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tv   The Evening Edit  FOX Business  May 2, 2018 5:00pm-6:00pm EDT

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will be available starting this month through end of september. i have been wary of special brands from budweiser. melissa: you are going for? david: taste and honor. melissa: i love it, it warm outside, let's do it right now. evening edit starts now. >> cash 6500 a minute, i think it is, they still have headaches with model 3. only thing that saves this company is elon musk, i think he can. >> they pay same amount of interest right now at ge. >> dow dropping. this as elon musk tesla announced earnings beat. electric carmakers, still
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burning billions in cash. tonight we're on it, politics, money. i am in for liz mack -- mac macdonald the evening edit starts now. >> dow closing down 174 to tw 23924. tesla earnings just released. it is a beat. with me now christina with latest. reporter: thank you. >> a beat but still means that company is posting losses, they adjusted earnings per share $3.35 loss but the loss is better than what analysts were expecting $3.58 a share. revenue coming in higher than expected. a little bit stronger, there was
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an uptick in stock afte after-hs trading. but now a mute the reaction barely moving. what el? they know they don burn fuel -- they don't burn fuel they are an all electric carmaker, but they burn cash. we're seeing for cash balance, 2.7 billion dollars has been a concern because company has been using a lot of money to build the cars, there are issues with production. but affordable model 3, supposed to be base $35,000 u.s., but with add-ons is 55,000. last. their goal to hit 5,000 units a month. within the next two months. per week. i mentioned before, they had two factory shut downs within last few months.
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now according to latest earnings report they will have another shut down in q2, lasting roughly 10 days, mufnl musk said there s been too much automation too quickly. they have a lot of robots. and working with humans can be cumbersome. they are working on bottlenecks. a big beat in tesla earnings. fact that energy generation and storage destroyed expectations. sales of batteries 410 million dollars, solar panels, expectations were 300 million, a stronger beat over there. right before the earnings, we saw a portion of the share on market, about 30% of those stairs, were short sellers, investors that believe or time
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that company is not going to do well with valuation and they are expecting the share price to drop. that is say big mover. and maybe throw an acronym, the memeddle s -- model s, and mode3 which was supposed to be an e . and model x, they have talked about launching a model y ? what does that smell, it was intentional, sexy. that was musk's joke, but the joke is on him because nobody gets that because it is model 3 not e . there a story for you. >> thank you christina. >> tesla cash burn, musk company reporting burning 3.4 billion. there is less than wall street expected. stock now jumping after hours, electric car jump saying it is expecting to e end quarter with
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two and a half billion on hand, bulls and bears buddies. jonas. you showed up seconds ago, where were you? this my debut on evening edit. >> i was up stairs. >> you are smart, i want to ask you about tesla, great earnings in batteries, solar panels and rockets. but a hard time producing cars, his cash burn said he is going to go bankrupt, betting on mufnlgmusksays he will make it. >> this is like the airline business, this is a hard business that requires a lot of cost. i don't think it will work would so much fundraising, hopefully equity fundraising.
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and i think it will have to require strategic partner. i don't think that volume of the cars will pay for debt they have taken on. i am concerned with the cheap car. not producing enough profit that is one of reason they don't make a lot of money for business, they need cash flow, it should have been equity financed. i am a fan, i hope it works out. but to me he is john delorean with unlimited credit account. >> gary b . he was behind the curve on model s, model x, and huge burn rate, cash flow positive after the debut. 2008 he was a day or two away from being bankrupt, he took a rocket company and scrooch scra. this is elon musk. if anyone el from 2000 cars to
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5,000 cars, 150% gain. that is impossible. but for elon is he able to do it? >> i don't think so. jonas made many good points. i see him as a walt disney-like figure, a visionary, but disney managed to build a program with a monopoly at the time, that people wanted at a reasonable cost. the key part this reminds me this tesla story, reminds me of the guy that came in and took over the billionaire that done know anything about retail but thought he could turn sears around and kmart. retail is a very, very difficult business. a nuts and bolts detailed, similar to car. car businesses -- the ground, dealerships, and customer relations. musk has a terrific idea.
