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tv   Power Lunch  CNBC  August 6, 2014 1:00pm-2:01pm EDT

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here. it's not done. >> disney. it's not done going up. this stock is going absolutely much higher. >> josh brown, last chance. >> i like freeport. buy it >>. all right. thanks, guys, see you at 5 for more "fast money." "power lunch" begins right now. halftime is over. the second half of your trading day begins now. >> melissa, thank you very much. walgreens decides to stay right here in the usa. no inversion for them, but the stock is getting punished today. down. we'll talk about that one. goldman sachs making a big call on europe today. we will have it for you in two minutes. another inventory killer in the housing market. it's a new trend for homeowners, and it may put potential buyers out of the business. sue is at the nyse, as stocks move a little bit higher today, but we start here in englewood classifies with mary thompson reporting on walgreens. this stock is getting hit.
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>> you are right, tyler. expectations were that after buying 55% of europe's allianz, walgreens would move the headquarters to switzerland or the uk where corporate taxes are lower. while the firm is paying $15 billion in stock and cash for the rest of the european pharmacy, it will remain head quartered in illinois, where it exto pay a tax rate in the high 120% range. accounting expert estimates walgreens could have saved $2 billion in taxes over four years by rye domiciling overseas, but on a conference call, the ceo saying the board carefully reviewed doing a tax inversion, but decided it wasn't in the best interest of shareholders. >> while we fully understand and considered the significant finance benefits when weighed against the risks, the company and board decided it was not if
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the right course of action. >> democrats, including president obama are exploring ways to stop firms from inverting. while a walgreens spokesman said political risk factored into the decision, a bigger factor was whether the i.r.s. would have approved the inversion given the original deal to buy -- didn't call for it. the combined company will have about 11,000 stores in ten countries, the company is also looking to cut a billion in costs over the next three years and will turn capital to shareholders through a buyback plan and 7% increase in dividend. back to you, sue. >> thank you very much, mary. let's get you caught up on the markets. right now the dow jones industrial average is up modestly about 34 points, s&p up almost 4. the nasdaq is up 16 on the trading session. seema mody is uptown at the nasdaq bob pisani joins me here.
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>> we had a lousy open because we had a lousy lead-in. these are all off their lows, but it wasn't a good week. here in the united states, we had a flight to safety trades, bonds up, gold was up. tobacco stocks, but it slowly turned around. we had a loudy open, but bottomeded right away. there's a lot of confusion about what's going on in ukraine, where there is a threat of any kind of imminent action. is a i want to know the dollar index dropped about an hour ago. the dollar index has been a
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monster for the last month. it's been a flight to safety. they've been moving into the understand. so the dollar index has been very strong recently. there's your dallas index, sue. finally a turnaround in oil stocks. >> bob. thank you very much. i'll see you in a bit. shaking it off after the earlier losses. you've got to wonder if this trend will hole. hold. i want to point out that the nasdaq composite still trading, but again some of yesterday's losers are today's winners.
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a combination outsourcing. many times outsourcing so that's one of the week spots a green day for the nasdaq. >> thank you very much, seema. by lackstone group, kellogg is currently trading up about 1.5% while blackstone is up about 1%. sue, back to. goldman sachs telling
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clients it is backing away from the places like portugal. nowi time to say audios i don't and all reef dinneri, she tried to say. ben, how does the market foo feel to you yesterday you saw the bottom drop out at 1925. this morning we hit 934 this morning. 1911 on the car the volume is
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okay, but again i'm not sees any great convention. >> away, weigh in on that. how do you feel about it now? >> there may well by more to go. but i think along the way. i think that's encouraging. there was no -- and you want, you know, what does it fik like out there? though the market has very solve wedding -- so we've more people taking vang. and i think that i think we see this is as a buys opportunity.
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expect for one oil field we're going to continue to see these guys grow. of i think you'll see the same kind of move as we see a stabilization and great earnings in that gripe make money. they're still going to make money. that's our leading group today.
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the russell 200, what will you be watching four? >> because it is august, lack of participation, you have to keep an i'd on the technical levels. now that we have europe closed intraday, the interest will be geopolitical in nature, but for now we'll wade for the. thank you, gentlemen. good to see you again. well, reporting a 6% rise in this on higher person -- and the
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sprint t mobile news increases options, quote. so dish is currently trading up. sue, back to you. thank you, morgan. a growing number of home buyers are opting not to sell, but is looking at what it means and also tight inventory. >> it means even fewer listing in this already supplied constrain, because that's what pushing home prices higher and in tern making it ever more lucrative shelly and -- in suburban baltimore.
