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tv   Varney Company  FOX Business  September 5, 2013 9:20am-11:01am EDT

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>> i didn't set a red line, the world set a red line. the world set a red line when governments representing 98% of the world's population said the use of chemical weapons are abhorre abhorrent. stuart: oh, the tea party becky
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gerrittson is here. >> good to be here. stuart: you heard what the president said about the red line and the rest of it. here is your chance, pass judgment on this. >> i think this president is quick to blame anyone, but his own administration for what's going on. before he took office it's okay to blame the previous president. he's been blaming bush, the irs scandal, nsa, he's blaming everyone else. stuart: you're the lady who was the standout, star witness, if you like, at the hearings for the irs because your tea party organization was shut out, it was intimidated and i think since then, this scandal has been largely buried by other headlines. give me an update on what's happened to you since you were the star witness there? >> well, we filed a lawsuit with the american law and justice on the 29th of may and we updated that to include 41 plaintiffs, and the government
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still has not responded to that lawsuit yet. and the fbi has not investigated any of the 41 plaintiffs to date. stuart: you've not been asked, you have not been asked any questions. >> nothing. stuart: your organization. >> no e-mails, no phone call, no contact from the fbi whatsoever. stuart: do you think it's being buried deliberately? >> well, it looks like it is. stuart: where to from here? i mean, you're in limbo essentially. i know you've got your tax exemption eventually, but your case, your cause, is in limbo, buried with other stories. >> well, i think people just need to keep talking about it. this irs scandal is so deep. again, it's the tip of the iceberg and i think as more hearings will be coming out once the congress comes back in session, we will begin to find out more. this is very deep. i do have information that it's not just these grass roots groups, but other individuals, very wealthy individuals are being targeted and i think
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we're going to find out some really interesting news in the next few months. stuart: and what about your own tea party organization? has it grown in stature and membership because of this? >> it really has and our donations have increased, so-- >> that's in alabama, isn't it? >> it is. stuart: forgive my accent. watonka. thank you for i think jo us, appreciate it. >> appreciate it. stuart: we'll follow it and we're not letting this thing die. >> thank you. stuart: we are indeed of course watching your money today as well and item number one, blackberry moving ahead with plans for sale by november. and, yes, number two, big week for the jobless numbers, but first though this from the anthony weiner side show in new york, the national laughingstock rolls on getting nasty with an angry voter from brooklyn. >> think about your wife. >> by the way. >> how could you take the--
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>> by the way, and you have betrayed, think about that.
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>> you can't handle the truth. stuart: my goodness he's good. jack nicholson, reports say he's done with acting. i'll have my take on that. i call him the greatest living actor. and sandra from the cme. a lot of great interest rate news. the 10-year yield very close to 3%, 2957 to be precise and get in, jumbo mortgage rates are below the smaller scaled mortgage rates. the first time we've seen that ever. okay, interest rates, is that a driver in your marketplace? >> absolutely. i mean, in the s&p 500 pit right now where you usually come through in the morning and the 10-year is prominently featured right above this pit. this influences every single thing that the traders are doing down here and by the way, when you look at the performance of the bond market,
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we're on track for the worst performance since 1994. and if we do top 3%, stuart, this would be the first time we've done so since july, 2011. so, this is a drastically changing marketplace right now. stuart: okay, everybody can hear it. the big shout that went on right in the background of sandra there. that means the trading day has indeed begun. we're off and running on wall street. we're not expecting any big moves, at least not in the very early going. a pretty flat market today. syria is in the news, but not making news. put it like that. and let's go to blackberry, it is for sale. the company's looking to run a fast auction process, could be wrapped up by november. all right, nicole, give me the stock, please. nicole: the stock is looking good and started to pop yesterday. up 4 1/2% from blackberry and made it known that they were going to explore strategic options in august, they started talking about that when they formed a special committee and as you noted, stuart, now they
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want to get the ball rolling and get it done, it seems, in november. stuart: we'll see if they can do that. $11 a share for blackberry, where it was. nicole: and a $8 price target on it. i don't know what they're thinking. if they're talking about the soft sales for blackberry 7 and 10, don't they know that the company is a takeover target now? >> yes, but it could be a take under. in other words, the offering point is below the market cap of the stock. we'll see. nicole, thank you very much indeed. glaxo in the news. they've got an experimental cancervax seen, disappointing in a skin cancer trial. glaxo is britain's biggest drug maker. it's down 1%. remember, it's under pressure from the investigation in china as well. ad week says yahoo!'s second in command is quote, on the outs with marisa mayer and could be gone by the end of the year. the stock is up 40% this year. no change this morning. in fact, it's actually down 9 the cents. it's clearly a big week for the unemployment numbers.
