way you create your own fairness in life is to be invested. this is a terrible, awful year but this might be the year that you want to load up. meanwhile i did tease you at the beginning of the show of future president born in 1962, me. liz claman, it's a trivia question i'm giving you already. liz: charles, i know we've been watching the stock market making new fresh session lows, did you see oil? i mean, stock market may be nose diving but crude is below $79 a barrel and we stand at $78.77. what do you think is -- this is clearly recession, charles. charles: this is 100% recession. the energy sector is 7 and crude is broken down and britt is falling apart. this is global recession, global recession, global recession, and it's taking a toll on what was looking like one of the safest bets out there that the rebound in oil seemed a given, china was

closed down, you're starting to pump money around the world it. felt like it was a given and maybe it still is but today that's a serious shock right there. liz: yeah, and folks, it is below where it was before russia's invasion of ukraine. $78.72 in the after market. folks, you can interpret that as, yes, as charles said, fears the economy will slow so dramatically that energy demand will dry up. let's get to the stock market on this friday. it is a vision in red. the dow right now down 791 points. low of the session. we just hit it actually a minute ago, 826 points to the downside. it has tumbled into bear market territory, down more than 20% since the january 4 peak. s&p getting clip #-d by 2-point #% or loss of 104 points and nasdaq down 314 down nearly 3%. the russell 2,000 down 3.6%. the small and mid caps are getting clocked here down 62 points. all right, we have 59 minutes

left to trade. the actions starting to look more like liquidation and investors lighting up their position and no doubt in some cases, it's pretty obvious investors are closing out positions in major names. folks, we've got about 11 dow stocks dropping to new 52 week lows including microsoft, which is around 12:30 p.m. eastern set a new one year low of $235.46 but look at it now. $235.84 so we're really not much above it at the moment. intel standing at $27.26. the new 52 week low for the chip major today, $27.20 and we should check the other chip maker, nvidia we want to look at, $122.75. we're just above it at $123 and change. you could look at intel and nvidia rival qualcomm. this is holding above its 52

week low of $118 by a buck or two maybe because qualcomm made a major bullish announcement. ceo here in studio coming up to tell you about it. you can't deny that investor psychology very much at work right now. as recession fears driven by federal reserve chief jay powell into meeting this week, yes, on wednesday, that the only thing worse than a recession triggered by rate hikes is if the fed stops raising rates too soon derailing efforts to quell inflation which means a recession will likely bruise corporate earnings and hence stocks. that's what the market is projecting right now. the dow cracking through a whole bunch of important levels here. gang, we have the dow cratering about 752 points. now below 30,000, 29,324 right now and intraday, the blue chips took out the june bottom but the november 2020 trough as well. you want to see the chart version of fear? wall street's anxiety index, put

up the vicks smashing through the june high. it scratched above 30 earlier in the session and now it's at 3186. that's a pop of about 16%. we know it has been a very rough four days. charles said it's a horrible week. daily point losses look much more dramatic but we need to show you the percentage moves in the nasdaq day-by-day this week. the belows have been rain -- blows have been raining down fast and furiously and monday nasdaq up eighth tenths of a perez and tuesday the reversals and nasdaq one% and then wednesday it worsened and thursday down 1.4%. shaved off and if you add in there the let's call it 286 point loss you're seeing right now or about a clip of about 2.6%, yeah, it's a pretty significant drop here. what we're not seeing is nibbling around the edges of the burned stock market. not every investor is fleeing

and some are laying low and waiting to bounce till things get bad. some are better than in the mattress. to the floor show and trader and scott bower and scott shelledy. before we get to the mattress to stash your cash, what are you seeing right now? >> tells you how nervous things are and that's what highlighted to me and the bank of england doing what they did and making everything else react as it has, tells me that we were on the precipice. people were already nervous and maybe not vicks nervous but shows me it was that easy to put the market on its heels and what the fed had to do and other global center banks had to do was raise by about 500 basis points in total and the global recession on the heels of the ceo of fedex ask it's real and the market is waking up saying look what the bank of england had to do and other central banks may have to do that.

