Files for IPO; Sears 2Q Loss of $19 Cents Worse Than Expected; BHP Billiton Tries to Win Potash Shareholders; Interview With Chris Wallace; Jobless Claims Leads Today's E...
<Show: IMUS IN THE MORNING>
<Date: August 19, 2010>
<Head: Lenovo Rebounds to Profit Helped By Emerging Markets; General Motors
Files for IPO; Sears 2Q Loss of $19 Cents Worse Than Expected; BHP Billiton
Tries to Win Potash Shareholders; Interview With Chris Wallace; Jobless
Claims Leads Today's Economic Data; Internet Traffic Regulation Meetings
Resume; Interview With David Boies - Part 1>
<Sect: News; International>
<Byline: Don Imus, Sandra Smith, Charles McCord, Bernie McGuirk, Tony
Powell, Lou Rufino, Dagen McDowell, Rob Bartlett>
<Guest: Liz Claman, David Boies, Glenn Beck, Chris Wallace>
<Spec: Business; Stock Markets; Automotive Industry; Infrastructure;
Military; Religion; Policies; Unemployment; Homosexuality; California;
Stock Markets; General Motors; Sears; Iraq; War; Economy; Staples; Sports>
DON IMUS, FBN HOST: This is the IMUS IN THE MORNING program. Time now for a business update from the fox business network, here's Sandra Smith. SANDRA SMITH, FBN CORRESPONDENT: Good morning, everyone. We start with a live business alert on the markets. Starting over in Europe, stocks are lower following up on the previous session losses, some weak earnings results coming in there weighing on the marks. And, here in the U.S., futures are higher following up on yesterday's slight gains. So, we are seeing a fraction of a percent gains on the Dow, S P, and NASDAQ futures.And, what a difference a day makes for General Motors. In 2009, the automaker was fighting for its life. Now, it's taking a major step for being a public company once again. The long awaited filling for an IPO came yesterday afternoon. A 700-page document has been laid out, and it's laid out the reasons and risks to investors looking to buy GM stock. GM didn't say how many shares will be sold or when it is believed however that the offering could come as early as October. It's also not known how many shares the U.S. Government plans to sell. The offering will include common as well as preferred shares and analysts have said the initial sale could be worth up to $20 billion, but the filing didn't give a number. GM would have to bring in $70 billion just to pay back all the stake holders. And, now here's a look at our other top stories for you this morning. Hewlett-Packard has named executive search firm Spencer Stewart to lead the search for a new chief executive. Mark Hurd was ousted earlier this month after the board found that he failed to disclose a personal relationship with a marketing contractor. And, from the false expense reports, the search will include both internal and external candidates to lead the technology giant. Hp reports its quarterly earnings, by the way, after the closing belt today. Analysts are looking for a profit of $1.08 a share on revenue of $30.4 billion. And, higher sales at Victoria Secret and Bath Body works stores helping to lift the bottom line at limited brands. After the closing bell, the company reported an adjusted profit of 36 cents a share, beating the street's estimates, revenues up nearly 9 percent to $2.2 billion. Limited brands also raising its full year forecast. And, Research In Motion looking for a mobile advertising network. The maker of the Blackberry has held talks with the Baltimore-based Millennial Media about an acquisition. According to the Wall Street Journal the talks have stalled over the purchase price. Millennial is asking for between 400 and $500 million. Research In Motion is reportedly unwilling to pay that price, and neither company would comment on the story.
And breaking news from Sears right now, we have an adjusted loss of 19 cents a share. For Sears, coming in on revenues of $10.46 billion. Important to point out that, that's a miss as far as expectations were concerned by about a penny on earnings per share.
And, here's a look at the commodities a real quick, oil and gold in mixed territory and coming up at 6:30, Imus's guest will be former special counsel to President Clinton, Lanny Davis. IMUS IN THE MORNING continues, right now
DAGEN MCDOWELL, FBN CORRESPONDENT: You said does anything pleasant ever happen to you -- ever.
