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tv   Cavuto Coast to Coast  FOX Business  October 18, 2022 1:00pm-2:00pm EDT

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neil: i will tell you what is going on. see how i connected the song with what is going on? basic cable, some days you get what you get. we are looking at a 300 point rally in the dow jones industrials with averages falling soon. a lot of this is built on stronger than expected earnings which i caveat that with the notion that many of those earnings are ratcheted down. we are early in the process. madison allworth with what is driving all of this. >> reporter: the market came up in early hours of trading. his sins, bath those eyes, strong earnings before the bell extended that rally, goldman sachs used 3% on their earnings, stock currently still up, the latest financial institution to report on monday. we saw beats from bank of
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america and bank of new york mellon. another winner, lockheed martin, stock initially rose 5%. the company has seen increased demand for of 35 fighter jets after russia at invasion of ukraine. 3 of the top gaining stocks in the s&p right now all cruise lines, carnival, norwegian and royal caribbean all seeing a bump. connell getting the extra big boost today on a $1.25 billion private equity offering for refinancing. may be a rising tide lifts all boats or all cruise ships because these three are all top gainers on the s&p today but overall we are well below where we started the day. we had strong earnings showing the market might be stronger than we thought but there are still fears of recession and aggressive central banks held bond yields to go higher. there's been nervous around an additional 75 basis point rate hike from the fed in november
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and potential again in mid december. earning so far better-than-expected and that seems to be giving us a boost across the market. neil: thank you for that. grady trimble in chicago with plans to provide tax credits for those lucky enough to have or get energy efficient homes. if they are not energy efficient they are not going to be. >> reporter: the white house is trying to make people make their homes more energy-efficient, the new tax credit will be up to $1,200 for people who spend the money to weatherize their houses. the white house is claiming that tax credit as part of the inflation reduction act will help that law actually live up to its name and reduce inflation. >> many parts of the bill will start to take effect next year. for example there are tax credits for energy to help people weatherize their homes and bring down other forms of energy cost so we are focused on helping to make that
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transition to clean energy in a way that brings down energy costs for families. >> the tax foundation has a different take telling us on paper making your home more energy efficient seems like it would bring down inflation by lowering energy costs but in practice it says the effect would be tiny in the context of across the economy inflation and take a long time to show up in the cpi data and the cost of weatherize in your home, that is how you get that $1200 tax credit which seems like a drop in the bucket when you add up weatherstripping doors, $95 per door, inspections $320, added pipe installation could run you up to $1000. the list goes on. all told it could cost as much as $39,000 to fully weatherize your house. >> it costs so much, to get the ultimate payback in american
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would have to stay in their home longer than the average american stays in their home. that is why they haven't taken advantage of it previously. it is not cost-effective yet. >> i think it is called on the east coast, feels like winter in chicago today and that underscores the point that a lot of americans can't wait until they are eligible for this tax credit on january 1st to do something or for something to be done about these high energy costs that are expected to skyrocket this winter with heating costs expected to be up to 28% higher from last winter, not to mention that new england is bracing for the possibility of rolling blackouts because of the availability of liquefied natural gas. a lot of problems i think a lot of people would tell you tax credits won't solve. neil: so many power plants are powered by natural gas. thank you for that.
