Transcripts For FBC Mornings 20240702

Us. Im maria bartiromo, it is tuesday, october 24, 8 00 a. M. On the button east coast, National Security counsel spokesperson John Kirby White House Press Secretary Karine Jeanpierre shutting down idea deporting foreign nationals including students who attend pro hamas demonstrations. On a the right among some republicans, whove called for students foreign issue nationals for demonstrating in some pro palestine demonstrations allegedly, to have a student visa pulled, or deportation. O we dont have to agree with every sentiment expressed in free country like this to stand by the First Amendment and idea of peaceful protesters. A does president view antiisraels protesters sentiment on College Campuses as ients semitism. President has been very clear wanting to maker that Jewish Americans that our americans muslims are protected as relates to peaceful protesting people have the right to do that. Florida governor 2024 president ial candidate ron desantis have it being back on x, posting the Biden Administration is dead wrong, no one has a right to come to our country cheryl i think on to something here because it shouldnt be that a country is just wideopen that anybody just comes there are people waiting in line, to get a visa waiting to become citizen people coming on own will jumping ahead of everybody else people wait a long time so they can actually do it in a legal way. Cheryl john kirby had to say that he said look this is First Amendment right, certainly constitution makes us a the democracy the constitution helps us maintain the freedom that we enjoy as americans folks from other countries coming in here, and leading protesters in particularly propalestinian some pro hamas protesters we at fox have a brain room tracker on campus protests we are adding four more universities to tracker in addition to harvard yale columbia nyu brown, northeastern, perdue, university of florida because you this is now movement that is i exploded i am not sure half kids even know what they are talking about or if ever to the middle east just my opinion. But what we are seeing break out cross College Campuses dangerous attacks on Police Officers some Point Administration john kirby kjp address violence on u. S. Streets. Maria i agree with you i dont think students have a clue i mean joe, look, at this point, it is very hard to go out and protest against what were seeing here, and protest in favor of hamas after manhandling we saw the way they treated children and women atrocities they have done in this unprovoked attack on israel worries the war in israel intensifies broadens out daly call obtained a letter that trying to stop from take can go refugees customs and Border Protection had socalled special interest aliens last several years we want a diverse country lots of cultures but as we know there are terrorists that are coming through the border, and being apprehended, youve got to do something about it. Of course, we have to start by pulling back the curtain on this hypocrisy the left always stands for cancel culture want words of violence will ruin your job your career if you say she, her inassessed of, him, you have student groups on our dime in many cases out there, supporting the murder of jews in israel, jews in United States we have right obligation to protect citizens, these are the most hypocritical people i ever met because when it comes to real potential violence they are silent is if dismissive getting behind them we have unsecured border no one in Democratic Party seems to take seriously not just managers i suspect if you polled americans would be more comfortable with migrants want to come here to work rather than Hamas Terrorists want to kill American Jews we cant have a say Biden Administration rolled back every tool we have on the border, our northern and southern border to regulate who coles here legally and who he cant. Maria interesting that wall street ceos are all in saudi arabia this week, appearing at the saudi conference amid this conflict youve got wall street top financiers showing up at saudi arabia conference, actually weve been to on this program a couple years ago, Goldman Sachs, Jpmorgan Jamie dimon, citi, jane fraser among high group of bankers Asset Administration at refute Investment Conference Ritzcarlton Hotel in riyadh, ray dalio there as well at this conference, larry fink, Steven Schwartzman interesting to see this happening in the admitted of all of this in middle east, youve got former president barack obama issuing a statement yesterday in war on israel, he warned that israel a ground operation in gaza could backfire, if Palestinian Civilians are put in harms way he condemned hamas attacks criticized israelito decisions to cut off food, water electricity throughout gaza saying he could further, hardenplan palestinian attitudes for generations. His speech. We americans too protected in ivory towers videotape shows brutization beheading, mismember meant rape of children, women, we cant be outraged if we are protected from seeing that information, so we cant respond appropriately with outrage we should be feeling, because we are too protected by unfortunately