tv Varney Company FOX Business October 13, 2022 10:00am-11:00am EDT
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ibly1 i like the song you are a mighty good man. got it? good morning. it is 10:00 eastern. there's a lot going on today. we had this report earlier of 8. 2% consumer price inflation rate. the market as in the dow went down 500 points. it has come back, down 287, it has definitely come back. the nasdaq was down 300, now down 200. the yield on the 10 year treasury is now right at 4%. a few moments ago it had been above 4% but that number, 4% yield on the 10 year treasury implies 7% mortgages coming soon. the price of oil is down today because we are looking like we are going into recession, the man should come down, price is down, bitcoin was $18,000 that is still $18,000 done down by
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higher interest rates. 10:0 one thursday morning, mortgage rates, what do we have? ibly26. 92%. up from the week prior at 6.6%. it will keep going up. days you talk about the rate you paid back then. it will go down. ibly1 i paid 12.5%, actually paid 13% years ago. don't think it will go back to that level. certainly hope not. now this, every one. the president is on a midterm campaign swing through three western states, today, california raising money and promoting his infrastructure and inflation reduction act, that is terrible timing. when his motorcade passed gas stations in los angeles charging $7 a gallon, would he jump out and demand the gas station owner cut those prices right now? will he be anywhere near the
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stores cleared out by gangs of shoplifters in california's crime wave? will he say anything about the la city council president resigning amid allegations of racism? she's a democrat. the president is in a tough spot but these are self-inflicted wounds. gas prices, he ended america's energy independence, inflation kicked off but spent by the trillion, crimes the crime scourge and democrats gained about the funding the police. on his western swing, he will not be going to arizona. that the border state and democrat mark kelly, senator, is in a tight race to keep his seat and doesn't want the president campaigning with him, same in nevada. is not going there. catherine cortez mastoh is considered the most vulnerable democrat in the senate and she doesn't want him near her, the president will raise a lot of money, supers were rich liberals of california but it is going to be very hard to
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bring in votes with $7 gas, 40 one% rise in homicides, 8% plus inflation and a migrant crisis, 26 days to the midterms, second hour of varney just getting started. been dominic with us this morning. i got a question. who organized the president to go to california and talk about inflation the day inflation hits 8.2% price in 40 years, timing is terrible. >> they are bad like it is their job. i keep saying this. are you trying to be terrible at what you are doing, the optics here, everything about the messaging and the other thing is keep in mind for democrats who are trying very hard right now to retain any
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kind of vote for these midterm elections, any hope they can hold on in the senate or the house they had to look at this and say the white house is not helping us in anyway, they are becoming a huge drag on everything we are messaging around and no one has any confidence in their ability to sit down and have any solution when it comes to these inflationary challenges americans are facing that are hitting their pocketbooks so hard. anyone with economic concerns is going to their democrat representative right now and saying what kind of thing are you offering, what are you giving us that will solve this problem and they have to basically throw their hands up and say i've got nothing. ibly1 could we see a republican governor, in oregon, we've got -- governor murray is in trouble there, but biden -- go ahead. >> going to say the situation in organization interesting
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which is essentially you have a spoiler candidate in the race who is taking away more from the democrat than from the republican so you could see a governorship in a state is unlikely is that for republicans which tells you something about the level of wave we are experiencing it anticipating across the country. ibly1 never thought i would see the day estate like organ had a republican governor but it is close, awfully close. you are all right, great to see you again. there is one major issue that could spell trouble or president biden and the democrats in 2024. there's a lot of issues but which one is a? >> reporter: i don't think a lot of people would put healthcare on that list but it is and you have the president touting the inflation reduction act and everything they are doing to bring down healthcare costs but then this number from the dallas fed, they predict healthcare inflation is going to hit 3. 9% in the back half of next year double what it is now and
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they say it will stay high through 2024. that makes healthcare presidential election issue. wages, one of the reasons inflation is so high but we've got cpi today, health insurance, insurance is up 28%. that's the largest increase we've ever seen. ibly1 ibly1 up 28%. thanks very much. . this news newshour created list of factors driving up food inflation but they ignored a big one which was -- >> they spoke about climate change but not on the policies the administration is putting forth to combat it. >> if you look at the heat and drought taking place out west in california that is where a lot of produce is coming from and a lot of those crops are lower in yields because of heat stress, that's less food available in the market which puts upward pressure on prices. the bird flu outbreak this year, the second-largest
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outbreak we've seen in modern history it has affected 40 million birds, mainly commercial operations, in that since the price of poultry surging. >> nothing on policy by the administration, house republicans wrote a letter in june to the president and clearly listed its details, everything they can do to help farmers bring down the cost for themselves and everybody. ibly1 we got the news the consumer price index rose 8. 2% in the previous 12 months. that is pretty strong. the market has come back a bit, we were down 500 and now we are down 200. i think this is a red-hot inflation number. what do you think the fed should do right now? >> if i was jay powell i would raise interest rates are point today just to play catch up with the 10 year yield but that's not going to happen. the 2 year yield is 4.3.
