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tv   Street Signs  CNBC  August 11, 2014 2:00pm-3:01pm EDT

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aimed at tablets was delayed by six months. cisco and ge all doing well. >> and a look at a window washing near-disaster. those individuals have been rescued from a high rise in manhattan. thank goodness they're all okay. that will do it for "power lunch." >> "street signs" begins right now. investors in one big stock making a forting on a deal. we're going to try to spot the next one. and plus what facebook may be doing to tick off its users now, and a stories of lies and cover-up that may end everybody's dreams -- let them work from home. we could never do that. we could absolutely never do that. remember, brian, there was a time when we took the teflon
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market that seemingly never went gown for granted, and now the gains today will only be the first back-to-back gains in nearly a month. get that. we could lose those games. let's look at what's happens. a positive start to the week, but fairly tenuous. >> we've had an enormously powerful rally. we were looking pretty gloomy, then around 6:00 a.m., we just sort of turned around. here's where we were. we've been straight up. we were at 140 at one point earlier in the day. that's 50 points on the s&p p s&p 500.
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that is a pretty powerful rally, much of it on the battles going on in the ukraine, no real overthe weekend battles going on. the bottom line is it's enormously powerful. we've seen nice moves up in biotech. and final, russell 2000 is the market leader. back to you. >> bob, thanks very much. stocks seem to only care about what's happening. in flight 17 was shot down, the dow fell 161 points, but last frigt there were reports that russia was ending military exercises near the ukrainian
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borders. that almost immediately pushed it up 186 points. a very rapid reversal during the day. russia matters for two big reasons. it's europe's largest trading pa partner. and by the way, from an investing angle, exxon and bp both have a big presence. some criticism for exxon, began drilling with its russian partner. >> why does russia seem to continue -- let's bring in chief strategist dave nelson , and alan gale, dave and alan, great to have you here today. >> sure there's a lot of geopolitics around the world.
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we're talking about a trade war. trade wards have economical consequences, the eu, this is the last thing that they need. there's a long history of russia willing to push the nfl. >> beyond lodger. >> there's a lot of anxiety, but i agree with -- i believe it's david, this is the big economic impact. if you look at what's going on in the middle east, so far the
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oil supplies over there have been secure so unless that -- it will remain on the ukraine. for me managing the allocation strategies clearly a threat of a trade war, does impact the commish outlook over in europe. they are likely to peak relatively soon and ease, makes us feel this is probably more of an opportunity than it is a concern. >> don't you think this could morph into something far more serious at this point? you know, all right russia right now they import i think over 44% of their foot from europe. huge inflation consequences. they could being like a wounded
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animal, don't you think, and this could escalate to another height here. >> it's true. i think what you're saying is correct. there isles news out of the russia this morning that they are putting on some price controls for food so they can control the inflation impact. you're right. i think they're trying to control the economic impact on the country, but the point is i think it seems like cooler heads are prevailing in this back and forth. we obviously don't know so far it seems like there's enough wisdom in the room. in that sense, we saw what the reaction we had in the market on friday this event seems to be the biggest thing overhanging the market. and friday obviously we were rewarded with that point of
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view. we're obviously one headline or one news briefing away from that changing, but our view is ultimately we think we will come out on the other side of this and that would be a positive for the markets. >> all of that stuff going on, though, david, do you think the fed and earnings quietly trump it? the market is disagrees with you. >> the market disagrees, obviously putin blinked on friday he's been a pretty crafty spymaster, so who knows what is up his sleeve. in the end you have to step back and look at the geopolitical and the military conflicts and ask what does it mean for the earnings? here's how it can translate. it was only a week ago that boeing and we found out from "wall street journal," boeing and united technologies are
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stockpiling titanium. rischa controls 30% of the tie tainium eventually this translates to the bottom line of some companies. this is why i think what's happening in the ukraine is of more important to the investors today than what is happening in iraq. >> thank you very much. great commentary from david and alan. well, we had a deal that made many new millionaires today. now we are going to search for the next big deal. and why the king of wall street is getting crushed today, in the one story that may prove that maria mire did right about ending working from home at yahoo. machines will be sprayed to be made.
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and making something stronger... will mean making it lighter. one day, factories will work with the cloud. one day... is today.
