people are fleeing trying to get out of. the model's come from mayors for guaranteed income. if you recall, that program started by the mayor of stockton the, california, in 2019, and last year hay put up this thing, really nice, boasted about all the different money that they're giving away and all of their accomplishments. but here's the thing, nothing the i saw mentioned education, crime or the quality of life, and that's because stockton is still rife with serious life and death issues. in fact, one of the most unsafe cities in america. there's a 30% greater -- 300% greater chance of being a victim there than the rest of the state. let's put money into schools and understood the, but don't give it away. it backfires every time the, liz. liz: yeah. you've got to earn it. i'm right there with you on education. k-12, let's get these kids some good quality even thers and help. teachers and help. amid the good quality teachers

that are already there. charles, thank you. carl charles see ya. liz: investors are reaching for the poi pry low sec as we kick off the final hour of trade because the intraday swings up, down, up again and in some cases down again are sending a very loud are message. in this, folks, is a headline-driven market and highly sensitive to the tape. we've got the dow jones industrials, if you look at this right now, they're down 86 points. the s&p up 3, the nasdaq up 55, the russell better by 2 points. we just got hit with a fresh headline. new york federal reserve bank president john williams speaking right now at a new york city region meeting hosted by the new york bankers' association saying, quote -- and this is just hitting the tape -- the big worry is that high inflation gets embedded in public expectations. so much of the market movement is tied to inflation. you're looking at the intraday chart for the dow. you can see far left at the open the dow popped up by as many as 41 points but then skidded below

the flatline. the intracays underscore what we are talking about here. initially, investors swallowed that january consumer inflation number pretty easily. the s&p hit a session high of a gain of 22 points, up 5 right now as the markets looked a little bit more deeply, the reverse began. sending the s&p -- you can see it there around noon -- down 42 the points, and here's the problem. the inflation picture is still very much leafing. headline consumer prices for january matched the .5% estimate but year over year came in at 6.4%, that's .2% hotter than anticipated. core cpi which excludes food and energy, that matched month over month expectations, but year-over-year while down from december's annual number, also came in slightly higher than expected at 5.6 percent9. 5.6%. let us be clear, the regret

phase does not appear to be fear-driven. the vix is at the moment down about 8%, 8.25% at the moment. and, actually, goldman sachs' ceo david solomon articulated sentiment pretty well this morning during a credit suisse conference. here's what he said. >> i think it's going to be the, you know, a twisting, turning kind of road to navigate and get to the other side. but i think the chance of a softer landing feels better now than it felt 6-9 months ago. but inflation is still sticky. and, you know, i'm in the camp that it's still uncertain, you know, exactly what the trajectory will be of tamp thing down inflation. and inflation is a big headwind for growth. liz: but if you look at growth stocks, they are part of the reason the nasdaq actually looks the best intraday, up half a percent or 60 points. it is growth names like cay kens design systems -- cadence design. s the up 7% on a bullish 2023

forecast. then you've got nvidia up 5%. they got an upgrade. and tesla leading quite the charge of the evs, up 5.8%. by the way, at $206 tesla shares are now up more than 100% from their january low of $101, this on the very cay though that workers in new york are lawn are. ing a campaign to form a union, and insurance registrations in china for tesla vehicles dropped 20% last week. ross gerber will duke it out with gordon johnson in a bull-bear debate in just a few minutes. and p.s., tesla prices -- [laughter] the cars themselves are rising again. speaking of rising prices, this afternoon philly fed if president patrick hard kerr said they are -- harker said they are not dropping fast enough. quote: told's inflation report show -- today's inflation report shows that inflation is not moving down quickly and that, quote, i think we need to continue above 5% in 25 basis

