard the question. basically, yeah, the yuan, of course, haslinda, is not fully convertible. they're taking baby steps, really. we're seeing bank of china analysts calling this china's first step to make the yuan global. more importantly, at least in the short-term for chinese and chinese trading companies, it will protect ex-ports -- the exporters from those wild swings we've seen in exchange rates. most cross-border trade is settled in dollars, perhaps even ewe roes, even if deals were made or consummated in yuan, and many trading companies must bear those big swings we've sen in the dollar, ewe roe and other settlement currencies. the people's bank of china said tax authorities are working on proposed tax repates - rebates for taxes settled in renminbi. settlements outside china would take place in aussiian nations, including soing pore, chiland, indonesia and others. there's a predict that 50% of china's trade will be settled in the renminbi. hong kong monetary authority chief executive joseph yem signed the agreement sunday allowing chinese and hong kong companies to settle international trade in yuan. china is promoting greater use of the renminbi after they sent the warning shot over the bow in march after concern about a weakening dollar dragging on u.s. treasury holdings. china with nearly $2 trillion in foreign exchange reserves is the largest u.s. creditor, holding more than $76 0 billion as you see there. they renewed beijing's call for a stable dollar but quashed speculation that china is seeking talks on a new international currency at next week's g-8 meeting, he said he has not heard of such a plan. robert zellick weighing in overnight from chile where he said the dollar isn't going to go away any time soon as a reserve currency, but he added the u.s. should not take that status for granted and other currencies might eerge -- emerge eventually. at the end of last year, the dollar accounted for 64% of global central bank reserve, down from 73% we had in 201. haslinda? >> of course steve, <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005848"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005848" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Business,Economy,Stock Market,Banking http://player.clipsyndicate.com/view/225/1005818 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1005818?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/3/58/351/8d61b312-ae03-4c91-a3b1-e9abca2ce277_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Societe Generale's Kamata picks out of favor companies and waits for them to rise. (The Trade)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1005818?cpt=8&wpid=140 Fri, 03 Jul 2009 01:15:40 +0000 Kamata's Fund Has Risen 123% Societe Generale's Kamata picks out of favor companies and waits for them to rise. (The Trade) http://www.clipsyndicate.com/video/playlist/225/1005818?cpt=8&wpid=140 Bloomberg a big mover, helping to se the tokyo stock market. stock down by almost 7%, mike will be keeping us updated on this development throughout the morning. and funds manager has risen to the top by what he calls a susan boyle strategy. interesting scratji, there, patrick. >> we interviewed him and basically what he's saying is he's a patient man. what he calls the susan boyle strategy is trying to find the sort of unloved, unrecognized companies that everyone else has ignored and as you know from the youtube videos i'm sure you've been watching over and over again, susan boyle was on the talent she "britain's got talent" and came out singing "les miserable" "i dream a dream," had such a soaring voice it shocked the audience and became an overnight sensation. but it came out of the blue, was completely unexpected. these are the kind of companies he's after. the guys that everyone else is ignore, the guys that everybody is just not interested in. >> it's about finding the cheapest stocks that are not covered by brokerages? do we know what these stocks are? >> the way he describes his style is basically finding cheap companies based on p.b.r., adjusted p.b.r., deducting the off-balance sheet liabilities. he said he's made so many mistakes in the past when he was a growth fund manager, he doesn't ever want to pay to much he buys these cheap companies like nikkon that makes traffic signals for train, he also buys a company that makes plastic boxes that you use to store finals in. it's the most simple thing you can imagine. he waits and waits and waits, and he was saying like michael -- michael - michelangelo said, success is etornle patience. 4izz fund is up 20% over the last eight years and in the same period, the topix has fallen by 40%. it's not something you se every day here <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005818"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005818" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> TYO:3382, TYO:4516, TYO:1950 Business,Personal Finance,Investing,Economy http://player.clipsyndicate.com/view/225/1005804 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1005804?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/3/58/351/2cd08cc9-7880-4b3b-96b5-b89202af4f2a_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">New York Stock Exchange extends the trading to 16 hours and 15 minutes. (The Trade)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1005804?cpt=8&wpid=140 Fri, 03 Jul 2009 01:12:44 +0000 New York Stock Exchange Close Extended New York Stock Exchange extends the trading to 16 hours and 15 minutes. (The Trade) http://www.clipsyndicate.com/video/playlist/225/1005804?cpt=8&wpid=140 Bloomberg >> let's se what the second half has in store, maybe the fireworks on fourth of july wil cause some sparks in the dow as well. >> happy fourth of july to you, michelle mccoury. >> thank you. >> let's mive on to japan right now <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005804"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005804" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Business,Economy,Stock Market http://player.clipsyndicate.com/view/225/1005791 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1005791?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/3/58/351/566dbef2-7d6d-4383-b8e2-77d4101dffdf_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">China pushes for increase representation in International Monetary Fund. (The Trade)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1005791?cpt=8&wpid=140 Fri, 03 Jul 2009 01:06:05 +0000 China Allows Yuan Trade Settlement China pushes for increase representation in International Monetary Fund. (The Trade) http://www.clipsyndicate.com/video/playlist/225/1005791?cpt=8&wpid=140 Bloomberg NOW LET 'S SEE HOW THOSE YOU IS JOBLESS NUMBERS ON MOVING THE CURRENCY MARKETS RISKY WE OF CHRIS JOINS ME FROM THE SCENE WHEN YOU SHOULD ALSO ALTHOUGH NUMBERS FROM THE U. S. HOUSE THAT AFFECTING THE FEYERICK SPACE TRISH ALL FOOD CORRECT BOTH CERTAINLY NOT A PRETTY ENDED A WEEK FOR CURRENTLY IF IN THIS PART OF OIL HAVE % HESITATION PULLING THE TERRIBLE U. S. DEALT NUMBERS A OVERNIGHT LOW RISK AVERSION WAS ALREADY OUT UNDER ARRIVE % HESITATION EVEN FOR THE NON FARM PAYROLLS % HESITATION RELIEF THAT IN IN THE U. S. LAST NIGHT % HESITATION WE HAD YOU A POLITICAL CONCERNS IN LATE A SHARE OF TRADING AT WITH NORTH KOREA 'S A FIERY DEPRESSION ASSAULT % HESITATION AND A DISAPPOINTING % HESITATION DATA AS WELL % HESITATION OUT A EUROPE % HESITATION SO ALL IN THIS % HESITATION THERE OVER THE VEGETABLES ALREADY VERY MUCH TO THEME % HESITATION AND IT CONTAINED AT THE AT THIS MORNING AND % HESITATION THIS MORNING THE ONES THAT DO N'T LET OFF THE THE TO DOUBT THAT WAY TO BE COMMODITY CURRENCIES ARE THE ANTI WE HAD DOWN AND % HESITATION THAT HE AND HIS STRONG VERA RISK OF VISION THEME AND A FELLOW WHO COMMODITY PRICES BALL PEPPER CUB BUT % HESITATION THESE COMMODITY CURRENCIES BUT THIS DO N'T DON VERY MUCH UNDER WEEK AND WHAT AUDIENCE THAN KIWI DOLLARS I HIT IT PUT UP BECAUSE MAKE THE LAW IN SEVEN WEEKS THE STUDENT DOLLAR HECK BLUNT ABOUT TWO PERCENT AGAINST THE GREENBACK ON THE WEEK THE KILLING DOLLARS DOWN BY THREE PERCENT % HESITATION AND % HESITATION YEAH TRADE IF IT 'S BACK THEY DISCONTINUED CONTINUE TO BE TO CLEAN UP AT A REST OF % HESITATION THE SESSION RECITATION CURRENCIES ARE SURPRISINGLY BILL HOLDING UP VERY MUCH ON THE WEEK ABOUT BUT NOT BY THAT MUCH AMOUNT AT THE TRADERS I THINK THAT YOU KNOW THAT OF POSSIBLY BE ASIAN CURRENCIES WILL PROBABLY A SHED YEAH THERE WE COME WE GAINED OTHER FOR THE DAY IS OVER % HESITATION GIVEN THAT THE U. S. MARKETS ARE CLOSED TONIGHT I AND % HESITATION WE HAVE A LOT OF THE U. S. EARNING SEASON AS WELL % HESITATION IN IN THE COMING WEEKS SO A RISK OF HEPATITIS DEFINITELY GOING TO BE A SCALED BACK TAX TRASH HOW MANY YOU ON CHANNING SPENDING ISSUE ON SETTLEMENT TRADE WHEN YOU TRADERS MAKE ABOUT WELL THAT 'S WHAT IS THAT THAT I TRY AS CHINA 'S PUSHING FOR INCREASE % HESITATION % HESITATION REPRESENTATION REPRESENTATION IN THE EYE AND THAT % HESITATION THROUGH THE % HESITATION SPECIALLY DRAWING RISE BACKED BOREN 'S % HESITATION A DAY IN MAY HAVE TO COMPROMISE % HESITATION WITH THIS MOVE OUT BY % HESITATION IN ACTION INSURING THAT THEY YOUR MOVES FARTHER TO AS YOU ON CONVERTIBILITY AND THIS WILL OF COURSE A INEVITABLY RESULT IN FAST % HESITATION % HESITATION A PRE STATION ALL THOUGH YOU ON % HESITATION THEY QUESTION COMES OUT OF THE TIP OF THE I 'M A BONDS UP BACK BY % HESITATION SPECIAL DRAWING RIGHT THE F. D. R. WHICH A CARNEY WAITED ONLY IN FOUR CURRENCIES NAMELY THE U. S. DOLLAR DISTILLING THE EURO AND THE YEN AND CHINA ONE % HESITATION THE YOU WANT I LIKE IS LIKELY TO A PUSH FOR DO YOU WANT TO BE INCLUDED % HESITATION INDIA AS C. R . 'S WAITING AND AUTO PARTS DO SO IT WILL HAVE TO HAVE THE YOU ON FULLY CONVERTIBLE INVOKED THE CURRENT AND A CAPITAL ACCOUNT SO PEOPLE ARE LOOKING AT IT AS A AND OTHER STEP TO WHAT A FOR YOUNGER BUT ABILITY AND I THOUGHT THE ON APPRECIATION MORE SO THAN % HESITATION WAS MARKETS WOULD HAVE EXPECTED BACK TO YOU HAVE I GET VERY OWN TRASH IN THERE WE THANK YOU <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005791"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005791" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Business,Economy,Stock Market http://player.clipsyndicate.com/view/225/1005787 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1005787?