tv Cavuto Coast to Coast FOX Business July 26, 2024 12:00pm-1:00pm EDT
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ibly5 questions like this i go with the extreme. the mariana trench, seven miles. ibly1 same answer. i think it is the mariana trench, six or seven miles deep. here we go. you were right. it is the mariana trench, deeper than mount everest is tall. director james cameron visited the bottom of the trench in 2012, seven miles down. think of the water pressure on you. good question. great week. see you again monday morning. time for us to depart. coast-to-coast will start promptly and two seconds. ibly28 have a great weekend,
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thank you for detailing the deepest part of the ocean. we were worried about sinking, see what i did? sinking. it is not happening. what is happening this turnaround friday, however much we talk about the s&p and nasdaq they are still underwater, the dow not so much but the rotation is on. not as dramatic today. i want to get to that as we end something eventful but markets are what is going on in this country. gary, it is interesting because it is not as if the rotation has stopped. it looks like it just slowed a little bit, not like money isn't back in some of these ai related stocks, this might be
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the paz in that. don't how to characterize it. how do you? >> they been trashed since july 11th, down ten, up two, they are participating and what you simply have here is a little bit of an unwind of the most amazing concentration of leading stocks in the market i have ever seen. i think i sent you the note, six stocks are still 30% of the s&p 500, 8 stocks are 50% of the nasdaq so we are getting what i call the revenge of the nerds. everything that was comatose from housing, housing related economically sensitive financials of all stripes are now 3m is the hottest stock in the market and that is where the money is flowing.
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i think it lasts for a while and we will have underperformance on a relative basis on the semi conductors, ai technology and the like. for the first time ever, i own the dow, that tells you where i think the money is flowing right now. neil: the dow less influenced by technology than the is p500. it's a representation of 30 stocks but not necessarily weighted toward the real world, the s&p is a better representation than that. russell 2,000 is broader, better representation than that. what do you think characterizes the real market at this moment? >> everything but tech. i believe all the economically sensitive stocks that have been
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dead and have lower valuations are in the eyesight of the portfolio managers and you see it on a daily basis as i look at my screen, there's a bet going on right now that the fed which i don't think matters as they used to do when they were printing money but the fact they are lowering rates to catch up with 10 year yields which have gone from 5 down to 41/4 which is a tailwind to the economy, economic stock is better and caterpillar and united rentals and things like that that were doing nothing, lighting up the scoreboard and i'm not sure how long that will go in the midst of it. i sold all my text starting two thursdays ago, july 11th, sole risk last wednesday and i hated the big names but all of them, all of them. unfortunately it hit hard.
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of the 20 take a little off the top but don't get rid of everything. why did you do that? >> i'm quite insane sometimes. >> you were ahead of the curve, just wondering why would you not want to hang onto some of these names, double, triple, quadruple, i don't know what the next word is, they've gone up a lot so why would you get away -- i understand you don't want to get too greedy, but keep some on the table. >> the concentration was so in the trees and valuations, apple is trading twice its normal multiple the last 15 years with slower growth, so we took that out of the way and we can come back in some but not right now. we will be patient if they show up on the screen, we will take action again but we are comfortable with the low data, boring stuff right now.
