This action might not be possible to undo. Are you sure you want to continue?
118> <Type: SHOW> <Head: NIGHTLY BUSINESS REPORT for July 26, 2013, PBS> <Sect: News; Domestic> <Byline: Susie Gharib, Tyler Mathisen, Courtney Reagan, Sharon Epperson, Jane Wells> <Guest: Anthony Chan, Phil Orlando> <Spec: Federal Reserve; Government; Policies; Wall Street; Stock Markets; Business; Economy; Lifestyle> <Time: 18:30:00>
ANNOUNCER: This is NIGHTLY BUSINESS REPORT with Tyler Mathisen and Susie Gharib, brought to you by --
SUSIE GHARIB, NIGHTLY BUSINESS REPORT ANCHOR: The next Fed chief. Who will be the next person to lead the world`s most powerful central bank?
It`s the talk of Wall Street and Washington, and the answer could impact not only your savings but also your investments.
TYLER MATHISEN, NIGHTLY BUSINESS REPORT ANCHOR: Is cash king? The companies are hoarding it and individuals are holding on to it. But is there a risk to playing it so safe?
GHARIB: And encore careers. Is it possible to turn your passion into a paycheck later on in life? We wrap our special series, "How to Not Outlive Your Money", with a look at successful second act.
We have all that and more tonight on NIGHTLY BUSINESS REPORT for Friday, July 26th.
MATHISEN: Good evening, everyone, and welcome.
Call it a turnaround Friday. Stocks got pummeled early and then recovered from a loss of 150 points. The Dow squeaked out a gain bringing the blue chip averages weekly win streak now to five. But the S&P 500 was not as lucky. It`s weekly win streak was snapped at four dragged down by weak earnings from Expedia (NASDAQ:EXPE).
At the close, the Dow gained three points to end at 15,558, the S&P 500 higher by a single point, and the NASDAQ up by eight.
And while this may have been the biggest week for earnings so far, next week`s calendar may be the biggest month for the economy, potentially turning a quiet midsummer stretch into something more meaningful.
MATHISEN (voice-over): Topping a very busy agenda next week, Ben Bernanke chairs the two-day Fed policy meeting, just as the focus on his successor narrows. Two people, vice chair Janet Yellen and former Treasury Secretary Larry Summers, lead the list of possibles.
Now, the Fed isn`t expected to rollback bond buying when it`s meeting wraps on Wednesday, shifting the tantrums into September and maybe beyond, given the murky economic data we`ve been seeing. The same day, the data of retail sales, housing, manufacturing, all of it, gets mushed together to produce our first big estimate of second quarter GDP, and perhaps a better picture of whether easy money and tightening federal budgets are affecting the economy.
It`s the last big week of the earning season, almost a quarter of the S&P 500 report. Among big names will hear about on Tuesday, Barclays and Deutsche bank due out. On Thursday, ExxonMobil (NYSE:XOM) and Procter & Gamble (NYSE:PG). And on Friday, Toyota (NYSE:TM). Also that day, the mother of all economic data, the July unemployment number.
Get ready for a busy week.
MATHISEN: And, by the way, President Obama today said no decision has been made about who he will nominate to be Fed chairman and no announcement is expected until the fall.
GHARIB: Joining us now to talk about all of this, Anthony Chan. He`s chief economist at Chase Private Client.
Anthony, nice to have you with us.
And let`s begin where Tyler just left off. It`s the juiciest topic on Wall Street, about who`s going to replace Ben Bernanke in that job.
We don`t know who it`s going to be, but who do you think Wall Street wants?
ANTHONY CHAN, CHASE PRIVATE CLIENT CHIEF ECONOMIST: I think, right now, Wall Street is a lot more comfortable with someone like Janet Yellen, because she has a lot of experience with the Federal Reserve. She was a governor and then, of course, a district bank president, and now, a vice chairman.
The only wrinkle I see is that it`s not the Federal Reserve making the decision, it`s the president of the United States. But given that her inclination is more towards unemployment and given that Bernanke was more obsessed with inflation, the market is going to be favoring Janet Yellen because it says that the Federal Reserve is likely to keep the punch flow in play a lot longer than under someone else.
