tv Cavuto Coast to Coast FOX Business October 13, 2022 1:00pm-2:00pm EDT
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neil: hard to believe it has been 40 years since that was the number one song, olivia newton john, ronald reagan was president. don't get me going on. let's go to connell mcshane, markets jumping after they were tumbling. we have been in a thousand point and saw more than that. >> that olivia newton john interview was excellent. neil: waters run deep. >> basically today, the associated risk was down, to the exact opposite of that. we start in the bond market and work our way back from there
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because one of the headlines was the 10 year yield dropping 4%, dropped below that. 3095, it is up and down, the logic earlier in the day market wise, the cpi, interest rates next year will be higher and a headline out of europe which said something different, the european central bank sees a lower rate take, compared to what the market is or where it anticipated. maybe it started and got us in the right direction and once you get going in a direction like that things can change, the dow was down 550 at the lows, go down 550, that is a 2% rise. of talking about individual
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stocks i would pick mcdonald's and chevron which started us in the right direction but more than 4%, $10 for mcdonald's and they are leading us higher. nasdaq is more interesting because it was getting hammered. anything growth related was down, nasdaq was up by a fool one. 4%. %. a lot of growth stocks were up and looking at individual microsoft, alphabet, chesler, 3 examples of what has been a trend today, hit 52-week lows during the session. a hit new low and look at how it turned around so that the sign you see investors buying a dip, putting in some sort of bottom ahead of ourselves on that. we are talking about this tomorrow and ahead of that jpmorgan and wells fargo, up by 11, 5% in the case of jpmorgan, with more lending with rates
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going up and risk associated with a slowing economy so a balance of the two focused on anything to see if the bank continues tomorrow. neil: i am always curious, how do you prepare your family, obviously you have taken some hits. how do you tell your kids we have to tighten the belt? >> years ago you said you cut your kids off completely and that was the way to do it. neil: one off of the other. connell: that is kind of interesting because i have been looking for that, at least one of them is preparing to enter the workforce. may be suggest grad school but it is interesting because it is different, a different economy
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than it was 6 months ago or a year ago. people's mindsets would be difficult if the hiring environment changes but one part is held up. neil: my oldest guy, a pity, put the fear of god in, just throwing it out. why did i show up in this studio? we've got luke lloyd with us, all kidding aside, a lot of people seriously say even with the comeback today the fact of the matter is this is still a very rich market. do you think this is still a rich market? >> i do. there is a thing called instant gratification getting a lot of people in trouble and two sides, what is the investing side. everyone is holding onto the smallest moves to rock 'n' roll with the market higher.
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we don't have a lot of good news. a lot of bad news. a lot of headwinds ahead we've got to get through and a lot of people itching to buy that dip. on the second side the consumer side, a lot of people want instant gratification of buying things. many people think spending other people's money through debt, you want a new car, they went to get a new car. if you go to the restaurant, harold that works fine and dandy, booming with high ticket items with low cost debt. when you are in an office environment, make lifestyle changes, seriously question about whether they are lifestyle changes that go into debt until they completely default. a lot of people preparing for that, with the unemployment report going up.
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neil: if you are hoping for a market turnaround it is not in the cards. >> i don't think so. you have to be patient. this is a marathon, not a sprint. it will be a v-shaped recovery, we are going to be in this probably until the end of 2023. next 6 months will be rocky. neil: thanks for that. courtesy of the wall street journal, netflix will charge, 6000 $0.99 a month, for supported tier service, it is about the same time similar plan out of disney's streaming tier is initiated so we are seeing more of these big players and streaming go this route. what do you make of this?
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all right. we will try to fix the audio. what do you make of this? >> technology on that side of the economy you have to be careful with if interest rates rise, a lot of these companies are financed through leverage and a lot of people for the last 13 years since 2008-2009 what happens when interest rates rise, they have to rethink their operations. they had to raise their prices higher which comes with inflation so all kinds of variables, a lot of companies along with some people are going to get themselves into trouble and not be patient or think it is a marathon and put money to work too early and get themselves in trouble. consumers and companies.