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it's four times the size of their last home. that home they are now renting out. >> it wasn't worth it to take that $30,000 hit when we could get someone to rent the property, have them pay down the mortga mortgage. >> $30,000, that's how far under water they were. rather than take the hit, they took the rent, like so many others are doing across the country. >> now as people are starting to move and to sell, individuals they are also turning into landlords by choice. that was definitely having a dent in the inventory numbers. >> reporter: rents are also rising. that was enough to convince the ballentines that being landlords is worth it. >> i was probably more stressed than my wife. >> three months later, they agree, it was the right choice. even after putting 20% down on the new house and now carrying two mortgages. >> we just cut out all the nonessentials. we were able to stockpile the down payment quicker so we could
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move out and move into this lovely home. and then, of course, get the rental income on top of that. if you want more information about how this relates to your taxes, that's online. it is the battle of the rid all-stars when it comes to research and development. which company creates the best shareholder value? we look at the defense sector, northrop grumman versus lockheed martin, and a paypal message for young people. pap papal, not pay pal. i thought we were talking about paypal. we will have a social media expert what hi thinks about that.
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after byrne styrene upgraded and raised its price target to 33 from 29, calling the company an under-appreciated value stock, so shares are currently trading up just about 2% for the year the stock is down about 9%, though, sue, back to you. >> thank you, morgan, very much. sprint is abandoning its bid to buy t mobile citing concerns
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about gaining regulatory approval. separately francis iliad is considering improving its bid. bank of america upgraded, and the bank sits it will increase the quarterly dividend to five cents a share. the first dividend hike in seven years. groupon shares tumbling after the online deal company released disappointing quarterly numbers. it's really getting hit hard today. cnbc is now going to highlight 50 publicly traded companies whose spending on research and development creates the greatest value for shareholders. you can see the full list at cnbc.com/rq50. which companies are doing a better job than others? dom any chu is looking at defense, where r&d is clearly highly, highly -- >> front and center. when it comes to that kind of spending, there is those that spend wide -- the professor is
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from washington university at st. louis. she took a lot at these methodologies. we're looking at lockheed martin and northrop grumman. lockheed spend about a% and a half of sales. northrop grumman about $507 million or about 2% of sales. according to the research a 10% bump in spending could lead to an additional $94 million in sales. they would have to spend about dlsh now, compare that with a 10% pump to northrop's budget. if they spend about $50 million more they could generate an estimated $380 million boost.
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that's a huge comparison. over the lost term, it's been better performing stock. you can see there northrop the white line versus lockheed, the yellow line. lockheed is america's biggest government contractor due in mo small part to the f-35 joint strike fighter. this is the most expensive weapons system ever and home to the famed skunkworks division. is works on hyper-sonic planes now. northrop is one biggest -- following on a heritage of making manned aircraft like the a-10 thunder did bolt, and the b-2 stealth bomber. both companies have great technological advancements to their name, but at least according to knott's ranks northrop grumman is the more productive r&d spender overall, this is one factor that some
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investors maybe even value investors can look for to determine a company could be an attractive investment. go to increased sales to increase -- >> it's not just sales, not just expenses, we want with drill down on what they're spending on and how effectively they're doing it. >> thanks, guys. the ceo of the cleveland clinic and ceo of medtronic, we have them here on "power lunch." they're both coming up. also are both dealing with major issues today. ebola, and on medtronic's plate, inversion. we have a lot to talk about, coming up. plus -- >> coming up. >> we are the founders of lume nation.com. >> can these guys survive the competitive floral landscape? >> i think it will be pretty challenge to gain significant market share. >> stay tuned to vote. are you in or are you out on this week's start-up? go to cnbc.com/vote right now,
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siemens location here has just received a major order of wind turbines. it puts a huge smile on my face. cause i'm like, 'this is what we do.' the fact that iowa is leading the way in wind energy, i'm so proud, like, it's just amazing. welcome back to "power lunch." i'm morgan brennan. check on you nuskin, the stock plummeting as it reported a 73% drop in second quarter profit. this as costs jumped and sales in china, which is the biggest market, fell 12%. that stock is currently trading down just about 22%.
