tv MONEY With Melissa Francis FOX Business April 11, 2014 2:00pm-3:01pm EDT
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the oakland a's and why this one may be headed to the supreme court. because even when they say it's not, it is always about money. melissa: we want to start first with the markets because look at that! just sliding, the hits keep on coming a huge whiff on earnings from jpmorgan of the is the nation's biggest bank dragging down the entire market? here now our very own charlie gasparino and "barron's" editor jock otter and barry levy. charlie, seems like almost every day this week we get to the hour and all of sudden it starts to head south. >> jamie dimon is blamed for unrest in the world including this market. i just want to get that out there i will score points with the administration. i will say this market is very highly correlated to financials.
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melissa: yes. >> hates bad news coming out of financials. i know wells fargo did pretty good today in their earnings. jamie dimon didn't. what the market tells us as the day goes on starting to pick up losses. the word next week about morgan stanley and goldman sachs and some of the other financials, if they underperform, this downdraft we're having in the market could turn into a 10% correction. melissa: jack what do you think. >> ily it also has an awful lot to do with the glamour stocks, twitters and facebooks and teslas that were doing so well. hey, if you will buy twitter 40 times future earnings, probably won't hit, why not own jpm at 11 or 12 times earnings? those things lost their mojo and gilead, lot of their mojo. i think that caused investors to get a little worried about the rest of the market. melissa: hang on to your thoughts, jared. we'll get you to in a second. i want to get to the exchanges to hear from our folks on the floor there. nicole petallides at new york stock exchange. jo ling kent at nasdaq.cole, itg again today. here we go.
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>> it really does. we're sliding over last hour, just moments ago we were right near our session lows. the dow jones industrials, down 116 points. at 16,053. the s&p 500, down half a percent, 412 names out of 500 are lower. it shows you that we're seeing selling upon selling. nasdaq, i will let joe get into that one some more, we were down 3% yesterday. and we were down 3/4 of a% yesterday. what is interesting all 10 sectors we follow is are lower again. that doesn't happen too often f that were to occur only 7th time this year in 2014. this shows a risk of-off mentality. meantime the vix, the fear index up again. remember yesterday it was up 17%. today it is up 7%. financials also to blame. melissa: nicole, thank you very much. i get over to jo ling kent where a lot of pain has been to blame. nasdaq trading lower but better
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than yesterday, right, jo? >> yeah but we're swinging back and forth, sitting on a seesaw at nasdaq today. we saw the biotech index actually touch bear market territory. right now we actually recovered a little bit today but right now sinking back towards that bear market territory. look at gilead sciences. they have actually recovered of all the biotechs, doing very well today. we're also looking at some of the worst performers. fasinol, intuitive surgical, broadcom, sandisk, amazon. this is the scene of the crime in terms of all the indices. melissa: thanks very much, jo. i want to bring my whole panel back in. jared, the next two hours trading into the close, it's meaningful in terms of what people talk about over the weekend and how they feel about going into trading next week, isn't it? >> it is extremely meaningful. funny you bring it up, one of the earliest trading algorithms i wrote, that volume carries in
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the last who have hour of trading and carries into the morning with a swing trade. we talked about russell, into the nasdaq, into the s&p, into the dow, all those down below that 50 day moving average. melissa, as we start to slide lower in the afternoons, it is sentiments, right? if you don't want to go into the close long a position it tells about, speaks to the confidence of the average investor which right now is deteriorating. i'm starting to see it in notes. we had that merrill lynch analyst talk about 10 or 15% correction. you're starting to see more real prominence in fear coming into the market. not to freak anybody out. it looks as though we're accelerating, not slowing down as we move lower. melissa: have we gotten to the point the fed respond to this do you think. >> fed responded last week where janet yellen said we'll keep upon the pace of tapering which is a meaningless taper. melissa: throwing away targets. >> throwing away targets. basically that was all dovish and bullish signs for the market. melissa: it was but didn't
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stick. >> here is problem. like pushing on a string. sometimes, this is where it gets really dicey. i don't think average investor, gentleman mentioned average investors, the average investor is not in the market. this is professional traders market. people in mutual funds, 401(k)s. >> i've not seen the outflows, what is going on with the outflows and inflows in certain mutual funds. here's the bottom line. this is, this is where it gets tricky for policymakers. at some point, the economy, does have to stand on its own and earnings have to stand on their own. melissa: right. >> you push on a string where you just keep printing money. maybe this is inflection point where this is the case and we're due for 10% correction. i can't tell you. melissa: hang on, another big telling point, this was supposed to be the biggest week of ipos since 2007. there were eight set to price. only four made it out of the gate this morning. jack, that has been one of the things. that there was this rush of ipos. to me that felt very toppy.
