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tv   Cavuto Coast to Coast  FOX Business  July 11, 2022 12:00pm-2:00pm EDT

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kansas. i think it's a trap. i lived in florida i haven't found a hill yet. stuart: i agree. florida. there you go. highest point in the state is only 345 feet above sea level. huge state, dead flat. great place too. thanks, ash. see you again real soon. time's up for me. it is 12 noon. here is neil. neil: is the birthday over? stuart: yes. totally. neil: getting to be like the queen's jubilee. it was going on and on. stuart: you know what, neil? neil: it was nice reflection on you. stuart: i had such a good time i decided to have a birthday every month. there you go. neil: i like that. i will grease the skids for you and your staff looking forward to my september birthday. that's it. that is all i can say. that is all i can say. happy birthday again, and again and again. stuart: do your show. neil: all right, fine. at the corner of wall and broad
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we have a bit of a selloff going on with the dow jones industrials. betwixt, between how far we go with the federal reserve. the real story seems to be elon musk and twitter. elon musk as we've been telegraphing on the show for some time, nixing that bid for twitter, the 44 billion-dollar deal. it is hitting twitter stock. it has been hitting tesla stock. go back to the very inabouting on all of this, think about it. i would like to go back to the initial investment. that was unknown to a lot of people until sometime later. tesla stock declined 36 1/2%. that also means that elon musk overall wealth fell about 36%. so if you look at him with spacex and all valuing you know, all of his investments at around 300 billion, that is like losing more than 100 billion in net worth. it still means you're the richest man on the planet. because other technology ceos have seen their holdings
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evaporate right now under the big tech selloff, he maintain as substantial lead. if you're a twitter shareholder, looking at this, you're not getting any big break now, down 32% from the first hint of an investment that the world didn't know about for sometime to come. kelly o'grady following this drama. now, as both these stocks go down, the lowering up is on, isn't it? reporter: definitely is, neil. this is quite a saga, right? elon musk arguing the social platform not only failed to provide key information but the company dramatically understating the number of bots. that is why he is wanting to terminate this. twitter lawyered up with merger heavyweights. they're expected to file a lawsuit in the coming days. the big question is, can he win? there is billion dollar break-up fee. the tesla ceo could face bigger fines if he loses not to mention the tesla stock if twitter shareholders think he is distracted in a public legal battle. look at this tweet he recently
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tweeted. he is pretty confident. twitter will have to reveal damning evidence in court. some say that will be tough to put off. the tech titan chose not to review twitter's data agreeing to the deal, doesn't mean he waived his right to ever see it. musk's lawyers refused a request for over two months, stating quote, sometimes twitter ignored mr. musk's requestions, sometimes it rejected them, sometimes it complained to comply while giving mr. musk incomplete or unusable information. we cannot rule out this is another dramatic ploy from the tesla ceo to negotiate a lower price with the stock trading 39% lower than the offer, some analysts say they gets the company for 30 bucks a share. nonetheless twitter is in a bad spot, facing daunting task of fighting him in court fighting morale. some are considering jumping ship. every advertiser is asking themselves did i get my money's
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worth with number of bots on the platform. if twitter wins with against a billionaire with unlimited resources, hard to imagine where they go from here. they're in a tough spot. neil: thank you very much, kelly o'grady will update us on both networks, fox business, fox news on this drama as it unfolds. jonathan hoenig and susan li. thanks for joining us on this. susan, worst-case scenario twitter goes belly-up, extreme. if make a legal case if not for you, elon that we wouldn't be in this pickle. what do you think? >> the company still makes billions of dollars in revenue. could it be better? obviously yes. that is the argument from elon musk muck himself. do you think elon musk wants to walk away from the deal since he built up the 9% stake since the end of january? you don't agree to waive due diligence or a billion dollar breakup fee if you don't want
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the property but i was talking to those in silicon valley, they were saying if twitter wants to go to court, this discovery process could get messy for everybody involved because this bot inflow, bot controversy it isn't know, neil. it has been around three years. did twitter withhold the information and what did they agree to? neil: jonathan, i draw a distinction with susan, in other words, disagree with her, i think things changed dramatically for elon musk when he saw tesla stock tumble, sees himself lose a third of his value and he looks at it and says what the hell have i gotten myself into here? we wonder if that is the reality. if we don't get at least the confirmation of the bot allegations he raised time and again, it doesn't help him. what do you think? >> neil in a free economy there are no kings even elon musk said, doesn't have unlimited resources. tesla's stock is down 40% just
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this year. that means it requires a 66% return just to get back to even. elon musk tremendously intelligent, successful individual, but in this case like icarus has flown a little bit too close to the sun with those wax wings. so much of this bid, neil, was emotional. it was egotistical, politically motivated and he missed the boat. the whole environment has changed, facebook, pinterest, tesla, these are weak stocks now they're not growth names. is overpaying by a long shot at $44. >> why waste all that time then to launch this takeover, use all that money? there is $10 billion of tesla stock sold. i don't buy the fact he was trying to buy twitter in order to mask the fact he was selling off tesla shares. they have dropped off 40%. neil: you're right. do you think he envisioned that?
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no one could foresee degree of tech selloff i grant you that, that we're losing money hand over fist because you're on this social media lark, do you think he appreciated gravity of that selloff? >> obviously no one can predict the markets and obviously nobody can pick the bottom. neil: jonathan can, jonathan is pretty good at it. >> jonathan you tell me. >> susan to your point, even bitcoin elon promoted quite sometime, tesla is down 500 billion on the bitcoin investment, elon is successful entrepreneur but even he doesn't have the midas touch. looks like his bid was way off the market thought it was worth. >> negotiate a cheaper price. do you think he will go with 20? neil: you might be right this is all about extracting a better deal. you end up with a company where they're laying off people faster
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than me outside after fruit buffet but i wonder if you get the company at a much lower price but it's a shell of a company because everyone has left? >> think about impact to earnings later this month in such an unknown environment who the owner is. is it still a public company? does it to private? what about all the employees either left or will say or have been fired? i think there are a lot of questions specially in this looming economic slowdown where ad revenue will hurt everybody including facebook and definitely twitter which hasn't lifted up some say some of the growth hype some have actually met on the market. neil: to that point, jonathan, at around 33 bucks a share would you be kicking the tires of twitter yourself? >> neil what twitter is are the minds behind it this company is based solely on the intelligence of its employees. this historically not unlike the
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aol-time warner of tremendous overpayment for an asset that isn't worth three or four years down the line people thought it was and what i fear for elon's sake, frankly a lot of tesla shareholders, tesla seen now, neil, $700 a share. three years ago it was $60 a share. if iting anything like the tech boom and the tech bust, tesla could have a long way to fall. >> guys, let me ask you this. say we go lower and we're not paying 45.20, we get 20-dollar range is there another buyer? do we have bravo, silverlake, $20, 20 billion that might look cheap for a company that still brings in billions of dollars of revenue? neil: presumably you could bring in larry ellisons, some of others who were backing up what musk was doing but we're a long way from there, jonathan, do you think? >> exactly it. twitter, susan as you've been reporting on, talking eye bought, it's a profitable company, a successful company in
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many regards. it is not a growth company anymore. reminds me very much of cisco. cisco didn't die after the 2001 tech bomb but didn't go somewhere for a long time. whether private equity, another tech entrepreneur might get twitter at what seems like a very big price. neil: someone will nab it. we'll see what happens. guys, thank you very, very much. meanwhile as susan indicated here the company, twitter is lawyering up. they have this almost marvel-like law firm of law firms to do a lot of the sort of cleaning up here and to state twitter's case they were deceived by elon musk. let's get the read from the net choice vice president, general counsel, professor of internet law at george mason university, scalia school of internet law. someone who knows internet law a smart at this pants. twitter can claim we had a deal. this is just cover for him to
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say he wants out of the deal. i guess that will be the legal argument. obviously it is more layered than that. where do you think this is going? >> i feel like i'm watching an episode of "succession" where the way this is playing out. everyone that bought a house there is fundamental difference between contract and closing. that is where we're at now. elon musk is realizing after he kicked the tires maybe he doesn't want to buy the house. every time you buy a house you put down a earnest money. that is what we're talking with the one billion dollar breakup fee right now. this will go to court. a lot of talk that documents and informations on the actions of twitter will become public. i won't see that is playing out in court. more often than not, that is seen by the judges and attorneys, not by the general public. but at the end of the day elon musk has a choice, will he lose $20 billion if he goes
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forward with the purchase and or lose one billion dollars with the break-up fee? neil: i'm sorry, my friend, it wouldn't be just one billion, twitter will hold him accountable with more than that. i wonder, here is your billion dollars, leave me alone but they are going to claim his reason for leaving, that they misrepresented the deal whatever, when they in fact say and may prove in court everything they said about bots being no more than 5% of their overall base was accurate? then they could say, see, this was all just you, elon, just trying to wiggle out? >> you know i think the idea that elon musk, one of the smartest people on the planet, one of the founders of paypal was unaware of bots just doesn't pass the logic test but at the end of the day you are going to see some of the top tier attorneys in the nation fight it out. ultimately you get to a point where both parties say enough, no mas, settle.
