<Show: NIGHTLY BUSINESS REPORT> <Date: July 25, 2013> <Time: 18:30:00> <Tran: 072501cb.

118> <Type: SHOW> <Head: NIGHTLY BUSINESS REPORT for July 25, 2013, PBS> <Sect: News; Domestic> <Byline: Susie Gharib, Tyler Mathisen, Andrea Day, Diana Olick, Sharon Epperson, Jane Wells> <Guest: Tom Ajamie> <Spec: Government; Policies; Wall Street; Business; Economy; Stock Markets; Lifestyle> <Time: 18:30:00>

ANNOUNCER: This is NIGHTLY BUSINESS REPORT with Tyler Mathisen and Susie Gharib, brought to you by --

(COMMERCIAL AD)

(BEGIN VIDEO CLIP)

PREET BHARARA, U.S. ATTORNEY: SAC became, over time, a veritable magnet for market cheaters.

(END VIDEO CLIP)

TYLER MATHISEN, NIGHTLY BUSINESS REPORT ANCHOR: Indicted. The government tightens the net around one of Wall Street`s biggest fish, the hedge fund run by billionaire Steven Cohen. Does the move signal a fresh push to make Wall Street fairer for investors on Main Street?

SUSIE GHARIB, NIGHTLY BUSINESS REPORT ANCHOR: Corporate America`s report card. The half way mark of earning season is here. We have the winners, the losers and a look at the health of the companies you`re invested in.

MATHISEN: The upside of downsizing: a smaller home, fewer expenses, less debt. It`s a way to make your nest egg last longer. But how practical is it really? Our series "How to Not Outlive Your Money" continues tonight.

All that and more on NIGHTLY BUSINESS REPORT for Thursday, July 25th.

GHARIB: Good evening, everyone.

It is the story the business world is talking about: the federal government indicting one of the largest and most profitable hedge funds in the country, SAC Capital. The firm`s founder, Steven Cohen, was not charged personally, but the multibillionaire investor has been at the center of this year-long investigation.

The criminal indictment alleges that the firm traded on stocks based on confidential information unavailable to the broader investing public. The U.S. attorney in Manhattan is charging SAC with wire and securities fraud, and permitting a, quote, "systematic insider trading scheme to unfold between the years 1999 and 2010.

(BEGIN VIDEO CLIP)

BHARARA: The scope of illegal trading was deep and it was wide. It spanned more than a decade in time, involves securities of at least 20 public companies, extended across multiple sectors of the economy, and benefited SAC to the tune of at least hundreds of millions of dollars.

(END VIDEO CLIP)

GHARIB: The hedge fund released a statement saying, "SAC has never encouraged, promoted or tolerated insider trading and takes its compliance and management obligation seriously. SAC will continue to operate as we work through these matters."

Joining us now with more insight about the case and if this means the government is getting serious about clamping down on Wall Street, Tom Ajamie. He`s managing partner of his firm Ajamie LLP, which represents investors in high profile cases of securities and financial fraud.

Tom, great to have you here.

You know, this story has so much drama and color to it, you know, big egos, big money here. But, you know, prosecutors came down with one very simple statement saying that this is a case about corporate conduct and corporate responsibility.

So, as you look at this case, do you think that Wall Street -- that the prosecutors have a fresh approach, a fresh strategy to get tough on Wall Street, to really make it fair for Main Street investors?

THOMAS AJAMIE, AJAMIE LLP MANAGING PARTNER: Well, it certainly looks that way, and I hope they keep it up. I mean, this is a very important case for a lot of reasons. The main reason is we need the stock market and financial markets to be fair and honest. We need to root out the people who are cheating. That hurts everyone else who is invested to their 401(k)s, or through their pension funds, or just individually buying stocks.

And so, I think the government is on a roll. They`ve gotten quite a few convictions. Some people just pled guilty, just flat out said that they were guilty, and now, they are going after the company and they`ll probably go after the big guy himself.

MATHISEN: And not just at SAC capital have these pleas come out. Other ones like Galleon, Raj Rajaratnam, and other cases as well. The rhetoric that Mr. Bharara used today is intent, "A veritable magnet for market cheaters. Not tolerance for low returns, but high tolerance for questionable conduct. The company seeded itself with corrupt traders empowered by a culture that looked the other way despite red flags."

Simply put, Tom -- does the government want SAC Capital to die and will it succeed?