point increments for a while. before we see any more headlines come and gyrate this final hour, because you mow they will, let's get to the floor show. we're joined by gary kaltbaum and omar sharif, president and founder of inflation insights. back on january 2th, omar tweeted there are a lot of big picture macro thoughts about why inflation will fall, but the details suggest upside risk to q1. that january cpi number kind of tasted like that pizza with the sausage and the cheese stuffed in the crust, right? it's good going down, awe -- but at some point regret kicks in. what do you make of this number? >> there's a little bit of concern about what this number showed us, we could get a continuation of this kind of strong inflation print in february and possibly into march as well. so the kiss inflation that we thought -- disinflation that we thought we were seeing in q4 is

looking to be the retracing a little bit, and that's obviously concerning. you saw the fed headlines today, my guess is if we get another print like this in february, the fed is going to be the raising their dots in the march meeting. they thought they'd get to 5.1, i think you're look at at least 5.4 in the dots. this was a broad-based increase, and that's probably the most disconcerting headline out of today. most of basket was actually increasing, and that's a big problem. liz: gary, i don't know why the market hears one thing and jay powell keeps saying another, and that is we are not done raising rates. we can look at -- and, by the way, if you look at the fed funds futures, this is that mechanism that people can bet upon where you decide what you think the fed will do and how high the terminal rate will go. right now if you go all the way out to september, this is pretty stunning, you can see that there are people who are actually believing at the moment -- we can put up the fed funds futures there for september -- there is

a 45% chance now, odds, that we will see terminal rates at 5.25-5.5%. that's the target rate. gary, the economy not that bad, i mean, and, transfer, it sure -- therefore, it sure looks hike the fed is going to continue on its trajectory here. >> yeah. and that'll provide some headwinds for the market because the market's been aboutly quid i. but for me, and i've been saying this for the past few months, less the fed, more of the real market. what are interest rates doing in the real market. the 10-year yield is at 3.7 and change right now down from 4.3 and much lower than the fed. and for me, as long as that 10-year yield stays down, i think we're okay. if you start to see the 10-year yield -- and, again, that's the real markets, that's the big money talking -- going into the 4s or higher, then we're going to see some trouble. liz: yeah. if it goes above 4%. well, which sectors would you

see trouble in, gary? >> well, everything at a given point in time, you know? housing spots have been really strong. they'll start coming in, utilitieses will start coming in. i worried about financials also. but right now for whatever reason, the good news is semiconductors are are strong, software's strong. i think software, which was battered for 50-80%, i think that's been wrung out, and that's what i'm watching most closely because that's the risk-on areas, and that's good for overall markets. liz: omair, do you think we will see that the 10-year yield go above 4% in and we need to ask about the super core. this is the number everyone's talking about. core inflation, that's, and food and -- that's x food and energy. this strips out food, energy and shelter, all the things we need and use. i mean, it's a little absurd, but the super core

year-over-year came up 6.# %. please tell our investor audience right now what that should mean to them, and where is the best opportunity the. >> yeah. so, first of all, i think this is -- we know this is what jay powell's watching most closely. he flat out told us, look, we know there's some disinflation happening on the good side, so we're a little less worried about that. we know that housing and the cpi data that lags, so those numbers are likely to come down. so what he's concerned about is this core service which he thinks is largely labor and wage driven. so that's the number that we're most concerned about now, and as you mentioned, you know, 6.2% year-over-year, we haven't really seen relief on that front and, again, i think this is when you go back to the fed, the number is why you're seeing patrick harker worry a little more about what the fed needs to do to yet inflation down because we're just not getting a lot of relief on this super core figure, if you will. liz: yeah.

