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tv   Mornings With Maria Bartiromo  FOX Business  May 26, 2022 6:00am-9:00am EDT

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larry: really be sure and buy kellyanne's book, here's the deal. i hope she runs another presidential campaign. i also know i was her favorite in the white house. i'm kudlow. we'll be back tomorrow night. ♪ maria: good thursday morning, everyone. thanks so much for joining us. i'm maria bartiromo. it is thursday, may 26th. your top stories right now, 6:0. today recession worries and the federal reserve, the second reading of first quarter gdp out this morning, 8:30 a.m. eastern. expected to confirm contraction in the first quarter with a decline of 1.3%. two quarters of consistent track a shun is recession -- contraction is recession. ahead of the data markets are mixed. dow industrials right now up 100 points, with a gain on about a third of a percent on the dow,
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s&p 500 higher by 10, the nasdaq is lower by 1 point. we are also awaiting earnings this morning from macy's and dollar tree and dollar general. before the opening bell. we'll get the numbers to you as soon as they hit the tape. they are a market mover as so many have been this week. stocks finished yesterday higher on positive signs about the consumer. at the end of the day, the dow jones industrial average was up 191, two thirds of 1%. the nasdaq was up 1 and-a-half percent, a gain of 170 points. rallying off the lowest close since november 2020. the 5 p hundred higher by -- s&p 500 higher by 37 at 4:00 on wall street. the 10 year treasury is down one and-a-half basis points at 2.736% following the federal reserve's minutes yesterday, this was from the may meeting and federal reserve officials were virtually unanimous on 5 # of basis point hikes in june, july and a possibly september as
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the fed vowed to fight 40 year high inflation. another look at inflation tomorrow morning when we get the april core pce index out, the fed's preferred inflation read, it's expected to be up 4.9% year over year. oil meanwhile is higher this morning, take a look at the inflation that we see in oil and gasoline. the price of brent right now at 114, 89, up three quarters of 1%. price of crude oil at 111, 33, up about 1% as prices at the pump hit record highs this morning, triple a reporting regular gasoline is at $4.60 a gallon. today the nation's largest bank p weighs in on the health of the consumer in the face of inflation, as bank of america and apple are moving to raise wages again. >> the money in the customer accounts at the end of the month of april was up over march, again very strong, especially in the lower balance accounts. in the people who get paid and
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get direct deposits, wages are up 8% year over year, especially for median income and down and they have lots of borrowing power. it's good news tore the fed and makes their job tougher. if you think about wage growth and inflation and wages and the tightness of the labor markets, that's still there. they've got to slow that down and that's the tension that will go through the system over the next four to six quarters. maria: we're going to hear more about what is ahead from the ceo of bank of america this morning, brian moynihan on the state of the consumer, business, and his reaction to new climate rules from the securities and exchange commission. he'll join me at 7:30 a.m. eastern this morning. meanwhile, european markets are inching higher. the eurozone, as global markets react to the federal reserve minutes, the cac is up 42, dax higher by 75. overnight in asia, markets were mixed, shanghai composite in china was higher. take a look. half a of a percent.
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the others fractionally moving lower. more from the economic forum this morning, we're live in davos, switzerland with a host of guests. join us coming up. "mornings with maria" is live right now. and your morning mover is nvidia, taking a hit this morning, down 5 and-a-half percent after the software company reported earnings after the bell last night, forecasting second quarter revenue to come in below expectations. the company is expecting sales of video game chips to decline over china's covid lockdowns impacting the supply chain. the company's ceo says nvidia will slow down the hiring pace and control expense as it deals with the current macroeconomic environment. the stock is down 42% year-to-date. the stock this morning one of the movers on the agenda. rest of the market is actually fractionally higher this morning following the release of the minutes interest the federal reserve. they were very clear, 50 basis
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point hikes coming, noting it will likely raise rates quicker than the markets expect to fight inflation. we're going to have 50 basis point hike in june, july and there was a debate about september, possible september as well. treasury yields are falling as investors weigh those minutes. the 10 year yields right now is down about 2 basis points at a level of 2.733%. joining me to talk about all of that is anderson capital management chief investment officer, peter anderson. joining the conversation all morning long is fox business' dagen mcdowell and strategic wealth partners president and ceo, mark tepper. great to see everybody this morning. thank you so much for being here. peter, kicking things off with you. your reaction to the fed minutes and what we learned, what you're expecting as a result of these rate hikes. >> well, you know these minutes are backward looking so they're not -- even though they're projecting in the future, maria, i do think that they left -- they opened the door just a little bit with nuanced language that might give them more
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flexibility. so let's assume that things stay the way they are now. of course, i think they will raise, continue to raise rates. you know, we are in such an uncertain period now. looking at data daily, i wouldn't be surprised if we started to see inflation ebb a little bit and in that case i'm hoping they will be adaptable enough that they might have to revise their thinking based on those minutes. i think that we are coming out of a period, i've said this before, where we have no map and they're trying to do the best they can but we can't look at a playbook. this is all new data. and it is very, very challenging, isn't it, to go forward with this and map out a road map for even through september of this year. maria: yeah. and they were very clear that we're going to have 50 basis point hike in june, july, and then there was a debate. some of them said yes, september as well. others said at the federal reserve, we want to see where inflation is when september comes around but mark tepper,
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jump in here. we're waiting for the gdp out this morning and the gdp is expected to show a contraction of 1.3%. this is the second revision of the gdp. the second reading, rather. the first one was the first revision. this is the second reading. we're looking at a contraction. we'll get personal income and spending out tomorrow morning. your thoughts on what you heard from the fed, mark. >> maria, there's absolutely no question about it. look, growth is slowing. inflation's eating away at consumers and businesses and i want to ask peter a question. the question is this. the story end of last year and kind of leading through the beginning of this year was all about yields were going up and, therefore, growth stocks and tech specifically got banged up as a result of that but peter, over the course of the last several weeks, you've seen yields come down meaningfully so you would expect a relief rally in growth stocks and tech stocks. yet the nasdaq continues to make
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lower lows versus the s&p. why isn't the nasdaq, why isn't the tech getting any love? tech sector getting any love. what do you make of that, peter. >> one of my favorite topics. thank you for asking that. well, i've always been a critic of the basic theory that when interest rates rise, growth stocks take it on the chin. mark, there have been many occasions, i've written them myself, doing the calculations, showing future cash he flows, discounting them back, depending on the assumption you make, you can get any answer you want. it's not that a simple. we've heard this mantra over of and over again for at least a year. rates go up, growth stocks go down. if you have growing cash flows that offset those rates, you can make that such that growth stocks will even beat value stocks. so i'm not at all surprised. in fact, i'm a little bit relieved that this might be breaking down right now because it's a much more complicated
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calculation and presentation to make than a simple one liner take we've heard as i said for the past 12 months. maria: you wonder where the bottom is, given the fact that the nasdaq is already down 30% year-to-date. we're seeing valuations way out from where they were six months ago. when talking about the federal reserve, dagen, it's not just the rate hikes coming, it's the unwinding of the $9 trillion balance sheet which you talk about so much. dagen: it is if the purest terms the destruction of money. that would suggest that all of the wildly over-inflated assets, even with, say, a loss of 30% on the nasdaq, have a lot more air to come out of the bubble and this is anywhere and everywhere and in terms of inflation, the federal reserve will still be under pressure to reduce that balance sheet and raise interest rates because of just what's happened with the price of diesel.
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now, diesel hit a record high on the 18th of may and it's come off that record high. but we feed to remind people -- we need to remind people over and over again that anything that is transported by train, truck, ship, tractor, it uses diesel and that filters through to any product and every product around the globe. maria: that's a great point. dagen: and then you talk about farming. farm equipment -- diesel engines power two thirds of all farm equipment. 90% of farm product is carted to market using diesel. and one-fifth of the water in the united states is pumped via diesel. so you how that doesn't continue -- so how that doesn't continue to fuel broader inflation, it's not a guess. it's a certainity. maria: yeah. and in fact, peter, this is the only place that you really made some real money this year if you were in energy, you're good, you're probably up on the year.
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>> you would be, yes. one other thing i wanted to mention, maria, is the snap situation where they revised their outlook in such a short time, i think that is so symbolic of the way we are right now in markets. i mean, there's been so much new news that we can't really spend much time thinking about each individual situation but let's just spend 30 seconds on snap. the fact that they changed their outlook in such a short time is stunning to me and i think it shows you that even the top ceos of companies trying to get a picture of where we are, it's extremely difficult in that they would go to the point of actually filing a revision saying that their outlook has changed and what was it, four or six weeks. that's incredible. maria: that was very significant and it obviously moved all the social media stocks, right, peter? thens there's twitter, elon musk announced that he's going to increase the equity portion of his funding plan for twitter. now it includes 33 and-a-half billion dollars in equity.
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he will no longer rely on a margin blown backed by the tesla shares, tesla stock has traded down in all of this. the announcement sent twitter up in the aftermarket last night and the co-founder, jack dorsey, reportedly is stepping down from the board as well. any thoughts on where we are on this twitter acquisition from elon musk? >> plenty of thoughts. i don't think i have enough time here. but just a couple of things. number one, the fact that he has talked about how many bots, fake accounts are in twitter, amazing that he's brought that up at this point. maria: i love it. >> i think it could just be a negotiation tactic but on further investigation, it is very difficult to count those number of bots. if you take 100 accounts, and you do an algorithm to figure that out versus actually hand counting them, you get crazy differences. and so that could be just a negotiation tactic for him to bring down the price but when you're talking with elon musk, there's always kinds of things
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that can come out of left field and i do expect more surprises with him before we actually get to deciding whether or not the deal is going to close. maria: yeah. no, i think he really exposed something important with that exercise of figuring out how many fake a accounts there were, for sure. i love it. peter, it's good to catch up with you as always, thanks very much. >> you're welcome. maria: peter anderson joining us this morning. we're just getting started, coming up the chairman and ceo of bank of america is here, brian moynihan on the consumer, on business, growth. what 5% mortgage rates have done for the mortgage market and then an overview of the gulf of mexico ball climate -- global climate agenda. we get his reaction on the new rules out of the s.e.c. today. august pfluger is here on the tragic shooting and the ongoing border crisis. we'll talk with him.
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and kellyanne conway is here in the 7:00 a.m. hour. she reacts to the michael sussmann trial, who may very well testify today. the possibility of a trump 2024 campaign as well. don't miss a moment of it. you're watching "mornings with maria" live on fox business.
