tv Varney Company FOX Business November 18, 2022 9:00am-10:00am EST
maria: what about you? remember we used to do this every year around the holidays, all put these sweaters on and take pictures, get ready for the holidays. >> we sure did and i still have every single one of them. maria: me too. >> i love them. i think it's hilarious but i'm kind of surprised they do that. do they really want to put back in our memory microsoft vista? and the disasters that came along with that operating system , and the hopping paper clip where everybody was like i don't need a hopping paper clip. i just want microsoft to work. so they are reminding us but it is hilarious so good for them. maria: adam johnson, lee carter great to be with you both this weekend thank you so much for being here and thank you, everybody for joining us this morning i'll see you tonight on wall street 7:00 p.m. eastern and sunday morning on fox news "varney" & company begins right now stu take it away. stuart: good morning, maria, good morning, everyone. business news seems to have been taken over by a couple of very well known characters who are absolutely wreaking havoc. musk at twitter, bankman-fried
in crypto. start with musk. we don't know exactly how many employees have left the company. some reports say hundreds are on the way out. musk told employees to accept an extremely hard core twitter 2.0 or leave. confusion reigns. in the memo musk appeared to be walking back his ban on all remote work. the question is does musk have enough engineers to keep the system up and running? by the way, he's going to close some offices until monday. how about that? why? as for bankman-fried, a revelation. all his talk of climate and sustainability was just pr. a meaningless front to pull in money. all his talk of ethics was in his words, this dumb game we woke westerners play so everyone likes us. oh, that's climate sinicism on steroids. bitcoin at 16, 700 bucks. some will have to explain to me why its held right around this
price through a week of crypto turmoil. let's get to the markets. the federal reserve pushed back on any pivot idea thursday. that killed an early rally. this morning pretty good gains. the dow up about 200, the nasdaq up about 120. not bad. interest rates still show that inversion which is supposed to forecast a recession. the 10 year yields 3.78%. the two-year, about what, almost 4.5%, it's 4.47% as of now. the spread, by the way, is widening. politics. nancy pelosi has retired as the leader of the house democrats. steny hoyer and james clyburn have stepped aside from any leadership position. both are in their 80s. it's a changing of the guard. the new leader is likely to be 52-year-old hakeem jefferies from new york. sport, which we don't often cover, but here is a blockbuster no alcohol at the world cup? budweiser was supposed to serve beer at the games but the host country, conservative muslim
qatar, just this morning said no i'll leave it with this. hell hath no fury like a soccer fan denied beer. friday, november 18, 2022. "varney" & company is about to begin. ♪ stuart: is that michael buble? lauren: it's a beautiful day. stuart: look at that that's sixth avenue new york on a friday. deserted, everyone works from home. >> putting up all of the christmas decorations. stuart: oh, it's a wonderful thing. lauren: we found three people to show up at work. [laughter] stuart: here we are. folks yes it is a beautiful friday morning and we're going to start with hakeem jefferies
the favorite to replace nancy pelosi. lauren what do we know about him lauren: well he is represented brooklyn and queens since 2013 and he is currently chair of the house democratic caucus. he's got the support of jim clyburn, steny hoyer, both of whom are leaving their leadership positions. he's 52. he's 30 years younger, 30 years the junior, than these top democrats, so this is generational change. he is a moderate, a centrist, and he often clashes with aoc and the squad. stuart: i'd like to know what a moderate centrist is in the democrat party these days. lauren: i thought joe biden was one. in fact that's how he campaigned stuart: yeah, he did. oh, look whose here now guy benson, the man himself. i want to talk about the balance of power among house democrats. i don't really know hakeem jefferies politics, not really but the socialist block that's expanded. it's now the squad plus four new members. do you think they have got increased influence in the house