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>> of course. when you say the biggest market for ipos in seven years, look out below!, that is when it always happens. when is great time to buy ipos? when it is such a bad market you can't bring anything to market. few ipos get through, that road show they had something to say, it was probably a good investment. when everybody gets public quickly best bottom false out don't buy those ipos. melissa: those brave enough to go out in the market. four went inside to hide and play again another day. guys that came out, sew wii's kitchen, doing really well despite everything that happened zoe's kitchen. >> there are good individual stories. it is not everything is going to heck in a hand basket a lot of stocks are overvalued and shouldn't be trading where they are and due to be corrected. there are new ones and existing ones that are new with value. even outperforming if this thing
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begins to sort of stumble and correct even good ones will be pulled down. you need to be selective to hunt and pick. >> i met with a fairly executive at major private equity firm. i said this is the best year terms of it ipo. private equity firms made a lot of money. yeah we'll expect expect a slowdown. why is that? ipos are correlated to economy. will the economy expand and people byproducts coming public. he says listen, every seven years we have, that's the sort of natural sort of turnover, we have a recession. we could be heading into, this could be all sort of, just, not saying it is but looks like this could be sort of foreshadowing we're going to economic downturn from the crappy levels we're at already. melissa: doesn't feel like we recovered from the last one. gentlemen, thanks to all three of you. "weird science," crazy alternative therapy, that will make ukraine crawl. bonus to quit your job.
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melissa: amazon ceo jeff bezos throwing down a double dog dare to any employees who are not happy at the company, offering them up to $5,000 to leave in apartmently name paid to quit program. charlie gasparino and jock otter are back with me to discuss this one. very interesting. 5000 bucks to leave. they say it is about morale, if you don't want to work here, take the money and run. >> i think it is good. at least he is paying them. most people say get the hell out and most people fire you. melissa: i think he wants to replace folks with robots and automation and pr stunt. think buyout and pr stunt. >> deportation. the problem here is that as any manager knows, there are people who you kind of wish would get the heck out of here and others
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who you really want to keep. you throw $5,000, the ones that take it easily get new jobs. the ones who don't take it, i don't want to get a new job, and stay and you end up worse than before. melissa: you think it can backfire. >> how can it backfire? melissa: he is saying good people leave and crummy people stay. and lose people that can easily find another job. >> you will lose them for five grand. at margins these are not computer programmers. melissa: talking about the folks here, work in the big warehouse who i think will be replaced by robots. >> maybe they will. by the way, i don't think he is worried about losing their technology. no offense, i worked in warehouses. it is back-breaking work. hard work. you have to be strong to do it. you can be replaced pretty easily. melissa: can you see somebody else falling suit, with this, jack? >> he is following zappos with fantastic company to work with. he deals with them. all the employees seem happy
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when i deal with them. again you have to be in the jeff bezos, i can't care about margins i want to make a great company mode. >> think about who he will replace -- i'm not denigrating people who did manual labor. i did it. my dad did it. he is replacing people that are replaceable. melissa: 40,000 people are eligible in order to take it. i think looking down the barrel, they have a lot of temporary workers and flexibility, they are smart about the way they staff the facilities. when you look at jobs, these are things that could be replaced by robots. at the same time, you heard more and more rumblings of we think amazon is taking a great place to work and talking about unionizing. they're trying to go in and organizing the workers and nipping the whole thing in the bud with a very clever p.r. campaign. >> he certainly does not want unionization in that shop. again it is all about margins. melissa: all these guys are liberals until the unions come in. melissa: on that note. thanks to both of you. go ahead. >> kathleen has been here