american we have to understand bhoo is really going on the American Public can have right response, you know two of the universities cheryl mentioned am i alumni university, involved, pro hamas rallies i am shocked we have to understand what is really happening if they are going to protect us saying were not outraged this is outrageous outrageous, outrageous. Maria all appeasement of Obama Administration last person we need lecture from are is from barack obama. Weve got a spotlight on it well be right back. The biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. It still does. What can you do with spy . Maria welcome back lets take a look at futures where we are looking at indication of a strong rally start of trading this morning, in dow industrials up 124, nasdaq up 75, s p 500 higher by 20 points right now it is largely due to betterthanexpected earnings, week of have a number of Industrial Companies raised guidance General Electric among best this morning better better earnings ge stock almost up 6 there it is 112 and change watching Interest Rates as well 10year treasury yield retreating, after 5 yesterday, as you can see, 10 year ut up two basis points 4. 874 ge General Motors verizon cocacola double beat ge coke raising guidance after the bell microsoft, alphabet the tech parade continues meta tomorrow on thursday, amazon, may set tone for rest of the week joining me right now to look ahead iransides economic managing partner barry knapp thanks for being here reaction to earnings could color our expectations for the macrostory. Its very much a situation of potential productivity boom set against a policy bust, right . So we have policy overhang from the fed policy overhang from all debt fiscal authorities saddled us but 140 billion treasurys for sale this weaker in belly of the Treasury Curve the part under pressure but are on the other hand we do have, very Strong Capital spending cycle a potential real productivity boom this Business Cycle, last Business Cycle was really weak for productivity from 2011 to 2017. But started to accelerate in 2018 attribute to Technology Innovation adoption in Consumer Services sector, that is likely was accelerated most likely by pandemic, i think a. I. Is a subset of that potential productivity boom so got dynamic private sector against really misor ill revived policy last weeks Bank Earnings part and parcel banks struggling regionals in particular mightily with the way fed went around, about this tightening, deep inversion of the yield curve, so, you know just trying to get to the other side hope the fed stops with this we start to get stability in the Public Sector finance but, again, it is a big tradeoff here. Maria can you mentioned o innovation, somebody said earlier a week about a. I. Microsoft tonight we will probably here about most recent acquisition that investment they made in openai that, chatgpt company. So we are watching that, but i want your take on what 5 means hit 5 yesterday briefly 16year high Interest Rates how does that play out in terms of cutting into what were expecting to be growth in the quarter . You know this is what i have been describing unstable equilibrium the yield curve needs to disinvert by early 2024 we have huge amount of multifamily real estate going to need to be refinanced, whole like a Million Units under construction right now Office Buildings we know all about problems there high yield Small Businesses all these industries struggling Banking System right now, with inverted yield curve cannot roll multifamily Real Estate Debt we need this invert curve some cheering 2s, 10 curve disinverting close to fat absolute worst way to disinvert curve having back end sell off raise rates going to leave a real you know series of wounds in the Banking System, a third of assets are vested in securities. So you know Small Businesses going to struggle regoing to struggle Banking System not able to supply credit, this is just not a good outlook i think fed will wind up having to cut rates a percent next year, they wont admit it yet, you know just sort of headed for crackup will force them to do it this is you know, agency i said just, when you disinvert curving having back end sell off this sharply, it is going to cause serious losses, not just in investor accounts but in real economy, in the Banking System in particular. Layer on to that pressure of oil Oil Prices Higher rebounding investors on edge over israelhamas war may disrupt exports obviously, when anything happens in oil rich nations we start seeing a worry around oil but you crude up to, not even highs of the will have a couple months. Situation with oil is fascinating i think the most underappreciated part of oil is 50 years, we ran big energy trade deserts what that meant effectively was when oil went up dollar tended to go down a cushion to china, japan korea, germany all Big Industrial Oil Importing custodians no longer true u. S. An i will exporter dollar positively he correspond ladies situation worse for china, japanan korea, germany the place really going to struggling with it european pmi positioning this morning terrible germany in deech manufacturing recession, oil surely