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tv   Varney Company  FOX Business  January 28, 2013 9:20am-11:00am EST

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too low against the falcons is fined $10,500. now, come on, let's get real. imus: 18 after the hour here on the "imus in the morning" program. thanks, warner. we'll talk with bill hemmer, fox news, coming up. detroit, michigan, kid rock. ♪ fast on a rough road riding ♪ ♪ high through the mountains climbing ♪ ♪ twisting, turning, further from my home ♪ ♪ young hike a new moon rising ♪ ♪ fierce through the rain and lightning ♪ ♪ wandering out into this great unknown ♪ ♪ and i don't want no one to cry ♪ ♪ if i don't survive, i was born
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free ♪ ♪ i was born free ♪ ♪ i was born free ♪ ♪ born free ♪ ♪ imus in the morning ♪ >> good monday morning, everyone. mee please watch this. >> look at the shot, oh, my. he probably enjoyed the hug by lebron more than the money. longest shy hook in american airlines arena history. stuart: that one shot brought that guy $75,000, but he owes 22,000 to the feds and since he lives in high tax illinois, he owes even more to the state. maybe he should do a mickelson and move.
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yes, the tax refugee story will not go away. news this morning, that france's richest man is leaving and taking his wealth with him. arno is doing a depardu. t the wall street journal calculates tiger woods saved 100 million dollars over the years he moved to no tax florida. back to that one-shot $75,000 winner he lives in illinois which has just been downgraded. even though the state income tax has gone through the roof and chicago is concerning lifting, shifting its retiree health costs on to you, the federal taxpayer. can you say obama bailout? yes, we can. "varney & company" is about to begin. houting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor...
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>> we have for a long time on the program and now the all-time high for the dow is in sight. clear sight. the record is 14,163. we're 268 points away. though hitting the record is
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clearly going to be not going to happen today, even though caterpillar has disappointing profits and caterpillar is a dow stock. nonetheless, here is where the overall futures are going to be when he they open up. a gain of maybe 30 points for the dow industrials where we start trading this monday morning. getting close. and for weeks, we've been talking about apple. losing its cool to samsung, now, the wall street journal has caught on. check out the headline from the journal, came out over the weekend, has apple lost its cool to sam sunk? there's the quote. i've got two big stories for you coming from overseas that we're following for you this morning. i'm sorry, i wanted to go for-- to apple, i'm sorry, i'm confusing everybody here. apple, pre-market, where are we, nicole? >> closed at 439 and change, the wall street journal must be watching "varney & company," they're looking down again. stuart: we've got it. 437 roughly on apple at the open
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and now i do have the two big stories we're following for you, overseas stories, first off, israeli sources tell the times of london that an explosion last week has extensive damaged iran's photo nuclear facility and used to enrich uranium. the israeli government is looking at reports it trapped 200 workers inside the facility and massive structural damage. iran denies the report and says it's quote, western propaganda designed to influence upcoming nuclear negotiations. second, morsi declared a state of emergency and set a curfew for three provinces along the suez canal. violence erupted on saturday, sparked by a court conviction and death sentences for 21 people involved in the massive riot in a soccer stadium last year and left 74 dead. the guilty are from port saeed, morsi's government lost control of that city this weekend. we keep an eye on the price of
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oil when headlines like this break. we've got oil up this it morning, 96.56. here we go on oil. illinois, the worst credit rating of all 50 states. next, its biggest city could be getting a back door bailout from obamacare, and check out the big names that you know, all of them are in the news and we're watching them as the market opens, all of them. apple, toyota and that one on the end, cat. [ woman ] if you have the audacity to believe
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>> just a few seconds from the bell. we've got the number in the background today is durable goods orders up a strong 6.4%. take transportation out and a gain of 1.2%, not sure that's a really big boost to the market, but futures indicating a higher open, we're about to start trading, we should be seeing a gain for the dow, 20, 30 points in the very, very early going, there you have it. uptrend at the beginning there, just a little higher. remember, we're close now to 13-9. how about that? dow component caterpillar, we call this an economic indicator. it will be down today. slow growth in china, not a lot of optimism from the company for the rest of this year, so, nicole how bad? >> you know what? i'm going to go with you, i thought it was going to be down,
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too, and support your theory and why it might be higher. when you look at the initial report you were right on, talks about the city and talks about the products building up with inventory and revenue didn't seem like good news, the only piece that seems like good news, the accounting fraud issue with china coal mines that might not be an issue in 2013. they do not expect it will harm their 2013 profit so that may be a piece of good news. that may be taking away some uncertainty though it will actually affect in china, but, oh, yeah, a whole page of all kinds of stuff about the company, that seems to be the only piece of good news there. stuart: the stock is up, there's good news for you. nicole, thank you very much. hold on a second. i want you to step aside. general motors, toyota is the top selling auto maker, outsold gm. up 23%, record 9.75 million vehicles and nissan and honda posted record sales, not good
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enough for toyota shareholders though, that stock is down 1%. now, check where apple has opened. losing its cool to samsung, it it looks like it. losing its place as the world's most valuable company to exxonmobil. right now trading at 4.36. whoa. back to nicole, the digital revolution forcing barnes & noble to close one third of its stores, that's 200 stores. barnes & noble used to be the place you want to go to, drink a coffee and-- >> i still like to go to barnes & noble and read a book and get a coffee. i like things that are tangible as oppose today over the internet all the time. that's a personal preference. okay, so barnes & noble is up. get apple up here. bad news for one company, they'll save costs, do, closing a third of the stores over the neck decade and amazon, buy your books over the internet. so, we'll take a look at that.
