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tv   Cavuto Coast to Coast  FOX Business  July 12, 2023 12:00pm-1:00pm EDT

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stuart: here we go. how many children to captain von trapp have in the movie the sound of music? i will start. my answer is 8. don't laugh. ashley: me too. 8 is the first number that came to mind. stuart: the answer is seven. coast to coast starts now. >> barbie, can i come to your house tonight? >> sure. stop by. ♪ >> best day ever. >> it is the best day ever and
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so was yesterday and so is tomorrow and so is every day forever. larry: who knew that barbie movie is 9 days away but everyone in the pink today, it struck us, that expression describes optimism and good feeling. we've got the market's own can go, to explain why stocks are rallying and rates are reversing. it has to do with optimism, inflation might be ending or slowing. this much is not. prices last month using yet again. it was the 12 straight month of declines. robert thinks he knows why. it is not because consumers stop buying. it is what they are buying. that and what investors are no longer buying. the uncertainty of more rate
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hikes coming. welcome, in the pink because over that inflation stink. and he looks like the can in the movie that is debuting in a week. so what is going on here. and where are we. >> the never came in better than anticipated. that is all very exciting. and and the july rate hike, and
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off the table. as long as the cpi and pce over the next two months. and the bank on friday. the market is stretched, a place further ahead than where we should be, and start to retreat little bit. by the rumor, sell the event type of action later today and this week. neil: maybe the inflation report was relatively tame, the 12 straight week of declines and there would be fewer betting on a rate hike where the federal reserve meets again but that is not the case. that this is going to happen or see another rate hike.
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>> and it is almost 90%, and it should happen. and i'm willing to wait and see what the august and september inflation figures look like and hate to see it do what it did when you and i were just younger. it started to trend lower and got ahead once again. neil: you can always overdo it. remember the fear of hiking an environment where you can risk overdoing it. a lot of people are fearful that jerome powell and company did that and then stagflation. where do you stand on this. >> he could have gone, still could go, the pendulum could swing but i could say, i was skeptical they would avoid a
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crash landing. it is not going to be soft, we are not going to crash, it will be harder than we expected but i don't think we will get in front of stagflation or that type of environment. we have a lot of business signals happening. it's a strong labor market. consumers appear to be okay. i think that's more smoke and mirrors. based on everything you see the consumer continues to spend, travel, look through these experiences. i am in the camp that might navigate this. neil: you were saying that when nobody was. you have grown a beard so looking forward to seeing the barbie movie and your role in it. i appreciate it. we have susan lee with us. prime they happens on prime day but is still running today.
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susan: two days. so far so good, surprising, can't find strength in the consumer and that reflects if you look at the first day of prime day, 6. $5 billion spent spent so far in the first 24 hours, up 6% last year, the higher ticket items like appliances have been doing well. toys up by 30% from last year. apparel, electronics selling as well. consumers are willing to buy more of these items like appliances. maybe that is a sign of strength in the us consumer. if you look deeper and look closely at details a lot more prime - shoppers are doing it by now and pay later, the old layaway system. that is up by 1/5. that made up $450 million in the first 24 hours of sales, 6%
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of the so -- total sales number. makes sense. if you are buying an appliance like a stove, and the fed is demanding from you, it could be a sign of stress, the consumer isn't as strong as the headline number. if you look at the purchase now and pay later usage for groceries, adobe says that has shot up by 40% so far this year for everyday daily consumers at staples. does that show some weakness? ashley: a reason the fed should go slow, with 30 year fixed rate mortgage of 7%, that is inflationary but as far as shoppers are concerned, a deal is a deal but to pay deals or not are a problem.
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susan: the amazon numbers themselves are pretty encouraging when you have 170 million americans, half of the country signed up to $140 a year to stick on and continue to pay. amazon for all their goods online. in my conversations with amazon leadership that is their goal, to keep these amazon prime members sticky, wanting to pay $140 a year. they do that by same-day deliveries, that's the focus so they have fulfillment centers everywhere which gets things in your hands quicker. neil: it is amazing you order something as soon as you are done and hit send, beep beep. susan: you will get that coffee maker in 12 hours. stock is up 50% so far this year and they hope retail does better. there's a steep cloud slowdown that could be less than 50%.