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the likely walkaway will be about a billion dollars or so paid out by elon musk and both parties will go their different ways and as -- neil: i know i'm belaboring your point, but it could be a lot more than that right? it could have a breakup fee called for due diligence and he didn't do due diligence, but there is possibility the pox is on him and could be significantly more than a billion? >> i mean that is always a possibility. i'm just looking at how this typically would play out where you got both parties looking to get over this and move on, get back to building more businesses, more competition and at the end of the day this is the free market working which is absolutely what we want to see as conservatives, as people who are in favor of free business and we actually just released a poll moments ago, overall americans trust private industry more than the government. 72% of republicans in fact. that is what we're seeing here.
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we're trusting the private sector to solve this question. we're not going to turn to the government. may turn to the courts but not the government. neil: in the end someone might scoop up twitter if it isn't elon musk but, you know, the animals have left the barn. you can arc, i didn't like all the animals in the barn because they're all liberal but you left the barn, pick up a shell of a company and i wonder how that folds out? >> i think we've seen a lot of changes since the announcement by elon musk of this exact issue. alex per ren send had a lifetime ban on twitter but he has been reinstated. twitter is doing introspective analysis what can we do get more on track, better at the content moderation policies because of the actions of elon musk? that will be driven by any further perspective buyer. they will look at it, what are the people demanding? are they demanding something open like elon musk is proposing orbit more closed off, what
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we've sometimes seen on other services. the wonderful thing that twitter is doing introspective analysis whether coincidentally or because of elon musk and they are going to begin moving forward in a way that makes them more valuable to shareholders and more potential buyers. neil: we'll watch it closely. carl szabo, thank you very much. both twitter and tesla down markedly. this legal brouhaha only now begins. it could go on for sometime. meantime shareholders and employees at twitter are running away. we'll see how long that lasts. meantime how long the slip-sliding away of gas prices last. 27th potential day where oil prices are declines as well. all of this ahead of the president's trip to saudi arabia where he is at least laying the groundwork for asking the saudis to do more on this front, after this. ♪.
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first psoriasis, then psoriatic arthritis. even walking was tough. i had to do something. i started cosentyx®. cosentyx can help you move, look, and feel better... by treating the multiple symptoms of psoriatic arthritis. don't use if you're allergic to cosentyx. before starting...get checked for tuberculosis. an increased risk of infections some serious... and the lowered ability to fight them may occur. tell your doctor about an infection or symptoms... or if you've had a vaccine or plan to. tell your doctor if your crohn's disease symptoms... develop or worsen. serious allergic reactions may occur. watch me. neil: all right. this is the fallout from the higher interest rate environment we see. mortgage demand has been ebbing
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a little bit in the latest. permits, a sign of future construction ebbed a little bit. now home sale cancellations jumped in june as a lot of buyers simply backed away from their deals. 60,000 such deals essentially fell through. they represented at the time about 15% of all home sales that have entered contract. again that could be a precursor of things to come. we wanted to pass that along, the number of canceled deals, potential buyers themselves, opting out of those contracts. we'll keep an eye on that. also keeping an eye on the president's upcoming trips abroad to israel and certainly to saudi arabia that latter one is the one closely scrutinized because the president of course has been a frequent critic of the crown prince and more to the point saudi arabia in general. gillian turn hears a lot more on all of that out of washington. gillian? reporter: good afternoon to you, neil. ahead of the president's middle east tour some democrats on capitol hill are joining
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ranks with republicans say that leader of the free world shouldn't visit with saudi arabia and definitely shouldn't meet with the crown prince there. he is notorious sending hit squads to foreign countries to execute his own citizens. take a listen to this. >> i don't think this is a good idea. we are essentially supplementing human rights with the president going forward with this visit. reporter: president biden voiced in a op-ed published this weekend, human rights, i know many disagree with my decision. my views on human rights are clear and longstanding and fundamental freedoms are on the agenda as i travel abroad as they will be during this trip. this comment is in stark contrast with his own justification for the trip just a few weeks ago. take a listen. president biden: happens to be a meeting taking place in saudi arabia. that is the reason i'm going. it has to do with national security for them, for israelis. i'm not going to meet with mbs. i'm going to an international
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meeting. he is going to be part of it. reporter: this isn't the first about face for the president when it comes to saudi arabia's notorious mohammed bin salman. look to the former dni. >> this will be an awkward diplomatic visit would be an understatement. he promised to make the crown prince, mohammed bin salman a pariah. reporter: we checked the tape. listen to president biden back in november of 2019. president biden: we'll in fact make them pay the price, make them the pariah that they are. reporter: once this trip happens, whatever president biden's reasoning may be he will bear the distinction of the first american leader to travel to saudi arabia to meet with mohammed mohammed bin salman since he ordered the eggs excuse of journalist. jamal khashoggi. neil: there is providing some
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cover for him and increase production that some consider tepid amounts thus far? we have jay young. jay, i almost think it behooves the saudi's, not to compound the president's pr ills on this and leave him empty-handed, saudi arabia do something on oil but what do you think it is if anything? >> i don't know if saudi has the oil. frankly there is nothing that tells us exactly that they have the oil number one. number two, why would they want to sell more oil at less money is another reason? so we're backed up, our supply is not meeting our demand right now and we're going through the roof. there are a lot of things we can do but right now we're just trying to beg and i don't believe that's the way to solve the problem. neil: you know i just wonder as well the saudis have to be careful as well though, right? they have a good memory how opec overplayed its hands in the
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'70s, by essentially pushed the whole world into global recession that later went back to bite them as well. they almost fell apart then. how do they dance this line? >> they are going to have to continue keeping these prices up. i feel like the prices are going to be -- people are talking about $80 a barrel, $200 a barrel. they're not going to you know, continue to let more oil out unless the prices are high. why would they want to, like you said why they want to sell more oil for less money? no reason to. if they flood the market like they did right before the pandemic, that is one of the reason they killed the markets, pandemic, number one. number two, they were trying to oversupply us with oil to put us out of business. therefore not a good turn for them. they oversupplied. all of sudden they lost a lot of money during that whole fiasco. i think they will be more careful. i believe they will play it closer to their hand, we're not going to give as much oil now.