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but it -- but i hear in little old vero beach, i wouldn't know how to get a tesla, i know how to get a crise he chrysler or fr chevy, you can't go to a local dealer with tesla, for many people, that is not even including price, this a fuzzy concept, they are expense itch carexpensive carsthat look goodt whole car distribution angle. and last year, at this time they were losing 400 million, now they lost almost 3/4 of a billion, i don't see how they can stay in,. jonas is right he needs to partner up with someone in industry, maybe that is solution. >> jonas, i asked elon musk to come on show, he is launching rockets or something to do. is he walt disney?
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steve jobs? pt barnum? >> he is a lot of steve jobs. i don't want to be critical, but a big difference between money transfers like paypal and building cars. do you sell the expensive electric car for $100,000, he is good at that. but i am not buying the 35 thousand dollar car thing. it will be junky or not like a tes lamp i don'tesla. that project is a waste of money. he. i want it to work. without an unlimit line of equity financing, maybe he will get, it will take more years,
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there is a lot of competition brewing at bmw, and volvo, in electric, and hybrid and porsche. >> mr. musk, you have an open invitation, i am hosting all weaken less they fire me beforehand. but to apple and back to you gary b . on>> apple, increase 30% in two year, selling 77.3 million iphones, 13.2 million ipads, 5.1 million macses in 2018 first quarter. apple up after a huge earning beat, consumers dropping pay tv packages in favor of cheaper streaming products. this combined with tw 270 millin subscribed to one service or
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another, is that apple's revenue going forward, would you buy it going forward? >> i would, this is now a two-prong company. it was very similar to ibm in the '80s. a hardware mainframe company. that is what it was. you went out, you sold those, ibm needed too transition to service, and cloud and things like that, it, it that well. apple undergoing the same thing with one critical difference, one, there is still a mainframe market out there, that is the iphone, ipad and et cetera. but one thing they have that ibm did not is that 270 million number of subscribers across the services. that is up from 100 million just a year ago, those people are locked in. i use the app store, i use apple
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hughesic, that -- music that is where revenue will be, they think that will be about 6 where are60% oftheir revenue going fo5 years. that is key to apple success, if they can pull that off it will continue to be terrific i would buy. >> i, agree, apple gets like nfl rights to premier league, a matter of time. similar to rupert murdoch with fox sports in 1990s. he said he overpaid, it built an empire for him or helped to continue to build that empire. starting with you jonas since you are in florida and you dodge taxes there. there is tax -- right now driving an exodus. 70,000 people have moved to florida, that because it is old and retirees, it is not, most 26 to 35-year-old, you had a big
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wall street firm announcing it is leaving high-tech for tennessee. alliance bernstein managed over half trillion dollars. its headquarters, chief executives and most of new york staff is relocating to natural nashville. question is, because you have state arbitrage, and money is fungible. is this a problem for places like new york that are high income state. >> they could not go to florida, still too expensive there are too many teslas in florida, i don't know about nashville. then, partly cost but you can't make as much money in asset management as you could. it is going to indexing. they have done well with performance, they are losing
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money, like clockwork. like cable accounts, they can't afford new york city, new york gets more expensive, now with tax, you can't detuck things, their employees will not be able to live here in 5 or 10 years, they know that. anybody that expect to be successful, they have to cut new york city out. mutual fund have not been based here for this reason. >> you say that super wealthy smart guys like you benefit from moving to florida. >> so great to be. >> crew from bulls and bears for so long. >> thank you. >> stock ended day lower. spotify reports first quarterly earning z as a public company, nicole on floor of new york stock exchange with latest. reporter: stock on wall street sold off across board, late day selling on heavier volume, dow
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finished down 174, s&p 500 down 19. nasdaq moved higher by 1% yesterday also down today, transportation index of the worse of the bunch down 1. 1%. verizon, cisco and travelers down. but apple and ge gained. spot fi came -- spotify came out with its numbers were th the closing bell, the subscriber numbers were disappointing. back to you. >> gas hike fight going down in california. pushing forward a repeal. forcing question on to november ballot. man behind push has almost a million signatures. >> also, world wrestling fedding a hosting biggest pay-per-view
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event in saudi arabia. bruce pritchard will speak of the wwe breaking down. >> chief negotiator of iran deal, john kerry now defending his iranian nuclear deal. in face of netanyahu accusing the top terrorist sponsor of lying. >> former arkansas governor mike huckabee is here to react, after this. today we're out here with some big news. jardiance is the only type 2 diabetes pill proven to both significantly reduce the chance of dying from a cardiovascular event in adults who have type 2 diabetes and heart disease... ...and lower your a1c. wow. jardiance can cause serious side effects including dehydration. this may cause you to feel dizzy, faint, or lightheaded, or weak upon standing. ketoacidosis is a serious side effect that may be fatal.