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neil: apologize for the problems we had. if you want to hear you have to pay extra but what do you make of this netflix move, the new tier will initially be available in a dozen countries in the us, uk, canada among them but this is the trend, following others. >> to diversify, it has subscriptions. over one monetization in place. it is a short-term fix, don't know how many will sign up to watch more movies with ads. that works against the netflix model but they need to look at other monetization models especially ip licensing, putting product into stores,
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the way disney takes its empire and gets new things from theme parks to stores to licensing to merchandising, that should help them. the short-term is good for netflix and long-term they need a better strategy. neil: we will see how it factors out, stock is up on this news. a supported plan, it is coming ahead of -- a month ahead of disney plus, a streaming tier for one dollar less, this is the way the world is going, squeeze what you can. let's go to edward lawrence, a pay-per-view event, fine with the administration, not only what is happening on the energy front. what is the latest? >> the president making a west coast spring, waking up and
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he's going to tout his successes on the west coast. he's waking up to gas prices in los angeles at $6.25 a gallon. in california much higher than the national average which is $0.09 away from $4 a gallon. the president also stepping into an area where crime is rising and people are increasingly fed up by that and in a reuters poll 30 one% of americans view the economy as the most important issue, number 2 on the list crime. the top 4 concerns, 3 of them adversely affect southern california since the president took office. the first leg of his trip the president talked climate change. >> president biden: i signed the bipartisan infrastructure locking inflation reduction act, the largest investment in climate ever in the history of the world. investing billions of dollars to protect our iconic outdoors, and address the devastating influx of climate change.
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>> the same in california, the white house approaching one year, it was signed into law, the president plans to accelerate the pace of design construction and permitting not by changing regulations but creating a government hub, governments are skeptical. >> i made a mistake, the government spend like drunken sailors, i was a drunken sailor, we don't quit drinking, just keep printing money. that is the problem. >> white house economic advisers confirmed no change in any of the policies from energy to the economy to regulations this white house. neil: who was advising the president? not talking about climate change, i'm not minimizing that but it does seem tone deaf in an environment where markets
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are getting shellacked or all over the map and inflation figures get worse and won't get better, you want to pivot. they are not pivoting. >> that disconnect with the president, he tweeted out a picture showing an update from white house economic advisor brian deese on how the economy is faring but all of these events, not addressing the moment in hand, what is happening today, it highlights the economy for americans they are seeing a huge problem, looking at these successes in the grocery store they see eggs up, 30.5% and they say that is not a success, there's a little bit of a disconnect. yesterday he was advised by brian dietz.
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neil: edward lawrence, speak english. there we go. and i get a discount? let's go to governor asa hutchinson, he's kind enough to join us. i was mentioning the tone deafness here and i'm sure republicans are trying not to suffer the same fate but when you hear what is happening on the price front, what would be your message republicans have now to what they argue the president isn't doing now? >> you characterize it quickly, tone deafness, when you look at the issue of violence in our streets, there is not any specific addressing of that issue, republicans are making it an issue and it is on the hearts and minds of the people of america. you look at the inflation about president is trying to address unsuccessfully and consumers had two big lows.
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opec made clear prices will go up in the long-term and we had proof inflation is going up. i talked to people in arkansas and this hits them hard, from their farm and they got hit and there is some tone deafness and ineffectiveness on this and minimal shifts because as you go into the election those are the issues on everyone's mind and this administration is not effectively addressing it. neil: this is the final meeting of the january 6th committee going on live as we speak, i don't know what will change here, don't know if republicans take the house, what happens in the final report. it all comes out at the end of this year but democrats say the
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political needle is moving at this is resonating. do you agree with that? >> i think early on in the hearings, 3 or 4 months ago it had an impact and i think capturing the minds of americans, but since then you had hurricanes in florida, you had high inflation, violence has increased. today it is a nonfactor. and might be important substantively and the whole issue is important but in terms of the election, and moving popular thinking it is way past time for that and i don't believe it will have any impact. neil: do you think this is donald trump's party? he is still popular? it is his for the taking? >> i do not.