this global recession is real and the crude oil market is telling you that as well. liz: yep, and, bower, what are you seeing in bond land? if you look at ten year treasury yield. that hit a new about 12.5 year high and we blasted through earlier about 3.8% and now at 3.68% and we've come down a bit. two year still at 15 year highs. you know, lipper reported that u.s. bond funds saw their biggest weekly outflow in four weeks for the weekend ending september 21st. are people fleeing -- you would think they'd flee to shorter duration treasuries for risk free yield. are they now? >> they've started to and something that i've seen that's becoming very popular, liz, which i think is a great place for people to park their money right now is the ivon. inflation bond issued by the treasury. what this is for people that don't know that, it's a combination of a fixed rate and a rate that adjusts with

inflation. right now, that combined rate is 9.62%. that's 9.62% for a government bond. now -- liz: you can only do 10 grand; right? >> right. that's the downside. for mainstream, that's a big number to park an investment. talking 9.62%, that's the place that i would go right now. now, that can adjust down. inflation comes down, as it will, that's going to come down as well. so even if the next six months we see inflation come in 2, 3%, you're still getting 7, 7.5% on this. i think that's an unbelievable place to put your money but you're right, you can only put 10 grand in there. liz: i know, i know but, shellady, you're looking at opportunities in etfs that can get you into shorter term yields, can you not? i mean there's the i shares,

shy. that hasn't performed beautifully over the past year but looking at it right now, it's still, what, about flat on the session. this is a 1-3 year treasury bond etf. where is the best place that you see for sort of the proxy of a mattress? >> well, i'm not so sure that when we come out of this, you'll start seeing 10, 15 or 20% returns in the equity market. we might be in for a little while. i remember 10 year periods where we didn't see that much of a gain. i like -- you know, i like one year at 4% and one year. look. you can also play the longer term bonds not for the yield but for the move in the bond; right. you'll see these rates come down and i think the fed's going to overshoot. they're going to be there -- they're on this i want to kill the economy to kill inflation. you know, they're going to kill the patients of kanger. cancer. that's all they know how to do. the longer duration i would get

involved with for the movement and the bond. the shorter duration i'd hold for a year to get a tax break and get 4% on one year. the other thing i will say, common sensely to scott's pointed, if you do have $5 or $10 grand in cash and have a credit card debt balance, you'll be paying $28% on. pay your credit cards off. pay them off. i can guarantee you a 28% return on that. liz: bower we were looking at credit card stocks on wednesday and fed made announcement of hiking rate and average credit card interest rate like 18%. we know mortgages are going up. what does that mean for different areas of the stock market whether they be the mortgage guys or the credit card stocks? >> it means a lot of pain in the short run. one thing people can do and not sure they're so aware is if you've got an outstanding balance there, there's many opportunities to transfer the credit card where you're going to get a year, maybe 18 months

break of no interest. i got to think that 18 months from now, rates will be lower but, you know, that being said, if you're looking to park money synergy home and you're not going -- somewhere arkansas and not going into bonds, there's two stocks for the long run with great dividends kimberly park and ugi stock. they pay about 4% dividends and about as safe as they come. liz: scott shellady, powell wants asset prices to moderate. he wants them to come down. this is precisely what he wants to see because it means that the perception is now becoming reality. he wants borrowing rates to go higher so that people borrow less and spend less and that will bring down demand hence bring down inflation; correct? and therefore people should be ready to ride a very rough wave at the moment. this is not going to be an easy wave to ride, but you don't sell on a down day, do you? i mean, the only dow stock right now that's in the green is

johnson & johnson. at the moment all are down week to date. you wouldn't sell on a day lake this, would you? >> no, no. and here's the deal, you're right. you're exactly right. if you've got a longer term time horizon, 18 months even and as short as 18 months, you're not selling now. they're on sale. i love the energy sector so out of style. you'll have great returns there as the world wakes up to the fact we're using more fossil fuels every year. that's another good place. so stick to the things that you think are going to be on sale that will be good that got us to where we are. don't get off the horse that got you here per se. don't risk on some crazy 100 times earnings valuation stock right now. no. that's really, really going to come in when you have rates doing what they're doing now. however, there are some great stocks out there that if you do a bit of homework, again, in the energy sector, i love that one. i still like the -- exactly. those things are not going away from fossil fuels. it's not happening.