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obviously, that's good news for them. but stocks are not cooperating with our story lines at all, i would just start over. >> i wouldn't say that, amazon is at $282 a share and that's within a few cents of the all time high and sold off a tiny few cents this morning, and bottom line, amazon's gains because of what's happening with the book market. >> that's what we're seeing, year to date. barnes & noble is down year to date and apple down year to date. stuart: and significance there, we're above 12-9 how about that. in our next hour, i will tell you why i will miss the barnes & noble stores. my defense of reading a physical book, that will be my take, 10:25 this morning. here is a question for you, if a driverless car gets into an accident, who is to blame? you can bet one thing, all-star trial lawyer mark lanier is no
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stranger to the suit. we have this run it again. >> i have your seven early movers and after each one, i will pause and ask mark if he's ever sued the company i'm talking about. have you sued them. >> sued them and represented them. >> sued gm? >> i've sued gm. >> don't tell me you've ever sued apple? conflict of interest. >> actually i've sued them. >> 115 on caterpillar, you sued them. >> 56 million dollar verdict against them year before last. >> go ahead. >> everybody has sued wal-mart for one thing or another. >> so, of the seven early movers, there you have it. mark lanier, we say he is the man you hate to love. he'll join us later this hour and stay with us for the entire ten o'clock eastern. you have been warned. we're talking about driverless cars and lawsuits, okay? in the next hour. this is not funny, the state of illinois took another hit. standard & poor's downgraded that debt rating, blaming the current pension crisis and the downgrade will cost taxpayers maybe as much as 95 million
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dollars because it will now cost illinois a lot more to borrow money than any other state just about. joining us now is ted, from the illinois policy institute. ted, welcome to the show again. do you think there are any national implications from this further downgrade of illinois? >> well, look, i think that the entire nation should be concerned about this downgrade and here is why. you know, illinois is an advanced case what the national economy will look like in a few years if we continue to follow president obama's agenda. president obama loves to beat up his predecessors and republicans for the state of the nation's economy and crisis the last few years, but in illinois we can't make such excuses. we've been following the big government model for decades and you can see where it's gotten us. stuart: and they can't meet the pensions, the fundamental problem with illinois, the pension what the argument is about. >> pension is the driver, but you look at what other states are doing, wisconsin passed collective bargaining reform, indiana and michigan have passed right to work laws and in
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illinois we're still beholden to the government employee unions that these politicians refuse to reform the 200 billion pension crisis we're under. stuart: ted. >> we've got to go for big fixes. stuart: right now i want to just concentrate on chicago for a second. >> okay. stuart: i'm told that the mayor, rahm emanuel, he's got a commission looking into the city's finances and that commission suggests that he they should shift their retiree health costs for the city of chicago, shift them onto the the backs of the federal taxpayer. i believe that is a proposal which may be coming in chicago. i say that that is a back door obama bailout of its former home town and former state. what do you say? >> stuart, i think you're right. two ways to look at this. on the one hand, chicago has no business paying for cadillac health care plans and retirees in the 50's. and no one in the private sector gets that kind of perk. on the other hand rahm emanuel
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is doing this because he know he can get away with it and dump a lot of people on obamacare and it's a back door bailout. stuart: and you don't need congressional approval on this, they don't have to have approval on the shifting of retiree health care costs and chicago could act and under obamacare, the federal guy picks up the tab. >> this fits in right with obama's model of having bigger and bigger government centric programs and it works for ram because he has huge problems in chicago and get rid of costs and if he can dump them on the federal government, he will. stuart: ted, as always, thanks for bringing us up-to-date on what's going on in your formerly great state. >> thank you, stuart. stuart: senator dianne feinstein outlined her gun control proposals. and among them banning products hike the assault welcomes. and a woman who makes a case for owning the gun.
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she makes her case at the top of the next hour. time is money, here we go. monday morning, here is what else we've got on the cord for you today. here is the question, did regulators bend the rules to accommodate the 787 boeing dreamliner, the question for the future of the most important new plane in a generation. we'll cover it. facebook's cheryl sandburg going off gender stereotypes, saying most women work two jobs while men work one. she says the higher a woman rises, the more the negative image. does she have a point. and want your money back? one football team is promises refunds on season tickets if the team finishes below 500. that's on tap today. seven million movers, seeks shareholder approval for the meeting in march and that stock is up 3 1/2%, they like that one. activist investor carl icahn increased stake in transocean,
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and a $4 per share dividend. it's up a buck. world's largest asset management company black rock, an 80 million dollar stake in twitter, val value. and amr are in final stages of negotiating a merger, here is a look at u.s. airways, stock at $15 bucks a share. wall street journal report for johnson & johnson looking to sell its feminine products business. that stock is dead flat. starbucks denied it it threatened to suspend in britain in control of tax affairs. no change for starbucks on that. disappointing outlook for joseph a bank perhaps because they give away so many suits, but the stock is down a whopping 14%. the dow holding on to a 6 point gain and holding at 13,900. key senators agree on a plan that would give 11 million illegal immigrants a path to citizenship, that is 11 million.
