The First Look - Janet Freund, Bloomberg News

Welcome back into the financial exchange trucks out of filling in for very Armstrong along side of June night. And joining us now we have Janet throwing and from Bloomberg News on the line with those Janet how are you this morning. Doing pretty well so. Looking at some of the news that came out on Friday obviously the biggest piece that we got where those unemployment numbers for December how. What was your interpretation of those numbers on Friday. I -- the December nonfarm payroll came in at a 155000. Which has now hired that person be upset about an entity 2000. Comment November's report without a revised upward. I think the report was good news for the market and showing net job increases are still on trend to manufacturing. With quite strong that's another bright spot. Absolutely and one other piece of information that came out last week actually on Thursday and a big surprise some people. About how optimistic the Fed was was the Fed came out. And said that some of their members were we're discussing the possibility of ending QE3. Before the end of the year so what are your thoughts on this first I guess about whether or not they actually will do it. And second what does it say about our economy that there even considering this. I think that it says the economy is a bit stronger and maybe the market think -- because. The reaction that we got that news and I think the Fed needs to be very careful here. And I and on the flip side I don't think the market (%expletive) they're they've grown too dependent on the Fed's purchases and that we might have to -- You know come back on that dependent and start going on fundamentals again. Yeah and and I don't know about you but I've found it great actually that the day after the Fed came out and said this essence he actually moved to its highest point five years who was it was really nice for me at least. To see the market. Take that in stride and say the Fed is going to be moving out of this economy eventually but. We we can handle that so it was nice to see the market react positively don't you think. I agree I think that the initial shock -- it was what we thought Thursday and then. And then again the payrolls just confirming that he'd been working month of positive trend here. Absolutely and and moving on to today's news now. The big story coming out this morning is that Bank of America has announced this multi billion dollar settlement. With Fannie Mae so what do you make of this deal exactly. -- well according to do a statement released by the company that settlement that band's label that all the outstanding claims for our. Content -- scene between the two companies I think the bank has reserves to cover a good deal of the ten billion maybe we'll see a fourth quarter first quarter tropic. I think a lot lot of reserves there are in place there as. -- hopefully these agreements can help Bank of America moved towards. Getting past the mortgage issue and investors can start focusing on their underlying earnings potential. -- the company has done a nice job of turning themselves around over the last year the stock price. Obviously has followed suit but you know looking now just at the broad market US and as I mentioned a couple minutes ago. At its highest level since before the financial crisis so. What are your expectations for the rest of 2013 now do you think we can continue this trend. Or do you think they're still gonna be some bumps in the road. Particularly maybe over the next six months or so as we try to shake through -- really pushed through the remnants of this fiscal cliff deal. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- And that extra to protect -- architect make -- a couple months to digest. On the positive side that housing. -- -- employment and have been positive and -- looks like it's going to continue now. -- we should get exports from the -- actors and and I eventually could in principle. Digest and and digested its payroll increase taxes and and move forward and their spending. And and one last point we duet earnings season kicking off tomorrow would alcohol. What are your expectations for fourth quarter earnings. I think that -- LA. That to turn around here a lot is that supposed that yet are estimated expense Bloomberg and then there's. It appeared that holiday selling was not quite as bad as -- so. It would pressuring name names might find some support on and like he names on the -- front you know a lot of technology and electronic gadgets were purchased. And you know about that that's great for component makers it's great for at the actual device makers. Com banking may continue to face some challenges including more layoffs cost cuts. Com for industrial China and emerging markets group will be key there. So. I think you're on it and them -- itself has potential. That the quarter has potential for four up better than expected results. With you know at some some focus on China and emerging market -- -- -- All right we'll Janet I appreciate it coming all of us this morning and certainly left to keep an eye out for some of those things over the next few weeks to see how they unfold. All right that was Janet -- from Bloomberg News and again the big news out today if you haven't heard about it yet. Bank of America has announced 810 point six billion dollar settlement. With Fannie Mae to settle some of the claims there we are going to be talking with some folks from the Wall Street Journal a little bit later on. Coming up next we are gonna dig into that story a little bit as well as getting back to our tax question that they text us at 68680. Let us know do you expect to get money back on your tax return this year. Or do you expect to get hit with a big bill from the IRS that's next right here on the financial exchange.