. >> reporter: economist tyler cowen thinks americans, from the millennials to the baby boomers, have lost their spark. >> every available measure we have of productivity in this country shows that innovation is slowing down. and furthermore, real wages show the same thing. so, there's people who sell to global markets and become very rich; they're doing great. but the average american-- and you see this in our politics-- does not feel they are so much better off and do not really expect their children will be much better off than they are. >> reporter: in his new book, "the complacent class: the self- defeating quest for the american dream," cowen argues the u.s., founded on risk and built on innovation, has lost the dynamism that set it apart from the rest of the world. >> what really drove this book was a number of trips to china that i did, and i thought, "well, today, china is really our peer and rival, so let's write about america from the point of view of china. how does all this look to the chinese?" and indeed, large numbers of chinese people i spoke to who had visited this c

claudia cowen has more from bodega bay. >> reporter: forests of algae are in crisis. >> we have lost kelp forest. >> reporter: warmer ocean waters have nutrients the kelp need to survive and there has been an explosion of purple sea urchins and an alarming die off of sea stars which eat the urchins. it is is a perfect storm of environmental impact. >> once you have one thing go out of whack, everything can really go out of whack. that is what we are seeing now. >> reporter: scientists take to the water to take stock of the urchin barrens. they are assessing the health of the prized abalone. the california abalone fishery is worth $44 million a year, but maybe not for much longer. >> we are seeing this in the adults and the juveniles not geting the food that they need like this one. >> reporter: rock fish and other valuable fisheries are also suffering. scientists say if the urchins are not knocked back naturally by a predator or a disease, human intervention may be needed. >> they could include going out an pulling urchin gins in specific areas. so that we can support the regrowth in

lee cowen has both sides of the story. >> reporter: it was like any evening. mt.er hovered in the distance, and along aurora avenue, business was booming. every city has its underbelly, where sex is bought and sold. arrests are being made, but what might surprise you is just who's being arrested. it's not those selling sex, women and young girls, although to be clear, men are prostitutes, too. instead, seattle has shifted their focus to arresting the customers, those buying the sex. >> we're not trying to harass women who are caught up in the trade. we're not trying to add to their burdens, we're actually trying to help. >> reporter: six years ago, seattle city attorney, pete holmes adopted what's called the nordic law, a strategy pioneered in sweden that aims to reduce sex trafficking by cutting off demand. >> what we have been doing historically and what most of the country still continues to do is to further victimize women that are caught up in the life. >> reporter: according to the international labor organization, human trafficking is a $32 billion a year i

it was started by actress julianne moore and producer cowen.at it should be named for supreme court justice thurgood marshall. >> where we want an opening reasonable discussion of the issue. >> stephen is an ad hoc committee member that believes everyone should be welcome at the meeting, including the naacp. >> we don't think it's appropriate to have a school in 2017 who fought to defend slavery. >> it's best for school to change the name. it will make everyone feel welcomed. >> if you change the name just because some people don't like it that is erasing history just because of people's opinions. jeff: it starts at 6:30 tonight at j.e.b. stuart high school. we got word late today that a so-called keeping the name meeting will be happening here on tuesday night at the school. the issue will be voted on by the fairfax county public school board next month. jeff goldberg, abc7 news. alison: anger in the streets of tulsa, oklahoma, overnight after a white police officer was acquitted in the shooting death of an unarmed black man. officer betty she

. >> mourk cowen just retired in january as california's department of water resources he says it could cost $3 billion more to fix the problematic levies. >> the threat of levy catastrophe is significant. >> this is literalry jeopardizing our drinking water in san francisco and l.a. if we don't do anything. >> that's probably one of the facts that -- well i'd love more californians to understand. it's not just the local area at risk. santa clara, valley water district the silicon valley gets about 40% of the water from the delta. >> you never know when it's going to happen. >> this woman who lives in antioch says the levy collapse ruining her home is always on her mind. but it's the possibility of a future levy collapse that really haunts her. >> because it affects everybody. once the levy breaks, i mean it's not just the people -- so few live on the islands now. it affects everybody. >> one solution to this, put the drinking water pipes underground. in fact san francisco water utility has done that burr st burying no of the miept. governor jerry brown wands to built similar pipes or t

lee cowen has the story. >> ladies and gentlemen! children of all ages!st show on earth! ♪ >> reporter: it is a pretty bold claim. the greatest show on earth. the ringling brothers anrnd baum and bailey had every reason to brag. ♪ there was a time when there really was nothing else like it. ringling had a dizzying array of performers risking life and limb alongside a menagerie of exotic animals from far away lands. ♪ >> reporter: after 146 years, all the thrills are still there. but the wonder seems to have faded. >> ladies and gentlemen! >> reporter: ringling's ringmaster, jonathan lee iverson laments that today when kids go looking for the greatest show on earth, many go looking for it on their smartphones instead. >> more and more unfortunately, we're becoming a society that really doesn't embrace wonder anymore. >> are you ready my friends? >> wonder that we offer you can't find it on facebook. you can't find it on youtube. you haveen you have to be there, you have to be present, and it takes relating to others, not like yourself. that's how this has

