tv Cavuto Coast to Coast FOX Business January 9, 2023 12:00pm-1:00pm EST
stuart: i was going with that but then our producers told me there are 25,000 species of insects that live in the water. so that, so i'm going with 94%. i may be completely out of bounds here. the answer, please? what is the answer? it is 94%. there you go. how about that. thatthat is a shocker to me. the rally holds, ashley, you please to know, our money is safe this morning. we're doing okay. dow up 60. nasdaq up 225. not bad at all. on that note it's a rally, plenty of green. here's neil. neil: i still have time to screw this one up. stuart, thank you, very, very much. we've got this rally as stuart pointed out here, we have dribs, drabs, what we're learning the president of the united states is doing in mexico, what kind of agreements he is getting in mexico. this is after his visit to the
border. we'll get to that in a second. not a lot of border-related stuff going on. i'm not say not any but other things are coming up instead. let's go to edward lawrence in mexico sy with more on what they're doing. edward. >> reporter: exactly the president we have not seen publicly yet today and we won't see for a while. the first lady 30 minutes ago had an event about women empowerment with the first lady of mexico. president biden in four hours will meet with his mexican counterpart, the president of mexico. they will talk fentanyl that the president wants to focus on the supply chains to make the u.s., mexico, canada a block going forward. he conferred with advisors this morning according to national security advisor jake sullivan about what he heard also in el paso. it is unclear though what new moves will be made through the bilateral with the mexican president. the president biden seems
according to jake sullivan seems to be on the same path he has been on. the president toured the border wall, talked to agents but sources tell fox news the el paso sector was cleaned up. the processing center president was visiting watt not process. president biden: i'm know u not processing every dauren but i get a sense of the average. >> we governor 800, 900 per day. usually average is 300 to 500 a day. >> reporter: president's meeting might have been upstaged the texas governor greg abbott delivering a scathing letter according to the president's border policies and suggestions he has to fix it. the governor told the president his visit was two years, $4.7 billion too late. 4.7 million migrants crossed the border under president biden. the republicans are backing the governor. >> you don't want it to be a
empty gesture a political stunt a photo-op. we would like to see him get really recognize the problem. we have to acknowledge the problem, we have to fix it. we have the resources and money. joe biden lacks the will. >> reporter: according to jake sullivan the president will really tout the $23 million in extra money the president is going to give mexico and other central american countries to help with protection and shelter of migrants making their way to the u.s. border. back to you. neil: edward, i'm curious about this letter that positive governor abbott gave to the president. it was only couple paragraphs. i'm told the president never read it. why didn't the abbott read or echo that letter, knowing full will the president wouldn't quickly respond to it? >> reporter: governor abbott did say that he told the president what some of the issues they were dealing with. that his policies were causing these issues. what he didn't go into according to the governor is the five
solutions that the governor says that they need. remain in mexico is one of those that they would like to see brought back. again president biden as of late last night had not read the letter. maybe that has changed today. we're trying to get clarification on that. now we did ask jake sullivan if the president had red that letter and jake sullivan refused to answer. he dodged the question. we're trying to get an answer to that. neil: i hate to belabor the point. i know you're in mexico but how much time did the president and governor spend together if it was the introduction when the president first arrived? it doesn't sound like much. >> reporter: that was in. the president was in el paso three hours total. then he just made his way on, flew in, flew out, made his way to mexico city. obviously here more time. brief encounter with governor abbott, saw it in the still pictures, video we have from long-range. neil: thank you, my friend. edward lawrence in mexico city, where there has not been a lot
of follow up discussion about the border save concern about fentanyl and all of that we'll keep track of that. that does raise serious questions whether anything substantive got done here or will get done. grade grade is in cochise county, arizona where they're keeping a watchful eye as well for good reason. kelly? >> reporter: neil, it is important to remember this problem goes beyond texas, right? this goes beyond these large cities. in arizona alone last year there were reportedly816,000 illegal migrants came into the state. this is cattle ranch right on the arizona mexico border. it is a hot spot for illegal crossings. the border wall along here, we are told migrants come across every single day and most never get caught. >> everywhere, three, four, five, in a group. they're everywhere. and they go from the border up to the highway to get loaded up.