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herbalife is also following that stock. down just over 1.5%. time for the power pitch. you see them, these beautiful flowers, they're lovely. interest preneuros get 60 seconds to make their pitch, and then you get to vote if you are in or out. get ready a gone to cnbc.c cnbc.com/flashvote now. power pitch time. i'm mandy drury. in a moment's time we'll be watching today's power pitch. get out your phones and log-on to cnbc.com/vote and give this an a, b, c, d or f. get ready now. this today's pitch.
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well got tired of seeing the came cookie cutter design and insane prizes, having to pay they junk service fees. at the end of the day we wented up with something that delivered in the box and looked nothing like we saw on the internet. >> we created bloomnation.com, the world's first online floral marketplace that brings the country's best top local florists in an easy to use site. what you see is what you finally get, because everything you see was uploaded and designed by that local florist. they'll even send you a picture of it going out so you can rest assured. >> we have -- anywhere from big cities like new york to small towns in georgia. by cutting out the middle man, you get the best flowers at the
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best price. >> okay. the power pitch panel we have from san francis genty lefcourt she's at free-style capital. she advises consumer internet companies. she founded the weddingchannel.com later acquired by the knot for $19 million. and eurie kim, that is at forerunner. before this she worked at bain capital and castanea partner. >> and kent bennett focuses on tech-enabled service model. some investments include -- and also food subscription service blue apron. graphy to have you with us. jenny, kick it off. >> how much does it cost to acquire a customer and the lifetime value of a
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bloomnation -- >> we don't spend any paid acquisition on acquiring customers. what we do is give them web sites and social media stores that can acquire of customers for themselves. >> how do you ensure a high level of quality and service across the entire experience? >> when we first started we actually met most of the local florists. now they sign up themselves. we go through a lot of yelp reviews, but more importantly -- >> i've never sent anyone flowers and then call me to complain. is this something that's already pretty good a bit better. >> it's a huge paid in point. now with the emergence of social media, texting pictures, people are able to see the photos of the products they're getting and they're just more happy. do you envision any other revenue sources? >> absolutely. there's supplies for the flor t
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florists have become a big area for us to focus on. the vases add flowers themselves from the grower is a huge market for us to tap into >> and you also accept bitcoin? >> a larger percentage of our user base, is bitcoin niche they're a unique small niche group supportive of the business dis -- and we're the first fluorsite to accept it. >> are you in or out on bloomnation? this includes you, the viewers. go to your computer and vote live. to say whether you are in or out. >> i think it faces a lot of competition. there are a lot of startups also trying to disrupt this try. i think it's going to be pretty challenging to gain significant market share. that combined with a 10% transaction fee leads me to believe that bloomnation is not going to become a big valuable
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company. i'm out. >> you're out. >> what about you eurie. >> while i'm worried about the 10% transaction fee and it's not enough for you to spend on marketing and customer acquisition, i do feel that any service that allows every part of the value chain to improve, for you guys it's the customer, it's the florist and the receiver of the flowers, i think that's always a great proposition. i feel like you're going to figure it out, so i'm in. >> i have a bouquet sitting on my kitchen table that i ordered this weekend through you. they're gorgeous. i can vouch for the service and would encourage my friends to use it. however, i do feel nervous for you. crier competitors are charging five times as much commission for you. i think they'll use that to outspend you massively and crowd out any is it mine share. so sadly i'm out. >> guys, your reaction? >> we agree there's definitely challenges. the big gorillas have a lot of money to spend on consumer
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acquisition. >> we have fit the retch, but so far zero acquisition costs, if we get the florists to support something with an antiquated solution which they drastically dislike, they become our marketers for us. >> for our panelists and, our live voting is about to close. thank you, viewers for your in or out. >> all right. well, two of the experts were out, one was in. the vote is closed. there you see it. it is split right down the middle. 49% say they are in on bloomnation. 51% say they would be out. i want to look again at the grading from our viewer vote on how bloomnation fareed regarding their power pitch. you guys are tough graders. we have seen this every week, really tough greatest. 16% gave them an a, 6% a b, 9% a c, 7% a d, but 62% didn't like the pitch at all.
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we have to look at how we're letting them pitch. maybe we need to look at that a bit. wow, sue. >> i think that's too hard. >> they're pretty flowers. >> they're beautiful. i think those should go home to your beautiful why jo. >> somebody may have a claim on them already. >> she already -- she always reminds me of sunshine. they're perfect for her. let's look at the metals markets. see where gold is finishing up the trading session. copper has been in focus today. it was up considerableably yesterday, it's given it all back today. gold is up almost 23 bucks on the trading session just under a 2% move. to interest rates now and rick santelli who is tracking the action. ricky? >> yes, this was the center of the universe earlier. look at an intraday chart of 10s, we hit that sell stops probably, but everything changed. we crept back up a bit. we're closed unchanged.