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/3/58/351/bbc61df4-5b3d-4ad7-b036-94f9ed9a0748_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Rio Tinto gets 94.76% acceptance for rights that will trade in Australia. (The Trade)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1005787?cpt=8&wpid=140 Fri, 03 Jul 2009 01:03:31 +0000 Inside Look In Australian Stocks Rio Tinto gets 94.76% acceptance for rights that will trade in Australia. (The Trade) http://www.clipsyndicate.com/video/playlist/225/1005787?cpt=8&wpid=140 Bloomberg FOR DEAL RED ARROWS AND THE INSURANCE STOCK MARKET THAN I. D. Q. ITCH HAS THE DETAILS FROM SYDNEY HEIGHTS I THINK % HESITATION IT WAS AS IF THERE WAS A SIMULTANEOUS RUSHED TO THE CELL BY FROM THIS MORNING WAY SAYING AND NINETY PERCENT OF THE TOP TWO HUNDRED STOCKS HERE IN AUSTRALIA DIVING INTO THE RED THIS MORNING THE RESULTS THE STOCKS ARE MOSTLY OLD LOW OF GOLD OIL MEDALS PRODUCES THEIR POLL TAKING A HIT TODAY P. H. P. BELLA TEN DOWN BY NEARLY THREE PERCENT SEPARATELY BASE PAY HAS SOLD IT TO YOU BULL A NICKEL REFINERY IN QUEENS LAND FOR AN UNDISCLOSED SUM TO STUDY AND BILLIONAIRE CLIVE PARMA WE 'LL SAY SAYING ONE SIDE FORTIS SKI NEW CREST WHICH IS THE STUDIES BIGGEST GOLD MINE OLA TAKING I A DEEP INTO THE RED TODAY WITH THE BENCHMARK INDEX ABOUT ONE AND A HALF PERCENT LOLA SHARES OF RIO TINTO A HALT AT THE MOMENT THAT 'S FOLLOWING ITS I INSTITUTIONAL SHARE SALE NINETY FIVE PERCENT OF REALIZES STRUTTING SHAREHOLDERS TOOK OUT THAT WRITES ABOUT AND THAT BELIES A NINETY SEVEN PERCENT TAKE UP AMONG U. K. SHAREHOLDERS WE HAD A COUPLE OF RATINGS CHANGES AMONG THE MAJOR BANKS AS WELL MERRILL LYNCH HAS CUT ITS RATING OF THE COMMONWEALTH BANK FOR MUTUAL TO UNDERPERFORMED AND THE NATIONALIST CHARLIE A BANK WAS UPGRADED FROM UNDERPERFORMED TO MUTUAL HOWEVER I WAS STILL SEEING THE MAJOR BANKS % HESITATION IN THE RED AND UP TO ALL THE UNIMPRESSIVE MARKET NEWS TODAY I THINK I 'LL FINISH WITH HIM A SOMETHING MORE UPDATES AMAT BAIT A CODE DADA AN INDEX OF THE STUDY IS SERVICES INDUSTRY EXPANDED FOR THE FIRST TIME IN FIFTEEN MONTHS IN JANE AS GOVERNMENT CASH HAND OUTS AND LOWER INTEREST RATES START CONSUMER SPENDING IN HAS LINDA WE 'VE HAD A SOME MIXED SIGNALS ON THE STATE OF THE ECONOMY THIS LATE YESTERDAY OF COURSE EXPORTS FELL MUST IMPORTING MONTHS WE 'LL SAID WAKE HOUSING MARKET DOUBT % HESITATION AND NOW WE 'VE HAD THIS POSITIVE SERVICES DADA SO I THINK NEXT WEEK IS GOING TO BE VERY INTERESTING TO SEE WHAT THE RESERVE BANK DECIDES TO DO ON INTEREST RATES AT ITS MEETING NEXT TUESDAY HAS BACK TO YOU UNCERTAINTY VOLATILITY CONTINUE WELL WATCH THAT RACE HI THANK YOU SO MUCH FOR THAT <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005787"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005787" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> ASX:BHP, ASX:FMG, ASX:WPL, ASX:RIO, OTC:NABZY Business,Economy,Stock Market,Energy,Banking http://player.clipsyndicate.com/view/225/1005784 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1005784?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/3/58/351/1a1bc226-db79-43aa-97de-44919c4f0e74_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">U.S and Europe cuts their export demands on consumer electronics from Japan. (The Trade)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1005784?cpt=8&wpid=140 Fri, 03 Jul 2009 01:01:49 +0000 U.S And Europe Cuts Their Export Demands From Japan U.S and Europe cuts their export demands on consumer electronics from Japan. (The Trade) http://www.clipsyndicate.com/video/playlist/225/1005784?cpt=8&wpid=140 Bloomberg THANKS WATCH PRESSED ON THEM LIKE AT THE WALL WITH THE LATEST IN JAPAN MIGHT PICK AN ALLY WELL HAS AND THAT EXPORTERS FALLING ON WORRIES THAT RISING UNEMPLOYMENT BOTH IN THE U. S. AND EUROPE WE 'LL CUT DEMAND BECAUSE OF INCLUSION RALLY TUNICS FROM JAPAN THE U. S. JOBLESS RATE RISING AT NEAR A TWENTY SIX YEAR HIGH LAST MONTH AT NINE AND A HALF PERCENT IN YOUR PICK ROSE TO THE HIGHEST IN THE DECADE ALSO NINE POINT FIVE PERCENT OF THE WORKING POPULATION OUT OF A JOB NOW SEVENTY MAKES HOPEFULLY CELLS IN THE U. S. AND EUROPE SO IT 'S GETTING HIT TODAY DOWN BY A ONE POINT SIX CENT CANNON DOWN ONE POINT THREE PERCENT WILL SAVE SEEING A WEAKNESS IN THE OLD TO MAKE HIS BAT BUT NOT AS BAD WE 'VE GOT SUCH WAY AT A OFF JUST A QUARTER OF ONE PERCENT AND HONDA % HESITATION THE MOMENT % HESITATION UNCHANGED FULLY DEMAND FAGS POOLS OF COURSE MEANS FOLDING DEMAND FOR THE SHIPS THAT TO CARRY THEM AROUND THE WORLD MISERY O. S. K. GETTING HIT THE HARDEST OF THE BIG THREE SHIPPING LINES HERE IN JAPAN DOWN BY THREE POINT SIX THE SENSE RISING UNEMPLOYMENT ALSO HURTING RETELL IS HERE IN JAPAN SEVEN ON ALI 'S FIRST QUARTER PROFIT FALLING MORE THAN TWENTY EIGHT PERCENT RECESSION CUT DEMANDS AT ITS ITO YOKADO AND YOU 'LL BENNY MAHLER SUPERMARKETS WEB REVENUE PLUNGED FIFTY NINE PERCENT SUMMARIZE SHARES TRADING DOWN BY SIX POINT FIVE PERCENT NOR SO NO TRADING UP % HESITATION BY HOFF OF ONE PERCENT JAPAN 'S SECOND LARGEST CONVENIENCE STORE OPERATES A REPORTING A FORTY THREE PERCENT SURGE IN FIRST QUARTER SALES NOW IT ADDED THIRTY FOUR BALLOTS IN THE FIRST QUARTER IT ALSO MADE ITS DISCOUNT CHAIN NINETEEN NINE PLUS A SUBSET JURY THAT 'S A STORE THAT SELLS STUFF OUTSIDE NINETY NINE YEN PLUS TAX SINCE THE NINTH HAS LEARNED ABOUT HIM ALL RIGHT I DO N'T THINK IT 'S A LAUGH <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005784"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005784" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> TYO:6758, TYO:7751, TYO:7203, TYO:7267, TYO:3382 Business,Economy,Consumer Electronics,Automotive http://player.clipsyndicate.com/view/225/1005685 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1005685?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/3/58/351/1256c240-56a0-48d7-8ed6-c0bbcb76ab22_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Live! From NYSE Trading Floor - Interview with NYSE Euronext Head of Markets VP Larry Leibowitz (Bloomberg News)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1005685?cpt=8&wpid=140 Thu, 02 Jul 2009 20:44:52 +0000 Spotlight - NYSE Euronext Live! From NYSE Trading Floor - Interview with NYSE Euronext Head of Markets VP Larry Leibowitz (Bloomberg News) http://www.clipsyndicate.com/video/playlist/225/1005685?cpt=8&wpid=140 Bloomberg lydia is standing by. >> i am here with a one guest who is the executive vice president at nyse. the big question has to do with the extension of trading today. why did that happen and is this and a regular thing? >> we had some connectivity problems were customers were having problems getting into the building. we were having problems getting orders to the post. but we wanted to do was extended the close and give everyone a chance to get their orders executed. >> when did you first start having problems with the connectivity issues? a few traders said there were problems this morning. what time was the problem? >> there was a problem this morning that was resolved and another one that occurred at 3:30. they seem very similar. we will be checking it all weekend, but we wanted to make sure we went through a manual process. >> have you ever extended trading because of an execution problem like this? > yes, it is unusual in the one we don't take lightly, but when you have a widespread problem you want to give customers a chance. >> was the issue that orders for getting lost? >> customers were getting orders they could not get down to the floor or they byrd getting stuck. > said you ended up -- getting down to the floor or they were getting stuck. >> people might be concerned about trade is getting lost or they're being further glitches. what is the nyse doing to prevent that? what does this say about the need to have human beings executing trades? >> we are constantly going through a program of improving our system. things will always happen with computers just like with people, but we want to make sure we can recover as quickly as possible. in our case, having people around the really came through either because that allows us to have a close wary would normally be difficult. >> do you know why this happens. >> no, but we will need to figure this out. >> how often do problems occur like this since you have become more electronic? >> it is very rare when they happen, particularly the ones we had today. most of them recovered relatively quickly are very unusual. -- most of them recovered relatively quickly. we have not had one since i have been here. > just so people understand better what happened today. there was a flurry of activity behind me. this is exactly why that happened. back to you. <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005685"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005685" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> NYSE:NYX Personal Finance,Business,Economy,Stock Market,Technology,Editors Pick http://player.clipsyndicate.com/view/225/1005677 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1005677?