tv Cavuto Coast to Coast FOX Business August 1, 2023 12:00pm-1:00pm EDT
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stuart: we asked, the earths could fit inside jupiter. alicia who went to stanford. >> 700. lauren: 1000. >> 1300. stuart: i'm going with 400. i'm going with 1300. nobody got it. >> we thought it would be single digit. stuart: did you get it? you looked it up. time is up for me. coast-to-coast stars, right about now.
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adam: we are stumbling out the first day of august, examining a market with awaiting streak here. it is looking that way, the dow not so much, the other averages, the major averages up appreciably, the dow is sort of the lag or of the bunch, 7% year to date. when you look at what the nasdaq is doing, the s&p, 20%, there's a big come back in stocks. we get a read of how individuals are doing. dave ramsey, who is good at what people do with their money, worried about a developer and out of the white house today, student loan relief, if the government, the supreme court says no, they are trying to work around that. we will talk to him later in
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this show. i want to go to what the c makes of this rally that is going on and how we started the year can continue for the rest of the year. what do you think? >> the old adage is sell and demand go away would not have been successful this year. it is almost 10%. this rally surprised a lot of people. the data that has come out, inflation coming down, gdp numbers, a hard landing has not materialized. people are addicted to the stock market. if you look at the s&p compared to treasury, at a low not seen since 2007 which makes it seem the bonds look more attractive relative to stocks.
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neil: always do my homework when i have you on so i can appear as smart as you. one thing i noticed was some of these cd and money markets, a run for their money with added protection of the united states government, 5% plus yields that you can get with no risk. the dow, the nasdaq, super particular running about 7 times that. you could say i will take my chances but what do you make of that? >> it's becoming harder for stock investors to justify staying in stocks given where the multiples are. as you point out, the yields you get on risk-free assets, us government and treasuries, i think if you look at the hundred year number, stocks of
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the 7% to 10% if you include dividends, it's becoming harder and harder and you will see some air come out of this rally but we could be higher. we've got the santa claus rally in september to look forward to. neil: some things that used to be a backdrop for a strong job market but i noticed the number of jobs that are out there is getting back to what we were dealing with with covid, back to 9.5, 2 million jobs that are still out there, but it is down from the 12 million plus that we saw two years ago. what do you make of that? >> we have seen announcements particularly in the tight space earlier this year, huge layoff announcements. no doubt these higher interest
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rates are having an impact on the consumer, we are seeing that in credit cards and mortgages and some of it has a lag affect, we will see that all the way through but that's going to translate to more across-the-board and i wouldn't be surprised if the unemployment rate at historic lows eventually makes its way higher. we have to wait and see and that is what the fed is looking for as well. neil: you got to get the word out that the economy is improving and things picking up, they are going to the steady job growth, the fact that we have 12 consecutive inflation numbers that have come down your of your and still up there but not nearly as up there as we had earlier seen. what do you make of that approach, trying to sell americans on the notion that things ain't so bad. >> there's two schools of
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thought, you have the inflation number the government reports and going to grocery stores and still feeling the pinch. you've got this phenomenon around shrink inflation, the same product in the grocery store, paying the same amount for but they have less product inside of them. that is a problem consumers continuously point out. i see it online, i saw a picture of someone posting the cost of butter in canada where i am at $9 in the grocery store, seems outrageous but i think overall inflation is coming down but is having disproportionate impact in different places. neil: great seeing you again. i want to go to grady trimble following other developed on capitol hill. regarding china, black rock, he can connect all that. what are we hearing? >> the house select committee on china has done a brief
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review of two huge finance firms and what they say they found his those two firms are helping invest money in chinese companies that have been blacklisted by the us government so we are talking black rock, the largest asset manager in the world and one of the top stock market index compilers. morgan stanley, capital international, or msci, the china committee is asking for more info from these firms, in letters to both of them the top republican and top democrat on the committee, mike gallagher and roger christian right than americans retiring and savings go toward these firms indexes and investment funds are unwittingly funding dozens of companies that advance the chinese communist party. the letter goes on to say by facilitating massive flows of american capital to these and other people's republic of china entities linked to the chinese military or human
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rights abuses, black rock and msci are exacerbating an already significant national security threat and undermining american values. >> making money, is looking at the risks and threats and downsides to what your money is doing and anybody who says pro money at china and don't consider the downsides, that is not capitalism, that's russian roulette. >> blackrock tells us his investments comply with us laws including sanctions and ads, like many global asset managers, blackrock offers a number of strategies to invest in or exclude china from their portfolios. majority of our clients investments in china are through index funds and we are one of 16 asset managers currently offering us index funds investing in chinese