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steve moore, former economic adviser, trigonometry author and many other key insights. you can't force people to do something that even they can calculate on the back of a napkin doesn't add up. what do you think of this? >> i listened to that report and can't tell you how frustrated i am because a good tax system has a broad tax base and low tax rates and what has happened under biden is moving in the opposite direction, they want to raise the rates and create these loopholes in the tax system. mi in favor of people weatherize in their house? sure. good idea but i don't know why the taxpayer should have to pay for that in the form of drained revenue to the federal government so i don't like this stuff. weatherization is fine but all these credits and loopholes and special-interest privileges in the tax code make it a mess and makes it more complicated. i am a steve forbes guy, why
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not have a flat tax, get rid of this stuff. neil: that is something he champions all the time. that's the direction we move but it gets more complicated but let me ask you this about this environment right now. the president likes to brag that he doesn't look at the stock market, he felt donald trump overobsessed about it and he chose not to. now and then i always tell presidents of all different stripes it might be a good idea to take a people now and then as you discovered for a lot of folks they are not too happy. explain. >> i worry the president should not be completely obsessed with changes day-to-day from the stock market. i agree with that but i do think they should be focused on fiscal deficit, i think they should be focused on inflation, they should be focused on what is happening with real wages and those things i think are headed in the wrong direction and the president doesn't have
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any direct control over the stock market whatsoever but if he can control what is happening with money supply, what is happening with this legislation, it's no accident that energy prices have gone up a lot under biden's presidency because there has been a war against american energy, oil, gas and coal, i want them to focus on things he can influence. neil: when the president looks at this as a haven for flat tax, people with 401(k)s and those with pension funds directly or indirectly invested in stock they have been losing, there paper wealth has deteriorated. >> you got it. the last couple days have seen a little bit of a recovery in those bad numbers but the average 401(k) plan has lost $34,000. say you are someone who saved
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up $250-$300,000 which isn't all that much given you are 60 or 65 years old as i am, now you've lost 50,000 in your 401(k) plan because you have to account for inflation. for a lot of people that is a down payment on a retirement home in arizona or south carolina or florida so this is depleting people savings and that is why i would make the case the people hammered the hardest by inflation are senior citizens because they spent their whole life building up their savings and their savings gets vaporized by that high inflation. neil: you don't want as a president to designate everything you do based on how the stock market will react, that can be risky because the market can surprise you. having said that there does seem to be little in the offing here as far as expanded energy production or prospect of
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anything resembling tax relief and i'm wondering if that is putting a lid on the gains we could be getting. >> don't want to be excessively political. i'm not a rah rah republican by any means, republicans are part of the problem too but here's something to think about in the medium-term. the worst scenario for the stock market the last 60 or 70 years has been when one party controls everything, the house, the senate and the presidency. we are going to get a change in the election, the house 95% certain going to go republican. don't know what will happen with the senate but i think that change will force biden to maybe move more to the middle, maybe we can get some of these things that need to be done like a more rational energy policy. stuart: neil: do you worry republicans have the onus of saying what they are going to do and they have outlined they want to make permanent the president's tax cuts and all that stuff, showing top worries for voters
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at home but england maybe proves, what we are seeing with liz truss living on borrowed time, she had to shelve these planned tax cuts for corporations and the well-to-do across the board because the markets revolted. you think about that, the markets are saying you haven't paid for this. i wonder if that could be a preview of coming attractions what republicans might have to endure if their plans aren't paid for. >> i think the reason the british stock market and british economy has imploded is out of control government spending. i think the message, i hope the message from what has happened in britain is not don't cut taxes but bring spending down. i talked to mitch mcconnell and steve scully's about this. job number one for the republicans if they do take the house and/or senate they've got to get the spending down.
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don't care how many times the fed raises interest rates, if you have $4 trillion sloshing around out there because of excessive spending you will see high inflation. i think job number one you got to taken's -- taken asked to this budget and get somewhere near a balanced budget. neil: all of a sudden you woke up. kidding. kidding. no, you are right. >> let me try something. i remember when newt gingrich became speaker in 1995 i was at the meeting where he said we will balance the budget in 5 years, half of the republican caucus fell off their chairs come of this can never happen and you know what, you got to give credit to newt and clinton and the republicans, we actually balanced the budget in three years, this can happen. you have economic growth, and both sides -- >> you don't do that it doesn't happen. you have a future in this money
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thing, keep pursuing it, looks promising, always good seeing you. >> sorry about your 401(k). neil: amazon workers just rejected a union bid in upstate new york, specifically their albany, new york, overwhelmingly rejected union bid coming from the national labor relations board and apparently it wasn't even close, 62062 unionizing which seems to be a big blow to the amazon labor union but other attempts being made in other cities, other factories and plants so it is not over yet but a big blow for the union movement and amazon's albany facility, stay with us. ♪