shoslowly but surely they'll coe back in and you'll have them on board for a long time. liz: scott shellady, you want to stay tuned literally for our next guest. our great scotts, we thank you very much. we were talking about the drop in oil prices down more than 5.5% in the after market. look at oil stocks, chevron, xxon mobile, recession fears driving them down and the message from the un general assembly in new york city this week is also adding pressure. next, the australian billionaire in town for the assembly pledging billions to reduce carbon output, scott shellady and starting at home in his massive ore mining metals. andrew forest is with us live on what it's going to take and where it matters even as china

and india doubled down on fossil fuels. we have the closing bell ringing in 48 minutes. the last i want to say half hour or quarter hour, we'll decide if we have commercial breaks if we start seeing bigger and more dramatic losses here but for now, is this big enough for you, 650 points to the downside for the dow jones industrials. "claman countdown" is coming right back on this friday. stay with us. ♪

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first psoriasis, then psoriatic arthritis. even walking was tough. i had to do something. i started cosentyx®. cosentyx can help you move, look, and feel better... by treating the multiple symptoms of psoriatic arthritis. don't use if you're allergic to cosentyx. before starting...get checked for tuberculosis. an increased risk of infections some serious... and the lowered ability to fight them may occur. tell your doctor about an infection or symptoms... or if you've had a vaccine or plan to. tell your doctor if your crohn's disease symptoms... develop or worsen. serious allergic reactions may occur. watch me. liz: all right, at least the dow jones industrials is off the lows of the session, which by the way and it's like a moving target, a loss of 286 and dow

down 694 and cole stock getting -- coal stock getting crushed with the rest of the market. pea body, archery sources. natural gas, flip over to that, seeing a second day of losses after britain yesterday lifted its ban on fracking for shale gas in the united kingdom calling it a crucial move to strengthen the energy supply because the russians have cut them off in a great way. but weaning the world off fossil fuels has been a driving theme at this week's united nation's general assembly, and it's not often you have a billionaire businessman in the mining industry, which uses a lot of fossil fuels leading one of those conversations. andrew fores, the mining giant in australia made a commitment in front of the un secretary general this week to spend more than $6 billion by the end of the decade to hit the company's

net zero emission goal. this is an easy start. andrew, how will you do that in just eight years. >> liz, we'll do it quicker than that, and it's such a great financial solution. if you could look at me like a u.s. central republican capitalist, they'd be doing that too. one off i get a billion back every single year from that point on instead of smoking a couple of billion into the sat matchuatmosphere, never seeing t back, i get to see it in hard assets on the ground and make the renewable energy forever. it's a really good financial transaction. liz: i am hearing you with a very strong -- i can't even say undercurrent. overcurrent of the voice of a capitalist, a businessman. this is just good business is what you're saying? >> this is great business. this is about reducing our costs, this is about greater dividends to share out and making us even more competitive

and i got to tell you, the inspiration of the united states and joe mansion and all you guys and they really disagree. liz: there's guys that feel any push to our climate change cost more versus help. liz: talk about that. we're -- >> talk about that. we're lining up billions of dollars worth of investment and lining up jobs. 350 good paying jobs; right. that's just the start. that inflation reduction act makes north america the best place to invest. if you want to build batteries, solar panel technology, you need thousands of people. it's capitol intensive and out