>> well, just the math would suggest yes, stu, and look, hakeem jefferies is to the center of the squad but pretty far to the left of the american people, and you look at what he's voted for , what he supports, his twitter footprint, and his social media past. i mean, this is a pretty lefty guy so it'll be interesting to see how he, in a leadership position, a new leadership position, tries to wrangel this group, some of whom an a growing number of whom as you point out are really out there on the far left and now in the minority which is obviously a much lessen joyable position if you're in the house. you have very few powers but he will have some early tests to see how well he can hold things together. pelosi, love her or hate her was a master at it and it will not be easily replicated. stuart: now the republicans will have a tiny majority, a very very small majority indeed in the house. is that majority big enough to let them stop some of the
leftist trend that we see among the democrats in the house? >> yeah, because the republican s are going to basically take the left wing democratic biden agenda and kill it. it's over. they aren't going to be able to bring up votes. they aren't going to be able to pass huge reconciliation bills where they can spend a trillion dollars purely on party lines. that's over. all it took is a one seat republican majority to slam the brakes on all of that which i think is great news, also some accountability, the republicans taking over the committees. that is still, stu, a very different question then, and you didn't ask this question but i'll answer it anyway. will this be a functional republican majority in the house stuart: yes. >> and i think the jury is very much out on that. stuart: okay, one quick question i thought we'd passed or they had passed the inflation reduction act, which was really a climate act. i thought it was passed. you can't change it now, can you >> correct. it is law and so everything that's happened over the last two years will remain in place.
the likelihood of repealing anything significant is not happening because the democrats will have the senate and the white house but anything moving forward for the next two years will require bipartisanship in this party line our way or the highway mentality of the democrats, no longer tenable, even with a slim republican majority in one chamber, which they now have in the lower chamber. stuart: it's going to be a wonderful two years isn't it? we're all going to have a lot of fun, guy. >> [laughter] stuart: guy benson thanks for being with us this morning always appreciate it see you soon. >> good to see you. stuart: how about this one, senator chuck grassley, the republican from iowa has already filed for re-election, in 2028. lauren? that be , he be 95 at that point , wouldn't he? lauren: and 101 when that term would end when his ninth term would end, so let's talk about age. stuart: why is he doing this? lauren: because he can. because he's popular. you know voters said we're very concerned about his age, yet he won in iowa by 12 points, okay? so what is age?
if you can hang, you show experience, you show a steady hand, but maybe you don't want to change at a certain age. so we're talking about this repeatedly. what age is too old to do certain things. stuart: would you say that i, at my age, have acquired wisdom and a steady hand? lauren: absolutely. stuart: really? lauren: absolutely. stuart: flattery gets you everywhere. lauren: pick an age, i don't know what you want to pick but 70 is old for certain people and very young for other people. same for 80. 90 i'm not so sure about. >> right but at some point, especially in an elected position, just like they do to doctors and lawyers where they force them out at 70 from the groups that they are in they force them out, i think there has to be real conversation around age in the elected space, right? and if congress, senators, presidents. stuart: if you can not be the pilot of a commercial airliner at 65, but you can run the country? >> right. it's a real conversation so while grassley's done a great
job, he's going to be 98. stuart: [laughter] lauren: 101. stuart: we were going to bring you into market coverage. we didn't realize we talk about age but let's talk about the market. how about a santa claus rally? >> i think we're going to get it. what you'll get is this push higher into the end of the year. i think that the saphier will end somewhere in the low 4,000, like that, and i think we'll have a little bit of pullback but then the rally into the year-end. beyond that i don't think it's going to happen. i don't think we're certainly going much higher than that. we'll hit resistance and then the market drops for a little bit but yeah a little bit is not going to be anything significant in my opinion. stuart: 10:00 this morning, eastern time, we get existing home sales, very important in the real estate business, which is really almost in recession at the moment. does that spill out into the stock market? >> well so listen i think that people are already expecting the housing market, we've already seen it come under pressure, we've already seen mortgage rates up 133% this year from 3% in january to 7% today, and so the cost of owning a home just on the mortgage has gone up