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/2/58/351/3fc8fb40-e3cb-44b4-b867-07de22586ae2_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Interview with David Tice of Federated Investors (Bloomberg News)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1005677?cpt=8&wpid=140 Thu, 02 Jul 2009 20:22:53 +0000 Economic Expectations - Unemployment Rate May Reach 15% Interview with David Tice of Federated Investors (Bloomberg News) http://www.clipsyndicate.com/video/playlist/225/1005677?cpt=8&wpid=140 Bloomberg conversation with david. you started the prudent bear fund which has become famous. let me ask what you think about -- and kathleen hays is here as well. >> we were excited about the extended trading. david has very strong views on the economy. >> i appreciate that. i want to start by taking on the jobs number. it was worse than expected but we did see the unemployment rate not rise as quickly as we have seen in the past. what will we see as far as unemployment in the future the the effects i'm guessing you think this could go further. > i think it could get to be even higher than 12%. this is a secular decline in the economy. we believe it will be a depression. we certainly have some much consumer infrastructure we have to work off. a lot of businesses are hanging on by a thread. sales are down 30% and profitability is the way down. -- profitability is way down. >> let me focus on the inventories issue. if we had seven quarters in a row of declining inventory, the first quarter was the biggest drop we have ever seen. haven't we gone far enough? > the is this is not just an inventory recession, -- this is not just an inventory recession. we are building far too many shopping malls and movie theaters. bill gross said it in 2004, the u.s. needs to mush and spends too much. we do it with 80% of the world's savings. we now have a big hangover from that excess. >> i can see that either. either -- i can see that, but we still have -- let's take about 90% of the people are working. you have most people who can afford their mortgage payments they cannot pay those. i hear your doom and gloom, but there are americans that will keep spending and driving their cars. it seems like that is the other side of the coin that will prove you wrong. >> be diminishing in asset -- dd munition -- the dimunition in asset terms is at a rate of 20%. individuals have their homes declined a lot. >> not everybody's homes declined. >> overall, we went down about 35%. we had not seen anything like that. >> isn't that enough? we have seen stocks come down and household net worth drop by the toilet -- drop by the trillions. >> the excesses' were so big getting here, one analyst considered before he died that real estate prices would be down more than 50%. as far as there has been foreclosure moratorium's up until one month ago, those are coming back in. we are at 45 months in terms of inventory. there is virtually no origination. a lot of people who have not sold their homes are hanging on because they hope it will come back. we rx 75% of homeowners of american citizens, and therefore who will we sell to? >> people are going to stay in their homes and go to work. >> they will, but if you had a 20% dimunition in household worth 80 when add to eat a few times a week, people are not going to go out as often as they did in the past. and a lot of shopping centers will have stores closed. >> we will take a quick break. when we come back i want to talk about de-leveraging. stay with us. we are back with david in two minutes. >> let's get back to david. i want to talk about de- leveraging. your problem is spurring economic growth with credit expansion. it is shocking when you look at the chart of u.s. household debt, and we had it loaded up. 52 -- $52 trillion is where we stand right now. how do we work our way down from that? > individuals will have to pay off debt. we have way too much mortgage debt. we experienced the mortgage financial bubble which brought us back from the decline rick greenspan cut interest rates. - brought us back from decline when greenspan cut interest rates. unfortunately there will be a lot of defaults and a lot of banks are going to go on solvent. it is possible we might have some nationalization of banks down the road. there is going to be a lot of people losing money from this credit. >> what we would like to have you look at is a chart we looked at earlier. he made the point that the u.s. coming out of the depression, a lot of high-powered money did boost demand and did help end the depression. the fed is all over the high- powered money. why don't you think it will have the same impact the the coming out of the great depression which was even worse than this? >> there is one quote from the secretary treasury under roosevelt. he said four years that either after word -- he said cosher years after roosevelt was in power. -- four years after roosevelt was in power. >> you gave me a copy and i will check that out. you mentioned spending all that money and i want to bring in a question from a viewer. david asks if you agree with the idea that we may not see new lows because the government will continue to print money, those markets will continue to rise, hence shorting the market will not work. it does make sense although it seems like it is unstable scenario. >> he could be right, but i do believe the market is a discounting mechanism. the overall market will fall first. the deflationary legs are early before we get to another deflationary leg. i believe the stock prices will break through loews. the that is a reason the that we hold resources inside our prudent fund because there is a risk that stock prices don't go down that much. that is what happened when stock prices went up a lot, but they did that do that well at all. > are you worried about inflation? you're not looking forward to them, but we need to go through the serious inflation -- do we need to go through serious deflationary before we get out of this? >> the excesses' were so great, and i would like to point to the austrian school of economics where the magnitude of the decline mirrors the excess is created in the prior boom. physics was my worst class in high school, but there is a great deal of physics in that you have an action and there is an opposite and equal reaction. >> why are you worried about inflation because it could get to 15%. do you think we will have another great depression? where does the inflation come from? > our federal reserve is so willing to create additional credit and provide a debit cards to our bankrupt citizens. this is different than the 1930's when you went into the liquidity trap. here we have the mechanisms, and bernanke said we possess a printing press. they're giving out debit cards out for unemployment insurance. the government does not care if you can pay it back or not. if the u.s. dollar declines dramatically, which i expect, there could be a big meeting in september. the bric countries just had a significant meeting. they are worried about our treasuries and our currency. >> it is a pleasure spending time with you. <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005677"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005677" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Law & Legal Issues,Personal Finance,Business,Economy,Stock Market,Real Estate,Government & Politics,Careers & Occupation,Editors Pick http://player.clipsyndicate.com/view/225/1005483 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1005483?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/2/58/351/a2ab458e-ed91-45fc-a168-f85734948f8e_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">NYSE Extends Trading to 4:15 Due to Technical Glitche; S&P Falls 2.8%; Dow Falls 2.5%; Nasdaq Falls 2.7%; Live! From NYSE Trading Floor - Interview with Alan Valdes of HIlliard Lyons (Bloomberg News)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1005483?cpt=8&wpid=140 Thu, 02 Jul 2009 20:14:49 +0000 Market Close 7.2 NYSE Extends Trading to 4:15 Due to Technical Glitche; S&P Falls 2.8%; Dow Falls 2.5%; Nasdaq Falls 2.7%; Live! From NYSE Trading Floor - Interview with Alan Valdes of HIlliard Lyons (Bloomberg News) http://www.clipsyndicate.com/video/playlist/225/1005483?cpt=8&wpid=140 Bloomberg we are finally about 20 seconds away from the closing bell. either an unusual day before this long holiday weekend. -- an unusual day for this long holiday weekend. there were some glitches in trading that extended the day. they decided to actually extend it to 4:15. we are seeing the dow jones average declining 214 points. you said it was a pretty quiet day. here we are at the last 10 minutes before what we saw would be the close. >> volume was still pretty light. we had your than 1 billion shares traded on the floor. look at the activity around here. it is a hive of activity. you have traders running around and doing it in an open outcry the way. they extended the close because they had system irregularities. i brought one analyst here to explin to us what that means. >> it is like old times again. when i started here we did everything by hand. we just had a glitch. there is nothing major. it just extended the hours by 15 minutes because it took us more time to get to the post and break things down. that is really a minor problem. but it did at 15 minutes because we had to do everything by hand. >> the migration here has been through more electronic trading and using the hand-held computers. is this a concern considering sometimes they have to extend trading because this does not work request that is what happened today, but it is very rare. most of the time this market closes right at 4:00. this is probably the first time we closed later because of this. it is just a small minute thing here. it did not affect prices, it was just something we had to do because we physically had to close. >> can you explain to the people at home who do not understand how things work here and why this is like going back in time? >> years ago when i started we did everything by hand. we would have to stand in the crowd and the write everything down. we all used program numbers down here. after 1987 we realized we could not do that anymore because volume had picked up. in the crash of 1987 we realized we had to computerize. the systems had upgraded and now we have the best system in the world. this is something that never happened. we had to go back and do it the old way this time. we still use our hand-held devices, but we had to go and write down the names. >> trading extended because they wanted to make sure everything but the executive. it has been a high of activity. lots of folks running around. there has been some frustration expressed by some traders because of what happened. >> thanks very much for that. <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005483"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005483" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Law & Legal Issues,Personal Finance,Business,Economy,Stock Market,Editors Pick http://player.clipsyndicate.com/view/225/1005535 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1005535?