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tv   Varney Company  FOX Business  October 4, 2023 10:00am-11:01am EDT

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>> $1.87. what has happened to our country, afghanistan, the most embarrassing moment i think in our country's history. our next president, 40, 54th, and more in some cases but
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whatever i can do to help with regard to speaker, leading biden by a lot. if i wasn't, i wouldn't have rallies like this. >> how is milania? ashley: there you see donald trump taking 1/3 day of his trial, civil fraud trial, taking the opportunity to talk to the reporters there. i think he mentioned afghanistan and his lead in the polls. hard to hear that audio, but that is back into the court room. i am ashley webster in first stuart varney, they selloff yesterday, more than 1%, nasdaq down 2%, the dow below the
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watermark, 0.4%, s&p slightly higher, nasdaq up half of one%. the big story is the 10 year treasury yield, close to a 16 year high, down 4. 8 basis points, still up there, 4.75%. opec plus, don't think you can expect any production increases but the price of food is still down $86, $0.73 a barrel, down 3%, would like to keep an eye on bitcoin, it was up $200 earlier had now up $53, 273025. also happening now more than 75,000 looking to strike in 5 states across the country. what could be the largest healthcare workers strike in us history. kaiser permanente union workers including pharmacists and
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therapists working the picket lines, one more pay, benefits, more pension benefits and on the picket lines, they continue throughout the show. the latest read on the services sector. lauren: it came in at 53.6 for the month, it is the ninth consecutive month where the service sector expanded, the manufacturing sector, 11 months in a row. prices paid, inflation in the sector, same as august and september, 58. 9. that's a whole lot of nothing. ashley: as you were, the market is doing absolutely nothing. kevin mccarthy ripping into republicans who voted to remove him as speaker of the house, watch this.
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>> they are not conservatives, they don't get to say they are conservative because they are angry and chaotic. they are not conservatives and do not have the right to have the title. ashley: they don't have the right. look at this op-ed from liz peek, kevin mccarthy's run as speaker is finished. 's matt gaetz a villain or hero? that's a good question. liz joins me now. let's start there? which is a? hero or villain? >> i'm not a fan of matt gaetz. i think what he has done here furthers the narrative, already widespread, that the gop is incapable of governing, they are the authors of chaos and all 8 of the republicans who voted out kevin mccarthy, all fans of donald trump. what's the biggest knock on donald trump? he brings chaos. seems to me this was a really bad mistake. on the other hand, i applaud the idea that somebody wants to
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rein in spending. our fiscal deficit is a horror show. we will have a deficit for the year that just ended $2 trillion, twice what the government promised it would be. this is unsustainable, democrats cannot seem to get their head around the idea, voters connect the dots between deficits and spending and inflation, is the number one problem for democrats. these guys were not true to trying to cut spending, that takes hard work particularly with such a slim majority in the house and a democrat senate. what did they expect from kevin mccarthy? much too much. ashley: i think you are right. to this too, congresswoman nancy mase is defending her decision to vote for mccarthy's removal. she explains. watch this.
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>> for me this is not left versus right, this is not ideological, this is about someone we can trust, someone who will keep their word, someone that the american people can trust in this leadership position because we need leadership in this country more than ever today. if you make promises to someone, telling conservatives one thing and telling moderate another and telling democrats a third thing, that doesn't work. we are all adults here. ashley: they don't behave like adults in congress. let me ask you this. who would want the job? they've got the same problem kevin mccarthy faces. >> this is a big fractious coalition of people on the far right, what is happening, people like matt gaetz, not nancy mase because she comes from a divided district, matt gaetz is republicans plus 45 in his district, he is never going to lose unless he is primary but a lot of people in the
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house, come from, in new york, they run roughshod over all the moderates, it isn't true, the idea, by throwing out kevin mccarthy managing to heard these cats, in order to unite the party, give me a break, a ridiculous idea that is. you have to have gandhi or somebody uniting this group in congress won't happen. kevin mccarthy did not promote the women's issues she cares deeply about. going to matt gaetz to date defenders of women's issues is a stretch. and they didn't pass the smell test. ashley: we will throw it out
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and leave it as we shake our heads in disbelief. let's take a look at the markets. great to see you, jay powell has lost the inflation fight. you pulled the idea of a soft landing and, quote, fairytale. that's ominous, is that does that it does that mean a recession is evident? >> great to be with you. i do believe a recession is imminent. we are directly headed towards something, the 10 year treasury is setting off a fresh warning signal. i am in las vegas at a conference called don't bet on the dollar. i was hanging out with jim ricker, he said to say hello to varney and company in regards to everybody. the issue is runaway deficit spending.