although you look at the underlying momentum, and you find it many jobs, gary. [laughter] we saw that banger of a jobs report for january, and it almost feels like the fed is saying, look, this economy is -- and david solomon of goldman sachs pointed it out -- there's this possibility of a soft landing. things won't be as horrific as people might anticipate, but that said, there's this huge question mark about inflation. did you see used cars started to come down the in price, and yet we still see airline ticketses skyrocketing. i mean, it's a new versus that -- a this versus that. >> job markets one of the strockest i've seen. bottom line going forward, there's no way an economy that is used to no inflation for so many years is going to stay in good shape if inflation stays at 6%, even at 5%. you've got to will be businesses, everybody's -- and capital has to get used to higher numbers, cost of capital goes up. and then you add in the amount

of debt9 and deficits there are out there, the cost for that's going to go up big, and that's going to be a huge headwind going forward. so right now i feel okay about everything. i am really worried about down the road if these numbers stick, and i've got to tell you so far they are very, very sticky. liz: yes, that would be the. during part that john williams, omair, just mentioned. the new york fed says he's worried that these prices will become entrenched. why, if i'm a retailer, am i going to lower my prices as quickly as i raised them? what's your terminal rate expectation, and do you expect a pause this year, maybe a pivot? i doubt you're going to expect a pivot this year from the fed starting to cut rates this year, right? >> yeah, no. absolutely no pivot. certainly not the way the data the's come out. you mentioned the job market number, the cpi now. i think a pivot is, you know, a pipe dream at this point. a pause if i still think could come at some point, but we continue to push that timeline

further and further back. liz: right. >> it's the now looking more like perhaps in the second half, but if the data continues in this manner, and i think the next couple of months are still pretty dicey in terms of inflation, the fed's probably got a little more work to do here. liz: well, what did i tell you guys? look at s&p, it is down a point. we start thed at the top of the hour where it was the punching up. before our heads spin across like, you know, the exorcist and ebbs load, i'm going to let you guys go on your way. gary with, omair, thank you very much. [laughter] >> thank you. liz: good to see you. in the wake of that live nation, taylor swift, ticketmaster debacle, we are just a week away from pink's album release party which is going on the held at the top of the empire state building. she is going to be to be doing the trust fall right into the harm -- arms of i heart radio bob pitman's arms. what's changed and why -- [laughter] and why his concert or tickets are so unbelievably hot and his

secret weapon, the massive and growing podcast business. closing bell ringing in 48 minutes. dow dow jones industrials down 117, and let's just call it a flat-liner for the s&p, barely higher at this second. ♪ ♪ get help reaching your goals with j.p. morgan wealth plan, a new tool in the chase mobile® app. use it to set and track your goals, big and small... and see how changes you make today... could help put them within reach. from your first big move to retiring poolside and the other goals along the way wealth plan can help get you there. j.p. morgan wealth management.

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liz: investors heart iheart media stock. year to date do the radio and pod kass giant seeing shares spark 18. it's one of those three things, the not so secret weapon, and it is the booming. iheart media is the top podcast

streamer in the united states. according to pot track, it has more than 33 million -- pod track, it has upwards of more than 412 million global downloads. streams of its portfolio, 814 active shows. advertisers sharing iheart media with love as to podcast revenue in the third quarter 2022 saw a 42 the % year-over-year gain to clash 91 million. here with me now in a fox business exclusive is the iheart media chairman and ceo, bob pitman. bob -- [laughter] okay, i mean, aye been covering you guys for a long time. >> yes, you have. liz: and it has been a very, very rubble-strewn road, has it not? podcasting, ten years ago, would you have expected that that would be your secret weapon? >> no. i don't think anybody did. it was sort of the people on the fringe, but i think at a certain point we began to see this tremendous interest in everything audio. i think we benefited from this

one change in consumer behavior, the death the of peace and quiet. if people used to have a time in their day, oh, the kids are in bed, now i can have peace and quiet. no one has peace and quiet, and they filled in that time with audio. it's also why podcasting has grown. liz: it's so ironic because you and iheart media have, i don't know, rejuvenated radio in such a dramatic way, and you're guy who everybody accused of maybe trying to kill radio because you were one of the cofound ifers of mtv. >> i picked that song, video killed the radio star. today mtv count play any music, and radio's stronger than ever. the irony. biz. liz: bizarre full circle here. let's talk about the advertising atmosphere right now. all we hear is that advertising is in slowdown. is it from where you sit? >> i think on our last earnings call we talked about it, that i think it is. there's a period of uncertainty. i keep asking myself and my

