amazon. both socks are up as you get close to the deadline. don't forget, send in your things, whatever you want to send, in varney viewers. send fan videos. say you're watching warn any and company. varneyviewers@fox.com. might see yourself on tv, lucky people. neil, it is yours. neil: just finish my email to you. love the guy after you. anything i can do. stuart: send it in. neil: have fun with that, stuart, thank you very, very much. noon on the east coast here. buying time. gdp report had a lot of people worried. they dug into it. decline of 1.4% economic activity in first three months of the year. some are saying it's a one-off,

when things stablize a little bit, start importing more, dealers, individuals, individuals start stockpiling a little more all that will go away. they certainly hope so. if it doesn't go away you have negative quarters, the quarter we're in, you know definition of a recession, two negative back-to-back quarters. that is this year. that is sort of countered what we could get from the federal reserve, won't be so aggressive raising interest rates here. but the bottom line is, it pans out in different ways for different sectors but most of the sectors advancing, not as smartly as before but again, it is remarkable that the market zigs when you think it is going to zag. when it gets good news and responds poorly or bad news or potentially bad news it responds well. we'll rifle it you throughout the show here because i find it fascinating not always get the predictable response. i always tell people the markets are not nostradamus.

truth be told if you red a biography on him he missed a lot. he missed a lot. but the things he got right scared the you know what out of people. but i digress. go to edward lawrence at white house, with the administration digesting this with most stocks up on the news. edward, how is the white house playing this? reporter: they knew this would be a bad number. white house official reached out to me stressed why and economy is fundamentally strong. the official said we're in a transition now from the reopening growth we saw last year to a long-term growth, sort of formula going forward. now the official says there are technical reasons as for the slow reading, like inventory buying that was pulled forward into last quarter because of the supply chain issues. the president today saying that he is not worried the u.s. will fall into recession. listen. president biden: here's the deal, we also have last quarter consumer spending and business investment and residential

investment increased at a significant rates both for leisure as well as hard products. number one. number two the, we are, unemployment is the lowest rate since 1970. reporter: so the commission continues or the administration continues to push for more spending while trying to shift the blame but anything but current policies. >> global pandemic and now russia's invasion of ukraine underscore the likelihood of large economic shocks and disruptions that must be addressed. downturns are likely to continue to challenge the economy. reporter: so here's the other data. retail sales starting to slow month over month. we're seeing that in the data. march pending home sales decreased 1.2%. now republicans are concerned especially with the president calling for more spending. listen. >> but if they go forward with this on top of all the other spending and borrowing as you said it will contribute to more

inflation which means economic growth will face even more headwinds as we just saw this morning. we got the reports for the first quarter. reporter: so far there has been no pivot in policies from this administration not because of inflation, not because of gas prices, not because of these recent slowing economic data that we're seeing. neil? neil: edward, thank you my friend. edward lawrence at white house. luke lloyd, and hal lambert as well. point bridge capital founder, ceo. hal, begin with you, end with you, like your take the quarter we're in follows the quarter we just had? >> well that's a million dollar question, isn't it. yeah, there were factors that contributed to this like the inventory build that was in the fourth quarter that rolled off this quarter and more imports than exports. there is no doubt the economy slowed. we could run into this problem again with this quarter.

everything is now on the consumers back. the businesses have stopped spending. now everything is reliant on the consumer to keep spending. that is what we had this quarter. will they be able to? savings rate dropped dramatically with consumers. don't have stimulus checks going out anymore. any kind of uptick in unemployment, if that happens, you're going to see a real concern in the markets that we could have that consumer spending stop and that's when you're looking at probably a recession. neil: you know, i tend to follow the more immediate numbers, forward-looking guidance we get from companies, guys, as i'm sure you do as well. that is probably a more current barometer where things stand. when i hear comcast saying broadband subscriber growth continues to slow, put that together with netflix, reversal in subscribers, i don't want to glean way too much of that, number of airlines with exception of jetblue, said

opposite, business activity is strong. hearing more of comcast news. hearing more about people, when it comes to discretionary purchases, not doing as much. what do you make of that? luke? >> yeah, simple as it sounds hal is exactly right. the american economy will hold up as long as peep people have s to spend. we're at full employment. the federal reserve has no choice but to hike interest rates to slow inflation. what i'm paying attention to and most concerned about is how businesses will react to higher business rates. many businesses utilize loans to grow businesses to help keep their businesses afloat. look at merger acquisition activity next year, most of the deals will be financed. if we see that slow that is not a good thing. the cost of borrow something becoming much more expensive and really the cost of doing business in general is becoming more expensive with labor costs. if you start to see companies

get rid of job postings or laying off workers, that is when i would begin to worry about a true economic slowdown, that is longer lasting. that is the key. how long is the economic slow down going to last? neil: one issue, hal, came up this morning with the gdp number, it might slow the federal reserves, you know, quicker and more substantial pace of interest rate hikes. do you agree with that? >> it's possible. it will not slow this next hike. i think we'll get 50 basis points. you know i think the problem is is that interest rate hikes are not going to solve the supply chain problem. i mean that's where we're at. we have a supply chain problem which is causing prices to continue to rise here in this country. and you can't fix that with the interest rates. so as they raise rates. it is not going to solve the underlying problems in the country. so you could end up with again inflation and then a slowdown in the economy. i think at this point, neil, they're raising rates, simply

because they're going to need ammunition to lower rates when we run into a major slowdown. you know, it's a weird dynamic to think about. they're going to raise rates to slow things down so they can lower rates when things do slow down. it is weird to look at it that way. but i think that may be part of their calculus. neil: luke, real quickly, i want latest what is happening with twitter right now, elon musk, all of that stuff, but technology in general having a better day today but again, not much conviction there. how do you feel about that? >> yeah. looking at gdp reports, using the term recession, are both backwards looking, right? the stock market, it is forward-looking. because of that i think the stock market already discounted a recessionary scenario that isn't very long-lasting. the nasdaq is down over 20%. the s&p 500 is down over 10%, right? so in this environment you really need to know what you own and technology like we talked

about last week, neil, i think it's a great spot to own but the thing is the key to technology right now is to own profitable companies. there are a lot of non-profitable companies in the technology sector. a lot of people owned the stocks last year-and-a-half. that is why they got whipsawed around. you can't go back to look at stock chart, this stock is down 70%. there must be a lot of value. there is a reason that stock is down so much. own strong current cash flow companies with low debt and check out the companies marketing to middle class market consumers. as people have less money to spend going forward, they are going to shop down. that is where we want to focus on right now in the stock market. neil: guys, hang in there, i want your reaction to the latest developments in twitter. for that we go to kelly o'grady in los angeles. kelly, while the stock is up, twitter stock up a percent or so today, it is a long way from the offering that elon musk has on the table and that they

accepted. i'm just wondering what that could mean? >> you know, twitter earnings today, it wasn't as bad as it could have been, right? i think a lot of analysts were thinking okay, twitter came in with a deal very quickly because maybe they weren't going to reach expectations. they missed a little bit on revenues, 1.2 billion versus 1.23 billion. they are higher though on monetizable daily active users. that's a mouthful. but there is some trepidation, okay you never know what you want to do. maybe this deal won't go through. as of now it looks like it is going to. neil: i wonder as well, when you look at it, kelly, look what is happening in tesla, comeback of shares slightly, not withstanding. that is the currency for musk muck's deal. we're down an additional deal.