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neil: this applies to food items as well and she did touch on that. the oil food ceo, always good to have you. you cover all price points, what are you noticing, details of surveys that have been taken that show consumers, touching on being very adroit of how they play this. >> we are in the mess we are in because of covid and a lot of the politics being involved in this. everyone being involved in this war with ukraine and russia were tripled the price of fertilizer, 30% of the world's wheat and 20% of the world's corn. it sent food prices soaring and weapon eyes did food. we bring in food from all over the world and transportation during the height of this went up tweet tenfold, now that has
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come back down, doesn't mean inflation is coming down. it is coming back down more to logical levels. weather had a big impact, droughts and followed by heavy rains destroyed crops in italy, spain and around the world. in california, the tomato crop, 15 million tons, devastating rice and things like that. the center aisle of the store is where the essentials are, that remain strong with inflation. other things have come off, energy and things like that, labor, 60% higher on labor, price of steel, packaging has gone up. neil: pass that along to the customers, i wonder how you absorb that.
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>> we bring in coconut water from thailand. and that is one dollar and 40 a case. $20,000, the food industry, if you make $0.50 to one dollar, you cannot absorb 14 or $15, you must pass it along otherwise you are out of business and what is the purpose? neil: you stuck by your gun, big supporter of donald trump and there is a concern when you spoke out to the degree you did on behalf of the former president. and could you -- didn't seem to put that dent in your selves.
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>> you make plans and you are working as an essential business, all workers east central and make a gift to the nations so the chief executive of a couple million pounds, went to the white house. the holy spirit put the word blessed on my lips and the sound of freedom. anything good comes under attack. we were attacked by invoking god and i didn't have any control over it that. what happened to me and the company was god sent and so we were initially called for a boycott, became a boycott and so we were the only ones, the few companies working and thank god because this covid thing killed our spirit, put businesses out of work, restaurants, it was a war against the working class. that has destroyed where we are
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today. neil: i remember the reference to god and you are religious man and treat your people the same way but then there was this counter wave of people saying wearing politics on his sleeve, big trump supporter and we want none of that but that seemed a short-lived, it went away. regardless of what they think period, your products are still thriving. what lessons did you learn? >> the united states is the second-largest latino country in the world, the biggest group by 2,050. an update on that might be tomorrow with the border open. what unites the latino community are the values of god, family and work. by invoking god, it didn't turn off the latino community which
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is our main consumer though that has grown but it did upset a lot of the people who hate and destroy, divide which is happening to our country. we need to love our neighbor as our self, unite, love, unite and build and i was mentioning that to the president who was a builder and who values life and shares his values. i think it is going to be a big issue in this upcoming election because the latino community, a lot of latinos feel the democrat party has abandoned them and their values and the values are the things that will carry this election and we need to get back to those values or we are done. neil: do you think republicans have a shot in 2024 of getting the hispanic vote? >> 30% of latinos feel democrats speak to them, 11
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republican but 37% feel nobody does. if republicans are convinced 30% latinos, that can be done. neil: good seeing you again. he sticks to his guns. not really hurt his business. in the meantime, president zelenskyy was making his pitch, and he was very clear about it. >> for our country and our people.
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staff tried to usher out the media in the bilateral meeting. listen to this. >> we have -- security guarantees, success for that. it is my opinion. thank you. >> how soon after the war would you like to be in nato? >> president biden: an hour and 20 minutes. >> president biden made public statements before the family photo that the us and nato believes ukraine's future remains with the allies. >> president biden: in the meantime, we are going to provide security to ukraine, against any aggression that occur. members of the g7 are launching a joint declaration of support ukraine to make it clear that
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our support will last long into the future. >> reporter: more military aid for ukraine in the weeks and months ahead. bottom line the president remains concerned that adding ukraine to nato would draw the us into a direct military conflict with russia. the us sent $75 billion in military humanitarian and financial aid to ukraine since the invasion started. neil: i want to go to karen pierce, british ambassador to the united states, great to see you. no nato membership for ukraine in the middle of a war. that's the read from the president of the united states but some divided among nato members. what do you think? >> i think this is a good result. fundamentally, what nato has said is ukraine's future lies in nato. ukraine has to meet all the conditions that any nato member would have to meet.