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john: breaking news, regional report claiming north korea released three american citizens from prison. according to reports they are still in pyongyang, say we cannot confirm va validity of te
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reports. we're working to seeu citizens who are detained in north korea come home soon as possible. >> john kerry saying that israeli prime minister netanyahu showed world why iran nuclear deal was needed. kerry says, every detail prime netanyahu presented yesterday is every reason that world came together to provide years of antion an negotiate the agreement, because the threat was real had to be stopped, it is working. that is why israeli security experts speaking out. >> oil posting biggest gain in two weeks. ready to react if president trump should kill the deal. joining me now former arkansas governor, former presidential candidate, who would have been a great president, governor mike huckabee, an honor for you joining us. i want to ask about kerry and this iranian deal.
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they said they want to stay in deal, when deal was done, i agreed with most it was terrible. but it. done, their deal is better to leave it than renegotiate. do you believe same as leaders, sir? >> i'm not sure do i do. -- i'm sure that i do. the iranians cannot be trusted, in year since 1979 they took our hostages they have not kept one single promise they have ever made. and they have killed american the, they have kidnapped americans. they have held hostage people that had committed no crimes. they have been world's largest sponsor of terrorism. they have inflicted extraordinary carnage on american soldiers through effort in proxy wars. in afghanistan and iran or in iraq rather. and i just don kno don't know we
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would trust them, what we dwe did for economic reason. we unfroze that money, because a lot of businesses and countries wanted to do. i think that is blood money, i think we'll live to regret it. john: governor, what would you do? worry about tooth paste getting out of tube. i don't think that anyone would be in dispute of those. what would you do at-this-point? would you start over or continue with renegotiating. >> if we renegotiate, there has to be a much better handle on the ability to monitor when they are doing, right now it was written so it favors the iranians, they have so many days before we can get inspectors in they can move any material they want to. even at the time it looked like a ridiculous surrender to the
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iranians, it would only work if we could trust them. but we can't trust them. if we have any deal, i think it has to be renegotiated, they are afraid donald trump is say person who has demonstrated he will do what he say, he does not let america get played like a chump, that is why we're seeing progress in north korea, and klein comchina come to table ank the way we do business with them. why cun suddenly saying, he means it that is what we needed, and so if europeans are nervous, good, let them be nervous, they should not have succumbed to the deal in the first place, let's make a better one, but let's hold the iranians accountable for what they will have to do if we're going to have any responsible trust for them. john: speaking of china, tariffs seem to not be applied to china. about 2.2% of steel. problem with china how they burn
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the governments from world to one belt, one road initiative in she larga -- sh sri lanka. that is real problem with china, how did we dress that and why do we go after tariffs first? >> well, i think it is a lot of carrot and the stick, president realizes if he has a stick, then maybe he could move to carrot, but we have done we have allowed them to set terms of trade deals they have cheated to trade deals, including steel, it may not be big in terms of great global perspective, but for a lot of american steel workers, a huge issue they dump steel, government subsidize steel running through third party countries, so it done appear to be chinese steel, it was. and i think holding their feet to the fire, and saying, if you want to be a part of the world
