Money & Sports
>> welcome back. national football league teams have been known to tap banks, car manufacturers, airlines, all to help defray the multi-million dollar costs of building new stadiums. now high school football teams are following their lead as millions in donations flow in from wealthy booster clubs and local businesses. what ever happened to the good old bake sale? for this week’s “money & sports,” we are joined by mike buteau out of our atlanta newsroom. how much money do you need to field a high school football team?
>> apparently it depends on how good you want to be and what field you want to play on and what score board you want. some teams throughout the the hot places in the country for high school football, schools are raising millions of dollars. one school in arkansas raised $2.7 million, put in a new artificial field, a score board with instant replay. as you suggested, this money isn’t coming from bake sales and cookie sales.
>> instant replay in high school football? wow.
>> yes.
>> any opposition to the amount of spending that goes on here?
>> a lot of these schools and parents that give up the money and they go to the local businesses and the local businesses are happy to support it, these are winning programs. these are programs that have won 10, 15, sometimes as many as 20 state championships so the people are looking at it as a good cause of the a lot of high school games are getting on espn and other cable networks so if you have a good program, that raises your exposure, gets you a chance to get on espn or national tv, might get your kid a chance to get a free college education so parents look at it as money well spent.
>> switching gears, here, new zealand named the host of the 2011 rugby world cub. cup. what other countries were in the running?
>> japan and south africa were the two countries they beat out. japan was favored, but new zealand, a strong area for rugby, won out for 2011. many years down the road but the people in new zealand very happy about being selected.
>> can you tell me about the economic impact new zealand is expected to have from this?
>> it’s a little early to tell but they say by 2007 and 2008 they’ll start to see new roads being built. they’ll be putting money into the stadium. but when you look at the 2003 world cup in australia, that brought in about $280 million towards the economy. new zealand officials are expecting about 60,000 visitors for this so it’s a a big deal. the world cup of rugby is the third most watched sport or championship when you look at the tv audience.
>> in cycling, lance armstrong has retired but his popularity has helped create a new race in california. can you give us the details on that?
>> the tour of california is essentially what it’s called, not the tour de california, like the tour de france. this race will start in february. lance armstrong will not be racing in it. his team will most likely be involved in it, the discovery channel team. but there will be a german team, t-mobile, another german team, big-time cycling team, expecting 130 racers and california is a very big area in the country for cycling.
>> from what we understand, there have been other cycling races in the u.s. there that have failed. why should any other race be different?
>> the tour dupont was another race that didn’t take off very well but that was pre-lance armstrong and statistics since lance armstrong started winning the tour de france, interest has gone up 20%. california is a big market for cycling.
>> why isn’t lance going to show up?
>> he’s retired. he’s happy. he says, i’ve had enough. he’s going to stay retired. he might show up.
>> i expected you to say he was hanging out with sheryl crow, mike.
>> well, that, too.
>> we’ll leave it there.
>> thank you, mike. bloomberg’s mike buteau from our atlanta bureau. we’ll check world and national news after a quick break. and if diamonds are a girl’s best friend, what does that make a diamond made for russia’s catherine the great? learn what happened, next.
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Listen Interview: AMF Mutual Funds---Petrosinelli, David---Fund Manager
>> welcome back to “after the bell.” we had comments from federal reserve bank of chicago president michael moscow today. he said further removal of policy acome dation is needed and that interest rate rises may be needed after neutral is reached. he also expects long-run inflation expectations to stay contained. meanwhile, the conference board says its index of leading indicators rose for the first time in four months thanks to a stronger job market and the reconstruction efforts in the gulf of mexico. l.e.i. came in above forecasts, climbing .9% in october. september’s numbers were revised lower to a drop of .8%. the l.e.i. numbers try to gauge economic conditions in the next three to six mos, and today’s data suggests growth remains strong especially with the drop in jobless claims and a pickup in manufacturing activity. taking a look at prices were higher today, yoldsthe treasuries in response to this day tay ta coming down. traders say it’s also because of the expectation the sfed keeping prices under control. as far as currencies, the dollar was lower against the yen, stronger versus the euro and british pound. european central bank president jean-claude trichet says he does not expect to embark on a series of rate increases, so that dampened speculation the e.c.b. will raise rates at its next meeting in december. the weak euro did not prevent gold from moving even closer to $500 an ounce. gold futures for december delivery settling at $489 and 50 cents an ounce. that is a gain of just over a half a percent, and the biggest, highest closing price in almost 18 years. joining us now to look at the outlook for the fixed-income market ahead of tomorrow’s release of the november fomc minutes is david petrosinelli. he is vice president and portfolio manager at a.m.f. mutual funds. david helps manage about $4 billion, and he joins us from our studio in chicago. hi, david.
>> good afternoon, laurie. how are you?
>> fine, thank you. treasuries rose today coming off back-to-back weekly gains.
>> sure.
>> investors seem satisfied inflation is in check. any chance of a surprise with tomorrow’s minutes?
>> i don’t think so. a couple things to keep an eye on. a lot’s been made in the past two texts of the fed meeting about what are the effects of katrina, the dislocation of 2005 economically and how does this translate or matriculate into the 2006 numbers? so, i pay attention to that. i would also look for any indication the fed makes an inference that interest rates are having some effect on the economy. but in equity markets of surprise, i don’t think so. i think the sfed right on course.
>> what do you make of michael moscow’s recent comments that the fed might have to raise rates beyond the point of neutrality?
>> stenlt. i think consistent with a fed that really has to keep up credibility to fight on the inflation front. remember, katrina, if nothing else, is also inflationary because there will be a lot of dollars chasing those goods, those core input goods―oil, lumber, and materials that will help rebuild the area. so, the fed has to be very, very careful not to let that become an inflationary environment.
>> interest rate futures suggest the fed will boost rates two more times. do you think 4.7% is the right place to pause?
>> i think that’s doable. i would not be surprised to see it go a bit higher. again, i think that is maybe nor the moscow camp of having more of a credibility to keep up with the investor community and also trying to ford off whatever inflationary threat there will be from katrina.
>> and let me get your outlook on the fixed-income market , first by way of the treasury yield curve. do you see a continued flattenening? will we invert?
>> it’s tough. you’re constructively inverted now about 10 basis points across the curve. it wouldn’t surprise me. twos to 10’s, a classic bench with the curve, has averaged about 95 basis points over the past 25 years. i think what will likely happen, the fed will raise the rates two to three more times. i think the whole curve including short term and the body in longer-term rates will probably follow a fed funds lead, if you wil
