tv Varney Company FOX Business October 13, 2022 9:00am-10:00am EDT
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to believe we are going to have even bigger turnout even bigger majority in the house, this year are with republicans, than i even imagined before. maria: they are trying to distract, and come up with other things to talk about, todd , like abortion as if abortion number one issue on american families minds. >> my money guys tell me, me are excited for republican win in congress because they say if that happens a lot of these losses are going to be -- could tun into wins. maria: cheryl casone to have you all to talk it out with you markets down near lows 455 dow stay stu: good morning, everyone. this is the big deal of financial reports. consumer price inflation. here's the big number, prices up 8.2% in the last 12 months. that is down ever so slightly from the reading in august.
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i'm still calling it hot inflation. in september alone, prices up 0.4% and now that is way up from the performance and the reading in august. it suggests inflation is accelerating. one more number for you: 6.6%. that is core inflation. that's the rate you get if you strip out food and energy. that is a very strong reading and really very troubling. next question: what will the federal reserve do with this still hot inflation. the fed watchers, believe me, they're out in force. the market reaction, plenty of red ink on this one. dow off about 470 points. before that inflation number came out, it was up 300 and now down 479 and nasdaq down 308 points. here's the maybe headline of the day: interest rates, they're going straight up. would you look at that. the yield on the 10-year treasury, 4.04%. it can't be long before you get
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7% plus mortgages and the two year, good lord. 4.48%. when i say interest rates went straight up, i mean t that's what energy, that's what inflation does to you. energy price inflation. that's with us. look at diesel. up another 2-cents overnight to an average of 518 and it is up 30-cents in a week. neocomian for gasoline, $3.91 is your average and california still well above $6 a gallon. ironically, the president is in california right now touting his inflation reduction act. oh, boy. bad timing. got to say that. 8% inflation reported and $7 gas in los angeles where he'll be today raising a lot of money from hollywood. on his swing through western states, he's not visiting arizona, that's a border state. you can't go there. beside democrat senator mark kelly doesn't want him in his campaign. look at this, to change the subject, it's the batista and that's the most powerful
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production car in the worship god. 0 to 60 in 1.8 seconds and you'll see it in action. we cover it all. thursday, october 13, 2022, "varney & co." is about to begin. ♪ ♪ stu: ready to go, reupblica. inflation hotter than expected. frankly much hotter than expected. it's accelerating. lauren: this is the last inflation report been the midterms. okay. another scene setter for you. this is before the opec+ 2 million-barrel a day cut of their output. so brace yourself. it's going to get worse. in september, gasoline prices actually fell 4.9% from august.
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still overall inflation at the headline in the core level, hot since 1982 and one-third of cpi and air fair went up, electricity went up, new car prices went up. now the conversation for the federal reserve is there, not do we go 75 in november but do we go another 75 in december? when can you tap the brakes when you're looking at a report this ugly? stu: we better settle this, what the fed's going to do. who better to settle it. we've got two guys with us this morning, adam johnson watching the market and economist professor brian bremburg. adam, what do you think the market will do? >> i'm in the hot seat being the optimist and the bull. it's absolutely right. these are the days that test us and, stuart, over the next
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couple weeks people will come on your show and say the market is broken and i'll offer a different narrative saying the market is not broken but what we're trying to deal with is something that's much nastier and persistent than we thought and certainly than i thought, but i'm not selling because i'm looking further down the road. we will ultimately come through this, and i would also tell you that clothing, cars, and commodities were down in this inflation report but admittedly in this moment, right now today, none of that matters because the bears are in control. i will concede that. stu: professor bremburg, to you. can you see the federal reserve easing up on aggress i rate hikes with an -- aggressive rate hikes with numbers like this? >> how do you do it? these numbers are coming in worse than expected. people don't need the numbers to know what they're feeling. everybody knows this is where inflation is, but i'm looking at that core number and that means the tentacles of inflation