in the boondocks where big old coal mines shut down and chemical waste lands and driving me to invest and incentivize to invest and poverty and unemployment is most and that's exactly where we need the jobs. liz: the mining industry is mining intensive and runs on heavy machinery on diesel fuel. how long will it take you -- i ask this because we just recently had larry fink of blackrock on. now, he's very big on environment and transitioning to clean energy and he told us on fox business, it's going to take five decades to transition. you're saying you can do it in less than a single -- >> it'll take a zero off that number. i reckon we'll have most of the construction done in about fivee years. 27, 28 coming out of construction and we've saved at that stage a couple of billion

in not smoking fossil fuels and by the time we reach the end of the construction period, they're easy to assemble. as soon as you plug them in, you're saving money straight away. we saved $7 million last year and started last year. we finished our construction and we'd have saved $3 billion. i mean, that's not chopped liver and we saved $820 million every year and this is such a great financial deal, and we're going to be forced by the ira, by the inflation reduction act to put our manufacturing in the industrial lands of north america in your country because you can't go anywhere else now. you're being driven by the ira to invest and employ here. liz: i'm pro environment. i want a clean planet. i need to ask you about business those in particular because you have big partnerships in china. you sell iron ore to china, and often because it's not exactly like the chinese are giving us economic data that's verifiable

and the way we look at it is look at iron ore exports from australia to china and how is the economy on the ground? building skyscrapers or going cold. can you give us a window on exports to china? >> we make a great deal of money out of exports to china and we're the last coast of iron ore producer in the world. our cost is about 16 a ton and sell for $90. this initiative to go post-fossil fuel to make all our own energy, 100% renewable, no pollution, post-fossil fuel saving another $4 a ton. we're the last coast in china and going down from 16 to 12 after this and the chinese are buying it with everything they possibly can, liz. once we do this, of course we're going to produce green iron ore like zero carbon iron ore and they'll take that and say, hey, we're getting green iron ore for the first time. we spend a bit more money, we can make green steel. that'll eliminate that huge haze

you've got over beijing and shanghai. liz: it's horrible. >> you know it, liz. this is going to strike at the heart of that pollution so the chinese are saying, track it in. in their case, ship it in. liz: andrew, thank you so much. i have to ask you before we go, if your heavy machinery is not operating off diesel. what are you planning to run it on? >> okay. i have the biggest trains in the world; right. they cart 40,000 tons of iron ore 500 kilometers away all the way down to the coast. you wouldn't notice the altitude, it's about 600 meters, but that energy of tabooing all that weight down the hill is weighing up par boll ick gravity and put it in a bait reigns leading and send the hill back up the train and no source of energy and no pollution. infinity train. that's what we're doing, liz. it's things that are basic technology.

batteries and hydrogen in our trucks and this is not real concern. and green hydrogen. it's so valuable to us because we're replacing diesel and oil. liz: when you do it, we want to see you do it and see that moment. thank you very much. >> we're making it happen, liz. liz: okay. andrew forre st, australian billionaire that's going neutral in just a few years.hi we'rtee coming back on this down market day.

liz: i told you guys, we're keeping you up to date every single tick of this market and what you'll see with the s&p is we're coming up off the lows. pretty decent number here. low of the session, 110 points to the downside we are now down 81. it's a start. let me tell you what's not helping, nike, hitting a two year low after jeffreys cut its price target on the sneaker maker. the financial group is worried that long-term inflation and declining sales in china will cut into the footwear manufacturer's profits. we had other analysts saying that earlier this week. but right now nike continues to fall about 2% all though you can see from this inter-day picture, it's slightly off the lows of the session. it is still at $96.64. fubo, you want to see green.

