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tv   Varney Company  FOX Business  January 5, 2024 10:00am-11:00am EST

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stuart: look at that. sixth avenue is deserted. it is empty. extraordinary. i do feel good by james brown. 10:00 eastern, straight to the money. we have a turnaround. when we opened the market we were down and we reverse on the upside, 65 up on the dow, 49 for the nasdaq. we've gone down on the strength of a strong jobs report and we turn that around for the 10 year treasury yield has risen above the 4% level. i got it wrong. it was $4.07, now it is all the way down to $3.98. that is why you have a bit of a rally in the market, $3.98. the price of $74 a barrel this a barrel this morning, 7403. bitcoin 43, 44,000, 43-5 to be
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precise. the latest read on the services sector. what we have? lauren: much weaker than expected, the service sector expanded, 50.6. it fell from november, still expanding nonetheless, the inflation component of this is prices paid for the services fell for the third month coming in at 57. 4. weakening of the services sector with a weakening in the cost of those as well. stuart: i would expect that to lose some good for the market. is moving a little. lauren: factory orders stronger-than-expected. stuart: prices paid 3 months and arose a positive i would think. now this. the president has a new campaign strategy, going on the attack coming out swinging against donald trump. in a speech in valley forge, pennsylvania he will call the former president, quote, a threat to democracy.
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this speech is all about january 6th. monday of next week he goes to charleston, south carolina visiting the site of the racial shooting there 9 years ago. later this month he marks the anniversary of the dobbs decision which reverse roe versus wade. that is the new campaign. attack on january 6th, attack on guns and race, attack on abortion. after three years in office, that's a thin list of issues for presidential campaign. it seems desperate. last year, he tried running on bidenomics, he stopped using that word by november because biden's economy looked bad compared to trump's. 's got nothing to say about the border crisis which he started. he gets inflation dead wrong and leads a bitterly divided party. i want to pick up on biden's threat to democracy theme. i would suggest the democrats attempt to kick trump off the ballot is a serious threat.
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you don't preserve democracy by denying citizens the right to vote. is an open border 30 democracy? i think it is. millions of migrants are breaking the law. i thought the law was central to democracy. let's not forget the democrats attacks, highly politicized judiciary that's clearly out to get biden's opponent, that's not what this constitutional republic is all about. biden go negative. inevitable given that there's nothing to be positive about in biden's world. second hour of varney just getting started. guy benson with me. how effective do you think this strategy will be? >> reporter: they realize, almost conceding with those events and those themes you mentioned that they have a problem not just with independents what core elements of their own base.
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you will see more giveaways and attempted student loan forgiveness to young people as well, they will try to push certain buttons and use certain policy levers to bring people back on the side and reestablish the coalition they gathered successfully in 2020. stuart: is a going to work? >> i don't know. of the election were held soon i would say they have work to do but they will spend nine months and billion dollars trashing donald trump. we will see where we end up assuming trump is the nominee in the late summer. >> nancy pelosi wants president biden to get out on the campaign trail. watch this. >> we've had holidays. the campaigns are beginning now. this is when people will pay attention. people don't vote for you because you deserve it but what
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you have done if, the legitimacy to say this is what i will do. stuart: speaker pelosi says get out there. seems like she is mocking the basement strategy. >> a couple points on that. i do think she is skeptical the strategy attack attack attack you outlined will be sufficient. seems like pelosi thinks they need to do that plus convincing people we've done these things for you, got this positive vision, give us four more years. there are two problems with that i would say. number one, the american people have been watching this president. they've been watching his policies. they've been watching the results and are very dissatisfied. it is hard to make a positive case for yourself when that is going to fall on deaf workouts and turned years for a lot of people. second problem in my mind, president biden makes a very poor messenger for himself. he's not good. when he goes out there to help
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himself i don't think he helps himself. he doesn't have the energy. stuart: one little gaff. >> he is not an effective messenger for himself and number 2 in the race, i'm not sure she is terribly good at this either. they have got a few problems. republican's have their own issues no doubt. the democrats are in a tough spot. stuart: before we say goodbye to you i want to offer my congratulations. you've just returned after paternity leave, you adopted a baby boy. >> very excited. he's awesome. his name is conrad and we are very thrilled. our hearts are full and we are very tired. stuart: it is a wonderful thing, love at first sight. you clicked just like that. congratulations. changing subjects entirely, donald trump's legal team wants to hold special counsel jack smith in contempt. what is trump saying about