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we have oil of the united states but for some reason biden is not pro drilling and pro united states drilling but i think saudis, i can't see them just giving out more oil for less money. neil: you might be right, jay. i'm curious too, part of me think the saudis are relishing this moment. obviously the president as candidate for this president was quite critical of the regime, that extended way beyond mohammed bin salman. i wonder if they know the pickle he is in? he sworn off production in the united states that made us a bigger producer than saudi arabia itself and they kind of relish this moment? >> i'm with you there, neil. i do believe that. i also believe, look at putin, he is not selling as much oil now. prices are going up. you know a long time ago i remember i was saying why would countries want to sell more oil for less money, and all of
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sudden it becomes a misnomer here, wow, we don't want to do that. now we want to sell less oil for more money but let's don't go so far that they stop our demand. as long as demand is going up, you're supply comes down, why not, right? neil: yay. >> that is, that is a business. neil: well-explained t got through even my thick skull. jay young, great seeing you again. jay young, following these developments here, president at the end of the week will be meeting with the saudis and again the expectation he leaves with something isn't such a sure thing. what is a sure thing i can tell you in other big global news, covid, it's a big situation again. in china cases are seriously spiking, so are hospitalizations. it has gotten so bad now china is set to impose new restrictions. we gotten world china's so-called casino capital macau is now in an official lockdown. what gives? what about the global economy? after this.
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♪. neil: all right. the world may be over its covid fixation but in china it's a big worry a serious worry, such a worry china is cracking down on its so-called casino capital of macau, and essentially locking it down and imposing other restrictions elsewhere in the country ands cases flare-up out of control and hospitalizations do too. it is not as bad in our own country but there spikes in cases. dean chang joins us, heritage
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foundation senior research fellow. dean, i don't know if this is an overreaction because much of asia was closed for holiday but markets that were open were getting pounded. is this worth the pounding and is it justified? >> well i think that with global volatility that's going to be weighing on peoples minds but with china closing down, and closing down unpredictably, part of the problem is you're affecting supply chains. because it is random which cities shut down and how long, you're in a crapshoot in terms of which supply chains are affected. whether in malaysia, japan, elsewhere, you wonder if i will be hit next. neil: china has had longstanding policy for zero tolerance of covid cases even when they only get a couple of the big, five, six, up to 15 variants. i can't keep track these days.
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that is enough for them to essentially shut the whole country down. we're not there yet, but there in pocket the for china, and it is giving manufacturers a pause, because it is causing a real pause, isn't it? >> absolutely. and because china has parked so many supply chains you're talking about multiple industries. you're talking about automobiles. you're talking about consumer goods. you're talking about computers and potentially shipbuilding and other things. the other worry here is as china heads towards the 20th party congress in the fall where xi xinping will be reaffirmed as party general secretary that they are going to amp this up because i think nothing would make xi happier, to announce all of china is zero could have individual at the opening of the party congress. neil: you would have at least some activity, zero covid is nice but zero economic growth is not nice, right? >> absolutely but again when you
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control the statisticians you control the statistics. neil: you're right. >> right now of course it is, looking like the chinese economy is going to be slowing down. that is not something he wants to announce. neil: right. that is the whole line in china catch as cold the whole world gets pneumonia. we'll keep an eye on it. dane chang of the heritage foundation. we're following the supply chain disruptions for this sort of thing. it goes way beyond cars and computers. when it comes to cars this kind of thing is affecting car repair costs as well. i will explain. ♪
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♪. neil: all right. hard enough to find a new car let alone pay the double-digit increase in prices for the honor. now it is going to cost you a bundle just to repair the one you've already got. madison alworth has more why that is happening in new jersey. madison? reporter: neil, yes on average repairs are up 6%. but obviously for certain items you pay a lot more. transmissions, tires, all that is up. no surprise, oil, that has run up. tell you more about that as i give it to kevin so he can continue working on the car. this oil here, would have cost the shop $25 for seven quarts. now they're paying $41 for the same amount. owning a car feeling out of the realm of affordability for many americans as costs continue to rise. average car payment is $712 a month. insurance is on average $1500. not just new cars.
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used cars are up 16% in costs year-over-year. the owner of this auto repair shop despite increased costs people are holding on to cars for longer. >> putting 3, 4, $5,000 into a used car where they normally wouldn't it, but if they buy a new car it would coast them, 6, 7, $8,000 more. reporter: he is using oil changes to get customers in the door. first time in 15 years they had to increase the price by $10, even though many repairs have increased in costs. they have been busy. i been here all morning. continue to see people come in. reality, neil, even with increased cost, cheaper than buying the new car or used car. the people are trying to hold on to the vehicles long as possible. neil: thank you for that, madison alworth in ledgewood, new jersey. he deals with it all the time.
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a business owner, owns at least six new jersey luxury car dealerships. tom, one thing having trouble getting a car, now getting someone to service the car, parts they need to work on the car, a devil of a time, right? >> yes. good to see you, neil. it is impossible to get parts. parts are impossible. supply chain is backed up and technicians they're hard to come by. you can't get technicians, the technology in these vehicles is getting so dramatic that it is hard to get technicians who know how to work on these cars. we have a whole another cycle. they are coming out with electric cars. these technicians don't now how to work on them. the costs are rising. there are no parts available. we can't get tires for cars. when you call into dealerships, we're two weeks backed up on appointments only because we can't get the parts. neil: it varies by model, tom, how long someone want as new
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car, depending on the model will they have to wait if they can get it at all? >> you know, listen could take up to six to nine months depending on the model. we do have some in stock on the ground but it is very, very limited. if you want, it is impossible to say i want a custom color or custom interior now. we're selling cars at one of our dealerships without screens in them. we tell customers come back, we'll put the screen in when it comes in. listen, a few minutes ago you you were talking about supply chain issues and covid in china. that is all affecting it. it will get deeper. neil: a lot of this stuff comes from china that neck of the woods? >> a lot of the stuff comes from china. america outsourced most of their stuff from china. we manufacture parts here, we assemble them here. but we don't get parts here. a lot of parts are made in china. that is part of the problem. neil: i wish my late great, dad, were here to see this, tom,
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because he warnerred i don't like the fancy cars with chips. lo and behold we're finding out you're dependent on that stuff, especially so much of that stuff isn't from here. we're beholden to people who don't exactly flip over us, we have some whammies ahead, right? >> correct. we do. the younger generation doesn't, nobody is going to auto mechanic school anymore. these are not mechanical, when i grew up take the car apart, put it together. the electronics these cars are so immense, you have to have an electronics degree, not automotive degree. neil: you're right about that. keep us posted on how this is going. you have to deal with this with shops you own. when we look at all of this, we're wondering i can't get a car to drive around. you will have a devil of a time trying to find a plane that isn't packed already at a an airport that isn't seeing delays and cancellations already. the transportation secretary of
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♪. >> this is my first bad guy. >> never father get your first. i will choose my own path. i assume your own days are over. neil: let's say thor four was not a bore. it made $140 million in u.s. ticket sales this past weekend and that is something that was reflected worldwide. "thor: love and thunder" made over $300 million globally over the weekend. here is the thing, it wasn't released in china. the chinese have a number of issues with the pot line, the storyline, the whole lgbtq thing i regrets. that is remarkable. when people want to spend money, things they like to do, things they like to see. you don't see that across the
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whole spigot. lydia hu following all the fast-moving developments. lydia? reporter: hey there, neil, when we look at the airline industry we continue to see delayed an canceled flights interrupting travel for thousands of americans and transportation secretary pete buttigieg says there is some improvement. seems like numbers over the weekend do show that but still the trends are not acceptable. just over the weekend we saw one in four flights delayed and more than 550 flights canceled. pete buttigieg addressed the cancellations on "fox news sunday." watch here. >> the numbers i just saw from the last few days, they're around 2, 2 1/2%, still higher than they should be. it is never going to be zero but we really want to see them push towards the 1% or so with realistic scheduling, responsible customer service and all the things airlines need to do to properly service the tickets they are selling to passengers.