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can that plan legitimately be labeled a form of amnesty? and how will we pay for all of those extra people in medical care? the judge is next. (announcer) at scottrade, our clients trade and invest exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everi'm with scottrade. me. (announcer) scottrade. awarded five-stars from smartmoney magazine. all stations come over to mission a no go call. go. this is for real this time. we are on step seven point two one two. we have entered our two minute hold.
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for a full 60 days. use promo code: gethelp. plus get this document shredder free-- but only if you act right now. call the number on your screen now! >> and what to watch for here is the level of the dow industrials. 13,900 and that puts them within roughly 250 points the all-time record high. i want today check the price of oil for a second. and reached $96 a barrel and that should end any down side move in gas prices, shouldn't it? a bipartisan group of senators including majority leader harry reid will announce their plan for immigration reform today. under the new plan. 11 million immigrants will be eligible for citizenship. all rise, the judge is here. andrew napolitano is here. now, the right is probably going to say, this is amnesty by any other name. that's an interesting choice of
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words. where do you see this proposal? >> oh, boy, a complicated situation and i think this is an opportunity for the republican party to do the right thing to expand its base in an area towards human freedom and get on the other side of the immigration issue from the democrats, but i don't know that that would happen. there are too many interests in the republican party that are adverse to the concept of expanding the number of immigrants here and the principle of those interest, as you pointed out in your intro, the cost. federal government, now, we have obamacare, we have basically medicare for everybody that can't pay for it themselves. so if 11 million people suddenly became lawful, who is going to pay for their medical. stuart: that's the open question of the day and we don't have a-- >> my own view, as you know, is consistent with our colleagues in this building in the wall street journal, and that is that if stuart varney and company were a real company, let's say you were a small manufacturing
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company and you make widgets in northern new jersey, you should be be able to hire whoever you want. as long as they pay taxes, what difference does it matter where they were born. stuart: the entrance into the country. >> and the federal government should not stop them from coming in, the default position, you've got a job for them they should come. if you have your relatives in london and want to live with you at one of your palatial estate, the government-- >> total-- >> your rights come from it your humanity, doesn't matter where your mother was-- >> wait a second, judge, you're wait out there on this one. >> you asked me for my view and i'm telling you. stuart: i don't mind that. >> in the real world, i don't see that happening and in the real world, i think that republicans need to look at it this way, if they don't do the right thing on immigration, the president can use his powers under federal law which was given to other presidents, to
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allow these people to stay here lawfully and that will add 11 to 13 million new voters to the democratic rolls. the republicans need to resist that not by kicking these people out and preventing them from becoming citizens, but by welcoming them with open arms into a party where they'll feel more comfortable than the democrats. >> there's nothing unconstitutional about people who came here legally being legalized. nothing unconstitutional. >> the answer is yes, there's nothing unconstitutional about that. and also, as painful as this is for me to say, nothing unconstitutional about the president saying this class of people, they came when they were children. they didn't make the choice themselves. the act of coming was unlawful, but they were forced to do so because they were in the custody of their parents. i'm not going to prosecute them and i'm going to let them stay. the president because he has prosecut
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prosecutorial discretion, can do that and change the immigration laws from the white house not from the congress. stuart: that's correct, judge as you wills. >> a pleasure my friend. surely you aren't startled by anything i said. >> the open borders, may i say that's extreme position? >> next time we'll talk about it, you could have called it exotic. stuart: exotic? that's like if you're super rich and act crazy, you're not crazy, you are-- >> eccentric. a lot of wealthy brits are eccentric, and i'm sitting one. stuart: i know a lot of wealthy british that are idiots. get me out of it. the cold report will get me out of it, 1656, it's been around the mid level. and on the story of immigration, how many of you at home have heard of "monty python." for one country it may be required citizenship that you
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know about it. and charles payne and mark lanier is here. and this is a rare instance that i know more about pop culture than anybody else in this room. ♪
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♪ . [laughter] >> i start laughing as soon as i hear that music. this is one of the times where i know more about an element of pop culture than anyone here or you for that matter. a new citizenship test in britain will quiz foreigners who want to settle permanently in the u.k. subjects, british music, science, et cetera, et cetera. and comedy. they'll need to know about "monty python" to get full-time residence in britain. how about that, charles payne and mark lanier. you don't know what i'm talking about. you know "monty python." >> absolutely. let's not quibble over who killed who, the best line from the holy grail. >> charles you don't know--
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>> i would get arrested at the airport. i don't know any of this stuff. all over my head. stuart: i'm going to educate you and run a clip from the best scene ever. this is called the cheese shop. go. >> stillton. >> sorry. >> guda. >> no. >> norwegian yarl? >> no. >> liptar. >> no. >> white sylvan. >> no. >> danish. >> no. >> double. >> no. >>. [laughter] >> look, it goes on from there. okay? i think it's very, very funny. you perhaps do not and charles never cracked a smile throughout. never cracked a smile. you were laughing at me. >> can you imagine, citizenship test where you're required to know about that kind of humor to get in and settle permanently? >> i love the fact that they were changing the test. before you had to know how to get all of your free benefits in england and they're trying to stop that from being the test.
