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tv   After the Bell  FOX Business  June 9, 2015 4:00pm-5:01pm EDT

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brand. everyone has a great idea about a product. she's going to tell you how to turn your idea into millions. closing bell sounding on wall street, here's a look where the major averages are ending the day. barely in the green as we settle out there. looks like the dow turned negative there. david: this is important, if it goes negative, it will be four days in a row. still settling, down about 5. couple minutes ago up 5. if it settles negative, it will be four days in a row. since march. melissa: that's right. david: here's everything you need to know right now. melissa: tense day for nation's capitol. two major events evacuated due to security threats. >> apparently the capitol police is clearing this, so we should be locked down, stay in
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place. >> we're clearing the floor. if you could in an orderly fashion please exit as quickly as possible. melissa: our own peter barnes is in d.c. with the latest. i understand they cleared the press room but not the rest of the west wing? what happened here? >> reporter: that's right, melissa. someone phoned in a bomb threat targeting just the white house briefing room, and that threat came just a few hours after someone phoned in that bomb threat, threatening that live senate hearing that you saw the sound bite from. both of the events led to brief evacuations after both turned out to be false alarms after security sweeps by law enforcement officials. sources tell fox news, capitol law enforcement officials are working with the u.s. secret service and the fbi to find out if there was anything in common between these two phoned-in bomb threats at the capitol complex behind me and at the white house. sources are indicating that the person who phoned the threat in
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to the senate hearing also is the one who phoned in the threat to the white house briefing room. the white house says neither president obama nor his family were evacuated in the threat at the white house, melissa. melissa: wow. that's one huge story. let me ask you about another big one today. did anything of substance come out of the tsa hearing? that was another thing that was interrupted. >> reporter: yeah, that was the hearing interrupted by the bomb threat. that hearing was about reports, failures by tsa screeners to detect mock explosives and weapons at airport checkpoints in undercover audits by the dhs inspector general, john roth. roth also testified about this new report that says the tsa missed 73 individuals on the government's terror watch list, who worked for major airlines, airport vendors and related airport employers because of a lack of access to key data. dhs says it is trying to fix both of the problems at the tsa
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but roth is still worried. >> although nearly 14 years have passed since tsa's inception, we remain deeply concerned about ability to execute its important mission. >> reporter: roth declined to comment on the news reports about the failures of the tsa screeners. he would only confirm his office had conducted covert penetration tests at airport checkpoints. melissa? melissa: wow, chaos, confusion, i don't like any of this. peter, thank you so much. david: we're going to stay on it throughout the hour. before the evacuations at the white house, press sect josh earnest addressed what we talked about yesterday, the snub heard throughout the world. iraqi's prime minister edged out by a trio of world leaders including president barack obama at a g7 summit in germany. all captured on videotape. leaders appear to be unaware of the iraqi leaders presence, josh earnest says the president has all the communication he
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needs with prime minister abadi. >> i think those who concluded it was a snub were probably telegraphing insecurities dating bag to junior high. the fact is the president completed a long working lunch that included prime minister abadi, and the president was engaged in conversations with the imf director and others. david: i don't know, pictures don't lie. melissa: amazing. closing in on the two murderers on the loose. the latest on the brazen prison escape. as police zero in on potential hiding spot, the escaped prisoners from the clinton correctional facility have been reportedly cornered by cops about 40 miles from the new york prison. not that far. officials in willsboro, new york, said a sighting of the two men on foot in the southern part of the town prompted the search by new york state police. we're going to have more news from fox news's david lee
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miller on the scene in just a few minutes. meanwhile, in a controversial move to ease the outstanding student loan debt, the obama administration is proposing a plan to forgive the debt for thousands of students. our own blake berman has more on the story. that means we're picking up the tab, i bet. >> reporter: this relief will wipe away burdensome student debt but add a new liability in the billions of dollars for the government. the obama administration has announced it will use an old federal law as the basis to allow debt relief for students who feel they were targeted by colleges that turn out worthless degrees with high price tags. program will be available to student debtholders who feel college's actions violated state law. education under secretary tad mitchell says his department would like to see action strengthened as well. >> as recent events made clear, we need to ask more from states, from institutions and from the creditors and need to
