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tv   After the Bell  FOX Business  August 1, 2014 4:00pm-5:01pm EDT

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and the like. israeli company and what a great idea. [closing bell ringing] david: we have to mention the financials are down. looks like we're going to the negative side as the bells ring, liz. liz: it has been hardest felt by the russell 2000. down half a percent. up off the lows. over the past four weeks the russell has seen loss after loss after loss. right now red on the screen. dow jones industrials down 68 points. nasdaq was down 45 points. down just 17. have to say just, right? we look is happening this friday afternoon, we have so much business news to talk about. let's get it going. "after the bell" starts right now. david: let's get right to it. wrap for the day and week.
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david kudla, chief investment strategist. he will tell us why it is time to be positioned defensively but he is still a bull. we have paid den riege ghoul chief economist. he will tell us what we should worry about in the economy and bill baruch from the cme. bill, start with you. put the whole week in perspective. we had a lot of financial news and a lot of economic news we had the fed smack in the middle. what does this portend for next week. >> we see good news is bad news. we missed expectations with the jobs data this morning but we were above 200,000. that was the key. the market was able to stablize. as long as we show 200,000 jobs created, that shows growth. david: let me put an emphasis on this? wasn't this a sweet spot, wasn't so worried they were worried about another pullback from the fed, but it wasn't bad?
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it was really in that sweet spot, no? >> exactly. 200, 230 was the sweet spot. we fell right there, right in the middle. the real question mark going into this week as gdp. was the economy growing. we got 4.0 number. revision upwards from last month. really what that shows is that we are moving forward. now good news is bad news. last month's 28was too much. -- 288 was too much. funny to say. liz: let's bring in the stock guys. david kudla, so many viewers said i missed rally and opportunity. they have been waiting for pull back to buy on that opportunity. is that opportunity over, or do we see more falls in the market and should people wait a couple sessions before they jump in. >> i think that they may want to wait a couple of more sessions. we're looking for some more sloppiness here going forward with, you know, geopolitical tension we've had and probably even more so, this anxiety over the fed.
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transition from the end of qe to fed tightening and what will be the timing of that. over really the next few months we could see considerably lower levels for stocks and, even better entry points. liz: how much lower? can you put a finer point on that? >> yeah. we think that from the highs we had last week, as much as seven to 12% lower. some indexes like the russell that is pretty, russell 2000, pretty near correction territory now, well into double digits on decline. david: jeff cleveland, we talked about the sweet spot of the jobs numbers. let's talk about a sour spot that we encountered and that was wages. wage growth was not what we thought it might be. we had hints perhaps wage growth was coming up, when we got the fed report. not so much today. when wages don't beat inflation, isn't that a problem? >> yeah. that's a huge problem, david. i agree. 2% growth in rages versus year
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ago is very low. we think the fed wants to see 3 1/2, 4% nominal wage growth. if i'm earning money and not increasing at faster rate of prices of things i'm buying, that is ultimately not good for growth. i think we can both agree on that, david. so that is the real sour spot. i think that is also the one line item that will give the fed an excuse to wait longer to move to higher interest rates. as long as we're at 2% on average hourly earnings, fed fund rate is not going anywhere in your opinion. liz: so we go back to bill baruch now in the pits. did you get any sense where the smart and faster money is going? with the flows today, we saw money going into gold. we saw money coming out of oil and energy. tell us what you saw there. >> well, gold seeing up tick today. but really it has been disappointing up tick. the market right below 1300. there is a lot of headwind in
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gold. gold has not taken on safe haven attribute even what is going on geopolitically, bold is not moving much. we're seeing dollar though of the we really like the dollar. one thing that is holding gold back because gold is priced in dollars. we like the dollar because it is taking on that safe haven attribute and money is going into the dollar. david: david kudla, good news this week that oil had a pullback. it is good news for consumers and businesses that have to spend money on oil but you don't think this is going to last. why not. >> we don't think is going to last. we think the energy space in general, integrated oil companies, e&p, we've seen a selloff the past month especially in e and pe we think energy from a fundamental standpoint still has a good outlook in the months ahead and with the geopolitical tension we have, any day we could get supply disruption would could
