WRKO>Audio & Video on Demand>>Full Show 8-2-16

Full Show 8-2-16

Aug 2, 2016|

Full Show 8-2-16 by The Financial Exchange

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

This is the financial exchange with the Barry Armstrong and chunks of you're exclusive look at business and financial news affecting your day your city your world. Stay informed and up today about economic and market trends plus get breaking business news every day. And now the financial exchange with the Barry Armstrong and chuck Exxon. I was sitting on a plane yesterday when the price of oil hit 39 something. I think that you guys shot and I was wondering. Does that count as it happened. Clones at less than forty don't know look I will pay you your hundred pennies at the close of the show today I it will be on hand delivered to you and beyond excited to to make that payment to be saved it at the pump outside and we a. Gas prices are really. And we're going to be joined by a group called the songs from Bloomberg he just talked to us about it. Oil prices and I have a theory. As a relates to oil prices and it all comes down to how much capex has been taken out of the market and when I say and I say that I'm talking about. You know you look at the big oil companies whether you talk in Chevron BP ExxonMobil. And you can count because they have to file these reports. On how much money they've taken out of capital expenditures. And tell you when you look at that information. Makes a little nervous about where oil is headed. In 1718. In nineteen but I'm I'm I'm getting ahead of myself. We have to start with the auto makers I'm looking at forward I'm looking at GM I'm looking at Nissan and I'm looking at theocracy slower. Everybody missing some are reporting sales that are down talks not a others are just you know they're missing expectations by a fairly wide margins. Yeah I wanna dig into what the Ford numbers in particular is I think this is somewhat indicative. Of what we are seeing with car companies right now is there at their total US sales were down 3% for the month they sold a little over 2161000. Vehicles. There truck sales. Were up 5% for the okay. The thing that use although retail sales for cars were down 6% the only way they even came close to making it up was because fleet sales were actually up 6% that's not the current fleet sales are low margin sales. That you know again it's your made in order you making those in order to try to meet your numbers but not able but you're not able to really generate the type of profit that you want. And fleet sales hurt the reached to the the resale value of your vehicle so yes. It lets say wit with C four words that are with the with the Ford Taurus or report that they sell to the real to the rental they've got. Yeah that the you have heard fusion their main ones that might be twenty you know caught 2627000. To any retail customer to a fleet sailed. You know might be 23 point 4000 so the margins are significantly compress there one thing that is not interesting to note. Ford's overall transaction price grew by 16100 dollars in July burst a year ago. But that's a largely because the shift suvs no way. Cars well worry a little bit you know because I think you're seeing similar reports out of General Motors their sales down. One point 9% we expected them to be down 1%. But they too. Are having strong large vehicle sales and that bodes well poorly by theories right that oil prices are gonna rise that bodes poorly for the for those company. Well it's it's not just them I went and I pulled up the the year to date data. On not car sales just I was curious what it was action are you looking like and year to date. Four cars though not for trucks before simple you know sedans coupes you know convertibles whatever you're talking about car sales. Are down seven and a half percent from a year ago. Okay now truck sales picked up crossovers minivans whatever you suvs the whole bit. Are up nine point 2%. Year over year and in fact what you look at their the two hottest part of the of the of the truck market as as they call. Our minivans and the small conversion vans actually those are 28% in 23% year over year now large vans up 15%. But even you go into some of these suvs numbers and then our great a lot of that the gains have been in pickups as opposed to suvs you talk about small SUV sales. Pretty much flat for the year that's surprising large suvs sales are up six point 6% luxury suvs sales up four point five but really it's it's all about cross overs and pick up where your nine point one in seven point 1%. That's been the real driver there as well as for some reason people are flocking to minivans which I don't understand maybe maybe they're going to be having kids maybe they're very they're very cool they got him. It's got to be kids are already getting SUV. On all eat you if you're having kids the minivan is the way to go eaten yet seven people in that thing plus the hunt storage in the back you can do that that's how he can't if I think the mini means users drive easier to drive also better mileage Tucker it's okay you just see at a suburban suvs took that big. Yeah they're they're huge but they're also terrible while the mini van it's so hard on your eyes though. Now yeah I mean it looks like you're driving a giant does spot it's total dork move now what are your marriage and don't worry about that when your Mary grant for kids don't care we looked like an exact same with my. You know why is it doesn't. My first car that I ever I drove was a minivan yeah. It was what my parents handed down to me right in the reason he's got a mini games they were driving you and your buddies around soccer practice that's why yep. I gave them so much crap back then you get you can you can fit. You know six or seven if you get the bad seats right that unity tucked it and you know seven kids plus there's storage in the back in if I mean nowadays they got all the bells and whistles from those you don't TVs and Bluetooth all that stuff so I had many of mini. I had him lately they came out I think in the eighties is when they started. And I had at least three. Now than we did as the kids get. Larger then you gradually to the ocean beast of burden under the Armstrong's a particularly are now but there's the need bigger hockey day in all that stuff yes yeah yeah you go to the the SUV is yet that the larger. We will get aggregated truck and auto sales at 2 PM this more this afternoon we also got core PCE. And that has to be a little disconcerting to data point there track for Janet Yellen and her cronies because she's not hitting the target inflation that you liked. No certainly not hitting those numbers there and this is it's it's been the story for the last couple years now now you're just not getting enough. Inflation for them to be able to to really justify another hike in rates and and the problem is with the wave the Fed has acted. Unless they are seeing inflation exceeding their targets that they pretty much on the they're not gonna do anything. Which look out on one level you can make the case okay you're not seeing inflation at those levels may be the right thing to not bump rates. But I don't know if the Fed is considered that maybe it's because they're keeping rates so low that that's why inflation is so low as well. Now as less money and supplies that users less interest being paid exactly hey lets us talk fantasy sports. Last year. I think draft kings and handle it just my opinion but I think it over did it in terms of how much advertise in the did. To promote for dinner tonight you know long marriage agrees. Cutting back this year quite dramatically. Cutting back significantly this year they are they've spent an estimated 500 million dollars on advertising last year between the two companies it was just a massive ad buy in ruin a short time span to this is in the situation. Where this was over the course the full year this was you know pretty much hitting just every weekend starting in early August and all the way through the football season. It was almost like you know watching. Political odds that start come on around elections he just by the end of it you just like I don't care any leads you draft things that followed by scandal and then another drafting. It is just ridiculous and I am I exaggerating yet let's act in an accurate and then you would go to watch the show which was like the CBS halftime show sponsored by draft things or something and it's like our lake. So did they bring on there he is they've got a lot of regulatory problems right here public yet they even had disallowed. Draft king's it and do. I think it's like fourteen or fifteen states where you're not allowed to play at all like Arizona. In Nevada Illinois and believe me they've they've outlawed they they're back in New York who knows that they get back into news. So the states that are outlawing them at this point two Washington. Idaho Montana. Nevada. Arizona. Alabama Mississippi. Louisiana. Iowa in New York Times both New York is still on the list I thought they had a deal to get back in need not done yeah. OK it's not done yet they would they are in their for the beginning of football they're trying to get in there for the beginning of football season's biggest state Tucker. Or absolutely and then you do have four other states where it's kinda this hodgepodge that no one's really sure and so you don't have all of the players and in those of Vermont and Virginia. Florida and Texas oh why does not allow them as well. At the moment right there wanna talk about oil. I I took my victory lap for hitting to 39 dollar price target. But then over the weekend I was doing some research as it relates to oil. And there's some information that you might find it disconcerting might might I guess sort of trying to message here. Is. Don't assume that this forty dollar price for oil is gonna stick around for the long term in the next segment will be joined by. Group called the songs from Bloomberg intelligence we will talk about oil. And we will talk about something that scares me I am afraid. That oil prices could rise dramatically in the coming years and I think it's gonna rise between now and December but I think you get out ten. 181920. In particular. You could see some dramatic increases in the price of oil that's next from our insurer match dot com studios. Every time the candidates speak they could affect your bottom line here how election Twilley sixteen is already affecting you who write here on the financial exchange this as the financial exchange radio network. Commodities are an essential element to the global economy the fluctuating costs of items such as oil natural gas and metals like gold and silver may play a vital role in the market's performance on any given day hi this is very Armstrong from the 803934001. As for our free guide on investing commodities and ask about our free financial review of your investment strategy that's 803934001803934001. Security suffered through securities America incorporated member of the SIPC and advisory services offered through securities America companies incorporated Armstrong advisory group in the securities America companies are not affiliated investing in commodities is often through futures trading with the risk of loss in these contracts can be substantial you when your advisor should carefully consider whether such trading suitable for your financial situation. If you're looking for a great deal on a new counter program you should check out the zoo rewards program to leader bank has now offering it's and checking account along with the companion savings account and as long as you qualify you'll receive three benefits. First you get a savings rate of two point 05% annual percentage yield up to your first fifty K all agree TM fees from use in other banks will be reimbursed and you'll get 1% cash back by using your debit card and visa credit purchases just sign up for -- statement with the account direct deposit at least 1000 dollars per month and do a debit transactions per month cult leader bank right now at 8776917900. To learn more about the zoo Murrow awards program that's 8776917908776917900. Member FDIC equal housing lender zero point 20% annual percentage yield earned on portion of daily balance greater than 50000 dollars those who do not qualify presume rewards will learn zero point 10% annual percentage humans should expel a member FDIC. Hi everybody very Armstrong here from the financial exchange and I'm joined by. Leader bank does a tremendous amount of mortgage loans as a matter of fact I've used them a couple times to refinance properties in the past. Jake how's the mortgage business these days it's been an extremely busy Barea. There are a lot of people buying Holmes. So that's kept the purchase market very very busy and on top of that race are still at all time lows through a lot of folks who are refinancing their homes either get a better rate Orr reports some cash out because they're properties appreciate. That's risen asking how does somebody know whether they should call to refine. Well you know. Dude there's really 22 ways if they feel that the rate can be improved. Give history. And you know thirty year fixed racer all time lows. If you have anything in the in the 4% range frankly give its rate in my view would be something that I'm or if you need