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tv   Charlie Rose  Bloomberg  March 3, 2016 10:00pm-11:01pm EST

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>> this is "charlie rose." charlie: we begin with politics, donald trump and hillary clinton came close tore securing their party nomination. super tuesday. saw both candidates win victories in seven -- contenders look towards november. >> we know we got work to do. but that work is not to make america great again. america never stopped being great. we have to make america whole. we have to fill in.
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>> we will make america great again. i watched hillary speech, she's talking about wages have been poor and everything is poor. we're going to make it. she's been there for so long. if she hasn't straightened out by now, she will not straighten it out in thefection fur years. she wants to make america whole again. i'm trying to figure out what that's all about. charlie: cruz managed to beat trump in texas, oklahoma and alaska. marco rubio won in minnesota fueling doubts about his candidate as he marchs to florida last night lindsey graham discussed the dilemma facing the republican party. there's no way you seem to be suggesting that stop donald trump from being the nominee?
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>> short of a major scandal probably not. if marco doesn't win florida, i don't know how he goes forward. ted cruz is not my favorite. i don't wish him ill. we may be in a position where we have to rally around ted cruz. it's only way to stop donald trump. charlie: but you'd recommend that in order to stop donald trump. >> i can't believe i would stay yes. charlie: i'm pleased to have all of them on this program. let me begin with you in washington. where the republican party after super tuesday? >> it's in total disarray now. it is driven by -- the establishment is desperate to try to find way to stop donald trump. they don't have an agreed upon strategy. they don't have an agreed upon candidate to do it. their clearly running out of
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time. they got about two wins to begin to put a stop trump operation into place and i don't think there's any single person or small group that can do it. this is the marketplace of democracy and it's hard to corral that if you're the establishment now. charlie: dan, the new york times said the democrats are falling in line and the republicans are falling apart. >> i don't think it's just the establishment. i don't know what the establishment is at this point. voters, on average 65% of republican primary and caucus voters on average are voting for someone other than donald trump. it is true that donald trump is winning. but there seems to be major resistance in many of these states against trump. if there was any other candidate, we would ignore that and say he's winning, and he's going to be the nominee. it's only because there's so
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much resistence. it exist at the grassroots and among conservative elites and people trying to find an alternative. if trump continues, and can't get a more upward trajectory, i think he's going to have a real long slot to the convention and we could have a messy convention this summer. trump will be there. i can't tell you with confidence he'll be the nominee. charlie: do we know that all of those voters vote against another candidate might not in part go to donald trump? >> they might. i think it's unlikely. i think it's likely you can see ted cruz get out and have his votes split into various camps. or to donald trump. this argument that you know where somebody vet -- votes go. there were a couple of points last night. there's no question he had a very strong night. there's no question that itings like this is going to be a slog. counting on john kasich winning ohio and marco rubio winning florida.
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if you looked at oklahoma and arkansas, this is something the club for growth made a thing about last night. those are the two states where they spent money on ads against donald trump. those are the two states he came in below 35%. charlie: late deciders in virginia went to rubio. >> republican primary voters including ones who voted for trump know very little about trump university, very little about trump mortgage, know very little about what he said about kk and david duke. you will see tens of millions of dollars will be spent educating the republican electorate in key states about these issues.
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he's the only republican in modern history who's gotten this far who has not gone through tens of millions of dollars of attack ads. >> without spending money on his own message. charlie: democrats are looking and hillary clinton already turned to a national campaign in terms of the way she's reacting. what can you say about from your perspective, would be a tougher candidate to face donald trump or some of the other republicans? >> i think that donald trump would probably energize the huge turnout for mrs. clinton. i think we shouldn't under estimate impact of her win. the whole rumor about she could not make certain appeals including young voters, was put to rest. she won young black voters. she won turnout in the black community, latino community.
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what trump does is drive the vote more. the turnout among democrats has been lower than the republicans. the fear of what rump represents and the fact that is so offensive to many of the interest that many of us believe in, i think would bring obama like numbers out to the polls. charlie: why didn't you endorsed her? >> i haven't endorsed her. what i wanted to do was advocate on issues rather than be a
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surrogate for a candidate. at some point, i may choose to do that. charlie: would you urge bernie sanders to drom out? -- drop out? >> i ran in 2004 nobody told me to drop out. i would say he has a longer road now. i think that you got to give him credit. if he had not been in the race, we would not be discussing a lot of the things we're discussing. charlie: he said, people in civil rights movement didn't really know him. hadn't seen him at meetings.
