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tv   Mornings With Maria Bartiromo  FOX Business  January 21, 2022 6:00am-9:00am EST

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that doesn't for this trip. i just don't know what i would choose. the backyard or the flat overlooking the avenue. either way, great choice. boston is rich in history culture, food galore and real estate equally as mouthwatering. boston will always have a piece of my heart and after this maria: good friday morning, everyone. thank you so much for joining us. i'm maria bartiromo and it is friday january 21st, your top stories right now 6:00 a.m. on the east coast. panic in the air. stocks are searching for direction after another major selloff yesterday, investors worried that the federal reserve will raise interest rates multiple times this year as inflation spikes. also worried, confusion and chaos at the white house. officials still cleaning up president biden's press conference remarks this week as his approval ratings spiral down to the lowest point in his
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presidency yet. a new associated press poll putting joe biden's approval now at just 43% compared to 56% of american who is strongly disapprove of the job biden is doing and not even a third of americans want today run again in 2024, we will be watching again what's next in washington all morning long. market this is morning coming off of a another major selloff, searching for direction with mixed performance. dow industrials down 45, s&p down 1 and 3 quarters and nasdaq extending yesterday's selloff another 48 points lower. all three major indices finishing in the red yesterday, investors rattled by more inflation, rising interest rates and slowing economic growth. the dow industrials were down 313 points, the nasdaq into correction territory with decline of 186, one and a third percent. then there's netflix, weak outlook putting the sector down. we will bring you the numbers
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coming up. what a kick off to new year, today dow industrials down 4 and a half percent, the s&p 500 down 6% and nasdaq down 9 and a half percent in 2020, first two weeks of the year have not been pretty for these markets. i will speak with bryan, president and ceo of b of a ownership of merrill lynch, we will get the news on economy, loan growth. bank of america chairman and ceo bryan coming up. take a look at euro zone with ftse 100 down 58, the cac down 86 and dax followed by 235 points, that's 1 and a half percent lawer in germany. in asia overnight, stocks finished mostly lower all moving fractionally but all in the negative column with the exception of hong kong up a fraction.
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mornings with maria live right now. ♪ ♪ maria: morning movers this morning, streaming services, taken a look at netflix plunging this morning with decline almost 20% on netflix after reporting lower than expected subscriber both for the final quarter of the year. the stock is down sharply taking others with it. disney, down 3 and a quarter percent. at&t, down half a percent and roku down 4 and two-thirds percent. all down in heavy volume in morning. check out peloton, stock is higher this morning after tough couple of months. it plunged nearly 24% yesterday following report that peloton was temporarily halting
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production of some bikes and treadmills after significant drop in demand. the ceo is now saying that peloton is reviewing the size of its workforce and resetting production levels. this morning peloton interactive up 6 and a half percent. rest of the market mixed searching for some direction following tough week and tough first two weeks of the year. the dow industrials up 37, the s&p 500 down 4 and a quarter. nasdaq down 60 points right now this morning, futures indicating mixed opening. all three major indices closed lower yesterday, dow industrials lower 300 points at the close. nasdaq in correction territory with decline. investors turning attention to next federal reserve meeting where all eyes will be on timeline, higher interest rates, monetary policy. joining us anderson capital management peter anderson. also joining the conversation all morning long fox business
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dagen mcdowell and the wall street journal assistant editorial page editor james freeman. great to see everybody this morning, thank you so much for being here. peter, kicking things off with you with a market that is focused on the federal reserve making bets about how many interest rates hike we will see, what might we learn from the fed meeting next week, what are you expecting in the coming months from the fed? >> well, i'm hoping, maria that we do get a little bit more clarity but i'm not certain they are going to be -- they are going to continue to be vague about how many rate hikes they are going to make. i'm expecting 3, maybe even 4 in the next year period and i think the market is reflecting that, although, erroneously, i think they are reacting in the wrong way to rate hikes but i do expect that and i do expect a little bit more clarity about beyond the year and let's also think about two or three years from now, that seems like an infinite time from now but i hope that the fed does give us more guidance on a broader
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stance. maria: yeah, you know, it's interesting, we have the betting going on in terms of rate hikes coming from the federal reserve, there's a poll from reuters that shows the economists are predicting 3 rate hikes as you just said, but, you know, many people are wondering how the market will react, we had larry lindsey on yesterday and he said he's expecting the fed to start raising rates but then given market reaction to get out of the way, stop and take a pause, then there was the bear trap report larry mcdonald yesterday, here is what he said about the federal reserve, watch this. >> the fed has really done a job here on the average investor because they have been selling us hard, hard, hard that inflation was transitory. so what happened was you had an incredibly bill-up as you just said in growth stocks and now the fed is coming clean admitting that inflation is much more sustainable on a higher trajectory and so they are out
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there trying to claim that they are going to do four hikes this year and at the end of the day the fed is promising on how they pull that and you have a big economic reaction. maria: isn't that the issue, peter. we do not know about this whole move from easing to tightening, would the fed get it right. the market has been underestimating how enormous this change will be, will they get it right and how would markets react? >> maria,s is such a difficult thing for a fed to do. for those who have been around for some time, you know, say since the 90's, we have seen various feds trying to handle this action and i'm actually longing for the time you remember early on feds hardly gave any guidance and they would talk almost in circular manner and i look back at that and i think that's an even better way
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to communicate to us because now the overcommunication, i think, your comment was -- was right on in that we are all confused. you know, so much information and so much data correction as you turn the corner. it's very hard for you to factor all of the statements of being somewhat consistent and they do appear inconsistent and i think the fed is in a tough stop because we haven't been here in the 2 year period and it's extremely difficult. hats off for the fed for giving us this kind of clarity but it's in the really clarity isn't it. it's more confusing, i think you can take any of those comments and go any direction that you want and lastly i think there's a whole new generation of investors that haven't been through fed hikes and they are not sure how to even navigate through those. maria: yeah. so -- so what are investors doing, they are selling growth, the nasdaq down 5% this week, worst week since october 2020.
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crypto takes a hit. $147 billion wiped out of crypto just in the last 24 hours, bitcoin diving 8%, a falling below $3,000 as the fed launches review of potential crypto, peter. do you want to sell growth, do you want to sell higher risk assets like crypto, like the nasdaq? >> well, i'm going to take the somewhat controversial position, maria, that i do not firmly believe that higher rates impact growth more than value. you know, we've heard this mantra for a year now and if you do a little bit of a math -- i'm not going to do that right now, but if you do a little bit of math behind the hypothesis, higher rate impact growth more than value, i can come up all kinds of scenario that totally contradict that and, in fact, do
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i think certain growth stocks are in the sweet spot, certainly not like peloton but those who have devoted followers such as computer security. that's not a lockdown theme. that's something that we are always going the need so i'm totally against the fact that we should be rolling into value and selling growth. i'm just totally against that. maria: any value in crypto, peter? >> i think you already know the answer. i think crypto is headed for a major correction. i don't know but hardly anybody understands the mathematics behind it and i think you have to understand that technical construction of crypto and you ask most leaders that are bragging about crypto as being the next set of thing. if you ask them any more detail about that, they really do stumble in terms of trying to tell you what the fair value is
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of things like that because it's a total different -- if i dare say, but i'm not sure it is, we need a lot more work on that. maria: yeah. well, it's been quite 24 hours there, 150 billion wiped out of the crypto market. peter, good to see you, thank you so much. appreciate your time this morning, peter andersen on all the moves in markets this morning. we are just getting started. coming up the chairman and ceo of bank of america is with me this morning, brian monahan will join me live. his economic forecast for the year ahead 2022 and then biden's approval ratings hitting new laws. the majority of americans disapprove of the president's handling oh testify economy, the country in general. just one year in. we will break it all down, we will talk about those bad approval ratings next. streaming stocks are sinking, how companies are planning to get back in the game.