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neil: all right. i am hotter than hot, don't wander too far because i do want to talk about fed fund futures that seem to be factoring in rates and two more after that this year. don't know if that will happen. might want to pick your brain on that later in the show. the former office of management and budget chief economist, what do you make of this argument, a separate argument, the markets are reflecting their anxiety over this election earlier than would normally be the case because you have big events, the assassination attempt on donald trump, the switch of the democratic nominee, markets are seeing uncertainty play out in all its glory. >> pleasure to be with you. we had a couple of weeks and the markets reflected what is going on. the political uncertainty,
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policy uncertainty, and when you have the numbers we did this week of gdp, today's inflation report adds to this other uncertainty that's going on i am hopeful that wouldn't get past this but it will take a while and months before the election hits. neil: let me talk about inflation. personal consumption expenditures which the fed loves to follow. don't even know if that story is true anymore but it is very tame, it has fueled this talk and inflation, we don't have to worry anymore. what do you make of that? >> when you look at the numbers, food and energy, they like to exclude it, up 2.6% year-over-year over the last month. when you look at that, the fed is not done with their fight on inflation. it's 30% higher than the target
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they would like it to be. we've been above 2%, the average inflation target of 2%, we get above that for years so if it is average you think it would be below 2% for a while. balance sheet remains bloated. especially before the election or the new year even though some people think that may happen and when this new inflation report, that is why the market is up so much because they are going to cut. i don't think that's the case but we will see what happens. neil: i think it was in barron's, no matter who wins in november, kamala harris or donald trump, inflation will be clear whether it is through tax cuts, donald trump wants to get extended or renewed or trade tariffs that could be steep. or kamala harris doing what her
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boss has been doing, spending money. either way, inflation gets to be a problem again, don't know how big a problem. >> all those would influence consumer prices given that inflation as a broader measure, the cost of living, these things could influence specific prices, one thing i've been concerned about on the right is this new right going on pushing for more tariffs, protectionism, not allowing more economic growth, stronger labor union. we need progrowth policies that are proven to work by cutting government spending, cutting taxes, broadening the tax data and deregulating, that's how we unleash the economy and get inflation down over time. we've got to get away from these ideas of the old progressivism the neuritis pushing. neil: you are a genius, you did
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well with donald trump. he didn't like all the people who worked for him, your name is often touted as having a role in the future trump administration, can you tell us what that role will be and what office you could have if you can. >> i haven't been offered anything. i was chief economist of management and budget, tried to put love ideas and that we pushed terrain in government spending, provide as much deregulation as possible, there was a lot of key players that were part of that administration that i hope will be part of this administration. i'm concerned about the directions of senator j.d. vance, no connection with my name but hopeful that we see progrowth policies instead of big government. if we go down that route what is the difference between progressives like kamala harris in the direction some want us to go. i don't think there's much of a difference, we need progrowth policies that allow people to prosper.
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neil: has blown back on the former president but always good seeing you, thank you very much. let's go to charlie gasparino. barack and michelle obama have given their blessing to kamala hers. the way it was donald will bullard. i don't know. maybe it was planned that way but they are behind her. the party is behind her. >> this is part of a considered rollout of kamala harris to set the narrative of a couple things. i'm not a political analyst but it doesn't take a rocket scientist to figure this out, there's party unity and she is something other than the meme republicans are going to create of her of this sort of cackling, unserious, wing man for one of the worst
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administrations policywise in recent history, the biden administration. the left doesn't see it that way. the gop and conservatives will try to frame it that way and she wasn't part of the border, there's no border czar, just so you know this is a semantic term, this word czar, doesn't mean there's a specific title. she was in charge of the border, didn't do so well there. she didn't distinguish herself that much except for some of her rhetoric, there is a way to change that and you do that incrementally and the way obama rolled this out was part of that. there is an alternative narrative as well and the new york post is reporting on this. i am a columnist for the post as well.
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obama had misgivings about her. he never denied that which was fascinating, i thought. neil: i can't get away, she has -- very are. like when you call me and put me on speakerphone, you call me. she is sharing this with the world to witness maybe barack and michelle said that's fine or maybe they were caught off guard but it was weird. charles: part of the weirdness is kamala harris is a very, she seems uncomfortable a lot of times before cameras and speaking contemporaneously. that adds to that area of weirdness. i don't think it is absurd, barack obama is calling you,
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thank you, mister president and your wife, michelle, i wouldn't want to do that. neil: there is no way you know and like charlie gasparino. you would call, let the phone off, just a guy doing an impression. no, that's charlie. charles: i'm always worried of someone doing an impression of you calling me and getting me to say something crazy but in her defense she probably wanted to show the world she was a popular -- neil: is not bad. she's got his support. in 72 hours it is amazing. neil: not really. here is what you are hitting on. there is a sort of uncomfortableness about her on these things. a lack of it doesn't seem genuine and we are not him and period with kamala harris, she is gaining on trump, polls show
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they are even but this sort of persona that wasn't meme to buy conservatives but created by her and all the other baggage of her record and their qualifications that will come out and what you are seeing here is how we might be at the end of her honeymoon stage. when she's unscripted like this, this is why she has a low approval rating, not only does she seem unserious, she seems -- that did not seem genuine to me. barack obama called me -- neil: is still early, anything can happen. there are people who at first blush find you repulsive and i think that is unfair but when they get to know you they come back and say he is repulsive. neil: charles: both sides of the aisle will agree with that repulsive part about me just so you know. we don't have to go there. you know what i'm talking about.