you could make the argument, more he closes in on the twitter deal, the worse, the funding mechanism tesla looks. i am wondering if that gives him pause? >> it has lost over 25% of its value since that high on april 4th when he kind of announced he was interested in twitter with that initial 9% stake. i think we're looking, the earnings raises the question for me how is he going to make twitter profitable, right? he will take over a five billion dollar advertising business. he doesn't have experience with that. tesla is also a space where he said, maybe we need to scale back that, remove shackles on free speech. something woke companies may do forim if they don't like what is going on with the platform. he needs to be able to service the debt that he is raising and pegging against those tesla shares with twitter. i think there is a lot of trepidation we'll see until that

october 24th, if and when he does take over the company in that tesla stock because there will be a lot uncertainty what he is going to do. potentially his split focus. there was a great tweet came out the day after he announced he purchased twitter. he said he had a meeting at spacex. he spent an hour with the engineers. didn't talk about twitter once. you know, the question of whether he may have a split focus. he seems a like a talented guy. he will face a lot of business challenges and political challenges maybe investors at twitter are concerned about with the stock, as always great reporting thank you very much. kelly o'grady. back to my friends luke lloyd, hal lambert. i refer to you guys for the expertise. i don't have a fraction of it. i will say this, i read a prompter and so i think i qualify. one of the things i noticed hal, something gary kaltbaum talked

to me about, the 44 billion-dollar plus deal for twitter is wiped out now by nearly $180 billion in tesla stock holdings collapse. that's his share of that. so and the fact that china might love tesla but it doesn't love twitter. that china might make life difficult for him with twitter by going after tesla as well to sort of leverage that. that he rethinks this. what do you think? >> no. i think he is going forward with it. neil: you know that's what i say through, he goes through with it. a silly idea to think he would walk away. seriously you don't see him potentially upping and going? >> no, i don't. look he has got areas where he can get liquidity. spacex stock may not be part of this deal but believe me could borrow against spacex if he wanted to. the banks would lend against it. neil: that is private holding

though. that is a private holding. you're right it is a gargantuan holding. $100 billion. i think he is 50 billion into that. you think that could be collateral. that gets to be dicey doesn't it? >> you know, everything is dicey when you start putting leverage on things. warren buffett always said that. if you get dicey when you put leverage on it but i still don't think he backs away from it. the china part is kind of an interesting aspect. will they put pressure on him? i don't think so. i think he will be pretty hands off twitter. i think he is going to put in some rules. then he will be pretty hands off with it. i don't think people will look to him, hey, what are you allowing on twitter, what are you not allowing on twitter? i suspect he will be commenting on it once he gets past the merger. neil: a hard guy to stop commenting on stuff. luke lloyd, twitter 10% of the

bid out there right now. what is the market telling you? are they saying more to come, we'll see how this sorts out? normally soon after a buyout is agreed to the price gets kind of up to the buyout proposal. so what is the market saying here? >> look at elon musk's history. he is pretty sporadic. you can't even tell what he is thinking most of the times, right? kind of why a lot of people stayed away from tesla during the run-up. he was all over the place all the time. he tweeted, two years ago that he was taking tesla private at 420? i think a lot of people are worried this deal isn't going through. i'm own hal's side as well. i think it will go through. i think for sure it will. i think the market is kind of sporadic thinking elon musk is playing some games right now. look, i love elon musk. this guy can turn one dollar into $10, creating jobs, making our lives better. if i could invest my money directly at elon musk i would throw money at him every single

time. but i can't, i can only invest in his companies. because how successful he is is everyone of his companies comes with a elon musk premium. the biggest problem with tesla and all those companies, is himself. as he innovates he will step away from tesla eventually. that makes the elon musk premium disappear. i'm worried that elon musk will put a lot of focus and time into twitter. i think he will spend a lot of time. neil: we'll watch it very closely, gentlemen. it is what it is. tesla of course the mechanism that will afford this purchase underwater right now. twitter barely budging, not even close to the offering price that is still out there on the table, maybe some assume will be adjusted or not. it is not going to be but something to bear watching. we'll keep watching for it. watching, inflation was a big bugaboo in the decline we saw in the first quarter right now and it is particularly pronounced in food and grocery stores which you've been seeing for yourself.

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♪. neil: you know we like to talk about 8% inflation rate. that was number within first quarter gdp, that is actually appealing comparing what is happening with food and a lot of stuff that goes into food. basic agricultural commodities, they're up double digits wheat, soybean, up in excess of 20% during the same quarter. my next guest knows these numbers inside and out, sonny perdue, former university of gone governor, former senator and chancellor of the university of georgia. what a resume'. good to have you. >> thank you, neil. neil: what do you make of what we've seen on agricultural front. not too long you telegraphed to me you didn't think this would be a transitory issue. certainly turned out to be anything but, so where are we going with this?

>> well, for commodity prices neil, there is old saying the cure forehigh prices are high prices. the cure for low prices are low prices. obviously commodities have been volatile for years on that, the market on supply demand situations. i think this will rectify itself over time. maybe into 23 but right now, not only high commodity prices but high input prices. the supply chain is affecting inputs both from a nutrition standpoint and a chemical input perspective into the inputs of agriculture. neil: you know, one thing i also have been seeing, reading a lot more about, secretary, what has been happening since the ukraine war. ukraine, as you reminded me in the past was bread basket of europe but so by definition is russia and both are kind of getting shut down now. in the case of russia deliberate ly so, in case of

ukraine, trying to find out passageways. bottom line the items continue soaring, get even worse in this environment. so where does that go? >> again, supply demand obviously. you said, russia, since 1973 developed into a major wheat exporter. you remember after we embargoed the u.s. wheat going to russia, they became self-sustainable and wheat export. they were huge as well as the ukraine being the bread basket. so that's a huge decrease in supply globally and it will take a while to work that out. the good news is, many of the items we consume in the united states, the good part is, neil, we won't have shortages here. price increases maybe. we won't have shortages. other part the of the world may literally have shortages. we may see refugee transfers from nation to nation based on literal food shortages. neil: i caught what you said, i thought it was very profound. the solution for high prices are

high prices. people get to a point where they can't keep paying the high prices. that's when that inflation easing a little bit here but do you have to be pushed to the brink of a slowdown or recession to get there? >> well i don't think to recession. obviously people will moderate and mitigate their own consumption, whether it's fuel or whether it's food in certain area and choose. the marketplace works very efficiently when you deal with the consumers. they understand what they're paying better than the government does and they will moderate their actions and consumption based on those. so i think we'll see a mitigation of those high prices at some point shortly. neil: now you will be heading to the university of georgia, chancellor there. >> yeah. neil: i always think of people in higher education, governor, secretary, the kids generally aren't too big on a lot of economic issues, not across the board. some of the issues you and i