to take some cash and of your property wondered for a college tuition for kids aren't yet have home equity lines of credit we have home equity lines of credit as well and the cool thing about that is. If you already had a green looked great on your first mortgage you know home equity line of credit which will leave your first loan as it is allow you access the critical that the Euro. Makes an awful lot of sense and you've got fifteen year fixed rate mortgages by your adjustable rate Mort all types and hopefully we we have all types of that in addition to that we're actually very active Jumbo lenders so. And properties have really appreciated in the markets in Massachusetts. There's been higher demand for Jumbo loans that we do a lot of that so last year Berry were actually not the number two home purchase minor Massachusetts. It's good for you congratulations folks that's Jake too early from leader bank they can be your mortgage bank call them toll free 8776917. B 900. You can check out all their rates on line at leader bank dot com or you don't talk to human being given McCall they have loan officers standing by right now. 8776917900. That's toll free. 8776917900. Securities are securities America income member in PC advisory services are securities America advisors. On represented on our advisory group and securities America companies that. Knowing this there's the charts graphs and numbers all day and just listen to us it's the financial exchange with Barry Armstrong and -- and up on the financial exchange radio network. The recent decline in oil prices have benefit many of us matter fact this been like a big tax cuts. We're joined now by default massage from Bloomberg News. Because I'm worried that this tax cut we've received in terms of oil prices may be temporary tiger paw hurry you. We're glad to there Paul can you talk to us a little bit about. Bloomberg they did and survey. Of twenty oil analysts. What do they projecting is an average price for oil. As we head into 2017. They the F express four vote to Clinton unless will be about 45 dollars with a because. That compares to. Around about like 41 as well they're treating it now and not much of an increase can inspection. Now I read though that there's been one trillion dollars wood MacKenzie. Is saying he's been one trillion dollars taken out of capital expenditures. In the energy sector that's got to have an impact on production at some point. Yeah it definitely ruled excellent. Decline and your sort of intrigued I guess we get to the second half I think yeah. How much production has come off line domestically how many of our rigs are shut down during 2016. All the things we talked I think that 60% of from the peaks. It's in a medical leave. Grotrian because if they but that is necessary to coordinate very well with US production has even that was seen Greek talks right into the past few weeks. Can take a lot about TST. Bristol and increased it production fell and expect that it too is to more production pull at least an idea. Do you think we'll have Maurer bankruptcies. In in the energy sector. Yet definitely testing whisking had just continue continuing liberal Los. An addicting they now are much lower levels so. Does that affect continual cash hyping bill pretty that the Huffington as we keep. Going along with these Stanley Cup places that you that debt at least more bark piece with in the space. And your pop thank you very much for your time we appreciate that's the information as looking for. Thank you. You know that's the that troubling part that you can't take a trillion dollars. Out of exploration and capital expenditures. And expect to maintain the same level production in the long term in the short term. You can't rate you can yup you continue to eat because a lot of these wells the way it works folks this. Eat the they drill a well and they can effectively put a cork in it. Until they're ready to tap that well. So we may be in a phase right now truck where. Were still tapping wells that were drilled a year ago two years ago three years ago yeah but at some point if you're taking it trillion dollars just think about how much you've had. Take that much money. Out of exploration. It's going to reduce supplies sometime in the future. Well it is but you'd need supplied to be reduced because right now you up surplus that's why prices are as low as they are right now is needed depending on you know what you're looking that. You've got a two or three million barrel surplus. On a daily basis. Right now really for the first half the year has started. New dwindled somewhat that that surplus is probably in the arrangement of a million to a million and half barrels a day at this point. But obviously you know you've got all of this excess capacity and we've we've talked at length about. The lack of storage for a lot of the soil were right now in a lot of cases if tanker sitting offshore that don't have anywhere to unload their royals because there's so much excess supply. That's out there so. Don't you wish so that you could have a 500 gallon gasoline tank in your backyard. And just fill that sucker up now at a dollar 91 gallon of be great wouldn't. I think that would take that bet you know I just don't see the the you've got to oil trading in this forty dollar range. Eight Tenneco Laura knew it was a low we saw 27 dollars a barrel back and cover we get a touch put them for some reason they can point 660 or somewhere in that ballpark very temporary though. And it was a straight line. It would put up 2750. Inside of four months. And now it's backed off that fifty. Yeah Ali it it it has but even you know you saw it go below forty yesterday it's bounced off that since then so you know they definitely are still some concerns but. I don't think you touch that 27 number again because the supply concerns were so much greater back in the the winter. Back in January February I don't think you get back to that point but you know having gone below. Forty at this point you could see a touchdown that 35 range somewhere in that ballpark. But you know again it's it's it's very difficult to predict commodity prices over a short term trading period. 860 asks what type of companies are most at risk for bankruptcy Chevron and Exxon absolutely not. You know you look at the Chevron's. And the excellence of the world. Many analysts struck refer them is almost being banks this day there that they potentially. Are the big beneficiaries of these low oil prices because. As the smaller you're talking about. Very small producers that are going bankrupt right small drilling operation to exact day you know may have borrowed twenty million dollars thirty million dollars and they can't make the payments. Right those are the ones that are going bankrupt. Yeah it's it's the small guys that they borrowed money at 89% in order to finance their operations big oil will be a hundred make it paid back. Instead oils forty and they can't coast the companies that are really connect really gonna struggle companies like an ExxonMobil or Chevron they borrow money to produce they departed 234%. They're able to go out borrow at those rates and then go and bio applaud these companies for pennies on the dollar. What they'll go to going out of business. Right ExxonMobil go to Wells Fargo and say look will buy some of your portfolio Yemeni and Wells Fargo said Campbell we've got. 300 million dollars in. Delinquent energy loans and Exxon will say well we'll give you forty cents on the dollar and it's a negotiation decorate it and it's all based on. You know the the type of wells you're talking about. But that's why companies like Exxon are being considered banks and you last the question why wouldn't the you know the saudis lowered the price of oil again. And they're doing it just to protect market share right if it eight they don't want they don't care the price is fifty dollars a barrel they don't want Iran eroding the amount of oil that Saudi Arabia is allowed to sell. No it exactly you have you have these countries in OPEC that have had this up uneasy alliance for an awful long time. They don't like each they don't really like to the particularly much and in particular. You know the saudis have come out and and really it was them that kicked this off two years ago and they said look we're gonna produce as much we can't put everyone else or attempt to put everyone else out of business. And hopefully that buys us another ten to fifteen years. With oil as a major part of our economy they've they've also said okay within five years we wanna diversify our economy well probably the one I see that it's pretty difficult to do that. But they're trying to buy themselves time when we're all you have is one resource and that's what you have to do. When if you think about it logically it does make sense here's why. If Iran is selling a lot of Boyle say they get their production back up four million barrels today five million barrels a day six million barrels per day. They're using that money to buy munitions and fight against Saudi Arabia. And so Saudi Arabia is looking at it like well if we cut them off from a cash flow perspective. Were able to effectively. Demilitarized. Our new our enemies and I think that's part of the logic behind Saudi Arabia owe yeah it's it's definitely peace but a military. And it's and it's a military for our trivia contest is brought to you by Arnold's lobster and clam bar they're located on US route six in east ham Massachusetts. That's a great raw bar including Wellfleet oysters lobster rolls fried clams terrific onion rings. And much more call them that fives early 2552575. Or visit them on line. At Arnold's restaurant dot com the text number is 68680. Should you care to participate in our contest. We're doing tribute today based on the sitcom called. All in the AM. Which actor played might stiff. Better known as needed in all in the family first listener with a correct answer text number again is 68680. First listener with correct answer wins a fifty dollar gift certificate to Arnold's restaurant. Which actor played might still make better known as meathead in all in the family. From our insurer match dot com Steve. Making your Smartphone even smarter. Download no mobile lab by surging financial exchange joke in nineteen Jordan who will play in store. This is the financial exchange radio network. Commodities are an essential element to the global economy the fluctuating costs of items such as oil natural gas and metals like gold and silver may play a vital role in the market's performance on any given day hi this is very Armstrong from the 803934001. Ask for our free guide on investing commodities and ask about our free financial review of your investment strategy that's 803934001803934001. Securities offered through securities America incorporated member finger SIPC and advisory services offered for securities America companies incorporated Armstrong advisory group in the securities America companies are not affiliated investing in commodities is often through futures trading with a risk of loss in these contracts can be substantial you when your advisor should carefully consider whether such trading suitable for your financial situation. Each week on the legal exchange let's get they join how to reduce your state Texas federal avoid probate and how to keep your assets in your blood line that's great but what about the family behind your state plan weapons to your money if you get sick and going to a nursing home. The answer is that we spend down in a hurry in to the tune of 151000 dollars per month than 180000. Dollars per year hello when your money last if you went into nursing home. When your spouse have enough to live on if you did nothing to protect your assets the Medicaid rules change almost every year and the elder law experts at Cushing Dolan have updated all of the pertinent facts and figures in their toll sixteen Medicaid guide call now for your free company at 8668485699. You can also download it by logging onto our website and legal exchange showed dot com Cushing doling them and helping families protect their assets were more than thirty years let them help your family. 