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cause oil prices to spike and reverse this picture very quickly. liz: very quickly. we know that is something the smart people are trying to anticipate. we go back to jeff cleveland. what is your favorite area right now with all that happened over the past couple weeks? >> i think, liz, the big thing that strikes me this year, everyone was tell mooing he that interest rates were going to go up and you needed to get out of bond. that just hasn't happened. so we still like -- liz: are you talking specifically treasurys? i don't want to ignore junk bonds that have seen pretty significant selloff over the past couple weeks. it has been quiet but suddenly getting much more attention? >> i think that is true. one area you've seen yields rise is high yield. maybe some high yield is coming back into high yield. that would be a good thing for investors because yields were so very low but i think overall we're still not at a point, liz, that interest rates are going to rise dramatically from here. so investors don't need to fear fixed income. you can still look for pockets of income opportunities, in the
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u.s. and also globally. so we're not at that higher interest rate pivot point just yet. we think that will happen closer to the time fed hikes rates, stymied to late next year. david: bill, let's talk about economic headwind, if you will. i'm looking at some regulatory and fiscal headwind that businesses are having to deal with. there are three things that come to mind this week. first of all, we have the new rules for franchises. that will add a lot of costs to thousands of franchisees all over the country. that's a problem. we also have new epa regulations, regarding coal. that could push up fuel prices. no new talk about any kind of a deal to bring down the highest corporate tax rate in the world, which of course is right here in the u.s. are these going to be a pushback to economic growth? >> well, they all are. then, you know, what is going on in washington, has always been a headwind come the fall. not only that, we have new things about russia and europe
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too. growth in germany, will that be affected? there is lot out there with the argentina default crisis. there is a lot of reasons for investors to take a step back and take a look at the market and let this pullback happen. by any means we're not bearish of the market. we think the pullback will be great buying opportunity. 5% from the highs of s&p is 1180. we think that will be a buying opportunity. we have to let it flush out a little bit and worries, investors not bad to step into cash for a little while as well. liz: step into cash. david, let me come whack to you -- come back to you, how you feel about healthcare because that seems to be focus of picks. humana is name you like. people don't want to to into individual names you have the long-short health care fund. explain to viewers how that works. >> with the high land long-short health care, the advantage to a fund like that or portfolio strategy like, in this environment, talk about bond as
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a hedge. long-short strategies are a good hedge. in a space like health care where you have highly non-correlated companies, stocks within that industry, there's a good opportunity to pick longs and shorts that can reduce the beta of the portfolio while producing good alpha. a good example, yesterday that fund was only down 3:00 quarters of a percent. year-to-date it is up 2 1/2 times the s&p 500. the michael gregory and team are doing a great job with that portfolio strategy and a great strategy in environment like this. liz: they do the work for the investor. good to see you, david kudla, jim cleveland. david: thanks, guys. have a great weekend. liz: it is called a goldilocks jobs report by some, knot too hot and not too cold but just right but is that what the economy needs at this stage of
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recovery five years in? what should investors focus on next week? mesirow chief economist, diane swonk is person you need to hear from. she is here in a moment. david: we've seen waving with leading automakers posting double-digit gains. why shouldn't we be happy? isn't that all good news or should we hold back? is that encouraging car buyers to trade up to luxury brand? we haven't seen more of that. audi of america's president will give us his take after another record month for his brand. liz: with u.s. sales in the auto world jumping in july, let's hear from you. are you planning on buying a car anytime soon and which one? which model, which company? tweet us @fbnatb. we'll bring you the answers later in the show right here on "after the bell." ♪ [ male announcer ] once, there was a man
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liz: gopro which has been a high-flyer since it went public, had its first earnings report. david: nicole petallides, i use the product. what's wrong? >> it is a little pricey. people love it. what we saw a net loss for the
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first public report since this company has gone public. the stock had dramatic move to the downside, down 15%. down, seven bucks. closing $40.97 a share. they had a bigger quarterly loss than expected. their costs were on the rise. their costs nearly doubled. so with that, we saw the stock really moving to the downside. they have been doing a lot of spending as well, expansion plans. you can see it really hit the stock today. liz: okay, great, thank you very much, nicole petallides. david: zap futures are closing, just about now. 45 seconds to go. head back to bill baruch in the pits of cme. how is it shaping up for monday, bill? >> we're closing slightly down. data next week will be the same thing. good news will be bad news and weigh on this market. ecb will be the major event. watch 10-year yields. i think it closes at 2.7% again it will put pressure on equity