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/2/58/351/3d43d4c8-9cba-45c8-8dc8-5f2252bbbb37_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Analysis and Discussion with Thomas Lee of JPMorgan Securities (Bloomberg News)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1005535?cpt=8&wpid=140 Thu, 02 Jul 2009 19:44:29 +0000 Inside Look - JPMorgan's "Smoke Stackey" Recovery Analysis and Discussion with Thomas Lee of JPMorgan Securities (Bloomberg News) http://www.clipsyndicate.com/video/playlist/225/1005535?cpt=8&wpid=140 Bloomberg economy because of its size and impact. why is this report worth watching? >> one thing to rember is even though manufacturing is only about 9% of employment, it is over 30% of corporate profits, sort of a huge generator of overall corporate earnings and s&amp;p market value, and i sing one of the differences is we have been noting -- i think one of the differences we have been noting is in past cycles consumers generally drive the recovery. what are economists are really seeing is a recovery triggered by the global industrial cycle, one that is going to be very resource-intensive, and that is going to give the son v--- a v- s shaped recovery. >> you talk about 115% of gdp is the emerging market grows. is it really that high? is that what is leading this? >> 10 years ago, it was easy to view it doesn't export economy. today it is 115% of u.s. gdp. emerging markets are about an 800 trillion dollar consumer. as big as the u.s. consumers still is in magnitude, it is not thought much bigger than the emerging market consumer. >> based on your of look at jpmorgan, you're looking at what you're calling smokestack and stocks. talk about that. >> we think it is going to be a slightly different recovery, and i think that is why there is a lot of non-consensus. we think smokestack industries tied to the industrial cycle are going to do considerably better than expectations for rigger we have been spending a lot of time with our analysts. -- better than expectations. we have been spending a lot of fun with our analysts. if industrial recovery takes place, it will affect steel sector, auto parts, tanker stocks, very smokestack- intensive groups. >> something interesting i noticed you report. you said you do not like gold because you do not think there's going to be inflation. could you talk about that? >> the reality is inflation is expectation. because there is a huge output gap and so much slack in terms of unemployment, i think there's very little inflationary pressure. we could have a weak <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005535"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005535" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Law & Legal Issues,Personal Finance,Business,Economy,Editors Pick http://player.clipsyndicate.com/view/225/1005463 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1005463?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/2/58/351/75464d9a-b237-4414-8995-5312594d27ed_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Firing Up Your Fourth of July - Interview with Amy Farley of Travel & Leisure Magazine (Bloomberg News)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1005463?cpt=8&wpid=140 Thu, 02 Jul 2009 18:50:00 +0000 Inside Look - Traveling in a Recession Firing Up Your Fourth of July - Interview with Amy Farley of Travel & Leisure Magazine (Bloomberg News) http://www.clipsyndicate.com/video/playlist/225/1005463?cpt=8&wpid=140 Bloomberg will the recession keep travelers close to home this fourth of july weekend? amy farley is the editor of "les year-end travel magazine." -- "travel and leisure magazine. " people are watching their wallets and traveling by car. will the price of oil affect where they go? >> it looks that way. triple a released a study last week that said that travel will be down about 1.9% this year over last year. last year it was a huge decline from 2007. it is going to be down they expect there'll be less people on the brokerage wrote travel will go down about 2.6%. there will be more people flying this year which is interesting because passenger numbers and airplanes have been plummeting. >> i would not have thought that. air travel is more affordable right now? >> yes, it is more affordable than one year ago. that is still only 2 million people flying. it is definitely an increase which reflects the great airfares which are out there. >> given the fact that in this economy we have hotels doing whatever they can to get people in because there's a lot of occupancy but they want their occupancy rates to go up, does this mean that some of the luxury hotels will have deep discounts in order to entice people to come? >> absolutely. luxury hotels don't want to discount so what they do is they create packages like three nights for the price of 12. they might -- the price of two. when you calculate the packages, that is a 30% discount. luxury hotels are offering good value right now. we keep telling people that if you think it was out of your price range, look again. > and regions in the country where people can get the most bang for their baht? >> cities are great and places that have built up a big hotel inventory like las vegas, miami. >> these are people up in -- who have been hurt by the recession in the housing market. the municipalities can use the money. they are doing what they can to lure people in. >> yes. >> talk to me about the airports. you mentioned that many people are flying right now. many people say they have airport horror stories. they do not want to fly because they do not want the hassle. is that improving? >> it actually is. the most recent numbers show that there is a slight decline in flight delays this year over last year. things are improving. that is a factor of less people having to fly. flight delays are down but especially in the summertime, after an storms come through and can wreck havoc on the flight schedule. people should be aware of such things especially on a holiday weekend. >> in talking to people, any paper airports they have out there? which airports -- i do not want to ask which ones they do not like. >> we do not have that yet but we will be able to tell you that in a few months. i can tell you my favorite. >> which is? >> minneapolis airport. > why? >> may have low numbers and it's very convenient. >> is it too late for consumers to go out and spoilers? can i find good deals 48 hours before the fourth of july? >> absolutely. the story this year with trouble is deals and last-minute bookings. luxury hotels that used to receive bookings five months in advance are offering the deals the day of. there are many deals out there. i recommend traveleddeal.com. you can find deals for hotels in washington d.c., new york city, packages to cancun, if you really want to get away. > thank you for being with us. <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005463"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005463" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Law & Legal Issues,Travel,Personal Finance,Business,Economy,Transportation,Home & Lifestyle,Holiday,Editors Pick http://player.clipsyndicate.com/view/225/1005449 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1005449?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/2/58/351/b11a3e8a-87df-4a33-91af-204553e8fcf2_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Live! From White House: President Barack Obama Holds News Conference (Bloomberg News)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1005449?cpt=8&wpid=140 Thu, 02 Jul 2009 18:37:23 +0000 Obama Addresses Job Losses Live! From White House: President Barack Obama Holds News Conference (Bloomberg News) http://www.clipsyndicate.com/video/playlist/225/1005449?cpt=8&wpid=140 Bloomberg president barack obama in the white house rose garden on bloomberg news. >> we will talk about growth and progress of a sector that represents a big piece of america's economic future. as our economy and dances to the challenges of a new century, new ways of producing and savings and distributing energy offer a unique opportunity to create millions of jobs for the american people. this is a timely discussion. this is a day of sobering news. the job figures released this morning show that we lost 467,000 jobs last month. while the average loss of about 4000 jobs per month this quarter is less devastating than the 700,000 per month that we lost in the previous quarter and while there are continuing signs that recession is slowing, this is not much comfort to americans who have lost their jobs. we have taken extraordinary measures to blunt the hard edges of the worst recession in our lifetime. we want to offer assistance to those who have borne the brunt of this economic storm. as i have said from the moment i walked in the door, it took years for us to get into this mess and it will take more than a few months to turn it around. that is why the discussion that we had today is so important. it is men and women like these who will help lead us out of this recession and into a better future. my job and our job as a government is to do what ever we can to unleash the great generative powers of the american economy by a purging their efforts. i am confident that we can prove once again what this nation can achieve when challenged. i am confident that we are not only going to recover from the recession in the short term but we will prosper in the long term. to do that, we have to act now. we have to build a new foundation for lasting growth. energy is one of the pillars of this new foundation. it is essential to a recovery and our long-term prosperity. i am pleased to say that we have achieved more in the last few months to create new clean energy economy than we had achieved in many decades before. the recovery plan will double our country's supply of renewable energy. it is already create new, clean energy jobs. thanks to a remarkable partnership between automakers, autoworkers, environmental advocates, and state, we also set in motion a national policy to increase class mileage and decrease carbon pollution for all new cars and trucks sold in this country which will save us 1.8 billion barrels of oil. last friday, the house of representatives passed an extraordinary piece of legislation that would make renewable energy the profitable kind of energy in america. it will reduce our dependence on foreign oil. it will prevent the worst consequences of climate change. it will hold the