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maria: welcome back. energy policy and the climate, major topics at the world economic forum this week in davos, switzerland. kelly o'grady is live on the ground in davos with more. kelly, good afternoon to you. >> reporter: he yes, and good morning to you, maria. yes, of course, energy policy is one of the big themes here in davos. but there are differing opinions on how to handle that russian energy threat. some here say we need to double down on our green goals with u.s. climate envoy john kerry arguing, quote, we should not afalse narrative to be created
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that what happened in ukraine somehow object i have yachts -- obviates what we have going forward. i spoke with the director of the international energy agency and he argues for a more practical approach. >> the fight against climate change will be weakened in a short period of time but rightly so in some cases, even in europe. the countries are going to use coal for the winter. it's a crisis and we have to provide some solution to that. >> reporter: and much buzz here focuses on alternative fuel optionses to russian energy, nuclear energy being a big topic and the need from traditional energy producers. >> one of them is the u.s. shale oil and gas. it is very important. because they can come to market
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and leave the market very quickly, some additional barrels would come from the traditional suppliers in middle east and elsewhere which is currently unfortunately missing and i hope that those governments are going to move in a responsible direction. >> reporter: the iea director did emphasize the need to continue investing in he renewables but i found the conversation so interesting because it was practical and a solution oriented. we need solutions now, not years in the future, maria. maria: yep. kelly, thank you very much. kelly o'grady, great reporting from davos this week. we'll get back to you. coming up, in his own words, former crittenton lawyer michael sussmann could take the stand today. there are a few stipulations he wants. we'll preview it coming up. stay with us.
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maria: welcome back. former clinton campaign lawyer, michael sussmann, may take the stand in his own defense today in the durham probe but only under certain conditions, he says. his lawyers are asking the judge to keep the government from asking questions related to pre-indictment negotiations. sussmann faces charges of lying to the fbi. joining me now is the us newsweek opinion editor and the
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josh hammer show host, josh hammer. josh, great to have you today. thanks very much for being here. what do you make of these demands that sussmann is making, that he doesn't want any questions before the indictment? >> maria, great to be with you. it's a show of some mild trepidation to put it mildly from sean burke wits, michael sussmann's lawyer. the question i have and a lot of other americans have is will we finally get some semblance of justice for the wrong actions that happened as a result of the fbi's wrong and terrible cross fire hurricane investigation going all the way back to 2016 campaign. at news, we have an op-ed up today and some of the things that ben talks about in his column here, he shows that the judge in this case, judge christopher cooper who is a barack obama nominee, he actually was clinton doj colleagues with michael sussmann. judge cooper referred to michael sussmann as a, quote, professional acquaintance.
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judge p cooper's wife donated $2,700, $2,700 to hillary clinton going back do the 2016 campaign, amy jeffers served in the obama doj. she formerly represented lisa page. people are wondering will we get a sense of justice from the case of. case. there's two set of rules. we'll find out soon, though. maria: i'm really enjoying newsweek and the newsweek opinion, so thank you for that. i'm glad that you promoted the publication. but i want to get your take broadly what we're learning here because while michael sussmann is being charged with lying to the fbi, you and i both know the bigger story here is john durham putting the pieces in place to actually get that accountability so that the world can understand
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specifically what happened and as it relates specifically to fbi, i am not buying the fact that there are suggestions that michael sussmann duped the fbi. the fbi's investigation of donald trump was in place and they knew that the dossier was fake, they knew that the alfa bank story was not true and yet they still pursued fisa warrants on trump officials, so the fbi is really the focus that i'd like to see, will john durham put fbi people on the stand again in the coming weeks? where does this go now? >> so it's obviously an open question. i mean, i think all along republicans, trump supporters, people who want to see justice on the law have been praying that john durham has one hand behind his back, he's going to at the last second unveil maybe some sort of sealed indictment, there is something that is forth coming in the case. i don't know. your guess is as good as mine.
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michael sussmann is a good place to start. at the end of the day in the grand scheme of things when you think back to kind of the long and a sorry tale of what happened going all the way back to summer of 2016, through of course the mueller investigation, michael sussmann is ultimately a fairly small fish in this greater terrible story. he is an important data point. it is symbolic. okay. it is symbolic and it's meaningful that we might get some justice. at the end of the day, phi kind of meaningful justice will happen beyond the durham probe. after republicans probably retake congress, the house and the senate, what it looks like this fall, come january 2023 what we'll probably see is mass use of the subpoena power to get to the bottom of this. that is probably at this point a better chance many i'm sorry to have to say it, probably a better chance to get meaningful justice and get to the root of the affairs than the durham probe. i could be wrong. hopefully john durham has a little more up his sleeve. maria: yeah. and all of those congressmen who
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misled or lied to us like adam schiff going on every tv show telling us that collusion with trump was in plain sight. no, it wasn't. not at all. and i reported that at the time and where is accountability for him, the way he spoke and misled the american people. you mentioned the republicans taking over in november. there are republican members of the house oversight committee right now sending letters to several banks and the treasury department, they want more information about hunter biden and his associates' financial records, josh. the move is of course laying the ground work for a continuation of a probe into hunter biden's influence peddling. what are you expecting here? >> so there's really not a whole lot legally speaking that republicans can do while they're in the minority but as you said, maria, what they're trying to do right now, they're trying to set the table for their possibly and probably likely taking over both the house and senate come january 2023. in which case, when republicans are in the minority, vis-a-vis
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the white house, they don't control the white house but if they control the senate there aren't a whole lot of things they can do but mass use of the subpoena power is one of the tools they can use. whether it's the hillary e-mail scandal, cross fire hurricane or hunter biden and his laptop from hell, that is where republicans should probably spend the next two years, using the subpoena power to call people to the stand, whether hunter biden or people in the clinton world to get to the bottom of the scandals. for four years, democrats over and a over again, whether it was the clause and this other kind of complete course craft that they found in a number of the constitution and they tried to apply to president trump, that was all nonsense. what's going on with hunter biden is real. we know by the way, maria, 15 to 20% of people said if they had known all the details of the hunter biden story before they cast their vote for joe biden in
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2020, they would have flipped their vote. this literally possibly flipped an election as well. it is deeply important that they get to the bottom of this. maria: now we're feeling the effects of when somebody is compromised, you've got the commander in chief potentially come he pro miffed when it comes to -- compromised when it comes to our leading adversary, the chinese communist party. we have to question, are the decisions the right decisions or do they having on joe biden because of the money the family took in. you hit it spot on, josh. thanks very much for weighing in this morning and we will see you and read you in newsweek, josh joining us this morning. we'll see you soon. coming up, beto o'rourke loses it, called an embarrassment as a derails a briefing on the shooting. wait until you see this.
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gunman who killed 19 children and two teachers at a texas elementary school this week. gerri willis now with the details. gerri, good morning. >> reporter: that is right, texas governor greg abbott saying the morning of the shooting salvador ramos wrote a series of messages to a teenage girl overseas telling about his intentions to carry out a mass shooting at an elementary school and shoot his own grandmother. meanwhile, texas candidate beto o'rourke is facing serious bashlash. deirdre: railing the update -- derailing of the update on the shooting to talk about gun reform. >> you're an embarrassment. >> shift down. >> the next shooting is right now and you're doing nothing. >> [bleep] >> this is totally predictable. >> sir, you're out of line. sir, you are out of line. sir, you are out of line.
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please leave the auditorium. >> president biden announces he and the first lady will travel to texas if the coming days to visit the families of the victims. and the second shipment of baby formula arrived in the u.s., lawmakers pressed ahead of the -- pressed the head of the fda. during yesterday's' hearing the commissioner admitted his agency was slow to act on the whistleblower complaint about conditions at abbott's michigan plant but ultimately he said it was the fault of a mail room issue that kept the report from him for four months. this as abbott labs says it expects to he reopen the michigan plant on june 4th but warns the formula it produces won't be on store shelves until the end of the month. meanwhile, apple announcing it's boosting pay for corporate and retail workers later this year. it comes as the tech giant faces
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unionization pushes among hourly store employees along with record inflation and a tight labor market. starting pay for hourly workers in the u.s. will rise to $22 an hour or higher based on the market. and johnny depp's legal team calling his ex-girlfriend kate moss to testify in his defamation trial against his ex-wife amber heard, the super model denying allegations of rumor of domestic abuse while she and depp were dating in the '90s. >> did mr. depp push you in any way down the stairs? >> no. >> during the course of your relationship, did he ever push you down any stairs? >> no, he never pushed me or kicked me or threw me down any steps. >> d epp also taking the stand for the second time yesterday, heard's lawyers showing text
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messages allegedly from depp claiming a woman's private parts were rightfully him, his lawyers accused of typing them up. maria: what a trial. thanks very much. a lot to talk about there. thank you, gerri willis. meanwhile this, 19 texas elementary school students, two teachers dead after an 18-year-old gunman barricaded himself inside of a fourth grade classroom in uvalde, and opened fire in texas this week. the gunman, salvador ramos, was eventually killed in the classroom during a shootout with an elite team of border patrol agents. joining us now, homeland security committee member, august pfluger. thank you for being here. such a sad story, condolences to you and everyone in texas who had to endure this, obviously the 19 families, 21 families. your thoughts on what should happen now? >> well, maria, thanks for
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having me. it's just horrific. we mourn with those families and that community. it's not too far from my district. and this morning i'll take my kids to school. i picked them up from school yesterday. there's no reason that parents should feel unsafe. there's no reason children should be unsafe at schools and more needs to be done to secure our schools, to make sure they have the resources that they need. there was covid money last year that was sent to schools and it needs to go to securing the schools. maria: well, i think this is a fairly really important point that you're making. how much money did the teachers' unions get, how much money did the schools get and how much of it is supposed to be earmarked for security? it's just amazing to me that we've got protection, armed people protecting government, protecting leadership. we've got armed people protecting so many areas of this
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economy and yet we don't have anybody armed at schools. how many more times is this going to happen before we get adequate security at our schools? >> well, you're right. and yesterday when i picked up my children and what a day that was, because there are parents in uvalde who are not able to do that right now. but there was a police officer outside of the school and it's a theme that i think this administration has which is a lack of security. we see it across the board. it's just disgusting. so we have to get focused can on that as a priority so all of our children are safe in those schools that when we take them and drop them off, that they have a safe environment and there is no worry. maria: yeah. uh huh. let me ask you about what we heard yesterday. fbi director christopher wray telling lawmakers that customs and border patrol agents are facing a challenge due to national security threats at the southern border. we've been talking about this now for years. here's the senate hearing
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yesterday. watch. >> certainly any porous point of entry is a potential vulnerability that bad actors of all sorts including national security threats can seek to exploit. i've had cbp folks show me around so i can see firsthand was they're dealing with. they have a heck of a challenge on their hands. maria: congressman, we can confirm that there were about 40 plus people i believe that were either on terrorist watch lists, members of ms-13, people who wanted harm for america. they were encountered, trying to get into america through the southern border. has the president done anything about this? >> well, no. he has absolutely not. and to hear the statement that it's a potential vulnerability, give me a break. 35 plus people matched the terror watch list this year
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alone. in 2017 to 2020 period there were 11 total. there was a lot to assassinate as as georgew. bush that someond the terrorist watch list was released in the united states. finally, we got the administration to release the number. they have to do more. i'm the only legislator to pass a bill on border security and hopefully it will actually go through the senate but we're sounding the alarm bells because this i believe is a pre-9/11 p91 moment where you hear mr. wray talking about potential vulnerables. no, it is a vulnerability and it is a real threat to our security. maria: it's like he says it's a vulnerability but nobody does anything about it, congressman. you're from texas. you're on homeland security. what have you heard about the potential of lifting of title 42, a federal judge told the administration temporarily they cannot lift it but now we've got
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50,000 migrants waiting. they're waiting to get in here. we know -- we see them on video waiting to cross the border. internal documents reviewed by axios reveal at least 8,000 others have been attempting toes cross every day -- to cross every day. dhs is tracking between 40 to 50,000 migrants waiting to cross right now, congressman. >> you're right. and the reason that they're amassing at our southern border at this point in time is because the communication from the administration was loud and clear. that we're going to lift title 42 and that you are welcome to come. it doesn't matter what secretary mayorkas might say otherwise. but that's the reason that they've traveled. and i'll remind people, i was there under the bridge last september when the 15,000 haitian migrants came and they came because they found out that i.c.e. had halted all deportments of haitians back to haiti and that's the same
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situation we find ourselves in. i will continue to lead on this and texas is suffering this. you know, i wonder as we learn the details about the president's trip to texas, i wonder if he will make a trip to the border. he'll be very close. uvalde is very close to that. i'm glad he's going to console the families but i wonder if he'll actually go to the border himself to see what he is doing, what his policies are doing to our state and our country. maria: well, i think it's a really good point. it's very close to the border. and yet the fentanyl is coming in considerably and consistently and he hasn't been to the border so we'll wait and we'll watch for that, congressman. thanks very much for bringing that up. august pfluger, it's always a pleasure to see you. thanks very much for being here, sir. >> thank you, maria. maria: we'll catch up soon. homeland security member, august pfluger. quick break, how one company is working to make the meta verse and ai reality.
