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tv   Varney Company  FOX Business  May 2, 2014 11:00am-1:01pm EDT

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interview. plus the pampered chef ceo. local level marketing. we are talking to her exclusively. the kids and war and exclusively. sandra, back to you live from omaha. to the opening bell. you can see me on the new show outnumbered at 10:00 p.m. eastern time. it is now stuart varney, "varney and company" begins right now. stuart: good morning, everyone. that line looks good. no jobs, lower jobless rate. dig deeper and is not so pretty. welcome to the new normal. we welcome fire rescue guy john sadler who is in new york with a new investment. sandy thomas is here too, the grocery store owner whose bank account was emptied by the irs. no warning, no charge. we will deal with obamacare.
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very few of those much needed healthy and people are signing a. harry reid takes the pipeline vote to the senate. what is that? is new. "varney and company" is about to begin. any other agency had anything like that kind of power? to seize and take? judge napolitano: no. stuart: the police? judge napolitano: no. only the irs can do this and get away with it because the congress permits them to do so. congress is complicitous in all of the accesses and the irs by writing statutes that give them this kind of liberality. stuart: that is what judge andrew napolitano said on the latest irs outrage. this is a story first reported by george will. the owners of a grocery store in michigan had $35,000 seized by
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the irs because they made regular cash deposits for the bank. the irs suspected they may have been involved in criminal activity. they were not. the irs still empty their bank accounts using an arcane rule called civil forfeiture. no warrant, no probable cause, no warning. we are joined by that business owner, sandy thomas joining us. what a pleasure to have you with us. hope you can hear us. when did you first find out your bank account was empty and the irs had got it? >> the irs agents came into the story in january of 2013 and asked my dad a few questions and said they seized his bank account. stuart: that was the first you knew about it. the irs walked in the door. did they sees everything your account? >> yes. stuart: what did they say to
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your dad when they were in the store? your father or your husband? >> my father. they told him they accused him of money laundering and asked him why he made deposits, cash deposits the way he did. he answered their questions and they said they seized his bank account. stuart: and then what? i presume you say give us the money back? how long did it take to get any of that back? >> we had to wait 60 days to get an application from the irs to apply for the money back. stuart: wait a minute. you had to wait 60 days to get the form to get permission to ask for some of it back. 60 days, then how long did it take before you could submit your application to get the money back and get some of it back? >> then it took our lawyers some time to draw up the paperwork they needed, then they sent a response saying no, you are not
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getting the money back. then they offered us 20% of the money back or it was going to go to court. we decided to keep fighting it and went to court. two justice attorneys became involved, picked up the case pro bono. we fought the irs. stuart: back to the lawyers in a moment. why did you make regular catch deposits at the bank? >> there are a few reasons. one is our insurance policy will not allow us, if we were to get robbed going to the bank it would only cover $10,000 so we always took less than $10,000 to the bank. that was the main reason. stuart: the main reason was security. get the money out of supermarkets because he didn't want to get robbed. how much did they -- $35,000?
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>> yes. stuart: how much have you got back now? >> we got it all back plus $9 in interest. stuart: $9 in interest? they held that money i presume for 10 months and you got $9 interest. let's go back to the original lawyer. you had to hire a lawyer to get you through the paperwork to make the application to get part of your money back. did you have to pay that lawyer? >> yes. stuart: may i ask how much you don't mean to pry but i am interested in the cost to you. >> it was $5,000. stuart: so you had to pay $5,000 in order to get 20% of your money back which was on top of my head about $7,000. is that correct? >> right. stuart: to get the rest of the back you were fortunate to find a pro bono, a free legal service out of washington d.c.. >> right.
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stuart: bring us up-to-date. >> we received the money back for winning fraternities to be refunded which was approved by the judge but we are still fighting to change the law so this doesn't happen to other businesses. stuart: well done. we are almost out of time but i want to ask one last question. i believe your father, your parents are from iraq if i am not mistaken. what was their reaction to when this happened to them in their new country, the united states of america. >> my dad has been here almost four years and just could not believe this was happening in the united states. stuart: thank you very much for making time to be with us today. an extraordinary story and we are glad you told it to us. thank you, sandy thomas. great story. dreadful story. let's get to one of the other big stories we are following today. i will call this the new normal. we have a gain of 288,000 jobs
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created last month. got that. the other side of the cooling, 806,000 people dropped out of the work force. that enabled the unemployment rate to come down and the participation rate dropped as well. market reaction, i am going to call it tepid. that is not a reaction, down a point on 16,500 index. mary castle is here from the wall street journal. this is the new normal. modest job creation and a lot of people dropping out of the work force. i don't think that is good enough. in america today that is not good enough. >> i don't exit the phrase the new normal. this is not normal for the american economy. to be in the fifth year of a recovery and have more people dropping out of the workforce than entering the workforce is something we have never seen in the postwar period. you have to ask why. stuart: tell me. >> there are couple explanations. one is demographic, more baby boomers dropping out of the labour market and staying out
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but that doesn't explain this long trend we have seen. it has a lot more to do with disincentives to work. a lot of programs out there that say to the american public is worth your time to get unemployment insurance and take minimum wage than to go get a job and in the meantime you have a lot of people who want to work who aren't disincentive buys to work but have been out of the work force so long that their skills are starting to erode. at the u.s. back into this people are coming out of college, can't find work, can't get in. a very bad situation. stuart: that is what i call the new normal. csi of the coin, the disincentive to work, not just last blood -- like of jobs the disincentive to job, lack of jobs too. let me get to individual stocks that are moving today. linkedin, a loss. they reported a loss because they pushed for lot of money expended in to china. at stock is down 5%. chevron, the profits disappoint,
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hurt by lower oil production. hardly any change. $0.14 lower on $124 stock. sketches, looking to buy a stake in the l.a. clippers basketball team. where is that? nicole: the stock hit a new high, it is close to 4%. but we do have scatters saying they will explore buying a stake, consulting with advisers for this to possibly move forward with this. they will:a slew of other folks who expressed an interest including magic johnson, boxing champion floyd may weather and oprah winfrey, sketches of the well, great with sales. you may remember the boston marathon that was recently run was the winner was wearing sketches sneakers. look what is happening to the stock. they make more. than the l.a. clippers. i wonder if you don't like that.