partner, rich, why is it not worse than it is given these headlines which we're all talking about? and i think part of it is that in 2020 the people who made those big advertising cutbacks are still making the advertising decisions today. and all the people who cut back a lot saw their sales suffer a lot. and in the long run, they would have been better to keep spending money through that recession in 2020 rather than the money they had to spend to regain the consumers. so i think you're seeing some of the benefit of that. and also i think people are just saying they're sort of sick of the slowdown and just saying, look, i've got products to sell, i've got a brand to build, i'm going to continue to do it. liz: i have ears to reach. so can you make a prediction about 2023 revenue from podcast his thing? better or worse than 200 the? >> you know what? it's hard to say and, obviously, i don't want to do any going-forward projections, but i think as we look at 2023, we're probably subject more than anything else to the macro. and, you know, we're clearly

advertising-supported companies do better and podcasting included in recovery, so the question is, when's the recovery and when do they stop raising interest rates and start lowering them, and i think those are the two variables we look at a lot. liz: let's often the music streaming i. has exploded over the past couple of years. talk about your place in there. i mean, we just saw spotify, actually, you know, we hear that they're cutting their podcasting business. you think that's a mistake, and what about their radio business? how do you compare in that regard? >> they really don't have a radio business. spotify's done a spectacularly good job of being your new service to keep all your music in, up like, you know, sort of like the itunes store used to be, it moved to spotify, and they do a great job of it. but it's the not a radio company. it's actually sort of the opposite. what we are is we have hosts, we have personalities, we keep people company, and they keep your music. now, 75% of our stations play music, 25% don't ors but all the

stations keep you company, and that, for us, is the big thing. and when you rook at podcasting, podcasting, we think, is a very adjacent business to the radio, very host-driven. tv people come and do it sometimes, try and do all the production values of tv. what makes a successful podcasts is hosts who can tell a good story. liz: oh, owe, you have a podcast. what's identity it called? >> magic, stories from the. frontiers of magic. >> and you car ray -- carry our podcast, everyone talks to liz. i do have to ask, what was your gut reaction because iheart radio puts on these unbelievable group, jingle ball concerts. i've been to the one in vegas where you have linnered skin ard mixed with the mariah carey, but also acts so that the parents can enjoy at least 20 minutes on each set. but the swift, the taylor swift situation with ticketmaster, when is that -- sorry, i'm not

even going to say it. it looks like a monopoly, it smells like a monopoly, it talks like a monopoly, you know? did anything change when live nation, the parent, went and every thed before congress about how they have a lock on ticket? >> well, you know, i think ticketmaster's actually concern and i think live nation does a very good job. and i think the taylor swift incident, that's taylor swift. she is so big, so huge -- liz: it happened with bruce, it happens with a lot of people. >> yeah, but i think went you see it with taylor, i think the complaints were the system broke down, but there comes a time at which something's just so big, i don't care what you are -- who you are. i have a lot of empathy -- liz: there but for the grace of god, go we. >> almost no one can keep up with that demand. she is sort of this phenomenon. liz: are you saying that because you depend on ticketmaster? >> no, i actually don't depend on ticketmaster, but i do have -- i understand the business of it, and it is very

hard when you have this just outsized, one-time, went- one-person event that gets so big that things cohappen, and they do break. look, i was at aol, you had busy signals so you couldn't get online. [laughter] things occasionally happen you just go, oh, my god, i never expected something so big. liz: you've become the place where a lot of acts debut their new albums. pink is coming up in march, i believe, top of the empire state building. you're still rocking, and you're the guy who's launching people's careers. >> and you know what? it's the relationship we have with the music industry, is they're one of our great strategic partners, and our job is to break new acts because at a certain point you're going to get tired of whatever you're listening to, and we better have a whole bunch of new ones coming. so we take it very seriously. when an artist has a new album, it's a very good moment. and for us, we always try and strategize about what can we do that make makes it an even

