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December 04

Welcome to the new CNBC!!!

Welcome to the new CNBC.com, Blogospherians!  You'll really love all the new features and everything it has to offer. Let me know what you think.. nothing is set in stone and we can tweak if it's something we think needs altering, so read away...and BLOG AWAY!!  Btw, I'll be doing a streaming news update every single day at 1pm ET (woo hoo!) and today, I've got an interview with Terry McGraw of McGraw Hill.  Take good care, and get ready for a rockin' holiday season!
--Liz
November 02

Liz and Warren Buffett on "On the Money"

We got huge amounts of email about my exclusive "Day With Warren Buffett."  Just to let you know, we're working on what I know will be a spectacular hour-long special about the 2nd richest man on the planet and his unconventional and totally unique way of doing business.  It'll air sometime this month, I'll keep you posted, but for now, we've posted a clip from "On the Money."  See below, and click the photo of Warren. Stay tuned for the hour-long special!!

Talking about Exclusive: A day with Warren Buffett

 

Quote

Exclusive: A day with Warren Buffett

Oct. 25: The Oracle of Omaha lets "On the Money" tour his private offices and discusses taxes, investing, ethics and more. "On the Money's" Liz Claman reports.

November 01

LIVE FROM THE NEW YORK STOCK EXCHANGE

Blogospherians!
Michelle, Mark and I were live from the floor of the NYSE yesterday for Morning Call.  Our focus: From Wall Street to Main Street: Your Money, Your Vote.
A good time was had by all! Enjoy the new photos!
 
October 11

Blog-o-spherians (or whatever you are), Listen Up!!!!

Okay gang, Now I *really* need your help.  I have been informed by THE POWERS THAT BE at CNBC.com that while they think TheMorningBlog is terrific and that you guys are terrific, they did want me to know (lower voice here:) that 'people who read blogs, Liz, really *aren't* called Bloggers, like you've been calling them."
 
Oh yeah, I got the harsh word from CNBC.com Executive Producer Alex Crippen that *I'M* the blogger, not you guys. So when I write, "Hey Bloggers!"  I'm totally uncool and wrong.
 
But then we both decided that there really isn't an official word for people who READ Blogs, so I NEED YOUR HELP!! Do you have any ideas of what I should call you?  Alex and I threw around "Blog-o-shperians", "Blogees" or "Bleagers" (Blog + Reader? I know, lame.)  But none of these sounds right.  Submit Submit Submit!!! If we like one, we'll start using it!
As always, Thank you, Blog-o-ponders. (Blog + Responder? I know. Totally LAME!)
 
xoxo
Liz (Ms. Blog)
October 10

SHOULD WE PAY FOR AIRLINE FUEL???

oooohhhhhh....Did I make some of you mad when I said to Phil LeBeau  this morning that I understood why airlines wouldn't be dropping their fuel surcharges they had tacked onto plane tickets over the past 9 months to a year now?
Or do we all agree that jet fuel still hasn't come down to levels that would enable the airlines to clip those surcharges off?
With distillates (which include jet fuel) still at levels that crimp profits, the airlines say they won't be changing a thing. In fact, some airline watchers think the carries have finally figured out how to cut down on capacity, fill their planes, trim costs and turn their sector into a viable business!
 
What do *you* think, Bloggers? Should airlines get rid of their fuel surcharges? More importantly, tell me why. And "because I want a cheaper ticket to Cleveland" doesn't count!
 
Take care, Bloggers. Enjoy the start of Fall.
--Liz 
October 09

THE DAUGHTER OF A VEGAS SHOWGIRL AND MORE THAT YOU DIDN'T KNOW ABOUT HP!

Good morning, Bloggers, Happy Columbus Day! I'm such an idiot, totally thought we were off today so I made no childcare plans, thought I'd have a great day with the kids until...... Haines flatly told me live on the air Friday that "Liz, we ARE working Monday."  Oops.  No worries. Being the master of quick change with a little MacGyver tossed in, I managed to get here today ready to blog and broadcast for you guys. 
 
Everyone's talking about Carly Fiorina's "60 Minutes" interview.  Some of the guys on Squawk Box called her smug. I'm just wondering whether "smug" from a woman would be seen as "confidence" from a man. Seriously, I'm not one of these people who says, "You're just giving her a hard time for being a woman" but I've watched with amusement how she was eviscerated by so many----and for what? For taking on the gutsy acquisition of Compaq?   Which, today, sure looks like a smart move for HP?  I'm hardly the only one who's said this. Alan Murray of the Wall Street Journal has been writing about it for months.  
 
As for ousted Chairman Patricia Dunn, there's a great front page article in the Journal this morning about the drama and trauma that went on between her and board member Tom Perkins.  You can just imagine how much tension there was between them.  I mean, here's a guy who was an original HP employee, a true genius who made billions by thinking outside the box, really being a VISIONARY.  And he had to go up against Patricia Dunn, a classic "by the book" type of corporate operator who, according to the WSJ, was never the "original thinker" type and always reprimanded board members for "not following procedure."  I cringe when I hear that.  It's another word for "bureaucratic" thinking.  Talk about oil and water.  But you learn some very interesting things about Dunn in the article that you might not have known before...like, her mother was a VEGAS SHOWGIRL.  She endured a grueling 3-bus commute just to get to college everyday on scholarship.   And Perkins? I'd love to meet him and just hear him spew.  Sounds like quite a character.
 