going to exacerbate that problem, so it is an issue here but even bigger issue for most rest of the industrialized world. Maria i am glad you mentioned european purchasing managers index, because that gives a sense of the Manufacturing Sector, and we want to see that area do well. If were expecting growth in the economy, i mean if european pmis did not do well this morning what are you expecting from u. S. Pmis. Better because of if domestic investment idea that we have a manufacturing renaissance going on but larldly quell i washed asian exports sort of leading indicator Globe Manufacturing activity stabilizing but negative levels, so you know, the Manufacturing Sector very much seems you know, in con traction no real evidence of a rebound, again part of the economy, struggling. Of. Maria very interesting to see Top Bank Executives all in saudi arabia this week youve got ceos of Goldman Sachs Jpmorgan Citigroup blackrock in saudi arabia this morning despite concerns over traveling until the middle east, bridgewater founder ray dalio, jane fraser said they are pessimistic, called out global Central Banks for dead wrong on financial forecasts what do you make of remarks from ceos of the leading banks . Yeah. I have so many thoughts, are respect to all this therl cheering on fed early in the cycle encouraging them to use their Interest Rate policies be very passive unwinding Balance Sheet caused deep inversion a handful of banks went under they are issue beneficiaries of it here well into krieshlg curve disinverting massive losses treasury pofltsdz mortgagebacked securities portfolios no longser so enthusiastic about way fed conducted this they are cheering fed on early, early in the process, so i dont have too much sympathy for them. You short banks, i guess they already have been under pressure into earnings, you think there is more volatility in declines in if bank then . I dont see easy way out for them not until fed decides they need to cut rates by a hundred basis points next year. Maria wow. A hundred basis points good stuff, good to see you. Thanks so much barry knapp in new york well be right back. Is it possible to fall in love with your home. Before you even step inside . 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Fellas, fellas. Thats how my son was able to find the hidden genius project. We wanted to give yall the necessary skills to compete with the future. Kevins now part of this next generation of young people who feel they can thrive. A welcome back breaking news out of middle east this morning one of the elderly israeli women released by hamas speaking with media this morning, fox news Foreign Correspondent trey yingst in southern israel this morning live with more trey . Reporter . Maria, good morning you can hear in distance outgoing israeli fire toward gaza, continues at this hour but we want to start with breaking news, 18 days into this conflict sirens sounding in central part of israelhamas Islamic Jihad maintained ability to fire rockets, into the middle of this country despite thousands every airstrikes that have taken place you can see Israeli Military releasing video 400 more strikes past 24 hours as they try to hit as many hamas Islamic Jihad cells as possible one piece of good news ray mid horrifically story two israeli hostages relieved as part of qatari efforts, 85yearold speaking about her experience. Translator to tell truth i have have been through hell never knew would come into this situation they laid me on my side on motor bike in gaza, dozens stormed our houses people kidnapped people like me no, no defense between all men or women it was very, very painful. Translator we know efforts underway to try to cut a deal with hamas free them but as leadership from hamas not in gaza but gulf spending aing out about the situation take an listen. Not hostages, secondly i told you will you let them go. I said we will release them, qatari announced that now in different locations we are keen on safety israel has killed more than 22 of them because of destruction it caused so therefor, netanyahu was keen on safety europeans americans are keen on their side, force israel to stop aggression to stop this genocide, this brutal war crimes committed every day. Reporter hamdz lying inside gaza concern hamas could try to divert humanitarian aid into strip more than two million civilians there many in need of food medical supplies, maria wow. What other what else can you tell us about treatment of hostages that you know of i know that you know israel stopped the fuel and food going in there they want the fuel returning, where are we on that trey . Reporter because of treatment of hostages this 85yearold grandmother describes how only fed once a day there are given some medicine but this was not for humanitarian purposes but keep hostages alive so hamas maintained barringing chip with israelis, as for aid into gaza mor in but question of with whether or not fuel will be allowed. Maria trey thanks very much yeae trey yingst owing in southern israel now daughter of the 85yearold israeli woman also released explaining what her mother went through what she saw. Watch. My mom is sending the