just weighed into are issues young people, you have to concern themselves with but it is always a struggle on college campuses. what do you think of that? >> well it is. affordability is an issue. we've got to make sure that we market the real value of a long-term career type situation. a diploma, neil, where this workforce environment where every street you walk down a sign hiring, hiring, young people can go out of high school making $20 puts an hour. but that is short-term instant gratification that diploma will be more over the lifespan much a career. that is what we have to communicate with young people. neil: how long do you think the environment, which is great for college graduates continues? they have been very picky. they have every right to be picky. >> sure. neil: but that doesn't last forever. >> if you're a job provider, if you're a younger person with a job there is a seller's market,

there is no doubt out there and we've seen some of that hopping around but that will go back and forth f we do happen to enter into recession some fear, you will see a flight back to higher education rather than immediately out into a job. that will self-correct itself as well. one of the things we're working on in georgia is, obviously affordability. there is a lot of conversation about tuition. our state was able to keep tuition flat again this year, and actually gave almost a refund from a special fee that was provided a few years ago with twin recessions. people are getting better deal in college in georgia than before. neil: beautiful state, beautiful schools. i wish all the best. secretary, thank you very, very, very much. >> neil next time -- all those titles. neil: there you go. not bad. i will steal a few of them. so great. on a card, yeah i'm all those things. thank you very much, sir.

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neil: vladmir putin, lightning fast response, companying helping in ukraine. trey yingst, how that is being be a toward. >> everyone here bracing for very bloody days across this country. today we have number of situations following, update for you on a man we introduced to viewers at the beginning of this

war. s vitale a blind man trapped in ukrainian town. at time his home sits near the front lines as russian troops cite the territory down the street. i hear some explosions he says. i'm scared as everyone else. what can i do? seven weeks later we returned to the suburbs of kyiv, searching for a 63-year-old. immediately upon arrival it is clear something terrible has happened. the gravestones where he said good-bye, n.o.w. riddled with slap hellholes. a pile of bricks where his home once stead. vitale's neighbors like victor don't know what happened across the way. you see what happened to the roof. it melted down. was he there or not. i can't tell you, i don't know. victor explained vitale's daughter lives nearby we might have more information. we go to her house, only to find

a locked gate, boarded up windows. at the end of the block a resident offer as phone number for a woman. two people died she explained but at this have it lal at this. his daughter says he died at a hospital in kyiv when a russian shell hit his home inner european. irpin. we looked for vitale, up an elevator and down a hallway sits his room. as we enter a moment of joy and relieve. hi, nice to see you. give you a hug. >> yeah. >> you're okay. we're so happy you're okay. we were so worried about you. reporter: he takes his sunglasses off like the first time we met as he recalls what happened to his home. i heard a blast, it destroyed my windows, my doors, vitale says, i think i will burn here. like many ukrainians vitaly lost

everything since the war began. in march he struggled to find food. in april he struggles to find shelter. as he says good-bye, final words, please help me. amid very dark times for ukraine, this man survived. something to smile about. neil? neil: something to smile about indeed. trey, that was beautiful. trey yanks. meantime keeping you abreast of those helping out in ukraine. sometimes no good deed goes unpunished. we see that with vladmir putin's response in bulgaria. taking away natural gas, shipments to them immediately. had audacity to challenge russia on this more to the point, not accept the idea of paying for it in rubles. we have sikorsky back with us, he is here in the flesh, eu member of parliament, polish minister of defense. so good to see you. >> good to see you.

neil: first poland on this energy thing, minister, i guess the country wasn't surprised by this trying to say i think you can't fire me. i quit. how do you see it? >> we've been preparing for it for years. we built an lng terminal. neil: liquified natural gas, right. >> to the north sea. putin is in breach of his contracts. the payment in euro dollars. neil: he knows that. >> he is confirming what some of us have been saying for decades. that he will one day use the gas as a weapon. that is exactly what he is doing. neil: germany apparently getting the message, minister, they are still in favor of immediate embargo of all natural gas shipments, found a clever way around it to buy the same gas from third parties that are getting that gas. what do you think of that? >> well, energy, sources are fungible to some extent.

but i think putin is the destroy ing two industries of this country. the oil and gas industry and the weapons industry. russia exposed practically nothing else. neil: so, say what you will of actions, whether they're even legal, they have lifted the price of natural gas. in europe over the last few days up almost 30%. muted response in this country, minister. that is the currency that putin uses so actually helped him, hasn't it? >> certain price, shale gas becomes economical again. sources will come to the market, lng comes to europe. at the end of the day putin will have left money to make new tanks, to destroy ukraine, good. good. neil: how is poland holding up? you have taken more than half, five plus million refugees from ukraine. no one is turned away i understand but, that has got to be, you know,age administrative

nightmare just to say nothing of the costs involved to get it organized? >> initially we took ukrainian men and women into our homes, almost three million. neil: wow. >> they're fighting the fight, at least we can take care of women and children. the men in poland have phone to fight, which is amazing. of course poland didn't have a reserve number of school tables or places in hospitals. so we need help and the european union is coming in to help. neil: but nothing like what poland has done? i'm wondering do you feel that you've gotten a disproportionate, told me many times, look at burden, but has been disproportionally a burden for you? >> sure. same come true with ukraine 400 years. we're feeling they are fighting our fight. neil: you become a target of vladmir putin. he doesn't like what you're doing. he plan as lightning quick

response. he is lumping poland in for that. >> that is why we joined nato. nato will enlarge further by finland and sweden. neil: joining nato, threatening them now? will put nuclear weapons right on the border? >> russia's border with nato will enlarge by 1300 kilometers that is not a victory. putin is harming russia. he is achieving opposite aim from those he intended. neil: where do you see this going? how long does it drag on? boris johnson was saying out of britain, right through the end of next year? >> he lost a third of his army in the battle kyiv which he lost. he is now living another third perhaps in the battle donbas. if ukraine gets enough ammo and equipment in time he may lose his standing army. and i don't think he win this without total mobilization and that would be very unpopular in russia. you know, he invaded ukraine

with 120,000 troops of a land component. that is one big u.s. stadium. ukraine is 40% bigger than iraq. neil: talks about going beyond ukraine. his foreign minister does, the defense minister does. do you believe that? is he just bluffing? >> he intends that. remember he has proved in moldova, georgia, foray into kazakhstan. neil: had a devil of a time in ukraine. what would make him go beyond that? >> the ambitionses are not proportionate but is tensions are not. neil: what about nuclear threats? >> yes he has tactical nukes. neil: can he use them. do you think he would use them. >> they exercised them and talk about it and in the beginning was the word. so this a dangerous regime but i also believe that the moment he gave that order, his generals

would have to decide whether to become complicit in genocide or whether to take him out. neil: why haven't they overthrown him? >> i'm told there is very little army presence in moscow. he has layers of security. but you know many roman emborers and russian czars learned that praetorian guards are not always faithful to the last. neil: i think mussolini found that out in modern times as well. >> russia there is tradition getting rid of the czar who lost the war. neil: that is interesting. minister, thank you very much. the former polish minister of national defense, eu member of parliament. coming to this countries talking to business leaders give them a sense of gravity. >> i am glad president biden announced another aid package for ukraine. neil: $33 billion. up 374 points, maybe reassuring words from influential player in