8668485699. That's 8668485699. Or visit legal exchange showed dot com. If you're looking for a great deal on a new counter program you should check out the zoo rewards program to leader bank is now offering is checking account along with the companion savings account and as long as you qualify you'll receive three benefits. First you get a savings rate of two point 05% annual percentage yield up your first fifty K all of your ATM fees from you some other banks will be reimbursed and you'll get 1% cash back by using your debit card and visa credit purchases just sign up for the statement with the account direct deposit at least 1000 dollars per month and do a debit transactions per month cult leader bank right now at 8776917900. To learn more about the zoo Murrow awards program that's 8776917908776917900. Member FDIC equal housing lender zero point 20% annual percentage yield earned on portion of daily balance greater than 50000 dollars those who do not qualify presume we're awards will learn zero point 10% annual percentage yield on savings valid member FDIC. It's not too late to get a great raid on a whole mortgage leader bank specializes in a wide variety of purchases and refinance loans at some of the most competitive rates in New England a dedicated loan officer will work with you every step of the way and their local decision making means a faster closing call 8776917900. That's 8776917900. Or visit leader bank dot com. Member FDIC equal housing lender and the lowest number 449250. Subject credit approval leader bank a step ahead. Your dream home is within reach with a Jumbo mortgage loan from leader bank near Jumbo loan program designed for financing in excess of 500000 dollars offers fixed or variable rates for both purchases and refinances all originations are managed by your bank's local underwriting process and teams for additional information call 8776917900. That's 8776917900. Or visit leader bank dot com. Member of the NC equal housing lender and Miller is number 449250. Subject to credit approval leader bank a step ahead. Your financial strategy has to include a thoughtful insurance plan insurance exists to protect your assets and our friends at the insurer matching agency can prepare a personalized plan to get to the best coverage that the best price call insure a match at 84499. Match 54 for 99 match many of our listeners own home and one or two cars if that describes you you're the perfect candidate for free consultation to make sure your property and family are safe and properly covered will also dig out all the discounts preferred customers like you can qualify for call insurer -- to compare multiple rates and carriers at 84499. Match that's 84499. Match insurer match works at the leading carriers in the industry like our bella Plymouth rock and more their license for all types of insurance and they can save -- time stress and money with just one phone call and one relationship call today 84499. Match or go online -- insure a match dot com. Its financial exchange at your fingertips. Well. Thanks 6868. And it's the financial exchange on the financial exchange radio network. Sky news that Volkswagen's sales for the month the talking about the month of July here. Down eight point 1%. When did the wheels come off books like this since September I'm over. Attempt September's weather news broke October's when we first started to us he the first impacts so this is somewhat expected and the tab sales that might actually be a little better than expected you know. You know it I think heard projections could have been a lot worse there if they're only down eight point 1%. That's not too bad given where they could have been. The we ask you the question which actor played by ecstatic in the TV series all in the family correct answer of course was Rob Reiner. When there is up Paul from Natick Paul's take gnome. One of our fifty dollar gift certificates Arnold's lobster and clam bar located on US route six in east ham Massachusetts Arnold has a great raw bar. Including Wellfleet oysters lobster rolls fried clams terrific onion rings and more call 50 wait. 2552575. Or visit them online at Arnold's restaurant dot com. For more information here's a shocking statistic. Nearly 13. Of thirty somethings and more than 15. Of those people in their early forties receive significant. Ongoing financial support from their parents this according. To a new report from the solely society of grownups and financial planning company for young they felt they couldn't pick a better name. Well. I come I'm somewhat shocked by that number like 13. Of your peers are still looks not their folks. I've been cleaned in one day it was either twenty. War twenty. I was still parents Opel plant until like 2420 fives in that ballpark is that considered neutral. I consider coaching. And think that some coach. That's like a family plan thanks so it's it's stupid to Iran might plan because it's discounted to zero you know about Peter you're on your own you have your own you're lucky getting married you can't be on your parents plan are out there we both Clark and our parent what it's yeah cheaper to do it we looked into my son didn't get off our parent plan to buried. And then my daughter's still on it as a center but my eyes back. The sun is an investment banker. And he still on him and the grit my parents are mixing god and I did my parents are moved off of me with my Netflix that doesn't know what you mean what does. That promote him coaching that they're getting a 150 dollars a year worth the video. That is a move should the report found that 35%. Of all adults ages 21 to what 45 received financial support from their parents. Of those more than two thirds. Said that they would could not get by without their parents about Tuesday. Quick question nor audience X 8680s or text number. Are your kids your adult children still bolting off would you let us know they Evian I guess if the again I didn't realize again if if cellphones count mine minor Moochie. I think like that that's what I consider moved I don't consider sending you know hundred dollars and 200 dollars a month. I considered OK still on the cellphone plan. You're still on you know and he's still on and you know you'd. How Netflix plan in this in nine that smooching team is I'm smooching if you pay him but they're talking like. Do you you know thirty or you pay your parents for your cell phone bill oh yeah of course also I thought guys kind of matchup every undermine not. I'm starting our congress our Blair you've got to get on top that you gonna whip these kids in the shake my wife is a soft let's get on with these kids in the shape I thought about military schools not too late. Hi it's a good option. A 2015 report from Bank of America found that more than half of the parents a bull O'Neal's. Think that it's harder for today's young adults to live within their means. Then it was for their parents at the same time at the same age I don't know if I agree that. The act of a I'm not sure. I note it's any tougher for your generation that was for mine. See it's it's interesting everyone says of things so much more expensive now but I think people today demand. Far more in terms of services and goods than it previously if you were to go back forty years now back. Lot of us starter apartments and everything. Didn't have dishwashers. Didn't have you know washing machines you obviously didn't have why fire Internet that you had to pay for you didn't have a million channels of cable we just had you know an antenna going over the air. People today want a lot more in order to. Feel normal I guess the best way I can describe it if you wanted to live like you lived in the seventies. You can do it for pennies on the it's just no one wants to do that no everyone says oh no I need to have new this new that. Kids these days needs kids these kids these shut anyone says Miami my mom owns might do cod. That's a bite you and him fight for your rentable that your mom bought you would caught. That's a great mom that's a great great mom if not quick announcement on behalf of leader bank this is a special announcement for all landlords. Chasing down late rent payments and making trips to the bank to deposit checks. Take a hassle out of rent today with zero rent leader banks on line rent collection tool called zero that they automatically deduct. Tenant's rent and he deposited into your account. Here's what you wanna do visit WWW. Dot Z rent dot net to learn more with zero rent. Your payments for each unit are received regularly and on the same date every month tenants pay nothing. And the first six months are free for all landlords. Visit www. Z rent dot net to learn more their phone number if you want to talk to somebody about this rent collection tool for landlords. Called a couple freed 8776917900. That's full free. 87769179. Years here. So. We might have a new my new all time favorite text that we've not seen here 171 might 33 year old fiancee still get an allowance of eighty dollars a week for her parents flyer and every dime a hundred jobs. Got to reader ever parents I don't know eighty bucks a week I would like to do that Liza 33 year old getting allowance with. I don't spending. I hunt and what he's got a rotten teeth out which of mobile launch. If you DOS with them through some chores. It'll Al would be teach your kids I didn't like it certainly when it's over what happens when your parents are gone now. You know it what woody what my you'll probably inherit a bunch of money. The eighty dollars a week time. But I left it that way and there will 617 says my wife and I let our daughter's 25 and 22 years hole. Live in one of our apartments for free in includes electric heat Internet and DirecTV. That makes a little more since you'll property and they're just starting out yeah they're 222 years old Blake. I understand that I've seen her from families for every three years old getting an allowance but how much could they rent that apartment right what's it with a two bedroom apartment were. That depends where it is you know fit eight is it really depends on where it. Where it actually is. And honestly like for something like that again it is long is the as long as the property is you know paid for an everything Daniel was a little bit of rent in the short term button you know the thought is I'm guessing that in Jack from Dorchester probably in a year to get a say okay it's your time to leave the nest and move on and. Find your place hit tried list over the weekend. Which thank whose fine is a very comparable experience to Hoover. And I did a little experiment so when we landed at the airport I took a cab to my hotel the taxi was. 54 dollars with tip. America's need to see you pay with a credit card and they put the option do you wanna give you know 1520 yeah tip but a 20% at so the taxi. From. San Diego airport to the residence inn would lose 54 dollars and 54. Then I got a lift car to get back from. The presidency in. To go to the airport yesterday morning Boca. And it was 26 dollars why less than half the cost and that was a premium they they charged me an extra 25%. Because it was busy. And it was still less than half the cost of attacks did you ever promotion of some sort none no I'd signed up I just signed up for the list application. So it was I was the first time user but no I did not have any kind of special promotion for and I bring this up because it it we're covering the story later in the show but. Who were in DD had done a deal together in China. And it's going to be bad for left I really question shock whether or not lift is going to be able. To survive in a very small segment of the market now yup but there's some financial pressure that there are under that is going to be daunting in the coming years. I agree and we know we talked a little bit about this yesterday. The Hoover is effectively thrown in the towel and China which is the right move for them I think they'd been hemorrhaging money over there. Spending you know pretty close to a billion dollars a year trying to clean government was really the fixes and doesn't do well to fix tends to be an in China pretty often I mean we've seen it. I I go back to you have the Chinese patent authorities saying that apple is infringing on Chinese patents like that that is the level that we've now gotten to. Donald Trump says the election is rated and I think many businessmen would tell you doing business in China. Is rigged in favor of the Chinese company quarter percent I'll tell you what though. Apple made a lot of money that deal that did day I was they've got a billion dollar investment equity in the last sixty days and we reported. You're kind of questioning that investment is there that lets you you're you're sceptical that and all the sudden that investment looks like a pretty good. Pretty good deal for apple. I also think that is almost the Branson that they are paying in order to get back into the Chinese mark podium now I have that guy if you're probably right I feel that that's what's going on they grab yourself. Opinion paper because up next Sean O'Reilly from the Motley Fool join us. He has to stocks to discuss with chuck is not a that's next from our insurer match dot com studios. Breaking financial news. The financial exchange with Barry Armstrong and chuck sub on the financial exchange radio network each week on the legal exchange let's give page you're on how to reduce your state Texas federal avoid probate and how to keep your assets in your blood line that's great but what about the Finley behind your state plan weapons your money if you get sick and going to a nursing home. The answer is that we spend down in a hurry in to the tune of 151000 dollars per month than 180000. Dollars per year hello when your money last if you went into a nursing home. When your spouse have enough to live on if you do nothing to protect your assets the Medicaid rules change almost every year and the elder law experts at Cushing Dolan have updated all of the pertinent facts and figures in their toll sixteen Medicaid guide call now for your free copy at 8668485699. You can also download it by logging onto our website and legal exchange showed dot com Cushing Dolan have been hoping for at least protect their assets were more than thirty years let them help your family. 