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companies. both firms tell fox business they are cooperating with this probe, so it could just be the beginning. neil: thank you. congressman rob whitman from virginia, vice chair of the house armed services committee on strategic competition between the united states and china. an important player in this. always great to have you. a lot of people saying china with all its provocative actions, to reward them with more economic activity and business activity that even though it hurts us to cut ties or not have as strong ties but it is the right thing to do. where are you on this? >> i believe we need to be very stern with china. american dollars should not help the ccp modernize its military or violate human
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rights and us companies should not profit from investments that fuel the empowerment of the chinese communist party. that is fundamental. we see what china is doing with its aggressive behavior, united states should not be facilitating that. neil: i've addressed this before, congressman, this notion of getting tough with china economically, always comes back to the idea that they need us more than we need them and there is truth to that. a lot of americans, higher prices and chinese goods and since a lot of it is chinese goods it will boomerang on them. are the american people prepared for that? should they be prepared for that? >> et al. responsibly, leadership across the spectrum, legislative and executive branch, we need to communicate to the american people the depth and breadth of the threat we face from china and we cannot be facilitating
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that by massive investments into chinese communist party military modernization, because that is like feeding the wolf that is going to eat us. we have to make sure there is transparency. everybody needs to know with every penny they invest, whether through their retirement fund or investment managers, do any of those dollars go to support the chinese, started, that's how we will get our arms around this and people won't have a choice but until we do that, people are going to be be leaving they are not part of this and they may indeed be in an investment fund that is beating the chinese commonest party. stuart: always good having you. thanks for joining us. i want to go after this, dave ramsey, one of my favorite guests, a good man, he really looks after folks, sometimes a little bit of tough love. he has some tough love
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>> colleges and universities should beyond the hook for the loans because they are responsible for providing a good education. they take all this money but the federal government student loans and want people to be in school for six years, they don't care about the types of degrees. you could see zombie studies disappear, very practical subjects being taught. neil: they call that pivot in politics, that's what ron desantis is trying to do and get back to issues he thinks are more germane and issues that he's pursuing. dave ramsey is with us, multinational best-selling author. you've been talking about personal responsibility. a lot of politicians, the president of the united states looking at revisiting college
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student loan forgiveness am a clever way to do a end run around the supreme court. what do you think of that? >> it has gotten completely out of control but the student loan program is an epic failure. we have one. $7 trillion in debt. they are so horrible we have to talk about what we are giving them and congress and the president are so until actually dishonest, they make the loans. if there's a horrible way to talk about forgiving them, we should stop making them first before having a discussion about forgiving the existing loans. neil: i will take that on as my own idea. you raise a good point. keep digging home, put down the shovel, we keep doing it. this is something robert f kennedy junior of all people, to say we compound these education ills because for every piece of loan relief kids
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get it costs tuition, board and this other stuff so feed the beast about how do you start starving these? >> what you got to go back to, the original idea that a degree is not your ticket to success. it is not the currency that causes you to win in the marketplace. knowledge is the currency, moving things in the marketplace and i noticed years ago, i quit borrowing money three decades ago. when i borrowed money i noticed i bought different things with borrowed money than -- wasn't like it was real. i bought different things, when you pay cash for your education instead of using taxpayer-funded borrowing, you make different choices because you go i am paying for this so maybe i'm not going to get a
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degree in german history which is useless and end up as a barista with $230,000 in student loan debt on the taxpayers back. we caused people to make different decisions by using funny money, borrowed money in education and messed up the idea that knowledge is what you are pursuing, not degrees. neil: a lot of people find benefit in the polka thing but we will discuss that in another interview. i did want to step back and look at we don't churn out enough plumbers and electricians in this country, we chatted about this many times. all i know is it is next to impossible. then he arrives and to the people assess the problem. the guy is doing very well but we don't admire those pursuits like they do in germany where electricians are rove year to and all that. we've got to go backwards in this country.
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i wonder why that is. >> micro, you and i talked about this at length, just did an event talking about finding jobs, finding employees for small businesses a few months ago and we had the same discussion. the idea is we tried to say education, knowledge matters. the way they did that was they trashed the trades, the workman with a wrench over his shoulder has a scowl on his face like this is horrible and the guy with the little degree has a big smile on his face as if this is wonderful. so yet, the joke nowadays is the guy that is turning off your electricity because you can't pay your bills because you have $250,000 in student loan debt is making more than you are making with your masters degree. the trades are undervalued.