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that. lauren: so many cases, this is election interference case, trump says i am immune, he has appealed, this case is on hold but the prosecution continues to work on it. they filed motions and that is where trump's legal team is coming in saying no, we should pay fines that, we should even be held in contempt of court, jack smith and i want to say an illinois voters have filed a petition to remove trump from the state's primary ballot which is march 19th, they say his january 6th actions violate the insurrection ban under the fourteenth amendment but we are talking illinois. two states, colorado and maine have already banned trump from their primary ballots. dozens more are trying to do so. that's the yellow. even in places like texas. i was shocked buys that. stuart: back to the jobs report. 216,000 jobs added in december,
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the employment rate 3.7%. the labor department in dc, what are you saying about the numbers, pretty sure you are happy about them. >> president biden says these numbers show it was a good year for working americans though he says he knows the prices are too high and wants to get them back down but this will give the federal reserve some pause this year, 260,000 jobs. last time we created that was september of last year. that is a little high but when you look at the wage number at 4. one% year-over-year, 0.4% month over month, those two things together could put pressure on wage inflation looking at where the jobs are, these are lower paying jobs, talk about leisure and hospitality and retail but look at government hiring, 52,000 jobs so i wanted to know this. >> reporter: the government sector is one of the leading job creators in this report. it was the second-largest
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sector. is that a concern and sustainable? >> the covering we are seeing with 260,000 jobs created in december, the overall average of 2023 was higher than that, these are broad-based numbers that come across multiple industries. in december government was up, leisure and hospitality was up, construction was up, healthcare was up and this is truly a recovery. >> reporter: no answer if that is sustainable but over the past 3 months the government center averages creating 50,000 jobs per month, the largest sector of employment this month, healthcare and social assistance which relies heavily on government spending. economists worry this is not sustainable. >> the fastest growing sector of the economy for the last year has been a combination of healthcare and government and university jobs, throw in that
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and those are associated with government. we've had now for the last year or two the government kind of carrying, that cannot persist. >> reporter: the big news affecting the markets in the green, the fact that this report could mean federal reserve may not cut rates as early as march if they keep seeing this hot jobs report. stuart: thanks very much indeed. let's cover the markets in more detail now. kevin, welcome back to the show. this will broaden out from the magnificent seven or 8 after the small-cap stocks. how am i investing? >> 2024 will be an expansion of the rally or rally of the rest beyond those magnuson seven stocks into areas including small-cap stocks, international stocks but also large-cap stocks in areas such as cybersecurity, defense spending is forecast to grow by 50% over
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the next decade, to one. one trillion dollars so we so we should have the opportunity for the important cybersecurity names. we want tell me about big tech, no more big gains for big tech. is that what you are saying? >> i believe there will be gains but they will be greater beyond big tech. get lost in the ai race, looking for the next semiconductor, the next ai power technology provider but what about cybersecurity. i can make the ark monday i will only increase the likelihood of cyberattacks in the new year so look at names like crowd strike or cyber arm to take advantage of cybersecurity. stuart: you think the application of a i will increase cyberattacks? >> absolutely. think about ai powered cyberattacks, increased likelihood, success rates and total amount of cyber attacks in the new year, we need to
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thwart that ai powered cyber prevention software that comes from crowd strike. stuart: you make a good case. thanks for joining us this morning. thank you. lauren is looking at the movers and you've got a star please with boeing. lauren: a defense stock. wells fargo raises their price target by $50 to 280 on boeing. they like the sector. they say this upcoming election could support defense and they added defense stocks outperform the market by 9% to 10% in presidential election years. stuart: 9% to 10%, that backs up what kevin said, good timing. pellets on -- apple 23 is up. lauren: it keeps going up. i know it is only $7 a share. i remember when it was pushing 200, right but they have this exclusive partnership we talked about yesterday with tiktok, they are bringing their workout
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content to the tiktok videos and with it, they bring in new users and eventually new buyers. people buying bikes from tiktok. we when i'm waiting to see peloton in garage sales. carnival. what's with them. lauren: they are up in a big way. wells fargo says purchase them. they are a top pick this year. they like carnival better than norwegian. they downgraded norwegian. norwegian has a us to middle east market that is sizable and vulnerable right now. with the market going up over these names. stuart: thanks. now this. south korea evacuated two islands after north korea fired 200 artillery rounds into the sea. details on that for you. russia using north korea to attack ukraine, they can 5550 miles, that escalates the situation. what should our response to that be?