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empower the department with more enforcement tools. >> reporter: the most high-profile case is the now-defunct university chain corinthian colleges, students borrowed roughly 3.5 billion dollars to attend schools, the exposure could climb higher when factoring in cases for other schools. lamar alexander says this is a slippery slope that leaves taxpayers on the hook. a special master will be set up within weeks to institute the relief application process. back to you in new york. david: okay, meanwhile, a very big business story, general motors rejecting the idea it would benefit with a tie-up with rival fiat chrysler. ceo mary barra says the company has no interest in pursuing a merger. >> we have scale. we're in the top tier, and so we've been leveraging that. so when i look at focus that we have, that is the running the
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business, generating results and returns for our shareholders where we're 100% focused. david: her response coming despite a personal appeal from sergio markioni, the fiat chrysler ceo enlisting hedge funds to help prod gm into making a deal it doesn't want according to the "wall street journal." you remember the sweet deal fiat received in the wake of chrysler's 2009 bankruptcy. fiat was given 20% of the company by president obama's bailout committee acquiring the rest of the company at a very deep discount. since then, markioni said there need to be more consolidation in the auto industry. but melissa, he seems to be one reaping all the benefits. the question is fiat was in trouble because of the recession in europe. chrysler going great guns, he got chrysler for a fire sale. given 20% of the company. the question is whether he's been using that money to keep
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fiat alive. >> you can't blame him. playing by the rules he's been given. might be frustrating to the american taxpayer. david: remember american taxpayers were on the hook, it was about $2 billion all in that we gave chrysler in the bailout and essentially you wonder whether there needed to be bailout, if it had gone through regular bankruptcy because it's doing well right now. melissa: absolutely. great point. alibaba chairman jack ma laying out strategy for competing with amazon in the open market. he spoke in new york this afternoon. jo ling kent was there. what did you hear from him? >> reporter: jack ma revealed more plans for alibaba pitching hundreds of the very top business ceo's and executives in new york. first news that we got from him. i spoke to ma and he told me he has new plans to open brick and mortar stores in china within the next five years. this is a big move for e-commerce company, right? the inventory will be based on
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realtime information. at the economic club, he focused on doing business with more americans. he said the purpose of this trip was to bring more american products into china, not necessarily do business here in the u.s. he said they need more american products as the middle class in china of more than 350 million people continues to grow. when asked about the chinese government's role in favoring chinese businesses over american companies there by the way, he predicted that more american internet start-ups will do better as long as they get to know the chinese market. alibaba is battling a war against fake products on its e-commerce platforms. here's what he had to say there. >> it's the war against the criminals. anyone that goes to alibaba could demonstrate, they would pay the ticket air fare, pay for the hotel rooms, and they
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pay for every day in the daytime, 100 an hour, if you go to alibaba again because they are the fake product owners. >> reporter: he called the war against fake products a war that they are slowly winning but it is a very lonely war. he also addressed the endless comparisons of alibaba to amazon or ebay. he made it clear, alibaba doesn't buy or sell but serves as e-commerce clearing house. he emphasized how he wants to bring american businesses into china and that is the pitch as he heads to chicago today. melissa: very interesting, jo, thank you so much. david: bad timing, just as china's hacking into our government resources here. melissa: although, that's not like that's new. david: been there before. a medical breakthrough you want to know about. lowering cholesterol. this is going to cost you. apparently it works much better than the old drugs. coming up, find out what drug has the fda's full attention and should have yours.
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melissa: plus we'll get real with reality tv star bethenny frankel. what the creator of skinny girl products has up her sleeves, up next. david: the very latest on the hunt for those escaped prisoners in new york. we're going to take you there live following reports cops have them cornered. the latest in a moment.
