[male narrator] at heifer international, we believe in the power of people. since 1944, we've equipped people with the tools and education they need to move themselves from poverty to power. when a family is given a goat or a cow, they're given more than an animal — it's an opportunity. it's a chance to start a business, put food on the table and break the cycle of poverty forever. people can stand strong on their own, all they need is a chance. learn more at heifer.org. thank you for joining us. have a great holiday weekend and come back watches again monday nine. >> from the fox studio in new york city this is "maria bartiromo wall street". >> happy weekend to all, merry christmas welcome to the program that analyzes the week that was

in helps position you for the week ahead. i am maria bartiromo a volatile year for market will you be more of the same in 2023 alaska stephanie probably just that more trouble for american companies in china listened and wants answers over possible links to china slave labor while citigroup pulls consumer banking out of the communist country, china expert jonathan ward on the threat of doing business in china. on the holiday weekend and you pull shows the vast majority of christians believe americans have forgotten the true meaning of christmas. archbishop timothy cardinal dolan is here with this christmas message for all. take a look at where markets ended another busy week after gdp report and a key measure of inflation showed a further slide from a 40 year high but markets for the year are solidly in the red all three major industries on track for the worst year since 2018 led by the nasdaq

joining the macro mavens president stephanie pomeroy. it's great to see you thank you so much for being here merry christmas to you i want to kick it off with getting your take for the year that we are ending and what you're expecting for the new year for market. >> thank you for having me, merry christmas to you as well i wish i had a more jolly christmas message but i think after fairly rocky 2022 we are going to experience much of the same in 2023. the way i see it 2022 was a re-rating affair the markets adjusting to a new higher level of interest rates from the feds tightening. 2023 will be when we see the follow-up from the rate hikes in the economy. obviously on the front lines housing has early slowed sharply

in terms of volume. i think price will follow that in 2023, you'll see it broadening out to the hit of the economy in general consumer struggling higher price that my main focus of concern is the corporate sector which is a tremendous amount of debt that roles next year in 2023 in the good be ruling that paper, interest rates in some cases double triple what they were borrowing at prior, we've a lot of companies very marginal that are not going to make it. i think you can have a default cycle in 2023 and that will reverberate throughout the markets both corporate credit market in equities as well. >> this is a big deal you been talking about this for so long with me on "mornings with maria" i want to get your take on how

severe it's going to be and what this is going to be for the backdrop, so far the micro story has basically been offset the weakness has been offset by a labor market you're talking about a profit recession about running estimates that need to come down in the so-called zombie companies that have so much debt then i could be able to pay the interest payments. do you think they will go bankrupt? >> i believe they will if you conserve your debt before income with existing operations how are you going to do that when rates are double or triple what you are paying prior i think this is going to be a real problem and obviously are seen around the periphery a lot of trouble already we've seen increased defaults, obviously bankruptcies like revlon and afg which is kind of an interesting echo through history, here we are all the way out 14 years later from

2008 and aig has filed for bankruptcy. you'll see a lot more of that in a massive shift in credit rating which precedes the downgrade with upgrades downgrading 3 - 12 downgrades by 2 - 1. think of a trading in dollars of debt in the balance sheet of the corporation that will likely go up in a puff of spoked like ftx in the tightening in the broader credit market and will have other corporations. i think were what we're going to shatter 2023 is the myth of strong corporate balance sheets people talk about the corporate sector and painted with one brush and very much like the consumer sector is bifurcated, you have a handful companies with very strong balance sheets, apple et cetera and you have

everyone else into much dire straits, cast position is a glimpse into that the total cash position for s&p 500 companies the top ten hold more cash than the bottom 400, those are the largest 500 companies, imagine what the cash position is when you brought the lens to the top 1000 companies. we got much less balance sheet stress to work with and we have all the debt that roles, next year a trillion dollars and another trillion the year after that and another trillion in 2025 there's could be no respite from this onslaught of higher debt service. as you mentioned a bit a broken record on earnings and we have the personal income and spending numbers, you see that trend where income surprised on the outside but the spending numbers on the low side and people are trying desperately to sure up savings and try to repair their

balance sheets which will only further depress corporate profits going into 2023. >> real quick before you go how do you want to be invested going into the new year with all this worry. >> i would be very defensive or taken the backdrop i'm describing you'll see a rally in the treasury complex as a ten year yield comes down pricing and what i believe a much more material recession that can help utility companies that's an area i would be interested in, i generally be defensive and holding as much cash as you're able to hold and i would probably be positioned in hard assets, area i like a lot. to the extent you're a long only manager and you gotta put money to work somewhere i'd probably be overweight emerging markets versus the developed world economies were these higher interest rates are going to have a major impact because were also

massively levered in the most part the emerging markets have much less debt on their balance sheets and we do. there's not a lot of great opportunities. a be very defensive and the stock market indefinitely underway with the consumer to enter discretionary and it wouldn't touch corporate credit with a 10-foot pole. maria: we will leave it there, great to see you this weekend, thank you very much for being here. a quick break in the senate is demanding more from answers from tesla, gm and another american car country carmaker to chines the refrigerator is greg's happy place. my kids eat. but i finally figured it out. we can get all that we need and then a little bit more at walmart. ♪