AJAMIE: It does and I think it`s going to succeed, yes. The rhetoric was hard, but I think the United States attorney wouldn`t use those words unless he had some facts backing him up. And when you read the indictment, it is full of information and it is full of very good facts, sad facts, frankly, of a lot of people at this company just cheating, using insider information and doing things that they knew were wrong to get ahead.

GHARIB: All right. So, let`s say you`re right, and SAC in the end, at the end of the day, does collapse, what does this mean if you`re an investor and you have funds with SAC? Will you be able to re-coop any of this?

AJAMIE: The government said today they`re going to work with SAC to try to make an ordinarily transition out of the company and to protect. I`m going to take the government at their word.

I think, Tyler, it goes back to what you said. The government wants this institution shut down. It`s tired of these companies out there cheating to get ahead and not making profit in honest way.

MATHISEN: We should point out, obviously, that these are allegations.

This is the government`s claim against SAC Capital. But let me broaden it out a little bit. How rampant, he says, Mr. Bharara, that the trading, insider trading was rampant at SAC Capital. He has previously said it`s rampant on Wall Street.

If I`m an individual investor, do you have a fair shake? Do I have a chance?

AJAMIE: Well, those aren`t really reassuring words are they, when he says it`s so rampant on the street. You know, I think we do have a chance in certain types of stocks and certain types of companies. But, you know, clearly, guys like Steve Cohen, if they have done what the government alleges he`s done and people at his company have done what the government says they have done, do make it difficult for all of us, and make it a very difficult place for us to invest.

We need cops like the United States attorney cleaning up things from time to time.

GHARIB: Real quickly, we`ve been reporting on this as journalist for years, so have you, Ivan Boesky, Michael Milken, Raj Rajaratnam that Tyler was just talking about, and now, this case. Really are these government prosecutors going to be able to clean up Wall Street?

AJAMIE: They`re not going to stop people cheating to make money. That happens every day and is going to continue to happen. Unfortunately, there is always going to be bad apples there.

But like we need to stop people who rob banks, we need to stop people who sell illegal drugs, you need to have a policeman on the beat stopping these illegal insider traders.

GHARIB: All right. Thank you so much, Tom Ajamie of Ajamie LLP.

MATHISEN: On Wall Street today, the big drama surrounding the indictments did not translate into any kind of big move for stocks one way or the other. Good earnings from the Dow component 3M (NYSE:MMM) and the social media stock Facebook (NASDAQ:FB) were

not enough to give the broad market a major push into positive territory. More on these earnings in just a couple moments.

In the end, however, overall, the Dow finished up 13 points 15,555 -- fives are wild on the board there. The NASDAQ gained 25, the S&P 500 up by four.

Corporate America is now at the half way mark of earning season, and today, two wellknown companies reported earnings after the closing bell, each with very different stories. Starbucks (NASDAQ:SBUX), first, beat street estimates and raised its full year earnings forecast. Results at the world`s biggest coffee chain were helped by strong sells in the U.S.

Meanwhile, Amazon (NASDAQ:AMZN) swung to a loss of two cents a share and issued a cautious forecast for the third quarter, as the Internet company`s expansion plans continued to weigh on results.

MATHISEN: Well, Susie, today was the single biggest day of earnings reports for companies in the S&P 500. And now, more than half the firms in that index have said what they made or lost last quarter.

To put the numbers in context is John Butters, senior earnings analyst at FactSet.

John, welcome back. Good to see you.

Simple question, how are we doing?

JOHN BUTTERS, FACTSET SENIOR EARNINGS ANALYST: Well, Tyler, relative day. In those (ph) expectations, it`s been a very average quarter. We had over half the companies report earnings at this point in time, and 74 percent of companies have beat the earnings expectations.

Now, that might not sound like a high number, but it`s actually just a little bit higher than the average over the past four years, 73 percent.

And on the revenue side, we`ve seen 54 percent of companies beat the sales estimates and that`s a little bit below the average of 58 percent. However, it`s much better than the performance we`ve seen in recent quarters. In three of the past four quarters, more companies have missed revenue estimates than beat. So, again, a little bit better performance on the revenue side than we`ve seen in recent quarters.

GHARIB: And let`s look ahead because everybody always looks to see what`s the guidance that they hear from company executives. We heard yesterdays from Caterpillar (NYSE:CAT), weak guidance going forward.