8668485699. That's 8668485699. Or visit legal exchange showed dot com. Commodities are an essential element to the global economy the fluctuating costs of items such as oil natural gas and metals like gold and silver may play a vital role in the market's performance on any given day hi this is very Armstrong from the 803934001. Ask for our free guide on investing commodities and ask about our free financial review of your investment strategy that's 803934001803934001. Securities offered through securities America incorporated a member of the SIPC and advisory services offered for securities America companies incorporated Armstrong advisory group in the securities America companies are not affiliated investing in commodities is often through futures trading where the risk of loss in these contracts can be substantial you when your advisor should carefully consider whether such trading suitable for your financial situation. Hi everybody very Armstrong here from the financial exchange of them joined by. And leader bank. And leader bank has an exclusive. Program for those of you who are landlords your Cora collecting rent from 110 and 401 tenants. Zero and it might be something that you want to look into Jake talked to us about your how long has it been around. We've been offerings he ran for almost two years now two years and has it been successful spent extremely successful we've. Offered this product to really target hardly in the hours were still collecting checks in paper form in the NH. And the purpose of zero needs to really bring everything on the line between electronic but more importantly. Have a piece edit and forget it so what's a landlord has their tenants that up. And really there's nothing that needs to be done until the lease is over. The rent is automatically drafted from the Tenet's account can you choose the date of the month does it always the first of the month or could beat it there. That's a sign attendant on the fifteenth to be the fifteenth of every month yup absolutely so landlords that's the initial date. Whatever day of the month that is. It will be the same date every month of the collective how much does it cost the landlord to set this all so it's absolutely free if the landlord banks were OK so if your idea. Landlord knew if your bank account leader saying you get this Secret Service for we get for free. If you have a bank account elsewhere will still provide a service for small monthly charge. And if you ever decide to move your bank relationship over will waive the fees that. Pretty pretty simple it's pretty cheap and it's a great product are lame or perhaps the only club. Lot of our it's called zero rent and the website Ford is www. C you rent dot net. Or you can call leader bank at 8776917. B 900 to learn more 8776917900. Collect your rent electronically makes an awful lot of sense to me the phone number again 8776917900. Or visit. Zero rent dot net. Stock tips stuck with the Barry Armstrong and just gonna he's the financial exchange on the plane into extreme to radio network. Everybody loves stock talk and that's what we've got now I've just got to. We certainly do have a little bit of stock talk here we're joined by Sean O Reilly from the Motley Fool and John I appreciate you joining us today. You bet thank you for having me and good morning bought and the mourning period chuck and I got there I love your guys that who burtless discussion. A UA you big guy left left Drew Brees and Sean. We yeah I would indeed be I do not own a car and beat Justin. Loop current level. A bomb was one of the things that entered my calculation being get rid of my out my double real. Yeah especially down in DC you know the the metro down there has a couple problems to be putting it kindly at putting. Let's let's do a little bit of not talking a couple companies here the first one if I have a downright is on Monmouth real estate investment corporation is that right. No I think. Yesterday talked about that I one that. Highlight Western Refining and he'd be in bed I'm more than average out of dot com. Which you'll start to Western Refining. Yeah soul I came across these guys. When I was looking for a year. On the paper Warren Buffett that they'll XP stick. You people are comical note ago. If I'm down there refining operation he's got an app billion dollars today. And came across Western Refining it and it yet. He'd told 66 and basically any metric you'll want to look at Tom unfortunately for mr. Buffett it is too small and mark Kaplan dom. Pick two billion dollars in two and up. Now why is this company performed so poorly over the course this year I'm looking at the chart rated down about 40% whereas Phillips 66 is only down about 7% for the year. Yes the the bottom line is that kind of that that would be energy industry problem on previous Apatow. I'd you know I would like oil pipeline and everything. All these guys are making the same amount of money that they were warranted it be oil pipeline like you can market can organ ONEOK there. You know it it just be days been decayed what are unable to pick proper test vote everything column. Don't think mr. about the the spread between gasoline and oil and nothing to do away. Anything. Is there any concern I know I've been reading in the last couple weeks that there is there's now instead of a glut of oil so much there was almost a glut of gasoline. That is developing because so much oil has been refined it isn't being used is that a concern at all or do you think that's a little shake out. All I I negotiate out Berkshire right do you think that they short term situation. Com. Be EU economic oil that he only moderate all the oil and baton. Doubt that all the demand for gasoline like India and exploding trying to steal our gasoline demand I think of a deep respect your readers something. Com cutbacks and every but I like what whining because. All of their wineries are in primarily western acts that they got one and he's been but it. Equitable pop New Mexico one minute episode and these particular artery stopper. We love competition and but he's going and that really. OK okay let's go let's go now over two AB InBev this is a company. That obviously is you know. Pretty much clicking on all cylinders at this point it's gone from a press event 52 dollars a share five years ago now open to the 125 to 130 range. Where he's even going from here. Op so IE I did not I there're there are huge company and I usually don't want to giant news. Now how much bigger thing yet com. But I actually start to look into them because of bear out there and be completed acquisition of south African anger between Miller. And but you know. Problem. That just got a group but he and I just department and to be Miller just recently signed off on nom the deal after your media and a read the acquisition price speak. Of the break things that did you know. Wonderful act on not a pound bomb but basically I love the deal because bottom line they're swapping out at the B Miller's. Com US operations which is. Basically Miller or. For their giving that up there knowing that the core. And they're swapping it for all of a big deal at BB Miller international operations particularly in South America and Africa. And I wrote about this. In the article published author to go on black on the call one docked on the the next country and highlight the market Apple's Asia Europe not the market appellation. Chair is that it it anymore and the only countries. It ranges from like 95%. Market share and route to 92% Ecuador. Com. Poland 37 South Africa beat view that there are swapping. You know. The US market Corey competitive especially with the dot com craft beer war. Two continent where they're basically dominant and that it. What are they doing in the US market with regards to the craft beer trend obviously that's been a big shift and how were they reacting to. They are slowly but surely it is kind of a test flight to because you wanna be seen as cool you wanna beat. Been as you know operator were rated beer's been giving people want. Aren't they snapped up a you wrote a debate epic about magic cap a couple years ago maybe a little laboratory will be here inadequately. Com but craft beer even not growing like crazy and everybody loved that com. You know everybody paper Boston Beer I want them out on the degree go to Cuba may have left at that point nine and marketer and state though. They're just gonna keep on all of our our Budweiser and being. Are a very good shot appreciate you joining us and thanks for all the and spoke out. You ever heard Sean O'Reilly from the Motley Fool talk about a couple companies the first being AB InBev Anheuser-Busch InBev with a ticker BUD. The second one being Western Refining with a ticker W and. All or how. How common is the craft beer industries I noticed when my kids come over Newton is always craft beer you date they don't go and buy me. A case of bud they go in they buy these look and then they have these beer tastings and it's hey give it seems like it's all the rage. To drink these little craft Beers out of Vermont to New Hampshire and Maine. It's it's getting big time I mean when I go to use the liquor store now bombs is looking for something to pick up just too wide a kind of go through over the course of the week a six pack or something like that. And that's around buying you buy in the craft yep how much more do you pay for that you pay probably about twice as much. And people are doing that it's worth that. It takes so much it that much better while. And India and its outlook I mean it's it's also stuff that's actually American beer at this point I mean you talk about Anheuser-Busch. You know MillerCoors that there are all owned by you know foreign companies the order that. You know she she won't drink if she doesn't want I just say don't get me case sales. I'll tell you this bum out on the beaches for you know a day news these crappy beer you're still buying of the Reuters partnering. Our thanks for tuning into this hour of the financial exchange chuck is not a talker so that Barry Armstrong from our insurer matched dot com student. Commodities are an essential element to the global economy the fluctuating costs of items such as oil natural gas and metals like gold and silver may play a vital role in the market's performance on any given day hi this is very Armstrong from the 803934001. Ask for our free guide on investing commodities and ask about our free financial review of your investment strategy that's 803934001803934001. Securities offered through securities America incorporated member finger SIPC and advisory services offered for securities America companies incorporated Armstrong advisory group in the securities America companies are not affiliated investing in commodities is often through futures trading with the risk of loss in these contracts can be substantial you when your advisor should carefully consider whether such trading suitable for your financial situation. I am very Armstrong from the financial exchange and I told you about leader bank many times I've taken advantage of some of their super offers and I'm here to tell you about another one there are offering a tremendous deal for a small business loan this offer is only good for a limited time so if you own a small business and you're looking to make improvements this is the deal that you should really pay attention to you can secure a four year loan and fixed rate of three point 99% with absolutely no closing cost alone can be up to 50000 dollars and leader bank promises a two week turnaround in under ready for decision that's a four year loan at a fixed rate of three point 99% this is a tremendous offer but it's only available for a limited time caller right now 8776917900. That's 8776917900. And you can lock in to this great offer 8776917900. Or visit them online at leader bank dot com. Member FDIC equal housing lender and MLS number 449250. Subject to credit approval -- bank a step ahead your financial strategy has to include a thoughtful insurance plan insurance exists to protect your assets and our friends at the insurer -- agency can prepare a personalized plan to get to the best coverage that the best price call insure a match at 84499. -- 94 for 99 match many of our listeners own home and one -- two cars if that describes you you're the perfect candidate for free consultation to make sure your property and family are safe and properly covered will also dig out all the discounts preferred customers like you can qualify for call insurer match to compare multiple rates and carriers at 84499. Match that's 84499. Match insure -- match works at the leading carriers in the industry like our -- Plymouth rock and more their license for all types of insurance and they can save -- time stress and money with just what I'm joined by. At leader bank. SBA loans. Boy they've been around for awhile but not everybody takes advantage of them and very few people know how they work. They spare yes we we to a lot of small business lending its leader bank. Where preferred SBA lender which really means we can make their decisions in house do you quickly within a couple weeks that. So we've been very active because a lot of small businesses have been growing in this economy so for example we have a special right now. Which is small business loans up to 50000 dollars were offering a fixed rate of three point 99%. Fixed for four years and no closing cost. It's been a very popular product but more importantly we're really helping small businesses who need to grow and expand their business. There's a lot of uses for the small business loans and give you a couple of examples. So recently helped the restaurant in Cambridge that was doing so well they actually need to expand in this space next or. We help them local law firm. Who needed a line of credit to help expand its business sure we help today on local trucking company by a couple of new trucks. Because they're expanding it so there's a lot of differing UC is there's usually no limitations on and is longs for a good corporate use but it's 50000 dollars you pay it back over four years he has an interest rate is three point 99%. Exactly. With no closing costs it's a pretty attractive program and it's our way to Kenny work with the local community and build small business relationships. Very good folks that's. SBA loans. Call them toll free 8776917900. Three point 99% to pay it back over four years. 