Transcripts For FBC The 20240703

126, the s p up 23, the nasdaq gaining 89. The russell 2000 is the big percentage winner, up 1. 5 or 26 points. But on this fourth day of the bloody war between israel and hamas, it is just after 10 p. M. Where hundreds of rockets and guided missiles continue to crisscross the sky. Israel fighting back and close to launching a mass ground offensive into gaza after Hamas Terrorists invaded israel saturday night, slaughtered more than 1,000 civilians. President biden just speaking within the last 20 minutes saying at least 14 americans have been killed in the violence in israel, and more than 100 people have been taken hostage by hamas, at least 4 of whom are american. Fox news is also reporting that according to journalists on the ground, soldiers have found infants decapitated by the terrorists in the villages that have finally been secured by israeli military. But help is already on the way. Take a look at boeing. Shares are moving higher, they are at the top of the Dow Jones Industrials at the moment gaining 2. 5 . You can see the spike there earlier today. That when foxs Jennifer Griffin and reported the Aerospace Giant rushed 1,250pound bomb withs from the u. S. To israel via Israeli Air Force transport shortly after the saturday attack. Griffin report toes the Biden Administration reached out to Defense Companies asking they accelerate munitions deliveries. Boeing stepsed up, and speaking just about 23 minutes ago from the white house, President Biden made the United States support for israel loud and clear, mentioning the additional military support the u. S. Is sending to israel including ammunition and interceptors. Joining me now live is Atlantic Council senior fellow ariel cohen, a recognized authority on security and energy policy. Hes lived in israel for a decade and served in the idf, Israeli Defense forces. Ariel, lets first listen to what President Biden said specifically about the munitions and the support militarily that the u. S. Has green lit right now, and heres what he said. Were surging additional military assistance including ammunition and interceptors to replenish iron dome. Were going to make sure that israel does not run out of these critical assets to defend its cities and its citizens. Liz first, your response to what the president just said, and then well get into things like the oil market which, of course, is secondary to the human toll. I think the president president is doing the right thing. He is trying to triangulate the bipartisan support the American People has for the state of israel and address the or horror that we see, unprecedented murder of the jews including babies and children, including rape and hostages. We did not see anything like that since the holocaust. It was not just the strategic surprise like in 1973 yom kippur war, this is israeli territory captured, villages destroyed. And its also a message to all of us. Remember, on 9 11 the jihadi terrorists asawses may noted assassinated 3,000 americans. Israel is 50 times smaller than the u. S. , so this is the equivalent of 37,000 americans killed in one day. This is the magnitude of that attack. This is a challenge to all of the democratic and free world because hamas is coddled by russia, is financed and trained and equipped by iran liz yes. And this is a challenge that is much bigger than just israel. Liz yes, indeed. We need to talk about exactly what is going on on the ground. Israel says the 26 breaches, this was, of course, on saturday, of that wall between gaza and israel which were torn down saturday by hamas have now been secured. We understand that u. S. Defense companies, as we already mentioned, shipping weaponry. But, you know, as we look at whats happening with troops amassing at the gaza border, ariel, what happens next . What happens next is a Bombing Campaign the like of which we saw, for example, if in afghanistan and iraq when the terrorist, the known terrorist targets are softened. Israel does not go after the civilians, unlike the Hamas Terrorists. It will go after legitimate targets that hamas deliberately locates in mosques, schools, hospitals. And and tragically, they take palestinians hostage, as the president just mentioned. Palestinians in gaza, a lot of them, despise the hamas theocratic dictatorship like the iranian dictatorship. Are. Liz right. Yeah. But what happens next is from a ground offensive. And i hope at this point hamas will be taken out lock, stock and barrel from ruling gaza. It brought nothing but tragedy and disaster to the arabs of gaza. Liz oh, its just, its horrific. And to call them animals is too nice to animals with what hamas has reportedly done, beheading children, killing i am a against, i am against dehumanizing anybody, the nazis would call jews vermin and insects in world war before world war ii and during world war ii. But that the behavior, that criminal terrorist organization that murdered babies needs to go. Liz ariel, lets talk about which is, of course, secondary, but the Market Reaction here. We could look at defense stocks here in the u. S. Which did very, very well yesterday. Sort of, you know, predicting that we would see what was telegraphed today new our Jennifer Griffin at fox news, and that is that many are stepping up right now, not to mention the oil markets. Actually, oil earlier today before it closed, because were in the aftermarket session, had come down after about a 3. 