tv Varney Company FOX Business May 10, 2023 9:00am-10:00am EDT
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john: corporate skufdz scared banking sector scared they have got everybody scared if you keep raising interest rates like you are going to have another 1980, 1981 all over again then that is when we really have a problem, and the foreign governments are outsmarting washington right now. >> i know looking at stock markets you got to make a note that two years under 410-year is under 3 1/2, but, you know, bond market a great indicator what we can couple going forward. >> great panel. >> thank you great program this morning, we will have ppi for you all-hands-on-deck tomorrow morning join us tomorrow 6 to 9 a.m. earning for "mornings with maria" have a here is the inflation headline. it's down slightly. the last 12 months prices of the consumer level, 4.9%, it was 5%
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even in march. so down very slightly. is the market reaction, investors love it. the dow of 150 points game but in particular nasdaq up maybe 120 at the opening bell. that is because interest rates moved down on the cpi, consumer price index news. the ten year yield dropped firmly below three and a half% level. 346. the two-year well below 4%. we are up to 396 right now. overall got a response to the inflation numbers except on the stock market which seemed to bring very well. politics, a bombshell has been dropped. the house oversight committee reveals an extensive influence peddling scheme involving numerous biden family members and millions of dollars. committee chair james, heads bank records showing a web of
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illicit doing. it's an indictment of the media, it deliberately covered of the story to protect biden's presidential run. another crisis coming, title 42 ends in a matter of hours and tens of thousands of migrants are about to walk across the border. the president says it will be chaotic for a while. another one, the president blames congress for the budget impasse, no progress from the big white house meeting. i'm going to editorialize the president's response to these crises is not good enough. on a lighter note, buddy holly one owners of the west berkshire, pb gv, a petite basset griffin -- named after the late great singer buddy holly. wednesday may 10, 2023. varney and co. is about to begin. ♪
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♪ stuart: nice association producers, well done. buddy holly's name of the song, weezer is the guy singing it the great buddy holly, the rock singer killed in an air crush in iowa i believe many years ago and the dog show champ was named the holly. now you know. it is a good stuff, consumer prices of 4.9% last 12 months. lowest inflation we've seen in two years. breakdown. >> the flipside is we've had a year of interest rates increases and still dealing with inflation. the problem court inflation takes out food, it takes energy suggesting shelter and services, the prices or up five and half% year-over-year. what cost more april compared to
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march? gasoline up 3%, rent, huge cars, prices rebounding and what cost us last? airfare. that was very exciting for me. stuart: down 2.6%, we've got that. you'd inflation, can we say that? who's here now, eddie joins me. we still have not seen you smiling, we still not seeing the selloff you've been forecasting. you said you're going to drop sharply this summer, 4000 on the s&p, doctor 3000. is that still your prediction? >> our production hasn't changed. it's been a flat market for three months, up and down at the end of the day, it's about flat. it probably frustrates some of the bears and the bulls because we haven't seen that breakout. we do strongly believe we will see new lows in the s&p by summertime. stuart: i'm sorry, i can't interrupt you -- what you're
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talking about is a gigantic drop in the stock market that amounts to a crash hugo 4000 on the s&p the 3000 and matter of -- it comes this summer. that's a crash. >> a new low is under 3543. i still think we'll get to that 303,200 mark, as luck would go straight down here to 3000 but by summer i think it will reach new lows we saw in october. stuart: the market doesn't believe you. >> i will disagree a little bit but you are saying the data agrees with us. you have 2000 companies, domestic companies. how they performed. they are performing as data says it should perform. the overall market is held up by about ten companies. if you take the mega names out
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there that have done a nice job with their earnings, i give them credit, they are great companies. if you take them out of the market, it's a different pic picture. stuart: i'm sorry but almost anybody who's got money in the market, mutual fund or by individual shares, almost everybody has a piece of big tech action. they've done well. >> if they are in this year they've done well but at the end of the day i'm going to be judged by my client on when we got out which we started getting out december of 2001 and we get back in -- sorry 2021 and when we get back in. nasdaq 20% down from that level and i will hold myself accountable. if i'm wrong i will come on the show and admit i was wrong and i'll give a reason why we missed we were wrong and that it continues to support.