8776917. To 900 poll free. 8776917900. Or checked them out online at leader bank dot com. It's not too late to get a great grade and home mortgage leader bank specializes in a wide variety of purchase and refinance loans at some of the most competitive rates in New England a dedicated loan officer will work with you every step of the way and their local decision making means a faster closing calling 8776917. B 900 that's 8776917900. Or visible leader bank dot com member FDIC's equal housing lender and MLS number 449250. Subject to credit approval leader bank a step ahead. Hi I'm at a London and appear worried about your character Loveland living alone like I was. And you are reliable senior care information. And call a place for mom. The nation's largest senior living referral service you'll get free information on assisted living and alzheimer's care nursing homes. Even important financial information. They had obviously -- search every place not just given me news. They Downey plays for which he could afford and it was magnificent. Where now very confident that she's safe and they just helped every step of who. I so if you're struggling to find reliable senior living information call plays for mom this is a free service and you can trust them to help you if you struggling to find reliable senior living information for your mom or dad. Didn't call or go online to get that we help you need during this turbulent time call now pay 804677530. 804677530. Pat Boone here with a word about banks' safety you think your money in the bank is safe. Don't Banco and it's a generation ago bank account felt secure and they paid interest this encouraged the virtue of thrift. Saving but today. Bank accounts paid virtually nothing. And it shifted from low risk to high risk for example did you know your money deposited in most US banks could be subject to limited withdrawal. And even confiscated by existing executive orders or be here this. And that's just the first of nineteen risks explained in a new 32 page white paper entitled don't bank on. Still think you're bank deposits and yet this vital new white paper now call toll free 8051960. To 71 that's 8051960. To 71. Whether you're celebrating a milestone or diversifying your portfolio precious metals are Smart meaningful investment one ounce and 110 ounce silver and gold bullion coins are now available at all leader bank locations bank locally and buyer gold locally that just makes sense of leader bank a call and learn more call 8776917900. Or visit leader bank dot com not a deposit not FDIC insured uninsured by any federal government agency not guaranteed by the bank and may go down in value. Leader back a step ahead fight your favorite news photos and sports updates on your phone when he T-Mobile from the Associated Press AP mobile where the news gets its news. This is the financial exchange with Barry Armstrong and chuck sound. You're exclusive look at business and financial news affecting your day your city your world. Stay informed and up today come. Economic and market trends plus breaking business news. And the initial exchange with the very Armstrong and each so. The stock market didn't do no wrong between the middle of February in the middle of July so it had a five month run. But you know what this so long that is occurring. In the Dow's down 113 point struck it reminds me. The rally you know wasn't like we got a 500 point day on the way out. And we're not getting 500 point gaze on the way down. We had very small you know B forty point one day sixty points the next hundred navy through small moves. And got a heck of a rally and the Dow rallied what 15% probably says abuse probably up. 15% from the lows that are hit in February now it's pulling back a little bit. This this feels like it could be a similar situation to what we saw. Last November through February where. You remember back in now last October November oil price were actually up in the mid fifties at that point we are up in the fifty to 55 range and we took that plunge down to we finally got as a low. As I think was about 27 dollars a barrel somewhere right around there. In the market followed about maybe a month or so behind it it lagged it somewhat but it followed. About a month behind led down by the energy sector and what are we seeing here well yesterday the energy sector is down about 3% while the market didn't move on. Today the energy sector continues its all. You know this is it's very reminiscent of what we saw about eight or nine months ago and especially you know you you start you get to the point where. They start to cross and some thresholds in the next couple days if this continues down. And and you may see another 10% correction in the short term here just because you and I both talked about it. This market rallied. Based on. Things that we don't things it didn't make sense. Arts some consider that to be counter intuitive though because you'd think they'll lower energy prices that's good its attacks. But the fact of the matter is you know it energy companies who doubts who you're talking about your British Petroleum your Exxon Mobil's U you know across the board the energy sector which is a big sector but it also impacts the banking sack and a lot of people don't understand why the bank sold off back in February. Depp in it the big reasons that the banks have made a lot of loans to small energy companies. That had backed them effectively. You know thinking that they were going to be able to be paid back with hundred dollar oil. When that when oil prices are that high you simply do not get the repayment of those deaths and the problem is you know if you have bad loans in the energy sector. You know doesn't necessarily spillover to other sectors but it does make banks more cautious about lending in general just because there margin for error becomes much thinner. All right. Did you guys know that there are seven million. Americans that are in default on their student loans I didn't know was that high these horrors have gone at least a year without making a payment ignoring hundreds of phone calls emails text messages. And letters from federally hired debt collectors. Borrowers in long term default represent about 60%. Of the 43 million Americans with student debt. Now just to put that in perspective. 60%. Of student loan borrowers are in default. Back in the economic crisis of 200789. I think we had mortgage delinquencies. They didn't even hit 5% and you're like a high in the. Force yet we we got up rating that I think was four it was like four point 74 point 8% then the default rate for mortgages now is less than 1%. Their failure to repay. Threatens to leave taxpayers on the hook for 125. Billion dollars that's the amount that this group own clothes. Yeah it's it's a very real problem and it is. You know again you have. Debt collectors that are calling these people pretty much is being ignored at this point what's ironic that chuck is many of this group is eligible for forgiveness one of our elected to pick up the phone and say. Hey I I went to like. Bunch of the muddy was long for some of these phony baloney the for profit colleges now and Andy are eligible to have it forgiven. But they they don't go through the process. On now be in a controversial move the government has stepped up garnish and it's. You've garnished 500 in fifteen million dollars in the nine months ended my through march of 2016. So. It it's it's. Too bad and in subways and that. You know use their defaulting on small bounces the average balance the median balance that their defaulting on track is only 8900 dollars. Yes it's you you're not talking about the people with the you know 150000. Dollars in debt that now necessarily doing this it's people that may have as he said less than 101000 dollars. From some of these for profit universities but they simply are not dealing with the situation and as such they're not getting any. Assistants. You know you two are very different from each other talkers and even believe sometimes share the same name trucker. You eat your very different in terms of your work styles. Tucker I can email on a Sunday morning. At. 6:37. O'clock in our hobby email back from him within an hour Ike any Mayo shot on Friday night at nine. And I'll get an email back around noon on Monday. Tucker you are you're always online. Yeah there are always on the grid you're. And four of the same disease that I have yes great nights yet we're very much like in that way a lot of people down. Now I'm always glued to my phone I'm always checking Twitter or check my email. I wish to be offered more but I'm not is stressful for this is us Obama stressed by president and its says the unit that reason I bring this up news. The headline news employees are exhausted by the constant need to check email after hours when the study done. Know that I find it exhausting. I wouldn't know on the worst person talked about the site I don't I don't check my email after hours I I don't have my my thought is I can't do anything so what's the point. Well I I could not mark market's not open you can't you know banks are no e-book what are you gonna do right you can't do anything Tucker and I saw a lot of the world's problems on Sunday mornings well actually of I want to talk to you about that. If you did come up with a novel solution missiles security that for some reason is just not being. In which one is that I have a lot of us it's the same one that's with the the Calvin Johnson rumor where he's gonna come back and pay his salary in Social Security up to us somehow save everything yeah. You know this. Combining rumors here Oka now aren't well and at any rate. It's I I apologize for causing stress in your life. Tucker Tucker what I think it's more like my sisters and market rate and she's a she's a manager. And you know she finds herself checking emails late at night even on the Ellis a Saturday or Sunday and being asked to do. Things on the work related and it's just like more the norm nowadays and it's just it's not healthy which you know the reason I do it is I might have an idea. On Sunday morning. Which usually the worst kind of ideas. A lot of times it'll be like I'm reading a read in the paper rate and I come across a good story idea. Four and I'll send it over Tucker for Haiti thinking getting guests from this publication to come on and talk to us about this new technology. And Tucker. Response within ten minutes oh yeah I. Don't celery that's sort or I'll tell Elektra. He is just as guilty of sending these stories after hours is and we do this no CIA CIA I had no work for anyone. There's there's time to rest now blame rhetorical under it's you it's not healthy to be working out late night. It's really pushing back against being over connected you don't say. What I had to do you should emphasize your point talker. Is if you get an upsetting email. At 8390 forget it you're apple might cancel right right. If you got a big problem you have to walk into the next day president what's the point and it will deal with in the morning maybe get their idea I've been told that want to toys. McDonald's. Is removing high fructose corn syrup from their sandwich with McDonald's is all of the sudden and sit there and health care. They say they are making. A concerted effort to improve the quality in the caliber of the food that they answer the question is going to be will still meet with the burial Armstrong seal of approval. You have no date they're putting butter. Instead. Liquid margarine liquid barge in on the and the exit off the that was a big win for me now. That was important. I don't know I mean look all I know shake shack makes it very high quality burger but maybe it's too high quality for I wonder McDonald's is going the same way now to go in this Tim McDonnell say they're gonna use cage free eggs now yup yup I don't cage free by 20/20 antibiotic free by 20/20. They have pulled a bunch of migrants out of their nugget and everything I think they're doing some of this play defense its losses thing. I think so I am I'm I think there's probably some of it because I think that there are probably some class action suits that are likely out there. At this point but it's you know also just it's this is a way. That's I think McDonald's probably justifies this as a marketing cost and that if view. Remove higher dose corn or even if it costs a little bit more you say look it's a marketing cost because now we say we don't have this that may get some people coming