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tv   Varney Company  FOX Business  May 31, 2023 9:00am-10:00am EDT

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to see home prices fall, that's the silver lining, it brings inflation down. >> golden handcuffs right now, people with low mortgage rates, i don't want to move and then taxes as well. those things you can work on. >> the debt ceiling bill will be front and center tonight, proceedings at 7:00 o'clock. republicans kevin mccarthy say he has enough votes to pass the bill so we'll see if the market reacts positively tomorrow. >> it seems to me kevin mccarthy got as good of a deal he can given the circumstances. >> great to be with you office morning, dow industrial done on 16. nasdaq lower right now but up for the year. 24%, varney the company begins right now. lawrence is in for stu. >> i am lauren, i am in for stewart today. a key hurdle ahead of tonight
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will houseboat, a lot of people both sides of the aisle not happy with the bill but maybe that is a good thing and we'll get into that. far more dangerous for the country and donald trump, that's how some on the left are characterizing ron desantis, we will discuss but james blessing the democratic national committee for refusing to hold primary debates. the basement strategy worked for president biden in 2020. will it work this time around? will ask. let's get to the markets, the final day of may, the dow down 114 and down 1000 points this month, s&p 500 right now down 20. most of the action has been to the upside on the nasdaq. this morning it is stone half of 1%. graduate speaker at a new york law school call for revolution to take on legal systems, white supremacy. she also toured the fascist
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nypd, military and israel. that school kids taxpayer dollars. we'll take it on. the governor of alabama signed a bill prohibiting transgender women from participating in female sports in college. we are going to talk to a former high school athlete whose now suing her state for allowing trans athletes and went against her. we've got a big show lined up : wednesday may 31, 2023. varney and company about to begin. ♪ >> there is. the black keys. we are -- the screen is so far
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away. wednesday morning with the latest on the debt ceiling, cleared the rules committee lesley now heads for full houseboat tonight the deal is facing opposition from some publicans, so far 32 house republicans said they will vote against this bill and subject democrat aoc. good morning brian brenberg. overwhelming majority of republicans will vote yes, practically all democrats say they will vote yes so can this small group kill the deal? >> if all vote yes and most americans vote yes, it sounds like it will get through but i understand why many republicans are upset with the bill. look at federal spending from 2019, it's got 40% then, $2 trillion. we got nothing in this deal to deal with that does not a big win on the spending front. if that's what you are looking to fix, it didn't get fixed.
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there is reason, republicans only control the house and just narrowly. they don't have the senate or presidency, elections matter when you've got that slim of leverage in this debate, he will get a slim deal. they got a slim deal. >> some of the republicans are saying is speaks poorly for their party if there's more democrats lined up to support this bill than republicans. >> you ask who wanted this thing? let's look who votes for it. democrats keep the 40% boost and spending we seen and they get a blank check of the debt ceiling until 2025. i'm not saying republicans could get a victory here but the democrats power in government and it's showing in this deal the trajectory with that on, we are still on as a result. >> would you buy the argument that if the hard right and hard left both oppose the bill that's
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a good deal? >> as far as i can see, the hard right is 32 people and hard left is one person -- aoc so democrats are saying not much changes, let's act like we are not happy about it but the truth is, they wanted to see government grow and it has. it gets smaller anytime soon. >> a kind of want to move on past the debt ceiling and we will right now. [laughter] graduate of the university, target israelis and called for rage against the nypd, this was in her commencement speech. watch this. >> israel continues to indiscriminately rain bullets and bombs on worshipers murdering the old, the young. the law is a manifestation of white supremacy that continues to oppress and suppress people in this nation and around the world. >> the law professor railing against the school. he says that speech should not
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have happened in the first place. role. >> the administration i think is claiming the final version differed slightly from the original and all you have to do is watch the video and see these lunatics clapping their hands, standing for her, cheering her on. >> actually got applause. the board of trustees finally denounced the speech two weeks later but the entire lays is run by far left marxist lunatics. we know you are a professor. in new york, i think this strikes home, wouldn't -- didn't the school have to approve that speech? if that's the case, how did they let this happen? >> apparently didn't they say somehow approved version on the final version got switched? if you are training students to think this way and act this way and propound these views, it's going to come through and things like graduation beaches.
