tv Cavuto Coast to Coast FOX Business October 25, 2022 1:00pm-2:00pm EDT
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options, answer any questions you have and, if you're eligible, help you enroll over the phone. call today, and we'll also send this free guide. humana. a more human way to healthcare. neil: who would have known freddie mercury was talking about the dow jones industrial and whether they could sail 31,000, that was them, this is now. the dow is under 1000. 1000, there is no -- hello. this is lauren simonetti. she is so young, the queen, she thought i was referring to
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queen elizabeth. lauren: you corrected me. neil: people are nervous about markets and lose sight, time is your friend. lauren: if you have patience. neil: friday is as long-term as i want to be. and some data -- neil: you brought up the dow under pressure. we feel we are under -- it is true, but consumer confidence -- neil: 32 fold. lauren: neil says don't worry. neil: they will calm down. lauren: it is showing up in the numbers. 102.5 is your headline number.
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gas prices are up, there is the correlation. the expectation index, what happens with the income, labor market, that declined to under 80 associated with recession. neil: why show a picture of a shopping center for that statistic? that is your way of saying that is how things look. lauren: i will blame your producers for that, throw them under the bus. and be invited back tomorrow. stock market is good news. why is it up? could this be bad news? are we less confident and the federal reserve looking at these numbers saying we've gone too far to reassess policy. neil: i don't think the fed will.
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lauren: i wouldn't say have it but pause and reassess. look at what they have done, with mortgage rates. it is hurting the housing market, turning potential homeowners -- the mortgage. what year did you purchase your first home? neil: it was 1983. we thought we had mark. 2016. 3. 5%. lauren: i was born when you purchased your first home and i could say the word home. still buying homes. they were priced out of the ownership market but now being priced out of the rental market too.
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neil: you are making them feel sad and then they eat munch. lauren: they are up 25%. not says lahren, says apartments. we like people now and are getting more roommates, more social again. to live back in your basement, rent is too high and they are talking in the boardroom too. one more headline to get for room. talking about inflation on their conference calls. coca-cola keep raising prices, isn't that insane? neil: this is nothing like that. this is not political stuff. thousands of jobs being lost
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per month. that could end it. that is pretty good. lauren: if it becomes a sizable recession, likely won't be that deep. neil: the recession was ending. not a clue. lauren: i read about it and hear about it. producers, and they don't agree with you. the paint people, sherwin-williams, do you know what a gallon of paint is? really take a guess. they are upwards of premium paint. and here is another positive, we are paying that when we are fine with record sales.
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neil: with decorators? lauren: a lot of people are doing that. you have to make it look nice. you are great. lauren: we need to record this hit. this is on my goodbye rail. neil: you are great sports though is hillary vaughan. she's very hard to craft but i am getting there. i was looking at this, these latest power rankings, looking better for republicans because of things lauren outlines, people feel the inflation and other stuff is piling up. >> reporter: it is top of mind for of voters and democrats are
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trying to convince those candidates up for reelection to do last minute 180, two weeks before election day saying dodging inflation on the campaign trail will mean doom for democrats and the midterms, four democratic strategists writing this in a memo, quote, rising costs will beat us if we avoid the issue they will dammit -- decide democratic candidates are not prioritizing the issue they are most focused on. top democrats talking about the elephant in the room, inflation by pointing blame at the gop. >> the fight is not bad inflation, it is the cost of living. if you look at what we have done to bring down the cost of prescription drugs and they have no plan for lowering the cost of living or helping with inflation. >> republicans response inflation, do they want to raise the mineral wage? they don't. it is important, what do they
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want to do other than complain? >> reporter: their plan is stop spending money and cut spending across government agencies. president biden tapping up supporters at the dnc says that plan is a red flag, making his closing wreck message across and sign what will happen if republicans get the majority. >> president biden: if we don't meet their demands they will shut the place down. then they talk about inflation. everything they do makes inflation worse, republicans will crash the economy. >> reporter: president biden warning if republicans are in power they will double down on what the president is calling mega amaga trickle-down economics, say that 3 times in a row. the bottom line is the president will still have veto power even if republicans take control of the house or senate.