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we've got 323,000 people filed for first time jobless benefits last week and that number came out this morning and that continues the down-trend. the big august jobs report comes out tomorrow. remember, please, we are still 2 million jobs short of where we were in 2007. now this. we've got a report showing the current labor participation rate has hit a 34-year low. 63.4% to be precise, that means about 90 million people are no longer in the work force, that's a record number. let's bring in the man who reported that number, the ceo of express employment professionals. my reading of this, bob, is that america is just not getting up in the morning and going to work. what do you say? >> good morning, stuart. that's exactly right. many of the baby boomers have decided that they couldn't find jobs and the millenials of course have been discouraged and consequently not looking
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for jobs either. there's really a lot of jobs available out there today, but we don't find the skill levels that are needed to fill those jobs. so, our company, of course, had 25,000 new employees this last month. and i expect, of course, august, september, october, usually it's our best month of the year. so, hopefully we'll be able to put more to work, but there is a shortage of skilled people out there and that's really concerning for us e now, bob, i want to establish your credentials, because i believe you're offering hard, objective information on the state of the economy. you're a former kansas city federal reserve board governor, i believe. and you're not spinning anything with the numbers, not grinding a political ax. i want you to tell me about part-time work. what do you know about that? because we hear there's been a vast expansion in part-time jobs at the expense of full-time jobs. can you confirm that? >> well, certainly that's true
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and in our industry, the staffing industry is growing because we're interested in part-time or temporary employees going full-time and of course, because of obama care, they're interested in full-time going part-time work. or temporary, so, yes, our industry is growing. i think that's great for us, but certainly not great for america. stuart: give me the future, bob. project out to the future. we've got a big jobs report tomorrow. we've got some big headlines made by the end of the year. what is the employment situation going to look like at the end of this year? >> well, i think it may be flat by the end of the year and as a matter of fact, unemployment, i would not be surprised if it would grow some because there are so many people out there and they're looking at. they don't have the skills to fill the jobs needed. the shortage of of skilled people is being, we think, is critical because we have so many open job orders that can't be filled out here on main street. >> wow, one quick one. 8% unemployment, the rate. do you see that coming through? >> would not be surprised.
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>> bob, thanks for joining us, we'll see you again on these jobs numbers, thank you, bob. >> thank you. stuart: coming up for you, new at 10:00 a.m. eastern time. samsung's new smart watch not getting rave reviews in the tech world. i'm going to have my chance to review it at 10 a.m., i'm going to have one on the set and i'm going to wear this thing. a live demo for you, sort of. if i can make it work. coming up the end of this hour, top of the next hour. look at j.c. penney, please. nicole, tell me what's going on with this thing. nicole: well, this is a 10-year, $200 million deal j.c. penney had with martha stewart living. and they've had a battle been in the courts and the final decision is it due to come shortly in the coming days. the ceo says you know what? beat it, martha. he's so done with her, i don't know if he's trying to preempt the whole thing and make it look good for j.c. penney, i
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don't know if they're going to win or lose. j.c. penney done with martha and the stock is to the upside. stuart: done with martha, that's the headline. nicole: i'm not sure if that's a good thing. stuart: and the dow is up 20, 14,951. we have the price of oil, actually it's up a little. getting close on $108 a barrel. and we have the price of gold showing virtually no change. more on that in a moment. let's bring in the money manager to some wealthy people, his name is ed butowsky, he joins us from dallas. buying power, income falling and we have more part-timers than full-timers in terms of new jobs. i want you to explain to me and our viewers, why is the dow close to 15,000 with that as the backdrop of income and jobs? >> it's confusing and a lot of people because of the bad news in the economy have elected to stay on the sidelines and
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haven't invested in the stock market and they've missed out and i think they'll continue to miss out if they sit on the sidelines. the reason the market is going higher. the s&p is broken into three sectors, leading this are health care, financials and consumer discretionary and the reason they're leading it is because they were the ones that were beaten down the most during the liquidity crisis and they're slowly moving back and the financials are the leader of the market going higher. 10 100% come from the united states and not outside the borders. the world didn't plummet and fall into a depression. they said the reason we're upping our projections we haven't seen a bear market. sounds wonky to me. it makes sense. because we haven't seen a big move down, you're starting to see stabilization in the
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markets, which used to be a side discussion. now they're an important engine to world growth. emerging markets are starting to stabilizing and that's why companies are upping their forecast are for the s&p. stuart: try this one. if i wake up some point the next week or two and find out that the rockets are flying at syria in some way or another, am i going to see a whopping great big selloff in stocks? >> most likely, yes. stuart: do i get a quick rebound? of course we don't know what's going to happen after the rockets fly. do we get a rebound? historically we do. >> yeah, historically we do and a lot of times people jump in right away. wait two or three days. i've studied this and had people smarter than me, two to three days when you see a sell off is when you see the institutions go in and that's when you the markets higher. and if you see a major selloff. don't react too much to your portfolio, you have to say is that going to directly impact earnings and it might for a long period of time depending