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i love this times of year. for all the confidence you need. td ameritrade. you got this. . melissa: two murderers on the loose right now. the latest on the brazen prison escape following reports police are zeroing in on possible hiding spots. fox news david lee miller is outside the maximum-security prison, they left behind in upstate new york. conflicting reports, is that right? >> well, we have clarity now, melissa. we spoke to the state police, and they tell us that there is no truth, no truth to reports that these two fugitives have now been cornered in the town
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of willsboro but continue to follow a lead concerning the men's whereabouts in that town. let me rewind a little bit and tell you what happened here. take a look at map, see the relationship between dannemora where the prison is, about 40 miles from willsboro, willsboro is to the south. short time ago this morning, about 2:00, there was a notification that two men were spotted walking on a road in willsboro. a vehicle approach and the men reportedly fled into the woods. this information from the sound supervisor there to fox news. after this report was released by a resident, that's when state police, departments of corrections personnel, u.s. marshals service and the sheriff swoop down looking for the two fugitives. at this hour, it appears that
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search is still under way. the reason this might be a good lead, melissa. these two men were walking down a desolate road, 2:00 in the morning, during a heavy ran storm. who are these men? what were they doing there? we still do not know. and as for the community of willsboro, it is a town of only about 2,000. what would bring them there? even that's unclear. there was a report that one of the men may have had family in willsboro. the town supervisor said as best he knows, that is not true. so at this hour, the manhunt, the search continues, but perhaps they are, in fact, closer to locating these two fugitives, and what's really remarkable here, melissa, if, in fact, these men are in willsboro, they did not get as far away as many feared. there was some speculation they may have gotten to canada or much further, maybe to mexico.
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they might be in the shadow of the prison. back to you. melissa: wow, david lee miller, thank you for updating us on the story. continues to change, david, over to you. david: imagine a way to lower your cholesterol more quickly than with statins and without the side effects. injectible cholesterol drug could mean billions to the maker once it gets the fda approval. it's going to cost over 10 grand a year. with more than 73 million americans suffering from high ldl cholesterol, could this be a major breakthrough? joining me is dr. jeanette, family and emergency medicine doctor. doctor, this is a new class, and emphasize it's an injectible drug, you'd have to stick yourself with the drug once a week, but it works much better than statins, right? >> david, we're always looking for a quick fix, i'm excited i think this might work. there's almost 75 million americans who have high cholesterol in this country. doesn't just affect adults but
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children as well. david: there's no silver bullet, and thought the statins were it. i had a doctor who once thought my cholesterol was too high. i didn't want the side effects, bad knees, elbows, all the joints are affected. i changed eating habits, started taking red yeast rice and got cholesterol down. if you can avoid taking drugs like this, isn't that the better way? >> always the better way prevention and remedies, the medicines have side effects. these medicines, if we don't have the medicines, people are dying from heart attacks and strokes, not just that, high cholesterol causes osteoarthritis, joint pain, erectile dysfunction, you got to looked at risks and benefits of all the medications out there. david: we don't know yet. so far it looks like it has less side effects. we'll have to wait and see.
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moving on, a new strain of tuberculosis, now affecting us, somebody apparently came here with it. tell us about it and how worried folks should be about it? >> there is a concern especially if you have a weakened immune system, malnourished, if you have hiv, you should be more concerned if you are developing chest pain, shortness of breath, fever, night sweats and chills. david: this particular strain is resistant to the regular drugs to combat tb, any drugs that work with it? >> there are drugs under trial they're trying to use, you have to first try to tackle it via prevention, via screening, if you have the symptoms, get to your doctor right away, get a chest x-ray, blood work, sputum cultures, if we can catch it, we can treat it with the medicine. david: scary, it was in an
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airplane, in an airplane, you can catch anything. >> that's right. usually you catch tuberculosis from coughing, someone else coughing and sneezing, through air particles, and you need long prolonged exposure. higher risk folks in household contact with the patient who has tuberculosis. david: dr. janette, thank you for coming in. melissa: turning ambitions into reality, "real housewives of new york" star bethenny frankel is here to give us the skinny on skinny girl. and the billion dollar pension dispute, a top court's ruling on chris christie's latest plan. th breather. th breather. well, put on a breathe right strip and instantly open your nose up to 38% more than allergy medicines alone. so you can breathe and sleep. shut your mouth and sleep right. breathe right.
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empire. here is bethenny frankel, the founder and ceo of skinny girl. what you've done is remarkable. there are so many other housewives, it's embarrassing to see the products they put out there and put with their name. >> i know. melissa: you have a huge real business on your hand, and expanding further beyond margaritas? salad dressing, what are you getting into now? >> the key is authenticity to what you were talking about, people want to do a smash-and-grab job, they're on tv and want to pick anything. it doesn't work, the viewer is very smart. bravo is inspirational, aspirational, affluent, they know. this is something i dreamt about before i was on the show. it started with the margarita, continued to wines and vodkas and went into chips and salty snacks and microwave popcorn, salad dressing, dips, nutritional bars, liquid water enhancers and sweeteners.