5 spike yesterday, and thats for brent, the international benchmark. West texas intermediate, gasoline, etc. So we can see it pulling back just a bit here. What do you think are the ramifications for Something Like the oil markets . Israel is not a huge producer. Obviously, neither is gaza. But the entire region including iran is. Iran is a thousand miles away, and if iran steps back and doesnt trigger another front against israel in lebanon, the mess blah concern hezbollah hezbollah Terror Organization is a fullyowned subsidiary of iran. The head of hezbollah, his official title is the plenty potential representative of the Supreme Leader of iran in lebanon. So its fully owned. But if iran restrains hezbollah and theres no war in the north, then iran is out of the picture for now. But if iran allows hezbollah to attack and this is liz well, that opens a second front. Theres a second front. Yes. The northern front. Right. And that will destroy israeli cities like tel aviv and strategic targets like the refineries. That may open the iranian leadership as the head of the mossad, the Israeli Intelligence agency, said just a few weeks ago, it will open the Supreme Leadership of iran as targets as well as as oilexporting capacity, an island that exports 90 of iranian oil. Liz thank you for your perspective and knowledge about the the region that is going on, we appreciate it. The geopolitical consequences of the war in israel are in very sharp focus not just for the president and congress, but for gop president ial candidates. Later in this hour weve got one of them. Vivek ramaswamy joins us in studio. He previously made some pretty controversial comments about u. S. Support of israel. Were going to get him on the record on his current stance on hamas, iran, russia, saudi arabia and how hed handle the situation as president and, yes, we will ask him about securing the southern border. Lets get to the markets here, and we do, as we say, see some gains here. We are off the earlier highs, but u. S. Stocks even as investors contend with a very worrisome global picture. Stabilizing oil prices we just showed you as well as falling bond yields are helping the Market Sentiment at this hour. Of if you look at the 2year yield, it is dipping below 5 . Just barely, were at 4. 995 but still down about 9. 3 basis points. Thats a 1month low as investors pile into safe haven bonds. The 10year is falling to its lowest in an entire week with, only seven days, but well push it, right . Driven by middle eastern tensions and hopes that the Federal Reserve is done tightening. We have that standing at 4. 662 , down 4. 3 basis points. So to that end about the Federal Reserve, are they done yet, the bulls actually perked up their ears after Rafael Bostick said in a speech this morning that the fed has now raised rates enough to bring inflation down to its 2 target. You know, the underlying message here is were done, or although hes only one voice here. The dow adding right now 152 points to yesterdays 197point gain. The s p climbing 27 points yesterday. It made exactly 27 points to the upside. The nasdaq up 100, and you see the russell 2000 up 26. Bostick also said he does not see the u. S. Dipping into version. The International Monetary fund seemingly agreeing with this outlook, they raised the u. S. Growth projection for this year to 2. 1 . So far sentiment is positive ahead of the cpi report on thursday, the Consumer Price index, important inflation report. And a host of Third Quarter earnings. But with the global picture in sharp focus, lets get to kate moore and the floor show, head of blackrock global allocation fund. Kate, obviously, your gut reaction to all thats happening right now and how the u. S. Markets are absorbing it. Yeah. I think the main focus especially for the ec questionty space right now equity space has been the messaging from the fed. Not just bostick, but also daly and logan all giving a similar message which is, you know, were in the right direction of travel for both inflation, hopefully well get that confirmation if on thursday, and the labor market. And thats what the Equity Investors really wanted to hear. They also like seeing that the bond yields have come down a little bit, theres a little bit less pressure on volatility. And all in, its a slightly calmer market where weve seen a lot of hedge funds in particular covering their shorts. Liz does slightly calmer mean you are an equity cheerleader, or are you still a skeptic . I think i have to love my asset class as