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how this thing plays out. but in the short run, slow down, wait two or three days if you're going to put new money in. stuart: ed butowsky from dallas. stuart: liz. >> yes. stuart: you said tradition historically. >> historically, yeah. stuart: as you run up to military action of some sort the market goes down 3 to 5%. >> that's right. stuart: then when the action starts relatively quickly the market bounces right back up again? >> he's right based on seven decades of research the strike in 2003 in iraq, the market did go down, i'm going to tell you the number, 13% decline and then starting in march of that year and then recooped its gains in 38 days. stuart: 38 days. >> a month, maybe two months before the markets come back. stuart: i don't know how this is going to play out. >> if there's a constitutional crisis in washington d.c. over the president's war powers, then you may see more volatility in the markets. stuart: thanks, liz. let's get to the big board and
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wrap things up. after ten minutes of business, it's up 26 points. let's check the oil, we're on the cusp of 108 a barrel. yes. >> 73 cents. and in wal-mart, they're demanding, demanding higher wages. in washington d.c. they required retailers like wal-mart to pay above the minimum wage. even "the washington post" says that bill needs to be vetoed. we'll talk to the backer of this living wage issue in d.c. in just a moment. ♪ (announcer) scottrade knows our clients trade
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>> the market check and gold report virtually no change. 1390.60 is where we are. and netflix is closing in on $300 a share. rbc raised its price target, and the stock is 297. blackberry is a winner because it's for sale. who knows what the sales price is going to be. november is where it's set to be wrapped up. $11 a share. union-backed protests expected in 15 cities across the country today. back in july of this year, the d.c. city council passed a living wage bill requiring big box stores like wal-mart to pay their workers 12.50 an hour. and remember vincent orange,
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he's the d.c. council member who led that fight. >> we're at the point now where retailers want what we have. they want our disposable income. they want our business. we're doing extremely well. we have a plan where we're going to create 50,000 jobs over the next decade. we're training our residents. unemployment is coming down. we're doing extremely well. stuart: oh, well, that's the exact opposite of what t"the washington post" editorial board now says. it is urging the mayor of d.c. to veto this living wage bill. the quote, a bill so small-minded that it would have the effect of depriving the city, including struggling neighborhoods of desperately needed new jobs. veto it, says "the washington post." he's back, d.c. council member orange who is pushing for this living wage bill. welcome back, good to see you. >> thank you for having me. good to be back. stuart: are you going to ignore "the washington post"? it's a liberal newspaper on your side of the fence and
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they're telling you, you're going to kill neighborhoods. you're walking away from actually proven jobs, are you going to kill this bill, please? >> absolutely not. "the washington post," we respect their opinion, but think they're wrong. stuart: wait a second, are they flat-out wrong that you're not going to kill jobs? you're not going to kill jobs? wal-mart's already walked away, that's killing jobs. how can they be so flat-out wrong when clearly the evidence of your own eyes is, wal-mart's not there. you've lost the jobs. >> no, that is not the case. the mayor at his press conference yesterday indicated that we will create or fill 71,000 jobs by the end of december, 2017. stuart: with what? with what? what are those jobs? >> may i finish, please? of the 71,000 jobs, in that number is 10,000 retail jobs. if were you to take the 10,000 retail jobs out of that
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equation, that leaves us with 61,000 jobs to fill or create. stuart: hold on a second, hold on a second. you told me 10,000-- >> you've got to listen to me, 10,000 retail jobs. the mayor of d.c. says, yeah, he's going to create 10,000 retail jobs. tell me the employer-- >> 10,000 jobs and we have 35,000 unemployed residents in the district of columbia. so the mayor is talking about zero employment by the end of december of 2017. you've got to look at-- >> come on, tell me which employers, which retailers are moving in to provide 10,000 jobs? tell me the names? >> well, just yesterday it was announced that target is looking at moving in downtown in the old espn building right in the middle of the city. stuart: how many jobs is that? >> retailers want what we we have in the nation's capital. we have the highest disposable
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income, a large consumer base that can purchase their goods. wal-mart should be ashamed of itself for wanting to come into the district and pay poverty wages where their own employees have to apply for food stamps just to come back and purchase goods at wal-mart. we're not having that. we're saying the door is open in district of columbia, wal-mart, come in, but share wealth just a little bit. $12.50 an hour minus benefits is not a lot, it's not going to break the empire. they're paying, 10.50 in san francisco. 10 in santa fair and 10.25 per hour in canada. why do you think we're going to let you come in and pay 8.25 in the district of columbia. stuart: you come back and see us when you've created 71,000 jobs in d.c. and 10,000 retail jobs. come back and see us because a lot of mayors made a lot of claims about job creation downtown american cities and they really haven't come true. vincent orange, i'm sorry i'm out of time, but thanks for
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joining us, sir. >> thanks for having me. stuart: liz, you're waving your hands. >> target says it doesn't have any current information to share regarding a potential new store in washington d.c. and the store he's talking about-- >> is mr. orange still there? he's not? we lost him. >> yes, i'm still here. stuart: did you hear this, mr. orange? >> no, i didn't. stuart: target just said they don't have any information on moving downtown to the espn sports. they have no information on this? >> this is reported yesterday in the washington business journal and the washington business journal, their sources report this information. stuart: target is saying-- >> you're citing a newspaper. stuart: target is saying today, target, the people you say who are going to employ these people, target itself is saying no information on this. >> no, has said, their policy is not to talk about stores in advance of a year of-- >> no. stuart: hold on, hold on, mr. orange, hold on, listen. >> the quote is currently, target issued a statement, it said it currently does not have
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any information to share regarding a potential new store because of the owner of the building hasn't sold the building to anybody, those talks are still in deliberation. target itself is refuting exactly what you're saying. stuart: it's up in the air. sorry, m orange, we've got to go, we'll straighten the target situation out. right, i say he is the greatest living actor, my take on jack nichols nicholson's reported retirement after this. >> you guys do nothing about you complain about how you can't stand it in this place here and haven't got the guts just to walk out. who do you think you are for christ's sake, crazy or something? well, you're not.