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through the long fight to pass the affordable care act. she helped guide its implementation even when it got rough. she has got bumps, i've got bums, bruises. melissa: hmmm. kathleen sebelius stepping down today as u.s. health secretary. president obama nominating budget director, sylvia matthew burwell in her place. let's bring in heritage foundation steve moore and charlie gasparino and jack otter are here as well. steve moore, what did you think about this one? big surprise or not really. >> surprised to me she lasted as long as she did. five years is long time to be a cabinet secretary. she is like conjoined twin with respect to obamacare. her whole legacy will be decided over the next few years as whether this thing is a complete flop or whether it make as recovery. i happen to think it will be an economic and health care flop. but, interesting thing is, the new choice, this former budget director, who knows. maybe melissa, we might put
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someone in hhs who wants to control costs. that would be a first. melissa: do you think that is really possible or are you being glib? >> i mean, actually i do think the fact that she comes from omb background that manages, pennies and quarters and billions of dollars i think that is probably a good thing. melissa: go ahead. >> people, tim geithner was supposed to be a fairly middle of the road treasury secretary until he gets brainwashed by president obama. i mean really what these people do when they get into these jobs, they follow order from the guy at the top. i don't think you can be, you can be albert einstein and can not fix obamacare. i will say one other thing, you notice when he was talking did you hear the sirens going on? there were sirens. melissa: what did you think coming to arrest everybody? >> i don't know. something weird. melissa: it a lot like corporate america. at time when everything was going wrong, everybody was saying why does she still have a job. he says, i'm standing behind her, i'm standing behinder her.
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the countdown clock is on until she announces her departure. why aren't we more honest, fire at time. i will stand behind her and she is gone. >> that is how the game is played at corporations. it is very silly game-- >> is it her fault? melissa: steve, give you last word. go ahead you were trying to get in there. >> is it her fault? yes, hell yes, it was her fault. she was one of the major people who put this thing together. >> this is called obamacare not sebelius-care. >> she was instrumental. >> she did not put the legislation together. >> isn't it interesting, last three years all bad news about obamacare. last week or two they have a little bit of good news so she is going off -- melissa: i noticed that as well. we got to go. more proof when money talks everybody listens. which spoke with an attorney earlier this week. you remember him in the tie, right? he was providing lemonade to a dissatisfied tesla customer filing first lemon lawsuit against the electric car
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darling. our interview prompt ad testy response from the tesla camp. he is firing back on his website, quote, tesla takes big corporation approach attacking its customers rather than addressing own failures, diminish the person make everybody his fault. why not instead move tesla has a problematic model s they just can't fix? keep you post he had. elon, call in, come on the show, respond. coming up truck-maker smith electric at the center of a media storm after allegedly wasting millions in taxpayer money. the ceo wanted to be here on "money" to defend himself. who are we so say no? he is coming up. medical dollars straight out of your wildest nightmares. you won't believe strange alternative therapy. whoa. many people are turning to leeches. you can not miss this one. do you ever have too much money? oh. i ys say be thman with the plan
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melissa: dr. manny is here for today's medical dollars. i have to tell you, we've got something for you, not for the faint of heart. from migraines to high blood pressure, people are turning to one-of-a-kind very unique alternative medicines. holistic health experts say leeches are the answer to many of our ailments. dr. manny and i had to explore this. we sent jo ling kent out because i sure as hell wasn't going, to get the lowdown. >> you are a certified medical professional who works with leeches. tell me, how exactly does this work. >> the philosophy of this method is take away from your body everything that caused the problem initially. this is not a medical peel or
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chemical that will cure something. you can treat high blood pressure, high cholesterol. you can treat varicose veins. you can use leeches for migraines. all infections. literally all infections can be cured. >> people a little bit freaked out here when they walk into to get the leech treatment? >> the freaking out kind ever mentality is lack of knowledge. it is a little prick and redness on your skin. the skin can be tougher when you touch it. redness slightly. itching, none are huge problems. how much does a typical cost break down? >> the basic cost per visit calculated about amount of leeches is used. $40 one leech. >> $40 one leech is hough you're charging customer. >> yes. there are many medical doctors with all due respect they are not trained in school about leeches. they take the stance and talking their giving different opinions