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don't miss a moment of it. you're watching mornings with maria live on fox business. stay with us. ♪ ♪ ♪ okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq meet ron. that man is always on. and he's on it with jardiance for type 2 diabetes. his underhand sky serve? on fire. his grilling game? on point. and his a1c? ron is on it. with the once-daily pill, jardiance. jardiance not only lowers a1c... it goes beyond to reduce the risk of cardiovascular death for adults with type 2 diabetes and known heart disease. and jardiance may help you lose some weight. jardiance may cause serious side effects,
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maria: welcome back, some of the top stories that we are watching this morning. secretary of state antony blinken with his russian counterpart right now to try and cool tensions over the border build-up of troops on ukraine. some on capitol hill say it may be too late. members of congress are being told that russia will likely invade ukraine eminently despite the narrative that russian leader vladimir putin has not made up his mind yet. that's unlikely. the u.s. is approving 3 baltic members send american made weapons to ukraine with the intention of sending 5 of the u.s.' own mi17 transport helicopters. now the fox business exclusive, hunter biden and a former biden aide invested in two chinese companies with ties to the top levels to have chinese communist party and its military. emails shows that as recent as
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2017, hunter's private equity firm held a 5% stake in harms amusement parks, interest in harms sports entertainment. both tied to the chinese military. the emails haded that harves was partnering with nba stars, magic johnson and lebron james to host nba game in china 2020harves announced it was partnering with nba china to bring entertainment centers to the country. no wonder lebron james is always apologizing for the ccp. the revelation coming as more are asking for answers from the secret service on hunter biden's government sponsored travel to russia and china among other places during his time under his father's time as vice president. so far we have not heard the details from the secret service. hospitals in areas hit early by the omicron variant such as new york city and washington now seeing fewer patients than before. not as many staffers reporting
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infections either and patients are not staying in the hospital as long as omicron has yet to peak nationally. intel announcing plan to making factory outside of columbus, ohio bringing nearly 3,000 new jobs to the area. this is intel's first new manufacturing site in 40 years and comes during a worldwide chip shortage that is not expected to slow down in 2022 at all. construction is expected to begin later this year with the first chips being produced by 2025. intel shares are up fractionally. new polls this morning reveal even more americans are disapproving of president biden as his first year in office is now in the books. the associated press reporting it is as just 43% approval. it was at 61% in the same poll last year. the poll also reveals only 28% of members hope biden will actually run for reelection in 2024. meanwhile 56% of republicans are
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hoping president trump will return to the white house in 2024. a lot of new polls given us an even further window into what's going on in washington. dagen mcdowell, your reaction? dagen: i can't believe that there are more than 40% of americans who approve of joe biden's performance and i will go back to what i said to president trump, it's policy over personality and the policy out of this biden administration was born out of these two democrats winning senate seats in georgia and joe biden all of a sudden delusionally thought he had a mandate and wanted to be fdr and lbj and that's not why the american people elected him. and over the last year, joe biden and company have not changed course and they even haven't changed the verbiage. how many times are we going to hear this is a pandemic of the unvaccinated which is horse hooey, battle for the soul of america. no it's not, you're ignoring the
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things that are hitting directly at the soul of americans and that's inflation and the border crisis and things that the economy struggling and energy prices soaring. people are praising joe biden for being able to just stand up at a press conference for two hours and talk at the same time. i think that's where we are as a country. it's like we are just happy if the guy can like form sentences and i don't even think he did that at the presser two days ago. maria: yeah, let's try to have some better standards, shall we? not only that, james, but there's been in investment in the future. we've all known about this chip shortage. this is not just a shortage of chips in the industry. this is issue for automakers and technology companies and issue for home construction. i spoke with a major ceo yesterday and he told me this chip shortage is not slowing down any time soon. we will have a major issue in
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2022. he's worried about the year. your thoughts on what these polls are saying with joe biden's hands on the wheel and no expectations of any of these issues going away any time soon? james: yeah, i think ship i thip shortage, how do you make it easier and cheap tore build stuff in america. they are not doing that. they are doing the opposite. maria: that's right. james: the polls, you do wonder people saying he's done a good job. it's not just disapproval across issues, americans finding him untrust worthy, incompetent and partisan and i think what he has to do is break from bernie sanders and start addressing the issues like inflation that americans actually care about. maria: yeah, for sure. by the way, then there's the whole corruption angle that we are going to get to. did you see who joe biden is
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nominating for the overseer of the banks, sarah bloom raskin. she happens to be the wife of representative jamie raskin, democrat representative who is, of course, leading the effort to investigate january 6th, he led the impeachment against trump. that is the wife and the person that biden is nominating. quick break. one year down, 3 to go, how much damage can get done, congressman chuck is here to talk about that, stay with us. ♪ ♪ ♪
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>> one thing i haven't done so far to get republican friends to get in the game to better the country. think about this. what are republicans for? what are they for? name me one thing they are for? maria: what are they for, that was president biden on wednesday blaming republicans for his broken legislative agenda, first year marred by surging inflation and ongoing border and supply chain crisis and the supreme court blocking vaccine mandate calling it unconstitutional. congressman, thank you very much for being here. your reaction to what you just heard from joe biden?
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congressman: i'm shocked really from the inception president biden has taken this country totally in the wrong direction. i can remember vividly and fondly in the trump administration every key indicator, the economy, jobs, foreign policy, we were clicking everywhere, the world was looking at us, the country was coming back. there was optimism. sadly president biden from the inception has doubled down on zero and when you double down on zero, you get zero but how you could blame republicans is far beyond anything else. they are rutter less, they are confused, they are wrong. i really wish biden had come out the other day, look, he got it wrong in the first year and he wanted to recalibrate but i just don't see it. maria: no. and not only that but this speech, of course, was once again so divisive from the man who told us that he was going to
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bring unity on inauguration a year ago. house minority leader kevin mccarthy was with me yesterday and he talked about the growing list of house democrats who are leaving their names off the tickets in november, watch this. >> we watched 28 democrats announce retirement, i think they will go well over 30. in 2010 when the democrats lost majority there was only 17 retirements because they know what's coming. maria: so what is coming from your standpoint, congressman, what can we expect in terms of priorities should the gop take the majority in november? congressman: plain and simple common sense, economic common sense, policy common sense, looking at our great constitutional republicans saying we need to embrace the values that have made this country great. biden has really acquiesce to the radical left of his party and that was the biggest sadness
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i thought. i really thought joe biden, even though i disagreed with him and would never have voted for him was going to try to be a unifier. he's been a divider, he's been utterless and confused. so what the republicans are going to do is get back to basics. make sure that our economy gets strong again. attack inflation at its root causes and things like that. get americans back to work. stop the crazy vaccine mandates and things like that. just good-old fashion common sense and guess what, people in the center will embrace that and america will come roaring back. maria: well, it has been quite divisive with the president constantly dividing us between vaccinated and unvaccinated, rich and poor, black and white. you are one of dozens of lawmakers in the house and senate that are now asking the department of homeland security inspector general to investigate joe biden's actions at the border.
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homeland security secretary alejandro mayorkas is patting himself on the back. he said that the u.s. has, quote, fundamentally changed immigration enforcement inside of the country. he means that in a good way, congressman. what do you want the investigation to uncover? congressman: well, maria, i'm the ranking member, highest republican in appropriation subcommittee and we have a porous border. there is no border policy. they are just wandering all over the place, millions of illegals are coming in. it's remembering havoc in this country. i want accountability. i want a policy and i want to make sure that america has a border policy that is secure. it's border security and immigration, not just immigration. maria: we will be going back to the border for a fourth time here on mornings with maria next week and we will be investigating what it happening now. we know all about the elicit
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narcotics coming over the border every day and we will report back. congressman, good to see you, we will be watching your investigation and certainly your prompts dhs to investigate. congressman josh in dc. ukraine is bracing for a potential invasion by russia, how the united states should respond? we will get into it next. ♪ ♪ ♪
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maria: welcome back, good friday morning, everybody. thank you so much for joining us. i'm maria bartiromo and it is friday january 21st, a look at markets this half an hour where we have seen a nervous trading situation. we are looking at the morning's performance extending. yesterday's big losses, dow industrials down another 14, s&p down 21 and nasdaq down 126. it has been a tough the first two weeks of the new year. all three major indices finished in the red yesterday, investors
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rattled by inflation rates, slowing growth and the economy. the dow industrials were down 313 and s&p 500 down 50. nasdaq extending further into correction territory. down about 11% from the highs. netflix weak outlook also weighing on tech this morning. netflix down sharply this morning and taking the streaming companies down with it. what a kickoff to the new year. s&p 500 down 6% and the nasdaq down 9 and a half percent in 2022. this week alone the nasdaq was down 5%. european markets this morning are also lower take a look at declines across the board in the euro zone, ftse 100 lower by 66 and cac 101. in asia overnight, markets finished lower, frankal moves pretty much across the board. biggest mover was korea as well as japan and china down about
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almost 1%. meanwhile toyota is pausing production. cheryl: the company halting production today, saturday and monday at the plants due to in part pandemic related shortages, the chip shortages you were just talking about that. this pause is going to reduce january production total by 47,000 vehicles, now going to fall short of the 9 million production goal numbers they had for the entire year. well, the supreme court will allow texas abortion law to remain in effect indefinitely. the decision coming as lower court waives prejudicial question related to enforcement. the texas law bans nearly all abortions after 6 weeks and partially upheld by the supreme court last month justices kagen, sotomayor and briar issuing sharply word of decent.
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the recent ruling undermines the court's earlier ruling. fbi director christopher wray speaking out after a british national held four jewish worshipers hostage over the weekend in texas. >> the fbi is and has been treating saturday's events as an act of terrorism targeting the jewish community. cheryl: remember the fbi is backtracking here after an agent initial i will said the incident was not an antisemitic attack. meanwhile in the uk a counterterrorism arresting two individuals in connection with the standoff. two individuals detained two teens for questioning and later released without charge, the sons of the suspect who did die. and then there is this, legendary singer and actor meatloaf has passed away. ♪ ♪
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♪ cheryl: the grammy winner born harvey lee jumped to fame in 1970's with one of the best selling albums. he made movies like fight club and drawing generations of fans with i will do anything for love. i almost want to sing it, maria, meatloaf was 74 year's old. back to you. maria: i was just singing it in my head, cheryl. condolences. thank you so much. president biden lashing out at fox news correspondent jacqui heinrich for asking him a question about russia-ukraine tensions. he was caught in the hot mic.
