tv Cavuto Coast to Coast FOX Business September 16, 2019 12:00pm-2:00pm EDT
she is starting to worry about how much prison time. david: 14 days is getting off pretty easy. saying i want a piece of that sentence. ashley: paid 500,000 for two daughters to get on usc crew. david: thank you, ashley. neil cavuto is here. neil: thank you very much, david. you know by now we're up a little north of 11%. but in historical terms that ain't nothing. oil surging not nearly as much as you would think. we'll go back in history to explore this anomaly here. crude is at levels we essentially saw back in july. by point of comparison, when we've seen the middle east implode all of sudden, we've seen bigger surges in past crises when oil popped more than 400%, for example, during the 1973 arab oil embargo. when it more than doubled during the 1979 iranian revolution. back in 1980, when iraq invaded kuwait. we saw bear markets back then in
the '70s that wiped 2/3 of the value of equities. that was then. is it now? it is hard to say but early indications no. what's remarkable here my friends, as we look at these numbers how tame they are, considering what is going on. if this were to have occurred back in the '70s and the world's biggest oil producer which saudi arabia was at time, so much of its oil sidelined we would be in deep you know what. so far does not appear to be the case. price futures group senior analyst phil flynn at the cme. phil, it is remarkable, you know? >> it really is and you really got to credit the u.s. energy industry, donald trump and his energy policies allowing u.s. energy producers to do what they do best, that is producing energy. it raises concerns when you listen to the democratic presidential candidates and their energy policies what a different story this might have been if we had a democratic president right now.
it could have done a lot more damage to the u.s. economy because these are candidates that want to get rid of fracking, get rid of drilling n that case we wouldn't have the buffer of supply that really kept this oil spike from really blowing out of proportion to adjust to it. having said that neil, i don't think we're out of the woods just yet. we don't want to do a victory lap. there is still significant risk on the table. hearing president trump there could be retaliation because of what happened. president trump said he is locked, ready to go. this is uneasy calm. the u.s. economy is in better shape than it has been in history to handle this type of shock. neil: thank you, my friend, very much. phil flynn at the cme. to put this in perspective this phenomenon did not sprout up under the trump administration. energy independence was the goal of the obama administration, the bush administration, before that
seeking out energy alternatives as well, wind, solar, other things, but the bottom line the fracking phenomenon began under bush years continued under the obama years. this is a long time coming this independence. a lot based on republican and democratic presidents alike, who didn't think too keenly relying on opec for variety of reasons none the least developments like these. this is built on notion that maybe saudis will correct a loss of supply. 5.7 million barrels affected today, by recouping two to three million by the end of the week, by the end of the week. it will be mitigated. keep in mind we're in the bit after global slow down, particularly in asia. so that coupled with these developments here, the supply and demand are kind of meeting each other. blake burman at the white house, with what the president is thinking of doing right now. he said, blake, he was locked and loaded. what does that mean? reporter: all options, i guess,
neil, as administration are on the table. the administration clearly putting the blame on iran as u.s. officials are telling fox that the cruise missiles and drones that landed in that saudi arabian facility over the weekend did indeed according to u.s. officials came from iranian soil. the president suggested in a tweet today do not put weight on iranian denials. you remember when iran said the drone was in their airspace. they stuck close to that story because it was a very big lie. now they say that they had nothing to do with the attack on saudi arabia. we'll see. energy secretary rick perry in europe said not only an attack on saudi arabia but also on the global economy and energy markets. listen. >> that the united states wholeheartedly condemns iran's attack on the kingdom of
saudi arabia. we call on other nations to do the same. this behavior is unacceptable. it is unacceptable and they must be held responsible. reporter: the president tweeted over the weekend that the u.s. is locked and loaded but the debate is picking up how to respond. that a tweet from mitt romney earlier today who said quote, direct engagement by u.s. military to iran's attack on saudi oil infrastructure would would be a grave mistake in his estimation. democratic senator chris coons talked about the possibility of u.s. military action. >> want to see the intelligence but it seems credible that the houthis don't have the advanced drones that carried out this crippling strike on saudi oil facilities. this may well be a thing that calls for military action against iran if that is what the intelligence supports. reporter: the president authorized the release of oil from the strategic petroleum
reserve. the department of energy says the reserve sits at 645 million barrels but neil, perry said at this point, action is quote, premature until everyone really gets a handle on how long this facility will be impacted from these strikes. neil? neil: blake burman, thank you very much, my friend. before we get to my next guest to explore options for this country, a quick peek what is happening for the dow. obviously this is going to be a very, very big issue going forward for the markets. the fact we're down 166 points in and of itself is not surprising. the sectors are breaking down pretty much as you would imagine. if you're an airline stock, this is hitting you hard, whether you're southwest or jetblue, united, american airlines or delta, those issues down anywhere 1 to 3% depending on the issue. if you're a defense stock, salivating this will be more attention to your issues, raytheon, lockheed martin,
grumman, host of others up anywhere two to 4%. if you're playing this conservatively as a lot of people are, looking for flight to quality, not only does it go in oil or gold or bonds. you see interest rates coming down a little bit on the notion here this maybe gets to be a safety play. to former president bush 43 deputy defense secretary peter brookes what we do in response. if we're convinced, peter, iranians are behind this and democrats believe there is good reason to believe it is iranians, houthi rebels, for example, wouldn't have the wherewithal to do this. i don't know if that is true. then what do we do? >> first, neil, of course we have to mitigate, right? the oil security issue we want to make sure this can't happen again. in saudi arabia it may require additional air defenses for the short term. we want to make sure we're correct in attributing it. we're getting early reports, i think iran is directly or
indirectly involved, whether iranian militias out of southern iraq or houthi rebels or iranians themselves. next thing we have to consult. we talk to the saudis. they are not saying a lot right now. i heard some drones or missiles fell short of the target. we can look at those to find out if iran is involved. then we have to decide how to respond. whether the united states thought this was an attack on saudi arabia. so they obviously have a large say in how the united states and others might respond to this, to these events. neil: they have been very oddly silent, the saudis on this, i'm just wondering why? it dovetails with their reluctance to show any eagerness for dramatically ramping up production. russia of the same mind set. i'm wondering, am i missing something here? >> well, neil, besides they're pretty busy right now obviously with this tremendous crisis on
their hands, also it's a public relations disaster. think about it. this was an attack on their major oil facility. the saudi people must be questioning whether the saudi government can keep them safe. there have been a the lot of attacks in southern saudi arabia from yemen and the houthi rebels. there have been attacks in northern, other places in northern saudi arabia potentially out of iraq by iranian-backed militants. so this is really a significant issue. i think they're also waiting to make sure before they point a finger. and i think there is plenty of time to respond to this of course like i said they have to get their oil production back up and online. neil: what did you make of russia holding off on any increase in production of its own? >> i leave it up to oil experts. some of these countries, oilainly, especially iran, why prices higher. if you're putting out less exports fewer exports in what 30
years, every barrel costs more, is more expensive that benefits iran. why would you go after saudi arabia's oil? obviously it is center of gravity for the saudi state arrival of iran but in a sense it will drive up prices. it hasn't driven up as much as many expected. maybe iran thought it would jump 20, 30%, every barrel they export would bring more money into tehran. neil: thank you my friend, very much. peter brookes. >> thank you. neil: the dow is down 160 points. i mention there are those who benefit from crisis mentality builds particularly when it has anything to do with the middle east. chevron, exxonmobil, two premier component in the dow are up, up smartly on this. it will increase a need for a lot of stuff that they churn out and refine. turn out this could be short-lived price hikes here. right now the price is real and comparable. what is remarkable here, this jolt to the economic system may be owing to the fact that opec
doesn't nearly have the clout it used to, for that matter saudi arabia. we are taking this pretty well. that is a remarkable development. we're on top of that. also on top of negotiations underway between the united auto workers and general motors. [shouting. >> no contract, no cars! no contract no cars. >> we are the union. >> mighty, mighty union. devices are like doorways
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call, click, or visit a store today. neil: gm stock down 3%. nothing has to do with what is going on opec, saudi arabia. everything having to do with 49,000 uaw workers walking off the job. they want better benefits. they want a whole other things they have not getting down from gm. they made a lot of money since the meltdown and rescue.