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i think he is a powerful voice in the party. he has a large following, but i believe his problems as well as the way he handled january 6th, you see a movement away from him, looking for different leadership for our country. he's a powerful voice, a factor in many different elections, much more to the republican story than focusing on him. people are looking for different options for 2024, and to put our party in a commonsense path. neil: part of that is to seize on bad economic news, tailor-made for republicans to pick up, democrats are pointing to anger among some groups.
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those who are upset about that, might show up in droves, to offset some of the things republicans would experience otherwise. >> there's a lot of unpredictability to the election and that is one element. i think it will be important to see what suburban women, how they are voting and if there is a change, and the frustrations manifests itself at the voting booth. in both sides of this election, diminished on other hot button issues to tabletop issues of inflation, cost of goods and gas and violence that impacts every parent whose child is going to school and worry about them going to the grocery store. these are real issues and that
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is going to be driving this election. everything else is taking second place to that. neil: i think you are right on that. you were ahead of the curve even governor youngercan looking at education as an issue, now in that chairman role of national education policy and what would be the key thrust for you? >> there's not a more important time taking on that chairmanship of the education commission, 50 states look at best practices and education and help develop better approach, but it is not a more important time, you see naturally our test scores are down, result of coming out of the pandemic. i focus in arkansas on computer science education, now i take that to to the nation and am role as chair and we have many
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governors focusing on national security issue that we've got to compete, produce the talents, don't want to ship it overseas, don't want to recruit talent overseas, produce it right here in america. that's a major focus but beyond that parental involvement, also about the reading skills that are so critical. very important time for that and looking forward to that service. neil: great seeing you again, thank you very much. >> good to be with you. neil: the dow is up, kroger, the big grocery chain is in talks right now with albertson's, a deal that would make two of the largest supermarket operators, the largest grocery concern on the planet, keep you posted after this.
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right now there is a summit going on. us and mexico officials are set to announce bilateral enforcement operations on those human smuggling operations happening across the board but no indication yet as to whether or not the us officials will designate these cartels as terrorist organizations despite growing calls for them to do so. the border crisis dominating today's mexico security summit where anthony blinken, dhs kateri alejandro mayorkas and attorney general merrick garland hosting their mexican counterparts at the state department. dhs investigation shows a 500% increase happened at the southern border the last 6 months and they estimated the mexican cartels are making $13
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billion a year from human smuggling. we got a big announcement last night on venezuelan migration. if venezuelans enter the us between ports of entry without authorization illegally they will be sent back to mexico. secretary blinken hitting on the growing fentanyl crisis that is killing thousands of americans. >> still have a lot of work to do, we need to disrupt illicit fentanyl and synthetic opioids more broadly. last year approximately 108,000 people died of overdoses come most from synthetic opioids like fentanyl. something we talked about in recent months. >> reporter: counterterrorism experts believe big business of
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smuggling humans and fentanyl across the border is a threat to national security and they put the cartels on par with groups like isis and al qaeda. they think it is a dangerous situation, whether we are going to designate these groups as terrorist organizations doesn't look like it will come out in today's summit. neil: aishah hasnie, we don't recognize these terror groups. we are behind the 8 ball. >> doing the same thing and expecting the same results. we know how that looks on the border. the designation of these cartels as terrorist organizations is an important move so we can use different resources to target the cartels. neil: the different resources, what would we do differently if they have that designation?