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stuart: a beautiful run came to an end not too long ago. that chart showed a big nasty sell-off so that sketches today thinking a bit for the l.a. clippers. thank you very much. i will call this a surprise headline, harry reid, wait for it, is ready to bring a vote on the keystone pipeline to the senate floor. what? senator harry reid is a harsh critic of the pipeline. i can't believe he wants to bring a vote to the floor. i can't believe it. >> it is harry reid and the run-up to the november elections so there will always be a catch. last year harry reid brought a bill to the floor, nonbinding resolution which lets senate democrats vote for the pipeline. doesn't mean anything and i suspect this time around -- stuart: what is the catch this time? >> the reporting is indicating as we know now that it might be linked to local litigation in nebraska against the pipeline so
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who knows when this thing might actually get bills? stuart: i am speculating. he brings the bill to the floor which says build that pipeline but only build that pipeline when they settle litigation in nebraska. that would allow wavering senate democrats, people who are really under pressure to say yes, i voted for building the pipeline. of course they didn't, they voted for endless delay. that is what is happening. >> same as the minimum wage vote we saw in the last few days. all about politics. nothing to do with helping the u.s. economy. stuart: cutting through the red tape, good stuff. breaking news, ali baba expected to file ipo monday or tuesday. that is according to an internet report. this is the first step in a process that could take a couple months. yahoo! owns a quart of ali baba which is why we quote yahoo! stock all the time, still around 36, been there for a long time.
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a friend of this program, john calfs, no-nonsense kind of guy, expanding his empire, he will join us live sitting next to me after the break, he will talk about his new show coming out, nothing to do with bars. it is an investment competition. anyway you slice it this guy makes serious money. here is one big reason we like him so much. >> i hate when people wake up in the morning and blamed the recession, they blame the president, they blame congress, they blame the markets, they blame everything but themselves and the reality of it is even in tough economic conditions somebody is making money. when you sat down to dinner with anticipation, not hesitation.
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enroll at purplepill.com. it's the nexium you know, now delivered. >> i saw this. we have some potential but we have to understand this. this biscuits sucks. of the doesn't fix that won't be successful. stuart: you know him from bar rescue. same kind of guy, he yells, he gets results and now he has that new show, hungry investor. john taffa, welcome to the show.
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tell me about hungry investor. we had a clip from it. you are the same guy. >> kinder and more gentle. stuart: this is about investing. this is about money. >> the concept of hungry investors i have two partners. the james beard award winning chef and restaurateur and tiffany deery who is a competitive award winning chef. we going to these restaurants and to invest test evaluation of five criteria. stuart: putting two restaurants in competition against each other. >> for investment dollars. stuart: and investment test. what is that test? >> market potential, physical potential, production potential, quality potential and human potential. we evaluate these five criteria through the invest test to assess the business. we pick it apart to the level of sales per foot per minute per hour and over and allies, i am all about the numbers.
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when we finish with this invest test we deliver it with our partners and often have different views and either we agree unanimously to invest in 1, 2 or none and that is the story. stuart: it strikes me that is a good way of judging the investment potential of any restaurant. allows the investment. a lot of people lose their shirts. >> but when it works it can take years to the promised land. stuart: this is different from bark rescue because you are not going in and rearranging the rescue. you might tell them you risk it. you said your biscuit sucks. you may be saying that but you are not saying you are fired, do this or that, you are not telling them what to do. >> i am judging them. in our rescue i am here to save their lives, they're in trouble, houses and families are on the line and hungry investors are coming as an investor. it is a longer term view. i held them in spite of that in many cases and i go on my way.
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this is a much longer commitment. i am not looking to make an enemy. i'm looking to make a partner. stuart: you have not done a whole series yet but the expect on occasion you will say you don't get any investment? you have two competing restaurants and you are prepared to say you don't get any money and you don't get any money. >> absolutely prepared to say that. i have to. this is an investment. this is real. i worked hard for my money. stuart: it is real money you are putting in. >> we are providing our personal resources into this. stuart: don't put your money in it. >> we don't give them cash. what we do is provide them with the furniture, the remodels, the market, the promotion, all the resources are professional. stuart: you are getting -- publicity. >> it is a real investment to us and our lives and reputations are on the line. stuart: are you still making money? you got an empire. >> doing okay. you are helping me along the
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way. stuart: it is commissionable. bar rescued getting royalties from reruns. >> we got our highest ratings in series history lesson the. stuart: shall i tell you why? you are on the show right before the highest rated show, you are on this show and i gave you priceless publicity. >> you have been incredibly gracious to me. not many people say that but you have been to me. a lot people have said in this chair and not experience what i have, no question about it. you and a lot of friends have been very supportive. after 58 episodes, i estimated one is really good. stuart: hungry investors, the restaurant competition. when does it start? >> sunday night at 10:00 after bar rescue. stuart: it is a 1-hour show. >> two hours of me on sunday. stuart: have you got enough material for a 1-hour show? i know all about putting on tv shows if at last an hour. you need a lot of information, lot of real good video and sound bites as a lot of action.
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you got it all? >> i do. stuart: that is what you bring to the set. you, dominated the screen. your voice, your persona. it is you. you dominate. >> this is my business. i am confident about what i do and that is what allows me to do and at the end of the day it is knowledge and experience. stuart: 20 bucks cash says your next move is a movie. >> really? stuart: i put 20 bucks on it here and now. >> i am not putting 20 bucks down. stuart: i did talk to you about it beforehand. i bet you are going to do it. you dominate the screen. people can you, gravitate towards you. you have got it. >> you would be in that chair if you didn't yourself. you can do anything with a british accent. stuart: i don't like that guy, i don't like foul language on tv the way he uses it. >> the way i use it is okay. i get bleached once or twice.