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shares of kinder morgan soaring on news that it's consolidating into one company. morgan brennan has been working this story for us. now the ceo of the company was on earlier today. what did he have to say? >> first details on the deal itself. kinder morgan is announcing it would absorb energy partners, management and el paso pipeline in a deal valued at $71 billion, including debt. thises the second biggest energy deal in u.s. history behand exxon's purchase of mobil.
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they're putting all of its assets into a single c corporation. mlps have become very popular because of the tax advantages and high dividends, but the founder says his businesses have gotten too big to make significant invest. >> you pull ought that together and we think this is a recipe for us being able to do lots of capital projects and lots of potential acquisitions that we simply couldn't do until the old structure. it allowed them to move to -- and continue hiking it to 10% annually through 2020. as for the potential acquisitions analysts say the company will be able to acquire all kinds of energy assets, not just infrastructure. and will be raising its
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dividends for year to come. that's why when you take a look at the stock, that's up about 10% and why kmp, kmr are all up, depending on the stock and higher. kinder morgan brennan, sit update for a second. >> we don't know, but we do like to do work for you here on "street signs." here are two lists. first, the biggest mlps by market cap. p.a.a., and energy transfer partners. next up, the money, the mlps at the highest dividend yields that are over, including crestwood mid streams. atlas. pipeline partners. and again, williams, wpz, at
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7.1%. as well as morgan is still here with us. mark, we just plucked those off the screens, like to do a little work for our viewers. are those on your ray dare? >> yeah, several of those names are on our radar. we manage a fund that specializes in partnerships, energy transfer is a unique name right now. they're probably the next potential partnership to do a transaction like this because of their high idrs which are incentive distribution rights. >> that's the only candidate you see out there? >> i think for now, yes. a lot of those other names are still relatively low, but over time, i think you'll see other
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mlps try to rectify that. but part of this deal, mark, is that they want to get bigger, they want to free up their capital structure. even if there's not another company that could do what kmi did, we get that. what about others combining with each other to get bigger to now compete with the soon to be bigger kinder morgan? the name that comes to mind there is targa. and they have a lot of assets that could fit in nicely with other c-corps, or other master limited partnerships. >> what are you hearing as well? >> 875 billion, that's 120 energy mlp tarts.
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so i'm curious what could they buy? >> funny part that you talked about early on was the abandonment of kinder morgan. i think it does simplify their structure, but i think you'll see it back in the mlp space. so some of those names could make a nice fit. >> we're going to -- it was a real pleasure. morgan brennan, thank you. hillary clinton, something about the president that surprised a lot of people, but should they really be surprised? that story is ahead. >> also, imagine being stuck in your seat for nearly five hours. now imagine being stuck in your feet 79 feet above the ground. details when we return. what if there was a credit card
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thank you for rescuing me. well and truly off the highs. five hours, that is how long two dozen people were stuck on a roler coaster. as for six flax, the stock is slightly lower. down more than 10%. >> biggest complaint you get from riders, the ride was too short. >> you're absolutely right. >> well, that was a great thrill. >> listen, there's a lot of worst rides it could have
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happened on. >> and could have been upside down or splayed out. if you're going to be stuck on a ride, that was probably one of the better ones. still -- >> make that known. if i'm going to be stuck, i want to be stuck on this one. former secretary of state hillary clinton making her sharpist criticism yet of president obama's foreign policy. in an interview with "the atlantic" let's bring in john harwood. john, you know, hey, the elbows are getting sharp, trying to distance herself from the president. >> no question, brian. look, even if the world were now blowing up now, she would have incentive to distance herselves. by hillary clinton now seeing
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that the world is blowing up. she was second tear of state for president obama, so she said in this interview that it has been a failure of the administration not to supply rebels in syria. she made that point before. when i interviewed her on national public radio's "on point" show a couple weeks ago, she said something similar. when i asked her about who deserves blame to all of the crises in the world right now. >> i'm saying that every administration, every party, and the white house has the responsibility during the time it's there to do the best we can, to lead and manage the many problems we face, and i think we did in the first term. >> note that terminology, i think we did in the first term. we're now in the second term and hillary clinton is putting some distance between herself and the president. on her book tour for her memoir,
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she's not talking a whole lot about domestic policy and economic policy s. but you can bet when she gets closer to a campaign if she in fact intends to launch one, you'll see some distancing as well. >> not really anything. i don't think they're terribly surprised. she nodes in her book that she was an advocate of helping the rebels in syria even before things deteriorated to this point. just the fact that it's gotten worse -- >> john harwood, thank you very muc much. well a candidate and doughnuts edition. plus the one stock investors are going bananas over today.