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>> political people in different countries that support these cartels, seize assets from corrupt politicians enriching themselves by supporting drug traffic and human traffic on the border. those are the tools we can use as a us government to put pressure on high corrupt political candidates in mexico. neil: do you think the mexicans are doing anything or enough on this front? they seem to give a green light in the past to those on the southern border and continue to push to our border. they talk a good game but don't really walk a good game. >> at the end of the day the biden administration does not hold it accountable, mexico
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does not do that. what happened under the trump administration were donald trump put a lot of pressure on the mexican border. we saw them put the mexican national guard on the southern border and northern border to stop human trafficking but that was the pressure on mexico. we haven't seen that from president biden. we know these venezuelans are being sent back, don't know how that will look exactly. we are not seeing busloads going back to mexico. neil: thank you very much. the national border counsel, the president there at session highs, the dow is over 30,027. the turnaround might have to do with a lot of stocks but were beaten down with 52-week lows coming back and sentiment from
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neil: we are at session highs. for a while we were down 700 points, but in 1500 point swing, not quite sure but the single catalyst for this, something is going on. what is happening? charles: you know, the rationale i hear is not that the fed will start raising rates, we have a 75 basis point hike in november, no doubt about that and another one after that based on the cpi
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reading which is a pretty horrible number, 8.2%. i expected something like 7. neil: it is getting worse. charles: certain pockets. neil: the rate hikes are not working. charles: why is this happening? there are technical factors at work, head and shoulders. on the other thing. neil: not something like that. charles: i'm not a technical guy. gary smith is a guy that would be good at this. the other thing is banks sometimes markets are related directly to what happens at banks. interest rates are good for the jpmorgans of the world and the big commercial bank, higher rates because they charge more on loans, they charge more on
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products, but what they pay on their cds, bank accounts, checking accounts, the play is by defense and we have a chart of jpmorgan. neil: we can look at the banks. charles: there are significant -- you see? every now and then like a broken clock jpmorgan is up 6%. neil: you try to learn it or see in retrospect the moment you bring up some good examples. what do you look for? charles: my schooling was always in the bond market. i studied bonds and my best sources were bond guys. they literally lay off
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headlines and don't see that far in the future. the bond market foreshadows bad stuff. charles: interest rates going higher. bonds get weird at different times and that is what they look at. in late 2007 and sunday night, chuck prince got booted from citigroup, the guy from aig, mark sullivan, stanton meal got booted from merrill lynch, this is when we had a credit crunch and not a financial crisis, every one thought it was the end of it. the stock market, dow jones traded up to then historic high. then it plateaued and as soon as january came around, bond
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insurers, guaranteed the risky stuff, books and banks imploding, you then had bear stearns, tore the cover off, it went under because they underwrote all this garbage they couldn't sell enough of it and is now worthless as the housing crisis continued so the market missed all this and every bank is infused in the same stuff. it is a tsunami. this is different. what we have now is a wicked bubble in the stock market, risky stocks. neil: that bubble still exists. charles: it is just a matter of time. neil: they tell you what hasn't popped enough. charles: then you have inflation.
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according to my sources, i talked to fred watchers to watch what is happening, before the cpi, that is alarmingly high, saying two more hikes and in january records, look at it this way. the fed looks at what is going on, these guys, meme stocks, cryptos, tech stocks, houses that made a lot of money. and if they lose 30% of their value that is worth it. if a little old lady on fixed income can afford a meal, my mother-in-law, thank god, take care of her, she lives in queens, was telling us her food bill jumped in a week, 20%.
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if she didn't have us, that would be traumatic. neil: who would do that? charles: my brother in law. charles: was like a mother to me. she loves you. it is funny. my family loves you. and they say why put that guy on it? just so you know. such a nice guy. he is horrible, you know what he said, about donald trump. neil: what a joy. 4 minutes after the hour, the markets so unusual, charlie comes by, whatever good was
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change check check check 1212. neil: prices going up, that's the case right now but the fact of the matter is prices go up, they have to adjust the cost of living adjustment so recipients and those getting it will see 8.7% served in that benefit amount, takes effect next year. that is kind of keeping up with where prices are right now. the significance of it right now, the biggest advance we have seen, ronald reagan was president last time we saw a number that big. the national taxpayers, brandon, how significant is
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this increase going to be? it barely keeps pace with inflation as we know it but it is a big deal. >> it is a huge deal. talking about one of the largest increases we've seen in four decades and we use that term a lot whether it is describing inflation or benefiting increases or what have you but we are seeing extremely aggressive action from social security administration which is warranted here. you have to increase these benefits, you can't leave social security recipients on fixed incomes, can't leave them behind in this inflation economy so have to make these adjustments and costs for doing so, tens of billions of dollars in costs that could accelerate depletion of the social security trust fund and that is concerning. neil: a majority in both parties agree something has to be done. we would have to go back to ronald reagan's presidency to
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come up with ideas to stave that off but how do you see it now? >> no one is trying to touch the third rail since president george w. bush in 2,005, tried to inform the program, did not go very well, democrats are talking about tax increases. there's an income on social security taxes currently at $150,000 that will increase to one hundred $60,000, democrats would like to push it much higher, tax increases, the most public policy problems, a more fundamental restructuring of the benefit system is more appropriate here weather is increasing the retirement age are putting more aggressive means testing as part of the benefit program. that makes more sense than raising taxes in an economy having trouble with recession. neil: a lot of people after that kind of stuff. to raise retirement age, that -- in the 80s when they pushed it back and start the process
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pushing back but now long-term to me is like lunch tomorrow. i feel differently about it. how did you think people would respond to adjustments on this, pushing back the age, limiting or narrowing that income point at which you have to pay taxes on it? >> there's a reason know politicians are willing to stick their neck out, people get very angry. it is an unpopular position but an important one to take. somewhere between 10-13 years left in the social security trust fund so politicians want to push that back. there's cost associated with it. the longer you wait to make the change the more expensive and drastic they have to be. if it is relatively small it will push that solvency date much further back.