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the path is shortened because ukraine won't have to go through an intermediate stage. it is worth recalling that finland and sweden, the newest members of the nato alliance already met the nato conditions. that's the reason this has been so quick. neil: the fact of the matter that finland and sweden are in the middle of a war. in the middle of a war. that would complicate things for them. very complicating in ukraine if not for that ongoing war, what would happen? >> you make a good point about the war. nato would not under any circumstances admit a new member by virtue of admitting the new member becomes a project and any conflict. the president ordered nato,
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made this clear, nato is supporting ukraine to defend itself against russia. but the conditions are the conditions. they have long been nato's conditions of membership. nato will need to meet those but what the g7 would need to do is help ukraine with reforms, defense modernization, help ukraine with its economy so one day it will meet those conditions. neil: from some of the nato members, you get the feeling that 500 days into this, this frustration that they are bogged down and it will drag for some time, the president indicating we are there as long as it takes. >> actual he, everybody brings nuances to the table when you
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have a 32 strong alliance. every member of nato has its own concerns but the unity and support for ukraine is impressive. that has been the case from day one. they will be internal debate about how best to support ukraine and what capabilities but fundamentally, nato has come together to support not just ukraine but atlantic security more broadly. the front lines of this war are in ukraine but the threat russia poses means the faultlines are around the world. neil: we get involved in ukraine and membership now, obligating nato members to this conflict as well but we have a move on the part of our own president and others, where the prime minister stands on providing advanced weaponry,
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cluster bombs that are pretty destructive and would wrap the game up beyond what people fear. >> in terms of getting advanced weaponry. we've been in the forefront, giving a weapon called storm shadow which has greatly improved ukrainian capability. the weapons we are talking about, we are in a different place in the united states, we can find a convention that bans the use of custom munitions and stand by that, the united states is not signed that convention, nor has ukraine and nor has russia. the reason they are needed as i understand it is russia has been using them in ukraine. i don't think they change the nature of the trajectory. i don't think it's an advanced
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weapon in the sense of precision missiles. they are not precision missiles which is one reason, but the point i want to do, ukraine needs to defend herself against what russia is doing, the united states took this decision, the president is on record saying it was a difficult decision and we can all understand that but problem once again lies with russia. if russia doesn't want to see these used and states don't want to see the news, the place to go is moscow and to tell him to stop the war. neil: i don't know what protocol was breached when our president did not go to nato's opening dinner but raised eyebrows because it is such a rare event. some said, working hard for four days straight but what did you think of that? >> i don't know. that's a matter for the white
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house, not for me but i would note even though i'm a civil servant my would have the honor to sit in dinner places with leaders from around the the world because my principal couldn't make the dinner. i would say it is not unprecedented. neil: i would never pass up a free dinner myself. i couldn't understand it. >> don't want to cast aspersions on this. allow me to say not every summit dinner is fantastic. it is always fantastic in terms of alliance building. neil: always great seeing you. be well. we have a lot more coming up including electric vehicles, they are all the rage but to sit and stew and weight. we will talk to a dealer. ♪
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adam: the united auto workers is ready to begin what could be contentious contract talks with automakers, three they could target, the list could expand and be the basis of the future and they were not taking up low single digit increases. auto companies saying we are getting back and you know how that goes. keep an eye on that. keeping an eye on a big trend in the auto industry, the push to get us all into electric vehicles. we have an auto dealer, that might not be all it is cracked up to be. the entrepreneur and business owner from six new jersey luxury cars. good to see you again. apparently, what we are seeing,
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this uptick in ev sales nationwide, where up 8%. a lot of people saying the last couple years we double that, we are rocking. >> i don't buy it. double increases and doubling, doubling is easy. the biden administration, with the electric vehicle mandate, 2,035, 80% of vehicles on the road have to be electric and consumers not getting into it. can't sell them, manufacturers in the credit right now because we have all these 2023s on a lot, consumers are not buying them. attorney general from west virginia patrick morrissey did a news brief the other evening, has 20 states already signed up
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that the law put into place by the epa, challenged in the supreme court that it is illegal and has to go through congress and the biden administration circumvented that. they put companies and consumers in a bad place. neil: i know lucid deliveries were up 1400 vehicles in the latest quarter. but that is not chump change. they seem to be the bigger players but all the major automakers are growing their ev line. you would think that would get people visiting your stores to kick the tires. are they? do they turn around? most of them are very expensive. >> let's start with the fact they are $10-$15,000 over a gas vehicle, then you install a charger your home and people can't afford that. they were hit with the covid
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impact, people are getting back on their feet, 6% inflation. they can't afford that. they have anxiety, afraid where they will charge it. the infrastructures not in place and the biden administration got over its skis and it is starting to show. we are hitting a brick wall and you peel back the onion on lucid antennas lapse earnings, it's all in china and europe. neil: what do you do with the evs on your lots? >> manufacturers have to come out with some major incentives to get them on the roads. there's a lot of issues around this. in washington last week with a bunch of lobbyists, we still haven't solved the chip problem, but we will put a mandate in place that 80% of cars on the road need to bev but the minerals you need to build those batteries are controlled by china.