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♪. neil: all right. limousine reference, not withstanding, for a lot of chicagoans, could be help on the way in form of a lottery for preloaded 150-dollar gas cards, 50-dollar mass transit cards, but have to be in it to win it i believe. latest with grady trimble in chicago. what is going on here? reporter: neil, free money is the solution for higher gas prices here at least what mayor

lori lightfoot is hoping. her brainchild. you have to meet income requirements to qualify and apply for the program. you said it, after that, the city will send out 50,000 gas cards preloaded with 150 bucks each. as well as 100,000 public transit cards worth about 50 bucks a pop. the total cost of the program, more than $12 million in taxpayer money. several alderman who voted against light-foot's proposal, called it a campaign gimmick and political stunt. 2023 by the way an election year here in chicago. businessman willie wilson was critical of it as well. he is also running for mayor. he is giving away $2 million in fill up-s in chicago. but he has done that with his own money. ad federal level, democrats blame oil companies for high prices. some say progressive policies will help solve the problem. house democrats also say the federal gas tax holiday is still on the table. >> there had been some interest

in the holiday, the pros of it it is good pr, you're asking about it, the cons are there is no guarranty, the savings, the reduction in the federal tax, that would be passed on to the consumer. we have now evidence to think that the oil companies would pass that on to the consumer. reporter: some businesses are also seizing on the high gas prices to try to win over customers. walmart, for example, is offering savings of up to 10 cents a gallon they say at 14,000 of their gas station locations across the country. but in order to get the savings, neil, you have to pay for walmart plus which i checked, it is 98 bucks a year. i guess it could be worth it if gas prices stay high. neil: if it is true, i didn't realize the math involved there. thank you my friend, grady trimble. following all of that. when we come back, you know, the

prices are going up, they're doing lotteries for free gas cards as grady pointed out. a can of arizona, bottle of arizona is the same throughout all of this. what if i told you been the same for better part of 30 years? how does the company do that. we'll ask the guy in charge of it after this. ♪. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire emx, the royalty generator - building shareholder value

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♪. neil: inflation rampant everywhere with people getting more for the money. this is news to arizona iced tea, arizona beverages, it kept prices for its iced tea the same throughout this whole ordeal with higher prices and inflation. in fact it has kept prices the same for better part of 30 years. my colleagues and buddies, kevin and mike here, from cavuto "coast to coast," their claim to fame of course was sampling the chipotle food a few months back and they survived that embarassment to sort of explore

the quality of the beverage. as you can see, guys, here, good to have you both with us. it is same cans. they have not shrunk the cans. same variety of flavors. they haven't changed any of that but they kept the price the same. how did they do that? >> i think they built a name for themselves like you said the last 30 years. everyone knows what arizona iced tea is. it's a good flavor. neil: have you tasted them? how do you know that is the case? >> i tasted them before. they're not like as sugary as some you know, other drinks may be on the shelves. you know, i think they're worth it. neil: we've got the guy behind the company, chairman and founder, if you guys want to sample this, as i talk to us, the arizona beverages chairman and ceo. don, very good to have you. how do you do this? a lot of you harken back, you know, weren't born with a silver spoon in your mouth. maybe you remember that.

you said that. you were very conscious of the fact that you tried to give your customers a break but that is a tough thing to do, year in, year out, by sticking to prices, isn't it? >> it is talks lately. i've been at it for almost 50 years. part of our success as a company is that i have done most of the things that are required to run a company efficiently. i think that is what is important. and, i think what, what i'm hearing lately is, a lot of companies reporting earnings and their earnings are up because they have raised the price. i don't think people another price increase right now. neil: so how are you doing it? guys, by the way, any difference in the taste? >> no. neil: keep same taste, same size of the can. a lot try to cut back on the size of the product and how many cookies you get in a cookie pack or whatever. you're not doing any of that how are you, talk about efficiencies at your company, that is a long time to keep efficiencies going.

what are you doing to keep it at this price? >> you know, when we started out in 1992 we were running the cans on fillers run 150 a minute. today we run 1500 a minute. that is a big move for efficiency point of view. i was at our plant yesterday, a newnan we built in new jersey where we have rail sidings, very modern, very automated, robotics, robotic warehousing. that is what we've done. i built a business on planning for the worst and hoping for the best and when you get into tough time like this, you're able to, you know, manuever through it. neil: but as you said, it is getting tougher to keep doing, right? obviously, colleagues here could tell you, nothing's changed. still the same great flavors, same size can. everything's constand. all these savings and efficiencies you come up with are happening in a an environment where the underlying cost of the product itself is

going up. how long can you continue absorbing that? >> we'll see. so far we've been able to do it. seems like things are easing off a bit on some of the costs that are spiraling way out of control. we'll see how it, how it, how things handle themselves over the next few months. right now we have no intention of raising price. we think the consumers deserve a deal and a break. we're trying to give them that break. neil: they like it. guys seem to like it? >> definitely agree. neil: much better here than the chipotle segment. i'm not saying that you come back soon. very good. don, thank you very much and mike, kevin, want to thank you. >> thank you. neil: aren't you supposed to be producing this show? >> supposed to be in your ear right now. neil: that's great. we just rock and roll here. more after this.

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muck flub we'll have a house party, we don't need nobody. ♪ neil: all right, housing can be a bumpy ride when we're already dealing with a quarter with prices as high as they've been ever, and the increase the highest year-over-year in about, like, 30 years, so that's the backdrop for what some are saying might be a correction. we already got a lot of a hint of that, contracting about 1.4%. but if that is dissuading

investors, they have a funny if way of showing it. the dow up about 500 points, nasdaq and s&p racing as well, so some issues are coming back. you know the drill here, it isn't final until 4 p.m. eastern time, three hours from now. we had similar triple-digit gains at time, nothing of this size. either way, we're keeping on top of that, keeping on top of housing. gerri willis, yesterday she was -- where were you yesterday? >> we were in connecticut. in a house that was incomplete and cold. neil: yes. and very, very nice. a very nice neck of the woods. [laughter] apparently, that's the backdrop here, right? different housing markets but still very, very strong. >> very, very strong and, in fact, home buyers are getting a bit of are' peeve this morning as mortgage rates eased slightly for the first time, the 30-year pixed rate mortgage averaged 5.1% percent week ending april

