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tv   Countdown  Bloomberg  January 7, 2014 1:00am-2:01am EST

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what do world nausea largest smartphone -- >> the world's the largest smartphone manufacture posted a profit. chen talks about the first job he had, head. >> i personally love the keyboard spirit of -- keyboards. i wouldn't use the word exclusively, but predominantly. >> treasury secretary jack lew heads to europe to push leaders here to follow u.s. banking regulations.
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>> hello, welcome to "countdown." i am mark barton. >> and i am an edwards. -- anna edwards. blackberry is looking to the past to brighten his future. how their newn ceo is driving a return to physical keyboards. the details ofs the profit samsung prayer to >> how to 1000 u.k. businesses feel about the economy? we dig into the latest report by the british chamber of commerce. and jack lew's agenda as he stops in paris. onemphasis is back keyboards. that is according to ceo john chen. chen is trying to rebuild the
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company after blackberry's 10 touchscreen models fizzled with what customers last year. it contributed to the means of dollars of write-downs. the return of the keyboard. >> i'm not going to hide it. i have been a blackberry user and i was sort of wondered what happened to a company when every new model they come out what -- out with is a little bit worse than their preceding model. as a fan of the keyboard, i had a big issue with not only the touchscreen but also in blackberry did that. even the hybrid ones. you did not know where to press and it was always making errant phone calls. >> and inconvenience. >> it is very inconvenience. probably not inexpensive. definitely awkward. it turns out i'm not the only one that likes the keyboard to be part of the package. like very is a company that now intends to turn -- return to its roots. >> i personally love keyboard
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spirit and so you will look to blackberry going forward to keyboards. i would not use the word exclusively, but predominantly. much of an of how emphasis they're going to put on the keyboard is that they're suing it a maker of a snap on keyboard. you take your iphone and you can step this new keyboard called the typo created by an upstart, founded by ryan seacrest, the founder of "american idol." they are suing that company. the keyboard has not actually come out yet because they say it violates their patents and their designs. it would infringe upon them. it is evidence that they think that this is a, profitable and b, robin will to their business -- important to their business. >> ironman is promoting htc phones. it was a year ago when alicia keys was wheeled out. was it a partnership that works?
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>> i was never a alicia keys fan but one day i had a lot of time on my hands and i was going to places you don't normally go on your blackboard and i discovered one of her songs on there. she's got "empire state of mind." a lot of users out there were in an android estate of mine. the consumer has been lost to an extent by blackberry. they're going after governments again -- >> he focuses on security, as well. likes massive, naturally. they have very good security. they're focusing on governments and corporations. one of the things that will be an issue is that a lot of corporations have migrated away from the blackberry because their employees did not wanted. -- want it. a lot of companies have a bring your own device policy. that is going to be the big issue going for.
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maybe they can return. it is interesting when innovation tries to use an old idea to reinvent itself. even if they're able to pull it off it is interesting to see if the companies will have that. announced they were going to partner with foxconn. it removes the inventory problem which of course laster cost them billions. theirple are still using blackberry for all their staff and currently evaluating where to go. it becomes a little bit easier to government if that is what they want to do. >> it is in some ways excellent for companies. they don't have to either devices for their company. likes thank you very much. --es to samsung dropping reporting a drop in profits for the fourth quarter. caroline hyde joins us for more. first profit drop in nine
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quarters? >> profit is down by some eight percent but it is also the sales group you have seen in the same amount of time in more than two years. not great figures. it is because they are being squeezed from the top and bottom. apple stealing a market in higher-priced smartphones. the galaxy s-4 is really the flagship phone. by a quarter in the fourth quarter. million in the first weekend alone when it went on sale. we will see what china mobile will do with apple. that will only eat into market share. it is the dominant player in the world but this is a competition from the bottom -- top. you also have competition from the bottom, the chinese
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companies that are offering much cheaper phones and driving down average prices. you have saturation of the high- end and you have competition hitting sales. this is not only of phone maker. , tv units.isplays when 13 was not a great year for tv sales. chips is the one area of growth. what investors were inspecting, have they been bracing themselves for a slowdown? >> they seems to have. look at the share price merit since december 24 to january the third. while we were having christmas destinies, -- >> -- >> the share price is down by a most 10%. billion wiped off their market capitalization. it is more than the entirety of htc, lg, and blackberry market
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capitalization altogether. they been expecting's competition. it is worth noting they have given a nice bit of bonuses to their employees. some $655 billion. that is what has eat into the pockets -- eaten into the profits. they have new innovations coming out. >> what are they doing mary? -- mary? -- there? >> chairman of samsung is the world's most richest man. the country's of gdp. he is urging his companies -- his employees to innovate. wearable devices. remember the galaxy dear? i tested it when it -- galaxy dear -- gear? it can now troll a bmw.