and, that is how many it is so bad. then their attitude, just, we're here, and you can't get rid of us. >> reporter: that is a a hallmark of the tucson sector which has the most got aways in the country. this is different animal. rather than give themselves up, migrants fought with everything they can, that caused 500 felonies committed here in march. the sheriff in cochise says the lack of attention can be dangerous. >> rural parts, 28, 30 counties on rural southwest border are in the back seat. sadly we're in the front seat when it comes to damage to our communities, damage to the citizens, quality of life we've seen a big erosion on. >> reporter: so if you look at numbers border related crime has surged under the biden administration. under former president trump's policy five to 7% of cochise
county arrests were border related. in 2022, that spiked to 40, 45%. what starts at the border ends up in your backyard. high-speed chases involving human smugglers become commonplace, ending in crashes with civilians. fentanyl pouring in with the drug mules. you have people pouring across the border. when you divert resources to the immediate problem, the sheriff tells us that impacts headway they make on other crimes. neil, the president may have finally visited the border. from my experience on the ground here, el paso is a snapshot of a far more nuanced and dangerous reality. i will send it back to you. neil: kelly o'grady thank you for that very much. kelly is in cochise county, arizona. i want to go to border security president. very good to have you. irene, how do you feel after the president's visit do you think the needle moved? there were budging on issues i know you care about?
>> thank thank you for first ofl having me on. i want to make sure everybody in america that is watching understands what el paso is to me. it is where i was born, where i was raised, where we raised our three beautiful daughters and my parents made the hard job of actually becoming naturalized citizens. they're immigrants themselves from mexico and no, the needle hasn't moved. the reality here in el paso, at the moment it was announced biden was coming, the cleanup, the operation hide the evidence commenced and we have been tracking that from, actually when biden took over. this is a reality that we, the american conservatives, the american citizens here on the border live with and unfortunately for us, the border has been ignored, not just by the democrats but also by the republicans and now here we are.
neil: so was there anything, irene you know of that the president offered? he said he would provide resources folks like you need to deal with what is going on there. he did not spell out exact numbers but help was on the way. do you believe that? >> no i don't believe -- actually i don't believe that anything biden says or any of his administration. the reality is, he says one thing and something else happens on the ground. yesterday when we were being interviewed right on the border my husband, who retired from border patrol two decembers ago actually made a comment at how clean the border was compared to what it had been prior to biden coming. and this is on the south side. we all know that there was tents. there were people on the south side in mexico waiting to come in. all of that was gone. then of course we got notice that they were actually flown into the south of mexico. i can bet you we paid for that. neil: you know what i didn't understand why about, irene, why
would anyone in el paso dealing with this, left, right, democrat, republican, conservative, liberal. it is a mess for you. why would you spruce up things to make it look like it was not? >> because we're democrat-run city and we have been for over 60 years. and they all wanted -- neil: it is your interest, democrat-run city, more democrats are speaking out against this, concerned about this i'm wondering why clean it up to the extent they did apparently? because that is not going to get them the help that they want? >> well, makes us wonder who actually ordered the cleanup. neil: we don't know, right? we still don't know. >> exactly. i mean, to be honest with you, who else would have ordered it except biden's administration to make themselves look good. reality this is something we live in, live with, i'm sorry. our crime rate is also going up. we have a lot of got-aways.
the interview right before me talked about us being a very small amount but we're not. there are thousands. we're seeing 7500, to 10,000 illegal aliens, i want america to understand the right terminology is illegal alien or illegal immigrant per immigration law. let's not change the terminology. they're not migrants. they're illegal aliens or illegal immigrant and the reality is legal immigrants like my parents are one hundred% against illegal immigration. neil: i'm glad you did. we conflate the terms. we've gone from illegal immigrants, to say immigrants or this is questioning our devotion to immigrants and those want to come to this country, 1 1/2 million do each year the legal way. we're now over four 1/2 million who found the illegal way over the last couple years. i'm glad you made that distinction. irene, thank you very much. keep us post the. >> thank you so much. please go to my website, border
security coalition.com. sign up. help our efforts. border security coalition.com. neil: to your point i want to find out who was responsible for cleaning up el paso for the president there. it wasn't in el paso's interest to do that but we'll see. i want to take you to a press conference going on in new york. nurses, some seven thousand of them are on strike in new york city. not across the board here, but all of the backdrop for this, they want more pay, more help to deal with all the problems they're dealing with. we've had a spike in covid cases in the empire state in general. they're up 31%. 915 deaths. the timing of this, shall we say is wretching because right now we need them and the nurses on strike say they need help. we're kind of at loggerheads. we'll keep on top of it after this.