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reached far deeper into the economy than the administration ever wanted to admit and that the fed even wanted to admit and now the feds probably, i think, going to overcorrect on the side of breaking things further. not in the market but in the economy. stu: okay, back to you, adam. where should we put our money? on a day like this or month like this or at a time like this, where do you put your money? >> there's a temptation to just sell everything, and you can understand in a moment like this where people are upset, they're looking at 401ks, the nasdaq is down 35% year to date. selling is not the solution. high quality, solid companies that have earnings and many of which are now trading in the mid teens multiples. we're talking about pes of 13, 14, 15 times. that's historically -- actually within the range. 14 to 17 times is the historic range. you ask me what are you doing with your money? i'm not selling anything, but i
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am staying absolutely long in the high quality companies. i have already sold the weaker smaller ones, and i have rotated into higher quality admittedly even the higher quality ones have gone down. but, stuart, they're also the ones that will come back. stu: yes, question of course is when. >> yes, of course it's a question of when, and that's a very fair question and time frame is a very important issue for anyone. if you need the money next year or the next six months, you probably ought to be in cash. if you have a three, four, five year time frame, this is a opportunity to buy. that sounds trite and insincere and adam says go out and buy on the dip. i have my money or don't have any money left. i understand that. but that is why i am not selling, i'm focused on the quality names. stu: lauren, the rose between two thorns. lauren: i feel bad for senior citizens watching nest eggs go down and struggling to put food
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on the table. the inflation reduction act was supposed to bring the price of healthcare done, it's gone nothing but up, it's up 28% right now. >> is he really out tou tou tout today? stu: yes, he's in los angeles. >> who handles this stuff? two in a row. stu: they wanted to put him out before the midterms to tout whatever they have going for him for the democrats in november. >> that's how you know they don't get it on inflation and keep scheduling these things on the day the numbers come out and think they're going to get better and they done. lauren: it's the last inflation print before the midterms. that's all you need to know. stu: i'm going to move onto discuss the recession if we're in one or whether we're going to get into one. white house press secretary karine jean-pierre walking back more comments from president biden. >> should the american people prepare for a recession? >> no, look, they've been saying this now every six months they say this. >> the president has been pretty
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consist, has said multiple times in the past while recession is possible, he does not think there will be a recession. stu: okay, do you think we're in a recession? >> he has no idea what he's talking about. yes, i think we're in a recession, the question is will it deeper ot or not. stu: what do you think? >> yes, it l. the inflation report is horrible and the feds are raise rates more than they want to and him saying nobody should prepare for a recession shows he lives in a world that nobody else lives in. >> this is a midterm election and if you're trying to root for your party, the income ben party and it controls both houses right now, you're not going to say that things are getting worse. you're going to say they're getting better. i mean, that's the whole story, it's spin central. stu: but you're caught because things are obviously not getting better. >> no, they're not. lauren: he thinks people are stupid because they're paying this and know and it's trying to
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put one over on them and i don't think it works. >> i will say the following, we're already in a recession. we've had two consecutive back-to-back quarters of shrinking gdp, that is traditionally the definition of a recession. i will tell you, and brian, you and i probably see the world differently but it's going to prove to be the narrowest, shallowest recession that any of us have seen. >> i hope you're right. >> just as inflation is at 50-year highs, unemployment is at 50-year lows. i would argue that because we have so much people employed and as we're going to find out over the next few weeks, earnings aren't as bad as we think, we actually are resilient enough, the economy i think is resilient enough to withstand some of the rate hikes you're seeing. >> i want adam to be right. but is it resilient enough to withstand bad policy after bad policy after bad policy. >> that's a fair point. stu: last one, can you put the ten year and two year on the screen. interest rates have gone
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straight up. what i'm getting from this is the ten year up 406, huge, that means mortgage rates have to go well above 7%. where am i going wrong on that? >> that would be good news and i'll tell you why because -- this guy is an optimist. here's why, you want cpi to come down. bring housing prices down. housing is 40% of cpi and we saw the first month over month decline in the national home prices since 2012. i think actually as you play this out over the next couple of months, you will see housing prices come down. that will help cpi. we're not there yet. >> e you know, i want people to know it didn't have to play out this way. 7% will bring down home prices but people saying why did we have to go there? the reason is because we had policy that stoked this inflation so badly and no relief on it. lauren: what's the next shoe to drop? the housing park dropped. what's the next thing to break because of failed policies? >> or labor potentially labor.