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economic experience, then you have to play fair. and you are right. i could not agree more. and i want to comment you for mentioning that intellectual property threa theft is real cr. the one thing we have right now is their attention, something we did not have before, because the president has threatened with tariffs, he threatened with renegotiations trade deals, and cutting off trade deals that are not fair to america. and whether they like him or not, they fear him. that is better to be feared than loved. >> a hard break, a quick question. when you took over governorship of arkansas, you had 200 million deficit, 850 million surplus when you left, what did you do with republicans who are no different than democrats with spending. >> they need to get home, and get republicans that understand what fiscal rponsibilitoo like, that is why i support term limits, if we can't get term
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limits this term them out, sense them home until a get job right. john: thank you so much governor, honored to have you. >> thank you. john: gas tax fight going down in california, california conservatives fighting back pushing for a repeal, forcing a question o on november ballot, e man behind the push. is here it talk about. john cox will speak out after this. here. same thing with any dent or dings on this truck. they all got a story about what happened to 'em. man 2: it was raining, there was only one way out. i could feel the barb wire was just digging into the paint. man: two bulls were fighting, (thud) bam hit the truck. try explaining that to your insurance company. woman: another ding, another scratch. it'll just be another chapter in the story. every scar tells a story, and you can tell a lot more stories when your truck is a chevy silverado.
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72 a revolt in sanctuary state of california, gas tax repeal effort heading to november ballot, gubernatorial candidate john cox said he has over 940,000 signatures from registered voters, national average gas price $2 .81.
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california pay higher of 3.62. with me john cox. , pleasure to have you on. >> great to be with you, i followed you for years. i appreciate your commentary. john: you built an incredible business. i commend you for that. the gas tax itself. i just in mumbai in india, only way you compare that traffic to los angeles. 54 trillion dal are ou tril dola economy by taking that gas tax away, how do you replace that in caltrans voted one of most corrupt and wasteful agency in country. california spends $4 for every dollar texas spends on building a while o mile of road, concrete
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and a asphalt don't cost more in california than in texas. wet your wasteful transportation department spends mull up else o--multiples of what texas does. what i am governor i am not going to waste money. i squeeze a nickel because i have to, our politicians in california have been getting away with waste, and every time they come up short, they did to taxpayers and they stick their hand in their pocket, this say revolt, i have to tell i, gasoline here will go to almost $5 a gallon by end of the summer, people are hopping mad, they will change governors, they put a republican in the office in november. john: mr. cox, you are a business man, you spent 4 million of your own dollars for candidacy run so far that
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wonderful. they says a lot for who you are and your message. >> i didn't start with anything, i startedda bottom, my mom was a single mom, i built my own, but i am not leaving my kids rich, i want to leave them state that s funkal, peoplfunctional, people, they can afford water, house, electricity and a job. we have had 9,000 businesses leave this state in last 7 years. we can't keep doing this. john: you are second right now in primaries behind mr. newsom, can you win. >> absolutely. the people of that state, i'm talking de-- probably a lot of moderated democracies are tired of mismanagement. they are tired of driving on roads that are full of potholes and choked with traffic like you mentioned, tired are spending more money on education, and watch result go further down.
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they are tired of mismanagement of the forest, they have to be afraid of forest fires, democrats have mismanaged this state, john, and gavin news some, wants to double down, single pay are healthcare, and free college. the people of this state have been taxed too much, we have highest tax in country. that is going to change in november. john: john thank you -- for joining us, good luck to you in your race, much fun having you become as governor of california. >> thank you. john: world wrestling entertainment hosting a biggest pay-per-view event in saudi arabia, host of something to wrestle with, bruce abercrombie pritchard talksabout the breaki.