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stuart: you are in america. new show hungry investors start sunday night, spike tv, 10:00 eastern. thank you, come again. check the big board. i am going to call that a minor loss, not much to it, down 17, 16541. where is the price of gold? above $13 an ounce today, nice gain, $20 an ounce. where is the price of gold? $99.82, barely any movement today. the royals, princes in memphis. it is not big news but it will be treated like a big news. might take on the royals in memphis next. latte or au lait?
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apps to get my friends to download it. stuart: does that young man remind you of view course self a few years ago? >> way too much. stuart: we talked technology lot on this program. always interesting to have been led he tonee iwerse two intervi. here is what truths that. my husband looked at me after the interview and asked when i was going to come up with an apps and ask your favorite question, would you sell it for $100 million? what do you think i said? no. i don't believe you said that. jessica had an issue with me asking about selling his business. he says your $100 million question knows no end? this kit is still in high school. all he is thinking about is getting into m i t. we appreciate your comments. deegan coming. you got to keep taking me to
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task. i don't mind. oils are imemphis. house.er a the w here is my take. i am always teased about my british background. judge andrew napolitano delights in ridding the about the queen because of my accent. people think i must be royalist to warships the monarchies. wrong. i think royalty works in britain. there's a place for it over there but not here. let me tell you about this latest royal visit. prince harry and prince william are in memphis. they are not going to elvis'sd l wedding. lindsay wilson is marry guy, ldo nclubwner at a memphisr club. welcome, prince harry. kind of funny but here's the question. will be royal visit to memphis get more popular media coverage that angela merkel's trip to the white house? my answer is yes of course it will. the royals will be all over the celebrity pages, all over local news, all over the tabloids.
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angela merkel will hard to get a mention. much of america will know this -- won't even though she's here. why is this? first off celebrity is news these days. celebrities sell products. they sell magazines and boost tv ratings. that is the fact. there is also the appeal of royalty even in america. i would say especially in america. all king george may have been kicked out but the next king george who happens to be prince william's son is the endless fascination here. is it social class? pomp and circumstance? because kerri is the world's most eligible bachelor? he is. having broken up with his girlfriend of two years, pour angela merkel, she can't compete with that. she may run europe's most powerful economy and the telling of president how he runs his foreign policy but she is toast when it comes to media coverage. you can make a case that it should not be this way but it
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is. this is media reality today. that is why president obama would far prefer a photo op with prince william. wouldn't he loves a royal endorsement for obamacare? of course he is not going to get it. he is about to get a lecture from angela merkel. welcome to america, harry and william. you will win the ratings war two centuries after you lost the big one.
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stuart: former white house national security spokesman join fox news's bret baier last night. just listen to his response when pressed on the controversy over the susan rice benghazi talking point. >> according to the e-mail and timeline the cia circulates new talking points greta van susteren remove the mention of al qaeda and then at 6:21 white house, a line about the administration warning of september 10th of social media reports calling for demonstrations. true? >> i believe so. >> did you change a tax to demonstrations and a talking points? >> maybe. i don't remember. this is two years ago. we us talking about -- we're talking about the process of editing talking points. that is what bureaucrats do all day long.
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your producers edit scripts. stuart: wall street journal's mary kissel still with us. do you think the benghazi story broke wide open? >> i do. this is the first link we have had to the white house. ben roads is the spin master for foreign policy and now we know for sure that he got on the phone. we have e-mails proving that he told susan rice, say it is about an internet video but i was very -- stuart: he told her what to say. >> these protests are rooted in an internet video and not brodeur failure of policy. place this in context. this is before the election. the american people received for a week. we still don't know what happened and when they are asked why four americans died you get the unresponsive as not just from the fellow we have on what bret baier last night but remember what hillary clinton said, what does it matter now? imagine if you with the families of those people. why don't they want to get to the bottom of this?
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is unconscionable. stuart: he is the man, he is the man who changed the wording from attacks to demonstrations. the complete have that on what went down that night and he did it. and that is another link to the white house i take it. >> absolutely. we still don't know what happened, still don't know what the conversations were, why troops weren't sent in, why the american public was misled. this is a big story and i think the white house must think the national media is stupid because to get on television and watch what jay carney says the way he talked to these reporters as if this is nothing, this is a nonsense story. if i were a journalist in that room my would be deeply offended. stuart: the establishment media does not wish to pursue this story. >> they are treated in a way that is offensive they have to cover this story and that is what you are seeing this morning in the media coverage because they are starting to pick a. stuart: been waiting a long time
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for this. check the big board. where are we? it is friday morning, jobs day. doesn't have any impact i can see on the market. we are down 11. look at estee lauder. a new high. it was earlier at 76. that is the high, they raise their forecasts. things look good in the cosmetics business and the stock goes up 5%. cooper tires profits down but not as much as analysts thought they were going to be down. the expectation business, very easily manipulated. cooper tire is up 5%. let's dig deeper into the jobs report today. you will find this number, 806,000 people dropping out of the workforce in april. that helps send the unemployment rate down and participation rate down to 62%, 1978 levels. but what was the headline in the new york times right after the news broke? unemployment rate at most since
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2008 as hiring jumps. does it tell the real story? former labor department chief of staff paul conway giving us the real story. what is it? not as rosy as the times said it is. >> this is an ongoing story and you nail that saying this is the new normal. the situation going on for millennials, long-term unemployed, those who are disabled looking for work and the african-american community and hispanic community and among young adults everywhere this story today is not a positive news story and not something i think markets or americans from shore to shore ought to take a look at. is simply not great news. stuart: earlier this week we had reported 40% of the jobs created since the end of the recession were very low wage jobs, fast-food restaurant chains, retail stores, 40% of the jobs
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created is where they were. what about today's report? what does it show about low-wage job creation? >> same type of thing. in those low-wage sectors there is no disparagement on those jobs at all but the key issue here is how much elasticity are you creating in the job market for those who are currently employed who are seeking promotions and better jobs and for those who are long-term employed seeking to regain jobs in sectors where they have the talent and skills and it simply not expanding at their rate. more increases in different areas, low-wage jobs and you see some bright upticks in manufacturing and construction that you can expect that in the spring on most jobs reports when you look at it over the historical averages. stuart: we reported something like 40% or 50% of people with college degrees right out of college are actually working in jobs which do not require anything like a college degree. was that statistic eliminated in the report? >> it has not changed. this is based on the b l s data.