that would be fresh. it's on the rise. up 4.8% after web bush analyst michael pacter recommended that investors buy this stock. pacter upgrading fubo from neutral to outperform providing a compelling entry point and this is a big streamer. live channels all over the place. we are on it, fox business. there's also fierce competition. pacter is still keeping his price target at $6. fubo at $4.12. a wild finish. did you see this from my beloved browns? this time a happy ending with a cherry on top. cleveland had the lead in the fourth quarter with seconds left on the clock when the steelers tried just a desperate last minute lateral tossing play but my browns were all over it cause the steelers fumbled eventually falling on a loose ball in the end zone for an additional touchdown and why you say are we

telling you this, liz, cause we're not a sports network. the browns probably cost some online betters a few bucks. let's look at betting sites here. we have pen national gaming losing 1.8%, draft kings down 4.5%. flutter, parent of fanduel, it owns a big section of it, down 3.6%. i could look at that repeat about 50,000 times. sorry, steelers. cruise stocks sinking as fears of travel interruptions from hurricane fiona weighing on people's minds. tropical depression 9 forming over the central caribbean sea and that could become tropical storm hermin e later today. name it liz. later today this could happen. it could add to travel woes. look at cruise stocks and they're hurting.

royal caribbean down 5.8% and gets worse looking at norwegian 6.6 and carnal down 7.4%. we just talked to billionaire andrew forrest about secret iron ore shipping method to forecast the chinese economy and look at how much australia is exports iron ore to china and fedex package volume has prune to be a proxy? its own way for consumer and business economic activity. stock right now down 3.5% and had a very rough week. we remember what happened a week ago friday. we sent madison alworth to a fedex location in new york city and warned of a worldwide recession as i said, madison, last friday. >> reporter: that's exactly right, liz, we're getting more from that earnings report released yesterday and fedex is pulling back and charging you more. they'll be taking less

deliveries and have less stores and less flights and globally there's less shipping and people are paying less. there's q1 earnings that came out and profits fell 20% from a year earlier operating income of fedex express fell by 69%. that is really important indicator because that shows that americans opted for longer shipping methods rather than paying a premium for a faster delivery. making up for the losses as i talked about at the top, fedex will raise shipping rates by 6.9% in january. last year or beginning of this year 2022, fedex lifted rates by 5.9%. that was the first time in eight years the increase was above 4.9%. look at different categories within fedex, freight shipping and they're increasing that by as much as 7.9%. the same time the company is trying to win back some money. they say they expect to have

generating savings of $2.2 to $2.7 billion like stopping sunday deliveries, closing some offices and grounding some planes. this comes after the fedex ceo warned of a worldwide recession saying fedex is "a reflection of everybody else's business which makes sense when you think about what they deal with shipping other people's products and other people's commerce". not everyone is feeling the affects of slower consumer spending. costco bested wall street earnings yesterday thanks to fresh food, candice, and gasoline. that last one no surprise l. people love the discounted gas at costco, especially when prices jumped over $35 earlier this summer. costco benefits from the loyal members paying the fees and budgeting more if fewer trips buying in bulk. costco, liz, not immune to inflation and heard from bob nelson and says that membership

rate hikes could be coming in the future. liz. liz: yeah, consumer staples. that may very well hold up. madison, thank you. microchip giant qualcomm looking to slay the supply chain dracdragonwith a fire breather . how snap dragon digital chasesy is firing up his auto business faster than any investor thousand. slowing bell 24 minutes away. now we have two dow components in the green. j&j and home depot is adding to that little bit of festivity here and the rest all in the red. we are going to go special free after this last break because what we see on a friday in the final minutes of trade is an acceleration to the downside or perhaps some bargain hunters climbing in. we don't want to miss a minute of that for you; right. you can't move. stay with us.