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why is this area so important? you see the left side of this chart starting on the 27th? that low? that's the 28th. it's 244 and change, low yield close of the year. technically it doesn't get more exciting than this. will it or will it got not go there? now let's shift gears a bit. and look at some foreign exchange. a lot of talk about the dollar/yen today. i will tell you this. you see that downdraft? that's the dollar. it's a dollar/yen. that does correlate with the fact we had that drop in interest rates. most of the time the correlation is if rates are down, the dollar is down against the yen, so at least it's in the right direction. let's stick with the currencies. look at the euro versus the dallas, cover at the lowest yield since september. but we have a meeting tomorrow. look at the pound versus the dollar. wow, has that come off, and of course so does basic of japan. we'll have a lot to talk about
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in about 20 hours. sue, back to you. >> rick, appreciate it. coming up two ceos on the forefront of their industries, weigh in on what's driving value and health care, plus their thoughts on ebola and tax inversion. we'll tackle it all for you. >> do you think wall greens made the right decision by saling no to a tax inversion and keeping their headquarters here in the u.s. that's our question of the day. go to finance.yahoo.com. back in two. there's a gap out there. that's keeping you from the healthcare you deserve. at humana, we believe the gap will close when healthcare changes. when frustration and paperwork decrease. when healthcare becomes simpler. so let's do it. let's simplify healthcare. let's close the gap between people and care.
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welcome back to "power lunch." looking for a correction -- how about in utilities? the worst-performing sector in the s&p 500 at its session lows, the sector down about 9.8% from the highs on june 30th. leading the way downward, next era energy, nisource, pepsico, and more. we showed it a moment ago, rick did, versus the yen. it happened just after noon. sarah eisen with more on what
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may have happened. >> everybody is talking about this move, tyler. it's important, when you see a move like this in sdwlar/yen, it gets people talking. it would take a really bick fat finger to move the currency market. the market is still nervous. as rick mentioned, you saw in euro/dollar, you saw it in other. when you see that weaken, it could mean something for stocks obviously in this market is still pretty nervous, sue. >> sara, thank you very much. appreciate it. we're also watching health care dominating the headlines with concerns about tax inversions and ebola. joining us, omar ishrak, and toby cosgrove, the ceo of the
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cleveland clinic. they are both in minneapolis for the piper jahvid ray heartland summit. we'll talk with those we're goods to start with the controversy over inversions. sir, you know, walgreens just nixed that idea. what about medtronics and your plan with covidien? maybe it's different for walgreen? they're more of a consumer, whereas medtronic is not. does it matter what kind of company you are when you plan to do an inversion? >> look, i don't want to make a general statement about inversion regards different companies. i do know for us, the structure with covidien was first and primarily driven by strategy from a health care perspective, in that together we could provide more value, and be more effect i have combination. once we determined that, then we assessed what is the most
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efficient structure through which we can operate as a company. a lot of that has to do with investment back in the u.s. that's the way we structured the transaction. there was a note put out by a leading firm on wall street saying they're obvious giving it a 60% chance of closing. can you give us an update on where we are in that process? >> we are progress iing? our regulatory approval process, both in the u.s. and around the world. that's taking its normal course. we as far as we're concerned, all those measures are on tracks. >> dr. cosgrove, a pleasure to have you here as well. i wanted to ask you your reaction to some of the media coverage we've had on the ebola
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virus. are you worried about it spreading, first of all? and do you think the media is making too much of it? >> well, we have no evidence that we think this is going to spread. as you know, ebola is one of those things that is spread by direct contact particularly with fluids, and they are being very, very careful at emory. they have an organization specifically designed to look after these highly infectious diseases. the cdc has done a terrific job in monitoring this disease, and we also have to recognize that we're now dealing with a global health care, ands much as we have a global economy, we have global health care as well. sars, for example, is something that may affect us, and ebola will as well. we have to be ready.