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secretary of state antony blinken is meeting with russia foreign minister in geneva this morning and russia will likely invade ukraine. the extent of russia's buildup along border is significant. joining us right now nile gardner, nile, thank you very much for being here this morning. what are you expecting this ukraine from the russians? >> well, thank you for having me on the show today, maria. and i have to say that watching president biden's press conference earlier this week where he discussed ukraine and russia in detail, what an absolute disaster that conference was and, of course, sparked outrage in ukraine when biden talked about hypothetical russian invasion as minor incursion. the ukrainians were absolutely appalled by biden's comments and so were many allies across europe as well. and so a disastrous series of statements from president biden
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who really does look i have to say extremely clueless on the international stage and the russians taking advantage on what they perceive to be as weakness from the united states. a lot of mixed messaging and there's a lot of concern at the moment that, you know, u.s. leadership is in decline at this time and the russians certainly are very much emboldened at the moment as we are seeing with a hundred thousand russian troops massing on the border with ukraine as we -- as we speak. and so extraordinarily dangerous times. the ukrainians certainly are deeply, deeply concerned on multiple fronts including their belief that, you know, the leader of the free world, president biden is basically sending the wrong miami actually to vladimir putin and the press conference earlier this week was an absolute train wreck and embarrassment for the president
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of the united states. maria: yeah, i mean, that's pretty much universal. everyone is saying that the press conference this week was a complete disaster. they have the nerve to attack a fox news reporter for asking a perfectly viable question. why is he sitting back and waiting for putin to make his moves when we all know what's apparent but nile i want to get your take on the broader implications here because we see stories of middle eastern nations cozing up to china thinking about using hauwei and thinking about partnering with china on a number of issues. we see the russians getting more aggressive in ukraine and, of course, then there's iran, the iranians backed the houthi movement and now the administration is considering designating the yemeni's houthis as terrorist organizations. they conducted missile attacks on the united emirates on monday
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but then biden comes in and he lifts it weeks into his term nile. you say the houthis are carrying out attacks in part because they do not any retribution from the administration, so talk to us a bit about the impact of weakness in the white house. >> yeah, great question, maria. and, you know, i just actually returned from london and i spoke to many senior british officials and parliament and the viewpoint in the uk at the movement that policy has been catastrophic for the world. we are seeing on multiple fronts not only ukraine front but we are also seeing that with growing chinese assertiveness. we are seeing iran getting closer to developing a nuclear weapon. we are seeing iranian backed,
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attacks latest on united arab emirates. that's the biggest lesson here from biden's foreign policies. our enemies are growing more assertive and stronger in some cases while the united states start to retreat on the international stage and joe biden's weakness, i think, has been a disaster for the free world. maria: and you write this in your new op-ed in the telegraph. you write president biden has humiliated america and in this piece in the telegraph you write that america's enemies, quote, see biden as a soft touch whose time in office is a welcome opportunity to challenge america's might and undercut the country's strategic power. nile, that is exactly what we are seeing across the world in terms of foreign policy. how much more damage can be done in these next 3 years of biden
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white house? >> yes, i think. we have seen the humiliation of the world's superpower on multiple fronts exemplified in my ways by the disastrous withdrawal of afghanistan. the next 3 years could be even worse than what we have seen in the first year. joe biden has no real sense of leadership. he's a president who, i think, is even more clueless than barack obama was and obama's foreign policy was a monumental disaster. so these are incredibly dangerous times and i'm very concerned about, you know, the future of the free world when you have figures like joe biden leading the united states, the world's biggest power. yeah, well, we all are and viewing this as dangerous, nile. don't forget that joe biden's foreign policy team is obama's foreign policy team. it's the same people that did the iran deal.
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it's the same people that pedaled the stories of russia collusion. it's all the same people in the biden foreign policy department. nile, we will keep watching and certainly we hope that you will come back to talk with us. nile gardner joining us this morning, great op-ed, thank you very much. quick broker and big week for bank earnings, the ceo of bank of america brian moynihan, we will get his take on the year ahead on the economy, loan growth and interest rates, stay with us
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maria: welcome back, netflix stock is plunging after reported lower than expected subscriber growth. stock down about 20% in the premarket. this is the lowest and biggest drop for netflix since june of 2020. joining me right now cfra media and entertainment analyst tuna amobi, happy new year to you, tuna. what's your assessment of the quarter and the subscriber growth? >> good morning, maria, and happy new year. great to be with you. there's no question that the q1 guidance for 2 and a half million, i think that's what you
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see spooking investors there. it just seems to me that the report calls into question the longer-term secular growth thesis for netflix and more importantly for the overall streaming market. i think there were actually some bright spots from the results. the u.s. and canada questions around saturation of the domestic market. i think the report eased those concerns but i think what's pretty clear, maria, is that coming out of the pandemic, all of the forward impact is having a very dramatic effect on the subscriber outlook for the entire sector. the company called out and micro economic issues in international markets. that being said, we still think there's a significant amount of runway left in international markets over the long term and markets regions like asia pacific and they are still in early stages of broadband
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penetration. all in all you see shares of strategic platforms declining, likes of disney and others report to see whether these are kind of broader trends or there's anything really beyond volatility impacted the longer term outlooks. but netflix we still have to buy, dropped target price 525. next year it's going to be volatile and choppy for the stock and you will hear more about those as we go forward. maria: well, look, the last time we spoke, tuna, we were talking about how there are expectations that most americans are going to have two, three, four even five different streaming services and they are going to pay up for it. netflix, you know, raised prices, all the streaming companies raised prices during the pandemic and -- and lack at disney, at&t, roku this morning they are also down in the premarket on the netflix subscriber numbers.
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we have at&t and comcast reporting earnings next week. they own hbo max and peacock, so we will get more information here but has your expectation changed in terms of what people are willing to pay up for streaming services and whether they are going to be willing to have two, three, four, five different streaming services? >> i think one of the things that we have become more alarmed to is the potential impact of inflationary pressures on pricing as you mentioned. in the u.s., you know, just seems like the high end of the income spectrum is pretty much set, so i think, you know, the lawer end is where i see perhaps more of the low-hanging fruit. the international markets are in different market to market and what we are seeing markets like india where netflix just dropped the price of the basic plan by 60% in the face of competition from amazon video and -- and
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others. i think what it suggests to me that there's a likelihood of price competition breaking out in international markets and potentially coming into the u.s. with demand elasticity that we are seeing. that being said, maria, the content investment, i think puts them in very good position to continue to increase viewership as well as retention and one culprit is the acquisition growth. that's where i see the problem. we will be watching to see how that all evolves. maria: all right, well, i see what you're saying. it sound to me like using international is the growth story here and even though we are seeing subscriber growth slowdown and prices up. maybe prices will pull in because of this pressure that these companies are under. tuna, we will watch and thinking about you next week when comcast reports because we will see if we see a similar trend. good to see you, tuna. tuna amobi joining us there.
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when we come back bank of america ceo brian moynihan, we will talk about the future of the bank, bank increases and what the chairman and ceo is seeing in capital markets as well. owner of material limp, remember. b of a down but has had a phenomenal 2021. pelosi pulses back comments on trading. what the member says about members in congress trading stocks while they are also regulating business. it's the hot topic buzz and it's next. ♪ ♪ ♪ ♪♪ it has our back. and goes out of its way to help. ♪♪ when you start with care, you get a different kind of bank.
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maria: welcome back. time for the hot topic buzz. so once again house speaker nancy pelosi is being asked about lawmakers regulating business while also trading stocks. watch. >> it's the impression that is given by some that someone's doing insider trading, that's a justice department issue. take that to the justice department issue, that has no place in any of this. but to give a blanket attitude of we can't do this and we can't do that because we can't be trusted, i just don't buy into that. but if members want to do that, i'm okay with it. maria: a lot of talk but saying nothing. she said all of that after she
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said that congress should be able to trade stocks. it was revealed of course that energy secretary jennifer granholm violated stock disclosure laws nine times in the last year. dagen, let's face it. nancy pelosi and her husband, paul pelosi, bought microsoft, they bought tesla, ahead of them writing new legislation for electric vehicles and in that clip right there, she's saying i'm okay if members want to do the that, so she's not saying let's ban trading. she's still in the same place as far as i'm concerned. what are you thinking, is she softening her stance here, does she want to be able to regulate business and trade stock. dagen: she lives in the rules for thee, not for me. that's kind of her general sense. i don't understand why anybody in public office wouldn't just own mutual funds. maria: or etfs. dagen: when i say funds, collections of -- where you're
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not pick individual stocks. since i became a journalist i owned mutual funds for that reason so no one could accuse me of having a conflict of interest. maria: that's exactly right. james, it sure doesn't look good when you've got paul pelosi buying tesla and nancy, the wife, writing legislation for electric vehicles. james: yeah. if they're allowed to own options, obviously they have the power to destroy value as well and profit from that if -- depending on what legislation they introduce. i do want them invested in the u.s. economy. i think too often they legislate without too much thought about the impact on growth but yeah, i think you and dagen have the right answer. broad based funds, index funds, etfs where it's not about individual companies, it's probably where they ought to go. maria: dagen and james, stay right there, the next hour of "mornings with maria" begins right now.
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♪ maria: good friday morning, everyone. thanks so much for joining, i'm maria bartiromo. it is friday, january 21st. your top stories right now, panic in the air, stocks are extending losses this morning after another major selloff yesterday. investors are worried the federal reserve will raise interest rates several times this year. confusion and chaos at the white house, officials are cleaning up president biden's press conference remarks this week as his approval rating spiraled down to the lowest point in his presidency this morning, a new poll shows just 43% approve of the job biden is doing, compared to 56% who disapprove. not even a third of americans say they want him to run again in 2024. why some say this could tee up a hillary clinton ticket, coming up. markets this morning are lower, take a look. we are looking at stocks extend yesterday's losses after another
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major selloff, dow industrials down another 50 points, the s&p down 15, nasdaq down another 101. that's two thirds of 1%. this after all three major indices finished in the red yesterday, investors rattled by more inflation, rising interest rates and slowing growth for the economy. the nasdaq fell further into correction territory, with a decline of 186 yesterday, it is down about 11% from the high. the dow industrials down 313, netflix's weak outlook also weighing on the tech sector this morning. what a kickoff to 2022, year-to-date the dow is down about 4 and-a-half percent, the s&p 500 is down 6% and nasdaq down almost 10% in 2022 alone, that is just two weeks. i'll be speaking with the chairman and ceo of bank of america this morning, brian moynihan, at the top of the next hour, i'll get his views on the economy, loan growth and his expectations for interest rates going higher. european markets are pulling back, declines across the board
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in the eurozone. ft 100 right now down 74, the cac down 114 and the dax index lower by 277. that's 1 and three quarters percent lower in germany. in asia overnight, markets mostly lower, korea, japan, china, down about 1% on the session as you can see. "mornings with maria" is live right now. now some of the top stories we're watching this morning. secretary of state antony blinken meeting with his russian counter part to try to cool tensions over ukraine and the russian buildup of troops. members of congress have been told russia will likely invade ukraine, despite the narrative that russian leader vladimir putin hasn't made up his mind. that is of obviously unlikely. the u.s. is approving three baltic members send american made weapons to ukraine to support ukraine with the intention of sending five transport helicopters to ukraine as well.
