tv Bulls and Bears FOX News August 31, 2013 7:00am-7:31am PDT
rick, was he okay? >> beat me by a length. >> that -- >> that was such a victory. >> see you tomorrow, everybody. >> we'll be here. >> thanks so much for joining us. thanks so much, achilles team. great stuff. see you tomorrow. >> i want a redo. think the syria conflict is far away? well, it's actually already hitting you right here in the gas tank. with tensions rising, oil prices are spiking, and that's turning into more pump pain. gas jumping a nickel this week alo alone. how bad will it get. i'm brenda buttner, this is "bulls & bears." let's get to it. here they are, the "bulls & bears" we have gary smith, tracy vern, john layfield along with gary and mark. welcome to everybody. so energy prices heating up with the tension over syria. john layfield, how bad will it get at the pum much? >> look, i think there's a potential this could get near $4
a gallon of gasoline and the reason is because the last 25 years, all the conflicts we've had, gulf war one, bosnia, the rumors have been worse than the news. sell the rumors by the news. equity markets down, oil prices up until an event happens. the uncertainty that is coming out of the united states, we didn't act on benghazi and looks like we're forcing an action on syria. that uncertainty is going to keep gasoline prices, which by the way oil prices have spiked higher than gasoline, gasoline is going to tick up higher the next few weeks, that uncertainty is going to keep gas prices high when it should be swooning after labor day. >> is it really the uncertainty or would it take a big event with many players involved? >> if this blows up more, if iran gets involved, israel, all that stuff, then yes, and every ten cents is billions of dollars out of the economy. we just hit five cents. so no doubt, uncertainty just adds more to it and frankly, as
far as markets go, they want this thing to happen already and get over and done with so they get back to the norm. >> tracy, we're still below highs for gas prices. do you expect them to go up? >> we most certainly are. we're 13% below the all-time high that was well over $4. the problem, though, is, brenda, we've talked about this on the show, raise gas prices but you're not raising my wages. you're taking money out of my pocket at the end of the day. a lot of people could care less about why. syria, iraq, iran they're done with it and over the fact that gas prices keep going up for reasons we can't control which comes back to what john says all the time, we need an energy plan and policy back here at home. >> gary, the brit hit a all-time high of $125 and change in 2008, could we see those prices again and how does that translate to the pum? >> i will go to the pump translate, the answer to your first is yes. i think all roads lead to $4. i mean let's face it, john, you
were like oh, maybe this, maybe that. darn it brother, we're going to $4. i don't like it but we're getting there. if there is a syrian conflict, that's $4. in if there's not a syrian conflict, the tensions over there aren't going away, that's $4. if everything is hunky dory, the economy is starting to see those green sprouts, people are going to be driving more, et cetera, so demand is going to spike, that's $4. i don't see -- and finally i'll throw in one more. the oil chart brenda talked about has broken out to the upside, that's $4. $4 it is. >> mark, we're hearing a lot of 4 bucks a gallon. what do you think? >> i think i just drove here to the studio and hear in california already saw over $4. of course that's here in los angeles, california, where we're used to that. no, this is -- if this speaks to anything it speaks to the fact that we are beholden to the opec and the arab countries setting these prices for us.