As you look at that, what can we expect for the third quarter, the current quarter and fourth quarter?

BUTTERS: If you look at the guidance for the third quarter. Right now, 49 companies have issued EPS guidance, 39 of those companies have issued negative guidance. So, that`s a rate of 80 percent, and that`s consistent with what we saw in the previous quarter. We saw a similar number back in Q1, but it`s much higher than the long-term average of 62 percent and we`ve seen a lot of negative guidance from companies in the technology sector, and that`s one of the sectors we`ve seen significant cuts to estimates for Q3 at this point in time.

MATHISEN: You know, John, if I am a long-term investor as opposed to a trader, what I care about most is not whether a company beats the Wall Street estimate or not on profit or revenue, what I care about is what is the absolute level of growth. So in terms of earnings, how fast are profits growing, and how fast are revenues growing?

BUTTERS: Well, in terms of earnings and revenue. We`re having a fairly weak quarter. On the earnings side, the growth rate is 1.8 percent. Now, that`s an improvement over where we were coming into the earning season, at just an expectation of eight tenths of a percent. But if we finished at 1.8 percent, that would be the third lowest growth we`ve seen in the past four years.

And on the revenue side, we`re seeing similar growth. That`s around 1.2 percent. That`s a little bit better than we`ve seen in recent quarters. Over the last three or four quarters, revenue growth has been spotty.

So, again, on the earnings side while we`re seeing companies beat on expectations, the earnings is relatively weak at just under 2 percent.

GHARIB: John, we`re at the half way point. So, there`s still another half of companies to hear from, a lot of big retailers like Walmart have yet to report, big oil companies like Exxon. What can we expect to hear from this new wave of earnings?

BUTTERS: Yes, as I mentioned, so coming into the second half of the earning season, we`ll hear from a lot of companies in the energy sector and utility sector. And then, later on the earnings season, we`ll hear from the retailers, and they are such an important barometer for the health of the consumer. We`re certainly keeping an eye on what their comments are going forward.

The companies in that -- those companies are part of the consumer discretionary sector. That sector is reporting growth of 4 percent right now. That`s the third highest in the index. So, again, we`ll keep an eye on that performance to see if it moves that growth rate for the consumer discretionary.

MATHISEN: You know, John, if you`ve got profits growing at 2 percent but prices of stocks growing at 20 percent so far this year, you got to wonder, don`t you?

BUTTERS: Right, it could be a case for the markets looking ahead past this quarter, to future quarters. As we mentioned, for the third quarter, although the growth rates come down, analysts are still looking for just 6 percent growth in Q3, and that`s expected to jump up to 11.5 percent in Q4. So, it could be a case really the markets are already looking past Q2 and looking for better expectations for earnings through the second half of 2013 and into 2014.

MATHISEN: John, thank you very much.

John Butters with FactSet.

GHARIB: More earnings to tell you about now in "Market Focus", starting with General Motors (NYSE:GM). G.M. touching a new two-year high as its profit topped expectations. North American sales offset losses in Europe and tracking firms say July sales should be up 15 percent.

By the close, shares have sold off a bit. G.M. down a fraction to $37 and change.

3M`s profits rose 2 1/2 percent on growing sales. The company raced its full year guidance and also increased its stock buyback plan by $1.5 billion. And 3M (NYSE:MMM) execs told investors they`ll be pursuing acquisitions to grow faster. 3M (NYSE:MMM) shares added a quarter higher to $16.55.

Quarterly earnings tumbled 17 percent at Bristol-Myers-Squibb. The company blamed it on the loss of patent protection on its one-time blockbuster Plavix, as well as a slow launch of new blood thinner developed with Pfizer (NYSE:PFE).

Disappointed investors sold shares. BMY down 1 1/2 percent to $43.93.

MATHISEN: Celgene (NASDAQ:CELG) on the other hand was a strong performer, raising its outlook on stronger sales of its multiple myeloma treatment, reporting increased profit and revenues. Investors boosted shares there by 3.5 percent. They closed at $140.65.

And many investors took a second look at Facebook`s mobile strategy after those blowout earnings we told you about yesterday. Facebook (NASDAQ:FB) shares traded at 10 times the normal volume today. And hit levels last seen the week of its IPO 15 months ago. At day`s end, Facebook

(NASDAQ:FB) shares were up almost 30 percent on the day. The close at $34.36.