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the people going on strike, their wages are not keeping up with the cost of everything. the surprising thing is jay powell was 18 months later the table. we went from a 15 year credit cycle, low-cost, cheap credit, and raise rates so high, looking at 5.5%. the challenge is he said my job isn't to communicate with congress about deficit spending. that's incorrect and i believe negligent to say his job isn't to say to congress you are spending more than you noted on your budget. that would be my definition, defaulting on the budget because we passed some of it. we have big problems ahead of us. the big four expenses for the us, medicare, social security,
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deficit spending, that exceeds all tax revenue that comes in by one hundred $4 billion a year. moody's is looking at downgrading us. of course they are. interest rates are going up, the bond market's way of essentially telling us, got to get spending in check because we are on the verge of not being discredited. ashley: you gave a good answer. all i can sadie was cheer up, good to see you. what david has had to say, thank you, perhaps a lost decade, that's all very doom and gloom. we are looking at the movers, very muted session. let's begin with eli lilly. lauren: it is up one. 2%. the head of the diabetes and obesity division, mike mason, will retire at the end of the
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year. why is this important? what we he oversaw the late stage development of madero which is a diabetes drug and they hope to get it to fight obesity but he will be leaving, another executive placing him there. carnival cruise lines. guess what is out of style? the revenge travel, go anywhere, pay anything, now we want relaxing, intentional travel. what's more relaxing than a cruise assuming you don't get sick, all the cruise lines are at the top of the s&p 500 today. sun run, truest price target at $12, down from the initial one, $30, higher interest rates will continue to be a head wind for residential solar. it is down 6-one/3%. stuart: i like relaxed managed
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to travel you get all the benefits. let's move on. kevin o'leary is a frequent guest on the show. he showed stocks on the changing crypto landscape. what is he saying? lauren: pioneers who he calls cowboys will be pushed out by delay of regulation. watch it. >> the promise of crypto still remains. it is still there. all the crypto cowboys, for the founders of this industry, they are going to be gone soon. sam bankman-fried, they were great pioneers but now they have arrows in their backs. lauren: more friendly crypto countries like abu dhabi are attracting business. crypto has suffered 153% spike in hats and scams in the third quarter compared to last year. and $366 million.
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ashley: now this. border patrol has seized enough fentanyl to kill the entire us population. the son of the infamous drug lord l chapoh has banned the sinaloa cartel. meantime, migrant encounters at an all-time record high in september. elon musk just told the border with tony gonzalez, did they come up with anything? from the billionaires visit? interesting. congressman gonzalez will be on the show. kevin mccarthy says he won't run for speaker again after his historic ousting, so who will replace them? chat program will have the latest from capitol hill next. ♪
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they provide the potential for regular income... are federally tax-free... and have historically low risk. call today to request your free bond guide. 1-800-217-3217. that's 1-800-217-3217. ashley: let's look at these markets, are quiet trade this wednesday morning, the dow down one quarter of one%, nasdaq up one 12:45%, nasdaq up 1/4. the s&p down essentially flat at 42. back to this. kevin mccarthy was ousted as speaker of the house, the first time in history the house has removed its leader. aishah hasnie is following at all. mccarthy is out, so the question is who is in? >> reporter: there are a bunch
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of names being floated including majority leader steve scully's. a little bit of coalescing around him but that's not to say kevin mccarthy's name wouldn't be brought up again by his loyalists. i was able to ask him last night what would happen if he was tossed into this race again. >> they have gone through so much, they are down in the conference, they will say they will keep voting for me. i think we should put the country first. >> reporter: not a clear answer yes or no either way. the house is paralyze to. it is in recess. we don't expect a speaker vote until next wednesday. acting speaker patrick mchenry walked by house to house chamber. didn't really get much of an answer, no one has any idea what is going on today or in
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the next couple days. the budget is due in 45 days, it is doubtful that they will. congress is paralyzed and matt gaetz not too worried about it. >> 45 days left until you have to pass a budget which is something you've been wanting to do. doesn't is completely paralyzed the house? >> what paralyzed the house has been the failure of speaker mccarthy. what paralyzed the house of representatives is not taking up appropriations bills. >> reporter: there's a lot of fallout on the capital. some republicans talk about the ethics investigation, congresswoman nancy mase, one of the 8 who voted to remove mccarthy may be removed from the republican governance caucus on capitol hill. former speaker nancy pelosi and leader steny hoyer are being picked out of the capital hideaway offices, the decision
