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tv   Mornings With Maria Bartiromo  FOX Business  May 3, 2022 6:00am-9:00am EDT

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larry: the weekend, this violent left wing group antifa breaks up a republican rally for governor, running for governor of oregon, took 20 minutes for the cops to come. i think poulion is going to win his race for governor. maria: good tuesday morning, everyone. thanks so much for joining u i'm maria bartiromo. coming to you this week from los angeles and the 25th annual milken institute global conference where thousands of investors and leaders from across the world are meeting here this week to hash out the issues of the day including the economy, policy, and the digitization a of our world. the meeting kicked off with a look at 40 year high inflation and the expectation of interest rates going much higher as we are expecting the fed to raise rates tomorrow by half a point.
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and good morning, everyone. we're coming to you live this morning on this day one of the much anticipated federal reserve meeting which kicks off today. we're looking at all segments of the economy for impact, coming up, the ceo of the u.s. chamber of commerce, suzanne clark, mark wineburger, michael mccall and pamela leadman on real estate. ahead of the announcements this morning, markets on the move. the 10 year treasury pulling back after a big move yesterday, hitting the highest since november 2018, above 3%. meanwhile, investors expecting a first quarter earnings report this morning before the markets open from pfizer and after the closing bell from starbucks and lyft, ahead of the uber report tomorrow. let's check stocks right now and the markets headed into day one of the fed meeting. and we see the dow industrials exactly where it closed
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yesterday with the nasdaq and s&p 500 fractionally moving. investors waiting cautiously for any news out of the fed after stocks closed slightly higher yesterday. at the closing bell yesterday the dow industrials were up 84, nasdaq up 201 and s&p 500 higher by 23 at 4:00 on wall street. european markets this morning look like this. the ft 100 lower by 33, the cac up 52, dax higher by 78. overnight in asia the nikkei average as well as hang seng and kospi down fractionally, it is a holiday, labor day in china. the shanghai composite closed. meanwhile, breaking news, a leaked draft of a supreme court opinion released by politico late yesterday suggesting that the court may move to overturn roe versus wade and planned parenthood versus casey, calling
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he roe, quote egregiously wrong from the start. protests are forming outside the high court. we do not have any confirmation on this politico report and we do not know if this is purely political and leaked to try to sway voter opinions ahead of the midterm elections and start of primary season. "mornings with maria" is live from the milken institute global conference right now. and your morning mover this morning is chegg. it's at 15, 98, stock is down 36%. american education tech company reporting first quarter results yesterday, also lowering the future revenue outlook based on issues related to enrollment, the economy and inflation. despite seeing a 14% increase in services revenue last year. jeffreys lowering the target price for the stock to $30, down from 55. the stock is already down about 19% year-to-date and this
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morning a 36% haircut. the federal reserve kicking off the highly anticipated two-day meeting today where the central bank is expected to raise rates by half a point to fight record inflation. the debate on whether or not a the fed can do a soft landing is on. yesterday, the founder of citadel, ken griffin, says the fed needs inflation to drop to 4% this year in order to avoid a recession. he also said it's an open question on whether they will be successful in terms of a soft landing without triggering a recession. bonds continue to take a hit. we've got the 10 year treasury yield up again this morning after rising above 3% for the first time since 2018 yesterday, as you can see it is now at 2.988%. joining me now is ceo ken mahone. also joining the conversation all morning long is mitch he rochelle and payne capital management president and podcast
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host, ryan payne. great to see everybody this morning. thank you so much for being here. ken mahone, kicking things off with you. we're here, the federal reserve's may meeting has arrived and jay powell told us what to expect, 50 basis point hike they'll announce tomorrow. how do you think stocks react? >> well, thank god they've been telegraphing this room forever and ever it seems. the reason why stocks are having trouble with traction is the credibility of the federal reserve. all last year, it's transitory, it's transitory, up until jerome powell was reappointed to chair chairagain, let's retire the transitory. it's the drum beat on and on about rate hikes we're behind on inflation. it's like a movie where michael keaton was six different places at one time. the fed has like 19 different speeches every day, more hawkish than the next, i have eight rate
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hikes, 12 rate hikes. it's enough already. the market is buckling. we're seeing chains around this. i'm glad tomorrow is the day they're going to raise 50 of basis points, get that out of the way, see what tomorrow brings. maria: get is out of the way, ken. at the same time, there is an impact. i mean, this is the top story at the conference, you've got everybody from money managers of equities to private equity guys and private family office heads talking about a different environment because rates are making things more tough in real estate, in the broad economy. there's a debate about whether or not we're going to see a recession. do you think we're headed for a recession? >> i think so. i think the federal reserve is going to overreact, missing last year's opportunity. look at last year, we had gdp of 5%. you don't raise rates. here we are coming off a first quarter with a negative gdp and for all we know we're in a negative gdp quarter right now.
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ie recession. for people we speak to, we hear of real estate deals being unhinged in real-time. we find other cracks happening because of higher interest rates. it's already happening. tomorrow will probably be 50 basis points, probably next meeting 50 basis points. things are starting to he react already. equity markets are he reacting g like it's the worst crisis since 2008. there's a reaction about hiking rates and rates going higher and you're seeing it with people you're speaking to. maria: the nasdaq is down 20% year-to-date. we're in correction mode for the nasdaq already. then of course there's the earnings season which so far has been okay. we had hilton head, a miss. i'm surprised at the hilton miss because people have been shifting money from not buying
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stuff but buying services and travel. pfizer is kicking off earnings this morning along with marathon petroleum, molson coors, estee lauder, reporting quarterly results this morning. after the bedroom we hear from starbucks, airbnb and lyft. how would assess the earnings period? the more important question would be what are you hearing out of guidance? what are ceos and management heads thinking the year will look like, 2022. >> there's a great he degree of uncertainty. we saw that in apple's report. that's a poster child of the guidance or visibility. apple is basically saying we have supply p chain disruptions in the quarter, probably lead into the quarter we're in right now. we hope the bottleneck evaporates or slows down for the second half of the year so i think apple is one of those companies, again, that's heavy waited in all the different -- heavy weighted in all the different indexes. you look at what they're saying. you know, what if we can get through the digestion of the bottleneck, we have demand on the other side.
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there is optimism around strong demand. i think that's really important until we get the supply chains back up and i think apple is definitely the leader in all of that as well as microsoft said the same type of thing, microsoft they beat, they raised guidance. you have hits and miss as you usually do. but certainly apple to me leads this and is showing where we can go second half of the year. maria: look, you make a good point, demand so far has been strong, consumers have money in the bank. they have a good balance sheet, so that's a positive. but the supply of real estate, the supply of other things, commodities, is really unnerving and people are talking about the manufacturing side of the economy already showing some weak spots. let me bring in the panel, mitch roschelle, what are you looking at in terms of the interest rate hike that we're expecting to hear offishly -- officially tomorrow? what about the fed meeting strikes you most important.
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>> i think it's clearly going to be 50 basis points. speaking of guidance, i'd like to see in chairman powells press conference what indication he gives about future rate hikes. the bigger thing is the balance sheet runoff. are they going to let bonds mature or are they going to sell bonds? they're talking about $3 trillion worth of bonds maturing over the next three years. the fed got us into this problem in terms of pumping up the market with all of the asset purchases so it will be very interesting to see how they up wind that and sort of reminding myself of the taper tantrum of five, six years ago, how they unwind the bond portfolio is probably a bigger story than interest rates themselves. maria: by the way, they were still buying securities, mitch, to your point, what, like a few weeks before that first interest rate hike of a quarter point. so you make really the right point there, so thank you for that. ken, real quick, anywhere to hide in this environment? do you want to get out of the
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way, raise cash, do anything different ahead of these rate hikes? >> look, you want to be buying gingerly. we like microsoft and apple. we like them on pullbacks. we thought they had a strong quarter. we also like agriculture. we think that's a good place because a lot of countries want to be deglobalized, independent of food and energy so it's a theme there. maria: great to see you this morning. thanks so much. we'll be watching all of that and catching up with along the way. coming up, we're coming to you live from the milken institute global conference. i'll be speaking with the ceo of chamber of commerce, get her take on the economy today, sews zap clark will be here on what's driving growth and then texas congressman mike mccall is here, former ey global chairman, mark weinberger and pamela leadman will give us a sense of real estate and the impact there. don't miss a moment of it. you're watching "mornings with maria" live from the milken institute global conference in los angeles.
