tv Varney Company FOX Business August 2, 2023 11:00am-12:00pm EDT
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we are in the largest debt bubble of our lifetime. something has to give. >> this is really about the state of governance in the country. not so much about the economic condition. if we continue to run the country, if government continues to be as divided as it is, the rest of the world will look at the u.s. and question what kind of reserve currency is the dollar? these are things investors are going to take a hard look at now. >> i'm not surprised by the downgrade. i personally believe we are going to see a very rough third and fourth quarter here in this year also looking into the new year. >> the united states is not in a debt crisis today. there's no question that we can pay our bills. longer term, however, we are going through a period of fiscal stress. stuart: morning, everyone, 1
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1:00 on the east coast and this is downgrade day and the dow down 270 and nasdaq down 280. that's a biggest proportionate decline and moderate 280 point drop is nearly 2%. that's a lot of selling. as for big tech down across the board, that's true. we have apple, microsoft, alphabet, amazon, meta plat for the purposes all down significantly. the yield on the 10-year treasury going straight up, you're up 4.12% as of right now. now this. right in the middle of a presidential campaign. let's be honest. nobody knows how this will play out.
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or whether biden and trump will actually be the candidates on the ballot. more than half of democrat voters they say don't want biden that he's too hold and the hunter scandal gets closer and closer to the president himself. on trump's side, he's been hit with three criminal indictments and then maybe one more to come next week. he appears in court tomorrow and will be in and out of court for the next 18 months. the gop nomination and roughly 40 points in front of next contender ron desantis. new york times sienna poll conduct the last week has them tide at 43% support. i'm going to make a bold and perhaps foolish prediction, biden will not be the candidate. one more display of doing anitive difficulty, one more slip and fall, one more piece of evidence he's financially corrupt and senior democrats will move to get him out.
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i'm being just a little provocative here as the third hour of varney rolls on. ♪ stuart: my colleagues are laughing at my bold, yes, foolish prediction. martha maccallum is with us and i'm not going to ask if you agree with that prediction or not. you okay with that? >> yeah, i mean, here's what i would say, you know, covering six presidential elections over the last six terms. so generally what it looks like in the summer in this period is not how it ends up. so i would agree with you there. i think that there will be a catalyst and there'll be some dynamic that changes what we're seeing now and could very well be what you're putting forward
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about president biden. he has a lot of weakness and has the lowest approval numbers that he's had i think throughout his entire presidency by at least one measure. conversely donald trump is as strong in many ways as he has ever been. even going back to 2016 and 2020 in support. these indictments the numbers tell us are making him stronger. 71% in that new york times sienna polls want to stick with the former president. you have such a unique situation because you almost have two incumbents running against each other. off sort of period of a break in the trump presidency four years forced by the los of election in 2020 and a unique situation where voter haves a chance to come back and vote again for a one termer. never happened in our lifetimes. this is a very unique situation and the wall street journal said it well when they felt this kind
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of indictment should be so clearly understood by americans across the board or not pursued at all. we'll be in extraordinary moment here. stuart: trump's post election behavior in 2020 was deceitful and destructive and malfeasance was disgraceful but was it criminal? that's the question you're posing. >> this indictment, i went through it again this morning. it's very much a rehash of the january 6 committee. and their findings. so what happens in america is that when something is not criminal, and remember of the four indictments that have been potential and three we've now seen, most of our best legal experts, jonathan turley and andy mccarthy it's not
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unexpected and being met with presidential powers and what are presidential powers and what is crime. stuart: the first primary debate is august 23rd and moderating with brett baer and you want trump to debate. it's an extraordinary opportunity to stand up in front of americans and extraordinary opportunity for him to turn to the challengers and to put questions to them as well. >> it's a moment to reach out to
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independent voters and very strong support among the hard core supporters and independent voters are why you see the numbers at 43-43 between trump and biden is that's why he's get ago opportunity to make the argument that i can be that general election candidate and i can win. >> we have a fantastic team and i'm proud to be parking lot of it. stuart: are we watch you this afternoon, the story is the name of the show at 3:00 p.m. eastern and >> this is the first tv reaction to what we saw come out yesterday. >> he has said doing this you can't be the president again. >> absolutely. we'll hear that from him this afternoon and a whole lot more. stuart: we better get back to the markets and red ink on the