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came moments after mc henry became acting speaker, a move, a revenge move afraid democrats siding with matt gaetz. the house is in chaos without a leader. ashley: a complete mess and you outlined it very well. congressman tony gonzalez from texas joins me now. we just heard that report. does mccarthy's removal completely divide your party? the word being used is paralyzed, chaos, you name it, the name seems to fit. >> no doubt it has been a tough 24 hour for house republicans but instead of going in the field condition, republicans need to pull themselves by the bootstraps and run to the fire. that leader is steve scully's. he has been shot, he fought cancer. he knows how to deal with a
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rough and rowdy house. he is exactly the steady hand house republicans need to get this country back on track. he has a lot of members that will walk through fire for him, me being one of them. it is what i think house republicans need to do. we have a border issue that is out of control. we have a shut down, 40 days looming. serious work to do and the american public are demanding house republicans lead. steve scully's is that leader. ashley: i want to get to the border. el paso hit a record high number of migrant deaths this fiscal year. more -- border security found 310 pounds of meth in a truck at the border. you are on the border with elon musk, brings attention to the board but has anything come of it? >> a lot has come of it. i wanted to host elon because
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of his platform. we did a video to gather that has gotten one hundred 10 million views. it was unfiltered, untapped, you are seeing what is in eagle pass cocking to sheriffs and mayors, it is real. we need more of that to get traction. steve scully's understands the border and we have an opportunity to have some sensible border security measures and alleviate these things. part of that is deporting people. one thing i mentioned to elon musk was right now, the dollar rio sector, we are deporting nobody that's coming over illegally. he goes tony, that is mad. of course it is mad. we need to have strong leadership to bring sensible measures to the table like repatriation flights. there's an opportunity here but we need to cut through the political noise and get back to doing the people's business.
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adam: the sons of el chapo banning the sale of fentanyl in their territory. what do you make of it? >> i trust the el chapo cartel as much as i trust the communist china to end fentanyl to the united states. this is an american issue we need to solve in america. ashley: we will leave it there. terrific to talk to you today. thank you so much. by the way, thank you. staying on the border, senator josh valley introducing a bill to give more power to the states on the migrant crisis. the question is like what? lauren: and why? last night, the state of missouri as far from the southern border. they feel the effects of it because of the fentanyl that comes over and so he is introduced a bill to allow border states to fortify themselves, set up barriers,
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prosecute illegals entering and deport them. in a nutshell, this is states and forcing the federal immigration law. i want to tell you this, texas senator ted cruz wants answers from the tsa, air marshals deployed to the southern border, why aren't they on commercial flights doing their job, ensuring the safety of the flying public? he wants to know how many air marshals have been sent to the border. is it voluntary or mandatory? i will let you know if he gets answers. ashley: thank you. the judge in donald trump's civil fraud case has imposed a partial gag order. can trump get a fair trial in new york? we speak to a former prosecutor at the manhattan da's office all about the case. jury selection continues in the fraud trial against sam
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bankman-fried. kelly o'grady will have the latest from the courthouse next. ♪ 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. when you're looking for answers, it's good to have help. because the right information, at the right time, may make all the difference. at humana, we know that's especially true when you're looking for a medicare supplement insurance plan. that's why we're offering "seven things every medicare supplement should have". it's yours free, just for calling the number on your screen. and when you call,
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ashley: take a look in these markets, quiet start to the trading day, the nasdaq moving ever so slightly higher. the s&p down 0.2%. come in here. look at the other movers, let's begin with the drug people, mode dharna. ashley: stock is down 2% despite the fact there covid 19 and flew vaccines succeeded in early-stage trial, stock is down, did or -- did over on holdings, popular sneaker company, they plan to double your net sales in three years time. at first that news looks good. finally, love this story and i am so curious. airbnb up just about 1%. the financial times is
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reporting because they spoke to the airbnb ceo, they are laying the foundation for longer-term rentals and expansion of airbnb experiences sector. next month, there's going to be a major airbnb update so we will see how they will expand what they do right now in travel. ashley: we are on the edge of our seats. thank you very much. now to this story. jury selection continues in the sam bankman-fried case. kelly, good morning. we know spf was a major political donor but what was this about trying to pay trump billions, not to run into thousand 20? >> reporter: that's a revelation out of a new book profiling sam bankman-fried out this weekend it actually says he was considering paying him 5
