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company. the financial world, this is a bombshell. america downgraded, fitch drops from aaa to aa plus. we are borrowing too much, spending too much, the debt is writing sing and we can't agree on a fix. love to biden, he thought he got an okay deal in the budget. it's not going down well with investors. america is out of the goldplated club and the dow down when somebody. the nasdaq down 140. plenty of red ink. the downgrade however, is not affected interest rates yet. ten year treasury yields just over 4%, that's beginning to move up and the two-year was at 4.86 and 4.89. down a little bit, not much change. cold is firming, a safe haven only up to dollars, not much of a reaction. bitcoin is firming, just a little.

28000 yesterday, 29.4 as of this morning. here's the other bombshell story. donald trump hit with a third criminal indictment accused of defrauding the united states, obstructing government officials, depriving people of civil right to vote. this means as things stand now, it's probably biden versus probably told in lectures election. a sitting president challenged by family scandal buses of past president producing criminal charges right in the middle of the campaign. a poll conducted last week as the two tied at 42% support. what a show. downgrade, indictment and anything else that happens today, wednesday august 2, 2023. forney and company is about to begin. ♪

♪ stuart: only four -- okra board. a shot to the biden team, america lost its goal plated credit rating under democrat obama it again under democrat biden. no longer aaa ratings, we are aa plus, also notched on. not a good image, spending and borrowing debt of $32 trillion. the downgrade is a warning about the future. cute is and rates will rise and economy in recession and that will accelerate even more. out of control. the market response so far? somewhat muted but it's falling for themselves. so 180, gnostic done about 140.

the sorrowful solar but kind of close. does it change much him on? eddie is with us this morning. is this the start of the drop you've been warning about? >> it's too early to say because we have had an amazing one since march but a warning to investors we are the largest debt bubble of our lifetime not just our government spending recklessly but corporations and consumers and the problem is the debt is doing finance at rates that are at 20 years highs. something has to give and really the market has ignored these warning signs this year because of this their rally. fundamentals will ultimately better weather three months or six months from now but your in

an unsustainable path here with reckless spending and where we are with interest rates and now we have another problem, inflation accelerating when you look at commodities. stuart: you are looking at a debt bomb explosion in the future coinciding with rising inflation, rising interest rates, debt crisis and etc. that's down the road. how far? >> i don't think this economy -- we are going into recession, i know a lot of people saying soft landing but i can't imagine we can get through another eight to 12 months of the most at this pace. corporate revenues are going on, interest rates staying high. small businesses are going bankrupt at levels we haven't seen since 2010 but it's falling under the radar because the market is in a. right now continuing to buy dips

and ignoring fundamentals. we continue to be cautious regardless what happens the market the next few months. stuart: thank you for being with us on an important day. always appreciate it. the top political start of the day? former president trump indicted on charges coming from january 6. one of the charges and what happens next? >> four counts to overturn the 2020 election mainly conspiracy to defraud the u.s. to obstruct an official proceeding conspiracy. trump was not charged with inciting the attack so first amendment free-speech issue could be a strong defense. what happens next? trump is expected to face the charges and arraignment set for 4:00 p.m. eastern in washington. three criminal indictments. seventy-eight whole charges escalating legal fees during campaign season. stuart: gigantic, 40 million

from his campaign. david, political guy of the morning joins us now. can trump when the 2024 race with these indictments? >> yes. ultimately a trump to be defeated, is going to take ideas not indictments. one of his opponents will have to come up with better ideas republicans say want to go that direction, that will make our life better because for many republicans i talked to say why is it every time hunter biden gets in the headlines donald trump gets indicted? for many they see as another political act by a political justice department run by college. does it have impact on the nomination? not as much as one of his opponents have an idea republicans say we want to go that direction. stuart: we have a pool picking last week before the indictment

showing 43% support each. now we've got this indictment, another indictment. do you think trump can raise his support level? >> raising his support level or biden support level getting diminished? think about and 40 of 50 states joe biden's -- more people disapprove of joe biden's handling of the jobs and imp improve. then you get this third-party group talking about a nominee and cornell west always having the people in the race taking votes away, and taking from biden so president trump shouldn't be the nominee, maybe needs 40% of the vote wisconsin and pennsylvania, he wins those, he becomes president again.