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maria: welcome back. i'm coming to you live this morning from the milken institute global conference here in la. business leaders from all over the world are meeting to discuss a whole host of issues including the economy as well as esg investing as well as philanthropy, back to work, travel, post covid. but of course the big issue is whether or not the federal reserve is going to be able to have a soft landing, raise interest rates but not trigger a recession. here's the u.s. chamber of commerce's president and ceo suzanne clark on the economy and the broad story. let me start with 30,000 feet question. what do you think at the chamber is most important right now to get back to growth, you just saw contraction in the economy. what are businesses most talking about right now? >> i appreciate the question. it's all i do all day is talk to
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ceos of small companies, big companies, and what they're talking about the most right now is the worker shortage. they believe it's the driver of inflation, it's the driver and contributor to the supply chain disruptions that we're having and they're eager to get it solved. next up is of course inflation, energy prices and the lack of a trade agenda. maria: how did this happen? why are we having such a worker shortage? i think this has so many elements to it. you've got a shortage of truck drivers. you've got high paying white collar jobs where you're seeing wages go up and up and up. where did this start and how are we going to fix this? >> so we had a worker shortage before the pandemic and the pandemic didn't make it any better, right. we had 2.6 million people left the workforce since february of a '20 which is a remarkable number. what are the causes? part of it was early retirement. we saw a slew of them, particularly when the government was paying people to stay home. we have 1.5 fewer women in the
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workforce because of a lack of day-care. we have a million college educated immigrants who didn't come to the united states during the pandemic. there's a lot of factors contributing to the problem. the question you ask is how do you solve it. part of the it is, we'll have to double the number of legal immigrants into the country. we can secure our border and do that. we'll have to fix the day-care situation. 16,000 fewer day-care providers than before the pandemic and we'll have to get more people into the workforce. maria: what is your sense of inflation? do you see any let-up on the horizon. >> the question is, will the government policy help or will it hinder. what are the things that could help reduce inflationary pressure. well, a reduction in energy prices which would make us -- allow more domestic energy production, get rid of the permitting morase that we're all in. another thing would open up global markets, he reduce tariffs. a study said the tariffs in '18
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and '19 in 2020 cost american families an average of $1,200 a family. open up more march a gets, reduce -- markets, reduce tariffs, increase domestic energy supply and fix the worker store damage. maria: what's your take on recessionary talk right now. we've got a war in ukraine, uncertainty in the european economy and the debate about the u.s. economy after the 1.4% contraction in the u.s. economy. do you think we'll see a recession this year? >> you know, a lot of the people here are talking about maybe it's next year, maybe it's slower and so instead of being a prognosticator, at the chamber we're doing everything we can to keep it from happenings. maria: what's the the impact do you think of higher rates coming, the federal reserve expected to announce tomorrow, on wednesday, that it's raising rates by half a point. do you think that has an immediate ripple effect in terms of the impact on business? >> look, i think the risk of inaction is worse than trying
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something so they've got to start to try to fight inflation. it will be difficult for them to do it at the right pace and we're all watching and hoping that they get it right. in the meantime, we cannot make it worse with fiscal policy. we need to reduce government spending, need to make sure if build back better comes back that we kill it. there are things we can do that are under our control that can help get it back. maria: all of this spending, inflation was at a 1.4% rate when president biden started his term. we're all the way up now close to 10% in terms of consumer inflation, 8 and-a-half percent, expected to he get worse because we haven't even entered the peak driving season in terms of energy yet. >> everything that's been contributing to a bad economy, some things, the war, the pandemic, are out of the administration's control. other things aren't. an expansion of government spending is exactly the wrong time, raising taxes, exactly the wrong time. this administration wants to blame business and say they're just greedy and raising prices.
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of course, they have good economists in the administration, they know that's not true. they need to focus on the things they can do to help the american consumer right now. maria: where do you think the growth is in either the country or the world? i mean, for years i spent my time looking at where the growth is in terms of globalization but today it's much more inward looking, a lot of companies thinking the u.s. is the place to be. do you see sectors that are going to perform higher than others in terms of growth and what about the global story in terms of growth? >> it's such a good he question. i think it's so interesting to think about what does the supply chain disruption do that changes the patterns of where companies are investing. what happens with ally shoring, how do people decide where they're going to be based. one of the things they're looking at is will american government policy allow investment here, will they let mining go after the critical rare earth minerals that could allow the tech sector to continue to boom here.
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there's alot we can do in the ud states. maria: are you hearing that the semiconductor logjam, the fact we're relying on these things out of asia is still an issue and do you see that alleviating any time p soon? >> it's 100% still an issue. i was with a ceo this week that said we're moving people from sales to purchasing because they've made purchasing sexy again, going around trying to find ships, trying to find key component parts, part of why you're seeing inventory levels so high. so i think it is still a problem. and maybe it's a silver lining, we're going to start to figure out how to source these things closer to home. maria: my thanks to suzanne clark. stay with us. we'll be right back.
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maria: welcome back. well, a stunning new report on an unpress deputied supreme court leak rocking the nation this morning. politico obtaining a draft majority opinion suggesting that the high court is set to strike down roe v wade, justice samuel alito writing in part roe was wrong from the start, the reasoning was weak and the decision has had damaging consequences. roe and casey, we overruled the
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decisions and return that authority to the people and their elected representatives. democrats are celebrating this leak, seen as a last ditch effort to p win over voters ahead of the midterm elections. republicans say the cheers are at the expense of the integrity of the highest court in the country. ryan, lots to unpack here. your reaction to what we're seeing. >> i think that's correct, i mean, i think this is good for the democrats. i think they need a diversion desperately here, right, and we look at inflation, we look at all the other problems going on and i think this could be a way to really rile up democrat you democraticvoting base. i think this is problematic, the democrats are definitely using this to their advantage. i think it is a little problematic. maria: people are looking at this as news but we don't know,
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mitch. at a minimum, this would send such a decision back to the states and you would expect that the states would uphold the narrative of this decision. so my feeling is that this is a total leak and a last grasp effort to sway voters because i think the democrats understand they are about to get slaughtered in the midterm elections, mitch. how do you read this? >> well, i think that's right, maria. i think the democrats have lost their base and when you have a poll that came out last week that 93% of americans are concerned about inflation, ryan mentioned inflation as being an issue, there are so many voters in the country that are one issue voters and roe v wade is the issue that they're concerned about and the presidential right to appoint vacancies to the supreme court is why people vote a certain way. and i think it's to get all of those issues that we're dealing with in this country pushed to
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the side and make that one issue for the democrats who left and are probably going to vote for republicans because they're concerned about the economy, they're concerned about the state of this country, get them back to vote for democrats. the problem is, this is a midterm election and the midterm election does not influence the right of the president to appoint vacancy in the supreme court. so if you're concerned about this specific issue, you still got to wait two more years until there's a general election. maria: i think you have analyzed this so well about having so many people having one issue and this is the issue. but we'll see. i mean, right now it appears that the democrats are not winning on policy. they're failing on policy. you just mentioned inflation. that's just one of them. but look at foreign policy. look at the issues around supply chain, around obviously all a of
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the spending having stoked that 40-year inflation. >> yeah. look at the border. i mean, title 42, the border is going to become a bigger issue in the weeks and months to come. maria: that's a great point. >> there's so many god awful headlines that are going to kill the democrats in the midterms, this is one headline. tragically it broke about 11:00 when i was trying to get to sleep for this show so my phone was blowing up over this thing but you said in the intro, maria, that it was unprecedented, that there would be a leak of an opinion from the supreme court that hits politico. i think you have to assume that this is political. maria: yeah. if this doesn't work for them, there's always the midterms variant that could be on the horizon as well. maybe that keeps us all home from voting and forcing us to do mail-in. >> never. maria: gentlemen, we'll take a short break. when we come back, u.s. officials are now believing that
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putin could officially declare war on ukraine as soon as next week remarks that means for ukraine, the impact it could have on the united states and across the world, we're going to talk with general jack keane when we come back. you're watching "mornings with maria" live from the milken institute global conference in loss an a less. stay with us. -- los angeles. stay with us. who's on it with jardiance? we're 25 million prescriptions strong. we're managing type 2 diabetes... ...and heart risk. we're working up a sweat before coffee. and saying, “no thanks...” ...to a boston cream. jardiance is a once-daily pill that can reduce the risk of
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but you can invest in them. we believe that your investments should work harder for the future you imagine. and that's where our strategic investing approach can help. t. rowe price. invest with confidence. maria: welcome back. well, election season kicks off today as ohio voters are heading to the polls for the state's primary. cheryl casone with the latest now. cheryl, good morning. cheryl: maria, good morning. ohio voters will choose which candidates will advance to the general election to compete for the seat senator rob portman will vacate next year. the drama over the republican nominee could extend late into the night with a wide open race between former venture capitalist jd vance who president trump is backing and investment banker mike gibbons, josh mandel, jane timkin and
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matt dolan. all are saying they're within striking distance and the leak of the draft could be on the mind of voters when they go to the polls. we're learning new details about the death of naomi judd. the country music legend reportedly took her own life following a long time battle with mental illness. judd's daughters initially announced it in a statement but gave few details. they broke down in tears when announcing her induction into the country music hall of fame. bp reporting a blow-out first quarter profit, the net profit number jumping to the highest level in more than a decade, $6.2 billion. that offsetting some of the discomfort caused by 25 and-a-half billion dollar charge linked to its planned exit from russia. the oil giant is boosting its share buyback program by 2 and-a-half billion dollars, bp on the move this morning, stock is up about 4% in the premarket
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and we're standing by right now for pfizer's earnings, set to cross at any moment. back to you. maria: we'll get back to you when the numbers come, thanks so much, cheryl. meanwhile, russian president vladimir putin could formally declare war on ukraine as early as next week. the formal declaration would enable the full he mobilization of russia's reserve troops, this as the u.k. defense ministry says more than a quarter of the troops that russia sent to ukraine are you now believed to be, quote, combat ineffective. joining me right now is fox news senior strategic analyst, general jack keane. general, thanks very much for weighing in this morning. it's always a pleasure to see you and speak with you. what do you read into formally declaring war? i mean, we've had death and destruction now for a month. how would things change? >> well, there's speculation that that will happen on the ninth of may which is the big celebration in russia over world