but real estate taxes are going up as well so it becomes more difficult, more expensive to own the home, so do i think it's going to spill over into the stock market? i don't necessarily think that's unless we have a complete meltdown, the way that we had in 2007 and i don't see that coming but i do see a much slower period for housing for a number of years. stuart: a number of years right with mortgage rates at 7%. >> and likely going higher. stuart: lauren? let's get back to you and give us the latest on the student loan handout. lauren: oh, boy well now the biden administration has asked the supreme court to lift an injunction filed earlier this week at a federal appellate court in missouri. that court said, a missouri major loan service provider in the state be harmed if these borrowers didn't have to repay all of the money so that's the harm they were trying to prove. it's just the latest legal set back, the debt forgive these plan faces. remember, it's popular, but biden never got congressional approval to do this. will he get congressional approval now, when the house is
republican? no, so what could happen? since we don't know real quick they are talking about extending the moratorium on payments, so people have not, many people have not paid their student loans since march of 2020. stuart: that's right. >> and they are supposed to start repaying them in january. there's talk that they will push that again. look, when you haven't paid something in three years are you ever going to repay it? stuart: but the president is buying votes. lauren: yeah. stuart: would you think, kenny? >> absolutely buying votes but we said that from the very beginning right? when you tell people don't worry about it you took out this debt signed the papers but don't worry you don't have to pay for it. stuart: he came up with this right before the mid-terms. he promised the student loan, half trillion dollars worth of forgiveness, youngsters voted for it because they like the idea of free money, and then , they find that you can't have it, but they still voted for him so he gets the benefit without actually delivering the product. not bad. >> but that may come back to bite him in the back side at the next election if it doesn't happen right? stuart: it's a long way away.
lauren: if he gets a real recession next year and then you're going to the polls for 2024, with oh, wait i lost my job and now i have to repay my loan and debt wasn't forgiven , it could back fire. stuart: we're very lively this morning aren't we? it's you. you're doing it. lauren: something in this coffee >> didn't put anything in my coffee it's who i am. stuart: check futures please 20 minutes to go before we open up we are going to be up, dow up nearly 200. coming up, republicans allege president biden was directly involved in hunter's business dealings roll tape. >> to be clear, joe biden is the big guy. this is raising troubling questions about whether president biden is a national security risk. stuart: here is what we're going to discuss, is biden compromised we will get into that. monica de la cruz flipped a texas border red, how will her constituents handle a new surge of migrants after title 42 ends? i'll ask her because she's on
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vessel and then a shootout ensued. all three u.s. agents were hit. one died and two others were gravely wounded. one of the smugglers was killed as well. cbp deputy commissioner trish regan miller released this statement yesterday, it reads our hearts are heavy today due to the death and injury of marine agents, following an exchange of gunfire with suspected smugglers off the coast of puerto rico. we're working with partners to ensure those responsible are brought to justice, and will share info as we, as it's available. now, that spot we should tell you has been particularly busy lately. the day before $2 million worth of cocaine was recovered from a capsized boat about a mile off the coast of puerto rico. 198 pounds worth of the drug, but that's not even close to what they got earlier in the week when agents seized 13 bails of cocaine off of a vessel there, weighing in at 851 pounds