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lauren: 1 stuff, keep us posted. thank you. i don't know if any of you remember on the old popeye cartoon, i will gladly pay you tomorrow for a hamburger today. some candidates are doing a different twist on that.
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consumer cellular. >> welcome back to coast to coast. running or president is an expensive enterprise and campaigns are getting creative to convince voters to send the money. >> i'm going to keep give you phone calls, telling me how you can be most effective for us but the money you raise you get to keep 10% of it. >> reporter: north dakota governor doug berg from will likely take a loss on his
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latest scheme offering a $20 gift card to the first 50,000 people who donate one dollar. his campaign says doug knows people are hurting because of biden economic relief gift cards is a way to help 50,000 people until doug is elected president to fix this crazy economy for everyone. it also allows us to secure a spot on the debate stage, for social media platforms that have owners the cost to conservatives. candidates need 40,000 individual donors and that helped. campaigns are reporting second-order fundraising, donald trump's joint fundraising committee says it raised $45 million in april through june. ron desantis's campaign says it raised $20 million in a campaign that began in may. the super pac supporting him says it took $130 million since march. nikki haley's campaign says it
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raised $7 million, pac supporting her says 18.7 million since it launched this year. candidates have until saturday to submit fundraising information to the federal election commission. neil: a new way to get them raised. maybe it will raise some money and opened up avenues. >> i think it will be a paperwork nightmare. it is interesting to see how vivek ramaswami can jump through the regulatory hopes for the small dollar blue-collar fundraisers and what they are proposing to do is rather than having the normal fundraiser who goes to these events with the sum of cash but also gets paid, they have a lot of different fund
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raisers, small 0 donors. fundamentally what this might be about is not necessarily raising a large amount of money from small donors but what this reflected a lot of these campaigns are not just looking at the bottom line but how do you get $40,000 contributors that are benchmark qualified for the rnc debate in august. neil: even if you are financing your own campaign you need the list of donors so to go against the success -- it won't hurt donald trump but i wonder how that works. if you are polling well. >> outside of polling, the best bar matter for a campaign is fundraising numbers. if someone believes in a candidate they won't go to the polls, likely to open their wallet and support the
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candidate financially. the governor's scheme is interesting, not quite money laundering but going to voters, giving them something of value and in return they gave him something of value at one $20 in gift in gift cards for a single dollar in campaign donations. i expect a frustrated call from their campaign when they see this clip but they need to get folks who are going to sign a check and be donors. my question is if you have someone who will donate one dollar or $5 in this scheme, are they going to be counting to the number of individual donors for the rnc benchmark? very confusing but interesting to watch. neil: i want your thoughts on this, 12 straight months of
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inflation easing a little bit. i am wondering, a lot of time for the general election itself. if that is the secret weapon of the administration, the inflation you are worried about is gone, not what it was, republicans trying to have inflation out of control and not out of control. what do you think? >> that is the best case scenario, long hoped for and prayed for soft landing which i don't expect the administration to telegraph to the fed that they want to them to slow these hikes. they have given them room to operate on their own but their hope is come 2024 the united states economy will not be dealing with recession, that inflation will be a memory in the past. and said, biden can focus on what's holding down polling numbers, take a nosedive after the afghanistan withdrawal and in large part hasn't recovered
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from that because of the economy. if they can put inflation behind them, a cudgel on the hands of republicans, i expect republicans to switch to social arguments. neil: if we maintain this pace, another 12 months we could be under 3%. above the fed's target, closer to the 2% target. great seeing you. want to go to what they are planning for "the big money show" a few minutes away. taylor: similar conversations to what you're having, larry kudlow joining us on a big cpi number this want, how the fed thinks about responding in the coming weeks plus the miami mayor and presidential hopeful francis suarez on his presidential bid and what he wants to accomplish but more coast-to-coast after this. ♪
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call today to request your free bond guide. 1-800-217-3217. that's 1-800-217-3217. adam: i want to talk to our next guest, we have stocks sprinting at on the notion another goldilocks inflation
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number but i would be remiss if i didn't mention china. whatever you think politically, they are having a world of hurt going on economically, things are slowing, factories are slowing a lot of people saying this could reverberate everywhere. charles schwab cheap global investment strategist, good to see you. i want to talk today, i want to talk about this wildcard going forward, things slowing down noticeably. what do you make of it? >> china's economy came out strong when announcing the reopening. january, february, march, slowed considerably since then. employment is over 20% in china, a big deal for an economy, workforce is already shrinking, combined with inflation in china.