they want a piece of that. grady trimble is live fors. hey, grady. reporter: neil, we passed the 12-hour mark of the strike. this is modest group behind me. this is snippet what is going on across the country at gm plants. to be honest with you there is ocean apart between what the union is asking for according to union officials and what gm is offering at the bargaining table. the conversation is going on in downtown detroit a few plants miles from where we are here. there is a plant set later to close. they want higher wages, better benefits, including health care. in an unprecedented move gm put out what it offered to the union, which included $7 billion worth of invests, a long with a little more than 5000 new jobs and higher wages. but the union is prepared to take this thing as long as it has to, they tell me, until they reach the deal that they want.
>> what is my fear in all this? we might be here for a while. we can't make it on $250 a week. >> ultimately we're going to get an agreement with general motors. we're going to reach a tentative agreement whether today or tomorrow. no one knows the time frame. but that is our job and that is our goal. that these people here depend on it, quite frankly all of america is looking at this. reporter: you hear people honking as they drive by supporting these people on the picket line. now the union wouldn't get into details what they're asking for but they say they have only agreed on 2% of what they're asking for with general motors. so could be quite some time before this thing wraps up but either way, neil, we'll stay on top of it and bring you the latest. neil: grady, thank you very, very much. meantime oxycontin maker purdue pharma is officially in bankruptcy. that filing paves the way for a settlement. what does that mean for the
victims? susan li with a lot more. what are we looking at? susan: we were expecting purdue pharmacy to file bankruptcy on sunday night. that is what they have. this halts further litigation against the company, maker of oxycontin, they have been accused of sparking the opioid crisis across america which has killed 400,000 since 1999. this doesn't include a partial settlement as they call it, with two more dozen states across the country and cash portion of $10 billion, with 3, 4 1/2 billion contributed by billionaire sackler family, which owns purdue pharma. 18th richest family across america. operations will continue but overseen by a trust with the portions and contributions going to the, shall we say benefit the plaintiffs in this case. now the sack letters themselves are not filing for bankruptcy -- sacklers. they are not filing bankruptcy. that is important. over two dozen of the states,
they didn't sign on a to the partial settlement. we also have a department of justice looking to civil and criminal complaints. you can imagine there will be more court cases more lawsuits to come. purdue pharma as i mentioned to you makes oxycontin. it has been aggressively apparently, allegedly marketing opioids i guess without informing patients of the addictive qualities of the drug. purdue pharma i asked them, what do you do if you're a plaintiff in this case and how do you get part of the settlement? they pointed me to this website. if we bring it up, primeclerk.com. file one of the claims, they will get back to you. don't forget they're looking how to distribute some of this money, exactly how much because it really depends how much oxycontin this company sells over next few years which in itself is pretty controversial. neil? >> susan, thank you very much. a quick peek at the dow down 159 points. you would think it was a lot
worse. history suggestion anytime we have a conflagration in the middle east it has been worst. oil down 10%, typically with flareups, it is often time double, triple that impact. nothing like that right now, maybe owing the fact that opec is not what it used to be. within the dow, exxon, energy sector in the s&p 500 doing quite nicely, thank you. they're benefiting from the higher prices today. the question is, how long they last? more after this. der. that's why your cash automatically goes into a money market fund when you open a new account. just another reminder of the value you'll find at fidelity. open an account today. imagine a world where nothing gets in the way of doing great work. where an american icon uses the latest hr tools to stay true to the family recipe. where a music studio spends less time on hr and payroll,
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raising a lot of concerns how that could happen. it could have multitrillion dollar effect on oil prices contained, up about 11%. charlie gasparino and i could remember if that happened in the '70s, it would be a big story. >> or the '80s. neil: or the 80's, exactly. i'm not minimizing but by comparison relatively contained. we're getting word that saudis might delay the aramco public offering. >> we're reporting that. fox business reported clearly being discussed is a delay of this thing for a few months. neil: a few months? >> we're not hearing indefinitely. they think they will have their hands around two months. contingent whether this is delayed, they have to make sure these oil facilities are secured. i mean, two lousy little drones, right, is it two? , i mean. neil: it is remarkable. no soldiers, no air attack. it was drones.
>> it was cheap way doing this. neil: the richest kingdom on the planet. >> basically knocked out their oil supply. neil: yeah. >> that is one thing. they're weighing security. they've to go to investors to say, our oil facilities are secure. neil: good luck with that. >> the second thing they have to have calibration how much oil they can put out with these type of attacks or with this attack. it sounded like. it sounds stupid. look at it this way. the ipo was priced off of how much money saudi aramco makes. they make a lot of money through the oil supply -- or selling oil. if they don't have a good handle how much they could sell, how much this will impact, it screws with the pricing. it is a disclosure issue for investors. they could be sued bit sec. investors if they're not disclosing any and all, the full month atty how much they have to
produce. neil: this offering will be in saud, right? >> it is a multilayered offering. neil: the own reason i ask, they have their own rules. >> but u.s. investors won't buy it if they don't play by their rules. you want this thing, at some point you want other changes, you want currency that is liquid that trades every place. no investor will buy this without these sort of things addressed. that is what i hear they're working on? will it definitely be delayed? we don't have that. they're seriously talking about it because they have to address those two major cursed from day one almost. neil: it really has. >> first they were going to do it, then they weren't going to do it. then the assassination of the journalist jamal khashoggi last year. a lot of banks were afraid of dealing with the crown prince. the assassination probably was caried out by someone in saudi arabia close to the crown
prince, if not himself. neil: days after he hand-picked his own energy guy. >> right. there is a lot of questions. neil: i don't want to be cynical about this but wouldn't they welcome the higher oil price? >> it is a interesting way of looking at it. oil prices are going up, thus, that should make theoretically the stock more attractive. the downside reason going up because of risk to their supply and disclosures they have to make. part of this thing is legal. you have an offering document. lawyers are pouring over it. in the offering document they have to disclose risks to production, stuff like that. can you imagine what the risk factors will be on this thing? it will be pages and pages here is how we deal with the situation going forward. that is one of the problems. they will have to disclose how they're going to tight end up security, disclose it in a legalistic way that doesn't mislead investors. this is tricky legal stuff when you do an ipo. one of the unfortunately risks
the saudi arabian, of saudi aramco is terrorism. you know alibaba had its own risks. the chinese government essentially controlled it. peoples republic of china is essentially behind a alibaba, that is a communist country. that was disclosed in the risk factors. investors bought it because -- neil: only fame -- game in town. >> oil supply chain is locked down. neil: that is amazing they could be taken out by drones? >> that is -- i spoke with underwriters today, can you believe, like -- neil: they have been worried about an attack on kingdom, soldiers flooding into saudi arabia houthi rebels. >> thises with a toy rocket almost. not quite, but in that genre of not the most sophisticated -- neil: no single soldier involved, no single soldier response. >> not the most sophisticated of way of knocking out their oil
supply. neil: you're the best, my friend. charlie gasparino following all this closely. china facing a slowdown, a 17 1/2 year slowdown, you have to go back that far to see these big numbers. china's finance minister saying about the 6% growth we've been enjoying i don't know that we can keep going. a lot of people were saying that 6% growth was a lie and that lie is not sustainable. after this. i get it all the time.