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get in on the savings and switch today. ♪. neil: all right, we have the dow following up on last week's pretty heady advances. all major averages up 1% after a real thrashing this year. this is carrying over here again. we have goldilocks view of the economy, whatever happens, maybe the fed doesn't overdo it. i guess everyone is on board
with a quarter-point hike at least in interest rates when the fed meets again on the 31st of this month or the 1st. after that kind of a jump ball. connell mcshane putting it all together for us. connell. >> reporter: the other thing we're looking at look like the goldman sachs job cuts will probably happen this week. there are multiple reports that suggest as such that thousands of jobs will be cut at bold man. they expect on wednesday and that will top 3,000. for goldman that is a big deal. that is the largest round of layoffs since the 08 financial crisis. investment banking division at heart of it in goldman sachs will be likely hit the hardest in the job cuts. we know deal-making slowed down across wall street. morgan stanley, citigroup, reduced headcount for exact same reason. look for that as the week goes on. goldman sup with the rest of the market at 255 and change. a broader look at the market for a moment bus morgan stanley analysts are out with a with a
pessimistic outlook. you see the s&p 500 now in the 3500 range, a little bit above that, as a matter of fact with 1% gain in the market we have today. morgan saying it could bottom out all the way down around the 3,000 mark. we have not been there in quite a while. so below where we're going on this chart where they expect it to go. from the point they put their note out it would be 22% decline in the stock market. a guy by the name of michael wilson is a strategist who put out the note for morgan stanley. he is known for being bearish but this is especially bearish. profit analysis is too high as many expect we expect the market to bottom out 3500. he says no, it could get much worse than that. he talked about peak inflation one of the reasons it could get much worse. if inflation peaks it could help the bond market but doesn't necessarily help profitability for companies that could help or could hurt the stock market. so that is just one note. but it is from a pretty big
investment house in morgan stanley. finally, mcdonald's before we go back to you, neil, sending out signals about job cuts itself. it is planning to make what it described or ceo described as difficult decisions about corporate staffing levels by april. nothing net yet in terms of numbers how much they want to save, how many people they want to lay off but that is out there. you know the news came out on friday. so it is probably in the stock to the extent we look at mcdonald's shares, but we're down more with the market up today. another example job cuts may be coming, neil, interestingly enough from a company not in the tech sector which is all we've been talking about the previous few months. neil: you say corporate staff, not front line people at least yet? >> that is what the ceo seemed to infer, yes, the corporate back office, the corporate staffing at mcdonald's. take a look at it, reassess how many people they have, what everybody is doing and how much money they could save by the spring. neil: thank you very much, connell mcshane, chief
national correspondent. let's go to jonathan hoenig and carol roth on all of this. as you know, connell mentioning this thing, if you add the goldman planned cuts about 3200, morgan stanley tinkering around cut the of its own, telegraphing a slowdown it sees accelerating this year, redfin looking terrible consolidation on the real estate sector. don't know if that leads to layoffs. usually does. amazon, intel, sales force, what do you think, jonathan? >> neil, we might be in that type of era unfortunately bad news on main street is good news on wall street. the market always leads as we saw so many stocks, technology stocks get destroyed in 2022, we might see them rise on some news of the job cuts. in fact, neil, internals are looking better. today we have 90 new highs, only 22 new lows. 60% of stocks are above the short term 50-day moving average. early 1970s, saw a 70% gain for
stocks and a 50% drop. we might be in that type of environment now where stocks do very well despite some pretty bad news on main street. neil: speaking of main street and the new york fed read of it coming from main street, carol, as you heard, the new york fed has survey that consumers see inflation and spending cooling off the year ahead. market responded postively to that. you could interpret that as a sign they will resume spending, whatever in that environment. that could be inflationary. what do you make of that? >> i feel like a little bit of a rorschach test going on with data. investors are perceiving it differently than the fed is. this really crazy supply demand balance we have in the labor market, as long as the consumer has a job, as long as they have some equity that has been built up in their house, they are signaling that they are willing to continue to spend, that they're willing to take a hit to their personal balance sheets