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this i shaped which is a little outlier, amazing, everything is consumable to nest around the thing that does well, and fbz something does well, the cocktails go well and i expanded around the cocktail. melissa: you have everything that a girl who doesn't eat needs. >> it's practical solutions for women. if you are at starbucks, grab this and put it in your coffee. this is agave, if you are a mom on the go, the salad dressing is low calorie. melissa: the way you shaped this business, not like you have a thousand people working with you, you partner with different brands and come up with the concept, they take care of the manufacturing. >> this is a low overhead proposition for me. i don't want to be responsible for 100 employees, insurance and being responsible for them. i have a few employees on a brand which is surprising, and i use their infrastructure, they put up the money and the
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distribution and the muscle, and i do all the marketing, and i come up with the creative and the flavors, and i picked great partners. melissa: this is appeals to a lot of folks, they have idea and don't know other than hiring a million people to turn it into a big brand. your next book coming out is i suck at relationships, how would you translate that to business? you were making margarita in a bar, you turned it into a business, what mistakes have you made it business you would impart to viewers not to mistake? >> not looking at fine print and not thinking ahead. i said, well, beam is a big company, how do i know i'm not going to get lost in the shuffle? i'm going to make them accountable to guarantee a certain amount on marketing. you want partner stuff, skin in the game. you are talking about a person home on her couch wondering how
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did it? people get caught up in the idea. let me get into the paperwork and spend months mired on that, you have to be doing that working parallel paths and get in there. it's execution, i talk about mark zuckerberg and facebook and the twins said it was their idea. it doesn't matter. no one executed like mark zuckerberg, who gets to the wall first, and housewives look at what i'm doing and what everybody else is doing. keep it moving and make it happen. melissa: real quick, what's step one if someone is at home on the couch and want to go out and execute. what is the first? >> find out if the idea exists, is there a barrier to entry? can anybody do it? you could come up with the idea and i came up with the cocktail idea, luckily i was the first person to speak to women in cocktails, it was an original idea. i had all the other big brands to copy me.
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i partnered with beam to fight them all off. you have to know if your idea is original enough and get out there first and best and strongest? yeah, you want to make sure no one else is do it. people don't think about intellectual property enough. the mark. who owns the mark. the trademark, the name, the logo, can you own something. i own this girl is this name, that's what everybody wants, doesn't matter what i make. melissa: bethenny thank you so much. >> thank you. david: good luck. >> thank you. david: a potential souvenir for fans could mean big bucks for new york state. over 90,000, $2 winning tickets for american pharaoh were sold at the belmont stake and have yet to be claimed, undoubtedly by fans who want to keep them as suf nirs. the tickets are worth $3.50. bringing the total to over $315,000.
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if it is unclaimed, the money will be paid to the state of new york. stuart varney spoke to the jockey victor espinoza about the money behind the historic victory. >> how much do you make? >> zero. >> come on. >> i donate all my money to state cancer research for kids. >> all of it? >> all of it. >> god bless him. wonderful guy. melissa: that's amazing, very cool. loan forgiveness on the taxpayer's dime. the president's new push that will forgive billions of dollars of student loan debt. david: we're waiting on elon musk as he prepares to update tesla investors. how much longer can the company burn through 400 million dollars a month?