IMUS: Yes. MCDOWELL: And, the answer is no because I take the train home every day, two hours, and I'm on it full of men who sweat in January. It smells like long John Silver's, if it's being served in like a frat house at 5:00 in the morning. And then there's some dude sitting next to me, who looks not unlike Greg Buttle on the phone going, yeah, boss, boss, yeah -- go ahead, no, no, no. I'm on the train. That's OK. That is until I get near him, and it turns into, what are you doing, what are you doing, aw, aw, aw, aw!
IMUS: I don't understand that.
MCDOWELL: You didn't?
BERNARD MCGUIRK, EXECUTIVE PRODUCER: What is wrong with that?
MCDOWELL: Yes. What is wrong with that?
IMUS: You were saying that?
MCDOWELL: I was saying, I'm saying that that is how the conversation next to me goes after I get near him.
CHARLES MCCORD, FBN NEWSCASTER: OK. She put a hurt on him in other words.
MCDOWELL: I put a hurt on him. Yes.
IMUS: You did?
MCCORD: To shut him up.
IMUS: I see.
MCCORD: Here you go,
IMUS: Did your husband pick you up on time?
IMUS: You know that's inexcusable.
IMUS: It's not inexcusable? MCDOWELL: You pick your battles. I'm a handful, so that is real small potatoes -- IMUS: Well, but you're -- MCDOWELL: -- if you ask anything --
IMUS: Your half a sissy-boy husband works at home, doesn't he?
MCDOWELL: Yes, but he's busy, doing things.
IMUS: Doing what?
MCDOWELL: Doing things.
MCCORD: He should be there early.
MCDOWELL: Probably changing the dates on the expired food in the refrigerator, which I caught him doing not long ago -- with a little pen changing the dates on a jar of barbecue sauce, so among other things.
IMUS: Man, you are so messed up, it's just -- it's mind-boggling.
ANNOUNCER: Ladies and Gentlemen, IMUS IN THE MORNING.
IMUS: It is 5 minutes past the hour here in the IMUS IN THE MORNING program. Is there any -- Charles, is t here any huge news?
IMUS: OK. Tell me what it is.
MCCORD: The last U.S. Brigade Combat Team in Iraq has departed the country. History was made overnight, I-man. The last full convoy of American combat troops pulling out of Iraq, crossing into Kuwait, leaving behind, of course, some 56,000 American troops. Most of them there to do things such as trained Iraqi forces, but it basically means the end of - - at least in theory as I saw a ship to say last night -- at least in theory, it means the end of combat operations and soon, something to be called the opening of operation dawn instead of the -- instead of the current operation -- operation dawn to, you know, proceed into the future, but --
IMUS: And which one --
MCCORD: -- that's the story from overnight. IMUS: And, which one hopes we all wake up at dawn, and get the other 56 -- 50,000 out of there and let the country blow up again.
MCCORD: There you go.
MCCORD: So. IMUS: Well, that's good news. Lanny Davis coming up this morning. I just talked to some geek at American Lawyer Magazine -- well, he's not a geek, why is that necessary? Why do we have to start at 6 minutes -- after 6:00 a.m. --
MCCORD: Well -- look in mirror.
IMUS: -- Eastern Time.
MCCORD: Look in the mirror.
IMUS: And, refer to this nice young man at the American Lawyer Magazine as a geek. Jesus! Who needs that?
MCCORD: Nobody! IMUS: I mean who needs -- at least I didn't use his name. Anyway, he's a nice guy. MCCORD: All right. IMUS: And, he's doing -- they're doing a big profile on Lanny Davis. MCCORD: Yes.
IMUS: And, Lanny unfortunately gave him my name. So, I told him about Lanny leading a water gates plumber's-like group of people -- (LAUGHING) MCCORD: Yes? IMUS: -- Well, we'll get to that. I'll explain to Lanny what I told the guy. MCCORD: OK. IMUS: And the guy said, God I never heard that. I said, well nobody wants to talk about it that's why you haven't heard it. MCCORD: Yes, come on! IMUS: But, I'll be -- I'm more than willing to talk about it and provide -- I'm more than willing to not -- I'll offer testimony -- whatever else is necessary.
MCCORD: What's -- whatever is necessary.
