maria: liz? liz: i think the markets are booking in a bigger number for a pause. the other thing that people are looking at is what happens in england, because there is some indication that they are not going to pause so it's still, we're still betting on the fed. my big number of the week is unemployment claims because i think we've kind of reached a tipping point and we're going to start to see those numbers go up maria: yeah, its a great point, and i'm really focused on the earnings. i want to see what these big tech companies deliver given the huge run-up in the stocks year-to-date. >> yeah, its been a good run. everybody thought they wouldn't play anymore. it was over but productivity matters in america and they provide it and i think that's why they stay going. maria: yeah, all right, great point, kevin o'leary, liz peek, wonderful to be with you both this morning, thank you. have a good monday everybody. we'll see you again tomorrow. "varney" & company is up next. stuart take it away. stuart: good morning, maria, good morning, everyone. every monday we start with your money, because everybody wants to know if anything happened over the weekend that

drastically affects the markets. nothing too dramatic. hold on. although we have more earnings reports that are helping a modest rally at least for the dow. pretty flat as we open for trading this morning, dow up maybe 20, virtually no change for the s&p and same with the nasdaq. dead flat today. interest rates holding at their higher levels i've got the 10 year yielding 3.56. the yield is up there, and the two year now well-above 4% looking at 4.16 that's quite a jump in rates there. the price of oil still around $ 82 a barrel, 81.93. gasoline up just a little bit today 3.67 is your national average. bitcoin last time i checked was at 30,000 bucks i'm checking now it's at 29, 500. elon musk at it again. this time he's blasting artificial intelligence. if it goes the wrong-way, it could lead to serve civilization destruction, he says. well ai took center stage on

"60 minutes" last night. google's chief says it will affect every product from every company. there is, however, no sign of a pause yet on development of ai. stories on the decline of american cities that are just so many stories like this. in chicago over the weekend, teenagers swarmed the downtown area smashing car windows, scar ing tourists half to death. the mayor-elect, brandon johnson , says don't demonize the kids. oh, one more from elon. his spacex rocket is about to launch from texas. it is the star ship rocket, the most powerful ever built. this is the rocket that musk plans to take us to mars, eventually. monday, april 17, 2023. "varney" & company is about to begin. ♪ jump around, jump around, jump

up and jump up ♪ stuart: wonderful, we start on a monday morning with the "house of pain", really? todd: don't know how the week goes in the market. i want to be realistic. stuart: it's raining in new york it's half-empty as well. all right, i want you to take a look at this as opposed to midtown manhattan. spacex doing a test launch for the newest rocket. the star ship. it is supposed to be the most powerful rocket ever built. the plan is to have it fly what about 150 miles up in the air, straight up complete a partial lap of the earth and land back down off the coast of hawaii. that's scheduled for about 15 minutes from now. you'll see it when that thing takes off. budweiser just released a brand new pro-america ad following the controversy with transgender activist dylan mulvaney. todd piro is with us this morning. now that new ad is a reversal of the advertising campaign. are we going to see more woke

corporations doing the same kind of reversal? todd: i don't think so, because i think bud, budweiser, bud light, are uniquely situated, because their base is predominantly conservative. that's why this move, this dylan mulvaney move, was so completely off the rails for them, whereas a company like nike, which has been going woke for years, i don't see them backtracking any time soon. stuart: but that ad on the screen, that really backfired against bud. the number of cases delivered last week is down about 5% and down 10% on the year, and that's because of the mulvaney campaign it failed. it really hurt their market. won't other companies realize this can hurt you too? todd: it can, but i think bud light is so unique in the sense that if you're drinking bud light stu, you're probably not a week, whereas i feel like nike has given up on hitting conservative america. i feel like new balance, you can take the conservative share, so

i feel like nike and companies like them are doubling down. is it smart? no, because you heard michael jordan specifically when it comes to selling sneakers say half the people are republicans so i want to hit that market. i think nike won't come back. i think they should. i see where you're going with it you want them to. you think it be a good idea. i agree with you. i just don't think they are necessarily going to learn the lessons. stuart: i just don't want to see american corporations trying to score highly on this corporate what is it? corporate equality index is it? that's the one? they do this thing because they want to -- todd: esg? stuart: score highly. todd: but if the people at the very very top, the larry fink of the world are pulling the strings on that in many respects they have to do it whereas bud light if you lose $6 billion even the larry things of the world will say like well you may want reverse course and that's what bud light did. stuart: the sooner the better. google's chief executive warns that artificial intelligence is expanding too fast. roll tape. >> one of the things we need to be careful when it comes to ai

