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tv   Varney Company  FOX Business  April 21, 2014 11:00am-1:01pm EDT

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latest pipeline debacle. good morning, everyone. no decision until after the election. why? pause they were bought up by a billionaire, and they think another delay will please those wealthy environmentalists. we have another report because killing keystone is making the headlines today wanted to avoid. another headline, class war. that is the democrats' talking point for november. their strategists believe it worked before, so it'll work again. wait until you hear what james carville and debbie wasserman-schultz have to say. one more, ethanol is worse to the environment than gasoline. the markets moving up a little. spring is here, and "varney & company" is about to begin. ♪ ♪ stuart: start with gas prices. look at that, keep on climbingment national average for regular a little higher overnight, $3.66 is your current national average.
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but wait, look at california. highest in the nation by a long way, $4.21. underlying gas prices, the price of oil to. where's that this monday morning? $104.51 a barrel. it's up there. sandra smith is with me. gas has been up, i think, almost if not every single day for a month. >> yes. stuart: now, i've got two questions. why is that? and number two with, $4 gas on the horizon for this summer? what do you say? >> let me give you the easy answer, it's geopolitical tensions in ukraine, okay? it's the federal reserve pumping money in the system, devaluing the u.s. dollar, driving up those commodity prices. the more difficult answer as i look into this gas price rise is consumption versus actual supply. we are using more gasoline today than we were several years ago. stuart: yeah. i hear it's up 3.8% in the past year, demand, consumption. >> and last a year we saw the biggest increase in gasoline consumption in this country
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since 2006. so while there might be more flex fuel be vehicles out there, electric-powered cars, we're using more gasoline and in the very short term, we had a cold winter. people are getting outside, they're taking road trips, so there's a lot of pent-up demand in the short-term driving prices. stuart: okay. $4 a gallon, give us a handicap. what's the odds by, say, late summer just for example? >> i'm not trueing to please you, but really there's no economist that's calling for $4 anytime soon. they are saying it's going to the keep going up as the summer driving season starts, but there's no big alarms that we're going to hit $4 anytime soon. stuart: all right, sandra, thank you very much. the dow jones industrial average is, what, a little less than 200 points away from its all-time closing high, that was 16,576. charles, a couple of good rallies, and we've got a new record high. >> at least on the dow, you do. all attention's been on the russell and the nasdaq where all these tech names have gotten hit pretty good.
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a hot of them may have found some footing, of course, bigtime earnings coming out this week. this could be a make or break week particularly for nasdaq which is in that spot between the 50 and 200-day moving average which is really important. stuart: are we back to that feeling which we're used to, market wants to go up? >> it feels like the worst is over with the recent selling, and it's real right now -- really right now about waiting for news. although this anticipation that a lot of bad case things have been built into stocks, so the good news is even if some of these companies come in with numbers that aren't necessarily great, it's already been factored in. stuart: let's move on to nicole on the floor of the exchange. i've got hasbro, a toy company, the stock hitting a high. i thought toy companies were passe, that everybody was going to, you know, ipads and iphones and digital games, that kind of thing. >> right? that's what you thought. well, it could be that everybody's going to digital games and such, however, they're still playing with toys, and what we're seeing for hasbro,
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you mentioned the high. it happens to be a record, all-time high. actually charted it back 20 years. they're doing well both nationally and internationally, even did better. girls' toys and boys' toys doing well with girls' toys outpacing, and mattel, which makes barbie, they didn't do as well this round because barbie wasn't doing as well. but for has pro, it's doing great. -- hasbro, it's doing well. >> i played backgammon last night. stuart: with your daughter? 1-year-old daughter? i don't think so. [laughter] >> i still see the board games out there, the hard games. it's not all about the video games. what's old is cool again. >> ironically, monopoly was strong for them this quarter. and some of the older stuff. but girls up 21%, that's huge. international's big for them as well. stuart: all right. now i want to get back to what i believe was the keystone deback l. i'm even going to go so far as to say the keystone disgrace. the obama team announceed late friday -- that would be good
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friday -- that it would yet again delay a decision. one reason behind that delay? money. billionaire climate change crusader tom stayer, he pledged to raise $100 million to help democrats keep the senate if candidates support climate change legislation. looks like he got a major return on his investment. another delay. then you have congresswoman debbie wasserman schultz defending the administration's policies. democrats, she says, they've got no worries for the election in november. listen to this. >> you have the republican party who is strangled by the tea party, they are weighed down by republican primaries in which the tea party candidates are the likely winners, and we have countless elections now that democrats have won because the republicans have nominated, treatmentists that their voters reject. >> do you see -- >> that's the advantage we will have going into this election. stuart: okay. the extremists, the tea party, right-wingers, extremists. let's bring in katie pavlich who
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joins us now. katie, let me go back to the pipeline, first of all. pipeline first. this delay, do you think this helps democrats overall, democrats overall in the november elections? >> i don't think it does, and i can continually baffle and am puzzled by why the president decides to do this, because the labor unions have a much bigger pull when it comes to the base of the democratic party than the environmental groups do and not to mention across the country people are more concerned about jobs than they are about global warming. now, when tom stayer says he's going to invest $100 million into these campaigns to help the democrats keep the senate, you know, maybe that would help. but in terms of actual results and getting people to work after five years of claiming all they want to do is create jobs, i don't see how this is helpful to democrats. not to mention when it comes to the money, the obama administration is choosing a billionaire over blue collar workers, and i hope they take -- stuart: katie, $100 million for this election cycle is a lot of money.
