tv Cavuto Coast to Coast FOX Business November 21, 2022 1:00pm-2:00pm EST
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♪ monday, monday, so good to me ♪ david: kind of a sad song there , well, welcome back to the second hour of cavuto "coast to coast" and happy monday. let's put a happy spin on that. so a busy hour ahead of us, first retailers getting ready for the busiest time of the year while also dealing with an ongoing crime crisis. we've got a live report from a popular new jersey mall on how stores are preparing for black friday, and the kickoff of the holiday season, with all these challenges. meanwhile, ticketmaster issuing an apology to taylor swift and her fans but are the swifties the ticket providers biggest problem? the justice department taking a look at the company over its standing in the live music business, we're going to dig into where all that is heading, and eyes from around the world are on qatar where billions of dollars have been spent to prepare for the world cup, live ahead of the u.s. match against
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wales this afternoon, a lot to get to so let's get started. markets falling slightly to start off the week. kelly o'grady joining us with that and more business headlines hi, kelly. reporter: hi, david, yeah, lots of headlines to get to as we roll into thanksgiving this week i want to start with tesla. so that stock is down roughly 6% today. they are dealing with the fourth week of the month, cars recalled due to a taillight issue, and analysts aren't sounding the alarm because a recall almost never means the car is actually going back to the warehouses it's more of a software fix though certainly a lot of skepticism over elon musk 's potentially split focus with his twitter takeover. switching gears to disney, that bombshell news that bob iger is returning as ceo, the stock trading up on on the news after losing over 40% of its value earlier this year. the announcement comes after a terrible earnings report where they missed expectations and missed the streaming crunch and the company shared this last
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night, i thought it was an interesting quote saying "mr. iger has agreed to serve as disney ceo for two years with a mandate from the board to set the strategic direction for renewed growth and to work closely with the board in developing a successor." now sources are telling me the board members have been underwhelmed with chapek since the beginning, extreme frustration with how the e-ceo was handling the fight with florida's governor ron desantis, and iger would have handled more diplomatically potentially. i do want to highlight this isn't necessarily a long term solution. actually worked at the company during iger's 15 year run. he had two unsuccessful attempts to groom a successor so while there's positive it from investors there's a lot of anxiety from folks that worked at the company right now. now, switching gears to retail as we enter one of the most important weeks of the holiday shopping season, barclays downgrading both williams sonoma and restoration hardware from a buy-to-hold rating those stocks trading down
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on the news of course as consumers tighten their belt they are diverting discretionary dollars away from home goods and it's real stark contrast for these two companies after a strong pandemic performance as those home-bound customers leaned into redecorating their living spaces and that barclays report also predicts home furnishing spending will remain under pressure for the next 12- think months. i want to round this up with a lack at bitcoin. bitcoin is under a lot of pressure today hitting a weak low, of course the ftx collapse weighing heavily on the cryptocurrency so it's already facing extreme skepticism this year in general so david, a lot of people losing lots of money, could make the case for regulation. david: yeah, there's going to be something coming down the line, let's hope it doesn't hurt the industry. kelly thank you very much. appreciate it. well just a few days away from black friday, and businesses "coast to coast" are preparing for the kickoff to the holiday season. of course at the same time they are dealing with the rise in retail theft and inflation. so many challenges, jeff flock is at the jackson premium outlet
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s in jackson, new jersey. jeff, great to see you. reporter: a lot of people losing a lot of money here too, david. yeah, it's christmastime, but ba humbug to some people. this is the scene of a big bust just this month of a retail theft ring based in baltimore knocking over stores all over around here and if you take a look at the numbers this christmas shopping season kicks off this thanksgiving weekend with 166 million people going to brick-and-mortar stores and a lot of those people will be shopping and perhaps, not intending to pay for it. yeah, retail theft up to $94 billion out of store shelves this past year, and by far the biggest part of that is organized retail theft. that is rings that go around the country stealing stuff, 26% up in the past year. we've got pictures of some of the items they are stealing. it might surprise you, david, a little bit about what they are