bigger moment? we had taylor swift on a rooftop once in new york with the 'em empire state building synchronizing to her music. it was great. liz: you've got a great job. now that you've got a lot of the debt on the books, congratulations on that. and thank you for carrying my everyone talks to liz podcast, yes, on iheart radio. this week, by the way, brand new episode. recognize this guy? the famed former episode, you recognize this guy? perhaps best known for having been the first national news reporter to get a signal up and report live on 9/11, witnessing and describing live to the world the horror of the attacks on the world trade center. is one of the premier breaking news and war correspondents in the world. but i bet you didn't know he dropped out of college and installed drywall until realizing his real calling. rick's now an author, chasing catastrophe, and he's my guest on the brand new episode of

everyone talks to liz which just dropped. wherever you get your podcasts. we are coming right back, dow jones industrials paring some of the losses here, down 86 points. we're coming right back. ♪ don't be fancy, just get danc- ♪ why so seriousesome. ♪ so raise your glass if you are wrong and all the right waitings ♪ i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums] life is for living. let's partner for all of it. i'm so glad we did this. edward jones

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♪ liz: all right, fox market alert, and we said this was a headline-driven market, and here we go. we do still have the dow jones industrials down 12 the 0 points. we've got the s&p clinging to a tiny gain of 1 point. [laughter] hey, a win's a win. and the nasdaq up 63 points. let's look at some individual stock names here, bring up of course city dental petroleum after goldman sachs raised its rating from neutral to a buy. the exploration and production businesses will strengthen this year supported by favorable upstream results from their permian and middle east operations. you guys know this because we've mentioned it, the oracle of omaha has been very bullish on the oil exploration company. it now has amassed a 28% stake in the company, that according toed's schedule 13g form.

warren buffett's berkshire berkshire hathaway now owns 238 million shares. its 13f sec form is expected to come out after the bell. we will get you that, of course, tomorrow and give you all the information. buffett and company also ache thing a 50 million share stake the of kroger, a nearly 10% stake in allied financial as well. he now to owns 915 million shares of apple, that's up from 894.8 million shares reported in the company's 13f filing of third quarter holdings. is here we go, all three names are moving lower there. let's look at activision blizzard. buffett if had announced during his annual shareholder meeting he had taken a personal stake in activision blizzard. buffett if has also, on behalf of berkshire hathaway, ache then a pretty significant take -- taken a pretty significant stake, now at 6.7%. it's moving higher by a quarter of a percent right now. and airbnb set to unveil

earnings after the bell today. travel command returning to pre-pandemic level, so some analysts believe this will help boost bookings. however, some investors are concerned with more workers returning to the office, that might mean that the travel booking site will lose out on the revenue generated when employees can work from anywhere. airbnb up 3.6% after falling for the past couple of days. restaurant brands lore after the owner of burger king reportedded lower sales growth for the third quarter compared to last year, stock is down 2.8% right now and the company believes the toronto-based fast food chain that the coo will take over as -- cfo will take over as the new ceo. if chocolate is your go-to valentine's cay the gift nor that special someone, i have bad news for you. cocoa prices hit a two week high yesterday. tight inch venn stories in the u.s. and europe around 10-month lows despite one of the world's

largest cocoa export groups including processing -- reporting processing increased last year. lydia hu, inflation is sort of the buzzword odd. what can you tell us? >> reporter: yeah. some of the prices we're seeing, liz, they may just make you cry on this valentine's day. we're getting an idea from today's consumer price index showing us that prices across the board, they're up for consumers compared to last year. can key, sweets up more than 12% in price -- candy. if you're planning to go out to dinner, it's going to set you back more than 8% today. why is all this happening? because businesses are still dealing with increased costs x for insight, i want to introduce you to co-owner of dessert is ladies here in new jersey. geraldine, you had to make a difficult decision to raise your prices by 8-10%. el the us about why that is. what's going into your costs? >> just about everything. everything from, as you can see,