IMUS: Yes. And, Chris Wallace is coming up. Fox News, we'll talk to him, and then David Boies. I'll talk to him about that gay marriage ruling in California. He and Ted Olson tried the case and won but now there's any number of things that has to happen before it eventually is -- everybody lines up at the Supreme Court.
MCCORD: Yes. IMUS: And, as a host of the program, It's my job, of course, to -- you know, ride herd on all of the people on the program.
MCCORD: Yes, we know.
IMUS: What: MCCORD: Now, go ahead. What? IMUS: Well, what I want to say -- MCCORD: What? What now?
IMUS: What are you doing too much of this and not enough of that or whatever.
(LAUGHING) MCCORD: Yes. IMUS: Well, this morning I had -- I had to mentor Bernard. Well, you should have heard Bernard.
MCCORD: What happened?
IMUS: He was a bigger pansy than you are.
MCCORD: Come on. It's impossible.
IMUS: No. No. He went, why? I did the best I can do.
MCCORD: No. No. No. He's not -- Bernie is a man. I can't believe that.
MCGUIRK: He's misrepresenting the conversation.
MCCORD: This got to be. Bernie is a man.
MCGUIRK: Surprise, surprise, though.
IMUS: I'm not misrepresenting anything.
MCCORD: You mean he sissied out on us?
MCCORD: No way.
MCGUIRK: Don't believe it, Chuck. Please.
IMUS: He folded up like a cheap lawn chair. It was just horrible. Anyway -- Holy! My God, Warner, look at the -- you look like you put on 100 pounds.
ROB BARTLETT, FBN COMMENTATOR/COMEDIENNE: Come on, I-man.
MCGUIRK: What a whale! WOLF: Come on!
IMUS: That's not Warner.
IMUS: Who is doing sports? Is that you, Larry?
BARTLETT: Yes. It's me, Ringo.
IMUS: Larry King in to do sports this morning because Warner - first, we thought he was -- in rehab --
MCCORD: Found anything else? IMUS: Then, well, we thought he was missing. MCCORD: Yes. IMUS: And then, of course -- and then, of course, we think yesterday -- yesterday, he was kidnapped.
MCCORD: Yes. Abducted, son of a gun!
IMUS: And, today we have discovered that he had barricaded himself in his apartment --
(LAUGHING) MCCORD: Why? IMUS: And, he's holding hostages and is not coming out, so -- for some reason. MCCORD: OK. (LAUGHING) IMUS: Anyway -- Shut up, Lou.
LOU RUFINO, PROGRAM ENGINEER: You mean, those other two things weren't true?
MCCORD: Maybe, he's --
(LAUGHING) BARTLETT: Let's hope he gets out by Thanksgiving. IMUS: What else is in the news, Charles?
MCCORD: Several things, I-man. The Iraq exit, the mosque in a minute, here you go. President has -- there's a poll on the president's remarks. Most disapprove in a Gallup survey. Mr. Obama says he has no regrets about the comments he has made so far. There's a new poll out here in New York City over 6 in 10 remain opposed to the idea of a mosque in the current proposed location.
And, Governor Paterson still hoping to meet with the developer regarding maybe moving that location, and New York's archbishop weighs in, I-man, Timothy Dolan would like to find a new location. He's coming down on that side, and he says he has a major prayer, his word, for compromise. And, opponents and supporters are going to mark the 9th anniversary of the 9/11 attacks with competing rallies over the march, those against and those in favor. And, Nancy Pelosi has had something to say about it. She wants to know, who is funding the opposition -- IMUS: She wants to know what? MCCORD: -- not who is funding the mosque, who's funding the opposition?
IMUS: Oh, she wants to investigate people.
MCCORD: She wants to investigate people.
IMUS: She wants to turn herself into Joe Mccarthy, is that her deal? -- God! She's a horrid individual. Isn't she? (LAUGHING) MCCORD: A Joe Pelosi! IMUS: Whatever! What a wretched bag. My God! That's not necessary. MCCORD: Yes. That's not necessary. IMUS: She's just --
MCCORD: Let's just get back to --
IMUS: Stupid. Here are Lanny Davis' five favorite songs, Misty. It's unfortunate.
MCCORD: It's a beautiful song.
SMITH: I like that.
IMUS: Of course you like all of these songs that he likes, Charles.