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stuart: i'm just not into that kind of thing but i want to know, i know you've been buying gold so tell me what your portfolio looks like, is it 80, 90% cash in treasuries and five, ten, 15% gold? >> we are down to 55% cash getting paid nicely to wait and be patient and 35% in treasuries and treasuries are having a great day today because of the inflation data. only 3% position cool, we put this on last week with a nice selloff. we're going to look to add and probably take from treasuries to add to go because this debate i think will come down to the 11th hour and you see a flight to safety and i think gold will be a better place to be in the near term because you could see fixed income market right now. we have about 7% in that portfolio. stuart: we will see you again very soon. appreciate it. went to get back to what i call
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the crisis to sure, there are several. president biden met with lawmakers to discuss the debt ceiling. nothing came out of the meeting. what happens now? >> they agreed on one thing. stuart: which is? >> to keep talking. they will meet daily in the president's effect on of the top four leaders friday. we heard different views yesterday went. the speakers mccarthy, no progress. biden says yesterday was productive third. >> i thought a productive meeting with the congressional leadership the path forward to make sure america is not default. if i'm being clear, default is not an option. repeated that time and again. america is not a deadbeat nation. we pay our bills and avoid default, a basic duty of the united states congress. we agreed to continue discussions and we are going to meet again friday. >> no signs of a breakthrough,
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the timeline type. not only do they have to find an agreement, factored draft the text of a bill and move legislation by june 1. stuart: i think i and our viewers and many people -- how many times have we been through this? always the same. i don't want to stay here and report incremental moves on a daily basis. >> and we scare everybody in the process of social security payments. stuart: the house yogi committee is about to hold conference in the investigation of the biden family. we know the basic findings are ready, 20 companies were set up to receive money from foreign nationals and companies. millions involved, tangled web designed to cover up and influence peddling scheme and deceive the irs. biden family was right in the middle of it. lisa booth joins me now. during this investigation, he's
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got bank records and the bank records don't lie. what now? >> i hope he can lay it out in a simplified manner for the american people to understand, some of the challenges is it is comforted so you can you layout a manner that has an impact? i karen you care but does it move the rest of the america? we've known this has existed, joe biden is on camera literally bragging about getting the prosecutor general fired he was investigating burisma holdings. we know e-mails are true from hunter biden's laptop so we've zero known this is existed, is a bombshell or not in the manner in which he plays about? stuart: the media is not exactly on trial but the media covered this story up, deliberately carpeted up because it was about to break right before the 2020
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election. they now have to cover -- or don't they? they have to cover it, don't they? >> i don't think so because previously a lot of this bias was sort of undercover, we ha have -- a lot of corruption was undercover. now it's in our face. joe biden, everyone is coming our -- their noses. i don't know if the media feels obligation to cover this because armenia corrupt, propaganda, state run media and we saw this heading into the 2020 election and allowed biden to hide in his basement and did not try to get him on any issue and they ran cover for him trying to tell us there was nothing to see there with joe biden bragging on camera about getting the prosecutor general fired who was investigating burisma holdings so i'm sorry but i have no faith in the media, no faith in our government to be honest. to some degree, we've sort of
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been accustomed to corruption in washington d.c. so we got eric swalwell who had a relationship with the chinese spies and diane feinstein. stuart: being exasperated, confessed to be exasperated. if you got bank records and private is president lying about his connection with china and money, if that's not good enough to move the needle, i don't know what is. i'm sorry i'm out of time. thanks a lot, see you later. >> no worries, take care. stuart: the audience does, too. there's futures for you. i see a lot of green because inflation rate is slowing slightly. coming up, the guards not happy with 2024 presidential choices. roll tape. >> it's a shame america don't have any other options because we are in a two-party system. we just stuck with what we got. that's a shame. stuart: he's dancing around a
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third party. would a third party work? if there was a third party, whose the candidate? question. title 42 and tomorrow, the white house believes they have a process to deal with the expected migrant search. the president images the search will be chaotic. texas department of public safety lieutenant chris will join me after this. ♪ ♪
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at 1-800-217-3217. we'll send you our exclusive bond guide, free. with details about how bonds can be an important part of your portfolio. hennion & walsh has specialized in fixed income and growth solutions for 30 years, and offers high-quality municipal bonds from across the country. they provide the potential for regular income... are federally tax-free... and have historically low risk. call today to request your free bond guide. 1-800-217-3217. that's 1-800-217-3217. title 42 expires at midnight tonight, tens of thousands, if not hundreds of thousands of migrant on the other side of the border waiting to walk across. carolyn is in texas on the side
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of the border. is he getting tense down there? it ought to be. >> definitely getting crowded. take a look around, folks here 800 to 1000 migrants was able to find a place in a shelter so they've taken right cross, plagues, tarps and turn them into tents outside the catholic church. the numbers are down from yesterday things to stepped up enforcement by agents. migrants are waiting for tomorrow night when title 42 expires. title 42 is the covid policy put in place in 2020 allowing for or officials to expel migrants without processing their seven names. 2.7 million migrants have been turned away under that program. when it expires, policy with respect to title eight requiring screening for asylum. it's caused massive search to the border. >> close to an hour with the mexican president today. we are doing all we can.