authorities, saying that many, many people, came through fence mom saying she was taken kept all she was taken through many on one side men behind her, there are a huge um, huge network of opportune emission, underneath like spider web. Nebraska senator a member of Senate Armed Services committee senator thanks very much for being here assess the situation, as you know, it. Well we have a really horrible situation that israelis are facing our part needs to be able to give them, the time, that they need, to to really defend their nation, and to wipe out hamas. We also need to give them the resources, that they need. They are Strong Partner for us, this is a strategic relationship that we have with them, we need to make sure that we stand with them. I mean for the last 2 1 2 years this administration, has been trying to get an ifrn deal done with iranians appeasing sanctions, enabling iranians to legitimate billions of dollars in revenue on oil money to sell oil money. Do you think that is going to reverse yours anytime soon . I would hope, obviously, i was not in five of that iran deal to begin with, now we are looking at, as you said, the appeasement of the Administration Whether with iran movement, to release that six billion dollars i am glad talking about walking that back should be frozen permanently i am on different bills, to push that happens but we also saw horrible misguided withdrawal of from afghanistan i think really was a tipping point. It showed the world, that things have changed with leadership in the United States coming from white house. Ask pentagon is now vowing to hold iran responsible for rocket attacks on american troops in the middle east. They also expect, a quote significant escalation of attacking against our troops, senator your thoughts on that . Weve seen a number of attacks already on our troops, with no response by this administration. For the vast majority of those attacks, so it is good the administration is standing up saying it. Built i want to see the action that follows it. We have to be able to have strong response when our men and women overseas are attacked by statesponsored terrorist government. That is constantly promoting attacks on the United States on our allies, and we need to make sure, that we do have a firm, strong, response to that. Let me get your take on some business in washington this week, jack lews confirmation of hearing where does that stand . The administration would like jack lew the next ambassador to israel. Well we have his hearing before Foreign Relations committee. I have a strong response to that nomination i will not support it. I believe that jack lew is not the person to be an ambassador from the United States, to a israel. When he was such a strong promoter of the iran deal he has a relationship with iran that has been i would say on more friendly terms than i want to see from our ambassador to israel. There are others that i think the administration should be looking at, and i hope my colleagues on the other side of the aisle are going to take this nomination was seriously are going to really, really question it, and look at the type of person that should be in that position, and it is not jack lew. Then there is this packaging of money that biden wants is not minority leader mitch mitch says he supports packaging aid to ukraine and israel together biden requesting 61. 4 billion dollars for ukraine, 14. 3 billion for israel senator where do you stand on that . Well, the administration, they send over supplemental package suggestion i would take it lets remember it is congress who is going to pass the bill, we are going to decide you what thoso is included in that supplemental package, there is a lot under what has been classified as aid to ukraine. I would point that out, that much of the money in there is to replenish our own stocks necessary, Armed Services committee where i am second in seniority we had a hearing last week from Congressional Commission for strategic posture it was a wakeup call for this country how unprepared we are. Are we running out of ammunition . We are behind in being able to produce things we need while provided ukraine with javelins stingers gymlers, what is part of that package also he reinforces occupier capabilitied to produce about what we need. Serious when spending all this to ukraine for sure, thanks very much for being here, well be right back. Ah, these bills are crazy. She has no idea shes sitting on a goldmine. Well she doesnt know that if she owns a Life Insurance policy of 100,000 or more she can sell all or part of it to coventry for cash. Even a term policy. Even a term policy . Even a term policy find out if youre sitting on a goldmine. Call Coventry Direct today at the number on your screen, or visit coventrydirect. Com. T. Maria welcome back, new jersey senator bob menendez court comparisons. Cheryl pleading not guilty in Manhattan Court to charge of acting as Foreign Agent when he shared Foreign Relations committee, you this filing sxans the charges memendez and wife may have accused of taking bribes to aid egypt. A multicar pileup on louisiana highway yesterday meteorologists call super fog the air from