that's a street value of about $7.1 million. all the while, hundreds of miles away, the same pictures virtual ly day in and day out down in eagle pass, texas where hundreds of migrants continue illegally crossing the southern border in record numbers, not only there, but ink across nearly 2,000-mile long stretch as we have been reporting for all this time, but of course , stuart, yesterday's shootout, a tragic reminder of how dangerous it is for the men and women of law enforcement who are out there working the front lines of this crisis. stuart: casey, thank you very much indeed. a sad story indeed. let's bring in congresswoman elect monica de la cruz. she flipped her texas border district red and she joins us now. quick question. how is your district going to handle the new surge at the border after title 42 ends because here they come. >> well, i can tell you this. in my community, which includes
mcallen and edinburg, texas, we have been dealing with this open borders policy that the biden administration has had for over two years. i can tell you this , that the border patrol lack resources they need to keep our community safe, to keep america safe. unfortunately, because of the biden administration's failed policy, local communities have had to pick-up the slack, along with the state. very sadly, instead of meeting with my democrat peers on how to secure the border, i have to meet with local mayors and with state leadership in order to guarantee the safety of our communities and really, the safety of our nation. what the biden administration is doing is unconstitutional and very sadly, the state and local communities have to step into clean-up their mess. stuart: two days ago, senate leader schumer suggested an amnesty for all illegals,
dreamers, illegals, he talked about 11 million but the real number is 20 to 30 million. how do you feel about amnesty for 20 or 30 million people? >> look, what the democrats are talking about amnesty is because they just saw republicans take over democrat seats, just like mine. my district has been democrat for over 119 years and what they are seeing is that communities are waking up to failed economic policies, failed border policies , so they are playing their next card and their next card is to talk about amnesty. the truth of the matter is, communities are worried about an open border. they are worried about fentanyl crossing our borders. i'm a single mother. i worry everyday about the drugs that are coming across and see ing young kids just like mine that are 15 and 16 dying all over america. democrats want to change the
narrative but we're going to hold them accountable not only to the border but to their economic failed policy as well. stuart: 30 seconds. if schumer is offering amnesty, that's like an invite to come on in, and if title 42 is over, that encourages more to come. are you expecting a surge, i mean, a big, new surge, over and above what we've seen already in the immediate future? >> absolutely. we will see a surge like never seen before and that's why it's so important that not only myself but other congress men and women come together to help support our brave border patrol men and women who are literally putting their lives on their line for americans, just like you and me. stuart: got it. monica de la cruz, congresswoman -elect thank you very much for joining us we appreciate it. >> thank you. stuart: earlier this week governor abbott of texas invoked the invasion clause of the constitution. that includes deploying gun votes on the rio grande and
declaring mexican cartels terrorist organizations. democrats in texas are responding, what are they saying lauren: they are saying it militarizes the border when the migrants are simply exercising their right to asylum and not waging war, so six house democrats from texas say governor abbott has federal authority in declaring an invasion. you just heard a little bit of the facts on the ground, i'll bring you some more. there have been over 1,400 illegal crossings in the del rio sector alone in one-day this week. 69,000 since october 1. stuart: that's one-day. lauren: one-day. stuart: 1,400. lauren: in one sector. stuart: more to come. lauren: that's why he's out of resources. he's out of choices. he's busing them out, flying them out when he can. he needs help. that's an invasion. stuart: thanks lauren. check futures, please. i see some green on this friday morning. dow up about 170 at this point, nasdaq nice gain, up about 111. the opening bell is next. ♪