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war ii and defeat of nazi germany and there's always been a thought that something special, given obviously there's a war going on in ukraine, that putin has got to make some kind of statement to indicate he's making some progress. there's been speculation that he may go and declare war and go to full mobilization because he has expanded the narrative, maria, on the war itself. the initial narrative was exclusively focused on the ukraines, being nazi and committing genocide in the donbas region, therefore i'm declaring a special military operation to cope with the crisis. in the last several weeks, he's been expanding the war that i'm really in a war against the united states and the west and they are incringing on russia's stability and security. and that's been a narrative going out over state tv and other publications that he has and thats has led to speculation that he is leading up to
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declaring war as opposed to special operation which would give him full mobilization, access to reserves, hundreds of thousands, and also access to more cons scripts. none of those actually provide an immediate solution for him, the conscripts will take several months to train. the reserves are less trained than special duty forces that are performing less than satisfactory to include right now. mobile reserves could do tasks other of than direct combat tasks and relieve that burden like occupation of mariupol, occupation of kherzan, as opposed to being involved in direct maneuver combat which is more challenging for the reserves to perform. maria: general, i'm wondering if the fact that he has been
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raising the rhetoric in terms of i'm at war with the west, he'ses he'strying to justify an even br move. i'm talking about the potential for a nuclear exchange. are you concerned? >> well, yes, i think all of us are concerned because we've never heard any rhetoric like this in all the years since the soviet union and the united states had nuclear weapons and certainly since russia, the soviet union collapsed and putin has been in charge for 22 years. it's absolutely horrendous rhetoric, suggesting that there could be an all-out nuclear war or at a minimum introduction of tactical nuclear weapons. yes, certainly the united states is concerned. we should all be concerned by irresponsible rhetoric like that. i think it's principally he designed, maria, to decouple --
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maria: yeah. >> it's principally designed to decouple the support that the united states and nato is provides ' vieding to ukraine which exceeded anything the russians thought was possible to include the sanctionses on russia which are growing obviously in toughness, particularly with the eu meeting this week with the central theme on the table is embargoing russian oil and gas, even having that discussion and moving to an acceleration of an em bay he grw like that is -- embargo like that is certainly significant. this is what is driving it. he wants the west to he slow down but at the same time you have to take the threat particularly of a tactical nuclear weapon serious. maria: president biden is visiting a lockheed martin plant today in alabama to talk about security assistance the u.s. is providing ukraine as these concerns he grow over the strain of the war on the u.s.'s weapon
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stockpile. general, what can you tell us about that? the u.s. reportedly sending ukraine one-third of its stockpile of javelins, a quarter of its stockpile of stinger missiles, general. is this putting the u.s. in any jeopardy? >> well, as of right now from what i understand, we're not having any readiness problems but we absolutely in the future will have shortages here for certain. we've accepted a certain amount of risk in providing the ukrainians right out of our stockpile that we have. all that said, what has to happen is the he defense industry hads has to step up, the congress has to financially support it and i understand there's some money in the supplemental to do that, in other words, to not only help the ukrainians, but also replace the u.s. stockpile that's gone down. but there's problems out there in terms of doing this very aggressively because of supply
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chain problems. there's 200 microchips in a javelin. we all know there's a microchip shortage. we see what's happening in the computer industry and certainly in the automotive industry as a result of things like that. so we're not going to solve this problem overnight, maria, because there are issues within the defense industrial base but certainly the congress has got to step up. the problem is well-known and i think we will eventually get it sorted out. maria: all right. we will leave it there. general, it's always great to see you. thank you, sir. >> great talking to you, maria. maria: all right. general jack keane. quick break then the federal reserve's fight to kill inflation, chief strategist chris campbell is here on what he's expecting from the high ily anticipated two day meeting kicking off today. we're coming to you live this morning from the milken institute global conference in
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take the savings challenge at xfinitymobile.com/mysavings or visit your xfinity store and talk to our switch squad today. so many people are overweight now and asking themselves, "why can't i lose weight?" for most, the reason is insulin resistance, and they don't even know they have it. conventional starvation diets don't address insulin resistance. that's why they don't work. now, there's golo. golo helps with insulin resistance, getting rid of sugar cravings, helps control stress and emotional eating, and losing weight. go to golo.com and see how golo can change your life. that's g-o-l-o.com. maria: welcome back. pfizer earnings have hit the tape. let's get to cheryl with the numbers. cheryl: strong beat for pfizer, coming in at a buck 62 on an adjusted basis, the street was looking for $1.47. that's a 65% or so jump in earnings per share year over year, that's pretty strong.
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25.7 billion in revenue, that is a strong beat, i'll explain the stock price movement in a minute. street was looking for 23.86. again, about a 70% jump in revenue year over year. it's the guidance that you're in the stock reflected right now, they're cutting the full year, fiscal year guidance. part of that they're saying is over an accounting change, so it may not -- this reaction may be knee jerk from the street right now. they're talking about russia because obviously they supply aa lot of medications for russia. they're saying they're going to continue to supply medicine to the people of russia and they're talking about vaccines. they're going -- they're on track to fulfill their commitment to deliver about 2 billion he doses of their covid vaccine to low and middle income countries for the rest -- for the year, excuse me. again, it is the guidance that we're getting from pfizer, maria, thats is sending the stock lower, now it's down more than 3%. they're citing an accounting change. as i send it back to you, a lot
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of talk about paxlovid, 2% jump in sales there. the revenue number, 25.66 versus i rounded up a little bit, 25.7. 25.66. got to be specific, maria, when talking about billions of dollars many back to you. the stock is down 2 and three quarters percent. pfizer had an incredible year, cheryl. we'll be watching that. thank you so much. of course, one of the big stories of the morning, the federal reserve kicking off a highly anticipated two-day meeting where the central bank is expected to raise interest rates by 50 basis points. jay powell told us his fight against inflation is real and he is going to raise rates aggressively. this as citadel founder ken griffin yesterday here at the conference said the fed needs inflation to drop to 4% this year to avoid a recession. he says the questions are out and we will see the next couple of months will tell us a lot is what he said yesterday on stage. joining me now is chief
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strategist chris campbell. he's the former assistant treasury secretary for financial institutions, chris, it's great to see you. thanks for being here. >> it's great to be here in person. maria: it's nice to gather once again. you're expecting a half point hike. what is the impact of that in terms of the economy? where do you think the sectors are that actually see an impact first. >> first of all, i think it's not going to evade recession, i think we will likely hit recessionary points. higher interest rates are obviously going to drive mortgage rates down and could also really affect -- maria: mortgage rates up. >> rates up and drive real estate down so you could have a real challenge in real estate market. it could have -- it's also typically, at least right now it's trending that tech may struggle as well as the fed tries to dial in interest rates and try to get inflation under control. maria: we saw last week the gdp in a contraction for the first
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quarter, 1.4% contraction in the first quarter. i know that that was the worst quarter in two years. but we're going to get a he revision. we'll see if we get a revision. is there a chance we get a revision to show growth, that significant a revision? >> highly unlikely. probably unlikely. maria: we've got a contraction for the first quarter. >> we do. maria: do you think we'll see a contraction in the next quarter. >> i do. maria: so we're in recession then within three months. >> i do, yeah. unfortunately, i think we're headed in that direction. i think the federal reserve, chairman powell, great guy, someone i worked with at treasury. but has a -- he's a slow and steady guy, a consensus builder, he'll hit the 50 bips we expect in the next day or two and we'll see how it goes but, yeah, we're going to go through difficult times in the economy. maria: you studied and worked on financial institutions at treasury. what's your sense of the
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regulatory environment? is it getting tougher here for financial institutions, do you think. >> yeah, i think across the board financial regulators are he rechanging and recalibrating in a way that makes it more difficult for financial institutions. look, no one wants consumers to be harmed. regulations can be good. over-regulating can be difficult, though. we've seen a lot of challenge as the s.e.c. and fesc and fed are moving in a direction that certainly is opposite of where we were in the administration. maria: we're showing a graphic of where the tankers are stuck in the water, unable to low and unload around shanghai. that's been an issue for earnings and the economy and inflation is at 40-year highs. you've got everything costing more money. do you see any alleviation there. >> i think it's important to note that the federal reserve and a policy makers in d.c., there's a lot of things that are
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absent what they control of what will drive the economy and certainly inflation and you mentioned supply chain which is a really good example of this, russia and ukraine is another example. it's outside the federal reserve's control and outside of washington, d.c.'s control. with some leadership from d.c. we may be able to get supply chains under control but there's external factors driving the economy that will force the economy in some troubled times over the next several quarters. maria: the news is not good, unfortunately. it's great to get your insight. >> great to see you. maria: thanks very much. have a good rest of your milken adventure. >> you too. maria: thank you. we'll be right back. stay with us. it sure is. and i earn 5% cash back on travel purchased through chase with chase freedom unlimited. that means that i earn 5% on our rental car, i earn 5% on our cabin. i mean, c'mon! hello cashback! hello, kevin hart! i'm scared. in a good way. i'm lying. let's get inside. earn big time with chase freedom unlimited with no annual fee.
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maria: welcome back, time for the hot topic buzz. the met gala slammed for being tone deaf. i'm talking about new york city mayor eric adams, the hollywood and political elite celebrated gilded aiming glamor as americans struggle with rising cost on nearly everything. new york city eric adams taking to the red carpet last night with fresh pedicure and political statement with his custom jacket, watch this. >> i wanted to use this moment to talk about the countless number of people that are dying due to gun violence. maria: okay, so he's talking about gun violence, ryan.
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he got a manicure and pedicure before the met gala. is this tone deaf with inflation year high and the economy on the verge of recession? >> he looks out of the great gatspy out of that picture let's be honest. i almost came with defend brooklyn t-shirt, probably not a good idea. we know murder rates are up, crime is up. i'm not impressed, maria. maria: mitch. mitch: how about a jacket that says let's fix the ridiculous bail reform laws? something that says protect our streets and certainly there are deaths and tragedies due to guns but what about innocent people who are pushed onto train tracks, what about people who get stabbed in times square?