an Equity Invest every. That said, im not adding a ton of risk at this moment too in time. Im going to be monitoring what happens across the geopolitical landscape, im going to be Monitoring Oil prices and the impact thatll have in terms of Consumer Prices. Liz yeah. But, you know, were not out of the clear. The one thing i am slightly optimistic about and i think a little bit more optimistic than the street is around earnings. Weve seen consensus take their earnings estimates to a pretty conservative place for the Third Quarter. But kind of flat if yearoveryear. And i think as Companies Start to report, which they will in earnest on friday, were going to get a more constructive opinion and view from a lot of the cfos and ceos. Liz the equity skeptics have been wrong, wrong and wrong. I mean, maybe a short window of 30 days here and there. Obviously, we with saw at the end of the summer things were very, very tentative. But if you look year to date at the s p, the nasdaq. I mean, the dows up just over 1 year to date, but the rest have been gang busters, certainly. How does 2024 look . I mean, do we see a repeat of this muscle that weve seen so far this year . Yeah. A lot of the equity skeptics and naysayers have been complaining about the leadership of the market, right . tis e tis technology. Just six or seven Company Companies leading the market. They forget those major megacap companies did the, work. They cut head count, streamlined their businesses, taker o they focused on cash flow. I think the breadth of that type of behavior, were going to have a Broader Market in 2024. Is it off to the races . No. I like a little differentiation, a little dispersion if underneath the a surface. But i think theres real possibility with a fed on pause, the economy adjusting to higher rates and companies doing the work to preserve cash now, we can have an up market. Liz well, its unusual because technology stocks, Technology Companies en masse did, as you say, the work. They skinnied down, they winnowed their employee head count. You know, maybe its individual names elsewhere, but are there particular sectors that you feel yo you like right now that arent being killed by capex spending limitations and labor costs . Yeah. I think there are a couple of things im watching for in this earnings season. One is breadth outside of technology and communications. Weve seen Consumer Services as well, expectations are pretty lofty there. But im looking for stuff on the cyclical side of the market, you know, Cyclical Companies telling us they have either cut head count or have kind of rightsized businesses that may not grow as much next year. Id say in the industrials side, in materials and energy im going to be focusing a little bit on that. In addition to labor costs and overall labor expense, so not just the wages, but also the total cost of an employee. Im going to listen for comments around capex and investment spend. When ceos talk to us about that, its a very positive signal because they tend to be to be conservative. And then the last thing is around inventory. I want to hear companies talk about their inventories. If theyre low relative to history, which is what were hoping for, that bodes well. We may actually see a good order book in 2024. Liz kate, its great to have you. Thank thanks so much, liz. Liz and contrary to popular belief, we are not related but, boy, youre a sister from another mother. [laughter] we look a lot alike. Thank you so much. Weve got a. I. Stocks in the green including adobe. A. I. Artists getting quite the upgrade as adobe lights up flye. They call it your imaginations new best friend. We are going to show you how it works and get the top voice in the area from adobe. And our producers and correspondents on the ground in israel keeping you updated with the very latest breaking news from israels 4day war with hamas. Heres a look at ishares israel etf. It has moved to the upside by nearly 1 . Claman countdown is coming right back. Financial advice from ameriprise can do more than help you reach your goals. I can make this work. It can help you reach them with confidence. No wonder more than 9 out of 10 of our clients are likely to recommend us. Ameriprise financial. Advice worth talking about. This is american infrastructure. Megawatts of power, rails and open road, and essential services of every kind. All running on countless invisible networks, making it a prime target for cyberattacks. But the same aipowered security that protects all of google also defends the systems running americas infrastructure. For these services. For the 336 million of us living here. There are some things that go better. Together. Burger and fries. Soup and salad. Like your Workplace Benefits and retirement savings. With voya, considering all your financial choices together can help you make smarter decisions. Voya. Well planned. Well invested. Well protected. Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes [ cheers ] yeah woho running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. Youre probably not easily persuaded to switch mobile providers for your business. But what if we told you its possible that comcast business mobile can save you up to 75 a year on your wireless bill versus the big three carriers . Have we piqued your interest . You can get two unlimited lines for just 30 each a month. There are no Term Contracts or line activation fees. And you can bring your own device. Oh, and all on the most reliable 5g mobile network nationwide. Wireless that works for you. Its not just possible. Liz lets fire up adobe shares, they are in the green up about 1. Off the highs of the session, but an already stellar year to date performance of 58 gains in the stock. The company is less than two hours away from adobe max, its investor meeting, where where advancements in a. I. Will, no doubt, take center strategy. The firefly was a massive hit, users dove in making system 3 million prompts. Team countdown asked adobe to make an a image of a black and orange account on the beach with a mow here toe. Heres what it made. I mean, yeah, nice. Well, now the company is unveiling model two with more updates, so of course we asked to see what the new model would come up with. Unveil it, everybody. Heres what the firefly model two created based off the same prompt. Oh, thats a better america ojito. Lots of mojito, lots of mint. Right, austin . As you can see, its a lot more lifelike. What more can model to two do . Point person on creatives digital, david, how has firefly morphed . Tell us what it can do now. First of all, thank you for having me on the show, liz. Liz of course. You know, we have been very busy over the last several months. Not only did we update the image model today, but really the big announcement today was that weve really expanded our generative a. I. Models to include a broad set of things. So imaging is what i think a lot of people are focused on, and we have this major update that gives you much higher precision and detail, but it also gives Creative Professionals or individuals using this much more control over exactly what gets generated. We also introduced a firefly vector model which is a new way of actually creating generative a. I. To create images that can be edited as vectors which gives you a lot more tools like adobe illustrator. And we also introduced the adobe firefly design model which actually creates more completely come positive designs that you can then eddied admit edit easier. The teams have done an amazing job. Liz this is a very competitive market. I dont need to tell you that, david. I was perusing getty images, a Publiclytraded Company as well. They have the a. I. Image generator that can make all kinds of things with prompts, and theyve got this huge data that base of images as well. The how do you let the world know that you are stronger and better if, indeed, you are . We are much, you know, the quality of the images that that we get, that we generate, the control over the images, i think, are really unprecedented. And we really talk about it in a few ways. First of all, its the quality, its the precision of what we generate. Second of all, its the fact that everything we generate we have license to use, and its commercially safe for customers to use. Thirdly, you know, we are a family of models. We dont just do imaging. We do imaging vector, we codesign. We also announced today we were coming out with video, audio and 3d models as well, so its going to be the most holistic set of models anywhere in the world. And last but certainly not least, we build these models from the ground up to be integrated into our tools. So whether its Something Like photoshop or illustrator or premier or video tools or whether its something, the new products like express and our firefly web application, we have a solution for the entire industry and for anyone that wants to play liz weve got to run, but how much does this cost . Is it built into the basic adobe subscribership . Its all built in. We have generative a. I. Credits, so the more people use it, the more opportunity there is for adobe to monetize this, but the more value theyre getting as well. Liz okay. All right. We look forward to seeing the next kitty drinking the mow here toe. We want an umbrella in the cup next time. Thank you very much. Sounds great. Liz the u. S. Army reaching a deal to put a. I. To use in its ranks. Were going to tell you which Big Tech Company it tapped for an a. A. I. Promotion and show you the stock reaction. And at the bottom of the hour, 2024 the president ial candidate Vivek Ramaswamy will be here in studio. What is his stance on the state of the southern border, where he stands in the candidate rankings and his take on the war in israel. Youre looking at a live picture of gaza where minutes ago there appeared to be an explosion. There have been fires all day and night as israel the defends itself. Closing bell, 35 minutes away. We are coming right back. Is it possible to fall in love with your home. Before you even step inside . Discover the Magnolia Home james hardie collection. Available now in siding colors, styles and textures. Curated by joanna gaines. Explore endless design possibilities. To find your personal style. Endless hardie® siding colors. Textures and styles. Its possible. With james hardie™. 