is worry what i'd call race conditions, where people working on it across companies, et cetera, so get caught up in whose first that we lose the potential pitfalls and downsides to it. stuart: jeff sica is with us this monday morning and always prepared to offer an opinion and he's going to offer an ppe today should we fear, or embrace ai, or do both? >> well, here is -- when elon came out and said it was the single-best biggest threat to civilization, i thought he was being a little melodramatic, because after all we have the two very influential weirdos, bill gates and mark zuckerberg, come out and say that we need to embrace this. it'll make our lives easier. listening to them is a complete waste of time, because they are all about themselves, so when i really looked into it and i div ed into some of the implications of what ai is going toup

at night. it scared the daylights out of me, primarily because ai in the wrong hands and with so many what i would call wicked evil ma l-intents out there, if they get their hands-on it and use it for their own selfish purpose, we are going to be in a very difficult situation. that being said, and also destroying 20 million jobs in the next five years. that is ominous. stuart: i don't see how we could get a pause and musk has called for a pause on ai development, a six-month pause. you're never going to get that. >> i mean, i'm not big, i don't like government intervention. i don't like any of that regulation. i'm very libertarian in that way but i will say that there needs to be some type of pause because they first have to work out how do we keep this out of the hands of people who are meaning to do

harm to humanity. stuart: i've got to say that "60 minutes" piece last night was fascinating. they show little robots playing kind of soccer, just go out and get the ball in the goal, and they developed strategy, amongst themselves. the machine created strategy to put the ball in the goal. >> when it seems like they want to replace the human race with machines, it's to me, i think, unless it's moderated, we are going to find themselves up on a bridge too far that we can't undo what's been done. stuart: okay, separately, what do you think, i think the market wants to go up. jeff sica says what? >> well we had a lot of celebrations, stuart, the bail- out bonanza, the fed is going to bail out the banks. we had last week with jpmorgan's earnings. this week, we're going to have good earnings from bank of america and so it's going to seem to people that the banking crisis is under control but what

i see is that there are issues on the horizon which need to be dealt with. one of them being that we are seeing wages collapse, the consumer has been stretched to the point of breaking, and we are in the midst of a very severe recession, so i'm not, i'm keeping my champaign on ice. stuart: you are? >> i'm not cracking the champaign yet. stuart: well jeff sica, you have a wonderful monday morning. it was great to have you with us todd: talk about house of pain right here. stuart: yeah, all right thank you, jeff. now this. pure politics here. the super pack supporting governor ron desantis released a new ad, that took a shot at former president trump. it tells him trump fight democrats not republicans. all right, todd. the trump-desantis feud seems to me to be taking over the whole gop race of the presidency. todd: it's a two-person race even though one of those individuals has not yet declared that he is running, and that individual is ron desantis, but what upsets me about this ,

especially from the republican side. these two are going to bludgeon each other and i understand that's the way the primary process works, but they are going to use a lot of money. they are going to use a lot of airtime and they are going to get a lot of things out there about the other person that of course whoever the democratic nominee is, assuming at this point it's sleepy joe biden , he's going to use to his benefit even though, and you know i've been no friend to joe biden. he's done a horrible job. he could get that second term because the republicans have beaten the you know what out of each other going forward but that's the power of incumbency. stuart: how much money did trump raise after the indictment? millions obviously? todd: $18.8 million in total. 15.4 of that in the two weeks following the indictment so 18.8 in the first quarter of this year. most of that, 15.4 million of that in the two weeks since the charges were filed. 4 million in the first 24 hours. stuart: so the indictment solidified trump's campaign,

brought in newcomers to his case , and brought him in a lot of money as well. todd: yes, and obviously, it's not done. i mean this is a process that's going to be continuing. let's see how much money he gets it's going to be interesting to see if ron desantis ultimately does enter. if you're putting out commercial s like this all indications are you will. stuart: oh, yeah. todd: we'll see. stuart: how can we walk away now he has been to iowa, the commercials going there. todd: owes going to the key states and putting out commercials but there's a small segment of people who say now may not be his time. stuart: he's 44 years old i do hear that too. thank you, todd. coming up, more on elon musk, of course. he sat down with tucker carlson and he issued this warning about artificial intelligence. here we go again, roll it, please. >> what's happening is that training the ai to lie. it's bad. >> to lie. >> it's exactly right and to withhold information. stuart: that sounds like serious stuff doesn't it? we've got a lot more where that came from. we'll get into it. look at this. a new op-ed. hey, uncle sam, stop paying

