Transcript for Is There A Threat to U.S. Bacon?
Market futures climbing slowly today after some new data came -- this morning -- -- break down those numbers on the top business headlines we have Aaron task from Yahoo! finance good morning Aaron. You weren't there are so -- with the GDP for Q1 what did those numbers show. -- -- -- the economy grew a little bit slower in the first quarter than economists originally the government originally thought the GDP was revised down to 2.4 percent. And 2.5 percent -- -- that I believe there's one more revision to come yet. These numbers are always subject to change but it about a mileage is -- the economy was growing in the first quarter just not very robustly. -- this week's jobless claims also came out today what about those. Yet -- is there was an unexpected jump of about 101000 jobs came in at three and 54000. Phillies week this she was a temperature of 40000 so little bit of a surprise. Uptick in jobless claims. Again these numbers are coming off of a five year low just a few weeks ago so. Nothing to be too concerned about but in terms of the market it was a little bit of a disappointment. Right -- -- combine that with slightly less than expected GDP than these few more jobless claims. Not necessarily good data so how -- the market reacting. Well it's it's paradoxical it's or even reverse the market kind of likes bad deed as -- is not too bad. Especially right now in this moment as the market's big fear is that the Fed is gonna take away the punch ball. And if the economic data is strong and getting stronger that makes it more likely that the feds can -- with a -- -- so. The weird thing about Wall Street especially in this era we're in right now is that. It's a little bit -- this is actually a good thing. And sounds the sounds about right all right let's talk about Asia for a second start -- with Japan it's Nikkei index falling 5% last night some -- saying. Another correction but we did have another -- so what what is it reacting to -- -- some wild moves going on in the Japanese market now for -- that that it it's -- still about 40% since the end of last year. So you had a huge spike and now you're seeing that they correction occurring there was a big drop last week it is big job overnight. Last night I'm not sure there's any particular news event that triggered it. But what's -- thing is that. After the market in Japan includes a story came out. That one of the biggest pension funds in Japan might change the way -- structures that -- -- invest more money. In Japanese stocks and in the Japanese stock market had a big jump. In the overnight futures market rapidly just there's a lot of wild dramatic swings going on Japan but colleague Michael cent toll -- kind of looked like a Biotech stock. Which is that what you want from a major national average like the -- so it's that was in the keep and I am. And for sure investors are a little worried all right -- -- now from Japan to China -- there apparently is looking to buy -- -- US's largest pork producer. And this is raising some eyebrows in Washington right. Well look there's been a number of Chinese companies in recent years that have tried to buy different American assets -- -- oil companies or Telecom assets. On this is Smithfield Foods is is American the world's largest pork producer. The Chinese company is made its -- it's been accepted by the company. And I think there are legitimate concerns. For more but to the point that. The Chinese wouldn't let an American company go in and buy Chinese China's largest pork producer or -- company -- ever so. It -- and Jeffrey -- it's not a two way street. And then there are legitimate I think concerns about America's food supply I think a lot of Americans are ready worried about their food supply. And the Chinese do not have a very good track record. And particularly this company which is that it goes -- -- -- way. They've had some issues with the Chinese Government -- how they handle their work. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- That's really ugly here are American and -- exactly exact that. But how would it work exactly -- Chinese man you know obviously the the plant would stay in the US and the Chinese managers come over and running. -- what they're saying is actually they're gonna leave Smithfield Foods existing management the US management intact. -- -- operated as separate subsidiary and in the real the -- here for Chinese state in wort. Our pork away from America to China because there's huge growing demand for pork in China Smithfield Foods again is the biggest her producer in the world but I think this company is hoping to learn from Smithfield -- -- they do it do it and -- safer -- Aaron the real impact on US consumers is that -- more of our work is going to China that means there's less than a year which means prices are gonna go -- hot and -- do you think that again. You know there is the issue of food supply but I think really prices rising -- probably more of a direct. Impact as -- -- is there any chance that the US government will step in here. You know I'd be surprised I mean I I do you think it's really difficult for the US government to say this is a national security risk and and I look I'm I -- begin all the -- so I topic at hand ready for that -- -- -- -- -- -- -- -- Protected but love of my hope is that -- -- the US government if they argue get involved they -- is -- as leverage visited China say OK you wanna make investments here in the United States. That's fine but you have to let our companies do the same thing in China and right now there's a lot of walls and blocked against them doing that. Right are ultimately to stay in China but move away from meat into manufacturing -- apple is slowing down its partnership with Foxconn. And working more with the relative unknown now is is because. Foxconn is starting to sell its own brand that could be competitor. I think I think there's a lot of that going on you know first apple diversifying your suppliers is typically speaking a good thing for visits to -- you after you spent a lot of time -- any you know familiarity breeds contempt. I'm sure there are things that Foxconn does apple doesn't lake. In addition to all the bad publicity Apple's gotten over the years because of working conditions at Foxconn right. And now we had had these reports that -- -- Foxconn is starting to build and manufacture its own electronics and media Apple's concerned that they will start to borrow. Some of the capital intellectual property. So it seems like a Smart thing for apple to -- they're they're looking into a Taiwanese supplier. And again if he could just -- they want to diversify. Their supply cheating case there's a problem with Foxconn they can turn to this other supplier to make sure. That there we are not apple gadgets to be sold in the Indian market. Everything is chugging along American could Chinese manufacturing be slowing down because they also hear Motorola is looking to build its next -- in the US that right. -- this is actually. You know -- passing development I think what's really going on is that labor costs are rising in China pretty dramatically. And when you combine that with the cost of shipping goods from China the United States. And the fact that US energy costs are falling dramatically especially natural gas is very cheap and if -- you know be factory use a lot of energy. So -- he could start any case that it's not as cheap to produce hearing that states but that the cost difference isn't so great. So maybe you're better off producing hearing -- it's it's it's the -- -- one of the handful and a growing number of companies that are international companies that are looking at the the global it's -- global market and saying you know it maybe we should be building here United States -- good news for US job. -- a very interesting trend to watch for -- out finally billionaire Warren Buffett is making a big purchase out west. Into an energy company we know -- been hugely profitable for a lot of people what's going on there. -- -- so Berkshire Hathaway which is Warren Buffett's company their big holding company they have a lot of subsidiaries. One of their -- to -- -- mid American energy. They are buying and the energy for five point six billion dollars it's an energy company based in the body else that he -- in Oregon. Another. Speak to the northwest. -- -- this is a classic. Warren -- -- acquisition. In -- utility business. You know very stable slow steady growth. I would put out there that Smithfield Foods the world's largest pork producer would also be a Smart acquisition for Warren Buffett -- trying to save -- We're we're skate America disagreement -- Aaron. You know they just -- time is why -- throw some work in the you might -- -- suggestive love that -- -- thank you so much we're gonna take the white look at it out for let -- go up just a little bit about 9 points this morning. Aaron -- from Yahoo! finance thank you. Thank you.
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