tv Maria Bartiromos Wall Street FOX Business January 24, 2021 6:00am-6:31am EST
i reminded buddy, "you can't take it with you." i'm jamie colby. thanks for watching "strange inheritance." we hope yd weekend. ♪ >> from the fox studios in new york city, this is maria bartiromo's "wall street." maria: happy weekend, everyone. welcome to the program that analyzes the week that was and helps position you for the week ahead. i'm maria bartiromo. coming up right here, peebles corporation ceo don peebles is with us on biden's economic agenda, also the founder and ceo of what's being called a freeway speech alternative to youtube. the founder of rumble will join us on the threat from big tech competitors. but first, let's take a look back as we first look ahead at some of the week's big moments
with top newsmakers on "mornings with maria" in this week's edition of "the talkers." 9 do you think democrats will come to the table, be willing to compromise despite the fact they are in control? >> i hope so, and i think they have to if they want to get anything done. maria: joe biden wants to make that citizenship real for the daca recipients. >> quite frankly, i think what you're seeing is the taking down of the america first policy that president trump championed and moving towards an america last policy. maria: give us your sense on how he will govern. >> i think his tone is going to be different, quieter. i don't think you're going to hear him attack republicans or people who oppose. maria: how can we create unity, if you will? >> he could show a big step towards that unity by telling the senate that this is, an
impeachment's not good for the country, that we need to turn the page. maria: on wall street, markets hitting record highs this week as president biden entered the white house. the dow and the s&p 500 seeing their best inauguration day since reagan was sworn in back in 1985. joining me right now to talk about the impact of this new administration and its policies, alpha one capital partner's founding partners dan niles. dan, it is wonderful to see you. we did get some negative earnings news at the end of the week, and doubt is growing over this $1.9 trillion stimulus plan. but tell me how you see it, your strategy and new policies to consider. >> you look at biden's $1.9 trillion stimulus that he wants to put in, close to 900 billion that was approved late last year under president trump, that's another 13% of gdp that's being contemplated. so that's going to make it, you know, very tough, i think, you
know, for the market to go down a lot until you start to see that sort of starting to flatten out. maria: and then you've got the federal reserve expanding the balance sheet, right? what dud janet yellen say this week during her nomination testimony? regulators and lawmakers should go big, act big, she said. >> yeah. and i think you're going to see, obviously, the fed has talked about keeping rates at zero through 2023, but i think they're going to run into a big problem because with all of the stimulus, my analogy is you can smoke three packs of cigarettes a day forever, but eventually it's going to catch up with you. and i think we haven't seen inflation for the last decade really since the global financial crisis, and you could argue for 40 years really since rates peaked in 1981. but i think all the stimulus, we're starting to see it in the inflation numbers that are already are up about 1.5% in the middle of a pandemic.
when global economies open up in the middle to late part of this year, i think we're going to see those numbers get a lot higher, and that's going to cause a real problem for the market. that's how i see this playing out. maria: how do you allocate capital in this environment in when we spoke one year ago when you were talking about, you know, investing, allocating capital for 2020, some of your top picks on this program had a technology bias. you said amd. stock is up 100% since you picked it. you had disney as a pick, 25% since you picked it. invidia, it's up 122%. wow, what a record. congrats on that. your group of names that you like this time around has more of a value theme. i know you with like jpmorgan a rot. talk to us about -- a lot. talk to us about allocating capital in 2021. >> sure. we've got some articles on my web side, dan niles.com, for
those that are interested, and we talked about how our picks this year have more of a value bent and they're outside of technology for the most part. we're looking at things that can benefit from the opening and things that have very good valuations. you mentioned jpmorgan, of course, trades at 14 times, has a 2.6% dividend yield, but if you think of the bank stocks last year, they were down 4%. energy stocks, which is another favorite of ours, reopening play, those stocks were down 37%. so two of the three worth performancers last year. you look at those spaces this year, they're outperforming the market because you've got very good dividends, low valuations, and oil, obviously, you know, we're not driving, we're not getting in airplanes. industrial demand is down quite a bit. the economy's open up, demand should improve quite a bit a bit, you don't have a rot -- a lot of supply, so those things will do very well.