promise of millions of new jobs. these are jobs that cannot be outsourced. the ceo's standing behind me know a lot about these kinds of companies. these are folks whose companies are helping to lead the transformation toward a clean energy future. even as we face tough economic times, even as we continue to lose jobs, these ceo's said they are looking to hire new people and in some cases to double or triple in size over the next few years. they are making money and they are helping their customers save money on the energy front. these companies are better examples of the kind of future we can create. it is now up to the senate to continue the work that was begun in the house to forge this or prosperous future. we will need to set aside the posturing and the politics and when we put aside the old radiological debates, our choice is clear. it is a choice -- and the old ideological debates, our choice clear. it is a choice between the past and the future. the american people, i believe, want us to make the right choice. i am confident that the senate will. at every juncture in our history, we have chosen to seize the opportunities rather than fear big challenges. we have chosen to take responsibility. we have chosen to honor the sacrifices of those who came before us and fulfill our obligation to generations to come. that is what we will do this time, as well. thank you are much, everybody. <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005449"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005449" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Law & Legal Issues,Personal Finance,Business,Economy,Energy,Government & Politics,Careers & Occupation,Editors Pick http://player.clipsyndicate.com/view/225/1005433 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1005433?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/2/58/351/f2a88290-8635-4d39-8186-022edb52e427_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Exclusive Interview with Biden Chief Economic Adviser Jared Bernstein (Bloomberg News)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1005433?cpt=8&wpid=140 Thu, 02 Jul 2009 18:03:34 +0000 Inside Look - More Jobs Lost in June Exclusive Interview with Biden Chief Economic Adviser Jared Bernstein (Bloomberg News) http://www.clipsyndicate.com/video/playlist/225/1005433?cpt=8&wpid=140 Bloomberg the economy continues to shed jobs. the unemployment data for june came out worse than most economists expected. what is washington doing? jared bernstein as it did -- standing by at the white house. he is the chief economic adviser to vice president joe biden. welcome to bloomberg news. people have been telling us all day that the numbers shocked them. what is the white house reaction? >> this president is acutely aware of the difficulty that working american families face in a job market like this. were these numbers disappointing? of course they were. on the other hand, there is solid evidence that some of our economic intervention, including the recovery act are taking hold and helping make things a little less bad than they would be otherwise. let me be very clear -- last that is not the goal posts we are shooting for. >> you said solid evidence. what might that evidence be? >> good question. if you look at the indicators on the overall economy, retail sales appear to have stabilized for existing home sales have stabilized. even if you look at the job market, you see some truly negative numbers there, you will note that the average job losses per month in the second quarter , 436,000, compared that to the first quarter where the average job losses were 700,000 per quarter, over 2 million jobs in the quarter. there is a deceleration in the rate of job loss. it is nothing like we are looking for, by any means. that is some progress. >> what about the steep rise of long-term unemployment during the recession? what policies can the ministration put together to address that? >> that is an important question. long-term unemployment means the job creation is too weak. the recovery act, as to -- comes into play here. we allocated wondered $60 billion of this act and it is only 130 days old. -- we allocated $160 billion of this act and it is only 130 days old. 2000 infrastructure jobs are up and running, employing people who would otherwise be jobless. that will run up during the summer months. we will see some job creation providing necessarily to the long term unemployment problem. >> well the president push for more stimulus money if things don't get better sooner? i think >> i think the answer to that question has to wait. we have to examine the impact of a recovery act. we have to give a fair chance, get them as an end to the system. -- get the medicine into the system. we are talking about a $787 billion act. it is too early to make that judgment, yet. >> you have heard the criticism about the stimulus that is not working. the white house has been saying that is unfair because that money has not been spent, yet. if that is the case, would that then mean that the plan was poorly conceived and poorly rolled out? >> obviously, i would disagree on both of those fronts. the recovery act is working. if you're benchmark a working recovery act is a falling unemployment rate and net positive job numbers, i would argue that is the wrong benchmark. it is always difficult to convey this. it happens to be the truth which is that the unemployment rate would be growing higher. the rate of job loss would be deeper in the absence of this act. in terms of the rate of spending, the president has said many times that we have a tough road ahead of us in the job market. it is always a lagging indicator. even as the economy is widely forecast to go into positive territory by the end of the year, we think the job market will lag. it is important that this plan continues to spend throughout next year. >> you have heard there is reduced numbers for the health care reform plan. it is estimated at perhaps $4 billion. how does the white house the view that? will that make it easier to get this passed this year? >> i will wait and let some of the health care to respond. what i would say is that what is important there is that the health care plan that we have articulated is a deficit-neutral plan. we have found savings and revenue to pay for every dollar of our health care reform proposal. whenever that level is, the critical point from our perspective it is that it is deficit-neutral. >> thank you so much. <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005433"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005433" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Law & Legal Issues,Health,Personal Finance,Business,Economy,Government & Politics,Careers & Occupation,Editors Pick http://player.clipsyndicate.com/view/225/1005407 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1005407?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/2/58/351/b222849a-a6ac-4bfc-b05d-987c76003dbc_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Studios Drop 16% to $405K, 1BRs Drop 17% to $650K, and 2BRs Drop 23% to $1.2 Million (Bloomberg News)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1005407?cpt=8&wpid=140 Thu, 02 Jul 2009 17:38:44 +0000 In-Depth Look - Manhattan Prices Plummet Studios Drop 16% to $405K, 1BRs Drop 17% to $650K, and 2BRs Drop 23% to $1.2 Million (Bloomberg News) http://www.clipsyndicate.com/video/playlist/225/1005407?cpt=8&wpid=140 Bloomberg the real-estate bubble has deflated here with home prices plummeting and foreclosures reaching records. a report says one markets said to be invincible has finally taken a hit. we are here to tell you which one and why. which one are we talking about? >> [unintelligible] >> they have held up until this point. >> it has held up with either there have been sporadic price declines -- it has held up. there have been sporadic price declines. >> what is causing the drop now? >> what has happened is you have had a lot of condominium closings that were new developments built during the boom time, so negotiating prices in 2005 were only closing in late 2008, so that data was still in the focus report. that was keeping the median high. the sales in the last quarter were under $1 million, so that made the median go down. > what is happening now is a cross all types of units. i think the large units are hit the most. these are pretty significant numbers. when you talk about sales, i know everybody hears about sales in new york and they think they are high. talk to me about the typical sales in the second quarter. >> it was under $1 million. a 61% was under $1 million. we have a lot of first-time buyers. >> is that unusual? >> it is a change from previous years. at this time last year it was under 50%. >> what about luxury sales for those high and apartments? >> a lot of those did not happen this quarter. the top luxury market is considered the top 10% of all sales. last year at that time it was sales above $3.3 million. this year it was around $2 million. >> what about mortgage rates? we have been talking about the impact of rising mortgage rates. what does mortgage financing -- what impact are we seeing? >> you see that in the luxury market. it is tough to get a jumbo mortgage. that would be anything over $729,000. any kind of property the that would be luxury would require a jumbo mortgage. >> so tough times hitting york at this point. thank you so much. -- so tough times hitting new york at this point. <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005407"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005407" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Law & Legal Issues,Personal Finance,Business,Economy,Real Estate,Editors Pick http://player.clipsyndicate.com/view/225/1005402 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1005402?