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what is sad is that student and who knows who funded the scholarships, taxpayers, hundreds of thousands, millions of dollars go to this school and that's the message we get. >> that student is not from america, she's going to a school funded by the federal government about the state of new york and city of new york and that's what she thinks about the country she now lives in the prophetic the education to her. >> this is why i say again and again, get taxpayer money out education and start with graduate education. there's no reason taxpayers should be subsidizing -- i don't care if it's a great speech or not, we don't need to spend money on that. forget about where she's from, is the idea and they all clap. >> amazing. that wouldn't happen at king's college. >> it wouldn't because of what
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we teach, not anything else except the way we teach. >> your sticking around for the hour. j.p. morgan ceo jamie diamond is in shanghai china for his company's global china summit. he called for lawmakers in washington and beijing to come together and have real engagement, no decoupling. of the issues at d.c. and beijing, are they resolvable? >> i get nervous when i hear him say with got to engage because in the past that's meant we need to appease. this the communist government, chinese communist government not interested in freedom. j.p. morgan's business was based on financial markets that run on freedom and transparency, that's not what the chinese government offers so what happens when push comes to shove in china when china which does this all the time says j.p. morgan, we don't like who you are and lending money to in the information you're not sharing with us, we'd like you to change that. is he going to engage or stand on principle? >> he's there, fine, private business, he can do what he wants, he's not talking about
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decoupling, because it de- risking but it seems like our government wants us to decouple from china get business leaders are doing the opposite. who has the upper hand? >> depending on how you want to define the terms, they can mean the same thing. it was to operate and be dependent on a communist government so you the risk by getting out. he's choosing a softer term but what he really means is you don't want to do business with people who don't respect the rule of law, and with him one 100%. we'll see if that's what he means, he wasn't clear on that. lauren: the dow done 100, nasdaq down a bit as well and that -- the tech trait is the one to be on. eddie, good to see you. you've been up there over a year now. are you still up there and when will you start buying again?
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>> you are right, we've been bearish a year end a half now and still because we think we are going to head into a tough time. here in the summer and we will start buying for the likely late summer, early fall but what we have ahead of us is once we get through the debt ceiling, treasury now has to replenish all this money yellin spent so for the first time all year we will have the fed doing cutie as well as ellen because she's run out of bullets to put stimulus into the economy indirectly so i believe this liquidity coming out could potentially cause sizable headwinds and does lots of sectors still down your to date, a lot of opportunity to choose from when we start bu buying. lauren: what will you by? >> we talked to clients from the start, small caps. a lot of area, russell 2000 continues to show weakness, great upside there. energy stocks as well, financials completely enough,
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lots of opportunity there as well as real estate. real estate especially on the commercial side will be later and then retail names, so many retail names that will continue to get beat up as we go through the second quarter and earnings so there's going to be plenty to choose from. right now technology is the place to be but a highly concentrated market arena, a handful of names holding the market up and if one of the names happens to show weakness, it's going to -- is not where you want to be, you need to see more sectors participate before you can say it's a pull market. lauren: if you look at the s&p 500, it's dependent on ten of its largest members and they are up 44% this year. having said that by sitting out the market, you missed the nasdaq 24% this year, nasdaq 100 tech, 31% rally this year end
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the broader market even though it's narrowly concentrated is up nine and a half%, he missed t that, eddie. >> absolutely and of our time in getting out was poor, it would have hurt our client portfolio and how we measure our strategy, where clients network from the peak of 2021 talking about year to date but the reality is we are managing the net worth and what i would like to know is where investors are even with the rally of peak the 2021, that's more important than a year-to-date return. i like to participate for clients? of course i would. for keith fitzgerald and for some of those folks who made the call early, i think they did an awesome job. we miss the year-to-date so far but echo highs, clients are in a good spot. >> honest man, thank you very much. coming up, listen to the view cohost sonny belittled white republican women. >> most of the women in these
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studies are married white women and they do fall in line with what their husbands are doing, the voting. >> is 2023, liz will react to that and americans facing multiple economic issues from sticky inflation, higher interest rates and growing debt, wisconsin congressman said that that deal is a step in the right direction. he's next. ♪
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>> brian at st. paul minnesota, we are playing monies to tight to mention by simply read because, you know the reason, the white house getting questioned how the debt ceiling will and fresh inflation and does it in flesh address inflation? edward, good to see you, are you getting an official answer to this inflation question? >> the administration is being vague about the dirty nine letter word. we haven't heard a lot the past two weeks about inflation from the president or the readings but inflation is slightly moving up in the latest data and thus the fed's preferred data, pce inflation so because of that, the market sees about 64% chance will see another 25 basis points hike. still this is how long the director and summary question about the debt ceiling and inflation. >> should the debt ceiling deal resigned? will help bring down inflation the next 12 months?