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Let me give you some perspective that we havent yet put up, is and that is that intraday the i cow to dow jones is off the highs of the session. We had been up more than 200 point, were Still Holding on to 31 points. S p up by 24. And then youve got the nasdaq, now up nearly 100. Lets call it 97 points. The u. S. Army awarding palantir a contract worth up to 250 million to test and develop Artificial Intelligence and machine learning. Palantir shares have jumped more than 180 year to date. Theyre up 1. 33 right now to 17. 8 a 5. High of the session though is 18. 40. So a little bit of mod moderation here. Truist financial is in talks to sell the remaining stake this its Insurance Brokerage unit to stonepoint. According to a report, the deal hay hinge on stonepoints ability to scare is up enough debt, right . Stonepoint bought a 20 stake in the unit in april that valued the business at 14. 75 billion. Truist e is up 6 . Rivian revving higher after ubs upgraded the stock from neutral to a buy. The bank believes the ev maker will improve if its production and sales number while burning through cash at a lowest rate. This is key. Ubs did not lower sorry, did lower its price target from 26 to 24. Rivians at 19 and change now, up 5. 33 . Is and unity software, the ceo announced his retirement effective immediately. This is a bit of a surprise. The stock first popped higher, new its still up about half a percent but way off the highs at 29. 87. The Video Game Software company has appointed James Whitehurst as interim ceo. Now, whitehurst formerly served as a red hat ceo and ibm president. The change in leadership happening shortly after unity implemented changes to the fees that it charges developers. And when we say implement, we mean raised. In response, a number of developers threatened to stop using unitys products, that was not good. John r are igatello stepping down. Republican president ial candidate Vivek Ramaswamy has laid out a u. S. Strategy to support israel amidst its war with hamas. He is here, you see him right now in studio. Hes going to join us next with details. And in this weaks podcast, we talk about a week withs podcast, we talk about a war elsewhere in the world. And though scarred by the nigerian war, he was is so smart and focused he entered medical school at age 16, made his way to the u. S. As a trained pathologist and conducted what is today called the autopsy that changed football forever. Dr. Bennett omalu tells his story of discovering and naming cte, the chronic traumatic brain injury he pinpointed while studying the brain of a former pittsburgh steeler. His story of shining harsh spotlight on the dangers of americas pastime is one that uncompasses courage and resilience. Please, listen to how he cop fronted both the nfl and doubtful medical Community Members to reveal the truth all while struggling with his own traumatic history. We are 27 minutes away from the closing bell. Vivek ramaswamy is next. Muck this thing, its making me get an ice bath again. What do you mean . These straps are mindblowing they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. And you are . Im an investor. In invesco qqq, a fund that gives me access to. Nasdaq 100 innovations like. Wearable training optimization tech. Uh, how long are you. Im done. Im okay. Liz folks, we have breaking news. U. S. Defense officials have just confirmed to fox news that the uss gerald ford aircraft care questioner has arrived carrier, its a whole group of these, in the eastern med town january just off the coast of israel. This is called the biggest and baddest warship, and its present presence in the middle east is to send a very clear message to militants including hamas and hezbollah that the u. S. Stands with israel. President joe biden just addressed the nation from the white house and reaffirmed the United States commitment to israel in its war against hamas. Biden said we are sending additional military assistance including ammo and interceptors to replenish the iron dome which israel uses to neutralize more than 5,000 incoming rockets from gaza. Listen. The loss of innocent life is heartbreaking. Like every nation in the world, israel has the right to respond, indeed, has a duty to respond to these vicious attacks. I just got off the phone with, my third call with Prime Minister netanyahu. I told him the United States experienced what israel is experiencing, our response would be swift, decisive and overwhelming. Liz where do the president ial candidates stand . 