people for not working. stephen moore wrote that. you know, i thought we'd stop paying people not to work already. i thought we finished that with the pandemic. apparently not. stephen moore is next. ♪ and i remember kind of thinking like, "oh my gosh, i think we could be sisters." because i think we looked... yes. right. yeah. and i don't think at that time- i think you're the one to tell me that we had the same birthday. yes. it's really unbelievable when you think about it, because it's been, like, really over 20 years that you were my mother and father's banker, you became my banker and now fran is in her third year of college and you're her banker. it's so unbelievable because i'm just 20 years old. [laughing]

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♪ think of what i'm saying, we can work it out ♪ stuart: let's go back to 1960s where "we can work it out" from the beatles. you're looking at the white house because this is an important new development here. the white house just called an early lid for today.

okay, that means no more public events on the president's schedule. now, the president is just returning from a five-day family vacation in europe, and a weekend at his beach house, and he's going to camp david next weekend. no public events on his schedule for today. he's laying low. okay, check futures, oh, we have a mixed market here not much price movement on a monday morning dow is up 30 rest of them down a fraction. president biden, he's trying to take a victory lap on cooling inflation. economists though, they aren't in agreement with this. edward lawrence at the white house. are we going to see more rate hikes from the fed? what do you think? reporter: it looks like it. the markets believe with a 90% certainty we'll see a quarter percent point at the next meeting that will go up. inflation is just not coming down, how the federal reserve would like it to come down, especially when you look at core inflation. that's harder to get rid of. you see core inflation 5.6% year-over-year actually more than overall inflation, but if you ask president joe biden, his

policies have worked for the average american. now republicans say the president needs to get out of his bubble. >> why would he shutdown our pipelines and our drilling and make us go from energy independence and energy dominant really to where he is going to have to go beg for oil, and deplete our supply here for strategic oil reserves. there is so many things about this president that i don't get. i'd hate to think he's intentionally trying to crash our country into the ground. reporter: and the green energy transition that president biden wants to make a little bit more expensive than first thought. 10.2% year-over-year is what the increase in inflation on electricity itself is right now. the treasury secretary janet yellen who said inflation was transitory is now saying we're on the path to a soft landing. >> i think we probably need some easing of stress in the

labor market to get inflation down, but that doesn't mean that we need to see unemployment rise significantly. i believe a strong labor market and bringing down inflation are compatible goals. reporter: but you still have cpi inflation out pacing wages and that means workers pay more just to maintain the standard of living they have now. the federal reserve staff projections, by the way, are saying a mild recession will start later this year. stu? stuart: edward, thank you very much indeed. look at this headline. hey! uncle sam, stop paying people for not working. that's a good one. stephen moore wrote that and he joins me now. all right, stephen. are we still paying people not to work? i thought that ended at the end of the pandemic? >> you better believe it, and this really goes back to the let's turn the clock back to the mid 1990s when president bill clinton, a democrat and newt gingrich, a republican, got

together and they passed that historic welfare reform bill, which the center piece of that, stuart, was to require people to work to get the benefits or to be in a training program or to at least be looking for a job, to be qualified for the benefits , and it worked like a charm, stuart. we saw dramatic reductions in the number of people on welfare. we saw a lot of people moving out of welfare into work, which is something that we would love to see , and the other thing is it saved a lot of money, stuart. it saved billions and billions of dollars. now, here we are in 2023 and the answer to your question is no. they have not restored the work requirements from pre-covid and you're getting record numbers of people collecting these benefits a lot of people, stuart, who haven't worked now think about this , for three years, and they're continuing to get these benefits. stuart: can i change the subject to the stock market for a moment we always talk about the economy and inflation. >> yes.