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the good news is there is a real wake-up on the trades. covid did that, calling people essential or nonessential, the trades were all essential and we are still working during economic shutdown, so that woke people up and the student loan, everyone is thinking about the burden of this. who wants to sign up for that when you can get certification and make $120,000 a year as a welder. neil: we live in a country where we are tapping what was left of our money from covid, not everyone but many, and that's the question going forward, not only markets but the economy, how do we keep this spending going and retail activity going. what do you think? >> we don't want an economy based on ridiculous levels of consumption because it is not sustainable.
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that hits the wall because consumer debt goes up so heavy, the actual goose laying the golden egg, the consumer consuming gets crushed under the weight and so when you are over consuming and the economy is based on that you are going to have corrections, slowdowns and this and flow. if we would simply go at a reasonable pace of increasing the quality of our lives rather than these hockey stick to the right movements and luxury items as an example, then you don't, if you stay away from that you stay away from the debt on the consumer end in the consumer can survive and prosper and you have a stabilized economy but this excessive consumption and people need to say this is what is driving the economy is not healthy. we saw that in the housing bubble. when people came out of their houses after the quarantine housing shot up, demand got out of control. it wasn't healthy. it wasn't healthy. it settled back down. now we are in a more normal
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rhythm with real estate. it is very healthy other than we have a little uptick in interest rates. neil: always a pleasure, dave ramsey, multinational best-selling author. if you ever listen to his show, listen closely how he treats people always with respect and decency but more or less, not the italian-american way to do it. he doesn't do that, he makes you think. thank you, my friend. in the meantime taking a look where we stand in this country with what he said to, what he didn't say. devon archer spoke to the oversight committee yesterday. republicans said he fessed up to the fact that president biden was a, democrats say it was the illusion of access, nothing to see here.
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adam: devon archer testified on capitol hill, spoke to the oversight committee and had exchanges with republicans and democrats, all the proof we need president biden is a crook and his son is an enabler. democrats said nothing of the sort going on. i had the novel idea why not get a transcript of all this and people at home decide for themselves rather than prejudging? apparently, that is just what they are working on. you are welcome, america.
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hillary vaughan chasing these guys down for answers. >> we should be getting that transcript any day now but democrats and republicans were listening to the same closed the door, four our interview with hunter's is this partner devon archer but the two came out with different takes. going into the meeting lawmakers really knew one side of the story, the president biden insists he never discussed business with his son hunter but hunter's x business partner devon archer is not a stranger to biden. there's pictures of the two golfing get together. i asked biden about that outing in 2019 on the campaign trail. there is a photo of you golfing with your son hunter and his business partner devon archer. do you stand by your statement that you did not discuss any of your son's overseas business? >> president biden: i stand by that statement. >> reporter: according to archer, that reportedly may
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have not been true. archer reportedly told lawmakers hunter biden was selling the illusion of access to his father, and the then vice president biden phoned in when hunter was at dinner with business associates and was put on speaker at least 20 times. biden's job was to sell the brand to these associates, democrats say all biden would talk about on these phone calls were things like the weather and saying hi to hunter's business partners is something any dad would do. >> if he says hello to someone that he sees his son with is he supposed to say hi, son. i'm not going to say hello to the other people at the table or other people on the phone? it is a preposterous premise to think a father should not say hello to people the sun is at dinner with and that is literally all the evidence is. >> reporter: a source familiar
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tells chad pogrom, in 2013, vice president biden went to dinner with hunter biden and some of his business pals at café milano in dc. neil: a good restaurant. hillary vaughan following those developments at capitol hill. good to have you back, where do you think this whole thing is going? i hope we get a transcript out to put to bed some of the back and forth on this and we will know what he said. what do you think? >> we've seen white house try to shift the goalposts. for the past four years president biden said i've never spoken with my son about his business dealings. in the last month that got shifted to i never spoke to anyone he did business with. now we see them unveiling a new strategy because of this text—- testimony, the fact that president biden did speak to hunter's business partner
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during business meetings but they were just speaking about the weather, the same way bill clinton and loretta lynch were just speaking about chelsea clinton's wedding, nobody believes this. i have never broken out my phone to call dad during a business meeting so he could drop in and when your dad's vice president of the united states everyone understands what you are selling. democrats are trying to differentiate between whether hunter was selling access or the mere illusion of access but if you are on the phone of the vice president you have severed the illusion, that's just plain accessible even though devon archer was not under oath it's important to realize he has no incentive to flip here or give house republicans what they want, this is someone who has been sentenced to a year and a day in jail for separate fraud scheme that doesn't prevent hunter biden but he was not charged as part of it but house republicans can't renegotiate his sentence or the financial penalties that devon archer is facing.