interesting ideas, we've got more longer term themes like in the online sports betting space with an etf that's called betz, and i think that's pretty interesting as well. and we have one tech pick which is oracle which, again, is trading the around 14 times. we think it's interesting because of their cloud play. maria: yeah. i love that you chose oracle, a value play in the cloud business where you've seen cloud valuations skyrocket. want to get your take on this energy pick, because we know that one of the executive orders from president biden was to stop the drilling and kill the xl pipeline. does that impact your call on energy at all given the fact that the incoming administration is taking that stance against the pipeline and energy? >> yeah, it's an excellent question, maria. obviously, prices for
commodities, there's two sides to it. there's the demand side and then there's the supply side. and what we know with president biden is, he's not going to let a lot of supply come online. as you mentioned with the i'm line, for example. -- pipeline, for example. without a lot of investment last year or really the the last decade, the supply side is going to be constricted, but the demand's going to pick up. you should see prices actually firm as we get through the back half of the year, and that should really help a lot of these oil companies, many of which were struggling to stay out of over the last 12 months -- out of bankruptcy over the last 12 months. dividends be able to be sustained or go up and buybacks resumed. that's why i feel good about that space. remember, we were down 37% last year. maria: that's a good point. >> there's a reason it's already up double digits this year. maria: i know you've got this group of names who are doing
selective stock picket, but broader market you think could come under some pressure second half of the year. >> especially starting in april, oil prices went negative, so all of the commodity costs are going to look very strong when you get to that period of time. nickel, copper is already up 30 president year-over-year, things like soybeans, oranges, orange juice, corn, that's up 20-50%. in april it's going to be even stronger, and then in the back half when the economies open up, that's going to cause a bigger issue. rising inflation, rising 10-year treasury yields, that's not going to be good for markets that have had low rates as a, you know, something they can look forward to for the last 10 years and, arguably, 40 years. maria: amazing, as always, analysis from you, dan niles. thanks very much. coming up, biden's first order of business, reversing key participants of trump's legacy. how does that jibe for his pledge for unity with
republicans? i'm asking real estate magnate don peebles next. and then a free speech alternative to youtube, rumble. a video platform without censorship but with crackdowns on sites like parler, are any (judith) at fisher investments, we do things differently and other money managers don't understand why. (money manager) because our way works great for us! (judith) but not for your clients. that's why we're a fiduciary, obligated to put clients first. (money manager) so, what do you provide? cookie cutter portfolios? (judith) nope, we tailor portfolios to our client's needs. (money manager) but you do sell investments that earn you high commissions, right? (judith) we don't have those. (money manager) so what's in it for you? (judith) our fees are structured so we do better when our clients do better. at fisher investments we're clearly different. ♪ ♪ (quiet piano music) (loud music & noises) ♪ ♪
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election to the far left. maria: joining me right now is peebles corporation ceo don peebles. don, it is great to see you this weekend. thank you for being here. president biden making these moves right off the bat. are democrats really serious about working with republicans, don? what do you think? >> you know, i think joe biden is definitely serious with working with republicans. that's been his method of operation throughout his political career, especially the four decades he's been in the united states senate. so i do believe him when he says he wants to work with both sides of the aisle and be president for everyone. maria: all right. well, that's good news. what do you see in terms of the impact of his policies on the back drop, don? a lot of times we've been together talking about the really awful situation taking place in new york, people leaving in droves. how do you reverse that? do any of these policies reverse what we're seeing in the economy
today? >> well, i think what he's done is what many presidents do when they first come into office, is they deal with some of the key priorities that they can take executive action on that their con stitch wents and their base have arctic -- articulated and asked for. he's doing that now. but the number one thing i think he'll do is make a stronger effort to impose the federal government's will on many of these states in terms of dealing with covid. whether that will be good or bad is hard to say because i'm down here in florida, and things are running pretty well down here. the government has allowed the economy to stay open, and unlike new york city, for example. maria: yeah. i love this thought because you're seeing both sides. you're seeing the new york situation, and then you're in florida, so you're seeing the people who have left new york and the activity there based on policies. what's going on with real estate right now? i know it's very bifurcated when you look at commercial versus