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s. all right breaking news right now. we told you at the top of the show that news from russia and ukraine is what moves the market. we've got an update on that front. the u.s. president obama just told ukraine's president pour oshenno that any russian intervention in ukraine would be, quote, mandy, unacceptable. >> we're not entirely sure if that call was the reason. >> whereas at the beginning of the day, as bob pisani was detailing, we had a powerful two-day rally.
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the first one we're looking at is for a fantastic game for krispy kreme. >> solid check suggesting new unit growth, their target, kkd, is $24. that's about 40% above the stock's current price. >> okay. getting an upgrade to buy. >> was sale the highest quality portfolio. they love hyatt's developmental pipeline and love the healthy balance sheet. the target set at 67, the stock is at 58. nine bucks above the current price. >> king digit at getting a downgrade. this is what we were teasen
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about. >> it's like five hot dogs in a row. the company is set to release -- pacific crest removing the $12 price target. just this month before this move. deutsche bank very bullish. they set the price target. 240. it was nighttime, and i remember the head lights coming on. . what are they? >> this is the manufacturer of
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production enhancement solution. >> and appear upgrade to strong buy at raymond james. their target, $33. okay, folks, the stock is at 23.50, so their target well above where the stock is now, but sometimes there's a but with these under the radar names. >> be careful, you know, not a lot of commentary on this -- we're going to look at priceline.com. aaron gears on the fundamental. ari walden is on the technicals. technically does pricelime stock look like a good or bad deal to you? >> based on the chart, we think this is a very good deal.
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when it was pulling back. looking at the next 6 to 12 months, we think we are talking about a breakout above that this may be a year-one is up a bit. if you look at 2011, the stock spent eight months trading below its peak, and in 2012, it spend 13 months below its prior peak. currently five months before it -- below its prior peak. that would suggest we may don't get to break out before the third 1270 support. >> one of your top picks in the sector. >> yeah, priceline really has done well. it handily beat q2 estimates.
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even though it's trading at about almost 24 times forward earnings given it just had 32% growth, we're looking at long-term growth of 22%, it's mott radially attractively priced, not only that, but some of recent investments are really setting it up on take advantage of what i see as this long-term secular trend of price-conscious consumers, and also online savvy. so the acquisition of open table can also open them up to basically take the hotel model and add that to either reservation times or discounts toward food. as well, also the 500 million investment, in china's largest
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online travel site. that helps with their sxwr thashl expansion. >> thank you very much for erin and ari. on pricelynn. be sure to check out the online edition. one of the priceline's competitors is exceedia. that's a screen shot we took a couple minutes ago, so the web side is down or was a minute ago, bakley saying the servers are overloaded. are they back up and running? of course they are, because we showed the graphic. >> who has their underwear poking out of their luggage like that. >> that is the only way to pack. you also have a flexible handle. >> and can also grab it if they want to. >> some brightly colored skiffies, too. the stock is up 2%. okay. let's send it over to bertha coombs. >> a lot of us pack like that, sad to say.
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>> stock upgraded to buy from a neutral over at brian? >> bertha, thank you very much the herb greenberg is fired up over some buzzfeed news. we're going to tell you why, when we come back on "street signs." tdd#: 1-800-345-2550 searching for trade ideas that spark your curiosity tdd#: 1-800-345-2550 can take you in many directions. tdd#: 1-800-345-2550 you read this. watch that. tdd#: 1-800-345-2550 you look for what's next. tdd#: 1-800-345-2550 at schwab, we can help turn inspiration into action tdd#: 1-800-345-2550 boost your trading iq with the help of tdd#: 1-800-345-2550 our live online workshops tdd#: 1-800-345-2550 like identifying market trends.