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now, i'm going further. i'm saying that the president and his team were bought off. maybe i'm being a little strong there, but the money, the $100 million, that had to have played a very significant role. >> well, i think it's fair to say that they were bought off, and i'm just wondering when harry reid is going to call tom stayer un-american as he has with the koch brothers. let's take a look at who he is. not only has he bought off the president here and killed 40,000 jobs or at least put them to the wayside in delaying them, he also is a huge hypocrite considering he is an investor in a company that is building a competitor to the keystone pipeline, and he uses his government friends to snuff out his competitors such as the coal industry so he can boost the value of his solar panels. and so, you know, that hypocrisy is there, but also the fact that he's not so green as he claims he's going to be. stuart: well, he got a pretty good investment for $100 million. katie, stay there for a second. we'll be back in just one moment. merger talks, and for huge
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money. reported over the weekend by the sunday times of london, pfizer reportedly approached its rival astrazeneca, wait for it, with a $100 billion takeover bid. charles, i have to believe that that amount of money is all about the drugs that astrazeneca, the target has in its pipeline. what are they? >> well, they've got 8, 14 compounds. i have their phase iii right here on these lists. stuart: and they're all in the pipeline. >> phase, iii f they make it through, the next thing is drug application. but pfizer only has 20 of which seven look like they're going to make it. but both of these companies, i think it's a terrible match. i really do. they both have had terrible, subpar growth, the earnings estimates are coming down. if pfizer really wants to supercharge its growth, they want to stay in drug, glaxosmithkline would be much better, even novartis, but why not no biogen? growing at 20% a year for the
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last five years. it would be nuts. if they make this deal, i think it would be a disaster for both companies. stuart but both companies' stock up -- >> i know. often we see the two behemoths in the same industry sort of lock on to one another. it won't be the solution. stuart: all right. excuse me. springtime cold. chest is acting up. sorry about that. [laughter] looks like ethanol may not be with as green as earn thought. back to katie pavlich. please be our reporter on this one. who is saying that ethanol is worse than gasoline for the environment? >> so a new study commissioned by the federal government to the tune of $500,000 that was peer reviewed by a scientific journal says that ethanol burns more global warming gases, co2-type gases than regular traditional gasoline does, proving that we're spending billions of dollars in taxpayer money to uphold a part of the energy sector that, a, can't survive on its own and, b, is worse for the
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environment than environmentalists had said or hoped it would be. stuart: so do you ever see the day coming when we'll have a rational energy policy across all sectors, for coal, for natural gas fracking, for oil, a pipeline, ethanol? do you think we're going to get to the point, and if so, when do we have a rational national energy policy? >> from i think the only way that we can get to the point is when these radical environmental groups come to the table and are honest about the situation and not every type of energy takes some type of toll on the environment. and when it comes down to it, green energy in particular is worse for the environment than traditional energy is. you've seen this with wind, now we're seeing it with ethanol. unless they're willing to accept those realities, we're going to continue to throw taxpayer money at a problem while making the environment worse which is supposed to be the opposite of what the clean green energy movement is supposed to be doing. stuart: i thought the greeners had run their course. katie, thank you very much, indeed, for joining us. we hope you can join us enreal soon.
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>> thank you. stuart: 30 seconds, we've got a lot else on our plate for you today. look at this. more go-provideo. a group of -- pro video. strapping one of those cameras inside their jet with, performing some extraordinarily movers. seems like we're giving go pro a commercial just about every day. they post this stuff on youtube, and they get free publicity, and go pro is going public soon. we've got these images of the space j opinion supply -- spacex docking with the international space station loaded with 2.5 tons of cargo. this is a private company. supplying the public sector in the space business. that's different. it was a successful launch. some of the biggest names in tech being accused of colewding to keep -- colluding to keep wages down. what? apple, google, nasty employers? now they're nationing a $3 billion -- facing a $3 billion
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lawsuit. judge napolitano's got the details on this one after this break.
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stuart: you know, maybe i'm hopeful here, but the markets seem to be picking up a little steam, picking up a little ground. 16,436, that's roughly 130-odd points away from the all-time closing high. hope springs eternal. look at the price of gold. where are we? we're down $7 lower, $1286.50. and charles payne is here bright and early this monday morning, he's raring to go. he says we are going to make some money with amd. go. >> do you remember amd when it was really a juggernaut back in the day? [laughter] listen, these guys made every mistake under the sun. i think the company's finally turning it around. give you an example, 2012 91% of their revenues came from pcs, desktops. obviously, it's a dying business. it was 70% last year, it should be 50% next year. they reported a number today that was very impressive. i think they've turned the
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corner, i think their graphic chips are pretty good, they've got some other chips that look very, very good. stuart, this is a $40 stock not too long ago. in fact, it was 40 in 2000 and again in 2006. i think they've got some opportunity, breaks out to $4.35, target would be $6 or better. stuart: yeah. $6 gives you 50% -- >> that would be a huge move. stuart: and that's ooh a day trader's price, $. 4. >> although it's probably going to be a longer term hold than i normally like. stuart: i like the way you dig things out, charles. >> thanks. stuart: it's all good. now, a class action institute atuesdays -- suit accuses some very big companies of colluding to suppress wages. all rise, judge andrew napolitano is here. is it correct to say that they have a politics that tries to stop one company like apple poaching staff from google which, essentially, keeps people in place at their current wages? is that the nature of the complaint? >> yes. it is true that that is part of the allegation, and it is true that there is evidence to support that allegation.
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before coming into the studio, i read -- for you, dear stuart -- i read -- [laughter] the court's decision denying the defendant's summary judgment. so the giants, apple, google, we know all of their names, moved to dismiss the case on the grounds that as a matter of law what they did was not actionable. the judge denied that motion, and in the act of denying it, he was required to enumerate the evidence that militated against it. and there is, in his view, substantial evidence to show that there was this collusion. now, does that mean that there'll be a trial? no. stuart: no, they'll settle. >> they've acknowledged, this is a rare acknowledgment that they're close on settling. now, if they acknowledge they're close on settling, i'm going to guess the settlement is done, they're waiting for the ink to dry. you're not talking about just a settlement, you're talking about something into the billions -- stuart stuart but they've got it. >> where does that money go? >> very good question.