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market. downside market everybody needs to look at, 5%, comes in 1880. david: bill, thank you very much. have a good weekend. liz? liz: list hen to the description when the fed will raise its rates. here is the quote, yellen fed wants to see the whites of eyes in real healing in labor market before it tightens. who said that? our next guest. this as the u.s. economy added 209,000 jobs last month s today's report getting us closer to see the whites of the recovery eyes? diane swonk, author of that line, mesirow chief economist. i thought that jumped out at me. i think it point to the fact that the fed is not ready yet. >> they aren't. hawks are kind of squawking right now because they have a megaphone. they are voters on the fomc in a moment. in december that will be the end of their voting tenure. you will see them switched off
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with the most dovish fed in ages when to raise rates and how rapidly. i think the market got ahead of itself when it will raise rates. good report, not good enough. we had some meat on the bones. business services, architects accountants, engineers, that is great. consultants are hired, that is great news but still the under current of a lot of slack in this labor market. no wage growth. still 2%. yellen would like to see between 3 and 4% wage growth. a lot of people with part time instead of full-time work. liz: the decision was heavily weighted toward the dove side of it in the most recent fed meeting. now charles plosser is getting very vocal, he of the philadelphia fed. sooner than later, we know richard fisher has been on this program, pushing for sooner rather than later tightening. why the hold up? i understand they want to see some really strong economic data, diane but at some point we have to let this patient stop lurching around in the gown in the howl
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way and let the patient go it the door. >> the fear the fed has, here is what they're hedging, they hope they can deal with emerging bubbles. you mentioned earlier the high yield market moved back. that is good from the fed perspective. that was a bit of a bubble. rather than use a dull blunt knife of rate hike to cut the whole forest rather than trim some overgrowth. the fear we are more fragile. after last summer's taper tantrum, the housing market is not doing as well as fed would like to see. shows fragility in underlying u.s. economy. generated jobs and re-engage a lot of people. the fear if you raise rates too early, there is no safety net. no going back. there is no stimulus. if we do it too quickly we're in another recession. liz: i see their fear. they don't want to be blamed with that. what are you worried about? this argentinian default on debt, did that freak you out? people say yesterday was that, others say no way.
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>> argentina, come on, like a bad, groundhog day. keeps happening over and over again, though nobody learns anything from it. i don't understand, argentina. it is what it is. i was glad the germans won the world cup. but, a broader spectrum, you know, ukraine, germany, italy, they depend on oil from the ukraine. the gas coming in from the ukraine. there is some fragility. i'm much more worried about deflation in europe than the eurozone itself and so are their neighbors by the way. there is undercurrents what is going on. uneven country. china doing better but not great. more than 10% for 30 years. now will grow 7.5%. liz: hold us up to other nations and we look a lot better than most, don't we? >> that is the thing. we're least dirty shirt in the dirty shirt pile as they say. i hate that is the analogy. we still have chronic pain. that is reality we're dealing
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with. good news that we're moving in the right direction and there is meat on the bone in the employment report. bad news there is still a overhang. i worry about looking like things like fast-food where we had seen a lot of job gains, that is abating. less low wage jobs but also less jobs and less jobs substituted out for things like tablets. people are used to walk in, i've done it now in two restaurants and just amazed that i have done i, even i can work a smartphone. but you walk in and order on a tablet and run your credit card through and don't need anyone else in between. liz: can't stand in the way evolution and technology sometimes means fewer jobs. >> and revolution. liz: you have a lot of clients who called you, say, should i worry about x, y or z? did you get a lot of cause yesterday as the dow jones fell 300 points. >> you know it is interesting i didn't. so that is, maybe a testimony to how used to the fact we are of volatility we've seen. i mean i think, you know, usually i would be awake all
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night and didn't sleep great that night. mostly because of my dog. half st. bernard, half beagle. you can't put those two together. reality i think unfortunately the new norm we've gotten used to things two steps forward, one step back, we're not sure if we're going to slip and unfortunately that is what we're used to now. liz: i'm not trying to figure out how get a half st. bernard and half beagle. my dog ruins my sleep sleep. 60-pound of golden, door. >> mine is too. >> diane swonk. try to sleep this weekend. thanks so much. david. david: smart woman. big three automakers had best sales in july in years. one stood out with surging sales of an suv on sale less than a year. we go to illinois with details of that from our resident motor
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more ignition switch problems for harley-davidson. recalling 3300 of its low rider by because the switch defect can cause the vehicle to shut off mid-drive. and according to a local newspaper a bart station outside of portland, maine, has been sold and will be disassembled and scrap. and the sci-fi channel's most watched them original movie is "sharnado 2". and see world has decided not to renew their marketing partnership with set to expire at the beginning of the year. of the can on the way back in 1988. overstock, like a coin, it plans to offer employees the option to take their bonuses in digital currency and it will reward them with a premium for choosing to do so.