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pure mistake. that's live tv. >> [laughter] stuart: the market looks like it's going to go up a little bit at the opening bell, and mark mahaney joins us now. mark is looking at two mega cap stocks. netflix, let's start with netflix. is it the number one streaming service? >> globally it is in terms of subscribers and revenue. stuart: and where do you see the stock going? you've got it at 340 i think and it's now at 298. >> yeah, we see , you know, 10- 15% upside near term on the stock and we shuffled and made this our top pick in the internet space. i think consumer demand trends will soften in the december quarter and soften again in the march quarter. you're going to see more layoffs so you really need idiosyncratic stock picks to work in this market and they will have headwinds but what's idiosyncratic about netflix is this new offering we have what's called bwa stu, it's basic with ads, so 6.99 so you get the world's leading stream ing service in terms of content and quality, content and
amount of content, you get that for 6.99. i think it's a game changer for the company and will cause revenue growth to reaccelerate in the middle of next year and the stock for the first time ever can be bought on a gap pe basis. netflix is our number one pick. stuart: game changer big word, mark. how about meta, i see it at 113 bucks now where is it going? >> meta is going to have deteriorating demand trends like the rest of advertising like the rest of online retail. what's different here, i think, is that this company is finally found religion cost cutting religion, so the fastest two week pivot i've seen in corporate history with a company giving economic or expense guidance, earnings guidance and then two weeks later changing its mind and announcing this 10% rif or 11% in its workforce. they clearly heard something from the market and my guess is really it's their employees that heard something from the market and went back to management and said you've got to do something
and management did the right thing and got to tighten their belts so the fact they have been so aggressive about it makes it to me the number two pick also trading at like 12 times gap earnings so the risk reward here is highly a symmetric. stuart: you're looking for 170 bucks a sharon meta right? it's 113 now. that's right. stuart: what's the timeframe? >> 12 months and what you heard from meta and what you heard from amazon by the way this week , they are laying off people too. i think google is considering it too. i've got half a dozen companies that had 10% plus rifs, and there are more companies doing this , stu. i think the layoffs that news will get worse before it gets better. stuart: oh, a rif. a reduction in force. >> yes. stuart: long time since we used that one. mark mahaney thank you very much indeed. >> [opening bell ringing] stuart: we're off, we're running the market is open. yeah, pressing that button and it's open. on the left-hand side of the screen, grinder which goes does an ipo today. all right, almost all of the dow
30 are on the upside. certainly a whole lot of them are, and that's a sign that there's some buying. yeah, the dow is up 243 points that's about three-quarters of 1 %. how about the s&p 500 show me, please. it's up precisely .80%. the nasdaq, how is that doing? a nice 1% gain right there, so show me big tech. we always do this. at 9:30 every market morning you have a look at big tech because that's where the money is, and they are all up except alphabet which is down and meta which is down this morning. i want to stick on amazon for a second. it's warning of more layoffs to come, but i am told that the workers are not going to find out whose been laid off until next year. is that right >> well no specific numbers from amazon but you did hear from ceo confirming the layoffs yesterday, positions are already being laid off right now so we're talking about those in books and devices, yes, that includes alexa, but you had
andy jassey in that note saying for the first time this is the hardest decision yet for the first time in his tenure as ceo in 18 months, so they are going to lay off a few now. they are going to offer voluntary layoffs as well to those in human resources, experience, think of cloud and tech et cetera but then more will go next year, and it all kind of makes sense because they are forecasting the slowest holiday sales growth in the companies history. the stock has lost a trillion dollars in market cap, the past 12 months and they reported a loss for the first time in about 10 years, started off 2022. stuart: hold on one second, kenny polcari would you buy amazon at 95? >> 95 and lower i'm starting to pick away. stuart: why? >> just because i think the story is overdone. i think we've heard this. we know they are laying off people. we know what the projections are , but remember, the market is discounting mechanism, right? so over long term i think amazon is just one of those foundational names and anywhere below $95 i think is a place if you don't own it you should start picking at it if you do own it you can add more.