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we have a lack of law and order problem in the city and and i think it's a bigger issue than just guns. let's refund the police. maria: elon musk attending gala with his mother. the next hour of mornings with maria begins right now. ♪ ♪ maria: good tuesday morning, everyone. thank you so much for joining us. i'm maria bartiromo coming to you this week from los angeles and the 25th annual milton institute global conference with thousands of investors and leaders from across the world are meeting here this wick to hash out issues of the day, policy and digitization of our world. the meeting kicked off with 40-year high inflation and the expectation of interest rates
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going much higher as we are expecting the fed to raise rates tomorrow by half a point. and good morning, everyone, we are live here at the hotel on day one of the much anticipated federal reserve meeting which kicks off today, we are looking at all segments of the economy for the impact of those higher rates, coming up we will talk with ceo mike wineburger is here and pam leadman will join me. let's check yields and interest rates which are pulling back from a major high yesterday. yesterday the ten-year history closed at the highest level since 2018 and this morning at 2.970%, that's down 1.1 basis points. first-quarter earning reports are coming out, pfizer came out in the last hour. the stock is lower, investors
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expecting reports after the closing bell from starbucks and lyft and uber will be out as well. we are still in peak season for quarter results. the nasdaq down 51 points right now after stocks closed slightly higher yesterday. it was a fractional move across the board but the dow up 84 and tech did well. nasdaq was up 201 points at the close, one and two-thirds percent yesterday. the s&p 500 higher by 23. european market this is morning look like this. take a look at the entozoan where the ftse 100 is lower by 61 but the cac in paris sup 8 and the dax index in germany higher by six and a third. fractional moves there. in asia overnight, we have the holiday in china, the shanghai composite closed and other major indices down fractionally pretty much across the board. a leaked draft of a supreme
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court opinion released by politico suggesting that the court may move to overturn roe v. wade and planned parenthood versus casey calling egregiously wrong from the start. protests forming outside of high court right now. we do not have any confirmation on this political report and we do not know if this is truly political and leaked to try to sway voter opinion ahead of primary season, of course, began today with the ohio primary. mornings with maria is live from the milton institute global conference right now. it's time for the word on wall street, top investors watching your money, joining me macro adviser mitch roschelle and payne capital management ryan payne and garthman letter editor denise garthman. denise, let me kick things off with you as we await the federal reserve and two-day policy meeting. what do you think will be said
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along with a 50 basis point hike? we are expecting half point hike, of course, yesterday here at the conference the founder of sidadel ken griffin the inflation needs to hit 4% this year to avoid a recession and he said the next couple of months will be telling in terms of how aggressive the fed can be. yields this morning are down 1.1 basis points on the ten-year sitting at 2.97%. what's your take on the meeting? >> i don't think there's no doubt we will go 50 basis this time and 50 basis points next time. the fed has been far too stationary for too long. inflation is a big problem. pay attention to crude market. it looks like it wants to go higher again. grains have been going higher, fertilizer prices are very high and weather has not been
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exemplary for the growing so food prices are going to be higher. they have real problem with inflation and not going away any time soon. i can remember the ten-year had a 14% coupon and couldn't give it away. the fed will tighten monetary policy. ken griffin is probably on the right side. maria: 14% interest rate. that's some number. ryan, you were not around when the ten-year was at 14%? >> i was but -- maria: admit it. you were? well, look, i think, you know, you have to look at this economy
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as being bifurcated, right, the demand side is still pretty good consumers are spending money, the april job's report is due out friday 8:30 a.m. when we are all hands on deck for the friday report, economies are looks for a gain of 400,000 jobs. assess the economy from your standpoint? >> yeah, this is what i've been talking about. i get inflation, inflation. everyone knows it exist. we know it's high and markets do price in everything, right? we are looking at ten-year treasury at 3%. it really does come down to consumer and i think it's just going to show you again that the consumer is extremely strong. we are definitely going to 3.5%, we will create 3 to 4 million jobs this year on top of that and if you look at job openings, the report will show you a hundred thousand job openings. i was at the airport again last night sitting on the tarmac because they don't have enough
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people to unload the planes. i think the consumer will continually stay strong here and i think that's going to offset all of the conversation around inflation. let's be real right now. if you look at the markets they are on a spectrum. we have disrupted technology, nasdaq is in a bear market, anywhere from 20% to 70% depending on the stock or index but then you look at international stocks, they are down 12% for the year and value stocks down only 2% and as denise mentioned commodities are in a raging bull market. you're in a correction and i will put my stake on the ground here. consumers will stay strong and gdp will pick up, inflation will come down a little bit this year which is good and i think that's very optimistic. i'm extremely optimistic and denise garthman your pocket square looks fabulous on top of everything else. >> thanks, ryan. maria: it looks terrific.
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mitch, housing is really, you know, so sensitive to rates, you have the 30-year fixed rate mortgage at 5.1% and that's down from the highs recently for the week april 28th, down from 5.11% last week. which has been the case with 5% mortgages. do you think that has dampened this market and what are you expecting in terms of the state of housing? >> i think it's cool down the housing market a bit and i would bifurcate those who are cash buyers and those borrowing money and those buying money which are essentially first-time home buyers, they were getting squeezed on price gains and i'm hoping that we are seeing slowdown on year over year. we still have a massive supply demand imbalance. we have outsize demand for
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people and limited supply. two-month supply of homes. anybody is predicting that there's a housing bubble, the last time we had a housing bubble there was 14 months of supply of housing on the market. so i don't see a bubble but i do concern myself with first-time home buyers because they are important to the american dream and they are the ones getting squeezed the most between inflation and higher mortgage rates. maria: yeah, but isn't it also a supply issue, mitch, because you don't you have the kind of supply that you want to see to actually make a dent in prices? prices keep staying high because there's not enough supplies, right? >> right, the good news we are entering the all-important homesale season and we are starting to see a bigger and bigger supply of homes hitting the market. i think a lot of people were holding back putting their houses on the market, wait, i'm not going to do it this year because prices will go up.
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now there's fear among home sellers that prices could fall so they are starting to put their homes on the market. that's a good thing for the the housing market. i don't see house prices falling but if they stay where they are and more people can get into homes i think that's a good thing for the economy. the first thing that you buy homes you run to lowes and home depot and that's what drives the economy. maria: there's such a ripple effect when you do buy a home. gentlemen, thank you so much, denise garthman, great to see you, mitch and ryan you're sticking here with me and i'm happy about that. don't mover. we are going the take a short break. when we come back, we are live from the milken institute conference. a lot of conversation about allocating money right now as well as policy. i will be talking with texas congressman michael mccaul on the greatest threat to the american homeland and chairman wineberger is here and pam leadman will give us her sense of real estate in housing, don't
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miss a moment of it. you're watching mornings with maria live from la. ♪ ♪ ♪
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>> what is the president's priorities, stopping potential terrorist attacks or letting migrants come? >> when we were reporting the number of people on watch list. again, peter, the number 1 job of the president of the united states, the vice president and certainly the secretary of hemland security is to keep the american people safe. maria: well, these 42 people are in the country now, fox peter
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doocy holding white house press secretary jen psaki feet's to the fire as the administration administration admits it has tracked 42 members of the terror watch list that were apprehended at the southern border. dhs secretary mayorkas told lawmakers that he could mt. say whether or not any of them had been released into the united states after being encountered at the border. my sources sent me this picture of the chaos unfolding in this entry point in el paso refusing back to mexico telling border agents title 42 is ending and they are coming in and the number of migrants pushing forward and the police trying to stop them. ryan, this is an unsustainable situation, you have 2 million people apprehended and 1 million apprehended in the last six months at the border. >> yeah, that's a lot of people, maria. and it also goes to why we are
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playing policeman around the world when we have problems here at home that we are not talking about autoall. about that at all. i think that's a frightening state of where we are right now and, you know, the focus seems to be in the wrong place with this administration. maria: mitch, you know that we have taken this show to the border, i've been to el paso, del rio and i have seen the increasing numbers of people, what you're seeing on the screen, 1 million people apprehended. these are just the people that wanted to be apprehended because they know that once they are apprehended they will be let in, released into the country and told, oh, come back for a judge to decide your fate and oftentimes they just won't show up again. this number does not include the got-aways.
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those people who were seen on surveillance cameras and they got away and they're in the country, probably 42 individuals on the terror watch list were -- were among the got-aways. your reaction why it is that this administration will not have any standards at the border? mitch: one word, accountability. you've been to that border four times, our vice president who is supposed to be responsible for this hasn't been there once and you mention got aways, i wrote down in the notes in front of me. got aways, that's the biggest thing that concerns me and when the secretary was on the news channel over the weekend, he didn't have good numbers at all or any numbers about the extent to which there are got aways. he recognized that it's a problem and if you recognize there's a problem, you have to do something about it. seemingly we are doing nothing about it.