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pritchard. perhaps you can help me get elon musk on the show, he would not answer my twitter today. >> but i did, here i am. john: and wonderful to have you, two time global podcast, sports ill graded o"sportsillustrated." incredible. wwe goes to saudi arabia. saudi arabia has very draconian walls with minorities and women. wwe has been at forefront of women's revolution, but some have criticize wwe for going to a country with such dr draconian laws and standards and practices. >> i am not big on talking politics with entertainment, they should be separate. but when you look at saudi arabia has done, strides they have made. you have to grow from the
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outside in. i think that isin something they are attempting to do. if you are not part of the solution, how will you know suite change -- how will you institute change, they have made an effort to be a part of solution, to help, it will take baby steps. you know wwe had an event that took place in abu dhabi, two top female wrestlers competing. the crude crowd, entire live crs chanting. this is hope. in english. the fact that two females were competing for first time in the united arab emirates. that is history, it will take time, but i think it is the effort at least is being made to make in change. john: when you were with wwe. after advent of cable television you saw it take over the world.
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with sports entertainment. moving to places like saudi arabia and abu dhabi in meef mie east in particular india and china. is that part of growth strategy you had as far back as '90s? >> absolutely. wwe itself is a global company. it not just going in and holding events in china or for example or india. they are opening offices, training centers where they can recruit talent from the areas from the countries to truly be an international company. recently in saudi arabia they had try outs. they hired 4 potential talent to come in to the system to learn to be a part of the company. so, yes, they are making an effort. that is something that has been on the books. we've been doing step by step for many years. john: bruce, your podcast to me is one of the most interesting stories i heard, okay, in yearsn
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houston, texas where you were from. you were there and between jobs, you take a job as mortgage salesman, you end up with a number one podcast in the world, in sports tame today voted two time global podcast of the year doing what you do best, how in the world did this transition happen? from a guy behind scenes for so long, now with new hit show with wwe network, some else to wrestle with? >> i was persona non grata in mortgage company with my buddy conrad thompson, conrad was a huge wrestling fan would ask me questions about business. i would tell stories, one night he looks at me, he said this is say pot cast, i -- podcast, i laughed. i said that is never going to happen, i shared stories behind
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scenes, what you don't get to see what you have to do to make these things get on air. he talked me into it. here we go. they told me very beginning, we were on mlw radio network. podcast network, said if you can get 10,000 downloads you might make a little money, first show it was 61,000, we have i don't know from there, over a million a week we continue to grow to where we will have a big announcement about our own network. john: bruce, i called new to excuse me on show talk about this you are in orlando right now, you said you had togo to store to spend $6 lun o600 on at and tie. i think i are wearing shorts, you look fantastic. can you get elon musk on my show. >> you know, i'll try, maybe if i do a shout out on podcast, that way he can hear about it,
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give me a call, i'll call you. john: bruce thank you for coming on. great to see you. >> thank you, john. john: speaking of elon musk, tesla shares in green after hours, up less than percent following narrow than expected earnings beat. , lonmaking gains in model 3 prt company last month. we'll be right back. olatility mo to their retirement savings. that's because they have a shield annuity from brighthouse financial, which allows them to take advantage of growth opportunities in up markets, while maintaining a level of protection in down markets. so they can focus on new things like exotic snacks. talk with your advisor about shield annuities
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i had severe fatigue, went to a doctor. became diagnosed with hodgkin's lymphoma. i had to put my trust in somebody. we recommended chemotherapy, and then a stem cell transplant. when his disease progressed, i thought that he would be a good candidate for immune therapy to unleash his immune system against the cancer. i'm back to working hard. i've honestly have never felt this great. the evolution of cancer care is here. learn more at cancercenter.com appointments available now. john: it of a feeling i had, people were taught how to think and feel, we don't know how to feel for ourselves. people say feel free, they don't want us to. freedom and first of all doing something, that everyone tells you not to do. >> i just love trump, that is my boy. >> a class war happening right