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>> despite some news coming out of the auto investor day, the which i am maker down about -- chip maker down 2.25% at this moment. rivals nvidia and intel hit 52 week lows and qualcomm holding above that. ceo cristiano amon saying its design windpipe line climbed to $30 billion, a surge from the $19 billion at end of june-quarter. design wind typically means the company's chips will be used in a way that result in large sales volumes. we're talking about the auto industry chips. additionally, qualcomm announced a deal with mercedes benz as the auto industry snaps up the company's snap dragon digital

chassi platform and put the brakes on qualcomm's growth. the ceo cristiano amon is joining me now. that's really good news. we've been watching this since two years ago when you said we're getting into the auto chip business. >> yeah, this is an exciting time for us. you know, it's a record growth for qualcomm. it really -- i cannot think of anything better to talk about the diversification of the company. what's really happening, liz, we're winning the future of the automotive semiconductor business. the pipeline, in two months went from $19 to $30 billion, high predictability of revenues and we're twice what we said in our investor day last year. we're excited. >> aagree, but this is the year to date picture. we've got an investor audience and looking and saying, okay, great. why doesn't wall street see that? can't predict the

market. i see a lot of uncertainty right now in the current environment. we see that in consumer. we did say in our last earning's call for phone business, we saw some weakness maybe we'll persist for a couple quarters. we don't know. but the story of qualcomm is different and fundamentals of diversification and expanse are all in place, and we saw that with automotive and seen with our industrial business and we focus on what we can control and build the long term story. liz: absolutely. for outrebounded viewers who -- our viewers that don't know qualcomm intimately here. it used to be known as a pure play smart phone chip business, and you have been there for many, many years of course, but you look to that and said, this is dangerous. we've got to diversify. i want our viewers to understand exactly what auto chips do. you've got digital cockpit display, you have car to phone

absorption, drive assistance, connectivity, how about that. >> yes, what is happening with our company and it's very interesting. we always be the company setting the pace of innovation and mobile. we have a strong position in mobile but we realize that the technology that we have can find end markets in different industries that are being transformed. automotive is a great example of that and we're really doing something revolutionary and cars are dealing with change to evs and electrify indication, and the car has all this computing coming into the car and the car gets connected to the cloud. what we saw was a opportunity to build something unique. give the car companies a digital chassi platform, and that's what a digital chassi is. it provides them the digital cobs pit experience for every -- cockpit for every screen in the car and screen entertainment and rear entertainment and smart mirrors and provides autonomy and assisting driving in connectivity with the cloud and

services. it's resinating well. the industry is embracing it and it's reflecting in th pipeline. >> you're the chip guy. ford on tuesday had the worst decline in more than a decade after warning that the chip issue and a whole bunch of other parts issues, are still stuck in a very clogged pipeline. can you give us a window into the pipeline at the moment? >> look, let me talk about chips in general and then i'll come back to the automotive. we're in a very fortunate situation exactly as we predicted and maybe last time when i talked about it, i said for us the chip supply c crisis will end at the end of the year. that's what we see right now. we have no more shortages and we have all the things we have done to put capacity in place are in place and that's behind us. however, we're still short for the automotive industry and it won't ease till 2023. the interesting thing looking at automotive market in the current

environment and seeing there's pent up demand that was not met from the shortage in the packet and it's driving sales but i believe that supply chain will improve as we go to 2023. liz: i want to ask about -- cause it's been a huge topic lately since vladamir putin decided to invoke the i'm not bluffing about using weaponry comment this week. when he invaded, when russia invaded ukraine, they knocked off neon supply. neon is a crucial element that is needed when it comes to etching silicon wafers. how do you deal with something like that, and are we too dependent on certain elements and certain rare earths on country's like ukraine and russia and china? >> okay. that's a broader topic of discussion, and i would like to talk about this resilient of the supply chain in general. look, the industry, we're the largest fabulous company and don't manufacture but we're the

largest customer of many of the fabs out there. i think back then during the crimea invasion, i think the industry kind of understood importance of neon and the industry had large inventory and neon and gas h has not been an issue with the semiconductor area we're in now. it's a way bigger input on neon gas. chips are important and it'll be an essential part of the economic growth. therefore we need to geographically diversify supply chain for chips in the inputs. that's why we're being so supportive of things like the u.s. chips act and european chips act and they're important and we'll need more of them. liz: you guys are churning them out. we'll be watching. thank you, cristiano. >> very happy to be here. liz: qualcomm still holding above 118 and now at 121, which is the 52 week low. closing bell now 12 minutes away. i told you guys we're not going with any commercials now. we're going commercial free because the major averages are