stuart: thank you for your commentary this morning. an amazing situation, trump versus biden again. another republican candidates. >> governor desantis says he'll and the organization of government, he'll replace the fbi director and ensure standard of justice for all. he calls d.c. a swamp it is unfair to stand trial before a jury reflective of the swamp. it could be the trial. the fact vivek ramaswamy was un-american and commit to pardoning, trump and calls the federal police corrupt with one mission, to eliminate trump and then mike prince. pressure to overturn the election results and obviously was more sober and anyone who puts himself over the constitution should never be president. stuart: thanks so much. want to get back to the debt downgrade.

brian is with us, he's talking to people this morning. what does the downgrade mean to those people? >> we are here on the plaza talking with people how they think about the downgrade. hospital think they feel great. a few folks with me, al, what do you make of this america losing the gold standard? >> losing our standing in the world making us look bad in the world. can't spend money we don't have. it's okay to say no to your child when you want something you can't afford get the country doesn't seem to say no every time somebody wants something, to say okay, print more money. >> if your family handle finances like the government would, you'd cut off the credit card and say stop doing that. you think about biking onyx, he says how well it's working but

we lost the gold standard credit rating, is biking onyx working? >> it hasn't been working since the first day he took office. this doesn't overly concern me as far as credit rating but it's not good for the confidence of the economy in general. average new yorkers are from new york, we go to the store, our electric bill is twice as high as it was. this inflation is more detrimental to us than -- it's another straw in the haystack driving our economy in a downward spiral and it's reflecting everyday americans feeling the strain. >> the downgrade reflects what we've been living with. i've got kathy with me enjoying some fun this morning. kathy, when you think about the credit downgrade in 2024, is in effect way to think how might vote in the presidential election?

>> it does because of mariah's tired retired teacher and small pension. the economy is killing it. and spending more each month and making less so i have a big decision to make is going to be the next president. >> things like this with the downgrade, people say what's happening to the u.s. economy? i thought we were the strongest in the world. apparently fitch doesn't think so anymore. a lot of people thinking what that means for 2024 and how we can get america back on a better track economically. stuart: , inside. the media having a field day with the latest trump indi indictment. >> if he's saying there was fraud, doesn't allow the president to claim from. >> that's sick. >> if you told me it would take two and a half years before we as a country say that's not g

good. stuart: we have a lot more that came from. mayor eric adams pleaded, he was offered a liaison to fix the problem and he's not happy. we have a report coming at you next. ♪

mayor of new york warning migrant crisis is not just new york problem and he says musick it's under control, it's all coming to a neighborhood near you. madison always is with us, outside the roosevelt hotel in new york jampacked with migrants. adams is not happy about liaison

so what does he want? >> he wants expedited visas in the federal government to declare state of emergency because the situation here is untenable. you can look at what we have. this is not only migrant shelter but the intake center so any migrant the once housing has to come here. this line has not changed since yesterday. some of these folks speaking overnight on the ground for three sometimes four nights still waiting to get inside to be processed. or you cannot experience for just watching is the smell so to save the spot in line, some folks are staying here nonstop to go to the bathroom, they p.m. themselves so it bed, bathroom and kitchen. we had to speak to a migrant who spent two nights outside waiting to get in. >> we are so tired, many days

here. we want to get somewhere with opportunity to sleep someplace safe. >> calls are going matter to send money and announced an emergency for what eric adams calls national crisis. he met with the home and security class week and they are defending the assistant sent to cities like new york noting it focuses responsibility to do something. the secretary highlighted the challenges managing broken outdated immigration system that not only congress -- only congress can fix through legislative action. what they have offered is dhs liaison here in new york city but democrats are frustrated with the bone being offered. >> not enough.