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left hand side. get ago bit worse. mark tepper with us for the full hour. >> in the near future, absolutely. we go back to 2011, the last time this happened and remember, joe biden was vice president in 2011 and is now president now the common bond could be joe biden. without a doubt you go back to 2011. in the two weeks after that downgrade, the markets sold off 15%. lot of fear, lot of panic. i don't think this is going to be anywhere near as painful or as bad as 2011 because we were just coming out of the great recession. the market will sell off over the course of the next few weeks and maybe 5, 6% could be reasonable. stuart: the near reigns leading is if we keep on racing the amount of debt that we've got, interest rates rise because
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investors will demand a higher rate of interest to compensate for the risk of the downgrade and puts us into a recession and makes the debt even worse and you're into a vicious cycle. i mean, that's a debt bomb crisis. could it be that bad? >> yeah, it is that bad. we've got $32 trillion of debt as of today. we are deficit spending to the tune of $1.5 trillion every year. 50% of u.s. government debt has to be refinanced within the next two to three years and we'll call that 15 trillion. if that 15 trillion gets refinanced 2% higher, which is very reasonable. that's an extra $300 billion a year we have to spend. when all of a sudden we're allocating more of the budget to servicing debt, we have less money for other initiatives that might generate new jobs and economic output and without a doubt, it's at a bare minimum slowing the economy
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substantially. stuart: stay there because you're with us for the hour. a lot more coming up. lauren is with us. you need to take a look at some of the movers in particular meta. it's down 3% and potential positives and hollywood writers on strike and on friday we're expecting talks between the writers and the studios and early intervention programmed to
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point that out. they're all over the place and norwegian down 3%. lauren: it's moving to the sidelines and they cut norwegian a notch and they're in the early to middle innings of a turn around and they prefer royal caribbean. interestingly royal caribbean is also down by 2% today. >> okay, thank you, lauren. now that . a new app uses ai to show couples pictures of what their future children might look like. critics say could lead to major ethical problems. we'll explain it. former president trump indicted for the third time accused of defrauding the united states, obstructing government officials and depriving people of their civil rights to vote. congresswoman claudia tenny calls it "truly dangerous precedent for our justice system". she'll join me shortly. the migrant crisis coming to a
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naked near you, oh, yeah. that's the warning from the mayor of new york and this is a national crisis and the white house must act now. madison alworth on it. ♪ this is american infrastructure, a prime target for cyberattacks. but the same ai-powered security that protects all of google also defends these services for everyone who lives here. ♪ i got into debt in college and, no matter how much i paid, it followed me... everywhere. so i consolidated it into a low-rate personal loan from sofi. ditch credit card fees and high interest. borrow up to $100k. sofi. get your money right.
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is he getting help? reporter: stuart, not really. the most he's gotten last week from the liaison of homeland security and asking for funding a national emergency declaration and more help with housing, what he gets is a liaison. that funding part is so important. fema handed over around $104 million and that covers just 13 days of the crisis here in new york. tabooing a look at line biden me. again, this is the crisis and migrant center and everyone has to be processed and updates from this morning and ticks are -- tickets are as lon as three or hour days and everything is completely full. when you talk about this part of manhattan, it is a business center. you have a ton of banks here and grand central here and this is not only a fiscal problem for the cities of new york and
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mayor's office and businesses say they're struggling. take a listen. >> i see 50% less reservation than last week. i'm hoping that's going to stop and start getting better. reporter: some have been here four nights wetting to get in here and they've spend two nights outside and hasn't gotten any answers and don't know when he'll get off the streets.
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this is the backup when it cops to processing through the migrant city and coming out of buffalo, new york and buses of migrants hearing sent to buffalo in order to live in a shelter there. apparently they'd not gone thru the processing center and got sent back to new york. it's a bit of a mess, stuart. back to you. i migrants just arrived in new york was sent back from buffalo right outside your district. is this hitting you as well? >> yeah, >> this is a huge problem when you create a sanctuary city and incentives for people to come across the boarder and create this crisis and have governor kathy hochul, who is a proxy to this.