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peggy johnson will join me live from davos. you're watching "mornings with maria" live on fox business. 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.
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$500 million in its last round of funding in an effort to deliver meta verse and ar technologies to business. joining he me is the ceo of magic leap, peggy johnson. great to have you. thanks very much for being here. give us a sense of where the growth is and how magic leap is looking to enhance the workforce with new products. >> well, thanks, maria. thanks for having me. you know, we see growth initially in the enterprise space and largely among markets that are also getting used to wearing some sort of head born device, surgeons might wear magnifiers or lights during surgery, defense, they wear helmets, manufacturing wear safety glasses. these are the areas we see the earliest entry for the tools that augmented reality can provide. maria: how will the headset look different. tell me about the magic leap 2 headset. it's interesting that you mention the medical industry,
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surgery, that's a great point in terms of the potential growth areas. >> yeah, so magic leap 2 will be quite a bit smaller, lighter, and faster. we listened to the leads of the enterprise who want to wear this all day long. for instance, in surgery, a surgeon may need to have that device on their head for many, many hours during a complex surgery. so we have surgeons who are able to see, for instance, 3d image of the brain and ahead of the operation they can map a surgical pathways that they'll take. they can use it as a training device for new neurosurgeons. so just lots of opportunity in the healthcare space when you can overlay digital content on the physical human being. maria: i love that. and obviously the device is lighter than we've seen in a long time and this is the key to it. we've seen companies such as facebook among others,
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obviously, invest heavily in the meta verse. tell me about the future as you see it. what do you hope to see really take place here with the meta verse? >> yeah. so i think initially the device and the current technology is in the form of something like a pair of goggles, it weighs about what a bose headset weighs. really to reach the mass market we would want the devices to be smaller and lighter, possibly in the form of glasses. i think that's when we'll see the breakthrough into the consumer market. make no mistake about it, augustmented reality is valuable for enterprise who can find a return on investment with these tools. maria: i think you make some terrific points. i'm with mark tepper this morning. jump in here, mark. >> i think it's cool the points you brought up about this really working in medicine and enterprise but i've got to ask about my kids. my son has one of these vr
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headsets and it's incredible. it's super cool. i tried it myself. but i've got to ask you. is this the future of socialization. are kids going to sit at home and hang out with their friends in the meta verse. i'd love to hear your take on that. >> that's been a big discussion here at davos, mark. for me, augmented reality is actually an opportunity to change was kids are doing now. they have a heads down look at their phones. now, you'll have a heads up look back at your physical world and in it will be digital content that's placed there intelligently. we won't have a heads down screen in front of you but we'll be accessing our physical world again with this kind of technology. maria: yeah. it's an interesting point to make. and certainly a major concern. peggy, it's great to have you this morning. we'll be watching. thanks very much. peggy johnson joining us live in davos. quick break and then the 2022
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in one second, sara. yes! will get a job offer somewhere sunnier. relocating in weeks. weeks? yeah, weeks. gotta sell the house. don't worry, sell to opendoor, and move on your schedule. yes! when life's doors open, we'll handle the house. maria: welcome back. energy policy, the climate among the topics taking center stage at the world economic forum in davos, switzerland are. kelly o'grady is live with more.
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kelly. >> reporter: hi, maria. while i've been here, i actually had the opportunity to speak with the ceo of a ukrainian private energy company, and i want to share a hiking bit of that interview. the hidden mission here is to help european countries correct what is a strategic mistake in their energy security. take a listen. >> you cannot afford anymore to buy 45% of natural gas from russia. or a 45% of coal e or 20% of oil. i think it was of dramatic mistake by politicians and by the industry to be so reliant on russia. >> reporter: now, along with other energy companies in ukraine, they've been able to keep their the energy systems operationalal amidst the war, but he argueed they can aid a europe in what he calls an energy transformation.
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>> we have natural gas from norway and ukraine can become exporter in three, four years' time. ukraine with has new energy strategy for european union, and it can become one of the major suppliers of clean energy to european union. >> reporter: he's also a big proponent of renewables and a supporter of the e.u.'s climate goals, but i did press him on how that would be feasible amidst the crisis, and unlike many here, he admitted it won't happen overnight. >> to reach european goal of 45% renewables, we need investment of $300 billion euros into this process. and it will take time, at least until 2050. >> reporter: the reality is the ukraine war will have to stop first, and european countries will have to choose investment over propping up
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russia, but he is optimistic. and i thought this was really powerful, he said it's not about rebuilding ukraine, but about building a new ukraine, maria. maria: great reporting, thanks very much, kelly to grady. dagen, your thoughts. >> asson thishing that they're actually -- astonishing that they're talking about renewables and green climate goals when natural gas has almost tripled, fertilizer prices have spiked, there's shortages of diesel and fertilize arer, and we're talking about a famine that could starve children in the poorest nations in this country. it's, in fact, a reliance in particular by germany on wind and solar and an abandonment of nuclear power that got germany and europe into the pickle that it's in and reliant on russia. so, again, their focus is wildly misplaced given what's going on in the world and the need for plentiful fossil fuels.