you need to come with a check, work authorization and emergency declaration otherwise it's not enough. >> back here, for those of us who live in york city, this area is familiar, one of the busiest train stations in the country and when you exit it, this is what you are greeted by. we expect a press conference this afternoon at 1130. it's likely going to be an announcement where they are moving the migrants, the guess is onto the soccer fields on the islands. official word at 11:30 a.m. stuart: migrants from new york city were bus only to be sent back after officials said they were not processed properly. republican from texas says. his is going to happen everywhere? >> this is just the beginning. i've seen it in my district

represent nearly half of the southern border, it doesn't and. the only way it and is it the president and congress to come together. the president has to enforce the laws already on the books, it people's hearings in days not years. if they qualify for asylum, send them back to the country of origin. to blame for everybody for wr wrong, congress needs a bipartisan solution that focuses on legal immigration. you've got people doing it the right way getting blended in with people doing it the wrong way. stuart: and getting exasperated here but why can't we send them to sexually cities and states? if asked for them, give it to them. >> it's going to happen and it's already starting and i don't care what city you are, chicago, miami, san francisco. whatever city you are as soon as migrants arise is going to suck

all of your city resources rate i've seen it throughout the state. americans are no longer first, your last. imagine a 911 call and know to take your call because firefighters are in these centers. in my eyes solution is work visas. you have people who want to work, you know who they are, they can't vote and don't get access to social services. small businesses need the labor and those who do not qualify for visas or asylum is sent back to their country. >> we had another border search in july, one 30,000 arrests, a 30,000 more than june. do you see any and game here? >> this is going to continue to rise, 30% increase. it's 110 degrees here and you still have the number rising so

what happens when it's cooler temperatures in october and november? this can't be a political football anymore, we are well past that. this isn't a border problem, every city in the united states is going to start dealing with these issues just like new york city. when the president enforces laws in the books, congress needs to act and why i introduced the hire act, it's bipartisan and 20 cosponsors, 11 republicans and nine democrats in focuses on work visas. that people, they are here to work and don't have access to voting and it's a reasonable way to bring people over. right now is pure chaos. stuart: you should see new york city. thank you for being here. thanks a lot. check futures, seven minutes to go and i see a lot of red.

america has been downgraded. we'll be right back.

wednesday morning, down great day. let's see what's happening to futures right before we open the market. big picture, down 170 on the dow and down 140 on the nasdaq close to 1% drop in the nasdaq, have a present for the dow jones industrial average. shock will only joins me, the big story is that down great. what is it mean for your outlook? >> it puts a damper on the rising market and we seen that today. earnings a little under the weather as far as people's expectations. it's an important week for earnings. we had to that downgraded and that is giving as our taste and they need to take profits and so it may put a damper on the ra

rally. stuart: is not pointing toward a debt crisis down the road? the agency says we are spending too much, borrowing too much, totally out of control, debt crisis later, what you think? >> this is something that can be kicked down the road and will continue to keep on the road so it's not in front of us. twelve years after the last downgraded in 2011 is more about governance and that's what we need to address. this is the state of governance, not economic conditions when the debt as it stands now. if we continue to run the country and be as divided as it is looking like a third world banana republic been the rest of the world look at the u.s. in question were reserve currency is, what conditions exist in the u.s. for any trustworthy

government as far as where people parked of capital so these are the things investors will look at now. stuart: one other negative, gas prices. what i've seen is gas prices rise sharply, 3.80 going now, does inflationary. >> it speaks to rising rates. likely maybe raise one more time in september. i don't think we are out of the woods as far as inflation, part of the downtrend is because prices happen on the downtrend. it reversed now so heading back in the wrong direction. >> always appreciated. opening bell is about to ring. there right in front of the big board, i can see clearly what's going on.

i see about three or four winners, the rest are losers of a heavy downside selling. i'm looking at microsoft down 1% and look at the s&p 500. there you go. s&p 500 is down .70%. nasdaq composite on the downside as well. sharp loss. nasdaq is down 152 points. show me big tech, i want to see them all. apple, microsoft, amazon, medic, all of them down, most down more than 1%. small bus for apple. take a look at amd, this is your story. 18% drop in revenue for chipmaker. >> stock is up almost a dollar. what happened is the fact that they have a new chip, mi 300x,

it is the ai graphics processing unit that can take on nvidia so is overshadowing a disappointing report card so wall street and the company is hopeful amd can be the number two in the future to nvidia making ai chips and that launches end of the year so this is why you're not seeing a big fall. stuart: can you show me starbucks? done one and a half% did they do well in china? >> forty for 6% -- 46% in three months in china. the problem is a question with the u.s. same cells of. overall revenue missed at 9.17 billion in the quarter but am conflicted because when you go into starbucks, more likely to buy the biggest size which is more expensive and add extras

