dan lundgren has represented this region since 2005. he represented congress in 1980's and served eight years as attorney general. the democrat has never held political office. he is a physician who served as chief medical officer and is a professor at uc-davis. these two squared off in 2010. there are five people on the ballots. this year there are only two. this is the most closely watched in the nation. >> we are joined by dan lundgren. thanks for being with us today. i want to introduce my colleagues from the other news organization sponsoring the debate. we are also joined by a small studio audience. i am asking you folks if you will keep your reaction to yourselves. you are welcome to offer a clause in the end, but otherwise, it is all about the guys -- to offer applause at the end, but otherwise it is all about the candidates. each candidate will have a closing statement at the end of the debate. the candidates will have 90 seconds to answer questions. opponents will have 60 seconds for rebuttal. we will try to keep to the time,

republican congressmen dan lundgren and dr. barron. >> coverage of live political debates continue with candidates for senate in nevada. dean heller faces shelley berkeley consent senator heller was appointed by the governor after the resignation of senator john hansen. this raises considered a tossup. another is the wisconsin senate race. tommy thompson and tammy baldwin are competing for the seat of retiring senator herb kohl. >> to foster work and enterprise in the middle east and in other developing countries, i will initiate something i will call prosperity pacts, working with the private sector. the program will identify the barriers to investment and trade and entrepreneurship and in developing nations. developing nations will receive u.s. assistance packages focused on developing the institutions of liberty, the rule of law and property rights. >> we believe that freedom and self-determination are not unique to one culture. these are not simply the american values or western values. these are universal values. and even

terry lundgren and the team have continued to hit the ball out of the park.ve been beneficiary of that with our tommy hilfiger and calvin klein. they are two of the largest brands within their complex. we are benefitting by their great execution. i would like the to think we're a real significant part of their success as well. >> going forward, there were two items in the conference call that were confusing to me. you're worried about foreign exchange head winds. the dollar has been getting weaker here. the second is that i have been waiting for the raw costs to go down. you are talking about maybe a 5 to 7% break in raw costs. couldn't it be more? cotton is up huge. >> raw material costs are down more than that. the 5 to 6% is overall finished goods including labor. >> cotton isn't everything. >> raw materials aren't everything. labor is a bigger component. clearly the benefit we will see in this year's thursday and fourth quarter is significant. we are looking for a gross margin improvement of somewhere in the 200 plus basis point range, third, fourth quart