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get fast-acting, long-lasting relief from heartburn with it neutralizes stomach acid and is the only product that forms a protective barrier that helps keep stomach acid in the stomach where it belongs. for fast-acting, long-lasting relief. try gaviscon®. . melissa: all clear at the white house after a bomb threat cleared the press briefing room. fox news's own james rosen was the last person to be evacuated from the room. that was quite a risk! you were the last guy to walk out? >> i was, i took my time, they didn't seem to be hurrying me along. mark noeler of cbs news covering this place since the ford administration and regarded as the unofficial keeper of white house statistics could not remember another incidence when an ongoing white house briefing was cleared out like this. ironically white house press secretary josh earnest was in
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the middle of discussing another threat to the federal government, specifically cyberthreats when the secret service appeared at the briefing room door. >> agencies across the administration understand that these kinds of threats are real, and require the attention of the senior leader, senior level officials at each of these agencies. >> sorry to interrupt, need to evacuate the press room. >> where do we go? >> reporter: it turned out a bomb threat specifically targeting the white house briefing room had been phoned into washington police. i was the last person out the door. a cluster of secret service officers told me the entire west wing had been evacuated but the white house later said only the press area and a little office known as lower press were evacuated. president remained on the grounds. >> josh, you said you were
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evacuated but you mean you just went to your office? >> that's correct, i was evacuated from the room like all of you. >> reporter: can you remind us how close your office is? >> not far at all. >> reporter: hard to imagine a bomb threat would necessitate evacuating this entire room wouldn't affect the west wing complex. it's not a very large complex. >> it's not a large complex. jon, i can't account for that. >> reporter: he could not account for who went through the briefing room while it was cleared out and pointed our cameras at ceiling. melissa? melissa: very interesting. i want to hear more about this, james. thank you so much, look forward to reporting. over to you. david: our own presidential historian by the way. the obama administration is pushing a plan to forgive student loan debt for students that were misled by their universities, meaning taxpayers are going to be footing the bill potentially for billions of dollars. here to discuss this is rob frantic, the senior vice
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president of the princeton review, jack howe and fox news legal analyst lis wiehl. i know the legal process has to find out whether the claims are true or not. in what way were students misled? >> the question of gainful employment. the students before they took out a loan, enrolled in corinthian college. david: they made claims what the degree would give. >> you filed for bankruptcy and closed in the past spring. it's a question before they enrolled and took out dollar one in the federal student loans, were they promised gainful employment upon graduation. david: and some of the claims were you could get a job in the pharmaceutical industry when, in fact, the guy they were referring to had a job behind the cashier's counter at duane reade. >> many stories like that. david: lis, there used to be buyer's beware, what happened to that? >> alive and well. not in this case.
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david: if it's alive and well, why doesn't it apply to this case. >> if you buy a bad car, and the car is a lemon, do you sue the bank? no, you sue the car dealer, the car manufacturer. that's what is not going on here and should be going on. david: what is going on here, jack, and i'm going to make a jump and leap, which is politics. the obama administration wants to bail out student loans, and officials have told this particular story, the "wall street journal" under the emerging plan, the government will consider forgiving any loans made directly by the government. so isn't this a larger plan of the obama administration trying to forgive student loans? >> it could be, and i might go one step further with that. whenever we want to make something more attainable in this country using government program, we only ever do one thing. we artificially puff up buying power. what happens when you do that? prices spiral out of control. you get zimbabwe-like
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inflation, what you have in college costs and you get the new actors entering the market with low quality products trying to soak up the government cash. not an affordability program, it's an unaffordability program. david: there's $1.2 trillion of debt in the student loan pr programs. do we have the money to forgive all those? >> i don't think we do, a. b, who is to be sued here? it is the college, if the college perpetuated fraud, they could be sued for that, fraudulent or prosecuted. that's the college or the colleges to go after. david: rob, why don't we take each individual case rather than dealing with thousands of students who have student debt that is more than we can afford to pay off? >> i hear you, looking at the big picture particularly from student advocacy side of the fence when a student is looking for colleges, 11% of all
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students go to a for profit school looking at 44% of the loans that students take out. making sure they were getting what they promised. getting jobs after they graduate. totally hear the argument here but focusing on the student and trying to forgive debt. david: again, what the administration wants to do is expand it to all nonprofit as well as for-profit institutions and we don't have the money to pay for it. melissa? melissa: flipping through the new calls for privatizing. the tsa reports missed workers with ties to terrorism. wait until you hear who mcdonald's is hiring to get out the good word? it's more than the cloud.
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. melissa: cracks in the airport security system, the tsa failing to identify 73 airport workers with, quote, links to terrorism. that is according to a new report from the department of
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homeland security. let's bring in our panel. judy miller, the author of the story and a fox news contributor, nomi prinze and lis wiehl is back as well. 75 people who have links to terror. what does that mean? >> the definition of getting on the list is reasonable suspicion to believe that a person is known or a suspected terrorist. what does reasonable suspicion mean? you have to go through the 166 page couple the, if the person had close continuing or direct relationship with a known or suspected terrorist that reasonably suggests that individual is involved. what does that mean? it's all gobbledygook here. melissa: shouldn't be working at the airport, how is this happening? >> the previous problem we talked about on the show which is the 97% rate at which people were able to smuggle bombs and weapons onto airplanes.
