Jan 9, 2013|
The First Look - Michael Regan, Bloomberg
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Welcome back into the financial exchange -- not filling in for Mary Armstrong along side. June ninth and we are joined now by Michael Regan from Bloomberg News and Michael how are you this morning. How we're doing well here and let's get right into -- I know the big news from yesterday the start of earnings season with Alcoa kicking off after the closing bell. How did their earnings look for the fourth quarter and in particular what kind of guidance that they give going forward as well. -- earnings were pretty much in line adjusted earnings of about six cents a share matched the average forecast we had analysts. -- sales were better than expected about five point nine billion vs the consensus estimate of about five point six billions so. That that was the big gap -- surprise that illustrates what you know a lot people really look at it alcove whereas he said there's the first Al terms that your average company says reports that -- east. Sort of you know. Highly anticipated just of that that we are also electrocuted. Cup he needs basically that that macroeconomic trends around the world war and yes some of the comments they made her were pretty positive that regard and expect. You know aluminum demand to grow about 7% in 2000 that are seen as China you know sort of be bounced -- it's. You know slower growth. They expect the US commercial building construction. Markets expand that the first target for years. I chief executive close on felt so you know. What was the pop the fundamentals are pretty positive. And now we'll actually -- to read them -- -- crisis so problem from a macro stamp you know that the market's liking. He's he's earning season and comments from the management. And so looking at the other companies that are going to be reporting earnings later on this week. What companies do you really look for as bellwethers in this economy to really judge how the earnings season as a whole is going to play out. Well whatever when you know really gears up for Alcoa's earnings and and that's -- kind of a slow trickle but after that and so. It's not for another week or two that -- really get in the heart of things. Get a big names coming up this week will be oil Wells Fargo on Friday is -- the biggest name the this week. Next week is when it really starts with a couple of that level with our -- on the fifteenth. You know that the homebuilders that'll be you know it's to gauge the homebuilding industry and then that it really does the big -- next week will be on the sixteenth. A week from today. That's what JPMorgan and Goldman Sachs bank you're. And US Bancorp on reporter. And the banks in this earnings season are really the the banks in the you know debate investment banks diversified financial companies are really. Expected to be the stand out in the the earning seasons this quarter. -- -- president you know that the Federal Reserve's push to really keep interest rates low has has caused. The expletive of refinancing which is. At least temporarily you know company's bank earnings. In the short term so. Will be on the sixteenth that that's really going to be that beat. Key date earnings season. So far. Again we JPMorgan Goldman and back in new York and US Bancorp -- one day so. I think you know I think that'll beat him. The biggest Testaverde will see in the in the near term. Absolutely now taking a quick look at some news that came out yesterday Boeing. Is having what appears to be all kinds of problems with the new electrical systems on their brand new 787. Dreamliner they've had multiple issues a couple just in one day yesterday. Is this a cause for concern at this point first for the company and second for flyers. Well as far as the the stock -- I mean you know it's down almost 5% in two days so it's -- market weakness producer's -- This is a new problem that that appears to be at least unrelated to that the other problems that are on this plane that was. -- via fire broke out after one of the fuel valves was left open. And it's not clear there was some sort operators all worse that's it's a flaw in the design in the player like that and other that is really Camellia so. You know it's yet to be seen -- beat. Of the problems that specific incident ones but. He has said it's certainly adding to which string of incidents throughout the development of this plane that is really you know deleted and cause a lot of people concerned you know that it'll surprise scratch their heads -- the problem that we talk he said well it's. Where perception problem he believes that this this plane is safer than it is 767. And -- you know one of bullets in the air lines is temporary seat plane with. The perception is is really the problem going now as you know -- Gets off the ground it's fine but is all at -- still on the ground there could be some issues as they start getting these things sorted out. Right right and the promise I mean this this is -- revolutionary plane I mean it's it's not. A minor upgrade from her earlier models I mean -- they've really read this invasion been redesigned the plane you know as mr. nine -- from the from the ground up so. -- these analysts noted that this is an instinct and try to figure out what's going on December -- so much are -- on it I mean. You know. An older plane could. How are like that you know I would never make the news as long -- known was -- -- and you know there's there's going to be a problem with it but. You know obviously any little witch and the screen is going to be scrutinized very closely so it's. You know its first cup because I mean there still are you know you're up to produce about you know that -- backlog of about 800 planes so. They're they're -- in the double production of the seventy sevens this year that to help meet the demands so. That the demand is there and you know I think each one of these little problems to be scrutinized further but so far you know it. You know the the FAA is looking into the -- or are these people you know -- what what the plane flies at stake but there's there's a major problems and so far. You know it has come to bat but you know -- see the market is you know a little cautious about the stock. Now -- as you mentioned they did come. About as close to reinventing airplane on this one as you can you can really do in this day and -- so certainly. A a revolutionary aircraft that you would expect would have some issues that need to get sorted out over the first couple years of operations but. Turning brown wrote to to look at the tech sector. We're hearing rumblings out this morning that apple is trying to put out. A -- cheaper iPhone and so it will what exactly -- your thoughts on this and and whether or not it's a good thing for apple actually. -- to a paternity Apple's product conceded that lower priced so markets to its competitors and Samsung and Nokia so. And especially in the you know overseas and some of the developing markets you know they're they're really don't have the -- -- were partners are so. -- sun and some of the other competitors have really been able to gain a huge amount of work chair in those markets. And so Apple's really you know trying to turn it -- that eating. You know he's developed markets and what are look at doing his at least if the report Bloomberg had -- earlier person's -- -- situations said. They're they're planning a struggled this would be about 99 dollars 249 dollars should be. Debuting later this year at your earliest. And you know at that price. Org movement that'll be you'd be you know profit tried -- -- the the -- crap out of the margins. The profit margins are likely to be on the web site compared. Got so I had which has. Really good margins. So I I think what Apple's really do is just trying to you know. Stop the -- Mark Richards lost developing markets and really you know get people buying iphones there. Note if they like this you know like -- is being able ball -- to the better models actually in the and you know pop -- keep those profits up but apple. Yeah I guess is just the thought is get them into the ecosystem and hope that they can either upgrade. Or just by a ton of apps -- they can get some of the royalties from those apps on the phone. Read so much every Prius -- Thought tactically can sell -- that's that's got to do so Michael appreciate you coming out this this morning and thank you again for the inside. -- all right that was Michael Regan. From Bloomberg News coming up we are going to be joined by Jim Glassman. From -- are talking about how you can orient your portfolio. To produce income in this environment that's next right here on the financial exchange.