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stealing. you think it be expensive items. no. it's actually small items that they can easily steal. personal care items, you know, lesions and toothpaste and all that sort of thing. what they do is pay people to go in and steal specific items, and then, they resell it on the internet at a discount. they make money. people that stole it make money and the only people losing are the stores, and who are those stores? well, that be like target. they announced last week they are going to lose 600 million more dollars this year than last year because of retail theft. a lot of drug stores also hit, c vs rite aid, walgreens, and in fact at cvs, they are now locking up in a lot of stores particularly high crime area stores locking up the shampoo and the deodorant. you have to go ask somebody if you want to get it. that's because it's been stolen so many times they don't have anything left on the shelves if they don't lock them up. pretty crazy. bottom line on this , for every
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billion dollars in sales, national retail federation tells us 700,000 goes out the door in stolen items. merry christmas. david: yeah, right. this is organized crime. it's that simple. it really is organized crime now reporter: it's one thing if somebody was stealing something they needed, you know, that's not good, but no. this is not that at all. david: very different. jeff flock good to see you my friend, thank you, happy thanksgiving. well with all these issues, small businesses could certainly use some deregulatory help. a new wall street journal article says rising interest rates are crippling small businesses not to mention inflation. let's bring back our panel, jonathan hoenig and david nicholas. good to see you both. jonathan i know by the way that hope is not a strategy but some people have some hope and maybe it's nothing more than that, but maybe, maybe, biden will take a page from other democrat presidents like jimmy carter,
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for example, who actually did a lot of deregulation work, working with businesses for all of the problems that you had during the carter administration he was a deregulator on many fronts. is there any chance you'll have a republican congress with the democrat executive. could they work together to provide some deregulation relief for these small businesses? >> david, they have a tremendous impact not just short-term on the american economy, but long term as well. i mean, jimmy carter be an ideal model for joe biden if he would listen. jimmy carter did a lot of terrible things but david to your point he deregulated a wide swath of the economy, trucking, stock commissions, various elements of the financial independent that really setup the 1980s, in fact you couldn't have had the reagan revolution, david, unless jimmy carter held the line on spending in 1978 and deregulated so many industries that he did. will biden listen? i don't think so. he is different than carter but
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that's exactly what small business in particular needs to get back on its feet. david: well david i'm going to mention another democrat president who worked with the republican congress, and that's bill clinton. i understand in the beginning of his administration, he was gung ho with a lot of what some people might call socialist policies, nationalized healthcare, et cetera. he raised taxes in the beginning but then he started working with republican congress. he got work fair, he exchanged our welfare problems with work fare. he also lowered the capital gains tax. i think from 28% all the way down to 20%. that led to a boom in the market , the s&p went up 78% after that. it also led to real wage growth and maybe they could get together on certain tax cuts >> yeah, that's right. deregulation and lowering taxes, those are dirty words for today's democratic party but you're right look at bill clinton towards the later part of his term lowering taxes. jfk also lowered taxes and we
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saw what happened. jobs were created and small businesses, david, the point you brought up. that's where the focus needs to be for this new congress because you will hit 60 million americans work for small businesses. 90% of small businesses have 20 or less employees, small businesses have created about a half a million jobs per year for the last 20 years, so for those that are listening to washington, if we want to create jobs it starts with small businesses. i agree i would hope the president could work with congress on bot sides of the aisle. i think we're tired of the fighting. it be nice for once to get something done for the good of the american people. david: as i said before, jonathan, hope is not a strategy just a sober this conversation up a little bit, then we have the example of president obama, and he did exactly opposite. we're in the midst of a terrible recession when he came in. instead of lowering tax rates and lowering regulations to stimulate the private sector, he did exactly the opposite and we had one of the worst recoveries in history.