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now. class wars one of reasons why trump won. because obama was so high class. and that he stopped speaked to middle and lower class. john: kanye west praising president trump saying class warfare is one of reason why he won. past or darrel scott is pitching a kanye summit, bringing black tists and athletes to washington for dialogu about race. kevin jackson is joining me, kanye west is say very polarizing figure. the republicans will have problems, historically, president's party has problem in midterms, they had problem with specifically black voters, is kanye west the right message but wrong messenger? >> not at all, republicans will buck all systems in november this year. they will hammer the democrats. i can tell you that from
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grassroots, millennials, young women, everyone are looking at donald trump they love what he is doing. but kanye west, he is giving people the real pull pulse of what is happening, a lot of people want to ignore that. if you want to say he is ipo wilpolarizing program, i disagr, maybe how people perceive him in hollywood, high is a gifted musician, i am not a big fan of his work. but everyone i talk to said he is is is amazing as a music. in terms of what he has done in speaking for trump, there are so many people that believe that kanye west says they hear him certainly in the black community. john: he is say brilliant
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business person and music is, but he says, president bush hates black people and interferes taylor swift. >> he wanted to give award to beyonce that was his professional opinion that taylor swift maybe was not as good. john: that was crazy, come on. he comes on stage. >> maybe it was crazy, but not polarizing. what he said about bush. you know probably not right thing to say. i know bush family pretty well. i certainly don't believe them to be anti-black, he did it based to katrina, i never forget look at mike myers looking at him, is she losing -- is he losing it. but more tea people, i am talkig leftist are deadly afraid of news leaking out that black people don't have to be
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monolithic, we have think for ourselves, and we did like donald trump, this idea that donald trump is racist is accident. ridiculous. john: kevin thank you so much for your time. >> my pleasure. john: new potentially harmful -- hitting classrooms student reportedly using e-cigarette that resembles, a usb flash drive, even in class, dr. siegel joining us on that, after this.
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john: new craze hitting classrooms, teachers hitting a jewel vapped, students using a e-cigarette that resembles a
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usb thumb drive. bringing in a team. dr. siegel, more than 8200 e-cig e-cigs. according to analysis of national poison data system. this problem seems like on outside looking in, this is kids sneaking stuff in school, they have been doing forever, how severe is this. >> huge, you just identify both problem, huge is liquid vapor sent by manufacturers that fda put out 13 letters of warning to, this looks like candy, juice, one case a lolly pop, they send you a real lolly pop with it, who is that targeted for? this is supposed to be illegal for anyone underage of 18. a lot of times the kids drink it. you know what happens, if you
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are under 2 and you have a half teaspoon of this stuff, you die. this causes their all right to stop beating, and seizures could and convulsion, and coma. huge, huge problem. that is one of the problem, other is what you were talking about with jewel. they bring this device to school, it looks like a usb drive, it is an intact e-cig, it has flavor, cotton candy or mint, and kids are being marketed to. john: impossible to judge intend without reading minds do you believe that pharmaceutical companies that is their intend to target kids. >> i can't read minds, if it looks like a duck, and talks like a duck. why do they send juice for, i don't think 18 or 21-year-olds are. 21-year-olds are drinking beer, if they marketed it as beer it
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would be for 21-year-old, but market as a lolly pop that is sinister and it has to be cut down. jewel part is for teens, they -- teen are all using computers. right, they use usb drives, the jewel is trying to get to teen, juice to younger kids that is why you saw 8,000 exposures underage of 6, terrible. john: targeted to convince somebody like a usbdrive to get away with something you are not supposed to do. >> you are not supposed to sell to underage of 18 that is right, this is misleading advertising. i agree with fda on this. john: dock thank you very much. >> time is short. >> thank you. john: we'll be right back. whileh commission investment products, fisher investments avoids them. some advisers have hidden and layered fees. fisher investments never does.
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and while some advisers are happy to earn commissions from you whether you do well or not, fisher investments fees are structured so we do better when you do better. maybe that's why most of our clients come from other money managers. ..
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john: be sure to tune in to
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"mornings with maria" tomorrow for her special interview with rudy giuliani. charles payne, my pal, is here with "making money." charles: we have fast-moving developments from washington to wall street. rudy giuliani setting parameters for a possible mueller interview. the stock market stumbled and the fed confused everybody to slow the economy just as blue collar workers are starting to get a piece of the action. want to begin with the new sheriff in town, president trump hailing mike pompeo as a patriot as his administration faces a number of key decisions on foreign policy issues including iran and syria.

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