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he is way behind. i even watch powell anymore, i only watch the 10 year yield, that is been dictating policy. we see the market bounce, yields went about 4%, now they are back below but as long as they stay elevated it is not good news in the reason the market is balancing is the dow which holds a better down 5500 points in the last two months, 3800 points in the last month so if we bounce here, it will be just that bounce, the main trend has not changed, remain in the bear market that is getting more brutal by the day. ibly1 we've not seen the bottom yet? >> no. we've called the since last november. i'm yet to see something, don't want to blow this thing out, it washes everybody out, a lot of
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hope, a lot of speculation so i think there is more to go and i wouldn't be surprised to see a 50% nasdaq and i told you that 9 months ago. ibly1 any hope from the earnings report that starts tomorrow? >> i suggest the hope is guidance has come down since target at fedex and amd so maybe you get beats but i don't expect the numbers to be that great. my hope, we stayed out of this bear market, 100% of the time, when bear markets end we get big bull markets and i am ready and raring to go. there's more of this nausea before we get there and maybe it is in two weeks we bottom, maybe 3 or 6 months we bottom. i will be ready but i have seen no characteristics yet of any bottoming action. ibly1 what characteristic will define the bottom? what do we look at to say that is the bottom? >> 8 to be so simplistic but it
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really is stocks going down. we don't have days like this week where the dow is up 400 and finish is only at 36. we don't see the dow up 1600 points in two days last monday and tuesday and all gone within 3 days, you go up two steps and pull back one step and build on it and so far it is just not happening and i can say this a lot, the people running the show do not know what they are doing, they don't have a clue, they are reactive, not proactive. i have said this before, we have a president of the united states that economically is as ideological as i have seen in our history and it is not changing, it is getting worst by the day, he wants to change the contractors into employees which is absolutely ridiculous. i keep fingers crossed he wakes up one day and thinks ronald reagan but he's going the opposite right now.
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ibly1 i believe that they are. sharp edged commentary today, appreciate that, see you later. let's see what tesla is doing this morning, looking for stocks that are moving, tesla is down 94%. >> down for the seventh day and a row. one of their semis, the big trucks they are selling to pepsico starting in december the prototype broke down just weeks before they were set to deliver it, don't know why, could be nothing but it makes investors nervous that may be a regular customer driving models but when a company when it is carrying on their goods would not be forgiving of a problem. ibly1 what about carvana, did prices go down? >> they went up to new cars, down 1% in september, carvans amazed down 90%. that is devastating. ibly1 what about jetblue, it is up. >> almost 2% on a down day, that says a lot. go back to the cpi report,
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annual airfares up 4.3%, fastest case on record, it costs you. ibly1 will we fly? >> you have to to see family for the holidays. ibly1 next case nbc's got 3 questions her own network's reporting on john federman's health issues. >> in small talk before the interview it seemed it was difficult for federman to understand our conversation. >> other journalists with federman said they had a different experience. ibly1 a conflict rate there. kayleigh mcenany takes on in the next hour. -- new york city homeless shelters, migrant buses rolling in. what is the mayor's response, put them up in a swanky hotel, we have the story. the central causeway in florida has reopened for emergency vehicles just two weeks after being severed by hurricane he and so how do floridians feel
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ibly1 it is a market selloff but i don't know what jetblue is doing, it is coming back, look at that. half an hour ago the dow was down 500 points, now it is down 120, nasdaq still down one. 3% but that too is coming back, we found some green among the red, grocer kroger in talks to combine with albertson's.