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she's given over $1 billion in the new record high new york state budget to accommodate and incentivize whether she's doing it wittingly or not, new migrants to come to new york. they're coming droves. they want to get the benefits that we have, very generous on every level and guess who pays for it all? taxpayers of new york. highest taxite taxpayers in the entire nation and we surpassed california. this is grossly unfair and shows total lack of respect for the small business owners and taxpayers and everyone in new york who wants a safe, secure place to live. and also a reasonably -- reasonable place to live that's not so high cost and so expensive. stuart: i expect this will happen all across the country and getting no better at all. let me move on. you're a attorney, what do you make of the new indictment with president trump for the third time? >> i think it's absurd and again
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not coincidental that it's a coordinated-type of indictment. jack smith, mer garland, you know -- merrick garland, you know, all under the supervision or appointment of president joe biden and right after devon archer gave explosive it'll linking hunter -- testimony linking hunter biden is joe biden. remember, i can't say this enough, this is about joe biden using his position of influence as a senator, vice president, now president but at the time he was vice president to enrich himself and to enrich his family and using hunter, hunter is the guy and he's the bag man that gets on the boards totally unqualified and $83,000 a month for burisma, and now they need to distract the public because we're getting it catered here by president trump and deponent look like real crimes and we changed the law as well. the democrats did last year to make it easier to go after trump and to really violate his first amendment rights.
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>> i would go to iminocommitting prescribe and money laundering and crimes uncovering this. stuart: he seeps to walk away with the nomination now. >> yeah, the more -- a lot of people have sympathetic and even people that don't necessarily like trump or didn't like trump are saying oh my gosh, this is really bad. we have a weaponnized system and people that need to be remove asked we need somebody to go in and really break plates and trump has been the guy.
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he knows know what to do should he become the nominee, which is likely at this point. >> stuart: congresswoman claudia tenny, republican, come back soon. >> thank as lot. stuart: dow down 378 and nasdaq 27 and will fir arrowhead rendition of anthony, up 3 -- ferrari up 38% and the stock is down. more customers are choosing expensive personalization option for their sports cars. now look at tesla. under investigation for steering issues on some of the model 3 and model y vehicles and issue could aaround 280,000 cars. tesla down 2.5%. morgan stanley, they've been surveying their own interns for
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five years now and for the first time, tesla was not the -- was not ranked as the most desirable car brand by the youngsters. tepper is with me. tesla, is it losing its cool factor? >> well, look, i've been saying this for years now, the model s, the model x, they're flagship vehicles and need a facelift. they've looked exactly the same on ten years and on the model s, just changed the color of the door hand and will needs a facelift for sure. let's keep in perspective who is criticizing tesla. we're talking about college interns and we all know that college students in general skew heavily to the left. so elon musk was there and he was a god-like figure to all the kids five years ago and was on the verge of bankruptcy and they hate him and can't stand the guy and was pro free speech and baffles me and keeps in perspective when saying this.
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stuart: i agree with you that the tesla cars need a facelift. always the same. >> no other vehicle would get away with running with the exact same model design for ten years. stuart: thanks, mark. big financial story of the day, maybe the week and month and possibly the year. america downgraded and pitch drops rating from triple-a to double-a plus. how does that affect big tech? we'll get ray wong's take on that on the downgrade, next. ♪
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red ink down 230 on the dow and 280 on the nasdaq. this is downgrade day and this is the result. show me amd. that's a chip maker and it's down 6.5%. it's supposed to have an ai play. looking attorneyings report yesterday, what i took was pc strong, data center strong and they're down playing it. >> the price was up over the price perfection and the ai stocks over the next few months is ai hype only goes so far. at some point you have to start seeing the ai hype flow through so much, much higher profits.