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i had woofers inside my my car. my dad used to say, “hey man! i hear you coming down the street! you're gonna go deaf!” i'm like “ah! come on old man. you don't know what you're talking about.” it's not normal to come out of concerts and clubs with your ears ringing and not able to hear. you need your ears! you just need your ears, we take it for granted. you gotta protect your hearing. give yourself a break. so your ears can reset and re-heal, recalibrate. wear ear plugs or wear head phones. you're still cool. your sound isn't blasting and vibrating all the windows... you're still cool. [laugh] maria: welcome back major u.s. automakers are in the crosshairs of the senate over the supply chain in china according to the wall street journal the senate finance is demanding more from

information from eight u.s. car manufacturers including tesla and general motors writing the letter to car companies cited a recent report that found evidence global automakers were using metals, batteries and wiring and wheels sourcing from companies that used weaker workers elsewhere in china the abbotts organization founder and author of the upcoming book the decisive decade jonathan ward is here. jonathan it's great to see you pinky for being here this weekend i want to start off with this offset in the senate finance committee over these companies using slave labor in this changing region of china. >> hi maria what we're going to find people think of the genocide in the forced labor concerns are being related to textiles or clothing but it's a much more extensive than that steeply a part of china's industrial base and that's what this report as pointed out in that found its way to the senate we're going to see a big turning

.2023 were to come see us corporations in china that has a full attention of congress. i think the conversation in america among the american people is getting change a lot about what her companies are doing over there, this report has shown above all the relationship between the big steelmakers in the genocide in forced labor so the battle of steel which general motors called supplier of the year seven times between 2006 and 2020 as the report points out other elements like attires, aluminum glass, electronics, batteries which is a strategic issue, copper, you name it its industrial base not just textiles, not just clothing it's the entire industrial base they bought into china so deeply my opinion we're going to lose some of these companies of the 2020s like general motors which sells more cars in china than it does in the united states at a certain point

they're going to need a strategy to de- risk it's like the beginning of cold war one in your biggest client is the ussr tell me how that pans out. >> is a great point this is just one part of a china story that is quite troubling for america and the rest of the world. we know the ccp the chinese communist party was to overtake the united states as the number one superpower. why are so many companies funded the expansion of the ccp, will the ccp end up turning the guns at america i spoke with the incoming chairman of the china select committee mike gallagher on this program last weekend. watch this. >> defended the country from chinese communist aggression should be a bipartisan thing how do we do this beyond explaining the mistakes a key part of the strategy has to be reducing our economic dependency on china and making sure u.s. dollars aren't

financing china's military modernization or financing genocide and she's doing province. >> that was mike gallagher on this program a few weeks ago but some companies are beginning to wake up to the dangers of doing business in china, young citigroup pulling out the consumer banking operation in china. you certainly got a lot in the news about china's bad behavior from the provocations against taiwan to the continued intellectual property theft of american corporations, where is this going. >> not to mention naval exercises with russia this week this is all ongoing these are strategic industries there working together they know anyone that has a clue about misunderstands in her companies have to stop fighting how we win or lose is going to take place in the corporate sector. working have to go after chinese corporate in the chinese industry and get her companies out so were not building the industrial base. all the key pieces the industries that make this country powerful, technology

finance our industrial base we need to rebuild that that's the missing piece and we need to get her companies back you're on the right side of history that's one of the most important elements to this. the long-term if you don't have to when the economic competition that means american corporations and also means wall street pretty beat people are excited about the opening post covid post 0 covid and in fact people that want to capture every bounded china stocks these are not good long-term backed and people are investing against the national interest so we have to stop that you expect to be much more scrutiny in wall street and congress in the year ahead. it's something that has to come we need are bankers on our site not playing both sides. maria: is a great point all the while your surveillance programs from the ccp increasing all over america there are police stations across the world why do