residential, but tell me the headlines, what you see from your incredible vantage point on real estate. >> we've talked about how office space has been in a holding pattern and on the decline in places like new york city. what's interesting is in florida, office space is on the rise. companies and entrepreneurs have been relocating from the northeast down to florida. the residential market, single-family has been exceptionally strong throughout the pandemic, and prior to pandemic in south florida. what's interesting no is condos have ticked up and there's now a great demand for that and in the rental market, especially in the upper end in south florida, has picked up significantly are. new york is beginning to pick up a bit more demand because prices have go down so low, there are some consumers either on the rental and on the purchasing side of residential that are
seeing value opportunities and buying. but we're a long way to come back. i think new york is going to have some greater pain, and i think you're going to see florida, especially texas as well, austin is doing extremely well and tennessee is doing very well. and then places like charlotte, north carolina. pro-business, lower tax structure, they're doing very well. virginia is picking up as well. so what it's showing us is quality of life, business-friendly environment and better tax policy is attracting customers both on the housing side and on the commercial side. and you're going to see the hospitality market begin to come back as this vaccine continues to get distributed which was started by the last administration, and that will propel more americans to begin to travel to places like florida, texas and other places that have this virus a bit more under control. maria: and you with say -- well, look, you've got a specialty in
large scale public/private development, so you see all of this firsthand. you said will see more pain. what does that look like? how does that play out, that more pain? >> well, i think the challenge new york has, its structural budget is out of whack and has been prior to the pandemic. the pandemic has exasperated and accelerated the decline in the city's budget. they're going to have to make some very difficult decisions in both the state and the city government that i don't think the politics are -- politicians are prepared food, and i don't think the federal government will get all the money to new york that it needs. they're going to have to make some aggressive cuts, or they're going to have to raise taxes. i believe they are doing to do the latter, they will raise taxes which will send more people out of new york. and also the more it slows down, the more decimation is taking place in small and mid-sized businesses, and they are going to have to rebuild their businesses and lives elsewhere.
so that's going to have a devastating impact on the job market in new york city and on the real estate market in new york city and the overall economy. and i think it's going to take a couple years for it to bottom out, and then i think that you'll see the politics shift in new york where there'll be an appetite to do what is necessary to structurally recalibrate new york. maria: wow. tough stuff going on there. don, it's good to see you. thanks very much for joining us on this important subject. we will keep watching. see you soon, don, thank you. >> thank you. maria: don peebles joining us. david and goliath, youtube competitor rumble is suing google for suppression as concerns mount over whether a free speech social media platform can survive crackdowns. i'll be speaking wit
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♪ ♪ maria: welcome back. a federal judge has refused to order amazon to reinstate social media site parler after claims the platform incited violence at the capitol. now conservatives who say they are being censored are flocking to rumble, among others, a speech alternative, a free speech alternative to youtube. i spoke with the ceo, chris paf love sky, about -- paf love sky and if he has a system in place against being shut down. >> the reason why i started rumble was there was this movement where a lot of small creators, the little creators, were starting to get very disgruntled, and they were no longer able to get any kind of distribution and monetization on their videos like they were able to earlier in the day. so if you think about youtube circa 2007, 2008, the front page was, like, all home-based video
content, like charlie bit my finger. by 203, it was -- 2013, it was large icons, big media companies, but the small guy was left completely behind. and this is exactly why we started rumble, to try to help the small creator build their presence, get the distribution and monetization that they deserve. fast forward to 2020, and it's a whole new ball game on the censorship side. it's kind of come right up to everyone. everyone can see it now. maria: well, you're right. i mean, look, parler was put out of business because its competitors were able to say, you know, it has something that is not protecting, you have to have protections in place to insure you don't have people, you know, inciting violence are. does rumble have a system in place to protect against being shut down like that? >> yeah. so we're quite different than parler. we don't really compete with them at all.