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>> i think it's labor. lauren: that's what the fed would run. stu: i have to wrap it up because we're running out of time and i want to show our audience where we are in terms of how the market soaping. way down, 500 points brown torr the dow, 74 for s&p over 2% and nearly 3% down for the nasdaq. lots of red ink today folks. the president is on a campaign tour, a midterm campaign swing through three western states, he's in california, raising money and promoting the infrastructure and inflation reduction act. that's my take on the top of the hour. the inflation is hot and doesn't look like we hit peak inflation. texas congressman kevin brady on that, next. ♪
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stu: that's in wisconsin, just 47 degrees. all right. if you like the music we play on the show, follow us on spotify, just search "varney & co." or scan that qr code in the center of your screen right now. it's a check of futures and 13 minutes till the opening bell and inflation hotter than expected and down 500 on the dow and 300 on the nasdaq. core cpi. that's where you strip out food and energy. that saw the biggest increase
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since 1982. not good for the future. the consumer price index, 8.2% overall. kevin brady with us now, a republican from the great state of texas. congressman, are we at peak inflation? jowski apparent any not. it's overall this report is terrible news for both workers and seniors. nearly a year as the president propsed american families peak inflation and it's on the highest under president bind and food prices are just shockingly high, but now you're seeing housing prices so high as expected and now healthcare costs are nearly 30% up over the past year and if you look at the wholesale prices yesterday, what are businesses paying for inflation. it's clear we're going to see high inflation, it's persistent and right now there's no end in sight. stu: what i mean by -- i need to ask, is inflation going to get worse? if you say no, we've n not seen
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peak inflation, is it getting worse and how long does it last? >> i don't know what the highest level will be. i do know that businesses and others have been paying high prices for their core commodities and ingredients and all of that. i think inflation will be high for another year or two. what's already baked into this economy unfortunately and again, the president drove this inflation under his first bill and inflation reduction act has done nothing as you can see so the president is making no changes that would reduce inflation. stu: would you like to tell us how much worse the recession will get? >> great question. i think we're all hopeful for a mild one but it certainly doesn't look that way. right now you're seeing, you know, an economy that's obviously contracting in a big way. job growth is slowing as well, inflation is pretty crushing for
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a lot of americans. most ceos, about 90% think we're in a recession or the one we see will be pretty rough and some estimates believe we'll have to shed 6 million jobs to get the biden inflation down to a manageable level, and that's a pretty cruel outlook. i hope that's not the case. stu: yes, indeed. kevin brady, thank you very much for being with us on a very important day. much obliged to you. >> thank you. good to see you, stuart. stu: you too. less than a month away from midterms and the governor of texas has a sizable lead over his challengers bork. ers beto o'rourke. what's the topic? lauren: immigration at number 4. inflation is number 1 and they're preserving democracy number 2 and abortion 3. governor abbott is polling 4 points ahead of beto and he's made abortion the key issue. texas has a very restrictive
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issue and he's admitted democrats have not spent a dime or dollar at the boarder and that's a deficit for his party. people say he needs the younger, independent, urban and suburban voters on election day but 48% of the state plans to vote early on october 24th. stu: okay,ment to weigh in on this one? you want to weigh in on this one? inflation the top issue in texas. >> this is how things are playing out across the country and a push by democrats to focus on abortion, but you're getting a sense that even they see they're overplaying their hand a bit on that and doing to exclusion of immigration and the economic issues, and the news is just -- new news is coming on inflation. we got some today and it's getting worse and that plays into november. stu: home heating bills, that's a huge concern for many of us in the northeast and -- what is it, the central states. >> upper midwest. stu: thank you, i got my
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geography wrong. i know that bills will go higher. do you know how much higher? lauren: do you want to hear this? i feel like we're so depressing today. it's how you heat your homes. the biggest increase is here in the northeast where people use heating oil, up 27% from last year to $2354 this winter and october through march. if you're using natural gas like much of the country up 28% from last year and this is the highest amount since 1997. stu: brett, don't you have a home in minnesota? >> i do. i was back in minnesota this weekend spending time with frifriends and it was very interesting to me and this was the issue they were all talking about and recollecting back to last winter and how much more they paid and thinking about this winter. the numbers you're seeing here are compounded on top of last year, it's not just a 27% increase. that's on top of double digits. this again, one of those issues that's going to hit voters even if it's not registering at sort
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of the national level in the polls. lauren: isn't this price gouging? aren't we going to hear from the administration saying heating oil companies, don't raise your prices too much but their prices have gone up. they use diesel to run their trucks to bring you heat to your home. stu: they'll demand o tax on the oil companies with a revenue to subdecides the heating companies. stu: more slippage and down 550 points, that's for the dow. 1.9% for the nasdaq. because of high interest rates, nasdaq suffering down 3%. the opening bell is next. we'll take you there. ♪
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or more right before the number and this is even a bigger drop than we were expecting. i think we have to be cautious on the risk side here and wait and see maybe with our beloved one or two year bonds that you and i have been talking about. if you have to put new money to work today. stu: let me throw this at you. what do you say to buying defense stocks today? lockheed martin -- i know you like them for example. there's a war in europe or ukraine, armaments are being sold rapidly all around the world. i would have thought this was time to get into a defense play? what do you think? >> i do like that very much, stuart and lockheed martin has been one that i followed for a long time. you and i have discuss it had as recently as may, checked my notes. and they are the biggest defense contractor for the u.s. in terms
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of armament sales and they have one teeny business that i love and will pay dividends going forward i think and that's their cybersecurity business and they're one of the best in the world at that. while they're doing all this, throwing off a 3% dividend is not that bad either. they've had a much less rocky road than the rest of the market for the whole year. stu: how long is this inflation going to last and how bad will it be? do you want to make an estimate for us? >> in my studies and a lot of the people i get to talk to, stuart, i've seen the -- a lot of peep want to believe that we've hit peak inflation and maybe the 9% number we got at print we got back in june might just be that number, but it is certainly lingering. i think we may get some postholiday relief but i'm not really optimistic for a big drop before the end of the year.