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>>; is that true >> yeah, yeah, how do you get free benefits for this, for that, and now it's time out. do you know anything about our country before you want to come here? >> and that's progress, that's real progress. admit it, payne, that's progress. >> that's progress. i've got to tell you, people who take the citizenship test in america typically know more about america than americans. >> what should we quiz foreigners about if they want to settle here, the cosby show, "i love lucy." forget about it. >> "varney & company." stuart: excellent, excellent. >> all they need to know. stuart: welcome back, lanier, by the way, coming up next, mark lanier will-- here is the question, will the driverless car get itself sued one way or the other? 'cause the driverless car is coming, you know, and this man is itching to sue somebody. here is another question, who is going to pay the health care for 11 million immigrants, who may become citizens under the the new immigration reform proposals? answers to your questions coming up. we'll speak to the woman who
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do not have. the cost. if we legalized the 11 billion illegals, what does it cost the health care system question mark there will be, at some point, 11 billion on medicare. some of the 11 million will go on medicaid. some will be shifted to subsidized obamacare. the past will have to be part of the debate. ♪ ♪ stuart: it is a monday morning. we start a new week in january which has been the best month in a long time for stocks. we are falling a little, but that is not much. nine points down on a 13,000 index is still an okay
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performance after a rally we have already had. let's introduce you to the company. the man you hate to love, but we really like this guy. charles payne is here. nicole petallides is on the floor of the new york stock exchange. charles, you have been pounding the markets. you have been urging people to get in. are you still there? charles: everyone jumping on the bandwagon. everyone is saying you need to be in. realistically, i think you need to be and the market. stuart: a lot of dead guys are coming out of bonds and going into stocks. charles: they are calling that the big rotation. there are some really big things going on. they are not just trading stock. stuart: so you are buying?
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charles: absolutely. build a portfolio. don't buy one stock and "roll the dice". some people piled one stock in that represent their investment in the market and if it goes down, oh, boy. there is not much room for diversification, but you keep building. i will save up the next five checks and buy something else. stuart: does our lawyer have any comment on the dow jones industrial average? >> my only comment would be that america has the best economy in the world and it is one that i would bank on all day long. stuart: and it is the best legal system. >> the very best. stuart: charles, be quiet. [ laughter ] stuart: we use caterpillar. that company reported this
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morning. not good news for caterpillar, but i think the stock is up. nicole: now, it is the number one performer on the dow jones industrial. revenue dipped 7%. they missed the analyst estimates. they had overload of inventory. however, the back half of 2013, traders anticipated growth for the economy here and abroad over in asia. stuart: have you ever sued caterpillar? >> i have taken them to trial before. yes. stuart: [ laughter ] >> and it was wonderful because it really helped them fix a problem that they had. stuart: downgrading the state of illinois that rating. cannot get out of it.
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it will now cost illinois a lot more money to borrow. can you say federal bailout? they want to dump pre-medicare retirees onto the states obamacare changes next year. it would cost the federal taxpayer an extra 44 million in that one year alone. once again, can you say federal bailout? charles: illinois, some sort of bailout at some point. it is back to the federal program. isn't that where obamacare will save money? that mysterious 5 billion. that whole thing is an absolute disaster. stuart: i am just talking about chicago. i am not talking about illinois. chicago wants to shift its retiree health cost to the
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taxpayer. that is what i call a backdoor bailout. congress has no say in this. charles: i do not know how they will successfully be able to do this. these changes are supposed to be run by states. obviously, we know this will happen in a whole lot of cities in this country. the large cities that make these large crazy promises i cannot get their way out of it. stuart: i brought up immigration at the top of the hour. they have a plan. it includes granting 11 million immigrants legal status. does that mean that they will all be covered under obamacare as well? i suspect that they will, mark. >> it is an economic debate. there are 11 the people here now that need medical care now. at least in texas, you will find
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them in the waiting room and the hospitals. we are paying for it anyway. stuart: at the moment, they are not eligible for medicare. >> that is true. stuart: if they are legalized, let's say 11 million of them are legalized, at some point in the future, you just added massive cost to the system. down the road, you are looking at a significant chunk of money. >> we are paying for their medical care right now anyway. the question is, how do we do it cheaper. you frame the debate. i do not know the answer. stuart: i want to see a dollar number. i want to see a cost number. the idea that you will come in and pay back taxes, that will be a huge problem.