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a fox business exclusive, hunter biden and a former biden aide invested in two chinese companies with tie toss the top levels of the chinese communist party and its mill he tri. e-mails show as recently as 2017 hunter biden's private equity firm held 5% stake in harv's amusement park backed by china's mill i tri, the e-mails say they were partnering with magic johnson and lebron james to host an nba global game in china. they announced they were partnering to bring basketball themed entertainment centers to the country. no wonder lebron james is constantly supporting the ccp. this comes as more ask for answers from the secret service on hunter biden's government sponsored travel to places like russia and china during his father's time as vice president. covid seems to be getting
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better, hospitals in areas hit early by the omicron variant are seeing fewer patients than earlier, not as many staffers are reporting infections either. patients are not staying in the hospital as long. this as some experts say omicron has yet to peak nationally. it is time for the word on wall street, top investors watching your money and a nervous market. joining me now is chief economist lindsey piegza, mike murphy and ken mahone. great to see everybody this friday morning. thank you for being here many lindsey, kicking things off with you, with a new reuters poll showing economists are predicting the federal reserve will raise interest rates three times this year, here's a few of my guests this week and how they see things playing out. >> i think the fed will raise rates five to six times, they'll start to work down their balance sheet this year and i think you're going to have 10 year treasuries get close to 3% when all is said and done if in 2022. >> for the first time in my life
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there's this huge pressure on wages and people. >> but the market is going to react strongly at some point and i don't think the fed will, once that happens, continue to push forward. i think until they'll take a pause. >> there's too much money forced out there. prices, stock prices did exactly what the fed wanted them to do but now that's going to start to run into reverse. >> the fed has really done a job here on the average investor because they've been selling us hard, hard, hard, that inflation was a transitory. so what happened was you had an incredible build-up as you just said in growth stocks and deflation plays, now the fed is coming clean, admitting that inflation is more sustainable on a higher trajectory. so they're out there, trying to claim they're going to do four hikes this year and maybe more next year. maria: lindsey piegza, your reaction on how all of this is playing out. before the last few weeks,
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investors were underestimating the significance of this major move with the fed going from easing to tightening. no? >> well, absolutely t fed has taken a more hawkish tone towards policy, suggesting that they are poised to raise rates two or three times this year, maybe more but it's going to very much depend on the underlying growth rate and the trajectory of inflation. now, the fed did revise higher then expectations for inflation this year but policy officials have been very clear that they do expect headline inflation to abate in the second half of the year and more aggressively in 2022. so if in fact we do see near term relief in the form of a second derivative decline, meaning a slower pace of positive price increases, this is going to remove some of that sensitive immediacy for the fed to act aggressively. we expect the fed to raise rates. the call for aggressive action is going to very much depend on inflation. the fed wants to control inflation. the fed wants to rein in
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inflation expectations. but they also recognize that the economy is still very fragile at this point and the market is very much dependent on the monetary policy punch bowl. so they don't want to be overly aggressive and pull the rug out from under this recovery. maria: well, you know, lindsey, i spoke with one major ceo yesterday and he said to me, maria, do not expect this chip shortage to go away any time soon. he said things got worse in the third and fourth quarter last year. so i ask you, what are you expecting in terms of these issues, whether bit the chip shortage or the tight labor force or the inflation spiking. do you think the fed will be successful in actually taming these issues down? >> well, that's a big question. we look at the supply chain issues there actually is an expectation that these could intensify as we see many developed countries go back into lockdown, imposing stringent safety measures including china's zero covid policy but the fed raising rates doesn't
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address cost/price pressure on the supply side. in fabling, it will do -- in fact, it will do the opposite, raising interest rates would actually raise the cost, of investment, raising the cost of business, forcing consumers to deal not only with lingering elevated prices, but then contend with the issues of a slowing economy. so the fed has to face this very delicate balancing act knowing that monetary policy is not going to impact the supply side. yes, raising interest rates will impact the demand side of the equation but it remains a question how much of the recent inflation is driven by demand versus driven by these temporary supply disruptions which monetary policy will have very little to no impact on. maria: yeah. it's great analysis, lindsey, as always from you. mike, what are investors doing, they're selling now and asking questions later. look what happened to growth, mike. you've got the nasdaq down 5% this week. crypto, crypto takes a hit,
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$147 billion wiped off the crypto market just in the last 24 hours. bitcoin prices dropping 8%. ethereum down below $3,000 as cryptocurrency hedge funds mark the worst performers last month with an 11% hit last month, mike. is this the right move, sell growth, sell risk assets as we question whether or not the fed is going to get this right? >> good morning, maria. i think selling right now as you say, it's hit all growth assets. it's just risk off, sell the high growth names including bitcoin. i would like for people to separate the two of them because when you talk about growth equities, you know, for me it's easy to price these. it's easy to look at current earnings, is easy to look at a future earnings and see if there's a pullback in a company like apple or a netflix, where you would be comfortable stepping in. i think when you look at bitcoin or any of the cryptocurrencies it's very different because in the last few years, maria,
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remember, bitcoin had a draw don of over 80% and then it had a drawdown of almost 70% and now we're down 50% in bitcoin. a lot of people who felt they had to get in when it was going from 40,000 to 50,000 to 60,000 are sitting in the 38,000 range. they'll end up selling and taking a big loss. i think for people who don't have a longer term time horizon they should focus on investing in the growth equity side of the world, not the cryptocurrency side of the world. maria: let's look at the fundamentals. netflix is down this morning. your thoughts on the lower subscriber growth last quarter for netflix? you also have peloton back over -- back up 5% but it had a tough day, down 24% yesterday. the company facing reports that it will halt bike and treadmill production in some areas due a
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significant drop in demand. your thoughts on these two, netflix and peloton, the two story stocks of the morning. >> yeah, first netflix. let's look, they operate in a very narrow moat. there's competition, hulu, at&t, on and on. there's not big margins there to begin with. i'm afraid netflix shareholders are going to get an analyst downgrade cycle, go from buy to hold, hold to sell, foreign dollar share targets down to 350, 300 and the same shareholders of netflix will be like in quicksand, trying to get out of this thing and missing the opportunity calls and other leaders. as far as peloton, we never saw that as disruptive technology, putting an ipad on a treadmill is not disruptive. it's very 2020. we were living in caves. most people when they work out want to work out in groups and socialize. we saw a huge amount of inventory out there on craigslist and undercutting the company. my story about peloton is very concerning because who knew
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what, when. how is it that all these insiders sold tens of millions of dollars of stock at peloton, days before them cutting off manufacturing, a whole bunch of puts were bought. i think they need to understand more what happened with peloton. that's my major issue with peloton this morning is who knew what when, maria. maria: yeah. it's a good question. real quick, ken, are you -- do you want to buy this dip or do you want to get out of the way as this selloff intensifies this year? >> we want to protect our capital. hopefully in a couple weeks we'll get tech leaders that instead of going downhill will talk about raising estimates or raising guidance and we want to jump on those names. i think we're going to separate the men from the boys very soon. soon we're going to get help on the way i believe and some companies are going to guide higher and that's where you want to he focus your money on. maria: we will leave it there. lindsey piegza, mike murphy, ken
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mamoney, a pleasure to see you all. much more ahead this morning. coming up, one year into biden's presidency many are already looking to 2024. how his record low approval ratings could pave the way for a hillary clinton return. then, the chairman and ceo of bank of america is here this morning, brian moynihan, breaking down fourth quarter earnings, giving us his take on the 2022 economic backdrop, coming up. joining the conversation all morning long this morning, dagen mcdowell and james freeman. we will get back to this fantastic panel when we come right back. you're watching "mornings with maria" live on fox business. ♪ ♪ ♪ ♪ deposit, plan and pay with easy tools from chase. simplicity feels good.
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maria: welcome back. tax season is kicking off and major backlogs are not the only concern for taxpayers this year. gerri willis is here with the irs' new plan on a facial recognition requirement to access your data. geri, good morning to you. >> good morning to you, maria. and that is right, a new program being launched by the irs will require you to scan your face
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and other personal data in order to be able to access your online tax data. the irs hiring a third party company, id me, as gate keeper to verify filers' identity, claiming facial recognition is the most secure way to file. charles redding, irs commissioner, saying this, identity verification is critical to protect taxpayers and their information. the irs has been working hard to make improvements in this area and this new verification process is designed to make irs online application as secure as possible. but taxpayer trust in the irs is extremely low due in part to scandals like the targeting of tea party groups by the irs in 2013. leading some to question whether the information gathered by id me will be shared with the nation's largest tax collector or other federal agencies. id me says the irs doesn't see
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biometrics simply -- pardon me, doesn't see biometrics, it is simply confirmation that the person is legitimate. listen. >> we match a selfie to the photo on your government id. it's called one to one matching. it's what you do every time you unlock your smartphone. we want to be crystal clear that we do one to one matching. we're not doing any type of surveillance programs or anything of that nature. >> he added that the only case in which information from the company's scans might be shared with federal agencies is in the case of fraud when a scammers is posing as a taxpayer. with monday being the first day that 2021 tax returns will be accepted, the irs is facing a critical tax season. before christmas the agency had 6 million unprocessed returns from last year and president biden has made moves to increase their workload by looking at digital payment apps. by june, maria, facial recognition will be the only way
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to log into irs.gov, that's where people check in on child tax credit updates and online payment updates. it's a long way to go for an agency who some of their processing equipment is 40 years old. maria. maria: yeah, well, gerri, biden wants to hire 87,000 new auditors to catch what he thinks are tax cheats. we are going to dig into what venmo and pay pal are sending the irs in terms of our data coming up. gerri, thank you. gerri willis. stay with us. we'll be right back. you're an owner with access to financial advice, tools and a personalized plan that helps you build a future for those you love. vanguard. become an owner.