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>> what i will tell you what would have been terrible for the economy would have been default rates we have seen moderation of the credit agencies have not moved down but we needed to make sure we got a deal before that happened. >> a little dodging, the feeling of the white house is ablation will come down on its own because the federal reserve rate hikes, not because reduction in government spending, some may disagree but inflation is proving more sticky than first thought and that's the reason we have seen ten rate hikes in a row from the federal reserve and june 14 it looks like that might be 11. lauren: the right of cleveland is saying no need to pause. edward, good to see you. take a look at this piece from wall street journal editorial
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board, debt ceiling deal with passing by staying united. the house gop force concessions from biden. in other words, the political unity paid off. brian style, the republican from the state of wisconsin, huntsman, good to see you. thirty-two members of your party say they are voting no on this debt deal tonight. how are you voting and what your answer to them? >> this bill is a step in the right direction, my colleagues would like to have a perfect bill until i but unfortunately they don't exist in d.c. this is our opportunity to put forward the biggest spending cut in the history of the united states government, $1.5 trillion in savings. put in place work requirements to get folks back to work. we are doing all of this without raising taxes. a step in the right direction, the beginning of these negotiations president biden put his head in the sand dangerously recklessly risking the united states economy going into default and the end of the day
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republicans are walking away with winds moving in the right direction but now we need to continue work to get our fiscal house back in order. >> let's talk about 2024, the media painted dolmetsch up as a unique threat and now they're trying to say ron desantis far more dangerous. rotate. >> i say this with conviction, ron desantis is more dangerous than donald trump for specific reason. donald trump is willing to ignore the rules and constitution, donald trump is a transactional figure and he will do what it takes, ron desantis and his egos is a cultural lawyer who wants to take us back 100 years and believes he can use the constitution to that end and ultimately has a dark vision of what america will be. a dark figure on the political landscape, more dangerous than donald trump. lauren: msnbc saying desantis was dark and dangerous, to think it's a scare tactic or they
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actually believe that? >> is on the far left think anyone trying to get fiscal house in order is reckless and dangerous. it's the opposite. democratic one-party control that unleashed reckless inflation on the american people. bills that that spending, that unleashed american energy, the far left thinks it's dangerous and reckless, it's good policy. the far left doesn't want to secure the u.s. mexican border, conservatives want to secure the u.s. mexico border and stop the flow of fentanyl from mexico so what we need is more conservatives in power, not less, the far left is petrified of what's going to happen in 2024 when we defeat joe biden. lauren: petrified. thank you for weighing in today. nancy makes republican congresswoman from south carolina is a no on the debt ceiling deal, she tweets and i quote, washington is broken, republicans got outsmarted by a president who can't find his
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pants great i'm voting no on the debt ceiling debacle because playing the d.c. game isn't worth selling out kids and brent grandkids. you think republicans got outsmarted? listening to him, that wasn't the case at all. >> i agree on the big picture, i just don't think this is a big win at all, it's a small incremental step at best, i don't think they got outsmarted, just out powered by the fact that they have so little leverage in converse. you can't do that much when you control one half of one branch of the government so if you think this is the best deal your leadership get, you probably will vote yes and pocket a small wind but i don't blame those who are saying this is mischaracterized by republican leadership as a big win, it's just not that and nancy is right in the grand scheme, this doesn't get you far in
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performing and overspending government. lauren: thank you. let's check futures. it is a down day, the dow down 100 points on the last day of the month of may, it's down 3% this month, s&p done half of 1%. for the nasdaq but the nasdaq has been the clear winner in may and honestly this year. the opening bell is next. ♪
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counting down to the opening bell, a down market on this final day of may, nice to see you, we are getting closer to potentially hearing the debt ceiling deal, hurdle, it's not time, we can finally move on. will that interview where the way for a market run-up? >> good morning, i think there will be one thing investors will find was to put behind them more of a clearing to see forward. the other thing i think they will look for is can the s&p 500 stay above 4200? that's a sticking place to invest and they have been absolutely on a tear but investors somewhat afraid to chase those seven to ten stocks