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james carafanoh. israeli forces continue their assault on hamas targets in gaza and laying out new plans for the next stage of the war. alex hogan with the latest from south israel next. ♪ you know what's interesting these days? bitcoin. look for bitwise, my friends.
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stuart: a couple dow stocks have energized the dow industrial average because it is a hundred points. it was down a hundred at "the opening bell," nasdaq looking good too up 73 as we speak. israeli forces struck hundred hamas targets in gaza in the last 24 hours. they are also laying out new plans for the next stage of the war. alex hogan, the latest please.
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>> reporter: loosing three rockets heading from gaza north where we are standing, the iron dome did intercept those but all day long we've seen plumes of smoke rising in northern gaza. behind me you can see the smoke mixed in with today's a is and this is despite the fact that most of his relapse forces have been targeting central and southern gaza in the last day alone. the idf has struck as many as one hundred targets, this is by land and by sea and now we are learning a little more about what the next stages of the war could be. the country's defense minister said that israel will not govern gaza but will be palestinian bodies that should take over the strip but israel should maintain operational abilities and inspect whatever goes into gaza. as far as what we've seen in the last 24 hours in southern gaza this was the scene last night after strikes destroyed this home and as a humanitarian crisis continues to deepen, hundreds of thousands of
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civilians have fled the ongoing fighting and destruction. according to the un, 85% of the population rely on humanitarian aid simply to survive. as israel's war with hamas continue so does the conflict further north with iran backed hezbollah in lebanon. the israeli air force launched attacks in two area sitting lebanon, hezbollah infrastructure and military outposts. as tensions flyer, there are constant soldier trainings on the border of lebanon and leaders are flocking to the middle east to cool these rising tensions, the european union's foreign policy chief is expected to be in lebanon today to discuss the israeli lebanese conflict, germany's foreign minister will visit israel on sunday. us sector of state antony blinken is kicking off this multi-country international trip, a whirlwind trip around the middle east, the state department says one of the key focuses of this trip is to secure the ability to protect
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civilians as the conflict continues behind me in gaza. stuart: thanks very much indeed. retired four star general jack keane wants america to be more aggressive against iran. watch this. >> houthis checkmark, they have accomplished what they set out to do which is disrupt world shipping through the suez canal. we've not stopped it. i don't believe we will stop at just by defending ourselves. we have to go to the scores, take down the rockets, the missiles, the infrastructure, the radar, the command and control. we've got the capability to do that in a night or 2 or 3 at most if we took a more measured approach to this. stuart: james carafanoh, that from a four star retired general jack keane, that is a very aggressive stance. do you agree with him? >> i agree with that comment. if you think of escalation as a ladder when you start with
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spitballs, everybody is worried about that escalatory ladder. i think the longer this drags out the less likely that is. there is one exception which is somebody is going to kill somebody, blow up an american ship and that's going to throw things to the hood and the way to stop that is you don't escalate by going up the ladder, you escalate by going sideways and getting people to shut down. i agree with him. the problem with this administer asian's policy is the tit-for-tat response and thinking that keeps things from getting more dangerous and that is wrong because they can take this punishment and keep ratcheting up to see what they will let us get away with. you walk in and pound the hell out of them and say back off, jack. you have to go after the
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houthis and cripple their ability to attack ships in the red sea. you've got to go after all the infrastructure in syria in particular. then back channel to the iranians and say you don't want to keep playing this game and that will close things down. stuart: at this moment given the state of play as we speak, are we headed to a broader war? >> no except something really bad could happen against the us and then we would be -- forced our hands to do a very dramatic response and that could lead to things that are more dangerous was the problem is in the white house. the root of the problem is iran. the reason it is not getting solved is in the white house. stuart: the white house says russia is using missiles from north korea to attack ukraine. roll tape. >> we anticipate russia will