like cold foam and breakfast sandwich. this is what the company said get more people are making the coffee at home so if you decide to go into starbucks, your ticket will be bigger, just not going in as much and that's the worry. stuart: $100 a share. tell me about pinterest, ideas people. >> the report card came out in their margins did better. consumer confidence is recovering and the cherry on top is what the ceo said about ai and leveraging in their advertising. the stock is down by not even 1% and they said expenses are growing faster than revenue so i looked it up. expenses coming in at 781 million, revenue at 708 million. when costs rise faster than sales, you got a problem. obviously not much of a problem since is done just 1.3.

stuart: cbs, they reported this morning. on one. >> they reported ten +% increase in revenue thanks to their health benefits business. there working and spending mo money, expensive acquisitions to dive deeper into the healthcare services business and comes with cost-cutting. they announced it yesterday. stuart: rough times. >> go seven percentage points and prices rose 11. the translation? consumers are trading down. if you buy tello, it costs a lot more. i picked up the velveeta cheese the other day and put it back down because i could not believe the price. consumers have said enough. stuart: young brands, what are they? >> kfc is the winner, 13%.

this is the company that had value meals, 5-dollar mac & cheese bowl. they did okay. sales of double digits, taco bell up 4%. things are expensive. stuart: the likelihood of higher interest rates in the future, maybe recession, that's being factored in right now. >> and overshadowing the 324 private jobs being added. stuart: ihop king of the, down 60%. >> demand is softening, demand for homes is weak and they say as a result, annual sales will drop ten to 12%. commercial business is okay but this is the consumer angle, the homeowner is pulling back. >> do not the top-of-the-line will cost? early grant.

top-of-the-line. top-of-the-line is 30,000. >> did you put one in? stuart: some time ago. here we go, done 165, half a percentage. put it on the big board -- can you put it? [laughter] okay, don't. nasdaq may be? >> there's your down winners. stuart: wears microsoft? not there. united health, j&j, walmart all on the outside. s&p 500, no big games i can see. nasdaq, charter, no big names i can see. most stocks are down today. and as a check of the markets, ten year treasury yield of five

points, 4.08%. bit coin that 29. just below two grand, 1983. bit coin 29.3. oil $81 a barrel, 80 last time i checked. still around 2.50 as we speak but the price of gasoline is going up rapidly. the national average for regular is 3.80 and diesel has gone up 4 cents. 4.10 is the average there. trump indicted on charges stemming from the events of january 6. watch this. >> fight like hell and if you don't fight like hell, you are not going down the country and what. everyone here will soon be marching over to the capital building to peacefully and patriotically make your voices

heard. stuart: chums vice president mike pence came out swinging against his former boss. we'll tell you what he said. we no longer have a goldplated debt. pd peter morici is next. ♪

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in a few hours but fitch becomes the second major credit agency to ever downgrade u.s. credit. a debt ceiling battle but this downgrade to aa plus are setting physical deterioration over the next three years. the game of economic chicken over and over again the white house and congress play over the debt ceiling. >> and negative news about of time or markets have priced out negative news so create risk to the near-term. >> and official blames president, former president donald trump for the downgrade say talks with treasury, the events of january 6 of u.s. capitol even though it's been two and half years that date. >> we are on track to have trillion dollars in deficits added to the debt. it is unsustainable and no wonder fitch downgraded us

because we don't have a solution in place. the publicans have a solution but democrats will with the same spending. there, emily's taking us over the cliff and the american people have been suffering through higher inflation. >> is becoming political, a campaign spokesperson says the downgrade is because of extreme maga agenda going forward even though this president has been in office more than two and a half years. stuart: where did that come from? thank you very much indeed. peter morici is an economist and joins us right now. what does the debt downgrade mean for the economy? >> short-term, not a lot. it doesn't change objective conditions on the ground. united states is not in debt crisis today, there's no question we can pay our bills and occasional budget standoffs don't mean much.