RUFINO: It's Charles' list, right here.
IMUS: It's actually your list. (LAUGHING)
MCCORD: Chuck and Lanny's list.
IMUS: Lanny Davis and Charles McCord: Misty, Our Love Is Here To Stay, My Funny Valentine -- Oh my God!
MCCORD: These are classic.
IMUS: These are just --
MCCORD: These are great American song book. IMUS: This nearly Was Mine, and Bewitched Bothered and Bewildered. MCGUIRK: Aya-yay! IMUS: It's either your list or Bill White's list. It's 11 after the hour. Sports coming up with Larry King. Larry, what's ahead? (LAUGHING) BARTLETT: Well, Ringo, serial retiree Brett Favre is back practicing with the Vikings. He says this 20th season will be the last, unless, of course, he changes his mind.
IMUS: Yes. BARTLETT: Giants quarterback Eli Manning says he's in no pain after needing 12 stitches on Monday to close a cut on the left side of his head but yet he's still going to sit out the game against the Pittsburgh Steelers, Saturday night, suck it up, sissy. And, the Mets finally win one, and it only took 14 innings. And without the aid of their $11 million light heavy weight K-Rod. Those stories and more, you should keep it here where it is on IMUS IN THE MORNING sports.
IMUS: That's pretty good. It's almost professional, Larry.
BARTLETT: I'm a semi professional, I-man.
IMUS: Yes, and Sandra Smith has business news on the Fox Business Network. What is ahead, Sandra?
SMITH: Hey, good morning. What is ahead is so far is that GM is all the talk right now. Obviously, the company is looking to put bankruptcy behind it. It is finally, finally, filed for the initial public offering. It could happen as soon as October. We're told at this point, but it's not really known when or how much will take place here. But, the expectation is that through the IPO, GM will raise about $15 billion, so trying to put bankruptcy behind it and trying to get out from beneath the wing of the U.S. Government. And, Sears just reported earnings and the company led by billionaire Eddie Lampert and missed expectations, so K-Mart Store, Sears Store sales were down.
IMUS: All right, Sandra, thank you. It's 13 after the hour here on the IMUS IN THE MORNING program. Bernie has a briefing sponsored by PC Richard and Son. What is that, Bernie?
MCGUIRK: I don't know if I can do it -- I don't want to do it!
(LAUGHING) Now, forget the Iraq war. Big news, American Idol, they've -- it's not confirmed from Fox, but Stephen Tyler's band mate, the bassist told the star ledger of New York that the ink is dry on a contract. Steven Tyler will be a judge on American Idol for the tenth season coming up and nobody knows if Randy Jackson or Kara Dioguardi will be back. And, by the way, that's if Steven Tyler makes it. He apparently -- the other day fell off the stage again up in Toronto. And, hell, Joe Perry backed into him as they were playing the same song as they were performing, Love In An Elevator, but this time he fell down. He landed on his feet. The crowd helped him up.
IMUS: Maybe, they should perform in an elevator so these accidents don't happen.
MCGUIRK: Or put some foam around the stage for this guy, but Steven Tyler is okay, and he's going to be the new idol judge.
IMUS: And, they're not -- he's not long for 3:00 in the morning infomercials on -- you see Fred Thompson is selling something now. Did see those commercials?
IMUS: He wanted to be president. Well, He'd be as good as the dopes in there now, the last one we had. Ginger baker, speaking of that is 71 today. Remember from cream, Charles?
MCCORD: Yes. IMUS: Of course you don't remember.
MCCORD: Of course.
RUFINO: My Funny Valentine.
MCCORD: All over it.
IMUS: Dagen McDowell is coming up as well with the Fox Business Network news and all of that sort of thing. Lanny Davis, Chris Wallace, and David Boies are all just ahead. It is 15 after the hour. Rather than play one of Lanny Davis's five favorite sissy songs. MCCORD: All right. IMUS: Here is Ginger Baker and those guys. (LAUGHING) (MUSIC)
IMUS: Well, let me talk to you about Planet Fitness. Are you thinking about -- lot's of money lying around, thinking about what you can do to invest in something, you know? Why not Planet Fitness? It's a good idea. You may not know anything about this, then go to planetfitness.com.