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david: leave it to patrick urn. we have to have him back. top automakers posting double-digit gains. liz: who are the top performers? the dodge ram in naperville, illinois. that at the in itself is a huge feat. >> chrysler is killing it again. there is that town & country and the van. and the greatest among these is the cherokee. beating toyota, nissan come the, the only loser this month as volkswagen again who have been having a tough year. the greatest among these all is the jeep cherokee.
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>> they are doing fantastic this year. we can't get enough of them. let's take a look at how much this has improved over the vehicle it replaced. this time last are you sold 16 nationwide almost 15,000. that's 24000% increase. >> with the huge increase. this is appropriate been waiting for for a long time. it's here and we're doing fantastic. >> the wrangler is doing well, the bigger vehicle, that's the jeep grand cherokee. and the ones that didn't do well the chevy cruz and others were
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down. >> i don't know how low gas prices are, but 350 is a lot in my mind and that is the average. some places 350 and 370. david: having one on the record sales of allergy when we talk exclusively with their president, coming up next. liz: from silicon valley to silicon alley. herman miller and for the first time since the 1960s, trying to take over your home in a very chic way. david: we will be right back.
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david: from high-tech offices to corporate offices on madison avenue, herman miller, the furniture manufacturer has outfitted the mall. but surprisingly he got his start designing and producing home furnishings. liz: the company wants to go back to the root. joining us now is brian walker.
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you call it an outright purchase. design within reach. it goes back to your real, doesn't it? >> it yes, that's where the company started, probably the first real global player in idea of modern furniture. >> people are fans of and around the world. >> when i moved to fox and 70 years ago from "the wall street journal", i had one request is that i had to have my chair. and i bought it from "the wall
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street journal", paid for out of my own pocket. and there's another chair that i want to talk about. he's and i magnificent designer for herman miller. it's kind of a crossover chairman could be either an office chair or the home chair. are you going to go for that crossover design now two. >> we have been there we have a lot of recent designs that go into our home or polio. a desk chair, lounge chair, and it can be a dining chair. a lot of our products actually crossover not really just from your home to your office multiple places and we like to
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say that our strategic direction of head we go from august everywhere. so let's not be bound in this way. david: we can't seem to get away from the office. >> we want you to create a lifestyle from herman miller throughout your day. when you get up and having the first cup of coffee, when we did hear actual office, and maybe a it's a restaurant or hotel and we think we can create that kind of lifestyle that is compelling and fantastic for people. liz: will change if anything about design within reach. i love their look. so how do you make of great thing better without ruining it? >> well, the two guys that have been the individuals are sort of in the third inning of a transformation of a star making back in 2010 and so we think there's a lot of runway on a model that they have been using
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which is a about a new kind of studio and it's really an example and i was at one yesterday in chicago and we've opened about eight of those afar. we have 38 studios across the country and we will continue to allow the new model which is generally larger one and it lets people see an entire lifestyle. and we have the only one that tried to sell monitors on products. and we think it's fantastic that you can go to one place. >> very quickly, back in the 20s when he started the company he was a michigan
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business man, has michigan made a comeback? >> they are actually doing fantastic and and around on the westside, our economy on the westside of michigan has become more diversified. so i'm actually really enthusiastic about her work by daniel byrd and others. and i think that detroit will be a shining star in the next few years. liz: the we love the company and we are excited about the new project creates a thank you for coming and. >> thank you. liz: billionaire donald trump is throwing his hat into the bidding war. david: and the upscale brand announcing its 43rd straight month of record u.s. sales
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coming up next and we will talk to the president of trinity will america.