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>> texas congressman tony gonzales says the president of guatemala told him he knows 80000 mostly venezuelan now making their way to the border and the white house nobody would take his call. white house is completely unprepared for what's coming. >> secretary mayorkas that they've been expecting this well over a year get the biden administration has not done anything, especially when it comes to policy. it's not about the money being thrown at the problem, it's about policy. >> down the street if you have $90, you can get a bus ticket and get to denver, albuquerque, l.a., several cities throughout the u.s. stuart: thank you very much indeed. how's the white house dealing with this border situation? here is kt p in the president. roll tape. >> i believe we have a robust process to deal with what's going to occur after title 42
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lives. >> we are doing all we can. the answer is it remains to be seen. it's going to be chaotic for a while. stuart: lieutenant chris of the texas department of public safety joins me now. texas task force sent to the border, are they going to people out or help them come in more efficiently? >> good morning, i think there's confusion u.s. troops being deployed by the federal government and what texas governor greg abbott has done deploying specialized tactical unit comprised of national guard soldiers. the soldiers will be used to secure the border and repel any type of mass migration between ports of entry. stuart: hold on a second, if that texas task force is used to repel people coming in, there's going to be clashes. that's going to happen. >> of course but these specialized soldiers are trained and crowd management to repel mass migration or large crowds
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so they have specialized training. we compare between u.s. soldiers, they will be used for administrative duties so that's where the confusion is, it will be used in the border to help secure the border like the u.s. soldiers are used for. stuart: i'm not confused, i just want to know said the president is on. is he on the side of the people repelling people, migrants or is he on the side of those welcoming them in making it efficient? side is he on? >> we know the federal government is on the side of allowing what we are seeing with mass migration for past two years and even right now more so, they've had two years to put a plan in place. all they are doing is allowing mass aggression to take place in they didn't want to create a large amount of amnesty for illegal immigrants which will not stop the flow. stuart: i'm using the word invasion to describe what's happening.
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in my going too far? >> you are correct. the governor abbott said this in invasion, we know. there's no way around it. the videos fox have been sho showing, clearly it is an invasion, no other way to describe it in one thing, it's not just large groups coming, we have to keep in mind got a ways, people trying to sneak in, that's what we have been doing with state troopers and border patrol, we are focused on apprehending those who don't want to be caught because within those groups you have terrorists, gang members and drugs and we still have a fentanyl crisis we are dealing with yet right now we need to focus on that as opposed to just asylum-seekers coming in. stuart: thanks for joining us, appreciate it and the work you're doing. texas has begun buzzing migrants to century city is again but there's no room at the end.