ariel cowen. thank you for being with us. >> my pleasure.ed as largest single arms deal in american history. why now? why the saudis? >> this is vi vintage, donald trump, he thinks big. think about the trip he is on visiting key countries of 3 abrahamic religions, saudi arabia, jeer u jerusalem and tht vatican, he is building a huge coalition. st looks like saudi arabia is eagerly jumping on, they will buy a lot of american arms, in fact not just 100 billion this year, it is additional, 350 billion over 10 years. together almost half a trillion dollars, a lot of jobs, jobs, jobs, trump is bringing bacon back home, looks good, drives attention away from russian investigation. but creating choppy waters ahead for the president, many are calling this troubling. one called it -- saudi arabia a hostile country, and saying that jewish state needs to maintain a military ej. edge. they have a loc a long term thrf god forbid saudi arabia ever follows the paths of iran and the regime turns. and a anti-american regime falls into power. >> this wouldn't

. >> and smaller cap names, immunomedics, a hot stock, it's doubled this year, but cowen not detouredere. compelling phase two candidate for immu 32 to treat breast kpaer cancer. if approved, a 2019 launch, could be the standard therapy. small cap name, doubled this year. got $800 million market cap. bullish on immu. >> i think we have to do a road trip to red robin. there's a lot nearby. order no tomatoetomatoes. >> they are delicious. >> awful. >> i hope michelle is listening. >> she loves tomatoes. let's do it. power lunch from a restaurant. shocking concept. the russ,000 under performing the s&p 500 by 6% this year. talk about what the trading nation team, ii trader, aaron, okay, small caps under performing. we get it. does it matter for the macro market? >> you know, overall, it is -- it's what we expect, and it's -- if does matter longer term because we do want to see that growth coming from the u.s. economy. that's really going to -- where it's going to help. there are quite a few head winds we're facing. one, overvalued because they were runup against the campaign promises of

bring in john blackwood, senior analyst as cowen.ve you here. >> thanks for having me. >> does this issue with video and them having to hire people to monitor what's being posted, does this play into your analysis of facebook at all? >> no. it doesn't impact this -- the earnings they'll post in a couple hours. or probably this year. so for this quarter we're looking for 46% year over year ad revenue growth versus 53% in the fourth quarter. and you know, i actually think they can beat our number and probably post a high 40, low 50 ad revenue growth number driven by core facebook and instagram. mobile is a key driver for ad revenue growth for the company. 85% of ad revenue. looking for a 9% cue over cue decline versus four 4q. last year, 5%. if they're going to beat they'll beat on mobile and a leader in global mobile advertising. >> got it. you don't worry about the issue with hiring is that the 3,000 people isn't that much in terms of what costs will be? do you extrapolate that out in terms of their ability to manage what is on the p

cowen is saying if they get approval, could be $1.2 billion in annual sales in the u.s. and the eu.morning voted 12-4 in favor of support of this drug. so that's very positive. the fda doesn't have to listen to that advice. they are expected to decide on whether to approve puma's drug in this indication by july. a lot more catalyst to come for puma but a volatile day, guys. >> is this a crowded race? will others be trying to catch up with what puma is doing? >> that's a great question. we will be looking at the cancer conference that starts in june where roche will have data that could affect a similar patient population. it could have big implications for puma as well, kelly. >> a company with one drug, they're hanging their hat on that and stock up 100%. classic biotech volatility right here, meg. >> reporter: yeah, absolutely. the whole thesis around this company is potentially if this drug is successful they could be acquired. the ceo has done this before. his last company was called cougar biotech, and notice the trend in the name of the companies there. he turned that company

cowen has a view you get to october, you start looking a account cr, the budget, the debt ceiling increasequire 60 votes in the senate. and that's when the democrats would use leverage points to demand things like a special prosecutor or in their view perhaps trigger a government shutdown. does that seem not unlikely or in the realm of the possible? >> yeah, it throws a monkey wrench into that process because the director confirmation process is going to take some time, energy and investigation and the investigations of course are going to take time and attention. there's a spotlight on them and given the circumstances, the allegations or what's in the air right now about this is an attempt to sweep things under the rug, i think the other guest is correct. i think this is just going to intensify efforts across the board. but i think it's going to be very critical who steps in as acting director. it's not going to be any andy mccabe. i think they'll be in that role for a pretty good while. >> let's talk about who we'll hear from today. some key witnesses, big power players. mccabe you menti

for more, let's bring in oliver chen from cowen and the president of sw retail advisers.was a beat better than feared but we're still talking about negative same-store sales. traffic. and declining overall revenues. how deeptss was this -- decent was this quarter for target? >> thanks for having me, sara. good morning. so the comps were down 1.3. that's beat relative to negative 3 in what we were looking for, better than feared and the gross margins were better. negative 40 basis points, we were looking for a deeper cut in gross margins but you're right. there are many challenges ahead. most critically store traffic. a few key points on target. firstly, that expect more pay less line we're also familiar with customers are not really realizing target has such great value. so they're not coming to the stores. secondly, every day essentials such as getting your essential food item, household items, customers are skipping the trip. thirdly, supply chain. it's a lot about improving the supply chaining, improving customer satisfaction. those are big topics and we can't deny the