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neil: we're getting word amazon reportedly changed the search algorithm in a way that would boost its own product. in other words you want to look for something, i don't know, processed meats and cheeses it would guide you to its own processed meats and cheeses. i don't know if they have meats and cheeses but not a bad idea, amazon. they're looking into that. regulators are circling around the company saying you don't play fair, you're too big for your britches, we're keeping track of all that. a china slow down that seems to be deepening before the oil dependent nation got word out of the attack on oil facilities that will clobber prices for chinese, a big buyer of that oil. industrial output in china hitting a 17 1/2-year low. liz peek, on what that could possibly mean. that adds insult to injury, isn't it? >> this is another signal that china is struggling to deal with
effects of trade confrontation. president trump talks about that all the time but he is right. neil: do you think the development with oil and china, depend send sy on that oil, might have hasten ad settlement going to the united states? that is the last thing they need. >> that is the last thing they need. the problem we don't know how long it will continue. saudi arabia is reaching out to other opec members telling them not to increase production because they can manage the short fall in supply by themselves. neil: they all kind of enjoy the uptick. >> you think russia is celebrating? absolutely. so i would view this as a hiccup but the truth is, neil, as you have said before on air, we don't know what the chinese economy looks like. we're petting scattered information about bank failures, companies being under pressure because of overly high debt. all kinds of things seem to be
going wrong. we don't know if it grows 6%, or 2%. you don't know. the answer, china is in a very different place than 10 years ago when they had to put tens of years of workers migrating from rural areas to cities to work. that is no longer the case. they are at a demographic fall off point. where numbers of workers basically stymied, stagnated. it is a different kind of an economy. here is what weigh do know, they want their consumers to step up spending so they can get off the debt-fueled infrastructure construction. neil: it was government edict. >> it is not working. why? china is not a very confident nation and when you have a crackdown on law and order really repressing individual freedoms it doesn't work. i think people who are projecting never ending growth in china and overtaking of the u.s. economy, i think it's a little bit like the japan story in the '70s. is it going to work for china?
maybe. but there are signs such as this industrial production falloff that not all is well. neil: not all is well, to your point, let me switch to the oil situation in saudi arabia i certainly can remember a news item like this would have sent oil prices sky rocketing. certainly we saw it during the '70s oil crisis, they doubled, tripled, quadrupled often time in matter of weeks. we saw that again with the persian gulf wars. the knee-jerk reaction, buy up the oil, wore about later. i'm not minimizing a 10 or 11% hike in oil prices but that is nothing like we would have seen in the '70s and did see in the '70s and countless crises since. >> for good reason. there used to be a real chokehold on the world's economy by didn't of saudi arabia oil production. something happened to saudi arabia the great swing producer in decades. we were all in trouble that has
so significantly changed. there are so many other sources of oil in the world, particularly the united states. neil: we're a net exporter. >> we're a net exporter. people really underestimate what a shock this is to the energy markets. no one thought the united states was going to turn around a long term decline in production and now become the world's biggest oil and gas producer. that is an as stoning thing. neil: that is nice situation for companies like exxon, chevron, mobile, to be in because price of stuff is rising but longer term to control the market means a lot more than whatever the price is. >> sure. don't forget, oil prices today around 50 bucks or whatever, there was a time when it was $100 a barrel of oil. neil: absolutely. >> so now when you get a 10-dollar increase in the price of oil, maybe it costs consumers $25 billion. we have 15 trillion-dollar consumer economy. it is just not going to be that meaningful. by the way, i don't think it
lasts very long. neil: knowing you were coming i always do my homework, i know you do your homework, we. >> who had the most homework. neil: 1979 when oil prices spiked with the second opec crisis do you know what that peak was in inflation adjusted terms? >> no. neil: $125 a barrel. >> wow. that is a big change. neil: that is a huge change. huge sentiment. real quickly one of the things i was more worried to see is how easily this facility was compromised, without a single soldier, without a single soldier response, drones, came left untold damage, longer term in the middle east would be a pressing urgent, critical concern. i think they respond to that quickly. >> i gathered what happened, they do have air defenses protecting their oil fields but they're geared towards airplanes. i always go back to george w. bush's comment it was a failure of imagination, the
attack on 9/11 this was a failure of imagination, they had 10 drones attacked oil fields so quickly, so effectively. but they will respond to that, i'm sure. neil: drones are front and center. >> they are. neil: iranians shot down one of ours. you're saying these drones are taking more prominent -- >> i agree. people wonder what can they do? why are we concerned about them? we know what they can do. neil: i know you will explore this on "bulls & bears," a lot more. liz peek she knows what she speaks. me, i get excited when i do a historical analogy like that, 125 oil. work with me people. oil is up 11%. most of the s&p 500 sectors they're kind of split, oil-related issues, doing well. but you have to break that down. good day for defense stocks, raytheon, lockheed martin, northrop grumman. a host of others. predictable beneficiaries are
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should always be working harder. that's why your cash automatically goes into a money market fund when you open a new account. just another reminder of the value you'll find at fidelity. open an account today. neil: in a battle of steel being services netflix landed "seinfeld" streams rights starting in 2021. that could be a deal changer for them. just as disney is hitting the ground offering its own product, unique content. you have what is happening already with apple with that $4.99 a month content. apple is very satisfied, just add this to the existing streaming services you have because the price is so good. you're dyingdigging deeper into debt. it will get deeper and deeper. 10 days to avoid a government
shut down. they're a long way from being done. maya macguineas says the problem they might get to the finish line, get these approved, but will we be worse off for it? you're still concerned. both sides argue it. this is part of our budget deal. we'll get through it. spending bills are approved. live goes on, no reason to worry. numbers are getting worse. >> politicians are caring about it less and less. something will have to give. now we're in the midst of one of these last minute scrambles. seems to have happen every time. it is fiscal year, we didn't
pass any bills. who knew. we are about to shut down the government. neil: you didn't like the bills they were talking about. they preordained. added spending that will make it a lot worse. >> they just passed one of the single worst pieces of legislation i have ever watched from fiscal perspective, busting through the spending caps, getting rid of them forever. we have no constraints on discretionary spending, one of the justifications many people said, gave irresponsible vote, well we needed to help push through the appropriations process to get bills done in timely manner by end of the year, yet none of them have moved. the ones moved out of the house are too high in terms of level of spending. neil: all said and done, spending $300 billion more than would have been the case before? >> over two years. neil: upwards of two trillion over 10 in terms of how much increased assumption of discretionary spending.