Planet Fitness is a gym that attracts the average person. You don't need to be a muscle head to work out on Planet Fitness. You don't need to be a muscle head to buy into one, either. All you need is a desire to turn a quick profit with a company that knows how to do that.
Planet Fitness will set up your gym for you. Develop a marketing strategy. It actually has a track record of putting up some big numbers. How does an average of $1.7 million a year sound in sales? How does a profit of about a half a million. Oh man! And then think of the extra money you can make, Charles. (LAUGHING) MCCORD: No, there's no extra money you can make illegally, I-man. IMUS: Well, of course, there is. Planetfitness.com, check them out. This is not an offer to sell. Offerings are made by prospectus only, go to planetfitness.com.
IMUS: Time for a Fox Business Network update, here's Sandra Smith.
SMITH: Good morning, everybody. Here's your Fox Business Minute. Sears out with second quarter results, just moments ago. The retailer reporting an adjusted loss of 19 cents a share and revenue of $10.46 billion. Both the top and bottom line numbers coming in worse than expected. The same-store sales for the quarter were down 2.2 percent, and we also has second quarter earnings in from staples, the office supply retailer reporting an adjusted profit of 20 cents a share that was right in line with what analysts were looking for. Revenue was a little bit light coming in at $5.53 billion. The company for the year -- says for the year, these sales increasing in the single digits,over the last year.
And, investors are waiting another round of economic reports later this morning. Initial jobless claims are expected to fall slightly to 476,000 from the prior week. That reports due out at 8:30 a.m. Eastern time. And, we'll also get the index of leading economic indicators, which is expected to show some changes there. We'll have all of that for you, and a quick look at futures, IMUS IN THE MORNING continues, right now.
IMUS: It is 21 minutes after the hour. Charles, is Nat there?
MCCORD: He's at his position on the intercom.
IMUS: Good morning, Nat. I'm trying to talk to him on the air, Charles.
MCCORD: Oh, no. He doesn't have a microphone.
IMUS: Well, give him a microphone, you moron! Are microphones there?
MCCORD: Me? Give him a microphone?
IMUS: Yes. Somebody get him a microphone.
MCCORD: All right.
IMUS: Good all mighty.
NAT HORNE (F): Good morning.
IMUS: Don't good morning me. Here's what I want to know.
MCCORD: Oh, boy.
IMUS: What's the matter, Charles? MCCORD: Go ahead. What do you want to know?
IMUS: When you are running around with your little Mets tattoo, I assume you still have, right?
HORNE: Yes. I still have it.
IMUS: Who are you waving to?
HENTOFF: I'm not waving. I'm staging while talking to you.
IMUS: What is your job on this program, by the way?
HORNE: I'm your stage manager.
IMUS: Yes, and a very fine one, are you?
HORNE: Thank you.
IMUS: Except for this morning.
IMUS: What happened this morning?
HORNE: I am running around trying to help other people while doing my regular --
IMUS: Who you should be helping, you should be helping me.
HORNE: Yes, of course.
IMUS: A person with cancer.
MCCORD: Oh, my God!
HORNE: I wasn't aware, actually.
IMUS: It's 22 after the hour here on the IMUS IN THE MORNING program. Time for a little sports now because Warner is, I don't know where the hell. Warner barricaded in his apartment. That's why -- he has hostages. So, here with sports is sponsored by Peerless Boilers. They make America's best boiler. Get the beast out of your basement and put one of these in there. Here's Larry King. Good morning, Larry.
BARTLETT: Good morning, Ringo. Vikings quarterback Brett Favre on the third stop of his three-year retirement tour. He said yesterday at a press conference in Minnesota, this will be his last in the NFL, and is bat practicing with the team. Bret says he has high hopes for this season.
BRET FAVRE, PROFESSIONAL FOOTBALL PLAYER: I can't say I'm going to do anything different than I did last year.
BARTLETT: Comforting to know, we can count on more overtime interceptions, more picks, and more wrangler jeans ads.
UNIDENTIFIED SPEAKER: I'm comfortable in wrangler, real comfortable.