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maria: welcome back. the senate judiciary committee yesterday approving a big tech anti-trust bill to forbid companies from favoring their products over competitor products. it was expanded to include tiktok and ten cent's wechat, following a new york post report and potential conflict of interest for senate majority leader chuck schumer, his daughters are on the payrolls of amazon and facebook. james freeman with us this morning. james, your reaction to this? we know that the democrats probably don't mind to see the censorship of republicans but how do you think these bills play out and what about that conflict of chuck schumer? james: yeah. chuck schumer serving himself
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not necessarily news. you mentioned the new york post. of course, it was their big reporting that was suppressed by so many tech companies in 2020 as far as hunter biden goes and his business relationships in china and elsewhere. but i really -- i'm really concerned about where this legislation could go. i understand the frustration with these companies and their bias against conservatives. it's a problem. but these are world leading industries that are based in the united states. i don't think there's a good history of washington designing tech products and telling people, whether it's silicon val judiciarily -- valley, or austin, texas or wherever how they should deal with suppliers and vendors and partners and designing software and figuring
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out which software should be compatible with other software, that's just not a good role for whether it's congress or federal bureaucrats. so i see a lot of danger here but i understand the problem they're trying to solve. dagen: maria -- maria: i understand what you're saying too, dagen, because the market would like to see and even conservatives would like to see the market take care of it, bring in competition to take these companies down to size and yet they continue to believe they're the arbiters of truth, censoring information, dagen. dagen: i don't use facebook. i do use instagram, which of course is owned by that company, what's its new you name? meta. facebook censored a piece in the new york post in february two years ago about the virology lab in wu man and a poe ten -- wuhan and a potential lab leak and they censored it. i don't think that the government is -- knows better.
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i worry about government overreach. two quick things. one, because i've got my james freeman column here from. james: oh, nice. dagen: more businesses biden can blame for inflation, so certainly there's this move by biden and company to vilify and scapegoat businesses here, there and everywhere, so of course that could be coming. but i'll just quote matt tiebee who said for all those who think it's possible to prohibit misinformation or medical misinformation, who is going to be in charge of the prohibition? when you put the most dangerous misinformation is official misinformation, the only defense against it is a completely free press. so i just distrust government in every possible way. maria: yeah, but i mean, we're not seeing the free press because of big tech and social media. you make such a great point and james wrote a great piece about it. this administration likes to blame big business, james.
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they blamed the meat conglomerates for inflation. they're blaming the oil companies for oil prices being up 60% year over year. you know who you never hear them blame? you never hear them blaming technology and you never hear them blaming pharmaceuticals. okay. the vaccine makers are going to generate 90 plus billion dollars on these vaccines in the next year. big tech is censoring their competitors on the republican party so you don't ever see any aggression against pharma and big tech but you are certainly seeing it elsewhere. james: well, and i think it would really be helpful for republicans who wanted to provide the free market alternative to look for ways to make it easier for new ventures, start-ups to compete with these tech giants, you know. really examine what are the barriers to entering and becoming the next google, facebook, et cetera. and i think that's really where they could probably add more
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value than kind of aligning with the democrats to start managing how business is done in various industries. maria: and by the way, we'll see how president trump's social media company does, truth social, expected to roll out soon with beta testing. we'll take a break, when we come back hillary clinton's 2024 comeback, could it be. how president biden's record low approval could help get i hillary back to washington. mark penn will join us, next. with my hectic life you'd think retirement would be the last thing on my mind. hey mom, can i go play video games? sure, after homework. thankfully, voya provides comprehensive solutions and shows me how to get the most out of my workplace benefits. what's the wifi password again? here...you...go. cool. thanks. no problem. voya helps me feel like i've got it all under control. because i do. oh she is good. voya. well planned.
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we gotta tell people that liberty mutual customizes car insurance so you only pay for what you need, and we gotta do it fast. [limu emu squawks] woo! new personal record, limu! only pay for what you need. ♪ liberty, liberty, liberty, liberty. ♪ maria: welcome back. now these headlines. an american airlines flight headed to london forced to turn around due to an unruly passenger. cheryl with the details now. cheryl: the miami to london forced to turn around and land in miami, 90 minutes after it took off due to a passenger's refusal to wear a mask. law enforcement met the plane at the gate but did not arrest the woman who has been placed on the airline's do not fly list,
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pending an investigation. what's even worse, the flight was canceled so all the other passengers had to be rescheduled tore later flights. well, wall street's biggest names backing former bridgewater associate ceo david mccormick's bid for the open senate seat in pennsylvania. mccormick officially announcing his campaign on this show last week. >> i have lived the american dream and i want to make sure that other people in pennsylvania have that same opportunity to live the american dream that i was able to live and i think the american dream's at risk, maria. i really do. i think the rise of wokeness and weakness is really putting future generation, i'm not talking decades, i'm talking in the next five to 10 years at risk so that's why i'm running. cheryl: mccormick will face a crowded field. omicron delaying adele's highly anticipated las vegas residency, announcing the decision one day before she was set to begin after a rash of cases on her team and a other hurdles like
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delivery delays. adele said her team's working to reschedule her canceled performances which were supposed to start tonight and go through april 16th. and finally, maria, you got to watch this. the internet is going crazy after a west virginia reporter was hit by a car on live tv, then she kept going. watch this. >> oh, my god. i just got hit by a car but i'm okay. cheryl: reporter tori yorgi was struck by the slowly moving car but she kept on reporting, detailing the incident to the anchor who is in the studio who didn't have return as we call it in the news business so he couldn't see her. coincidentally, the accident happened during her last week at the station. she also said this is the second time she's been hit by a car. maria, one favor, if this ever happens to me when i'm in the field for you, please say you know what, we'll get back to cheryl in a second. maria: why don't we just say cheryl, are you okay?
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what the heck just happened? that is crazy. unbelievable. it's the second time she was hit. unbelievable. cheryl, thank you. what a story. all right. we'll get back to you soon, cheryl. president biden's approval ratings continue to plummet at the bottom of the barrel. but he says he is unbotherred by it all. watch. >> how do you plan to win back moderates and int pends who cast -- independents who cast a ball lot for you in 2020 but polls indicate aren't happy with the way you're doing your job now. >> i don't believe the polls. maria: he does not believe the polls. first here on fox business right now, the harris poll finding only 39% of americans approve of biden right now. a full 61% of those polled say that he is too old to be president. only 32% of democrats support biden as their 2024 nominee and probably what's most important to point out is
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independents, they have given up and a majority continue to say he is not doing a good job. joining us right now is the chairman of the stagwell group and ceo of harris poll chairman mark penn, he is the former advisor to the clintons. mark, it's great to see you. thanks very much. what do you make of biden's comment, he doesn't believe the polls and what do you see from these polls now? >> well, he doesn't believe the polls, he doesn't believe the voters come the midterms. because these numbers are terrible. i mean, in a word. to be at 49, i'm sore ribs to b, to be at 39% here, to come down from almost 60%. the republicans are strong in every yea way, leading in the midterm congressional vote by 6 points. normally even when it's even the
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democrats tend to win this by a few points. there's a massive turnaround here in the polling and a heads up that the administration those do a pivot to the center from what it's been doing and in this press conference he instead doubled down on all the policies that people don't like. maria: and mark, that's really what strikes me. you know, you were there during president clinton's presidency where he saw and read the tea leaves and actually changed policy midstream for his second term. this president is just not acknowledging what the voters are telling him. they are rejecting his build back better agenda and he's still trying to push it through. we have crises erupting everywhere across the country and instead of talking about a fix, he's talking about jamming through a voting bill. the harris poll found 17% of democrats would support hillary clinton as nominee if biden does not run in 2024. have you spoken with hillary
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clinton, mark? >> no. but i would say that 17% is a very weak number. i did not sense in this poll bring back hillary. she used to start out in these races at 30, 40, 45, 50 when the country really wanted hillary. this says to he me the country really wants to go forward, not back. they're not giving any votes to kamala harris either. they don't really like joe biden for a second term so i think the democratic party is in chaos and in contrast the republican party is ready to consolidate around former president trump. maria: well, maybe if hillary runs again she'll come up with another made for hollywood story line of collusion with trump the way she did the first time around. should we expect more dirty tricks from hillary clinton,
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should she run? >> again, i'm sure she's going to look at running but with numbers like these i have to pour a little bit more cold water on this whole thesis. i thought she might get much stronger numbers. it's just not what the democrat electorate is saying. they want somebody new, they want somebody younger, they want somebody fresher. i don't see hillary really making a comeback here much as tantalizing as it is. maria: and more and more want that person to be republican, biden is not the only one dropping in the polls. the harris poll found 53% of people prefer republicans in the congressional races right now compared to 47% preferring democrats. mark, what are you expecting in the midterms come november? >> well, i think you're going to see at least a 25 seat swing towards the republicans with numbers like these. maybe even a little bit more. these have been growing. remember, biden's numbers month after month here keep falling.
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the republicans' numbers here keep growing and the disconnect on the issues, i mean, biden went out there and he said oh, afghanistan a was fine, the economy is fine. people don't think it's fine. you know, two-thirds reject that the economy's fine, that afghanistan was fine, that immigration was fine, 70% see crime off the charts right now. maria: yeah, it's a great point, mark. dagen, jump in here. dagen: mark, one of the biggest issues coming out of this white house from biden and company is just the messaging. at every turn when facing a crisis, they lie about it and then they lean on the same language and phrasing over and over and over again, until even recently president biden talking about the pandemic of the unvaccinated. that's simply not true. vaccinated people are contracting omicron and spreading omicron.
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he uses the phrase the battle for the soul of america. he started using that i think even before his nomination for the democratic party to run against trump. i don't understand why they aren't like a clinton more nimble at just the messaging and the way they talk about these problems. >> well, hyperbole is certainly backfiring. the january 6th speech was negatively received by the public. i don't know, it's a mystery why they haven't pivoted. i can remember bill clinton didn't pivot until after the midterms but he thought he was going to win the midterms. here, everybody knows that the political situation has turned around and he says -- and president biden says, well, i'm going to go out and campaign. well, which democrats are going to want a 39% positive president campaigning in their district?