MATHISEN: I think -- I sense, Anthony, that you think the odds of Mr. Bernanke seeking and receiving another nomination are very small. If that is the case and the two leading contenders are Ms. Yellen on the one hand and Mr. Summers on the other, how would a Yellen Fed differ from a Summers Fed?
CHAN: Well, I think Larry Summers has written a lot of papers out there, and certainly his latest academic research suggests that he does favor fiscal policy a little bit more. I think in that sense, he`s more likely to lean on the Congress than Janet Yellen would -- that would promote perhaps more monetary policy easing or perhaps more activist monetary policy.
Keep in mind that the edge that Larry Summers has that Ms. Yellen doesn`t have is that he`s a lot more comfortable, I would say, with the president. He`s had a lot more social and intellectual contact with the president where Janet Yellen has basically remained on the sidelines.
But I think it`s clear that from the Federal Reserve`s perspective and the experience of someone as a central banker, Janet Yellen has to lead the pack and Larry Summers has to be a distant second in that race.
GHARIB: You know, this whole tapering -- pulling the stimulus out of the economy will be a huge job, unprecedented, big experiment. Nobody has really done this before.
Who do you think is going to be better equipped to navigate all of that, Larry Summers or Janet Yellen?
CHAN: I think given the fact that Janet Yellen has been in the game for all the innings so far, and certainly has been privy to the debates and all the pros and cons as the Federal Reserve has gone from one quantitative easing program to another, I have to believe that she has the edge, even there on the intellectual side over someone like Larry Summers, who has been in the administration and not necessarily inside the central bank.
Now, both of them are intellectually capable of adjusting, but in terms of somebody that`s going to be up and running, I have to give the nod to Janet Yellen.
MATHISEN: Very quick thought on how is the economy doing now and what do you think of the jobs report a week from today?
CHAN: I think the economy is clearly growing below 1 percent, employment is growing pretty rapidly, so we`re going to get weak productivity in the second quarter. But I have to believe that on Friday, when we get the employment report, we`re looking at a number closer to 200,000 and if I give you a range, it would between 180,000 to 200,000. But I`m more comfortable with the upper end of that range for payrolls.
GHARIB: All right. We`ll see what happens next week.
Anthony, thanks so much for coming along. Anthony Chan, chief economist at Chase Private Client.
MATHISEN: SAC Capital, the big hedge fund we told you about yesterday, pleaded not guilty this morning to criminal charges of insider trading. Steve Cohen, the man who runs the fund, was not at the courthouse. But prosecutors say they have a large volume of evidence against the firm, including electronic messages and court-ordered wire traps.
Yesterday, the hedge fund was charged with wire and securities fraud that the government says led to hundreds of millions of dollars in illegal profits.
GHARIB: JPMorgan (NYSE:JPM) says its considering a sale or spinoff of its physical commodities business. The announcement comes as consumers
groups and Washington lawmakers have criticized powerful banks like JPMorgan (NYSE:JPM), Goldman Sachs (NYSE:GS) and Morgan Stanley (NASDAQ:NBXH) (NYSE:MS) for participating in so many aspects of this business, trading the commodities and owning them as well.
Why is this important? Well, as you might remember, NIGHTLY BUSINESS REPORT brought you a story this week showing how banks that own physical commodities might be driving up the price of things like soda cans and car parts. And the issue is getting more scrutiny in Washington, as well. The Senate held a hearing, looking into those activities and the impact that they might be having on consumers and businesses.
MATHISEN: Halliburton (NYSE:HAL) has admitted to destroying in the Deepwater Horizon oil spill disaster. The Justice Department says the company will pay the maximum fine, $200,000, and will be subject to three years probation. On two occasions, Halliburton (NYSE:HAL) directed employees to get rid of simulations that might have focused more attention on the company`s role in the spill. The spill was the largest in U.S. history, nearly 5 million barrels of crude poured into the Gulf before the well was capped.
And coming up, our market monitor guest will give his opinion on what to do with Halliburton (NYSE:HAL) shares now.
GHARIB: And here`s another fine in the news today, this one at UBS.
The bank will pay more than $800 million to U.S. regulators over allegations that the Swiss bank misrepresented mortgage-backed bonds during the housing bubble. UBS disclosed earlier this week that it had reached an agreement in principle to settle the suit.