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reporter: now the transportation secretary says investigations has found cases of canceled flights without refunds offered to customers. and they are launching more investigations now. part of the problem behind the cancellations and delays is a pilot shortage and lawmakers like senator lindh spy gram -- lindsey graham raising mandatory retirement for u.s. commercial pilots from 65 to 67. but buttigieg opposes this, saying that could compromise safety. he instead supports a stronger high school and college pipeline to get students into airplane cockpits. 40-year high inflation is proving that nothing, nothing is sacred, not even beloved staples on two food court items at costco. according to the reports costco's famous chicken bake gone from 2.99 to 3.99. a 20-ounce soda is 10 cents
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more, costs 69 cents. neil, perhaps not a surprising move because grocery store prices, they are soaring up nearly 12% over last year but especially notable in this case because costco, you know, it is famously known for the commitment to inexpensive snacks like the hot dog and soda deal you can get. selling that for a buck 50 since the 1980s. this is definitely catching some attention, neil. neil: imagine what thor would make of this, i am not going to pay that much for chicken. that is the best i can do, lydia. >> best i can do. neil: man, that is a lot for chicken. bring back the prime rib. mitch roschelle, when we pick or choose our battles we'll spend money on, movie ticket is one thing, a pricey flight where your plane is delayed or denied is quite another. where are we in this whole recovery thing do you think? >> i think we're at the point, just as you said, neil,
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americans are starting to pick and choose what they will pay for and what they won't. people thinking of taking summer vacations, i'm hearing from the lodging industry many of them are shortening by a day, not traveling as far. instead of going to the movies to see thor and maybe the next blockbuster that comes out, maybe they just see one of them. i think that is what is happening. fancy term for it is demand destruction. it is the thing that ultimately brings down inflation, policy aside, it is really the consumer that makes the decision ultimately and i think we're starting to get there. little changes on the margin people can tolerate but you know when the vast majority of prices continue to go up and the prices aren't ebbing at all, i think ultimately the consumer will start cutting back. neil: there is a flip side to this as you reminded me, mitch, if you're a saver, certainly on a fixed income, there could be a boon coming your way, social security payments will likely
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ratchet up dramatically next year. who knows maybe 10 or 11%, cost of living adjustment could go that high, back to what we saw back in 1980. what i find interesting as well, mitch, perusing a lot of newspapers, particularly in florida, where you know these quite well where they advertise to an income generating community, staggered cd and savings rates, i think we have some examples here, where they're not only touting something over a percent which was inconceivable not too long ago, a lot of them now are increasingly talking about staggered increases, longer you hold your money with them the more the rates go up. for people now inclined to want to protect what money they have then gamble away as they see it in the stock market that could be big competition. what do you think? >> what's interesting, neil, is the whole 60/40 model where you put 60% of your money in stocks or equities, 40% in bonds or
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fixed income instruments has really gotten shattered in the last six months. both stock and bond prices have gone down. you want to flock to the safest bet you put money in old-fashioned bank. you and i remember they gave out toasters to get people money put in gangs. the problem the rates are exorbitantly low, coming up with it, they're not keeping pace with inflation. the thing i worry about more, the savings rate in this country is starting to drop dramatically, especially comparing it to other places in the world. people who have savings are starting to eat it into just to fund the price increases they're experiencing. but you will always see in times of uncertainty people flock to the safest bets out there. bank cds will always be the safest bet. neil: i can understand the environment where a lot of people lost their shirt in the stock market, i might as well protect what i have than gamble money i don't want to lose. i get that.
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what is interesting me some banks offering cd, savings rates, you and i can remember much higher rates, that notwithstanding, why do the big money center banks, big investment banks offer same rates or track fraction of them? some of them, the biggest paving a quarter, a half a percent if you're lucky. they're not in on this. why not? >> what is really interesting, when you think about it, what is a cd? it is actually you lending money to a bank. that is really the way it works. neil: right. >> actually if you look their liabilities on the balance sheet. deposits are liabilities on the balance sheet of the bank. big banks have other means to borrow money way more efficiently. they may not be able to borrow money as cheaply as some of these low rates but they can do it way more efficiently. so to finance a big financial institution like a jpmorgan, you know, credit suisse for investment banks, for them to do
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it they need to be able to borrow billions of dollars very, very efficiently. so it is smaller banks, what they look to do is use these low rates to build new relationships in the community and that is sort of the old school model of banks which by the way, those are models time proven to be most profitable for smaller banks, just put out a high teaser rate, get a new customer, hope to keep them for a long time. neil: they tend to be loyal to banks that do that for them particularly in states like florida. we're following it very, very closely. good seeing you my friend, mitch roschelle. we have more coming up on the selloff, more on the technology selloff and more what is happening with twitter and tesla, that deal exploded, and both sides are preparing to lawyer up for a battle that could be epic, i mean epic. could be expensive. may be the most expensive of all time. ♪
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stagflation word again. we're a long way from that, i might caution here, but it hasn't gotten in the way of about 6 out of 10 democrats saying they would prefer another candidate other than joe biden to be their party's nominee in 204, that's a new york times poll. more on that. >> -- in just a second. edward lawrence on the white house still defending its policies and a couple of key foreign trips this week. >> reporter: yeah, trying to change the image going forward is what president biden is trying to do. he was rewould haved -- rebuffed, some say snubbed by the mexican president last month. now the president of mexico will come here to the united states as the president, president biden, is trying to reset his global image. he's also justifying his trip to the middle east including saudi arabia as a way to bring a close ally even closer for stability in the middle east. now, in an op-ed in "the washington post," the president writes this: my administration has made clear the united states
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will not tolerate extraterritorial threats and harassment against dissidents by any government. the saudi prince is implicated in the murder of a journalist. the op-ed goes on to say that saudi arabia's working with the u.s. to stabilize global marks and from the -- markets and from the start my aim was to reorr rent, not rupture -- orr rent, not rupture relations. saudi arabia has helped restore unity among six countries of the gulf cooperation council. are republicans say this is what makes president biden look weak, because we have same oil in texas and oklahoma. >> to replace american oil and gas that biden has launched this war on, he wants to do it with venezuelan, saudi and iranian oil and gas supplies. it's just an asinine policy. >> reporter: so former assistant secretary of state under george w. bush said the timing of this trip is suspect and working on peace in the
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middle east should have been a higher priority not raised because of inflation. >> picking up a page from trump and trying to move it forward and get saudi into the abraham accords would be a great step forward. we shouldn't be over there begging for oil. >> reporter: and the administration maintains that oil though is not the main part of this trip, although they do admit it will come up in a discussion with the saudi king. back to you. neil: be nuts if it didn't, right? edward lawrence, thank you very much at the white house. hillary vaughn on what democrats are suggesting be done to address all this, and they say it's hard time to tax high income earners. a number of efforts failed on the part of democrats a sharety of times to hike -- variety of times to hike taxes on the well to do. it's at about 37 percent, they wanted to get it back to the old highs before the 2017 trump tax cuts and jobs act to bring with it back to 39.6%.