2024 gop president ial candidate Vivek Ramaswamy tweeted his support for israel this weekend saying, quote, i am appalled by the barbarian bare barbaric attacks, shooting innocents and killing children are war crimes. Iranbacked maas hamas and hezbollah cannot be allowed to prevail. I stand with israel,s and utah and the u. S. Should do. Too. This comes after saying the true mark is to get israel standing on it own two feet. The entrepreneur and 2024 gop candidate Vivek Ramaswamy is here with me now. All right. Here and now in the moment please tell me what you are thinking, especially in light of the news that mike tobin of fox news has brought to viewers today just a few hours ago that Israeli Soldiers have finally made it into some of the attacked areas and have found decapitated infants. I mean, this is inhumane. These are war crimes, and israels response should be decisive, as i expect that it will be. And the u. S. Role should absolutely be to stand with israel diplomatically, intelligence sharing, going further in providing munitions where knead ed for israel to needed for the israel to preserve itself national its national existence. And the United States should absolutely be behind israel as it does. While also making sure, and i think this is critical, that we conot see a broader war do not see a broader war in the middle east that would not advance u. S. Interests. I think we can do both of those things, and i do think its going to that take a coolheaded, rational but decisive response to make sure the right thing happens here. Liz lets talk about u. S. Interests. Israel is the only democracy in the entire region. Thats correct. Liz colonel ralph peters said to me israel is the only democracy, the only smartthinking nation between greece and australia. I mean, theres a huge, huge area in between. That includes russia, iran, a lot of the middle eastern countries. But thats, that thats the interest that we have that, i hate to say friend because we know that countries dont have friends, they have interests. But dont you think that that means that forever and a day the United States needs to fund and support militarily israel . Well, ive said very clearly since day one and all along is that we not cut off aid until israel until israel tells us theyre ready for it. What nation would ever say that . The one nation that actually said it was israel that was led by bibi in the 1990s liz civilian aid is different than military support. Absolutely. The u. S. Will not cut off aid until israel until aid to israel. But we have a much more serious emergency on our hands, and we need to talk about how to respond to that right now. And i do think that one with of the careful things we need to make sure of here is that we are supporting israel. Israel is able to defend itself and its own borders while at the same time making sure that does not lead us down the siren song of a road to prolonged and and extended, broader regional war in the middle east. That is something we should also be able to lead diplomatically to avoid. Telling the u. N. Its historical practice of equating a false moral equivalence between israels defense of itself versus the enemies that attack israel, were not going to stand for that. But tame, we have to take a leadership role that is sound and levelheaded. Liz before we go oven, as we said, the uss gerald ford steamed very quickly to the region. It has arrived on israels shores. If it came down to it, if you were president and things got ugly, weve got four, at least four american hostages, 14 americans kill by the terrorists. Would you put boots on the ground if it came to that. Well, look, i think that part of America First means leaving no american left behind. And so i do think that there can be room for looking at various options to get out american hostages back home. Beyond that, i think our job is to stand behind israel as israel decides what its correct response is going to be. Historically, israel has had some debates internally about whether or not they want control over gaza or not. Those are pros and cons for israel. Thats a decision for us israel to make. The u. S. Should stand behired israel in whatever decision israel does make while making sure we dont drag ourselves into another prolong,ed prolonged, large regional conflict in the middle east, ask thats exactly how i would lead. Liz as we remember what happened during the reagan era are rah in lebanon, a lot of u. S. Lives were lost. Lets get to the southern border. The Border Patrol has released some very worrisome numbers that that we want to put up on the screen. The southern border is, i mean, porous is a friendly way of putting it. Thats right. Liz streaming over the border have been people from countries that hate us. Yes. Liz special interest alien apprehensions, as theyre called, afghanistan, 6,386 people have come in. Pakistanis, 1,613. 659 iranians. 