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we could go back to that, right? >> yeah, exactly. david, the more stimulus, the more help from government, the slower the recovery that was certainly the case in the obama years and all the stimulus now specifically under president biden in particular to supposedly help us from the covid that's exactly what's creating the inflation, that's fluteserring so many small businesses and individual entrepreneurs right here today, david. david: let's hope he takes a queue from jimmy carter and bill clinton and not president obama and raising taxes. gentlemen good to see you, thank you both for being here. appreciate it. well the biden administration granting immunity for the saudi crown prince. why senators on both side of the aisle are actually defending the decision and what the saudis just did to support that decision, coming next. ♪
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psoriasis really messes with you. try. hope. fail. no one should suffer like that. i started cosentyx®. five years clear. real people with psoriasis 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 >> what the administration side of this we've been granting sovereign immunity is in keeping of the practice with custom of lawsuits involving foreign heads
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of state. david: the administrations decision to grant saudi crown prince mohammed bin solemon, considering the murder of journalist jamal khashoggi receiving bipartisan support. fox news correspondent gillian turner is live with the details. reporter: senators tom cotton and mark warner are defending the decision to grant the saudi crown prince immunity over cases involving the torture and murder of jamal khashoggi, but plenty of lawmakers here in washington are putting the biden administration on blast. take a listen to adam schiff. >> i don't support the granting of immunity. this is a guy who was involved in the murder and dismemberment of a person residing in the united states of america. a journalist, and, you know, we ought to put our value on life, not oil, and i think this is a tragic decision. reporter: well the publisher of the washington post, jamal khashoggi's former employer,
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blasted the president directly and personally saying he's "fail ing to uphold american's most cherished values. he's granting a license to kill to one of the world's most egregious human rights abusers whose responsible for the cold blooded murder of jamal khashoggi." jamal khashoggi's widowed fiancee agrees, tweeting #biden savedthe murderer by granting immunity, saved the criminal and got involved in the crime himself. the white house for their part insists the decision is one made by the legal system, not the president. >> the united states consistently has afforded head of state immunity to heads of government such as prime ministers, consistent with customary institutional law. reporter: the national security team says immunity has nothing at all to do with the rocky relationship between the u.s. and saudi arabia. more broadly, listen to john kirby. >> it has absolutely nothing to do with the bilateral relationship with saudi arabia, which as you know, is tense
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right now, given the opec + decision a month or so ago to decrease yet again oil production. reporter: the national security council is currently re evaluating the overall bilateral u.s. saudi relationship and insists the murder of jamal khashoggi was barbaric and that they have already held the regime, the saudi regime, responsible. david? david: thank you. well meanwhile, what happened this morning, saudi arabia and other opec members reportedly are now considering increasing production of oil, by 500,000- barrels a day. joining me now for reaction price futures group senior analyst and fox news contributor phil flynn. so the administration claims there's no relationship between this decision this morning, phil , and what happened with regard to sovereign immunity, to which i'm going to steal your line, if you don't mind. you say quid pro joe. it certainly seems like a quid pro joe, doesn't it?
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>> it sure does. you know, and here is an administration that came into power basically saying hey, we're going to make saudi arabia pariah state and put them in the place because of the murder of mr. jamal khashoggi and then all of a sudden now we need oil and they don't want to go to the u.s. energy producers, they've been begging saudi arabia, so it looks very suspicious, but interestingly enough, now saudi arabia is denying there is any idea that they are going to raise production. they are saying they are more data dependent so right now they are denying it. this is a story we'll have to watch to see what's true and what's memorex. david: meanwhile there's no sign that i've seen, anyway, of easing up on the restrictions on domestic production here in the united states, right? i mean, we are still about a million barrels short of where we were in december 2019, just before the pandemic. right? >> you're absolutely right.
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and we're hearing word from the biden administration that they are not going to back off on u.s. oil & gas production. they are talking about new methane regulations that could actually shutdown millions of wells across this country and shutdown millions of barrels excuse me of oil production in this country. a lot of the smaller producers, dave, that adds so much to the u.s. energy story, are going to be shut out of business because they aren't able to afford to meet these regulations. david: in just the gulf of mexico there was a really extraordinary report from mckenzie & company that came out about a month ago showing if we just increased oil production in the gulf of mexico, we could increase by 2 million-barrels a day domestic production. that would put us over that not only makeup for the million dollars we've lost, but give us an extra million barrels, but the administration is talking about cutting back in the gulf. >> yeah, it's amazing and if you look at the gulf of mexico, it's really self-defeating when
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it comes to the environment. in fact, gulf of mexico oil production has less impact on greenhouse gas emissions in any form of oil production in the world so this is just crazy. this is when you let ideology come over science and the science is we're going to need oil and we should get it from the sources that are the cleanest instead of looking to places like saudi arabia where they don't like us that much and we don't get along with them and they aren't very clean. david: finally something else that doesn't seem to make any sense on the energy front. this reparations thing and this climate conference. we just agreed with our allies, our european allies to pay rep per asians, again i'm not sure that's the right word but that's the word they are using, to poor countries for climate change, and i'm going to quote you, phil flynn, because you said it so perfectly in your letter this morning. while americans have just endured one of the longest streaks of double-digit increases for utility bills in
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decades the biden administration is talking about paying billions of dollars in reparations to poor countries for the impact of climate change. do you imagine most americans feel guilty when they pay their utility bills or fill up their gas tank and have to decide between food and fuel about the impact climate change is having in places like africa and indonesia and china. >> yeah, i mean, this is just crazy. this shows you how out of touch this administration is with the average voter in america, right? they are trying to save the planet and spending billions of dollars of taxpayer money but yet here in the u.s. they want to crackdown and raise taxes on everybody, get the irs to go after people to raise more money so they can send it to other countries to fight climate change? what about fighting for americans here at home? let's talk about the homeless people in this country and things like that, and make sure people can afford to stay warm this winter. david: elderly people already are freezing under seven blankets up in maine, as the winter closes in.
