Apple's Internal Struggles; HP's External Influence

Jeff Macke analyzes the morning business headlines.
8:05 | 02/08/13

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Transcript for Apple's Internal Struggles; HP's External Influence
Like to live coverage of the opening bell on NBC news now. And read about this morning. Executives from the world -- Scotland. Launched five exchange. And rated products and. So the bell will kick off screen for today Friday February -- Everyone I'm Dan Cutler in New York futures mixed this morning investors. Ignoring some good economic data from China and from Europe possibly the fact there's a bit of fear about that. Approaching blizzard for the northeast here -- stock exchange -- say that they will stay open throughout the day joining me now to discuss this is Jeff MacKey bundled up he's got his moon boots off he's ready to hit the day running. I'm wearing nothing but snow pants underneath disaster well I'm not even wearing -- jets so you're -- enemy I want I think -- -- that I wanna start up with apple -- there's this internal -- -- back at what between the CEO Tim Cook an investor David Einhorn. Break it down for why this relationship has gotten so tenuous. Well Einhorn he runs a hedge -- he's very well respected. What he's saying is that apple needs to use every option they have to get money back their shareholders apple is sitting on something a 140 billion with a B. Dollars and they're not. Do when much with an accord mr. -- he wants that money back he's got kind of convoluted proposal. But that's -- boils down to resist and mr. -- giving them money and -- as saying we'd like keep -- thank you. -- is spending that money -- actually do anything for the company and -- posting a loss but -- clearly been on a slow down lately. The stock is flat over the last 52 weeks they're not what they once were in terms of the trading name. And I think it's less an issue -- apple and more an issue a lot of these companies sitting on huge amounts of cash not doing anything with it. And so if -- earning 1% on your money. The way apple would be or anyone who buys treasuries what Deng and you know maybe an individual can do better it's my money if I bought shares may and they -- you gain that. Share that cash. Infusion with impart my shares of the and I want that cash back and I think that's what -- -- doing and I do believe that's going to be theme in 2013. A shareholder revolt if you will demanding that some of that money comes off the -- -- and put to good use. What is so what does it say they'll overall about the culture there because. When you have a kind of relationship between Einhorn and and and cook. A lot of them are asking what I'm sort of had that kind of relationship -- that kind of statement against Steve Jobs and what does that say about kind of a shift in the culture of the company. Well you probably what decided to Steve Jobs and Steve Jobs ordered said something much more harsh back. Iran -- court has not been off to raging start as CEO. And people are critical I'm not just because he's not jobs but because -- company's nonperforming as well as they should I can argue about innovation they should come out with this and Matt. There's still a great company but there's simply not executing the way they months did being -- stock on some -- and -- -- acute problem you can blame an on demand but truthfully. You're just not -- the trains on time protested that not just -- -- keep that company operationally sound or the stocks can lose steam and -- it's not just going to be Einhorn to an awful lot of shareholders were displeased. I wanted to sort of Hewlett-Packard -- rape because other PC maker among other things this time is Chinese suppliers essentially cut down. On student labor in the production of some other components are so what exactly are they asking the Chinese to do in -- manufacturing. Process they're -- -- stop running sweatshops basically from it and make a real simple. You know the Chinese labor practices aren't necessarily -- we have over here now we can get all smug about that. But -- hundred years ago before America had unions we had union busters we -- people like Carnegie and four. Just out boot stomping anyone who wanted to unionize and masters in in China has the country. Becomes a production country and it creates a middle class of people want to be treated a little better in the workforce and we as meaning HP. Would like to see those employees trained better and so by HP demanding. Then take these these suppliers clean up their act a little bit that's the first step the opening salvo. In the an ongoing conversation about how you can manufacture things for American companies without necessarily abusing their workers. Is HP said in a way for other companies to follow suit with this kind of regular -- this kind of regulation but with this kind of standard practice. Oh absolutely and and and they're setting that -- -- up and base that drives up HP's. Cost basis is one of the things and Auburn both on the stand for -- are often say told you so. But middle class jobs are coming back to the states and we just don't have as a corporate culture. And then we just don't have the taste for what we see over there in terms of the labor practices are not American and style they don't have workforce rights. And that's not something that American shareholders or investors who really want any part of. I mean -- the long time a lot of people have said that we just don't make anything in this country anymore and particularly with tech products like that. Apple going to be following suit on this -- and aside from the text sex sectors as well but what about other industries mean is that -- people don't look at HP and say you know what in fact we doing to kind of move some of these jobs back over the US. Based on those kinds of saying things that were -- I'll be honest and in the business -- about many people looked -- for much of anything. Let he I do believe there had a bit though and that's one of the reasons jobs will be coming back to the states the idea Americans can't manufacture anything. Give me a break of course we kept us just lunacy -- -- -- a silly idea we could manufacture anything which -- our -- fifteen cents an hour. And it was cheaper overseas -- -- you give those people standard of living that in just the last hours under the kind of middle class worker over brought. That cost more that means it's more competitive. To come back to the states because staying at your headquarters and warehouse -- located was on the same time zone. As opposed to way over there where it cost money to be involved these factories to ship all the goods over the Pacific that's expensive. That makes it cheaper as those rates go up as a wages increased get jobs back in the states -- -- -- I can and I can tell from my personal experience -- fathers and this is bothers. Company in Michigan as well strains in the manufacturing re boom there is well not just from the tax -- from the automotive sector tech side as well so tell us what's the housing. Sector fermented because of brokerage Rosenblatt securities. It's and a sub prime mortgages. Are back. -- we not learn our lesson are we are we be scared about this. You know not really -- it's not everyone has tremendous credit. At -- would we rather not have a sub prime mortgage area -- or rather not to have people be able to get loans. If -- -- making three million dollars a year with a sterling credit rating had their the sub prime serves its purpose. As did the -- comes we're just prior -- and the railroads are just about 460 years ago. These things in there you got to separate the idea that he Romania and did a lot of societal damage when he crashed found. From the idea that sub -- has an idea both Jiang and they serve -- real societal purpose -- let people get houses is no -- American dream to be saddled with a huge mortgage. But some people like to buy a house they need a mortgage so why not lend them some money. Maybe it's not that -- mentioned out of Florida that everyone had -- -- I mean it's people talk about the bubble in the market in this amount were fighting the last battle for sub prime mortgages are good thing I think we've got a pretty tight leash on them in terms are risk appetite right also up this morning the Commerce Department said at the trade deficit has fallen by two billion dollars this breakdown that number -- Found were American diet that's that's one thing. I -- -- -- you can't -- to a lot of manufacturing. It's not -- consumption -- over here. We're buying goods economy slowly at a glacial pace. He is getting a little bit better and so relatives -- exporting more -- -- -- doing better competitively speaking. That's again good ferocity of their growth has become much more equalized. We're still not there yet but China is just not growing faster than we are at this point they're gonna see a little bit. Of that trade export import things start to -- balance outlook. Are right one last look at the big book -- -- -- you -- this morning Geoff Dow is trading up by 24 points at thirteen 1968. Jeff stay dry stay warm and have a very great weekends there you know your dear brother.

This transcript has been automatically generated and may not be 100% accurate.

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