the federal government was always in a position to pay the interest on the debt and roll it over even if we hit the ceiling. but something democrats invented. longer term are going through physical stress. the debt is growing at a pace for not in the distant future, we will have to borrow so much even if we balance our budget from what we take in and spend, the service would grow more rapidly within the economy. thus the situation. united states can print money to pay its debt but if it does, so bonds it becomes inflationary. then we are behind because instead of defaulting by not paying on the bonds, we default by the republic method, inflate our way out of the value of the debt and what happens?

where do people go with her cash? are people really going to put grandma's savings chinese war bonds? ask, it's not viable. stuart: let's continue this theme of inflation in the future. the latest on gas prices of sharply, average for regular is 3.80. a week ago was 368. these he has. the price of gas is going up rapidly. that's inflationary and as to the situation with all the spending. worried about inflation? >> that is a real problem near-term. last time i spoke i told you inflation has a way with cycles coming down and going back to a new peak coming down and going up further as the fed pauses or eases back and that's what we have.

the other day he was talking about the golden path. it will be an expensive drive come september. august inflation data we get will reflect this. this came very late july and august but the september inflation, the data we get august end of september, beginning of october will be more alarming and the federal have to do something. his such as gasoline though. look at the middle as of the grocery store, you had a piece about craft, craft is not the only valid when it comes to food prices. a lot of these companies pay themselves very well and talk about high cost, 500,000 year, two years out of school and all the. jacking up prices about as quick as joe biden's borrowing money. red meat will get more expensive

because the herd is small, drought impacting grain harvest and as we get into winter, we will have food pressure not just around the world but here. stuart: and roger on the show because of the tale of woe for the future. >> be cautious, the fed has to be mindful. stuart: i can understand that. take you for being with us. brian brenberg still with us in studio. you travel frequently to the midwest. >> in the summer, every weekend. stuart: gas prices have spiked. >> really spiked. a lot of people who drive trucks that need trucks for their work and people who have gas powered components for the jobs they do and of course it hurts, they hated but what they feel like and i totally get this, d.c. doesn't care. we are not their priority. they couldn't care less how i power my life. they want to make it worse. this week we have higher standards now for cars which

will make vehicles more expensive and all these guys have old trucks and tried to make them work saying is going to be so expensive but i have to replace everything. stuart: thanks for being here. they that. america has been downgraded. a blow to president biden, damage his economic message for him. top of the hour. facebook file, to control the public narrative. inclusive details right after this. ♪

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fox obtained previously unreported internal communication between facebook employees and white house officials. this is an exclusive. hillary fun brings us. tell us what you found. >> the big take away from internal documents we obtained is the white house have an f bomb riddled face-off with facebook over trying to get more

data on users and asking for more specific tools to target users in an effort to get more shots into the arms of pandemic. power struggle between the two hit the peak as president biden's digital director white house senior advisor to anywhere facebook employees were prorated by the white house turning over more data. i feel we are running around in circles, some give us lots of inflammation and some partners tell us to f off. it feels like we are chasing our tails and we don't want to get information to just say that. we stopped for, and have not heard back. these documents show the white house of facebook attempted to limit the spread of true information on a call between facebook employees and surgeon general's office. facebook employees told biden administration staff the questioning whether you should get a vaccine under mandate others government overreach, we do not does. it's not false information but leads to a vaccine negative

environment. the white house wanted even more censorship internal communications between nick and andy savitz and says is gone to the white house skin, they were livid. facebook didn't take down telling colleagues the white house was outraged. one white house official appeared to mark americans ability to think for themselves and judge was true. i can staff recording telling facebook employees somewhat in rural arkansas sees something on facebook, it's the truth so stuart, clearly some at the white house don't think highly of the people of the great state of arkansas. [laughter] stuart: nicely put. thanks for a great report. brian brenberg with us, it seems like an awful lot of pressure. >> number one, it's content from the white house for the middle american. number two, an obvious desire to

control what you think about and what you do and they are happy to use the private sector to make that happen. these are critically important for the first amendment in this country. i'm so that we are taking an. stuart: thanks for being with us for the hour. we'll be watching you on the big money show eastern time right in the middle there right here on foxbusiness. still ahead, lisa booth, can trump when in 2024 with these charges? mollie hemingway on the timing of the latest indictment martha mccallum on the reaction from tom's opponents and beer congresswoman claudia on the migrant crisis spiraling out of control. 10:00 hour of bernie is next. ♪

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