One thing's for sure.  HP was, and to some extent still is, a company in turmoil.  Such a soap opera for us outsiders, but a nightmare for the insiders.
We'll follow it all for you!
Blog later,
Liz
September 22

PICKS, PANS, AND OTHER POT SHOTS!!!

Hi Bloggers,
Hope you had a great week. I'm still on the set but it's a commercial break so I can put Morningstar's Pick and Pan of the week by Christine Benz on.  See below.
What a crazy week! HP with its nightmarish boardroom leak investigation ("Fast Money" called the HP Board 'The gang that couldn't leak straight') and Cablevision's latest revellation that it awarded stock options to a DEAD GUY. Oy.
Anyway, hope you have a lovely weekend with a rest from all this wackiness. But I suppose it makes things, shall we say, 'interesting'???
Happy New Year, Bloggers!
Best,
Lizzy
 

Pick: Clipper Fund CFIMX: This fund recently got a new management team, but I still like its prospects. Comanagers Chris Davis and Ken Feinberg are is an experienced pair of investors who have proven their skill by posting strong long-term track records at Davis NY Venture and Selected American. Their management company has agreed to a new management fee schedule that will significantly lower the fund's expense ratio. In addition to implementing breakpoints that decrease expenses as assets climb (something the previous contract didn't contain), the new team has also agreed to waive all management fees exceeding 0.50 percentage points for the first year. Further, Davis employees invested $50 million of their own money in the fund.

Pan: Delaware Large Cap Value DELDX: The crew running this fund worked together and built a strong separate account track record at Merrill Lynch before joining Delaware. That's promising for shareholders here. Yet, Delaware Value--managed using the exact same approach--is meaningfully cheaper than this fund. So although we're encouraged by the progress here, we see no reason for investors to pay up for this version.

 
 
September 13

What Would Buffett Buy?

Bloggers,
No doubt one of the most successful--if not THEE most successful!--investors of all time, Warren Buffett has his principles and his formula that he sticks to through thick and thin.
Jack Otter of Smart Money was on Morning Call this morning to talk about the magazine's latest article, "What Would Buffett Buy?"
Below are the 7 names, he says fit nicely into Buffett's formula.  Enjoy!
 
--Berkshire Hathaway
--HSBC
--UPS
--American Express
--Walmart
--Scott's Miracle Grow
--Mohawk Industries
 

SEVEN SESSIONS AND COUNTING!!!

 Hi Bloggers,
Can you believe? There I was, on the floor of the NYMEX back in August with oil close to 78 dollars a barrel and we were all wondering where the next way-station was. Would it be $80? $87? $100, like a Goldman Sachs analyst predicted half a year ago?
 
And here we are today with oil lower than $64 dollars a barrel, not a single hurricane to speak of, none of Iran's threats coming to fruition, or global demand ticking higher in an alarming way. 
Wholesale gasoline prices have downshifted with prices at the pump plunging to a six-month low.  What will the immediate effect of that be?  The Wall Street Journal says this morning that the money we *would* have spent on gas will now be spent by the consumer on goods and services, which in turn will help the economy stave off recession.
 
Here's my question to you, Bloggers.  If a hurricane does form over the Atlantic and if it heads toward the Gulf of Mexico, will oil prices jump *higher* now that oil has pulled back so much?  Or will they rise in a fashion commensurate with the seriousness (or lack thereof) of the storm and potential damage to energy interests in the Gulf?
Conversely, if we get milder than normal temperatures heading into Fall, will prices plummet quickly, or in an orderly fashion. 
This morning we get the EIA numbers on energy inventories. Let the games begin!
We'll have it all for you live on Morning Call. 
Let's rock and roll, Bloggers!
--Liz
September 01

SEARCHING FOR A SIX-FIGURE SALARY?

Hi Bloggers,
I know some of you missed our segment on online seach sites that specify in six-figure salary jobs, so here are the two names we profiled, along with a few others.  Some have requirements, most have fees, fyi.
Have a great holiday weekend, and just know how much I appreciate that you're watching.
Good luck!
--Liz
 
SIX-FIGURE ONLINE JOB SITES
------------------------------------------------
--Netshare.com
--Execunet.com
--TheLadders.com
--eFinancialCareers.com
--HundredKResume.com
August 28

Have Americans failed Detroit? Or has Detroit failed Americans?

