More on California School Shooting; A Look at Jack Lew; China Trade Way Up
ALI VELSHI, CNN CHIEF BUSINESS CORRESPONDENT: From the CNNMoney Newsroom in New York, I'm Ali Velshi. This is "Your Money." Jack Lew is a perfect pick for Treasury right now. China trades goes way up. What you need to know about the debt ceiling and California teachers say no to guns. But, first, President Obama has just nominated Jacob "Jack" Lew to be his next treasury secretary. Lew has been the White House chief of staff and he's described as a budget wonk and a consummate Washington insider. Lew's also done two stints at the head of the Office of Management and Budget, the OMB, under Presidents Obama and Clinton. An old colleague of his from the OMB told me why the experience there makes him the perfect choice for the job right now.</s>KENNETH BAER, MANAGING DIRECTOR, THE HARBOUR GROUP: OMB has been described as the central nervous system of the U.S. federal government. Everything of consequence goes through it. So, it coordinates the entire executive branch for the president. It's almost like the chief operating officer role. So, in that, Jack has been exposed to every type of policy concern, every issue, every regulation. And, you know, it's a really -- it's a huge gamut of issues and terrain that he is actually an expert on. It's really amazing, the depth he can bring on a number of issues, especially on economic policy.</s>VELSHI: So, that makes Lew more than qualified to negotiate the upcoming debt debates and the spending cuts with Republicans in Congress, but apparently, Wall Street doesn't like him so much. So, who cares what Wall Street thinks? To many Americans, that should actually make him more palatable. Four years ago, the president made the right choice with Tim Geithner at Treasury because the world was teetering on edge of financial collapse. Geithner knew the ins and outs of Wall Street and commercial banks and global credit, so he could hit the ground running. Today, the debate is about the debt ceiling, sequester and budgets. No learning curve there for Lew. I don't know if he's the best pick for the long-term, but he sure is qualified to take on the budget battles that are about to engulf Washington right now. All right, on the money menu, China sees trade soar in December. Now, before you change the channel or wonder, why do I care, understand that China's gain is a sign that things are picking up right here in the United States. China exports jumped 14 percent at the end of the year compared to 12 months ago. That's important because China's economy has been slowing down for seven quarters largely because of economic malaise in Europe and here in America, which of two of China's biggest customers. Now, I have been saying things are starting to look up for the U.S. economy in 2013 and a boost in imports from China is one of the indicators that tend to confirm the sentiment. But the one thing that could ruin this is the upcoming debt ceiling battle on Capitol Hill. The last time around, Democrats and Republicans resorted to scorched-earth tactics that cost the U.S. its iron-clad credit rating. The markets tanked and the economy suffered, as you recall. This time around, President Obama will want the tax revenue hikes to any spending cuts that Republicans insist on. Now, to do that, lawmakers would have to tap into some politically sensitive tax deductions. Now, for some perspective, the deductions and exclusions cost the government $1.1 trillion a year and most of those cuts benefit individuals, especially those in the middle class. It's something you need to know as the debt ceiling debates unfolds and it's something we will be watching for in coming months. All right, finally, the backlash to the gun industry over last month's mass shooting at an elementary school in Connecticut is growing. Yesterday, it was Walmart that took a beating over its initial decision to dodge the White House's invitation to talk about guns today. Now, one of the largest public pension funds out there, the one for California school teachers says it will divest itself of investments in makers of firearms and ammunition that are illegal to purchase or own in the state of California which has some of the toughest gun laws in the country. Christine Romans has been following this story. Christine, what's the latest?</s>CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Ali, the largest retirement fund for teachers in the world, the California teachers' retirement system, will now sell its stock in gun manufacturers. You might recall that after the Newtown shooting teachers in California were shocked to learn that their investments, their retirement investments, were in the very manufacturer of the gun used to kill those students and teachers in Newtown, Connecticut. Here's what CalSTRS says now. "This latest incident which occurred at a school and involved fellow educators and the children we cherish is a tipping point for CalSTRS and speaks to the correctness of our actions. "This is not only the right thing to do, but positions us to deal with the financial pressures we anticipate this sector of the industry will face." In fact, Ali, some of those gun manufacturing stocks have been down today, down because you've got Washington very focused now on these task force hearings about what to do about gun violence in America. Ali?</s>VELSHI: All right, Christine, thanks. Christine, stayed very focused on the issue of money and guns. For more in-depth coverage, tune in to "Your Money" this weekend, Saturday 1:00 p.m. Eastern, Sunday 3:00 p.m.,, Eastern. From the CNN Money Newsroom in New York, that's it for me. Same time tomorrow. I'm out.