all down more than 4% for the week. this would be the second week in a row where they'll end in the red. yesterday as we look at the markets, we can spread it all out here. the dow jones industrials went into bear market territory intraday and down 499. got to close there and watching this all very carefully but we've blasted through the floor of june lows and even november 2020 lows for some of these indexes. yesterday banking ceos faced a grilling by gop members of the senate banking committee. senators focused on asset managers like vanguard and blackrock and whether there's too much influence imposing progressive policies on wall street's biggest banks. charlie gasparino. >> the senate is kind of interested in this as we're going through like this massive upheaval in the markets right now. be that as it may. senate republicans see a lot of -- it's an election season.

we've got midterms coming up, and they see esg as a really good issue and working with the investing and esg with environmental social governance and it's a way of investing that promotes and progressive values in the environment in board management go through the whole thing. the knock on it is that's not what companies should be doing and i think when you listen to the guys yesterday, because they're so powerful and can invest particularly in banks, they can force the banks as a major investor to change their policies in terms of lending to be more esg focused.

tuntoomey raised the vanguard ad blackrock for holding companiess and buying other banks as a passive stake and investors put money in blackrock and blackrock invests their money and it's kind of like through investors. people like you and i that blackrock could own a big part of a bank like citi group or jp morgan and could impose corporate governance policies. that's what toomey raised, whether it happens or not, i can't tell you because they're in the minority and it'll be difficult to happen even if they become in the majority of the senate and house. this is clearly going to be an issue if the republicans at least get one chamber of commerce -- chamber of congress and it's the fed that has to decide this obviously. the fed has been reluctant to do it both blackrock and vanguard

have received letters they're not banks and have taken certain steps not to be sorted of directly involved in the management of the big banks, but if the republicans get congress you'll have a tremendous amount of power involved in regulation to do this. liz: they don't like the esg ticket. let me say at the top of the show, we had andrew forest who is an australian billionaire in the mining industry. he described himself and said if i were american, i would be a red republican. i am going emission free in the next couple of years. >> larry fink is not a zealot. these guys are intermenting what he's daying -- interpreting what

he's saying in a different way. blackrock and vanguard are so big and they can force so much change at the corporate level if they take a big position. liz: proxy votes. >> right, they don't vote and get proxy firms to recommend those proxy firms are very esg forward. so it's -- if you think about it, blackrock and vanguard could be de-factor regulators here. i mean, that's why toomey is worried and some republicans are worried that there's -- if they're de facto regulators and they're regulating in a woke way, corporations on how they lend. >> would that be trying if they were pro fossil fuel companies? >> i think if -- well, what do you mean by pro fossil fuel? liz: you're saying they don't like the woke part. >> esg is a little different than being pro fossil fuels. in the old days, companies used to say, i'm looking for a return on investment.

i mean, if it's fossil fuels or tobacco, i'll invest in it. esg came along and said, no, no,. it's not return that you should be looking at. you should be looking at something like whether the company is doing good around the world. whether the company is environmentally looking to reduce its carbon footprint. all this -- there's a theory and it's back by good evidence and all this contributed to some of the problems we have with energy exploration and lack of drilling and supply. again, i'm -- listen, i have larry fink on here and it's very, very smart and he's clearly not some sort of bernie sanders esg lunatic. he needs to get that out there on how he approaches it because i think it's much more -- he's much more new answered than it's being

he's not the only player in town. he's one of the big players, but this is clearly a political issue right now. and yesterday showed it. liz: thank you very much, charlie gasparino. folks, we need to look at the volatility index because it's very much a reflection of the fear on wall street at the moment. earlier it was up about 16%, now it's up 9%. so we're seeing some of the angst come out of the market which means stocks are starting to come up off the floor here. it was above 31 at the top of the show, and at the moment it's at 30. let's look at the markets. we're off the lows of the session right now but still pretty deep in the red are.