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people who do not have money, you know, if you haven't pay taxes, you are not saving it for a rainy day. stuart: i want a dollar number and we have not gotten it yet. digital books are causing barnes & noble to close its doors in some places. nicole: digital books are certainly the wave of the current times, the future. this may be good for amazon, ultimately. borders liquidated last year. actually, 2011 is when they did the liquidation. now, they have become subject of the very same problem. the barnes & noble that is right next door here is a pharmacy. you are seeing that it is becoming out of favor. stuart: mark, have you ever sued barnes & noble?
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>> no, i have not. nicole: how do you remember how companies you have sued? >> we keep a conflict list. many of those companies come to me and asked me to represent them. nicole: how any companies? >> i have not sued amazon, either. what are you going to sue them for? sending you the wrong book? stuart: i have another company. we will talk about this in a minute. google. have you sue them we met yes. stuart: they are working on their new driverless cars. lawyers are working on liability issues. >> it is a thorny mess. thankfully, we have lawyers who will be there to help navigate this. we do not want the state
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government making this decision. the law is very simple. did you do what a reasonably prudent company or person would do? if you did, you are okay. if you did not, you are not okay. stuart: the owner of the car for the maker? >> all of them. if the computer goes on the fritz and the car in the middle of 5:00 o'clock traffic start smashing into pedestrians, then absolutely you would have a claim against the computer manufacturer. stuart: okay. in this instance that mark, i think that is entirely legitimate. >> the lawyers will be there to make sure they are safe or not put them on the road until they are. stuart: one third of what you went plus expenses. a $10 million settlement puts
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5 million in your pocket. >> no. stuart: special witnesses on your side of the fence. >> all of the expenses that we incur that the other side anchors. i tell you this, nobody i represent will get 50% representation. charles: let's say i am in a really serious car accident. i give you 30% for representing me, 30% to the hospital and if i win anything, 30% to the government. i am in a wheelchair with nothing. stuart: the government will not get anything. >> and i will get the hospital to cut your medical bills. stuart: get this. and i tell you court rules that there is a link between cell phones and cancer even though pretty much every scientist disagrees with that. later during this hour, mark will tell us how this could open up a flood of legal challenges.
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banning assault weapons like that they are 15. the next guest disagrees. pepper spray, mace or a five round handheld will not cut it anymore when it comes to women protecting themselves. she wanted they are 15 assault rifle with a 30 round magazine to defend herself. i would think we have the attention of our audience. 99% do not use them for assault. these guns only account for .6% of the murders that happened in this country. why do we keep calling them assault rifles? stuart: you want women to go out and buy an aar 15? >> i have a 30 round magazine.
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these 30 round magazines eventually assure as an insurance. i do not want to have to take the time to reload to get the job done. stuart: well -- you have a smile on her face and you put a smile on my face. this is a real escalation. we have a lawyer here. i think he has a point to make. >> i am a lawyer who also has four daughters. when it you rather have a pump shotgun so that when the intruder is in their you go -- they hear the gun and they go running. they will not see your gun unless you are in there i range and they can see you. if they have a gun, i really do not want you or any of my daughters standing there saying i have 30 round to your six.
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could you look and see what i have in here and hope that they see your gun. >> i agree. just in case i have to shoot it, i want to make sure that i can shoot it accurately. i have shot shotguns before and i cannot shoot it accurately. there are two new york students this past week that nearly simply -- the intruders did take a look at that gun and ran away from them. stuart: i think, may i say, i think you have reached for a headline. you know how to get the headline. all women should own ar-15 with 30 rounds of fire. >> definitely. [ laughter ] stuart: you are using this as a way to save women should own guns. women should defend themselves. >> i own this gun.
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i bought it for self-defense. women should definitely take a look at these guns if they want to use them for self-defense. i would highly recommend them. you can take a look at any of my target sheets. they are far more accurate with this guy than any other gun. stuart: thank you very much indeed. i think you both major points. equally affective. if you want to scare someone with a sound, it is a chainsaw. [ laughter ] somebody comes to the door, you do not know who it is, you can fry in them. off goes the chainsaw. charles: that is why you have not met any of your daughters boyfriends. stuart: all right, everybody. let's move on. we cannot wait to get a cell phone and cancer story.
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we will be talking about that coming up. [ woman ] if you have the audacity to believe your financial advisor should focus on your long-term goals, not their short-term agenda. [ male announcer ] join the nearly 7 million investors who think like you do. face time and think time make a difference. at edward jones, it's how we make sense of investing.