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those who have a college degree who recently came out of college in the last two three years. i call this the obama class, those who came out since 200950% are working in jobs that deny require a college degree, when in three working in jobs that don't require a high school diploma. stuart: i understand parents support fully one in 7 parents support fully adult children in their house. correct? >> that is right. 25 to 29 adult children, one in 7 parents are supporting them, making of the difference for mortgage and other parents. stuart: i'm shaking my head. not making a moral judgment on living at home. i am making a financial judgment. if we have come to that that is not good. that is my personal opinion. a presidential news conference coming up. what kind of home can you get 4
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million bucks? it depends on which part of los angeles we are talking about. two different neighborhoods. million dollars? what do you get? back in a moment. i ys say be thman with the plan but with less ergy, moodiness, i had to do something. i saw mdoctor. a blood test showed it was low testosterone, not age. we talked about axiron the onlynderarm low t treaent that can restore t vels to normal in about two weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especlly those who are or who may become pregnant, and children should avoidt where axirons applied as unexpected signs of puberty in children or changes in body hair or incased acne in women may occur. report these symptoms to your doctor. tell your doctorbout all medical conditions and medications. serious side effects could include increased sk of prostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts, problems breathing while sleeping
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the company. testers and a cutoff is advising shareholders to take no action. pfizer has taken that hundred million dollars yesterday after it rejected the previous bid of $100 million. bind after zeneca would boost the biggest pharmaceutical company. both are trading to the downside. and expedia. more people use expedia in their travel plans. expedia revenue and jumping 19% year ago to $1.2 billion. earnings did fall a bit. we will see shares down 4% so what does $1 million get you in los angeles? we are going to show you coming up next.
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stuart: wall street journal poll finds contrary to what dr. keith tableau told us, perahia's of social media is not changing the way we interact in the real world. loren has details. >> very surprising. we are not only socializing online, we pay our bills online, we shop online yet look at this. 58% of people still say they have family dinner at least we 5 times a week. about the same number as 15 for years ago. 60% said the same in 1999 and another part of this poll do we know our neighbors? 69% say they currently no and
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talk to their neighbors and 73% 15 years ago. peter: when a family dinner situation we all sit around with a cellphone. i got myself on in my pocket when i talked to a neighbor. >> you would imagine even though you are talking to your face book friends you are also talking to your brother and sister and mom and dad and your wife we hope. imagine a silent family dinner. stuart: i am texting my daughter across the table. thanks so much. strong numbers, talking gambling here, that gave win shares a boost. how good is it? nicole: rolling the dice. you don't gamble. let's talk about right now, i don't mean anything funny, up 6%. almost as much as revenue, up 10%, we talk about profits, all the analysts are jumping on board. credit suisse, jpmorgan and the
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rest are getting in and upgrading the stock so you are seeing a nice cop for this company. casinos and the like. stuart: a casino in macau, i have been to the casino in singapore, totally different from las vegas. it is like day and night. it is different. nicole: is a better? stuart: i would not say better. is different. there are not many bars are around the outside, no young ladies giving you free drinks. nicole: no taj{~}mahal girl dressed up? stuart: all the girls giving you bottled water and see. deathly silence at the sound of money being put down on the table, lots of money. you got to go. thanks. let's get to a very popular segment on this program. we call it hot properties. we compare what $1 million buys you or whatever amount of money is from one place to another. today we are comparing $1 million within los angeles.
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we have two parts of los angeles. sandra: this is a varney your request is a california at your said l a versus l.a.. that is what we're doing for your viewers today. this is what you can get in reseda, calif.. stuart: part of greater los angeles. sandra: it is between simi valley and north of beverly hills. this is a 7 bedroom, 6 bath, two homes that you get for $1 million. the main house 4,000 square feet, the second house, 100,000, 1,850 square feet. this comes out to $186 per square foot which is cheap obviously and it has the pull, the mortgage works out to $3,800 a month. you get two full homes on the property and property is 0.6 of an acre. stuart: that is what we are looking at. sandra: your viewers can decide if they want to keep the decorum on the pictures now. i would personally make some
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changes. stuart: obvious question. if i am walking from one of these houses to the other do i get shot? sandra: i don't know the area that well but it is an older neighborhood. stuart: why is mary kay shaking her head? >> you get shot in a lot of places. you can get shot in the bronx, shot in brooklyn. stuart: what are the odds of me getting shot? the other was grantwood? sandra: this is bundy drive in los angeles, very different situation. you could get shot in brentwood. $129,000, the mortgage is $3,500 a month, two veterans, two bads, they converted it to two bedroom which i find interesting. it sold back in october of 2009 for $750,000. it has granite counter tops, a nice little jim, looks like the one car garage, two walk-in closets. it is a ground-floor but two
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bedrooms or two homes, boats and los angeles. stuart: and the same weather. sunshine, 75 and sunny, the same whether. sandra: either way or major droughts and potentially wild fires and flooding. earthquakes. so glad you brought that up. the brand andwould home earthquake insurance is included in the h o a fees. >> doesn't matter if it falls into the ocean. sandra: i don't think it will fall into the ocean from brentwood. stuart: the purpose of these pieces is to compare what x amount of money gets you in different locations, not you better live here or better to live there. that is not what we're saying. location location location, what do you get in different places with remarkable difference. >> the investment opportunity was remarkable. if you look at the price of the bigger lot with two homes was
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sold for half a million dollars in april of 2000 but doubled since then. it is two homes. if you put your family together, that is a byproduct or an investment property in. if it was me and this is me talking guy would teardown both of those homes on that a grand start building new ones. a lot of cities across the country these older neighborhoods are going in and dripping down these homes from the 40s, 50s and 60s, more construction in a central area of the city. i see a lot of that. stuart: remember the movie l a story? steve martin the crazy weatherman goes around los angeles pointing out homes and says some of these houses are 25 years old. than he does the to pay report, wind in his weather forecasts. i digress. very sorry about that. check the big board. not much change this friday morning, down 18 points, 16541. up next in the new hour, brian kilmeade is back. didn't get enough varney last
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week. can't get rid of this guy. another hour of varney is coming up. there's a new way to buy a car. it's called truecar. and truecar users... save time and money. so when you're... ready to buy a car, make sure you... never overpay. visit truecar.com today.