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bad news, i believe, for the blue states in the midterms. stu: okay. i understand that. dr, thanks for being with us today. very difficult market to play. very difficult market to invest in. i wouldn't want your job, period. i prefer mine. thanks, dr. opening bell rings in 25 seconds. the backdrop obviously it is the inflation report. i'll give you the numbers in case you're join us. they're dreadful. year on year consumer price inflation, up 8.2%. and month on month up 0.4%. inflation is accelerating and here's the market's reaction. the opening bell has been reasoning and now we've started trading. stocks tumble after hot inflation report. that's what the banner says. the numbers say down 1.67%. we found one winner amongst the dow 30s, i can't believe it.
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what was it? lauren: 3m. it's unchanged. >> hasn't opened yet. hasn't started trading yet. stu: puncture that balloon. lauren: got walgreens. stu: they've opened higher. and p500 -- s&p 500 down 2.08% and nasdaq looking for 2.91% drop. big tech, when interest rates group the way they're going up, this is ugly. apple down 2.5%, amazon 5%, meta 2%, alphabet 3% and microsoft below 220, minus 2.73%. susan, what's going on with big techs today? susan: it's because of expectation on the federal reserve and how they're going to raise interest rates and going to get more aggressive. you have all the sudden a 10% probability of a 100 basis point hike next month before the cpi report it was at zero. you're virtually built in
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another 75-basis points in december and another possible 75 in december and by the way, that 30-year yield hit 4%. that's the highest in 11 years. when's the last time you got 4% on a 30-year treasury yield? stu: decades. decades. susan: back in 2011. wall street is pricing in a more aggressive fed and a peak interest rate at 4.8% in march of next year. before this inflation report, it was at 4.5. you obviously the federal reserve has to get more aggressive. i was digging through that report card, rent, food, medical care still pushing higher. i think what really shocked the market was that core inflation number accelerating in september, up 6.6%, highest since 1982. you have to think that it's all because of the rent because the shelter cost makes up a third of that cpi, which is why core surged. stu: can you explain again. lauren: and core is important. stu: sure it is. that's food and energy.
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susan: the main number that federal reserve looks at indicates where inflation is going, underlying inflation and we're still at these elevated levels and no transitory inflation peak. stu: can you explain why big tech takes it so badly when interest rates rise like that? susan: these are growth stocks and value is predicated on growth earnings and when you have higher interest rates, borrowing costs go up and that makes their earnings look less. stu: okay, that's it and they're down today. will you look at that. susan: i would caveat this with wall street and, you know, these are not the bottoms that we've seen this year. we're still, you saw in june as i mentioned to you, apple at 12, microsoft closer to breaking 200 when you call the bottom for that stock. stu: did i? susan: yeah. stu: did i call the bottom on microsoft or did i say -- i was thinking about getting my feet wet in the microsoft water. susan: you were pretty adamant
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saying that microsoft was not going to drop below 200. stu: adamant? >> we've got to have tape on this somewhere. we have to prove it. susan: can we get to the recession talk? stu: what's your take on recession talk? susan: big money and most of wall street, 70%, 75% and maybe even 80 probability of recession and two quarters of negative growth and big money i've spoken to with bridgewater and a trillion in assets and said if we did price in a recession, we would have been down 10 to 25% from levels that we started@the start of october. stu: all grim stuff really. it really is. but we do have earnings season, it is underway. blackrock was reporting this morning they're down 4%. did they do -- this is a down market so they're bound to be down but how did they do? susan: i would say earning season start #ed off pretty well