and their personal wealth to continue to keep up with the joins or maybe keep up with the federal reserve. so i think that's the data that the fed is looking at which is obviously very different than the way the market is perceiving it. neil: meantime we'll be in the middle of this quarterly reporting of earnings and what struck me, jonathan you know these figures actually both of you do better than i, that the first quarter year-over-year they contract, i believe in this case 4.1%. >> yes. neil: i immediately got cynical about that, jonathan this is exactly what i did with my parents when i came to my grades. i told them it would be all fs, couple ds and c in there, they thought i was einstein. i'm thinking that is deliberate, that is a low-ball figure. any company that can climb over that looks postively bullish. what do you make of that? >> neil, given destruction in so
many markets last year expectations were very low coming into this earnings environment but what is interesting the names outperforming both in terms of earnings and their stocks. it is insurance stocks at 52-week highs now. oil stocks, so many international stocks that benefit from a weak u.s. dollar. u.s. seems to be ironically the laggard here. we still got the tremendously inverted yield curve, almost guaranteed recession if you look at history. there are a lot of companies doing well. i don't think the old tech names we gotten used to being outperformers for quite some time. neil: markets surprise you. maybe we're getting ahead of ourselves first six or seven trading days of the year, carol, i wonder what you make going on early though it is in 2023? >> yeah. i just think like i said with this rorschach test that you have got investor side seeing the butterflies. oh, we've got cooling inflation data. we've got some things pointing to economic data that might make
the fed pivot or pause and i think although the fed has no credibility, i don't a scenario all of sudden they're cutting rates later this year. i don't know, maybe the bond market is trying to bull i let fed in that direction, but i feel there is this optimism that probably after the next get meeting, you know, as we move along in the year it probably fades some. neil: history suggests that bullying the fed at least in its present mind set doesn't work whether you're in the market or the bond market. guys, hang in there, i want to pick your brain later on bigger macro issues coming up particular letter the world economy. meanwhile taking a look at kevin mccarthy his first full day of work after 15 rounds of voting that he is the next speaker and now present speaker of the house of representatives. now the question is for how long because he has to make good on
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♪. neil: all right, kevin mccarthy is now the speaker of the house but he made a lot of concessions especially in the last round of voting and we had 15 rounds of voting, to win over 20, not too happy with him congressman and women. all but six of them ultimately voted for him, or at least paved the way for him to get in there but now he has to make good on those concessions. aishah hasnie from capitol hill on how that process is going. >> reporter: neil, good afternoon to you. mccarthy's first challenge, his first big challenge as the house gop conference introduces a rule package to get it passed
later this evening. we're seeing opposition to the package over the side deal as you mentioned mccarthy cut in order to get those votes last week. >> this is, this has a proposed billions of dollars cut to defense which i think is a horrible idea. >> i support it but what i don't support a small number of people trying to get a deal done or deals done for themselves in private and so i am on the fence right now. >> reporter: okay, so here's a look at mccarthy's concessions, right? part of it is an open amendment process. another part is minimum 72 hours to read bills, a vote on term limits but the biggest change, neil, is lowering a threshold for a motion to vacate a single member which will be how the holdouts make sure mccarthy follows through with the deal. this will be a big test for majority whip tom emmer who got a lot of criticism last week for what happened with mccarthy's
speakership votes. emmer feels they will get the votes tonight. >> i believe tony and nancy will come around tonight when they realize the things they want to talk about are in this separate agreement. republicans will not impact defense spending aside from efficiencies and waste. it is the domestic spending that we're going after. >> reporter: sew we know that republicans are trying to talk to at least nancy mace and tony gonzalez. we'll catch up with nancy mace in couple hours. we'll see where her head is at ahead of this vote. neil? neil: extracted deals. thank you, ashiah, great coverage throughout on all of this, aishah hasnie. let's go to andy harris, a maryland congressman, who wasn't too keen on kevin mccarthy in the beginning. ended up voting for kevin mccarthy. i would suppose, congressman, on the notion that he follows through. what if he doesn't or can't? >> well, look, i think kevin will make a real effort.