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>> migrants are spilling over to police stations and schools, wherever they can fit them literally. new york city has 61000 migrants looking for shelter. eric adams set up 122 emergency shelters looking for space at jfk at a hanker and upstate at a cost of $4.3 billion over two years. chicago has added 2000 beds in homeless shelters, not enough. 5 million have come in hunter biden and look at the map, this is all a minute. hundreds of thousands are getting ready to come. 80000 mostly venezuelans are waiting in guatemala, 60000 -- 35000 -- this is to quote biden, going to be chaotic for a while and democrats are now speaking out and slamming biden because they are looking for help and they are not getting it. stuart: the president of guatemala has 80000 guatemalans
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waiting to come to america. he called the white house to see what he should do and nobody took his call. they would not take his call. >> the president did speak to the president of mexico yesterday. stuart: chat futures, i see green moderating inflation ever so slightly, that will 150. nasdaq up 100 points. opening bell is next and we will take you there. ♪
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green on the screen right now, especially nasa, that's going to be up close to 1%, .81%, interest rates down a bit in the top in the nasdaq. green on the screen. dennis on with us, you seen the news. inflation up 4.9%, down lightly from 5% level. why are you buying gold? >> geopolitical circumstances more than anything. if you look at the chart of the
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s&p, the dow or nasdaq and put gold up against it and walked 20 feet, you can't tell the difference between the two, they all the same gold going from the lower left to the upper right on inflation, i think it will continue but basically the geopolitical circumstances that prevail, concerns with china and problematic over the next several years. problem here in the united states domestically mahood going to be the president coming up, what kind of congress we will have sochi or political circumstances are dominating my decision to buy gold and honestly the course of the past several years, it's going lower left to upper right and every time you paid it, you're wrong. you keep buying. stuart: as i understand it, your portfolio, it's largely cash in treasuries, like 80 or 90% cash in treasuries, is accurate?
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>> no, that's my portfolio at the university, we are still predominantly equity involved but large position we moved into two years ago moved out of the three or 4% in equities. stuart: we've had a lot of people on the show saying is a huge drop coming in the immediate future. are you in that camp? >> i think it's a fair market. with not have a new high for quite some period of time. you're up for the course of the year which is beneficial to the people along but if you look at the chart of s&p and dow and nasa, it's an two years since we made a new high and every time rally, this lesser volume, fall or on lesser volume. i think we're heading into recession, not a severe one, not like 2008 and nine but i think we will have a reasonably historically precedented recession, the fed is not going to use much for long. at least into 24.
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stuart: all right, he's major points and made it will. thanks for joining us, the dow has not opened. markets open and look at that. virtually all of the dow 30 on the upside from the get go. we've got inflation falling below 5%. the market apparently likes it, the dow up 153 points as we speak and it's close to half percentage. s&p up two thirds. show me the nasdaq, solid gain of nearly .90%, up 100 points. let's look at big tech, all doing well. big tech likes lowering interest rates so we got the tenure and the two-year and yields going down and big tech going up. let's turn to airbnb, first ever profitable border.
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susan, why are they down 2%? >> most profitable quarter, highest sales quarter ever in the company's history. problem average daily rates. not only guiding for daily rate to go down slightly this spring time but it weighed in the first quarter because airbnb is targeting cost-conscious travelers trying to make cheaper listing prominent on the site. guess tonight booked slightly below forecast the airbnb is buying back to data billion in stock, they made more money reinvesting their own cash with higher interest rates and keep in mind, you are up 50% in five months so lucrative give back, no problem. stuart: was get updated on electric vehicles specifically really and up 9% this morning. >> i guess sticking to your previous guidance is a good thing in these markets because it's kind of what they did, i didn't think it was that exciting but they say they will stick to the 50000 car production targets unlike compared to yesterday i told you about lucid which hedged expectations only producing
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10000. they will make 36000 less than previous estimates as well but really and a lot of money, one and a third billing in three months to start this year, cash burn is a big problem just like lucid and they only have limited amount of time left before cash runs out or raise any. they been putting around 900 jobs this year but look at tesla backup, tesla 40% this year. stuart: software maker. >> compare 50000 production targets, you know how many cars tesla will make 1.8 million so kind of far ahead. stuart: i got this, i know it's a software maker. >> i bet you probably used it if you have service problems with her netflix or uber if you've ever ordered uber up but they had to start the year, it was weak so as a clouds communication company but it
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makes a call on the app if you can't find your car but they are losing money at quarter billion dollar rate to start this year increasing by 1000 which is great and they're trying to cut 1500 jobs and so far this year going back about a billion dollars in stock. stuart: names generally that reported this morning before the bell, i'll start with wendy's. looks like you doing well. >> higher sales and profits. with these restaurant chains, it's all about comp sales and foot traffic and went up by 8%. great but not as great as mcdonald's and to fully we saw huge double digit gains. the new ai chat but starting next month rolling out across country. stuart: a tdp or something. >> cheeseburger bacon. stuart: don't pull a place like that with the cheeseburger. warren buffett big company.