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it goes to everybody in the class which is every employee of all of those enormous corporations whoever in some way had an opportunity to move to another corporation and couldn't. be now, how you enter the class is a little difficult to describe. you're talking about probably hundreds of thousands of members of the class. so you may be talking about from 10,000 to $100,000 per person. the court will come up with some schedule as to how you get in the class and where you enter the class and how much must be you -- how much money you get. stuart: i think it's a legitimate lawsuit -- >> wait a minute. the stuart varney? is there such a thing as a legitimate lawsuit? stuart: in this case, yes. just think of yourself -- >> but you, you are a major investor in one of the defendants! stuart: microsoft? >> yes. they're all in this. stuart: so some of my shareholder money is going to --
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>> yes! do you still think this is a legitimate lawsuit? stuart: outrageous! [laughter] wait a second. >> on the merits of the facts, the plaintiffs have a case. stuart: i think so. if you're working at apple, wherever you're working, you've got another company that you might move to and take your expertise with you and earn more money -- >> they won't accept your resumé, and they won't return your phone calls. stuart: right. because they won't let them poach each other. that's not a legitimate situation. i wish microsoft was not part of this suit. >> doctor it substantially interfered with interstate commerce. >> you see all of these start-ups, every single day they're coming up with great ideas. all these people work for these behemoths and couldn't get anywhere in the food chain and find a new company. stuart: we're all agreed, it is a legitimate lawsuit. >> e-mails of the late, great steve jobs, tons of them. stuart: really? >> yes. surprising he put all of that
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stuff in the writing, but he did. stuart: the irs is considering a tax on what you get from your employer free. now, i'm thinking about the googles of this world where they give free massages or free dry cleaning, free food, that kind of thing. they want to tax that as a workplace perk. any excuse to tax your income, whatever your income is. >> well, listen, you know my views of taxation. but under the law as it currently exists, they can do that. they can impose that tax. sure. stuart: on anything? >> they benefit from whatever source derived given in order to induce you to work for the giver of the benefits. stuart: so the administration wants to go full bore on this thing. >> this is discretionary with the administration really. they don't have to do this, but freebies are generally taxable. stuart: they're going too. >> apparently, they're going to. they'll conduct some sort of a study and have a range of fair market value on the quality of
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food, the nature of the massage, how long the massage was. stuart: how many forms do you have to fill out to say, yeah, i got fish and chips for -- >> how many more irs agents do you have to collect? >> it's probably going to cost more to implement this thing. >> wouldn't be the first time. stuart: gotta ask, what if i travel for my company and i earn frequent flier miles? are they my miles? are they taxable to me? >> that has never been addressed, as far as i know. i think they might be taxable to you, i'm sorry to tell you. stuart: that's all right, judge. [laughter] that was a good one today. that was a good one, i gotta say. >> thank you, sir. stuart: despite the inclusion of microsoft. [laughter] thank you, judge. see you soon. >> okay. stuart: next, leading democrat strategists say they've got a surefire way to win the midterms, attack those evil 1%ers, go after the rich. hey, it worked for the president in 2012. can the dems pulls it off again? we discuss, next. ♪ ♪ hi, are we still on for tomorrow?
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tomorrow. quick look at the weather. nice day, beautiful tomorrow. tomorrow is full of promise. we can come back tomorrrow. and we promise to keep it that way. driven to preserve the environment, csx moves a ton of freight nearly 450 miles on one gallon of fuel. what a day. can't wait til tomorrow. why relocating manufacturingpany to upstate new york? i tell people it's for the climate. the conditions in new york state are great for business. new york is ranked #2 in the nation for new private sector job creation. and now it's even better because they've introduced startup new york - dozens of tax-free zones where businesses pay no taxes for ten years. you'll get a warm welcome in the new new york.
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see if your business qualifies at startupny.com
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xfinity watchathon week was the biggest week in television history. but just when you thought it was over... what now? with xfinity on demand you can always watch the latest episodes of tv's hottest shows. good news. like hannibal... chicago fire.... ...and bates motel. the day after they air. xfinity on demand. all the latest episodes. all included with your service. it's like hi-fiving your eyeballs. xfinity...the future of awesome. stuart: well, we told you about johnny depp's latest film, tran seven dense friday.
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well, it has proven to be a box office bust. its opening weekend brought in only $12 million, but that was by saturday. the movie cost $100 million to make. this is johnny's second big flop after disappointing numbers from the lone ranger. move on, kraft foods voluntarily recalling 96,000 pounds of oscar mayer hot dogs because they may have been sold in the wrong packaging. nothing wrong with the dogs. packages label labeled as classic hot dogs may, in fact, contain cheese dogs which could cause allergic reactions for consumers with dairy allergies. back to the future fans could now experience what it would be like to ride a hoverboard, all you need is a nintendo wii balance board. developers, courtesy of developers in new zealand. why new zealand? i don't know. but new zealand, okay?
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democrat strategist james carville, stan greenberg and a few others have advice for their party, go after the 3%. -- 1%. here's some quotes from their memo making the rounds in washington. quote: stuart: they suggest democrats, quote, t one: show they understand people's financial struggles, get the narrative right, push back against an economy that works only for the 1% and offer an economic agenda that puts working women first. well, charles, number one, that's class warfare. but number two, it worked in 2012, didn't it? >> it worked, and it keeps working to the detriment of the entire country. stuart: yes. >> because the poor keep getting poorer. think about this if you're out there and struggling and you haven't made any money or headway. you keep voting the same way, to keep these bastards down, these 1% rich people, but your life doesn't change. do you keep doing this year
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after year, you know, every four years you vote this way, and your life gets worse, not better. and then ask yourself how come president obama almost made $500 million last year, only paid 20% federal tax? i mean, is it -- what happens? where's the disconnect? stuart: there is a disconnect. because people don't look at their own financial situation whether it's getting better or worse. they look to the guy they voted for as their cheerleader. >> but at some point that person's got to be responsible to you. that person, listen, the best thing that president obama knows how to do is stoke fear, anger and anxiety. that doesn't change anyone's life. it might make it worse. stuart: i'm with you. >> you might feel belittled because the president says those people don't like you. that doesn't grow an economy or make a country better. stuart: you just said president obama earned how much last year? >> i think it was 480 grand? stuart: i don't know. you said $500 million. it's $500,000. >> it's not.
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post-presidency after automatic speeches. stuart: thanks, charles. now we have online dating. huge business, you know? a quarter of all singles, and there are 85 million singles in america, a quarter of them are using the internet to find love. up next, we're going to talk to the founder of one of the hottest dating web sites. ♪ ♪ ♪
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stuart: you ask about it. charles payne will tell you about it. charles: i do not want to talk about it. it is another dud. stuart: you are not recommending this. >> i have talked about this in the past. the focus is where the war on coal has been. a week ago they closed their canadian operations. that should help them save some money. it is ugly. obviously, i would not add to the stock or by any more here. this has been an unmitigated failure. some insiders are buying. i like that. there is a gigantic short
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position. any good news could spike this up around $9 per person. they have to turn the business around. stuart: mitigated disaster. the dow is up 32 points. we are picking up just a little steam. i have always been fascinated by online dating and how much money there is in it. joining me now is the cofounder of beat me. kathleen coke is with us. how old is the company? >> i started it in 2005 i started it when i was a sophomore in high school. we started it as a new way to make friends.