this is the market at work. this is the monopoly of those countries setting prices. if this says nothing else to us, we need to ween ourselves off our addiction use to use bush's fay mu phrase and develop reliable and renewable sources of energy at home. if nothing else there should be another wake-up call. we've been getting wake-up call after wake-up call. we did see egypt in july when things blew up and a lot of tu mult, gas prices did tick up, 10 cents, 20 cents in some places. any time there's tu mult in the middle east there will be market and why we need to start developing renewable sources here and alternatives in the longer term. >> john, we could get into energy policy and all that, but right here, right now, we saw that the gross domestic product, our best gauge of the economy, was actually revised upward. do you think this is going to take a hit out of it? >> look, we can get into an energy policy but, of course, we
don't have one. the only country in the world that doesn't have one. yes, i think it can. we're seeing some green chutes in the u.s. economy. we saw negative factors that came out in housing because rates are coming up. i think that will affect gasoline prices. don't forget about egypt. look, russia had a base if syria. they have said they want a permanent base in the mediterranean. they are most likely going to put that in egypt. you have saudi arabia taking over the aid we've potentially could pull out because they're rooting for a certain group. egypt rooting for a certain group -- sorry, russia worrying for a certain group as well, that adds to the turmoil in the middle east and add all that's going on here at home this is a time to get off all foreign oil, especially foreign oil outside of north america. no reason to get off mexican and canadian oil. they're our friends. >> i feel like we've been saying this how many years now. >> beginning of time. >> fought with iraq, get off oil. gas hits $3, get off oil. we're not. nothing is happening.
the problem, of course, is no one is making any more money than they were when gas was back at $3. so this is absolutely going to crunch the economy. especially your lower and middle-class people that don't have that much discretionary income to begin wit and now taking more of it. i fill my car up twice a week commuting and taking my kids point a to point b. this will hurt me. >> $4 oil is a killer. that's 40 to $50 dlb out of the economy. cost of goods sold goes up, cost of everything goes up and nothing good happens at that point in time. >> gary, i mean -- >> except for the fact that -- >> go ahead. >> increases new opportunities for people making alternative forms of fuel that are cost prohibitive for investment right now but when you have oil and gas costing as much as it is that's a silver lining if we have to find a silver lining to any of this. >> gary, what would keep oil and gas below 4 bucks? what would it take? >> the usual that we've seen every time it spikes.
when you get gas going that high, what do people do? tracy has -- drives a little bit less per week or she has her driver drive -- >> yeah. if only. >> my driver -- >> instead of driving her fancy sports car around, she drives the prius, okay. but everyone cuts down. i telecommute more, not that i don't telecommute 24/7 anyway, but my point is, people adapt like they do to food prices, to movie theater prices going up. they adapt. so what happens is people are going to start driving a little bit less and then the demand is going to go down and hence the price comes back down. >> well, john, my driver is my 18-year-old. that's about it. she doesn't drive where i want her to go. but bottom line, you're saying this will take a big bite out of the economy. do you see -- how bad could it get and how long do you think this could last? >> look, i think it could significantly hurt. look at what housing is doing
with rates rising and if rates continue to rise you will have housing hurt which has been pushing a lot of these green chutes in the economy. $4 gasoline, that has proceeced most recessions. it's one of the factors. when people have wages not growing and gasoline prices going up, that's a staple that hurts our economy. >> that's a huge point. the combination of interest rates going up and oil prices going up, absolute killer. you're already seeing the housing market already starting to head south and if this occurs, business is going to go south. >> okay. we got to give you the last word to our other gary. thanks, guys. and gas prices aren't the only worry over syria. top officials warning and preparing for more cyber attacks here from supporters of syria's regimes. neil and his gang on why that's a real threat to all of us at the bottom of the hour, but up here first, nonunion fast food workers protesting for a pay hike.