Bloggers,
I get the sense a lot of you might want to weigh in on this one. Within minutes of just *mentioning* that we'd be doing a segment on this, we started getting pounded with email from viewers who wanted to voice their thoughts. Here's the deal: A guy named Steve Schiavi who's a newspaper columnist and Detroit native, recently wrote an op-ed piece in the Detroit Free Press about how he feels Americans have failed Detroit by NOT buying American cars.  (see article below)
Needless to say, when one of our segment producers read the article, she immediately pitched it as a debate for the show. We pitted him against George Passantino, Sr. Fellow of the Reason Foundation who believes that the beauty of America is "choice" and that Detroit automakers better read the choices Americans are making and fix their products accordingly.
Can I just tell you?...Within minutes of these guys appearing on air, we started getting email about the issue.
What do you think, Bloggers?  Is it all about freedom to choose the best product? Or are you "hurting" Americans when you don't support American products? I mentioned that the dollar vote is just that: Americans voting with their pocketbooks and right now, they're not voting domestic when it comes to autos.  George said he's not interested in dealing with the "sharp end of a guilt trip" and that Americans shouldn't be guiltified into buying a sub-standard product.
Have a great day, Bloggers.

AMERICANS FAILED DETROIT

By STEPHEN SCHIAVI

829 words

14 August 2006

Detroit Free Press <javascript:void(0)>

METRO FINAL

11A

English

(c) Copyright 2006, Detroit Free Press. All Rights Reserved.

It is a major city in the United States. During the 1960s, it led the nation in locally produced music from homegrown groups. It has always been the nation's first city for automobiles.

But now, Detroit's auto industry is gasping for oxygen. If it dies, so, too, does the United States.

After a recent visit to family in the Motor City, I am worried about what the loss of Ford, GM or Chrysler would mean to all of us who live elsewhere.

Talking to family and friends at a wedding reception was anything but happy. Many retired workers, convinced that further industrial debt could take a toll on their benefits and prevent them from living a normal life, were afraid.

This is not happening to the foreign automakers. It should not be happening to American auto companies. And as the American auto industry suffers continued losses, the consumer's faith in warranties and reliability fades.

There was a time when none of this occurred, a time when Americans bought only American, but obviously that was a time when other countries in the world didn't have the ability to out-produce the United States. In our quest to find cheap labor elsewhere, we have supported other countries becoming more productive, and that has advanced them economically. Therefore, we helped to implement the decline of our own economy.

The Detroit of long ago that I remember was a very different city, with different standards that reflected our American spirit. The best from our colleges were hired by the auto industry as engineers and scientists, designers and thinkers, and sundry others were hired and employed in their offices and on their factory floors associated with the building of automobiles. Steel, coal and other fuel industries, as well as rubber, glass, plastics and a variety of subsidiary manufacturers, all benefited from the building of cars.

As Detroit thrived, so, too, did America. Not anymore. As Detroit now suffers, so do we. Any industry associated with the manufacture, or lack thereof, of American cars and automobile equipment or accessories, will also suffer. And why, may I ask, did we allow this to happen? Was it because we, as Americans, don't care about each other anymore?

The people of Detroit have not failed us; we have failed Detroit. While I was visiting there, it was rare to find people driving foreign cars. Detroiters predominantly drive American-made cars and especially those made in their own state. Detroiters associated with the building of American cars also support workers in other American industries who support them. Not a bad concept. Do we do that for them elsewhere in this country?

Once, a long time ago, I bought a Honda. I drove it to Detroit, and I rightfully was harassed by those who lived and worked there. But I gave them the typical argument. The price of gasoline was too expensive, and if Detroit could build a competitive car I would buy it.

I listened to their arguments, heard their concerns, and when the time came to replace that Honda a few years later, I bought a Ford Taurus. I followed that with the purchase of my first truck, a Ford F-150, and have never regretted it, and still own it.

My youngest daughter has now been looking for her first automobile to purchase and was encouraged to look everywhere. She likes and wants, more than any other car, a Ford Fusion. Hopefully, she will soon own one. Her father is proud of her. Her family in Detroit is proud of her. She is on the right track, even if she doesn't fully understand why.

When we hear complaints about this country, about our failures, about what is wrong with the young people today, how they are inheriting a different world, a different agenda, how they are inheriting a failing society, we need to also ask ourselves why, and ask who created that failing society.

When we buy at the stores that only sell cheap goods made elsewhere, we have only ourselves to blame. When we buy from foreign sources, we have only ourselves to blame. We need each other's help. We need to listen to each other. We need to respond to each other's problems, no matter where we live in this country. If we do not, then we have only ourselves to blame.

STEPHEN SCHIAVI

is a 1969 graduate of the University of Detroit and a retired teacher who writes a weekly column for a newspaper in Utica, N.Y. Write to him in care of the Free Press Editorial Page, 600 W. Fort St., Detroit 48226 or oped@freepress.com.
 