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/2/58/351/1b31f322-eb10-4b70-b65e-9b01d19cea27_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Banks Are Repackaging Bad Loans Without PPIP (Bloomberg News)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1005402?cpt=8&wpid=140 Thu, 02 Jul 2009 17:30:58 +0000 In-Depth Look - "The Greatest Program That Never Occured" Banks Are Repackaging Bad Loans Without PPIP (Bloomberg News) http://www.clipsyndicate.com/video/playlist/225/1005402?cpt=8&wpid=140 Bloomberg a budget deficit. one investment banker calls it the greatest program that never occurred. what are we talking about? we are talking about -- >> the public private investment program, ppip. it is supposed to be the government cure all for the toxic assets. it is supposed to get them away and it created optimism, but it has not actually happened yet. there are a couple of good signs. the commercial real estate market, commercial mortgages. the barclays capital commercial marketplace index, it has taken off. the big jump up was from march 23 when timothy geithner announced the ppip program and the stock market went up 500 points. you can see the steep incline in the past couple of weeks. that is an interesting point because with this going on -- the banks are able to find creative ways to package new securities without the need of the government, without this ppip program. they are getting them out there and they're being creative with it. >> everybody was worried about the commercial real-estate market. > everybody is worried about it. they're worried about the refinancing rates, but the best way icahn explained it is -- the best way i can describe it is one analyst says and what we are doing with that rally is getting rid of the armageddon scenario. the commercial mortgages where so beaten up that they are getting a rally now. now the banks can cleanse their balance sheet by themselves, that is helping. >> maybe some overreaction before and now we realize the banks can deal with it. does that mean we do not need ppip anymore? >> i caught up with one analyst at raymond james. he believes ppip is unnecessary for the recovery. he feels that although it is a good risk regulator, it is not need at this time. >> what is it, the greatest program never need? the thank you so much. -- thank you so much. <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005402"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005402" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Law & Legal Issues,Personal Finance,Business,Economy,Banking,Government & Politics,Editors Pick http://player.clipsyndicate.com/view/225/1005400 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1005400?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/2/58/351/3c3c0d21-523e-46e7-8c5d-4c2374557e1a_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Federal Marshals at Madoff Apartment; According to Washington Post, Lawyer Warned SEC About Madoff; Lear to File for Bankruptcy (Bloomberg News)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1005400?cpt=8&wpid=140 Thu, 02 Jul 2009 17:17:52 +0000 Afternoon Newsbites - Madoff Scandal, Lear Bankruptcy Federal Marshals at Madoff Apartment; According to Washington Post, Lawyer Warned SEC About Madoff; Lear to File for Bankruptcy (Bloomberg News) http://www.clipsyndicate.com/video/playlist/225/1005400?cpt=8&wpid=140 Bloomberg either federal marshals have arrived at bernie madoff's 7 million-dollar manhattan apartment. last week a federal judge authorized the government to seize his apartment on the upper east side. his wife has continued to live in the apartment but has agreed to surrender it. he was sentenced to 150 years in prison for masterminding the largest ponzi scheme ever. as the sec lawyer weren't the the agency about bernie madoff in 2004 -- as one sec lawyer warned the agency about bernie madoff in 2004. cease suggested the agency questioned bernie madoff further. they told them to focus on an unrelated matter. one of those securities was eric swanson. he later married made of's needs. -- he later married bernie madoff's niece. the company which makes automotive seats filed for bankruptcy after reaching an agreement. it plans to start restructuring under court protection. the company has a commitment for $500 million for the bankruptcy. the is more than 20 autoparts makers have filed for bankruptcy -- more than 20 of the parts makers have filed for bankruptcy. <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005400"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005400" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> NYSE:LEA Law & Legal Issues,Personal Finance,Business,Automotive,Government & Politics,Emergencies & Disasters,Crime,scam,Editors Pick,Fraud http://player.clipsyndicate.com/view/225/1005317 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1005317?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/2/58/351/e255d92e-2f03-403a-9913-f5a5b10cf2b0_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Analysis and Discussion with Vassilli Serebriakov of Wells Fargo Bank (Bloomberg News)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1005317?cpt=8&wpid=140 Thu, 02 Jul 2009 16:45:23 +0000 Currency Outlook - Still Seeing Relative Dollar Strength Analysis and Discussion with Vassilli Serebriakov of Wells Fargo Bank (Bloomberg News) http://www.clipsyndicate.com/video/playlist/225/1005317?cpt=8&wpid=140 Bloomberg let's take a look at currencies as well. the job loss number is affecting currencies. this is weighing on equities but sending some investors for the safety of the dollar. if you can see the dollar's strength on the euro and pound. to top of that, we are joined by an analyst. we will talk about the impact of the dollar. you are a currency strategist at wells fargo. let me get your take on the impact of the jobs numbers. you say it is really nothing unexpected when you get a number like this. >> the number was negative for risk appetite. the dollar went higher year. -- went higher. this is pretty consistent. the yen has has lost some of its safe-haven support. the lower equity markets would certainly be in line with the rise in the yen. >> let's talk of the safe-haven status of the dollar. it has been debated whether it is may be losing some of its lost there, it seems like any time there is a little bit of a concern or the six spikes up and equities dropped, people to run for the safety of the dollar. >> debt by -- despite the conflicting data from china, global banks are still buying u.s. treasuries. they are buying at a record pace. we really do not see the u.s. dollar threatened at any time soon as the reserve currency. >> there is the possibility of some artificial new world trade currency that china ask for before they did an about-face and we claytor. is there any possibility that this would happen? -- there is the possibility of some artificial new world trade currency that china asked about before they did an about-face a week later. >> only the u.s. really qualifies. >> while would happen if china did it a new world trade currency. what they have to unpaid themselves from the dollar -- un -peg themselves from the dollar? certainly they would have to change their flexibility over foreign exchange. we have not seen any signal that that is what they are intending to do. that is why the talk of the new world currency is overdone at this point. >> which still see some much relative dollar strength. with the amounts of debt that the u.s. is selling -- a lot of people concerned about this. does it seem weird that we continue to see such spring in the dollar? >> we're not in a very envious situation here in the west. the u.s. economy can still be one of the earliest, and still be ahead of some of those other economies. that should help the dollar. >> what do you think about the dollar/ yr rev trade next year. -- what do you think about the dollar/euro trade next year? let me ask you about equities. do you expect string their corrupting year? >> selective strength. looking at some of the historical relationships, currencies are very cyclical. we have looked at the brazilian currency. we think those are very strong. they would be supportive of currency's strength going forward. >> thank you for joining us. a currency strategist at wells fargo bank. <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005317"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005317" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Law & Legal Issues,Personal Finance,Business,Economy,International,Government & Politics,Editors Pick http://player.clipsyndicate.com/view/225/1005309 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1005309?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/2/58/351/322c5498-9690-49e0-81f3-bd61746826e1_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">AIG's Reverse Split Has Raised Stock Price; Shorting AIG "Nearly Impossible" as Short Sellers Pay 50% to Borrow Stock (Bloomberg News)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1005309?cpt=8&wpid=140 Thu, 02 Jul 2009 16:32:21 +0000 In-Depth Look - The AIG Roller Coaster AIG's Reverse Split Has Raised Stock Price; Shorting AIG "Nearly Impossible" as Short Sellers Pay 50% to Borrow Stock (Bloomberg News) http://www.clipsyndicate.com/video/playlist/225/1005309?cpt=8&wpid=140 Bloomberg it is up, it is down, it is all around, aig continues to get investors quite a ride. we're when to bring in adam johnson with the updates. >> yesterday you saw on the new york stock exchange website they said the company was going to be unlisted. they said that was a mistake. anyway, yesterday was the first day that we had the reverse 20 split in effect. we're told the company decided to reverse the company 20 to 1. >> i remember because you were sitting right here when this cross the headlines. > the company did this because they want to get the share price above $5. institutional investors cannot invest in stocks below $5. it should have opened at 23.30 yesterday, but it did not. it was trading around 18. given the apology, it is only at 80 cents, maybe a dollar. their real story is the shorts. >> barrowing the stock comes at a price here. >> a comes at quite a price. when you barrower this, you have to pay money to do that. right now you have to pay 50%. you have to pay 50% of the value of the stock on an annualized basis. >> it is unreal. you call the desk to see if they had any shares. >> the phone ringing off the hook for guys who wanted to borrow it. today they had a sale -- fail. in other words, they couldn't cover it. they had to go out and try to cover it. if they do, it costs 50%. >> let's talk about if we will ever get paid back from aig. what is the likelihood that tax there's ever see the money again? >> atlantic equity says it actually is possible. let me walk you through it. they say if they sell all of the life of business, all of the aircraft leasing business, all of the asset management business, and 25% of the property and casualty business that will raise 85 billion. they say they can do this by selling the jewel in the crown, that is the non-u.s. life insurance base. meanwhile, we have the shorts, who is making it the barrow, will do it. >> adam johnson, thank you for that. <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005309"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005309" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> NYSE:AIG Law & Legal Issues,Personal Finance,Business,Economy,Stock Market,Insurance,Editors Pick http://player.clipsyndicate.com/view/225/1005268 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1005268?