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someone after 10 years working with hunter biden served as john kerry's campaign finance director, now giving republicans the goods they need to prove that president biden has been lying the past four years. neil: something that's important to know, the testimony to your point and what is more, no matter what he said, wouldn't affect the jail time he is looking at. there is no upside or downside to anything he might have shared with these congress men and women. do we know the breakdown of how many involved president biden or references to president biden when he was vice president versus a former vice president. >> we don't know the specific timeline. there are 20 calls in total, don't know how far those go along because hunter biden is
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doing business with devon archer up until president biden announced his 2020 campaign. he quits the burisma board the same month president biden announces his run for presidency, not just on the board of bar raise my or the rosemont capital investment bond. members backed by the ccp, that were very high profile, that devon archer, this continues until the month biden announces his presidential run this time around. neil: always good talking with you about that. he referred to the chinese communist party, we will see if they release that and nothing is read actor do, couldn't the. we want to go to la, jonathan hunt, looking into federal,
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state, local officials putting together reports of an underground bio lab, what is going on? >> reporter: a lab run by a company tied to china and storing infectious bacterial and viral agents including e. coli, tuberculosis and coronavirus and conducting experiments on mice using those bacteria and viruses and those who ran the operation are refusing to talk to the multiple federal and local agencies looking at what was going on here. it was only discovered when an alert local inspector in fresno, california happened to notice a hose coming out of a disused building. they showed what investigators found, potentially dangerous agents. hundreds of dead mice littering
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the floors, among the questions officials want answers to what was the aim of the experiments, who was behind this operation and why have so many of those involved on quiet. multiple government agencies including the cdc, fda, and fbi are involved in what is already a 5-month investigation. officials of the department of health told us they've never seen anything like this lab run by a company, prestige biotech which claimed it was involved in the manufacture and testing of covid 19 and pregnancy test kits but that wouldn't explain the presence of more than a dozen other bacterial and viral agents. sources point out to us that the biological and viral agents discovered are not considered the most deadly on earth, ebola and anthrax, for instance, but they say the lab may turn out not to be as sinister as it might first appear.
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having said that those investigators like all of us would like more definitive answers from the lab operators who in a large number of cases simply disappeared. a lot of questions here. neil: jonathan hunt in la trying to sort through that. threatening to sort through taco bell, there is one customer in particular who has a major beef about beef. we will explore and explain after this. ♪ ♪ i have type 2 diabetes, ♪ ♪ but i manage it well. ♪ ♪ it's a little pill with a big story to tell. ♪
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neil: remember where's the beef? they criticize other houses for not having beef and burgers, it has extended to taco bell with one customer saying not enough beef in this, well beyond tacos. it is -- what are they doing? lauren: you bring me out to talk about this, $5.50 for taco bell's wrap that had too much crunch. so he filed a class-action lawsuit seeking $5 million in damages and accusing taco bell of false advertising for five popular items, i will show what he is showing as proof, the mexican pizza, the picture on the left is what taco bell advertises, the picture on the right is the one he bought. the suit claims it has half the be filling as advertised. ditto for the contracts, the ground a crunch tract, if you
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are looking at them, and he feels duped. is this a consequence of inflation? we are paying more and getting less. neil: did he try to go to the manager to say put little more beef on this? >> no, but he went to a team of lawyers who sued burger king and mcdonald's and similar claims. i don't know how you prove this because of course you have a food decorator for the commercials who make everything look more beautiful than it is, and each taco bell, there are many factors involved. neil: you don't strike me as a taco bell. >> don't think i have ever eaten at taco bell. i go too fast food restaurants. neil: tassels on the menu. >> can i see the wine list? do you have, what are they? stand for my purse.
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neil: restaurants you like. >> this man is mad that he paid $5.50 and got half the amount that was in his contract. neil: obviously a major beef. we identified the man. our chief market strategist -- i'm only joking. i would be remiss if i didn't get your take on that. i'm old enough to remember other class-action lawsuits, subway, where do you think these things go? >> in the trash. not about the taco bell food but the lawsuit. i don't want a lawsuit. i think it goes in the trash. neil: looking at this economy, this market which in the middle of everything falling out of
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bed, you are as cool as a cucumber, looking at underpinnings, now increasingly, much of the investment world is going your way, not so much a standout contrary in anymore. what do you do? what do you think? >> the risk/reward has shifted. not trying to be the smart guy. not trying to be the dumb guy and ignore the last 50 years the markets have gone up with two major exceptions. every time the market sold off it snapped back and we set ourselves up with more time for another complete recovery. there are only 5% with all of what has happened. that is impressive and it is about corporations earning money and maintaining margins, you talk about inflation, raising prices for everything
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across the board. people are willing to pay and the reason is wages over the last year outpaced inflation at 5% versus 4%. neil: if it is a v-shaped recovery normally a lot of those, as quickly as you went down you go back up and it is over not all the time but what do you see happening this time? >> you have to look at the big picture. 35 years almost. look at the overall trend. when it has come back, it rallied the distance of a drop on the old hi, that targets s&p 6,000, 30% above where we are now. we are back to the market conditions, not that they will be sustained, where you purchased the debt from 2,010-20 you bought the dip and the markets moved higher. let's look at the value of stocks, earnings-per-share for the stock market is 19.