 
August 24

20 Seconds of Sheer Poetry!

Hi Bloggers, 
   Everyone always wants to know what it's like "behind the scenes" at CNBC.. Today, Bloggers, I am going to open a tiny window, just for the fun of it, into our world at CNBC.  Every day at 8:20am ET, during Squawk Box, yours truly gets to do a 20 second tease. Now, Bloggers, I want you to look at your watch and see how long 20 seconds is. Talk for 20 seconds, out loud, about anything.  Not very long, right?!  Well, in those 20 seconds, I'm supposed to say something so exciting and brilliant about what's coming up on Morning Call that you'll cancel plans, call in sick, stop what you're doing just to make sure you DON'T MISS MORNING CALL!! 
Now, it's my responsibility to make this happen and make it happen successfully.  First thing I do in the morning is to consult with our producers about what the hottest, most interesting story is that we've got in the show. There are a lot of considerations here, not the least of which is what Squawk is doing right before I pop up on camera. This morning, we felt our big story could be Charlie Gasparino's scoop that CSFB might owe Frank Quattrone 120 million bucks if he's totally cleared of obstruction of justice charges.  Problem was, I looked into Squawk's rundown (the lineup of their stories) and saw that right before I'd be hitting air, they would have just done that same story. So we bagged that and went instead with the big economic data we'd be getting---New Home Sales and Natural Gas inventory numbers.  I argued that these days, economic data have (yes, 'data' *is* plural, Bloggers) truly moved markets, especially considering the state of the economy and global energy. 
I write the script, making sure to keep it around 20 seconds (or else the Squawk Producer will yell at me!), and at about 8:18am ET, Mack, one of our crew comes up to give me my wireless microphones (we use two just in case the batteries die on one of them) and IFB (my earpiece plugs into the IFB so I can hear Joe, Beck, Carl et al) and then, always making sure that I'm sitting up straight (or else my mom will call from LA to tell me my posture is bad), I wait 'til it's my turn. 
  I zip through it, then toss back to "the gang" with a big smile. Did I sell it? Did I convince you?  I try my best every day, Bloggers!
--Have a good one,
best,
Lizzy
p.s. "IFB" stands for "Interruptible FeedBack"
August 23

Hidden Gems..

Hi Bloggers,
Today we did a segment I pitched about a week ago.  All day long we had been talking about Dell and HP.. Dell was struggling, HP was about to come out with earnings, and I thought, "You know, sometimes we at CNBC get tunnel vision. We fall into the habit of only talking about certain, large cap stocks.  Well, at some point, those very names were small to mid-cap.  Shouldn't we be talking about the smaller names NOW, rather than AFTER they become big names?"  So we decided to do a "Hidden Gems" segment, profiling some names much-loved by smart stock pickers.
Today, Hal Goldstein, Manager of the First American Mid-Cap Growth Fund (FRSLX) was kind enough to indulge us.  He recommended three stocks--all tech oriented--that he loooooves right now.(see below)
So what do you think? Should we make this a weekly series? An opportunity to let you hear about some names that aren't always on the front page but that might be front-and-center when it comes to portfolio opportunities?
Let me hear from you.
HAve a great day!
--Liz
 
Hal Goldstein's picks 8/23/2006
 
--Amphenol (APH)
--American Tower Corp (AMT)
--MEMC Electronic Materials, Inc. (WFR)
August 16

Liz in the Oil Pits!

LIZ IN THE OIL PITS!!!
 
Bloggers, the pictures from the NYMEX are in the same album as the Chicago Merc photos. Just go past the first several and you'll see us one day later in New York, right on the floor of the NYMEX. It was a terrific experience, lots of energy (no pun intended), and the action really got going around 11:30am ET when natural gas prices started spiking. Do you like the shows live from the Merc floors? We'd like to continue doing them as warranted. Tell me what you think.
You know I appreciate you, Bloggers!
 
Best,
Liz
August 01

New Photos!!!

Bloggers, we finally got a new blog cam!
We were testing it out today (see pics at left). Look out for more photos of the team to come!
--Liz
July 31

Paulison and Paulson

Bloggers,
I'm very excited about Tuesday's show.  Right now it's late Monday, around 9:30pm.  I'm normally asleep by now as I have to wake up every day at 5:30am ET, but I've been preparing for my interview with David Paulison, head of the Federal Emergency Management Agency (FEMA).  We're in the heat of Hurricane Season and anything could happen between now and mid-September. I think we're all eager to hear how FEMA has changed since the disastrous events post-Katrina.  Paulison's an ex-firefighter, a no-nonsense guy with great experience in disaster relief, having run the Miami-Dade emergency management services during major hurricanes.
I hope you'll watch, and feel free to submit some questions you'd like him to answer. Can't promise I'll ask them but I can get a sense of what my smart bloggers are interested in hearing about.
...And don't miss Maria's interview during Morning Call with brand new Treasury Secretary Hank Paulson.  She'll be chatting with him live close to the top of the show.  We're trying very hard to bring you the most important newsmakers out there.
 
I love that you guys are watching. It means the world to me.
 
Have a great day and stay cool, Bloggers!
Liz
July 28

GDP Miss: Good or Bad for Us?

 Hi Bloggers,
Today, the markets have decided that bad news is good news. (This seems to change from day to day!)
Q2 GDP rose 2.5%, missing the 3.0% consensus.  There's a decline in spending on software, on equipment, while consumtion rose 2.5%, better than expected.
The markets love this number. They're swooning! As I write this, the Dow is up 127 points, Nasdaq up 28. Will it last the day? Who knows, but the euphoria is clearly driven by the belief that weakness will convince the Fed to stop raising rates. So my question is this, Bloggers: Is a weak GDP number (possibly indicating the start of an economic slowdown... or even recession) GOOD for us? Or BAD for us?
I'd like to hear your thoughts!
--Liz
p.s. Didn't Michelle and I look preppy today in our green and pink? I am expecting a blog cam soon, photos will follow!
July 24