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stuart: are you going to tell me how much of a child you have in this company? >> i am not. i am one of the shareholders. stuart: 20%? >> as a way it started was a way for to make new friends. stuart: okay. what is the difference between meet me in one of these hot sites? >> the biggest difference is, we think of it as the neighborhood bar. it is a social gathering place. females want to start out as
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friends before going on into a relationship. some of the others are more of a singles bar. stuart: let's see now, is there a membership fee? do i pay to get into the club? >> there is no cover charge. stuart: how do you make your money? >> through advertise. we have mobile, we have advertising. stuart: i signed up for meet me. my picture is all over the
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place. i am inviting people to meet me and be friends with me. when not pops up on mobile, there is a commercial that comes on. that is how you get your revenue. >> a normal thing on the screen. we also do premium purchases. you can buy 50 credits for a dollar. stuart: okay. you can move up the food chain. >> exactly. it is free to use for everyone else. we have 5 million monthly average users. 30% of our mobile monthly users login every single day. stuart: if the value of the company right now -- you are probably worth the neighborhood of $25 billion.
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that is just a rough calculation. if someone came along and offered you $100 million, just by pure chance, would you take it? >> i believe our company has -- the way we think about the industry, it is a $1.5 billion industry just in the u.s. stuart: would you or would you not take $100 million for your state? >> i would not. i love what i do. i love being involved. stuart: catherine cook with meet me. >> we are nasdaq. we just switched. thank you very much, indeed. stuart: thank you.
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a new vending machine soon to be set up in marijuana dispensaries. we have the guy who created it. he is on with us next. he will tell us how it works. ♪ predicting the future is a pretty difficult thing to do. but, manufacturing in the united states means advanced technology. we learned that technology allows us to be craft oriented. no one's losing their job. there's no beer robot that has suddenly chased them out.
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the technology is actually creating new jobs. siemens designed and built the right tools and resources to get the job done. ♪ >> reports that pfizer has held informal talks. london's sunday time says the
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two drug to drug companies are no longer discussing the deal. they have drawn attention for its experimental cancer drugs. both companies have declined to comment on the report. according to government documents, they waited years to recall 335,000 saturn ions for power steering problems. regulators also did not seek recall of the 2004, 2000 year cars. checking shares right now. we will be back in a minute. ♪
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up. a short word that's a tall order. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people
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while investing billions improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we will up it yet again. stuart: what is this? no more fuel banned from nike. nicole: to see if they are meeting the goal for the day. nike is down over a half of a percent. saying they will stop wearable devices.
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they will continue in the near term. it seems like it is just not working out for them. charles: they may be over there head on this. stuart: all right, charles. you want a vending machine for weed? it is here. a company called trans bites. welcome to the program. you have quite an innovation here. these vending machines would be inside marijuana dispensaries. before you got your weed, you have to swipe your id.
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you have to swipe your marijuana prescription. have i got that right? >> well, yes, you do. you swipe your id. your drivers license again. we are able to see who is out there and make sure that the person who is holding that id is on that id and if there is any dow, no cannabis comes out. our regulators have kicked it and punched it and done what they need to do to make sure we are in full compliance.
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stuart: can you see that coming at some point? >> well, yes. i do not think it will be on street corners. the coffee shop does not have to change the display case. stuart: does the marijuana, already rolled into cigarette format? is there a different price structure for different brands? describe the buying process for me. what do i get?
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>> should i eat it? should i smoke it? they want to go over to the machine. stuart: they pay you to have the machine in the store. i take it that is the case. >> we have a very low cost lease. we have chartered the delivery fee.
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we are roughly in that ballpark. from those proceeds, we take the lease out of there. the dispensary never reaches into their pocket ever. >> i think that they have a great product. i wish them the best in their model. it is apples and oranges, as far as i am concerned. stuart: up about 10%. i think you should congratulate us all for what we have done for you. come back and see us again when you have expanded nationwide. >> that expansion is happening. thank you very much. stuart: anytime you want your stuff to go up 10%. see you later.
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i want you to check out this iconic work of art. this is up for auction. it is a name of a what? do you realize that that is going to go for $150,000? we have it on the show. it is in the studio. we will be back with the guy who is auctioning this off in a moment. ♪ ♪ [ dog barks ] ♪ [ male announcer ] imagine the cars we drive... being able to see so clearly...
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to respond so intelligently and so quickly, they can help protect us from a world of unseen danger. it's the stuff of science fiction... minus the fiction. and it is mercedes-benz... today. through mercedes-benz financial services.
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stuart: you cannot call a gain of .15% a rally, but it is a very modest rally. here are the big names that you know which are leading the dow 30. ibm is doing well this morning. pfizer, talk of them making a $100 billion bid.
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apparently, the bid was turned down. $100 billion. they were talking about a merger. we often talk about printing money on this program. he is here. are they pictures? are they friends? >> this particular one is a screen. stuart: can we zero in on this one for a second? a screen print. the fine print. >> an original work of art. persuading them to take one thing away. this is a work of art produced by warhol. he went and found a photograph of her. he created this.
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>> he did not paint that. stuart: how many versions of that are there? >> he did a set of 10. exactly the same image. ten different colors. stuart: 250 like that. >> there were 250 feared. stuart: that is a lot of prints. >> when they first told they were a few hundred dollars. stuart: let's move onto jasper johns. which one is that? there are more than one of these things? >> yes.
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stuart: $400,000. >> you do get 10. very, very important motif. stuart: i have to get picasso in here. >> still life under the lamp. stuart: there are 50 of them, i get one? >> if you are lucky. stuart: why would someone pay so much money for something that is -- there are other urgent of it?