starting point every year going forward has no more constraint and if congress doesn't have spending restraint, they start throw everything on the credit card. that is what we're seeing. neil: you know this better than i do, they love the last minute thing it, forces them not to do something. they can write off if we had more time which would have done this but don't really want to do that. >> governing by crisis or compromise at the last minute, compromise is generous word. we are supposed to meet deadlines. parties have different opinions. you have to scramble, compromise, make up difference between the two come up with something nobody loves, but now, so much of our bad fiscal situation is as a result of our bad political situation, but politicians don't want to give an inch. only way they say they pass a bill they didn't love, my back was against the wall. we were to have a shutdown, default, use all the terrible to do their job.
neil: if i'm going to be embarrassed you better be embarrassed. if i'm not going to get something, you will not get something. in the end they get something. republicans push defense, that is fine. democrats push non-defense, that is fine. they justify it. we'll get it done. >> they could have done it without bringing it to the brink. in the end comes to spending bills, what we saw this year and two years ago, both sides spent more than they asked for in terms of defense and domestic chris correction nary. because they're borrowing on all of it. neil: i've seen these polls, say the debt, not even a top 10 concern. so they feel emboldened to say, we know maya is worried about it. god bless her. she has within worried about it since she was little girl but no one else. >> politicians are not have their phone ringing off the hook you need to address record levels. neil: republicans or democrat, ross perot thing, guys this is not sustainable.
this is problem sapping everything you want and your kids and grandkids. >> ross perot is exact right model. somebody who will not win the presidency, run on an issue both sides know is true. behind closed doors they acknowledge record levels of debts trillion dollar deficits, interest paints growing are a problem. neil: people are very smart. >> they do know that. neil: when you explain it to them. they say that is not good. >> they don't like the solution us because they're hard but willing to do it with leadership with ross perot-like. we need somebody to go out on the field, guilt the other politicians being more honest. neil: good luck with that you bonds and the rest. looking what do you think of that. >> i think it had been smart financially would have done it already. there are tradeoffs. rates are much lower. you see a lot of times countries gotten into this for long term it is damaging to their economy. may be fine to have some longer --
neil: to be clear you can't renegotiate debt. in other words if bondholders are expecting to get paid x-amount you're renegotiating on that you can't -- >> no, i'm saying long term. you might use it for a little while now. neil: take advantage of it. >> what i would like to see the opportunity with lower rates to use that to bring down some of our debt. we don't have interest payments growing as fast as they would have. neil: because of lower rates. not because of -- >> we're borrowing more, rates are being generous to us. take the moment while the economy is strong to get the debt under control. we know there will be recession at some point. then you want to have more wiggle room than we do. >> we don't have any wiggle room. you have to calm down, lady. worried too much. take a chill pill. >> maybe they borrow some more. neil: maya mcginn has knows what she speaks. she has been on this before it was cool. when it was briefly cool she was there we'll have more after this
but in a world full of talking, shouldn't somebody be listening? so. let's talk. we are edward jones. with one financial advisor per office, we're built for hearing what's important to you. one to one. edward jones. it's time for investing to feel individual. i'm working to treat every car like i treat mine. adp helps airtech automotive streamline payroll and hr, so welby torres can achieve what he's working for.
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neil: all right. we are into the first day of a uaw strike against general motors. some 49,000 uaw workers are involved in this strike. the "detroit news" editorial page editor says that the strike has a lot more to do with bribery probe as anything else. maybe he can clarify that. clarify that, nolan. >> yes, neil, good to be with you. you have compromised union officials bargaining for this contract, talking with general motors, they have very little credibility with their members because remember they got kickbacks and bribes and some of the money was designed to influence contract talks going back as far as 2015. so they have little credibility with their members. and, if they signed a contract i
think, they had signed a contract without a strike, the members couldn't have trusted whether that they were acting in their best interests. so i think they walked away from an amazing offer from gm. they basically got everything they wanted going in, yet, i think, this strike was inevitable because of this corruption probe which just keeps unfolding. neil: we do have nine convictions related to that probe but i could turn it around another way, nolan. if bribery charges were there, an some of these who were convicted of taking bribes, someone offered them bribes, right? >> yeah. neil: someone on the company side did that, right? >> yes. if sergio marchionne hadn't died he would be subject to criminal charges. he was under investigation when he died. so we've had at least one chrysler official convicted already. there is somebody on the other side of that but in terms of taking a contract to your members, members who now don't
trust your integrity, would they ratify that contract if they, without a strike? i mean if they thought it was won too easily. look what gm is offering. gm did the extraordinary thing yesterday detailing the offer. neil: i saw that what did you make of just that? they wanted to relay how friendly terms were. they increased profit sharing. they are participating in this, getting benefits, closer to guarantying jobs for part-time workers who will be full-time workers but they let that out there? >> they wanted the public to know. particularly they wanted uaw members to toe what they were sacrificing their paychecks for. this is a very good offer. so they bypassed the union leaders. $7 billion in investment over the course of the contract. they will save the detroit town plant. build a new battery plant.
first ever union representative battery plant in lordstown, ohio, where the plant is being closed. 5400 new jobs. 8,000-dollar signing bonus. you're taking people out on the street, people making $1200 a week base, now will be getting strike pay of $250 a week. i guess they wanted the membership to know what they were sacrificing that grand a week for. neil: how long do you think this drags on? if i'm ford, am i worried what i see going on if the arrow turns to me? >> i don't think ford would be worried. we don't know how long it will drag on. depends whether gm is willing to sweeten the offer enough for uaw president doug jones to save face, get support back from the membership or let him dangle. he is named, doug jones is named, believed to be the unidentified uaw official named in this federal investigation
into the misuse of funds. he and former president dennis williams for whom the uaw built a vacation home at the resort in black lake, michigan, are both unnamed, briefed to be unnamed conspirators here. it depend how much leverage gm thinks it has from this corruption poll. neil: always about that. how much of an edge do i have? nolan findley, thank you very much. >> yeah. neil: for joining us on the phone. oil even with this by comparison, small change, compared to disruption in the middle east in the past. it still does represent here and abroad the biggest price gain we've seen in a day in 10 years. we'll have more after this. tv announcer: it's just as powerful as the lexus rx...
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1970s. we were rip-roaring with long gas lines and prices that were doubling, tripling, quadrupling. meanwhile, along with the strike, we have, well, a strike. gm talks are still ongoing. we will get an update on what uaw workers really want. we talked to a guy who follows this very very closely and says that a particular scandal within the uaw is complicating matters. then the attack on vaping heats up and is leading to new bans in new york state pretty soon. you won't be able to get these products anywhere. neil: i wanted to leave you with that pregnant pause to think of the magnitude of what was happening. oil is on track for its biggest gain, daily gain, since february of 2009. jackie deangelis on why this crisis might not be the '70s all over again because by comparison, it is nowhere close to the '70s all over again.