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look what happened in buffalo. five feet of snow for god sakes and a lot of people there are worried about having the money to fill up their fuel tanks. it's really really horrid what's going on. phil flynn happy thanksgiving. >> thank you. david: coming up charlie gasparino giving us an inside look at bob iger's stunning return to disney, that's next. it's a small world after all, it's a small world after all ♪
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you've been writing this scenario for the past six months. charlie: i've been saying with the activists have been saying is this is a company under performing on a lot of levels, streaming is not doing well, it's losing money, chapek said he would make it profitable in 2024. david: certainly not with streaming. charlie: very controversial culturally too and i don't think he could divorce that from the story. let's be real clear. bob iger is hardly a reagan republican here. this guy institutionalized woke ness at disney in many ways. he handed that institutional wokeness to chapek at probably the worst time when the country was essentially turning against that, and so when you start editing in, you know, same sex kissing scenes into children's programming, when you start -- david: and it doesn't sell by the way. charlie: right. when you start opposing a law that says you can't teach sex education to kids between kindergarten and third grade, it
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doesn't say don't say gay. david: bingo. charlie: you start opposing that even though at first he didn't want it and he got forced by his employees and ron desantis just wiped the floor with him, you know? it wasn't even close at that point. you know, those optics don't sell and then, you know, on top of it all, stocks down 50% this year. his last earnings call i heard was what got the board members thinking -- david: chapek. charlie: this guy doesn't have the chops, yeah. apparently he tried to spin a lot lower than expected revenues into something good and the next week they laid people off. put it all together they are like this guy doesn't have it let's bring back the other guy. now does that mean they are going to runaway from wokeness? no, what i think it's going to do because i kind of know iger a little bit is that he's smart enough to thread the needle. i don't see him getting into a big battle with ron desantis any time soon. he knows that horse is out the door. david: well they need those tax breaks for orlando, right?
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charlie: right. well they are removing it. they passed a law, the legislation ends it. i guess you can come back to it but i don't see him embracing wokeness in the same way anymore , because i think he kind of like a balance sheet in a box office, so that's where you'll see this come from, the stock, investors like a very good ceo but let's not make anything about this. he handed institutional wokeness to chapek. chapek just didn't have the sort of chops to do the dance. david: to thread the needle. charlie: now i don't think anybody can in this environment. i really think that ron desantis is, if you're going to go up against desantis, i don't care if your bob chapek, bob iger, or donald trump, be ready to play hard ball. this guy is smart. he thinks everything out. he's no joke, if you're going to take him on, be prepared and i think disney learned it's lesson i think they are going to be a good corporate family member,
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florida going forward, and i think -- david: so they aren't threatening to pull out or anything. charlie: where are they going to leave to? oklahoma? where is a lower tax base? david: i have a quote of something in august, by the way you said woke don't sell particularly when it comes to a company trying to sell kid- oriented programming and theme park experiences to middle america. that's the bottom line. charlie: the country is so divided. we know. i'm sure thanksgiving tables will be like rucus this year. so divided, this , that, and you just kind of want to go to the movies. just kind of want to watch football and go to a theme park. i'm just saying, maybe i should go into business, i don't know. david: correct. maybe you could do it. charlie gasparino good stuff thank you very much. appreciate it. meanwhile ticketmaster apologiz ing to taylor swift and her fans but may have bigger problems than the swifties, the justice department is getting involved fox business
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hillary vaughn has that story. hillary? reporter: good afternoon, david. well it's not just taylor swift fans coming for ticket faster. lawmakers or capitol hill say this is the perfect example of what happens when one company has monopoly power over an industry. senator amy klobuchar who chairs the senate subcommittee on anti- trust will hold a hearing on ticketmaster taking a look at its prices and hidden fees. congressman who chairs the anti- trust committee in the house says he thinks the doj, who has opened their own probe into the live nation ticketmaster merger should break them up if they can't fix it. >> a year ago to the department of justice to ask them to look at this again because of the behavior of the parties. they should do one of two things , either impose additional conditions to restore real competition in this marketplace or unwind this transaction so that no longer will customers be taken advantage of and prices be outrageously high. reporter: ticketmaster is going