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>> in my opinion, he is the greatest living male actor. he is 76 years old and there are reports that he is retiring, but he says he's still reading scripts. all right? here is my take on jack nicholson. for entertainment movies hard to beat. movies i like. it's hollywood and it's politics i don't like that's y. i'm spending time on jack a brilliant actor and i have no clue about his politics, thank you, jack. i want to sit back and admire your talent. i don't want to filter out far left politics. that's what you've given the
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public, talent, without socialism. trade craft and presence without doing penance to income redistribution. remember him as the drunken sidekick to peter fonda "easy rider"? it was the acting that made an impression on me. one flew over the cue coo's nest. the shining, as good as it gets. a few good men and batman, my personal favorite. about schmidt. he has a record number of academy award nominations none of them for political activity, all of them for acting. there are others with enormous talent, but annoying politics. sean penn, as a viewer i cannot divorce talent from the politics, i recent actors using star power to ruin america. with jack nicholson, i can just admire the brilliance. now, some of you will say i don't know what i'm talking about, maybe you're right. maybe nicholson is indeed
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politically involved, if that's the case i don't know about it. he doesn't promote any political agenda that i know of. that's why i shall miss him and that's why i shall go back and watch his movies again, just for the pure talent. ♪ make it happen with the all-new fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity. get 200 free trades when you start using active trader pro today. ask me what it's like to get your best night's sleep every night. [announcer] why not talk to someone who's sleeping on the most highly recommended d in america? ask me about my tempur-pedic. ask me how fast i fall asleep. ask me about staying asleep. [announcer] tempur-pedic owners are more satisfied than owners of any traditional mattress brand.
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>> thursday, september 5th, 25 days to the obama care exchanges, but that is not the headline. try this for size. dan henninger with a searing column in the journal today. he says the president won't
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lead and he won't take responsibility for anything. henninger is here. and the tea party is here, too. scotty hughes says libertarians are just liberals. watch out, the judge will respond to that. the samsung watch, that's here. i will wear it, but what exactly does it do? wait for it, the big man william rogue, a defensive lineman, a tackle, protects the quarterback. nfl football starts today. i've got some numbers for you. first off, mortgage rates, 4.57%. that's the 30-year fixed rate loan from freddie mac, that's up just a little. ism reading comes in at 58.6. this is a measure of the service sector, 58.6. the highest reading since, i
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believe, december of last year. charles: december, 2005. stuart: december of 2005, i'm very, very sorry. those are the economic numbers, not much impact thus far on the market, we're up 47 points op dow jones industrial average. not much impact so far today, but charles, grind the numbers out. tell me. charles: ism services, you have to like the number. the manufacturing data not just from america, but around the world has been amazing, beyond amazing. >> that good? >> greece is at a 44 month high. the negative part of course is the mortgage rates. stuart: i find is hard to get excited about greece. charles: you know what? we spent a whole year talking about greece every single day starting on this show. and you know, i don't want to make it the main topic, the weakest link in the chain can get better, that means we all could get better. stuart: maybe all this good news you're talking about will mean that ben bernanke will indeed cut the amount of money that he's printing.
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that's why the dow has does nothing, up 45 points. maybe that's why. charles: but the higher mortgage rates mitigates -- the only thing you can argue the fed had an impact on, that's housing. mortgage rates go up-- everybody talks about housing being a great thing and you and i had the discussion. it's great due to the paper rebound and value of houses, but as a main street story, it's not there yet. it's not there yet. if we're going to get that rally in housing to go from big time investors and chinese investors, mortgage rates cannot blow up. they can't continue to go higher. stuart: i've still got no impact on the market. i've got a 43 point gain for the dow industrials, we were up 46 points before these numbers came out. all right. and let's get to syria. rich edson is with us in washington. all right, rich. we're all expecting a vote on the syria resolution to pass the senate. i mean, maybe it's shaky. but most people expect it to pass and most people think it's
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going to fail in the house. can you give me the latest wrap-up of vote counting and projections for the vote to authorize action in syria? >> that's the general idea. what i'll say. anybody who says they know what the senate or house is going to do on syria has no idea, because congress isn't back yet. neither party's leadership is taking an accurate vote count right now. that's typically what happens right here. the president is overseas right now. it is way too early to tell. you can definitely say there are issues, there are concerns that this won't make it through, but it's way too early. some reports saying 80% of the house is against this is nonsense. stuart: okay, the only voice that i hear which is gung-ho to go and attack syria, that's senator john mccain. i hear virtually no enthusiasm anyplace else, am i right? >> you have the leadership in the house and the senate, minus mitch mcconnell who says he
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wants more information. republican leadership is tacking this for the most part. democratic leadership is backing this for the most part and right now, everyone else is scattered across the country and mccain earlier yesterday came out and opposed that bipartisan draft, only so that he could influence it later in the day. he did so. he succeeded and supports it now. that could be happening across the capital. >> he wants it stronger, rich, thanks very much indeed. basically we've got the syria vote kind of on a hold with no clear pointers. the market doesn't care about it at this moment, does it? >> at this moment we're waiting for the jobs report tomorrow morning. stuart: that's it. we're up 37 points right now for the dow industrials. two big names we know. you've got to watch them. another new high for netflix, tell us about it, nicole. >> all right. let's take a look here at netflix, up 1.2%, do you remember when we used to talk about netflix at 305 in the summer of 2011, and then it went down to about 50 bucks and