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we have the most porous boor that i can remember in my lifetime and clear and present danger that we are letting people in that we know nothing about. the ones who are being apprehended, you're right, they show up with the index card political asylum because they know the way the process works but the drugs and the other things coming across the border that we don't know about is the thing that's most frightening. maria: i'm glad that you mentioned the drugs because when i came back from the second trip from the border i came back with a lot of information about the fentanyl coming in and by the way the pictures that we are looking at right here this is 3 chinese individuals being apprehended at the border and ii think this is notable because the majority of people apprehended at the border are from the northern triangle countries so you're talking about guatemala, el salvador, but to see people coming from so many different countries, china
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included, one of the border sources told me that some chinese individuals are willing to pay $50,000 a head to get into the country and they were clearly hiding, they don't want to be apprehended, they were trafficking elicit drugs, fentanyl is made in china. underlying components of fentanyl made in china and traffic through mexico. so another situation where we are not hearing any commentary whatsoever from this administration even though fentanyl has killed 100,000 people in this country where they overdosed and did not mean to take drugs but commonly used drugs were laced with fentanyl. mitch: and that is incredibly frightening and this administration is having debates on whether or not we should be wearing masks for covid-19 for which we have no shortage of therapies and yet fentanyl is walking across the border in quantities that could kill populations of entire cities and the tragedy of a hundred
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thousand people who died of fentanyl-related overdoses potentially could get worse if we don't control this problem right now. maria: yeah, and i'm going to keep on this and keep the spotlight on this. i have friends that have lost children to overdoses and they've asked me to keep talking about it and we will. we are coming live from the milken institute conference and we have interviews with big money managers as well as politicals, texas congressman mccaul is here and join me to discuss what makes up the biggest threat to america right now. don't miss that. it's coming up. ♪ ♪ ♪
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maria: welcome back, we are coming to you live from the miklen institute global conference here in los angeles, california, business leaders and money managers from across the world are meeting and discussing issues that the global economy is facing and how to allocate capital. texas congressman and member of the house foreign affairs and homeland securities michael mccaul is here. he joined me on the border crisis, china and the greatest threat to america right now. good to see you at the milken conference, i know that you have panels and talking about foreign affairs. let's talk with china, number 1 adversaries, what points are you
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going to be making at the conference about china and what should our audience understand? >> i think the long-term threat they pose to national security, they want to dominate economically and militarily and as we look at what putin is doing in ukraine, she's looking at taiwan and we saw them broker together at the beijing olympics with mr. putin and chairman xi standing side by side with the compact against the west and nato. we are very concerned about taiwan being the next shoe to drop. they've been held up for two years and we are imploring our state department to get the weapons in. maria: do you think that they will invade taiwan near term this year, next year? >> i think their timeline is as biden is in office. they saw weakness afghanistan
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and allowing putin to complete pipeline in europe, they saw weakness and then they started bringing troops in. so xi is seeing a weak president as well but they're very clever, they are far more clever than putin. i can see them also using deception and economically as a weapon. maria: let me focus first on the economic threat because it seems over and over again we are so reliant on -- on products that are so important to this country that are made in china. i mean, during covid we saw that 90% of components of prescription drugs are made in china. let's talk about semiconductor chips and how we are going the move the needle in terms of getting those factories in america so we don't have to rely on foreign actors? >> that's right, and i think covid opened our eyes, god, we
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are so dependent on china for critical supply chains like medical, minerals, they control about 85% of the global market. and then when you get to advance semiconductor chips we have to start manufacturing more in the united states and not overseas or even close to china. taiwan manufactures 90% of the semiconductors. idea from former secretary mike pompeo and wilbur ross to i recent vise through grant program and already you have seen samsung in my home state about a 20 billion-dollar investment, intel about another 20 billion and micron, they do dod weapon system chips, 100 billion-dollar investment in
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the united states. they'll bring jobs, manufacturing here and also protect our national security. maria: i mean, it brings me right to the question of the border and i know that you just got back from the southern border again and you've been there many times. what we showed this weekend was border agents apprehended 3 chinese individuals, they spoke mandarin only and they were trafficking narcotics. what is going on? i know that the ccp wants to overtake the united states as the number 1 super power but is this part of it? you've got covid, you've got fentanyl, can we stop this? >> well, we can and we were. the previous administration i worked on the migrant protection protocols that this administration rescinded, remain in mexico was working and we need to go back to that. in fact, i hope the supreme court will affirm the fifth circuit ruling say you have to reinstate this. but with respect to china, what
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a great foreign policy for them. they can export the precursors to make fentanyls in mexico and brought into the united states killing so many of our young people. we've apprehended enough fentanyl to kill the entire population 7 times over. it's like the opioid war reverse so china is putting the opioid in our backyard. they don't want to talk about the bored. border. if they lose title 42 they will have 500,000 people in 5 weeks. maria, my hem state of texas, we just can't absorb this anymore. maria: when you look at homeland today, homeland committee, foreign affairs committee, what are the most important threat that is we need to understand? >> foreign nation adversary states. every day i wake up, what is china doing, what is russia
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doing, well, we seem in in ukraine expanding. what is iran doing? this administration wanting to cut a deal with iran and using the russians to help negotiate this, it's absolute insanity and then kim jong un firing off two icbm rockets and the chinese have already filed a hypersonic weapon that circled the globe, landed with precision, they can attach a nuclear war head to that, we don't have that capability in the united states and here is the kicker to me, the hypersonic was built in the backbone of american technology, whatever we gave them, they took. they steal it and we sell it to them. we have to stop selling them our technology, goes to military civil fusion and builds weapon systems that they will turn against us. maria: on iran, will the u.s. get back into that deal? is this administration going
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around congress so that they can jam this through? >> yes. i've had the briefings, they don't want to talk to us. i think they will violate the law by not giving the agreement to us in advance or having a vote by congress and you will see, you know, a lot of loud voices. ly have a resolution disapproval in the house. right now i think the deal is being discussed about whether to waive foreign terrorist designation on the irgc. this is general solemani's killing machine. irgc. if we give them billions of dollars to throw in terrorism in the middle east, it'll be the most dangerous things and the entire middle east will want their own nuclear bombs. maria: that's a good point. my thanks to texas congressman michael mccaul. we will slip in a break and we are looking at the fed ready to
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fight inflation. we are expecting a half-point hike announced tomorrow. thornburg president brady is here to talk about what he's expected in two-day meeting which is kicking off this morning. we are coming to you live from the milken institute conference in los angeles, we will be right back. we got this! life is for living. we got this! let's partner for all of it. edward jones what if you were a global energy company? with operations in scotland, technologists in india, and customers all on different systems. you need to pull it together. so you call in ibm and red hat to create an open hybrid cloud platform.
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maria: welcome back, big move in interest rates yesterday. ten-year treasury topped 3% for the first time in 2018. it's sitting at 2.97%, this, of course, on day one of the federal reserve highly anticipated two day meeting today. the central bank is expected to raise rates by half a point the fight the record 40-year high inflation, we are expecting that announcement tomorrow at 2:15 eastern. next meeting june 14th and after that meeting july, september and december, many of which are also expected to see a 50 basis point
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hike. i'm joined right now by the president of thornberg, jason brady, jason, great to have you, thank you very much for being here. >> huge pleasure. maria: i want to ask you about your own business. >> sure. maria: in terms of what kind of activity you're seeing, first give us your sense of rates and what will happen at the fed meeting and what's most important from your standpoint? >> sure. the fed is behind the curve and they've more or less admitted that. transitory out the window. they will decrease their balance sheet. we are in the midst of a big experiment, right? we've never seen the fed shift balance sheet. i'm watching how this is going to affect the real economy but certainly the financial economy, the rates rising very quickly. it's -- it's a rocky road out there. maria: yeah, the other economic signals are mixed because you
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have the jolts report out this morning at 10:00 a.m. eastern economists are predicting job openings hit 11 million down, slightly down from february. we are looking at job's report this friday and gain of 400,000 jobs added to the economy with unemployment rate down to 3 and a half percent jason. how would you assess the the broad economy today as we watch the fed undertake this experiment as you call it? >> one reason why we are not going to see even higher jobs created is there are no people in the labor force that -- the number of folks looking for a job is so much less than jobs out there. but jobs, people should understand, jobs are not a leading indicator, they are a lagging indicator. once employment start to roll over you are in a challenging time. one indicator i was interested to see this week was survey of
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manufacturers. they went from essentially saying everything is amazing, it's great to, everything is okay, good, and that rate of change may sound nuance but that tends to be a leading indicator for a slowdown and i think that's what i'm watching to see how the effective rates is working into the economy. maria: that's what we are watching in the earning season. pfizer reported today their first quarter and the company reported a beat on earnings and revenue and yet the stock traded down and right now it's down about one and a quarter percent in the premarket, after the bell we will get starbucks, lyft, air b&b and give us a sense of your business and what you see in 2022. it's all about the guidance and how ceo's are viewing the future. >> and the future is as the fed has been wanting to say unusually uncertain. it's about rate of change and markets work on rate of change and just like ism conversation,
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earnings weren't as great as not too long ago, they are not terrible and the consumer is a strong pocket, you lack at bank earnings, mpl's and losses at the consumer level are very low. on the corporate level, earnings are slower and start to move into the market to looking at revenue to looking at income. so folks with great revenue and no income, not so good. when we really move from income to balance sheet, that's when you know things may be in real trouble. that's what we are looking for in 2022. maria: what will drive your business in the coming 5 years? >> we are turning 40 this year so i'm here as cbo to drive, what's the next 40 years is going to look like and the rate of change in this industry is so fast, meeting client needs is so important and changing in realtime because of markets, they are changing in realtime
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because of technology allows them to see and do and so our job, however, is still -- it's to take the technology and deliver for 40 years which is good client outcomes. we have more tools in the tool box today than we had marketwise a few years ago. we have more tools in the tool becomes today because we have great technology and we have invested than we had 5 years ago. all of that is increasing rate of change but it's ultimately delivered for clients. maria: so do you grow by increasing a um or grow by acquisitions, what does the next few years look like at thornburg? >> i think acquisitions in this industry are really, really hard. basically you take a whole bunch of talented people and you jam together a whole bunch of talented people. sometimes it works and sometimes not so well. so driving culture, driving excellence is what's going to drive organic growth. we have never done an acquisition in 40 years, we may, of course, there's, again, the industry is changing quickly. i doubt that's going to be the
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way to really be successful in the next 40 years. delivering as we have in the market that's hard but the more things change the more things stay the same. basic balance and portfolios. maria: where do you allocate capital right now? >> as a business there's no doubt that the table stakes is tremendous amount of technology. if you see any business, knowledge-base business like asset management, the gains you can get from an information perspective in really getting technology right are huge. it is not going to drive tremendous productivity but it is going to drive what drives our business, which is great collaboration and great information flow. it's actually a capital intensive business believe it or not even though it seems, hey, it's a bunch of people in the room looking at screens. maria: jason, great to have you, thanks very much.
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jason brady joining us there and we've got the stock picks on screen. coming up unprecedented leak from the highest port of the land over the fate of roe v. wade and how the nation is reacting, live in the milken institute conference in los angeles. we will be right back. ♪ ♪ ♪ ent a first in class therapies that focus on slowing the progression of this
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maria: welcome back, well, a stunning report on an unprecedented supreme court leak last night. it is rocking the country, politico obtaining a draft majority opinion suggesting that the high court is said to strike down roe v. wade. justice alito writing in part, row was egregiously wrong from the start, reasoning was exceptionally weak and the decision has had damaging consequences. row and casey, we now overrule the decisions and return that authority to the people and their elected representatives. meaning it would go to the state. democrats seen leak seen as last-ditch effort to win over voters against the gop ahead of midterm elections. coincidently it was leaked on day one of the primary season, the ohio primaries are today. republicans are saying that those cheers are at the expense
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of the integrity of the highest court in the country. joining me right now is constitutional attorney and member of the supreme court bar mark smith. thank you very much for being here. what's your reaction to this? >> well, it is a shocking breach of judicial ethics whoever did this because remember when you deal with the court system, it's not just the outcome that matters but the process and you want to follow the rule of law and that's a violation and calls in integrity the court in this case because of what happened here. and i think it's a terrible example as to who did it, we don't know but it appears as if someone has decided to take matters into their own hand which is a terrible consequence for the whole not just the judicial system but the whole country. maria: well, the substance of it, you believe the substance of it is suggesting that they would, in fact, overturn roe v.