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use additional north korean missiles to target civilian infrastructure and kill innocent ukrainian civilians. these north korean ballistic missiles are capable of ranges of 900, this is a significant concerning escalation in the support for russia. in return for that, ukraine is seeking monetary assistance from russia. stuart: i picked up on the 550 mile range of these north korean missiles that extend the range of the war. what should our response be to that? >> two things. one is korea is the most sanctioned country in the world unless you look at the implantation of the sanctions, we should really punish the north koreans by cracking down, doing the same thing in china. implementing actions. the other thing is i am an old
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army guy. missiles or rockets don't have an infinite life span. we've got a huge stock, this is the long-range us missile that can be fired from ukrainian launchers. their shelflife has expired or is running out. hanging on is nothing. we should just give them all to the ukrainians and that will send a strong message. stuart: it certainly would. thanks for joining us, we appreciate it. south korea evacuated two islands overnight. come en in. what happened? lauren: north korea fired 200 artillery shells over two hours this morning near a border island that separates the koreas so south korea had to tell civilians evacuate immediately to emergency shelters they have while it conducted fire drills in response to the north. the maritime border has been the scene of deadly clashes in the past. what is changed now is the tone
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of kim jong-un. just days ago he said there would be a decisive policy change in relations with south korea and he said the north and the south are, quote, states at war. another, you've got the middle east, russia and ukraine, north and south korea, china and taiwan, this is a scary time. stuart: escalation all around. new york city suing bus companies to help transport migrants from texas to the big apple, mayor adams wants to help cover the cost of the migrants they transported. wall street journal, making determination okay again. all about california trying to bring back race preferences despite the supreme court's ban. bill mcgurn wrote that and joins me next. ♪ ♪
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stuart: a little green on friday morning, nasdaq is up 80 points, the dow is up 67.
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despite a stronger labor report this morning we have the yield on the 10 year treasury coming down below 4%. that's why stocks are up this morning. lauren looking at the movers, better start with nvidia please. >> that stock at $4.89 is going to $700, it think that nvidia can generate one hundred billion dollars in free cash flow by the end of next year because of its dominance in ai. it is a topic for the year. stuart: how about mcdonald's? lauren: we haven't spoken about mcdonald's and while. oppenheimer down harming them, they don't see a new catalyst. they are calling this year year of normalization for fast food. they've already hiked prices. there consumers are already tapped out. this year is going to be status quo. shares down one%. we want american airlines, don't know if they are up or down, they are up 2. 5%. telling why. lauren: they flew 8 million
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people over the holidays, they canceled 16 flights meaning every single one of their customers got where they wanted to go on time, good job. stuart: that works for a 2% increase. something to look at. i headline in the wall street journal. i will read it for you. making disco nation okay again. the losers in a 2,020 california referendum are a sneaker version. bill mcgurn wrote that and joins me right now. big open question. 's their bias against asians in colleges and in the workplace today in america? >> obviously, look at the supreme court case on harvard in north carolina. they basically limited than a evasions because of other races. that's the problem with race preferences. when you prefer one race your punishing another. asians all over the country
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have woken up to this. great sleeping giant has been awakened, the asian american community. they realize these progressive deer and affirmative-action aimed at them. stuart: what's going on in california, bring back race preferences? >> in 2020 they try to referendum to bring it back and put it in the constitution and it looked like it was going to sell, they had 15 to one spending advantage over the people who opposed race preferences but it was defeated, 57% of californians said no and than the harvard decision came out later about affirmative-action, you would think they would get the message but they are back trying another referendum on the ballot that would end up in the constitution and they just started a process, they approved in the house in california and now it goes to referendum.