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/2/58/351/0e26fa54-ecde-4059-a4ea-efa374036bd5_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Social Networking & Jobs - Interview with Jobvite CEO Daniel Finnigan (Bloomberg News)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1005268?cpt=8&wpid=140 Thu, 02 Jul 2009 16:12:54 +0000 Spotlight - Jobvite.com Social Networking & Jobs - Interview with Jobvite CEO Daniel Finnigan (Bloomberg News) http://www.clipsyndicate.com/video/playlist/225/1005268?cpt=8&wpid=140 Bloomberg u.s. government report showed that the west cut more jobs last month. - u.s. cut more jobs last month. daniel, thank you for joing us. there are companies hiring right now. tell us about these numbers. >> first of all, the only silver lining today is that unemployment was expected to rise to 9.6%, and only rose to 9.5%. with all of the job losses, what that means is that people actually got jobs. there is 12.5 million openings right now in united states right now. 4.8 million people last year were high year. this year it was 4.2 approximately. - 4.8 million people were hired last year. while people are losing their jobs, other positions are being filled. >> where d.c. the biggest concentration of jobs that need to be filled? - where do you see the biggest concentration of jobs that need to be filled? > engineers, nurses, sales reps, teachers are in demand right now. most of these are jobs that require a college degree. earlier you mentioned employment is better for those with a college degree. >> let's talk about your site, jobvite. it might be one site to help move the job search quickly. tell us how it works. it interacts with other networking sites like facebook. >> companies bite -- buy jobvite to manage their in tighter job marketing online. everyone in human-resources will tell you that the highest quality high year is a referral from one of your own employees. -- the highest quality higher is a referral from one of your own employees. it allows us to share jobs quickly. companies are looking to upgrade their talent. since the best referral is from an employee that you now have, people are very interested in finding a job through the social networking sites. >> why is it better than putting out a want ad in a newspaper? >> a good question. what is happening right now is if you post a job on a job board, you are going to be inundated with applications, not only from people who are qualified but with lots of people who are not qualified. you have to remember that a lot of companies do not have as many recruiters on staff. they are inundated with lots of resonates. referrals are better because they are people who come into the company knowing what they will face. -- they are inundated with lots of resumes. they are happier because the job needs their expectations. >> day you see a lot of action as far as hiring, even though there is obviously a lot of firing going on? >> in fact, jobvi hadte cena unprecedented growth. we had our best month ever in june. >> interesting. even though we see these job losses worse than expected. let's get back to the job picture. you have an interesting position as ceo at this company. what do you think about when we could see the unemployment number finally start to peak in come back down? >> good question. i have been on the - in the on-line employment industry for quite some time, and the job hiring rate has come down overall. the job losses we saw earlier this year were truly breathtaking. now it is slow work. this is about a little remiss of expectations in mind -- in my view. we eliminate jobs quickly, but we also add them quickly when growth returns. i see turned hiring going on for the next year or so. -- i see turn hiring going on for the next year or so. then next fall they will start filling positions. >> thank you for joining us. <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005268"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005268" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Law & Legal Issues,Personal Finance,Business,Economy,Science & Technology,Internet,Careers & Occupation,Editors Pick http://player.clipsyndicate.com/view/225/1005228 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1005228?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/2/58/351/5323af12-ee2a-486c-8291-ad2840224200_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">FDIC Board Weighs Rules for Buyout Firms Acquiring Failed Banks; According to FDIC, Firms Must Pledge to Pay FDIC Losses in Cross Guarantees (Bloomberg News)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1005228?cpt=8&wpid=140 Thu, 02 Jul 2009 15:39:08 +0000 FDIC Says Buyout Firm Must Be Capitalized for Three Years FDIC Board Weighs Rules for Buyout Firms Acquiring Failed Banks; According to FDIC, Firms Must Pledge to Pay FDIC Losses in Cross Guarantees (Bloomberg News) http://www.clipsyndicate.com/video/playlist/225/1005228?cpt=8&wpid=140 Bloomberg private equity firms, saying investors have a three-year hold on lenders that they dubai. they must pledge to pay the f.d.i.c. losses on cross guarantees. the buyout firms must be well capitalized for three years. this comes into the interest by the buyout firms. jonathan keener has been following this. we're trying to make sense of the headlines. >> this was largely expected. all eyes on the buyout community on the fdic today. the board meeting started at 11:30. we expected these headlines. the guidance is what we have predicted. the one unknown is the source of strength issue. >> the source of strength doctrine. >> this makes or breaks these deals for buyout firms. buying a failed bank from the fdic is a hot sector right now. bank united was purchased in may by carlyle and blackstone. sources say it makes the private equity firm be obligated for future capitalization of the bank. there's no telling how costly the project would be to other projects down . that wording will be closely watched. >> should we expect buyout firms will be even more aggressive in digging up financial based on this report? >> the clarity will help them. the guidelines are very helpful as far as knowing what they can and cannot do. if the source of strength issue, though, they would be on the hook for future obligations to the bank and would be more wary of these deals. >> does this open the door for investors to buy failed banks? >> it opens the door and says -- in a sense that it provides clarity. there has been concerned that the regulators may wind up changing the rules down the line. this is an attempt to get away from that concern. but it puts private equity firms on the hook for more losses with the banks. >> regulators are worried about those companies slipping- flipping. >> during three years there won't be able to sell the banks like the way you would a house during the real-estate boom. that is trying to get away from short-term gains. >> is this potentially going to slow down the recovery in financials? >> it will perhaps slowdown a low, but everyone will feel better about the deals that do get done. the fdic has clearly been in touch with congressional walked dogs -- a congressional watchdog. you can look at this as a little more unity between the regulators and the industry. >> it's not final. >> correct. >> if it's being debated by the board. then later outsiders will be able to post comments and they will be evaluated. >> thank you, jonathan. <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005228"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005228" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Law & Legal Issues,Personal Finance,Business,Economy,Banking,Government & Politics,Editors Pick http://player.clipsyndicate.com/view/225/1005142 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1005142?