we have a ccp police station right here in new york in the growing threat of tiktok, some universities are blocking tiktok access on-campus devices and wi-fi networks the houses began tiktok on their devices and the omnibus bill for good reason and were learning that forbes is telling us the reporting tiktok parent company bytedance was tracking forbes journalist. we don't have any people the ccp is tracking and why. >> by dance is one of the companies we have to get the huawei treatment to any good have to take on bytedance and make sure tiktok is obviously the element on the front-end but the parent company is a major a.i. capable company producing that advantage that is going to ultimately wind up supporting the commonest party strategic initiative. one of the bigger companies that we have to go after that they want to invest in you take ali

baba and ten sent which are known to be involved in the human rights atrocities of that nature and is a long list in the state owned enterprises and that's where we headed towards a form of economic warfare in the midst of a strategic decoupling that's unavoidable, let's not forget military goals that are very dangerous to the united states that includes preparing their military for combat with us. you can't talk your way out of the problem. we just have to take action. maria: you been talking about this for so long speaking with corporations, thank you very much for your leadership on the subject we will continue to follow your work jonathan were joining us. a quick break in the divided america in need of healing timothy cardinal dolan

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maria: welcome back christmas is finally arrived this weekend the time for many of us to celebrate with the ones we love but a new poll shows 84% of christians believe americans have lost the true meaning of christmas. other surveys illustrate a smart move away from christianity and religion altogether. in the united states especially among young people, joining the archbishop of new york timothy cardinal dolan your evidence it's great to see you this weekend, merry christmas to you and thank you for being here. >> maria, thanks for the invite a blessed christmas to you and the listeners. >> i love this thank you for that, what you make of the surveys why would people be moving away from god at such a

moment in time. >> we shouldn't be too surprised actually that the meaning of christmas from the beginning from adam and eve in the garden of eden sadly we've been moving away from god he's given us infinite love and mercy and grace in eternal life. he gives us all this and we say thanks but no thanks and move on that's the story of our beloved neighbors were celebrating hanukkah in the old testament that's our story as well were always tempted to move away from god. on the one hand it shouldn't surprise us christmas of course is god's loving passionate attempt to reconnect with us, the problem is it him connected with the system connected with him a beautiful way that the great saints have looked at christmas, god the father finally said i tried everything. one thing that can win people over is a baby i'm going to send

my only begotten son my lord and savior as a little baby in bethlehem and people are going to know how much i love them and cherish them and i want nothing more than for them to welcome me into their lives as they would a tiny little baby. it's been going on forever although i gotta be honest with you it does for somebody in the sacred enterprise of faith and religion in the church, this does give us a challenge how are we going to win people back in a more tantalizing way present this timeless message of a large love and invitation. maria: is there a message that you have for our viewers this weekend cardinal you've been such an incredible job as archbishop of new york you replenished and led the new beginning for st. patrick's cathedral thanks to help from donors what can you tell us about the catholic church today and what your message from our

viewers this christmas. >> thanks to great people like you we've been able to do this and thanks to somebody people out there. here's the message you have a job where you have to offer report, bad news. we all do we look around we see bad news we see a lot of darkness, this happens at the darkest time of the year when the sun is lowest in its orbit. there's a lot of darkness and sometimes we can be tempted to feel that this darkness is winning and it's growing in this darkness is following us in christmas of course when we come to midnight mass we're going to hear those words thundered out of people that walked in darkness and seen a great light. that baby in bethlehem would reveal himself as the light of the world jesus christ. the starwood breakthrough the midnight darkness, the angels were bathed in light lisa do not be afraid we have a savior and

that's my message today when tempted to think that were walking in darkness remember christmas is do not be afraid the people that walked in darkness have seen a great light and the light is out there in the light is not only after it is in here. you got it, never doubt that, rediscovery. maria: that's a beautiful message thank you so much for that. it's good to see you and will be watching and listening to you in 2023. >> into here you blessed christmas. >> and to you timothy cardinal dolan joinin when you're through with powering through, it's time for theraflu hot liquid medicine. powerful relief so you can restore and recover. theraflu hot beats cold. what can she get out of a box of cookies? new perspectives amazing adventures

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distributions of your over the age of 72 you must take minimum distributions from a tax deferred retirement accounts by the end of the year or risk a 50% penalty. optimize your charitable giving you could deduct cash donations to qualify charity worth 60% of your adjusted gross income and harvest losses of market volatility has left you with losses this year you can use them to offset any realize capital gains for 2022, tally up the games and cash out losing positions of equal value. if you have more losses and gains, you can offset up to 3000 of ordinary income, that will do it for us for this weekend thank you for being with me have a wonderful very merry and i'll see you again next time. ♪