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when you learn that the also know what sports team sector you like, it kind of makes you wonder, doesn't it, whether or not they are spying on you and then flogging the fake stuff. bill is off today, but tyler will join me top of the hour. why it is that all of the millennium wra billia. that is in a defunct airline, where does it all come from? it turns out once you indicate to eebay what you like, some of the manufacturers are able to make more of the product, so you need to double check. markets of slipping off their highs. we're going to employer how much this might be on international tensions. bill browder will join us in about an hour's time. you won't want to miss that?
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>> thank you very much, kelly. we look forward to it. some facebook users are flipping out over the company's new messenger app.. what is this all about? is it all about privacy concerns? >> it is privacy concerns. keep in mind here facebook messenger app. has been around for years, but last week the company told users they have to use and download a whole separate app. in order to continue to send and receive messages. users are not happy. messenger has a one-star rating out of five potential, drawing negative reviews. now raising particular concerns for android users, a revised privacy terms that asks for access to contacts, location, text messages, camera, even your phone's microphone. why are those terms so far-reaching? facebook says that android requires app.s to ask for permission to everything the app. could potential act -- all at one and up front, but
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facebook messenger will only access it whenever it's necessary as part of normal use of the app.. facebook says a separate messenger app. is about to% fasters, gives more users ways to share. now critics say the problem isn't the changes facebook's poor communication to the users. facebook stock is shrugging off the backlash and just fractionally high dear. these are hardly facebook users first privacy concerns, but they seem to come with the territory when it comes to facebook business model. brian? >> interesting stuff there, julia boorstin, thank you very much. perhaps we should call this next story 50 million reasons buzzfeed is happy. the media company known for articles such as -- and men shaving their chest hair into bikini tops is the trend you didn't ask for. those are real, by the way, getting funding from an degreesen horrid oy wits,
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valuing the company at $850 million. herb, what are the top 17 reasons are angry about this story? >> i didn't say i was necessarily angry. by the way, when chris dixon of an degreesen horri horowitz gav very important reason. this is, quote/unquote, buzzfeed is consistently profitable. the concern i have is if it was doing seriously journalism, would it be consistently profitable? back in 1998, i was one of the first present guys who made the transition over to online, so you get into that question of, you know, what's really happened since then? i look at a tweet mark an degreesen put out, one of the many tweet storms. and he said, you know, journalists should be thrilled with the internet, because the internet has expanded the market. he's 100% correct, about you what i also said, you know, by
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participating now in social media, as i do, and you know i love to do, of people like me, content creators, we're devaluing ourselves by doing that, because we're doing it for free. but if we don't do it, actual be automatic suicide, because then we're out of the conversation. so it's an interesting time for content from that perspective. when i see what's going on on buzzfeed, good for buzzfeed. what i see going on for journalism, the story that david carr had, saying that print is dead for the most part, i don't totally disagree with him. as an old print guy, i agree that a lot of it has just been gutted, so i think we're at that point where all of this is coming to some sort of a head. nobody, nobody fully knows how it will play out, and that's why i'm worked up. >> you say are you've got to have some guesses on how it's going to play out. you're damned if you do, damned if you don't. at the same time you can -- then you don't have a business.
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>> well, look, you've see the commoditization of information. there's a lot of noise out there. people are driven to noise. we're watching people become correlated to the same stories because of the same, and i think we're at a point where, you know, honestly i -- i can't sit here and tell you how it's going to play out. as a guy who works in it, i'm watching it real time and i'm going, wait a minute, how do people get paid? it's like anything, any end you've got to pay for it, but everybody want it for free, so i guess the way it will work out is the lower priced content creators, the younger journalists, those willing to work for much less money, they'll have a future, the guys will do something else. >> or work for nothing. >> there are plenty of people that blog and write and tweet and make music, they've got
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another job -- >> that's the key. they have to have another job. >> brian, that is the perfect point. that's what's created this. so many people are now perceived in the same news feed, so i follow really smart people. i don't even know who you are, where they came from, but they're really smart. >> you're afc good in giving us advice. i'm going to give you the most important advice i ever received in my life with regard social media. are you ready? never argue with an egg avatar. don't do it. >> i don't article with anything on twitter. that is rubbish, complete and utter garbage. you know it. you make a living out of arguing with people on social media, and you relish it. >> this is true. >> 12 reasons relish is the best condiment. we're about to tell you why a big boozy bidding battle is going on, and it involves one of my very favorite drops of australian red. >> the 15 best examples of
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literati literation. plus what one government agency did that may make your dream of working at home much more difficult.