into your stores. That would have previously. They don't they cite in the announcement they cite the risks associated with obesity. And then diabetes and a lot of the stuff their pollen out there pulling out of their menu is related to obesity and I'd be. What I am curious about is whether or not they are able to maintain. There's supply chain is officially as they had previously because McDonald's what you can fault them for a lot of things about their food. But they are efficient. As any company out there in terms of getting their supplies from point a to point B in maintaining standard quality. Or lack of quality in some case across the board that you know you know when you walk into a McDonald's you know exactly what you're gonna get and you wonder if they start changing some things a little bit and obviously you talk about you know a lot of preservatives and this and that which obviously are good for people. You start to change that you wonder how consistent the food is going to remain. Tesla and solar city have agreed to a two point six billion dollar merger electric carmaker had made an offer in June. To by the solar energy company. Also chaired by Elon Musk will talk about that with Mike Ramsey from the Wall Street Journal next from our insurer match dot constant. He has candidates who watched the holes. We need to watch the markets find out how one can impact the other throughout all of election 2016 from right here it's a financial exchange on the financial exchange. Radio network. Commodities are an essential element to the global economy the fluctuating costs of items such as oil natural gas and metals like gold and silver mate play a vital role in the market's performance on any given day hi this is very Armstrong from the 803934001. Ask for our free guide on investing commodities and ask about our free financial review of your investment strategy that's 803934001803934001. Securities offered through securities America incorporated member and SIPC and advisory services offered for securities America companies incorporated Armstrong advisory group in the securities America companies are not affiliated investing in commodities is often through futures trading where the risk of loss in these contracts can be substantial you when your advisor should carefully consider whether such trading suitable for your financial situation. Each week on the legal exchange let's get updates on how to reduce your state Texas federal avoid probate and how to keep your assets in your blood line. That's great but what about the Stanley behind your state plan weapons your money if you get sick and go into a nursing home. Mean answer is that we spend down in a hurry to the tune of 151000 dollars per month than 180000. Dollars per year hello when your money last if you went into nursing home. When your spouse have enough to live on if you did nothing to protect your assets the Medicaid rules change almost every year and the elder law expert at Cushing Dolan have updated all of the pertinent facts and figures in their toll sixteen Medicaid guide call now for your free company at 8668485699. You can also download it by logging onto our website and legal exchange showed dot com Cushing doling them and helping families protect their assets were more than thirty years let them help your family. 8668485699. That's 8668485699. Or visit legal exchange showed dot com. If you're looking for a great deal on a new counter program you should check out the zoo rewards program to leader bank is now offering it's and checking account along with the companion savings account and as long as you qualify you'll receive three benefits. First you get a savings rate of two point 05% annual percentage yield up to your first fifty K all agree TM fees from you should other banks will be reimbursed and you'll get 1% cash back by using your debit card and visa credit purchases just sign up for these statement with the account direct deposit at least 1000 dollars per month and do a debit transactions per month cult leader bank right now at 8776917900. To learn more about the zoo rewards program that's 8776917908776917900. Member FDIC equal housing lender zero point 20% annual percentage yield earned on portion of daily balance greater than 50000 dollars those who do not qualify presume rewards Roland zero point 10% annual percentage human savings balance member FDIC. Your financial strategy has to include a thoughtful insurance plan insurance exists to protect your assets and our friends at the insurer -- agency can prepare a personalized plan to get to the best coverage at the best price call insure a match at 84499. Match 54 for 99 match many of our listeners older home and one or two cars if that describes you you're the perfect candidate for free consultation to make sure your property and family are safe and properly covered will also dig out all the discounts preferred customers like you can qualify for calling -- match to compare multiple rates and carriers at 84499. Match that 84499. Match insure a match works at the leading carriers in the industry like -- bell Plymouth rock and -- their license for all types of insurance and they can save -- time stress and money with just one phone call -- one relationship call today 84499. Match or go online -- insure a match dot com. This news financial news and what it means you lose it's only here on the financial exchange with Barry Armstrong and showed saga on the financial exchange radio network. Tesla Motors on Monday said it had reached the deal to buy solar city. A little less than the price it originally proposed. Joining us now from the Wall Street Journal is Mike Ramsey. From well the Wall Street Journal talking to us about this deal. He might power you. It carried good so what this looks to be about what two and a half billion dollar deal. Yet two point six billion dollars it's a little less than. Originally. Proposed by Elon Musk. Mr. much that he wasn't involved at all in the pricing discussion that was part of their effort just sort of keep an arms playing. From what is a rather than usual transactions and he is the largest shareholder vote. Solar city and Tesla by a longshot. Was it about 20% of each company yeah a little more than what it's about. Is that 22%. Boat company down. Would. What do they cite as the synergies what what's the logic behind the merger is you're talking about. A solar panel company that does home installations in a car company. It see here's his energies for solar city and Tesla is is a fundamentally a battery company and also electric vehicle in the building huge battery factory. Along Panasonic. Com that's going to be the world's largest battery factor by a factor re leased and maybe more like the factor of ten. When it fully finished and the idea theirs right now are the battery solar big problem is that sunshine during the day bed at night. He he's all that energy elected stored somewhere the need batteries today energy there it is there's two things one day you combine that. Stored with the solar and and the second big energy for them is that. Highest costs for solar panel company is getting customers to China. Cost about 30% of the overall installation costs is giving me customers though Tesla brand. Very strong and has almost two under retail stores. That people could go into it and it is that that would be that point they can. You know find out about solar in China and that would lower their acquisition cost so. From the outside that they're benefit from the Catholic side it's harder to see if that you know there's big service element to sports city installation crews. Those people could be used to it. To install home charging system for Tesla you know day more affordably. But that. At the monitor and if he's harder to keep it but that. When now when does the deal expect to close. It there's just 45 days. Period where Dorsey has except offer. Or look try to get offers from other bidders. It's extremely am like it is going to be in England. The takeover bid because of the unusual nature that ownership structure. After that period there'll be shareholder vote. Vote. So sitting in Tesla shareholders. And then the transaction will likely close sometime after September 3 and fourth scorer. And Mike will this lower the cost for solar city to borrow money. I care what could lower our first source city to our money and that would certainly be of benefit to them. It may make it more difficult for Tesla to two. Raise money though depending on what happened the stock after that are combined. Right right. And right now solar city has about what 32% of the US residential market. Yet it's it has a full of third of the market it's that it dominant in the and not just 32% but you know nobody even has. No one else that they compete against relieved and it is can be mentioned in the same breath with them in terms. There scope. Marie Marie RE or Mike thanks for your researcher appreciate your time. Mike Ramsey Wall Street Journal and Betty you know if you look at the just thought let's spend a moment outsource that he. 32%. Of the US residential market is source city. The next ones are vibrant. With 9%. Yet and sun run with 7% I mean so there's nobody even close. That the big problem that you still have and is this is always been sort of these problems look you have a third of the market. You are installing these panels as quickly as anyone possibly can you did in the last year. About 400 million dollars in revenue and can you get the scale big enough to be profitable is to this point they have not been profitable and the question is. Can you scale quickly enough to go back 2012 to labor intensive business then it's it's it's not something exactly it's not something that scales easily because you need to bring in labor he need to train them. You need to hope he don't losing to a competitor at some point need hope they don't go off and start their own company I mean there's. Did you know the marketing expenses are so high one or is he spent forty grand on the solar panel system that means somebody is the cost of getting news Klein is thirteen grant cost of acquisition is so steep had no idea. That's it it is a major. Major issue for the new look at there they're selling expenses that are associated with it. They spent 687. Million dollars on selling expenses for their products so imagine if this becomes more of a main line. Product where people or you know just automatically using it or if new homes being constructed. Automatically had like they have an Israel. If you want to build a new house in Israel better and include solar has yet I don't like that. You don't like that note why we don't have any way to deal with it properly and you know the the if he did talk about how the batteries. Rate the integration of the batteries which makes a lot of sense because. You think about. The year the the the big problem is the utility companies are now coming back to consumers and saying hey. We can't afford to buy this power back from yet full price and then sell it back to the same prices your neighbor at night they want a better deal utility companies. I agree with the utility companies and the so I think people in again everyone says oh I wanna get off the grid I wanna do this. Be careful what you wish for. Grid power look it can be expensive sometimes you can say the utilities are ripping me off this and that. But there is nothing that is as consistent and that is as. Remotely as high quality as grid power you can you go off on your own and all of a sudden you start having problems. You're you're you're on Euro year on year old and especially in today's world where would you go on your own and and try to run your own business from home and you're running an Internet based business this and that. All of a sudden if you can't get on the Internet. You're out of luck you're not you know and a good place them so. Would just think about the economy of scale. Right immunity that is use we talk about scale business like Amazon's and the scale business McDonald's in the scale business. I don't know that there is any bigger scale business in the utility business. Know it in and you know everyone likes to bash utilities because all it takes two days for them to restore power after that and everything and and look I get that it can be frustrating sometimes. But imagine if now lake let's say let's say you're on your own you disconnect from the grid. Tree falls under house shall panels on what what do you do I mean you think it's gonna take it two days to get that back up and running. You take get heck of a lot more time. Well and and woody and even if you wanted to get back on the grid how long does it take them to bright plug you back in right exactly and there's a lot of problems of that. The Dow is down 95 points the S&P is down fifteen oil prices. Are trading up just a little bit we've got to oil trading at forty dollars and 51 cents and gold is up thirteen dollars and households smokes. Thirteen 73 and ounce for gold. Will be back with a trivia question from our insurer match dot com student. You gun barrier and stronger financial exchange on the plane and she'll exchange radio network. If you're looking for a great deal on a new counter program you should check out the zoom rewards program that leader bank is now offering it's and checking account along with