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he doesn't have to sign whatever comes to his desk. neil: two out of three branches, he can stop a lot of that stuff but wall street is weird, they like the government stopped in its tracks, great seeing you again, follow these developed and, karl rove, deputy chief of staff, expert on all things political maps. you look at these races closely, this idea of the republicans taking the senate as well, are you in that camp? >> i am cautiously. this is the map for this year, very good for the democrats, 21 republicans, two in those states that president biden carried, there's an advantage
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going in but the rest of the dynamic works against him. the issues against him on inflation and the economy and crime, immigration, the president's job approval is lousy, 27% think we are going in the right direction, 70% think we are on the wrong track. these things combine to have a lethal advantage. neil: when you look at a late surge and momentum in the story looking back, i remember the late surge in 1980 when ronald reagan broke out from what had been a tight race the final weekend going into that election, the 1994 republican win on capitol hill, that was expected to be big, 35 seats but not the 54 it ultimately was. was there anything like that showing a surge we are not
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seeing? >> it was hard to see those surges. the consequences in 1980, people knew who jimmy carter wasn't made the decision they would like to go with someone else but there was a lot of caution about this actor from california. was he up to the job? in the end people decided to go with him because the dynamic in the race was against carter and for an alternative for change, same happened in 1994, people saying i want to send a check on what bill clinton is up to and i will vote republican but not until the final stages that people said i'm not inclined to vote for the democrat but will jump over the bar for me or will the democrats say something to convince me to change my mind? they didn't. the democrats didn't have a
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closing argument and republicans had the change mantra behind them and came in with a strong victory. neil: some concern what happened to liz truss could be devil republicans here. the poor market response she got to her economic plans. she left a lot wanting, communicating this. i get that but this notion that the markets, as a group, might have republicans on a short leash when it comes to their plans, what they want. >> big differences between the parliamentary system when you have dramatic drastic changes and the american system of checks and balances in 3 branches of government. even if the republicans take control of congress the president will be there, there will be a check on the republicans, just like republicans will be a check on
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the democrats but back to the previous point, the closing argument, this boggles my mind. president biden says my number one priority is to pass a bill reinstituting roe versus wade which has no chance in a republican house little on the republican house and senate, talking about his legislative accomplishments, using their names, the american rescue plan and inflation reduction act and semiconductor bill which does not carry well with the voters, i'm worried about the higher price of gasoline, groceries when i send them back to school and the difficulties at work and slowdown in the economy and finally sounded tone death over the weekend, the economy is strong, people have an
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underlying concern about it and that won't go away with the president saying i've got it taken care of. neil: lots to settle, always learn a lot, appreciate it. karl rove and all that. a lot of people urging the president to engage russia especially with this nuclear talk but how do you engage russia after this? ♪ ♪
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look and feel better with cosentyx. don't use if you're allergic to cosentyx. before starting get checked for tuberculosis. an increased risk of infection, some serious and a lowered ability to fight them may occur. tell your doctor about an infection or symptoms or if you had a vaccine or plan to. tell your doctor if your crohn's disease symptoms develop or worsen. serious allergic reaction may occur. best move i've ever made. ask your dermatologist neil: a lot of democrats saying it might be a good idea to have a talk with vladimir putin when it comes to nuclear stuff he has been hinting a lot at and saying more but away to end this once and for all. aishah hasnie is covering this. >> reporter: good afternoon. a pretty big development on capitol hill in the last couple moments.