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stuart: a new report finds companies on the s&p 500 will save $700,000,000,000,000 through 2025. and 4 obamacare. and take care of their insurance themselves. $700 billion. >> it takes a couple big employers to set a precedent and take the political heat for it and a lot of others coming. they make money for their shareholders. for tax reasons earlier this week. and it is what they're focused on. >> what is happening is it cost x number of dollars to insure you. we know that is going to go up.
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it will give you a bit less than that. here's the money. >> there's a big trend of corporate america since obamacare has been enacted in health and wellness programs, they're very much writing their employees to live healthier lives it does of the cost, companies that are saying i want you to be healthy and go to the gym, we want you to not go to the doctor and be sick and there are nursing lines companies are offering their employees. stuart: nothing wrong with that. that is a very smart move. >> ultimately you get what you had on the op-ed page of the wall street journal explaining this, two tier health system, people who can afford concierge medicine and everybody else. stuart: did mytake on that. relative in england who suffers from parkinson's disease, this person has money, they bought themselves private medical care.
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good stuff. it works. parkinsons is being contained to a limited degree. this is in a country with socialized medicine. precisely the kind of two tier system your wall street journal was talking about being introduced by obamacare. if you have money will buy your way out of a mediocre public system. that will happen i do believe. and the last word on obamacare? >> we are seeing doctors offices, coming out of states like florida, new patients calling to sign up with a new doctor. they're saying i you on health exchange and if you are we can secure as a new patient. stuart: in two minutes another whole hour of "varney and company". bet you can't wait. more on obamacare, jobs, the market. angela merkel is in the white house. two minutes.
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♪ stuart: well, the white house and the main street media will make you believe where is the stock market rally? the unemployment rate went down. we have no significant reaction on the market. >> i am very frustrated with another month of seeing no increase. the incomes are not going to go up. i am very concerned about the fact that we are not seeing the wages there. the headline number makes you think it is a good number. it is not. stuart: the income is very, very important. that is the basis of demand.
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>> i can find you 1000 jobs. they are low-paying jobs. and lots of them do not have health insurance. service sector jobs keep growing, but nothing else. >> sherill goes on the air with how to find a job. you point people in the right direction. you have a hard time finding middle wage jobs. by that i mean 50, 60, 70,000 with benefits. >> i am looking at the details here. 33,000 jobs created in the food and bar business.
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didn't you have that number? >> 10 million-$1 billion in annual revenue. they are hiring right now. a press release out earlier this week haired they look at all of these things. talking to washington for a way to ease up and help these companies expand. stuart: it is the small business that used to be the engine of growth for jobs. >> i want to bring you a couple of sectors for jobs that are positive. healthcare. they want to stay at home. they want to live in their home until their death.
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that is a booming her. the wages are very strong. technology. very strong salaries. those are only two examples. the dow is down nine points this friday morning. i believe the volume is exceptionally low. this is not an active outside market right now. did we have sketchers. that is a sneaker company. looking to buy a stake in the lakers basketball team. it is down 4%. probably not a result of anything to do with buying a piece of the clippers.
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more people used expedia this year. down 3%. then we have linked in. a loss after a costly expansion into china. nicole: not good news here. down 6.25%. the other thing, too, it is a little frothy compared to some of the others. facebook trades at a multiple of 39. we are looking at linkedin. every day someone says to me, join them on linkedin. i hardly think it is a dead product. please, join me on linkedin. i am not on it.
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stuart: i get five or six invitations to join somebody on linked in every single day. i really do not want any more. i just cannot take the e-mails. >> it is not you, it is meet. stuart: [laughter] you may have noticed that the whole team here on varney and company is doing a little tap dancing. we are waiting four president obama. a press conference that was supposed to start at 11:40 a.m. this morning. it is now 12:05 p.m. they are 25 minutes late here and set to begin any moment now. rich edson. if i were to say that liberals are always late and conservatives are always on time, would you take issue with
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me? >> not even the germans can keep this white house on time. stuart: i believe in germany being late -- >> yes. stuart: order is half of life. order means being on time. when will we see when this show gets on the road? >> you are seeing a number of uncomfortable germans. i can guarantee that they are aware of it. the u.s. has thus far it decided to present a united front page
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to hold on, rich. president obama and angela merkel are walking to the podium. let's listen in. >> good morning, everybody. it is always a great pleasure to welcome my friend and chancellor merkel to the white house. germany is one of our strongest allies. with her indulgence, i want to start by making two brief comments. first, as president, my top priority is doing everything that we can to create more jobs and opportunities for working families. this morning we learned that our business has created 9.2 million new jobs over 50 executive months of job growth.
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the grit and determination the american people is moving forward. we have to focus on job creation and or opportunities for working families. raising the minimum wage to creating good construction jobs in mid-america. i want to work with them wherever i can. i keep acting on my own where ever i must. second point, i also want to say, on behalf of the american people, our thoughts are with the people of afghanistan to experience an awful tragedy. a devastating landslide on top of recent floods. many people are reported missing. just as the united states has stood with the people of afghanistan through a decade, we stand ready to help our afghan
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partners. even as our war comes to an and, our commitment to afghanistan and its people will endorse. now, angela, i am still faithful to the hospitality that you and the german people have expended to myself, michelle and our daughters. you promised me a warm welcome and delivered in a believable 90-degree day in berlin. this morning, our work touched on a range of issues where the united states and germany are vital partners. we agreed to continue close security operation including law enforcement and cooperation.