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26 days to the midterms and the damage left by hurricane ian has created real challenges pre-election supervisors in florida, phil keating is there in fort myers. will they be up and running properly for the midterms? phil keating is not available at this time. we are trying to get him in front of the camera and give you a report. meanwhile look who is here now. congressman byron donalds, republican from the state of florida joining me now. governor desantis's performance i think is on the ballot in 3 weeks. i think he has been measured by his response to this hurricane. how do floridians feel about his performance? >> if he's measured by his performance that measurement will be incredibly high. a plus marks for the governor. the thing you want to do in a
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disaster situation is be responsive, be decisive, cut through red tape and get the job done. he has done all those things and our business owners, residents, people on the barrier islands, law enforcement community, fire department, firefighters, everybody singing the praises of governor desantis, even president biden had to sing the praises of governor desantis, his judgment is job. ibly1 democrat states the media in democrat states like new york are looking for anything to criticize governor desantis, an endless stream of he did this, did that, didn't do that but is that not having any impact on the people of florida itself? >> no. none whatsoever. that is nitpicking. that's because you are on the other side politically and have to say something but the reality is he's done the job here in florida. everybody really knows that but politics will start coming back
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because we will always have fights and disagreements especially when elections are on the line but when you step away from the politics and all the pseudo-news coverage which you understand on the ground that run desantis has been a leader, he's gotten things done for the people in southwest florida and throughout the state and not just doing it for the cameras, this work will continue long after the news cycle changes to other things going on in our country. ibly1 sanibel causeway linking the mainland to the islanders back, open for emergency vehicles, that's pretty fast come back. that's a real fast turnaround. >> incredibly fast turnaround. we had another bridge that was able to be rebuilt to temporary status in three days, that is unheard of in the united states building bridges in 3 days even on temporary status.
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sanibel causeway was broken and 5 places. it is emergency used to get workers off the island, two weeks, we anticipate residents will be able to use that probably in another two weeks and so this happens when you get down to business, you ignore the bureaucracy, you do the necessary safety checks that are needed and make sure that stuff is sound but other than that pushed through the red tape and get the job done. that is what the governor has been doing and focused on so that is what voters will reward him in a couple weeks. we when the treasury department is investigating governor desantis, they want to know how he paid for those migrant flights to martha's vineyard. my question is what about those midnight flights organized by the administration? >> that's my number one question. let me get the treasury department on this, to somebody who has been to the southern border four times in the last 20 months, how the federal
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government is paying for the housing for migrants across the southern border, how's the federal government paying for all the flights migrants were taking not just the night flights but the flights during the day, talk to somebody who uses dallas-fort worth as a hub and they will tell you they've seen migrants going through that airport, house at being paid for. number 3, there were unmarked hotels all across the southern border where they were stashing migrants coming across the board because the president and the white house didn't want to leave them in detention facilities with border patrol so how is that being paid for. number 2 for treasury, there were nurses being contracted all across the southern border for health checks. has the federal government paying for that? they want to know how ron desantis paid for that, talk to the florida legislature because they passed funding in the last legislative session to deal with that issue. so i did your homework for you. ibly1 pretty good statement right there. congressman byron donalds, always appreciate it, see you
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again soon. still on the migrant story, homeless shelters overwhelmed come migrant buses continue to come to new york city. come into this, how bad is it? ibly5 the number of people living in new york city shelters had a new record again this week, the latest data shows 62,174 people living in those shelters. the record has been beaten four days are up. mayor eric adams declared an emergency, talking about $1 billion to tackle the crisis. the times square hotel being used the house migrants $400 a night, 4-star hotel will be home to 200 migrant families. city council speaker adrian adams is demanding the department of education get a handle on thousands of migrant kids pouring into city schools.