GHARIB: It`s being called the largest hacking fraud case in history. Prosecutors indicted Russian hackers today for stealing at least $160 million credit card numbers from institutions ranging from JCPenney to the NASDAQ, resulting in losses of hundreds of millions of dollars.

Andrea Day reports.

(BEGIN VIDEOTAPE)

PAUL J. FISHMAN, NEW JERSEY ATTORNEY: This type of crime is really the cutting edge of financial fraud.

ANDREA DAY, NIGHTLY BUSINESS REPORT CORRESPONDENT (voice-over): It`s the largest hacking and data breach scheme ever prosecuted in the United States.

FISHMAN: They targeted some of the largest companies in the world, stealing millions of credit and debit card numbers, and causing hundreds of millions of dollars in losses to their victims.

DAY: The five alleged Russian hackers using sophisticated software and breaking into major institutions like NASDAQ, Dow Jones and JetBlue Airlines. Seventeen companies compromised, three alone left with at least $300 million in damages.

FISHMAN: The individuals charged and arrested in this case are the ones at the top, the ones who steal the data that they sell to the folks who cash out. We believe we have taken a major step towards dismantling this organization.

DAY: Prosecutors say the alleged hackers were so relentless, they would spend months at a time trying to break into a company`s computer system, working around the clock to steal credit and debit card numbers, and reams of personal information. They would then sell the information on the black market.

FISHMAN: Charging $10 for an American credit card number, $50 for European credit card number, $15 for Canadian credit card numbers. He even offered quantity discounts and discounts for repeat customers.

DAY: And they were brazen. Law enforcement intercepting text messages between the suspects. In this one, after they hacked into the NASDAQ stock market, the hacker texts his coconspirator, "NASDAQ is owned."

FISHMAN: I think this prosecution also demonstrates that while the hackers are persistent and patient, so are we.

DAY: For NIGHTLY BUSINESS REPORT, I`m Andrea Day.

(END VIDEOTAPE)

MATHISEN: More trouble for the embattled smartphone maker BlackBerry. The company has laid off about $250 people at its headquarters in Waterloo, Ontario, as part of its move to trim cost. Last month, BlackBerry reported weak quarterly results as sales of its much hyped line of new smartphones came in well below expectations.

GHARIB: Still ahead on the program, the benefits of downsizing. Is it the best option for most retirees looking to stretch their savings? We`ll get an answer to that as we continue our series, "How to Not Outlive Your Money".

But, first, here is a look at how the international markets closed today.

(MUSIC)

MATHISEN: The fifth home builder to go public this year began trading today. WCI Communities, which develops luxury residential communities and homes in coastal Florida, made its debut with a whimper. Shares finished the day just fractionally higher from its IPO price of $15 a share.

GHARIB: A different builder Pulte got pummeled today. The nation`s second largest homebuilder reported earnings that missed analyst expectations, selling far fewer units than expected.

Meanwhile, DR Horton reported better than expected profits, thanks to higher home prices. But it did say rising mortgage rates contributed to increased cancellations and a drop off traffic in June. And that`s the trend that`s worrying investors.

Looking at how the stocks did today, Pulte fell 10 percent. DR Horton off by 8 percent.

MATHISEN: Builders like Pulte, DR Horton and others say that buyers demand greater energy efficiency, but those same consumers worry about the price of those innovations. What`s more, in valuing a home, appraisers and banks don`t always give due credit for going green. That may be about to change with new legislation in Congress.

Diana Olick has the story.

(BEGIN VIDEOTAPE)

DIANA OLICK, NIGHTLY BUSINESS REPORT CORRESPONDENT (voice-over): Solar panel, tankless hot water heaters, and extra insulation can save homeowners hundreds of dollars a month on their energy bill.

Now, Senator Johnny Isakson has cosponsored a bill to have lenders factor those savings in when figuring a mortgage.

SEN. JOHNNY ISAKSON (R), GEORGIA: It`s about energy efficiency. It`s about savings. It`s about increasing the borrowing power of the borrower. I think it`s a win-win proposition for the industry.

OLICK: The bipartisan Save Act does two things: it requires lenders to factor energy savings in a home into how much a borrower can afford for the monthly mortgage payment, essentially subtracting the savings in the energy bill from the borrowers` overall monthly expenses. It also tells lenders to add the value of expected energy savings to the value of the home in the appraisal. Since mortgage amounts are based on a percentage of the value of the home, this would allow borrowers to get a bigger mortgage.