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and strong. blackrock beating on the top and bottom lines and those numbers dropped from last year. demand for etfs and other low risk products continue to remain strong. i was looking at some of the funds, did you know they attracted almost $65 billion in cash despite the fact you had the worst start to the stock markets since the great depression in 1930s. stu: that's impressive. blackrock to 511. what else? susan: wall green boots. the outperformer today. it was up close to 6% in the premarket before the inflation report, strong sales, strong profit, and they raised their long term sales targets but they do warn that a strong dollar and tough comparisons during the covid vaccine boom from last year will be difficult going forward. stu: okay. you found us one winner. how about delta? is that a winner? susan: it was up, that's completely reversed. we were up about 4% in the premarket and 1% higher a few minutes ago. summer travel boom is driving record sales at delta and ed
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bash the ceo said travel will continue with upbeat autumn forecast. europeans travel was strong and looking to restore the pre-pandemic capacity by next summer. stu: news from the pizza business. domino's sales. susan: not a strong report card, sales meet and profit missed and inflation and strong dollar hurting the bottom line and seam store sales went up 2% and i mentioned to you heading into the earning season, we'll get the big banks tomorrow jp morgan, citi, wells, heading into the earning season, you're looking at slowest quarterly growth in two years. so far whether you set the bottom and the expectations so low, it makes it easier for these companies to beat. i would say if you strip out the cpi report, you had strong numbers from delta, wall green, i would say blackrock was pretty good. stu: tough to strip out cpi report however. that kind of dominates
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everything. susan: of course it drags on the consumer. stu: okay, come back next hour, please, susan to see what the market is doing there. all right, are there any dow winners? susan: wall greens. stu: dow down is 462. that's overall. 1.5%. we got that. how about the dow winners, there is one and that's wall green boots as we pointed out, up 5% and rest on the downside. and p500, domino pizza, wall green boots. wall green boots, comcast, there's no good names -- susan: comcast got an up good day and the rest went down because of fears of recession. stu: yield on 10-year treasury up to 404 right now. hi it at 406 a few minutes ago but that's breaking above 4%. big deal. price of gold is at an inflation hedge? not today it's not. down $26. bitcoin, is that inflation hedge?
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not today. $18,300 a coin and oil, i would expect to see that down if the economy is looking to slide into recession and it's down $86 a barrel. nat gas getting cooler in the northeast and it's up just a tiny fraction. the average price for gallon of diesel start there, $5.18. that's 30-cents more than a week ago. in california, regular gasoline $6.1. 6.19. the president is in california today. i wonder if he sees any of the $7 gas station. coming up, who doesn't remember these tv commercials, roll tape. ♪ stu: who hasn't seen these? susan and lauren have never seen these in their life, and that's a fact. lauren: what year are these? stu: i don't know, before your time. the fda cut honey nut cheerios and other from their healthy
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tornado cash and it's a platform that hides the source of the funds. this lawsuit says that yellen and co overstepped authority in sanctioning the company and infringes on american's right to privacy and hurts investors. well, treasury says, tornado cash, you fail to impose effective controls to stop users from laundering money from my luscious actors to the tune of $7 billion in 2019. stu: $7 billion is a lot of money. look who's here now our car guy. he got to test drive the most powerful production car in the world, the electric pin and ferena. how fast? >> 1877-horsepower. lauren: you need a neck brace. >> you feel like a fighter pilot taking off and 0-60 in 7.81 se7.7.81seconds.
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if you dropped this car off a cliff, it would fall slower than it accelerates and top speed is 218 miles per hour. i didn't get to test that out. i did drive it but didn't hit 218 miles an hour in it. stu: you did drive it? >> yes. stu: and did 218? >> i did not do that. lauren: why not? >> need one of those big giant round tracks to try it on. stu: how was it drive something >> it's heavy as it's an electric car but don't feel it and small carbon fiber body coupe and more like a race car than streetcars and this costs $2.2 million to start. they're only going to make 150 and you can speck it up. every one of them will be completely different and you can spend close to $3 million based on the customization done to it. >> what did it sound like?