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-- it can now control a bmw. >> wearable devices will be the big thing this year. >> caroline, thank you very much. this is the uk's largest business survey and has been closely followed by the treasury. jonathan joins us for more. >> i think we have seen all of these big numbers coming out of the uk's economy and the survey really gives a sense of it on the ground. have produced a pretty strong report, whether you're looking at manufacturing, service, or confidence levels or employment levels. are of these readings actually back to pre-crisis highs. it points to some strong growth for the last quarter. it could be north of .4%. you want them to go out and hire and invest. it looks like that is there and
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crucially, it looks like that confidence will be there in 2014. twice it is a positive report, reading the summary. hard forto hunt negatives, but there are a couple of areas -- a they are there and they're risk to outlook, confidence or no. over the last five years, the big one has been a lack of access to bank financing. it continues. a lack of access to credit, particularly on the cash flow side. you could be profitable and be a strong business but if you have bad cash flow, it is really going to choke you off. that is what they're facing. that stories and the hard data. we saw last week. we saw lending to businesses for the last -- the month of november actually slumping. it is not be financing, it is the fact that many of these businesses are telling the bbc that they may have to put up prices for higher overheads. higher raw material costs as
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well. a strong currency can offset that but really this is a conservative >> they are able to put up prices. >> the bank of england's targeted inflation rate was just beginning to come back towards target. but he of food for thought for the bank of england and treasury. >> we will have great insight into this latest quarterly economic survey. that's coming up later in the show. >> u.s. secretary of the treasury jack lew was in paris today to meet the french president. is the first leg of his trip which also includes stops in berlin and lisbon. now.nichols joins us what is it message going to be to the europeans? >> he will have two messages. jack lew will played bad cup in the first two countries and annual play good cop -- in the
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third. they will be resting for more labor market reforms. in germany they will urge them to spend more. in portugal, you will give them a big hug and pat on the back and encourage them to implement their rescue plan. this is his first trip to germany since the treasury report came out two months ago. he came pretty close to labeling germany a currency manipulator. this will be germany's opportunity respond but the message is spend more. do more to boost aggregate demand. in many ways this is the same message that the obama ministration -- administration has been pushing since the beginning of the crisis. it was the same dynamic. the u.s. wanted germany to spend more. he would just be going to the continent. no trip to the u.k. nothing planned with merkel. that was the case before merkel was injured.