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but they're revisiting that now. hillary vaughn on capitol hill with more. hillary, where does this stand? >> reporter: hey, neil. chuck somer is trying to land a legislative win for president biden, so that means revising negotiations with senator joe manchin on a skinny version of build back better. just focusing on climate, health care costs and deficit reduction are. but even though some texts have been released for the health care cost portion, there is a lot of differences that still have to be worked out. senator manchin's spokesperson if telling fox in a statement this: suggestions that a reconciliation deal is close are false. senator manchin still has serious, unrevolved -- unresolved concerns, and there is a lot of work to be done. a big thing that's up in the air, how to pay for it all. bloomberg reports it could be something like this, a 15% corporate minimum tax, a 15% global minimum tax, an additional surtax for high
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million earners, increased tax audits that they think will bring in more money and a 1% tax on stock buybacks. but reportedly off the table, a millionaire's tax or a wealth tax. but reuters reports they are also looking at closing a tax loophole that many pass-through small businesses use, raising an additional 3.8% tax on income earned from those businesses. but while a lot still needs to be negotiated, there is one big hiccup. leader schumer tested positive for covid over the weekend. his spokesperson says though that is not going to slow schumer down saying this, quote: anyone who knows leader schumer knows even if he's not physically in the capitol through virtual meetings and his trademark flip preponderance phone, he will continue with his robust schedule and remain in near constant contact with his colleague. this is a big deal, neil, because time is of the essence for democrats to get something done. the clock runs out on reconciliation october 1st, so
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schumer really hoping to have something submitted, some text agreed to before they leave for the august recess. they'll then be gone all month and try to pass it the month of september. neil? neil: just a couple of months away from the midterms. that should go well. >> reporter: yes. [laughter] neil: hillary vape, thank you very much. want to go to gerry baker, "wall street journal" at large host, great thinker, great writer. jerry, the fact that they are even thinking of revisiting the tax increase issue, what people forget and republicans quietly will remind voters about is those tax hikes never went into effect. they failed. but they keep trying. is we've got a very different kind of economy. i'm not sure no matter where you stand on this issue that that would help matters any, but your thoughts. >> no, you're absolutely right, neil. i mean, it's, you know -- [laughter] most of us would probably think it's never really a good time to raise taxes for an economy where you're trying to generate
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long-term growth, you're trying to generate prosperity. but at a time when the economy is flat at best, we've got this picture where employment continues to be growing, but we know the output numbers are plant, the federal reserve is aggressively raising interest rates, that combination is going to push the economy quite possibly into recession, may already be there, certainly going to -- a prolonged period of weak, stagnant growth. if the response to that is to raise taxes, particularly on small businesses that you were just hearing about, i mean, my sense is i think this is being driven, again, by this crazed desire on the part of the democratic party to be seen to be somehow radically reforming the economy with their build back better plan. they want to do this green stuff, they want to do more health care spending, they want to sort of -- they want to justify themselves. they want to give the impression that somehow they're making some significant changes and, obviously, to do that, they're going to have to find a way to do it. this is not the time, these are
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not the measures, these are not the circumstances we should remotely be even considering raising taxes like this. neil: i cowonder though the -- i do wonder the push and pull the president gets from progressives who have criticized what they consider to be an anemic response, for example, to the roe v. wade ruling and the supreme court essentially torpedoing that and the fact that he has not done more to stick it to the rich when i think the president knows in his heart of hearts this is not the time to be bouncing this around. it does explain why more than 6 out of 10 democrats, which that includes all of them, are saying, you know what? there must be someone out there there other than you to lead us in 2024. where do you think this is going? >> yeah, he's -- the that new york times poll you mentioned, astonishingly low, 33% overall approval rating. i remember john mccain had had a great line are when his
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approval ratings used to go down low, when you're down to those kind of numbers, you're down to personal friends and family members. [laughter] democrats are not far off that number now. and by the way, the interesting thing within the details of that poll, neil, which i looked at, approval among progressives, among the left is actually quite high for biden. so, you know, you're right, they are concerned that he hasn't supposedly been tough enough. not sure exactly what he's supposed to do of on roe v. wade, put abortion clinics on every military base or something like that. but actually, that's quite a telling indicator. where his numbers are really poor, historically poor for a democratic president are among african-americans, among hispanics and among, of course, most strikingly among independents x. that's to me, again, another signal of how out of touch the party is. the democratic party, the president should be trying once again to repudiate -- or, rather, for the first time, to
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repudiate the progressive left, to repudiate the policies they want him to do, to try and reposition himself as the president he claimed to be, a president who was gown to govern from the -- going to govern from the center. all of the clinical evidence we have supports owl of that, and strangely, he continues to want to press these buttons that kind of seem to excite the left of the party like higher taxes -- neil: right. >> like making more of these kind of observations about, you know, woke observations. it's quite remarkable, the refusal to condemn these protests against supreme court justices. this is all designed to tickle the belly of the left of the party while he's driving himself further and further away from most americans. neil: you know, he does need sort of a bill clinton sister soldier movement, right? some scary things, and that paved the way for him to feed the sort of moderate force that emerged as a democratic nominee and, surprise-surprise, get elected. clinton proved it again when his
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party lost to newt gingrich and the republican wave of 1994. he not only acknowledged the fact that the era of big government was over, but he joined the parade and ultimately led it by the growth of programs like medicare and some of these welfare programs. i don't see that approach or response certainly yet in joe biden even though that was the way he was many years ago. what do you think? >> i agree completely. i mean, obviously, joe biden lived through that. he was already into his, into his later years when bill clinton was president -- can. neil: that's right. >> he was already well into -- he'd already been in congress more than 20 years at that point. neil: and he ran for president four years earlier. very good point, yeah. >> exactly, that's exactly right. you're absolutely also right, neil, that he understood -- he supposedly got the hedge, right? he was part of this new
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democrats, first of all, you know, bill clinton's particularly as you say when he had such a disastrous first two years, he signed on to all of those things, welfare reform, the kinds of things that clinton did in the 1990s that repositioned him as a centrist, president and supposedly biden himself suppose suppose learned that lesson. and here we are he is not only are preeting the mistakes, he's kind of doubling down on them. i do honestly think, i was amused over the weekend to see the new york times put on its front page a story saying people have discovered that joe biden is an old man. [laughter] i don't know how much news, maybe come as news to the reporters and editors at "the new york times," but it hasn't been news to the country. he's 78 years old, he would be 81 -- sorry, 79, he'd be 82, i think, if he took office in a second term. that's an extraordinary, for anybody, anybody of sound mind
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and fitness and good health, that's a very, very advanced age to be making important decisions. and you do have to wonder, you do have to wonder without being cruel about the advanced age of this president whether his failure to respond to these obvious signals, these political signals that are telling him you need to change course, otherwise you're headed for annihilation, maybe that does somehow reflect just the kind of, just the immobility sometimes that older people get where they just aren't able to respond the in that way. neil: gerry, just get off my lawn, how about that? [laughter] thank you very much, jerry baker, the best. we have a lot more coming up including getting a read on this twitter battle, what happens now that elon musk has abandoned his quest. or has he? maybe he's clever by half. charlie gasparino on the clever by half front after this. ♪ ♪ i'm way too good at good-bye.
