Archive for May, 2008
May 30, 2008 1:43PM
By Alexis Glick
Dallas Cowboys fan? Terrel Owens fan? Think he’s arrogant? Think he’s a superstar? He’s been called all that and more. This morning he joined me on Money for Breakfast to discuss a cause that is near and dear to his heart: Alzheimer’s. His grandmother had Alzheimer’s disease and he has made it his personal mission to create awareness about the disease that affects 5 million Americans.
It’s the 7th leading cause of death in the U.S. and according to the Alzheimer’s Association 2008 Alzheimer’s Disease Facts and Figures as many as 10 million baby boomers will develop Alzheimer’s or one out of every eight baby boomers. Scary statistics! Currently between 200,000-500,000 people under 65 are living with the disease.
Terrell came on to talk about the battle, the upcoming football season, his future with the Dallas Cowboys and his passion off the football field.
I must admit I was impressed! He was calm, articulate, kind and nothing like the way he is portrayed in the media. I may have seen his good side but one thing is for sure, he’s a showman and this seasons HBO show Hard Knocks will be a good one if he has anything to say or do about it. If you don’t know Hard Knocks or if you haven’t seen it, it’s awesome! Loved it when it first came out with the Baltimore Ravens!! It’s a behind the scenes look at the NFL training camp and this year it’s the Dallas Cowboys. Hmmm!!!!
May 30, 2008 6:17AM
By Alexis Glick
1. Plans to merge United Airlines and US Airways were suspended yesterday when United’s CEO Glenn Tilton told his US Air counterpart, Doug Parker, that United is close to an alliance with Continental Airlines. What will Monday bring?
2. Big ratings could be ahead for Disney’s ABC and the NBA. The Los Angeles Lakers beat the San Antonio Spurs last night to move into the NBA finals. The nation’s number two TV market, the team’s record 29th finals appearance and a potential match-up against the rival Boston Celtics could reap ratings riches as this could be the Celtics 20th finals appearance if they make it. As you may recall if you look back on my blog several months ago, I interviewed Kobe Bryant immediately after the Gasol trade from the Memphis Grizzlies and asked him if a Laker vs. Celtic final was a possibility. He looked at me like I was nuts! At the time the Lakers I believe were 28-16 and had been on a big losing streak after Bynum got injured. Wouldn’t a Lakers vs. Celtics final be brilliant? Note: the Boston market is the nation’s number seven market.
3. Tonight is the release of the much anticipated Sex and the City movie. The Los Angeles Times is projecting a $55 million payday this weekend. To be honest, I never watched the television show series but with all the hype I definitely plan to see the movie. Yesterday Charles Payne told me that the four women combined had sex with, or as the NY Daily News put it “hit the sheets with a combined 94 men and one woman.” Note: the show ran for 6 seasons or 94 episodes.
May 29, 2008 1:17PM
By Alexis Glick
This morning on The Opening Bell I had the opportunity to talk to someone who greatly influenced my career and my decision to work on Wall Street, Sandy Weill, the former chairman and ceo of Citigroup.
As a kid my mom worked for Shearson Loeb Rhodes, then Shearson Lehman and then Shearson Lehman American Express. My mom started as an executive assistant then moved to personnel followed by the Human Resources Department and then back to the executive offices. She didn’t go to college and we didn’t come from ANY money. None, zilch, notta!! My mom was a single working mother when my parents divorced when I was two. Through her hard work, passion and resolve she was able to expose me to the world in which she lived from 9a.m.-7p.m. each day…the world of Wall Street.
One of the many well-known people that my mom worked directly for as an executive assistant was Sandy Weill. We still have pictures of me as a toddler sitting on his desk with him smoking cigars in the background. I was very little, but look back on those days as defining moments because they taught me that anything was possible and that if you worked hard, dreamt big and applied yourself you could do what you set your mind to.
Sandy epitomized that! He was the true rags to riches story and while the history books now look at a guy who became power and money hungry and went on massive acquisition binges, he made history by combining insurance and banking, built banks based on back office models and has done a lot of terrific things for a lot of people and I’m fortunate to be one of them.
This morning he rang the bell on the NYSE to celebrate the foundation that he created called the National Academy Foundation (NAF). It’s a partnership that’s been in existence since 1983 between business leaders and educators whose mission is to help students prepare for their professional career. It’s an excellent program! I know a bunch of people who had the great fortune to participate in it and are tremendously successful because of the networking and mentoring opportunities.