And that`s where homeowners likely Tamara Lyons who already have green technology will be able to make more money when they sell. The value of green will be in the appraisal.

TAMARA LYONS, HOMEOWNER: A lot of my neighbors feel that it`s too much of a initial investment and they don`t want to put that money down, but if they see that it`s going to add to the value of their home for resale purposes, I think it would definitely make the idea more sexy and more appealing.

OLICK: It would also help companies that are investing heavily in green products, like Dow, Home Depot (NYSE:HD), Whirlpool (NYSE:WHR) and insulation manufacturers, not to mention, of course, solar.

STEPHEN COWELL, CONSERVATION SERVICES GROUP CEO: This would give manufacturers, retailers, builders and retrofit companies all an opportunity to begin reaching consumers to say if you take advantage, you put these products in. You can have an expanded value for your home.

OLICK (on camera): This would be for loans bought or backed by the federal government, but that`s about 90 percent of the market today. The hope is to get the big banks all on board, and make green technology as hot as those solar panels are right now.

For NIGHTLY BUSINESS REPORT, I`m Diana Olick in Washington.

(END VIDEOTAPE)

GHARIB: For retirees who still have a mortgage and house to maintain, downsizing can reduce one of their largest monthly expenses. That could help them stretch their retirement budget at a crucial time.

Sharon Epperson explores the benefits of downsizing as we continue our special series, "How to Not Outlive Your Money".

(BEGIN VIDEOTAPE)

SHARON EPPERSON, NIGHTLY BUSINESS REPORT CORRESPONDENT (voiceover): John and Carol Rhoder had visited Florida beaches many times, but when they calculate the cost of living there, they eventually decided to leave New York and relocate.

JOHN RHODER, FLORIDA RETIREE: Financially, I mean, Florida is a very easy place to live. You know, there`s not -- first of all, it`s a no income tax state. That`s number two. But number two, living arrangements down here and the cost of living down here is a lot less than it is in New York.

CAROL RHODER, FLORIDA RETIREE: We still live the way we lived in New York. It`s just easier. It`s just -- you know, we go out when we want. We go out for dinners and we travel and all that. It`s fine. It`s just -- it`s like living on vacation. It`s just easy.

EPPERSON: The couple, who are both 69, had already downsized once, from an 80year-old home to a new condo in suburban New York. Then, in 2010, they moved into their vacation condo in Florida permanently.

John, a retired hospital administrator and, Carol, a retired psychologist, have significantly reduced their debt and now live more comfortably on a fixed income.

C. RHODER: We have no mortgage. We own our car. You know, it`s so - we just this year remodeled the kitchen and two bathrooms in this place. So, you know, we`re fine.

EPPERSON (on camera): When it comes to stretching retirement dollars, financial advisors say downsizing is often overlooked by retirees that become attached to their family home, their neighborhood and their lifestyle.

TIM MAURER, FINANCIAL CONSULATE VICE PRESIDENT: If you`re trying to downsize right where you are and just change life and make it less expensive, often times, it would have the appearance that life was better when you were working than when you were retired.

EPPERSON (voice-over): But for some people, it`s the most practical and affordable option.

MAURER: There are many folks out there who are feeling the pressure, having not made a lot of money in the market over the course of the last decade or so, they feel like they are behind in retirement savings. For them, it may feel like a need that they have to downsize. But what I encourage people to do is to think about it more as an adventure.

EPPERSON: That`s how the Rhoders see it. For this couple, moving to Florida began another fulfilling chapter in their lives.

For NIGHTLY BUSINESS REPORT, I`m Sharon Epperson.

(END VIDEOTAPE)

GHARIB: For more on downsizing, log on to our Web site, NBR.com. And tomorrow, Sharon will wrap up our series with a look at whether starting an encore career is a smart way to not out live your money.

MATHISEN: Still ahead, Amazon (NASDAQ:AMZN) wants to be a major player in the big business of grocery delivery. How does it measure up? We put the service to the test.

But, first, how the commodities, treasuries and currency markets performed today.

(MUSIC)

MATHISEN: To Detroit now where the tunnel that connects the city to Canada has followed the municipality into bankruptcy. American Roads, the operator of the DetroitWindsor Tunnel, cited $830 million in debt and declining traffic. The company said the restructuring is not the result of the recent Detroit bankruptcy filing, but that the city`s financial problems and the decline in population contributed to the tunnel`s unmanageable debt burden.