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there will be a little bit on traded talk. we'll press for the transpacific partnership, the transatlantic partnership, and just a little bit on banking union. >> banking union is important. he does not want his banks, the u.s. banks, to be at a competitive disadvantage. tothere are two aspects that. they're the cap additive this advantage and that is why he will be pressing especially in germany, and also to come together on some sort of banking union. look for potential fireworks on the strips and it could happen tomorrow when he has that press conference. treasury officials are also saying that jack lew is also going to listen. he was an update on just what to new coalition is doing spend, to boost aggregate demand. also, what the new minimum wage is wage law will do. >> it will not be one-way traffic. the u.s. -- the europeans could
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talk about the u.s. debt ceiling. >> i suspect they will raise that. lou's answer will be -- lew's answer will be what was always along which is the u.s. will not default on its debt. >> hans nichols live in berlin. wife i had, stormy weather they have bumped down flights but it has to lead -- actually boosted online sales over the holidays in the u.s.. we will look how big a bump of e-commerce got on both sides of the atlantic. recreational pot in colorado. ♪
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i am an edwards. >> and i am mark barton. not always aer is good thing but it actually helped online sales in the u.k., especially clothing. we are joined by sarah. happy new year. the fourth quarter, december, was crucial in spending in the u.k., not just for the fourth quarter but for the year as a whole. likes absolutely. we saw an improved rate versus
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last year. i think that is exciting to see 2.4% for these bending your growth -- for the spending your growth. growth. spent?e was the money >> the one thing men like to buy for women was jewelry. it was the number one category. if you did not get jewelry, you should be complaining. that was the category were sought real growth. the number one spending category for the month was grocery. it shows that we are social people and we wanted to be as family. goods are not as important. andbig losers were apparel electronics. >> that is interesting. electronics not being a winner -- you are saying people spent less on electronics in december than they did in the december previously despite all of the talk about cap was having a good year? >> amazing because of consoles coming out and compared to last
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year, there were a lot of new things introduced that you would think people would come in to spend. in this case, no. it is a commodity roddick. as a something people can easily go online and buy and compare. it has driven the prices down. volume is up but actual total sales are down. yout the grocery category, are on the experience around the holiday rather than the gift. >> right. i think we have seen this again and again. that is the real post-recession change that we see in the consumer, that they make the choices of what they're going to spend. restaurant spending becomes an important part of the budget as opposed to thinking about things. >> talk to me about discounting because there's a lot to be made about discounting by the big retailers in the run-up to christmas. was it more than serious years? -- previous years? term impact ofong- that have? your discounting something away
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to you continue to discount. i will never paid in oral price again. >> it is the exact problem. able field will be a better price tomorrow. and i you can make the comparison shop online easily. and now you can make the comparison shop online easily. have we should just seasons -- two seasons -- summer and winter. forget fall because people just roll on a sweater anyways. the price index for apparel that we run on spending pulse is down on a continual basis and we have seen that down. people bought footwear but they did not buy men's and women's apparel. >> what is the impact of a more informed consumer? >> a strong double-digit gain in online. one of the things u.k. that is interesting is that we would see dips in growth rate of online spending versus other countries that we followed. from that perspective, to see that the u.k. is really embracing this channel is
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extremely important. the difference will be that the retailer that is able to move on the channel between the bricks and mortar to the online and back and make it a seamless experience for the client. twice like john lewis is doing. -- quacks like john lewis is doing. >> that will be extremely important. the client what to shop where they want to shop and when they went to shout. >> thank you very much. >> a teleprompter failed that last night's samsung presentation. ♪
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>> welcome back to "countdown." i am mark barton. >> the 2000 14 consumer electronic show is in las vegas and there is art event headline news. >> in fewer escape, and what i try to do, as a director, i try to -- ugh. the type is all off. sorry. i will just wing this. >> tell us what you think. as we will wing it right now. >> i try to take people on an emotional ride. >> the curves? how do you think
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it is going to impact how viewers experience your movies? >> excuse me. i am sorry. i'm sorry. >> ok. ladies and gentle man, let us think michael bay for joining us. >> director michael bay was supposed to have a scripted conversation about samsung's enormous 150 inch television but when the teleprompter failed, he walked off stage leaving the with ave vice president rather awkward moment. a little bit of time to kill. story touches a nerve in any newsroom because -- >> you feel for him. now and again, but you know, do you feel sorry for him? >> i do feel sorry for him. i recognize that most people don't feel sorry for him. apparently he has a bit of a reputation which i am not aware of. it allows me to feel sorry for him.