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>> i'm a generation of john lewis. i'm from new york. from the south. i have not seen him in new york. when i had breakfast with him in harlem, what i said is, if you march dr. king, that's great. let's talk about some this century. let's talk all of the issues that we have fought from police brutality in new york all of these issues where have you been? i'm not going with john lewis. let's talk about this century. i think that he's been right on issues but i can't say that i've seen him out there marching or doing the things that we're talking about in the last 15 or 20 years. charlie: how much pressure is there from whatever corridor to get in line to support? to say to your fellow republicans, it's over?
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we cannot stop donald trump. he demonstrated appeal. >> none. very little. what you're seeing is pressure on other candidates to get out so there will be a consolidation of the anti-trump vote. i think chris christie is the exception. i'm supporting rubio. people pressuring kasich to get out. i see people telling cruz he should get out. cruz supporters telling rubio he should get out. there's a sense we consolidate behind one candidate and have a one on one race. the majority of that 65% can get behind one person.
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i think a lot of other people are starting to as well. i do think you're going to see his opponents talking about that more. there's a difference between the media has been doing reporting in terms of his background. his voters have not cared. a difference between what the media has been going and what other cuts are -- other candidates have been doing? charlie: why has he been successful? >> there's a dissatisfaction and alienation among the part of the electorate. some of it is grounded in the economic realities of our time. and the degree to which there are at the do of people who -- are a lot of people who have been left behind. he has struck a chord on that whether it's in immigration and trade. the country hasn't done what it ought to have done for a long period of time. democrat or republican.
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i'm sure maggie gets the same kinds of e-mails i get from people supporting trump. who talk about how dissatisfied they are. that's what he's been able to tap into. >> to your question, dan is right. to your question about the impact of our looking at his background or reviewing his business record and so forth. a lot of his supporters believe that every institution is corrupt including the media. the e-mails i get are you're lying, that's not true. whatever you're saying is dishonest. his supporters are, many of them are enormously disaffected. there's an a tremendous psychic break within the country. voters on both sides. you're seeing a lot in the republican base who feel that
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after the fiscal crisis, after a number of sort of erosions of trust with your government, with your elected officials with politicians, that is reflected a lot in trump's supporters.
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they will be more open to that once they start getting educated about some of the things in his history i think people will start learning about. >> i think that what the republicans should not have done and the democrats should not do in the fall is to try to turn his voters around. they should be going to the electoral saying, this is what this man is saying what it will do to you and bring out your voters. i don't think you will turn around a lot of the trump voters. i think you bring out your crowd. rather than under estimate, address the issue that he was touching upon. which were resonating.
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charlie: you know that drill about american establishment yourself. >> it's part who defines the establishment. according to trump, barack obama is the establishment but according to many of us that supported him, he was able to take the establishment and establish something different. we first would have to define who will define what the establishment is. in his mind the establishment was barack obama who he says wasn't born here.
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i marched on that gold plated building on fifth avenue. charlie: you never been on that yacht? >> i was never invited. charlie: dan, [laughter]. i bet you won't be in the future either. >> i'll be afraid to go in the water at this point. charlie: there's a big piece in your paper how the clinton is gearing up with a lot of negative stuff on him. quoted or someone said, that bill and hillary think it's going to go right down to the battle with trump if he's the nominee.
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number two, he's totally unpredictable. he will say anything. remember, when she was attacking him and using him as a punch lime at one point, late last year, donald trump started saying things that republicans sort of stayed away for years about the clinton behavior, about sexgate and monica lewinski. she stopped talking about donald trump after that. hillary clinton is sort of a color within the line player as a politician. that is not what donald trump is. i think that's an x factor.
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i think what hillary clinton, will tap into is people that will be afraid that government will be taken out of my life to protect me and to really make sure that my kids are educated. because of what trump is saying, imagine people of color, imagine people that are poor that need their social security and other things that are facing the reality. wait a minute this guy can be in the white house and really deport me or really build a wall, or really take these things from me. that fear and anger will be just as real as what trump is tapping into.