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we discussed energy security. the united states has already approved licenses for natural gas exports. it would make it even easier to export gas to europe. we will review our negotiations with iran and the determination to prevent a ran from developing a nuclear weapon. he will support syria and provide humanitarian relief to the syrian people. of course, most of our time was spent on the situation in ukraine. angela, i want to thank you for being such a strong partner on this issue.
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you have been a leader in the european union. your presence here today is a reminder that our nations stand united. we are united in our determination to impose actions on russia. we are united in our unwavering article five commitment. including german aircraft joining nato patrols over the baltics. we are united in our support for ukraine. the very important imf program approved this week.
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they disarm and stop provoking violence. pro- russian militants are still holding observers, including four germans, as well as ukrainian exports. they have been paraded in front of the media and forced to make statements at the barrel of a gun. it is disgraceful and un- excusable. finally, as both angela and i have repeatedly said, we want to see a diplomatic resolution andrew -- in ukraine. diplomatic and economic.
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it is estimated that $100 billion will exit russia this year. in short, russians actions are making an already weak economy even weaker. we have been consulting closely with our european and g-7 partners. the russian leadership must know that if it continues to destabilize eastern ukraine and disrupt this month residential collection, we will move quickly on additional steps including
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further sanctions that will impose greater costs. more than willing to work through some of the issues that would insure that the rights of all ukrainians are respected, that you have a representative government, willing to discuss amendments to the constitution, power to a local level. they have gone through with their commitment to provide amnesty for those that laid on arms. those willing to play on a building they occupied. the government in kiev has followed through on the commitments it made in geneva. we need russians to do the same. i want to thank you again for being here.
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free and at peace. chancellor merkel. >> thank you very much, barack, for this gracious hospitality in this welcome that you have courted to me. i am back to be back in washington and have an opportunity to address these issues with you. i think it is on the current issue of ukraine. it showed how the partnership is in today's times. i think it is very good that the steps we have taken so far we have taken together. in our talks, we have underlined that we fully intend to go ahead as we did in the past.
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what happened on ukraine. the order has been put into question. the acceptance of territorial integrity by all. this is why it was so important for us to react in hong kong. the 25th of may is a very crucial eight. we talked about this. together, we shall do everything we can to bring russia to do the necessary steps. the 25th of may bringing about some progress.
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further sanctions, they will be unavoidable. this is something we do not want. we have made a diplomatic offer. we have resolved to continue to travel down that road. we address issues that have a bearing on the work of them. we have always enjoyed a very close cooperation. anyone in political responsibility is more than aware looking at the challenges of the modern world today. the work of the intelligence services is not only important, it is indeed indispensable.
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the balance that strikes, on the other hand, protecting individuals and their freedom. that will require further discussion between the two countries. we are talking about safe harbor agreements, also about protection and taking back the message home whether the u.s. is ready to do that. we may have differences of opinion. thirdly, i think particularly in the overall context, trade relations, global growth, also in the context of energy supply.
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this is a very important issue. it will be very important for us to bring any association very quickly to a close. this offers an lot of opportunities for the future. it is so important for us to bring this agreement to a successful conclusion. the skepticism can be overcome. just look at the many partners all over the world. it is simply necessary looking at the intensity of the partnership. we are fully out one on this one.
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we have had very intensive talks. we will build over this over month. thank you for your very gracious hospitality. >> we will talk with lesley clark. >> thank you, mr. president. with violence today in ukraine, you said that germany and the united states are in efforts. have you been able to reach any common ground? what is next, if you are unable to? to chancellor,is it what you said? is it what you believe? could you give us a little more insight into what you might be thinking and do you believe he is a threat to europe? >> obviously, every day we are
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watching the events in eastern ukraine in southern ukraine with deep concern. i think that what you have seen over the course of the last several months in the midst of this crisis is remarkable unity between the united states and the european union. we have, at the same time, offered a diplomatic approach that could resolve this issue. we have been unified in supporting the ukrainian government in kiev, both economically and diplomatically. it is exactly what we have done. you saw just over the course of the last week, additional sanctions apply both by the europeans and the u.s.
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the next step is going to be a broader-based sectoral sanctioned regimee have said is we want to continue to keep open the possibility of resolving the issue diplomatically. as angela merkel said, if, in fact, we see the disruptions and destabilization continuing, so severely that it impedes collections on may 25, we will not have a choice but to move forward with additional, more severe sanctions. the consultations have been taking place over the course of the last several weeks about what those would look like. the goal is to give them an incentive to choose the better
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course. i think we are united on that front. within europe, within the eu, i am sure there has to be extensive consultations. what has been remarkable is the degree at which russia has violated international law. i think there is unanimity that there has to be consequences for that. if we have to use them, we cannot. our preference would be not to have to use them.
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she has also been very important in helping to shape a possible diplomatic resolution and reaching out to the russians to encourage them to take that door while it is still open. >> keep in mind when it comes to think soro sanctions, we are looking at a whole range of issues. energy flows from russia to europe. those continued even in the mid- of the cold war. there are a range of, you know,
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approaches that can be taken not only on the energy sector, in terms of lines of credit for trade, all that have a significant impact on russia. i do not think it is appropriate for us to delve into the details at this stage because our hope is we do not have to deploy them. our experts are at the highest level and not just bilaterally, but multilaterally through the european commission. our teams have been working through all of the possibilities and we are confident that we will have a package that will further impact russia's growth and economy. we hope that we should not have to use it. we do think that mr. putin and
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the leadership circle is making bad decisions. it needs to be persuaded from the current course. >> it is, i think, obvious, very different testaments on what happens in ukraine. on the one hand, you have the united states and europe. on the other hand, the russians appreciation about the situation. i hope that russia will live up better in the future about its responsibilities. we do not have any release. we have not yet seen any implementation of the geneva agreement by the russian side.