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we said, how it was reminiscent of the $300. and here we are again. unbelievable how this has run up since september. stuart: at 313, i think it's an all time high, netflix and here we go again, getting close to 300. nicole: unbelievable, it is. stuart: tell me about blackberry, i know it's on the block. what's the stock doing? >> they stormed a special committee in august to explore options and they they want to try to get this completed back in november. blackberry shares are up. canaccord came out with a price target of 8 bucks and a sell rating and so they're not so hot on what they're seeing and then i was reading about blackberry, how they used to have more than half of the shth ma share here in the states for all things mobile, right? and for internet and web browsing and e-mail and it's just been pummelled. stuart: well, you know, if you don't move quickly, you don't move at all. nicole, thank you very much indeed and we have samsung debuting their galaxyware smart
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watch. the first foray into i'm going to call itwarable computing. early ratings from the critics? i've got to say they're mixed. will it catch on with the consumers? i don't know. and todd from techno buffalo is here and he's got the watch. i'm picking it up and i'm holding this implement as we speak. all right, i'm pressing the button and it shows me the time and it shows me the temperature. and it's 68 degrees in the tv studio, by the way. and it looks like a watch. i mean, literally like a watch with a fairly large screen. >> it does and that's 1.63 inch display right there. it's am 0. screen so it's bright and crisp. and you actually have a 1.9 megapixel camera on the band here. stuart: take the shot. that little black -- that's the camera in the watch band. all right, now, this is the screen. >> that's the screen. stuart: can i watch video on
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this? >> you can watch clips you film with it, film ten second clips with the camera there and go through the pictures you take on the galaxy 3, and you take a picture and say, check out my vacation. stuart: wait a second. >> also place phone calls from it, your notifications come through. and you're at the inner did table and everybody is hating these days, sitting looking the a the phone, i've got a text message and not that important. stuart: you can do all of that. voice recognition. >> yes. stuart: can i say call home? >> yes, you can say, what's the weather, anything like that, regular commands will bring up on the watch. stuart: all right, what's your verdict, do you like it? >> i love it. i think what we need to do here is see technology pushed forward and back in the day we'd see the dick tracy watch or the movies, science fiction, it's here now and i can't believe critics are saying, what's this. there's critics of the tesla,
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and-- >> does the watch work without the phone? without the phone can i make a phone call? >> no, no, it's tied to the phone, that's a compliment to this, but it's a stepping stone to that kind of technology. stuart: so it's not a break through new product that's going to sweep the market? >> i think it's pretty much a break through technology and it's funny because watch, we're going to see apple do something similar and everybody will be like, whoa, it's a break through technology yet, here we are now, samsung has done it, it's here, break through and we need to see the first generation product and in the future i think, yes, we'll get the phone functionality. and i don't think that anybody wants the phone itself on your wrist. stuart: no, really. >> it's complimentary. stuart: and i've got a minute left. two questions for you. >> sure. stuart: you brought along the new galaxy phone as well. >> this is the galaxy note 3, one of the most powerful. stuart: what i'm looking at the size. that looks like a mix between the smart phone and a tablet. >> that's exactly, that he is
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why we call it a pmablet, phone tablet. and the pen here and the air command where you can go to scrapbooking and certain parts, it's great for dialing. stuart: if i buy one of them. how many different carriers will give me a contract? >> five across them? >> yes, at&t, verizon, sprint mobile, and u.s. cellular united states. stuart: you're familiar with the luma the lumia. stuart: why didn't you like the phone? >> i didn't like the phone because it's been hobbled by microsoft software and-- >> who is this guy? >> the acquisition made no sense to me. stuart: okay. so you think, you like the watch. >> love the watch. stuart: you love the galaxy fablet? you don't like the windows phone. >> i think it needs a lot of
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improvement. stuart: just killed my retirement. todd, thank you. morgan stanley likes groupon. so what, nicole? . nicole: well, it matters why they like it. and so, if you see the stock is up 6%, that's a nice one, right? and they did upgrade it to an overweight from an equal weight and the reasoning behind it is an interesting one and that is that they have been securing more long-term contracts. that's a big deal for groupon. more than 60% of the contract that they've been securing these deals are from long-term players. stuart: hold on a second, nicole, hold on a second. the big deal about groupon is that charles hikliked it, recommended it, and make money early this week or late last week. charles: late last week. stuart: ahead of the game and you're doing a victory lap? >> not yet. when it gets to 13 i'll do a victory lap. stuart: go ahead, nicole. nicole: the other point i was going to make about mobile
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devices over the last two years up about 20% over the last two years, so go, charles. good call. it's your birthday. charles: it's my birthday. nicole: yeah, yeah. charles: if it was, would you go i have me the watch? >> no, i wouldn't. i've got a question if mr. hazelton is with us. could i get groupon e-mails, 10,000 a day on this watch? >> yeah, you would. stuart: thank you, todd, thank you, nicole, thank you, charles. north carolina is looking to eliminate their state incould many tax and replacing it with a consumption-based sales tax. right now, there are seven states that have no incould many tax. north carolina would be number eight. all right, charles, this looks to me like more in the ongoing red state revolution against income tax. charles: you can actually say it's a red state revolution against federal government intervention and tinkering. by the way, this, beneath the sfa is --
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surface is one of the biggest obama battles. and the government trying to impose their will on other aspects of what other states do, this is north carolina saying, you know know what, we're going to do what we want. put the supreme court green light on taxes and this is killing our economy, weng week unleash jobs, innovation and make our state greater than it is. stuart: but it's a regress i have is tax everybody pays the same amount, like a sales tax, not graduated up. charles: but when stuart varney goes out and buys a watch. it's a $10,000 watch. and when someone else buys a watch, they buy a $100 watch. so it's proportional. stuart: that's good. charles. in the unlikely event that i would spend $10,000. charles: what would you do spend $10,000 on a watch or 400 at a party at your house?