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oil prices selgting slightly higher today. let's go to jackie deangelis. >> oil closing just moments ago. it was a mixed trading session, domestic crude settling up, 98.08. what's interesting is brent crude falling under $105 a barrel. traders telling me certainly they're keeping an eye on what's happening geopolitically. also watching iraq closely, but unit that conflict moves any farther south, there haven't been any supply disruptions in the north just yet. i do want to point out this is also a supply and demand issue right now in terms of oil prices. you have global supply increases, and you do have demand in parts of the world waning a bit. we had some evidence out of the china last week that the crude imports are slipping. also here in the united states traders say that means the summer is coming near the end, this is when the driving season
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starts to cool off a bit, and that oil demand does slip seasonally. is the average praise for -- things look good in the oil pits, of course gee on politics holding prices up, but it could be much worse. >> jackie, thank you very much. are you trying to convince your boss to let you work from home? the next story may hurt that dream a lot. a "the washington post" story highlightses serious abuse, an inquiry found that some of the 8300 patent examiners, about half allowed to work from home either full or part time repeatedly lied about how many hours they were working, and some even got bonus pay for work they never did. even when bosses believed they found fraud, they were not allowed to pull computer records to prove it. >> we asked, does working from
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home work? joins us is teresa, and regina louis, "u.s. today" contributor. a controversial topic, do you believe that marissa mayer had it right? he got a lot of flack for saying no working from but maybe she g right all along. >> well, i think the verdict is certainly looking to be in her favor. and the culprit here, mandy, is distraction. there's a great saying -- the cleaner your home, the worse your next performance review, and that's before you get to the kids, the dog and the yard. it's a zero sum game when it comes to focus. and so, workers at home find themselves -- you know that phrase life gets in the way? well, it becomes heightened at home. and the lines are really blurry. but interestingly, technology was the enabler here. it let us stay at home. it will also be the solution. so, you hear a lot about personal analytics, which will become the moneyball, if you will, of hr. everyone will be a quantified employee. and that will help keep things
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fair, whether you work at home or, frankly, whether you work in a cube or office in headquarters. >> i'm guessing, theresa, that you disagree with some of what regina just said. >> yeah, i disagree and agree with some of it. i think the bottom line is i don't think this is a telework issue. i think this is a basic management issue. good, old-fashioned management. managers grew up by walking around and managing people, and they're most comfortable that way. and the reality is that the world has changed. and today we can't just manage people in that way as it requires a new set of skills to manage teleworkers, and managers aren't being taught those skills. and i think that's what happened with this situation as well. i think the missing component here is that we aren't looking at people in the office in the same way that we are teleworkers. telework is often the scapegoat. and i think that was the case in yahoo! and again here. it's very possible that people who are in the office are doing the same things, but people who are teleworking are under a different microscope. and so, i think we need to look at good, old-fashioned, basic
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management principles as part of the issue with the issue of the telework problems here. >> well, teresa, it sounds like they weren't under a different microscope, they weren't under a microscope at all. i mean, and the managers weren't allowed to even investigate when it sounds like they had pretty clear evidence that, you know, bob wasn't around at 10:00 a.m. bob might have been at the gym or at the grocery store, but they couldn't even prove it. this is one agency. we get that. but at the same point, if you're thinking about letting employees do it -- you might hear the story on "street signs" and think this is why we're not doing it. >> yeah, absolutely. and that's the basic problem here is that you need to put checks and balances in place. you can't just turn employees over and tell them to telework without letting managers have some of that authority to check in. they need to be setting expectations. they need to be taking action if those expectations aren't being met. you can't let people work from home without having check-in meetings. and look for patterns of changes in their behavior, which is what