stuart: it seems to me the market just wants to go up, and that we see a minor recession in the future and that's it. how do you view it? >> so i was fascinated by that discussion you just had with edward lawrence and i thought he covered what's going on very well, but i want to put a little asterisk on that good inflation number that we got for the month of march. have you noticed what happened to commodities prices in just the last couple of weeks, stuart they've spiked up again. did you notice what happened i think it was the "wall street journal" headline on friday or saturday. the gold price is now surging again. what does that tell you, stuart? it tells you that we are not out of the woods on inflation at all i think a lot of this celebration about the reductions in inflation i think are premature. i think you're going to see us stuck in that 5-6% inflation range for many months to come, and stewart, there's a long way from 5-6% inflation to the 2%

target that the fed has set, so that means, you know, you may see , you asked edward lawrence the question, i think that the fed is going to possibly raise rates two more times to get up to 5.5% and that's going to slow a recovery but inflation is not over and the other thing is that's so important. if you look since joe biden came into office, wages are now about 5% below where inflation is. did you know that, stuart? so people have been getting poorer month after month after month. that's not a great picture. stuart: no not at all. stephen thank you very much indeed. i know we'll see you soon. thanks a lot. >> take care. stuart: todd, it is mid-april. todd: what? stuart: we're still spending more, here is the question. it is mid-april, april 17. are we still spending more in restaurants than in grocery stores? todd: completely and the numbers are huge. it makes sense. let me get to the actual facts first.

americans are really doing so moreso and every single day. people spending 20.7% more at restaurants last year. that figure, stu, rose to 29.5% in the first two months of this year so in dollar terms, we are spending about 130 bucks on dining out for every $100 we spend on groceries to start the year. restaurant spending rose 13% in march, compared with the year earlier and you want to know how that's true? because you go to the grocery store. you fill up your bag, and it costs you a gazillion dollars. why not spend a little bit more at a restaurant and have them do all of the cooking and the clean ing and all of that other stuff so you don't have to worry about it? it makes no sense. stuart: and take a doggy bag home and make a meal in american restaurants for two or three meals. this just into it, important. the spacex star ship rocket launch in texas has just been scrubbed. we are told it is a pressure

station issue. the launch scrubbed. okay, check futures, please. we're opening the market in about seven minutes time, pretty flat overall. dow maybe up 20 that's it. the opening bell is next. ♪ the chase ink business premier card is made for people like sam who make...? ...everyday products... ...designed smarter. like a smart coffee grinder - that orders fresh beans for you. oh, genius! for more breakthroughs like that... ...i need a breakthrough card... like ours! with 2.5% cash back on purchases of $5,000 or more... plus unlimited 2% cash back

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stuart: all right, is this a day with very little price change at the opening bell? yeah, i think it is. dow up maybe 16. nasdaq down maybe 15. not much change. keith fitz-gerald is with us. all right, keith. big earnings week this week. why is tesla the most important earnings report that we're going to see. why tesla? >> for me, this is all about the future. this is a car company that has gotten margins, its got pricing power and its got vision. i think it's the only one that can compete in the race to the $30,000 ev that's going to be a game changer with gm, ford, everybody else quaking in their boots right now. stuart: what are you looking for in their earnings report? what do you want to see? >> i want to see margin impact,

because they had a little bit lower expected deliveries inq 1 but that's still plus 36% over last year, if there's any indication they can continue to sell-through, they've got expansion plans, battery production, those are all things that are going to be in intangibles and i want to see more than the numbers themselves. stuart: okay i'm interested in apple and i know you are too. do you really think that apple opening stores in india is going to make that big a difference to the stock? >> yes, i do, stewart and here is why. they are about 4% of the market share right now. they've got google/alphabet on the run. sales just jumped 50% to $6 billion or so. i think that it's a game changer it's so important that i understand tim cook is going to be there personally, so this could reset one of the largest markets in the world it's also an exit from china, so it makes the stock freer, if that makes sense. stuart: if it's successful, where do you see apple going? >> well i tell you what. the markets are obviously got a lot of headwinds that are at a

macro level but i want to see $200 a share. i think it's going to get there as soon as the fed gets out of the way that stock is going like a rocket. stuart: generally speaking you think the market wants to go up? >> i do. the path of least resistance is higher because the narrative that you and i began speaking about long-before everybody else did last january, that the fed would have a mid-year pivot. it's gaining. this idea that inflation may be moderating, however right or wrong, the numbers seem to bear that out so the traders cannot be caught off sides. they have got to begin to win just like you and i do. stuart: yeah, okay you've got it keith thank you very much indeed for joining us. see you soon. >> thanks stuart. stuart: they are clapping and cheering. here we go at some point they press that button you see a guy lean forward. we did that once when we opened the market. >> [opening bell ringing] stuart: so they moment there you go press the button for god's sake let's get on with it. the dow industrials ever so slightly higher not very much higher, but 30 points to the upside. well look at that. you've got about 20 of the dow