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>> that hurt and i have answer. more on this later this hour maybe. libertarians driving a rift through the republican party, libertarians like lumber chief tom sullivan who supported president obama. we've got a tea party take after the break. a man so successful, an entrepreneur, such a go-getter, a self-made man, wealthy man. why did you hold a fundraiser for president obama in your own home? >> yes, i did a few weeks ago. stuart: why did you do it? >> personally i like him a good guy and i don't see how everybody says he's so bad for business.
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thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it.
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♪ cue the harp. you're looking at what is called the world's greatest white diamond. it comes from africa, it's about the size of a small egg. it's an oval stone, it's going to be auctioned in hong kong october 7th. the pre-sale estimate, 28 to $35 million. enough of the bling. here is charles with making money and his pick it.
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charles: a cloud computing stock, run away for long time and hammered recently, but i think it's oversold. it's still not a valued play, but any traditional valuation metrics. the company carved out a nice niche. public and private clouds, they're ahead of the game on this. i'd like to see the margins improve and clash flow. still volatile, but a move through 50 i think is going to reclaim some of that old momentum. stuart: when you say the cloud in the-- i mean, the tangible? >> they have the servers, giant servers farms. 98,000 servers and they add servers every quarter and they add more people every quarter. they're doing a hardware signup, but there's a public cloud which you and i could use through one of these, any sort of services that advertise and individual companies have enterprise clouds and probably
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merge those together to make it work better and these guys are at the forefront. stuart: i think of them has a utility, basically. function like that. charles: you talked about 10,000 e-mails coming through the smart phone of the listen, we've got to build up the pipes and the only way is through the clouds. stuart: rack space, got it. thank you very much. our next guest is using an example from our show to show why libertarians are dividing the republican party and going, as she says, liberal. and scotty hughes from the party is here. give me an example where upping that libertarian thinking equals liberal thinking? >> well, i think the part that we need to look at because libertarians are a very big part of the tea party movement. we need to sit there and separate them on the fiscal issues to which we agree with them almost 100%, to the social issues. when we're living in a time when the younger generation voter is disenfranchised because they don't trust our government, don't trust the
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republican party, don't trust the democratic party, libertarians seem like an easy answer for them. we need to identify, do you think we need to be unregulated when it comes to drugs, alcohol, abortions or pornography? is that truly what you believe in? >> well, then, what you're saying, there is indeed a split and by identifying this split, maybe you make the split even worse, within the republican family, within the tea party family? >> you're completely correct and by the way, stuart, you did a fantastic interview last week with the lumber liquidators ceo and thank you for pushing him on that issue. why are you supporting president obama when you're obviously a small business guy? and nobody's put more of an assault on the small business environment than this administration. and it's those questions that need to be answered, but in reality when it comes to it, i'm not here to defend the republican party, we have some major issues when it comes to trying to get the conservative voters back and there's always been three parties kind of in this political system, so, this
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is nothing new in american history. the problem is that the democrats do a really good job of taking advantage of single issue voters and those social issues to bring them over to their side. and we need to make sure that we inform them that before you could think about your social lives, you need to be thinking how much money you have in your pocket to pay for it. stuart: 'cause your primary focus, you as a member, your focus is on taxes. tax enough already, t-e-a. that's your focus. do you really want the libertarians involved when they're talking about mostly social issues? >> well, that's the key, no. i think real libertarians, you've got great, great libertarians that work for the networks, the judge is one of my best examples. i agree with him with the issues. and socially. and we talk about fiscal and strict constitutionalism which is what a lot of the
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libertarians believe. when they're going into 2014 and 2016 that the democrats don't take advantage of those single issue voters just looking at homosexual marriage or marijuana rights, those sorts of things and bring them over to their party line and bring them over to their candidates. stuart: scotty hughes, thank you for joining us, we appreciate it. >> thank you, stuart. stuart: she just mentioned the judge, who is indeed a libertarian and he's going to join us in just a moment. he's going to have a response to what you just heard. look at him, here he comes. charles: oh, man. stuart: watch out. charles: looking like high noon. got that gary cooper look going. stuart: is he carrying a .45? ♪ i was born free ♪ i was born free ♪ i was born free, born free any last requests mr. baldwin?
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do you mind grabbing my phone and opening the capital one purchase eraser? i need to redeem some venture miles before my demise. okay. it's easy to erase any recent travel expense i want. just pick that flight right there. mmm hmmm. give it a few taps, and...it's taken care of. this is pretty easy, and i see it works on hotels too. you bet. now if you like that, press the red button on top. ♪ how did he not see that coming? what's in your wallet? like carpools... polly wants to know if we can pick her up. yeah, we can make room. yeah. [ male announcer ] ...office space. yes, we're loving this communal seating. it's great. [ male announcer ] the best thing to share? a data plan. at&t mobile share for business. one bucket of data for everyone on the plan, unlimited talk and text on smart phones. now, everyone's in the spirit of sharing. hey, can i borrow your boat this weekend? no. [ male announcer ] share more. save me.