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wade, that you believe? >> well, the only evidence that we have is the february draft. remember, member, it's not unprecedented for justices to vote one way in the conference after an argument and ultimately change their mind. i think the most famous example of this is in 2012 where john roberts changed his vote, it appears to uphold obamacare, so it appeared as if obamacare was going to be struck down then there appeared to be a tremendous amount of public reaction to the oral argument suggesting that the case would be get rid of obamacare and next thing you know when the decision ultimately is released it turns out it's upheld with justice john roberts in the majority apparently switching his vote in mid process. so here we have a draft from february, maria, we don't know where it stands today. we don't know if that draft is still or the outcome is still the outcome. that's a terrible consequence to this. maria: yeah, and that's my
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point. >> terrible consequence because we don't know what's happening. maria: right, it's a draft of notes and it was leaked. i'm just not buying it. call me a skeptic and i do look at things, some things skeptically but in this particularly case it's just -- what a coincidence on day one of the primary season as voters are going to the polls in ohio and we are, what, 180, 85 days from the midterm elections, this leak happens as a last grab to change voters' minds knowing that the democrats are about the get slaughtered because of bad policy. >> yeah, you can certainly see the situation where that's the case and hopefully the facts come out and we find out who did this and why they did this but i would say it's not irrational to think that someone in the supreme court building decided that they were unhappy with where they saw the case going and decided to take things go
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their own hand and tried to change the trajectory because remember again it appears if that process worked once before in 2004, not a leaked document but bringing political pressure on chief justice roberts causing him apparently to switch vote on the obamacare case, they have a precedent in a way to say, hey, if we bring proper pressure at the right time maybe we will change the trajectory of a case and the outcome of the same matter. maria: right, all right. so put the process aside for a moment, mark. let's talk about what you are seeing in this mote in terms of sending this back to the states, explain that and what that would mean in terms of roe v. wade. >> well, if the draft we saw is the final decision, what is basically saying that we the supreme court -- maria: which we know it's not, it's from february. >> that's right, that's right. assuming this is the final decision which we don't think --
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it probably will not be because these things tend to be edited relentlessly by all the justices, assuming it were it indicate that is the supreme court says we will no longer be in the business of abortion, we will get out of this. we are going to let we the people decide decide in each individual on the question of abortion and we never should shd have weighted into this problem in 1973. there was no basis in the text of the constitution or in the basis for america and we need to get out of this business right here and let it go back to the political process. that appears to be what that draft opinion is saying, we don't want to be involved. we never should have gotten involved with this and we will fix the mistake that we the court made in 1973. maria: we don't know how many judges have weighed in, who has edited, who hasn't edited or
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this is an early copy of a discussion that was ongoing. we don't know anything in terms of the input from the highest court. what's your sense in terms of how something like that would get marked up over the process? >> well, the way it works is a justice is assigned the majority of opinion and he or she drafts it and circulates to all other eight justices and they all edit it, make comments and go back and forth and edit as collaborative process that gives ultimate and final decision released to the public, that's really it's really unfortunate that a draft got out because, again, we will never know whether or not this leaking caused an effect on the outcome. remember, maria, an opinion is not just two wins the case at the supreme court but also the
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rationale that's applied. the thinking that goes into it because it's not just about who wins this case and it's about other courts are going to do and follow for years to come and that's why the rationale and the opinion is so important because other courts will follow this again for decades after this and that's why the rationale is important in many as who wins the case. >> you confirmed my thoughts exactly which is we have no idea and this is just a dirty trick in terms of a political situation ahead of the midterm elections in my view, mark. we will find out more, more will be revealed for sure and we will hope to talk with you along the way. thank you, sir. >> sounds great. maria: all right, mark smith joining us, we will take a short broker and then the feud continues as escalates, in fact, in florida. governor ron desantis accusing business of profiting off of its
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work with communist china. he's zeroing in on one of the most important businesses for disney and that is china. it's the hot topic buzz. we are live in the milken institute conference.
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maria: welcome back. time for "hot topic buzz," the desantis versus disney
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slamming disney for coeds unifying up to chinese communist party desantis said disney has done a lot to partner with chinese communist party and has really made a fortune over there without raising a peep about any atrocities, he was talking about human abuses the region seeing slave labor take on disney one of the most important if not most important when you look at florida your thoughts. >> desantis bigger than life this sounds like he wants a big reelection win come november to really strengthen chances to be republican nominee for presidency i think on the road to presidency all rhetoric sounds like on a big campaign right now. and mitch i was talk about in fully so is popular phenomenal job building his reputation. >> i really enjoyed that "wall
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street journal" piece recently, mitch about taking us behind scenes of how he took on disney, and you know what executives within disney were saying end this issue, let's not let's try to get back on his good side your thoughts on the fact if willing to take on disney he is willing to take on anything right critical for the growth of florida. >> don't let the fact i am in new york right now i am a navy new yorker feel you i am now a floridian, he is a rockstar there, and don't forget disney took on him before he took on disney. maria: great point stay right there next hour of "mornings with maria" begins right now. . maria: good tuesday morning. thanks so much for joining us. i'm maria bartiromo coming to you from are california, economy here was among top performers of 2021 california grew in gdp 7.will% in 2021,
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behind tennessee and new hampshire, milken global conference 850 speakers debating whether or not federal reserve tloobl raise interest rates, not taking the economy into recession. >> welcome back i am live right now, in the hotel where the milken institute global conference is taking place this day one much anticipated federal reserve meeting, it is kicking off this morning, and we are expecting half point hike, to be announced tomorrow afternoon, looking at all segments for impact of higher interest rates coming up i speak with former global chairman and ceo of ey mark wineburger, also real estate the impact of higher rates coming up ahead of announcement markets on the move take a look at interest rates first, the yield on
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10-year, yesterday hit 3% highest level since november 28, we are seeing 2018 rather 2018. the u.s. 10-year now pulling back 1 1/2 basis points, 2.8966% first-quarter earnings flow from pfizer last hour, investors are watching pfizer with a double beat on earnings and revenue although the stock traded down after the numbers after the close tonight we will hear from starbucks, lyft, uber will report as well tomorrow stocks this morning looking at selling precious dow industrials right now down 29 s&p 500 higher -- down rather by 2 1/2 nasdaq lower by 2 1/4 points after a good day yesterday in fact growth was on fire yesterday once again, stocks finish higher on the day dow industrials up 84 nasdaq up 201 points the close, 1 2/3% higher for nasdaq s&p 500 higher by 23 at 4:00 on wall street european
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markets eurozone pretty much across the board, we are looking at -- fractional moves sfi.00 down 37 cac quarante up 26 from dax in germany, higher by 47, in asia overnight, holiday underway in china, shanghai composite closed, but other averages downs fractionally in asia, a leaked draft supreme court opinion released by politico last night is suggesting the high court may move to overturn roe v. wade and planned parenthood viruses casey calling roe quote gleamingslying one from the start protests formed outside the supreme court we do not have confirmation of this politicalo report do not know if this is truly politicalo, it was leaked he can to try and sway voters opinions ahead of elections and the start of the primary season there are many edits by justices before an opinion such as this. "mornings with maria" is live from milken institute global conference right now.
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. >> your morning mover dupont, take a look in, premarket after reporting a double beat first quarter, this morning dupont company i also cutting 2022 forecast on seams and earnings to offset the -- higher cost of raw materials, dupont anticipating ongoing lockdown to further hurt supply chain shortage resilienting in slower volume growth that is what we've been focused so much on guidelines from companies in the first quarter reporting season last week u.s. economy counteracted by 1.4% first three months of the year further raising fears of a reaction down the road, today the federal reserve is kicking off two-day policy meeting, we've been waiting for this meeting it is expected to raise rates by half a point, as fed tries to fight record inflation, joining me right now all of the issues of the day is former ey global chairman ceo mark weinberger a board member of johnson & johnson metlife
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saudi aramco joining the conversation mitch roschelle ryan payne. >> maria, great to see you in person. >> thank you so much for being here it is really feels good to gather again see everybody in person you are right, i love talking to you getting a great handle what is going on in the world you are on several boards you've been led ey so long. >> no, i know -- what are you hearing from all those sources in terms of the business climate today? >> a lot of uncertainty, you know i will tell you business as you've been talk become earnings side revenue side predictions for the year a lot of resiliency surprising resiliency facing unprecedented inflation so far able to pass it on the pricing has gone up, sooner rather than later not able to continue to do price increases, inflation by fed curtailing assets raising the
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rates going to have an effect. the interesting part now, as you know, this inflation is driven by not only great demand but restrictions on supply supply chain issues there very real, that is going to take longer to clear through, so i you know, i think year trying to thread the needle when recession or not not one to predict but i think by fed do everything to throw it down towards no growth, going to be a challenge not to go into recession. >> i keep hearing incredible tight labor market what are you hearing there go to pay up for workers, talent, because of this height labor market how did that happen? and how do you assess it. >> we learned really the -- hard to open it back up when doing that all this dislocation takes a while to settle out whether mothers having to come back to work what is left of pandemic, whether people who are i don't
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call it great resignation more a great reassessment as to what people want to do changing jobs, skill sets aren't matching up parts of of the world china still closed down, so i do think we are still going to have dislocation for a while, and i think the labor market is title jobs open but a lot of unemployed down to low pre-pandemic numbers in terms of employment, so that still has to sort through i think will over finance minister taking a bit. >> are companies changing the way to lure workers backing of to invest more in that regard? absolutely. and this is where the worry with inflation sticky because going from just a commodity inflation, to wage inflation, when you know all of a sudden prices come down wages are still elevated, good news a lot of lower paid people getting raises so going to have more money in pockets, you want tostay away from wage flakes cycle but i do think sticky they are doing that the other thing doing more training, a lot more money on
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training, letting them work with technology at home all good but all costs money why profits squeeze is coming at some point. >> the problem is also in your wages went up, up 8 1/2 to 10%, you have not getting a raise because of level of inflation. >> correct. >> eating away at wage increases i want your take about globalization, you have been all are on the world you have led ey all around the world 150 countries i remember covering business for 25 years, the whole question all the time was where is the growth where is the growth where is the growth, brazil, different areas of asia europe looking for growth. is that changed lar i've fink said globalization is dead. >> i think he meant it to really shake us up i don't think he meant dead i am giving remember 1.4 billion people in china, 95% of the consumers in the world outside united states 85% growth from united states can't be dead,
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that being said, the geopolitical challenges risks we saw in pandemic, have made people look at supply chains business look say you know what it was about efficiency just in time you will low cost now just in case. we need to get more protections we need to be parallel supply chains, so, people aren't leaving china maria if starting businesses china market they are still in china what they are not doing outsourcing everything to maybe china, taiwan other parts of asia to bring back to the united states, so we are seeing chip companies for the very first time being built in united states. going to take years to get a whole bunch of batteries chips everything to get everything from the united states never will be, you are hearing near sourings friend sourings sourngs i think going to see plants equipment moved back to south america to serve united states market, so there is more regionization less global thinking in terms of how supplying goods for protection, when we --
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resiliency. >> how long does this cycle take i feel we've been talking about the transition for a long time during covid we learned many understood before that but really understood impact 90% underlying agreements in prescription drugs are made in china, now we are learning how important semiconductor chips made in taiwan are to not just devices out cars homes et cetera, i know intel is going to have big plant in texas we are seeing this movement as you are talking about. but how long before that kind of a situation corrects itself? it takes years. doesn't happen overnight. >> it does you couldn't build iphone in united states at a cost where we could afford to buy it labor all over the world price here, there don't have workers to do it skill training going to take time to invest in the plant and equipment, chip factory takes five, six years to build you
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said johnson & johnson -- big pharmaceutical company, you can't get all the people what you are doing there you are going to parallel process other parts of the world that takes years to produce a higher cost model, even energy talking about we learned more about energy security as a key factor when you are think about where getting energy not just lowest cost going to take a while to go ahead and do that raw materials from china communist party is next question mark, you could pull out of russia easily everybody did around the u.s. big companies what if we have to put sanctions on china going to really challenge supply chains you have to be prepared for that now, now you know at least a possibility. maria: yeah is a great conversation, mark please come back soon, thank you so much. >> thank you, maria. maria: great to see you mark weinberger joining us, the report of an unprecedented supreme court leak rocking the country we are talking about the possible political moves
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behind it then we are at milken institute global conference the impact of higher interest rates speaking with president ceo of corcoran group 8:45 earn we are live in l.a. and we'll be right back.. . . living with metastatic breast cancer means being relentless.