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/2/58/351/10bb18ba-1a2e-45af-b2fc-8286626a19a6_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">ECB Rate Decision - Analysis and Discussion with Jacques Cailloux of Royal Bank of Scotland (Bloomberg News)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1005142?cpt=8&wpid=140 Thu, 02 Jul 2009 15:30:22 +0000 International Perspective - ECB in Wait-and-See Mode ECB Rate Decision - Analysis and Discussion with Jacques Cailloux of Royal Bank of Scotland (Bloomberg News) http://www.clipsyndicate.com/video/playlist/225/1005142?cpt=8&wpid=140 Bloomberg the european central bank left its benchmark interest rate at 1%. president jean-claude trichet told reporters the current rates are appropriate. >> the economic activity for the remainder of this year is expected to remain weak, but should declined less than it did in the first quarter. looking ahead into next year, after a phase of stabilization, a gradual recovery with quarterly growth rate is expected by mid 2010. >> more on the right decision, we return to the chief european economist at the royal bank of scotland, joining us from london. good to have you with us. good morning. >> good morning. >> do you agree with trichet that rates are appropriate? >> i disagree. if we look at the protection in the economy and how low inflation is, it's clear rates are not appropriate at 1%. they should be a negative territory. it should be at -2%. >> what risks, what further risks are they setting up for the european economy? >> the economy has shown signs of stabilization in the last few months. the ecb takes a cautious view about the outlook. what we can infer from that is it will remain on hold for long time, probably for all of 2010, which is a way of offsetting - interest rates. at 1% for a long time, that is what you need for this economy to show some type of recovery. the news we got from to say is they remain very cautious about the outlook. they don't want to claim victory on the economy stabilizing. the public sector could start complaining, otherwise. >> the ecb measures, the banking industry has shown some stabilization, but that does not necessarily bode well for the real economy. what have we done there to prop things up? >> that is the key question. the ecb has been very aggressive in pushing liquidity into the banking sector through the laundry appropriations they did a week ago -- the loan real appropriations. we need to wait another few months to see the latest measures are working. we think it's going to be very difficult. one way to respond is to engage in a purchase program targeting the corporate sector, that will probably be need before the end of the year. the ecb will be causes on the front. if they're willing to wait probably another few months before deciding to go down that road. >> with that caution include another rate cut in the near future? >> yes, from a risk perspective is probably true that over the next six months is more likely they would cut, which was not what the market had in mind a few weeks ago when markets had gone as far as expecting rate hikes starting next year. that is gone. the ecb, i think, wants to take stock of its policy decisions over the past few months and wants to see whether the economy is showing signs of recovery. if that was not the case, the risk of deflation was on the increase, then we cannot rule out another cut from ear. >> the global economy is in fragile state. are they making a mistake here and possibly being slow to react? >> the ecb behaves as a steady hand institution. slowing the rate cutting exercise and has decided for the short-term to stay steady. whether it's making a mistake or not, we saw signs of improvement on the economy side, which can be used as an excuse for the ecb, that things are stabilizing. that is the way they have behaved. we have to respect that. if they don't change their assessment on a credit outlook on the inflation outlook, they will not change the liquidity rate. it's on hold for now. we will leave the appropriateness for the historians in the future. >> thank you so much. <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005142"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005142" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Law & Legal Issues,Personal Finance,Business,Economy,International,Banking,Government & Politics,Editors Pick http://player.clipsyndicate.com/view/225/1005119 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1005119?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/2/58/351/f43c2306-ba8b-455a-bb3e-f3dbc0517624_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">U.S. Marines Drive Into Afghanistan; North Korea Fires More Missiles; U.S.-Russia Summit Next Week (Bloomberg News)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1005119?cpt=8&wpid=140 Thu, 02 Jul 2009 15:25:16 +0000 World & National Newsbites U.S. Marines Drive Into Afghanistan; North Korea Fires More Missiles; U.S.-Russia Summit Next Week (Bloomberg News) http://www.clipsyndicate.com/video/playlist/225/1005119?cpt=8&wpid=140 Bloomberg let's look at some stories from around world. thousands of u.s. marines continue to advance into a key to alabama region in southern afghanistan. operations strike of the sword began under cover of darkness today. marines poured from armored vehicles and helicopters into villages in helmand province. the area controlled by the talha band. if the world's largest opium producing region. military officials say a force of almost 4000 marines and several hundred afghan troops encountered little initial resistance. the missing -- the marines have not suffered serious casualties. u.s. forces report one soldier has been captured by insurgents there. north korea fired more missiles today in defiance of the u.n. sanctions. south korea's military says it fired four short-range missiles, north korea, that is, off the coast. if the u.n. recently slapped it with sanctions after an underground nuclear test in may. producing nuclear arms will be among major topics when president obama visits russia next week. it also may be the only issue the u.s. and russia can agree on. the president will arrive in russia monday for three-day summit with the russian president. they last met at the g-20 meeting this spring. the countries are likely to replace an arms accord that is expiring. that's the easy part. disagreements remain over iran posing nuclear program and the war in afghanistan -- remain over iran's nuclear program. <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005119"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005119" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Law & Legal Issues,Business,International,Government & Politics,News,terrorism,Editors Pick,World News,war http://player.clipsyndicate.com/view/225/1005115 <table border="0" cellpadding="0" cellspacing="0"><tr valign="top"><td><a href="http://www.clipsyndicate.com/video/playlist/225/1005115?cpt=8&wpid=140"><img src="http://video-static.clipsyndicate.com/cs-video/vol2/2009/7/2/58/351/b7bb03ef-a071-4645-a46d-d5227f9a1829_120x90.jpg" width="120" height="90" border="0" /></a></td><td style="padding:5px;">Interview with Lee Hecht Harrison President Peter Alcide (Bloomberg News)</td></tr></table> http://www.clipsyndicate.com/video/playlist/225/1005115?cpt=8&wpid=140 Thu, 02 Jul 2009 15:15:09 +0000 Inside Look - Where the Jobs Are Interview with Lee Hecht Harrison President Peter Alcide (Bloomberg News) http://www.clipsyndicate.com/video/playlist/225/1005115?cpt=8&wpid=140 Bloomberg laos are rising, especially in manufacturing, construction, and retail. but there are industries that are hiring workers. joining us is the president of a unit of the world's largest staffing company. welcome to bloomberg news. >> good morning. >> let's begin with the number carol mentioned, 467,000 in june. > on surprised. we had four straight months of downward trend. it was a job. we were surprised on the positive side in may and now were surprised on the negative side. on the positive side, the number, if you'll get the average for the second quarter, less than five under thousand compared to 700,000 in the first quarter. >> christina romer used to determine "moderating" job losses. tell me about what the numbers say to you in terms of staffing and what we're seeing going forward? >> when you look at the job market, you have to look at different factors. three factors. where you live, what you do, and your education level. where you live, if you're living in the northeast, the unemployment rate is over 8% you probably have been easier time than someone in michigan where unemployment is north of 14%. what you do, if you're coming out of the retail sector, which has been hard hit, you're having a harder time than someone in health-care or accounting for or i.t. or engineering, which are still in demand. from an educational standpoint, the edge -- and to plummet rate is 4.7% but foreperson with a college degree, less than half the national average. 4.7% was down 10 basis points. so that got better. >> does this reflect what you're seeing in terms of staffing needs? people ramping up demand at all in terms of saying we need some help here? >> career transition is where they help people transition into a new job or industry, self employment, even retirement. that business has been very busy. we have followed the job progress throughout the year. the first quarter was through the roof with losses. the second quarter has begun to moderate. >> what kind of transitions are you seeing mostly? >> it varies. people going the self employment out. healthcare's strong spirit accounting johnson strong. information technology jobs are a little weaker, but there's still demand. engineering, there's great demand. in the construction sector there is higher unemployment there than people with college degrees. but there's still a fair amount of demand there. those skills are transferable among many industries. you can go from a retail industry to another industry. >> be on the job market, what indicators are using for improvement? >> for the candidates we're serving, the job search process has lightened a little bit. probably closer to six months. that's just an average. it does not mean something to an individual, depending on where you live and what you do. we're seeing strong restraint in the professional services sector. >> we've been talking a lot of this week about the health-care sector as well. >> that's right. health care is very strong. probably the strongest sector. since december 2007 when the recession began we have gained over 475,000 health care jobs. it's leading all sectors. > where would you say you're still continuing to see wreckage when it comes to various industry when it comes to jobs? > manufacturing has been hit the hardest. construction, which we don't see it in our business, because it's not customers we have generally, and manufacturing sectors been hit the hardest, and retail. >> thank you for coming in, peter. >> you're welcome. <object width="320" height="260"><param name="movie" value="http://eplayer.clipsyndicate.com/cs_api/get_swf/"></param><param name="flashvars" value="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005115"></param><param name="allowfullscreen" value="true"></param><embed src="http://eplayer.clipsyndicate.com/cs_api/get_swf/" flashvars="swfHome=eplayer.clipsyndicate.com&csEnv=p&cpt=8&wpid=140&va_id=1005115" type="application/x-shockwave-flash" allowfullscreen="true" width="320" height="260"></embed></object> Law & Legal Issues,Personal Finance,Business,Economy,Manufacturing,Retail,Careers & Occupation,Construction,Editors Pick