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about leeches. they don't know about this. >> so the take away, andrew, leeches help you live a better life? >> yes they do. your hearing will be better. your eyesight gets slightly better. issues with body weight. it is jump-start for diet. i don't know why people are trying to get back to the origin of already proven. it is a time proven method. >> this one is getting a lot more active. melissa: oh. joining me now, dr. manny and our very own brave soul, jo ling kent. jo, you went and did this story. i noticed the leech was crawling on hand one of our producers not you, who buy the way is out sick today. [laughter] >> that is true fact that is correct. melissa: wow! >> thankfully the leech did not affix to her palm. it was crawling around for the camera effects. what is interesting here, this particular doctor, the leech doctor. he is actually not a c he says that there are, there are safe
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ways to do this. and, the leeches are only used once. there are many, many different opinions on this which i guess -- melissa: dr. manny is recalling in horror. he said it will jump-start any diet. if you have, i have high blood pressure. my blood pressure is higher after watching that story. >> if i want to be black and blue i will get a hickey first. listen in 2:00 the -- 2004 approved leeches for medical therapeutics. i used them in the past. they're used in clinical scenarios with major injuries like fingers or transplants flap in the neck. melissa: in this day and age? >> in 2014, yes we do leeches for those types of indications because when you do a transplant of tissue into the body there is lot of swelling edema. after day or two -- melissa: weight loss, blood pressure. >> that other stuff forget about it with my dear friend wearing white coat. there is no data on migraines. only paper i could find, it
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hasn't been proven when, you have inflammatory arthritis, especially of the knees where leeches might take away some of the swelling but -- >> that is the reason he got into leeches because of knee injury he told us from a skiing accident. >> right. >> it is interesting perspective. melissa: what was it like? were you totally grossed out? you didn't let them come near you. >> i'm an outdoors person. i had experiences with leeches in nature. it is not pleasant. it wasn't particularly fun to look at them squirming around like that, but, it is an interesting idea to think about. melissa: she says it is her beauty secret. she says they suck toxins out of her body. >> i know demi. i haven't seen any leeches on her. be that as it may, look at $40 a pop for a single one of these little organisms, he is using 10, 20, sometimes. >> depend on size of patient. >> 400, $500 per session come back next week.
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melissa: $500 a session. >> not covered by insurance. melissa: of course it's not [laughter] >> how much does it cash to create one of those little creatures it? not a lot. look, lowering blood pressure, i find that ridiculous because what you remove bloodwise is tablespoon of blood. by the way -- melissa: i'm going to vomit right now. >> you can get infection from leeches they're not properly cultured. melissa: i will barf. we're leaving it there. thanks, guys. >> he is making money off it. melissa: no doubt. that is why we did the story. he is making money. that is our hook. coming in smith electric ceo is here on money as he battles a media storm. he is accused of wasting taxpayer funds of the it is time to hear his side of the story. we report, you judge. who is making money today? how about a guy selling fresh air in a smog-filled chinese city. yeah, that's something. "piles of money" coming up. ♪
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also, general motors was hard to work with. this is part of a large volume of documents that we are looking at right now. >> what are you seeing in the pits of the cme? >> a very interesting selloff. there is a lot of concern over russia. the geopolitical risk are starting to rise. traders are starting to exit those types of markets. china is slowing down as well. they have some weaker economic data. a lot of people are welcoming the correction. this bull market has been going on for about five years now. >> thank you so much for that. more taxpayer money risk.
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a kansas city plant. this years after receiving billions of dollars of government money. neither of those targets were hit. now the factory is shut down. here to defend the company is brian cancel. thank you so much for coming on the program. there has been lots of criticism. taxpayers are frustrated. we are told reports that you produce 439 vehicles. that you created 70 jobs. it basically breaks down to a cost of $437 a job. >> we are at a point where i think we have had more success than anyone else on the planet. >> what about tesla?