BARTLETT: Say what you want about Brett Favre, but that man has a keester like a $12 pizza. You have to wonder why we waited to tell the team, who already played a pre-season game and, Jackson practicing waiting for his shot and this pant load decides to come out of retirement, again.
There's a condo in Boca and table at den is a early bird with your name on it, Bret -- use it. Nothing worse than somebody who just keeps going on and on and on and on -- refusing to acknowledge, it's just time to get out! New York Giants quarterback Eli Manning insists he's feeling fine after suffering a gash on the left side of his melon Monday night from team mate Brandon Jacobs. However, coach, Tom Coughlin is concerned that wearing a helmet might break the stitches or irritate the wound. Manning however says he's okay.
ELI MANNING, PROFESSIONAL FOOTBALL PLAYER: I went home and -- you know, felt pretty good the next day when I woke up and you know I feel normal right now.
BARTLETT: There's a man who you should probably consider wearing a helmet full-time -- A hockey helmet. And when you have guys on your own team hurting you, it's time to start thinking about a career change. And, finally, Ringo, the Mets won last night in Houston over the Astros, 3-2 in 14 innings, a real nail-biter. Shockingly, they were able to pull off the victory without the services of their $11 million man, K-Rod, who tore a ligament in his right thumb after punching his father-in-law in the face. Officially, making his record 1 and 0 with a TKO in the first round. That's sports. I'm Larry King. Back to you, Ringo.
IMUS: You must have other baseball scores --
BARTLETT: Well, Actually -- IMUS: -- Tampa Bay and Boston --
BARTLETT: Tampa Bay won.
IMUS: Yankees do --
BARTLETT: Well, if you shut up, I'll tell you.
IMUS: Well, no -- but you -- you signed off. You weren't going to tell me anything.
BARTLETT: I'm just trying to keep it peppy, there. IMUS: OK. BARTLETT: Tampa Bay won over the Rangers, 8-6. Yankees defeated the Tigers, 9-5. Braves over the Nationals, 3-2, and Boston 7-5 over the Angels.
IMUS: Yes, any other scores?
BARTLETT: Well, there were no games scheduled in the WNBA last night.
IMUS: About the tennis tournament in Cincinnati, did Nadal win?
BARTLETT: Ummm - No. I don't know. Yes. I'm still looking at the hockey scores.
IMUS: It's 25 after the hour. Time for the Fox Business Network business report and here with that is our little friend Dagen McDowell. Good morning, Dagen.
MCDOWELL: Good morning, sir.
IMUS: How are you?
IMUS: What's going on? MCDOWELL: So, Hewlett-Packard comes out with its earnings later today, and the company is going to give an update on its search for a new CEO. At the same time, the Wall Street Journal has new details from the camp over ex-CEO, Mark Hurd about what went down with that woman, Jodie Fisher and --
IMUS: Who is Jodie Fisher? What was her story?
MCDOWELL: Well, she was at the company. She was like a greeter at corporate events.
IMUS: Where did she come from?
MCDOWELL: She came -- what do you mean, where did she come from? -- She's a woman with --
IMUS: What did she do before she works at Hewlett-Packard?
MCDOWELL: She was a movie actress.
IMUS: OK. MCDOWELL: Here are some of her movies, Body Of Influence-2 , Sheer Passion , Intimate Obsession. She posed for Playboy when she was in college. I've seen the pictures. She's pretty good looking.
MCDOWELL: So, here -- IMUS: It's my theory all women are actresses. Some of you just get paid for it, so -- anyway go ahead. But that is what I digress.
MCCORD: Yes. MCDOWELL: That's a very good point.
IMUS: So, she came to Hewlett-Packard.
MCDOWELL: Right. IMUS: And did what?
MCDOWELL: She was a greeter at corporate events.
IMUS: OK. MCDOWELL: And to what Mark Hurd's camp is telling the Wall Street Journal, is here's a couple things: The woman's work was cut back for the company because the economy. He only had dinner with her sometimes alone but with others. He only met her 12 times over two years. He settled sexual harassment claims with her because the amount of money was small compared to fighting it. And here's the kicker, he told acquaintances, did I do anything to sexually advance the relationship? No. This woman and I never had sex. There you go.