Gold Bugs Getting Singed by Dollar's Light

Hi Bloggers,
I'm pretty sure the Gold Bugs are buzzing frantically on a day like today.
As I type this blog entry, gold is melting down to the tune of $16.70 per ounce, bringing the yellow metal to $603.50 a troy ounce.  Platinum's getting slammed, silver, too. And copper traded limit-down in Shanghai overnight..
   What's going on? Isn't gold the ultimate flight-to-quality investment? I know some *very* smart people who have made some huge gold bets, and you can bet they're "smarting" today.
  Well, perhaps they didn't count on what the dollar's doing today. The dollar is higher on belief that recent selling sparked by expectations the Fed could make a pause in its two-year cycle of rate rises is overdone. 
 Now: can you really call the dollar's upside move a "rally" right now? Perhaps not, but it's enough to yank investors away from the beauty of gold and into the greenback.  Will this move away from metals be sustained?
It's hard to believe, but the resistance level as recently as mid-July was around $675-$678, according to Richard Suttmeier, a frequent CNBC guest.  Looking at it today? The Gold Bugs might be flying for cover. 
But Morning Call guest George Gero of RBC Capital Management says fasten your seatbelt; this thing could "turnaround" and soar just as quickly as it fell.  The big question? WHERE'S GOLD GOING TO GO NEXT?
I'd love to know your thoughts, Bloggers!
 
--Hang in there,
Liz
July 20

Ben Bernanke's Excellent Adventure

Hi Bloggers,
Once again, Morning Call had to hand over the reins to the Fed Chief on Day Two of his testimony before Congress regarding monetary policy, the economy, inflation, etc.  Mark and I got to do our thing for about half an hour and then, right in the middle of my interview with David Wessel of the Wall Street Journal and Roben Farzad of BusinessWeek, my producer Chip yelled in my ear, "Okay! Toss to Washington, NOW!!"  I try not to look rude when I'm cutting people off but if we miss one word---maybe THEE word?--about interest rates, you all would be so angry with me.  So when I tossed to DC, that was the end of Mark and me for the next hour and forty-five.  We don't mind, though, because we get a pretty cool window into what Bernanke's thinking about the economy and where he thinks it's going. More importantly, *I* want to know when these rate hikes are gonna stop! I figure you do too.  Yesterday, all the market heard was "SOON!" and read it as "hey, maybe next month??"  And we know what happened next: mega rally. 
   What do *you* think, Bloggers? WHEN will these rate hikes stop?  My guess? Maybe 2 more and we're through.  For now.
Gimme *your* best guess!
--Liz
July 18

Getting Greased In The Oil Pits

Hi Bloggers,
We decided to do Morning Call live from the floor of the New York Mercantile Exchange today, considering oil has hit record prices over the last couple of trading sessions. We had done it once before, and we thought it would be appropriate to get back down there ASAP.  Jumping crude prices can aggravate you, you can yell and scream about how speculators are pushing oil higher, you can swear every time you fill your car up, but regardless, it's the free market at work and we want to be there to bring it to you.
 
So I arrived at our studios in Englewood Cliffs at 5am ET, read in, checked the wires, checked the overnight prices, printed my notes I had worked on last night (I study up on, and prepare for, every guest I interview on a daily basis and prepare notes) did a whirl in the hair and makeup chair where Dee and Spressa made me look a lot better than when I first rolled out of bed (!), and jumped in a towncar with Sr. Producer Rich Fisherman to head down to the NYMEX.
 
Our crew, which consisted of about 9 people including 4 photographers, 2 audio specialists, one director, one technical manager and a production assistant, was already there and had been since 3am.  For the "eagle-eye" point of view, we had three cameras set up on the 4th floor overlooking the 25,000 square foot trading floor below, and then my roving crew of LeRoy and Dave who would be following me around in the pits.
 
First person I saw once I got through security (which involved three separate stops and a metal detector) was Melissa Francis.  She is our energy reporter and was already putting her scripts together for her Squawk Box hits.  I quickly asked her what overnight prices had done (gone up) and what was expected when trading opened at 10am ET (up).  As usual, she was all over the story, ready with every detail. 
Then I met with NYMEX officials who were very helpful and actually appreciative that we were there. In the past, we used to ask every six months whether we could report live from the floor and the answer was always NO.  Then the administration changed over there,  they suddenly said YES.  So there we were, right in the middle of the fray.
 
At 9:30am, I headed down to the floor, toting my scripts and a powder compact (it gets sweaty down there!) and met up with the crew. The pre-market session had just ended and, I know this sounds strange, the air was vibrating. I watched traders talking about the Middle East and China's GDP number that had come out overnight, up a massive 13.4%.  Clearly, it would be a bullish open.  I started scoping out locations.  I knew NYMEX officials didn't want us disrupting trading but I figured, look, we're down there, we have to push the envelope!  I wanted to show viewers that "point of view" vision; help them feel what it's like to be on that crazy floor where billions of dollars in energy is traded every year.
 