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neil: i don't. i'm just saying there are enough noise issues to think, you know, maybe -- >> yes. he knows it's overvalued, and, you know, he -- what better way to take an overvalued stock -- neil: i've heard that, i don't buy it. >> -- than to go out and buy a toy? neil: no, no, no. he's erratic on this, brilliant guy. >> if he's erratic, you've got to give him odds that he'll probably do it because he's crazy. neil: well, but he could also just say, you know, what if we said i'm right and you're wrong? >> not ted's steakhouse. neil: not ted's? if. >> one other thing -- neil: olive garden? >> yeah. all the bred sticks you can eat. -- bread sticks you can eat. neil: a lot of people have reminded me, you know, neil, the olive garden is a sort of value italian restaurant, if it's gasparino who has to pick up the
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check, you should go much more highbrow. to the aforementionedded charlie gasparino. it's too early, but you've got to wonder now, where's this going? and, by the way, extra bread sticks. >> yeah. we'll go to san piedro, don't worry about it. neil: oh, man. >> here's the thing, we don't know how this is going to edge, as you know -- neil: oh, i do. i've made it very clear -- >> you don't think it's going to happen. neil: no. ing it doesn't look like he'sst it's going to happen. >> if they go through with this legal battle, it does set up the heel battle of the -- legal battle of the century in ground zero for corporate law. let's just unpack this a little bit. if musk prevails, he would essentially have said that twitter has posted 10 years' worth of false documents with the securities and exchange commission and investors over his bots, you know, the use of these fake accounts --
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neil: right, right. >> think about that. that means jack dorsey, costello, forget the other ceo's name, the dude that's running it now, they all face serious probably criminal securities fraud charges if he is right and they've been hiding the football here on these bots. that is pretty amazing. and who knows what happens to the stock. i still think the stock without elon is it has a 20 in the number. we're heading that way noun. okay, let's just say if twitter prevails, musk is going to have to come up with $44 billion at a time when his currency for that money is a declining asset named twitter -- tesla. sorry. [laughter] neil: you're right. >> i get mixed up. and if he says no, and a lot of people are speculating what happens if he just says no, what are they going to do about it? well, guess what? if you defy a court order, and i bounced this off none other than john coffey, preeminent
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corporate law expert, he could go to jail if you say no to a court order. neil: what's the most he would have to pay, charlie? so the chief executive officer right now, he's demanding you made a commitment, elon musk, to buy this company. you've damn well got to buy it. now, he was this billion dollar break-up fee, but you argue detective potentially get a lot more than that. >> remember, that's just the break-up fee if they have to back out for legal reasons. if he makes up stuff, if he starts throwing stuff out there that is not true about their bots hurting their stock price, who knows what a judge is going to hit him with. and, by the way, look what's going on for the sloppy steve -- [laughter] as trump used to call sloppy steve bannon, defied the court order to appear before the committee, defied a subpoena and now appearing because he's going to go to -- you know, i'm sure he's not going to be too popular in jail, because that's where he
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was going, you know? that's -- if you defy court orders, you know, that there's that possibility. journalists have been thrown in jail -- neil: but you're making the assumption that he would. we don't know that -- >> well, i mean, that's, you know, you've got to think in these terms. that's why there's a lot riding on this. and that's why a lot of people think -- those are the extremes -- that they settle in the middle. and, you know, what is a good price. twitter's problem is this stock is going to have a 20 in it very soon unless they cut a deal with elon that -- neil: so you don't think someone else emerges to do a deal? >> i don't know who. i mean, big tech is out. they can afford it. i mean, google throws off gazillions of dollars in cash, they could afford it in a second, but i don't think a biden administration if would allow -- i don't even think a are republican would allow any of these tech companies to get bigger. so democrats and are republicans from an antitrust standpoint won't met that happen. it's a coral company for private
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ecty, and i've always said this, you know, when you really look at this, what did gordon gekko call those bad companies? dogs with fleas. this is just a prototypical dog with fleas. if you look under the hood, it gets a lot of -- everybody talks about it, but it makes no money, it has lousy cash flow, it's got some debt now, and right now it's going into, you know, a tech winter, so to speak, you know? markets are correcting, particularly anything with tech. if i mean, this is a crappy investment. you would think someone like -- the only person that would step up and do something like this is some crazy guy like musk who wants to, you know, fix it and have a say and be like a publisher, you know? like that's why, that's why jeff bezos bought "the washington post," to have a say. although he only paid $250 million for it. he was bidding -- elon's bidding $44 billion. so there's a lot ott stake -- at stake here.
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a banker who tells me he deals with musk, he doesn't deal with balance sheets and stuff like that or else he would have done due diligent -- due diligence. it's all instiment. maybe his instinct is i really want to pay 35 for this, and i'm just waiting for it to hit 25 before i renegotiate. either way, neil, this is gonna go a great story. neil: and a great dinner. thank you, charlie -- [laughter] my pleasure. i don't mind losing to you. neil: charlie gasparino, who always wins bents, i might point out. one of these days. to put this in perspective and all the money that elon musk, let's say you give him a round-about figure of being worth $300 billion, now, a third of that wealth has been wiped out mt. tech selloff, some of it borne particularly of the tesla shareholder, the biggest shareholder in his bid for
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twitter, but even allowing for that, a third of his wealth has been just obliterated. that still leaves him with about $200 billion. easily making him the richest man on the planet still even with that. more after this. ♪ this isn't just freight. these aren't just shipments. they're promises. promises of all shapes and sizes. each, with a time and a place they've been promised to be. a promise is everything to old dominion, because it means everything to you.