28th. don't pull out the party hats yet because the federal reserve serve is expected to raise, we're looking at 50 basis points possibly. one higher housing cost that's difficult to avoid, higher closing costs. fees up an average of 13.4% which says the average totals $7,000, up 1,000 since the end of the pandemic. expenses are higher to compensate leonards who are contending with soaring lending production. closing costs cover lender fees and underwriting and, of course, this little thing call taxes. remember that. and if you're keeping your down payment on the down low waiting for a housing bust, well, you might just have to keep waiting. core logic is out with a report showing the vast majority of housing markets will not experience any price declines amid soaring interest rates and housing prices. among nearly 400 regional

housing markets, core logic measured, the likelihood of price declines is low or very low for 86% of them. and the housing markets, they say, are most at risk of decline tax that's going to surprise you, hartford, connecticut, kalamazoo, michigan, and lewiston, maine. neil: hank very much for that. jeff flock following a wore toliesome winking in this, bears watching. we're talking about those facing foreclosure right now. jeff is in new jersey with more on that. jeff, what's happening here? >> reporter: well, part of gerri's report, actually with, is some of the good news about foreclosures. but first, there is a lot of bad news. i'm going to bring you the story with this gentleman here, 5 birth drove lane in turnersville, currently under foreclosure. it is one of, put the numbers up, 78,000 homes that went under

foreclosure in the first quarter of this year, that is up 132% which sounds like a whole lot. in fact, it is. biggest metro areas hit, chicago, new york, l.a. and houston. but this is unlike albert moore who is with k-high -- >> home services. >> reporter: -- trying to help people with foreclosure. this lady came to you and said i'm $95,000 behind on my mortgage. i'm screwed, right? and you said, hey, wait a minut- >> you have equity. >> reporter: she had equity. >> and a lot of people don't know they have equity nowadays. >> reporter: so you're going to sell this home or her, because she can't make her payments, but she's going to get money back which she thought she never would. >> correct. a lot of people think they don't have money or equity in the home when it's going through foreclosure which they do. and we help them understand the

process of foreclosure and how it affects their money, their money in their pocket. they have equity and they might not even know it. >> reporter: so you were able to come in here and sell it, and this home has had a lot of attention -- >> that's correct. there's only a few houses for sale, and when the inventory the's low, the prices go up, and it allows you to make that home sale. >> reporter: there we go. so, you know, neil, we know what it was like, you know, 2008. but all those homes were in foreclosure. huge backlog of homes that weren't sold. and to you didn't have -- chances are you didn't have any equity in it. now because of this market maybe you've got a way out and you can get a fresh start. >> that's correct. >> reporter: so they're going to foreclose on your, neil, on that house you've got down in florida or wherever it is, you've got hope. neil: well, good luck with the leaf blower. thank you very much, jeff. you're the best. the backdrop people maybe do feel against the wall, jay bloom

on all of that, billionaire real estate developer. acquirer of basketball teams maybe for las vegas, i could go on and on. jay, very good to have you. how do you see housing in i mean, foreclosure activity is still a tiny percentage of the overall housing market right now. you hope it stays that way, but generally the tougher times get, normally the more those numbers rise. are you worried about that? >> yeah. we're in the middle of a real estate boom like we haven't seen in the past. and a lot of it has to do with several different factors. up supply chain interruption -- you have supply chain interruption where a $12 piece of lumber is now $80-100, you have low interest rates and a foreclosure moratorium that's pandemic-related. so you have a perfect storm of factors half come together to create artificial shortage. and now we're starting to see interest rates go up fast, we're seeing the forclosure moratorium

start to lift, and you're seeing the supply chain start to get fixed. and when that happens, that artificial, that artificial shortage in our housing market inventory goes away. and the result is you're going to have more new home starts which is going to bring, put downward pressure on pricing. neil: you know, for now i always look at this as a pretty good proxy on how the real players in the real estate industry feel, when the builder confidence is dropping or at least their commitment to build in the future more homes or even make the step in that direction permanent to the rest. does that tell you that they're girding for somethingsome -- something? >> well, i think you're seeing builder confidence drop because you have, again, the supply interruption. it's hard to get the materials, and the materials you get are extremely expensive, so your

economics change dramatically. and then it's difficult to find labor. you can't find plumbers and electricians and hvac service people. so building a home has gotten extremely expensive. and as a result, builders are building fewer homes. and what's happening is that's pushing up the value of the existing home inventory which inventory itself has been, you know, artificially tightened because of the foreclosure moratorium. so you have kind of this perfect storm of elements that have just created this runaway market. but i don't see how it's sustainable. neil: so what happens? is it akin to sort of the frothiness we saw in the housing meltdown ahead of the financial meltdown, you know, in the last real estate bubble, whatever you want to call it? people were buying properties unseen, flipping them, you know, without ever having visited them and making a lot of money. and it got a little crazy. are we going to get crazy here? >> i think so. i remember in 2007 when builders

would have lotteries to buy a house from them, and there were lines. people would camp out overnight. neil: wow. >> so we potentially could get back to a 2007-2008 situation. [inaudible conversations] neil: i'm sorry. what about the hot markets like vegas, florida and everything else? i mean, is that sustainable, or will the momentum slow? or will it be an outright reversal in. >> i just, i think the momentum's going to slow, and i think there's going to be an outright reversal. i just, you know, again, housing affordability is an issue. you have rents that are going up because property values are going up to the point it's unsustainable. people can't afford housing. neil: it's not deter thed your, you know, aggressive posture. you've had a great deal of success doing what you're doing in the real estate world, i get that that, but now to the point of looking at expansion, i mean, is this the environment to even consider something like that?

>> it's a much longer term vision, right? so markets are cyclical, and i think we're heading towards a downturn, but i tend to be a contrarian for the most part. so while everybody's buying, i'm selling, and when everyone's selling, i'm buying, right? so right now i think there's a long lead time. if a basketball team even comes to las vegas, there's going to be years from now, and we'll go through the cycle and be on an upturn again. neil: las vegas got a hockey team, that removed any doubt that the city has some chutzpah. you say it could be years away, there's a lot to go through for that, right? >> there certainly is. there's some very qualified people that are looking at buying an expansion franchise, and the nba hasn't even announced they're going to do it. there's rumors, there's supposition. you know, i'm hoping they'll do it. i think until be great for the city. i think it would be great for the nba. but, you know, it's all in the

hands of the board of governors and the nba commissioner. neil: keep us posted on that, jay bloom, following all of that. expansion teams looking at the reality of the real estate industry. that's a good sign it might not last for a while. how far down we go from here, anybody's guess. he's a pretty good read of that market. speaking of the markets, pretty good read of the highest point of the day, the dow up about 526, weaker than expected contraction we didn't see coming in the first quarter is being seen in a number of ways. it's not really putting a dent in any sector of the stock market in any big way. it's not leading to fears that we're going to be going into a recession. if the quarter we're in is negative, we are the classive definition of a recession. but right now they seem to be hangening on -- hang on a couple of other things. consumer spending remains very strong even if inflakes does as well. -- inflation does as well.