>> it's a capex story as well. wall street wants to believe in amazon given the amazon web services in that cloud domination. >> exactly. >> also i want to note we're going up today because of options expiration. usually so we've been up three- quarters of the time when options expired this year so maybe there's a distortion effect there. stuart: can you show me gap, please? it used to be the gap. >> still the gap. stuart: it's not is it? >> i still call it the gap. call it whatever you want. stuart: it's up 9%. >> yeah, so you know, i would say that was a very strong summertime, surprisingly strong making money, losing money, better than anticipated sales, and you know, gap is trying to turnaround its business. they are cautious on the holiday s, they are trying to bring down that inventory and they are talking about brand rej igging. net sales could be lower this year over the holidays than last year, but still, this is the turnaround story and don't forget they terminated their deal with kanye west earlier this year as well. stuart: got that one. >> foot locker. i know you wear sneakers so
maybe you buy them at foot locker. stuart: i just bought jeans from the gap but not yet bought sneakers from foot locker. >> all right, so there you go. stu "varney" approval there. now, we do have foot locker, look at the rally today up 17%, better-than-expected sales and profit over the summer, and because of that, they are saying business is going to do better this year, also an increase in foot traffic which i think is pretty impressive, and of course they are pulling back on easy kanye products as well and then i want to show you discount retailer ross stores here, discount selling well in high inflationary times, better results, increasing outlook on the business, and by the way they are going to make less. they might make less per item sold, because they have high holiday promotions, and of course they are dealing with inflation, but if you are making less per item but selling more of it than anticipated that's positive for your stock. stuart: you and i both know dan ives, frequently on this program >> well. stuart: he loves palo alto, the cybersecurity. >> he says it's a table pounder and he said that over and over
again. stuart: show me they are up aren't they? up 8% nice gain. >> that's very interesting because initially the stock went down when the results reit the tape, but you know you can't -- even if there's high inflation even if there's slowing economic growth companies don't cut back on cybersecurity. >> listen the fact that cybersecurity is a group, it's down on the year about 30% is mind boggling to me especially because of the world we live in to your point exactly. companies are not cutting back on cybersecurity. >> that's why if you look at palo alto consensus picked this year by the way improving guidance, companies are going to continue to spend on cyber and that's why they are lifting crowdstrike and the rest of the cyber space. stuart: that stocks done very well recently. okay resignations still coming in at twitter. my question though is why is musk closing some if not all of his offices until monday? >> that's right and they are also, you can't get in with your badges. i think that's a security problem, right? since you have hundreds of twitter employees that have not opted in to be extremely hard
core for twitter 2.0 and just to make sure the platform still works, everything is in place, no one goes into sabotage that's why they are locking up the offices and locking in the badges. i think for tesla investors, there are concerns about whether or not elon musk has a bandwidth to run all three companies. he said on the stand that most of his time over the last few weeks have gone to twitter. i mean, for a trillion dollar company by the way in a slowing economic growth environment that's a problem. also this morning he had 29,000 model x's being recalled over airbag concerns, so -- stuart: twitter is a mess at the moment. >> well rip twitter was trend ing last. stuart: really? rip twitter? >> yes, but elon musk says because people have been talking about the death of twitter on twitter that means usage actually spiked. stuart: what do you got on musk and twitter? does he survive? >> i think it survives, i think it's going to go through its kind of challenges but in the end it does survive. stuart: okay, susan, thank you and we're waiting for your big interview. >> thank you look forward to
that. stuart: you have a couple picks for me, halliburton, start with that. or schlumberger. >> oil services stocks just because i still believe in the energy space, right? and these oil services, halliburton and schlumberger are up significantly since the october lows, right? and i think they are going to continue in the months in. this is not a short-term trade. it's much over a longer term purchase that you're going to have that should be part of your foundational portfolio so both those names i like. i like the oil services sector, oih, be another way as the etf to play that sector if you didn't want to pick one or two names. stuart: halliburton and schlumberger. all right, got it. now coming up, the ceo of binance, he calls sam bankman-fried a liar, who knowingly miss appropriated customer's money. he wants to help though with a crypto recovery fund. cz, he's going to join us in a moment and i'm sorry about the pronunciation. >> fantastic. stuart: house republicans will investigate the biden family over alleged foreign ties. the white house has responded, we'll tell you what they are saying, but, is this what the
public wants? endless investigations? new jersey congressman jeff van drew will take that on, he's on later in the show. ♪ ♪ we all have a purpose in life - a “why.” maybe it's perfecting that special place that you want to keep in the family... ...or passing down the family business... ...or giving back to the places that inspire you. no matter your purpose, at pnc private bank, we will work with you every step of the way to help you achieve it. so let us focus on the how.