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oh, my god, they're going to be running away from the president during this midterms unless things dramatically turn around. look, one of the suggestions i test in the poll is if you really want him to reach out, he should have pardoned all of the nonviolent people from january 6th, prosecuted only the violent ones, and that in the poll would have gotten him a huge reception for reaching out but they are about as far removed from something like that as anyone could imagine. dagen: real quick, mark, they're actually using sarbanes-oxley to try and elevate these charges. sarbanes-oxley, which was passed as a financial fraud law after enron, that's how desperate they are. >> well, look, i think that there's a very good case here for people who are actually violent on january sixth, people would want to see them prosecuted but for those who are not violent, who are just there taking pictures, came in, you
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know, american tradition would be not to prosecute them and i think the january 6th committee is over-stepping its authority. all of these uses of the criminal justice and investigative system against political enemies are seen as backfiring as opposed to dialing them back, just to those who were violent. that would have been a much smarter move here than what they're doing. maria: yeah. well, it's a great point, all of this. meanwhile, people are sitting in jail and in isolation as a result of everything you've just said, mark, and it's all politics, while real crime goes unnoticed. no problem with all of those protesters back in 2020, the summer of love where we saw businesses forced to board up and then you've got dr. fauci sitting there lying under oath, no problem there. i thought that was a felony. mark, it's good to see you.
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thanks very much. mark penn joining us with all of that as we kick off a year that will be busy. the primary start up if in march. we'll be right back.
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maria: welcome back. tennis star novak djokovic is considering suing australia for
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millions after it was revealed he was he deported over fears that he would spread anti-vaccine messages to his supporters. his coach calling the decision political, unjust and unhealthy. joining me right now is hall of fame tennis coach, rick macy. rick, thanks very much for being here. what a story. your reaction? >> yeah, first off, it's great to be with you, maria. yeah, it's taken on a life of its own. he's been number one 356 weeks a year, he's won 20 grand slams, he might go down as the greatest player ever. a lot of confusion. he got the medical exemption and, you know, then everybody got involved. the tennis authorities, the local government, the federal, and it just wasn't going to work out. maria: so djokovic and other athletes may not be able to play in other opens now. more countries are introducing similar vaccine requirements. is this going to become a precedent? where does this go?
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>> well, first off, 97 out of 100 guys on the atp tour are already vaccinated and these tournaments can make their own rules and each player is going to have to make a choice and i don't think novak, regarding the french, he wants to see that movie play out again so who knows where it's going to go but it's really up to the tournaments and the players have to make their own decision. maria: so rick, you're portrayed in will smith's new king richard film about the williams sisters. congratulations. what do you think of the film? >> it was amazing. and inspiration, dedication, education, perspiration, you can't make this stuff off where two little girls from compton, california -- when i went out in '91, at first i didn't see it once i saw them compete, i saw
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something i had never seen. i never saw two girls try to hard to get to a ball. there was a range inside these girls. i went to richard, i said let me tell you something, i said you've got the next female michael jordan on your hands. he puts his arm around me and he says no, brother man, i've got the next two. i knew where this would go. four months later they selected me to coach them. i was on a mission. they were like my daughters, richard was my best friend and we were going to make that happen and as they say, the rest is history. maria: i love that, rick. it's such a great story. it takes me back to djokovic because he's the number one seed. he won the australian open. how much of this was, look, we don't want this serbian tennis player coming in and showing us who is the best tennis player, so let's be tough on him. >> yeah, probably would have
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been different if it was the number 300 player in the world. it's unfortunate. there's just a lot of confusion. obviously now he feels he's been treated badly, he might file a lawsuit. it is what it is. but they had some serious lockdowns in australia, what, over 200 and some days and there's an election going on, there's a lot of politics and he just got caught up into it and so it will be interesting to see how this plays out. maria: i mean, do you think he's going to have success with this potential lawsuit? the supreme court just ruled that the vaccine mandate is unconstitutional in america. >> who knows. australia, that's a whole different animal. he just feels he was treated badly, he just feels he was treated badly and he it's not even about the money. it's more about the principal. you've got -- principle. you've got to remember, he's one of the most brutal, fierce
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competitors our sport has seen. he'll probably go down as the greatest male tennis player ever to hold a racket. he's a fighter and he wants to stand up for what he believes. maria: yeah. very convenient to have him off the court. rick, it's good to see you. thank very much. rick macy. >> thank you, maria. thank you so much. maria: all right. we so appreciate it. we'll be right back. stay with us. [sfx: radio being tuned] welcome to allstate. ♪ [band plays] ♪ a place where everyone lives life well-protected. ♪♪ and even when things go a bit wrong, we've got your back. here, things work the way you wish they would. and better protection costs a whole lot less. you're in good hands with allstate. click or call for a lower auto rate today.
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welcome back. good friday morning. thanks so much for joining us. i'm maria bartiromo. it is friday, january 21 top a stories 8:00 a.m. on the east coast. panic in the air, stocks are extending losses this morning, after another major sell-off yesterday investors worrying federal reserve will raise interest rates multiple times. >> confusion chaos at the white house officials cleaning up president biden's press conference remarks, earlier this week, as his approval ratings spiral down to lowest point in his presidency this morning, new poll shows 43% approve of the job biden doing compared to 56% disapprove not a third of americans want biden to run in 2024 we will watch what is next in washington, all morning long, check markets, extending losses after another big sell-off yesterday, there is in air dow industrials down 100 s&p 500 down 25, nasdaq
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down 132, the nasdaq in -- correction territory it is down 11% from the highs on the nasdaq. yesterday, all three imagines finished in the read rattled by inflation rising rates slowdowns economic growth nasdaq in correction territory further, on netflix's weak outlook actuallying tech sector down nasdaq down 186 yesterday dow industrials down 313. in fact what a kickoff to new year, year-to-date dow down 4 1/2% s&p 500 down about 6% nasdaq is down 9 1/2% that is just last two weeks, year-to-date 2022, coming up speaking with chairman ceo of bank of america, brian moynihan in a moment with views on economic backdrop the economy, lon growth rate interest rates, hikes, as well, as the cost of doing business today. european markets this morning in red a take a look at
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eurozone ft 100 cac quarante dax lower at lows of the morning right here s&p 500 down 91 cac quarante down 130 dax lower by 338 points right now index in germany down better than 2% in asia overnight markets finished mostly lower here fractional moves pretty much across the board, as you can see, the one -- bright spot hong kong up a fraction, "mornings with maria" is live right now. . . >> morning mover ecolab down 5% as its fourth quarter profit growth expected to be down do you to impact of covid lab shares at 201 and change, the banks have been highlight front and center all week reporting quarterly earnings bank of america reported earnings earlier in the week fourth quarter profit up 28% to 7.01 billion dollars, 82 cents a share revenue up 10%, 22.17 billion that was beating expectations, on revenue, joining me right now is
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chairman and ceo of bank of america, brian moynihan, great to see you this morning happy new year to you thanks for being here. >> happy new year maria good to see you again. how would you characterize the quarter assess business with most recent earnings what drove business? >> well if you look at what bank of america did fourth quarter, statistics 7 billion dollars earnings, good right way good risk management the interesting parts 50 billion dollars in fourth quarter in core middle market of businesses, strong loan growth, consumer growth customers borrowing doing things terrific, strong deposit growth record investment banking fees, trading team did a good job fourth quarter weaker in trading historically, all in a great quarter a great year
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teammates did a great job serving customers again during time covid dealing with all things you have to deal with given day. >> you are right challenge everywhere you've got tremendous numbers, brian, walk us through where the growth was, because for a while here, we were talking about the capital markets business, doing really well obviously all merges acquisitions, and trading, but the loan growth was just okay. this quarter was a bit different, you actuarial seeing loan growth pick up speed what are you expecting in terms of loan growth on residential and commercial side for 2022 brian? >> a well, we talked back in october, after third-quarter earnings, and we talked about loan growth, we were sort of an outlier starting to see more in this quarter saw it faster than market, mexico frankly two things a great client base most important thing a great teammates out there winning in market getting growth, driving it but
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what does it say about broader economy, you know, if you look what consumers did in fourth quarter amount of money spent was a record at bank of america so we saw last year 3.6 trillion dollars spending in fourth quarter up 30% over 2019 fourth quarter forget about 20. in december strong too even in january, so far first three weeks or so we are seeing seg17th seeing that number hold up double-digit growth consumers have money in pandemic in accounts you are seek commercial borrowers, supply chain things difficult to deal with, getting employees, they started using lines again means building inventories raw material selling goods economy is strong but look our experts have 4% 2022 but starts to normalize in 23 you are, that is the job get back to normal
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after recovered from pandemic fed has to do now. maria: you make a lot of great points i spoke with one ceo in tech yesterday he said maria things worsened third and fourth quarter with a regards to supply chain ship shortage not going away soon going to be an issue what are you expecting from federal reserve look at nervous markets trying to figure out if fed is going to get it right going from this easing position to now tightening position how -- are you expecting brian? >> if you go back to start of pandemic the amount of fiscal stimulus amount of monetary combination hitting the economy at once did its job that the economy right now is largely the size it was pre-pandemic, unemployment below 4% was 3.6 now 3.9, those numbers mean economy is recovering the fed has to normalize think 2019, withh where fed was chair, voters
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had a 2% fed funds rate economy to grow 2%, economy was midsized unemployment 3.6 whatever it was exactly what you the market expects four fed increases we agree with that research team terrific, says 4 fed increases expectation they motive faster inflation numbers are really large that will bring growth rate economy back to normal 6% last year 4% this year 2% next year normalizing activity important to bring to stop the potential, things that go on when money is too loose. maria: everybody expected expensesing to up we continue to see pressure, on wages, and on competition for people. brian i want to get your take on all of this, because am i right that you spend 36.1 billion on wages and benefits