what do you have for us? jackie: good afternoon. well, i'm not discounting the impact of a 14% move in the oil market. it's certainly significant. but i will say that most people are saying it's different this time because the united states is producing so much oil and there is such a big chunk of supply that's out there. so according to the latest eia report, the u.s. is pumping 12.4 million barrels a day. that is the highest on record. it is the largest global oil producer. the sachludis, 9.8 million. the russians, around 11 million. opec is down to less than 30 million barrels a day. pretty important when you think about it in the scheme of things. on top of that, i think the surging prices are capped a little by the fact the president said he will tap into the spr, strategic petroleum reserve, to curb price increases. remember, there is 700 million barrels there and it's all down in the gulf and it's ready to be refined and shipped up through the pipelines once it's sold, if he chooses to go through that
option. now, i will talk about the impact this has on consumers, because a move from 55 to 61 right now or 62 and change, could probably add anywhere from 10 to 25 cents to gas prices. that's what analysts say. but gas prices are pretty low right now. the average according to aaa right now, $2.56. it was $2.84 at this time last year and it's well under that $3 mark. so all of this is going to depend on are there more attacks, how fast do the saudis get their supply up and running and back to the market, and to put it in context, the way you started this, in the past we have seen huge price disruptions when it comes to oil, so in 1973, the oil crisis then, the arab oil embargo, oil moved 400%. it wasn't in a day. in 1975, iran, the revolution, oil was up 100% over that period. 1990, iraq invaded kuwait and oil was up 110%. so on a relative basis, you can look at today's move and realize
that it's relatively small and the game is different with the u.s. being such a big influencer in this space. neil: thank you very, very much. to put it in perspective, the international energy agency did say for now, the markets are well supplied with ample commercial stocks. we should also let you know that a kremlin spokesman has said the presidents of russia, iran, turk turkey, they were all getting together, talking on the phone about all of this, never discussed the saudi attacks. never. never even came up. okay. just want to pass that along. meantime, the fallout here both domestically in the united states, globally of course, the asian markets were hit the hardest on percentage basis. they are vulnerable to certainly saudi oil, get a lot of saudi oil, iranian oil to boot, by the way. that might potentially be in short supply for the time being. we have our panel with us.
joseph, reading seems to be, as jolting as they say, it could be a hell of a lot worse. >> i think to me personally, i'm more concerned about how the attack was executed than the effect. neil: that is a little scary. >> to me, that's the story we should be focusing on. from an effect standpoint, america is much better positioned today than we were in the '70s. you look back at 2011, you look at dealing with that libyan crisis, you were able to have 28 nations coordinate 60 million barrels of oil so i think again, america is much more better positioned today than we were in those '70s and for my purposes, for america's purposes, geopolitically, we should really be talking about the attacks, not necessarily the impact. neil: not a single soldier involved. just a couple of drones. david, we think all signs point to iran. so the president has promised some sort of response, locked and loaded, whatever that means. what do you think? >> it's amazing how bold people
get when john bolton is no longer in the administration, i guess. there's my little plug for -- neil: he wasn't the one who said don't trust these guys, don't deal with these guys, don't make negotiations. >> he said a lot of things that reflect a lot of wisdom but he will be missed for some of us. look, i really agree, 14% is a big number today. this brings oil to where it was july 10th and before that, may 24th. we have seen it twice this year when there wasn't a saudi attack. $60 oil is not going to disrupt any global markets. so i think geopolitically, you have to wonder not only how it happened, what the response is going to be, does it end up forcing the president's hand. you saw this morning tulsi gabbard kind of poking at the president a little bit, saying are you going to do anything about saudi arabia and so forth. ultimately, from an economic standpoint and certainly u.s. economy, this is the whole reason why a lost t of us have spent a generation saying the
u.s. needs to be the leader in oil production so we are not captive to forces and nefarious actors. neil: a lot of countries are. the fact that brent, the oil choice for europe, that has been more over there than here, so they are another bird, right? >> yeah. clearly, it's a concern. we are the largest oil producer in the world. the permian basin in texas became the new revolution and the start of this uptick of oil production in this country. i agree, this is a geopolitic geopolitical -- we have to be careful. we have a non-interventionist president and what is the tipping point with iran, who is very clearly a bad actor in this and other spheres. what do we do that is appropriate and measured if we find it is iran but how do we ensure -- neil: -- if i can be so crass about it, they feel that getting in your face is the answer, whether it's north korea, kim
jong-un keeps launching missiles, whether they technically abide by whatever they agreed to or not which i n iran -- >> i think we have to really confront the fact this is a changing world and we have new bad actors on the rise, bad moons rising all around the world. i think the one thing, to make it political -- neil: they have always been a bad actor. >> true, but things are becoming more imminent now. i think if you look at what's not being talked about during this presidential cycle, you have people obviously talking about non-intervention, not starting new wars, even mayor pete and individuals on the democratic side talking about getting out of afghanistan. we have to be talking about are we prepared to meet our commitments around the world. it's that famous phrase from jfk, our arms must be commequal our commitments around the world. america are being caught asleep at the wheel. neil: jfk also said those who tempt a tiger often end up inside the tiger.
i'm wondering who's the tiger. >> it's interesting we would refer to president trump as non-interventionist because i think it's been amazing to watch his popularity with remember in the campaign, the bomb the you-know-what out of isis rhetoric and the real isolati isolationist crowd? i think he's played both sides of this remarkably well from a political standpoint. neil: doesn't that confuse markets? >> it confuses markets and certainly confuses me and allies and all of that, yes. neil: you are a hater. you like both, then you were dissing the president. >> it's not being a hater. honestly, it is confusing that we don't know exactly what the ideology is here. neil: i think there's a strategy to that. keep them guessing. >> think about the way the president dealt with kim jong-un, it was never really clear we were talking about syria on the one hand, then it was very -- neil: maybe the leader of iran needs to write a lovy-dovy letter. >> in a very big envelope.
clearly, it's a problem for decades and decades, the iran deal thought to constrain one strand of iran's problematic behavior but this is a massive country with a massive military presence. this isn't going to be overnight. i think it requires more than america. neil: what if it hastens a trade deal? if china is slowing down to the degree it is, the number we got out of china shows it's down to 17 and a half year lows, maybe it forces them to the table. so that's a silver lining in this. >> i think i'm more concerned about looking what's happening in israel right now. we have this election coming up right now and i think if you look at the footing israel is on, the footing iran is on, i think to me, that is where we need to blast our eyes to, so to speak, to say we understand that, you know, we are bound to our allies, israel is our strongest ally in the middle east and as israel goes in many ways, that's going to force our hand in how we actually deal with these situations. >> are we bound to netanyahu or
bound to israel. it's very clearly a strong relationship between president trump and president netanyahu, and i think similarly, netanyahu has found his future almost israel's future in the president, there's very similar rhetoric. it's going to be a very interesting -- >> we definitely have a special relationship now. if we no longer have that affecti affection, then i think it is replaced by an even stronger affection now with our ally in israel. neil: before we go to break, some tend to say be prepared for the black swan development or the thing you weren't counting on. invariably, those comments, not all the time, to be fair, but could something there, something generated now with this, be that? >> i think the whole point of a black swan event is that you don't know what it's going to be. so all the forecasting is made for this cottage industry of doom and gloomers and so forth.