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>> look at the markets. virtually no response to the news that came 26 minutes ago that mortgage rates have gone up a fraction and that the service sector was doing quite well, thank you very much indeed. no response, charles. charles: i don't care what you say. stuart: i've got a couple of big names that are responding to news.
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glaxo's experiment cancervax seen disappoints. it was a skin cancer trial. the stock is down 1%. united needs pilots so it's recalling 600 of them currently on furlough. that stock is up 1%. we heard from scottie hughes, didn't we, said that libertarians are the next liberals, dividing the g.o.p. let's bring in our resident libertarian, he's in a good mood. >> don't tell stossel i'm the resident libertarian. charles: one of the resident libertarians. stuart: she says that you guys, libertarians are giving an opening to the democrats and president obama because they can pick on your single issues, like, for example, the legalization of drugs. it's very easy to demagogue you guys on that particular subject. >> yes, for the most part if people are devoted to a single issue, whether it's right to life or lower taxes, or
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legalization of drugs or same sex marriage, just a single issue, yes, they can be picked off. i'm in favor of same sex marriage because in my view it's none of the government's business who you choose to marry. the liberals in favor of president obama are in favor because of a different reason. stuart: but you are giving them, you're giving the colle collectivists the way in because most people do believe in a certain amount of government. >> i am skeptical of all government. the question for me, what human behavior may morally and constitutionally be interfered with by the government in a free society if you would grant a larger area, i would grant a smaller election. the goal in an election is to
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find common ground on that principle. would chris christie regulate more private behavior than rand paul would? would rand paul regulate enough private behavior to appeal to the moderates in the republican party? you know, an election is a choice between one or two or three candidates, none of whom is going to be perfect for you, but one of whom is going to be closest to your views. so, libertarians would generally choose the person who believes that governor is best. and i quote our hero thomas jefferson. stuart: so essentially you're agreeing with scottie hughes. >> i'm agreeing that people hung up on one issue are ripe for the picking by either side. stuart: but your positions on government would be easy to demagogue. >> my positions on government generally spring from the common theme that government should be mistrusted rather than trusted. stuart: okay. would you agree with the
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following: the principal split in the republican party, not the tea party, the principal split is between the rising libertarians and their government and the established republicans and their view of government. >> i agree with that, i think it's personified by rand paul versus chris christie, at one time it was ronald reagan and george h.w. bush and sometimes they can get together. that didn't happen with goldwater and rockefeller. it happened with reagan and george h.w. bush. >> i'm getting hit with e-mails and tweets. big deal about you maybe running for office themselves. people like you, the answer you articulated, i haven't heard any politician speak to the issue the way you just did. would it be something you consider? >> i consider these 100,000 folks to be complimenting and flattering me.
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i haven't met them, onthem and i have nothing to do with this effort, but i consider it flattering. now, when varney contributes money to that group, then i've got to stand up and pay attention. stuart: you could have a lot on the show every day. all right, judge, thank you very much indeed. always good to see you. president obama back tracks his red line on syria. now, puts it up to congress. and the wall street journal's dan henninger not happy. playing the political game, we get his reaction to this after the break. >> i didn't set a red line. the world set a red line. the world set a red line when governments representing 98% of the world's population said the use of chemical weapons are abhorrent and passed a treaty forbidding their use, even when countries are engaged in wars.
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♪ stuart: and northern california county has voted to succeed from the state. the succession still needs approval from the state
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legislature and congress and they will not get it. to sandra smith at the cma. a bit call on where the snp 500 is going. sandra: morgan stanley out with a very bold call. they are calling for it to go to eight team 40 in just one year. the reason they are calling for this is they are saying they do see growth in the economy. all of which will add to a 200-point game. >> that would be a rally and a half. >> they had been reading my work.
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the dollar has not really been as weak as the fed wanted it to be. stuart: the dow is up two points. >> let it have a few days. i do not mind if the market pulls back. i actually want it to. having said that, i prefer when wall street jumps on the bandwagon later. not now. stuart: 11% across the board. charles: i like that. stuart: president obama sends a very clear message. we have it on tape. here is the quote.
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we start seeing a whole bunch of chemical weapons moving around or being utilized. now he is putting the ball in the republicans court. we have a harshly critical article in today's wall street journal. >> i do not like the way he is conducting the presidency. he wanted to be president of the united states. one of your functions is commander in chief. you are to lead the united states and foreign affairs. he is walking back from the commitments he made on syria. he is very good at expressing he needs forceful statements.
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stuart: why does he do this? now that he has put the ball in congress' court, he would be personally persuading them to support what he wants to do over there. it is not presidential. stuart: do you think that that critical opinion well washed over and affect the performance? >> the big issue is presidential leadership. we will see what emerges from this syrian episode.
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public opinion is divided on syria. it is at odds with the truth. if his approval begins to head towards 40% and people start withdrawing their support, the democrats will be in trouble in 2014. republicans sweeping back into power. taking control of the senate. at that point, barack obama would be a lame duck. stuart: if he goes wrong, he can blame the republicans. >> i just do not see that. he is the commander in chief. he has to make the policy decisions. he is simply asking them to
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support the president in an operation like that. they should support the resolution and force barack obama. that is something he does not want to do. they have nearly 3.5 years to go in this presidency. the world has to be led by an american president. we have to somehow induce this person to perform his functions. i would take the vice president. i think that any other democrat is more adept at performing the political side of what you need to do to be president. obama is so stand off -ish and so the material in his commitment to the things he does that it is putting the united
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states at risk overseas. it is causing these extended low growth rates that we have had domestically. the last thing the american people expected when they elected barack obama is that their country would go into decline. stuart: thank you very much, indeed, sir. we have come down a little bit on the dow. we are up seven points. a six-point game. that is it. are you ready for some football? i do not have the right accent for that. [laughter] stuart: we have a hall of fame or after the break. you know it always gets interesting when i talk about football. remember this?