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coventry direct today at the number on your screen, or visit coventrydirect.com. stuart: we're learning more about the relationship between the democrats and sam bankman-fried. hillary vaughn in washington. what's the latest, please, hillary? reporter: good morning, stuart well democrats are insisting that the millions of dollars in donations that they got from ftx 's founder sam bankman-fried, will not hinder their ability to conduct oversight. bankman-fried pumped thousands of dollars into the individual campaigns of influential democrats on capitol hill. a lot of them on the house financial services committee in charge of oversight of the
industry, but also to the man who likely will become the new leader of the house democratic party, with speaker pelosi announcing plans to step aside. congressman hakeem jefferies who received the maximum individual donation from bankman-fried, another democratic congressman richie torrez tells me democrats still will do due diligence. >> are you concerned that democrats as they received millions of dollars from him might not be able to conduct the oversight effectively because they had benefited from his money? >> well as i understand it, there were republicans who received money from his business partner. 92% of his money was spent for democrats. >> the business partner that contributed heavily to republicans. i'm confident in the ability of congress to conduct robust oversight. reporter: other democrats on capitol hill making it clear that even though they may have ties with sam bankman-fried's family they are not skimping on oversight. exam bankman-fried's father help ed senate elizabeth warren
who sits on the senate banking committee draft legislation in the past. warren is now demanding answers from ftx on where the money went saying this , "while the full extent of the damage brought by ftx and its affiliates continue to unfold, billions of dollars worth of investor funds seem to have disappeared into the ether these developments justify our longstanding concerns that the crypto industry is built to favor scammers and designed to reward insiders and defraud mom and pop investors" and stuart, both committees on the house and senate side in charge of oversight have announced hear ings into ftx's fallout. stuart? stuart: yes, indeed, hillary thanks very much. we're joined now by the co- founder and ceo of binance, better known perhaps cz i'm going to call you cz, but susan is with us. she knows all about crypto. i'll leave it with her. >> yeah it was great to see you last week at web summit and thank you so much for joining us today on fox business. so let's, of course, start
talking about ftx, because some have said that you are the instigator of ftx's collapse you've called sam bankman-fried a psychopath, a liar. was it out right fraud? >> yeah, so i think that's definitely lying involved. he lied to his users, he lied to his investors, he lied to his employees and he also lied to regulators all around the world including politicians in the u.s. , so yeah, so but i don't think we caused it. we maybe the last straw that broke the camel's back, but they will be fine if the company itself is fine. >> well michael lewis has said that you, cz, versus sam bankman-fried, sbf, is like godzilla versus king kong, so you looked at the numbers and they came to you saying help us out, bail us out, buy us. what does that say about the balance sheet? it was chaos according to the enron settler.
>> it was a bit chaotic and also, as soon as we discovered that he actually moved user funds without disclosing that and basically he was lying to everyone, i said look, this guy is probably going to be in a lot of trouble most likely going to jail. i couldn't trust the data any more. the guy has nothing to lose, the guy has no more to lose. he's probably already in a bad position and he will do anything to lie to get our money so at that point, i couldn't trust any data in the data room. >> okay. >> also with the u.s. investigations we said hands off. >> where was the house financial services committee because they are holding a hear ing on the ftx collapse and they have invited you to speak. will you go to d.c.? >> i personally won't, but we have teams in the u.s.. >> well why not? why not go and answer the questions yourself, cz, and represent the company that you founded? >> first of all, i'm busy building things outside of the
u.s.. binance.com does not service users in the u.s. and we focus on other parts of the world and this thing is important, but i don't know very much about it. i made a tweet but my people think that's the last straw that broke the camel's back, but we look at the data room for like a very short period of time. we don't have much information to be honest. >> okay well i'll tell you that in d.c. right now, cz, a lot of people, if you look at the recent headlines this morning from ftx how they didn't even record transactions by their users and their traders, people are saying cryptocurrency is used by kidnappers, by those that are doing illegal things. maybe it should be banned here in the u.s.. >> i think look, they are bad players in all industries, and happening in a very regulated wall street traditional finance industry so those things happen. just because there's more meta doesn't mean you shutdown all of the other banks. i don't think that's the right