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reputation is that he is kind of an arrogant guy. there is no skews for arrogance. i do feel sorry for him. no one wants to have a meltdown or should feel good about someone having a meltdown in front of them. ask what expedition is given? >> he said, wow, i just embarrassed myself at cas. -- ces. i was about to speak for sansone -- samsung. this one is just dollar -- stellar. i got so excited to talk that i skipped over the vice president's intro line and the teleprompter got lost. about this nowg because the teleprompter went down and he went off stage. would be talking about if he was michael bay promoting a television? >> the rule of thumb for the executive out there is even if you're using a part -- a proctor, f-3 bullet points on a ease of paper and -- have a
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three bullet points on a piece of paper. anna'sill with teleprompter away as if she walked off set. ♪ >> these are the bloomberg top
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headlines. janet yellen has won senate confirmation to replace ben bernanke at the federal reserve. she will take over at the end of the month. she has pledged to press on with the economy all season toll of the economy has reached full recovery. ireland is set to return to the debt market with a plan to sell at least 3 billion euros of 10 year bonds. the treasury could a lot the security as soon as today. exited an international bailout last month. it could be the coldest day of the 21st century in the united states. transportation methods have been
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strangled as much of the country's under snow. record with a temperature of -27 degrees celsius. >> welcome to countdown. i am mark barton. >> china is cracking down on shadow banking with mounting concerns over the region's banking systems. john joins us with the latest. china is trying to clamp down on shadow banks which really is outside the normality of thinking. property prices so high and they want to bring those down.
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this is according to three unnamed sources. the government is looking to clamp down already and this is part of the next action. they're going to be regulation designed to avoid loopholes. fiveank's will allow privately owned lenders is here. it was tricked lending to developers which --. a lot of these companies rely on -- money-losing industries rely on the shadow those that like to roll over their debt. what of the biggest concerns is china's that. no one knows how bad or how much it is. it is one of those elephant room -- elephant in the room that you must discuss.
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they must have their own capital set aside to have buffers against anything goes wrong. all this is being talked about. from three unnamed sources that told bloomberg. they would be named because the government is very controlling. >> thank you very much. >> will 2014 hold for the financial sector. let's talk about the s&p 500. we don't was a record year last year. will it continue? >> we just got over christmas and it will be a dickensian year as far as the s&p is concerned. what do we mean by that? geopolitics and euphoric extremes. we're going to guess a 10% correction. it is going to be short, sharp,
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and hard. it will die by almost -- more than 10%. and then new highs. alleluia! i bring you tidings of great joy. up 10% by the end of the year. that is a dickensian mood. god bless the dollar. growth is for the 3%. unemployment before -- below 6%. you will see the euro at $1.25. you will see the yen at 120. >> what you think of the japanese economy? only leader that understands dick cheney. not many people do. he was right -- deficits do not matter. the nick i will trade up to 18,000 -- the nikkei will trade up to 18,000. that it will have a 20%
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correction. >> and these are things you -- he thinks are going to happen? >> yes. >> he's also got once it didn't quite make the list and bitcoin is interesting. >> if you think about the volatility of bitcoin, it is not real, is it? bitcoin lacks goals. give me a lovely gold. you and i can argue about what it is worth. we can touch it, feel it, understand it. bitcoin? it is not an acceptable collateral. it cannot be used as collateral. the prince will use of bitcoin is a legal business. it relies on anonymity is a key part. those are his words according to byron wing -- wien. quite like cuba.
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obama will indeed overcome his objections to the cuban exile community and open discussions. trade and the dramatic -- diplomatic relations with cuba. >> it will fall began shaking mandela's funeral. -- it will follow the handshaking at mandela's funeral. on january 1 it became legal to buy marijuana in colorado for recreational use. hundreds of people bought it last week at about three dozen stores in colorado that had been granted a license to sell marijuana. the drug has a repetition of being safer than others but a new and controversial method of getting high has some in the new marijuana business worried. >> it is a new twist on an old high. >> this is blowtorch. >> this gets it done very quickly. >> it is packing a heated punch. mike's very clean, very.