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mean for the integrity of the supreme court? >> i got to say devastating, the chief is among all justices i think have a great reverence protective stance of this court but chief made it his mission to really make this court apolitical as possible even in one place 20 years that i've been in d.c. covering things that you couldn't get a leak it was nearly impossible to get something out of there, so for something to have mo mom entous, to come has to be unsettling for justices very protective of each other now looking at each other's clerks within court to say who did this i think chief will get to the bottom eventually. >> i got to say the democrats must be massively desperate to reach for this one, going into the midterm season and on day one of the primary season with voters going to the polls today in ohio, shannon let's
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talk about the actual contents of this this leek, memo isn't it true that there are lots of iterations of something like this judges have to weigh in walk us through the process, to question whether or not this is, as you know -- final as some in media are talking about. >> yeah maria you make such a good point this starts out the after they actually hear case a vote among justices only ones in that room know how vote goes down then the opinions are assigned writing starts, in that process, the justices are often trying to write in a way that will maybe persuade someone else to join their side change a vote that happens during the process but this draft i am not -- as legitimate looks like circulated in february all justices decide whether or not comfortable put my name on
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this vote on this sign it those things can change nearly two months old could have gone through a lot of iterations, as you said, before released not official until votes are cast name on paper comes out to officially from the court until we see that, we don't know exactly what this case is ultimately going to do. maria: right, so that that is the point i wanted to make, because you are talking about a draft of one opinion from -- from one judge. the justice who you know, is clearly of sort of a beginning draft which is going to be changed it rated throughout the court to leak something like this not i have giving us necessarily the truth. >> um-hmm, the thing is does say pin of the court meaning got at least five votes
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clearly the person who leaked this wanted people to know this looks like when we are head we will see the first thing everyone is going to do dicing into the court loves to watch the way do i is the take that final opinion set up against 98 page opinion of draft how similar different if changes if this is legit as led to believe i think the idea was to scare away conservative justices intimidate them i think going to hunker down vote more solidly after this. maria: or scare away voters who were going to vote for conservatives in midterm elections in primary races shannon you think we are going to find out who leaked this how -- >> i do i think of such i do i think such monument the chief is employing to be on a mission to make sure he gets to the bottom of this, cbs reporting could be fbi involvement we will see. >> shannon thanks for weighing
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in, we love your reporting. and long time reporting on supreme court we appreciate your insights for sure thank you shannon quick break power of blockchain ioo global ceo is here to talk to me about crypto and blockchain how technology is helping to solve a lot of global crises right now, stay with us. . ♪♪ worker's comp can crush a small
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cardano,. >>. >> . maria: welcome back, talking crypto and blockchain, bitcoin this morning down, as you can see, but also down 40% from all-time high 68,000 dollars which was reached in november now, as you can see, 38,433 joining me io global ceo and cardano founder charles hoskinson, io global behind cardano most advanced blockchain thank you for being here. thank you for having me on tell me about your company what you've been able to do in terms of of the blockchain i want to get thousand solving crises what you are doing to
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address it, but first tell us about the business. sure, sure, sure. i have been in state since 2011 those nobody carried about cryptocurrency small club kind of new each other seen. >> you -- >> i was there before dollar trade on reddit, bitcoin, talk those things in those days we were trying to solve problem of email for money just wanted to be able to send value to people, usually in about counterparty risk what happened people said a great idea we want promiseability like javits 15 wreb browser facebook youtube amazon, so 2013 help cofounded ethereum contracts could could crowd tales nfts all things you see today exciting the problem with those technologies they don't scale when you start
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adding lots of users want a truly global system millions eventually billions solve real financial problems macro finance africa, el salvador, gobble trade esg compliance these types of things you system don't the technology to do that. >> 2015 i said let's start a company do first principle research opened labs everywhere one in tokyo, the, edinburgh. >> these things we wrote 135 papers mostly peer rufz built up scientific of the industry transformed into codes like project for rockets these things, and created a protocol cardano launched 2017 has been up since then we have 3 1/2 million users across the
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world, ethiopia burundi, kenya, over united states. >> incredible success story at cardano let me ask about blockchain in general. >> sure. >> what can blockchain do for global business what areas do you think the blockchain is going to be most effective. anywhere you have a consortium of arcs have to work together don't nell trust each other need to work together to perform blockchain best at could be voting system, yet who counts votes can be supply chain o who audits us to make sure compliant could be a medical record system you get on how does doctor in aspen get your medical records if you are unconscious, simply problems but in collection because of globalization because of lack of trust, hard to solve we solve them having a central institution bank body, in charge but by being
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in charge have numerous influence we saw with social media, for example, control speech in cases, what you can do blockchain removed that central party basically have a common logic work to des we started finance first application now looking at healthcare, communication, telecommunication different marketplaces you said one of the keywords that is slowly, do you worry, that international economies are faster in terms of coming up with new regulatory boundaries usages that getting out of the away from the united states. >> that is an interesting question we have seen global trend where, the status of the dollar is the world reserve concurrency we print so much money because of recent political events diminished
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quite a bit not like what british went to american standard from u.s. chinese standard, there is a global desire to move to trans national, not voluntarilied by just one nation nobody really wants china standard to replace us, so blockchain is another example, of compromised solution if you can't have another empire take over can you have transnational framework decentralized fairer rules for everybody everybody treated equally no one left out of that ordinary. you are cofounder of ethereum tell me ethereum versus bitcoin others what should we buns different cryptics why create ethereum. >> generations bitcoin was great, the problem with bitcoin only can do limited set of things push value around no programmability there why you see example
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before jobs came to build winds you couldn't swashing when java script came you could interact with them youtube facebook came from so forth, similarly ethereum we had a smart contract support programmable money issue your money draw financial applications don't require a bank and intermediary how do we make them interoperable, governance layers to foifth how to advance system. >> congrats to you thank you so much for joining us. >> this was a lot of fun. fun for us, charles hoskinson joining us. >> we talk about the fed upcoming rate hikes announced tomorrow the impact. stay with us.