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progressives who were saying that to president biden are admitting they made a big mistake. the progressive caucus chair camilla released a letter sent to president biden yesterday and in that statement, of taking it back, she writes the letter was drafted several months ago but was released by staff without vetting as chair of the caucus i accept responsibility for this. but the damage may already be done so here is what happened. on monday, 30 progressive sent a letter to biden urging him strike a peace deal because we are spending tens of billions on ukraine aid. the letter reads in part we believe such involvement creates a responsibility for the us to seriously explore all
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possible avenues including direct engagement with russia to reduce harm and support ukraine in achieving a peaceful settlement so this got some serious back lash from fellow democrats. jake tweeted this, this letter is an olive branch to a war criminal was losing his war, ukraine is on the march, congress should be standing firmly behind president biden's strategy including tighter, not weaker sanctions so it ticked a lot of people off. the inter-drama party comes, kellan -- kevin mccarthy shook washington when he said a republican-controlled house would not just cut a blank check to ukraine, mccarthy had clarify his comments insisting he only meant more oversight. but there are some on the far right who do not support ukraine aid, have voted against it in the past so congress could focus on inflation here at home and they are gaining
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influence that could create problems passing future aid. we are waiting now after this admission of making a mistake, waiting to see if the white house will comment about this at the daily briefing but progressives have a lot of explaining to do to nancy pelosi who is coming from croatia where she told the entire world just pledge the united states will commit to defend the ukraine and she's got to come back to this mess two weeks before the midterms. neil: this affect and what it could have on oil prices since this war has been a centerpiece, the head petroleum analysis follows all the interview sectors and always forget that, good to see you. this is coming in an environment where we expect utility bills to rocket if they
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haven't already for a lot of folks who are seeing up close and personal and that's a lot of it, what is happening? >> will be a challenging wonder, natural gas prices have come down a lot but a lot of utilities locked in the supply at higher prices, we are down to 25 days of distillate supply like these lands heating oil, the lowest level, if not in a very long time, refining capacity is diminished from where it was years ago due to covid and things like refinery fires and hurricanes, it will be a challenging matter with natural gas and heating oil much higher, maybe 2 or 3 times more expensive to heat your home this winter. neil: the solution to higher prices are higher prices, they
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get to the point people say no, you can't do that with your heating bill, so a lot of people do things to conserve but only so much you can do so where do you see this coming? >> only so far down you can turn the thermostat. the white house has some tools when it comes to refined products. the jones act, a lot of talk about that, the possibility the there could be things like these lands heating oil in an area that badly needs it. if you are shipping from the us to the us you need a us carrier and that is where the jones act waiver would allow refining companies to send products from the gulf coast to the northeast using cheaper foreign flag shipping methods and that could alleviate this but i don't think there is anywhere around
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russia's invasion of ukraine continuing it will be a challenging winter. neil: thank you, we needed to hear that. in the meantime what you are facing in terms of travel, all the handling of where the economy is going, it is off the charts big and all the airlines are saying it, something you have to deal with after this. ♪ ♪ put your arms around me baby ♪ put your arms around me baby ♪ i just want to fly ♪ put your arms around me baby ♪ put your arms around me baby ♪
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neil: those who don't know latin, i can tell you the gregorian chant talks about future demand for travel in the world, after a worldwide virus. i challenged my staff to come up with different tunes to shake this and the gregorian chant is as far from reality as you can get but what is in real is what is going on with people supposedly tapped out and stressed and unable to spend but when it comes to trips and travel abroad and booking expensive hotels they are doing it, business and travel demand, we are getting to levels before the pandemic even hit. doesn't o'grady know it?
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>> reporter: airline travel continues to defy the odds, prices are up, the airlines only expect that to get better. we are coming off a strong earnings season, jetblue missed expectations but did eke out a profit with demand, but projecting 2019 level with holiday travel and travel site hopper tells us airlines continue to see strong demand for leisure travel, search demand for travel is higher in 2022 in previous years as demand surged over the pandemic but data supports that, sunday was the second week in a row the daily screenings hit 2.49 million, the highest in february of 2020. we spoke about why prices are
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not slowing them down. >> the last two years regardless of the prices we need to go. >> to get out there, since everything is locked down for so long. >> go on and raise prices. >> a great comment but travelers are adjusting their habits with remote work. extending weekend trips because they don't have to come back to the office combining business and leisure travel and not only see more bookings but higher end tickets which is offsetting the loss in corporate travel but hasn't bounced back yet but things are looking up, i want to highlight, it is because the supply for pilots and planes themselves, adding to the demand, that is keeping prices high so that dynamic could be tricky as we come into the winter weather seasons.