ultimately, whenever someone is predicting what the next black swan will be, it's what i always know it will not be. in this case, it's an easy pick to say middle eastern geopolitical fragility is a likely candidate to do something. neil: you are not of that mind? >> no, i'm not of the mind that it's predictable. i'm at the mind that it's potential. i think there's issues with russia, issues with china. i think the european union economically is the most likely candidate to create a black swan global economic event. but the european banking system is completely insolvent and we don't ever talk about it. it's stuff we don't talk about that scares me more than stuff we do talk about. neil: kind of bumming me out. >> i know. neil: we will take a quick break here. in the meantime, with the dow off about 137 points, off our worst levels of the day, as this gm strike goes on here one full day, it could linger for quite awhile. what are the issues that are dividing them? after this. ♪
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neil: all right. gm stock down a little more than 4%. the largest automaker right now facing its first strike in 12 years. the uaw wants a whole lot of stuff. kristina partsinevelos has been following it very closely in arlington, texas, with what some of that stuff might be. reporter: so what we're seeing right now, this is the plant that makes large suvs. they are estimating right now that they could be potentially losing $1 million a day which is contributing to that stock loss. you have people picketing, they have been picketing over 4,000 employees just at this plant alone, spread all around this massive building. what are they demanding? what is the union demanding? fair wages, profit sharing, given that gm made $8 billion just last year alone. they don't want to see their health care go up because right now, they are paying about 4% of their health care costs, according to gm. it potentially could go higher. gm also announced four plants that were going to close across
the united states. they obviously don't want to see that because that results in more job losses. you did have gm, they reached out and they commented saying that they have already contributed and promised to give $7 billion over the next four years in terms of investment to add another 5,fo400 jobs and increase health benefits. several politicians weighed in, even democrat candidates, castro, who tweeted the ceo of gm made $22 million last year, that's 281 times the median gm worker. i stand with the 46,000uaw members who have moved to strike fighting for affordable health care and fair wages. you have also the uaw vice president, relatively optimistic that a deal could get done. listen in. >> we have a lot of work to do. and a whole lot of areas. we are going to sit there and talk about how we can move this thing forward, because
ultimately, we are going to get an agreement with general motors. we are going to reach a tentative agreement. reporter: i have spoken to some employees that put door latches on, have been here for 20 users. some told me about temporary workers that have been in the temporary position for six years and can't get a permanent job. these are just some of the complaints i'm hearing from these strikers behind me. they are not allowed to talk on camera, according to their president. again, it's being estimated that gm could be losing up to $1 billion per hour at all these closures across the country, potentially up to 49,000 people striking. if this continues, if the strikers stay out for at least a week, they will only be getting $250 u.s. per week paid out by the union. there is still optimism it could be rectified and they can get through with the negotiations. we're waiting. back to you. neil: thank you very, very much. i believe the figure was one million per hour. to her point, it is something that could drain the company the
longer this drags on. let's get our panel's reaction to all of this. danielle, david, joseph. danielle, if this does drag on, you have seen a lot of democratic candidates already pounce that the workers should share in the riches and they haven't been, that they are going to make sure this is a campaign issue. is it? >> absolutely. you think about somebody like bernie sanders or elizabeth warren, certainly the democratic party has been really the pro-union party for as long as unions have been around. we go back to the supreme court cases of the last century where really, you know, the right to work and the right to contract was really questioned. one interesting bit to look at in this paradigm is right to work states versus non-right to work states. if you are not in a right to work state you should get more money. right to work weakens unions and many studies have shown 3% lower wages if you have unions. this matters. this is the working class, the engine of our economy. this is about health care and
benefits and the auto industry is at an inflection point so the concern is are they going to commit to long-term spending on the workers, raising pay and raising benefits. as electric cars and self-driving cars come to the fore which involve a lot of investment by these companies, this is where the rubber hits the road. workers want to be protected. they are worried about a slide in sales and a change in the nature of -- neil: you want to go after your boss for more money when your boss is doing well. this boss is not doing as well so the question is there might be a limit to what mary barra, the board, can offer. >> yes. you would think we would have learned this lesson. i mean, the company went through bankruptcy because of the commitments they made that they couldn't keep to pensioners and union demands over a generation. that's exactly what happened economically. it's indisputable. right now, for julian castro to jump in with that kind of class warfare is so unreasonable. neil: to be fair, a lot of those candidates are doing it. >> that's right.
that's right. i think that it will be a campaign issue but i'm not convinced it's a winning one for the democrats this time around. neil: the president kind of sounds like he backs this. >> there's two issues. number one, you have to make sure we are taking care of american workers. that should go without saying. number two, to your point, we have julian castro talking about $22 million salary for a ceo. let's be very clear. that's not even a freedom dividend level of payout if you want to take all that money and give it to those 40,000, close to 50,000 workers. you are talking about less than $500 per worker, even if she decided to work for free. i think we have to talk in stark terms. you are looking at a company dealing with market uncertainty. you have democrats who are saying we want to have basically zero emissions. they want to basically revolutionize the auto industry but general motors in particular, if we are being honest, struggles with the exact type of vehicles that democrats are trying to -- neil: it's the onus of that rescue and the fact it got one, that company. >> that's the issue.
they are trying to get them to understand we are dealing with market realities and human realities and we should be able to address both. neil: final word on the subject. when we come back, the governor of new york banning flavored e-cigarettes. and all of a sudden, the representative of that industry is saying time out here. he's next. you wouldn't accept an incomplete job from anyone else.
wow. thanks, zoltar. how can i ever repay you? maybe you could free zoltar? thanks, lady. taxi! only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ names like bubblegum, cotton candy. these are obviously targeted to young people. we would ban all flavors besides tobacco and menthol. neil: all right. new york moving more than any other state has as the first to ban e-cigarettes outright. the american vaping association president greg conway here, says this is the wrong move. the governor, as you probably are aware, says it's a threat to kids, we've got to keep them out
of their hands. you say? >> we say that you can take and keep these products out of the hands of youth without impacting the two million plus adults in new york state who still smoke cigarettes. we know that nicotine vaping products are far less hazardous than smoking. even the fda notes that they can be very helpful and a great benefit to public health of adult smokers who switch. going straight to prohibition is a bad idea that's not going to actually work. neil: you said safer than cigarettes. the governor went so far as to say no one can sit here and say long-term use of vaping where you are inhaling steam and chemicals deep in your lungs is healthy, in other words, that it might be better but it's not healthy. >> well, let's talk about how much better. the royal college of physicians and public health england released extensive scientific reports saying for a smoker who switches, vaping is at least 95% less dangerous than smoking. you are talking at least 20 times safer, less dangerous than smoking cigarettes.