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aishah hasnie following at all. >> reporter: looking at somewhere from 10 to 15 million barrels from the strategic oil reserve. if it happens, it would be the first of a series of actions the administration will try to take to get its hands around these rising gas prices. bloomberg reporting the administration getting close to releasing these reserves and also announced how it plans to refresh the stockpile. it is the lowest it has been in four decades so a bit of concern there. right now the average price for unleaded is sitting at 387 a gallon, down from two weeks ago, still higher than last month's average. not everyone out there buying that this possible release is going to make a difference and help. >> 50% of one day's production is a literal drop in the
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gasoline bucket that won't do anything to impact prices. this is pure politics. that they would do this 3 weeks from election, it is not our fault, we are going to fix this. neil: us refiners are getting ready for potential fuel export ban in the next month and some democrats believe president biden could take action against saudi arabia for a pack's decision to cut oil. the left has been blaming the worsening energy crisis on the longtime golf ally as new provisions from their inflation reduction act increased taxes on natural gas and reinstates attacks on crude and import petroleum product at 6. $0.04 per barrel. it is unclear if the blame game or any of these white house
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actions will actually help democrat in the upcoming election. it is around the corner according to a fox news poll, 53% of voters right now disapproval of the president's job when it comes to energy policy. not a lot of time to turn things around just 21 days left. neil: these same issues aishah talked about are dominant in the senate battle going on. what is the latest? >> this is come down to two dueling issues, inflation versus abortion. incumbent democratic senator maggie hassan vetting a challenge from republican retired general, trying to flip her seat in november. hassan is on defense over inflation and rising costs. i asked if she agrees with the president that the economy is, quote, strong as hell, she told me there is more the
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administration could be doing on inflation particularly addressing energy prices. >> march to august, senator hassan voted to approve 5. $2 trillion worth worth of spending and those decisions have impacted and raised inflation to a historic level and it will get higher. in addition to that, granite stators can't put food on the table as result, can't heat their homes as a result and it is all about big spending. >> reduced the federal deficit by half in the last year and that is a really important note. let's talk about one way to reduce the deficit is stop the huge tax breaks for big oil and big pharma. that costs the federal government billions of dollars. >> reporter: hassan went on office attacking her opponent for his past comments on
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abortion when he said gentlemen in the state legislature should make the call on when to cut off access to abortion. hassan insists that -- boldyou see said she was supports no restrictions on abortion at all. he says that means up until the moment of birth, that position is a stream but hassan insisted those types of last-minute up until the moment of birth abortions ultimately do not happen. she says either way it is up to women, the mother to make the call on when they should or should not get the abortion. neil: thank you for that. i want to go to kelly mcgee white. i guess there's a consensus, and you reminded me, that republicans have a shot at taking the house, close call on the senate. does it remain that way? >> reporter: i would say so.
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a number of senate races are more contentious than anything we've seen on the house side but it seems a guarantee house republicans will take back the majority. by how many seats is a question. i'm estimating they will gain 20 seats which is more than the latest fox news power ranking but things are looking good in the polls right now. the new york times most recent poll found 45% of voters strongly disapprove of biden's handling of the country lose that's bad for biden and the democrats and that is what we need to know about this race moving forward. neil: polls could be changing in three weeks, shows some waning fear on the part of democrat women or women period on the issue of the row versus wade change by the supreme court that was once much higher, so high, passions still run high on the issue but not
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as high and that could be showing these extra seat pickups. the senate, anyone's call. >> reporter: banking on abortion as a motivating issue especially for women voters as you mentioned but this new york times poll found that women are split 47% to 47% between choosing a republican or democratic candidate this november and just 5% of voters male and female set abortion was a main issue for them as they head to the booth. it is not the issue democrats hoped that it would be and it is not a good sign that so many democratic candidates are relying on it. neil: we are three weeks away, 3 weeks from today. sometimes they say you make up prediction, the vanilla part is my term when we hear david solomon of goldman sachs say there's a chance of recession to which i add there is a
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chance i could lose weight, just a chance. that is not exactly vocal. increasingly a lot of players on wall street saying it is looking like a recession, others, closer to recession, others say we are already there. it is not the story. it has just begun. ♪
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neil: any time we get rumors around a big bank or financial term everyone on pins and needles we call on charlie gasparino. what is going on. charles: it is about going
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under. neil: you were way ahead. charles: they have a troubled investment bank index, management franchise, good banking franchise mainly in europe but their investment bank is here essentially. neil: it is alive and well. it is not going under but does fetch interest. charles: they will sell it and that is the thinking of investment banker, a couple financial ceos, it will be sold, who is going to buy them, i said is there money in the middle east? someone with a lot of oil buffs waiting to pony up? what i am getting back from people is the canadian banks. at least snooping around. what they are saying, td bank, they made noises about
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expanding in the us, it's a good entrée to them. it is interesting how they might do this. there is talk about spinning off into a separate company and some management takes a steak and they get out somewhere but clearly that is what we are hearing. the canadian banks will play a role. us banks, to know if they want it. don't know if we passed muster on an antitrust level but us banks grow like this. neil: do we get cheap? charles: don't know how much. it was t the looking over sumner. count on is a trading resource stop, they are looking, the number was under a billion.