Aside from NAF, I asked Sandy about all the protectionism talk, sovereign wealth funds, the future of Wall Street, Citi and the de-levering process.
May 29, 2008 12:47PM
By Alexis Glick
Every Thursday on The Opening Bell from 9-10a.m. ET we have a segment with what we call a “Market Maven.” This week we talked to Sam Stovall, the chief investment strategist of Standard & Poor’s. We talked about Dallas Fed President Fisher’s comments last night. Fisher said the Fed may need to do an about-face a raise rates if inflation fears persist. We also talked about the historical context for when the Fed raises rates after a period of cutting rates. Pretty interesting stuff!
I’m not suggesting the Fed will do this right away, but after yesterday’s durable goods number and today’s GDP number and what we are seeing in the Treasury market with 10 year note yields, one has to wonder if the bigger issue is inflation rather than slowing growth. I think we will be headed toward higher rates and that the Fed is done. Now it’s the Fed’s job to orchestrate a recovery on the inflation front while oil sits at new high’s, housing remains weak and disappointing with no near term signs of bottoming out and the dollar sits stagnant waiting for the rest of the economies and Europe to catch up with us and give people a reason to believe in a strong dollar.
May 29, 2008 11:41AM
By Alexis Glick
Think you have issues? Imagine being the governor of the New Jersey at a time when consumers like you and I are feeling pain at the pump, grocery store and in our home as our number one asset declines!
This morning Governor Jon Corzine joined me on Money for Breakfast to talk about New Jersey’s housing, gasoline and economic issues as well as the presidential election, state of the U.S. economy and what happens next for the financial institutions. As you may recall, the Governor was Chairman and CEO of Goldman Sachs before he made a career switch and become a senator. Today he has a lot on his plate.
His state, New Jersey, is the 16th highest state in foreclosures, Atlantic City a big revenue generator for the state has seen its first quarter revenues decline by 4.8% and first quarter operating profits decline by 17.7% as increased competition from neighboring states have eaten at margins and more consumers have decided to stay home and tax receipts are declining because of job losses (note NJ’s unemployment rate mirrors that of the rest of the country at 5%) and increased foreclosures. Don’t envy that position!
He’s a very bright, articulate and matter of fact interview. I worked for Goldman Sachs while he ran it in 1994 and 1995. He knows Wall Street just as well as anybody I know and talks about future oversight, how well the credit markets are faring and the depth of what he calls a recession even though the data may not fully support it.
Take a look.
May 29, 2008 6:17AM
By Alexis Glick
It’s been several days since I sat down to write and my mind is racing from one story to another. Yesterday I was out sick, and it’s amazing how much you fear you miss in news flow in one day. When you work in the news business, you become addicted to the news. I’m not sure I missed too much, but here are some of the random thoughts in my head.
1. ExxonMobil: After all is said and done, yesterday the shareholders voted by a little less than 40% to split the role of Chairman and CEO at the company, not enough to make it happen. This was the second time that the shareholders lost their battle to change the role. Bad news for the Rockefellers, who led the charge, although 40% is nothing to sneeze about! What does it tell you? Tillerson is doing a good job and at the end of the day if you’re a shareholder you’re looking at the record profits the company is taking in.
2. Today Bear Stearns shareholders will vote on the company’s fate. It will mark the end of an 85-year-old Wall Street firm. The first place that I worked on Wall Street. Some will be very sad, while some will cry “bailout” and once again criticize what the Fed did to coordinate Jamie Dimon’s and JPMorgan’s purchase — a purchase that has the Federal Reserve of New York on the hook for up to $30 billion in assets. At the end of the day, JPM increased the bid from $2 dollars to $10 dollars and said it would retain 45% of the 14,000 employees.
When we look back on the history of this transaction, three things will stand out. One, why did a financial institution of this magnitude go bankrupt? And how is it that one product (sub-prime mortgages) made that happen? Two, was this the moment that defined Jamie Dimon? He not only bought a Wall Street dynasty for next to nothing (now he has to turn the remains into a full-fledged successful business model) but he also made a personal pledge to call or write notes to all of his Wall Street contacts to encourage them to hire the remaining Bear Stearns employees who lost their jobs. Three, why didn’t we see this coming? How could the Fed realize one week later that pumping liquidity into the markets through the Term Auction Facility could rescue other institutions, but fail to rescue Bear Stearns? Were they too late? Did Bear CEO Alan Schwartz fail to properly notify the Fed? Could he see it coming? What would change if it happened again?