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liz: a couple of days ago we told you that john bon jovi might throw his hat into the ring in the bidding war for the buffalo bills nfl franchise. and then we heard that he had
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some tough competition. the team is up for sale after the death of the owner in march. but here's who has made the cut for the second round and the details are trickling out. donald trump is rumored to be that guy. his lawyers say that he has significant wealth in real estate knowledge make him a viable option as an owner of the buffalo bills. the critics say that it is a publicity stunt by trump. he owned the new jersey generals back in the 1980s. liz: david: he's kind of downplaying it. parent company volkswagen said july sales were down. the luxury grand, audi, has seen a record month. forty-three consecutive record months of u.s. sales and so what can we expect from the luxury automaker? what kind of expansion can we expect to see? joining me now is a fox business
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exclusive. it's great to see you and congratulations and i would like to ask about a specific target that you have. you took on mercedes directly and some people said that was a gutsy move. so how has that been going? your direct targeting against mercedes? >> eisai gets exhausting. i can promise you that it doesn't get exhausting always. the reason we did this as we are anxious to get this going and that is exactly what we are doing but that tier one crush until it's working quite well for us. david: are you pulling sales from mercedes and lexus? what is the entire market
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growing? >> the market is growing we are up 30 to 40% and we are gaining shares and so it's a combination and we are maintaining our loyalty and that's exactly what we want to continue to do. speak to something else that is up about 80% of production costs. investors are worried about these costs going up too far and to france. what do you say? >> i say, look, if you look at our earnings report of $3.6 billion in the first part of the year with a 10% return, we've done well so far year-to-date and like every company in the world have to be prudent about a cost not to we will continue to do. >> production costs have been going in some say too far and too fast. so how do you say that we have to expand in a certain way and what is your explanation to those investors?
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>> i am not in charge of factories come but i'm here as part of the sales in america. so we have a big investment cycle and we are investing in new technology. but certainly that's not a number i'm even familiar with. david: the self driving car, we've heard it through google, you guys are now testing in florida one of the few states that allow this kind of testing and how is that going? >> it is going extremely well. we did a demonstration with the governor of florida and we have shown a lot. and so now in tampa we just did a test where we showed a demonstration of your mouse per hour and we think that this will be a future technology called pilot driving.
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we are ahead of the curve on this. >> i don't think it's going to be a light switch it's wednesday, okay, it's going to come into incrementally if you look at the systems that we have now, it can stop the car at zero and they can keep a distance in front of the car and i think the technology is going to creep on but i don't want to give a date just yet. we have insurance issues on legislative issues and we will get through the red tape and i think it's something that will come through the market place without a doubt. you brought here to the united states, which is clean diesel. how is that going? >> you know, it's going very well. we started on the suv side. about 35% is clean diesel.
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if you go to the passenger side, it's about 13 or 14% of the max. and for also works well and is one of the solutions that we always promote. david: how about electric? >> electric should be promoted as well and we are launching a plug-in hybrid that will come in the second quarter of next year and for us this is a proper combination in which you get a battery and a highbred. that's a good bridge technology and eventually we do see this working well. so that's what this is really going to do. david: scott, 43rd time, lose once in a while or you won't know what successes. [laughter] liz: one of the greatest stories in the auto world.