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between them and med tonic, they control 95% and next five years which is remarkable. the valuation is much lower than edwards life signs for historical aluation and stuart: apple going to report tomorrow afternoon and ray wong with us and let's get right at it. target price for apple regardless of tomorrow's record. >> long term is 220 and from the
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services side of the revenue and iphone 14, 15 sales represent 50% of revenue and services came in about 21 billion last quarter and going to continue to grow at a steady pace and how much money you make per iphone and not how many iphones you sell in general. stuart: does the downgrade of credit rating from triple a to double a plus and we've got rising interest rates because of that, does that make a difference to apple price forecast? >> in the long run, no, moody has us with the triple a and pitch on the double a plus and >> amazon reports tomorrow and first, what's your target price and second, what's it in particular you're looking for? >> amazon the main thing looking for is what's going on with
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cloud. digital ads after going and will facebook and that's important to watch because that part of the segment is the fade patternsest growing area on the amazon side. stuart: again downgrade day, rising interest rates and does that make any difference to amazon in your opinion? >> amazon has been up and it's a good place to come in at. that's where you'll see the opportunities and even though it's downgrade day, folks are looking around to see if there's any bargains on the valuations and tech stocks have been up 50% sense november. stuart: so if they're up 50% since november as they are, is this >> we're seeing profit
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taking and this is what's going on and i think the institution investors looking at profit taking and retail inve investore in this for the whole time and also summer and low trading volumes in general. they're the ones benefiting from the ai pass through and the hype was there but nvidia delivered and i think that's going to be important to watch and amv didn't deliver in terms of where ai is in hype and we'll see the difference between them and nvidia and same thing across the board. see which companies really have ai and don't. the war microsoft started with google will be interesting to watch because google caught up
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and it's going to be interesting to see how google monetizes ai more quickly and hear from google next at the end of the month. lauren: he's had thousands of phone call withs michael lewis and more writing his bike. last week prosecutors asked the court to revoke his bond. they were concerned that he spoke with a reporter about personal writings of caroline ellison. she was a former executive at his firm, a former romantic partner and see witness against him. so his attorney say trying to revoke the bond and put him back in jail for essentially talking too much is a violation of the free speech and that trial is expected to start in october.
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>> okay. >> lauren: october 2 to be exact. stuart: he's in palo alto? lauren: where he has been since december. stuart: tough. bitcoin at 29,300, ethereum down a little. are you buying any cryptos? i don't think you bought cryptos in the past, mark tepper. >> i owned enough to be dangerous because if all my buddies get rich, you know, who are drunk at the bar every weekend, if they get rich owning crypto, i got to own some too so i own just a little bit. what's most important is as i'm explaining to think compliants i think this is now a time with all investors look at adding trip koenen at bare minimum and people talking about 2 to 3% allocation to gold as insurance for your portfolio and the
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concern of u.s. dollar losing reserve currency status and it's not imminent but we're on unsustainable path right now. it could happen. >> that's an interesting revelation and tepper dips toe in crypto. there you go. >> fomo. stuart: i knew it. thanks, mark. former diversity, equity and inclusion professional says dei is failing corporate america. she claim it is provotes division and people are starting to see the emperor has no clothes. that's a good story and we've got it for you. next public health crisis loneliness and doctors warning it could put people at risk, increased risk of stroke, heart disease, dementia. the full report is next. ♪
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stuart: loneliness, a growing problem and some say it could become a national health crisis. chad pergram on capitol hill. >> a lot of people found connection in place of employment and folks work in the economy feel like they're just pawns; right. moved around on a board for the profit purposes of their employer. >> murphy has legislation to combat the issue and guidelines and being lonely can lead to
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increased risk of heart attacks, stroke, and dementia and contributes a mental illness. joe there was a decrease in increased risk of markers. we need to take a life span approach to this and her paps starting early in life to prevent these issues maybe a wide approach. >> general jerome adams says social media can play a role in being lonely. >> we often think of its ability to connect us but it can separate us and isolate us and it can make us feel like we're even more alone than what we may actually be because you put up this idealized version of society and if you're not keeping up with the joneses, there's something wrong with you. >> gop center mar marshal and
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exacerbating the process of feeling lonely. stuart: chad, thank you very much indeed. experts warning that artificial intelligence is fueling the, never heard of this, the build a child industry. what's that? lauren: designer children so this is the confluence of two big businesses; right? ivf, a $3 billion a year business. right now it enables parents to pick their embryos; right. and ai can better help them select which is the best embryo to choose. but then you can push it a step further and say what should that child look like? the designer baby. i want tall, i want smart, i want female. you can pick that there's an app and it's called rimini and allows you to enhance your photos and sees what your kids could look like using artificial intelligence and these two big industries come together and we're talking designer babies, build ago child how you want it
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to look powered by artificial intelligence and in my opinion, diversity, surprise, all out the door. >> the dow off 235 points. 18% of 18-34 year-olds are extremely proud to be an american. only 18%. i'll ask our resident gen zer richy schlott about this. i thought all gen zers were leftists. we'll be back.