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nice. i don't think they had camels in atlantis. really? today she's a teammate at truist, the bank that starts with care when you start with care, you get a different kind of bank. neil: all right, chicago's mayor is focusing on some big news in her city. not the crime, which has gotten to be quite the embarrassment and quite the problem and quite the lethal one at that. economic recovery. yeah, economic recovery. grady trimble in chicago with more on all of the. explain, grady. >> reporter: neil, mayor lori lightfoot is headed to europe to try to attract businesses to the windy city. she says that chicago's economy is thriving and that the city is
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poised to have the best economic rebound from the pan definitelyic out of -- pandemic out of all the major cities in the united states. that is the pitch she's going to make on her trip to paris and london this week. she's expected to sell the windy city to business leaders as a financial technology company hub citing several fellowship-tech companies that have -- fin-tech companies. in announcing this trip to london and paris though, lightfoot failed to mention that three major companies that recently announced they're packing their bags too but not for a five-day trip to europe. boeing, caterpillar and ken griffin's citadel all said in the past couple months they're permanently leaving illinois and the chicago area. all of those companies, by the way, headed to lower tax that states thiess in the case of citadel. we know crime was a factor. griffin has complained about it a lot. violent crime in chicago is up 34 from a year ago. the illinois -- 34%.
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the illinois policy institute had this to say about the mayor's travels: politicses such as lightfoot should be listening to instead of ignoring chi wans calls to -- that would improve the city's business climate much more than a trip halfway across the globe to ask other countries to prop up our shrinking landscape. we have reached out to mayor lightfoot's office to ask how she plans to address this exodus of major businesses there if chicago. we have not heard back. neil? if. neil: just a matter of time. grady trimble, thank you very much, my friend. david lee miller many new york, he was their own crime issue including a dramatic one concerning a bodega, sort of like a small grocery owner in missouri. quite a few of them but not like the case that surrounds this guy trying to defend himself from a guy wishing him harm and maybe a lot worse than that. what's the latest, david lee?
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>> reporter: well, neil, few security video obtained by the new york post appears to support the claim that the convenience store clerk, jose alba, was defending himself and should not have been charged with murder. now, this controversy, you might recall, it first erupted when a previous video appeared to show 35-year-old austin smith was the aggressor -- simon, rather, was upset about a dispute, went behind the counter and and shovedded the clerk. now we see and hear what preceded that violent struggle. this portion is only a few seconds long, but it reveals alba is trying to prevent a tense situation from escalating saying, and i quote, i don't want a problem, papa. there is growing pressure on the controversial progressive manhattan district attorney alvin bragg to drop the charges. new york's mayor, a group of bipartisan city council members and groups representing small business owners are speaking out. >> we saw the footage.
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the footage doesn't lie, and we are asking, we are asking the d.a., alvin bragg, to please take into consideration this footage and make sure that he provides mr. alba the justice that he deserves. >> reporter: an unrelated incident underscores that violence in the city affects all age groups. investigators say a conflict between two teens on the streets of harlem saturday afternoon continued inside a nearby subway station, and when police arrived, their found 14-year-old ethan reyes bleeding from the abdomen, he died a short time later. a 15-year-old boy was arrested who they have not identified and charged him with murder. police say that the two teenagers knew one another and that it was unlikely, neil, that this was a random incident, this
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murder taking place here in upper manhattan. back to you, neil. neil: way too common, my friend. david lee miller in new york. want to go to curtis shree what, former mayoral candidate, lost to eric adams. curtis the, i was surprised to hear the store clerk got arrested for defending himself. many florida they have a law that allows deadly force if you believed you're threatened with bodily harm. video clearly shows that threat, so what's the debate? >> well, the debate is about alvin bragg. as you've seen, d.a.s across the country side with the criminals and actually go out of their way to prosecute victims who fight back. so this isn't all. we've seen it in san francisco, in l.a., we've seen it in st. louis, we've seen it in chicago and now we see it in new york city, in manhattan. the most powerful district attorney in the country has said
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he wants throw the book at jose alba. started with a second-degree murder charge. $500,000 bail. that's been reduced by the judge. but he won't release him. he won't release him and he won't capitulate. and our mayor, eric adams, won't pick up the phone and tell alvin bragg, name him and shame him, you better do the right thing and defend the victims of new york city and stop turning these criminals loose. neil: all right. he has been critical of sort of the round robin approach to this when someone goes through a turnstile, gets processed and let out, but it's up to the governor in this place. the mayor can't get rid of him, but the governor can, and she is not indicating that's going to happen. >> no. crime wave kathy hochul not get rid of -- will not get rid of alvin bragg or any district attorney. she has the power to do that that throughout new york state.
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that's why we've got to coaless behind congressman lee zeldin who just won a hard-fought gop primary who has said on day one when he is sworn in, he kicks alvin bragg to the curb and replaces him with a district attorney which the governor of new york state has the power. i only wish we had what california, new jersey and some other states have, recall, because this guy would be putting up a shingle in private defense practice now we had recall. neil you know, almost anywhere else in the country you talk about the inflation, you talk about, you know, some areas, you know, they worry about losing their job and all. in new york this is front and center the big issue, and i would think on that level alone politicians would respond accord cordingly -- accordingly. >> you would think. but, neil, did you ever in your life think that a drive-by shooting outside of st. patrick's cathedral and
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rockefeller center, took place at 6:00 in the morning along fifth avenue, cartier, ferragamo p all the fortune 5050 stores, and it -- 500 store, and it didn't even make the lead in the news because there's so much crime. remember, over the july 4th weekend we almost surpassed chicago. we had 54 shot, 9 dead. they had 68 shot, 8 dead. we're competing with chicago. eric adams, you want to be like mayor lightweight, lightfoot, whatever her name is, as your reporter indicated she wants to go to paris and london to encourage businesses to come to chicago, go ahead, knock yourself out. you're supposed to be law and order mayor. do your job and name and shame. your governor who's your friend and alvin bragg, the manhattan d.a.. who is eric adams' friend? neil: wild stuff. curtis, very good seeing you. end note on the whole alba situation, he was being held, so he spent a night in jail on
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$250,000 bail and, ultimately, negotiated a reduced amount that allowed him to secure a $5,000 bond, but he still had to pay up, or some of his loved ones did, to get him out. defending himself and his life and his livelihood. we'll have more after this. finding my way forward with node-positive breast cancer felt overwhelming at times. but i never just found my way, i made it. so when i finished active therapy, i kept moving forward and did everything
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neil: all right, bed bath & beyond shares continue to slip slide away right now, another 65% from their highs here on, you know, growing concerns about the state of retail in general, of course, particularly bed bath & beyond. and that despite stores that a lot of insiders after an awful quarter have been scooping up the stock. eddie ghabour says you need more than insider's buying, encouraging as it is, to change the equation for your stock, particularly in retail. and, eddie, you're not very optimistic about retail way beyond bed bath & beyond, right? >> that's exactly right, neil.