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adams says there's not enough getting more teachers to teach and care for the deluge of students who don't speak a word of english. ibly1 it is a mess. we are keeping an eye on the market, down 170 on the dow, has been down 500. nasdaq down 180, had been down 300. there is this. despite rising mortgage rates 45% of all homebuyers this year were first time buyers and have a little bargaining power. jeff flock has that story after this. ♪
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shrinking, drying up and directed for them. ibly1 nike, they are down. ibly2 the commentary is positive, raymond james says don't count them out. they are up $99, excess inventory, it all benefits. ibly1 industrial supplies. ibly2 strong industrial demand not so much for the consumer. stock is down 2%. ibly1 take a look at this. this year 45% of all homebuyers are first-time buyers. jeff flock is at a starter home in cherry hill, new jersey, you are talking to first-time homebuyers, what are they telling you? >> reporter: they are worried rates will go higher.
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207 grapple bend road. we just toured this with the first-time homebuyer. and we will show you the pictures of nicholas whose wife just had a baby, they are ready to buy right now. he says i don't have to compete for those multiple offers and huge run ups in prices, this is a good time to buy, take a listen. >> now is the time, can't wait. if i way i am afraid interest rates will go up so time to move on. right now. >> i want to show you the numbers on this house. it sells for $465,000. if you bought it last year, 2,020, two years ago, 3% interest it was $2700 for your payment, now the interest rates have doubled, and out of $3,400, an increase of $726 but
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back here law applicable prominent agents in new jersey, they don't seem to care about that. >> for the first-time homebuyer they are not feeling the impact a buyer who had 3% increase would be feeling. they don't know because they didn't know what the price was. >> reporter: it's not a problem now because they wouldn't get -- you don't get people over asking. >> the repeat buyers that would come in with a higher offer that was selling the house are not trading the low interest rate for the new interest rate, they don't want to do that, you're not getting overpriced offers anymore, given much room for first-time homeowners to take advantage. >> i leave you with these numbers on home values that increased tremendously, 14% in the last year and if you look since pre-pandemic home values up 43% so you've still got
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prices high but people still willing to pay. ibly1 if you've got the money you pay it because you want to get in the house, we will be back to you later, thanks very much. our own real estate guy, mitch rochelle joined me now. and that house was reduced in price, 10 a day of these things. sounds to me like all over the country prices are coming down. >> they are, that is asking price and one of the things that is happening is you still have sellers who are holding onto that 43% thinking the market is higher and there's a big tug-of-war between sellers and what they want to get and realtors saying to them putting the asking price so high is a mistake, you should be more reasonable, better chance of getting above asking price and that is the tug-of-war that is going. the other notification you get is the sales so i look at the
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houses and what they sold for, they are selling lower than asking price but still selling consider blue higher than they sold a year ago. we won mortgage will mortgage rates came in this morning at 10:00, six eighty two, was it? 692. you are almost at 7%. i presume that is really going to hurt the housing market some more. >> it is going to hurt the first-time homebuyers but let's are member this, 25% to 30% of buyers in the market right now are all cash buyers, investors that are buying homes to put them up for rent because we still have a bit of a housing shortage and the other thing from the cpi number this morning, shelter, especially rent has gone up dramatically, rent is going up so you have cash buyers buying a house, they make -- may rent it to somebody because people don't have a down payment. ibly1 is that common? just walked in and buy it outright? >> investors buying them in resort areas you still have all cash buyers coming in with
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houses on the rental market. of the one where is the cash coming from? out of the stock market? >> the house they sold, the house flipping business has dried up but it is still a business. ibly1 the real estate market is in decline? >> one hundred% in decline. ibly1 you don't see a end to it? >> when you get above 7 closing on 8 which could happen in the path they are in it will be a lot of pain. ibly2 how high will it go? >> i said they would go to two, i stand corrected. i'm weary about throwing a number out but you will see twee 8 pretty soon. ibly1 what are your real estate agent friends saying? are they still your friends? >> they are still my friends and i will go back to what i said earlier. there was a tremendous tug-of-war, agents who want a
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listing convincing them to put it on for a lower price. ibly1 fascinating conversation. thanks, see you again soon. airline tickets are supposed to go up in price at of the holiday season. all right. how about this. how much for domestic round-trip flight on average? between thanksgiving and christmas? ibly2 for thanksgiving went up 43% from last year. will average $350 and you can see 463 per person. . one at the average of all roundtrips domestically? ibly2 this is the best week to buy, internationally. you want to go to europe for thanksgiving or an island for christmas it is going to cost you nearly $800 for thanksgiving, 1300 for christmas. i'm so glad i have local family and avoid this but so many people don't, you almost have
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to see your family. ibly1 i'm going to australia for thanksgiving and won't tell you how much i paid for the ticket. need a second mortgage. marijuana legalization has opened the door to all types of new businesses including cannabis consumption lounges. my next guest is called a pioneer in this type of business. i want to know what is cannabis café? we will find out.