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maria: yeah. all really good points. as we have been talking, we've got the dollar general and macy's numbers, all better than expected. stay right there, because the next if hour of "mornings with maria" gips right now. ♪ maria: and good thursday morning, everybody. thanks very much for joining us this morning. i'm maria bartiromo. it is thursday, may 26th. your top stories, 7 a.m. on the east coast. today, recession worries and the fed. we just got some breaking newsen on retail, all better than expected as we await the second reading of the first quarter gdp. 8:30 a.m. eastern, expected to confirm a contraction in the first quarter. of course, two quarters of contraction is a recession. markets are rallying, take a look, we are near the highs of the morning, the dow up 129, the
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s&p 500 higher by 14 and the nasdaq higher by 10.25. we just got earnings from macy's and dollar general, beating on earnings and revenue. dollar tree also coming out looking strong before the bell. all of the stocks are higher this morning. take a looked at dollar general, up about 6%. macy's shares are rockiing it is up 11.5% on macy's, on a much better than expected quarter, also raising its full-year guidance for the earnings, and that certainly has investors buying. pleasure stocks finished yesterday higher on some positive signs about the consumer as well. that is really what is driving markets right now. dow industrials up 1 is 91 at the close, two-thirds of 1. the nasdaq was up 1703 at 4:00 on wall street -- 170, and the s&p 500 higher by 37. the nasdaq rallying off the lowest close since november 2020. we got the federal reserve minutes yesterday and, actually, it was positive for the market. stocks took off, and we are
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looking at yields pulling in. the 10-year treasury at a level of 2.735% following those minutes at officials were virtually unanimous on agreeing to 50 basis point hikes in june, july and possibly september as the fed vows to fight inflation. another look tomorrow morning when we get the april core pce index expected to come in up 4.9%, this is the fed's preferred inflation gauge. oil prices certainly have been feeling inflation their, and they continue higher this morning. the price of brent is up about three-quarters of 1% at 114.86. the price of crude is at 1131.333 -- 113.33. and prices at the pump are hitting new highs, regular gasoline is now at $4.60 a gallon this morning. today the nation's largest bank will weigh in on the health of the consumer as bank of america
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as well as apple among others are moving to raise wages once again. >> the money in the customer accounts for the end of the month of april was up over march, again, very strong especially in the lower accounts. interestingly enough, people who with get paid, direct deposits, we're seeing their wages up year-over-year especially for median income and coming down, and they have lots of borrowing power. the u.s. consumer's in good shape, and it's good news for the fed, but it also makes their job tougher because if you think about wage growth and inflation and wages and the tightness of the labor market, they've got to slow that down, and that's the tension that'll go through the system in the next 4-6 months. maria: coming up, brian moynihan on the state of the consumer, business as well as his reaction to new climate rules from the securities and exchange commission. he will join me at 7:30 a.m. eastern as well as 8:15, so join us fur that. european markets are higher,
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global markets reacting to the federal reserve minutes as well. the cac up 40 points and the dax in germany higher by 72. the big story is retail as macy's stock is up a 15%. in asia overnight markets were mixed. china was the one -- best perform, up half a percent, the others were lower, as you can see. more this morning from the 503th world economic forum live in davos, switzerland. we'll get back there coming up. "morning s with maria" is live right now. and it is time for the word on wall street. top investors watching your money, joining me now to talk more about it is strategic wealth partner ifs president and ceo with mark tepper, ubc financial services private wealth adviser ali mccartney and david nelson. great to see everybody. mark, kicking things off with you. macy's and dollar general both
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having better than expected earnings in the quarter. we are still awaiting dollar tree, but look at these stocks. macy's has raised its full-year guidance. we'll also get, by the way, costco and the gap releasing after the bellight,ht but --y stos stop 1 1 1 yourou reaction.on >ery, very, verurpre,, it pit p unow, kw, it' versynt,ti ihink t t the rai ct ye s bter thanhanha ared'sal ial tt.bu wbuheou lootd ho briol a morrta s lerse l a macy' ms tss ing, nortromesterday stocks aoc poppi sterday's i don iw4% 3% 1 1 prema pet p p haveeeooo w w it' a rightht now. maria: 15%. >> yeah, very strong. and then you rook at a dollar general which is very heavy in groceries where where they're experiencing a, you know, a lot of margin pressures, so i think
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the movement in these stocks is very surprising to me. and with a macy's and with a nordstrom i look at both of those really as just trades because i think there's no way they meet the guidance that they're laying out. the consumer is starting to struggle. you're seeing inflation really erode the financials of the consumer. they're running out of money before they run out of month. you're seeing credit card debt start to spike if back up. let's not forget student loan payments, all of a sudden those come back after august 31st. so you've got all these headwinds for the consumer. consumer confidence is down, and i -- look, for any of these stocks that are up 10, 15, 20% in retail, i'd be fading those rallies. maria: yeah, okay. if so you are basically selling into it then. >> that's exactly it. maria: yeah. i find it really weird, this
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reaction to the fed yesterday. treasury yields are lower following the release of the fed a's minuteses yesterday. the 10-year yield is pulling back this morning. the central bank says it's likely going to raise rates faster than the market expects. 50 basis points in june, 50 basis points in july, 50 basis points possible in september as well. allie, they also said there may be a need for a, quote-unquote, restrictive level of rates. your thoughts on what you heard yesterday. >> maria, you're absolutely right, and i would say to continue this theme of surprise at reactions, relatively surprised that the market's reaction yesterday to the commentary. is so on the one hand, you picked the right word, the word restrictive was used for the first time which i thought would send the market the other way. on the other hand, they started to talk about when and if they might pause. so in a way it was both sort of
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hawkish and dovish statement. now, the market has actually -- and we talked about this on the show before -- has actually tightened in advance the financial condition that the fed has been talking about for months. and we have said over and over again, as have many other places on the street, that we thought that the market had overanticipated or overexpected tightening. and is is to your point, yesterday we've seen treasury yields and even mortgage rates as a result start to come in. so i think that the market is in this trading range which is exactly what mark just talked about. a lot of people are selling the rallies as opposed to buying the dips. it's a totally different mentality, and i think that the focus yesterday started to change from when are, you know, we started to hear the word neutral. and i think that people were focusing on the concept of neutral and when pausing happens
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as we're now looking at a market pricing in a year from now, in may 2023, about neutral or higher. so, you know, very precarious, very fickle market, all words you have used to describe both the consumer and the reaction, and i think that spells and bled through to the fed comments yesterday. maria: so, i mean, do you want to sell into this rally as well, alli? what are you doing in terms of allocating capital in the face of all of this in. >> yeah, so, look, no, we are not traders, we are not hedge funds, we are long-term buyers. and the truth is that this range, which has been from about 380-4100 -- 3800-4100, is a range we want to be long-term buyers. we see the market ending higher this year, and we don't yet see a catalyst to break out of that range. but once we start to see inflation meaningfully if coming down, then we do see some sort of sustained and meaningful
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relief rally that gets us to the next level of the fundamental market. maria: okay. well, look, capital markets have been worried about what is the story with growth, david. we're standing by and going to get the second read of the first quarter gdp this morning, 8:30 a.m. eastern. it comes ahead of the are release of the personal income and spending data out tomorrow. but, look, we're in a contraction in the first quarter. the economy shrank 1.4%. if contraction. you do have pockets of strength in retail the, for sure. macy's is up 50, williams-sonoma up about 8 president if as well -- 8% as well. so what's your take on the macro story and how these rate hikes from the fed affect our money? >> yes. think a lot of the data that you're referring to, a lot of this is backward-looking, and it tells us where we've been. and i think americans right now, they're looking at what we're seeing right now, and they're
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trying to decide whether or not we're slipping into recession or if, in fact, we're already there. i think markets have already made that decision for us. markets are a great leading indicator, and they're telling us 6-9 months from now we're going to be in recession, and if stocks are still weak 6-9 months from now, then the recession's going to be deeper and harder than we thought. the fed is woefully behind the curve. i think we understand that. and they're telling us that they're data-dependent. it's like trying to drive a car looking in the rearview mirror. we need people who can think the forward, identify the problem, act quickly and decisively, and the fed isn't doing that. maria: okay. well, it's moving fast. now we've got wage hikes at apple. apple's raising wages, bank of america is raising wages. i'm just wondering when the layoffs start in this slowdown, because that's going to be the next point that a we get, companies coming out and saying we're going to have to cut because we can't keep up with
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all of these wage gains. >> the next if employment report is probably the last good one. they'll start to deteriorate after that. i would expect to go negative sometime later this year. maria: wow. all right, thank you all. alli, david, great to get your take. mark tepper, you're sticking with us all morning long. have a great memorial day weekend, everybody. much more ahead this morning. don't miss my interview with the chairman of ceo of bank of america. he's going to give us straight talk on what's happening with the consumer. we'll get into his company's growth and the mortgage market as well, an overview of the global climate agenda and the new rules coming out of the securities and exchange commission. then the, coloradan is here on whether or not donald trump will run again in 2024. she's out with a new book, and we'll talk about it. joining the conversation all morning long, dagen mcdowell and mark tepper. you're watching "mornings with maria" live on fox business. ♪
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maria: welcome back. well, a curfew in place in chicago. the mayor, lori light foot, changing the city's curfew timing now. the city council has voted to okay pushing the 11 p.m. curfew even earlier. anyone under the age of 18 is required to be off the streets by 10 p.m. parents are pushing back. >> this is not the answer. >> curfews don't work. what they do is they force people to go even further. all this does is it criminalizes children of color. maria: well, the council's vote also includes setting nightly restrictions on unaccompanied minors during weekend gatherings at millennial park. dagen, this is incredible. i didn't realize that they even had this curfew in place, and now they're making it earlier. >> it just exemplifies the
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desperation of the leaders in chicago where crime is out of control, where the police have been vilified over and over again. and they're at wit's end, quite frankly, trying to control this. it's a problem in new york city that -- because i come to work in the middle of the night, essentially, and there are gangs of people who are teenagers roaming the streets. and and sometimes they're just out partying and if sometimes they're not. and and i've witnessed it firsthand. whether it helps or not, let's hope it does help the people of chicago, but not likely. maria: mark. >> i think there's probably better ways to fight crime than to force people to stay indoors, but, you know, from a curfew standpoint if overall, look, i guess i'm not completely opposed
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to curfews. i need one myself, you know? i remember the saying when i was in my early 20s, nothing good happens after 2 a.m. now i think i turn into a pumpkin somewhere around midnight, so nothing good happens after that time. you just end up waking up with a nasty hangover the next day. again, to dagen's point, this really highlights just, you know, how incompetent leadership has been in a lot of these progressive cities where crime is running rampant. and the only solutions they have for the problem is to, essentially, enforce lockdowns, you know? whether they call it a lockdown or a curfew, you're locking people inside the homes. >> well, they're telling the parents -- maria: yeah. >> -- they're telling the participants they need to be -- parents they need to be better at managing their children, and they should tell them to stay at home. if you're 14 and you're out after 11:00 at night, you know, you're probably going to get in trouble. i was coming to work one
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morning, and the man driving me has a the tesla, and he said look at this. because tesla, if you blow the horn, it has cameras in the car, it and saves that recording. he said watch this, and it was a gang of teenagers dress all in black wearing masks, carrying 2x4s that were right near the building, right near work. where are they going? i don't think that you're up to any good if you're walking around in a group with 2x4s. maria: yeah. but i also, i mean, i agree, i question this move as a solution. it does seem like it's a desperate move. why not just refund the mis, put more police officers -- the police, put more police officers on the street rather than putting curfews in place? it just seems like that doesn't a appear -- >> well, in new york though they will arrest you. like, if you're -- you get arrested, you're right back out on the street. they won't even pick you up and
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arrest you because it doesn't really go anywhere. maria: yeah. another good point. no comment on the bail reform out of the chicago mayor. all right. stay with us, we'll be right back with more. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums] life is for living. let's partner for all of it. i'm so glad we did this. edward jones your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description.