3. Once again merger speculation rears its head in the airline sector. UAL Corp’s United Airlines and US Airways Group apparently plan to meet today to discuss a possible merger. It has been rumored that the two companies have been talking for months. Now, as oil sits at $130 dollars a barrel, the incentives to find solutions to the labor force (unions), financing, seating capacity and route reductions or synergies have become that more urgent. Just think about this: jet fuel in the month of May alone is up 20%. UAL and US Airways year to date are down 78% and 72%, respectively. Do they have a choice? Not likely but don’t forget they’ve been to this dance once before in 2000, when antitrust regulators objected. After Delta agreed to buy Northwest a month ago in a stock swap now valued at $1.96 billion, the regulators may have no choice but to sign off on this and other rumored deals. If something doesn’t happen soon, bankruptcies could become the bigger headline! What will Continental do now?
May 28, 2008 3:21PM
By Alexis Glick
Is there a more recognizable name, face, or even voice in entertainment today than William Shatner? At 77, he is still a work-a-holic and shows no signs of changing. And while he is known for TV’s star trek and now Boston Legal. He is also a 10 time best selling author. His star trek memories and his 9 volume “Tek War” sci-fi book series are publishing hits……and now he hopes to beam up book success again with his new autobiograqphy titled, up till now. Recently I had a chance to ask the pop icon about his book, his career and his legacy. I did admit to being a “huge trekkie fan!” I watched it every night after school as a kid. What wonderful memories!! A Pepsi, bag of Fritos and Star Trek :)!!! I’ll never forget it!!!
One behind the scenes story…..he arrived with his wife, publisher and PR team. He was very nice. Very cool. He was incredibly bright. Knew a lot about Wall Street. We talked a fair amount about my previous career on the street. At the end he was starving and asked our producer brad where to eat. Brad booked Del Fresco’s across the street and off they went……I can still hear him saying, “Beam Me Up Scotty!”
Here’s what he had to say.
May 23, 2008 6:33PM
By Alexis Glick
Planning on barbecuing this weekend? Have you been wondering how much more your food will cost this year versus last year? Our own Charles Payne and Mark Lieberman took a look at the Fox Business Shopping Cart, highlighting the prices of the foods we typically eat during Memorial Day cookouts. The statistics year-over-year are staggering. Watching the two of them talk about food, even more staggering!!! 
Happy Memorial Day! Have a wonderful weekend! Enjoy those barbecues. Yes, they’ll be more expensive but they’re worth it. Remember why we celebrate Memorial Day and all of the loved ones who have sacrificed their lives so that we could have the freedom to share this weekend with our family and friends!!! Bon appetit!
May 23, 2008 6:29PM
By Alexis Glick
In commemoration of Memorial Day and Fleet Week, this morning on Money for Breakfast we broadcast part of our show from the USS Kearsarge. As crude and fuel prices continue to move up to record levels, we thought we’d talk to the source of the greatest oil consumption in the country, the U.S. Military.
Take a look at a couple of these stats:
1. The U.S. Military consumes 340k barrels a day, or 1.5% of all oil used in the country.
2. The Air Force’s bill for jet fuel has tripled in the past four years. The Air Force uses 2.6 billion gallons of jet fuel a year and accounts for 10% of the entire U.S. market in aviation jet fuel.
3. The Air Force hopes to certify at least half of it’s fleet to run on synthetic fuels by 2016.
Take a look at my first interview with Chuck Nash, Fox News military analyst and retired U.S. captain. He has an excellent grasp of the billions of dollars spent each year on military fuel and how we as a country need to build up our energy independence. It’s a matter of national security!
Part I
Part II
I also interviewed the Assistant Secretary of Air Force Installations, Environment and Logistics and Air Force Energy William C. Anderson, who is responsible for fuel innovation and the implementation of alternative fuels. Outstanding Investments analyst and editor Byron King also joined us to weigh in on the sector.