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i mean, look, obviously, merchandiser's buying is one -- insider's buying is one to oppose that you want to look for, but retail is probably the worst sector, in my opinion, to be in right now. the consumer's going to continue to get weaker as inflation gets -- stays stick the key, but inventories continue to rise. and now what's going to have to happen is they're going to have to bring prices down in the coming months as inventories continue to rise in an environment where the cost of business is really high. so it's going to be very difficult for hem to make money in this type of environment that they have to bring prices down. so i think you could potentially see one of these retailers go out of business or consolidate in the next 6-8 month,. i'd be cautious here and wait and see what happens, but we are not touching retail right now. neil: you know what's wild about it, eddie, is that even if you're inclined to go to stores and sort of check out the product, so much of it is not available. i don't know whether that's a supply chain thing, i don't know whether it's a price thing, but
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even the stuff that people want they can't get. what's going on? >> yeah. look, i mean, the supply chain issue, obviously, it's disruptive to the retailers as well too, so it's been a perfect storm for the retail sector right now. they just aren't working to their advantage. and the other thing too that we watch is the debt markets, you know? you look at the high yield debt market, and the cost of capital is getting wider and wider as the high yield spreads widen. it's a very, very difficult environment for businesses right now, and some are tougher than others. and, again, retail just happens to be, in my opinion, one of the toughest businesses to be in the right now to make money. neil: all of the attention this week the two-day prime day sale, they're expecting $17 billion off of it at a minimum. so they're, like, the leader here. how do you see week going for them? >> look, i think it's going to be a non-event. i think the bigger thing that
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this market is going to look at is the inflation data that's going to come in and how the fed reacts to that. because at the end of the day, i think that the fed is going to be forced to continue to tighten during this slowdown, and that's ultimately going to hurt these sectors. it's also going to continue to come press consumer spending, and now with some of which real estate data starting to show problems, the wealth effect becomes a real problem where the consumers are going to start cutting costs. and that will affect all of the retailers, i don't care what sector they're in. it's going to affect them in a very, very negative way. so the environment, unfortunately, is going to continue to get a little bit more challenging before it gets better, in our opinion. neil: yeah. you know, you're great at what you do, eddie. i just hope on one you're wrong. [laughter] eddie ghabour. by the way, i think i misstated that. amazon expects to see $12.5 billion from its two-day prime day sale, up 17% from last year.
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i think it inverted it -- i inverted it. anyway, amazon hopes to hit pay dirt. we'll see. more after this. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit and get started today. bubbles bubbles so many bubbles! as an expedia member you earn points on your travels, and that's on top of your airline miles. so you can go and see... or taste or do absolutely nothing with all those bubbles. without ever wondering
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neil: you know, the chinese continue to deny any hanky-panky going on or anything that we charge that has any substance to it. but when you get the fbi
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involved and you get some of these british intelligence agencies involved and to a group saying that the chinese are doing some pretty stinky stuff, a lot of espionage and deceit there, it just continues to build. david spunt on what's building right now out of the justice department. >> reporter: hey, neil. i was with fbi director christopher wray many london last week holding meetings with high-level british intelligence officials, and he said something staggering. i wallet people watching and listening right now to think about it, he said on average, every 12 hours, every 12 hours the fbi opens up a counterintelligence investigation relating to china. that is a significant number. wray was many london for about five days meeting with the heads of mi-5, the home secretary head of scotland yard to specifically talk about combating china. neil, there are more than 2,000 active investigations are right now relating to china when it comes to the fbi.
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more specifically, people or entities that have connections to the communist government there. earlier this year right outside the department of justice building where i sit right now people protested, neil, to get rid of what was called the china initiative, a program that began a few years ago during the trump administration to root out chinese espionage specifically in academia. attorney general merrick garland and his team disbanded the program just a few months earlier this year at least in name over concerns of racial profiling. i mentioned i sat down with director wray in london, also the head of mi-5. i asked director wray specifically, neil, if it was a mistake to get rid of the china initiative. here was his answer. >> we are not going to engawj in profiling -- engage in profiling by earth misthe city or natural origin, and we haven't. and we're going to work jointly with universities. in many cases, that's one of the most effective ways to prevent
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stealing of research which is in the hands of our universities. and when law enforcement action is the appropriate tool to be used, we're going to use that tool. >> reporter: and doj officials and the the fbi is part of the doj, doj officials insist even though the china initiative as far as a program in name is concerned, still doj officials say they are investigating china's academic and financial espionage even hoe it's not called the china initiative anymore. neil? neil: thank you, my friend, for that. great reporting. david spunt at the justice department. want to go to a minnesota congressman who's concerned that the president's looking to lift9 a lot of tariffs that we have on chinese goods. congressman, you're particularly concerned about some of those tariffs, not all. what -- maybe you can explain. >> well, great to be with you, neil. you know, we want to show not only the united states, but the
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world that minnesota has a tremendous amount of mineral wealth for those who don't know northern minnesota, we mine the iron ore. we've done that for 135 years. that makes 800% of the steel -- 80% of the steel that's made in this country. and right now we have the biggest copper, nickel mine with critical materials, 95% of this a nation's nickel reserve, 88% of the cobalt and over a third of the copper needed including platinum group metals. and this administration just will not allow the minnesota miner to mine these critical miner -- minerals here in the united states using american labor, best environmental and labor standards. neil, what the president did a week and a half ago allowing the chinese labor to enter our country, is unacceptable. when we talk about solar panels coming into this country, can chinese communist party-made,
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child slave labor, zero environmental standards and zero labor standards. it's unacceptable when we're ready, willing and able to do it right here in our country. just simply unacceptable. neil: so some of the tariffs that the president's envisioning lifting on consumer lifting, solar panels, steel, what have you, are you open to that, sir? >> well, let me tell you something, what i'm concerned about is the 232 tariffs lifting on steel and not allowing us to mine our critical minerals -- neil: no, that i understand, and you make a brilliant point there. i just want to know how you feet makes the argument, i think the way it's ultimately going to be sold, what do i know, that this is going to be easing inflationary price pressures on americans who buy a lot of these goods. not ones you mentioned. >> i don't necessarily subscribe to that. i want things, neil, that are made in america. look what's happening in our economy. we have to reshore our manufacturing and our mining and
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have that tag saying made in america. you know, i've said that this administration, joe biden has to get on the side of the american worker. he's devastating the american worker, neil. neil: so end when you look at the american worker and where things stand now, the administration if turns around, as you know, congressman, alluded to the big jobs gain in the latest jobs report saying, you know what, that is the wind at our back. there are two, you know, two workers available for every one unemployed, and that is a sign of strength, do you say? >> look what's happening with inflation, look what it's costing everybody to live. look at our gas prices. look at the baby formula. we're out of baby formula. this is unacceptable for the united states of america. we must lead, the world is looking for leadership from the united states right now, neil. neil: all right, congressman. keep us posted on this, what kind of reaction you're getting from the president, because it's getting -- it's certainly
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raising some eyebrows. congressman stauber of minnesota. up 14 points on the dow right now, technology stocks, by and large are, still taking it on the chin. twitter and tesla right now disproportionately so. tesla's the currency i elon miss you can was going to buy twitter, you would think that tesla would be rocketing along. it is not. why not? after this. ♪ in a new york minute, ooh, everything can change. ♪ in a new york minute, ooh --
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neil: let's take a look at the principal players in the latest wall street drama. tesla and twitter both down. the deal is now officially kaput or maybe it is not. charles payne would know. hey, charles. charles: you never know with this group, neil. absolutely. great to see you, my friend. i'm charles payne this is "making money." breaking right now, summer doldrums ahead of a very big week much news. stocks meandering after another failed attempt at a long winning streak. investors cooling their heels waiting for latest on inflation. jim paulson is coming up to break it down what it means for your portfolio. with thor dominating at the box office, i will ask gary kaltbaum can the megacap names save the day again? the


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