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so our side to think it should be married and not race the decides these things are mobilizing now. they hope to kill it early and not let it go to a ballot. stuart: you said the asian american community had been mobilized, awoken a sleeping giant. what are they doing about this? >> they are putting pressure on politicians. i don't think they were very political in the past, but you start affecting children's future, my kids won't get into yale because of their race, people take an interest and they realize it is not just in california. in virginia they have a new plan to reduce number of asians so they see it all over the place. stuart: you and i have a strong connection to hong kong. we both lived there, both have children from their.
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i want to talk about hong kong's permanent activist and he pleaded not guilty to 3 charges of sedition and collusion with foreign countries, he is on trial, there will be no jury, this gets me very worried particularly for american business people who want to visit hong kong, tell me more. >> when stalin put people on trial he didn't say the soviet union's global financial capital, we all knew what the soviet union was. hong kong, they are making a police state, prosecuting all sorts of people, message is twofold, one is they accuse him of being mastermind behind the protests in 2019 as though hong kong people didn't want to be free and couldn't find the idea on their own. everything that goes against
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party is supposedly foreign influence, and jimmy live, the things they are producing is he tweeted this, he followed this person on twitter. he gave, did a radio address, he wrote an op-ed in the journal or the times, that's a threat to national security, that is committing journalism, what we do and i think people are seeing the weakness, when you say he is a national security threat, you think you would uncover a plot to blow up a police building or steel secure secrets and sell them, this is ridiculous. we when you and i remember hong kong in its heyday as a wonderful, free, place and they crushed it. it is a terrible thing, thanks for joining us, appreciate it, thank you. tiktok star has been ordered to stop digging a massive tunnel under her home. we will tell you.
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aspen seeing suing a designer over its influencer photo shoots, the brand sent social media stars to its slopes without permission, they are demanding they pay up. we have a report after this. ♪ (vo) explore the world the viking way from the quiet comfort of elegant small ships with no children and no casinos. we actually have reinvented ocean voyages, designing all-inclusive experiences for the thinking person. viking - voted world's best
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stuart: on the markets, green up 97 for the dow, up 9750 nasdaq despite the strong jobs report this morning. we have the 10 year treasury, goldman sachs, home depot and microsoft all dow stocks, all of them adding 88 points to the dow industrial average which is up 97. the aspen ski resort group
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suing the luxury fashion brand. kelly, this lawsuit is over social media influencers. explain that to me. >> reporter: the resort says the uk brand perfect movement sent influencers to their slopes to falsely associate their close with the club to gain reputation. aspen skiing company is suing over federal trade mark, false association and false endorsement. the trade practices and unjust enrichment and misappropriation of business value, aspen goes on to say in the federal complaint rather than buildings that reputation through its own product line, it attempts to appropriate a world renowned reputation and goodwill by intentionally and falsely associating itself with the resorts. this issue dates back to 2021
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when the ski resort sent a cease-and-desist letter to the brand after taking photos of influencers on the slope and the company took photos down. but in october of the past year the company started doing this again but this time not just with using their beautiful views of the backdrop, but rather plastering photos of the resort onto their crumpet. broke down how this may affect the case. >> that is really one of the most egregious allegations of the case. if they didn't do that and if instead this company simply took pictures in the wilderness in front of trees going down a seamount, it would be more in oculus, less leaning into the brand of the ski resort, would have put them in a better position. >> reporter: perfect moments pieces range from a one hundred dollars head band to a $590 ski suit. keep in mind the resort sells
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their own clothing as well creating more problems with the lawsuit. stuart: i can see that. thank you very much indeed. i have got some interesting stories for you. tiktok star was just told by local authorities to stop digging a tunnel beneath her house. why should i care? lauren: when you go to make any change to your house in new jersey you need a permit and it is not easy to get at you have this tiktoker in virginia building a tunnel 22 feet deep under the basement of her home for a year so she wants to build an emergency shelter. here's what her neighbor says about it. >> it is kind of crazy, kind of funny but definitely i have concerns with whatever she's doing. >> reporter: it is dangerous. she has been ordered to stop and bring in a professional engineer to evaluate it. mind you she spent $50,000