MATHISEN: And now to Boeing (NYSE:BA), which faces a possible civil penalty. The Federal Aviation Administration is proposing a $2.75 million fine against Boeing (NYSE:BA) for failing to fix an issue with some fasteners within an appropriate amount of time. The fasteners were on 777 Boeing (NYSE:BA) planes and the problems were first discovered in 2008. Boeing (NYSE:BA) didn`t address the issue until late 2010.
GHARIB: And Pepsi isn`t calling its Naked juice all natural anymore. A lawsuit complained that the drinks contain ingredients that don`t measure up to "all natural" label. Pepsi is paying $9 million to settle that lawsuit.
MATHISEN: Samsung, the world`s largest maker of smartphones, reported a 50 percent rise in profits from a year earlier and solid smartphone sales, as well. But earnings momentum showed some signs of slowing with margins squeezed by high marketing costs. And a Samsung executive warned that the pace of growth may slow further as competition intensifies. The results from Samsung were similar to the rival Apple (NASDAQ:AAPL) reported earlier this week.
GHARIB: Now, as we start the second half of earning season, a familiar pattern is taking hold. Record amounts of money sitting in corporate coffers and this time. It`s more than the usual suspect, Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Google (NASDAQ:GOOG).
Courtney Reagan takes a closer look at why companies are hoarding cash and what they might do with it.
COURTNEY REAGAN, NIGHTLY BUSINESS REPORT CORRESPONDENT (voiceover): It`s almost like corporations are hoarding cash. Total cash and n equivalent are at an all-time high, according to Thomson Reuters (NYSE:TRI)` data.
As of this week total cash held by S&P 500 companies totaled $933 billion, about $24 billion more than the same time last year, and the highest levels on record.
When you break down the cash hoarding by sector -- technology, which is typically the highest holder of cash, moved to number two behind industrial. Industrial companies are holding more than 12 percent of total assets in cash.
While many point to a lack of profitable investment opportunities,
others think it`s for more defensive reasons.
MICHAEL FARR, FARR, MILLER & WASHINGTON: Cash levels are very high because of a great deal of uncertainty. Corporations feel uncertain about the future direction of legislation and sequester and what the Federal Reserve might be doing.
REAGAN: Apple (NASDAQ:AAPL), far and away, has the most cash on hand, with $145 billion, followed by Microsoft (NASDAQ:MSFT) with $87 billion, and Google (NASDAQ:GOOG) at $56 billion.
While the cash reserves of those tech heavy weights is impressive, cash makes up more than 72 percent of total assets for mid cap companies like Linear Technology (NASDAQ:LLTC) and Intuitive Surgical (NASDAQ:ISRG).
(on camera): Individual investors are also holding on to cash, pulling money out of bonds but not necessarily reinvesting in stocks. Experts say that while economic and financial conditions have improved, there is still enough uncertainty to keep investors on the sidelines, waiting for reassurance.
UNIDENTIFIED FEMALE: Cash is very simple and straight forward, and as I`ve gotten older, I prefer a lot of more straightforward interactions.
UNIDENTIFIED MALE: I don`t trust credit cards. I don`t trust banks.
I like to keep my cash close to me, where I know where it is.
UNIDENTIFIED MALE: I think I`ve been putting less than I normally would have put into the market at a change in a few years ago.
REAGAN (voice-over): It is certainly good for corporate and personal balance sheets to have some cash in a proverbial piggy bank for when opportunities arise. But companies do have fiduciary duty to investors.
FARR: A company has to make their cash work. That`s their responsibility to shareholders. So, they`re going to be looking for investments. They might be looking for acquisitions. They might be looking to actually extend new product lines.
REAGAN: In the meantime, many believe companies are likely to continue to raise dividend payments to investors and continue share buybacks.
For NIGHTLY BUSINESS REPORT, I`m Courtney Reagan.
MATHISEN: Still ahead, looking for a way to not outlive your money -how about an encore career? Some baby boomers are doing it and doing it very successfully. It`s the final part of our series, "How to Not Outlive
But, first, let`s take a look how the international markets fared today.
