How Is The NSA's Snooping Impacting Markets?

Mike Santoli analyzes the morning business headlines.
8:03 | 06/10/13

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Transcript for How Is The NSA's Snooping Impacting Markets?
Futures climb today after huge spike last Friday stocks boosted by some strong bombs in Japan. So to get to the headline behind all that -- -- -- from Yahoo! finances joining us this Monday morning to break a business headlines much over the weekend. I did thanks to an average -- I -- certainly is well it's like you know while there's going to be join and I start. Back to work -- are some ways of breaking news right now senator imports revising US credit outlook -- good news I'm guessing. Definitely good news now the market -- kind of not paid to close attention to the downgrade and S&P assigned to the US credit rating a couple of years ago. During the -- debt ceiling fight. In recent years basically the deficits been getting smaller and -- the economic cycle is helping out the whole federal finance story so I don't think it's a big deal it's sort of a gesture an acknowledgment by S&P that in fact the the government's finances are not in as dire. Stay at least in the short term. What's interesting is you know they kind of -- you can look back and say by downgrading. The US government credit rating from the highest levels back when he did and put their reasoning was. Political -- -- this function essentially they didn't have the confidence that politicians were gonna do what was necessary to secure the financial future the government. I don't think that's what's changed what's changed is the economy's gotten better but -- tax receipts are better so it's funny because the logic of the original downgrade seems to still apply and in fact if anything. This revision of the outlook to stable from negative -- -- is going to remove any possibility of a grand budget bargain even if there was a possibility before. It just it is in the disconnect between what happens in Washington and what actually happens on Wall Street then down. Are absolutely I mean it's always been the case. Now -- what number numbers don't lie at least at least -- -- in most cases. -- -- Japan today spiking and because of their revised growth numbers how good a day. But pretty good boy they better be good given the policies over there where they're trying to aggressively weakening -- in print more money get there get their economy moving again and briefly the whole market over there so it is some good news recently that that growth is looking like it's actually picking up. To this point it's mostly been about expectations. That in fact these policies were going to kick in and it was going to work so the market over there has been dancing around in these big daily jumps. For a while now which is a little bit disconcerting you don't want to see a huge global asset market. Kind of whip around the way it has been doing but at this point it looks like there's a little more confidence that in fact that growth is going to be picking up the big question. Is actually whether interest rates on Japanese government and also. Go up a lot which could actually sort of undercut the growth story so it's kind of a delicate experiment that's being done over there and I think that's why the markets have been so volatile -- -- -- But nice feather in the cap for prime ministership and so obvious though it is his -- economics. Without a -- look I mean initially all he had to do was persuade. The world markets that in fact he was serious about this and he was gonna go all in in this plan and not much. Certainly has been effective and right now -- people -- giving the benefit of the doubt. -- I wanna talk for a minute about the national security the NSA's -- program everyone is talking about obviously. And look at the political ramifications -- -- -- financial ramifications that are happening right the EU. Clearly not not happy with the latest revelations. It's no they're not mean I think at this point it's sort of sits at the level of the understandable expressions of concern that any world. Kind of government body would would put out there after you hear the news and after you hear about secret programs of potential for their citizens to to have been swept up. We think perhaps. In some of these. This sort of data mining operations so at this point I think it's it's going to be an issue. I think we gonna have to have a hashing out of kind of the rules of engagement here. On this on this new world and that's probably the process that grinds to a start at this point I don't think. It's going to be high impact at least in the view the coming G-8 meeting or anything like that but I do think it's going to be -- it's going to be one of the threads of discussion for awhile. Well Arcadia he mentioned the G-8 summit as far as the potential impact it may have but what about right here at home is Silicon Valley is that specifically FaceBook. Other tech giants I mean what kind of financial -- they having to this. -- the moment not a big financial reaction but I do think it certainly gets everybody thinking about -- the vulnerability of these networks or the access that. Third parties have to these networks and also kind of the bargain that all these tech companies implicitly strike with their users so what is fair -- what is not -- -- obviously it's been we're concerned with social networks for a long time exactly you know what people's private information is is available to be used for advertising for other people so I do think that whole thing has to be worked through with regard -- the business -- there -- so it's not so much changing business today or changing their -- their earnings -- their outlook today. But I definitely think it's interesting and all of the companies that have come out with comments had very specific language about the -- the government did not have direct access to our servers -- seems like. You know it's been -- gray area that I think people want to have go either black or -- Bryant. -- good good point. Apple has -- developers conference kicking off today a lot of people lot of apple has out there waiting to see with the new big gadgets going to be really -- up. You know I actually think -- kind of past the point -- apple can -- in one -- who dazzle us with that next new thing but I do think incrementally they have interesting things to offer us what I radio streaming music. Which has been long rumored but the fact that it's kind of getting in motion is definitely adjusting to be disruptive to other music streaming services like pandora. Do you think you're gonna get a little more about the operating system it's very want to sits behind the scenes so I really feel like. Apple is no longer one of those you know kind of what's the next blockbuster stories it's so bid and so dominant and so many areas and the stock really the fever has broken with regard to Apple's shares -- mean they've been kind of walling around. In this range for a little while now interestingly they did not run up into the developers conference in here in past years the prior weeks before the conference they actually have. Run -- so it seems to me the market is not applying very. High expectations or hopes on what specifically is going to be unveiled at the conference which I think -- about reverse logic is good basically we could be. Pleasantly surprised if we don't already have high -- You know what's fascinating is to see how the profile of the apple investor has changed as the company has gadget and evolved very very rapidly. Yes absolutely I mean it's -- it's in the hands now of kind of your stated value investors the ones who. Care about dividends and buybacks and yes they still you know worship the sort of a cult of Steve Jobs but that's not the reason that they -- Apple Stock it's not necessarily. Number one for innovation even though obviously -- that's going to be going on there behind the scenes. Our haven't -- -- about Google because they may have stolen actually some of Apple's undermine as social media navigation app ways. That certainly paying top dollar for it. Well it seems to be it's a top dollar's relative writer Bryan three for for this -- sort of traffic navigation app. Is a lot of money McDougle was worth 300 billion dollars in the stock market that forty billion dollars in cash. One of the great things about you know having that kind of firepower having that's -- size and scale. Is you can make a bet on a great technology you would rather have been compete against even if across a billion -- -- do you think the fact that there were other. Potential bidders involved here are interesting and Google I think is is been impressive in the way that they'll buy things. And sort of let them incubating integrated and as it makes sense and not necessarily say give me payout this year saying over time to figure out how to meet either -- map App Store advertising. Sales better and just user experience -- so it seems to me like a pretty you know a pretty good use of some spare cash by -- -- -- can always be that that double edged sword of monetization immediately. Bartlett Politico -- let's look at the Dow is almost 17 points 151000 tourists having five -- and talking Yahoo! finance have a good Monday. All right thanks to.

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