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social media and online board for giving the website a huge boom in the wedding industry. we have more on that next. stew. david: won the same as letting the adults in on the fun if you'd like to sleep next to sharks. we will have all the details coming up next. ♪ ♪
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and learn more about the kinds of plans that will be here for you now -- and down the road. i have a lifetime of experience. so i know how important that is. liz: according to wedding planning website for not, the average cost of a wedding is 30,000 dollars. but the cost keeps growing. david: and social keep budget on track.social media sites are not helping to keep budget on track. alicia is joining us now. reporter: to me, that actually sounds look for some of the things that i have heard, think of this as keeping up with the jones's but with cake and flowers. we want bigger and better and naturally social media is going
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to prompt brides to spend. social media and online inspiration boards like pinterest help prospective brides. >> it's good for people but i can see how easily people can get wrapped up in it. >> what starts as a simple idea you bigger bust budget busting impressions. >> jerry butler says a large part of her job is to manage expectation and it gets tricky when social media turns a bride-to-be into a glitterati to be. >> living in the celebrity weddings styles is challenging. reporter: kelly clarkson used this photo also on pinterest a
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wedding at this ranch in california. this man says that he spends a lot of time telling brides what they are getting into. >> this is country and not country club. so you're going to have mosquitoes and flies. reporter: there's definitely an upside to wanting these pinterest worthy events. for example the dairy farming industry in california between 2008 and 2012, 20% of funds were going under. but thanks tothe web, they say that these rustic weddings are not a new thing. liz: my daughter, four daughters and six weddings. liz: thank you, alicia acuna.
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david: remember the movie night at the museum? now you can enjoy a sleepover with dinosaurs and the place where the movie can take place. liz: and you might want to know a new way to enjoy alcohol. it's a receiver than drinking the traditional way. ♪ ♪ many of my patients still clean their dentures with toothpaste. but they have to use special care in keeping the denture clean.
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dentures are very different to real teeth. they're about 10 times softer and may have surface pores where bacteria can multiply. polident is designed to clean dentures daily. its unique micro-clean formula kills 99.99% of odor causing bacteria and helps dissolve stains, cleaning in a better way than brushing with toothpaste. that's why i recommend using polident. [ male announcer ] polident. cleaner, fresher, brighter every day. we're changing the way we do t. business, with startup ny. we've created tax free zones throughout the state.
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and startup ny companies will be investing hundreds of millions of dollars in jobs and infrastructure. thanks to startup ny, businesses can operate tax free for 10 years. no property tax. no business tax. and no sales tax. which means more growth for your business, and more jobs. it's not just business as usual. see how new york can help your business grow, at startup.ny.gov liz: a children's movie night at the museum starring ben stiller will become a grown-up reality. the american museum of natural history in manhattan host to its first adult only sleepover with a champagne reception and a three course dinner. partygoers will spend the night in sleeping bags and the event is sold out, sold out within three hours of. david: and forget drinking the
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old-fashioned way. it lets you inhaled booze and scientists say that it's more efficient because it hits your bloodstream. they said in about 30 minutes your blood alcohol should return to zero. liz: the company did not pick a bailout. david: but it did take money for energies. joe said that they want to buy that 2015 savanna and sedan i have seen it and it looks gorgeous. and chain store sales numbers
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considering a strong indicator accounting for about 10% of all retail sales. liz: forget about next week because i need everyone to focus on this weekend. and this is why i'm wearing this yellow band. we are competing in the new york city triathlon to raise money as we have it for years now and are most severely disabled soldiers, there i am on the course, and we are doing it for individuals like this. while serving in afghanistan of 2011, he lost both his legs and his arms while investigating an area written with landmines. thanks to your donations, we built him and his son a custom home in florida. buildinghomesforheroes.org, i don't care if it's a dollar, 25 cents, we'd be grateful. >> you are doing it.
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chris hahn is doing it, greta as well. which ones do you do. >> i'm doing the bicycle. >> the bicycle? >> we're a relay. >> have a wonderful weekend everybody. "the willis report" is next.. gerri: hello, everybody. gerri: hello, everyone, i am gerri willis and welcome to "the willis report." coming up on the show, the victim's compensation fund opens today. also, going from being a musician to a major modeling agency in tonight's installment of our new segment meet the box. and consumer groups up in arms over proposed changes to airline fares. "the willis report" starts right now and we begin tonight with the deadly story surrounding this seemingly simple device and i'm holdin

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