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last year that was up 10% from a year earlier? we've got this pressure on wages, that has not let up at all, what can you tell us? you were the first i think of all major banks to raise wages, on tellers, and the hourly wage, but you are seeing a lot of pressure from all sorts of -- what can you tell us? >> well, you know depends, the markets really business financial adviser compensation driven by market market, business with record revenues 175, 170 billion dollars flows into those wealth management platforms last year alone those tales going a great job that wage, the investment bank, of course, their wages lift because they had a great year four quarters above two billion dollars, in investment banking revenue record for the company, the trading had a record year last year up, importantly, we have been on
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ab path to make sure that we are best place for employees to work, our core employees have high single digit wage cfos after year after year last year fourth straight year company wade bonus a chance to participate in success when you talk to clients wage growth flairing aspect of wage growth the pressure puts on margins very serious concern i think that is what fed has to work on, and -- get right they have to work on getting the -- the growth and inflation wages, amount of wages growth and wage price to get it down more normal task ahead engaging on it late last year. maria: so, brian, what do you need at this point do you seed the name branch footprint that used in the past as these
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wages are going higher, and pressuring all businesses -- to stages, how will you deal with this? we talked about, technology, versus the branches in the past. but was this one of those tipping points where you take a look, at whether or not you need that kind of a footprint. >> we started taking a look 15 years ago ago what we talked about high touch high check, in our consumer businesses, you have a dominant part of activity, we'll management commercial banking investment banking market has more attached to it clients want one to one relationship very different across the board digit activity last quarter 2.7 billion digital interactions with clients in quarter we spend 3 1/2 billion dollars a year on new
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technology code, 10, 12 billion run platform new initiatives, activity. eric, platform -- has four times as much activity going through it fourth quarter this year versus fourth quarter 21 versus -- digitization high touch high-tech next today, two or three00 thousand people in branch a great teammates serve well our job have customer have any way they want automation, digitization, 6,000 branches, a lot of -- us more efficient on the other hand customer services have gone up size company gone up growing faster in market that is a great combination, that is what we're trying to achieve with bank of america perfect. >> i think you make great points i guess i am trying to understand, is how significant is the pressure, on wages, i know that you've seen some advisers leave how much pressure are you feeling, to make sure to keep he that top
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talent at bofa, your biggest expenses labor, and then there's tax bank of america spent 3 1/2 billion on new tech initiatives last year you've got cyberissues there that you are continuing to spend big money on. are you going to be doing more fintech deals? >> this way we do this operational excellence drive principals we call response growth grow, do right risk customer focused sustainable one of the parts being sustainable is operational, lens work 2000 ideas last year alone worked, to improve franchise money out of work can go away putting money into more people to serve our clients, more technology to serve them more wages for those team to do a great job deserve to get paid more yes, very sacrifice. >> atriion, we pride great
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benefits childcare that enable people to continue to work with young families a lot of pressure we provide community benefits, et cetera, importantly great starting wages hiring lots of kids out of school frankly ability for healthcare in our company, our teammates, who are -- healthcare proom increase since 2011 we continue to keep that, to serve them well all that is what we do to be a great quarter that is why we have a great team they do a great job for us. >> i am glad you mentioned wealth management 171 billion there what a great performance in terms of capital markets, what you are seeing in wealth management and new accounts, brian, let me turn to policy, because we know that president biden nominating progressives sarah bloom raskin for the vice chairmen of supervision, this is going to be the most important role in terms of
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overseeing the banks, by the way, this is the democrat -- house representative raskin, your thoughts on how things will change, remember, what she wrote back in september. saying that well none of the regulatory agencies are specifically designed to mitigate the risks of climate related events she wanted climate change to be a major priority for the banking sector. your thoughts on how you will be dealing potentially if she gets approved with this new bank supervisor and how about -- to change spending allocating capital towards climate? >> what we do, overall you know, maria, i said to you many times we've been around as company since 1784, the company lots of regulatory screams bank charter number two, alexander hamilton was there we will be around, the story changes regulations change we adapt to them it is what we in mystery have to do
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the key to remember over the last, you know -- great financial crisis in 78, amount of capital in industry liquidity the way industry operates, allowed it in pandemic cries a source of strength tort american economy supporting commerce with millions of consumer defrls supporting commerce raising capital for them keeping banking system open frankly other things had to shut down every day we operated i think people have to remember no matter what the debate is about, incremental change the core banking system in united states a pillar of strength not only for united states but for the world i think that is the key, and so, we will whatever regulation comes up whatever happens we will deal with, so you know that is that is the life of a banker i think a he will talented teammates know how to work our way through whatever comes at us. maria: quick before i go obviously, a nervous market
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markets down first two weeks of the year, is this warranted? what kind of 2022 are you expecting macro story brian. >> look at our stock bounced down a little bit around earnings, everything, up for year 40% up year last 12 millionaires market has been up a lot as fed slows down economy slows down, by design, back more normalized condition the market is going to reflect that our experts s&p, flat for the year, you know, look we will see how that plays out, reality is this is what we expected outcome of a change in he monetary policy change in fiscal policy had to take place it had where an now that economy recovered. >> great to see you congrats we will talk soon thanks very much for being here this morning, brian moynihan chairman ceo of bank of america. we'll be right back. . 2
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brian. welcome back now fox
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business exclusive, hub00 and a former biden aide vested in two chinese changes ties to top levels china communist party and military emails show as recently as 2017 hunter's private equity firm held 5% shake in hardz communist parks and entertainment backed by china bank james you and i wrote an entire book about the cost reversing america first policies we zeroed in on corruption, the fact that media drove the bus on all of this, censoring information about hunter biden in our book trump, china and american revival, disturbing most press does not want people to get to bottom of we mentioned earlier in the show "new york post" reporting that suppressed
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during 2020 election this latest revelation raises questions that have never been answered, apparently this venture was engaged in sports marketing amusement parks. . what does hunter biden know about sports marketing or amusement parks or doing business in china? what did he know romanian what did he know about ukranian natural gas what did he know to generate millions consulting dollars from ouran oligarch, there was money to computer venture is he expert in manufacturing all foreign money no apparent value-added by hunter biden in return for all of this money. disturbing what a he can do of continuous he knew nothing
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about this stuff he was pulling in big bucks genetic paid by chinese oligarchs ukrainian oligarchs you point out paying bill for him and joe and the family. dagen: jen psaki -- answer about dw divesting interest in chinese companies stands up to chinese communist party after 5 1/2 million people have died from coronavirus, you can. maria: he is conflicted he never brought it up. .
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anticorruption push . >> there is no way to -- next 20 years easy, not possible no matter when you did it, and i make no i have great concern for women and men who were blown up on lines in -- >> no apologies 13 servicemen dead may be it would have made sense to get our friends, and regular people out before actually getting troops out that was president biden's wednesday. saying he has nothing to apologize for after the botched afghanistan withdrawal
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13 service members killed many americans remain stranded bn enemy lines taliban, surged by supply chain crisis "build back better" failure the supreme court, blocking his vaccine mandate, as unconstitutional. joining me right now california -- a member of the judiciary and foreign affairs committee congressman a pleasure to see you. thanks very much for being here assess one year in for this administration for us. >> well i think it was -- his own press conference if you have no apologies that means you did it deliberately if you had no apologies that means i meant to do it. the president meant to let more than a million people illegally parole into this country because good for future democratic votes he meant to disrupt the supply chain because he thought he could blame the president. he meant to withdraw clumsily from afghanistan, because he believed he could blame his predecessor, the list goes on.
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maria, this is a presidency that a lot of -- people out of touch poor joe old no joe biden doing exactly what he wants surrounds himself with people who support o those policies those policyholders are destroying america. you know make america great again, was a wonderful theme a lot of progress was being made. a lot of it was done on backs of americans who bought into idea you invest in america, that border would be secure, that you would train american workers that this whole policy that was working that lowered our inflation to essentially zero raising prosperity for all including will left behind minorities in inner cities being reversed, the reality is this president benefits by poor inner city kids growing up thinking they have to rely on government rather than a good job with a company, that
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will pay them a good living wage because prosperity, open borders undermine that actually, when you look at the military, it is not just afghanistan, he has cut our future fighting capability including those who respond to china threat told putin he can healthcare a minor incursion stake half of ukraine including capital. >> extraordinary i think most people are really upset by lies on top of the in competence faced with a question why he did something he just lies about it, it that is what we saw is a again there is increase in feeling from people that i have spoken with the whole reason he came out with a vaccine mandate was to cover-up the afghanistan withdrawal remember it was the same week, and he knew it was unconstitutional, but wanted to jam it anyway through so we would talk about that versus
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you have aing withdrawal of so botched, now we still have people behind enemy lines said "build back better" agenda could cost zero would help inflation, no. he said that if you were vaccinated you weren't getting covid, no, he said that the border was closed. no! you were one of dozens of lawmakers in house and senate asking for the department of homeland security inspector general to investigate joe biden's actions at the o border tell me about this because mayorkas is patting himself on back saying u.s. is fundamentally changes immigration enforcement we've got two million people apprehended last year 650 other -- 650,000 others gotaways, we are expecting record numbers to continue with this wide-open border which is also allowing request illicit markets into country killing americans.