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neil: i guess the country wasn't surprised by this, that russia's trying to say, i think, you can't fire me, i quit. how do you see it? >> we've been preparing for it for years.

we built an lng terminal -- mel nell -- neil: liquified natural gas. >> putin is in breach of his contract -- the. neil: he knows that, right? >> he is confirming what some of us have been saying for decades, that he will one day use the gas as a weapon, and that's exactly what he's doing. neil: all right, is that what he's doing, and is it working? senator dan sullivan of the beautiful state of alaska kind enough to join us right now. senator, this is coming from, you know, an influential former polish minister of finance and infrastructure saying if you think we are deterred, vladimir putin if, by separating our dependency on math gas from you, you have another thing coming, so they're going to find another way around this. presumably bulgaria's going to find a way around this. maybe by the end of the day

germany will find a way around this. but prices at least for natural gas in europe are soaring even if they're relatively stable here. you come from a big energy state. what do you think of how all this is factoring out? >> well, first of all, neil, it's not surprising. putin has been using energy as a weapon for decades. finish and so what he's doing right now is in line with what he's done in the past. and, you know, we're in this new era of authoritarian aggression with the dictators in moscow, putin and aginning, xi jinping -- beijing. but one with of the great strategic advantages that we have as a country is our natural resources, is our energy reserves and supplies. and we can help our allies. we should be helping them and, unfortunately, right now the biden administration in terms of emergency is continuing to undermine the production of american energy. and i'll tell you this, it's hurting american families with

high energy prices, but i'll tell you, it's also empowering putin. it makes no sense to be shutting down american energy like they just did over the weekend when they announced the closure of more than half of the national petroleum reserve of alaska. they just announced that monday, if you can believe it. vladimir putin was smiling when the biden administration made that announcement on monday. neil: yeah, i know your governor on this very issue, he was perplexed by that, to put it mildly. but, you know, the biden administration comes back and says, well, we did open some federal land, and no one's chomping at the bit to take advantage of that. there are a lot of guys in the energy sector and those keen on opening up and tapping energy reserves here don't mean if it, they're not acting on it. what do you say? >> yeah. well, or neil, that's a tired talking point that they're using. here's the facts. from day one this administration, literally day

one of the biden administration has sought to shut down the production of american energy, kill and delay key infrastructure like keystone but a lot of other infrastructure, and then strong arm financial institutions not to invest in the american energy sector. that is what they are doing. it's it's driving up energy prices. of course you're going to have energy companies be reluctant to invest long term, but they're certainly using leases. but here's the thing, this policy is purposeful. they are actually rying to drive up energy -- trying to drive up energy prices. they're quite successful. but when you listen to the rhetoric of people like gina mccarthy, john kerry, where they say, hey, higher energy prices is, quote, going to accelerate the move to renewing bls, they're doing this on purpose. like i said, vladimir putin is pleased. neil: do you think another popular theme among the democrats is to say supply and

demand is is one thing, we get that, but some of the big players, and this goes beyond the energy if industry. i think they extended this to meatpackers and whole searls is and the rest, they're taking advantage of this situation by spiking prices all the more and using the cover of inflation and supply and demand to say, all right, t not us -- it's not us. what did you think of that? >> well, you know, they had this hearing a couple weeks ago where hay brought the energy executive company -- company executives in and berated them for not producing enough. but if you remember, they had a hearing six months earlier, and they were berating them for pausing too much. they were trying to get them to limit production. these are what i call house of representative show trials. look, the price of oil is set on a global market. but when you have the federal government in the united states of america come out if from day one and make it much harder to produce, to finance and to move

energy, you're going to see a spike in energy prices. and, again, all that that does, neil, is it undermines american working families, empowers our dictators. and here's the point that's never made: if we export a lot more clean-burning american lng, that will do more to reduce global greenhouse gas emissions than probably anything else in the world. we have reduced emissions since 2005 to present by almost 15%, more than any other country on the planet, because of the american natural gas revolution. if we do that globally, it'll help environment, it'll help our allies, it'll help american workers, and it'll undermine putin's power. the fact that the biden administration won't do that once again shows how beholden joe biden is to the far left of his own party. >> senator, i was a little surprised when there was this big dust-up on poland and

bulgaria having their natural gas shipments stopped from russia and that they could be hurt by this. now, of course, most western countries have agreed already to stop getting oil and gas from russia, but apparently the phaseout period could be many, many months. so isn't that why vladimir putin's in the position he is? he knows punishment could be coming, but it's a long way off, and there are plenty of eager customers for his oil anyway, so he can afford the bravado and they can't. >> well, neil, i think you're exactly right on that. and that's why we need something that is really a two-part strategy. we need to make sure that we're tightening the sanctions. i've been a big a slow candidate for secondary sanctions -- advocate for secondary sanctions to really shut down the energy trade and exports from russia. that's the most effective way to do it. but at the same time, we need to reassure our allies that we can help, and we can help both in terms of oil but also especially in terms of lng.

but we need the federal government to be backing that. let me just give you another example with regard to our regulators, the bind administering regulators. they are -- biden administration. they are making it hard to permit lng export full-term until nas -- terminals, and all that plays into slowing down the ability to get gas to our allies. it's multipart, as you mentioned, but we could be doing a lot more in our country, and the biden administration if refuses to do it. it's hurting our allies, it's hurting our american working families and, again, it's empowering putin. neil: all right. senator dan sullivan, good seeing you again, sir. thank you. >> thank you, neilful. neil: all right. we'll go to break here and take a look at no break in the buying here with the dow up about 553 points. technology stocks are back with a vengeance, keep in mind with the roughly 2% surge in the nasdaq and buoyed, of course, that data, facebook with better

than expected numbers. not great, but better than expected and it's signing up few subscriber, a rarity it seems these days in technology land. but the fact of the matter is technology is more than making up for this ground. of course, it was having some gains yesterday almost at this time, and those just were frittered away. nothing frittering away right now. we'll have more after this. ♪ dangs on the edge -- dancing on the edge about to take it too far. ♪ messing with my head how i messed your heart. ♪ i'm sorry, got that leave before you love me ♪♪ . we discover exciting new technologies. redefine who we are and how we want to lead our lives. basically, choose what we want our future to look like. so what's yours going to be?

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neil: all right. the twitter takeover is on, or is it right now? twitter's stock is really not budgeting. it's nowhere near elon musk's bid for the company by, what, 10 or 11%. meanwhile, tesla with what's going on now even9 with the slight comeback in shares, the

fact of the matter is he's down about $170 billion. his own market from that, from those highs. so we're beginning to wonder whether maybe this begins to dissuade him or maybe the stock is reflecting, i don't know, charlie gasparino, this thing doesn't happen. >> you don't think it's going to happen. neil: i don't. >> okay. so you are in line with a lot of people on wall street who call themselves merger traders, arbitration -- neil: based on the idea that -- >> arbitration, which is what i'm going to go through when fox tries to fire me. neil: absolutely. [laughter] >> arbitrage. that's the bet in market inefficiencies whether a deal will go through. if you think it's going through, you start the buying a stock. the stock of twitter should be a lot higher right now. is they're not making that bet. and the reason why heir not making that bet is because they think he's not serious. why do they think he's not