and the -- we've been around for eight years now. so we've built in some really strict moderation tools, and we have a really strict terms of service where we're able to catch this stuff really quickly. i think we're able to catch it probably quicker than the larger companies, and that's why in the last eight years you've seen rumble without incident when it comes to this type of stuff. when it comes to moderation, our moderation tools are advanced, and our team is very large which allows us to kind of stay away there these kind of things. maria: so, chris, you recently filed a lawsuit against google. the parent company of youtube, for suppression of your site. tell us about that. what was google doing to rumble? >> yeah. so we filed a complaint last week which was served this week, and what we alleged in our complaint is that google was self-preferencing youtube in their search results. in addition to that, they were also, they also have a pre-installed youtube appen on
mobile devices which makes it, like, next to impossible for companies like myself to compete. and, you know, in our complaint what we alleged is that 9.3 billion visitors were redirected to youtube instead of rumble which cost us at least 100 million video uploads to rumble and damages well in excess of $2 billion. in my opinion, it's not injury just on rumble here when this happens, it's injury on countless different entrepreneurs and tech entrepreneurs, it's injury on all of our rumble creators, and it's injury on anybody that wants to start a business and get listed in google. they really just don't have a shot at competing or even getting listed. it's truly sad. livelihoods are getting wrecked because of this. maria: yeah. yeah, and it's un-american. but, chris, real quick before you go, we only have a couple seconds here, are you going to
have to build all your own infrastructure? that is a lesson that parler learned the hard way. it's not going to be able to rely on amazon, on google, on big tech in general. apple took it off the apple store. do you need to invest in your own infrastructure? >> well, we started our business building it the old-fashioned way, bare metal servers across the u.s. and the world, so our infrastructure's quite different than the way parler does. we don't rely on cloud services or hosting. maria: my thanks to the ceo of rumble, chris broken windshield... take 1... hey guys, my windshield just got broken, i feel like i need to blow off some steam. let's go... 1, 2, 3, 4... mr. blanks? there's no need to be stressed. geico makes it easy to file a claim online, on the app, or over the phone. yeah, but what if i never hear back? that's gonna make me want to go jab...jab! nope! your geico claims team is always there for you. that makes me want to celebrate with some fireworks. 5,6,7 go... boom, boom, boom, boom boom boom boom boom boom, yeah! geico. great service without all the drama.
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maria: welcome back. be sure to tune in to fox business every friday night at 9 p.m. eastern for another edition of "wall street." we're working on a big show next weekend. see you on fox news sunday, 10 a.m. eastern live on the fox news channel, i'll be speaking with former department of homeland security acting secretary chad wolf and senator tom cotton along with journal is
glenn greenwald and lee smith. and right here on fox business start smart from 6-9 a.m. eastern, check out "mornings with maria" right here on fox business. that'll do it for us for this weekend. thank you so much for being with me. have a won rest of the weekend, everybody. i'll see you again next time. ♪ ♪ gerry: welcome to the "wall street journal at large." the united states has a new president, and it's only right that the nation comes together to congratulate him and wish him the greatest success. joe biden has a series of tough tasks, to rebuild a nation wounded by the deadly pandemic, to repair an economy ravaged by lockdowns and perhaps, above all, to bring together a perilously are divided nation. now, to watch some of the adoring coverage of president biden's first days in office, you'd be or forgiven for