538 syrians. Were not painting everybody with the same brush here. Some of these people may very well be with refugees. But what is the first step that we must take right now . Joe manchin yes. Liz yesterday of west virginia, democrat, said seal the border, lets get the ones who are in, 3 million of them, on the path to citizenship. They can fill jobs here that americans dont want to fill. But what is your idea . I agree with the first half of what he said, i disagree with the second half. Sealing the southern border and the northern border too, liz. This is ignored. That has to be the correct step of the next commander in chief. I visited the northern border just a few days ago. To call that porous is an overstatement. That is completely open. And when we look at the dangers of terror cells potentially in the United States, this is a National Security issue for america. And so one of the questions even as this relates to the israel question, we need to get to the bottom of what the heck happened with the failure of u. S. And Israeli Intelligence that allowed a disaster like this to unfold. If some have said thats a question for later, i think its a question for now. But the wakeup call for the United States of america is if this can happen in israel, it can happen right here at home in the United States on our own homeland. And i think thats something a new reality that we in this country need to contend with, open our eyes to that risk, seal that southern border but even more importantly, use Law Enforcement to get to the bottom of who else is already here. And ive also said part of the plan here for support ising israel is getting anybody who has been a resident alien in the United States affiliated with hamas or similar groups, get them out and even extradited to israel if necessary. Thats what it means to protect this homeland. Liz Vivek Ramaswamy, thank you for coming in studio. I suspect we will be speaking a lot, i hope so, as we get closer to the 2024 election its good seeing you. Thank you for having me. Liz weve got this, Sam Bankmanfrieds former paramour, the the star witness in the fallen ftx found orers fraud trial. Caroline ellison on the stand for hours today. Will her testimony seal sbf ifs fate . Charlie breaks it, tells what happened in the courtroom and what is happening when we come back. 13 minutes away from the closing bell, the dow is up 132 points. Im so glad we did this. Im so glad we did this. Im so glad we did this. Im so glad we did this. Im so. Glad we did this. [kid plays drums] life is for living. Lets partner for all of it. Im so glad we did this. Edward jones this is Spring Semester at over 13,000 us school districts, which have become top targets for Ransomware Attacks. But theres never been a reported Ransomware Attack on a chromebook. Which is why thousands of schools like the fairfieldsuisun Unified School District switched to google tools for education. So they can focus on teaching and 22,000 students can focus on learning, knowing that their data is secure. he hits his mark center stage and is crushed by a baby grand piano. Youre replacing me . Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes [ cheers ] yeah woho running up and down that field looks tough. Its a pitch. Get way more into what youre into when you streaon the xfinity 10g network. Loving this pay bump in our allowance. Wonder where mom and dad got the extra money . Maybe they won the lottery . Maybe they inherited a fortune . Maybe buried treasure . Maybe it fell off a truck . Maybe they switched to Xfinity Mobile on the most reliable 5g network. For a limited time, buy one line of unlimited, get one free for a year. Now i can buy that electric scooter im starting a Privateequity Fund that specializes in midcap. You do you. Switch to Xfinity Mobile today. Liz things are heating up right now in the courtroom at the criminal trial of Sam Bankmanfried. The disgraced crypto kingpins former girlfriend, Caroline Ellison is on the stand right now. Right off the battle lesson who ran ftxs alameda hedge funded a mitted to committing financial crimes including fraud and said Sam Bankmanfried himself directed her to do so. Charlie what else is happening right now . You have to always be careful saying Sam Bankmanfried is a strawed officer. Liz alleged. This testimony is making him nearly a a convicted fraudster. Not only her and gary wang. Liz he served at ftx. Both cut deals. Both hut him in the middle of directing the fraud, in langs case he not basically said, said Sam Bankmanfried allowed me to do this backdoor mechanism where we could pull money out of the ftx. Remember the crime, the crime was alameda has got some issues. Were investing all this other money. Where can we get money on a shortterm basis . You couldnt just take it out of the customer accounts until they created the backdoor. The backdoor allowed them to pull out ftx accounts. Without telling the customer . Without telling the customer. You couldnt do it in the past. Sam bankmanfried agreed to that. The question would be, why did he agree to that . If he takes the stand i dont think