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maria: we are learning more this morning of the shooter who killed 19 elementary school students, 2 teachers are dead after an 18-year-old gunman reportedly barricaded himself inside a fourth grade classroom in uvalde, texas. he was eventually killed himself during a shootout with an elite team of border patrol agents. joining me now is florida senator, senate homeland security and armed forces community member rick scott. senator, it's good to see you. thanks very much for being here. >> good morning, maria. maria: our heartbreaks, all of us. i know you were governor of florida during the 2018 parkland shooting, so you know the feeling well. you are calling on your colleagues in washington to pass school safety legislation. what should it look like, what changes should be made now that we recognize this is not stopping? >> first off, this is disgusting. i think all of us sort of internalize this. you think about your own familiful i've got grandkids in
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grade school, and i think about those 17 families that lost loved ones at parkland. i've even talked to some of them. what you've got to do is you've got to say, okay, what's the problem, and let's solve it. we put together a task force on mental illness, how do we share information, work with our law enforcement. we've gotted to do the same thing up here, but unfortunately democrats want to block it. we had a bill yesterday that would have basically codified a clearinghouse to give parents more information about the safety of their schools, and chuck schumer went to the floor and blocked it. we've tried to pass a bill that would have the secret service increase their efforts on school safety true the threat assessment center. the democrats block it. so it's like they know -- we've got to do some common sense things here and say what should we do that would prevent, whether it was uvalde or parkland or buffalo, let's focus on the things that would actually solve problems? don't do things because they sound good from a political
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sound bite. that's what we have to do. it's the important to every family in this country. it cannot happen again. maria: you're right. and it was just disgusting to see lawmakers and, you know, politicians use this moment as a way to push their ideologies and their gun policy proposals. i mean, beto o'rourke embarrassed himself yesterday. that was ridiculous. chuck schumer attacking the other side, republicans, for this. i mean, this is obviously something we all should come together and increase the security in schools, do something that hasn't been tried. meanwhile, there's the wide open border. i mean, this area, uvalde, just, what, how many miles away from the wide open border? and you've got 50,000 illegal migrants in mexico waiting just outside of the border right now to cross. but a federal judge has ruled to keep title 42 in place. i don't know if the
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administration is blowing off the law or keeping the title 42 in place, but axios is reporting there's at least 8,000 migrants trying to cross every day, and dhs tracking between 40-50,000 people wanting to cross. senator, i've had border agents myself tell me there's 7-8,000 people getting encountered every day. that doesn't even include the gotaways. there's 100,000 gotaways in the last six months. we don't know they're intention, we don't know where they're going, they're in the country. what's the solution here? >> the only solution we could have is joe biden needs to resign. i mean, he -- i don't get this. he wants an open border. secretary of homeland security mayorkas says, oh, the border's secure. complete, complete, complete lie. they have clearly made the decision we are going to have an open border. they don't care about that over 100,000 people died of drug overdoses, a lot of it from fentanyl a made in china coming across the southern border.
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they don't care there's terrorists coming across, they've caught 45 on the terror watch list since biden got elected. how many didn't we catch? they don't care that a national guard member died saving migrants coming across, and those migrants were bringing drugs. i don't get it. countries have borders, it's real simple. we need to finish the wall, get our security going, and we've got to make sure people want to come and live our life the way we want to live it, we want them here. i'm from an immigration state, but i don't want drugs, terrorists or criminals. i want people who want to live our dream. we have to fix our immigration system and secure our border today. maria: yeah. well, he's not. i mean, there's fentanyl coming across killing our citizens, 107,000 people dead because of overdose related to fentanyl. i mean, what is it going to take for this president to acknowledge the fentanyl threat? he's going to texas to visit the families, and it's only a few
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miles away from the border. do you think he will go to the southern border? >> no. by the way, think about -- i can tell you a story. a mom i talked to, her 21-year-old son came home from the air forbes he goes out with -- air force, he goes out with some friends, one guy gives him a xanax and the guy is dead. i'm on homeland security, we should be doing investigations right now to say why isn't our border secure, but, no, we won't do any investigations because that might embarrass the biden administration. this administration is not good for this country. maria: well, what really worries me is this tin ear that we see. i mean, the nonpartisan congressional budget office is forecasting that inflation is supposed to cool as economic growth slows later this year. but let's face it, i mean, we're talking about massive increases in all of the goods that we buy every day. cpi may be up 8.3%
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year-over-year, but the price of lettuce is up 13%, the price of fish is up 17%. the price of an airline ticket year are over year up 33%. so americans are, you know, seeing their wages burn up as a result of this inflation in america, and yet we're not seeing any pivot whatsoever from this administration. so it almost feels like they're ignoring the fact that their policy has stoked some of the most important price hikes. look at eggs. eggs up 22.6% year-over-year. so you can't really say inflation is running at 8% when you've got the stuff that we buy every day up in the double digits. >> and it's like who do they think they're helping? maybe rich people are going to keep getting richer because their assets go up, but poor families, people on fixed income, their wages don't stay up. who's it hurting? it's hurting the poorest families in this country. it's like my mom growing up. i lived in public housing.
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she struggled. i remember, to put gas in the car, to put food on the table. that's what's going on. people are having to go to food banks that have never gone ever. this is wrong, what the biden administration is doing and democrats. maria: yeah. or do i go to the doctor. making such a decision, do i put food on the table or deal with a medical issue. it's extraordinary. senator, thanks very much. we'll be watching your moveses, senator rick scott in florida this morning -- in d.c. this morning, pardon me. all right, we will take a short break and come right back. we're live in davos. we've got an interview with brian moynihan, ceo of bank of america. back in a minute. thankfully, voya provides comprehensive solutions, and shows me how to get the most out of my workplace benefits. what's the wi-fi password again? here... you... go. cool, thanks. no problem. voya helps me feel like i got it all under control.
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fortitude gold producing high grade low cost gold yeah... oh. donin nevada usa. at! gold investment delivering monthly cash, dividends and substantial yield. fortitude gold. maria: lots of worries for the potential of a recession u.s. as well as the globe. we are waiting on the latest numbers in terms of gdp. we know we're expecting a contraction from the first quarter. let's find out from the large bank in america, and that is
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where we find brian moynihan in davos this week for the world of economic -- world economic forum. brian, good to see you. what's your take on this? you had a great first quarter, we know, but we want to know if anything has changed in terms of what you told us a few months ago and the strength of the consumer. how would you assess business today? >> it's good to see you again, maria, and wish you were here in davos. it's beautiful, as you can see behind me. let's go back to at the first quarter we talked about the strength9 of the consumer, we talked about the view view that we didn't see recession. our current, our research team currently basically has this year about 2.5% growth, year about 1.5% more or less, and is they don't really have any quarters that are negative. it slows down. they will say there's a 1 in 3 chance of a recession, that's what they published. the reality is if it were two years ago, they'd say 1 in 5 chance, but they really think it's going to be a soft landing and although -- and not quite
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get to recession, although it will slow. what we see so far in the month of may the spending is up double digits from last may and even higher than that because last may people paid taxes, this may they didn't. the spending on services is way up. you see some of the retailers see a little wit more mitigation as people can get out and travel. the money in the customer accounts for the end of the month of april was up over march, again, very strong especially in the lower accounts. interestingly enough, the people who get direct goes kit -- deposits, we're seeing their wages up 8% year-over-year, and they have lots of borrowing par. so the u.s. consumer's in very good shape. and it makes the fed's job tougher because if you think about wage growth spin nation and wages and the tightness of the labor markets, that's still there, and they've got to slow that down, and that's the tension that'll go through the system over the next 4-6 quarters. maria: and you have been able to
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grow deposits faster than peers during the pandemic, and you said that last time in terms of the health of the consumer, they've got money in the bank and money to spend. you mentioned this tight labor market. you are raising wages. you announced this week that the a starting wages 21-24 an hour. you've been a leader on this wage issue. how are you doing this while also keeping expenses down? >> well, with we made a commitment several years ago to move up a dollar a year in 20 the 20-2025, so we've just accelerated that this year, frankly, because of the market and moving forward. importantly, last week we also said to our employees under $100,000, basically a raise depending on the length of service, rewarding longevity, rewarding the career mindset we want. we have to have the best teammates to serve our customers, we are reward them well. the realities are we're hiring 7,000 people a quarter. we want to get those people to
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have great careers in our company, and so that's why we're doing this. and so -- and it pays off to the shareholder because, frankly, our expenses year-over-year, we told people they're relatively flat to last year, and we still think that's true. maria: yeah, i thought that was interesting that you expect this to be flat this year, brian. there's this tech revolution that is certainly happening across the industry but certainly at b bofa. talk to us about erica, about zelle transaction as increasing since the pandemic and digital usage also increasing. give us a sense of the product lines digitally and what you're seeing in terms of customer behaviors changing the way they bank and doing it digitally. >> yeah. so if you -- one question is how can you keep expenses flat. well, that's the investment we made beginning in 2010 the, $3.5 billion a year technology enablement and also rearranging
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the physical plant. high touch and high-tech, the branches are different, redone, remodels, so you're making all this physical plant investment, technology investments, but the reality is what's changed a lot during the pandemic is the growth rate of things like zelle kicked up out of necessity, right? but the reality is they stayed strong. now, the real reality was through the other parts of the company, we digitized faster than we thought, the adoption rates now move from 50s to 80s of customers using the digital tools we built which was happening slowly but surely, but just exploded because, frankly, there was no other way to serve the customers. we have a great digital interface with our customers to the company, a great ability to apply and send out research and information through those digital means, sign patients digitally. it's just -- papers digitally. it's just really good stuff.
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it's 12 years, now 13 years' straight investment of $3.5 billion a year of technology enablement. we run the company with 208,000 people, when i became ceo, we had 280,000. maria: wow. >> there's more transactions, there's more comp plexty, we -- complexity. we had 3,000 people in cybersecurity. think of all the changes, yet we were able to get more efficient because we spent money and helped the company better. maria: do you expect the ownerring leverage to be even improving this year and into next year? >> that's what the shareholder expect to happen, yes. so we hit a low in expenses before the a pandemic and this dynamic change, and the issue was we told people we were going to start to grow, the pandemic came and changed everything. we're growing at sort of a 1% per year, sort of the idea is we've not to grow revenues, you
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know, a little bit faster happen than the economy, and the economy's got to work through this transition, but we'll grow faster than the economy, and and the operating leverage embedded in that produces a nice pretax profit and nice if return for our shareholders. i want to invest in our employees and programs and employee benefits and mental wellness because we want our teammates to be in great shape to serve the client. maria: that is just fantastic. it also does something huge for the employee base because they've got more confidence in the company and leadership with all of it you're providing. you've also been derisking for a decade now. talk to us about how much more there is. you've taken, what, subprime consumer loans from 20-25% down to only 4%. these are mostly mull by-products. where is the risk right now, and do you worry that 5% mortgage rates is pricing people out of the market? we're looking at this housing market that is just soaring in price.