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♪ stuart: from 140 characters to $9 billion. twitter employers sold $80 million worth of their shares. the world's largest asset company blackrock just gave a net worth of nearly $9 billion. a new report of active users
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shows that twitter comes in as the fourth largest social networking software facebook, google plus and you too. check the share price of facebook this morning. we are at $32 per share. it is up. one bank upgrading best buy. caterpillar reported a disappointing profit after the customers sold off existing inventories. the stock price is up $1.96. back in a minute. ♪ [ wind howls ]
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[ dog barks ] ♪ ♪ [ male announcer ] something powerful is coming. ♪ see it on february 3rd. ♪
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♪ stuart: how do you stop the post office from hemorrhaging billions of dollars a year? by raising the price of stamps, of course. forty-six cents. they lose about 5 billion every quarter. a penny increase only put a band-aid on those losses. they say there is a link between cell phones and brain cancer. scientists claim there is not a link. what happens if someone sues a cell phone company, even though there is no scientific evidence that it causes brain cancer? >> you will get bounced out of court. we looked seriously at taking some of these cases. a horrible brain cancer occurs in the area where you hold a
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cell phone. the cell phone admits radiation. all of the signs were there that this would be a real case. me and a group of probably 19 top law firms in the country put together something. frankly, stuart, the science does not support the link, yet. stuart: in italy, they say they do not care whether signed supports the link. they want to make good somebody with brain cancer. >> our courts have what the judges called the gatekeeper for science. you do not let voodoo science into american court. we have to show legitimate studies that show to a 95% confidence interval that there is at least twice the risk of developing brain cancer by using a cell phone as of not. charles: studies have been funded by cell phone companies. >> true. charles: that is kind of
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interesting. >> they are what they are. it does not matter. you still have to have a study that proves it. if we think we can prove it with a different study not run by the cell phone company, then we need to do our own study. stuart: is it really a signed gatekeeper for the judicial system? >> it is the judges responsibility. it is an opinion from the u.s. supreme court. it came out over all of the dow chemical pharmaceutical cases. stuart: barnes & noble closing hundreds of stores. my take on books and that is up next. ♪ this is $100,000.
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we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally. ally bank. your money needs an ally.
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stuart: if they do not do the right thing on immigration, the president can use his powers under federal law which has been given to other presidents. to about these people to stay here lawfully and that will add
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11 to 13 million new voters to the democratic roles. stuart: that was judged napolitano and our last hour. >> they say the fiscal 20123 # numbers, net income is roughly
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20% below the prior year. that's terrible. the ceo saying they were disappointed, and here's the blame part. they are saying they tried to have sales for the winter time, but it was unseasonably warm. stuart: the market is not buying that. it's down very, very sharply. nicole, thank you very much indeed. now, the woman who essentially runs facebook says that the harder women work, the less they are liked in the workplace blasting gender stereotypes in the developed world. marsha blackburn joining us who wrote a book on that issue discussing sheryl sandberg and women in the workplace and all of that at 10:35 this morning. i am an avid reader. i always have a book to go at whenever i have down time, and i read actual books. i got started early, and i can't
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switch to the kindle. i have one, but my preference is for a real, turn the page book. here's my take on barnes barnes& noble. they'll close 20 stores a year for the next decade. one-third of the stores will go away. i'll miss them. the days of the megabookstores really are ending. the small neighborhood store is long gone. i miss them too. my local, used to have a table right as you came in the doors with the staff's picks. they knew the customers and what they would like and laid it out for you. it was not a chore, but i looked forward to it, flat out, i did. you cannot fight economic reality. the sale of actual books, the print version dropped 9% last year. barnes & noble store revenue dropped 11%. the down loaded e-book is the new guy on the block and winning. i'm not fighting it, but i'm not going to switch.
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i welcome advances in the market place, and e-book is an advance. if you want to take financial advantage, amazon stock highs up all week and today. technology changed my world whether i like it or not, but i have a choice. bookstores will not totally disappear. print books will be available, certainly in my lifetime, but just as i miss the newspaper spreading the world in front of me, so i miss the nearby bookstore spreading choices in front of me as i walk in the door. i'll miss them.
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for a full 60 days. use promo code: gethelp. plus get this document shredder free-- but only if you act right now. call the number on your screen now! stuart: if you missed that shot that brought a man $75,000. he throws the ball from the half way line and goes in. he gets $7 # 5,000. listen to this. he owes $22,000 in federal taxes, and lee -- he lives in high tax illinois so he owes more to the state with high income taxes. who else who is famous lived in illinois? that's scott, and he joins us now from chicago. your state has just been downgraded, illinois, and the city of chicago is going to get bailed out with its health problems by the federal
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government, and you have high taxes. can i count on you to move, scott? >> well, that depends on where this big building goes. if there's a place where we don't have the issues, the cme would move, and i would move with it. we have a history of making bad business decisions in illinois. we sold the parking meter rights, and weave given away cash flows for 20 years on out. this is no surprise, and it's the worst in the union now, and it's not better because we're on a negative watch as well again. where we go from here is we have to see a massive exodus of people like myself or anybody get behind this. we're in trouble. are you or anyone else in illinois going to do a mike dirk mickelson or sarkozy in do you see a lot of tax refugees pouring out of illinois, you
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think? >> all i hear now is rhetoric and chatter. there are a lot of folks considering the move, you know, but, still, we have a housing market that doesn't let guys get underneath the houses easily yet in illinois. there are a lot of things that really prohibit you from moving that quickly, but given the chance to move, i know a lot of folks that would absolutely. if you don't have to go that far, indiana, iowa, or wisconsin to get your place into an aaa rating, and it's communeble to work, especially wisconsin and indiana. we're not far from places to live, but have to get up to date here. stuart: keep us up to date. >> i will, i will. stuart: the woman who runs facebook says as women become more successful, they are less liked. on top of that, it's the woman who has two jobs, work and home. we have a successful woman sitting with us here, congresswoman marsha blackburn, republican from tennessee.