he will, i think he wants to. I dont think he is. Ellison is going further. Essentially what she is saying all the withdrawals were done with his knowledge. When alameda was losing money during the crypto collapse she conferred with him. He approved them using that money when they needed to use it. It was his idea for them to reach into the piggybank get through a trading loss. By the way that never works out well. Thats one of the oldest crimes, financial crimes. Ive seen it a million times and it never works out well. You never make it up. Liz you think let me do this now and well give it back, yeah. Sam bankmanfried directed her to commit the crimes of taking several billion dollars to repay debts and invest. Thats the thing i think that really going to get him on, is the fact that it wasnt just spur of the moment thing. This is just where it gets to intent, there is something in it, in criminal law known as see enter. Means a high intent to commit a crime. If youre using money in the ftx accounts to make private Equity Investments or Venture Capital investments which she claims they did, that is a degree of intent. That is not just liz who does she call in his defense besides his parents who kind of dont look great in all of this . I dont know. I have not heard of any of the defense witnesses. I have heard of the, you know the prosecutiowitnesses. Scaramucci, the reason why theyre not calling him liz it would help, he was messed up too. It doesnt matter, they have these two. My guess he doesnt take the stand because he will just get destroyed and, and this case is not going well for him. Liz i could do better than that court im sorry, jane rosenberg, whoever drew the picture. Im sorry, jane, call me. Check me on this. Billy crudup p, goodlooking actor, looks like billy crud. Up. Actor with aniston in the apple morning show. Looks like billy crudup, looked like billy crudup. Liz thank you, charlie you look like martini from one flew over the cuckoos nest. This is big part why the markets are looking slightly better here, right now down. It is 4. 65 . It is falling about 15 basis points. Investors are turning to the safe haven asset of treasurys amid the israel hamas conflict. Yields, lets be honest, over the past several months are shooting higher in lockstep with the federalist reserve rate hikes which put the squeeze on Traditional Bank lending. Enter the wall street lend known as private credit and Blue Owl Capital is the firm set up specifically to provide private capital by financing jumbo loans for companies. Joining me now, 150 billion in assets under management is blue owl campaign coceo mark lip schultz. Mark, youre stipping in at a time where banks are not, right . Lets explain exactly what you do . Well thank you for having me. Stepping in at a time gangs are changing the role for a time. It is not new, it accelerated last five or 10 years. Banks moved out of the business to lending to a lot of these companies. Rather than in the business of syndicating loans, acting as an intermediary. That is an important function, we need that function in the capital markets, to have a longterm reliable Capital Partner nor corporate america. We needed a different model. That is the model we built at blue owl. Liz your stock down today, we like to spread it out to show perspective, up 49 over the past year. What kind of rates do you charge your borrowers . So our business is about being in the senior secured floating rate business. Liz okay. Moves around. Moves around. Rates have riflessen over the last year, that flows directly through our investors this is beneficial environment for our asset class. A typical loan we make with a Large Company with a large backer probably earns unleverred 12, 13 return. That is substantially higher than where it was before. That reflects the rates. Liz they need to find the money somewhere. I, im very interested to know about how youre growing. You guys are growing pretty exponentially. You said you would expand into abdou abu dub by is that still on, still stands especially considering the turmoil in the region. Were proceeding forward. They are a wonderful partner for us, to build a Global Business and capital base to meet the needs of many focus where which lend capital we have a real estate business and a gp Solutions Business where we provide Capital Solutions to the private Equity Industry itself or others with their real estate. We have a variety of ways to provide private capital to meet the needs of a market that needs capital. Liz we like the free market and youre a living example of it stepping up with blue owl. Thank you so much, mark. Thank you so much, liz. Liz tomorrow were joined by Virginia Republican congressman bob good and pennsylvania democrat congressman brendan boyle. Closing bell rings] the latest in the speaker arrest race. That will do it for the claman countdown. Kudlow is next. Larry hello, folks, welcome to kudlow, im larry kudlow. All right President Biden spok