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neil: i do know what you are talking about, charlie, you are the best, there's no better business journalist on this planet. in the meantime following interesting developed with benjamin netanyahu, he's in mar-a-lago meeting with donald trump. this is from during the trump administration but the fact of the matter is whatever relationship benjamin netanyahu had with either white house seems even chillier on the prospect of -- well -- different things. ♪ clem's not a morning person.
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the moment i met him i knew he was my soulmate. "soulmates." soulmate! [giggles] why do you need me? [laughs sarcastically] but then we switched to t-mobile 5g home internet. and now his attention is spent elsewhere. but i'm thinking of her the whole time. that's so much worse. why is that thing in bed with you? this is where it gets the best signal from the cell tower! i've tried everywhere else in the house! there's always a new excuse. well if we got xfinity you wouldn't have to mess around with the connection. therapy's tough, huh? -mmm. it's like a lot about me. [laughs] a home router should never be a home wrecker. oo this is a good book title.
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benjamin netanyahu is going to be meeting with the former president. we got a lot going on, madison alworth on what will become of this. >> reporter: so much going on. benjamin netanyahu has been making rounds with different us leaders but now it is donald trump's turn. benjamin netanyahu touched down at 10:50 am this morning, the event is closed to the press and security has been beefed up in west palm as well as palm beach, you see the protesters getting as close as they can to mar-a-lago. this meeting, the expectation behind it, we don't know. we have a guess of what's going to be discussed, we expect them to discuss us protests like the one happening on the bridge, the hostage release and the ongoing fighting. we expect this meeting to take a couple of hours. the prime minister spent
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yesterday in washington dc meeting with president biden and vice president kamala harris was benjamin netanyahu was componentry of his relationship with biden but reportedly had concerns about harris's post meeting comments. >> i've had an unwavering commitment to the existence of the state of israel, to its security and the people of israel. what has happened in gaza in the past 9 months is devastating that we cannot allow ourselves to become numb to the suffering and i will not be silent. >> reporter: those comments of worried benjamin netanyahu who fears that harris's statements could harm the negotiation process and cease-fire deal which is likely at the finish line. yesterday on fox news donald trump who has been a staunch supporter of israel said the country needs to find a way to end the conflict because it is hurting israel's reputation globally. after the meeting today, next time we are expecting to hear
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from donald trump is when he goes to the convention hall to talk at turning point action convention set for tonight, it's a busy weekend for the president but a big meeting for him taking place right now. neil: great job. glad to have you back, the ambassador to the united states, always an honor and pleasure. benjamin netanyahu was surprised by what kamala harris was saying about their 1-on-1 meeting. some israeli officials were saying the stuff she said she said she didn't say. i don't know what the truth is. it seems like a tense relationship. what do you think? >> good to be with you. nothing surprising. kamala harris served as the progressive face of the administration and the most could a member of the
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administration when it comes to israel and the war in gaza. her commitment to his relapse existence and israel's security and the people of israel, she didn't talk about the democratically elected government of the state of israel. she said before but she distinguishes between the people of israel and the government of israel, rather problematic expression for the people of israel because we are one of the few countries that has never nanosecond of nondemocratic governance along with the united states. israel could expect more respect for israel's democracy. the concern with remarks that she's not going to stay silent about the suffering in gaza is in previous months the administration by accusing israel of dehumanizing the palestinians and bombing indiscriminately led the head
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of hamas to conclude time is on his side and he can dig in his heels and not agree to a hostage release deal. this is changed the last couple weeks. the administration toned it down, ramping up the pressure on hamas and the fear right now is that once again he might conclude that he can dig in his heel, time is on his side and reject the offer that is on the table for a hostage release. neil: this is video just coming in of benjamin netanyahu meeting with donald trump. we are told, you got to wrap this up fast as if that wasn't the goal. you have pressure on both sides, donald trump seems sympathetic to the predicament,
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you are you losing the pr battle, you're losing the global public support you had rightfully coming to you after the october 7th attacks. how should they respond to pressure from republican president? >> putting on the brakes, a republican candidate stepping on the gas for israel and somehow israel is supposed to navigate between those extremes. the concern for israel's imagine the world for the palestinians, it's a sharp distinction. in order to do that, an expedited supply of munitions, not just in the south but in
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the north as well. heavy involvement in the north, hit by houthi rebels in yemen, a bomb hit the street up from where i'm talking to you and killed a person. israel needs those musicians quickly. also a diplomatic cover, this is an extremely complicated combat situation. even risking its own soldiers. it would be nice if are cheap ally would come out and support us on this. >> i hasten to add whatever their thoughts on this that this didn't start with israel, it started with hamas, killed 1200 israelis. that is how it started. an honor having you. it often gets forgotten.