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charlie: do you think the republican party could come out of this split in a significant way so that like it did after the republican convention in san francisco in 1964? it's a very different party? >> i think that's potential, charlie. there are a enough elements sitting out there that has to be something that people consider. we thought that this was going to be a war between what cruz represent and rubio represents. two very different views. donald trump's candidacy has scrambled that in ways that very few people would have anticipated. as you look at it, it creates an instability within that coalition that it's going to last beyond the convention. it could last beyond the election depending on how it comes out. the question about the future of the republican party is one of the very overriding questions of this election. charlie: thank you dan and maggie. thank you al. we'll be right back. stay with us. ♪
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charlie: we conclude this evening with part two of our conversation about apple. what makes apple apple. tonight a conversation with tim cook, the ceo about new products including the apple watch. >> the apple watch. >> yes. charlie: is that your baby? >> is it my baby? you know, there were lots of people that had a lot to do with. i absolutely love the product. i'm all in on it. i think -- i talked to a kid a few weeks ago. senior in high school, that got a watch wearing it during football practice, noticed that his heart was elevated.
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most ever us don't wear heart monitors, you put a strap across your chest, nobody wants to do that. he happen to see that his was a bit high, 140. he mentioned to the trainer. you begin to see the power of what wearing something -- this is not one person that i know that found this. it's now many. between that and the motivation of tapping every hour so that you become more active measuring your 30 minute of exercise or whether you're achieving active calories. these things are incredibly motivating. you don't really wasn't to let yourself down, so to speak and not close those rings. i love to health and fitness portion. i think it's a game changer. game changer for people's health.
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the only things you have to carry are your -- only really carry is your smartphone and hopefully you're wearing your apple watch. charlie: no wallet. no keys. >> why would you have? in the old days, we would have pictures of our family in our wallet. now they're on the phone. now your credit card is on the watch. we have to give the driver's license. we're not finished yet on this road. it's a journey.
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charlie: okay, that's my point. has the initial reaction in your judgment, been a home run? or has it been mixed? >> i wouldn't describe it mixed. we're ahead where i thought we would be. when you're dealing with millions of merchants. they will not change their terminals overnight. there's a journey to displace everything. charlie: disconnect the apple pay. >> disconnect apple pay. another product. another great service. welch it the u.k. as well. we'll be rolling it out to other countries in the next several months. charlie: how long did it take to develop this? when did you decide we got it right? >> it took years. my iphone is over here. up know about touch i.d. touch i.d. -- it was the foundation of apple pay. you needed to authenticate with a fingerprint. we now going in it was not a great experience. we wanted to make it simple. if you want to pay with your
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phone, you just use the phone and touch i.d. and boom, you're done. with the watch, it gets simpler than that. we started working on this really back several years before we launched it. it takes years to do. charlie: could that capitalize the iphone? you thought about it. >> the great thing about -- we don't worry about cannibalization. when we put out -- when came out with the ipad, everybody was saying it will cannibalize. everybody said it would cannibalize the mac. the iphone, people said it would cannibalize the ipod.
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with everything we do, people automatically worry. our view is it somebody is going to cannibalize, i want it to be as. charlie: it's ok as long as you do it. mr. cook: exactly. we are all about that. 80% of my messages i use voice. i take phone calls from here. people increasingly will do that, even more, over time.
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charlie: this opens up a major area, the medical world. a connection between patient and information and testing. you look at how much of the american budget is spent on health care. this is your key. mr. cook: this is us getting into the wellness piece of this. it is clear, as we pulled the string, it is leading us to other places. i know you are talking about research later in the week. it was a matter of getting into health and pulled the strings and understand what is missing in this and honestly we found that field to be interesting because it is all closed up. it is perfect for a company like apple to try to make things simple and elegant.
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what we have planned, it fire is the starting gun for everybody else earlier than if i keep it a secret. i have a longer lead time and i would like to protect that. [laughter] you're trying to get me on every turn. [laughter]
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charlie: i paid money for this watch. i want to know what i can expect. mr. cook: just last month, we released the new os that enables native apps so they run from your wrist. they don't depend on your phone. that will unleash significant innovation in the developer community. that was one of the key drivers of the ecosystem. we think that is huge. charlie: you still program it from your iphone. mr. cook: yes. but the app will run on the watch. it is taking advantage of the system that we designed. charlie: does it have the potential, in your judgment, to be as significant to apple as the iphone? mr. cook: it has the potential to be huge. i'm not going to forecast -- charlie: it's of that dimension. if not 60% of revenue -- mr. cook: it has the potential to be huge. charlie: a big bet this can deliver. mr. cook: sure, because when we place our emphasis on something, we not only decide what we are working on, it means we did not work on something else.