from our store we coa lot of chocolate. our chocolate prices went from about $105 a box to $1 # 3 a box, and it's not coming down. eggs, crazy. we went from $15 to 15 cousin to $90 every 15 dozen. >> and you make it -- it makes you nervous because it's kind of a luxury category. how are customers reacting in. >> we've seen a trend where people are still buying, but they're buying less than they did before, they're buying smaller gifts, less product, and they're trying to save dollars, you know, anywhere they can. and we have seen consistent trend since before thanksgiving. >> reporter: liz, i can tell you, i had the opportunity to taste test some of geraldine's amazing chocolates. they're worth every penny even though they're a little more expensive than they were a year ago. i want to show you the cupcakes she mentioned, looks like a bouquet of flower, perfect for a valentine's day gift. but the input costs, we know

that eggs are up more than 70% in price, flour, butter, the fats that go into making things like this, all of that up in cost. so it's definitely hitting consumers in the wallet on this valentine's day. liz. liz: grab me some salted chocolate caramels. [laughter] that's all i care -- >> please! liz: the whole crew is asking. >> reporter: i've got you all covered. [laughter] liz: okay. tesla trouncing toyota in california car sales as elon musk tinkers yet again with prices and, of course, his twitter side quest. but with a 60% rally so far in 2023 alone, is it primed for a pullback or a push forward? up next one of tesla's biggest bulls spaces off against one of tesla's biggest bears. our super panel of ev experts here next in a bull-bear debate. closing bell, 24 minutes away. an even 103 points to the downside for the dow jones industrials, but we've still got

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liz: breaking news on tesla, folks, the stock just hitting a session high right now, $20 the 9.07, up more than 100% from its january low. this despite customers getting price whiplash as the ev giant again implements a price change. this is the fourth price change in just two months. okay, take a look at the model y in november of 2022. that car cost $72,400, that was the average price. in january tesla implemented sweeping price cuts, bringing the model y down to $52.990. today the price for the model y performance model, $58,900. still about 16% lower than it

was in early -- january, but that's just the model y. he's changed the price on a couple of these things. ooh he's been fleet of foot because he needed to spike sales at one point. what's in store for tesla and elon in the year as the spike in the stock continues? we have a bull-bear debate. joining me now, our bear, gordon johnson and well known tesla hair holder and bull owning 440,000 tesla shares, ross gerber. gordon, the stock has been a old the winner year to date. -- total winner, wail the, since it hit that low on january 6th. what is your case against tesla at the moment? >> yeah. so the case against tesla is simple. there's a couple of key things. number one, tesla no longer has a real world range advantage based on edmunds testing. number two, they no longer have a charging advantage. the hyundai -- has an 800-hold battery, charges quicker than tesla, a lot of other cars co.

number three, they ranked last in autonomous driving, and mercedes has level iii -- on the road now where they take legal liability, tesla does not. number four, remember last time we had this debate with ross, he said their batteries are the best thing since edison's lightbulb. none of the promises they made at battery day they've achieved, and their nominal density is actually worse than panasonic's current generation 2170 batteries. so their batteries are worse than current generation batteries. you have a company that we believe of is going to see earnings decline roughly 25 the % this year, and -- 25 the % this year. you have declining earnings, market share collapsing in chai, the u.s. and europe -- >> market shares collapsing now? >> so i think they have problems. liz: ross, let me just bring up -- bring up the scarcity premium issue. i i do believe gordon is right or about to be right on that.