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[ male announcer ] how do you get your bounce? long-lasting freshness. hi, everyone. live from america's news headquarters i'm jamie kolb. breaking news on the white house response to the alleged chemical weapons attacks in syria. top national security officials will brief members of the senate in conference calls this afternoon. and the white house dispatching secretary of state john kerry, defense secretary chuck hagel and national security adviser susan rice among others. yesterday the administration said it is certain that the assad regime is behind the august 21st poison gas strike killing so many of their own people. meanwhile, we have new video of united nations chemical weapons inspectors leaving syria. they have completed their investigation about that suspected attack and they're transporting samples from alleged victims to be tested for evidence of poison gas. it goes off to laboratories in
europe. i'll send you back to "bulls & bears" and keep it here on the fox news channel for the very latest on syria. >> there you hear it, ahead of labor day, big labor, backing a walk-off by nonunion fast food workers across america. they're demanding a 100% pay hike to 15 bucks an hour. but gary b. says, this is more about trying to hike union members instead of worker paychecks, isn't it? >> exactly, brenda. the union is like the federal government in that they get their power from having the biggest base possible so they can issue these unfillble demands. look, here the choice is clear here. would you rather have a mcdonald's 25 jobs at minimum wage or zero jobs at $15 an hour. union doesn't care about what the workers -- if the workers have jobs. they don't present something
viable. they just want to have, hey, we're powerful, we got this one mcdonald's out there to give you $15 a wage. everyone join us, pay our dues, pay our -- pay our executives an astronomical amount of money, we'll have clout in washington to get our ways. unions are not helping these workers. >> mark, do you buy that, this is all about union membership? >> of course not. if there are no -- if mcdonald's has zero people working for them, how is that going to help the unions? unions get their strength through numbers. and so what the unions want to do ultimately is increase their roles member rolls in the future because it amplifies their voice. at the end of the day the entire mandate of unions is strengthen the position of workers who could be getting exploited by companies. anybody making less than $8 is being exploited by companies when their profit margins are
what they are. unions are trying to increase their members, absolutely. $15 an hour, that's not necessarily a realistic expectation on their part but it's a negotiating position. your other guests will understand what a preliminary negotiating position means in the debate. >> john layfield you talk about profit margins, not just talking about mcdonald's, mom and pops don't have big profit margins. >> there's a difference between $8 and $15. and when you're going after the big ceo that's really a populace message unions are trying to propagate like gary b. said and the billions gary keeps quoting about mcdonald's, but the fact is mcdonald's has issued statement after statement they do to the adjust or recommend or set the wages for the franchises. those franchises are done by mom and pops that are these guys' neighbors out there. they work on razor thin margins. nine out of ten employees when talking about walmart, become the posterchild of this, have
come from entry-level positions. there's a reason those are entry-level positions. only 5% of fast food employees work for that minimum wage. this is not about minimum wage. this is 100% about union membership. >> and tracy, when they say to just raise the minimum wage, just because, i mean, there should be a reason behind this? >> right. where's the merit? where's the rational behind it? you and i know if they raise the rate less people will have these jobs or as we were talking about more part timers. no one is getting health care. the thing trickles down and becomes a total mess. the unions are all over this because they need votes, memberships, fees and dues. this is not going to help anybody, mom, pops, any shop, mcdonald's, you name it, any of the employees will feel this because they're not going to make more at the end of the day. >> here's what happens. the people that are running these businesses that have worked their rear ends off all their life, put up their own risk capital will react to all
this. you think you have 15 people at mcdonald's right now, you end up withist 12 and so on. that's the way it's going to go. this is a ridiculous move. it's pure socialism. it's pure dictate. and it hurts business straight down. >> gary b., does it mean fewer jobs? >> it has to, brenda. it's supply and demand. if you got a mcdonald's franchise owner, you know, the left makes it seem these are the endentured slaves that have to work for this money. if they put out $4 an hour and don't get anyone to come work for them, they will raise the wage to minimum wage. all of a sudden they raise it to -- they have to raise it to $15, $20 an hour you will get a lot of people wanting those jobs. the franchise owner will not be able to afford to hire those people because as i think gary k. and john pointed out these people operate on thin margins it's not some billionaire raking in billions or half a billion dollars, they're not going to make any money. all those jobs are going to go
away. >> i think, brenda, john makes a great point you're not supposed to make minimum wage forever. it is jur entry-level point and then you do a really good job and then there comes in the merit and you make more money. it's not supposed to be forever salary. >> the pictures you're seeing on tv right now, the pictures you're seeing in the margin, that is free market capitalism at work, when people are feeling oppressed threat what they do. that's their recourse to go on strike. >> they don't have to go to work. that's free market. >> the fact that we have one of the lowest minimum wages in the developed world, it's pathetic. >> i got to let that be the last word. thanks to all of you. as you're packing for the beach, leave the work phone at home. that's not me saying it. try your boss.