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>> too early to think about cheeseburgers for me. best performer on the s&p 500, warren buffett's oil company but dropped to 40% and earnings because they are selling cheaper oil. 6220% cheaper than last year but they are buying back 6% of preferred shares. a quarter of occidental that went up one 100% last year. stuart: roadblocks, video games for kids. >> a great stock. kids game maker, i think it's the original meta first. losses to start the year, bookings were flat and used to stock dropped initially on the earnings report card. however, you cannot argue 66 million daily active users and active users engagement went up by almost a quarter her master. 80% of their users are 20 years and younger so as to keep pipeline for these users. stuart: i see on my prompter
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electronic arts, strong earnings for soccer, federation -- >> association. football. stuart: whatever. >> a gaming story but a great franchise. i haven't played up at the ea game, you got me. stuart: fifa. >> the game did very well to drive better than expected, electronic arts. stuart: quickly, disney after the bell reports, what are you looking at? >> obviously streaming always important but streaming profit not just growth at any cost is going to be important so they lost 2.4 million, this year we are looking for an add-on and it will be interesting to see espn. there's talk they might be suspended out and glue. there is a deadline for the they want to buy the whole thing what
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are the go to comcast because it's a partnership, disney ownership, does comcast want to buy hulu? will be interesting to see cost-cutting since they are laying off 70002 save 5 billion plus. stuart: i wonder if there will be question about the desantis fight. >> gaming tougher and legal fees. stuart: check the big board. the dow up 168, exactly half percentage points. thirty stocks on the dow, these are the biggest winners. apple down. >> interesting. yields went down before 8:00 a.m., numbers crossed, red in the stock futures. stuart: i know that one -- i used to wear -- they are on the list. nasdaq composite headed like
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daytime dog. >> like cloud data company. stuart: interesting bunch of companies right there. >> tech heavy. stuart: the governor of florida ron desantis said he would decide his words relatively soon whether to launch a bid for the white house. the pro desantis super back, never back down. i will ask him what he supporting the governor and not trump. that's in our 10:00 hour. senator joe manchin says biden meeting with the big four was ridiculous. roll tape. >> to have five of the political leaders for our country and not one of them say we made pro progress. stuart: we would just had this come at us, inc. biden nominees over the upcoming powerplant crackdown. more on that, stay with us, please. ♪
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markets, i see the dow has turned around. literally a few minutes ago we were up by over 100 points, now down 34. figure out what happened if we can. nasdaq holding onto monies king, 75 points to the upside. the nasdaq is on pace to close the highest levels since the 25th last year. president biden that talks yesterday, they will meet again friday. capitol hill. biden says the meeting was productive, mccarthy says nothing changed so where do the talks really stand? >> i guess productive and progress mean two different things. the two sides are at an impasse digging in on respective positions but we do know talks
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will continue later this week. president biden described the meeting as measured and low key but it sounds like got testy at times. one key area of disagreement, president biden accused speaker mccarthy of proposing cuts to veterans healthcare while at the same time the president claims he doesn't know what the speaker wants to cut. >> it doesn't say, just generically is going to cut? get the problem. >> where does it say we cut that? came back to the president and said do you not believe there's any money being spent in government? i said if you're saying you're cutting, it's a lie. >> at least one member of the president's own party is not pleased with the outcome of the meeting. >> to have five political leaders for our country all caps on meeting and not one say they
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made progress and now thinking were suspect something friday, that isn't going to so it's ridiculous. >> what senator manchin was alluding to, the president says staffers from the white house and speaker's office will meet every day until a deal is reached and the big four and president will meet once again friday. we will see if any progress comes out of the. stuart: only time will tell. thank you very much. let me repeat inflation news, the last year consumer prices of 4.9%. they were up 5% in the month before the. economists john joins me now. inflation is down 4.9%. how low does ago and when we get to that low? >> eventually we are going to approach 2% but only going to
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get to 2% with the help of a recession, a deep drop by spending prompts, price discounting and dramatic slowing of wage. it's going to be painful to get there so i warn people on the equity side. stuart: is that what the federal reserve will push into quite deliberately, a recession? >> they know it down the pike. the federal reserve knows the current fed rate above 5%, more than doubles long-term target of 2.5% so the fed would have to be lying to people if they told people they are not risking a recession in order to get rid of rapid price inflation. stuart: you're also issuing for the stock market. >> when i look at the data historically the equity market does not bottom until fed rate cuts are well underway unless we