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on an apology tour and trying to fix any bad blood between them and the pop star and her fans. ticketmaster is saying this. "we're working to sure up our tech for a new bar that has been set by demand for the taylor swift, the tour, once we get through that if there are any next steps, updates be shared accordingly." they are also explaining what caused the chaos saying it was a combination of bot attacks and just a lot of taylor swift fans who wanted tickets leading to an unprecedented traffic on their site. 3.5 billion total requests that's four times what their previous peak was. the platform saying based on that volume of people that wanted tickets swift would need to perform over 900 stadium shows, a show every single night for the next two and a half years. that's almost 20 times the number of shows she's playing on this heiress tour. david: hillary did i miss hear you said 3 billion hits? reporter: yes. david: i had no idea that's half the world population. that's extraordinary. hillary vaughn. reporter: there were some bots
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in there. david: okay. that's extraordinary. hillary thank you very much. turning to fox news contributor sean duffy on where all of this is going with nine kids, sean, i get you got swifties in there don't you? >> i do but my old campaign manager used to be a big swifties too, but you know, look at ticketmaster, as a customer, as a fan, they take advantage of you. i think they take advantage of the artist and the venues and it's a monopoly and it's a real problem but also, i mean, they were supposed to deal with this problem of the bots. the bot problem existed and that's why they had fans verify themselves. well that didn't seem to work and i guess you have just everybody angry and now what? congress steps in, the doj has already been looking at them, to take another closer look at them david: but you know monopolies can suck but government intervention can make things worse, right? >> but sometimes, how do you get rid of monopolies? so i'm kind of stepping over a
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line, but there's points where you need government to come in and go listen we might have to break this up. we do want competition and competition does make capitalism actually work, and it seems like there's not real competition for ticketmaster here. david: all right i want to switch to another subject that is near and dear to your nine children's hearts, but that is what's happening with disney right now. it was just extraordinary news they are bringing back iger. he is, i think you would agree, an entrepreneurial genius. what he's done to the temperature, company, but what do you make of all of this and particularly the wokeness and that battle that they are now having with governor desantis down in florida that's still ongoing. >> i think you make a good point. they are trying to sell their product to middle america. we just want to raise our kids and talk to our kids about sex or sexual preferences, especially at first, second, and third grade. and so families and parents are
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forced to make tough decisions to go listen, do i want to support a company that's gone so woke it doesn't support my values? do i want to go to the park? do i want to watch movies? do i want to buy disney plus and my kids have gone several times and they absolutely love it. i was going to take a trip over the last three years and decided to cancel them every time so the six-year-old who went to disney once and can't remember it, he canned me two days ago, are we going to disney and i'm like i don't know i don't want to support a company that doesn't share with my values. i vote with my dollars and spend my money in places that match my values and disney doesn't match my values. david: but have you actually seen evidence of that? i know they had this fight with governor desantis. they essentially lost the fight because governor desantis removed the special tax status that they had in orlando but have you actually, when you take kids down there have you actually seen, charlie gasparino did mention this movie, this buzz lightyear movie which failed terribly by the way at the box office which had a lot
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of wokeness in it, same sex kissing, and that sort of stuff, so -- >> not at the theme parks i haven't seen that. it's still somewhat wholesome but in the movies, you see this wokism splashed into the movies fed to your kids in various different ways, and again, if disney could go back to being a wholesome american company, i mean, making products making movies making videos that match the ables of which they are trying to sell this product to, they would do incredibly well but they aren't doing that and again perception does matter when you have this public fight with ron desantis again taking aside we want to sexualize first , second and third graders? a lot of parents are going who is this company? they aren't the disinto disney of our parents or grandparents. david: do you have disney streaming? >> come on. i threatened to cancel it but i haven't yet. david: bottom line. frankly it is the best, i hate to say this my wife would kill
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me but it is a babysitter. it does act as a babysitter. >> but as a parent you do have to be conscience of what your kids can watch, but by the way they would make a lot more money on me and nine kids taking me to the theme park, with $120 a ticket? david: you made your plug, sean good to see you. >> thanks david. david: team usa is gearing up for its first match in the men's world cup. we've got a live report from qatar, right after the break. ♪