he did in the negotiations. these are very good faith negotiations. that is why he was able to convince the holdouts to go with him in the end a lot of people ask for are common sense, single subject, germane to the bill, 72 hours to read a bill. make effort to decrease domestic spending out of control now while preserving defense, these are all things that are achievable. neil: so when it comes to making good on, making sure that spending is kept under control there has been some criticism here that you're going after non-defense spending but not defense spending yet part of the agreement i guess was keeping, you know, spending at this year's levels well into next year which of course with inflation and population growth, et cetera, could be deemed by some to be cutting spending including defense spending. are you for that? >> no and we should be able to
do this without cutting defense spending. we're keeping the overall spending level the same. families had to deal with inflation. look the federal government will have to deal with inflation. the fact of the matter is we needed to get the budget under control, need to get deficit and debt under control. this is a first step and the people who say this is a cut to defense don't understand what the agreement was because it clearly does not say you have to cut defense spending. neil: only reason why i mentioned it sir, jim jordan said republicans should be open to cutting some defense spending and that maybe with all of this wokism, with all these requirements attached to that, it would be, it would be wise and it would show to everyone that everything is fair game, what do you think? >> sure. there is some efficiencies that we can wring out of the defense department. there is no question about it. some of woke policies. need to buy green fuel for fighting ships and fighting airplanes when i'm sure china is not buying green fuel.
these are expenses we probably can't afford that we can negotiate on. there is waste in every department but i think the big cuts will be in non-defense spending. i think defense spending will be mostly preserved. neil: let me ask you very, very quickly then about some other issues that came up that any one of your members, yourself included could oust the speaker if it came to that. you're returning to what were policies before nancy pelosi, i understand that, but do you think you or anyone else would do that? >> i think, neil, the threshold is very, very high to do that. again this has been in place for over 100 years. no speaker has ever been removed with this provision even though a single member provision all this time. we went through the civil war with this provision in place, no speaker removed. the fact of the matter it is not a easy decision to make to make a motion to remove a speaker. i don't think it will be done.
kevin mccarthy shows same good faith as he did in ex-executing agreement as he did negotiating the agreement it will be fine. neil: used to call you congressman-elect going on day after day. now you're a congressman, and back to it. >> there you go. neil: we're getting word brazil's former president bolsonaro is hospitalized in florida. this is a source close to the bolsonaro family. all of this occurs after what was upheaval in brazil over the weekend whereforeses loyal, not only forces but just thousands of voters who felt that the election was rigged and that luis de silva unfairly got that surprise. if that rings a bell with developments here i let you decide on that. there were protests in the country a lot of that was inspiration of bolsonaro. he claimed that was not the
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neil: all right, better than seven thousand nurses are on strike in new york right now. comes at a devil of a time. lydia hu will get into all of that, what is going on here in new york city. lydia? >> reporter: hey there, neil. this strike is happening across two hospital systems in new york city and mt. sinai. what is happening outside of mt. sinai hospital in manhattan, thousands of nurses leaving to the patient bedside, taking to the sidewalk to let their voices be heard. their sticking point right now as negotiations over their labor
contract break down they say, staffing shortages that impact patient care. listen to this. >> the nurse to patient ratios are very, very unsafe. we have double the amount of patients that is regulated in standard hospital. we're really just spread so thin. it is very scary to have eight patients when you're ownly supposed to have four. >> reporter: we're told that the discussions between management here at mt. sinai montefore in the bronx broke down at one i'm in the morning. as nurses take to the sidewalk to strike, hospitals have problems with level of patient care they are able to provide. mt. sinai are moving most vulnerable patients they have like nicu babies to other hospitals. it is postponing elective surgeries and heart surgeries. it is helping cancer parents find other locations for patients right now.