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politicians don't want to touch it. there's a chance they might raise taxes but beyond that, i don't think there's enough courage and temerity on capitol hill to get meaningful reform done. neil: we will see, great seeing you again. appreciate it. we are promising reaction now, financial reaction to saudi arabia, just what would it be? john kirby might give us some hints next. ♪ c goals. strengthening client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. ♪ i got into debt in college and, no matter how much i paid, it followed me everywhere. so i consolidated it into a low-rate personal loan from sofi.
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neil: we are waiting to hear the administration's plans to react to saudi's cutting oil production to million barrels a day. we are told the administration was sending warning signs. john kirby, the national security council coordinator for strategic communications. very good seeing you. what the administration is going to do, you can tell it
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first. >> we are starting this process. i'm not in position to tell you what decisions the president might make with respect to saudi arabia but you heard him say there will be consequences and we will tee up options for the president to consider and he wants to consider using many of congress who have been talking about their concerns over the opec decision. some are not in town. the election coming up so we will work with members of congress, don't have a timeline when he will make these decisions but the main point, and the relationship needs to be reviewed and take a hard look at whether or not and to what degree that relationship is meeting our national security interests. neil: it is clear to you it is not. the issue is how to respond to that. a number of democratic colleagues on the hill have
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talked about stopping all weapon systems to saudi arabia, don't give them any more. >> arms sales will be on the table. that will be an option the president looks at, the scale, the size of arms sales. neil: but in doing something like that they run to the russians or the chinese and we don't want to do that? >> part of the calculus is you have to remember the capabilities we give saudi arabia is not just saudi arabia's benefit, we derive benefit as well. we haven't made any decisions. don't want to get out of where we are but arms sales are one of the options we look at to see if it needs to be recalibrated. neil: would we stop talking to iran? that was a linchpin. >> the united states stopped
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talking to iran. i assume that in the context of the jc poa, the iran deal that deal is not going anywhere. we are farther from getting it reimplemented now. neil: you think saudi is acting prematurely. >> we think the saudis acted as chair of opec plus by cutting supply when supply on the oil market is the predominant challenge we are facing. we think this was a shortsighted decision. neil: the chances they don't look like they are. >> that is up to them to decide in the main point is it is up to us to decide how to look at this bilateral relationship going forward. you asked about russia or china. they can decide about military support if they decide that is not a feasible approach through the united states or we take
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the military support but that would take a long time. they are focus on american systems. neil: apologize for the truncated time. more after this. so i go triple... with trelegy. with 3 medicines in 1 inhaler,... it's the only once-daily treatment for adults that takes triple action against asthma symptoms. trelegy helps make breathing easier,... improves lung function,... and lasts for 24 hours. go triple... go trelegy. because asthma has taken enough. trelegy won't replace a rescue inhaler... for sudden breathing problems. trelegy contains a medicine that increases risk of hospitalizations . .
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neil: what do you bet that charles screws this up? we're up 820 points. charles, i give it to you, my friend. charles: neil, you know me so well. [laughter]. neil: hardly. >> thank you so much. neil: all right, my friend. charles: all right, folks, good afternoon, everyone, i'm charles payne. this is "making money." if you never gone bunge jumping today is as
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