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neil: the economic front, thank you on all of that. and iconic name in the technology world, former ceo and chairman of aol, and uncanny read on technology, thank you for taking the time. we were in the throes of the technology that was picking up steam into the summer. what will be the next wave, consolidation and we are seeing a little bit more of that and i wonder where this goes as we finish the year going into the new year. >> really enjoyed the travel segment, i love seeing humans moving around earth again. a couple large forces happening. i watched the entire speech
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from president xi the other day. the china market that was a big driver of growth, that market closed off, a lot of western tech companies, that will be an inhibitor but the long-term benefit is you will see very robust technology, the nasdaq is down 29% year to date. the technology market in china, 48%. what you will see as markets recover, tech will swing back and there is a big opportunity in the united states and other countries. the really large tech platform companies that i have a lot of respect for our under heavy government scrutiny and that scrutiny will open up the ability for a lot of startups and companies to get going. this period reminds me most of the post dot.com bubble where
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investors, the good ideas stayed and we are in a time period, the next great companies, if your patient investor, probably some great opportunities, but also startup technology companies. i remain bullish, the correction was needed but now investors make money investing in bad news, it is a great time to invest. neil: they are bullish. is that who i think it is? but i did want to get your thoughts, talking about the punishment technology stocks are getting, they were getting to the point of being less risky. but they have a hard time, the
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nasdaq down 30%, it had been close to 40%, the big-name issues are cut in half. >> if we go back a year ago, 13 months ago, piling into technology stocks deemed to be not risky and the market was on fire and keep investing in tech. a lot of people who invested in that time retreated from the market. it is 4 times as safe as it was a year ago and that is not the general sentiment, not to get everyone in trouble, it is a time to invest and the second thing i would say is our business is about connecting
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off-line, online world, and the web for reading world and the ability of the technology fields have been the best they have ever been, moving data and value to the edges of a market and if you are a big brand, you should be investing in companies helping decentralize the platforms. the second thing i would say is when you look at the platform companies, the people who have the most investments in the real human platforms, apple is down, matter is down 70% plus and the reality, the brands that serve coming into the downturn are going to be the ones that are the next investments but when you look
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at apple's valuation versus digital people you see the effect they had in keeping investors and customers. neil: i'm wondering about the appetite of consumers, business or otherwise, to buy as much, to venture as much, to connect online with off-line. are they so stunned by what has happened that they hold off and for a while this camp says we are headed for bad recession, that will tell you it can't happen because they are on the same page. what do you think? >> and place a recession. the digital platforms, 8 years of demand into businesses during the pandemic.
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unlikely they will pull another 5 or 8 years again so those valuations are close to the bottom and they will inch up again. the energy level, with the nfl, and all of the nba teams. like your travel segment, our business is connecting technology and we see the level consumers are in the real world investing in experiences and travel and music and those types of things, consumers sat around for two years, may shift from durable goods to nondurable goods but you will have a hard time holding humans back from experiencing the world. neil: you have been prescient from google to aol. i hope on the latter one you are right because so much depends on it. good seeing you again.