GHARIB: People are living longer and many are working longer. The employment picture has slowly been improving for baby boomers and older Americans. Some in their 50s and 60s are still going to work. Others are pursuing second acts, launching so-called encore careers as the next chapter in their professional lives. For some, it`s a way to make sure that they don`t outlive their savings.
Sharon Epperson wraps up our series, "How to Not Outlive Your Money."
LOUISA HELLEGERS, CENTER FOR EMPLOYMENT OPPORTUNITIES: A lot of thinking about who I am, where I came from, what I wanted to do.
SHARON EPPERSON, NIGHTLY BUSINESS REPORT CORRESPONDENT (voiceover): After leaving a 40-year career in publishing, 65-year-old Louisa Hellegers says self-reflection was essential in helping her figure out what to do next.
HELLEGERS: What I wanted to do is what I had been doing my whole career, which is to serve and give back in various ways to the community.
EPPERSON: She`s using skills she hadn`t thought of initially, focusing on people, not publishing.
HELLEGERS: They interviewed and hired and trained a lot of people, and I think that`s part of the piece that`s making me successful here.
EPPERSON: She`s now a human resources executive, working as director of organizational development at the Center for Employment Opportunities, a non-profit organization that helps men and women who are just getting out of jail get into a job.
BETH KEMPNER, CENTER FOR EMPLOYMENT OPPORTUNITIES: Our sole focus is helping formally incarcerated individuals find and keep employment, especially in the critical days right after they were released.
EPPERSON: Beth Kempner, a 54-year-old former advertising executive, is director of public affairs at the organization. Like Hellegers, she found this position through a non-profit agency that helps people find a second act that serves the greater good.
(on camera): There are as many as 9 million people between the ages
of 44 and 70 who are getting paid for work that combined their personal passion with a social purpose. That`s according to the nonprofit think tank Encore.org. Another 31 million are interested in making the leap into what`s known as encore careers.
(voice-over): They are seeking new careers in the non-profit world, healthcare, education and government. While doing altruistic work can mean a cut in pay, having some income can help those who aren`t ready to retire just yet.
JUDI ROSENTHAL: Most people are not in a position to fully retire in the kind of traditional sense at a, quote-unquote, "normal retirement age." The simple fact is most people are not in a position to accumulate enough assets so they need to be able to pursue other forms of income to supplement that lifestyle so that it can last as long as they do.
EPPERSON: For NIGHTLY BUSINESS REPORT, I`m Sharon Epperson.
GHARIB: And for more on encore careers, go to our Web site, NBR.com.
MATHISEN: Investors differing reactions to earnings reports leads tonight`s market focus.
Amazon (NASDAQ:AMZN) touched a new all-time high despite a poor report as analysts raised price targets, citing Amazon (NASDAQ:AMZN)`s improving margins. Investors bought the optimism, sending shares up nearly 3 percent on triple to normal volume. They closed at $312.01.
Different story, though, for the travel site, Expedia (NASDAQ:EXPE). The stock slammed and analysts cutting ratings to under perform from buy at Lazarre, to market perform from out perform at Raymond James. Higher costs outset revenue growth and profits dropped 32 percent. The stock dropped almost as much, losing 27 percent on eight times the normal volume.
Expedia (NASDAQ:EXPE) ended at $47.20 a share.
GHARIB: Shares of Activision Blizzard (NASDAQ:ATVI) surged today on news that it`s becoming an independent videogame company. A group led by CEO Bobby Kotick bought most of the shares held by Vivendi for $8.2 billion. Kotick called the deal a tremendous opportunity for the game publisher, and investors agreed with that.
Activision touched a new high before closing at $17.46. It was up 15 percent.
Also hitting an all-time high, Lear (NYSE:LEA) Corporation. This is the automobile seat maker. It posted earnings and revenues that beat analyst estimates and it raised just full year revenue guidance. It`s
benefitting from the boom in U.S. auto sales.
Lear (NYSE:LEA) shares ended the day at $67.80, gaining almost 3 percent. But they did close just below that record high.
And Weyerhaeuser (NYSE:WY) benefitting from the strengthening housing market. It reported stronger sales, better margins and profits that more than doubled from the year ago quarter. But the company forecast a smaller profit in the current quarter and the stock drooped a bit. Shares fell more than 1 percent to $28.80.