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>> it is a glorified photocopy. >> this technique of making images was very important. they took time out from painting. if it is important to them, it is important to us. stuart: we have to go. thank you so much for joining us. my take on the keystone delay. varney back in two minutes. ♪
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♪ [ indistinct shouting ] [ male announcer ] time and sales data. spt-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistincthouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorsm from td ameritrade. ♪ from td ameritrade. why relocating manufacturingpany to upstate new york? i tell people it's for the climate. the conditions in new york state are great for business. new york is ranked #2 in the nation for new private sector job creation. and now it's even better because they've introduced startup new york - dozens of tax-free zones where businesses pay no taxes for ten years. you'll get a warm welcome in the new new york. see if your business qualifies at startupny.com
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♪ stuart: stocks are moving. the dow is not that far from an all-time record high. gas prices just keep going up. a lot of action this monday morning. and this. class warfare makes a return to politics. congressmen trey gaudi. he says it is now a losing issue. class warfare, that is. look at what the -- $100 million. we have the guy who tells you what mood you're marijuana creates. happy, dreamy, never, he says violent. how do you make money if you give away your videogame a trivia maker reveals all. ♪
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stuart: i will not say it is dead flat, but this is a very modest rally. we are one or two really good rallies away from a record close on the dow. lauren simonetti is with us. >> the closing high is 16,773. >> about 130 odd points away. >> more or less. >> the market wants to go up. if you look at the leadership on the dow, half of the dow is positive for the year. there are real iconic names. you have that feeling.
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>> you also feel jinxed. in an average bull market, the s&p 500 falls at least 10% every 16 months. investors are paying attention to earnings. they are responding appropriately. we have it all right in front of us. stuart: gas prices are moving up. 366 is your national average. look at california. that is according to aaa. check the price of oil. that is the baseline for gas
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prices. lauren, you do not know where gas prices will end up. do you have any idea what the odds are? >> national average, probably not. we have been up $0.15 nationally in the last month. i think some cities and states may see 450 a gallon. when interest rates eventually go up and gas prices keep going up you ask the average person with the average business on main street. that will cut off the growth in this country. stuart: nicole, we always ask you about those yoga pants. >> i love to wear them. i love the brand. they are worried about going forward.
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a lot of worries about the company from a lot of these analysts. some of them are talking about the fact that the whole thing was uneventful. there was very little substance as to how to turn around the same-store sales. when bush went in there. they have been bullish on lulu lemon. they have had some issues going forward. this year it is down about 17%. stuart: thank you very much indeed. making the rounds. in it, they said that the democrats should stay away from the word recovery and instead
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suggests that suggest that they go after ceos and the 1%. we are joined now by trey gaudi. always a pleasure. thank you for joining us. i am calling for class warfare. we invented this stuff. it worked. it worked for t thehe presidentk in 2012. would you say it could work for the democrats again this november? everyone should pay their fair share. god knows he never said what your fair share is. it will really be up to our fellow citizens whether they fall for this again. you would think that they would be smart enough to know that with a that the great unifier has a resume on which to run. he will have to do something.
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the strategy seems to be to divert the situation. after all, much of obamacare has been delayed. some of the negative impact was delayed for the next few years. if he changes the conversation, that may be successful. >> well, it could be. the so-called affordable care act -- the rich will be fine no matter what government does. it is those that are in lower income brackets. really, i would think at some point, you know, after five years, it is fair to see whether or not someone's policies have been successful or not. they have not been. a certain point in the
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democracy, the sit in street has to be smart enough to see through these class warfare games. i hope that 2014 we are. stuart: what about the pipeline delay. announce right there on good friday. many people were not aware of this decision. why do you think he has done this and do you think it will hurt democrats in november? >> well, it will hurt some democrat senators for sure. they were in trouble anyway. why did he do it? he does not like making tough decisions. stuart, i have lots of friends i do not like making tough decisions, but they do not run for president. it has been five years. the overwhelming majority of his fellow citizens want to build a pipeline.
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canada is a great friend and a tremendous ally. he will continue to delay it. stuart: were you surprised when you heard the announcement? when you did hear it, were you surprised? >> i am a little bit surprised. labor unions very much want the pipeline on the other hand, look at this forum policy. he just does not like saying no to anyone. the part that is most disappointing to me is explanation. we need more time. the affordable care act was in litigation. it is an excuse. how many of my fellow citizens
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fall for this excuse? it is rooted in politics. are you looking for a win in the senate? that they get back in control of the senate in november? think it is going to happen? >> i think it will be close. i am biased. i cannot imagine anyone having the choice. i think bill cassidy has a real shot in louisiana. north carolina, i think we have a really good shot. alaska. it depends on whether or not we put more states in play. honestly, i cannot imagine after the last five years with our
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economics and foreign policy images unity that exists in this country, why in the hell anyone would let harry reid hang onto his job. that would just baffle me. >> thank you very much. a multimillion dollar condominium in new york, seattle, austin, or you have a lot of ivy league schools that you have columbia, nyu.
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they can rent out these properties. then when the kids are ready, they will then have residency available and ready to go for their children. they want their kids to grow to u.s. universities. they do not want them to go to chinese schools. let me give you a great example. 157 is the largest condo. this building, a chinese fire by a two bedroom two and a half bath condo. she specifically said i will print this out. i am expecting to get a 3% return. when my son and daughter are ready to go to school, they will live in this condominium.
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you have brokers going to these high end luxury retail shows to market to these high net worth individuals. these high net worth individuals, 87% of them want their children to go abroad. study abroad to go to school. they will make money on it at the same time. stuart: a fascinating story. always good stuff. thank you. stuart: it is an all out battle between apple and google. we have the guy who created one of the years hottest games. he will join us after this. ♪
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stuart: eric schneiderman going right after the online home rental business. he wants the company to release its rental records. elizabeth macdonald, why does he want to do that? >> a nasty, scrappy fight.
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essentially, it has a new york attorney general on one side, the hotel industry on that side and air bmb. just putting up a weblog. this is going to get ugly. the new york attorney general is not just about taxes. they also want your personal information. stuart: right. schneiderman, attorney general menace of new york state, he wants to know how much i am charging, who i am, how may properties i've got and am i paying the correct new york city tax. >> ere the end be is coming
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right at the attorney general saying we are cleaning up that problem. we are creating economic activity. stuart: they are directly competing with them. the hotel business goes to the attorney general. they are not paying the right taxes. run them out of business. >> preparing four an ugly war of words. stuart: it will go to every city in america. they will all fight about it. apple versus google again. head to head. we've brought you quiz up when it hit record numbers and that apple app store. now, it is running on google
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also. google android systems as well. okay. you do quiz up. it is a trivia game essentially. >> a head to head trivia game. people play in real-time against each other. stuart: if i get your app and play it on my iphone, i can play trivia games against people all over the world. >> that is correct. the main thing is you can play trivia games with other people. you can also communicate with them. stuart: can you meet them? >> well, you could. it is evolving to become more of a social network than just a game. >> you are meeting and competing with people. there are so many pockets.