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so there is an opportunity cost to doing that. if so we are a believer in wearable technology and the wrist in particular. apple watch in particular.
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charlie: when you fail, i'm not sure this is a failure, apple maps, how do you look at a failure? mr. cook: it was a learning experience. we did fail. it was a failure. we put out a product that did not meet our own expectations and standards. it was a mistake. i'm not going to come up with an excuse. there is no good ones. it was a mistake. charlie: did it cause you to question the process? mr. cook: it causes you to be introspective about why. it causes you to ask those questions and make sure it never happens again. it is not the first time we failed. it won't be the last. i'm not naive enough to think we won't screw up again.
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charlie: if you don't fail, you're not growing. mr. cook: the world did not end. but we disappointed our customers and we don't like that. we disappointed ourselves immensely. it was not up to our standards. since then, the product has gotten great and i'm really proud of it. ♪
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mr. cook: we did shoot off a leg. we actually suggested they use other products. we suggested it ourselves because we are honest, we are intellectually honest. we can say we screwed up. let's do the right thing by our customers and helps them. charlie: i bet this was a big topic one monday morning. mr. cook: it was more than one monday. it lasted for a while. [laughter] charlie: then there is apple music, which is also something new. itunes changed the face of music. apple music can't do that. you already have spotify.
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all you can do is find a place, or not. mr. cook: no. music is deep in apple's history. charlie: you changed it. you had a founder who love to music. mr. cook: we have many people here who love music. music has moved culture. it has pushed culture. we would like it to push it again. charlie: pushes politics and revolutions. mr. cook: and inspires us into action or to work out, whatever our thing may be. music does a lot of things and what we saw was people's purchasing going down. people are, some people are getting music free. some of those things will probably continue.
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there is also people that want a variety of music. a broad range and a want curation, not by zeros and ones. this was something we saw in beats. they had the idea, and they were putting it into practice, that human curation was important. in terms of how you feel. the sequencing. there are things computers can do and things humans can do. this requires both. if you only do it with machines, you wind up not with a feeling you do if it is human curated. djs have known this a long time. that is their thinking. and they get paid money to do it. you feel different. you should feel great when someone is really curating it.
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charlie: will it have the same impact as itunes? mr. cook: i think all have a broader impact. charlie: what you are doing is bringing it together. mr. cook: we are. artists can interact with their fans and release things that are not in the formal sense of a song. fans can listen to those things. they can listen to music, they can get these incredible playlists. you should listen to it. they are really great. you can get all of the music in the world, essentially. and we are seeing people being satisfied with it. we've had, we started at the end of june. we gave people 90 days for a free trial. we are seeing the first people coming off the free trial into the paid service and feel great.
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charlie: so the returns are good. mr. cook: they are exceptional right now. charlie: the test is commitment. mr. cook: exactly. think about the problems with music today. it's very hard to discover new artists. before itunes, we were driving around in our cars and we were listening to the same five cds over and over again. you would never replace a cd. none of us did, hardly. you listened to the same song. before that it was the walkman. now, over time, what occurred with itunes and purchased music is most people begin to listen to the same music over and over again.
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you really want to go to a music service, apple is the best, that gets you to broaden what you are listening to. and you want the new artists to do fantastic. charlie: turning to video and apple tv, there are those who believe video is the new battleground. you have talked about television as being locked in the 1970's. you made an announcement about apple tv, giving new power to the setting. a little bit. people raise interesting questions as to when is apple going to create more content? they worry about getting the
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networks online. tell me how you and apple sees the future of television and your role in it? mr. cook: the future of television is apps. specifically we think people want to watch their content when they want to, on the device they want to, and where they want to, not be a slave to the tv guide. and so we think linear tv will erode. when people want to watch a charlie rose interview, they will ask siri. several may come up. pbs, you may have something on 60, bloomberg. cbs.