MATHISEN: A market monitor tonight expects the stock market to pull back a bit, about 5 percent he says. But that`s a good thing.
He`s Phil Orlando, chief equity strategist at Federated Investors (NYSE:FII).
Welcome back, Phil. Good to see you.
PHIL ORLANDO, FEDERATED INVESTORS: Thanks for having me back, Tyler.
MATHISEN: You know, I asked one of our guests last night. You`ve got profits growing at 2 percent, 3 percent, 4 percent, maybe -- I don`t know what the real final number will be for this quarter. But you got a stock market that`s up 18.6 percent so far this year.
Is that really sustainable?
ORLANDO: Absolutely. And the reason for that is stocks are cheap. We started this cycle back in `09 at 11 times earnings. Right now, we`re only at 14.5 times next year`s earnings. We ought to be trading at 18. So, this is going to continue over the next couple of years.
GHARIB: OK. That`s good to hear.
You know what, Phil? We got lots of questions for you from viewers. So, let`s get right to it.
We have Gary who wants to know about the outlook for Halliburton (NYSE:HAL). You heard our story earlier in the program about its settling all of those BP spill issues.
ORLANDO: And that overhang now is behind the company. That allows them to focus in underlying fundamentals, which are pretty strong. They`re going to do a significant buyback program.
So, we like Halliburton (NYSE:HAL). Here in mid-40s, you could see the stock move up to the mid-50s over the course of the next year or so.
MATHISEN: Let`s move to Dave in Ohio. He wants to know whether
Target (NYSE:TGT) is a good one to own. What do you think, Phil?
ORLANDO: We do like Target (NYSE:TGT) but retailers are under pressure right now. And you talked about some of this at the beginning of the show. The increase in taxes, the sequester has hurt consumer spending. We do think that`s going to improve in the second half of the year, if Target (NYSE:TGT) comes in here into the high 60s or so, I think it`s attractive for a rebound to consumer spending in the second half of the year.
GHARIB: All right. And another sector, fertilizer supplier Potash. Loren in North Dakota, wants to know about the outlook for this company. What`s your view on this, POT?
ORLANDO: It`s a great fundamental story that`s under a lot of pressure right now for a number of reasons. You`ve got a normal growing cycle in the United States, so the prices of corn and wheat for example are sitting at 52-week lows. The emerging markets customers this company sells to, China, Brazil, et cetera, right now, are weak from an economic standpoint. You`ve got a strong dollar that`s creating some currency headwinds.
So, right now, the numbers are a mess. Longer term, the stock is still attractive but near term. It`s probably not where you want to be.
MATHISEN: All right. Let`s move to Jim in San Jose. He says he`s owned Microsoft (NASDAQ:MSFT) for a couple years now and he`s wondering whether he should stick with it.
What do you think, Phil?
ORLANDO: Well, you`ve got to have a lot of patience. They pushed the quarter within the last week or so. The stocks down about 15 percent.
The problem is that the company is still -- its core business is still the PC or tied to the PC, and that`s an area that`s in decline. The areas that are hot right now are mobile, smartphones, things of that measure. So what you want to see is some sort of a major transition or reorganization, maybe even some sort of change in senior management. We got to get Microsoft (NASDAQ:MSFT) focused on areas that are growing rather than areas that are in decline.
GHARIB: So, Phil, two stock recommendations of your own and we want to hear about them.
Gilead Sciences (NASDAQ:GILD), you have. Tell us what`s so attractive about GILD.
ORLANDO: Biotechnology company, they are active in the hepatitis C market. What occurred just within the last 24 hours, which is very
exciting, is one of the companies that they have become competing against in terms of developing this drug to come to the market, they have some liver related issues and the FDA has held them up. That clears the way for Gilead to come to market probably by the end of year and being the only major company with a drug in this market. That can give them to a two to three year head start to really develop a strong foothold.
Stock here at about 60 and we could very easily see that in the mid70s looking out over the next 12 to 18 months.
MATHISEN: And your other pick, we got about 30 seconds, Phil, is Qualcomm (NASDAQ:QCOM). And if you would conclude by letting us know whether you own any of these stocks, that we just talked about?