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doing this herself. stuart: remember this is new jersey, new jersey is somewhat different from most of the states in the united states but i will move on, the drug enforcement administration looking to ease their marijuana restrictions. lauren: the dea is telling lawmakers they are reviewing how to soften these regulations with regards to the classification of marijuana. right now is listed as a schedule one drug. they could reclassify it all away down to schedule 3. why do you care? drug companies care because it would allow them to develop drugs based on cannabis and get fda approval for them but they could also completely remove marijuana from the controlled substances act. that is when you open it up to banking meaning you could purchase weed with a credit card. you can do that now. stuart: that would be a political move right before the election. you have to figure it is a vote
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winner. neil: marijuana is legal and the president has taken steps to alleviate penalties for those in jail facing federal marijuana offenses. might be a favorable one. blue one thanks. mark cuban hits back at elon musk after musk slammed dei initiatives. there was a fiery exchange and we've got it for you. the mess at harvard, in my opinion universities have become race and gender based straitjackets, not academic meritocracy's. the state of education in america next. ♪
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stuart: billionaire mark cuban fired up at elon musk after he criticized diversity, equity and inclusion in the workplace. take us through the exchange. lauren: elon musk agrees with the point bill ackman is
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making, discrimination on the basis of race, which dei does is the definition of racism. mark cuban responded dei create competitive advantages. musk says putting a short white or asian woman on it? that was good. the question is is this. can we have a diverse meritocracy? that the larger question. forcing people and companies to do certain things, i think the answer is yes. what has happened in my opinion because of dei is it is pushing these companies to the same a pool of workers because they meet these qualifications. that's too small to get the advantage mark cuban is talking about. stuart: that is original thinking. out of sight. you saved it until later on friday morning.
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lauren: i'm a short white woman and i want to play for them average. stuart: here's a headline for you. harvard crisis signals broader fight over what a university should be. nicholas geodon oh is good on this subject. should students have to sign statements, attend mandatory classes, use approved language to get into a college or a business? >> as someone who has been in the classroom for 20 years the answer is absolutely not. it has done enormous harm to this, we are seeing them a number of times. new york state board of regents lowered, redefined proficiency, they have proficiency and they suspended graduation
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requirements, students demonstrating until 2029. the main justification, it hurts students of color, shows the racism involved in the dei agenda. this has decimated the higher end standard, standards have been dropped so low. once you justify plagiarism as a new academic standard we don't have an education system. stuart: dei taking the big picture seems to define america as a bad place. do you have students coming into your classroom who regard america as a bad place? >> my students don't come in with the anti-americanism we see through the country. it is deeply rooted and is going to take a few years before it hits my classrooms.
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shocking numbers, 38% of americans believe patriotism, hard work and faith are important values to have. compare that to 70% in 1998. if you look at one in five jen zers have a synthetic view of usama bin laden, that has good ideas that contribute to the global framework. when you see numbers like that you realize how toxic diversity, equity and inclusion is that is it is being driven but there is pushback, there's a momentum against the dei movement. we are making gains on this. todd: i noticed texas has joined florida in banning dei at publicly funded colleges. it seems to be in retreat. >> it is. when you look at the dei framework we see a massive pushback coming from texas, florida, west virginia, states pushing dei legislation but more importantly it is coming down to ordinary people, 62% of
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americans lost faith in four year institutions. 56% of americans say or four your degree is no longer worth it but the biggest thing is the employer's. the employer's, 50% of employers stated in 2,024 they planned to do away with four your degree requirements, states like new jersey, pennsylvania and virginia doing away with four your degree requirements and the message is clear. we want competent, informed, productive citizens, not ideological zealots. stuart: thank you for joining us. appreciate it. wisconsin congressman on the administration blaming republicans for the border crisis. kennedy on the white house reportedly planning a party for staff members to boost more out and nikki haley saying new hampshire voters will correct iowa caucus results. is that a mistake? the 11:00 hour is next.
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♪ ♪ during my entire life i have been somewhat of an outdoors person. golf, gardening around here. how can i stay out of the sun? so about two years ago i was diagnosed with basal cell carcinoma. when they discussed the mohs surgery on my face, i was not really a fan of that because the scarring can be disfiguring.
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