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a lot of people feel this is the new way of cannabis these days. a blowtorch to get a super-concentrated hit of thc, the chemical in marijuana that makes people high. >> along the sides you will see all of our mothers. made up of flowers 13%- has anywhere from say 20% thc. the extract that we have here today is around 90%. wife's 90%? -- >> 90%? drug made moreme potent through chemical into nearing. >> it is a concentrate of camera this -- cannabis. tankerything goes into the through the top and washes over the extraction. the material comes out of the bottom into the collector which is right here. >> what is left behind is a
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sticky, almost pure glob of thc. it is called butane hash oil. >> this is the concentrated cell. it sell.trate you will up until it is red-hot. once a get to that point, you will put that dome on it and the dome basically captures all of the smoke. >> recreational use of hot is now legal in colorado and washington state. that includes dabbing. the marijuana legalization movement's messages always been taught is safe, but as these striking video show, amateurs have caused explosions while trying to make butane as oil in home kitchens. there have been reports of dampers passing out from intense high. for --ers passing out
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from intense high. >> i have heard people call it hero-juana. let's do it responsibly, let's do it carefully. >> some people are kind of put off by this. it is scary-looking. does that hurt the industry overall? like i think the naysayers and people opposed like to use this as ammunition and like to say there there are low torches and fire and danger. marijuana has never killed anyone. dabbing oil is more expensive than pot flowers. a gram of oil costs $50 versus $18 of the gram of pot. because of the hike concentration, a little >> goes a long way. a gamble to you. regan, bloomberg news, denver, colorado. >> no, thanks. divers new testing ground is a
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former shooting range. ♪
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time per day's committee
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news. samsung posted its first rock the decline in nine quarters. apple's new iphones captured the high-end market. the phone maker also suffered as competing makers sell handsets for as low as $100. boeing has reported record jet delivery for 2013. the playmaker handed over 648 planes, a seven .8% increase from 2000 well. the most ever in a single year's. two managers at a goodyear tire plant in france have been taken hostage. they are being held by union members in a conference room. goodyear employs about 3000 people in france. in january last year, the company announced plans to shut down the factory. >> welcome back to "countdown." --deibler executives have changedtives
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nato training ground into testing grounds for their vehicles. quest on these wide open where nato infantry once trained and they see when, they can convert into a proving ground for new vehicles electric, driverless -- what they want to bring to the futures. executives have mapped out a plan for more than 1000 acres of terrain even the black force. >> this area is highly important . i think it is very important for the nature and the protection of nature. >> this installation where tanks are washed clean will be modified into a mini-city. range willshooting turn into a test tunnel for
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lights and a clearing in the forest to let loose driverless cars. develop an area we can all their -- while they are driving an evolving future of our country -- company. the mayor is eager for an estimated 300 new jobs. >> the main test track will circle around these roads of bunkers. there are 36 of them. if you will have to be demolished but the rest will be converted. it is all part of the biggest land transfer of military property in german history. in the u.s. and written, closed cold war bases that totaled 143 square miles or six times the size of manhattan. some investors envisioned luxury homes. others, acres of solar panels. mercedes will make fewer changes. some modifications will be my -- necessary. these will be hauled away to
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another tank graveyard. newsnichols for lou berg -- bloomberg news. >> he joins us now from berlin. how does this transfer work? what happens is that the city gets first dibs. in munich, you can see where they have a bit of a housing shortage. the actual city has taken over and they will build more housing. the same thing in heidelberg. they're converting the old mark twain village into what is going to be student housing. in berlin it will be can -- inverted into -- it will be converted into student housing -- luxury condos. this fits all of mercedes's criteria. the town is eager to come in. it is close to stuttgart. they can train all of their cars
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there. even you can go down and have a bit of an accident during no one is going to mind. it is just a wide open space. >> what is your favorite conversion? the actual base, you have to like the fact they are converting the old bunkers into quarters for bats for bad condominiums. in 2010 there was a base that was changed in south into illegal land. this can be converted into just about anything. -- into a legoland. this can be converted into just about anything. watch a story for the next two years as the german government working with the city makes decisions about what to do with some prime real estate. >> anna is intrigued by the bees. -- the bats, sorry, not the bats. the bees are in my head. that that part of the land mercedes is taking over? doesn't have anything to do with the cars or is it an environmental sideline?