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>> i was going to ask you about mers. >> we have to recognize, for example, ebola burns out with a quarantine, and so we have to contain the disease over a period of time. eventually we'll learn how dao deal with it in terms of cure or prevention hopefully. it's something that the cdc talks about all the time. they are really on top of this as far as protecting our country is concerned. >> i'm going to turn it over to my colleague, meg. >> let's talk about another big issue. that's the affordable care act and how that's changing both how you do both your businesses. you did an alliance with sanofi earlier. will we fogius -- will there be
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more alliances like the one you did with sanofi? >> i think there will be. i think focusing on outcome solely is not enough. you have to determine the lowest cost for a given outcome. if you can improve the outcome, i think that's even better, but the cost and outcome have to go together. as you look at outcomes, collaborations between different stakeholders can only help us achieve that goal. so people with different expertise, getting together with a common goal, being fairly transparent or actually completely transparent, and achieving that common goal is the way in which we can really make a real difference. >> in addition to those kinds of alliances, how is the -- are you seeing more customers with insurance? will that actually improve your business?
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>> we have one step removed from that. we haven't seen a dramatic increase. the -- that doesn't necessarily translate into the types of -- that we provide, which is mostly late stage. we haven't seen that connection yet. i think the focus in the affordable care act, in encouraging, looking at outcomes and overall value, i think that's where it will make a bigger difference. where the payment models can change, you're looking at a longer time horizon, therefore gills us more variables, cho they have the same outcome. >> dr. cosgrove, the final word. weigh in for us, if you will, how it's affecting your business, are you finding that you're seeing more people with that access to health care? just give us your opinion. >> we know that we had to change the health care organization in the united states, and we had to contain the cost going across the united states, and provide more access, and continue to
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drive high quality. that's the affordable care act aimed at that. we know there will be unintended consequences of this. we think over the next five years congress will have to deal with much of these news unintended consequences, and we will eventually i think get to higher quality and more affordable. we have to take a tremendous amount of cost out of health care system, because we're seeing an increasing amount of technology, increasing aging population, and all of those things have the potential to drive up our total bill. we have to figure out how to do it more fiskly and drive value across the entire system. >> gentlemen, thank you so much for joining us today. we appreciate it. omare -- and meg, thank you for joining me as well. did walgreens make the right decision keeping its headquarters here in the u.s.?
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52% said, yes, it should stay in the u.s. 16% say no, 32% say for now, but corporate taxes must be reduced. ty, up to you. >> sue, up next, the pope says kids waste way too much time online, on their phones, social media mogul gary vander chuck, he's got a million-plus twitter followers, has very strong opinions. plus we want to know, are you worried about password theft? companies muss do mores, companies have my back, i change my password often, or what, me worry? vote, the results plus gary, right after the break. oker. he helps looks after all our money. kid: do you pay him? dad: of course. kid: how much? dad: i don't know exactly. kid: what if you're not happy? does he have to pay you back? dad: nope. kid: why not?
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here. the man with more than a million twitter followers, the myth, the legend, welcome back. nice to have you here. >> thanks for having me. >> the first question -- are you worried about password theft particularly in light of this russian breach that i suppose was exposed yet. 1.2 billion identifities. vote on today's question. what do you do to protect yourself? >> i am absolutely not worried, nor is anybody else? i know you're voting right now. they're going to say in theory, you know, the psychology is, yes, i worry. companies clearly don't have our back. we know that. >> i know that. >> but the truth is every day we pick other things, convenience, time over identity, because the fact of the matter is you get your money back when your credit card is hacked. kid crime and family health is down because phones are everywhere. so the truth is, and i don't want to say it, and people will
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get upset, but nobody cares about privacy. >> look at that. they great with you, gary? >> two out of three -- or three out of five say it will be okay. >> i'm sort of with you, too. i worry about it a little bit. i've had my identify breached, it was a hassle. >> it was a hassle. >> it got fixed, but not more of a hassle than every other thing that would -- >> driving across bronx is more of a hassle. let's move on to -- you were an early investor in twitter. the stock doing very much. facebook, what's app, et cetera. how do they stand out and grow big? the user base is expanding. >> they're still america's water cooler. i'm very bullish on what facebook does to drive business, know what show i'm on right now, that is the place. twitter has to prove that. it has to continue to beef up. what they need is more data.
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if this el attack knowing i'm a 38-year-old male or my other buying behavior, using something like data logics, that is when they'll start growing. >> does that become a privacy question? >> you know where i sit on privacy. i want everybody to know i buy root beer or wine or jets jerseys, because i want ads relevant to me. >> i'm fine with the wine and the jerseys. the pope says they're wasting too much time. do you agree or disagree? his statement there is -- many young people waste too many hours on few tile things. futile things. i would observing young american males, the incessant use of video games. >> yeah. you know, i've been thinking about this for a few minutes knowing i had to -- i don't want to incite riots. >> you don't want to take on the pope? >> i do. it's stunning how much i disagree with him.