you have a lot of companies coming out, hyundai's coming out with the ionic. i drive a tesla, and i'm looking for something a little bit better. what are you saying is the upside potential here what's going to the drive it for tesla? >> well, i mean, first of all, the ionic is not even company comparable to a tesla model y, it's kind of a cheap car, it looks like a cheap car inside and out, and the technology's antiquated. there are exit ors that are starting to -- competitors that are, you know, starting to come out, but as we've seen, most of them still have years before they can scale with ford now halting production of the lightning because of issues that they're having scaling production. so tesla still has a several-year advantage in the scale and output of cars which no other ev player is close. so if you want to buy an ev, tesla is the way. their battery technology is superior, they have ran 4680 and we're now seeing them in cars coming out of austin, and the price points are coming down and the costs are coming down.

but the bottom line is tesla still is the only game in the ev own the, and now that they've shown that they can tell cars at a lower price, they're raising prices because demand is so heavy. liz: well, to that point -- >> tesla's still mt. the early innings of their growth story. liz: to that point, gordon, there is something very kiss runtive about tesla and the way they run their business. he can change prices on a dime, and that the enrages some people who buy them at the higher price and two weeks later he gets a bad data point and lowers the price. but what is the negative of that beyond what i've just articulated? >> ross talks emphatic to his vagaries. we can't just keep allowing these platitudes. listen, tesla is not concern they don't have a competitive advantage -- >> gordon, you just said the mercedes has gulf self-driving concern full self-driving, and it doesn't. >> that's just 38% of their capacity in china despite

massive price cuts. their run rate demand in q4 was 1.75 million cars an eulogy. that's half of their capacity despite the fact they're only running their plant at 20% utilization -- >> gordon, we're about to break records -- [inaudible conversations] let me get a half a million -- [inaudible conversations] liz: hold on, hold on. >> ross, let me finish. >> dyd -- byd is increasing prices in china. vw is increasing prices in china, tesla's cutting prices. they're not selling out their capacity. [inaudible conversations] they've always exported cars from china. liz: okay. ross, you are actually -- while you are a big tesla bull and i've known you a long time and you have been, you also feel that it's necessary to announce this week to the company that you would like to run for a board seat, correct? what is -- >> yeah, that is correct. of. liz: concern your dissatisfaction? >> it's not about

dissatisfaction, it's about helping tesla go to the next level which the skill set that i have that and i think tesla needs and is necessary, and a board seat would be a way to implement these strategies. i mean, there's no question with all the fake news and the thud that people like gordon put out every day that tesla needs pr and marketing so that the real story's old. mercedes doesn't have a full self-driving solution -- >> that did come out -- >> secondly, gordon, i think tesla has millions of new customers, and they really need to focus on the experience for customers. and i'd love to see a service and customer satisfaction czar -- >> ross, you can't put out thes- liz: i would agree -- let me let gordon -- >> and lastly, i'd like to see some secession planning because elon musk is a human being, and as tesla moves into the next level, it should be very clear what path tesla would take if, god forbid, anything happened to elon. liz: gordon, would you vote for raz if you had the

opportunity -- ross? do you think ross would make a good candidate for the board? >> i think ross would be excellent. look, look, ross has never disagreed with elon musk. he's literally a cut cult member. he's saying things thatten aren't true. he's saying mercedes -- >> how am i a cult member, gordon? >> i think ross speaks in vagaries and platitudes. i think he would agree with whatever elon musk, i think he'd make a perfect board -- liz: ross, you can end. >> -- in vagaries and platitudes. liz: ross, let us know what response you get from the company and, gordon, we will continue to look at your research and have you both back. but again, the stock is on a power trip at least today, it is now pretty much hitting session highs. good to see you both. >> yeah. hopefully we'll hit a gordon today and be up $20. liz: we shall see. up next, charlie breaks it on gary gensler's stable coin crackdown. we are coming right back. dow is down 84 points at moment.