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it is 0% in china not for a month but year over year. china faced deflation, not only a recession there but in the broader global economy as well. neil: i am used to it growing up in this business, i always felt china lied about its numbers saying 8% is the ticket, 8%. i never believed it. now that we get numbers out of china that show growth if not contraction they are the ones reporting it. it is worse than they reported. >> it is possible. i look at data that is published by third-party sources. they do a great job measuring their economy but one thing i look at, us consulates, epa air quality testing every city in china and what we see is the
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amount of particulates in the air, air pollution in china has pulled back suggesting less transportation and less manufacturing going on right now. that's one of the indicators that corroborates china's data things have slowed down. neil: a lot of politicians look at this and they say countdown to the chinese, they need us more than we need them. might be a simplistic view of things but we approach negotiations, a cautious response. i'm wondering if there is something in the notion china is bluffing us, in worse shape than they are admitting or acknowledging. they don't want to get that through. >> it is the biggest trade relationship in the world between the us and china. it is dependent on sales outside of china. what we are seeing is
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increasing shift away from china by e-business is and we hear about it as we go through second-quarter earnings season, businesses like apple moving production from china to india. a number of businesses as well as india starts to take the spotlight from china as a business friendly destination. neil: another reading on retail inflation, the lowest since march 2021, 12th straight month of decline, under the 2% limit but we are getting closer to that. what do you think? >> it is welcome news to see inflation numbers closer to the fed's target but some of that is due to energy numbers after the invasion of ukraine and the spike there. the next couple months we might see the headline number to couple little bit but this doesn't bolster the doves at the fomc, one master rate hike
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in july but that should be the final one. data suggest that the market's take away. the fed is finally done. . 20 but you think we will see a rate hike on the 25th and 26th. >> that is right. by the fed and coming up on the last meeting from european central bank, many other key central banks are close to their last rate hike. we are seeing weaker global growth. stocks doing okay because they are welcoming the end of this. neil: good seeing you again. we are following the president's remarks in lithuania. making it clear nato is united in protecting ukraine. he had disappointing news. president zelenskyy of ukraine, nato stand as a possibility. stay with us. ♪
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you can't buy great conversations or moments that matter, but you can invest in them. at t. rowe price our strategic investing approach can help you build the future you imagine. t. rowe price, invest with confidence. neil: we are telling you about inflation coming down but temperatures are going up for a good portion of the country, 90 million americans are under this he wave alert that has scorched states, looking at
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triple digit temperatures. phoenix in and out of 120 °. whether that is dry heat, that is record-breaking heat, same in the south where they are having more flooding and more wild activity, thunderstorms and the like even in vermont where they got a brief reprieve, montpelier looking for that to get bad again as more rain is expected. i think they had in just vermont, two days worth of rain than they typically see over two month period. still a very big problem, keep an eye on that. my colleagues and friends join us for the next hour on "the big money show". it was up 300. don't know whether they are looking at the dream of the fed but we will see. taylor: dry heat beats humidity any day. neil: 120 °.

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