the companion savings account and as long as you qualify you'll receive three Democrats first you get a savings rate of two point 05% annual percentage yield up to your first fifty K all of your ATM fees from you and other banks will be reimbursed and you'll get 1% cash back by using your debit card on visa credit purchases just sign up for the statement with the account direct deposit at least 1000 dollars per month and do a debit transactions per month. Cult leader bank right now at 8776917900. To learn more about the zoom rewards program that's 8776917908776917900. Member FDIC equal housing lender zero point 20% annual percentage yield earned on portion of daily balance greater than 50000 dollars those who do not qualify presume rewards will learn zero point 10% annual percentage yield on savings now a member FDIC. Hi everybody very are strong here from the financial exchange and I'm joined by Jake tool who's a senior vice president. At leader bank. SBA loans. Boy they've been around for awhile but not everybody takes advantage of them and very few people know how they work. Thanks very yes we we to a lot of small business lending its leader bank. Where preferred SBA lender which really means we can maker decisions in house you can quickly within a couple weeks. So we've been very active because a lot of small businesses have been growing in this economy so for example we have a special right now. Which is small business loans up to 50000 dollars rock bring a fixed rate of three point 99%. Fixed for four years and no closing cost. It's been a very popular product but more importantly we're really helping small businesses who need to grow and expand their business. There's a lot of uses for the small business loans and give you a couple of examples. We recently helped the restaurant in Cambridge that was doing so well they actually need to expand in the space next to work. We help them local law firm. Who need a line of credit to help expand its business sure we help today on local trucking company by a couple of new trucks because they're expanding it so there's a lot of different user is there's there's really no limitations on and is longs for a good corporate use but it's 50000 dollars you pay it back over four years he's an interest rate is three point 99%. Exactly. With no closing cost with a pretty attractive program and it's our way to canning work with the local community and build small business relationships. Very good folks that's actually from liter bag if you wanna learn more about SBA loans call them toll free 8776917900. Three point 99% to pay it back over four years. 8776917900. Porphyry. 8776917900. Or check them out online at leader bank dot com. Each week on the legal exchange amongst updates on how to reduce your state Texas how to avoid probate and how to keep your assets in your bloodline that's great but what about the Stanley behind your state plan weapons your money if you get sick and going to a nursing home. Mean answer is that we spend down in a hurry in to the tune of 151000 dollars per month than 180000. Dollars per year hello when your money last if you went into nursing home. When your spouse have enough to live on if you did nothing to protect your assets the Medicaid rules change almost every year and the elder law experts at Cushing Dolan have updated all of the pertinent facts and figures in their toll sixteen Medicaid guide call now for your free copy at 8668485699. You can also download it by logging onto our website and legal exchange showed dot com Cushing Dolan have been hoping for at least protect their assets were more than thirty years let them help your family. 8668485699. That's 8668485699. Or visit legal exchange showed dot com. Your financial strategy has to include a thoughtful insurance plan insurance exists to protect your assets and our friends that the insurer -- agency can prepare a personalized plan to get to the best coverage at the best price call insure a match at 84499. Match 54 for 99 match many of our listeners own hole and one or two cars if that describes you you're the perfect candidate for free consultation to make sure your property and family are safe and properly covered will also dig out all the discounts preferred customers like you can qualify for call -- match to compare multiple rates and carriers at 84499. Match that 84499. Match insurer match works at the leading carriers in the industry like Art Bell Plymouth rock and more their license for all types of insurance and they can save -- time stress and money with just one phone call -- one relationship call today 84499. Match or go online at insure a match dot com. Get your thoughts and questions seem instantly tanks the financial exchange had 6868. This is the financial exchange on the financial exchange radio network. Trivia is. Is brought to you by Arnold's lobster and clam bar located on the 36 in east hand. Arnold has a great rob Barr including Wellfleet oysters lobster rolls right clamps terrific I knew rooms and more. Call 5082552575. Or visit them online at Arnold's restaurant dot com. Here's your trivia question. What was the title. Of the opening theme song for all in the family that's the TV show back in the 768680. Is the Texan at the one of Archie Bunker. And if you know the answer just Texas we're looking for the answer to this question. What was the title. Of the opening theme song for all in the family. Our text number is 68681. Listener with the correct answer. Wins a fifty dollar gift certificate certificate to Arnold's lobster and clam bar. Ari chuck I I needed to do some research. Because I could tell that Tucker was quite concerned. About vote. You know with what the status was with the television series scheme of the rooms. Yeah and it now tell you I actually I started watching a couple months ago final collegiate I did that did you go back to seasonal under had to go get it back he's one I'm still not through everything so please anyone texting and no spoilers otherwise I'll we will block you from taxes we can do that. But yet they have decided. The producer of the show that into two more seasons to do more but they're going to be abbreviated seasons as well they've previously done not seasons. Of six and Arab rather ten episodes her season they're going to be doing the last two seasons of only seven. In six episodes total of thirteen episodes total same length. That shows the stove and there's not now done our about now along yeah so what is it all about what's the reach that stalkers union you'd like you seem to be just a bunch of medieval stuff and people fighting and are. It's just that isn't it it's access certain everybody dies yes there's a threat to and that's when nobody likes these everybody I don't I don't care effort Jack forty thanks so far. It's good how many times are falsely. Only once yes. Curb Your Enthusiasm is also coming back to HBO ever I don't know a lot of people excited about that ninth season vinyl got the ax. I've never watched you Tucker. I did not watch it because they heard so many mix things about it now imagining him water yeah and HBO I think he's kind of in this via the they're looking for their next big show I think is you look at how they've gone through that there really the last 1520 years since they moved into original programming. If they had the first two they had that really were top not at The Sopranos which is probably the most popular resentment twenty years ago fifteen pounds when that stunning 9798. And let me look it up yeah that's on the current soprano is right in that range they also have the wire which was in the same ballpark that might have been a little bit later was that did that make Rome V dated Rome you know that I did it -- David Roman and really game throws came along. You know six years ago now back in 2000 I think eleven was the first season. And came along and really that's carried the torch for them over the last six years so they're looking for that next big show to be. The next big hit at this point and they pretty much decided at the vinyl was it again. By the way I tried Amazon prime video. What's think stinks is not a not a lot of selection stinks always not good would you watch. Buffett before since I was on a plane and the only video you can get was Amazon prime right there's an honest and on it was not good. Well you gonna try to show IIII try. I tried as I've I've only watched one movie. Report showed it to try. News just like I thought couples needed depth picture and it and bad experiences. And out there you know everything's on likeness in as island major stockholders and telling the video streamers and impressed. Your financial strategy has to include a thoughtful insurance plan insurance exists to protect your assets and our friends at the insurer match agency can prepare. It personalized plan that gets you the best coverage of the best price. Call insure a match at 84499. Match that's 844199. Match. Many of our customers all the home and what are two cars in that describes you here's the perfect candidate. For free consultation to make sure that your property in your family are safe and properly covered. Will also dig out all the discounts preferred customers like you can qualify for. In short match college term match today. To compare multiple rates and carriers and 8449. 499 match insure a match works with the leading carriers in the industry like our bella. Plymouth rock and more their license for all types of insurance in the NC time stress and money with just one phone call in one relationship. Call today 84499. Match or go online and insure a match dot com. Out of retirement age. But remaining in the workforce study after study. Demonstrates John that people in their late sixties and seventies are continuing to work my parents both are why. That's the and not talking specifically about your folks that. It seems to me. That the reason. And correct me if I'm wrong. But my senses that the reason Americans are continuing to work past the age of 65 past the age of 75. Is because pensions for in the private sector have largely dissipated in gone away and I think people just haven't saved money in their role in case I think that. Definitely one of the reasons I don't know how much of the increase that makes up but I can tell you in the case of both my parents as well as a lot of people. That a you know see out there that are in that same age range. I think a lot of them simply want to be doing something at least they're not working you just activity and your folksy they're they don't need to work but the enjoy it now have a good time in the case my parents they both scaled back. The amount of work they do they're not do wing. The type of hours they were 567 when they don't like 2030 hours a week they're they're probably in that ballpark now. On any you know for the last month they're both self employed so for the last month they were traveling around New England but is cut off world that you're study shows that a lot of these people let their 75 years old and still working full time. Yeah I think you in some cases you do see that there are people who were doing it purely for financial reasons but I'll tell you. And guys out there all the time you know like an a one sales guy for a major fortune 500 company he 74 years old he says look I love getting out of bed and do this every morning I love to go and make my sales calls now and you know it's something that he likes him we could retired. Two years ago few plenty of money you do what anybody says look I love what I do my company appreciates me in and I like going to work. We're not making this stuff up in May of 2012. Point 8%. Of people over older than 65 held the job. In May the number had increased substantially to eighteen point eight so in sixteen years chuck you went from 12%. Of 65 plus were up to eighteen point 8% that's a big number. And it's projected to lock in to the increasing little bit over the next several years as well. You are actually two amazing right now adults 65 to 69 are more likely to be working the teenagers at this point. Think about it makes a sad when and where you have your first job. I sold sold on the golf course nine. Officially if they stay in nine years old wasting my mom would take me up with a colorful Coke which carry a lottery at a time. No it every would they would walk by the guys who brought pride to you wanna buy so okay. Though is talented and showcases that this wasn't you weren't employed by the gulf. Course although I don't self I was an entrepreneur who were not an entrepreneur from the very I an idea that I started hard drive place you wanna make a lot of money off. Hard drive place that's tough jobs to rotten job you do it on a hot today but believe me ultimately get a lot of sung to him. Those kind of jobs I had yeah I had the jobs that nobody else wanted to do you ever see it shows that dirty job jobs and yet I had a ball. Who noted that it dirty job that I didn't have at some point yeah. Pay up next we're be talking about Bloomberg and DT. And DD may not know would DD is new should spend a minute explaining would DD news it is everybody knows that Newbury is whoever is a of course a and they consider themselves to be. Technology transportation company. Yep and indeed he is pretty much the same it's just stay it's a Chinese company that is taken on the same business model is Hoover using very similar technology simply operating in China at this point in pretty much has effectively put Hoover out of business in China to talk about that because Hoover is still walking in the equity. It's and it's a big story Susan Li from CNBC will join us next from our insurer match dot com studios. We're giving you the business. They have financial exchange with Barry Armstrong and chuck signed off on the financial exchange radio network each week from a legal exchange amongst updates you on how to reduce your state Texas federal avoid probate and how to keep your assets in your blood line. That's great but what about the family behind your state plan weapons your money if you get sick and going to a nursing home. The answer is that we spend down enough hurry in to the tune of 151000 dollars per month and 180000. Dollars per year hello when your money last if you went into nursing home. When your spouse have enough to live on if you do nothing to protect your assets the Medicaid rules change almost every year and the elder law experts at Cushing in Dolan have updated all of the pertinent facts and figures in their toll sixteen Medicaid guide call now for your free company at 8668485699. You can also download it by logging onto our website at legal exchange showed dot com Cushing Dolan have been helping families protect their assets were more than thirty years let them help your family. 