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mortgage rates going higher. what can you tell us about the mortgage business with 5% mortgage rates? >> well, so let's -- a couple things embedded there. we've gotten rid of a lot of that really by 2015-16. since then we've just been concentrating on organically growing this company. there are, i don't know, 50-60 things that we the divested and closed down. we've run the business pretty consistent since then. we've grown commercial loans and consumer loans and our trading business we increased by 20%, 30% to serve the trading customers better. all that's gone very well. now, the reality is on the consumer side the credit quality, in addition to them having money accounts and earning more money and having access to credit, the credit quality's as good as it's ever been, and that's the underwriting we've been doing year after year after year. even though like you said we don't have a lot of subprime credit, usually that's in transition, we don't originate it, we're very good at it. now to the mortgages, 18-20%
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year year-over-year house price growth is not the place we want to be. the idea of the fed slowing down the new purchase volumes and price appreciation is part of the way they get it under control. the good news is that sort of the 130 odd million american households, there's only 60, 70 million mortgages, so it's a red question which is actually a more serious question for them. the other a half of the people are locked into low rates, so you've seen e finances fall. all these people locked in, a heck of a long-term mortgage at 3%, that is very good for them especially as rates rise and their that investments and yields on other things exceed that. so, yes, this will slow down the housing market because that's what it's supposed to do. maria: that's exactly what the federal reserve is trying to do. brian moynihan, chairman and ceo of bank of america, continues. we have more from my interview in the next hour. hear his reaction to the securities and exchange commission's planned new rules
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and requirements for disclosures about environmental funds. we will talk about the new the rules for corporations from the sec with brian moynihan coming up. first, though, will former president donald trump run again in 2024? his former senior counselor coloradan is here to weigh in on that -- kellyanne conway and her new book. you're watching "mornings with maria" live on fox business. fec. this is how it feels to have a dedicated fidelity advisor looking at your full financial picture. this is what it's like to have a comprehensive wealth plan with tax-smart investing strategies designed to help you keep more of what you earn. and set aside more for things like healthcare, or whatever comes down the road. this is "the planning effect" from fidelity. your record label is taking off. but so is your sound engineer.
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maria: welcome back. well, the former clinton campaign lawyer, michael sussmann, trial continues today, and michael sussman may take the stand himself in the durham probe but only under, certain conditions, his lawyers say. his lawyers are asking the judge to keep the government from asking questions related to pre-indictment negotiations. sussmann denying charges that he lied to the fbi. joining me right now is former senior counsel to president trump kellyanne conway out with a new book called "here's the deal: a memoir." congrats on the new book and thanks so much for being here. >> thanks, maria. you're going to love that book because it takes a -- talks a lot about taking on the old boys' and new boys' clubs and succeeding in a male-dominated industry, and you're the original one who did that.
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martha: thanks for -- maria: thanks for saying that. i am enjoying it very much, and i'm up to the point where you're on stage between steve bannon and others, and you're there in your alexander mcqueen dress and standing tall as the president gives you and the others credit for getting him there, and the crowd is going nuts chanting usa, usa. tell me how that moment was for you. you just said, you know, you did all of this, you know, you made sure to get on stage in a sea of suits with all of these men in industry. that's got to be tough. >> it was indescribably euphoric at that moment, maria, but i think donald trump was the wish full fulfillment. i want somebody to be president who has a ton of experience but never worked in washington, no political ties. you're, like, well, who's that going to be? it was a very well known businessman and job creator, you
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knew him from tv, they knew the him as donald trump, the real estate developer. and then he went out there and he went to rally after rally, nook and cranny in this country. and one thing the mainstream media missed about the 2016 campaign that i write about in the book, maria, is how many local interviews donald trump provided. and others who were his surrogates. they missed that because they were only giving national coverage. the local interviews would be pretty fair in their coverage. they would report just the facts, man. donald trump came to town. donald trump said he's going to cut your taxes instead of all these stories, donald trump takes the wings off a butterfly, russia, russia, russia. so that was very important. at that moment i was 49 years old. donald trump elevated me in a way that romney, mccain, no one named bush, no republican candidate had ever done, to make me campaign manager, and we made history together. but it's donald trump who put me there, and i think this is important because i was
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basically an outsider. you had all these fools, these grift ors and shifters who went on to run the lincoln project. they had failed upward for years, always gave each other a seat on the gravy train, exclude me, and i have to thank them publicly for that because it forced me to look at corporate clients like major league baseball, like american express, ladies' home "ladies' home journal." i worked for other nonprofits and other fortune 10 and 500 companies because i went out to discern not just what voting america thinks, but what the rest of america thinks, and i was ready for that moment when donald trump asked me to be campaign manager because i'd been studying at a cultural anthropologist the way america was spending its money, listening in focus groups, to polling and to the recommendations. but, you know, i'm glad you mentioned the hilton, my book
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tour, thanks for telling your audience, right before you see us on the stage, huma abedin had called my cell phone, and she called with secretary clinton on her phone to talk to mr. trump and concede the election. and i handed him the phone, and i said, mr. president-elect. it was 2:30 a.m., i have a screen shot in my book. i turned to vice president pence and said make sure hillary actually concedes. and she did the next day, but she hasn't really since. maria: unbelievable. oh, god, kellyanne, you're mentioning so many important things, particularly the fact that president trump knew what was important to voters because he was out doing those local interviews. i feel that this administration has such a tin ear in terms of what's most important to voters. so tell us, will president trump run again in 2024? >> he'd like to. i seek with him frequently, and he certainly would like to because he knows there's unfinished buzz. he sees what -- business. he sees what he could have done
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the second term versus all the unraveling of the policies. donald trump's like the rest of america. he's within that majority of all the polls, republicans, independents and a growing number of democrats and biden voters, march -- maria, who say enough is enough. putin in russia, the immigration issue. no reason for manufacturing for these trade deals and enforcing them and making them really work for -- i think what donald trump did, he was great for the job creator, the job seeker but also the job holder which is the majority of americans. maria, unlike when our grandfathers had a job, people have two jobs in the household. when did it not become enough? there's unfinished business. if he decides he does or doesn't, whoever runs has to be an america first candidate and reclaim those policies. maria: kellyanne, congrats on the book. kellyanne conway, join us as we
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. maria: good thursday morning. thanks so much for joining us. i'm maria bartiromo. it is thursday, may 26 top stories 8:00 a.m. on the button east coast, recession woerz fed second reading first quarter gdp out in 30 minutes' time it is expected to confirm a contraction, in the first quarter, with decline 1.3%,
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two quarters of contraction, of course, is a recession. ahead of data fighters indicating a strong rally at start of trading this morning, we just got strong earnings news, and that is boochting stocks up 194 s&p 500 up 23, nasdaq higher by 29, we got earnings from macy's dollar general dollar tree beating both on earnings per share and revenue, macy's lifting its guidance for the year sending stock up better than 14% right now stocks rallied yesterday as well on positive signs about consumer dow industrials higher nasdaq rallied off lowest since november 2020 dow up 191 nasdaq up 170, at 4:00 on wall street, the 10-year treasury yield, is looking like this, after the federal reserve minutes came out yesterday, we are back up, with a level 2.756% on 10-year federal reserve officials virtually with unanimous on 50 basis point hikes to come in
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june, july and possibly september, as fed vows to fight 40 year inflation, another look at inflation tomorrow, we get april core pce expected to come in up 4.9%, year-over-year that is a federal reserve preferred metric oil prices inflationary brent an crude above 1211, brent 114.72 up two-thirds of one percent the price of crude oil 111.13, up 3/4 of a percent right now, as prices at the pump hit record highs trim amendment reporting gallon of regular gasoline sitting at 4.60 per gallon, today nation's largest bank weighs in on new consumer attitude climate regulations from securities and exchange commission i got first reaction ebb from sec new rules from brian moynihan watch.
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>> -- somebody else, three if i get mine down that is good, so we're helping big business opportunity but gt to be mindful we got to have energy for all on the way there rich countries poor countries oil companies look what -- they are doing in north dakota, to zero building pipeline, look what is happened in texas carbon capture in technologies coming on will help do with a what we need to do for climate thats very consistent with having a -- a strong energy position. maria: what are the costs of this new rulemaking from sec join us for more from the ceo of bank of america at 8:15 a.m. eastern as brian takes on sec rules, the ceo is here andy for exclusive talking about the health of the consumer face of inflation, we are increasingly companies like apple among others
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raising wages again. european markets this morning higher global markets reacting to yesterday's federal reserve minutes, from the may meeting, the eurozone stocks, are higher this morning, and in asia it was more mixed story shanghai composite, was higher, but others were lower fractionally, as you can see, mixed story internationally this morning, we've got more from the 50th annual world economic you forum this morning live in davos, switzerland back to davos momentarily "mornings with maria" is live right now. . . >> futures higher take a look, we are at highs of the morning right now, following the release of the federal reserve minutes yesterday, and very strong earnings this morning, macy's actually missed guidance for the year, dow industrials right now up 200 s&p up 23, nasdaq higher by 3170ed signaled will rile raise quicker than market expects to combat surging inflation new word added to
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analysis yesterday, the federal reserve may have to go restrictive, restrictive policy tamp down inflation yields this morning really flat we are looking at 10-year 2.747% back-and-forth, up and down, by a few basis points throughout this morning this morning jo i think me right now "the wall street journal" editor at large host "wall street journal" at large jerry bakeer, joining the conversation dagen mcdowell, mark tepper thanks very much for joining the conversation good to see you give your sense, of what you heard from the federal reserve, yesterday, and the talk on the ground in davos in terms of inflation that is now global. >> fed missed the boat we know that they were very, very late recognizing inflation we were having kept dismissing last year now playing catch-up we saw in minutes yesterday going to continue to push rates up by half a percentage point at
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a time, there is division among economists how far they have to go will go basically able to get rates up to 3, then maybe be able to hold it there, i have to say maria, my view a lot of view i economists i seek to in davos around world is skeptical this is real problem deeply embedded we have more number feds favorite indicator pce deflator around 5% that is way higher, funds rate the moment needed to get to three still negative rates nobody on top of inflation -- in order to get on top much, much further positive rates i think, i think the rates are going to push, rates higher, that is going to have big impact on markets, i don't think that is probably discounted yet i think in for considerable for sometime to come. >> i was surprised at language, yesterday from the federal reserve, basically saying we're in unanimous agreement of 50 basis points
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in june, july debate whether or not we see half a point hike in september. and the word restrictive being used might have to go restrictive i am wonderevering when do layoffs start can should he slow it down would you do sending in recession. >> they seem to think kind of pull off marriage in forecasts funds rate going up by 3, 3 1/2% they think unemployment essentially stay the the same around 4%, you know again extremely rare in history of he monetary policy when you have inflation of sort we've got right now we haven't had had this for o 40 years the fed needs to be really aggressive when it is aggressive tends to push economy to recession, most comparable time we have early 1980s, volcker pushed interest rates up aggressively result very deep very painful
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recession, higher unemployment i hope we all hope that won't happen, but the stream like hooe where we are headed. >> we have urgency in minutes. >> federal reserve never lowered inflation to where it is tying to take it right now. in the last 80 years, without sending the economy into a recession. unfortunately, for jay powell and company you have democrats in congress who clearly are even though "build back better" is dead,s you know that they are going to try and push more payments to individuals to help offset the pain of inflation. which causes inflation. you still have the student of the moratorium on making student loan payments runs until end of august. that is inflationary.