30, i'm trying to do the math here. >> i can see that. stuart: i'm struggling, susan. don't laugh. about 20 of the dow 30 are on the upside about dow is open with a gain of nearly 40 points not that big of a deal. s&p 500 is down a fraction. the nasdaq composite, i think, is also down a fraction. that's because you've got higher interest rates this morning, nasdaq doesn't respond well to that. big tech mixed picture, microsoft is sharply higher i'd say up 1.3%, amazon higher but apple, meta, alphabet are down. susan is with us and she's been looking at some of the bank reports earlier this morning, including charles schwab. >> wow so look at state street. i'll get to that in just a bit but charles schwab is the biggest bunch in a mixed report card, mostly down, so charles schwab saw a drop of 30% in their deposits after the silicon valley bank collapse and that's why it's now pausing on buying back shares in order to preserve cash. never a good sign, but here is

the good part of the report card is that customers are actually putting in investment dollars so they are pulling out deposits putting in investment dollars into charles schwab, $132 billion in new assets in the first three months of this year, $52 billion alone in march, profit beat sales missed. stuart: that sounds promising and i notice schwab is down nowhere near as much as state street, but they are really weighted 15% right? >> yeah, so member charles schwab is down 38% on the year, state street this was a terrible report card so they missed on sales and profit, management fees are down but good news is they do expect a recovery of sorts in sales in the spring time. stuart: banks weak but the crisis is winding down can you say that? >> yeah let's take a look at the smaller regional banks because this is telling of what to expect from the first republic and more from the regional lenders so m &t did better thanks to higher interest rates and that's across-the-board with jpmorgan that we saw on friday. interest income doubling at m &t bank and we'll get more report cards next week as well.

or this week. stuart: i'm really interested in google's chief executive sitting down on "60 minutes" last night to discuss ai. >> loved it. stuart: how was the performance affecting the stock this morning >> it was a fantastic piece, 30 minutes long on "60 minutes" but i'd say the stock, alphabet today is reacting more to the new york times report that said samsung, which you know is the world's largest seller of smartphones, even bigger than apple globally, samsung is considering kicking out google to be replaced with microsoft bi ng, because of the new chatgpt integration that's why microsoft is rallying , google is down and selling off. that samsung deal with google worth around $3 billion a year in advertising revenue, so it's much less than the $20 billion apple google deal, but still, i would say 3 billion is pretty significant and also, it's a threat, a real threat to google 's future business and revenue model since we know the search accounts for a lot of it. fascinating "60 minutes" piece last night. they are slow in the rollout of

their ai and bar to make sure it is safe and secure. also what i thought fascinating was that ai had hallucinations, so the ai can just imagine and makeup stuff like fake book and summaries which i thought was fascinating. also robot soccer was pretty amazing. stuart: it was extraordinary. >> the little robots kicking the ball and they all knew from ai. also roblox, this is your metaverse play by the way is a big decliner today because this is the kids video game maker reporting a huge increase in daily active users to over 66 million but the problem is that their bookings per daily active user actually went down in march by 2% so when anything goes down it's always a negative pattern. stuart: to 11% is a big one. we've got a huge deal this morning drugmakers going to buy, merck, trying to buy promet hius biosciences. what does merck get out of this deal? >> well a $10 billion deal, 75% premium and that's why promethius is trading close to 70% up but what merck gets is

their best selling cancer drug, keytruda, you've seen commercial s, it's accounting for $21 billion of merck's annual sales. its best selling drug, but it's going off-patent by the end of this decade so merck needs another cancer therapeutic to replace that $21 billion in annual sales of keytruda. also merck is teaming up with moderna, optimistic results from their skin cancer vaccine and that's why the stock is trading, well was trading higher in the pre-market but do you want to talk about other deals? stuart: give me more deals. >> so sega is buying angry bird s maker rovio, almost an $800 million deal and super mario, mario brothers the movie best opening ever for an animation movie last weekend. almost 90 million again at the box office. this tells you the gaming rights are popular and worth a premium these days. stuart: we've got to pack a lot of stuff into this. how about tesla and netflix. they report this week. what are you watching for? >> tesla, i would say its