GHARIB: Well, one thing that is working for Detroit is the auto industry. And today, "Consumer Reports" is calling the 2014 Chevy Impala the best new sedan. And one of the best cars it`s ever tested.

Only two cars now have a better score than General Motors (NYSE:GM) newly redesigned Impala. It`s the Tesla Model S hatch back, and the BMW 135i Coupe.

And you can read more about our story on our Web site, NBR.com.

Earlier in the program, we told you about Amazon`s quarterly results and a few weeks ago, we told you about the online retailers move into the big business of fresh groceries.

Tonight, Jane Wells puts all that service to test.

(BEGIN VIDEOTAPE)

JANE WELLS, NIGHTLY BUSINESS REPORT CORRESPONDENT (voice-over): Groceries are a $650 billion business. But it`s one category that`s not been a big hit online, yet.

(on camera): Everybody wants bacon. Let me start with that.

(voice-over): Now, Amazon (NASDAQ:AMZN), the 800-pound gorilla of Internet retail is joining a growing food fight, expanding a grocery delivery business its had in Seattle, to parts of Los Angeles.

KATE WENDT, WELLS FARGO: If you think about a $650 billion market, 10 percent of that is $65 billion. So, it would -- even that piece alone would be one of the biggest categories in retail.

WELLS (on camera): Seven o` eight.

(voice-over): The key to success is showing up on time.

(on camera): Seven forty-five.

(voice-over): My order was set to be delivered between 7:00 and 8:00 a.m.

(on camera): Seven fifty-one.

(voice-over): Amazon`s L.A. experiment is only for prime members who must pay $299 a year for the service.

Everything was in order with my order, plus some free water.

(on camera): I don`t remember ordering these.

(voice-over): Amazon (NASDAQ:AMZN) may not be making money on this yet, but the point maybe to get people to stop going to the store for anything.

WENDT: And as long as the company that is perfectly happy to operate slim operating margins. They really want to drive volumes and drive market share and make customers happy.

WELLS: Rivals like yummy.com have been growing in Los Angeles, Yummy guarantees delivery in 30 minutes, a tight turn around Amazon (NASDAQ:AMZN) can`t meet but Yummy`s CEO says no grocery chain should sit idly by.

BARNABY MONTGOMERY, YUMMY.COM: If they ignore the threat of Amazon (NASDAQ:AMZN) and Amazon (NASDAQ:AMZN) fresh, it`s not that they are going to lose 50 percent of their sales. It`s that they risk losing the 5 percent to 10 percent of their sales that make them profitable.

WELLS: All of this is happening a decade after Webvan so spectacularly failed in the dot-com bubble, back before people used smartphones, broadband or comfortable putting credit

card numbers on the Internet. A dozen years later, times have changed. And whatever happened to Webvan? Amazon (NASDAQ:AMZN) bought the domain name.

For NIGHTLY BUSINESS REPORT, Jane Wells, Los Angeles.

(END VIDEOTAPE)

MATHISEN: I like that Jane Wells had bacon and Oreo cookies there in her order. I`ve used these services. They`re pretty doggone good.

But I did a documentary sometime ago about the grocery business. It`s about a 1.5 percent margin. It is a very, very tough competitive business.

GHARIB: I still like going down the aisles --

MATHISEN: I do, too.

GHARIB: And checking and smelling the cantaloupe before I buy it.

MATHISEN: Yes.

GHARIB: That`s NIGHTLY BUSINESS REPORT for tonight. I`m Susie Gharib. Thanks for joining us.

MATHISEN: And I`m Tyler Mathisen. Thanks from me as well. Everybody have a great evening. We`ll see you here tomorrow.

END

Nightly Business Report transcripts and video are available on-line post broadcast at http://nbr.com. The program is transcribed by CQRC Transcriptions, LLC. Updates may be posted at a later date. The views of our guests and commentators are their own and do not necessarily represent the views of Nightly Business Report, or CNBC, Inc. Information presented on Nightly Business Report is not and should not be considered as investment advice. (c) 2013 CNBC, Inc.

<Copy: Content and programming copyright 2013 CNBC, Inc. Copyright 2013 CQ- Roll Call, Inc. All materials herein are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of CQ-Roll Call. You may not alter or remove any trademark, copyright or other notice from copies of the content.>