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. >> right, exactly look there is going to be continuing pressure by the way, as the economy slows it does slow we may already had a negative first quarter, we may be having another getting -- weaker through rest of the-year guarantee pressure from democrats in congress to spend more money that is the problem right now exactly as you say we are in unusual situation here because, normally it is today is when economy slows, the federal reserve cuts interest rates to stimulate the demand the federal government can cut taxes increase spending we are in worst possible position right now because, we have inflation so that makes it extremely hard for fed all the all the congress to spend money without more inflationary, and at the same time, the fed actually has to get on top of inflation by raising interest rates, that is why 2 bind we are in so unusual so challenging. maria: yeah, by the way, we are not hearing talk about cutting taxes from federal government for sure in fact
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the opposite, the -- and i don't think "build back better" is dead because they are trying to get portions of it in with any policy they vote on trying to get portions in here portions in there, playing hard to get as much stimulus. >> maria if we have a recession late this year or rl next year i think streamly likely if republicans take control of congress in significant way which i think also streamly likely there is a conversation how to stimulate the economy i think pressure from republican controlled congress to cut taxes, then question is whether or not president biden, will then be a lame-duck president when he wants to go along with that the difficulty there adding to deficit inflationary, little policymakers can do without making either inflation worse or the out output worse demand worst making recession deeper. >> have all good points gerry
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great to see you. thanks very much for being here. >> you, too, thank you for having me. >> gerry baker davos, quick break coming up nation's largest bank about the xhoou client rules from securities and exchange commission i got reaction from brian moynihan on sec rules ceo of fat brands here, coming up 8:40 a.m. eastern you are watching "mornings with maria" live on fox business. . [ marcia ] my dental health was not good. i had periodontal disease, and i just didn't feel well. but then i found clearchoice. [ forde ] replacing marcia's teeth with dental implants at clearchoice was going to afford her
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worker's comp can crush a small business. every year it would jump 5, 10, 15, 20 percent - even though there was never any claims. and that's where i was struggling as a growing business. i'm very happy that i moved over to pie for my worker's comp. from start to finish, it was extremely easy. they quickly came back to me with a plan that was affordable for me so that i could grow my company while not breaking the bank. ask your agent, or get a quote at . maria: welcome back. the securities and exchange commission proposing new climate rules and disclosures that will put strain and new costs on companies. i spoke about this with bank of america chairman ceo brian moynihan from davos listen to this. >> i don't know if the secures
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securities is going to be able to punish through climate rules, focusing companies to disclose the climate risks not just of the company but their customers and affiliate, and their clients, what kind of a regulatory environment do you expect given this climate agenda, seems to permeate every agency, in this administration. >> so i think, you know at the end of the day, if we at world economic forum international business council developed metrics that conclude disclosure on environment, governments that meet sustainable development goals stakeholder capitalism treat teammates shareholders well communities well, these are you know, decades many decades old, hundreds of unifies old themes, so environment part of that we have to have a just interestings oil and gas clients help them make transition because they are
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going to be expertise intelligence to do it meanwhile, major investor in the green economy, 250 billion dollars last year loans to clients our clients drive this our job to do that disclosure, we put on the table, at 150 large companies around the world dead or aliving disclosing it key for people to understand, that they want to see evidence our company, it is harder but i would like to do is get the focused on things to control supply chain, your our employee travel how we offset that opposed to things may not be able to control made that clear, i mean not, in terms of the world at large very clear focus on everybody's one and two if someone won else three make it simply views are may not get that if reality is my direct is somebody else, three if i get mine down good
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helping big business opportunity but got to be mind full energy for all on the way there rich countries poor countries oil companies new energy companies, think look what they are doing in north dakota, zero, building pipeline, capture storage look at texas carbon capture story technologies coming on will help do what we need to do from a climate that are very consistent with having a strong energy position. maria: some of our viewers are your customers small businesses, and some are drillers and in the fossil fuel business want to make sure bofa is going to bank them with pressure to get away from fossil fuels. >> we had a lot of i get letters from one side saying, doing wrong thing other side saying, doing wrong thing means you are probably doing the right thing, our job to serve our customers help make just transition at the end of
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the day, it we can get this done because capitalism is key, we have the money we have innovation we have talent, resources, but we got to aim, capitalism to solve issues, while making money for shareholders we can perpetuate it once you give it away gone government running deserts don't have money capitalism what we have to remember. maria: we have the deepest, most liquid markets we have got that as well. maria: we've got more with brian moynihan chairman ceo of bank of america, but dagen i want to get your thoughts on this the securities and exchange commission acting more like the eta with climate rules, and it is putting a strain on companies not just for all of the new regulations but the cost of regulations, as the whole country is faced with this inflation, and pressure to raise rates, the sec puts more pressure on companies, with climate disclosure rules.
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>> right this is how insidious government can be when where not in form of regulation or edict a rule by fiat out of executive branch just the -- the layers of regulation throughout government agencies. and look no further than really the federal reserve, remember all the talk to you about know, the focus on climate change, and global warming, but so you have the dual mandate full employment, an inflation, under control, when you take your eye off that ball, what do you get? you get the worst inflation that we've had in at least 40 years, that they will struggle for years to come, to bring under control. so, james freeman said if this administration wanted to do anything right now, they could pivot toward less regulation and deregulation, but they are so dug in into their
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ideology -- failed to do that. maria: a brushstroke mark everybody has the same rules but not everybody has the resources that bank of america has, to have the lawyers and the extra personnel to deal with the cost of this small guys getting -- mark: absolutely one thing to incentivize people do right thing in this case apparently climate change another to penalize companies, via higher costs for using fossil fuels we all are using everything we use day-to-day comes from fossil fuels. maria: yeah, all right more with bank of america ceo brian moynihan tomorrow right here. we'll be back stay with us. . if you invest in the s&p 500
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>>. >> maria: welcome back. will russia is now claiming that it is open to easing its block aide of ukrainian ports if the sanctions are lifted on moscow could increase grain imports helping relieve rising food prices, and lower chances for a potential food shortage. ukraine one of the he world's larget exporters of wheat and corn joining me florida
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congressman house budget committee small business committee member byron donalds great to see you. thanks very much for being here we've been workforcing world economic forum all morning all week one topic possible food crisis looming, talk of a possible sugar shorj, you thought couldn't get worse first 40-year highs in inflation. of frlg we buy every day they ever we've got,able inability to feed our babies with baby formula shortage now potential for a famine? ? yeah, this is not good news maria at all, not just in america but across the globe with an of the things we've been concerned with with respect to the russian invasion into ukraine what is going to the happen with fertilizer stock, farming across the globe we knew this was going to be an impact some early data suggesting going to be an impact, an, of course, here we go, what makes this
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worse that here in the united states if we had a robust enlarge apparatus not just drilling for oil that is important here at home but, also, having necessary refining capacity, we don't have in united states. so that not just about getting gasoline at gas pumps but also all the derivative products from oil petroleum, one fertilizer because a fertilizer shortage is food shortages going to mean a lot of people, you know, changing policy, changing ideas of how they feel about oil and natural gas, try to get us through this current crisis. maria: i mean you make exactly the right point you've got an op-ed out, on the hill, titled "soaring diesel prices spelled dad news for america" you right our economy against on fuel type without diesel
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america's economy collapses what i have been saying over and over again bad policy results in bad outcomes, diesel prices are 5.53 a gallon day regular gasoline at another all-time high. >> listen you are absolutely correct, it is disastrous policy one of the things don't understand it is hard to get some petroleum products to the refineries in order to create necessary conditions to have diesel prices be stable, or even fall. so we -- in united states can't the way maybe a decade, 15 years ago number one because of bad economic energy policy from democrats specifically in blue states because their state departments environmental protection have stopped refineries from being able to be main attend altogether what happens refineries aren't there a the other thing we have like i said, there is so
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much more demand for petroleum derivatives but, contact lenses wireless ear buzzing cell phone tv's clothes, anything any product you want to talk about a derivative of oil, so the demand for petroleum products is massively increased, our refining capacity in the united states actually down from where it used to be faulty leadership happening quite a long time part of obama administration we have to get serious about refining capacity in the united states. >> it is unfortunately leading to potential recession we are waiting on economic data this morning, about a minute, we ares going to get gdp out expected to show a contraction, of 1.3%, quickly on sussmann's trial may take the stand today what have we learned in durham probe from your standpoint. >> what i learned pretty much already knew coming out in
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court of law that dnc has been corrupt, hillary clinton we know she have is corrupt. but also echelons fbi, when you have fbi agents trying to request to get more background information on alfa-bank, being denied by people in upper echelons fbi a serious problem with respect to the to credible of the fbi not just time period for going forward what else echelons of fbi denying addition information on serious problem members of congress have responsibility to restore that agency to former greatness. >> you are right you are spot-on, the fbi is complicit we want to seeing accountability they procured fisa warrants on sitting president his officials imagine that if they can spy on a sitting president of the
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united states, what can they do to the rest of us? >> you are absolutely right, if they can go after donald trump let me back up for all people, may not be fans of donald trump other side of the political aisle this is about donald trump also not about donald trump you are absolutely right, they can do that to him they can do it to anyone, so people need to get off their political high horses on this we have to get back to credit i believe institutions in the united states, that do their job are not politicized, protect all americans serve all americans. that is what the really. >> is what i say, it is what i is a i all the time this is not about donald trump this is about fairness and we appreciate you joining us this morning, congressman we will watch all your efforts, thanks very much, for joining us this morning the first quarter gdp right to gerri willis. gerri: good morning worse than expected down 1.5% when it comes to u.s. gdp, this is the second estimate, and the
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estimate of the country broadest growth measures we are seeing down 1.5%, estimate down 1.4%, pardon me expectation down 1.3%, the first report down 1.4% this is notable we came out of fourth quarter growth was 7% so a huge change today's number negative, not seeing huge impact quite yet in dow futures, but i have to tell you this is something of a surprise when it comes to gdp, we were watching numbers very closely, because two executive quarters negative gdp growth sxelz recession critically important we've had negative economic data, the big question, is whether the data gets negative enough, to slow the economy and enough, that we can wringing out 40-year highs on inflation, but the numbers again in case just tuning in down 1.5% we had
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expected down 1.3%, for gdp. this is second estimate and we will be watching numbers all morning, back to you maria. maria: all right. thanks very much gerri willis markets up this morning on federal reserve minutes on the idea that the fed is going to be vigilant, in terms of countering 40-year high inflation, mark this number is worse than expected, we thought it was a contraction, of 1.4% in initial reading now 1.5% contraction. what happened in second quarter. mark: things are getting worse we are either in a recession right now in my opinion or headed for on. >> that is right. personally i think going to be longer deeper than a lot of wall street is expecting right now, maria you have been asking all morning to various guests when will layoffs begin the recession playbook for business number one cut discretionary spending look at snapchat look at facebook, number two, stop hiring look
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at nvidia last night think about it 11 1/2 million job options those have to come down, then obviously, that is from when layoffs begin. maria: yeah, well we will see markets up, 156 on dow stay with us. we'll be right back. . another crazy day? of course—you're a cio in 2022. but you're ready. because you've got the next generation in global secure networking from comcast business.