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>> the intent of the grant was to get that real-life data. we have delivered over $8 million worth of real data. we have put the needle on the understanding. we are creating an industry. the job creation is certainly in front of us. we are extremely excited about the marketplace. >> i do not know if you are creating an industry. you can raise private money. you are able to sell it to the public. you got money from the government. it seems like you were not able to make a go of it. how is that a success? >> we are absolutely making a go of it. unlike tesla, they built the
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roadster. we are transitioning to volume. we are in a natural position where you suspend production. it is just a natural turn. we are seeing more global demand today than we have ever seen. we absolutely know that we are creating an industry. >> where do you go from here? are you looking for a new branch? >> it was meant to get a number of years of data on specific vehicles. you did not reach the very stats
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that were given to you for this very money. i do not know how you call that a success. >> we only received funds as the vehicle hit the ground. we have not received a penny for the additional vehicle. the department of energy says you have received $29 million of the 32. you have only created 70 jobs. you are a long long way from the 225. you think that is the difference? >> absolutely not. we are at a peak of 120 jobs. we certainly see that the growth of the industry in front of us
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the volume supply has the ability and that is what enables the job. you cannot predict how any of this will play out. there are industries getting a solid supply chain behind it. >> 's people are frustrated out there. you are taking a lot of heat. you came out here to face this. thank you for coming on. >> thank you very much. >> told fox news contributors. >> he came on to face the music. you have to give him credit for that. >> a good interview. i learned a lot from that. i hope that he can turn this around. i have never been a big believer in electric cars. it makes it really difficult for electric cars to be the auto of
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the future. i heard this argument about profitability just around the corner. i have heard this so many times. until the day elon musk has certainly changed the image of electric vehicles out there and shown ways it can be done. why did you take government money. it was there and it was cheap. i did not actually need it. >> and my opinion he is a thief. they are doing it with $32 million of taxpayer money. all of these green energy
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♪ [ male announcer ] you're watching one of the biggest financial services cpanies in the country at work. hey. thanks for coming over. hey. [ male annouer ] how did it come to be? yours? ah. not anymore. it's a very short story. come on in. [ male announcer ] by meeting you more than halfway. it's how edward jones makesense of investing. [ male announcer ] by meeting can you start tomorrow?. yes sir. alright. let's share the news tomorrow. today we failrly busy. tomorrow we're booked solid. we close on the house tomorrow. i want one of these opened up. because tomorow we go live... it's a day full of promise. and often, that day arrives by train. big day today? even bigger one tomorrow. when csx trains move forward, so does the rest of the economy. csx. how tomorrow moves.
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♪ [ male announcer ] help brazil reduce its overall reliance on foreign imports with the launch of theountry's largest petrochemical operation. ♪ when emerson takes up the challenge, "it's never been done before" simply becomes consider it solved. emerson. ♪ ♪ >> i am melissa francis with your fox business brief. a plan to settle a bad debt deal. ubs and bank of america $85 million. it had been costing the city tens of millions of dollars each year. they believe the threat to be
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>> whether it is on wall street or main street, here is who is making money today. prophets must weaker than expected. stocks down 3% right now. jamie dimon is getting hit on his wallet. he is good. he can afford it. also making money today, the chicago restaurant that is cooking up a storm in honor of national grilled cheese month. the billion-dollar grilled cheese sandwich comes at a more reasonable price. just $100. there are gold fox of course. i love that idea.
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making money out of thin air. the beijing artist and businessman that is selling jars of clean air for nearly $900 a pop. that is a business i could get into. genius. the oakland a's are desperate to move out of their stadium and find a new home in san jose. san jose is challenging the decision with an antitrust lawsuit. fellow gregory is joining us now. mayor shirley baseball has a
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constitution. it governs the operations of the clubs in their dealings with one another. the constitution says san francisco has an operating territory that includes the city of san jose. >> that is too bad. we really wanted to hear what he had to say there. we are having some technical problems with that interview. we certainly want to hear more about that story. the oakland stadium is really falling apart at this moment. let's take a look at the markets. it is really the biggest story of the day. the dow is trading down right now. down 144 points. nine tenths of a percent there. the nasdaq having a tough day as
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well. we also want to touch on shares of gap. here are some things that we know about that as well. week march sales results. that is just one of the stories out there within the market. we are seeing a lot of red. that is where we have seen a lot of the pleading during the week. markets not hitting a home run today, as you know. liz, you have really presided over the most important hour of the trading day here. i am looking at the dow thinking. what do you expect. in the last hour yesterday, we saw an attempted comeback.