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on wales this afternoon. fox news correspondent alex hogan is joining us now live from qatar with the very latest. hi, alex. reporter: hi, david. well we are almost there. the u.s. is about to take the field for their first match of the world cup. they will play wales, which is already tonight here local time and on friday, they will play england that is black friday, so make sure you are ready for that and then the next game they play after that is iran and that is on november 29. there are eight stadiums seven of which were newly built for the world cup to host these 64 matches and throw in the hotels, sidewalks, new subway system, convention center s, small but very wealthy country spent $220 billion making this by far the most expensive world cup. fans are ready to spend some of their money too, according to the american gaming association,
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more than 20 million americans will bet more than $1.8 billion. worth noting this is the first mens tournament since the supreme court's decision to end federal bans on sports betting, but it is also been a very busy day here in doha, only expected to ramp up as the world cup runs through december 18. earlier today, we visited the military base outside of doh a for the official opening of the fox sports sky box. this is a newly revamped sports bar an r &r spot for service members who are based there. >> it's a great pleasure to welcome you all here as we open the expanded and refreshed fox sports sky box. reporter: so they will likely be watching this game that is about to kickoff, as well there are 8,000 u.s. service members at military base, but meanwhile back here along the water in doh a, all the lights you see
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behind me, it's all setup for fans arriving from all around the world. these are food stands, exhibits, flags for people to come, hang out and enjoy such a massive global event. david? david: i'm kind of divided. my roots are from wales, so i guess that i have to be for the u.s. though. all right, it's going to be exciting game and i look forward to it, alex, thank you very much for being here, appreciate it. coming up the dow turning positive as the nasdaq remains in the red. we're tracking the latest moves on wall street as next on cavuto "coast to coast". ♪
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but now the internet lags and it throws the whole thing off. when did you first discover this lag? i signed us up for t-mobile home internet. ugh! but, we found other interests. i guess we have. [both] finch! let's go! oh yeah! it's not the same. what could you do to solve the problem? we could get xfinity? that's actually super adult of you to suggest. i can't wait to squad up. i love it when you talk nerdy to me. guy, guys, guys, we're still in session. and i don't know what the heck you're talking about.
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david: the record inflation and the effects of the pandemic are raising concerns that history just might be repeating itself. gerri willis is taking a look at the lessons learned from the financial crisis nearly 15 years ago. it doesn't seem that long ago, gerri. gerri: and we're remembering it all, david, that's right here at fox business, we remember the financial crisis of 2008 and if that means times of
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uncertainty that we're here for investors every step of the way. >> the tectonic plates of the global financial landscape are shifting under the earthquakes of lehman, merril lynch, and aig. >> epic monumental, historic, chaotic. >> a nation that was once the world's market envy is increasingly becoming the world's market pariah. >> it's hard to connect the dot s on how they make utility and survive. we're typically in this environment. david: the worst week ever for stocks. >> we're watching history being made and out of the corner of my eye i'm looking at wall street. gerri: now, today's investors aren't facing the wave of bankruptcies or liquidity crisis, and a weakening housing market is not having ripple effects that led to that kind of chaos we just saw but they are navigating record inflation and the lingering effects of the generational pandemic that is causing market turmoil and ended our longest bull market in history. the big question, could it
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happen again? well, as you know, history doesn't typically repeat itself, but it does often rhyme. that's why fox news podcast rewind series is back with some of our favorite fox business anchors including the great neil cavuto and of course david asman they're looking back on the market crash using the lessons we've learned from 2008 to make sure we see the warning signs before it becomes too late, but there is good news to be gleaned here. markets do recover between 2007 and 2009 the height of the crisis the s&p 500 fell 50%, and since that time, the index is up, well, about 170%. the dow up 155%. history shows that making smart and educated investments in the stock market, well guess what? it's still one of the best ways to build both for you and your family, and david, as i send it back to you i want to tell you i've listened to this podcast. it is fantastic. david: and you're right. history is your friend.