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that have brought the markets through the roof but s&p looks like it's been struggling to get above that resistance. if we can get above that, coming off the sidelines, this could be the beginning of a bull market, we have a lot of hurdles, we are not there yet but the clearing i am seeing is getting wider. lauren: nvidia was a story yesterday about the story of the year, stock is up like 170% this year, this enthusiasm that has propelled artificial intelligence which propelled the nasdaq and it's 24% run-up this year is that trade getting a little old? can the fed interest rate hike? it's very likely in two weeks, does that kill a i and the
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sentiment we are seeing? >> i think there waiting to see and i believe most are expecting rate hike, 550, could be 575 and that's what's talked about. that could kill this valley. everybody knows it's narrow and we know who the leadership stocks are, as far as nvidia, it is the pick and play of ai, a lot of hype the ai space the one thing stands to reason, the chipmaker of the day that serves ai and nvidia will be a go to stock and company for everything ai so it will get some competition but right now it's a pick and play and investors are leading the in high. i think we'll get some follow on. lauren: do you think the ai play reaches the text vote? >> it's going to be about winners, for sure. lauren: because the opening b bell. the market, press the button, the market is open. let's see how the dow 30 is
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trading, there should be more red than green. the dow is down 70 points in the early going. biggest loser is nike followed by 3m, chevron, intel. goldman sachs, a loser, we will have more on that. at the top of the list here, the s&p 500 is under the 42 level, it's down 19 points, 4185. the nasdaq has been all the enthusiasm, all the action lately particularly this month trading down 54 points, 12,000 969. pull up the big tech names when you look at a stock like meta, it's doubled in price this year, it's at 260 right now, down .7%. apple at $177 a share, up 50%. microsoft also higher at 331. goldman sachs again, this is weighing on the dow. susan lee coming in to the
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program, good morning to you. are they planning another round? >> a big way on the dow right now, only down six tenths of 1% but you could be looking at a third round of job hits, only if you're 250 jobs that could be coming in the weeks ahead. staff might be affected like directors and partners, 250 would likely take golden job cuts, still below 4000, dealmaking dried up so it makes sense, everybody in i thinking cutting jobs and morgan stanley that has cut three jobs and james gorman is stepping down in the next couple months, j.p. morgan cutting around 500 so 250, not that big of a deal especially compared to tens of thousands in the tech space. >> we spoke yesterday about elon musk, head of tesla and twitter going to china, do we know more about that? >> elon musk working with everyone taking the day off for memorial day weekend and he's been pretty busy shaking beijing
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government hands and that includes the top minister like the foreign minister, minister of id, commerce and also a business lunch and dinner with the founder of the world's biggest electric car battery maker which we know supplies tesla's and the jet has flown to shanghai where he said to visit tesla's largest fauci that turns out roughly 60% of the tesla cars produced last year. also a very important meeting scheduled with type china's number two where they will possibly discuss self driving tech and musk opposes decoupling from china emma going to keep expanding and investing in the country. tesla is losing market share in china. a used to account for 50% of the world biggest car market, that's down roughly 10% but still selling and outselling all the
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other local competitors, electric car makers combined so neo's, expos and auto. lauren: tesla is still a catchy brand in china, right? >> has imagine, they sell all electric car brands combined so they do very well but if you look at is as a whole, 10% market share which is now 15%. lauren: meta, their shareholder day today, what you expect? >> i would say content will be a big issue, not just political bias in the u.s. but also activists, investors with proposals of complaining critical bias elsewhere in the world namely in india. also a great opportunity for ceo mark zuckerberg to talk about the growth of the business after cutting 21000 jobs saving a lot of cash but the stock most doubled so far this year, one of the best performers so far. he has voting rights meaning absolute control of the company, 60% of the vote so can never be
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fired. he can pretty much do whatever he wants with the company is built and most people on the market will likely expect him to talk of ai, artificial intelligence, virtual reality especially with upcoming competition from apple, likely introducing its first augmented reality headset to come compete with qwest in a few days in the worldwide developers. lauren: those things still make me dizzy even though they've been upgraded. we were watching all day yesterday nvidia, they hit the 1 trillion-dollar valuation mark, they did not close that. 397, what's the latest? >> india and nvidia fell short of closing past the trillion dollar mark yesterday. you can see we are closing below that magic level of 408 and change. more today after it one 100% plus rally this year. they've lost around $4 billion so far on those nvidia that's.