automotive margins after we know they had a record first quarter of deliveries so 422000 cars but remember that musk is cutting prices in order to drive demand so the thats never a good sign for profit per cars sold so the community says quality of profits and cash burn will be interesting given we have this build up in austin and berlin. netflix is also reporting this week as well. subscriber growth will be cloudy like we don't know, because they stopped giving us forecasts for subscriber growth starting this year, so we know that they beat 7.6 million to end last year and the advertising tier and possibly the password sharing updates will be key. last glitch did you see that " love is blind" episode? it didn't happen so now they tape it and broadcast it but this is bad when netflix says we want to do more live programming not a good sign. also reporting, i just want to note we do have big banks like goldman sachs and bank of america and given that jpmorgan

said that trading didn't fall off a cliff from friday, i think that bodes well for goldman sachs and the report card this week. bank of america also like others will do well when it comes to higher interest rates and apple, india, tim cook is in india to meet nurender modi, the indian prime minister to open those two stores. stuart: big deal. thank you, susan see you later. coming up it has been over 150 days since president biden held a formal press conference, and when he does, reporters complain he doesn't answer the questions. watch this. >> what do you know right now about why this happened and can you assure americans there won't be a ripple effect? >> should all depositors -- >> mr. president? mr. president? mr. president? why are you taking so long? mr. president? stuart: [laughter] they tried, but that's a no answer. joe concha says press conferences are now extinct as biden lets tiktokers do "the talking." he will be here. elon musk started a new artificial intelligence company, after he said there should be a pause on ai development.

in my opinion, no guardrails and i wonder if robert herjevek agrees and he's walking toward me in the studio. he knows all this stuff and he's next. ♪ ♪

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stuart: the democrats and the biden administration are looking for ways to regulate artificial intelligence. the tech industry is sounding the alarm. grady trimble is with us. all right, grady, why is the tech industry worried about regulation? reporter: well they are worried about a specific proposal from the commerce department that would allow audits, stu, of ai systems, to determine whether they promote disinformation, misinformation, or other misleading content. >> our initiative will help

build an echosystem of ai audits , assessments and the tools that will help assure businesses and the public that ai systems can be trusted, and this will be to the broader work on ai. reporter: a lot of conservatives agree artificial intelligence needs regulatory guardrails, but they aren't too fond of the idea of the government deciding what constitutes misinformation. here on the hill, senate majority leader chuck schumer has announced democrats efforts to establish ai regulations. european union lawmakers are also working on rules to govern ai. the goal of all of these regulations, of course, is to still allow companies to develop the technology so we don't fall behind other countries. >> whoever has the best ai is going to have the strongest economy, which means that they are going to have the best military. this goes across-the-board and obviously, we cannot allow china to do that. reporter: and elon musk, who has

also sounded the alarm about ai technology in general, says he's starting his own artificial intelligence company. he tells tucker carlson it'll be called "truthgpt" stu and the goal is to avoid annihilat ing humans. stuart: sounds like a worthy goal does it not? thank you, grady. more, i want you to listen to a bit more of elon musk speaking to tucker carlson. watch this again. >> what's happening is that training the ai to lie, it's bad >> yes, to lie, exactly right, and to withhold information. >> to lie and yes, but not to say what the data actually demands that it say. >> how did it get this way? you funded it at the beginning. what happened? >> yeah, that'll be ironic, but the most ironic outcome is most likely it seems. >> [laughter] stuart: [laughter] yeah, ironic indeed.

robert herjavec is with us. let me just express my opinion. seems like we're on a race in ai , no guardrails and we aren't getting any kind of a pause on ai development. it's a free for all. we're off to the races. what do you say? >> well general computing is always a race. i mean, let's not kid ourselves, general computing, cybersecurity , whether you call it ai, deep learning, machine learning, there's a race for information in the world. the world is about data and so really, the question for ai is more about the control of data, who can compute it faster, would can make intelligence out of it so there are no guardrails as crazy as this sounds i do believe the challenge is that government has to step in and be able to validate reality from lies, and i think that's the general problem today, because the vendors aren't going to do it. stuart: how do you do that? reality and lies. how do you separate the two? because a lie to one person is the truth to another.

>> it's true, but i'm a little different this way. i do believe that there is a place for government, and so i look at my industry, cybersecurity, and i look at the privacy regulations as an example. years ago, we said no ones ever going to be able to control data consumers, privacy, all those kind of things, but now, we have some pretty good lies, g dpr in the uk, there's a federal privacy law coming into the united states. that is the good of government, so i don't have an answer, but i do think that there's an opportunity for government to start validating what's being put out there. stuart: if you're in the cybersecurity business i could see how ai could be very dangerous dealing with getting into somebody else's computer. ai can help you, can't it? >> well everything we do, someone is doing against, so we use a lot of ai and automation and deep learning to do cybersecurity. i'll give you an amazing stat.