I got the 30 second countdown to the top of the show and it was as if 10,000 people materialized within the next 10 seconds---and they were all squished around me.  I heard someone yell and the next thing I knew, the oil markets opened up more than 80 cents. The screams were deafening and I could hear Mark Haines in my earpiece saying, "Welcome to Morning Call, I'm Mark Haines, live from the New York Stock Exchange."  That was my cue to go-liz-talk-now. I said, "I'm Liz Claman from the New York Mercantile Exchange" and then I just took off. I started walking around, dragging LeRoy the photographer and Dave my audio guy with me, showing viewers the crude, gasoline and distillates pits. We were wireless so we could slam our way through the crowds. My ears were ringing, it was so loud down there.  I tried to tune out the hundreds of traders running and  shoving past us and around us and simply attempted to focus on explaining what I was seeing.  Throughout the next two hours, I interrupted traders, grabbed people in the middle of what they were doing (I'm sure some were annoyed, others said they loved it) and just tried to get a sense of why one minute crude was up $1.15, yet the next it was up only (only!) $.65 cents.  From the Middle East to China to refinery fires in Venuezuela, we tried to give viewers an idea of how black gold trades and why.  At one point, a trader yelled to me that it was "the middle east tensions!"  I went back to him 20 minutes later when the price pulled back and said, "Why's it moving lower now???"  He yelled, "Profit taking!!! No new news, it just hit a ceiling and people are taking profits!"  We had no less than 9 guests throughout the show, some of them with me on the floor, others in remote cities... all experts in different fields of energy.
 
Bloggers, we got some very complimentary emails to the show about our live effort, but some very nasty stuff too, saying, "Why is Liz down there? It's ridiculous."  Well, here's why:  We at CNBC feel that we should do our very best to open up the closed world--the secret garden of investing and trading--to every investor, rich or poor, and make it a level playing field. If it means blowing off the doors of a realm that no one ever sees, and we can do it, we will. Should I sit forever on the air-conditioned set with perfect conditions and quietly report the news day after day? Not if we're trying to take it to the next step and to inform people as best we can.  If it looks frenetic and frantic, that's because it *is.*  I'd rather "go to sea without a compass" and feel my way around for the viewers than never even try to go out to sea at all.   I'm fine with critics, but I'll always be glad my team and I are out there in the battle and "out to sea" every day, trying to bring the markets to YOU.  For that, I'm very proud.  What a great and gutsy team I work with.  Thank you so much for watching our work.
 
Have a great day!
--Liz
July 14

Maybe We Should Call It "Black Platinum"

                                                   
Why call it "Black Gold" anymore? Platinum is so much more expensive so I think oil, which has been jumping like a gymnast on too much caffeine, should be re-named "Black Platinum."
This morning, I interviewed Daniel Yergin of Cambridge Energy. He's our go-to guy for all things oil.  He said it doesn't matter that neither Israel nor Lebanon exports oil; the reason prices are jumping on the violence that started cropping up there on Wednesday is that people see it as a "proxy war" with Iran. Of course Iran exports quite a bit of oil.. and as one of the key members of OPEC, it can-- and has-- threatened to use oil as a weapon.
  Yergin tells me he sees $85 a barrel oil as the next price way-station. Clearly, oil continues to shine on.
Take care and have a safe weekend, Bloggers.
--Liz
July 13

From Malibu Back to Manhattan

Look, I can tell you, it's NEVER easy to come back from vacation. You know that. You've all experienced it, but this time I'm hurtin'!   I was gone for 10 days. We went back to my hometown of Los Angeles. 4th of July was spent in Malibu on Broad Beach, where the new hot water activity is called "Kite-ing."  It's a surfboard attached to a huge kite that, when wind conditions cooperate-- pulls you along the water and if you hit a wave just right, you soar close to 40 feet in the air.  I could have sworn I saw the papparazzi lurking on the beach toting long lenses and pointing at me in my bikini, but then I realized they were aiming at Jack Black, Senor Nacho Libre, as he frolicked in the waves.  Guess he looks better than me in a bathing suit! 
  Anyway,  here's my observation:  I *adore* New York---the pace, the excitement, the intellectual stimulation--but I find that Lost Angeles has equal amounts of cultural creativity and excitement, cutting-edge ideas, MINUS THE HUMIDITY AND STRESS.  And by the way, not once did anyone mention or ask about "the Fed."  It's really quite relaxing. Okay, enough of that, back to reality.  
 
Reality is that we've had two very tough days of trading. Is it global terrorism? We had those horrific bombings in India, now we've got Israel upping its offensive inside Lebanon, but on the financial side, some earnings reports have also colored the picture with more grey, starting with a miss from Alcoa.  Inflation hasn't gone away, nor has North Korea's aggression, Iran now warning it may halt UN inspections and quit the nuclear Non-Proliferation Treaty, and crude oil prices hit record highs right while I was on the air for Morning Call.  Here's my question: do you think NOW is the time to buy? Some of the really savvy investors whom I interviewed for my upcoming book "The Best Investment Advice I Ever Received"  (Warner Books, coming out in November but you can pre-order now on Amazon) said just as the crowd is running and screaming away from equities is the time investors should jump in.  On the *other* hand, some very smart people have told me you can never go wrong by investing for the long term, and sticking it out through thick and thin.  Bloggers, I'd love to know what you think about investing in this climate.  And Bloggers? I am glad to be back.
 