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billion to sit out the 2020 race. on top of that, reportedly the crypto king funding midterm senate candidates to beat out those that were aligned with trump and we do know that spf was the biggest donor to liberals in the midterms behind george soros, the second-highest donor and allegedly using ftx customer money to fund this, donated $40 million to democrats but allegedly used this for further democratic donations, and funneling $24 million to republicans. the prosecution we use the money trained to bolster the fraud charges in this trial, private messages show the prosecution intends to use as evidence in locating spf and using that money to, quote, purchase influence, we expect jury selection to wrap by midmorning and get opening statements from both sides and expect the prosecution to call their first witness by this afternoon. a number of jurors have been
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dismissed based on negative feelings about crypto currency, downfall of ftx played out publicly on social media. i got a peek at court documents about what we can expect for their opening statement. a lot of hearsay accusations and potential suggestion the lack of regulation in the crypto currency in the us played a role. back to you. neil: very interesting. thank you very much. former prosecutor for manhattan da's office joins me and now. bankman-fried did not get a plea deal which i find interesting, they didn't want to please this out. how do you see it playing out? >> is the exception and not the rule for prosecutors to not offer any kind of a pulley. there are three things we can infer from that, they believe they have a strong case, extremely confident that they have a rock crusher of a case,
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they are confident going to try all. the second thing you can infer is they think he's a pretty bad guy. even willing to plead guilty he shouldn't have received any leniency and the third thing we can infer is the government still hasn't figured out a way to wrap its hands around the crypto industry in a regulatory way but this is an alternative method of sending a message to the industry that we are watching and will come down hard if we see any fraud or inappropriate behavior. ashley: i want to pick up on the last point. as kelly reported, the defense will use this lack of regulation, partly to blame for all of this. i find that a hard argument to prove because fraud is fraud. >> they will use lack of regulation to tie in instead of relying on counsel, that's a
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tricky defense but may be the only viable one because the evidence is so strong. they are going to have a lot of documentary evidence. the advice of counsel defense is a challenge because opens the door to those lawyers who made their advice to testify. they are not just going to say it is our fault. professional witnesses to some extent, they are going to push back against that defense. i understand why they go with that. it will be all real uphill battle and the jury won't hear about the advice of counsel defense unless they have some evidence out there that you do rely in good faith and that good advice. ashley: fascinating to follow. donald trump back in court today, the judge did place a gag order on trump after he went after the judge's principle on truth social. what do you make of this? >> i would call this barely a
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gag order, typical gag orders broader and designed to prevent witnesses from being intimidated or designed to prevent insurers from getting information to see the case. if it were a broader gag order it might face constitutional challenges, trump team will let it go. ashley: we have to leave it right there. fascinating as always but thanks for making sense of it all. thank you. i want to get this in. news breaking that congressman jim jordan is indeed putting his name in the ring to be the next speaker of the house, jordan has started making calls to drum up support. they are you have it. jim jordan in the race apparently. steve scully's's name -- steve -- scalise steve's name is up now. they used an algorithm to jack up their prices, details on that.
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and the season of strikes, pro union president joe biden, autoworkers have been on strike almost three weeks, and ford making them a new offer. grady trimble has the latest details next.
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your small business needs to keep up, excel, and grow. constant contact. helping the small stand tall. ashley: look at these markets, a mixed bag, down 0. one%, the nasdaq is positive by half of 1%.
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very muted considering the selloff. a big reason for the selloff yesterday, the treasury yields, the latest on the 10 year, 2. 3 basis points, slightly rising, 4.77%. opec plus meeting today showing no inclination to raise production but oil down $86.49 a barrel. bitcoin up $50 up $77, 27,415. talking walkouts, the autoworkers strike down 3 weeks. grady trimble in the centerline michigan, ford made an offer to the workers, do we know what is in it? >> forward says the offer includes a 20% pay raise for
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the 4 years of this contract, increased 401(k) contributions and faster pathway to the top pay tier. the uaw isn't commenting on the latest proposal, big sticking point for the uaw with ford in particular, electric vehicle battery plants the automaker's building and yet to hire workers for. the uaw wants guarantees those will be union jobs. ford says no current employees will lose their jobs but the future employees at these operations can choose to be union represented and enter into the collective bargaining process. as more workers go on strike in the healthcare industry, there have been more walkouts in the first 2 and a half years of the biden administration, than in donald trump's entire four year term. the white house is doubling down that president biden is the most prounion president in us history.