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this is classic don't listen to elvis because he shakes his hips, this is the devil. this is ludicrous. i'm going he's outlandishly wrong. i almost can't conceive he's even willing to good there after he himself said the internet was god's gift to our society. i'm sure i understand what he's saling. there's plenty of old-school parents that are like, yeah, the truth is either you move with the world or you don't. >> i agree in part and dissent in part. >> because you're a romantic. you spend a ton of time on dumb things, too. >> the anesthesia effect. >> you lay in your bed and listen to lynyrd skynyrd. we all waste time when we have it. >> yeah, yeah. i'm not sure about the video games, though. >> they're no different than year vinyl records and you sat there with your lava lamps. >> they're telling me i have to shut up.
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nba history, san antonio spurs, the champs have named becky hammon, a very accomplished pro women's basketball player. first time ever. is she jackie robinson? will she make it in this -- >> yes, she will make it. i don't know if it's jackie robinson. i think you have to be on the field to have that level of impact. but as a father of a daughter who i think is going to rule this world, i'm thrilled to see the progression of breaking these ceilings. i think it's phenomenal. i hate the spurs, but this made me like them a little more. >> i think it's -- you northeasterly there are men who coach women's sports, obviously. >> these phenomenal. >> or yes, ma'ama, i would have loved to have seen pat summitt
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coach an nba team. >> me too. >> i kind of agree with the pope, guys. >> no way. >> he says that they should -- he wants them to get out and do good in the world. >> you can do good in the world. we're going to tall california's water shortage woes. they continue. check out the drought map. that's pretty dramatic. wow, the entire at a time under a huge drought watch. what's the best way to ensure your neighbors are conserving the h2o? one start-up has come up with some pretty shaming software. we'll tell you how it works when we come back on "power lunch." the dow is on the verge of losing its advance. only up a quarter of a point. back in a minute. over 1.2 billion eyeballs are on us during the two weeks at wimbledon. true tennis fans want to know what's happening. they don't want to just see what's happening, they want to know and understand why it's happening. anybody can just put data up, but we want to get a reaction, make it far more interactive. we rely on the cloud to provide that immersive digital capability. give fans more then just the game
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the beer maker posting better than expected earnings, and revenue boosted. sue, back to you. >> morgan, thank you. startups are offering a new technology to help ease that crisis. our josh lipton is at the copolo winery in california. hi, josh. >> hi, sue. in california the drout is on
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everybody's mind, but start-ups are riding to the rescue. this company flies over and shows irrigation props. when can comes to consumers, the name of the game is shaming. a start-up called wart works with wart dritz with easy to understand reports. the records detail how much water they use. just as importantly, how their usage compares to their neighbors. to use less water, you're effectively creating more reserves in the reservoir for other people to use.
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it hag are has big backers. those working in the industry thing you're going to see a lot more interest in these kind of start upproviding technology to ease this water crisis. sue, back to you. thank you very much. mandy drury and "street signs" is up next. nato is fearing a ukraine invasion, we'll be speaking with colonel jack jake about how far this could go, seeing the market six years out is hard enough from quarter to quarter. we'll get herb's takes on the 20/20 bonds vision. if you have ebola, would you take an experimental drug? i would, but there is apparently a case against doing that. we're going to bring you both sides of the debate on "street
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signs." make sure you join us, top of the hour, just a couple minutes time. see you then. we never thought we'd be farming wind out here. it's not just building jobs here, it's helping our community. siemens location here has just received a major order of wind turbines. it puts a huge smile on my face. cause i'm like, 'this is what we do.' the fact that iowa is leading the way in wind energy, i'm so proud, like, it's just amazing.
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frothere's no reasonn average 17 we can't manufacture in shuthe united states. here at timbuk2, we make more than 70,000 custom bags a year, right here in san francisco. we knew we needed to grow internationally, we also knew that it was much more complicated to deal with. i can't imagine having executed what we've executed without having citi side by side with us. their global expertise was critical to our international expansion into asia, into europe and into canada. so today, a customer can walk into our store in singapore, will design a custom bag and that customer will have that american made bag within a few days in singapore. citi has helped us expand our manufacturing facility; the company has doubled in size since 2007. if it can be done here in san francisco, it can be done anywhere in america.
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