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in the meantime technology stocks coming back, they will be front and center, the biggest names get have a lot to say about the concept him armstrong was talking about after these issues. they are all up from those lows after this. bring you advice that fits your values. i promise our relationship will be one of trust and transparency. as a fiduciary, i promise to put your interests first, always. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com
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>> welcome back to coast to coast, following the fallout from the nation's report card looking into how school lockdowns might have impacted those dismal test scores we got yesterday, teachers unions were calling for schools to be shut down but now they are noticeably silent about how those lockdowns might have
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caused these scores, steepest declines and lowest scores in decades in reading and math for fourth and eighth graders, parents, conservative and others are blaming the low scores on school closures during covid at least in part, largest teachers unions in the country supported those lockdowns. we reached out to several of them. the national education association's president made no mention of virtual and remote learning in her statement. the past other unions downplayed the negative effects of virtual learning most notably the head of united teachers los angeles said last year there is no such thing as learning laws, our kids didn't lose anything, she said. it is okay they may not have learned dollars times tables, they learn resilience, survival, critical thinking where they know the difference between a riot at a protest, they know the words insurrection and coup. parent groups are calling out these test scores, unions and
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leaders across the country, on both sides of the aisle, saying they need to put politics aside and take an all hands on deck approach to solve this problem. >> we know what we need to do. we need to get kids in the classroom who are extended learning opportunities in front of high quality teachers. that needs to happen. kids need more time in class with the curriculum with highly qualified, highly trained expert teachers. >> reporter: education secretary cardona called the results appalling and unacceptable. need to pay teachers more and school districts need to use the billions of dollars in unspent money from the american rescue plan. neil: the battle on crime requires getting more officers tough on crime and didn't philadelphia they are having a tough time dealing with that as our a lot of cities across the country. jeff flock on that.
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>> reporter: having a major impact, we talked about the closing of stores in downtown philadelphia because of crime and safety concerns. they are shutting them down right now as we speak. this gives you an impact of not having enough police officers on the beat. you talk about retail theft. they are starved. it is petty stuff. there are 9000 reports of retail, charges only a thousand of them. the prosecutions are not happening. they are down, 1300 officers in philadelphia. retirements nationwide, resignations, 18%, and hiring
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has not kept up, it is down 5%. we talked to former lieutenant commander of detectives in the police department who said holding on to officers is near impossible. >> retention is not something that makes the news often and cops that can do years beyond 20 years of service, they are afraid of job secure ready, and local governments. >> reporter: i leave you with these numbers. they talked about defunding the police, los angeles offering $10,000 bonus and $24,000 per housing allowance. 30,000 in bonuses and others as well. to find police to take that job.
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neil: you can always offend someone you are going to talk about baseball and baseball teams, why you have a statue of rocky is a separate issue. it is working out fine. the movie was fiction but that is fine. now, in the super bowl, world series, philadelphia phillies in the world series. there's an indicator, a super bowl indicator, when philadelphia is in the world series, hellish things happen. not to say they won't happen again. the new york post, a great writer put together examples of
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philly wins in the past, you would call them curses. we call it the curse of love phillies. thank you for coming. it has been three big world series appearances and each of those when they did win, could we go through this? >> the philadelphia athletics at the time had more than one baseball team, athletics won the world series, 1929 was the crash that signaled the start of the great depression, very unpleasant time in our nation's history. neil: we always thought the market got ahead of itself. the guilty must live with it. many years later.
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>> 1980, philadelphia phillies when again led by mike schmidt, pete rose, first-ever world series title for the phillies, almost one hundred years old, but franchise has not won that often. neil: when did they change the name? >> they were always the phillies since they were founded, they left philadelphia to kansas city. neil: under this name, 1980, what is this? >> that was the year we were in a recession triggered by the phillies. i was going to say the following 3 shot and oil prices. the fall of the shah and oil prices. neil: they when and are back when?
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after that? >> they won in 2008. neil: the meltdown. so for the good of the country they should stand down? >> anyone who invested in the stock market a vested interest in the economy waiting for the houston astros in the world series. neil: if philadelphia wins. >> we are in bad shape. neil: none of that what happened with the mets or the yankees. getting some comments. i cannot repeat some of these comments but philadelphia be warned, we know what you are up to and it is not going to work. ♪
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