ORLANDO: We actually do own both Qualcomm (NASDAQ:QCOM) and Gilead, like blow the quarter out. Qualcomm (NASDAQ:QCOM) did the other day. They guided higher. Unlike Microsoft (NASDAQ:MSFT), they are in the smartphone business, which is growing, and this company, we think, is in position to continue to do very well over the next couple of years.
MATHISEN: Phil, great to see you. Have a great weekend.
ORLANDO: Thank you, Tyler.
MATHISEN: Phil Orlando is chief equity strategist at Federated.
GHARIB: And still ahead on the program, it might be the ultimate summer fun. We`ll take you inside the boat shaped like a shark that one man turned into a successful business.
But, first, here`s a look at how commodities, treasuries and currencies performed today.
GHARIB: Toyota (NYSE:TM) is number one. It`s the world`s top selling automaker for the first six months of 2013. Toyota (NYSE:TM) says it sold 4.9 million cars and trucks around the world for the month of January to June, outpacing its U.S. rival, General Motors (NYSE:GM).
MATHISEN: A new car may not help if your summer plans include exploring the depths of a local laker gliding atop the water at 55 miles an hour. But with the ultimate high-tech toy, Jane Wells shows us just what you might need to make that happen.
Take a look.
JANE WELLS, NIGHTLY BUSINESS REPORT CORRESPONDENT (voice-over): It`s
like a jet ski, meets a submarine, and turns into a torpedo.
Think of it has a human powered shark-nado.
(on camera): What is the goal? What is the purpose of this whole venture?
ROB INNES, INNESPACE PRODUCTIONS GENERAL MANAGER: There is really no purpose whatsoever. We didn`t really envision any plan when we started this.
WELLS (voice-over): New Zealander Rob Innes is a long time boat designer who`s turned into the Jessie James of personal watercrafts.
INNES: Most people they don`t think it`s real. They think it`s a movie prop or something, they have no idea.
WELLS: What it is a Seabreacher, a submersible power boat which flies just beneath the surface and jumps into the air, thanks to an engine with as much as 300 horsepower.
INNES: We actually forced a very buoyant (INAUDIBLE) under water and that`s why it can jump out so high and do so many freestyle tricks.
WELLS: The cost of the Seabreacher can top 100 grand, each is custom
made. Fifty have sold so far, mostly to the Middle East and Asia.
INNES: We have made them look like World War II fighter planes. We have made them look like space shuttles. We`ve put demons shark that have blood trickling out.
WELLS: Innes hopes to do more than sale boats, he wants to create a sport.
INNES: Our goal is to evolve and make them faster and better and eventually start a proper racing series.
WELLS: The hardest part is developing a system so easy, even an idiot can operate it.
I`m living proof it`s possible.
Actually, that wasn`t me making that reach, my attempt was far lamer.
IINNES: More power, more power, go, go, go.
WELLS: But the future doesn`t look lame for the Seabreacher, self-funded and unprofitable for the first few years, the business is now riding high with a waiting list to customers.
For NIGHTLY BUSINESS REPORT, Jane Wells, Shasta Lake, California.
GHARIB: We`ve seen Jane have a lot of stories. I think this tops it all.
MATHISEN: My neck hurts watching that. That is a recipe for whiplash. Wow. That does look like fun.
GHARIB: Pay $100,000 for one?
MATHISEN: I don`t know, man. It looks like swimming with the fishes in a dolphin.
GHARIB: Look, coming up next week on NIGHTLY BUSINESS REPORT, we have a special series on long-term care. With so much attention on the changes coming to health care, we`re going to explore all the issues surrounding long-term care. It`s coming next week right here on NIGHTLY BUSINESS REPORT.
Well, that`s it for NIGHTLY BUSINESS REPORT for tonight. Have a great weekend, everyone. I`m Susie Gharib.
MATHISEN: And a busy week ahead. We hope you`ll rejoin us next week.
I`m Tyler Mathisen.
Thanks for being with us. Have a wonderful weekend, everybody. See you on Monday.
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 CQRoll 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.>
This action might not be possible to undo. Are you sure you want to continue?