serious? much of it stems from the aforementionedded tesla. he's the ceo of the tesla. neil: right. >> he has to at least sell his stock, and a lot of it -- remember, it's a $50 billion deal, i think it's 21 billion in twitter stock that he has to pledge as equity. the rest is debt financing. they don't think he'll do that. and then they start talking about his tweets lately. now, listen, musk has always been a crazy tweeter, as you know, but you see the stuff today, i'm going to buy coke -- the cocaine factory. [laughter] that was great. he attacked trump the other day, truth social's a stupid name, i think he said. neil: right. but he could also realize from that that maybe he wants trump to come over to twitter. >> but he also said is something disparaging about the ceo -- cfo of twitter, and though apparently they signed a nondisparagement clause in the contract. neil: but if it breaks up, he has to pay a billion dollars. >> there's a break-up fee on

both sides. is that a lot of money for him? a billion dollars in it is tesla stock is a lot of money, but it's less than $21 billion in stock. i would say be real careful with this theory, mr. cavuto, if you're thinking of becoming a merger arbitrage guy. are you? neil: another factor, china. role of china. >> china! neil: china's very, very important to tesla. no fan of twitter -- >> right. neil: especially twitter's open endorsement of the hong kong revolution, protests, who's to say that china can't use that as a wedge with tesla? i'm just saying that there are enough noise issues here to think that, you know, maybe he holds back. >> let's just get some countervailing arguments. china needs tesla, right? china wants economic growth, and they're having, obviously, a growth problem right now because of the covid lockdowns, so they have economic issues that they might not be able to afford throwing him out of the country.

that's one. number two, there's a whole theory out there, and it's not totally absurd, that he's not going to immediately sell his stock. that the way this thing is structured is it's mostly 51% or mostly, mostly debt. the equity portion is to be determined. he could pledge the equity and not have to sell the equity immediately while he's pledging it, right? remember, he set up three or four, at least three shadow companies or shell companies that he can pledge the equity to that while he's doing that, you know, he could find other investors. so there's a whole theory out there that the tesla trade is well overdone. by the way, if that's true, if he doesn't have to sell his equity, tesla's a screaming buy right now. that a's another coipt vailing -- neil: but whether he margin withs loans against it, it's still the collateral, right? if you're a he's tesla shareholder, don't you get worried? and is that why the stock is

down markedly since -- >> but the theory is he doesn't have to sell it. it's not as worrisome as the market is pricing it in. i would say one other thing -- neil: see, i'm arguing that whether he outright sells or not, whether he margins against it or not, it's put in play, and that could be another reason to say, my god, whatever i made on twitter i'm losing my you know what off on my cash cow. >> right. yeah, that's one way to look at it. the other way -- neil: what if i'm right and you're wrong? >> not ted's steakhouse. they're out of business. >> all pay for the olive garden? >> all the bread sticks you can eat. here's the thing i will tell you, if you look at the tesla, tesla's clearly overvalued. he's got to know this, right? he built it into a great company. it's, you know, it's beating sort of targets and production targets -- neil: but you're anti-electric vehicle. you always have been.

you're not a renaissance man. >> i'm not. you know what i do at whole foods? i purposely park in the lek electric car slots -- [laughter] he knows he's overvalued, and what better way to take an overvalued stock -- neil: i've heard that. >> -- than to go out and buy a toy, and he's buying this great toy in twitter. neil: i don't buy it. he's erratic on this -- >> if he's erratic, then you've got to give him odds that he'll probably do it because he's crazy. >> neil: well, but he could also say -- >> to your point, cavuton if ian, is that a word? neil: do you want me to put in the order now to olive garden? [laughter] all right. he's the best. thank you very much, charlie gasparino. i probably would wager on char ally in a bet like this, but i'm not going to give up. all right, let's go to the constitutional law attorney not

on tesla, but i do want to talk about, katie, what's going on with disney and this fight that it's having right now with governor ron desantis who might be scoring points politically for taking away some special exemptions and privileges the company enjoys, but now we're told might be a big legal hurdle to climb. counties involved that would have to bear the cost of a separation are looking at big tax increases, now some are saying that the golf can't even do this -- governor can't even do this. first of all, can he do this? >> well, i think you're right that a governor desantis made move as a symbolic political move to tell corporations if you're going to get involved in political issues, there's going to be potential consequences, and that doesn't just fall on one side of the aisle. hobby lobby and chick-fil-a had it on the other side of things. i think this is a symbolic political position in this. practically speaking, there are consequences that i don't think have been hashed out entirely. so for all practical purposes,

there can be litigation. disney can sue to stop this, there can be a renegotiation of this new law or really there could be consequences for the taxpayers in florida which uh-uh -- which i think is a greater concern. overall, can he do this? i think he has an argument that this is able to be done. but whether it's beneficial is really the bigger question. neil: yeah, i don't know securities law guarantees and tenets, i do know that they're talking about billion in debt right now that would have to be, presumably if a new entity took over, it would have to be sold or passed over to the new entity. that would lee the state if not -- leave the state if not at least the two key counties involved on the hook for that. and that's something over which a governor and a legislature cannot rule. is that true? if because if it is, that's another can of worms. >> well, again, that's part of the statute pointing to now to

say that florida cannot take away the status without actually taking care of this bill. that would be ripe for litigation in terms of the interpretation of that. but if, in fact, florida does have to take responsibility for that, that burden would fall on the fax -- taxpayers. is this cutting after your -- off your nose to spite your face or will it send the message that governor desantis thinks is overall beneficial for the state of florida? neil: so just to understand the other part of this, tacking, ths involved, they handle their own fire department, police department, stuff that disney has absorbed, that won't be greeted paver by by those residents if it were to come to pass, but is that automaticsome. >> i don't think it's automatic. i think that that's disney if's argument at point. governor desantis has come out and said he does not believe disney will not get away with paying for this debt. i think, again, for practical purposes i see that there could

be some renegotiations of disney's rights in this that would potentially limit the tax liability of those residents. because, again, if governor desantis is doing this for the benefit of florida and for political purposes, you really would have to consider that huge impact on those residents of those counties. so this bill has been very limited in terms of specifics. we have been promised that in the next few weeks there will be more specific details laid out about how this will all come to pass, but i think in the actual statute it's not as clear cut as disney is touting, that they would automatically not have to be responsible for any of that debt. neil: all right. we'll watch it very closely. katie, thank you very much. constitutional law attorney. again, they have had a year work this out, but it is clear that any costs being borne by disney right now as part of this exclusive cutaway, carveout, would have to be borne by somebody. disney is saying, well, if you take that away from us, jump ball, it's yours. no one's jumping.