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if you count that market, i can tell you they are unlikely to close now that nvidia will most doubled so far this year so that position might be a little more opportunistic for them. nvidia founder in taiwan again, highly successful ceos work when others people are resting, he's overseas in taiwan and made some interesting comments like a lot of people's attention on the markets, he says nvidia could possibly switch to intel as a chipmaker for its next generation gpu instead of tsmc right now which makes majority of nvidia chips. chip stocks have been the biggest beneficiaries of the ai bill not just stock but if you look at the emd, pretty good results and this ai chip replacement cycle could hit a trillion dollars, i think about
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the movements in those stocks. lauren: i think intel would have been more than half a percent but nonetheless the chipmakers, some in the red, some in the green. >> intel unfortunately seated the battle in the eye and even mobile, they missed that boom because they've been stuck in this memory pc space so i think they have to have a rethink on the business going forward. lauren: let's look at the dow 30, and desk down 30, page nine points. the dow winner, not many of them today but looking at green down 30, he's yet in tech, microsoft, apple, verizon, intel and merck. let's take it to the s&p 500 and the winners are american airlines, very strong for travel. no major disruptions over the memorial day weekend and the nasdaq t mobile, astrazeneca, paypal making the list. look at oil, this is everything. oil selling off again under 70,
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6909 a barrel right now. manufacturing data on china for the second month in a row that's shrank. it's contracted. worry is not much demand. guess of 2.2% and $2.38 of british thermal unit. for the average price for the gallon of regular unlimited gasoline, $3.57 thus the national average if you live in california, you're paying $4.87. coming up, thousands star james vanderbeek calling of the dnc for not holding primary debates. >> are you kidding me? 80-year-old man, if he lives, he'll be the oldest sitting president in the country, this is not a democracy by them. lauren: where is he, the middle of nowhere? more democrats during his cause. johns hopkins going woke,
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employees given a road map to navigate dozens of pronouns. doctor marty makary is a professor at johns hopkins. i wonder what he makes of that. the doctor is next. ♪
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the social security numbers of tik tok creators reportedly have been stored in china, ready tremble on capitol hill, did employees have access to that information? >> they did according to this investigation by forbes. his journalist reviewed a trove of internal tik tok documents and what they found is the social media company stored
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social security numbers, tax ids and other sensitive info of its biggest u.s. influencers on servers in china. one of those influencers is part of tik tok's lids to sway public opinion in favor of the app before his testified on capitol hill that influencer told forbes it came as a surprise to him tik tok was doing this. it appears to be at odds with what ceo show told lawmakers under oath. >> you do have access to american data and storage of american data. >> american data has been stored in virginia and singapore in the past and access is on a required basis by engineers for business. >> no. >> senator marco rubio whose
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proposed tik tok fan tweeted this morning, i'll ask the department of justice to investigate whether tik tok ceo committed perjury during his congressional testimony. we've reached out to tik tok on this and have not heard back but they've been pushing a plan to store user data of u.s. daters users here in the u.s. as part of a way to keep regulators who might force the company to sell. lauren: thank you very much. new york post editorial board says social media is a disaster teens yet surgeon general only whispers worry. doctor marty makary joins me now. the surgeon general says is not enough evidence to actually determine social media is or is not safe for kids. don't you think the mental health crisis we've been talking
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about for years shows it's not safe? how is he not sure? >> absolutely. you saw the same confusion when smoking was introduced in society and took public health about 30 years to finally conclude it was bad for your health. it's obvious it's right in front of our eyes right now, please kids are addicted, a third of girls say they are on it constantly during almost every waking hour. that's not healthy, we are seeing a rise in metallic problems and teens are learning to do things they otherwise would not learn how to do. lauren: you are saying it might take 30 years to finally admit social media is not healthy for many kids? >> for the medical establishment to do their randomized control trial, we are going to be watching a lot of hurt in the meantime, it's obvious was going on. lauren: infuriating actually. next topic. workers at johns hopkins medical were given a guide, the listed 50 different pronouns they can use in the workplace and examples on how to use them. look at the top left. i, ourselves, they.