Liz                                                                                                                                                                                        
June 29

Oh, Deer....

  Deer, oh Deer...
We did a segment yesterday that a lot of you asked to know more about... It was on this new company that says it's got the solution to deer wrecking landscaping and crops.  At first, I was thinking, "WHY are we doing this? Where's the business angle?!"  Then all I had to do was look at the stats.  Did you know that there are some 25 to 30 million deer roaming the U.S. (up from around 500k a century ago) and that they cause some $2 billion in annual U.S. losses from deer-related damage to land, cars and crops?  $49 million in damages in the Northeast alone.  For centuries, homeowners and farmers have tried just about everything to keep the deer at bay.. but they've learned that deer can leap over 8 foot fences, they'll work around poisons and deterrents, and they just seem to keep figuring out a way to eat your tulips.
SO, enter NATURE TECHNOLOGIES, a two-year old company that says it's come up with a multi-tiered approach.  They even offer a money-back guarantee, and it apparantly works so well that fewer than 2% of their customers have asked for their moola back!
 
Below is Gwen Bounds' article about Nature Technologies.  
 

Dean O'Hare, former CEO of insurance conglomerate Chubb Corp., estimates dropping $10,000 annually on landscaping in recent years. But that’s not for new plantings, rather just to replace the deer damage inflicted on his 20-acre Far Hills, N.J. estate. Mr. O'Hare tried professional sprayers, and had his entire property fenced in, but even that didn't deter the beasts.

"They jump right over and smile as they jump," says Mr. O'Hare.

Last year, however, he received a flyer from a new Pleasantville, N.Y. company called Nature Technologies Inc., which used a multi-prong deterrent strategy that included a patented ultrasonic device with frequencies purported to sound like a jet engine to deer while being virtually inaudible to humans. With an average initial set-up of $1200 to $1500 and monthly maintenance of $99, the firm's service wasn't cheap. But it promised monthly house calls and money-back guarantee for at least 90 days. After signing up, Mr. O'Hare says: "We made it through the winter in perfect shape."

For years, professional deer deterrent services have remained primarily in the hands of local landscaping outfits and cottage entrepreneurs, many of which employ single-approach strategies whose success can be hit-or-miss. (Deer get under or over fences; sprays get diluted by rainfall or leave unsightly residue on plants.) While a few players such as fencing purveyor Benner's Gardens Inc. in Conshohocken, Pa. and sprayer SavATree in Bedford Hills, N.Y. have branched out regionally and nationally, the unpredictable nature of the work has made it more an industry of Main Street than Wall Street.

But consumer demand for more assured relief, and a willingness to pay for it, is growing as the deer conundrum continues to worsen both in terms of landscaping damage - some $49 million worth annually in the Northeast alone - and on the health front with the spread of Lyme disease. Suburban sprawl has closed land to hunting and milder winters have helped fawn survival. While wildlife experts push for more lasting population control efforts such as sterilization, the immediate problem is worsening. There are an estimated 25 million to 30 million deer roaming the U.S., up from around 500,000 a century ago, and researchers estimate some $2 billion in annual U.S. losses from deer-related damage to land, cars and crops among other things.

That's opened the door for a new, and potentially bigger, breed of player such as Nature Technologies, which is rapidly expanding nationally with a pricey, service-based model that combines some of the old tactics - monthly spraying - with higher-tech offerings such as its ultrasonic device. It expects to post an estimated $10 million in sales in 2006--up from $1.5 million last year and services customers in eight states with plans to expand fully into New England and south of Washington, D.C. in the next year.

Meantime, company, which has venture capital backing, offers its unusual money back guarantee for its systems and says to date, fewer than 2% of its 1400 customers have triggered it due to deer "browsing" and for those that were past the 90-day period, the money was returned anyway.

Certainly, Nature Technologies is young - just two years old - and much remains to be proven on a long-term basis as its systems haven’t yet withstood the test of time or extensive research. Deer adapt readily to deterrents of all types, especially in the winter when food pickings get slim. Auditory devices ranging from ultrasonic ones to gadgets that mimic barking dogs, have been on the market for years but have shown scant long-term value, according to several research reports.

"Deer are very smart animals, and they figure out what is real danger and what is not," says Paul Curtis, an associate professor and extension wildlife specialist at Cornell University. Mr. Curtis, who has studied audible devices-though not Nature Technologies’-says in general, "We haven’t been able to document the efficacy. It's really buyers beware."

Still, Nature Technologies early success with its multi-prong strategy that mixes up deterrents regularly to keep deer on their toes is making an imprint in the industry and with a raft of customers who say it works. "I was ready to plow the garden under," says Judy Tibbets of Darien, Conn. who now uses Nature Technologies at her home property and that of her real estate firm and says she’s "recommended them to everyone." Even longer-established rivals are taking note: "They have a product that seems to work pretty well," says Matt Hough, vice president/product design for Benner's Gardens, which started selling deer fencing in 1992 but has annual revenue of about half Nature Technologies this year.