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and have historically low risk. call today to request your free bond guide. 1-800-763-2763. that's 1-800-763-2763 neil: all right. as the dow and other averages race ahead here, technology's been the story of the day coming back with a vengeance today. even tesla well off its earlier losses. still down on concerns about this whole twitter thing that charlie gasparino and i were getting into. but proxies for technology that had once been high flyers are still under a world of hurt. that includes the ark innovation fund rich in names like tesla, some health care technology names that have continued to take it on the chin. the fund now down about 7%. many case you're counting for the month, down 30%. it was one of the highest flyer withs the last year. what was the case then is not

the case now. remember, with an etf, there is a delay in getting numbers out there, so the closing of those stock prices themselves are generally reflected in the next day's trading. but for this day's trading, not good for ms. wood or her ark fund or invest maniers, but apparently she's had little difficulty attracting still new investors who feel we're on the verge of the bottom and this is a good buying opportunity. lydia hu with us right now, president biden indicating that he is very keep on dealing with student debt and forgiving a lot of it. the only question is how much student debt and how many students. lydia. >> reporter: yeah. hi there, neil. this comes as the administration if has already forgiven more than $17 billion in student loan debt since the start of the pandemic. that's benefited mostly public servants and victim is9 of fraud. but as you say, just this morning president biden now signaling he may go even farther than that. watch. >> i am considering dealing with

some debt reduction. i am not considering $50,000 debt reduction. but i'm in the process of taking a hard look at whether or not there are going, there will be additional debt forgiveness, and and i'll have an answer on that in the next couple weeks. >> reporter: now, today's remarks come as president biden is facing pressure from progressive democrats to cancel upwards of $50,000 per borrower. but while it appears that is not on the table for president biden, if he were to deliver on his campaign promise of canceling $10,000 per borrower, estimates for that cost to the government range from $250 billion to $321 billion. and now many republicans are sounding the alarm. >> it sends the exact wrong signal. and for people who have paid off hair student loan debt sometime in the last year, are they going to get a check? >> the president is wrong. this president and the

democratic party are trying to buy votes. >> reporter: and now the president's comments from this morning also come as education secretary miguel car done a that appeared before lawmakers to pitch his department's budget request for next year to lawmakers. neil, the department is asking congress for $88.3 billion in discretionary funding. that, or neil, is a 15% increase over the current budget for this year. neil? neil: all right. thank you very much for that, lydia hu. aishah hasnie right now also following another development on capitol hill, sort of a return to the nastiness we had yesterday for the homeland security secretary. i don't think beating's over, i guess. what's happening? >> reporter:fireworks. i think my jaw has dropped about a dozen times already, because it's gotten so heated so many times. look, there's a blame game gown on -- going on right now on the hill. the republicans crucifying secretary mayorkas, blaming him for the border crisis while he

in turn is blaming congress for not fixing the immigration system, the broken immigration as he called it. and here in just a sec i'm going to play you this sound bite, a very heated moment where you can tell secretary mayorkas is visibly agitated. watch. >> my constituents want you impeached because they believe you've committed treason. >> are you ashamed for what you've done to this country? >> in response to what you have just said, it is so profoundly offensive on so many different levels in so many different regards. i won't ask you for an apoloy -- >> don't. >> i won't. >> reporter: secretary mayorkas is trying to convince lawmakers, neil, that he's got a border security plan to deal with the impending surge in migration once title 42 is lifted, a surge he himself has said will strain border patrol if it reaches a certain point. republicans say though that nothing in this plan is actually

about securing the border, and we saw that frustration today as mayorkas admitted, neil, that there will be some migrants released by dhs that may commit crimes. but hen he -- then he didn't know if anyone was actually on the terror watch list. watch. >> have any of the 42 illegal migrants on the terrorist watch list or no-fly list encountered on our southwest border been released into the united states? >> i've got data, as respect to each one, i do not know the answer to your question. >> you do not know whether they have been released into the country? that's your testimony? >> rank ranking member jordan, as i've said, i will provide you the data. >> so arizona senator mark kelly, who is a democrat, added this about the mayorkas plan. he said, i've read it. i've got more questions about how and when additional resources will hit the ground. neil, republicans want a vote to extend title 42, and they want the vote because they want to put democrats who are talking about how frustrated they are,

they want to put them on the record, and they want that as quickly as possible. if neil? neil: thank you very much for that. in washington on all of that. meanwhile, shocks and global disruptions, oil being taken away, natural gas being shelfed, almost has that '70s feeling to it, doesn't it? yeah. after this. ♪ ♪ this is what real food looks like fresh real meat and veggies. the food dogs where built to eat. the farmer's dog is changing the way we feed our pets. visit tryfarmersdog.com to see your dogs personalized meal plan.

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neil: all right. inflation is back again. i want to bring your attention to something -- brought up, "wall street journal". he's just an excellent writer, sees the quirks in things. one of the things he was talking about was the russian gas cutoff and greg is with us right now. greg, we are repeating things, aren't we? but in reverse. you note in your column today or article inflation is a result of demand can growing faster than supply, central banks can deal with the demand part. the problem in the world they confront now might be one of the recurrent supply shocks. there's nothing the fed can do about the supply shock stuff. >> that's right. and, neil, i think people keep drawing analogies to the 19. 0s, and i think -- 1970s, and i think there's a part of history that's being forgotten

here. central banks like the fed didn't act quickly enough to curb demand and sop wage price spirals from getting started. but they were also dealing in realtime with all these supply shocks, the most famous, of course, was the arab oil embargo in 1973. but it wasn't the only one. we also had big upward pressure on food prices and other products at the time partly because of higher energy and fertilizer costs, partly because we had crop fail failures in canada and the soviet union. part of our energy infrastructure had to be reworked, and we had all these baby boomers coming, and the point i'm trying to make, neil, is there's just a lot of stuff going on right now that is completely beyond the scope of anything that that any central bank can deal with. so we talk about the russian-ukraine situation with gas being cut off to western europe, we can talk -- like yesterday, for example, indonesia imposed an export ban with on palm oil.

and these are the kinds of disruptions to supply chains that are constantly put you and unexpected sources of upward pressure on inflation. and i think we'll have more and more of those in the coming years. neil: if you're right on the part that there's only so much you can do for supply shocks, i get the that. opec was a supply shock in both cases in the 1970s with richard nixon, later on jimmy carter, but we were very limited in response. so let's say federal reserve does keep hiking interest rates, it risks putting us into a recession, i guess. but the big everybody i shoe not going to solve the problem until the supply shocks go away, but they don't go away. >> so the theory of monetary policy is that it's okay -- i should say it's not a sustained inflation problem if you get a one-off increase in the price of oil or the price of food. what you don't want to happen is for that one-off increase to become embedded in people's

psychology and, therefore, it helps feed these wage price spirals. so in theory, you know, a lucky or skillful central bank can maneuver its way through these things by, say, keeping interest rates just high enough to keep the level of demand in line with the level of supply in the economy and prevent those wage price spirals, but sometimes the luck goes against you. you get enough of these negative price shocks, then it's really hard to come up with a solution other than you just grind down the economy, you push up unemployment, you end up putting it into a recession to prevent workers and firms from pushing those higher costs through the sustained inflation. neil: amazing. i like the way you think and put it into perspective. i hadn't thought until reading your column. history can are e peat itself, not exactly. the potential

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electric vehicle market. fpx nickel. kidney disease affects one in seven american adults. but there is hope, xortx therapeutics is fighting back, with late-stage clinical trials for two drug-based therapies to help slow the progression of acute kidney injury, and chronic kidney disease. xortx therapeutics. neil: still racing ahead. let's see if charles payne doesn't screw this up. i can't keep doing this for you, charles. charles: i fumbled the ball yesterday. i'm charles payne. this is "making money." mark zuckerberg saved this market. investors switching attention after the gait meta response. the numbers were not that great. maybe follow through from amount amazon and apple.