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one word on sanctions. i agree with the american president. combined with the offer that we wanted diplomatic solutions, it is a very necessary second component to show that we are serious about our principles. there is a broad range of possibilities that are being prepared for in the european union. this is not necessarily what we want. we are ready and prepared. my main aim would be first and foremost to improve a stabilization and see to it that
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a stabilization will happen. what we are talking about here will be central measures in the context. the american president and i can only agree to this and say what is necessary in regards to dependency on gas which is very strong in europe. we can also look ahead in the medium term. there are six countries that fit in right now in the eu that depend 100% on gas supplies. we need to improve. we need to improve our grid at the pipeline. all of the countries need to share supplies. those are measures that we are currently discussing in europe. we are talking about short-term and also media term.
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>> you said that time is of the essence and that it is getting shorter. when would be the time that you would say moving to a third phase of sanctions is what you would promote? can you understand the fact that also mr. putin needs to play a role in this solution which is the role of the european union. his arguments have to be made. after having been made though several phone calls, do you think it sets a trend on this? what about the next few days to come. >> i think the meeting of
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foreign ministers at the eu will play a very important role. finding out what possibilities there are in various directions. we will do everything we can in order to bring them into a situation supported clinically to do what is necessary to bring this forward in ukraine. all the different parts have to be at the same level. we want to get them the necessary political backing. a certain point in time is there. it is very difficult to predict. the elections are crucial. and should there be further
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attempts of destabilization, this will be getting more and more difficult. i am working for elections to take lace on that day. we have approved that in the past in other areas. i am firmly convinced that the united states of america and the european union need to act in constant here. they have done so in the past. >> i have said from the start that russia has -- obviously, there is a deep and complicated history between russia and ukraine. so, of course, mr. putin's views should be taken into account.
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what cannot be taken into account is mr. putin's suggestion that he has the right to violate the sovereignty of another country, to violate integrity, to dictate that of a sovereign country. that is not acceptable. our view from the start has been that ukrainians should be able to make their own decisions. i am very confident that if ukrainians are allowed to make their own decisions then they will choose to have a good relationship with russia, as well as a good relationship with europe. what they cannot accept understandably is the notion that they are simply and unattended should extension of
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russia and the kremlin has veto power over decisions made by a duly elected government in kiev. if, in fact, mr. putin's goal is to allow ukrainians to make their own decisions, then he is free to offer up his opinions about what he would like the relationship to be between ukraine and russia. i suspect that there will be a whole lot of ukrainian leaders who will take those views into consideration. one of the biggest concerns that we have seen is the russian propaganda that has been blasted out nonstop suggesting somehow
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that the ukrainian government is responsible for the problems in eastern ukraine. the ukrainian government has shown remarkable restraint. it is belied by all the evidence of well organized, trained, armed militias with the capacity to shoot down helicopters. whatever weapons were used to shoot down helicopters tragically. approved not just by europe or the united states but also by russia. suggesting that kiev is
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responsible for that. you have seen attempts by kiev in a very serious way to propose decentralization of power. to provide for local elections. and for them to offer amnesty for those that have already taken over these buildings. none of that has been a knowledge by mr. putin or the various russian mouthpieces that are out there. americans are responsible for meddling inside ukraine. i have to say, our only interest is for ukraine to be able to make its own decisions. the last thing we want is
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disorder and chaos in the center of europe. for the german audience to perhaps is tuning to russian tv, i would just advise to stay focused on the fax. we are engaging seriously and resolving these diplomatic issues. our hope is mr. putin recognizes there is a way for him to have good relations with ukraine, good relations with the united
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states. it cannot be done to the kinds of intimidation and coercion that we are seeing take place right now in eastern europe. >> it comes to executions. does this raise more questions about u.s. justice and orientation? after edward snowden relations of your own cell phone, you said that france should not spy on france. steps taken by the u.s. are now
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consistent with the healthy alliance as personal trust been rebuilt. >> the individual who was subject to the death penalty had committed heinous crimes. terrible crimes. i have said in the past that there are certain circumstances in which a crime is so terrible that the death penalty may be appropriate. mass killings, the killings of children, but i have also said
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that we have seen significant problems. racial bias. situations where there were individuals on death row who were discovered to have been innocent because of scoble tory evidence. to get me an analysis of what steps have been taken.
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we have to ask ourselves some difficult and profound questions around these issues. if you do not mind, i will also say something about nsa. just because i know it is a great interest in the german press as well. germany is one of our closest allies in one of our closest friends. that is true across the spectrum of issues of security, intelligence, economic, diplomatic and angela merkel is one of my closest friends on the world stage. it has pained me to see the degree to which the snowden disclosures have created strains of the relationship. i have been convinced for a very
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long time that it is important for our legal structures and policies structures to catch up with rapidly advancing technologies. as a consequence, through a series of steps, what we try to do is reform what we do. we have taken these issues very easily. domestically, we have tried to provide additional assurances to the american people. something that has not been done before. most other countries in the world do not do. the privacy and interest of non-us citizens are deeply
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relevant and have to be taken into account. we have to have policies and procedures to protect them. we are in the process of implementing a whole series of those steps. we have shared with the germans the things we are doing. not subject to continual surveillance. not subject to a whole range of bulk data gathering. i know that the perceptions among the public sometimes has the capacity to show what you see on movies and television. terrorist, those who want to
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proliferate weapons, trans action all criminals are not able to engage in activities. we will not succeed if we are doing that on our own. what i have pledged to chancellor merkel has been in addition to the reforms we have already taken. we decided to close further the gaps that may exist.