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ibly1 i will call this a comeback for the market, dow down one hundred 50. it was down over 300. nasdaq down 187, it was down 300 points. not sure why the market has come back. maybe because interest rates are not as high as they were an hour ago but they have come back a little. how about this one? artificial intelligence was
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able to create an interview between the late steve jobs and joe rogan. ashley webster, help me understand this. ibly5 the 20 minute discussion featured on podcast ai was generated with text to voice software that used previous recordings of both to create a cohesive interaction. ai used jobs's biography and recordings of him to accurately bring him back to life so the fabricated discussion focused on jobs's religious beliefs, his success, his experience while taking lsd and apple's humble and early beginnings. watch this. >> in the early days of apple when we were making the apple 2 and doing a really good job of it all these companies that were giant then are gone now and they are gone because we did something right. apple is successful, it was doing something right. it had vision.
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>> how do you stay on your toes? you have been in the computer industry for 40 years. how do you keep from getting lax? >> have the best product and the best operating system. got to keep evolving and pushing ahead. ibly5 then he picks jobs's brain how he was able to stay on his toes. you see how that works, you cut soundbites to match the questions. steve jobs actually died in 2011 from pancreatic cancer at the age of 56. very interesting and weird. ibly1 what is the point of it? just to show you can do it? ibly5 i guess. ibly1 question, not for you, what is a cannabis consumption lounge? i know they exist. i've never seen one but i am told they are coming on strong. sarah stewart joins me, a pioneer in this business, welcome to the program, great
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to see you. i want to know, describe for me a cannabis consumption lounge. >> thanks for having me. a cannabis consumption lounge is a licensed venue where you can legally purchase and consume cannabis on site which is a massive step in normalization of cannabis. ibly1 how many cannabis lounges are there in america? >> many lounges are not technically fully regulated. ibly1 are they speakeasys? what you are looking for is some kind of legalization process that will allow speakeasys to be open and operate openly. that is what you want, isn't it? >> correct. legal, safe consumption spaces that really replicate and normalize the experience, we are talking venues that look just like the restaurant, bar,
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lounge, movie theater, concert venue, actually selling cannabis. ibly1 are they allowed? if they are legal, are they allowed to sell alcohol as well as weed? are they allowed? >> food is becoming one of the big issues. a lot of places are looking at physical smoke and saying we should not be allowing food in this environment but prohibiting food in some of these locations is causing more harm than good, talking overconsumption of a substance, cottonmouth, physically smoking, water in food, nothing pares better with cannabis than food and revenue streams. if we are talking how a bar or restaurant is successful they have a revenue stream from food and alcohol and you need to see the same environment with cannabis consumption. ibly1 do people roll joints,
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smoking pipes? what do they do? >> all of the above. most lounges i'm working on i tried to aluminate edible consumption. edibles hit the bloodstream differently so we can control the environment a little more with physical smoke. ibly1 this is fascinating to an old guy like me. you will come back to the cannabis lounge industry. it is been tweet months since whitney greiner was detained on drug charges, what is the white house doing to bring her home, the latest, we have an update on that. kazi drones, missiles, put naps ratcheting up his attacks as germany delivers air defense systems to ukraine. the ukraine close to winning? i will ask former defense until officer rebecca koffler next. .