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>> the president is always going to support union workers and working people. that's not new. he has done that for the past two years. he believes in collective bargaining, should be able to come to the table in good faith. >> new numbers from ford for the third quarter vehicle sales, they are up 8% compared to a year ago, gm third-quarter sales up 21%. remember this strike started in the last 15 days of the third quarter, no evidence that it is impacting sales, but that could change if this thing drags on like it looks like it is going to. ashley: you are right. grady alluded to this. 75,000 healthcare workers on the picket lines. this is the scene in los angeles.
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the kaiser permanente union that includes nurses, lab technicians, therapists, that is denver, my apologies, now the camera moves. we monitor this walkout for you, that is los angeles, total of 75,000 afghan workers on strike today, live in los angeles. now this, sounds very sneaky, amazon allegedly using a secret algorithm to find ways to raise prices. explain it to me. >> reporter: the algorithm a little the game at prices. this is from a redacted portion of the antitrust lawsuit against amazon, the algorithm known as project nessie, a secret code, amazon used it to figure out how much it could raise prices. if it did and competitors also
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raise prices, price stayed high but if competitors cut prices, amazon cut prices too. the ftc said amazon made $1 billion in revenue using project nessie. their intention was to stop price matching from unusual outcomes where prices became so low they weren't sustainable adding they scrapped nessie a few years ago but when you think about it, i always price compare, prices are basically the same if not cheaper. ashley: who says nessie is a myth? now this. jet star aaron rogers going to travis kelsey, has nothing to do with what's going on on the field. return to office policies don't seem to be working. many office buildings in new
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york city are still vacant. city officials want to use these spaces by converting them into residential housing. gerri willis has the report next. ♪ dexcom g7, the most accurate cgm, can alert you before you go too low. now, that's more peace of mind with dexcom g7. ♪ ♪
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ashley: big cities are looking to with the story. telling about this plan about residential housing. >> it's very ambitious, big bureaucratic red tape. the rent is too high. in the financial district, the new york stock exchange, developers want to turn this empty office space into apartment buildings. 571 apartments.
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office attendance in big cities across the country is half of what it was in 2019. this would leave plenty of space for conversions, and standing in the way. >> you have supply-chain and doubling of interest rates, banks lending construction money as they used to lend. all these things have become a perfect storm. >> the project has been held for a year, they are waiting to go forward even though new york city mayor eric adams says we want to help you, we have a conversion accelerator program, it is not working. affordable housing would be welcome. median rents astronomical. the problem is the same across
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the country. the average for one bedroom, $1700 and that is $500 above the federal poverty guidelines. if you are not wealthy, if you are poor, struggling to get along you are not getting housing. when example of the bureaucratic red tape, only buildings constructed before 1960 one can be retrofitted. that illuminates a lot of buildings in manhattan that could be turned over to affordable housing. back to you. ashley: it is a sad story and no easy solution but thank you very much. the chief executive at the real estate market, you just heard the report, turning empty office space into residential housing a good idea? >> practically speaking it is easier said than done.
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which i had better news for you but the commercial office is going to get worse than before it gets better. 50% of workers are back to work, vacancies about 20% which is higher than it was before. i think it will get worse and it will be interesting to see how it plays out. ashley: i want to move on, wall street investors backing off from buying homes, they think home prices are overvalued, homes in 99% of counties are unaffordable to the average home buyer, a remarkable statistic. the average person can't afford to purchase so what is the solution? >> we have an affordability problem. rates are high, they are
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sitting on 3% mortgages. we are seeing a lot of things happening as relates to that. we are focusing on coownership. we are a marketplace, the leading marketplace, we empower consumers who aspire to own a home but can't justify or afford one hundred% of an asset they will only use 10% of the time with a solution. the solution is coownership. the low --zillow just released a study that showed 25% of buyers, we are seeing coownership as a meaningful solution but primary home space as well. that train will continue. ashley: we've got 30 seconds. how is your strategy different
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from a timeshare, when you buy real estate through picasso, you own a home. that home appreciate in value over time. when you purchase a timeshare, you have the right to use time in a hotel. it's like comparing an asset to a liability. ashley: great answers, thank you, appreciate your time. still ahead. claire travis will be here, urging questions about the rampant crime in dc. doctor marty makary about the healthcare workers now on strike. the 11 am hour of "varney and company" is next. ♪
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>> this hateful eight i would call them of people with personal gripes with mccarthy. effectively they handed control of house of republicantives to the democrat -- representatives to the democrats. the center of gravity moving across to the senate. >> i don

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