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happened atta yahoo. peoples weren't checking in for meetings, logging into vpn. when you see those patterns of behavior, as a manager, you need to address it. so, you're right, in order for this to work, you have to set it up that way. >> in general, do you agree with teresa that there might be a double standard? there might be lots of workers who are in the office and they're all on facebook and they might be, like, i don't know, yakking on the phone for personal reasons and not for work reasons. it's just that because they're there, you can see them, you think they're working? >> i think there's something to that. i like to think all the easy jobs are gone at this point. and i do think that the bar is higher if you work at home, and it's a privilege. and you'd better step up. but this is being solved for hybrids with other things. look at football. you can't just tell the coach i'm ready for the opening game. no problem, we'll start you. even going off to college, it's not enough to say i attended the lecture. well, really prove it. we'll give you the clicker and ask you to click your answer and that will validate that you're there. >> regina --
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>> i think it's a combination of personal responsibility and technology. >> i'll flip it. i know a lot of people that didn't like working from home when they got the chance because they worked all the time. they felt like they could never separate church and state, if you will. it was like, i'm here. i might as well get something done. it's like anything else in life, there's going to be some people that bust their butts and there's going to be some people that will do anything they can to avoid working. i mean, that's just the way it is, right? >> sure. i mean -- >> we can't come to a conclusion. >> no. i mean, i agree with teresa, it's about the person at the end of the day, it's about managing your time, it's about time management, and you'd better get it really right if you don't have facetime and putting those systems in place. by the way, if you're thinking of doing this, get that in place up front so there's no confusion. i've got to believe i'm not just trying to be pollyannish or give them the benefit of the doubt, but a lot of people in this investigation probably weren't clear, was i on retainer, was it hourly, who's on first? and when you have confusion like that, everybody makes mistakes and it's not a good outcome.
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>> yeah, and the bottom line is that telework isn't for everyone. not everyone's cut out to telework. there are lots of people who are easily distracted and can't work from home. there are people who can't work from home because they can't stay out of the refrigerator. so, you have to know yourself and be able to set up those checks and balances in the beginning and give managers the skills to be able to manage people who work from home. >> yeah. listen, i didn't wrap this segment because i was thinking of unicorns on rainbows, right? and i'm hungry. so, teresa, you're talking to me. >> you're not a good telework candidate. >> brian, never work from home, never. >> i'm one of those people. i can't stay away from the refrigerator. >> regina, teresa, good debate. good discussion. are you ready for a tasting? a big, boozy battle is brewing in my native land of australia. we have that next.
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who doesn't want to get their hands on a pinfolds grange? what am i talking about? arguably one of australia's most collectible and delicious way, in the treasury wine estates of australia, at the heart of a bidding war. jane wells, tell us more about it. >> bidders are doubling down. treasury wine estates of australia, which sells pinfolds and also bearingers and napa, now has received a second multibillion takeover bid at about 5.20 a share australian
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dollars. the bidder used to own barringers. one melbourne investment fund manager says "it just tells you that despite the company's struggles, people still see value there." it's already trading above the latest offer. treasury wine announced a write-down for the year, partly due to poor sales in the u.s., because last year the crop here was bountiful. well, not this year. drought is having an impact, an issue we asked fred fransia of bronco wine about. his company owns over 70 labels, including charles shah or two-buck chuck. >> it looks a little smaller than we anticipated. >> how much, 20%? >> hard to tell, you know, because some varieties, it depends how you water your vineyards. we have certain items lycopeno grigio that are in higher demand. we make sure it gets 100% of the water. >> by the way, more from him right now on cnbc.com about a
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two buck chuck ruckus involving accusations that animal blood ends up in the wine. absolutely not, he says. and someone purporting to be the author has offered a mea culpa. cnbc.com right now. >> that's weird. okay, thank you very much, jane. >> charlie sheen wine corporation. tiger blood sheras. thank you for watching, everybody. >> "closing bell" is next. see you tomorrow. welcome to the "closing bell." i'm kelly evans at the new york stock exchange on this monday. >> and i'm tyler mathisen in for bill griffeth at cnbc global headquarters. good to be with you, kelly, and everybody. >> good to be with you. >> stocks modestly higher on hopes that geopolitical tensions in iraq and between russia and ukraine will ease. >> but perhaps the biggest geopolitical threat to the market right now is russia, and nobody knows more about it than hedge fund operator bill browarder, kicked out of the country by vladimir putin, and you may be surprised by what he says is motivating all of

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