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have a recession. a ways away but the market is looking for first date cut come september 20 and they think will have fed funds rate no greater than 4.4% by the end of this year from just over 5% but it will require economic pay. i want to add one more, long-term on inflation, what worries me is current direction of regulatory policy and fiscal policy especially all of these subsidies for electrification. it has me concerned we will become so accustomed to government goal, and corporations or individuals or workers it becomes difficult to keep inflation close to 2% over time. stuart: think the fed is going to push us into recession, how deep a recession? how bad, how long? >> i will be an optimist and say a mild recession no longer than
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maybe two or three quarters duration will be felt long and severity will be that great, still unemployment rate at 3.4% probably will peak at about 4.7%. some people are going to get hurt. stuart: thank you very much for telling us the way you see it, we like that. worries about money taking a toll. lawrence with us, how many people say it's affecting the mental health? an interesting expression. >> what keeps you up at night? what gives you anxiety? it comes out of the mental health, 52% say money, it's up ten points from think rates one year ago so what exactly about money makes you worried? high price of everything, struggling to get by not having emergency fund, not being able to put your kids to college and whose worried the most?
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gen x, the sandwich generation because you've got kids you're raising trying to build their future and your parents you're taking care of. stuart: one expert says a i will make 80% of jobs obsolete. who's saying this? >> he helped popularize the term artificial general intelligence but he sees it as a positive because he says can find something better to do with your life and work overtime. that's great, do you know what comes with a i? ubi, universal basic income because it's working, you got to help them enjoy life with financial means ubi is the next thing we are talking about. he says the next few years and that's a quote. >> i'm shaking my head at this, i don't know of any type of computer program that can decently predict what will be happening to the economy, insurance rates and what also artificial intelligence has a long way to go.
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stuart: it will not put you out of a job. >> we've developed cars that don't crash anymore or airp airplanes. >> that's what they say. >> we are building god, ai that will be done. >> i don't want to get cut off. coming up, governor of texas governor launched border task force. what are they going to do? key people out for the people in? troy is here. today marks president biden's first real campaign activity since announcing his reelection bid. he's coming to new york for big money grab. more on that. stay with us. ♪
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at 1-800-217-3217. we'll send you our exclusive bond guide, free. with details about how bonds can be an important part of your portfolio. hennion & walsh has specialized in fixed income and growth solutions for 30 years, and offers high-quality municipal bonds from across the country. they provide the potential for regular income... are federally tax-free... and have historically low risk. call today to request your free bond guide. 1-800-217-3217. that's 1-800-217-3217. president biden in new york city today, his first real campaign event since announcing his run two weeks ago. peter doocy is with us. i guess he's not coming here to visit the migrant hotels.
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i think it's coming from the money. go to wall street, right? >> for the money but 15 days since announcing his reelection, zero actual campaign rallies and this morning we look at the campaign website, joe biden.com, there's no platform on there, nothing about the biden harris plan for a second term. you can see together we can finish the job for the american people. the biden team instead, talking about themselves they'd rather talk about republicans. >> they showed their value by showing veterans programs cutting school programs, cutting healthcare, 22%, that's what they value, something they have to answer to the america people. >> president biden protect himself from a primary challenge five bypassing iowa and new hampshire carolina this year end democrats warning he needs to go new hampshire. congressman telling fox news digital before electoral votes new hampshire are going to matter and we should be active in the primary battleground
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states, a mistake to allow trump and desantis to suck up the oxygen and make our case in battleground states about the president's reelection. the case for reelection with the president seeing things, it gets distorted by bad coverage. >> i'm not being critical, the only way you'll get hit is something negative. anyway. >> so bad news i see launches a reelection is more about people running the headlines than the stuff going on. stuart: thank you for being here. appreciate it. just ahead, liz peek, ben domenech, martha, larry elder. 10:00 hour is next. ♪ ♪
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