montefore making similar decisions. they're postponing elective surgeries. the talks broke down, they said the nurses are walking away from a 19% raise that would go into effect over a three-year period going forward. that is estimated to equal to $52,000 paid up over three years. the dispute right now is around staffing levels, that the nurses say impact the quality of patient care they're able to deliver. now this strike is happening despite even the governor of new york's pleas that the parties send their dispute to arbitration but instead they're taking to the streets and striking right now. there are no negotiations scheduled for today. it is not clear how long this strike is going to last, neil. neil: all right, thank you for that, lydia. god knows you had to compete with everything there and got it
through. lydia hu on the strike ongoing. it occurs with a backdrop of rocketing covid cases in new york and new york state in general. they're up 31%, 115 deaths in the latest period. that is giving some people some pause how this is ill-timed and could be problematic. keeping an eye on that. keeping an eye on a storm system on the west coast that won't give up but this latest one is even scarier. we'll have more after this. ♪. i'd like to thank our sponsor liberty mutual. they customize your car insurance, so you only pay for what you need. contestants ready? go! only pay for what you need. jingle: liberty. liberty. liberty. liberty. when you stay at a vrbo the host doesn't stay with you.
neil: nasty weather again. i believe every week over the last four weeks we've had a different storm system, a doozy out west, particularly in california. robert ray with more on that. he is our fox weather multimedia journalist extraordinaire. he is in the middle of all of that. what are we looking at, robert? >> reporter: neil, to your point, gosh, the weather is relentless. look at this capitola beach, look at the angry pacific ocean right now and structures being
compromised by this incredible system coming in and believe it or not, neil, if the camera looks, this is not a river flowing into the pacific ocean. this is the socal creek. all of this water is coming down off of the mountainsides here. some mountains up to 4,000 feet with debris, moving it, pushing it quickly out. when this creek meets the pacific ocean they bang in together, they get sloshed around as if someone is churning it in some sort of a pot cooking something. it is muddy water with debris out there and you see all of these structures boarded up in the distance. here is the problem, these structures are on piers, not concrete. they are being compromised as we speak right now. some of them could collapse is the concern. just believe it or not, several days ago, friday they were demolished by yet another rainstorm and many of these
homes and businesses were under water. they lost power and they were cleaning up from that. now this again this morning as heavy winds came in here this morning neil, with the rain. we've seen those dissipate but we're seeing angry sea as high tide is about to come in. the worry is that people residences like here, that are sandbagged, you see in the distance perhaps a man shoveling sand out of his home with the big waves and the pier, that pier also partially collapsed fallen apart from last week. the issue is that these burn scars up in the mountain cannot handle that, the burn scars from wildfires. roots are coming up, trees getting sucked out and they meet as the creek meets the pacific. north of us in santa cruz evacuations are underway as river systems there are about to crest, a situation that is not good here in california. pretty much the entire state will feel the effects of this throughout the week and we have just one system after the next.
another one coming in tomorrow, another one later this week. all they can do is hope that you know, indeed this doesn't collapse buildings and structures and of course, you know we know california has been in a drought, neil, for nearly 20 years. that is going to help but all of this is too much. it is just not good for the landscape here and the toe pop greg if -- topography cannot hae it. neil: thank you, robert ray. airline nightmares, planes suddenly canceled. this won't help matters any, american airlines cutting flights to three more cities. i can't keep up with the number of cities it is no longer flying to but gerri willis can. she has the very latest. >> reporter: neil, that is right. 100 cities have lost service, american blaming pilot shortage and softening demand. they will stop three more cities, the move bringing to 19, the number of cities american no
longer serves. columbus, georgia, long beach, california, and del rio, texas. as you can see on the map right here, joining a host of other smaller cities where american has already pulled out. other airlines are doing the same thing. a total of 65 airports lost service during the pandemic. now regional airlines have been hit hard by a shortage of pilots as they try to ramp up after the covid-19 pandemic. this is mainly because main line carriers recruit from regional carriers offering higher pay, better benefits. american for its part calling the decision difficult. the airline will help customers find alternative means of getting to their destinations. they told us this, we're extremely grateful for the care and service our team members provided to our customers in these cities. we are working closely with them during this time. we'll proactively reach out to customers scheduled to travel to offer alternative arrangements. we spoke to one expert who told