when we know that the most popular flavor among adult switchers is not tobacco, it's not menthol, it's fruit and sweet flavors, so governor cuomo can pick out whatever ludicrously named flavor that represents .01% of the market but the fact is that the fruits and sweet flavors that he is banning, they are actually the most successful products at getting smokers off of cigarettes. neil: but you would admit that your industry has effectively targeted younger people, kids, right? >> actually, no. the industry does not target youth. the industry -- neil: you make strawberry, lemonade, bubblegum, mango, cotton candy, fruity, mint, on and on. i understand there are adults who like that, who it might help get off cigarettes but you don't think kids would find that appealing? you didn't think the approach you took to cartridges to mimic the look of a disc that you could put in a computer, to use
it in school, which many are? >> to say adults find it helpful vastly underestimates the amount of smokers who have switched. millions have bettered their health by switching to vaping products -- neil: do you think more adults than kids enjoy these flavors? >> there are about 14 million adults in the u.s. and probably 12 million, 11 million of them use flavors. neil: if the government came -- i understand what you are saying but if the government came by and said all right, we won't ban these but we will ban kids using these and the marketing of kids for these, would you be open to that? >> of course. we are very much open to tobacco 21 which will soon be in effect in new york. marketing restrictions, flavor name restrictions. but the bottom line is that we need to keep these products available to smokers so they can use them to quit and just moving towards prohibition as president trump hhs secretary has tried to force on to him at the national level, it's bad policy. for president trump, it could actually mean not being
reelected in 2020 because people are going to be disaffected if these flavors get removed from the market -- neil: are you saying these 14 million folks who might have been open to voting for donald trump wouldn't because he removed their vaping product? >> americans for tax reform had an op-ed last week in the "washington examiner." they did polling data after the 2016 election and found they overwhelmingly went for trump in part because the obama administration treated this technology so badly. when president trump only won some states by 10,000, 15,000 votes, if flavors are band at the national level, that will result in people being disaffected and staying home. neil: is that a threat? >> it's not a threat. it's just reality. neil: that sounds like a real threat to me. >> i do not want to threaten the president because the president has been great for this industry. under president clinton, the industry would have been exterminated in 2018, one year ago. we had an extra year because of president trump's leadership in picking scott gottleib to run
fda. neil: i understand your industry has responded a lot of these were corrupted products, thc, oils, i get that, and so many others were severely tainted and compromised. i get that. would you then recognize the need if the fda came along and said not only can you not give this to kids but you have to redesign your product so it can't be corrupted like it was in some cases, that resulted in deaths and far more injuries? >> any drm technology to block out other cartridges, china can beat it within a week. you saw that with k-cups. they tried to mack ke it so you could only use products distributed by the k-cup maker. neil: we know people in the black market are still going to use this compromised material that threatens kids. how would you -- would you do anything to deal with that? >> the dea should be involved, taking out these drug dealers. that's the bottom line. the drug dealers who are filling up contaminated cartridges, putting things like vitamin e
acetate into the oil. if you want to combat that, states and the federal government need to look at rescheduling, medical marijuana. neil: you knew early on, right, you knew very early on, i see it with my teenaged sons, not that they are using it, let me get that out there, but you saw very early on that this was very popular with kids, right? with teenagers, right? you couldn't miss it. >> and very popular with adults as well. neil: i'm not saying -- do you think that the fact authorities are now trying to rein this in for teenagers to deal with a problem they said you weren't, you have to admit they were forced to make that action because you didn't, right? >> what you have today actually is former mayor michael bloomberg contributing $160 million to an anti-vaping campaign that was announced last week. it's no big surprise that following bloomberg pumping $160 million into an anti-flavor effort that various liberal progressive governors are coming out trying to destroy these products. neil: but you wouldn't want them for your kids, right?
>> i don't have children but no, if i had children, i would caution them and stop them from using vaping but -- neil: in other words, that's the parents' responsibility, not the government's? you know as things stand now it's very easy for kids to get their hot little hands on. >> parents absolutely have a responsibility but the government does as well. the fda, for example, has done nothing about ebay sales of vaping products. neil: kids shouldn't buy them so whatever the government should do to make sure they can't, you would be for that? >> as long as the policy does not substantially impact the ability of adults to access these products and get off cigarettes. neil: it won't be easier for adults, right, if suddenly taking measures to ban it for some, it will be more difficult for them, too, right? >> yes. there's going to be tons of these adults are either going to go back to cigarettes which is the last thing we want, or they are going to move to black market products where there's no regulation and the drug dealers will sell to youth all they want. neil: greg, thank you very much for fashion the titaking the ti.
experience the style, craftsmanship, and technology that have made the rx the leading luxury suv of all time. lease the 2019 rx 350 for $399 a month for 36 months. experience amazing at your lexus dealer. neil: all right. new york moving to ban e-cigarettes, the flavored variety. to liberty file host, fox nation, so much more, best-selling author, judge andrew napolitano. you touched on this last week, and many said we agree with everything you're saying about the danger to kids, et cetera, but be careful what you wish for. what did you mean by that? >> i meant that people, very similar to what your prior guest
was saying, that the people no longer have vaping available to them will go back to cigarettes, which is probably far worse for them, as bad as vaping is, cigarettes is worse, and that is really the opposite of what governor cuomo wants. but let me say this about governor cuomo. under the constitution, health, safety, welfare and morality is reserved for the states. so he really has his eye on the ball. this is not a federal issue. it may be a national issue but it's not a federal issue. but i think this bang is going -- banning is going to backfire on him. neil: this issue, this goes against the republican grain, you know, let business do its thing but in this case, the argument is, and the president has espoused, it's kids. >> i think number one, we have to do everything in our power to protect our children. having said that, i'm kind of appalled by the thinking behind the decision making. when we have a bad batch of mad cow, we don't say no one
should -- should ban hamburgers. we say there should be a recall. we should figure out what is the source of the problem, we should identify if that source has been contaminated and will be a problem going forward. this notion you will wholesale ban e-cigarettes, we will still have a black market. yes, i think as you see for the cigarette industry, i don't think the fact that we don't have candy crush cigarettes is hurting them. they are still doing quite well. neil: clearly, judge, in that case, weren't they clearly marketing that to kids? >> i think they were. the names are intended to appeal to children. quite frankly, they are lawful products for adults. they are not lawful products for children. so should the government be protecting children from themselves or should their parents be protecting them?
how much dissipation of parent responsibility and assumption of parent-like responsibility is the government going to accept? >> judge, to your earlier point about this being a constitutional power of the governor, this is the police power, of course, which protects the health and safety of individuals within a particular state, i actually think that because there is so little testing, so little regulation of this, it reminds people of a line from the muslim ban, stop it until we find out what the hell is going on here. there's no reason, it's an executive order that can be undone, if there's a way to s m demonstrate they are safe. >> when you go down this path, it's -- i was laughing, we said about banning all meat products. i guarantee you there are some on the left that would do that, too. neil: not on my watch. >> i think nanny paternalism is something the judge spent his career fighting against.
it is an infectious issue that you give an inch, they take ten miles. >> here's the counterpoint. what about abortion? that is the police power of a state protecting the unborn, but i suspect the conservative view, the view the state must protect the choices of grownups. i don't think parents can control every waking minute of their children's lives. there are 3.6 million middle and high schoolvape rs in this country. >> this is done under the rubric of protecting children. there's not a single child in america who can consent to sex. therefore, not a single child in america can get an abortion without any type of parental supervision. >> i'm talking about the unborn, not children. >> but even if you are talking about from an unborn standpoint, the decision making process, when you talk about protecting the children, children who are vaping on some basic level, their parents are supposed to be confiscating those products.
neil: we ran out of time. thank you for moving so quickly on this, judge. you were way ahead of this. more after this. i'm really into this car, but how do i know if i'm getting a good deal? i tell truecar my zip and which car i want and truecar shows the range of prices people in my area actually paid for the same car so i know if i'm getting a great price. this is how car buying was always meant to be. this is truecar. our because of smoking.ital. but we still had to have a cigarette. had to. but then, we were like. what are we doing?