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if you get to know history, get to know what happened, where you should stick, where you should jump away, it could make all the difference in your future 401 (k) and all of the other investments that you make so it's a very valuable broadcast. thank you very much, gerri appreciate it. gerri: you're welcome. david: meanwhile mortgage rates dropping slightly but it's still double what it was this time last year. so when will we see real relief? let's bring in empire state properties founder and president suzanne miller. suzanne, great to see you thank you for being here. >> thank you. david: so it was above 7%. it's now below 7% but still pretty close to 7%. that's not really going to change much in terms of motivation whether you're a buyer or seller right? >> i don't think so. i think the difference of the half a point isn't really going to move the market much. i remember when i bought my first home i paid 11% so i don't think it's about the number. i think it's about the uncertainty. >> yeah, and one thing that people, of course we're uncertain about interest rates
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and what's going to happen with inflation but if we're uncertain about a recession and if we're uncertain that we will have a year from now the job that we have right now, i know there's this overhang of a lot of extra jobs in the economy because of the pandemic but the bottom line is, those jobs may not be around forever and if you're uncertain about job security, that also would prevent you from buying right now. >> which is what's driving the rental prices so high, because people are concerned during this time to go into the market regardless of what the mortgage rates are, so the rentals are very very high right now. david: i understand new listings are down by 18% compar ed to the way they were a year ago. now a year ago it was a red hot market so maybe that's a slightly unfair comparison, but a lot of sellers seem to be pulling their homes off the market, to kind of wait things out. >> david think about this. if i have a home and selling it and even getting a higher price and my mortgage is 2% and i buy
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at 6% i'm not motivated to sell it so people are removing their product from the market and see ing a lot less listings on the market and things that are on the market are lasting longer there are some sales but it's slowing. david: but overall the inventory must be growing, because before, i mean that was the most complaint you had a year ago. there's just no inventory. there was nothing available. new homes were getting hard to find because you couldn't find the labor to build them. you couldn't find the material to build them with. now, because of that overhang, you do have inventories building >> you do have inventory building but you don't see the prices going down because sellers are not desperate. it's not 2008 and there's not foreclosures and people are not losing their homes, so you're not seeing prices go down very much. david: so people are just sitting on their house? >> exactly. sitting and waiting and nobody is motivated. it's not a very good time for brokers right now because people are waiting, but the rental market is very very
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high, and things are selling. it's just not at the pace that it was. david: what about the first time home buyers? the younger people. they must be having a hell of a time. >> 99% of the first home buyers need a mortgage so what we saw last month in october, i would say a quarter of the purchases were all cash, and those buyers particularly were second home buyers and investors. the investors love this market cash. david: so but is a cash market for the buyers? >> yes. david: and are they a lot of foreigners coming in, domestic? >> you see international buyers , you're seeing domestic. they want to get cash flow, so we're seeing a lot of international business travelers renting a lot of these apartments, so we're seeing investors jump in and they want to buy these things. david: we started with a sort of recap of what it was like 15 years ago. i assume you could remember. i know much older than you are, but the bottom line is that was a devastation of the housing market that led to the likes of which i'd never seen in my
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lifetime. is there any chance we could be going back one way or another into the crunch that we had back in 2008? >> there's no chance because the banks are much tougher. i remember the days when the banks were giving 100% financing, 90% financing, not doing credit checks. the banks have gotten smart so you don't see the leverage that you did in 2008. it's not going to be a bust. the banks have learned their lesson and i do not see that happening. david: of course we do have these problem with credit crunch now. we have a lot of people that are so desperate because of inflation that they are doubling up on their household debt. >> yes but still not going to see the foreclosures. david: suzanne great to see you thank you very much appreciate it. we'll have more "coast to coast" , right after this. stay with us.
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(fisher investments) it's easy to think that all money managers are pretty much the same, but at fisher investments we're clearly different. (other money manager) different how? you sell high commission investment products, right? (fisher investments) nope. fisher avoids them. (other money manager) well, you must earn commissions on trades. (fisher investments) never at fisher. (other money manager) ok, then you probably sneak in some hidden and layered fees. (fisher investments) no. we structure our fees so we do better when our clients do better. that might be why most of our clients come from other money managers. at fisher investments, we're clearly different. the first-ever all-electric chevy equi no. . and a starting price around $30,000. evs for everyone, everywhere. chevrolet. it's walmart's black friday deals for days. every monday, huge deals will go live. join walmart+ and you can shop online 7 hours early! so the only question is... is it monday yet?
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