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stuart: if i wanted to, i could play a trivia game based on soccer or cricket. >> yes. you can go down to individual teams. stuart: what about this game of thrones? you have a trivia game based on game of thrones. >> we are a free app. stuart: do they pay you? >> yes, they do. stuart: thank you very much. >> in some form. stuart: i can get this on my iphone right here for free. how do you make money? >> well, that is the thing. quiz up has been super successful.
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what he is doing instead is we are partnering up. big brands are knocking at our doors. we are trying a new way of advertising. instead of throwing in those unknowing full-screen ads, we are actually making original content with our partners in the form of a quiz. for example, we work with google maps. we worked with them to make really cool stuff. you had to guess where it was. we are basically creating an app. >> you know cities and capitals.
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stuart: may be. this gentleman is from iceland. what is the capital of iceland? >> i cannot pronounce it correctly. stuart: you are totally private. you own it. >> we are venture backs from the u.s. stuart: what chunk of the company do you own? entrepreneurs. >> that is a good thing about the u.s. venture system. they want them to have a stake in the company. >> every single person that watches this show regularly knows i will answer the following question. would you sell now for $100 million? >> i definitely would not.
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stuart: oh, please. it is going really well. we are just hopeful. stuart: you were great. come and see us again. >> i will. stuart: president obama. $100 million. delaying the keystone pipeline. my take on that is next. ♪
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why relocating manufacturingpany to upstate new york?
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i tell people it's for the climate. the conditions in new york state are great for business. new york is ranked #2 in the nation for new private sector job creation. and now it's even better because they've introduced startup new york - dozens of tax-free zones where businesses pay no taxes for ten years. you'll get a warm welcome in the new new york. see if your business qualifies at startupny.com
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improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we'll raise it yet again.
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stuart: big name you know, hasbro, the toy company almost $57 a share earlier. they're up on strong sales of girls' toys. look at that. and now check this out, thousands of people lighting up joints this public this weekend
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celebrating 4/20 in denver. in just a few minutes, one guy who says he can guarantee what kind of high you get. and in the real halftime report, new york city mayor bill de blasio saying no matter what higher taxes are coming, and it will help the city's economy. we ask our trader in chicago what does he think about that. of stuart: he went for the money. plain and simple. $100 million, to be precise. that's the main reason why president obama delayed again the keystone pipeline. here's my take. you may have missed it. president obama sure hopes you did miss it. on good friday, good friday, he put off a decision on the pipeline until after the november elections. when christians are engaged with their church and secular america is preparing for a holiday weekend, that's when the obama team releases its bad news. what a cheap shot. a decision of real importance
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buried deliberately. he hoped we wouldn't notice. he hoped it would miss the news cycle. may sound harsh, but that was an act of political cowardice. so why did he do it? yes, he wanted to shore up his extreme environmentalist base, but he also wanted the $100 million that tom stayer has been dangling in front of democrats this election year. pursue climate change regulation, says mr. stayier, and you get the $100 million. too much to resist for a president knocked off balance by putin, assad, iranian mullahs and a weak economy and obamacare. delay the pipeline, take the money and hope voters forget all about it. be the pipeline delay was the triumph of cash over sound energy policy, the triumph of pandering to the super rich. it was a defeat for jobs, for unions, for america. no wonder they tried to bury it on, of all days, good friday. i've always had to keep my eye on her...
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stuart: we are told that beer prices may be about to rise because there's a new fda regulation that has to do with brewers and farmers. lauren, tell me what this is all about and explain, please. >> you didn't think the brewers and the farmering and the fdr were represented, but they are.
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okay. so for years and years and years brewers have been giving their recycled grain to dairy farmers in the area. no big deal. the fda comes in and wants to come back on the number of food poisoning cases here in the u.s. 3,000 people die because of it a year. so they're saying, okay, beer brewerers, we're going to treat you like an animal feed manufacturer, and you're going to have to upgrade your facilities which costs about $13 million per facility in order to do this. you're going to follow all our rules and steps. if this is green lighted, next summer beer prices are likely cost more because if the beer brewers are spending more money, well, they're got to get that -- they've got to get that back somehow. stuart: i would imagine that would hurt the small craft brewers. >> oh, absolutely. i'd be surprised if this one goes through because there's a lot of outrage about this. stuart it's just surprising to me that they want to regulate everything for the sake of regulation. you can make the case that make
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the food supply safer, i can see the point, but it seems like regulation is just out of hand. regulate, regulate, regulate no matter what. great story, lauren, thank you very much, indeed. >> sure. stuart: christians across the country celebrated easter, but it was also a major holiday for pot smokers. 4/20, pot smokers smoke and consume cannabis. first of all, duma, thanks for coming back on the show. ebu, now that is, essentially, a branding operation, right? you brand different kinds of marijuana, right? and you sell it, too, that's what you do, right? >> that's correct. we are a manufacturer and, first of all, thank you for having me back on the show, stuart, i really appreciate it. i think of our company as a distillery. we take a raw product just like alcohol takes potatoes and turns it into vodka, we take cannabis and turn it into something that is predictable and reliable, meaning it's going to make you
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feel the same way every single time. stuart: wait a minute. the raw cannabis comes into ebu, do you change it, or do you just analyze it and find out what different strains will do for you when you get high on it? >> i think anyone could do that sort of analysis or at least anyone with a scientific background. what we do is much more like what a distillery does to grain or potatoes when they turn it into vodka. we do alter the product and make it something that is a completely different category. you don't look at a bot bottle of vodka and say that's potato juice. we don't want people to say that's marijuana, it's something different, it's something new. stuart: okay. do you bartend different kinds of marijuana -- blend different kinds of marijuana together, or do you actually change the thc content of different kinds of marijuana? how do you do it? [laughter] >> well, there's a little bit of blending that happens, absolutely. but in truth, what we do is effectively very similar to how they make perfume.