neil: all right. this could be the day we break what had been the longest winning streak in 16 months. i'm talking about for the dow and the s&p, for that matter, but more the dow right now that gets the disproportionate amount of attention. deirdre bolton with the latest. reporter: you said it, the dow is on track to close lower. it would be the worst losing streak in quite awhile. at its lows of the session it was down actually about 160 points. we are off of those lows but investors clearly concerned about the effect higher energy prices may have on the global economy. dow right now on pace for its lowest or its first day lower in nine. biggest weights, goldman sachs, 3m, home depot, all weighing on the dow collectively, taking off about 60 points. if you look at the s&p 500, 11
key groups as we know, 10 of those are lower. the ones falling the most, real estate, materials, consumer discretionary stocks. if you look for transport stocks, not a huge surprise with oil up, biggest gain in ten years, airline stocks would be one group affected. as a barclays analyst pointed out this morning, saudi arabia one of the largest net exporters of crude oil, also petroleum products. it also has one of the world's largest spare production capacities. you will see united, jetblue, american all lower. american airlines has spent more than $3.5 billion on fuel and taxes just in the first half of this year, so not a surprise that you see that stock lower by more than 5%. cruise ship companies, let's face it, they also have big oil and fuel bills, too. they are lower. royal caribbean, carnival cruise, norwegian, all down. as investors leave some of those stocks, they are going to
proceed to safe haven assets including gold and silver. if you look at the chart, silver is really rallying. neil: thank you very much. before i go to my next guest, i would be remiss if i didn't get your take on this market. not really slavish to trade issues today. they're not dominating it. >> you had dates ineight days i the market was up. the market could have been down 200 points for ten other reasons today. i think the market has shown resilience in its response to saudi arabian incident. neil: a new home in beverly hills is hitting the market for $12 million, coming fully equipped with a yoga instructor. robert gray is there with a look inside. reporter: that's right, we are in the wellness house in beverly hills. it's a new segment in the luxury housing market. if you take a look at it, just a couple years ago, you think about what the amenities were, it's all about the smart home,
controlling everything digitally including the lights, music, security, walk-in wine fridges and wine cellars, of course. now what makes it a wellness house. take a look at some video we have of the home here. you talked about the mirrors. a streaming fitness class makes you the benefit, a yoga instructor who makes house calls and a juiceologist who will mix up your personalized juices and bring them over a couple times a week. very popular items here in los angeles and some other markets. we are pleased to be joined by a luxury housing expert. thank you for hosting us here. she's the one who put this all together. tell us, who is buying this type of home? i know you can't tell us who the buyer for this one is, it's in escrow for around 12 million bucks. >> millenials, mostly, what i see come into the property. dot-comers, hedge fund, young kind of smart money is looking at the properties.
reporter: how big can this get? l.a. is a very fit necessaness- market and l.a. and san francisco, but is this a fad that could go across the u.s.? >> i see it going everywhere. everything starts here and in new york and san francisco and with the virtual trainer that's in your gym on the wall, it can go anywhere. i see it continuing. reporter: talking about the $134 billion industry right now, i think it can go up to $180 billion in the next three years, we are looking at these, we will talk more after the bell and tell you what could be coming down next. thanks for joining us. i will send it back to you. i think we have a yoga appointment out by the pool. neil: so it's sold? someone bought it, right? there we go. reporter: they have already bought it. 12 million bucks. neil: i'm trying to prepare my juiceologist to make the move. not today. me home, that day. i've been plotting to destroy you. sizing you up...
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127,000 criminals off the streets of this country last year. not just illegal aliens. those who committed crimes against u.s. citizens. they want this company to stop working with us? study the issue. if you want to change, if you want to effect change, go to the hills of congress and tell them to make change. neil: i.c.e. director tom homan now calling addressing proteste calling on microsoft to cut ties with i.c.e. back with our panel to digest this. what do you think? >> i'm not a big fan of the irs, as you might imagine, but i would never advocate any technology company stop providing software services to the irs. i think this is the wrong target. i believe they are handling it in the wrong way. ultimately, this is a tactic the left has now become unfortunately too cozy with. as i said before, i do consider it a form of cultural marxism. this is not the way we try to effect change in our country.
>> it's an issue with the way we effect change is by speaking out. think about vietnam protests, about other ways people have come together and made their voices heard. neil: advocate boycotting? >> i think this is a little bit much. there was an internal letter, i think 300 microsoft employees supported this. that's not a lot of people in the grand scheme of microsoft's employees. i think this is a small fringe group trying to have their say. actually, the microsoft products they are are calendaring -- neil: this has nothing to do with -- >> not to advocate for separating children from their parents but i think this is misplaced. neil: what do you think? >> we leapt from a bds protest led by the left to now a protest of an american government agency. to me, that is nonsenseical. even if you want i.c.e. to be more sensitive to cultural needs, to the fact that families are being torn apart, whatever your talking point of the day is, this type of approach only
alienates your movement. it actually hampers your ability to get support from people who might be willing to agree with you because they are sitting here looking at you saying you must have absolutely no idea what you are talking about. >> and are probably using microsoft products. >> writing letters on microsoft word. neil: the new york offices, one of the many offices of microsoft, has these retail offices in manhattan, i think it was michael bloomberg who had a column in today's "new york post" and might have been other papers as well, warning about this trend. the former new york mayor said you know, you are free to spend your money as you want, or not spend it where you want, but that doesn't mean this lever is a good idea. >> no, and if everything is an outrage, nothing is an outrage. i think it really does empower -- neil: tell that to my italian relatives. i have relatives i haven't talked to in 40 years, they have no idea why. >> some brands take a stand on social justice. we saw it with nike and colin kaepernick but not all brands
want to do this. we will see how it plays out but i think this is a small fringe. >> we have gone from cultural segmentation to business segmentation. ultimately all this will end up doing is shuffling the deck. you will have different people using microsoft all of a sudden. neil: i have seen this with whether it's talent on this network or talent on other networks, they say boycott, there's a boycott. you have the power to turn it off. i just think everyone is hyperventilating. calm down. >> i also think his point is a really good one. there's a lot of evidence that sometimes boycotts have the opposite effect. it generates a lot of free publicity for the company. neil: i'm happy for others who work there who are just caught up in the fray. the "wall street journal" is now reporting that amazon already the target of a lot of people who want to rein it in for getting too big for its britches, adjusting their search engine to boost buying their own brand. what do you think? >> you might be able to make the argument there's a vertical antitrust issue here. neil: i would never say that
because i don't know what you mean. >> well -- neil: slanted in their favor. >> on the other hand, i don't think it's any different than if you are a store and have store brand products you place them more prominently. >> because there is no difference whatsoever. exactly right. that's exactly what it is. there's a million things to criticize amazon for and we don't own it in my business. we think it's a very expensive stock. however, if they were doing that, it would be a travesty to their shareholders. of course you use that position to better your economic outcome. neil: wasn't that the rap with microsoft, its search engine was slanted toward microsoft? >> in theory, by bundling it with their products and of course -- neil: they had no choice. >> that whole antitrust thing was ridiculous as well but in theory they were saying you weren't given the choice. neil: competitive forces chaingd that. >> people can go online and shop in a lot of places other than amazon. it isn't close to being that
kind of monopoly. >> we have an entire generation of workers trying to squeeze blood out of a stone. we need to accept the fact the world has changed. amazon, of course, their business is to have everything you buy on amazon be made by amazon. uber's dream is to make sure there's no one in the front seat. if they own and possess all those vehicles themselves, even spotify, apple, all these networks who are loading up on billions of dollars of original conte content, licensing deals with original mucsic companies, the world is changing. we need to prepare our children differently. the people caught up in this transitional period need to make sure they protect themselves. neil: final word on that. great job. really great job. okay. great job. a lot more coming up with the dow down 130 points. oil is up but not outlandish. after this. what do you look for when you trade? i want free access to research. yep, td ameritrade's got that. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those.
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bad, bad idea, awful for the economy and entire world. my special guest on "your world" on fox news. here is charles payne. charles: good afternoon, i'm charles payne, this is "making money." at the moment we're facing the biggest oil supply disruption in history after the saudi oil fields were hit by a drone strike. how the president could respond and another different kind of strike as the united auto workers walked out on the job. pay raises, 8,000-dollar signing bonuses are just not enough. it isn't cutting it for them. painting of three republican villains going into the election. taking aim at the president, brett kavanaugh, mitch mcconnell. will that be enough to sway