86% of all of the threats that the come in for our customers, we now completely automate, which is incredible. stuart: why automate? >> we have deep learning, machine learning, all kinds of tool sets that can tell whether it's a real threat or not a real threat. i mean, that's the core business , but as i say that, think about what i just said. 86% is fully automated that means the hackers are probably at 95% of fully autonomous systems to attack other companies. stuart: if there's no pause, and if there's no government regulation, are we in deep, deep trouble? >> well, you said two great things. i don't think there should be a pause. i'm a big believer inlet technology grow at the rate of technology. i don't believe that this is where government should come in and stop growth, but i think we could be creating some regulation along the way, but we've got to go. the world is coming after us. the world is not sitting still, and the one thing about america is we are an incredibly

entrepreneurial social security. we've got to keep growing it. stuart: have you got time to tell us where you're putting your money these days in the stock market? >> i do. i think that there's a lot of goodness happening right now in tech. i know tech is being beaten down , but look at all of the layoffs and efficiency. i think you'll see earnings report inq 2 from some of the big tech companies that are going to be really bullish and i think i see a big turnaround on that. stuart: any particular big tech stock that is going to be particularly bullish? anything in mind? >> i like a company called splu nk. i like google, believe it or not google is a very big security player so i think you'll see security is a big part of their revenue later this year. i like palo alto. stuart: everybody likes palo alto networks. >> really? stuart: yes, robert i'm terribly sorry i'm out of time. you know what you're talking about. coming up, there is a proposal in california to charge for electricity according to income. the more you make the more you pay. that's going to be my take at

the top of the 10:00 hour. i don't like it. house republicans are holding a field hearing in new york city today. they are looking at rising crime under manhattan da alvin bragg's policies and talking to a mother whose son was stabbed to death in harlem. two attackers struck a plea deal with bragg. one was let off on time served. report on that is next. ♪ your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do.

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stuart: it's happening right now , the judiciary committee is holding a field hearing in new york. new york city and it's today.

they're looking at how crime has risen under the soft on crime policies of district attorney alvin bragg. madison alworth is with us. are any democrats participating in this hearing? reporter: good morning, stuart. yes, we have ranking member jaro d nadler. the second to speak behind jim jordan and we also have one of the people testifying as a democrat from new york council man democrat robert hold en, he's one testifying but he actually is also here to speak out against bragg's policies and to talk about this soft on crime approach. when you look at the other people testifying today they have all had direct links, been personally involved in this ris ing crime, in new york, whether it's from themselves, from loved ones, family members. we're hearing from those individuals right now, this hearing started at 9:00 a.m. and they went through all of their victim testimonies for five minutes each. this is the first of multiple hearings that are planned. jim jordan said that he chose new york as the first of multiple hearings because this

is a city "that has lost its way." >> for the district attorney justice isn't blind. it's about looking for opportunities to advance a political agenda, a radical political agenda. imagine that. you leave criminals on the street. you get more crime. reporter: now, like i said, following him was ranking member nadler. he said, "we are here for one reason only, doing the bidding of donald trump" but victims have really been in insisting this is not possibilities about justice and preventing others from winding up in the same situation they found themselves in. we heard from one individual in particular the mother of a homicide victim, her son son in afghanistan veteran was murdered and she's very vocal about the sentence dealt out to those involved in the homicide. she's frustrated and doesn't want any other mothers to be in the same situation. you've got to look at the number s and you can see that crime is in fact up. looking at the last two years

from 2021 which is prior to bragg taking office, to today, robbery is up over 43%, felony assaults up 30% and grand larceny up over 53%. now this hearing is being broadcast on youtube so anyone can see it. within the meeting itself it's just press, political reps and also victims. there's been some outside the actual meeting hall itself and the building with people protesting but so far the hear ing itself has been very civil and those victims just want to have their voices heard. stuart? stuart: madison, we hear you thank you very much indeed. todd, thank you very much for staying with us for the hour we do appreciate that. todd: thank you. stuart: still ahead on this programmed to, kt mcfarland , dr. marc siegel, pete hegseth, and john rich. the 10:00 hour of "varney" is next. ♪

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