us, consumers who have already booked flights from these locations, they will have a couple of choicessen. >> american would either refund tickets not used or have upcoming flight, they will no longer flying they will refund it. the alternative, if there is a city nearby they would change the airport code for you. that you may not be able to get there from del rio, texas, but maybe a city you can drive to within 60 miles. >> reporter: longer term the issues are more problematic. for del rio the decision leaves the city without commercial service. the city manager described the change as frustrating and disappointing. he disputed american's contention demand was light, saying we've been at or near capacity on most american flights. those service cuts are not over yet. in fact our expert says you can expect even more of them this year as this pilot shortage persists. neil, back to you. neil: next step is just walking
to your location. all right, thank you very much for that. we have more layoff news coming out of course. goldman, they have put a figure to this, 3200 that they plan to lay off relatively soon. morgan stanley is warning about continued contraction in the economy, only a matter of time before they do the same. they have already laid off people. revved fin is redfin is talking about consolidation. mcdonald's thinning corporate ranks. tom, it is piling on from what we were last year but but percentagewise it is not huge yet. >> correct. neil: what do you make of it? >> i think companies hired up during the pandemic and coming out of it. i think big tech is a prime example, nine times out of 10 they're the smartest people in the room. they thought their business model during the pandemic would continue for a really long time or the foreseeable future. guess what. we have seen the future, it isn't 100% anymore.
they hired way too many people. it is not like they're going below prepandemic levels. neil: that is a good distinction. that you made. 20 was unrealistic barometer. >> 2020 we had terrible second quarter. it ramped up. end of year was fantastic. 2021 was off the charts. the fact that recession is measured by two consecutive negative gdp quarters, you're comparing that year-over-year to 21. of course '22 will go down. we're adding quarter of a million jobs per month. neil: 10.5 million. >> correct. ton of job openings. we have immigration issues which is a huge problem on that. we have infrastructure who will be building all the bridges and roads? there are challenges where the people are but the economy is not in a bad place. neil: you and i were talking about not anytime someone loses a job it is not good. much was made of the 18,000, up to 18,000 amazon could lay off but they have 1 1/2 million
workers. similar with 3 or 4,000 at microsoft. they have almost 300,000 workers. so percentage terms they're not going nuts right now but could this be a preview of coming attractions? >> it could be. i would challenge again, it is not fun anybody loses a job, if you have a choice to lose a job, right now in this economy it is time to lose a job. neil: you will find something? >> correct. other companies that are hiring. the rubber will hit the road a little bit with entitlement folks where they think i should have any job i want for whatever salary i want in any location i want. i think those days are waning. by end of second quarter, third quarter -- neil: talking to my college age sons. lay of the land this year, horrific year for stocks last year. where are you this year? we're starting out in a good way, still very early. what do you make of that? >> i think what we were saying earlier is the reason you raise interest rates so you have a lever to pull. we were living on free money for venture capital, private equity,
all the firms doing whatever they wanted with free money. now we don't have that. i think it will be interesting year in a positive way because more companies that actually make profits are going to do very well. we've already seen some of the decline on unprofitable companies and -- neil: what if your profits are down a lot? >> well you will see that business is going to come back. neil: technology? >> yeah. i think for technology, who was it, amazon or facebook will take a two billion dollar charge letting go of these people. neil: right. >> google will take a two billion dollar charge. a lot of times what people don't like to talk about a layoff is a great excuse to fire poor performers. you put it under the cover of economy is down, we're going to lay off people. they're not letting go of their best people. most companies don't do that we're having bad times. let's fire the bad people. neil: very well-said. we needed to hear that as tom was speaking, we're getting comments from former brazilian president bolsonaro commenting
on the uprising in the country. he said not at his behest. i have always been within the four lines of the constitution, respecting and defending laws and democracy and our sacred freedom. in other words i had nothing to do with this. he is in a hospital in orlando. we don't know what he is suffering from. he is expected to be okay. he said all the uprisings there not a donald trump inspired event. we'll have more after this. we got this. we got this. we got this. ... paradontax blood when you brush could lead to worse over time. help stop the clock on gum disease now. parodontax toothpaste... ...is 3x more effective at removing plaque bacteria,
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