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in the last meeting benjamin netanyahu had in washington. neil: thank you very much. we talked about donald trump, he will be meeting with conservatives later tonight, talking to her bitcoin conference. they have huge conferences and there speaker is donald trump. the latest from nashville after this. ♪
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adam: the earliest days of crypto currency, a small room at a day's income and other conferences are like political conventions, a big one this weekend in tennessee. kelly o'grady is there. donald trump will be speaking there tomorrow. >> reporter: we are the biggest mid point in the world, this is important for the industry but the energy on the ground at this one is different, people are excited.
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presidential candidates are finally taking the industry seriously. donald trump will speak this weekend, rfk junior speaking today. they will speak to the growing voting block, trump will share a plan, bitcoin as a strategic reserve asset and turn transactional freedom, our contrast to the record of his democratic opponent. the biden/harris administration vetoed bipartisan legislation and harris declined to speak, many say that was a missed opportunity. it is an all out war on crypto. a number of executives including the coo of gemini. he echoed what we are hearing from everyone. they are ready for a change. >> don't want to live in the world we've been living in the last four years.
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still not there. we want to work with you. it is exciting for us. >> reporter: the group that could move the needle come november a new study shows one in five americans own crypto and 73% say the crypto stance will factor into who they vote for and it is that 73% donald trump will seek to inspire in his address tomorrow. the folks i have spoken to our single issue voters and they are open-minded to what he has to say. neil: kelly o'grady will join us tomorrow. the political and economic temperature, you know robert, the company cofounder, one of the smartest guys we know, fairly early on to rogue
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investments, all the attention it is going is a bumpy ride but you have been seeing the potential of gold and other, daddy's. how does bitcoin and some of these others differ from gold and silver or are they part of an alternative investment? >> it's a new asset class, people are learning, becoming aware of it. what i hear from most people including me, i wish i had bought it earlier. i am happy right now. people want 67,000. the reason i am happy donald is speaking at the bitcoin conference, he's a genius with money, biden and kamala are idiots with money. nobody has done more damage to
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the economy than biden and kamala. neil: the issue with donald trump is whether he is a true believer in this. he has been critical in the past, what do you make of his position? >> i had to make some changes inside my head or acceptance of it. the more i studied bitcoin the more sense it made versus fiat currency or keynesian economics where we just keep printing money. bitcoin makes sense. when you compare the two to the us dollar today it makes sense. neil: i know where your political leanings are you are free to have them but not as if donald trump didn't run up a lot of debt even before covid. obviously he can't be blamed for the covid thing but we staggered out of that.
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to talk of trade tariffs and the like, a brilliant moneyman your own right. doesn't that worry you? not as much as a kamala harris administration but what do you think of that? >> i keep it simple when i think about especially bitcoin. the real problem is the national debt, they can' t solve it. that is why rather than ring my fingers and crack my knuckles about the national debt, one of my side, letting people to buy silver and gold and bitcoin. want to fix the world, fix our money. neil: sorry to jump on you. what do you think of the stock market, bumpy week, they liked it when it was up. what do you think of the market?
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>> it is grinding upon debt. that's the thing. how long will people keep allowing us to keep printing money? it is getting spooky to me at least for me. i am a hard money asset. bitcoin is a whole new asset class. earlier adopters doing well. neil: where do you see it going? >> i love gold. the state of utah just announced they will start stacking gold instead of bonds and china and japan are jumping bonds, the days of the dollar, i hate to think about it.
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neil: crypto at 67,600. where do you see it? >> it is volatile like any asset class. whether you purchase bitcoin or not depends on age. if you are young, ride the waves but if you are older, gold and silver are better. neil: we will see how that goes. it is good having you. thank you very much. all right. we are looking at housing. is it possible the ship has come back in after this. ♪ ♪
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homebuilders and housing related stocks. a lot of people talk about a big slowdown. pulte isn't buying it. pulte capital ceo kind enough to join us. what as so many people concerned? >> a lot of people are looking at this inventory and tertiary markets, something to keep an eye on, existing home sales, you have old homes and new homes, they are starting to sell on these markets like southwest florida and seeing price depreciation which is different from what we've seen in terms of house appreciation. neil: i had the redfin ceo here and he thinks part of the fund for homebuyers is they are weighing in this unpredictable election and that uncertainty, they don't want to commit themselves.