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we distill the cannabis down into its most basic ingredient, and we're able to rearrange them in ways that can guarantee a consistent product and guarantee a specific feeling when -- stuart: that's interesting. you have a brand called giggly, ask that correct? >> giggles, yes. [laughter] stuart: are you going to guarantee that if someone smokes giggles, they will giggle? do you guarantee? >> we can't guarantee it for absolutely everyone, but for most people most of the time, they will have the desired effect. and, you know, this is true with any sort of pharmaceutical, right? if you look at it, people react on a bell curve. there are always going to be outliers, but with anything that affects you psychoactively, most people will have the same response. alcohol, people have a similar type of drunk response to using alcohol. stuart: okay. can you give me some estimation of how much your business has grown? i'm to not sure where you're based. are you california or are you
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colorado? where are you based? >> we're actually right here in denver. stuart: okay. >> and our business is very young young. we're just a start-up, and it's been an incredible time -- stuart: sure. just give me an example, if you can, of how much you've grown. >> i think -- absolutely. i think the best example is that we have been raising a seed round of $2 million, and to date we have just raised $1.5 million, so we had something else besides 4/20 to celebrate this weekend. and in fact, stuart, we have a debt of gratitude to you, because after i appeared on your show back in february the first time, i received hundreds of e-mails from fans of the varney show who wanted to learn more about ebu and our proprietary technology. and, in fact, three of those individuals turned out to be accredited investors who went on to invest in our company. so, stuart, you and i have never met, but when we do meet, i owe you a glass of champagne, or if we meet here in california, we'll make it an ebo to. stuart: that was pretty good, young man. well, duma, thanks very much for
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being with us. i'm glad we could help you out. let's see what happens after this interview. come back again soon, please. we appreciate you being with us. thanks very much. >> thank you very much. appreciate it. stuart: bill de blasio claims to be the champion of the poor. he's raising taxes on new york's wealthiest residents claiming they're not paying their fair share. we will deal with that in the real halftime report which is next.
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start your business today with legalzoom. ♪ ♪ >> come is reportedly in talks with charter communications related to its takeover of time warner cable, the talks focus on selling or spinning off about three million subscribers worth about $18-$20 billion. remember, comcast is buying time warner cable for more than $45 billion. shares are up a little bit. to kraft foods be, the company is voluntarily recalling close to 96,000 pounds of oscar mayer hot dogs because they've been sold in the wrong packaging. packages labeled as classic hot dogs may, in fact, contain classic cheese dogs instead which could cause allergic reactions for consumers with certain dairy allergies. we'll check shares of kraft for you, they're down fractionally right now. stay right there was we have the real half -- because we have the real halftime report. that's next.
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stuart: all right, everybody, time for the real halftime report. joining us from chicago, trey is back. nicole petallides at the exchange, ed is in dallas today. of course, lauren, liz right here in new york. ed, we're back to near record highs for the dow industrials. >> right. stuart: i say the market just wants to go up. that's the feeling i've got.
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what do you say? >> yeah. change your feelings, stuart. i'll tell you, i think this market, you should with -- be selling into this for positions that are a little overweighted. as we go into the summer, we're going to have a rough time. i'd start selling your positions right now, stuart, i don't think this market's going to go higher. stuart: that's clean cut and nice opinion. thanks very much. trey, what do you say? >> we're in the seventh inning of a fed-fueled asset bubble. when it ends, it is not going to end well. however, the fed policy's not going to change. that's what trailing stops are for. i think you want to be long equities because i definitely think there's some upside, but you've got to be thinking about some protection using those trailing stops because like i said, when it's over, it's not going to be pretty at all. stuart: all right, thanks much. $100 billion merger talks. pfizer, i mean, we're talking $100 billion? pfizer approached astrazeneca. the companies say they're not talking anymore, but it was of $100 billion on the table. ed, this is all about the drug pipeline, correct? >> yep. absolutely.
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without question. i mean, pfizer, you know, cut back quite a bit. they were trying to get smaller so they could grow quicker, but i'll tell you what's really happening, they have a lot of money outside the united states. i don't think they want to bring that money back and get tacked. i think -- taxed. i think they want to use it for an acquisition. plus, you know what? they don't want to spend money on r&d. that's very expensive. here you have a proven commodity with what azn has, so i think it's a smart move. stuart: trey, do you have an opinion on the potential merger? >> you have ed, one of the smartest guys in the entire space, talking about this. i'm certainly not going to steal his thunder. i'm just going to confer with him. concur with him. [laughter] stuart: oh. an honest answer. a compliment, an honest answer. we like that. thank you, gentlemen. moving on, record labels suing pandora over older songs like "respect" or "hey jude." nicole, what's going on? >> one beatles' favorites. hey, jude and respect from
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aretha franklin. we're talking about some of the old school favorite songs that are actually before the year 1972. so the record labels are now suing pandora saying that while there may not be some real laws that go along with this federal copyright law, there are some state laws that do protect these record labels. so now i hope pandora has some good lawyers to move forward with this battle, because there are some lawyers for some of these record labels that are saying, hey, pandora, time to pay up. stuart: all right. now a look at netflix. "after the bell" today, the company reports. it's all a about adding subscribers, that's about the numbers to watch? >> absolutely. can they bring in about 2.5 million more subscribers? also, stuart, look at that price, 343. back in march, march 6th, $453. what happened? stuart: not as many subscribers as they wanted, i guess. and then we've got new york's
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mayor bill de blasio speaking to maria bartiromo earlier today doubling down on his plan to increase taxes. roll it, please. >> i think when you add up in the things we can do to create a welcome job for job creation, we have a lot of tools at our disposal. and, yes, there will be some taxes involved. but you get a lot back in the bargain, and i think a lot of business people get that, and they want to be here. stuart: ah. you get a lot back, and they want to be here with these taxes, really? trey in chicago of all places, what do you say to that? [laughter] >> bill de blasio is good at math. he understands the equation. if you take money from one and redistribute it to nine, it gets you reelected. it's a solid plan. [laughter] and it's probably going to work. he also ought to be polishing up on his lover curve. if -- laffer curve. it also breeds corruption. be paying attention to that in new york. stuart: ed, i hear you groaning.