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would you go back for one season? >> yes, i would. i can still play the game. i think i am better than some of the receivers out there. ♪ with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everi'm with scottrade. me. (announcer) scottrade. awarded five-stars from smartmoney magazine.
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bounce keeps my clothes fresh for weeks, even when they've been sitting in the drawer a long time. like those jeans you can't fit into anymore. uh...by that, i mean... [ male announcer ] how do you get your bounce? long-lasting freshness. ♪ stuart: they have our report on private-sector job creation. 176,000 jobs created last month. july's number was revised down
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to 198. the report comes ahead of the big number. we have verizon communications considering the largest corporate bond issue. the "wall street journal" reports that companies are considering selling as much as 25 billion in new bonds. boeing tripling over the next 20 years. it expects it to rise 7% to 2002. ♪
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stuart: we talk a lot about tesla. nicole has found another headline. nicole: i love this story. let's say it is trading around $170. the fair value of tesla is not $170. it is actually $67. he said it seems absurd. he said he made assumptions that tesla will grow as large as audi.
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it makes revenue -- that is what he is saying. stuart: he is a guy to reckon with. good stuff. thank you. charles is going to make us some money. charles: it is already up $3.05. this stock has been beaten down tremendously. my number one thing was the eye. they killed themselves. you want a message to washington, d.c.? they have food inflation. they have infrastructure problems. the stock is oversold. i'm looking for $34, $36 a
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share. it is an absolute nightmare. stuart: you just want to get in there when it is low. football is back in america. we have one of the greats with us. welcome to the program. >> thank you for having me today. stuart: i bet you have never been interviewed by and english man. [laughter] stuart: you are a big guy. if you are offensive lineman. you are the guy who protects the
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quarterback. he retired in 2006. you are a college coach in santa monica, california right now. >> everything right except for the coaching part. i coached there in 2009. stuart: you do not get the big bucks. do you feel a little resentful? >> normally, the tackles get paid a little less than the quarterbacks. maybe 30-40% less. stuart: football is a violent sport. we love it. football is america's sport.
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>> we love it. i was on the plane the other day fly back from new orleans. everyone is so excited about the season and everything. when guys do have those types of injuries, they do need to get the right medical care. i think they are trying to do the best that they can. stuart: interesting. do you want to give us your super bowl pick. >> i think, looking back at history, the last time the broncos had a great year like they did, they got beat by jacksonville in the playoffs. i am looking at a repeat of 98.
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denver broncos versus the atlantic falcons. stuart: nicole petallides also picked the denver broncos. in fact, i cannot quite read all of this. chicago bears from sandra smith in chicago. >> chicago is not ready yet. stuart: do you ever watch soccer? >> occasionally. stuart: do like it? >> it is okay. it is not physical enough. stuart: it was a real pleasure having you with us today. we love having football players that are truly great. thank you very much for being with us. we do appreciate it.
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charles: the left tackle is typically the second-highest player on the team. they protect the quarterbacks blindside. ♪ thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the pt. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... to the finest comforts above. we're not simply saluting history... we're making it.
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[ villain ] well mr. baldwin... it appears our journey has come to a delightful end. then i better use the capital one purchase eraser to redeem my venture miles for this trip. purchase eraser? it's the easy way to erase any recent travel expense. i just pick a charge, like my flight with a few taps, it's taken care of. impressive baldwin. does it work for hotels? absolutely thank goodness. mrs. villain and i are planning our... you scare me. and i like it.
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let's go what's in your wallet?
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stuart: a new study reveals that those who saved more are perceived as more sexually attractive. charles: they were talking about a lifelong mate. if you are talking about a one night stand, i think the spender is probably more attractive. that is my own opinion. [laughter] stuart: get me out of this, please. more varney next. ♪ [ male announcer ] these days, a small business can save by sharing.
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like carols... polly wants to know if we can pick her up. yeah, we can make room. yeah. [ male announcer ] ...office space. yes, we're loving this communal seating. it's great. [ male announcer ] the best thing to share? a data plan. at&t mobile share for business. one bucket of data for everyone on the plan, unlimited talk and text on smart phones. now, everyone's in the spirit of sharing. hey, can i borrow your boat this weekend? no. [ male announcer ] share more. save more. at&t mobile share for business. ♪
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at&t mobile share for business. no two people have the same financial goals. pnc investments works with you to understand yours and helps plan for your retirement. talk to a pnc investments financial advisor today. ♪ stuart: we had a lot of comments about my take on jack nicholson. out of time i am afraid.
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we will read some tomorrow. here is dagen. dagen: i want to know what comes first, sex or money? stuart: out of time, and dagen. dagen: president obama and russian president putin together shaking hands at the g20 summit. who drew the red line? president obama said that he did not. donald rumsfeld says that he absolutely did. senator john mccain kaup playing a game on his iphone. he said worst of all, he lost. the real winner in all of this, the company behind that game. finally, it begins. the nfl season kicking off.

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