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this is consistent problem with tsa. most of it or a lot of it is redacted, so we don't know where the qualifiers are. >> that's the problem, exactly. >> it's time that the american people are leveled with about the kind of security we're getting or not getting for our money. melissa: for our money is right. we're talking about an agency with a $7 billion budget for next year. maybe better off privatizing this? >> $7.3 billion budget, 3.7 is going to checking us. all the machines is check us and these people are coming off the list, check off employees of the tsa. regardless how it's defined, there is a list that the department of homeland security and the tsa who reports them are not talking to each other. that's a bad issue. >> everything on the list because of the actions. melissa: that's a very important point because of the ig states the tsa is not authorized under the watch listing policy to receive
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certain terrorism related category codes, that means that the tsa doesn't necessarily have access to the watch list? aren't they supposed to be using that? >> exactly. all of these things are redacted from the report. they do not have access to that. how are they supposed to manage the employees if they're on the list or why they're on the list. >> the 9/11 commission report, way back then when we were finally attacked and everybody said never again. first recommendation was people need more information. government agencies have to talk to one another. and we're still not. >> the fbi and cia were not talking to each other. melissa: this makes me like we spend all these extra hours at airport, taxpayer dollars, we're getting a false sense of security, when we were getting through and patted down, maybe you feel better about the security at the airport but the report reveals we're not any more safe. >> cracks in the communication between levels of government funded by us to do this. melissa: wow.
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what disturbs me is no disagreement on the panel about what a mess it is. anyway, thanks, david, over to you. >> look at the color coordination there, red, white, and blue. they didn't talk to each other beforehand. david: coming up, elon musk facing tough questions from shareholders. deirdre bolton is take us through it all with the breaking news headlines. deirdre, a lot of analysts are bullish on the stock. they have questions, what are they hoping to hear? >> very bullish on the stock. if you look year to date it is up something like 15%, that's not the story of the beginning of this year or early last year, a lot of people point out, elon musk a lot of wall street firms do, that makes analysts jobs when they look at financials tougher. on the plus side, bright spots that we can hear about, tes lark the suv, popular category of car. don't know if you have one.
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in essence there is an suv meant to be delivered, available for purchase the third quarter of this year. analysts looking for thamp the model s, lots of kudos and more information about a lower priced vehicle for $35,000. david: just for the record, i do not have a tesla. i usually rent the car. >> you ride a bike, david. david: that's right, i live in manhattan, you don't need one here. i've been reading a lot of reports about the way they're burning through cash. a lot of young companies do that, starting to worry the stockholders. what other negatives do the company focus on? >> they didn't sell as many cars as they hoped so far this year. you have the 50,000 vehicle mark, the magic mark for the company by the end of next year, it does seem as if there is a little slowdown there. so in that case, that is certainly one thing that many analysts are focusing on, also expecting a bit of a stronger reception in china.
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looking for update in that. david: i hear, 400 million dollars a month they're burning through in cash. they got to address. that deirdre bolton, thank you very much. we'll be watching "risk & reward" coming up just about 15 minutes from now. melissa. melissa: whether on wall street or main street, here's who's making money today. robert gibbs, mcdonald's hiring the former white house press secretary as global chief of communications. the struggling fast food giant trying to turn things around under a new ceo. gibbs served as president obama's press secretary during first term and left in 2011. also making money, snoop dogg suing pabst brewing, hes is the company owes him money from the sale of its colt .45 beer line last year. snoop signed three year deal to endorse fruit-flavored beer in 2011. and pizza and a movie. pizza hut debuting a new
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cardboard box that turns into a working movie projector. the blockbuster box uses smartphone and a special lens to stream a movie. genius. unfortunately it's only available in hong kong. oh, well. david: we got to get that here. coming up, paul volcker criticizing states how they are using a shell game to balance budgets. dire warnings coming next. the real question that needs to be asked is
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"what is it that we can do that is impactful?" what the cloud enables is computing to empower cancer researchers. it used to take two weeks to sequence and analyze a genome; with the microsoft cloud we can analyze 100 per day. whatever i can do to help compute a cure for cancer, that's what i'd like to do.