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>> nato has a clear message to russia, there are redlines for nato countries and of article 5 has to be of limited it will be and it comes as more russian attacks on ukraine i taking place as we speak. overnight irani and, kazi drones slammed into the ground about 30 miles from where we are standing right now. some were intercepted by the kyiv region's missile defense system but gives you a sense how tense the situation is lose launches, as fighting rages on eastern ukraine. on the southern front ukrainian troops are liberating villages and towns though over the past 24 hours significant fighting continued where russians are trying to gain ground. ukraine's european allies are working around the clock to help the country for fighting this winter from the cold weather gear they need from artillery shells to air defense systems and this was a major topic for nato defense
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ministers who met in brussels on wednesday to discuss the war and how to get more critical military equipment into ukraine. after widespread russian missile attack on the country, their defense systems are the biggest area of focus this week in addition to joint preparedness for the possibility of a russian attack on a nato country. is what us defense secretary lloyd austin had to say after those meetings. >> the united states it's absolutely committed to at article 5 commitments and we are committed to defending every inch of nato's territory if and when it comes to that. >> reporter: as a result of those meetings 14 nato countries and finland have agreed to new european defense alliance amid russian threats of expanding the conflict. the response to the gathering russian officials also way again with the deputy secretary of russian security council saying if ukraine is accepted into nato it would be the beginning of world war iii, those are serious words from some of the top officials in moscow and it comes again as
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this city remains under attack which this morning we had more air raid sirens in the capital city of kyiv. ibly20 thanks very much. ukraine, we are told will keep fighting into the winter and advancing on various fronts right now. rebecca, are the ukrainians close to winning and pushing the russians out? >> reporter: the ukrainians are winning the conventional war which is why putin is getting jerry, putin is making his last ditch effort. that's why he is escalating. he has unleashed a barrage of missile strikes the last few days across ukraine. 40 cities attacked but he is running a precision strike. he is running out of these missiles. he cannot sustain a high tempo
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of operations and this is why he will be switching to a different strategy. ibly20 some republicans, some conservatives want a negotiated settlement lose maybe a cease-fire in place fairly soon. what do you say to that? >> this is an excellent and wise strategy absolutely. ibly1 i thought you would press for ukraine win. >> impossible for ukraine to win because this is an x essential battle for vladimir putin. he is defending his strategic security perimeter. it is the monroe doctrine, the difference between nato forces in russia reduced to 100 miles and so he can't afford this and this is why he's escalating to nuclear, this is why we heard president biden, our own president warning us about that. i don't usually agree with
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president biden but he is correct because he knows the doctrine and this is why russia is expanding the warfare out of the actual battlefield and into potentially you a cyberdomain which has no geographical boundaries. we had our own banks suffering a cyber attack through the russian cyber, group, we had jpmorgan struck. i have a piece coming out tomorrow, put naps cyberwarfare doctrine. this is where we are going. we need to protect our own people right now. lewin got to leave it there but you favor a negotiated peace now? >> one hundred% because we are on the escalation very firmly. ibly1 we hear you, thank you for being here, appreciate it. britney grinerf lawyer giving
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update on her charges on drug charges, what is the lawyer saying? ibly5 afraid she will be forced to serve the entirety of her 9 year prison sentence in russia. ibly20 we have a problem with your microphone. put your microphone on. can you do that? i don't know. okay. out of time. still ahead. kayla kayleigh mcenany, bill hemmer, larry elder, david bossi. and democrat states the schools stayed closed longer. kept kids kids in masks, impose quarantines, that was about less power and control, not the education and children, that is my opinion and it is my take and it is next. ♪
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