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>> as said yesterday we marked a year of this president, we now fentanyl in this country to differential american killing piece by piece those who he take it in fact open borders the contributing to that, you gave very important figures, ofb people say we apprehended 200 -- two million, apprehended doesn't mean they were sent home ep this president's policy apprehended and ubered to airport with tickets, at tax paris' expense the challenge i am surmonitor able the demoralizeing of u.s. military as we speak navy chaplains are being thrown out because they've been denied air
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religious exemptions for mandate on vaccine recommendation purposes seem are being summarily turned down we are saying the first amendment,religious convictions no longer capable with military period i spoke to inactive chaplain commander 16 years service lutheran minister proud to put face first but real is demoralizing effect on military going on for generations this is a repeat of jimmy carter era military is being did he morelived weapons systems that are necessary being delayed the reality is that ronald reagan told us something we must remember. no war in his lifetime was caused by being too strong wars are caused by perceived to be weak enough for the
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enemy, that is exactly what is happening, in ukraine, this is what is going to happen in taiwan if we don't reverse this trend today. maria: congressman, our adversaries on the march is it the fact that he has con flooiktsd of interest money hunter biden took in is that why he will not address issues around chiern has not brought up thank you origins of the pandemic, of xi jinping in four hours conversations on phone. >> there is a natural conflict he has because of0000 policies assumed that you could export u.s. jobs it was okay, he always has been protect union jobs export jobs to offset it those policies are really at the core of who he has been, as he has been, used to call him the amtrak senator because he would go home every night on the train, and that was one you could counted on would
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support train policies are consistent with it there are conflicts the most important thing a conflict with pledge to protect enemies foreign and domestic not doing it at you all please don't give him a pass because old and feeble he is doing this knows what he is doing has to be stopped. maria: this is a national security risk darrell issa thanks for weighing in on all of that we will talk soon, thank you. we'll be right back. . ike i've got it all under control. voya. well planned. well invested. well protected. voya. well planned. well intoday, businessotected. is a balancing act. you want your data to be protected and secured. and your customers want seamless and easy. with ibm, you can do both. your company can monitor threats across your clouds,
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real cowboys get customized car insurance with liberty mutual, so we only pay for what we need. -hey tex, -wooo. can someone else get a turn? yeah, hang on, i'm about to break my own record. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ conflict of interest a conflict of interest maria: welcome back. toyota pausing trucks at 11 japanese plants cheryl casone with detail. cheryl: that is right, the company halting production day saturday and monday at plant due to in part pandemic, and labor shortages with chips announcement on top of planned reduction for carmaker announced for february, this
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pause going to reduce january production total by 47,000, company falling short of nine million production goal for the year tool in fight against covid fresh air clip a wearable defies can warn if you've been exposed was created by research school of public health could be a low cost way to look at disease hoping to make it available to public in the future, there is this, singer actor meat loaf has died. ♪♪ ♪♪ cheryl: tmz reporting that the grammy i winner tested
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positive for covid condition critical meat loaf jumd to fame with "at about out a of hell" career spanned decades, hit, i would do anything for love meat loaf was 74 your headlines. maria: thanks so much. this hour, i spoke with bank of america chairman ceo brian moynihan discussing wage pressures that the big banks are seeing, in a tight labor market, and period of sky-high inflation, watch. >> importantly, we have been on a path to make sure that we are best place for employees to work our core employees have gotten, high single digital wage he dreefrs year after year after year in 14's last year fourth straight year of -- of company-wide bonuses, stock we continue to drive
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ownership towards employees a chance to participate in success we believe broad-based you talk to clients wage growth inflationary aspects of wage growth pressure on margins is very serious concern i think that is what fed has to start to work on. maria: this after jamie dimon chairman ceo jpmorgan told me for the first time in life he is facing huge pressure on wages and on people, joining me right now is former ceo of restaurants secretary vote advisers adviser bureaued member your reaction to wages going higher this this expense getting bigger. >> wages way, way up particularly way up in the banking investment banking sector, people on wall street are feeling this, which is unusual for them as you point out jamie dimon said never faced this before, these are
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huge increases on top of huge salary that exist but from everybody from jamie dimon, down to guy ring a restaurant, cleveland ohio wage up across the board, but not just wages that are up you've also got energy costs up a distant amount obviously, when oil prices going up seven year seven-year high in goldman sachs says will be 1015 dollars a barrel sometime this year when energy prices go up price of everything goes up, all the commodities, supply chain elements that go into running a business. and then you've got transportation costs ven apart from energy costs transportation costs way up, bloomberg came out a article said shipping containers used to cost 2,000 dollars now cost 20 shortage of containers they expect thattog to go up more labor, energy, and transportation costs even apart from energy all
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increasing, the impact on inflation has to be tremendous, harm to businesses consumers substantial opinion. maria: well, look we are talking about the demand side of the economy, i just want to give you a word about the supply-side of the economy, it is in terrible shape. i spoke with a major ceo last night told me maria thing worsened third and fourth quarter in terms of ship shortage, and that is going to be an issue throughout 2022 into 2023 he said, andy you know when you've got a major disaster in the chip business that is not just a chip business, that is going to impact the auto business devices, technology, housing construction all areas that use chips you have an op-ed in daily mail today you talk about how america, is you lunching from pandemic to major recession your take own macrostory you write increasing and in by infusing more money into inflating
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economy results in hyperinflation rather than economic prosperity, the biden administration is still pushing for government spending as a way to address inflation now is at a ---year high what is your take on all the above andy in terms of of macro story in 2022 a supply-side of the economy, disaster underway right now with this chip shortage. >> with this, supply-side problem is something in particular, that the biden administration, has no solution for. they have clearly no way to address problems with chips again with energy with labor all of the things that contribute to supply-side problems are hitting the economy tremendously. and to demonstrate no solution, they are saying if we pass the "build back better" plan, really just more government spending in other words, would really -- inflating demand important i
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pour gasoline on demand side on fire rather than sheping supply-side it niedz to do reduce taxes regulation kinds of things that are going to help businesses address the problems facing the cost increases, and proof in pudding he knows "build back better" is not going to pass so trying to find something to blame when this when we see this, this -- tie inflation over the next couple years, he is going to say we would have avoided it if we passed "build back better" just his way around the fact that they have no solutions, they have nothing on the table that they can do to address problems. maria: and why "build back better" would making things better, is anybody's guess, given the fact that we already saw the results of massive spending, with the covid package last year where 1400 valid checks going to people encouraging them to stay home not go back on the job now we have a truck driver shortage, andy we are keeping spotlight on it so appreciate you
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weighing in on all of this thank you, sir. so that thank you, maria, andy puzder joining us. we'll be right back. . well, he may have friends, but he rides alone. that's jeremy, right there! we're literally riding together. he gets touchy when you talk about his lack of friends. can you help me out here? no matter why you ride, progressive has you covered with protection starting at $79 a year. well, we're new friends. to be fair. eh, still. ♪
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>> ?a. >> . maria: crypto a hit this week bitcoin prices going to below 40,000 dollars 147 billion in
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market cap wiped out in last 24 hours, in bitcoin joining me right now quantum group managing director harry, great to have you thanks very much what do you think is going on with investor sentiment around crypto. >> thanks for having me on the show maria. what you are starting to see right now that we're in the -- start of what we call a super cycle whenever there is any kind of news shush as russia talking about banning bitcoin, you are going to spook the market a bit since crypto is very, very predominantly news driven what you are seeing now in short term futures liquidation, 10% pullback in bitcoin normal correction presents unique buying opportunity for more investors. maria: maybe, but russia potentially banning bitcoin, china and it's pushback of bitcoin. also, represents the challenges that investors are
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looking at. how significant are those themes? >> we have -- regulation -- >> sure, i mean if you look back at so this is my third cycle i got into bitcoin 2013 when bitcoin was 15 dollars -- in 201 towards very, very end, of the year, bitcoin hit 1300 dollars pulled back to around, 400 dollars, so this volatility was caused by china, banning bitcoin initially we are seeing a lot of governments see cryptocurrency somewhat as threat the reality is they are here to stay. you've got bitcoin kind of the bell weather entire industry but big thing that -- around this time are stable coins usdc, why we belief a sierp cycle people investing in bitcoin don't nell hold the
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coin they can told stable coins loufrg you to earn yields higher interest rates, that you are getting from banks, right now putting money into banks, getting negative interest rates. maria: yeah. well, look. you bought bitcoin at 60 made money do you want part of a financial system? yesterday we spoke with miami mayor francis suarez instituting crypto in miami financial system here is what he said. >> created a collaboration called miami coin generated close to 25 million dollars, for residents no cost no risk for residents, what america's mayors crypto forward innovate we think a generational opportunity. maria: harry what is likelihood we see this in more cities. >> mayor of miami, a very, very smart man, to look at, i think it was one of the
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countries in caribbean, starting to implement -- implementing bitcoin as currency that you can use to pay for goods and services what i think you are starting to see is that we're not getting yields the thing i think people aren't forcing on that money that -- any bank, earns negative interest what we're trying to push isn't necessarily buy bitcoin but what you should be doing fiscal year responsible governments funds pension funds bonds should be putting a portion of their money into stable coins in projects like --tin.com, curb to earn 5 to 10% yield anybody that has money sitting on sidelines right now, affects all of us, hidden tax that affects everybody is -- in inflation right now all. maria: harry do you have confidence people writing legislation around bitcoin are the regulatory framework
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understand how stable coins bitcoin, and all of crypto works? because we're getting regulations it is coming. >> sure i think regulations are great because, as long as not over regulation, regulation validates the industry and what we're all trying to achieve. so i think, right now what you are starting to see is -- stable coins represent a very, very unique opportunity, because it allows us as individuals, to earn higher yields but not necessarily participate in huge volatility that bitcoin some others, ethereum, all offer however we need tokens phantom ethereum to run stable coins provide, smart contracts, and that is really the future that we see is, why i believe we are in a super cycle crypto here to stay but governments and bonds don't necessarily want to deal with volatility so stable coins allow us to have that
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flexibility in cryptocurrency but allow us to earn yields participate in position. >> great to get your take on all of this we will keep watching harry yeh joining us, candy goes woke, next. . . we see things. ♪♪ it inspires us to go further. .. ♪♪ when you start with care, you get a different kind of bank. truist. born to care.
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maria: time for the big buzz of the morning.
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it has come to this. eminems i getting awoke makeover was they iconic chocolate candies changing to be more inclusive focusing on the candy's personalities instead of the looks. the green eminem trading in her stilettos for sneakers and ending her feud with brown eminems. dagan mcdowell, your reaction. dagen: those are white go-go boots. they have always been naked so i have a problem with that. the reason mars did this is for the attention. this is absurd. it is candy. maria: exactly. >> and should mail eminems be able to compete in female eminem sports? there are a lot of questions that come from this.
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maria: what is this pressure that companies have to change even the candy we eat. dagen: they are getting free advertising bias talking about it. that is why they did it clearly. maria: that is all this is about. dagen: put some clothes on. maria: great to see you both. see you next week. have a great day, thanks for being here. see you on sunday morning futures. "varney and company" begins now. stuart: they might get some publicity out of this but i'm not going to buy the candy like that. good morning, everyone. this has been a rough week for your 401(k), a rough year. the dow down 300 points thursday. you are looking at another hundred point loss premarket. the s&p is down 3.5%. so far this week down again this morning.

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