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that is why we are bringing in some smart people. you could blame jpmorgan numbers. looking at these banks ahead, they are coming out next week. we are getting paul miller. he will look ahead to the city groups of the world. i am talking about the regional bank names. our investors missing the biggest elephant in the room? we'll also be talking to mike holland. we will talk till about whether there really is a slowdown affecting our markets.
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>> this is really a very important time for the market. everyone will be talking about this over the weekend. we are looking at the dow right now. down almost a full percentage point. the s&p down a full percentage point. coming up, it is just 81 days. eighty-one days until i get all my disney cruise and headed to the sunset. i am kind of dreading this. we will see if it works. you can never have too much money. we will be right back. ♪ [ male announcer ] when fixed income experts... ♪ ...work with equity experts... who work with regional experts... that's when expertise happens.
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market today after another wild week. nicole, what are traders saying? you are seeing even more decline. 450 of the 500 names have found error on june names. also, coupled with the action of this downside. heavier volume. that there's sentiment from yesterday. even heavier volume from yesterday. >> the countdown to my disney cruise is on. eighty-one games until my entire family -- no, i am just kidding.
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they are doing a lot to try to get people to feel better about cruising. the cruise industry a little bit of a rough ride here. cruising around with everyone throwing up. putting out acts of names you would recognize. to answer both of your questions, yes, they are doing both of those. royal caribbean is adding climbing walls and specialized restaurants to. is it working? yugo brand index. what they found is within 344 days of the last disaster, it has already brought the brand back to where it was before the
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disasters. 565,000 people got on their ships alone. you are in good company in they will go out of their way. >> it is amazing to me after you see all of the pictures. they have the $32 a night bruce where kids sail for free. that is one of the promotions. how can you make money on that and how desperate are you? >> you know how desperate they are. a year ago people like you were saying i am not going. they did what they needed to do to get people like you on board. most importantly, you are going. you may with your kids away. you'll be sitting by a pool with a drink and a boat. you will be pretty active. >> i will be so hammered i will
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not notice anyone vomiting near me. thank you so much, bruce. appreciate it. it is going to be a home run. san jose removing the oakland a's. that is when we come back. ♪ ion - ion - it could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take alis if you take nitrates for chest pain, as this may causan unsafe drop in blood pressure. do not drink alcohol in excess with cialis.
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♪ ♪ melissa: okay, batter up. we resolved our studio issues. the oakland a's looking to change stadiums, they are facing local resistance. break down for me what exactly is going on on here. the san francisco giants have a beautiful stadium, state of the art, fantastic, totally sold out. they're trying to keep the oakland a's from moving to a new system. what are they afraid of? what money do they think they're going to be losing by letting
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these guys move? >> melissa, you've got the precise question. it makes no sense. the other 28 openowners should support -- owners should support the a's moving to san jose. the a's are going to move further away from san francisco, and the fan base for baseball overall -- melissa: but, we don't have a lot of time. there's something they're worried about though. what is it? do they think all the big tech money in silicon valley is going to instead go to the oak poland game? what is it? >> we don't understand that either. in fact, we've tried to reach out to major league baseball. the mayor of san jose has said what is preventing the a's from moving down here? all we're getting is a stone wall. i wish someone would ask the giants that question. i wish you would ask bud selig that question. melissa: well, we're going to do that. we apologize for our technical difficulties, but we're not going to let this go because it
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doesn't make a lot of sense. phil, thank you so much. we apologize again. that is all we have for you. i hope you're making money today in spite of the fact we're looking at a market down 128 points. tough week here on wall street. here's liz claman, countdown starts right now. ♪ ♪ liz: what will this last hour of a wild trading week bring us as the markets gyrate again? a tale of two banks. jpmorgan kicking off first quarter bank earnings with a big miss while wells fargo beat. what hints do they provide on citi, goldman sachs next week? buy or sell? are investors failing to recognize the real culprit of this market mess? could it be china? mike holland who sits on the board of directors of the china fund on where the real blame might lie. and smartphone wars continue. samsung galaxy s5 turns up the
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