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>> i would agree. it will be interesting. trump comes from a family of homebuilders, interesting to see what kamala harris's program is. the general consensus is trump likes lower interest rates. what you are seeing, these builders, stocks are on the way, a lot of moving pieces and it will be an interesting few months. neil: you know quite a bit more than i do. i find it interesting mortgage demand has not responded to the drop we've seen in rates. it is one of those rare occasions rates went down and even mortgage applications didn't go up.
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it was a curious response. >> if you look at the rate of change how much rates went up compared to how much they are going down is so small. people are not wanting to move homes where they have 3% mortgage rates and it will be an issue and you will see housing prices stay high. it is unfortunate but if you are a homeowner it is an appreciating asset or not a depreciating asset generally speaking. . 20 great catching up with you. bill pulte, pulte capital ceo. expectations are we are going to see rates come down, not just market rates which are down but the rates the fed controls. looking at three rate cuts by the fed. what do you think? that is fairly aggressive.
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>> that is just playing catch up. they have fed fund rates, what they lend to each other, 5. 4, to 5. 5, the 10 year yield at 4.2. they have room to come down. they are going to do that. that will not affect the outcome but it could affect the market. what happened july 11th when the market let up and interest rate sensitive areas lit up, the market recognized the inflation number and i suspect will get one cut before it is the election and one after the big one is the 10 year yield that provided a tailwind for the market for the economy which is getting a little better. who wants to get rid of a 3% mortgage. that is one big gigantic
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payment, that's keeping things down as far as the housing business. neil: i got to tell you i get a sense it is getting noticed. i won't say to the panic stage, multiple rate cuts. looking at these awful sales numbers, looking at some retailers talking about scaling back, delta is a separate story, cruz operators reporting a slowdown in future bookings and they are worried. >> manufacturing numbers and services numbers. there are little pinpoints that i follow of shot softening some pretty good softening. when you leave no doubt, we are big time debt laden.
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you like hanging on the ledge, going to feast or famine pretty quickly, that is what i'm careful about and i have been telling you the job market. if the job market remains in shape we will be in shape if we lose the job market we have big problems. when you see the numbers on credit card usage, people who are one payment away from having no money, that is scary and i am pretty sure mr. powell and the rest of them look at those statistics on a daily basis. neil: they prefer hearing from you once they put the stamp on something. good seeing you again. nice seeing you. in the meantime you heard the start of the paris olympics.
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the train service, close to a million french travelers were down today, slowly getting it back up. what could possibly go wrong? watch after this. ♪ (♪) what took you so long? i'm sorry, there was a long line at the thai place. you get the sauce i like? of course! you're the man! i wish. the future isn't scary. not investing in it is. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com
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they're already there. they wear business sneakers and pad their keyboards with something that makes their clickety- clacking... clickety-clackier. but no one loves logistics as much as they do. you need tamra, izzy and emma. they need a retirement plan. work with principal so we can help you with a retirement and benefits plan that's right for your team. let our expertise round out yours. adam: french words for a train network hit by a malicious attack, they are slowly getting it back under control the will not interrupt the start of the olympics. ashley webster has more. ashley: people saying sacra blue. that is my extent of schoolboy french.
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when we talk about a rail shutdown in france it is because of the labor dispute but french authorities say it's the result of coordinated arson attacks that had maximum impact disrupting the high-speed rail system across the country. this happened overnight french time, between 1:00 am and 5:30 a.m. and it is not the work of one or 2 people, it had to be a group coordinating these attacks. they hit five sites burning up the signal boxes that made that section of track useless. with so many people trying to get into paris for the olympic games opening ceremony it created chaos after a million passengers affected. the other part of this, this weekend is one of the busiest rail travel weekends, the
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french take august off for vacation. they plan to hit the rail system this weekend. whoever did this new what they were doing. at this point the french authorities have no idea who did it and no one claimed responsibility. neil: for your comments, the transport plans for all olympic teams will be guaranteed. is that so? ashley: soccer players stuck around the country have started their games and it is unclear whether they will be able to get back for opening ceremonies. what a mess. they knew what they were doing. neil: you worry what could be next. thank you as always, ashley webster on those developments. i want to go to taylor riggs and "the big money show" guys, busy newsday yet again
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