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♪. liz: dow jones down 91 points. securities & exchange commission commission chair gary gensler has his arrow pointed at a new target this broad crack down on

the crypto industry. charlie gasparino. >> liz this is a crackdown people are saying in the crypto industry they believe is designed to reduce crypto to back water, a few players, not a lot of action going on. if you talk to people in the crypto business this is pretty serious stuff coming out of the sec sending out wells in thes to various places. my producer gotten wind of latest iteration of this broad crackdown by gary gensler. a lot comes after the ftx blow up. we can get into that a minute. this one targets stable coins. according sources close to the matter they're telling ellie the sec intend to send wells noticet they failed to register as securities. now we should point out that wellses notices are the notices you get from the sec enforcement division essentially alert they will recommend charging you with securities fraud. you have essentially 30 days, 90

days to talk them out of it. nine times out of 10 you don't talk them out of it. they send a recommendation to the full commission and you're charged and a case is brought. that is where we are right now. this is pretty amazing. this comes amid as i said before, liz, a broader crackdown on crypto again some industry participants are saying armageddon like. they don't think there will be much of crypto left when they're done. gensler will likely get blow back from the gop in congress, crypto, underlying digital technology, the blockchain technology could be the new internet and with that his crackdown is stifling innovation. also people will want to ask him, what exactly are you doing? what is your intention here? again, liz, i spent today, ellie spent the day speaking with securities lawyers that used to work for the sec and some people inside of the sec. this is very serious stuff.

it looks like, looks like gensler has, if he has his druthers there will be bitcoin and really not much else. maybe eater but clearly everything else he thinks is operating illegally, not registered and cases, at least according to the what we're hearing from both participants, from people inside of the sec, cases are going to start coming in rapid fashion. again, there will be some blowback here from congress. so we should see where this goes and again the sec under gensler is pretty thin with climate disclosures rules and changing the market. but affix fix blew up, gary gensler in particular because he met with sam bankman-fried several times on several projects bankman-fried was innovating before he was indicted feels under pressure he has to do something and apparently he is really doing it. liz, back to you. liz: charlie, good stuff, thank you very much. with the overhang with the

federal reserve where it might send rates next our "countdown" closer says look away from the u.s. stock world and across the ocean. jason katz managing four billion in assets at ubs managing director. where? you say international. which country. >> let me take a step back. we all have the home bias. we had tremendou, versus 50% ves international. inflation is coming off the boil. europe is having a milder winter, china reopening, dollar weakening. this portends a much better backdrop for international than that of the united states. to answer your question i think you need to look at china, i think you need to look more defensively overseas. i would say the uk. liz: when you say, ha, china, i could just see people going, into orbit. they have got balloons that are surveilling us! these stocks can be very dangerous, can they not because of the geopolitical atmosphere?

you say go for it and ride the rumble? >> i was talking about this with my staff before i came on your show. it is controversial to say look at china but you can't let your politics or geopolitics jade your perspective. that can be very dangerous. liz: you know who says that? charles payne. you will lose money how you feel about republicans, democrats, china, cloud your vision. >> look what happened subsequent what happened to the inauguration with donald trump. china reopening and see a precipitous rebound in their con must have. earnings growing 20%, versus 6% for the rest of asia. that is a place i would look and if you want to be more defense sieve look at the uk. if thecy 4% dividend yield, trading 20% discount to historic multiple. there are commodities sectors in the u.k. liz: you can get into etfs that have baskets of the best in

quality, correct? >> to go to your original point, it can be walking in a land mine. broader die verycation benefits after fund but liquidity of a stock. that is definitely way i play it. mid high single-digit returns balance this year of china, in the uk, versus u.s. i think at this point i think we're looking at flat returns. we pulled so much returns forward in the first month of the year. liz: it has been a solid first month. we'll see if there is tapering. [closing bell rings] jason says look over yonder to the oceans. jason, thank you very much. dow snaps a two-day winning streak, down 167. but look at nasdaq a gain of 66. ♪. larry: hello, folks, welcome to "kudlow," i'm larry kudlow. before we go ballooning again tonight we'll be speaking with senator tom cotton in just a moment, a few words abou