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i called you "congresswoman," you don't like that, do you? >> it doesn't matter to me. i'm not into titles. you can lead and be effective without a title, and so it doesn't matter, but congressman is grammatically correct because it's not a gender specific job. stuart: i'll never call you congresswoman again. >> ha-ha, it doesn't matter. stuart: the more successful a woman becomes, the more negative is her stereotype and image in the workplace. what do you think? >> yeah, well, you know, there's a lot of truth to that, and throughout my career, stuart, i had times where i had to push forward a little, and then maybe had to step back a little bit. you watch that tempo. you watch the tone, but sometimes people will say, oh, you know, aggressiveness is not good in women, but we like aggressiveness in men. there is, still, today, i think she's right. there's a little bit of that. i think, also, you know, she's right when she talks about women
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working two jobs. women are the great multitaskers because we are running our home. we are working families, and an issue of the day, health care, women make 80% of all the health care decisions. not only for their family and their spouses, but their extended family many times. stuart: the new feminist blackburn coming? >> no, no. i wrote about women in leadership for years, decades actually. i'm a huge proponent of getting women credentialed and out there. when you look at women on capitol hill, my republican female colleagues are absolutely fantastic. stuart: talk aggressions a second. are you aggressive when it comes to the sequester, the immediate spending cuts we have on march 1st? paul ryan says it's going to happen. >> yes, sir, it's going to happen. stuart: it's going to happen? >> yes, sir, it's going to happen.
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every year i'm in congress, i run bills cutting for 1%, 2%, and 5% cuts. in tennessee, i ran them, across the board cuts. they work. it's the right way to go about getting out of control -- stuart: military cuts coming? >> i wish they got the same as everybody else and not doubled up on. i have heart burn with that. discretionary spending, they have porked up the spending so much, you have to do across the board cuts. stuart: you're in favor? march 1st, you want this? >> across the board cuts, absolutely. they have to take place. >> that's an interesting turning of the tables. in fact, probably the greatest stroke of genius from the republicans in awhile because it was thought that this is something they would fight tooth and nail for, and john boehner noticed it was the obama administration that brought it up so do you guys feel that maybe this, you know, i don't want it's a ploy, but maybe the best bargaining chip, ironically
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enough, it's something that the republicans hold dear to stuart's point. >> back to the budget control act of august 2011, the 1.2 trillion in cuts, that was the agreement, and then, of course, you're right, the baltimore add obama administrationmented to fore stall that. they have to take place march 1st. that's the agreement made. we spend too much money. we do not have a revenue problem. stuart: $100 billion cut, march first, military and health spending, cut it, and you say do it. all right. congressman, republican, tennessee, thank you very much for joining us. >> thank you. stuart: buy season tickets to the favorite team, and if the team sinks or stinking, you get some of your money back. maybe the new york gelts should take note. the owner of the team offering that discount. there is a team owner who is offering discount to season
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stuart: new numbers on pending home sales, down over 4 #% last month, not much reaction, down 26. jos a. bank, disappointed outlook for this year. expect a big drop in income. they blame the weather, hurricane sandy, as well as the presidential election, the
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fiscal cliff, you name it, all reasons to go down, and they are are down. positive news from the pharmaceuticals, and the late stage trial of the kidney disease drug, and stock price up 39%, positive results, up it goes. u.s. airways, american airlines, final stages of negotiating a merger. final prices to be decided. shares of u.s. airways unchanged. how would you like to get a refund if your team had a losing season? one team proposes that, and the owner of the team is next.