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>> no. mercedes likes the properties because they don't have to deal with too many by environmental regulations. there could be pollutants in the ground up at these augers that are in the middle of the base. -- bunkers that are in the middle of the base. they will take out some of them but the rest of them will be converted into that condos. -- bat condos. that -- bats can hang out. do what they do. --ting loose driverless cars oh what a driverless car be better than me or not? >> no. like you have never seen me drive. ♪ >> welcome back.
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time in london is 6:51. just over an hour away from the start of most european trading. ryan and caroline are here. we teased you a story. >> we mention it just before the break. i like the headline on this. the two photos in the middle go with the story. love --need is -- not 14 million pounds to buy john lennon's home. fame isatles frame --
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to live in this home. it is thought that he wrote a number of the tracks on the album "sergeant peppers lonely house club band -- hearts club band" in the house. i don't know if that factors into the nearly 14 million pound price for this house. the view was good. included in the statement from havestate agent, they landscaped gardens and grounds and it enjoys uninterrupted views. it should say of what, i assume, is what i assume. he bought the luxury home for 20,000 pounds in 1964. in 1964 that was a lot of money. for almostoing to go 14 million pound i also like
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that the home has been refurbished. like graceland. where elvis presley lived. in --t i'm interested >> would you be inspired by it? >> the house actually has a cast of famous history of it. it is called kenwood because it is named after can -- ken wood who invented the food mixer. >> an excuse to bring you some cake. if the cake on, by the way? she brought in a christmas cake. >> i thought i would inflict it on my work colleagues. i have not devoured it all yet. >> from cake to the demand for
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colorado cannabis outstrips supply. you have effectively a financial paper covering marijuana not too unlike they cover any commodity. >> we ran a story on a bike trish regan. she was talking about a threat to the business model. >> i find it extraordinary. they even got comment from the trade body which is called the national cannabis industry association. they have a run on these places selling the stuff. lines,are going up, long stores are selling out. the price has gone up almost two full to they started selling it. >> if you legalize it in just two parts of america, people start -- people might gather in those places. an issueis a point of of vertical integration. now we are going into the business law. the places that sell it after
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gross 70% of it and they're only allowed to buy a small portion from other growers. expect them to grow a whole lot more in the future. >> have you been to colorado? >> i have. the one thing i thought -- find slightly distressing but this photo. are any of these people going to go skiing under the influence? that would not be good. switzerland,and they have a little bit of schnapps before they hit the slopes. why would it be any worse? some steps before you went -- schnapps before you went skiing. >> not before. maybe a little bit after. this was in "the guardian. this is about being held hostage. last year calls us back. he called french tire workers lazy. he says they only work for three hours.
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the goodyear factory is back in the press because they are now dealing with a hostage situation and they are holding two executives, a personal director and eight manager, hostage. them andholding demanding an enormous amount of honey. it is all peaceful and they give him water and they are allowed their phones. >> i think we could do the same the- what their editors but night in their phones. >> i did wish be very nice to the personal roles our prompter. >> cinemas hit by lack of blockbusters. -- the u.k. box office was down for the first time in 10 years. the biggest film of the year -- "despicable me to." miserables."s "les >> the year went by so quickly.
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"countdown." continues in the next hour. teleprompter failed prompted a walk-off at last night's samsung presentation. ♪
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>> the following is a paid presentation. >> it is about time. >> the number one reason people not working out is they don't have time. >> i have four kids. i work 60 or $70 a week.


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