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these are complicated issues and we are not perfectly aligned yet. we shared the share the same values and we share the same concerns. we will have a stronger legal footing and international framework for how we are doing business in the intelligence grid. i will say, though, i do not think that there is an inevitable contradiction between our security and safety and our privacy. the one thing that i have try to share with chancellor merkel is, you know, the united states historically has been concerned about privacy. it is embedded in our
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constitution. i think we know a little bit about trying to protect people's privacy. we have a technology that is moving rapidly and we had a very challenging world that we have to deal with. we have to adjust our legal frameworks. she should not dow in the german people should not dow how we take these issues. i will believe we can get the result to the satisfaction not just to our countries but people around the world. >> differences in opinion to overcome those differences in the medium term.
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it will not come out very clearly what differences of opinion there is. i think it is of prime importance to bring this forward. something else comes into play here and i heard this this morning when i had a breakfast meeting with people who are very closely in contact with the parliaments. they suggested that our parliament ought to have closer contact. that is very important.
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>> mr. president, could you explain this from your point of view? what kind of assurances could you give chancellor merkel? some of them sitting here that are not under u.s. surveillance anymore. couldn't you say the same thing? >> it is not quite accurate to say that the u.s. government offered a no spy agreement and then withdrew. what is accurate to say is that we do not have a blanket no spy
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agreement with any country. what we do have are a series of partnerships and procedures & is that our buildup between the various intelligence agencies. what we do is work through what exactly the rules are governing the relationship between each country. there are no misunderstandings. i think we have gone a long way in closing some of the gaps. there are still some gaps that need to be worked through. i think what we can be confident about is that the basic approach
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that we take with germany is similar to the approach that we take with all of our allies in all of our friends. during the course of the last several years, has technology advance? i think there was a danger in which traditional expectations tipped over because of new tech ologies. what we have tried to do is make sure our policies reflect increased capabilities and as a consequent increase dangers. let me put it this way. our interest in working effectively with the germans and making sure that german governments as well as the german people feel confident about what we do is as important to us as any other country. you know, germany is at the top
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of our list in term of friends and allies and colleagues. we are not holding back from doing something with germany for something we simply do with somebody else. >> i think the whole debate is such that we have a few difficulties yet to overcome. it is very good that we have taken these assets and divided these issues. they will be addressed. we will work on this.
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stuart: all right. the press conference is over. let me sum it very briefly. the president said he does not wish to punish russia. much of the press conference was taken up between german and the russian ukrainians. he said any idea of selected sanctions, that is unrealistic. i might add that the stock market, when we went into this press conference, the dow industrials were down six. roughly 35-40 minutes later. we are down 11. absolutely no impact on the markets. we have about three or four minutes left on this program. we will make the most of it. he does not know what we are going to talk about it. he is here and ready to go. we are talking to you about speed skating.
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>> i prefer sports. stuart: american speedskating team had the worst showing at the sochi olympics in at least 30 years. a new report says do not blame athletes, do not blame their performance, they say the loss is because of their uniforms. their suits. under armour made them. they said they were supposed to make them faster. another report said that they trained in the wrong place. they are making all kinds of excuses blaming anybody and everybody but themselves. >> remember the first controversy we ever heard was with swimsuits. now we have something just the opposite. when you talk about under armour, you talk about cutting edge. a power company that found its way into a market. they did not do that by staying a step behind.
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if you knew that these uniforms or a problem, did you wait until game day? put up your hand and say i have an issue. the sochi olympics were a total swing and a miss for they u.s. team in the world. stuart: putin invaded ukraine. he stirred up ukraine a couple weeks after sochi was over. good point. charles: they waited until the results on game day. to brian's point, totally un-american. way behind. stuart: a couple updates on donald sterling. he has already been banned for life from the nba. today, nba team owners will meet to discuss whether they will force him to sell his team. also getting reports from the u.s. post that sterling is suffering from prostate cancer. what is your take, brian?
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>> the reports are for him verified. he does, indeed have it. however, what will be interesting is if he goes ahead with what many people think is a problem relationship and goes ahead and get the divorce, they will have to divide property. how do you divide property when you are in the middle of legal proceedings. there is word he has already setting up legal defense. there is word that he enjoys this type of fight.
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stuart: in what year? charles: 81. you talk about one heck of an investment. a few players lead. the value goes down. >> i said you could not put your set of values with his. this is a very different character. charles: he loves money. money really does rule his world he has done some really bad things to poor people over pennies. >> 1.49 million according to forbes. it is worth just about
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600 million right now. charles: a bidding war. stuart: it seems to me that the nba has a huge mess on their hands. charles: adam silver has become a star to these players. >> the discrimination lawsuit. should you have stopped him along the way?
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>> most of the people that gave stuart and i awards have been fired as well. stuart: that is highly lucrative. charles: it is a big deal. stuart: are they going to play? no matter what is going on off the court. charles: it almost does not matter what happens, to be honest. what adam silver did, establish a league. >> if they keep him as owner -- that is what could happen. stuart: you know anything about
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the game? >> i will say this, after the game one showing, international debt a week ago, to the point where major league soccer is watching your show. they commented that we were positive about american soccer. stuart: one week ago we were talking soccer. they were watching. they were very please with you. the champions have the greatest soccer championship in history. to madrid teams.
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does this mean anything to you, charles? >> no. i am trying to warm up. trying to learn. they were on fox sports. charles: something seeps through when i am flipping through the sports pages. >> the economy is struggling, soccer is not. charles: detroit is begging for 100 million, a detroit baseball player gets 100 million. think about the differences there. >> we will make this an all sports format. stuart: you can come back next week. >> yes. it tazewell. [laughter] >> so sorry. stuart: a very enjoyable wrapup of the press conference. thank you very much. now, here is deirdre bolton.
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i am just impressed that you say soccer and not football. there you go. this is risk and reward. we bring you alternative ways to invest your money beyond stocks and bonds. big tech buying the government. apple, microsoft, facebook, google, yahoo! telling about potential fears. samsung and apple. samsung shipping more tablets and more phones worldwide in the first quarter. we will tell you what it means for both companies. the 140th trumpet will sound this weekend at churchill downs. we will bring you and inside look at investing in racehorses. ♪ deirdre: here is what stocks are doing right now. a mixed picture keeping the

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