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stuart: i'm calling this a great deal for sports fan. the arena football league predators offering a new promotion. the more the team loses, the bigger your refund on season tickets. joining us, the managing owner of the orlando predators. i got to make sure i have this right. if the team, the orlando predators, have a less than 500 season, worse than 500, you start refunding the worse they are, the bigger refund for the season ticketholders, have i got that right? >> that is correct. we have an 18-game season, and we've guaranteed a win threshold of ten, making us the first professional team to guarantee a winning season. stuart: you are taking the risk away from the sports fans, you take the risk if the team loses, you lose, that's it; right? >> that is correct. as consumers, you know, the sports industry is one of those
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last industries that really do not have to guarantee a certain amount of service in quality to their fans, and i believe that that should change, and i believe that this has the opportunity to revolutionize the way sports lookings at business. stuart: okay, hold on a second. i have a trial lawyer next to me, and at the break, he lives in texas, if he went -- if it was a similar deal offered to his local sports teams, the fans would be cheering for the other team so that they could get a refund, suspect that right? >> especially if it's dicey. you have a last game on the line. if you win, i owe you money. if you lose the game, you owe me money. could have a boomerang effect where i come from. >> i don't believe that will happen. the value of sports is winning. you don't want to take a family to a game and they lose all the games. that's not fun. you know, like it or not, in our
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business, winning equates to value, and we have to change the way we do business as an industry. start: charles? >> i'm thinking heaven can wait, but you might be nervous if your record is 4-and-14 again, you might get in the game yourself, huh? >> you know what? that's tbhot the case. that's where the misconception comes in. it's obviously a great marketing idea, but when you look at the financials bind it, the cfos of sports teams should be pushing for this. would you rather have a team that loses 30%-35% of the ticketholders each year because they lose, or rather retain 1 00% or 95% of the season ticketholders even if you give them a 30% purchase credit over the course of two or three years. stuart: i get mr. bush's point. i mean, you know, if you lose x
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number of season ticketholders anyway, incentivize them with money back deals. >> most big time sports in cities have years and years of backlog of season ticket owners, but the thing is for you though is this is nuts. are you going to charge more? >> no, we're not, that's the misconception. there's the packers and bears that have a season ticket holding of a waiting list, but 80% of sports teams don't have that. only 80% of people renew every year in their season tickets, and losing teams, it's 65% to 70%. when you do the math and every financial model put together, you bring in more revenue over a two or three year period, even if you have sustained losing seasons. there's an anomaly and sports exec ties, over the wow factor
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of what we do, the math makes sense. stuart: yeah, very, very interesting. thank you very much for joining us. let us know how the season is going. we'd like to see you again. >> i appreciate it, thank you. stuart: did you suit in professional sports? >> i sued college sports programs though. stuart: any reason why? >> they were not testing african-american athletes for sickle cell trait, and as a result, several players died, and they should have had the testing, and we got it instituted. stuart: how much did you win? >> no money from it at all. we did that because it was the right thing to do. stuart: on occasion, a decent fellow. >> once in awhile. stuart: new credit card rules in effect today. costs you more to swipe? >> that's right. be careful when and where you swipe. the litigation, class action lawsuits, today, many states, mother chapters -- merchants have the right to charge a swipe fee at the
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counter between 1.5% and 4%. keep an eye out. there has to be a sign up saying they charge you 3% for the purchase. it has to be on your receipt. wheel and deal, ask for discounts, shop around. ten states are exempt. i did this this morning, and it's on facebook to learn more. all the credit cards companies down. stuart: thank you, visa, bank of america, mastercard, have you sued any of them? >> about all of them. stuart: did you win? >> yeah, most of the cases settled. stuart: sure. pay up front. >> no, you get them to fix what's wrong. i mean, we -- stuart, i've got to convince you on this. don't let the government run everything. let juries of common people make decisions. it always works out. stuart: i'm not sure the judicial system is the best regulatory system for the economy, that's all. >> it's not. it's the jury that regulates. stuart: you prime that jury big
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time. did regulators bend the rules for boeing? big question for the dreamliner. i'm sure you sued them, but speaking to a former regulator in a moment.
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stuart: headaches continue for boeing. it was warned years in advance of potential fires in its batteries on the dreamliner. bringing in from los angeles, oliver mcgehee. oliver, simple question here. in your opinion, did regulators bend the rules for boeing? >> no, they did not, stuart, and good morning. the north star for the department of transportation and faa is safety. safety is tied with economic competitiveness, and when you combine those two larger goals, economic competitiveness for boeing, combined with the safety mission for faa and dot, the combination is advanced technology. what we learned in -- stuart: but we got a report that ten years ago, there was some grave concern -- real concern about lithium ion batteries and fires that could be caused
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because of the use of these things. that was a warning ten years ago. now we got the problem. i mean, you don't suspect that maybe the little bending at some point, not at all? >> very, very difficult to do that when you are doing megascaled engineering operations and design. what we're talking about in the lithium battery, stuart, is basically a power system for the automobile -- auxillary, but when temperatures rises, that adds to to it, and y are trying to solve that puzzle. stuart: appreciate you being with us. sorry to end it quickly, but i wanted your point of view, and you say they did not bend the rules. appreciate your input. thank you very much. >> thank you, you're welcome. stuart: have you sued boeing? >> oh, yes, yes, yes, yes. stuart: and won, i take it? inevitably.
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>> yes. stuart: you have a tessler electric cars? >> i'm not in the business of advertising on your tv show, but best car i've driven. i'm a greeny. 300 mile range. stuart: how much? >> less than a hundred. got a $7500 tax credit. stuart: regardless of income? >> buy one. >> is that a gun rack? that's op top of it. >> my gun rack's on the trunk. i love it. best car i've driven. 0-60 in 4.6 seconds. it's not a volt. made in california, we're helping the guys out there some. stuart: the formally golden state. the highlight reel is next. twins. i didn't see them coming.
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