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did it have synthetic sound? >> interesting. they have electric motor sound and exterior changing the modes, it gets louder and louder and louder and makes a hum. cooler than some of the electric cars aye been in with the artificial noise and that's the thing, you can change the power on it. go full power or only 700-horsepower if you're just cruising around town. >> getting groceries, 700-horsepower. stu: you've got one of the best jobs driving expensive cars. new report shows new report and drivers have a poor understanding of self-driving technology. tell me more. lauren: we trust it too much and that's the problem. this comes from the insurance institute for highway safety. they say don't trust the car when -- look, 53% of users who use cadillac's hands free super cruise are comfortable to treat as full self-driving. tesla does well too. that's completely not the case. what's the point of having this stuff? i have to say something, my car
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now has every bell and whistle and it's beeping and alerting me all the time and that is more distracting than anything else. i'm like i see that i'm slightly going over or whatever the beep is about. i find it very dangerous. stu: we'd love to have gary comment on all this stuff. lauren: on a female driver? stu: no, your passion for driving. we have a take tafanely break to make money. steve jobs died # 11 years ago t artificial intention brought him back to life for an interview with joe rogan. they met parents once before releasing guidance for school reopening and turns out most of the parents were left wing activists and dock segal passes judgment on the public schools and covid after this. ♪
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now. the cdc and teacher's union runed our public schools. what do you say? >> there was a problem early on closing schools and there was a study in europe and keeping schools open did not decrease -- did not increase viral spread. in other words if you were in school, stuart, you were less likely to spread the virus because they could control the environment. we knew that from europe and here we ignore that had, and i think that one of the reasons we ignored that is because public officials like cdc weren't meeting with parents who were howling and saying, look, my kids can't wear that mask, they're very affected psychologically. poor people, poor communities when kids were sent home, parents couldn't go to work and they were stuck in the house with their kids spreading covid. there was absolutely a tenure to all of this and the key is, the key is it didn't help us to stop the spread of the virus. so it didn't do that but it
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caused tremendous amount of collateral damage and of course all the teachers unions cared about were protecting teachers. they're saying, we didn't have a vaccine yet. let's protect the teachers. we wanted to protect the children and we were saying that from the beginning. stu: good stuff. another one for you, cnn chief medical correspondent defending john fetterman after he symeed to have autotour issues in a recent -- auditory issues in an interview. >> when we talk about speech, it's ability to express yourself through spoken and written word bow receive speech, reception on speech through spoken and written word, listening to him, he sowned like he was fairly fluent in a speech, able to speak pretty clearly. every now and then he'd have a little word sort of mash up as he calls it. stu: all all right, doctor, dou have a opinion on whether fetterman is fit to be in t
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senate? >> i think we need full records, full exposure here. what is going on. the man has an enlarged heart, he'd throw a clot to his brain causing the stroke. he they had to suck out the clot and at risk for more strokes and we need cognitive testing here. can he understand what's being said to him, can he speak and express his ideas? of course the voters need to know that . i don't know if he's fit to serve. i have suspiciouses that he's not, but i want -- suspicions that he's not and i want to see records and a cognitive test and so should dr. gupta who is a neurosurgeon. stu: one more for you. there's another new study and claims that going -- doing a two hours of meditation per week can help older individuals protect against dementia. have i got that right? >> well, stuart, i think you're way too interested in this topic. every time i come on, we're talking alzheimers. you're always thinking about yourself, i'm going to tell you again, you don't have a problem
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in the world. i don't care if you're in france trying to learn a foreign language or meditate or not. i'm sure you do but the point here is that if you rest the brain, it's less likely to deteriorate rapidly. resting the brain, yoga, meditation, yes, being on with varney, very calming, very calming. stu: oh, really. did i get it wrong? the sound? lauren: meditation is not about omm. that's like a word coming together in yoga classes. >> he's not an expert on meditation? lauren: he's not. >> i'd say yoga helps. eating right by the way, eating fruits and vegetables. stu: lauren is a yoga teacher. lauren: yeah, i am. i'm a yogi. stu: brilliant stuff. clear the screen, i have to tell everyone what's coming up much the fda is changing its definition for healthy for labeling food. lauren: it's coming up right now. stu: what is healthy food?
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lauren: not special k. they've changed the definition of healthy. for cereal, i'll give you the facts, they must now contain three fourth ounces of whole grains, no more than one gram of saturated fat, 230 milligrams of sodium and 2.5 grams of added sugar. look at that. when my kids pick out raisin bran, i get excited like it's not lucky charms. special k, corn flakes. >> life is good serial. if you can get your kids to eat life every morning, you're in good shape. lauren: no, you're not, it's not healthy. what are we supposed to do in the cereal aisle now? what cereal is healthy? stu: glad i don't have young children at home because i can't make those decisions. i'd give them fruit and toast. stu: we're out of time, out of time. brian, thanks for being with us. thanks for a fine contribution for the first hour. do stick around for the second and third hours. still ahead, ben, katie, bill
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