And the desire for new solutions has garnered interest from outside experts. "Even in my short lifetime, the problem has grown to where we have more deer than ever recorded and we've been keeping records for 125 years," says Brad Roeller, manager of grounds, display gardens and visitation at the not-for-profit Institute of Ecosystem Studies in Millbrook, N.Y. While he hasn’t studied Nature Technologies’ system, he says: "They seem to be on the right track by keeping the deer off guard.

Feeding opportunity in this market are desperate homeowners who scooped up and landscaped bigger properties during the housing boom and are now increasingly anxious to protect their Hostas and Rhododendron investment from deer intrusion, much the way they would the house from burglars. The inclination is particularly strong among higher income customers whose country homes and land are well-adorned with fertilized, irrigated plantings tasty to deer.

"These people succeeded in everything they've ever done," says Nature Technologies CEO Trevor Price. "And they are getting beat by deer, and they hate that."

Indeed, while Nature Technologies services a wide spectrum of clients the company has consciously courted big-spenders with more lavish properties as well as the horticultural elite. The property manager who oversees Ralph Lauren's Bedford estate in New York is an advisor to the company and uses the technology on Mr. Lauren's property. Dwellers of a multi-unit residential property in Fairfield County, Conn., whose tenants include General Electric Co. CEO Jeffrey Immelt, installed the system to protect their collective driveways. [EDS: confirmed on background from neighbor of Immelts who are using system with them.]

The company donates its services and devices pro bono to various non-profits with extensive gardens, a marketing move that in turn spurs interest among gardening enthusiasts likely to give the company a try at home. Pru Montgomery now pays $250 monthly to protect her half-acre Hastings on Hudson, N.Y. property, which is landscaped with native plants, after noting its success at the rose garden of the Lyndhurst National Trust Historic Site where she is an advisor. "It's expensive," Ms. Montgomery says. "But it's well worth it. We've put a lot into our property. You can't invite people to come see stalks."

Likewise, the 2,000 tulips of Clarence Z. Wurts, former chairman of the Philadelphia Zoo, also came under the protection of Nature Technologies this spring. "Not one was touched," says Mr. Wurts, who'd previously tried hanging Irish Spring soap near plantings (deer seem turned off by the made-for-a-man-but-gentle-enough-for-a-woman scent) and a fence that annoyed his wife. "It's hard to pick flowers with netting over top," he says.

This high-profile courting is not without risk. On the one hand, good buzz among such well-heeled customers is like money in the bank. On the other, there's no room for error -- the visual evidence of a chewed up tulip bed can't be overcome with any amount of marketing spin. Weather, plant growth, and construction all throw deer behavior into upheaval. And the dynamics of cocktail party chatter can be brutal: one high-profile failure and you're toast in the community.

Mr. Price, CEO of Nature Technologies, says notes the onus is on his company to stay one step ahead of the deer. With a heavy emphasis on research and development, the company has filed for patents on a variety of other inventions, including microprocessor chips that use software code to regulate sound strategies based on factors such as time of day, and ultraviolet strobe lights visible to deer but not humans.

Currently, the company employs an ever-changing arsenal of sprays that smell of predators or dying deer on the outer ring of a property. Closer in near high-munching zones, it places its ultrasonic device, the DeerTech 880, which resembles an outdoor speaker. The final round of ammo is sprayed on actual plants in flavors deer find unsavory - such as mint and jalapeno.

To monitor for deer browsing, Nature Technologies sends a staff of technicians (everyone has a college degree and speaks English) around roughly once a month to survey properties and mix up treatments. Technicians are equipped with tablet PCs and broadband IP access cards to log what they see and get info from other field technicians.

Additionally, the company maintains a round-the-clock hotline for "deer sightings" in case customers pull in after dinner and see eyes shining in the headlights. After a spotting is logged, a technician will be there within four hours the next day. In some states, Nature Technologies augment it staff with local landscaping outfits. There's also a research staff monitoring deer behavior with secret video cameras and using Google to get satellite images of where woods and stream are situated in target neighborhoods.

Whatever the future risks, the business is growing at a fast clip with 150 to 200 home visits logged each day. In addition to its money-back guarantee, the company in a few instances also has replaced plants "browsed" by deer during its watch and has given tulip bulbs (a deer delectable) to all its customers to prove its systems work.

In true entrepreneurial tale fashion, the ultrasonic technology originally came from a mason named James Turchioe who was peeved about deer destroying his Armonk, N.Y. property but didn't want an unsightly fence. Having heard that deer don't eat when it's windy because the wind distorts their sense of hearing and smell (which sense predators), he took the same logic to developing the ultrasonic device at the core of Nature Technologies' operation.

After his death in 1997, the patent sat idle for years in his estate until his brother and a childhood friend pulled it from obscurity and raised some money from angel investors. Those investors recruited a new CEO, Mr. Price, who secured two rounds of financing from venture capitalists totaling about $6 million.

Curiously, Mr. Price lives in the trendy urban Manhattan neighborhood of SoHo, nowhere near deer country. A former software executive, he was enticed by the deer deterrent prospects after tomato plants on his roof garden were demolished by an infestation of caterpillars. "I thought, if people are as pissed off about their landscaping as I am about my tomato plants, there's a business here."

 
 

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