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there are clients and the franchise. has been around since 1890. and they bought first boston. that's what this is. us investment, lots of smart people, larry fink was there and ran into financial difficulties, took over the whole thing. that's when they began there for a with us banking. neil: is it high clientele? charles: they are swashbuckling. the reason they are doing this. neil: in this -- charles: they are in switzerland. they last 10 billion, there were a couple other things they lost a lot of money in. neil: will it be under someone else? charles: we will find out more
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at the end of the month. the ceo, otto, comes financially. naming -- will announce the restructuring plan and we will get more daylight. canadian banks are likely, goldman sachs announced they were restructuring. neil: you have high perspective, brilliant guy but when he talks about there is a chance of a recession, really? charles: he knows there's going to be a recession and here is why. he just hold in his consumer business in some other units, they tried to launch a consumer, kind of average joes, that thing called market switch.
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neil: they used to be -- charles: that is what they tried to do. by any estimates, pro and con. neil: the private bank and jpmorgan. charles: they have a wealth management division and creative consumer thing -- >> this is a tough one to be fair. >> one of the reasons there's a recession. in any event consumer strategy is on track for all that sort of stuff. they are not getting rid of marcus. marcus makes a lot of money by taking the deposit and lending it out short-term. they don't have the
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infrastructure for credit cards so this is a failure on the consumer strategy. they don't get rid of markets and make money doing what i just explained but other stuff they had plans, goldman sachs, and david. neil: interesting time for this. you can argue this consternation. we solve a market crash and everything else and it was a preview to the turnaround. neil: guys that i respect, john -- john mack and lloyd blank fine --blankfein george's book at the book party tonight, 2008-2007, just known as cautious, where banks had to restrain their lending on bad loans.
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they were in the seventh inning. we were at the end of that. we are at the beginning of it. take what they say with a grain of salt, they don't always know. neil: it comes to the you know what. charles: jamie doesn't. neil: sound like you are afraid to say things. charles: his pr stuff has to scramble, he really didn't mean that. no one gives anything about esg investment. charles: to neil: he said that are hearing. charles: challenging the squad members as idiotic. neil: that is a little more frank. charles: that is the metric. but charlie meant to say -- thank you, my friend.
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meanwhile, black rock and whether they are too politically correct in their estimate strategy. a number of things across the country surrounding them around the country, saying we don't need you and that extends to treasurers offices. jackie deangelis on the latest on that. >> reporter: picking up on that esg thing in missouri, the latest state to pull funds from black rock because of its investments, $500 million, this in addition to the roughly millions, to be withdrawn from states like louisiana, south carolina, utah, arkansas. esg was known as csr, category of investment centered around the environment and social government. black rock is in this space, scott fitzgerald explains why his board made the decision to
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withdraw funds about fiduciary duty but people made on understand what that means, fitzgerald explains. >> in german real estate investment for us, the green dividend, this would not be the right decision to invest this in climate related projects, outside the enormous business and spending on these non-financially reasonable things related to climate. black rock voted to spend money on climate projects. >> reporter: an interview in september, black rock's ceo says we are fiduciary to everyone and none of this is our money. we have to find our investors the best investments but all of this scrutiny comes with the cost other than these withdrawals, ubs downgraded black rock from a by to a neutral and cut the price
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target, 700 to 585 so we continue to follow this. neil: following what is going on with holyroodhouse one a month or so ago, some calling for her head, might be reminders of conservatives and liberals about overstepping yourself. that after this. ♪ ♪ get decision tech. for insights on when to buy and sell. and proactive alerts on market events. that's decision tech. only from fidelity. (vo) businesses nationwide are switching to verizon business internet.