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all of those might pop up and it will and i will select the one i want. i may have been told that work about a great charlie rose interview. i don't know where it is. i don't know which one. you are on all four. sometimes the same one is on. sometimes they are unique. i would like it to show me those. and so search has to be incredibly easy and at a different level of detail than what is thought of today. today i might need to know the show name. i might not know. i might know it by you in stead the show. we have made discovery on apple
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tv easily. we have made input go from moving around really crazy on picking alphabet, letters in the alphabet to be by voice and we are down in the meta data. i might want to watch films about my favorite actress. i might want to watch a comedy. show me the latest comedies. today we have an enormous amount of content. we have 700 channels. we don't have anything to watch because we don't have the time to go through 700 channels to find it. mr. cook: we are trying to take all of that clutter away and make it simple. in the beginning, we've got netflix, hulu, showtime, hbo, that will be searchable when we start shipping. they will be on there. others will rapidly come. if we can do something to be a catalyst for that, we will do it.
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meaning if we can see a way to get the world to move in this direction faster by playing a role, we will do it. in particular, charlie, think about the presidential debate tomorrow night. it would be great instead of having a focus group of 100 people, in a room somewhere, telling us what they thought, it would be great to source the american people on it. if you have a convergence of tv and apps, you can do that instantly. the 20 million people watching. charlie: you can tell what the american people saw. mr. cook: while it's happening. i will be sitting watching and i will have my ipad in my lap monitoring different social networks to see what is going on.
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i'm not really participating. i might want to vote on something. or if i am watching a baseball game, i would like to see the stats. i don't just want to see the game, i want to know the stats. mlb has done a good job overlaying content because they know their customer. the point is tv will become not a one-way communication, but it will become much more social. there will be more information wrapped around the content whereby people are participating with it, not just listening one way.
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so take a kid's show. "sesame street." the truth is i would love my nephew to watch that as long as he is participating, learning something. today those environments are different things. there is a tv and the app. they should come together.
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charlie: so if we are looking for apple to change television, the primacy of apps. mr. cook: this lays the foundation. it raise the foundation. when the walls are put in and the art is hung, it will be like when we created the ecosystem for the iphone. people did not have a clear view of what the app store was and all of a sudden everyone was saying there is an app for that. this is happening. this will happen to your tv. today instead of going to your dvr, having to know you want to watch this show, you record it, and the game lasted longer and so you lost to the most important two minutes. all of that is gone. everything is on-demand. it is interactive. this is a change in the way -- charlie: it is the notion somehow in the apple watchers of the world, they have their own everything, you know. that's how you learn about the rumors.
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is there something big in the laboratory? mr. cook: there is always something next. this is the foundation. charlie: what is next? mr. cook: that part i'm not going to answer. charlie: but you know. mr. cook: i do. a group of drunken sailors would not have invented this tv experience. you have to know what you're going to watch, or you are a slave to the time. i don't want my tv to be my boss.
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i don't want to know because what i want to watch, if you tell me the next day you saw something really cool, i want to go watch it. i'm paying that bill. i want to see the show. today i've got to go record it and then, by the way, because there are so many ads, some people are fast forwarding through it. you think about all of this heavy infrastructure built around making the experience better. we are developing technology to change the process instead of looking at the whole thing. it's actually a sea change. i don't think your living room has changed in a decade. i think it is a sea change.
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absolutely. charlie: every apple product can be bought at a retail store. you have more profitability per square foot, i'm told, then anybody. $4,700 per square foot. i know you labored over the design of the store. the feeling of the store. the connection between purchaser and seller. mr. cook: the key is profitability is not our goal. our goal is customer experience. the profitability is the end result. it is a side benefit. the important thing is to put the customer front and center and to make the apple store a place to explore and discover new products, a place to get help when you need help.
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the genius bar came out of that. a place to maybe want to sit through a seminar. maybe want to know how a movie is made. maybe want to learn how to write an app. it's a place to learn. charlie: you can do that in the store? mr. cook: angela is making it a big piece of the community it resides in. and so the store is not the right word for them. there is some business that takes place, but that is actually a small percentage of the activity in the store.
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charlie: what do you want to call it? mr. cook: i don't know. we haven't come up with a good name. ♪
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is known here in hong kong. two of wall street's biggest names are losing. goldman sachs and bank of america will both dismiss traders. has begune regulator anz which isgainst accused of manipulation.

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