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>>. >> gdp out worse than expected second read for at first quarter gdp coming in below examination contraction 1.5% first quarter joining me bright now 240 to react o former council economic advisers acting chairman, tyler goodspeed reaction to contraction 1 1/2% first quarter gdp. >> well, good to be with you, maria, it is not entirely
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unexpected from my point of view caused we have volatile components like the change in private inventories that is most volatile components of the most volatile component of gdp so it is unpleasant but i think in terms of of this year, the inertial better measurement consumer spending business investment in positive territory i expect that to continue. so. i think we avoid a recession, technical recession in 2022 very concerned when we look beyond 2022 to 2023 maria: tyler not what we call it right we could call it whatever we want it is way people feel right now going to the grocery stores paying 20% higher for eggs than a year ago paying 17% higher for bacon than a year ago, paying 33% higher for the price of airline ticket than a year ago.
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so, i mean, clearly, wages going up, you've got a handful companies raising wages not doing much when you go to the grocery store eaten up of by all this inflation. >> yes, so maria you and i have been talking for a long time now about declining real wages declining inflation adjusted wages talking about this over a year ago. and the one silver lining had been that that was on average, where in aggregate real compensation overall was going up because, of hiring, so more people working even though on average they were earning less overall compensation greater that changed in recent months now in recent months real compensation of workers overall has declined, because nominal wage gains eaten up by inflation i think we have strange gap, between consumer spending has remained resilient, and swaz
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of consumer sentiment at levels we simply haven't seen since great recession the only thing that has been propping up that staining that consumer resilience that resilience consumer spending has been the buffer of accumulated savings, as that starts to dissipate price pressures continue to build tough to see that buffer remaining. maria: brian moynihan was with us a few minutes ago talking about the fact people have more money in accounts in savings accounts, in this last few months than earlier. but look. can you explain to me, this reaction that we're seeing in markets yesterday we heard from federal reserve, look at treasury yields right now i mean we are seeing treasury yields pull back yesterday we heard from federal reserve yesterday in may minutes, and fed said, pretty much that it was unanimous on the fact they need 50 basis points hike coming in months of june, july, potentially september, they also used the word
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restrictive saying that this 40-year high inflation, may require restrictive policy, yet we got dow industrials up 175 points, you've got 10-year down 7/10 of a basis point. >> i think it is baked in that as you noted we are going to get 50 in june and july, the real question is what happens in september, and you know we had some whispers from are bostick maybe we have a pause wait and see, come autumn comments from bullard last week maybe cuts in 2023, the fed in 1960s 19 0 pods tried to get a handle on inflation the time to get under control until paul volcker every single time a pause or u-turn median time from start of
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tightening cycle to pause or u-turn was 1/2 months a various runs for u-turn and pause because unemployment was ticking up, it was because maltreatment weren't finings inning particularly well inflation come down not back to nominee levels if history is a guide i think markets are probably looking at the music thinking maybe a pause u-turn later this year. >> that is what stephanie pomboy has been staying. dagen: i was a going to answer your question that treasury market is focused on an impending recession. while the -- equity investors are still flush with cash because again, theed fed hasn't really started to destroy money yet with the balance sheet reduction can we expect anything out of biden administration that will help
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the country in terms of getting us back on track, and even i mentioned earlier even deregulation or alleviating the regulations that have been put in place? >> i am not holding my braeth there are things they could do they could and an on domestic energy production still a ton they could do, in terms of facing domestic energy production, historically, there was a very, very tight correlation between if price of west tez intermediary crude that broke down 2021 why would you be drilling or installing new domestic energy production capacity in the united states given that regulatory burden? i would be signaling, certainty signaling to markets we will extend some of the business tax provisions of the 2017 tax law, i would be signaling to households that
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we will make some of those marginal personal reductions in 2017 permanent incentive higher labor force participation all things administration could do today. but, as i said i am not holding my breath that we're going to see any of those actions. maria: definitely do not hold your breath on that one tyler thank you very much for being here, on heels of the gdp, worse than expected yet markets this morning at highs of the morning dow industrials right now up 210 points, we will see you soon we are going to continue zeroing in on retail when we speak with ceo of fat brands spoopg up a nestlé franchise ceo will join me on all his acquisitions to talk about the latest acquisition what he is expecting in have terms of growth the ceo of fat brands next in this conclusive you are watching "mornings with maria" live on fox business. .
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. maria: welcome back. fat brands again expanding its portfolio this time the global restaurant franchise to acquire approximately 85 nestlé tollhouse café by chip stores in the united states, stores rebranded as great american cookies existing
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franchise fat brands already owns in exclusive is ceo fat brands andy wiederhorn great to have you thanks very much for being here con congrats on another acquisition tell us what you are looking to do here at fat brands with acquisitions, and how you think company looks different next two years. >> thank you for having me maria, this is our latest acquisition but we kind of billion dollars buying brands add nine different restaurant blandz with johnny rockets roundtable pizza, all kind of brands during pandemic great opportunities for us to buy, add to fat brands portfolio of those brands we represent 2360 restaurants most which franchise locations across the country around the world a great opportunity for us to add to portfolio cross shelve different brands to franchise partners. >> this is a new paradigm do you think for fat brands
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should we be valuing the company differently? looking at this expand portfolio that you have? >> yeah absolutely this is grown by 600% year and lav johnny rockets, the food chain in december an opportunity to aggregate brands integrate biosystem operate at categories like qsr, caution dining, so an opportunity for us to onboard to system this year, 2022 is about integration swallowing digesting showing how strong in an is for people to own businesses grow restaurant business coming back from awful 2020. >> i mean look you are talking about some very impressive growth numbers even in face of
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headwinds you and entire industry face from, you know, bad weather, omicron, talking 40-year high inflation supply chain pressures as well have you been able to pass all of that on to consumer and raise prices? unfortunately restaurant operators had to take price to maintain markets we have seen the 6, 7% increases in price last quarter, two quarters that has been necessary for the restaurant to make it make a dollar here and keep doors open unfortunate, the consumers have been resilient accepting to higher prices even though frustrated by it, comp numbers coming up very, very strong demand for customers to get out into
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restaurants, when ever they can plus all kinds of increases in delivery, to go we've seen a strong demand by the customer. >> what about same-store sales what can you tell us? >> that is -- same-store sales up sports bar same-store sales up 20% over 2021 crazy growth numbers, in a regulationry inflationary environment customers flocking to restaurants zauny rockets up high single digits cookie brands up , 8% seeing all types not all inflation precise adjustment more traffic in the restaurants people want to get back out. >> day what are you expecting as federal reserve continues this string of rate hikes does that get even more pressure for you we got ppi, producer prices up 11% year-over-year i know more than that depending on what we're talking about. >> it is really hard in the
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restaurant business to continue to take price and yet no choice i am hopeful that we will see things calm down here as we get into q3, q4, maybe a pause in this rate shock that we're going through, but, you know, it is what it is, and restaurant operators have to make their margins, thanks very much watching the growth story develop andy wiederhorn joining us fat brands take care thank you, sir. we will be right back live from davos when we come back. . ...
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maria: welcome back. well the world economic forum wrapping up in davos switzerland , today, russia, the global economic crisis inuring, oil taking a focus this week, great coverage all week, live in davos, once again, kelly? >> good morning, maria. well, this marked the first time that davos was back in-person in two years, and the world leaders gathered to discuss theoretical long term progress but this year had a unique urgency. every conversation had with the knowledge that the world is at a turningpoint. now of course the war in ukraine and security in general a prevailing theme this year, not olny for the horrors experienced by the country's people but the potential recession is a big one, feelings that davos were mixed many brushed off the prospect of a full blown recession so economically fragile countries are deeply at risk and energy was also a big
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theme. the question of balancing goals was a raging energy crisis dominating nearly every conversation with how big of an effect it has on inflation. the director telling me that the world will need to take a step back from its climate goals to dig out of this. finally the growing global food shortage was one of the hottest topics causing a looming humanitarian crisis. european commission president calling russia's assault on the ukrainian breadbasket blackmail in exchange for political support. if the kremlin keeps blocking ports nearly every nation will get drawn into this. maria i thought it was only fitting we end our coverage here this is where russia exhibits normally in davos. this year the ukrainians transformed it into the russian war crimes house to force the elite here to grapple with what's going on. now everyone here is saying global cooperation is the only way to get ourselves out of this but i'll tell you, my take away from my conversations is that these challenges are so intertwined. energy, security, economic prosperity, that building global consensus is nearly impossible. so coming out of davos, maria,
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the conversations have been had but the big question is who compromises and on what? maria: yeah, great point. kelly, great coverage all week thanks very much kelly o'grady on the ground in davos, dagen mcdowell, mark tepper its been great talking with you this morning, and we will see you soon. real quick, final comments dagen dagen: just really quickly that all of this was intertwined years ago, and did any of these global elites see it coming. maria: all right, we gotta go ashley webster is in for stuary varney today on "varney" & company have a great day everybody ashley take it away. ashley: thank you very much, good morning, maria, good morning, everybody, indeed. i'm ashley webster in today for stuart. let's get right to it, elon musk is committing more of his wealth to finance his $44 billion bid for twitter. this comes hours after the current ceo of twitter told shareholders that well, the company was going forward with the deal. the news of musk's boosted equity to fund that deal sending shares of twitter higher up more than 4%, a


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