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at the previous, we were 50% below as far as the value of stocks. you mentioned in our lead here the jobs have slowed but we have to differentiate what is good for us and what's good for the market in the economy, two different things. the fed has gotten things almost exactly right as far as the conditions we have and they want slowing of wage growth. nobody else does but that would make them feel better. in 2024, earnings growth is expected to be 12%. that's a strong number. markets look forward to companies continuing to profit and make money. neil: that would be good for the stock market in the process or they hope. good chatting with you, thank you very much.
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now to what brian is cooking up 12 minutes from now on "the big money show". brian: if it strikes you down, try again, biden with a new plan for student loan handouts. we are on it. funding ccp interests. american retirement funds fueling chinese companies that could pose a national security threat. more coast to coast after this. ♪
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adam: neil: illinois's governor defending a move that will allow non-us citizens law enforcement in illinois, a lot of people say wait a minute. democratic campaign strategist, for biden 2020 campaign surrogate, don't know if he's playing such a role now. good to have you, are you are 2,024 biden surrogate? >> we are working on that. we are assembling that for the real act. neil: looking to reelect the president? >> absolutely.
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lauren: 1 do you think of the move to allow us noncitizens to police us citizens? >> you highlighted it in the intro, crime is out of control in chicago. i'm a democrat and we've got to get under control. you have a bill that was passed by the state house and state senate signed by the governor that allows people who were here legally and legally allowed to work on in terms of federal regulations and others to join the police force. we see it with the military where you had noncitizens in order to become citizens, it will help with recruitment especially the aca recipients, folks who spent their life here, often devoted to this, hopefully help stem the tide of the crime crisis happening in chicago. neil: i assume police jobs go begging get in your state, doing this.
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>> there's a recruitment crisis. the new mayor of chicago wants to hire 200 more detectives. a lot of these major cities, hopefully this again helps stem the tide and get good folks on the ground. neil: the problem is with the prosecutors, someone is arrested and released, that's the problem and that is leading the decline, we don't have to fix that by hiring illegals. >> you had the prosecutor not seeking reelection, hopefully get someone in who does prosecute crime. i am a pro police guy, surrogate for the president who stands with law enforcement, we need to prosecute criminals to stem the tide. it is in terms of the policing aspect and the criminal prosecution of it.
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certainly to your point. neil: let me switch gears, still early, the president has -- stand with donald trump and other candidates as well. are you worried for him? do you think things could be problematic? >> i'm a democrat on fox news, i'm worried about everything. there are interesting take aways. i don't put a lot of faith in up all this far from the election, don't know who the republican nominee will be, but there are early indications where this race might be headed. one of the key things that you are highlighting is the fact that president biden is only leading hispanics by three points over donald trump, that's concerning to me. the president is leading with independents by 6 points, that's good for the incumbent president but any indication this far out from the election is anyone's guess at this point. neil: you are right about that.
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thank you very much. we are getting updates on how the new iphone 15, this one has a lot of bells and whistles, a new charging port and this blue me away, titanium engines. titanium edges after this. the chase ink business premier card is made for people like sam, who make- everyday products, designed smarter. like a smart coffee grinder, that orders fresh beans for you. oh, genius! for more breakthroughs like that- i need a breakthrough card. like ours! with 2.5% cash back on purchases of $5,000 or more. plus unlimited 2% cash back on all other purchases. and with greater spending potential, sam can keep making smart ideas- a brilliant reality! the ink business premier card from chase for business. make more of what's yours. there are currently more than 750,000
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>> cardy be careful, a concertgoer filed a report with the metropolitan police department after being struck by an item thrown from the stage by the entertainer cardi-b, responding to a and flinging a drink at her, she flung the microphone back and it hit someone else. back-and-forth continues. this is not the first time we have seen stars on stage pelted by things in the audience from people in the audience but this one is a first in that they are going after her for her response. that continues. we've had smart phones thrown at celebrities as well. don't know if it would be like iphone with titanium edges but that would be heavy.
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