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sleepovers just aren't what they used to be. a house full of screens? basically no hiccups? you guys have no idea how good you've got it. how old are you? like, 80? back in my day, it was scary stories and flashlights. we don't get scared. oh, really? mom can see your search history. that's what i thought. introducing the next generation 10g network. only from xfinity. municipal bonds don't usually get the media coverage the stock market does. in fact, most people don't find them all that exciting. but, if you're looking for the potential for consistent income that's federally tax-free, now is an excellent time
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initiatives and i'm sure this has to do with disney. lauren: yes, this is the woke disney part of the desantis administration. that board said disney's dei program will be de-solved and it's illegal and un-american and any jobs associated with it at disney will be eliminated and any considerations of race or gender would no longer factor into the awarding of contracts for disney world. stuart: all right, i hear it. thank you, lauren. jack brewer, former nfl guy said dei policies are dividing the country. roll tape. >> it's incredible when you see what boards are forced to do now and forcing you to look at skin color and putting anyone on board of directors. it's not right but at some point in the nation, the sec as well as all the other government bodies need to come together and start having people focus on uniting the country versus dividing it.
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stuart: yes, sir, i like the sound of that. ricky schlott is here. you're with the individual of freedom rights? >> basically. stuart: do you agree dei is divisive and uniting? >> i agree. it's not effective and there was a harvard business review of over 800 companies for over 30 years and found just about zero evidence that dei initiatives helped corporate culture and i'd rather watch private companies than corporate and mandate it. a lot are. in the last calendar year, one in three dei rules had turnover and -- -- stuart: it's fading? >> yep, absolutely. the post 2022 boom is cooling. stuart: okay. a recent poll shows 18% of young adults to be extremely proud to be an american. where did that come from? only 18% of youngsters like you.
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>> yep, i'm part of the 18%, i promise. 4 in 10 gen zers say the founding fatherrers are better described as villains than heros. that's shocking to me. we don't know anything about the country. only 22% of current eighth graders can pass a civics test. if you don't know a country, how do you love it? it's our education system that's failing us, and also paired with the fact that we had social media, the first 27 news cycle pockets in a country of almost 47 million people bad things happen and when you're woman barded with it -- bombarded with it growing up, you think the country is much worse than it is. stuart: you're told frequently, this is a bad place. be negative about it. you hear that all the time amongst young peep. >> absolutely. stuart: listen to this one. another new survey. it finds that senior boys in high school are becoming more conservative on the flip side senior girls in high school are overwhelmingly liberal.
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explain, please. >> there's a backlash to the toxic -- backlash to the toxic mas queue linnty on -- masculinity on boys they felt themselves. stuart: was there a toxic war and toxic mas cutie on bar s? >> a concerting girl power effort warranted and great and boys are falling behind on standardized testing, on graduation rates, college dropout rates are soaring and boys are struggling and not having that similar pick me up and a lot are ending up in video games or weird crevasses of the interpret and there's a backlash for sure with younger men. stuart: this is a wonderful thing. i always thought that young people are inevitably liberal. they're almost always on the left hand side of the face. i mean, that's the way life .s i was certainly on the left when i was that age. i douglas h. johnston see the light for many years.
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>> that's happening to girls for the survey finding but there's a bit of a change in what it means to be transgressive today when all your teachers are very woke and progressive and the cool thing is to be the edgy more conservative kid because that puts you in the minority and bucking up against what the adults are saying and telling you to believe. stuart: tepper, you have kids and seeing that with a pushback against dei and woke and division? >> i am. >> myo16-year-old was applying to various private sch schools d the one school wanted essays from the parents and the one topic was we value dei in our schools and tell us how that is a value in your family. i wrote back, elbows out typing like this saying we do not -- we
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are not advocates of the e part, equity, at all. we believe in equality. if you think equity is the answer, this is not the right school for my daughter so on and so forth. stuart: and? >> and they accepted her because at the end of the day, money matters. that's all they care about. lauren: i would take that a bit differently. i would say as a parent, how do you raise a boy in a changing world? do you still open a girl -- a door for a woman? do you pay for a date? and i think folks our age, not yours, are saying do the right thing. dot old school thing and we're kind of bringing it back. stuart: see, rikky, great having you on the show and my colleagues took over the interview. that's the way it is these days. all right, the trivia question, i think we have time for it, yes, we do. which of these is not one of the seven wonders of the world? hanging gardens ba ba lon, pyramids of geisa, statue of zeus. which was not one of the seven
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