wildfire reduced visibility to less than 10 feet initial crash happened moments later a tanker carrying liquid caught in crash before fire broke out burned several cars as you can see, 158 vehicles involved in wreck crews working to clean up this morning, fatalities could be identified once clears police say will be closed for foreseeable future. Kim kardashian shapewear brand introducing a new line for men for guys like underwear tshirts tank tops featured, currently valued at about four billion dollars, four years after it launched new campaign featured several pro athletes nfl defensive end, 49ers, brazilian soccer star next initial Public Offering were going to see . Good idea to expand. Thank you, cheryl all right. Senior pentagon officials expect a significant escalation of attacking against u. S. Troops in middle east saying recent drone missile attacks the iranian fingerprints all over them iran backed Islamic Resistance claiming responsibility for tactic on strategic u. S. Base in southern syria National Security Council Spokesperson john kirby. We know iran want to support hamas and hezbollah. And we know that iran is closely mornting case spurring on others to exploit for their own good, for that of iran we know to maintain some level of deniability not going to allow that or unchallenged. Joining me former conducting senator united against nuclear iran chairman how we made government work can make it work again senator Joe Lieberman is here thanks very much for joining us this morning. And you good to be back with you. Maria first i want to get your take on the atrocities happening, on israel, this morning, and since october 7, and the response, to Hamas Terrorists how do you see things . Well, i mean i i tell you most encouraging thing lately amidst of nightmare is what kirby just said, because the attack on israel the attack on american personnel military personnel in iraq just about Everything Else from hezbollah from yemen, militias of iraq and syria all being run out of iran Islamic Revolutionary guard, what kirby says ridiculous me of something i think George Shultz former secretary of state said if you point a gun at somebody say if you do, what continue to do what you are doing i am going to shoot you, you better shoot. And in this case, um the iranians are really the source of all the trouble here. Hamas, hezbollah, houthis, militias, all of whom killed israelis, americans, in israel now Holding American citizens hostage, in short that we cant elect commanders of all this antiamerican actors in have middle east, feel like they are in some safe s s sanctuary in iran it is time for u. S. Military to strike, see facilities let them know we know, that the iranians are behind this were not going to let them get away with it. To be clear you think u. S. Should strike iran right now . I do because none of this hamas would not be hamas without irans support they are a terrorist agent ofof iran, called still great satan in israel little satan same true hezbollah houthis, all the rest getting away with murder including murder of americans we must make them pay for this soon, now they will kill some American Military personnel, in iraq. And, it is nothing new for them, this iranian government has blood of americans, on their hands through terrorist proxies indirectly going back, decades it is time to acknowledge the Islamic Republic is our enemy cant trust them cant assume they are friends cant make deals with them we have to hit hard or they will continue to cause death and destruction for us and allies like israel our allies in the arab world, like saudi arabia. Maria very concerning to me, that it appears u. S. Is running out of ammunition i just spoke with jeb fisher Armed Services Committee Said yeah, were not keeping up in terms of ability to make weapons fast enough your take on that notion that joe biden would like Benjamin Netanyahu in israel to hold off on a ground assault into gaza to retaliate for the atrocities of october 7 until u. S. Can get its assets in place . What do you think that means . I was very concerned to read that. Yeah. Me too, i will deal with ammunition first it is possible, ammunition i heard him say that would be a really unacceptable situation. You know we have to think of this the way america did as world war ii began after pearl harbor, we made enormous effort in american industry the American People working hard we pulled together proud enormous amount of equipment thatable enabled the American Military with our allies, of course, to nazis, japanese in that case we need to do that now. The second question about joe biden netanyahu, hard to know has what is going on all private, administration keeps saying decisions when to invade, and demolish hamas, up to allies in israel, that is where that is where it ought to be. I think were getting ready the American Military, in place i want to come back to, again, this is not going to get better in the middle east not hamas not not any other terrorists there were there unless we make source of the trouble Islamic Republic of iran pay for what they are doing they are commanders in chief of all terrorist action in middle east including hamas attack on israel october 7. Senator, good to see you Joe Lieberman thank you very much for insooists important insights on all of this we will be watching sir. Thank you, maria have a good day. And to you, stay with us. Well be right back. De . Discover the Magnolia Home james hardie collection. Available now in siding colors, styles and textures. Curated by joanna gaines. 