decision. >> and cz, just to clear the air i know you grew up in canada but there have been questions about links, ties to beijing. do you have any ties to the chinese government? >> we have zero ties to the chinese government. i've not been a chinese citizen for 33 years. i've been a canadian for 33 years. my company, we were kicked out of china. we were banned in china. we have no presence in china, no links to the chinese communist party, or any other government. we're just, i'm a technology geek. we just run a technology platform business. that's turning into a financial services platform. we're not involving politics. we're not involved with china. it's a very strong narrative that was pushed by sam bankman-fried that binance is a chinese company, and many people still have this in their head, just because my ethnicity i'm chinese, both of my parents are chinese. i look chinese, i have black hair, binance is not a chinese company. we have nothing to do with china
or the chinese government. >> can i just have 30 seconds to ask you on twitter because you put in half a billion dollars into elon musk's bid so twitter is in somewhat disarray, a mess right now. do you regret investing, co- investing with elon musk? >> oh, absolutely not. i think twitter is completely fine. the platform will stay, it'll grow. there is typically some chaos when dealer transition when you have a new leader in place. there will be some chaos, there will be some happy people, he's downsizing the team. some people will be unhappy. it's very normal. we're very very -- i feel even more confident that's happening very quickly. >> okay, cz, thank you so much for your time. i appreciate it. stuart: yes indeed. >> thank you so much. stuart: yeah, thanks very much indeed, cz. look, one thing that you brought out there was that he would not appear in d.c. for the hearings. i think that was a very telling
point. he had a good explanation for it but at the same time i think that will count against him if he doesn't show up. >> well binance usa has 44 state licenses to operate here, so that's a complete separate entity from a business perspective. i can understand why he wants that separation gap. stuart: glad you got in the bit about the communist party. >> i cleared air. stuart: well-done. good interview great stuff. >> thank you. stuart: thanks, everybody. ticketmaster, they have met its match. watch this . ♪ stuart: the ticket seller, that will be ticketmaster, had to cancel its general ticket sale to the public for taylor swift's highly-anticipated return tour. we've got the latest on what is bad blood between swifters and ticketmaster. ♪
the secondary market where they will pay thousands of dollars and all of this just days after a disastrous pre-sale for taylor swift's highly-anticipated stadium tour next year. 52 city, ticketmaster announcing today's schedule public sale will not happen "due to extraordinarily high demands on ticketing systems and insufficient remaining ticket inventory to meet that demand." now the controversy started tuesday, when that pre-sale for verified fans couldn't keep up with the intense demand with literally millions shutout from getting a chance to purchase tickets. now, ticketmaster says they were still able to sell more than 2 million tickets but argued that the pre-sale mechanism is simply designed to keep out scalpers and bots. well don't tell that to stub hub while the most expensive tickets at pre-sale were right around $ 500 the cheapest tickets in the nosebleeds now going for more than 700 bucks on the
secondary market. the whole ticket debacle, by the way, not only stirring outrage among swift fans but politicians as well. tennessee's attorney general says ticketmaster must be held accountable. take a listen. >> ticketmaster is such a dominant market player that they need to be subject to extra scrutiny. they are under a consent decree already for anti-trust issues and we need to hold them to every line possible to be sure that consumers aren't hurt. ashley: other lawmakers are calling for the break up of live nation the country's largest concert promotion and ticketmaster's parent company. they joined forces back 12 years ago and they say that critics say that the company has a strangle hold on ticket sales to top events. the white house also weighing in by the way, tweeting hidden fees like processing fees on concert tickets add up quickly. president biden called on his administration to crackdown on
the practice of selling tickets. stu back to you. stuart: got it ash, thanks very much. kenny thanks for joining us for the hour we appreciate it. >> thank you for having me. stuart: still ahead, former president of levi's brand jennifer say, sandra smith, new jersey congressman jeff van drew the 10:00 is next. across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect. .. 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 indeed.com/hire and get started today.