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neil: from quiet quitting to not so fast, boss, we are hearing from companies making it tough on workers who might
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want to say the environment is changing in a for them to crawl back to work. in the case of microsoft, a small, small part of the overall workforce, 1% of that workforce but more companies making more demands and some of them charging employees for job training they quit on them. doug jones with that and what it might mean for this movement that was born, the whole covid thing being reversed. what do you think? >> one of the most dynamic part of the economy is people figuring out the exact relationship of employer to job to company to outsourcing is because all those things are very much influx. every single one of the fang
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stocks had employee problems. everyone is trying to figure it out. tech companies are using the opportunity to trim and at the same time everyone looking and saying if you are not here, how much are you really my employee and maybe i can contract this out, there is no part of our world that was so important to our world that is changing like this is changing right now. neil: there are still 10 million jobs available, statistics we get out of another week or so might update that and millions of jobs that are not being filled. >> i think this is not 2008 and we are not teetering on the verge of a giant recession. i think talent is in demand. i know in the technology world and software world where we live there has been a
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retrenchment at a pause and a different capital market but the fact of the matter is this is not, we are not western europe and i do not see us being dragged down that pathway as far as unemployment goes. neil: thanks, i think, david manning with all those departments. your keeping an eye on what is going on in britain especially the fortunes of liz truss, she's in a world of hurt, a crying revolt and it might be a message to conservatives around the world that if you make promises you can't pay for, you will pay for it. piers morgan and more after this. ♪ ♪
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save hundreds a year on your wireless bill over t-mobile, verizon and at&t. just take the xfinity mobile savings challenge today to see how much you can save. neil: we are keeping a close eye on what is going on in britain, liz liz truss a month in power they are calling for her head, under enormous pressure after her budget
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failed in an attempt to cut taxes failed as well. among those in her own party even the markets, think of our markets doing the same in the face of tax cuts, it would be an anomaly but it is not an alien concept. piers morgan is here, crackerjack writer. i love the way he communicates. get through my thick skull. i know this is unusual. may be a warning for conservatives chomping at the bit to take over, decided to cut taxes and do a lot of things but it reminded me you better have that all ironed out how to pay for it before you introduce it. >> the most disturbing thing she said, for several weeks, she said she hadn't done the
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groundwork and it fell in her face. how could you not do the groundwork as new prime minister in a financial crisis. neil: the chancellor of the exchequer. >> checking her under the bus to save her own skin because they were the only two who did know what they were about to do. they were not conformed about what they were planning but they came out with this stuff. it was like a female receptacle saying tax cuts across the board, you will have this and this, the capital bankers bonuses commitment send you an for taxes against energy companies, all of it designed to make everyone feel great but what it really did was freaked the markets out because there was no sense of any planning, no indication how to respond to these enormous tax cuts but normally markets would welcome cutting their taxes but right to the point they realize they didn't have the money to do it so now we are in the unique
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position of being reversed in three weeks, and opposite from liz truss, he reversed everything and has all the power, they stabilized. given the damage she has done with this budget, need to find another $20 billion to repair the damage. i think -- i love toast and i would say she is toast with a fresh spread of butter, any way she survives, credibility has been completely destroyed at a speed i have never seen. here is the problem. she has said repeatedly she was thatcher in her thinking, when margaret thatcher came to power, she didn't cut taxes, she put a number of taxes up,
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she did do a windfall tax against energy companies but she managed to cool inflation and stabilize the but if economy. when stabilizing her position of strength she cut income tax and became known as a tax cutter. step by step getting the economy to a place you can be bold. this wasn't bold, this was casino politics or reckless, disgraceful and i have never seen anything like this. the leader of the opposition labor party, 36 points. neil: they won't be likely until 2024. >> i would not -- the labor position into incumbent conservative government and if it was like this in an election, all the conservative members of parliament risk losing their jobs.
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that is why i would not buy any money and stock in liz truss. the moment they think their own jobs are at risk, not just hers, they will reverse. neil: last time we saw the queen she formed a cabinet, king charles's first act, saying goodbye. >> great footage of charles meeting liz truss the other day, caught on camera shaking hands saying oh dear oh dear oh dear, which i think sums up what we are thinking. neil: how is he adjusting to not letting his opinion out? >> it is interesting for charles because he has always been so opinionated. to take on a role -- the reason for that, the moment you express an opinion in these
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toxic political partisan days you alienate a large body of the country in which us% opinion. the monarch has to be monarch for all. he has been gagged in his mid-70s. a lot of people in their mid-70s don't react well to being told they can't speak their minds, challenge for the king. neil: roy lecture, watched the crown, now i know in the next series coming out next month, one episode features king charles, then prints charles pushing for his mother to abdicate the throne or resign. >> nonsense. the problem for the crown, a great writer, it has been a brilliant series, the problem is reaching modern times, they are re-ing and euro when a lot of people are still alive who were involved and you've got the prime minister, john major, who categorically said this did not happen.
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it is damaging because the queen has died. charles is now king and you have a suggestion -- you and i know tv drama better than most. neil: i will put you down as a may be. piers morgan is the best, travels the world everywhere. ♪ sometimes you're so busy taking care of everyone else you don't do enough for yourself, or your mouth. but eventually, it will remind you. when it does, aspen dental is here for you. we offer the custom dental treatments you need, all under one roof, right nearby. so we can bring more life to your smile... and more smile to your life... affordably. new patients without insurance can get a free complete exam and x-rays, and 20 percent off treatment plans. schedule your appointment today.
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neil: my buddy, charles payne, up 400 points. take it my friend. charles: i will try, my friend. charles payne here, "making money." breaking

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