so let's bring in somebody who has $3 trillion in as sets under management -- [laughter] what is a guy like that doing on a day like this? state street global advisers joining us right now, michael alone. tell us what your operation is thinking about on a day like this where we have seen four straight days of pretty significant losses. >> well, i think it continues to be the biggest story of the year, is the fact that the fed's end game is a moving target. as a result, liz, what we're recommending is to raise some cash here, get a little bit more conservative and think about some of those more defensive sectors of the markets like utilities, for example. so we do think that we're going to get additional volatility as we work through inflation, the fed and higher interest rates. liz: o.k.. now, you just talked about a raising cash. you wouldn't suggest selling losers right now on a day like this simply to raise cash, would you? >> no. again, i wouldn't do anything

too extreme at this point. any day-to-day volatility, again, markets go up, markets go down, and often times when the feeling to do something is at its greatest, take a deep breath, take a ten back. you have a long-term time horizon, you have diversification, those things tend to work for you. but at the margins, liz, i do think that it is important to be a bit more conservatively invested at in this point as well as kind of closer to your strategic benchmark as it relates to stocks, bonds and cash. liz: press all -- russell 2000 right now down 2.6%. small and mid caps, how do you view hose? >> so it's interesting, i do think in the short term they'll continue to suffer as we work our way through this. however, i think the interesting part is that before the economic data and earnings data bottomed, before we get there, we know that the economy isn't the market and vice versa. investors will begin to price many a rebound. and often times the leaders out

of that economic rebound are small cap stocks. but i think longer term they're a bit more attractive than large cap stocks at this point. but you could expect more volatility here in the short term. liz: well, sure, of course. again, people have raised their cash and they are waiting. i've been talking to people who said, oh, man, you know, i thought sofi or nvidia was at the lows a week behalf ago, so i picked some up and, darn, i missed the bottom. people are never really going to catch the bottom millions they're extraordinarily lucky. where do you recommend people park their money as they wait? we talked about this with our traders at the temperature top of the show. we called them sort of different versions of a mattress. >> so i think of on the stock side of things you want high quality value stocks that are paying dividends. those are the types with stable earnings, low debt to equity. you're getting comeback from dividends, aristocrat index attractive right now.

on the bond side of things, sticking with short duration treasuries and higher yields is attractive, not taking on too much credit risk as the economy continues to slow. and then finally, we do think that eventually commodities will rebound as inflation remains high. you were just talking about it with charlie. liz: yeah. >> there is a significant amount of constraints on the supply side of things on the commodities front, and we do think that longer term that's a benefit. liz: yeah. oil right now down 5% in the after-market session. and, again, brent crude as well down about 4.3%. i'm looking at these sectors or, big financials all in the red, european banks, grocery, discount retailers, there are a few green ones. oil names, restaurants in the red, regional banks. it's really hard to find a place to hide in a rout like this. what do you expect next week, any kind of bounce? >> i think the biggest thing next week is going to be the personal consumption expenditures release on pretty. that's the ped's preferred

measure of inflation -- fed's preferred measure of inflation. hopefully, it continues to slow. that'll be a market mover. and i think investors are in an uncomfortable spot. we're rooting for bad news equals good news on the job market with jobless claims. liz: it's good to have you. michael arrome of state street. with by the way, folks, the dow falls into a bear market as the major averages slip for the fourth straight day. we'll see you monday. ♪ ♪ larry: hello, folks. welcome to "kudlow," i'm larry kudlow. so the u.s. midterm elections cavalry arrived early in london. what do i mean by that? well, the new british prime minister, liz truss, has laid out a terrific supply-side economic growth plan which looks a lot like the basic thrust of kevin mccarthy's commitment to america plan. let's start with truss. he is slashing tax rates and deregulating energy. i just love it. that's the liberal