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go. >> i mean, this makes absolutely no sense. i mean, raising taxes is good is like saying i'm going to feed myself a huge pizza, and i'm going to lose weight by doing it. it's been proven to be horrible, and people are leaving new york left and right -- >> absolutely. >> -- to get away from the high tax environment. stuart: all right, liz, what do you say? >> it's interesting that the man who's all for democratic socialism, what did he pay in tax rates? about 8%. e the effective rate, right? new york ranked number one in migration meaning people and companies leaving the state from 2000 to 2010. that trend will get worse if taxes continue to go up. stuart: real fast, lauren, you got an opinion? >> you want a businessman sometimes in charge. i looked at de blasio's tax returns, no dividends from stock and $45 in interest. i mean -- stuart: hey, nicole, what are
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the traders saying on the floor? >> one termer. one-term de blasio is what they're saying. they're fed up with him already. we'll see what he brings for the city, but there was certainly a lot of nervousness here on wall street. i know a lot of people who have moved to austin, who have moved to florida. they are done with what they are seeing here in new york, and i had one trader actually say, good, good, let's see. everybody voted him in, let's see what he does for the city, almost like it serves you right for picking him in the first place. so you have a lot of people here on this floor who are not too thrilled with this election. i know people in real estate that are not thrilled with him. so we'll see. i hope he does well for the city and for the people of new york. stuart: thank you, one and all. that is the real halftime report. we will see everyone again very soon. thank you, one and all. as the housing market improves ever so slightly, barron's thinks home depot's stock could rise as much as 25%. the man who wrote that is phil roosevelt, and he's here yet again. home depot up 25%.
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make the case. >> well, the case is, first of all, it's spring which is the right time to be in the home improvement business, and this place is being run really well. they have a great management team, maybe one of the best in retail. they've made it a very efficient operator. and they're doing a good job picking off customers from sears. stuart: but is the housing market strong enough? i mean, it went up, it plateaued. it's not exactly robust. >> it's kind of plateaued. there are good signs for the longer term. household formations are actually running above the norm for the past 20 years, that's a big step in the right direction. stuart: you always move the market. you know that. i mean, you say home depot's going to go up 25%, and on monday morning up goes home depot. not 25%, but a nice little bounce for that stock. you're a powerful guy. >> all right. stuart: you happy with that? >> we'll take that. [laughter] stuart: i knew you would. phil, thank you for joining us on a monday morning. thanks.
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all right, what's this? mutual funds, moonlighting as venture capital firms? that's up next on risk and reward with deirdre baldwin. >> it certainly is. mutual funds in general, right, they're supposed to go for the sure thing. they're supposed to give you, well, pretty conservative investment, not really blow your doors off but give you steady returns, and it seems as if numerous ones, stuart, blackrock, t. roe, fidelity, janus all involved in, basically, private funding deal. sixteen last year alone, that is up from nine the previous year, up from six the year before. so it just shows that, basically, the big guns are getting into these private funding deals, stuart. companies such as air b&b, drop box, pins rest. so on -- pinterest. ask so on the one hand it may strike you as innovative, on the other, we've seen some turmoil with the ipos, we're going to be speaking with our expert tech
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investment guest and asking them if moves such as this are a canary in the coal mine, and it is time for tech investors to beware. just some of the things we're going to be talking about on risk and reward. >> then we have manchester united. now, that's one of my favorite soccer teams, surprised fans this morning by all in this talk about firing their manager. we have details on this one coming up next. david moies is his name. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. spt-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistincthouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorsm
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from td ameritrade. ♪
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call... and ask about all the ways you could save. liberty mutual insurance -- responsibility. what's your policy? stuart: a british newspaper is reporting that manchester united's manager may be getting fired with just three games left in the season. the report points to yesterday's or yesterday's 2-nil loss, that was the final straw. he signed a six-year contract last summer trying to stabilize the rebuilding of the club. united has had a terrible season. do you care about man-u, liz? >> well, they're ranked seventh, and they're not going to be in the champions league first time since 1995. stuart: you didn't know that. you had to look that up. >> of course. i always research for you. you always make fun of me, liz, shouldn't you be researching? i try to bring you information.
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but here's the thing, they quickly, to use your term, sacked him. why doesn't government move more quickly when people underperform? they got rid of this guy pretty quickly. stuart: you mean kathleen sebelius? >> you could bring that up. stuart: you don't follow soccer, do you? >> no. stawrt stuart have you heard about man-u? what's so special about it? >> tell me. >> it's the great name in english soccer. they are the much-storied, you know, they've won all kinds of events and what have you over many, many, many, many years. they're the greatest team in english soccer. i believe that they are the most valuable franchise, sports franchise in the world. that would include the new york yankees. i am told -- >> so they have worst fistfights? >> you don't have fistfights in a soccer game. >> i sure see them. up in the stands. stuart: not at that level. oh, we're out of time. your take is next.
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why relocating manufacturingpany to upstate new york? i tell people it's for the climate. the conditions in new york state are great for business. new york is ranked #2 in the nation for new private sector job creation. and now it's even better because they've introduced startup new york - dozens of tax-free zones where businesses pay no taxes for ten years. you'll get a warm welcome in the new new york. see if your business qualifies at startupny.com
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stuart: we always like to close out with your take on the program today. diane says this about the silicon valley lawsuit preventing employers from poaching staff from other companies. you are not poached if you had a contract you didn't break it, so work where you like. want somebody badly? put them under contract. that is how you do it. and on pot vending machines, people have been using pot before it became legal in colorado. i would rather save any machine selling pot than alcohol. our viewer did. liz: that is interesting because you would basically swipe your id either way. get a fake id, he can get pot or alcohol. i didn't know that. stuart: now here is deirdre bolton. ♪
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deirdre: welcome to "risk & reward." i am deirdre bolton. we give you alternative way to invest your money from real estate to hedge fund strategies to venture capital. our top story, one tech founder says it is four letter word, hard, to run a startup. we will ask if it is a canary in the coal mine. we will give you more ways to make money, better ways to keep it. ♪ other headlines that we are tracking for you guys this hour. private equity and hedge fund, contentious topic. some senators are upping the ante trying to get the treasury department more involved. we will play what it could mean for blackstone, carlisle, and others. the possibility and legality

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