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. melissa: big legal victory for new jersey governor chris christie. the state's high court ruled in his favor and will not be forced to make payments to the ailing pension fund. the ruling could have far-reaching implication for budget battles across the
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country. on whether pensions are sacred and completely off-limits to cuts. keep an eye on that one, david. david: related to that one, are states hiding the depth of financial problems. former fed chair paul volcker releasing reports on states in new jersey, california, could states be the fiscal shoe to drop in the economy. how bad is this? >> well, in terms of states going broke, states have this remarkable taxing authority where they can beat constituents over the head for as much money they want in the future. i'm not worried about states going broke. the accounting issues. >> they can't print their own money like the federal government can. >> you have to have a methodology where companies are forced to do basic things, when you have a project, pair the expenses and revenues in the same time period so shareholders know how much they're paying and getting? states don't do that.
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david: judy? i'm amazed new york state is not in it. look at cesspool, state capital, the corruption, the mta, the mass transportation authority. that corruption is practically out in the open it's so obvious. you multiply that by every state in the union. >> new york may be more efficient in corruption. david: or clever at covering it up. >> we've got the best in new york. >> but, look, we have problems. every state has problems, and the problem is a lot of them constitutionally are required to balance the budget, which means that almost every one of them relies on financial shenanigans in order just to make it appear as if they're doing that when we all know they're not. david: nomi, even though there are constitutional requirements to balance a budget. i'm wondering with the shenanigans with the accounting whether we may see defaults, statewide defaults.
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we've seen individual cities defaults but statewide defaults. >> new jersey has continued to get downgraded. not just on the list to volcker, it's downgraded nine times under christy. it's a cascade from the federal government and the financial crisis of 2008. the government could print lots and lots -- 18 trillion dollars in debt. you don't hear problems there. at the same level, the same economic problems that occur that make pension funds less funded than they could otherwise be corrupt in large cases as well put together will potentially -- >> what happened to governor christie today, he's not paying money that was promised to these workers. when he stood in front of the firefighters union and booed him for five minutes, he said i understand why you hate me, what i don't understand is why you hate all the politicians that preceded me that promised more than they knew they could deliver. >> i could not better design a
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vehicle from the ground up that is more made for sticking it to the taxpayers than a public pension. you make the big promises and the crowd cheers, then we don't have to pay much for now, and the crowd cheers, it's the guy down the road. david: when it comes time to pay the piper. we have breaking news. judy, jack, nomi, thank you very much. melissa? melissa: breaking news, we are learning from the fda panel voted in favor of an approval of cholesterol-lowering drug, that could be a game-changer for those with a -- 73 million people with high cholesterol. amgen is waiting the fda's nod for a similar drug. still to come, the one important thing more than 100 eight-year-olds were willing to stand in line to wait for, and it had nothing to do with
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justin bieber. of course not! they were eight! can you spot the difference? no? you can't see that? alright, let's take a look. the one on the right just used 1% less fuel than the one on the left. now, to an airline, a 1% difference could save enough fuel to power hundreds of flights around the world. hey, look at that. pyramids. so you see, two things that are exactly the same have never been more different. ge software. get connected. get insights. get optimized. every auto insurance policy has a number. but not every insurance company understands the life behind it. ♪ those who have served our nation have earned the very best service in return. ♪ usaa. we know what it means to serve. get an auto insurance quote and see why 92% of our members plan to stay for life.
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it's a highly thercontagious disease.here. it can be especially serious- even fatal to infants. unfortunately, many people who spread it may not know they have it. it's called whooping cough. and the cdc recommends everyone, including those around babies, make sure their whooping cough vaccination is up to date. understand the danger your new grandchild faces. talk to your doctor or pharmacist about you and your family getting a whooping cough vaccination today.
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>> breaking news the fda panel has voted in favor of approval of cholesterol lowering drug, we were just talking about it. >> absolutely. there you go. >> here's deirdre. deirdre: thank you very much, dave and melissa, coming up on risk and reward, elon musk at tesla, we'll cover the sales outlook and the delivery date for the new car. and one billionaire says robots will cause mass global unemployment. is he right? we'll ask two experts. and some say sitting is the new smoking. we're going to show you a healthier desk. risk and reward starts now. ♪ ♪ . deirdre: i'm deirdre, welcome to risk a

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