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. Maria welcome back if. United auto workers expanding as General Motors kickingoff thirdquarter earnings automakers we are watching earnings fox business jeff flock live in pennsylvania this morning outside gm Park Distribution Center with more, jeff . Reporter good morning to you what not a good idea to make three billion dollars in a quarter . Well how about when you are workingr workforce on strike saying you make enough to give them a big raise where we are with gm this morning earnings out a couple hours ago three billion in profits of so far in third quarter, they beat on revenue they beat on earnings per share they gained market share gm says. 2 stock gm up in premarket after being down several days in a row, they said they have strong sales strong average transaction prices did pull full year guidance say loving about 200 Million Dollars a week as a result of the strike, of course, just gm what about ford an stellantis . Altogether four billion loss thus car according to one estimate splierdz have lost almost three billion dealers and customers about almost two billion, wages lost by strikes about half a billion dollars. Layoffs continue to mount as a result of the strike we are at 7,000 if you total all of them ford gm stellantis together workers on stick . That number is over 40,000 maria. You mentioned walkout yesterday it with a as surprise strike got pictures of uaw president shane fain stellantis plant where they make high dollar 1500 truck, that is biggest plant and most profitable plant now on strike. Fane Agency Strike unfolding said for the first time i heard him say they dont really want to be on strike. We want an agreement done that is what set about getting a fair agreement for our members we dont want to be out on strike we are going to do whatsoever the hell we got to do to get it. Reporter response we are trained they say uaw would and an they said they had multiple conversations thought productive left bargaining table expecting a counteroffer, still waiting they say, maria old days used to get ugly on picket lines here with people busting heads strike breakers coming in, nobody talked publicly. Now ugliness in immediate no busting heads on picket line i guess a positive. Maria a lot of risky moving for uaw we will be watching thank you. Reporter you said it you. Maria jeff flock in pendency pennsylvania. Well be right back. Maria welcome back. Well, today marks day 18 since Hamas Terrorists attacked israeli is civilians. The countrys Defense Force is yet to launch its Ground Invasion into the gaza strip. The Biden Administration says there will be no talks of a ceasefire in all of the hostages are released. We are watching every move out of in this war on israel. Cheryl, final naughts thoughts. Youve got french president emmanuel macron, he ises actually there, and the big headline so far, prioritize gaza hostages release. Im not sure what that really adds, to be frank with you, maria. I know that president bidens been there, not sure what that did. We talk about kathy hochul, gavin newsom and now macron, i think they need to go back home and secure their borders, their countries. France is a mess right now with the9 propalestinian, prohamas protests. These are very dangerous times. I think its best to let the israelis do what they need to do and what is best for israel, and i dont think i see the point of these continual world leader visits. Im just not you are sure its helping right now. Many. Maria yeah, good point. Joe. We had a whole morning of muse about israel and the middle east, and i think we should finish where we started, with what President Trump actually said last night. If you do not sand for sanctions against iran, you the do not support you do not support israel because all of this chaos is a result of bidens shifting policy on the middle east from something that worked to something that clearly isnt. Maria like every other policy. Rebecca. So true. This is a continuation of obamaera changes with the middle east and america, and its just continued the come to fruition under this administration, and i just pray that god helps us all. Maria yes. We are all praying, finishing sure. Its been for shower. Its been a good show. Thank you so much. Let me point out we are about 30 minutes away from the opening bell, weve got a market that is rallying on the heels of strong earning. Dow industrials up 168, the nasdaq up 88, and the s p higher by 25 on the heels of better than expected earnings from General Electric, gm and many others. Tech is tonight. Thats going to set the tone tomorrow. Varney company picks it up. Stu, take the it away. Stuart good morning, everyone. Two the hostages released, israels invasion of gaza apparently delayed, the stock market i