8668485699. That's 8668485699. Or visit legal exchange showed dot com. For you movie fans out there Eddie Murphy indeed enact right made millions trading commodities during their famous partnership in trading places with the right information and guidance due to may find success in investing in certain types of commodities hi this is very Armstrong and whether your portfolio includes commodities or not you need to call me right now at 803934001. -- get my free guide on investing in commodities learn about the many benefits that may exist by investing in products such as oil gas or goal when you call ask about our free review of your current portfolio call today 803934001. That's 803934001. Securities offered through securities America incorporated member can SN BC and advisory services offered for securities American companies incorporated Armstrong advisory group in the securities America companies are not affiliated investing in commodities is often through futures trading with the risk of loss and these contracts can be substantial you when your advisor should carefully consider whether such trading suitable for your financial situation. Your financial strategy has to include a thoughtful insurance plan insurance exists to protect your assets. Our friends at the insure a match agency can prepare personalized plan that gets you the best coverage of the best price call insure a match at 84499. Match -- state for 499. Match many of our listeners don't know home and one or two cars that that describes zero you're the perfect candidate for free consultation to make sure your property and family are safe and properly covered who also dig out all the discounts preferred customers like you can qualify for call insure a match to compare multiple rates in carriers and 844 and 99 match let's 8449. B nine match insure a match works with the leading carriers in the industry like our bella Plymouth rock and more. Their license for all types of insurance and continued time stress the money with just one phone call and one relationship. Call today 84499. Match or go online and ensure a match dot com. It's not too late to get a great raid on a whole mortgage leader bank specializes in a wide variety of purchases and refinance loans at some of the most competitive rates in New England a dedicated loan officer will work with you every step of the way and their local decision making means a faster closing call 8776917. To 900 that's 8776917900. Workers at leader bank dot com. Member FDIC equal housing lender an MLS number 449250. Subject credit approval leader bank a step ahead. Your dream home is within reach with a Jumbo mortgage loan from leader bank their jumble loan program designed for financing in excess of 500000 dollars offers fixed or variable rates for both purchases in refinances all originations are managed by your bank's local underwriting processing teams for additional information call 8776917900. That's 8776917900. Or visit leader bank dot com. Minarets the icy equal housing lender and Ellis number 449250. Subject to credit approval leader bank a step ahead. Security securities America income member in PC. Or operatives securities America buys are represented on our advisory group and security American companies that. Barrington and shut. Alex. This is the financial exchange radio network. This segment of the financial exchanges brought to invite you rent. If you're landlords take advantage of easier renting fully automatic online rent collection tool. That is free from landlords and tenants sign up and have rent checks deposited directly into your account call 877. 6917900. For more information or visit Z rent dot net. The answer to a trivia question is of course chuck those were the days. Winner on that question is Kirk from Brewster Kurt take no one of our fifty dollar gift certificates to Arnold's lobster and clam bar located on US route six in east ham Massachusetts. Arnold has a great raw bar including Wellfleet oysters lobster rolls fried clams terrific onion rings and more call 50 wait. 2552575. Or visit them online at orange restaurant dot com. I was surprised by the announcement that number was basically going to exit China and that's not entirely. The the whole story we're joined by Susan Li from CNBC prices and welcome to the show. Hi guys thanks for having me. So witness what's going on here because. Hooper is shutting down operations in China. But it sounds like they are gonna have a significant ownership stake in DD which is the comparable company. What are you try it we're having difficulty that connection there but today and see if we can. Clean that up and enhances and back because it did catch you by surprise struck my understanding was. That they were doing a lot of business in China that that was a growth market. And there's so much trade between the two countries that Iranian American business owners. That we're traveling back and forth that wanted to use Hoover in China. Think the big thing in what I think you'll find is that the because I'd DD. Is a Chinese company they were simply able to get backing and financing that allowed them to operate much more cheaply. Effectively. Being subsidized by the Chinese Government to operate at a loss and put other competitors out of business. We have Susan back though we do it seasonally from CA hi Susan thanks for coming so why why is. Why is uber pulled the plug on their Chinese operations why are they hanging in there because they're. It's it's it's strange to see them throughout the white flag. Yeah but yet they conceded it was kind of surprising yesterday I think the main talent and it's you know we're discussing this now are yesterday. Was the fact that we have rule changes in China last week ago yet they've legalized right hailing and China. But they offered stipulated that in part to be a legal entity you can't subsidize each and every pride and that's kind of what DD. And Cooper was doing and that also bodily give the advantage the bigger player. In China and a bigger player now is speedy because you have already bigger market share in you have more customers than and that little guy can get pushed out went. It because tactic can teach me to gain market share that at that makes sense of without a problem in the main catalyst catalyst surprising because in capital and making he's known as an aggressive operator. And he made China a a priority for elaborate package that is about six months ago that China with the number one global priority and they've been funneling billions of dollars into this market and you know either the story fifty years ago three years ago he walked into TDs Kostis. Any that it DB. You know black eyed by you who are buying CD because get some work on the market one basic common joint as. You couldn't repeat that backed every day that it implantable differently but that's what did you way to cope better. At TD edit the passport three years on in a different story. It sounds like the Genesis behind this merger if you will learn their surrender. Is the fact that they're not allowed Chinese law forbids an American company from going into China. And losing money. Not an American company and we should stipulate it just that these are national ruled that he. Yes and as impact the entire industry. I'll be darned so. Is now how much of DD will never end up owning when this is all said and done. The 20% from stick around Africa that the entity is cooked to 1% so let's be specific it's public policy at 17%. But in Britain now becomes the largest shareholder. In DT which interest me because DD actually own. Eight they can't lift. Which is the main you have competitor to Hoover that you wonder how that's gonna work and the future. How does that complicate the relationship because. The the whole idea was you know used DD when you're in China and then yeah flyer over the California he jumped analyst car. Right exactly I think that that those specific event that still I think this the work yet to be killed. Of this deal but I keep him let me focus was partnering up in China you know electable if not both be spending so much money burning up so much to. Ash he tried it a dual each other planet aid can obvious but Cooper has now you know and conceded that they have lost the advantage. If there ever was gone for them in the market. But you know I want to make the comparison to an average act to investing in a small company called Alli Bob should back it even happened yet but Spectra how well we get that one billion dollar estate tourniquet forty billion dollars. In 2000 at sixteen to maybe they had back to the partnership appealed lucrative for over in the future as well. Well you look at that name you think about apple making that investment in deep into that had to be what sixty days ago. Yeah that just about a billion dollars part of the F a tremendous month of a I'm craving for a geeky can they raise a seven point four billion dollars which is just astronomical. And a billion of that came from apple. They open at 10%. And Alibaba and investors has Paula buy it either speak Chinese. Name of that investment in India and Beatty back eat out a lot and that's talking yesterday in all circles back to the same theme which is. You know how is an American or an international. Internet based company how do you crack the Chinese ball. I think that abilities be prevented it seems like to replicate it doesn't seem to be able to be done. Well injuries at that point because the Chinese want access to our markets right they want revealed that she could sell their manufactured goods in our markets. But then we go over there and try to do business and they make it pretty tough. Yep but then if you think about how made Chinese Internet companies have been able to crack the US market. Now I can't really name one I think it's not a wake up call for someone like Mark Zuckerberg sitting in Silicon Valley is made numerous trips. China isn't that China light to enter that market still wouldn't eat baked in the day after because you know you know China the tough market and are ready if they cut. In the former we chat widget company and bank in China though doesn't make sense to China and China market year to Zuckerberg. Now especially with the government controls there you know it's a very dangerous place to go you lose a lot of money I wonder if Hoover ends up and what I'm making or losing money. On their Chinese investment anyway to tell. Well right now given that to be you know they've invested their their basic operating you know the monopoly player in China. I would assume in the future at that if you're allied as an aside each and every bride. And giving money to writers or the driver I mean they will be making money pretty. Our. Susan thank you very much for your time we appreciate it. That Susan Li CNBC. And it's fascinating. To to watch the evolution of Hoover and mean. He in in in twenty years. Who burst going to be a household name in and have. Tremendous penetration are counseled and do you think it is it is it is it that like I don't know if my parents don't use a dear folks use it. My parents used it for the first time over the weekend actually but it's would you mind my grandfather is 96 years old he uses he doesn't use it but he knows about it you know that's out like. Everyone knows about. Actually introduced it at to a on Father's Day here's amazed by daily life and he's brought gonna use it next time ago as the Boston but I just it's an easier way especially. And he just seems like it's it's got a bright future. I'm looking at the market it does not appear to have a bright future and looking at the doubt truck I've got it down 118 points the S and he's down seventeen. Nasdaq's down 55 in crude hanging in at forty dollars and 51 cents gold retain their gains of thirteen dollars announces thirteen 73. Shucks not a talker Silva and very Armstrong signing off. From our insurer match dot com studio.