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♪ well, who hasn't thought about doing just that? the number of you checking work e-mails while on vacation and afterhours is growing. but that may be about to change. some companies now enacting smartphone blackout periods. they say overuse is killing productivity. so gary k., is this to disconnect a good or bad business move? >> i don't like it. look, you show me a success story and i'll show you somebody that is connected at all times. that's what business is all
about. if my phone ever goes dead, i lose it. i think companies should stay with it and let people work. >> well, mark, is there a dark side to having this as an appendage all the time connected to you? >> to have your sort of smartphone be a leash when you're on vacation, perhaps on your labor day vacation, watching television as the case may be, yeah, absolutely there's a dark side to this. people like to be able to plug into work when they're away and be productive but don't like when work plugs into them and so the ability to be reached by your boss, is not necessarily always a good thing. there's still a separation between, you know, social and private life and professional life and i think a lot of employers are wising up to this and why you see them, for example, putting out mem ren da giving guidance on how and when to respond to these types of e-mails and be always -- when they expect you to be on your blackberry, for example. >> john, it kind of depends on your job, doesn't it? if you're a ceo or janitor,
doesn't it depend on that? >> it does depend on it. somebody calls the wabulance. this is the stupidest thing i've ever heard in my life. this country was built on work ethic. unless you're running for mayor of new york, that guy needs to stay off his phone by the way, keep your phone with you and be glad you have a job. >> sometimes you have to go out and buy school supplies. >> and can't get reception in staples, i've figured that out quickly. i think at the end of the day, people have to prioritize a little bit too. if your kid is talking to you and your boss is e-mailing you simultaneously, answer your kid first. your boss -- we got -- because i do think we're starting to feel that a little bit at home. we don't look at each other anymore. everyone is in their phones. we're losing contact with each other. make that conscious choice at home at the same time, the days that i am home and i am not here, i do check my e-mail because i don't want to come in blinded. >> okay.
>> sorry. >> gary b. >> weigh in here. >> well, first of all, i can -- i am with john. i think this whole thing is kind of silly, not the topic silly, but the fact that people are worried about it is silly. most people check their iphone because they want to. the days i think of the boss knowing that if tracy worked for me, i know she's away on labor day but i'm going to call her anyway, it's probably an emergency and tracy would want to hear from me. it's not tracy, you didn't file your travel expense report. bosses aren't doing that unless they're from, you know, the stone age or something. and two, it's actually -- for me, when i'm away on vacation, less stressful for me to check it then rather than come back and the day you get back you have 250 things that are our gent and ruins the whole vacation. i think it should be -- >> we would all like to hear from you, though. thanks, guys. >> thank you. >> thanks to mark for joining us. well, how would you like to be staying at this five-star resort
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predictions, gary b., take it away. >> i will go out on a limb and say nothing happens in syria. the dow rallies up by dia. >> john, bull or bear is. >> i think gary is early. bear. >> your prediction, john? >> i think uncertainty in the middle east keeps oil prices high. see dra limited partners has a huge yield. up 20% in the next year. >> starbucks, 20% in the next year. accelerating earnings and revenues and insiders buying at the highs. >> gary b., what do you think? >> bearish right now. >> okay. tracy, your prediction. >> bunch of federal judges at a conference at the broadmore hotel.
washington is supposed to be cutting back. we are at home. maybe they should do the same. >> they can print money. we can't. >> you know who is a classy guy, neil cavuto. neil, take it away. well, on this labor day weekend some labor pains for the health care law. glad to have you you. i'm neil cavuto. be careful what you wish for. >> we're about to take the historic step towards our goal of providing quality health care to every american. this bill is a great step forward. >> well, that was then. this is now a fshgs lshfl-cio c richard trumka smiling then. not so much now. >> we've been working with the administration to find solutions to what i think are inadvertent holes in the act. when the act was put together it wasn't thought completely through and so we worked on a daily basis. i'm hopeful we will get something done in the near