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>> . maria: welcome back now this alabama police issuing are after warrant for corrections officer they sayheld innato escape. >> police say vicki white was last seen on friday when she said she was taking inmate casey white for a millionaire evaluation at coin courthouse authorities finding out no evaluation or hearing ever scheduled casey white serving 57 years for series of crimes was awaiting trial for capital murder. the sheriff says there i go no evidence the two had romantic relationship but it is still possible. >> weekend of gun violence forcing official to cancel perform at moulin rouge in chai sunday at least 32 people shot across the windy city 8 fatally on the west coast
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brazen hop solicitors grabbing as much as they can care at san francisco walgreens one behind cash registrationer grabbing nicorette gulf of mexico from shelves after that walked out the front door holding their loot. tesla recalling more than 78,000 mole 3 vehicles, covers 2018, to 2022 saying will perform over air software update to fix free of charge. >> finally, the holiday politico elite called out for what many say a tone-deaf celebration of gilded average grammar, at gala 1900 era marks a time rich became -- well -- mega rich many lower lower class suffered tickets 35,000 dollars apiece versace
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degrees kardashian homage to marilyn monroe blonde bombshell sang happy birthday to jfk in 1962 her sister kylie wore wedding address to the event that kim kardashian outfit died it like didn't eat sugar three weeks on loan from ripley's believe it or not museum had to get in it and did. giving up carbs, sugar flour three weeks hard that is a hard thing that is awesome looked absolutely stunning. i mentioned earlier elon musk was there took his mother how sweet is that. >> i saw that, yeah --
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>> all right. thank you cheryl we were talking federal reserve all morning fed today is kicking off highly and i two-day meeting, the central bank is expected to raise interest rates, tomorrow, by half a point, 50 basis points, in its efforts to fight record inflation. today, and a lot of conversation around what happened here yesterday citadel founder griffin said fed needs inflation drop 4% this year to avoid recession said we are learning a lot if fed will be successful joining me president ceo calamos investment john koudounis. >> 43 billion under management. >> it is very important i think fed doing a great job in telling what they are going to do not surprise tomorrow probably raise interest rates
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by 50 basis points, in my opinion, probably one more time then a pause everybody talked about about it go, go, go, you have to look at data it is a very difficult position to try to stop and land this like a pause 100 miles per hour on -- you are trying to slam on the brakes, chances are you are going to get in an accident you got to slow it down and try to, you know, thread the needle if you will, no one has been able to do it before, it is not just raising interest rates people don't understand, what are they going to do in terms of -- stop by slow down buying he mortgages especially long-term mortgages if you stop buying those people forget, today, 200 basis points higher than mortgage rates a year ago if you stop buying mortgage rates going to increase interest rates mortgage rates buying homes what is is that doing to
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this economy a big part of economy, so, depends on language what they do in term of slowing down about what they buy listen to data try to soft landed not easy hasn't been done. we wish them luck. i think you explained so well. ep in terms of of the car the -- you are right you are talking about buying mortgages, look, they were buying securities, up until they hiked interest rates the first time now you are talking nine trillion-dollar balance sheet, they are supposed to be unwinding. >> that is having a huge effect a huge effect, way more than how much raising interest rates, so, depending how they do that will determine how quickly they slam on brakes if too quick going to be hard landing going to choke the economy, and that is going to be very difficult, and we will go into a recession if that
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happens. so you know -- it would we are indefinitely slowing down whether recession or not we will see. that against a lot on the fed, but it is going to be very interesting time next few months. maria: let me bring in panel want to get questions to you as well ryan payne jump in. >> i -- the bond market getting what could i know you have a lot of finding income investments what do you think here if you look at i look at single atax paying 3% if you are high tax bracket, getting 4.75% equivalent to 10-year treasury, is it time to leg in to bond market or do you thing rates going higher given the fact going to ub wind that nine trillion-dollar balance sheet at some point? >> well, that is a fantastic question, and, yes, they will be going higher i mean fed is going to raise rates, going higher i do think you should
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leg into it. see the traditional model 60% equities 40% income for years not worked because of zero interest rates, so people are trying to figure out what they are going to do with that 40% weren't getting any zero now that changed 10 years 3% you can start legging in going to get it munis, treasury, going to get higher yields now, so you can start legging back into if i could income that is why, a lot of this, private lending incredible asset for us it is floating so as these adjust you are getting that yield that you ordinarily he woevent have gotten in the past. >> won't have gotten in the past leg into still going up, so you know, people are going to get hurt for a while bonds are going to get slapped but start legging into that you are going to grab that yield you weren't getting before. >> equities side, you have been a big growth shop for as
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long as i know, and do you still want to be in growth stocks or do you think you take to sidelines. >> rotation to growth and value there is no question the growth stocks o as of late have been hit a lot a stop to this market, so you have to look at it and there are a lot of opportunities still in both. so i think, i am a proponent we are active administration i think it worked let professionals pick stocks to the end you have to be in it, you can't time the market nobody can time the market, we see the volatility, huge drops next day or two days, comes back let the professionals go in do their jobs, and be in securities makes sense. maria: great to have you good to see you john koudounis
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joining us from calamos, pam liebman is here live in mig ken institute global conference in los angeles impact on real estate and housing with fed half point hike expected tomorrow hottest trends in the housing market as mortgage rates hit 5%, next. . ime she spotted the neighbor kid, an approaching car, a puddle, and knew there was going to be a situation. ♪ ♪ ms. hogan's class? yeah, it's atlantis. nice. i don't think they had camels in atlantis. really? today she's a teammate at truist, the bank that starts with care when you start with care, you get a different kind of bank. bonnie boon i'm calling you out. everybody be cool, alright? with ringcentral we can pull bonnie up on phone, message, or video, all in the same app. oh... hey bonnie, i didn't see you there. ♪ ringcentral ♪
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the other workers' comp insurance company. they were going to reclassify our business and then they were going to charge me 50,000 dollars. when we got the quote back from pie, it was a sigh of relief. they put us in a policy where we fit. i'm grateful that there's company out there that's willing to insure us little guys because every dollar counts. ask your agent or get a quote at easyaspie.com mike evans: the situation in ukraine is heartbreaking. over a million children are now refugees. even now, we have convoys heading directly into the war zone to provide food. please join me in doing everything you possibly can to help these suffering people.
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>>. >> . maria: welcome back. will have home prices mortgage rates sushlgdz in recent months national association realtors reporting median single family existing home sales up northeasterly 16% first quarter from a year earlier he the 30-year if i could rate mornl at highest level in more than a decade, right now that is 5.1% for the week ending april 28th that is actually down from the highs of the money joining me right now president and ceo of the corcoran group pam liebman, at milken conference good to see you now great to see you. >> thank you so much for being here we are going to sit down onstage in a while do a panel with you and other titans in your industry, assess the current state of the market what is most important right now from your standpoint. >> i mean to me even though talk is all around mortgage rates clearly hugely important, the lack of inventory around the country, is still putting such a strain, on buyers, i think
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that is the biggest worry. maria: lack of inventory several supply and demand you don't have enough product prices are higher how come such lack of inventory. >> builders not putting out products the way american needs us to be put out that was supply chain issues, taking longer, longer, so, will take a long time for us to catch up i don't think anyone anticipated the amount of trades brought upon us by the pandemic, and great relocation through the country i don't know how long will take to catch up. maria: i want to ask about miami, for example, i saw mayor of miami here yesterday he was telling me again he was on the show, the other day, yesterday, saying how -- let me go back to inventory issue, because lay on top of that the supply chain issue, right? you are talking about lumber, semiconductors all things that you need to build a some access it. >> i tell you one craziest things i have heard people
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going to sign contracts with new home builders escalation clauses if my price goes up by x, in our price goes up you imagine lockeding in saying not our fault yours are going up too, now you talk about mortgage rates, those increases affordability is becoming a problem especially for the first-time home buyers, who struggled. >> can spiral out of control wildly when you talked about this price of home right now the fact it has risen so much, some people will say we're in housing bubble we are in where we were back in attacks. you say? >> absolutely not, not even close, i mean the way they worked mortgages back then dir are different than underwriting yefr supply back end was significant, and we just don't have it we are so under supplied across the country that i do not believe one i ota in housing bubble.
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dha there we e e iss realk walal i 200 -- osfofoltbo bo re a coseause i wa tlypplyppppouse houanse hse foouse hse t expsiveen sayka t iillililil r r ingthouth ckug [ []ht ] >> s say i i depds whe you you t t rentententttew yk ,tyty twoea pandemide hi wen s sficially lly ery ebody floodedkk rts atsretseople eenten i ias 25% 40,% 50,%, so you are seeing more rental growth than history everybody was forced to move rental price are high looking at the highest levels in history in new york city, unbelievable 2007 dollars for month rent in new york 5,000. >> 4,000 for one bedroom, that
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is not even going to be in top tier building so it is painful we got all calls from kids now graduating why college want to move with friends rent an paramount, sticker shock parents have to cosign, paying a ton of money never apartments it is affordability again. >> tell me hottest areas i know there has been a lot of migration a, people moving from high tax states to low tax states like florida what do you think? >> you know tax base for those can work from home going where they can have a great lifestyle everybody wanted more outdoor space live a different life markets miami palm beach naples all over florida, austin, texas nashville places you are hearing about, and until people say you have to go back to office work again, we still see people, doing this
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migration money was cheap for a while some people not free i go to low tax state prosecute california or new york, what i am saving in taxes i can afford to put way more into my home purchase, home purchase prices have really gone through the roof. >> quick, your assessment for the rest of the year 2023 how does market change. >> i think that inventory stays tight prices will not go down, and some people will rush to buy sooner because they want to beat the next fed increase on mortgage rates. >> all in all, we're like in 2022. >> what a market i think you are in the right business. >> for now. >> thank you. >> you, too, always a pleasure. thank you so much, joining us ceo president of the corcoran group we are live from milken institute global conference in los angeles stay we'll be right back. . ♪♪
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but you'll notice the difference. and now, miracle-ear is offering a 30-day risk-free trial. you can experience better hearing with no obligation. call 1-800-miracle right now and experience a better life. stuart: welcome back were wrapping up the live broadcast from the contrast takeaways from the global investment conference at a time that things are expected to get a little dicey with the fed raising rates. >> i think inflation if i were to sum it up it seems like that's the themes from everybody concerned about inflation
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whether or not we will see the r word this year. stuart: exactly. a lot of conversation about that here. it was this year or next year, most people it was not and is but a win in the debate whether happens at 22 or 23. >> all take a page out of warren buffett's playbook, wall street economist make fortunetellers look good, to me people talking recession i don't think were gonna have a recession. i'm bullish on the economy. maria: the consumer is strong that is one thing that you talked about a lot but you have to wonder how much time do they have with all the pent-up money in the bank from stimulus, et cetera, how long can that continue with inflation eating away at wages. >> the still true trillion sitting away on people's balance sheets and wages are going up. i think that is a discount on the market you heard it here
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first. stuart: working on the decision on interest rates tomorrow 2:15 p.m. eastern time we will watch markets. we have a rally the dow industrials at the highs of the morning up 50 points on the dow. maria: good to see with you this morning. enke so much. "varney & company" begins right now. stuart: good morning maria good morning, everyone. someone has done real damage to the supreme court. someone leaked a version of an abortion ruling that overrules roe v. wade, leaks like this are unknown in recent history, there are profound consequences. how will justices trust each other. any other colleagues or staff could undermine their judgment with the leak. the fbi will investigate, they have not started yet with the democrats see this leak as a valuable issue for november.

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