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it's like old english. your professor at johns hopkins school of medicine, are we going backwards or forwards? a lot of time in shakespeare or 2023? >> this is part of an agenda. most doctors i know at johns hopkins are focused on taking care of sick patients and doing scientific research that advances the medical field. if you look at what's going on in universities and medical centers across the country, administration is floated with high tuition fees, dollars price gouging patients, high indirect where they get extra money after research get money, $2 and administration for every $3 we as researchers get, all this money is going to find on average 45 diversity equity
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staff at many universities. we focus on taking care of patients right now speaking on behalf of myself and i think many of us are working on efforts to make healthcare more affordable. we've been taking care of patients who are transgender in my career over 25 years, we are well aware of the transgender medical type and genotype and there are special issues but let's look at the great irony. some of these medical centers are pushing this will agenda as they deny medicaid patients care at their institutions. lauren: fashioned anger a lot of people on both sides of the aisle. final topic, a new study found rapid cognitive decline and people suffering a heart attack compared to those who have not. what more do we know about this? is it immediate cognitive decline after a heart attack or years later and how bad is it? >> this was an interesting study of about 30,000 individuals and about 1000 had a heart event they noticed a decline over the subsequent year. probably due to compounding variables, the things that cause heart attacks can also cause cognitive decline, general body
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information and poor lifestyle, not eating well and what is required over one's lifetime. lauren: thank you for your time. some doctors are warning cpr might do more harm than good. receiving cpr can cause cracked ribs as well as brain damage and 20 to 40% of older patients can actually function independently afterwards. i hope if i need cpr and someone gives it to me -- what? >> i am.not doctor marty makary but i understand there is risk to cpr but what do you do? if somebody is in trouble, is there something else beyond cpr? lauren: maybe untrained people know how to administer but are health professionals? >> i will admit, i don't get it but what is the alternative?
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lauren: look at this headline, rise of latino white supremacy, carlos is slamming this new york piece, he says hispanic community is smeared by the radical left because latinos are rejecting socialism. former president donald trump ending citizenship if elected, he plans to end it on day one. without that report right after this. ♪ ♪
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donald trump says he will end birthright citizenship day one if he did become president again. mark meredith joins us now. is this about his messaging on illegal immigration? >> out imagine politics has a big role in all this. good morning. former president trump will be in iowa this afternoon going in studio for a local interview and it's possible he will face questions about this push. trump says if elected, he began birthright citizenship day one. this is not a new idea, he
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floated this a few times in the white house. now the former president says executive order, he'd and the law that allows children born in this country to receive citizenship even if their parents are in the u.s. illegally. >> the policy is a reward for breaking the laws of the united states, obviously amendment of draw the flood of illegals to cross our border. i will sign an executive order making it clear to federal agencies that under the correct interpretation of the law going forward, the future children of illegal aliens will not receive automatic u.s. citizenship. >> super pack for florida governor ron desantis tweeted trump talked about doing this in 2015, 2018, 2020, why didn't he? the idea of birthing this law would likely face immediate pushback, not just capitol hill but the courts because the idea comes from the 14th amendment which says they are naturalized
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in the united states and subject to the jurisdiction thereof are citizens of the u.s. and the state when they reside. trump is not the only politician is called for the end of the birthright law. lindsey graham supported this idea in 2018. we haven't seen immediate reaction from the white house or top democrats. i'm guessing it's because the debt ceiling debate is still going much of washington but i imagine this will come up again on the campaign trail. lauren: stay tuned. mark meredith, thank you, and thank you to brian for joining us. 1:00 p.m. eastern here on foxbusiness on the big money show with taylor riggs and jackie deangelis. still ahead, list b, and carlos gimenez, 10:00 a.m. varney & co. is next. ♪ ne eleme
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ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the
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number on your screen, or visit coventrydirect.com. ♪ lauren: a beautiful day in new york city. it's an inspirational song. it is 10:00 eastern. let's get to your mone

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