tv Maria Bartiromos Wall Street FOX Business March 14, 2021 10:30am-11:00am EDT
greated idea, thank you. don't forget to follow us on twitter @barronsonline. be safe, be healthy, wear your ♪ >> from the fox studios in new york city, this is "maria bartiromo's wall street." maria: and happy weekend, everyone. welcome to the program that analyzes the week that was and helps position you for the week ahead. i'm maria bartiromo. the massive covid relief bill becoming law without any support from republicans. we'll get a reaction from house minority leader kevin mccarthy coming up. and later the chairman and ceo of ganko investments is here, where he's putting money during the recovery. but let's take a look back at some of the week's top newsmakers in this week's edition of "the talkers."
watch. maria: you see what's going on in the biden administration, overturning the trump administration's success at the border. >> maria, this is a real crisis that's taking place on our southern border. it's a crisis of american sovereignty, making sure we know who's coming in and out of our country. maria: is this the the new normal, pass things without any republican support? >> on reconciliation that's possible, but if they don't do away with the 60-vote requirement, every other piece of legislation will have to be bipartisan. maria: ted cruz says that the stimulus bill rebate checks will also go to illegal immigrants. >> this is a slush fund. it has nothing to do with covid, that's what i want your viewers to understand. maria: what do you want to see from governor cuomo? >> we'd like to see him resign, but we think the next step in order to hold this government accountable is impeachment proceeding. maria: what do you see in terms
of the big 30,000-feet themes from 2021, dan? >> i think from here we don't have any software shorts anymore, and that was one of the sectors we were massively short this year. maria: and it was another wild week for stocks that saw new record or highs for the dow9 and the s&p 500. stocks rallied on hopes of an economic recovery marked by the signing of that $1.9 trillion spending bill into law. joining me right now is rbc capital markets macking director gerard -- managing director gerard cassidy can. thank you so much. want to talk about your specialty, bank stocks have been trading up better than 60% just in the last six months as the economy reopens. what is behind this performance, gerard? >> maria, thank you for having me on the program. yes, the drive on this performance is three factors. first, credit quality's going to improve for the banks which is going to drive earnings hirer.
second -- higher. second, rising interest rates. and, third, the capital action plans. you're going to see more stock buybacks, and those are the three factors driving the stocks the way they did the last six months. maria: you know, it's interesting because over the last two weeks we've seen the market get unnerved by this tick-up in interest rates. you see the 10-year yield at around 1.6%. that's what causes the selloff here, and for some reason it's hitting technology stocks more than others. what do you make of that, what's bad for the broader market has been good for the financials. >> maria, you're absolutely right. and you really can turn back the clock and look at the dot.com implosion. the bank stocks outperformed three consecutive years when that happened. so today with the technology stocks, with the growth stocks, there's been a trade underway going into value in the bank stocks, one of the best positioned sectors in that value
trade, and that's the reason for for -- with rising rates, banks benefit. maria: we're looking at expectations for the macro story, gdp growth for 2031 all the way up to 9% -- 2021 all the way up to 9%. when you look at the comparison to last year, the comparisons are so easy because we were in a lockdown in 2020. do you think this continues, and would you system still be buying bank stocks here? >> very much so, maria. banks are products of their economy. and i'm with you, if we see that kind of real gdp growth that you just referenced, that's very positive for banks for two reasons. first, it probably will lead to higher interest rates. but, second, loan demand -- which is a core product, of course, of a bank -- will accelerate in the second half of the year after the liquidity that corporations and individuals have built up on their balance sheets is used up. they'll start coming back to
borrow from the banks. so strong growth is very good for banks. maria: technology has also been a big factor. a lot of these big money-centered banks creating fin-tech businesses, acquiring fin-tech. what's your take there? how important has been, has the technology revolution been, and do you expect more acquisitions with regard to financial technology the firms? >> maria, the technology revolution has been unbelievable for the banking industry. the digitalization channel, when you think about it, it's only been around since apple introducing the iphone back in 2008. but it has taken over, and it has led to increased profitability for the banks. the pandemic brought more people into the digital channel, and large banks, our big retail banks are at the cutting edge of offering products to that channel. now, the fin-tech companies are coming in, some of them have
actually received banking charters recently, but so far the fin-tech companies are smaller and very product-specific. they don't have the broad array that your traditional bank has. so it will be a competitive environment, but i think the banks will hold their own. and they may possibly look to buy a fin-tech down the road. hasn't happened recently, but that's always a possibility. maria: before you go, what is your favorite bank meme right now? if i wanted to put money into the group today, where would you be allocating capital? >> i would allocate it to bank america. bank america, as you know, is the second largest bank in the country. it was a bank that was crippled in the last financial downturn in 2008 and 2009. it has completely reformed itself, completely changed under the leadership of brian moynihan. the stock trades at a discount to the industry leader, the stalwart, jpmorgan chase. we don't think it should trade
as much of a discount to that company, and as it narrows that gap, outperformance is what we should see over the next 12-24 months as the u.s. economy comes roaring bank. bank of america gets 90% of its revenue, and i think you'll see that show up. maria: it's also instituting a lot of technology there as well. gerard, it's great to have you this weekend, thanks so much. >> you're welcome, maria. thank you. maria: gerard cassidy from rbc capital markets. president biden signing his $1.9 trillion covid relief bill into law without any republican support. we'll get reaction from
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$1,400 in direct rescue checks, it helps small businesses, it lowers health care premiums for many, it provides food and nutrition, keeps families in their homes. maria: president biden touting the his american rescue plan to help those struggling financially from the effects of the pandemic. but republicans decry the $1.9 trillion spending package as a democrat slush fund for pet projects and a bailout for mismanaged states. i spoke with house minority leader ken mccarthy. here's -- kevin mccarthy, here's how he sees it. >> if you're a pelosi friend, you're getting a lot of favors in this. think for just one moment, san francisco has a $650 million deficit, the city, but they're going to get 92% of that deficit wiped away, because they're getting $600 million. they reward bad behavior. they change the structure of how states a make money. so if you shut down or overspend
on pensions, you get more money than those who stayed open. they reward people in the swamp. if you are a federal employee, you get a $21,000 more, but if you're in the private sector, you get nothing. this is really about favors to pelosi's friends. it's not about covid. and we have already now spent more than $5 trillion. if you it in today's numbers, world war ii we only spent over $4 trillion. it's a real concern that -- your viewers understand this more than others -- the amount of money going into the system, it really could cause inflation in the future. maria: can you walk us through the specifics that are mind-boggling in terms of what's not covid to make it real clear? >> yeah. i think if you're republican, democrat or independent, this is what you care most about. we want to put people back to school, back to work and back to health. if you're concerned about the
schools opening, two-thirds of this money doesn't even come til 2023. what they're doing for states, they're rewarding bad behavior for states. many of these states, just as you showed, had a higher revenue than they had last year. less than 9% goes to covid or testing. then they plussed up in here, now if you're a state employee, you get a $25,000 bonus. they plussed up in here where illegals get health care. this is not related to what we need happening today. it doesn't put anybody back into school, it doesn't put anybody back to work, and it's less than 9% dealing with our health. maria: so what are you going to do the about it as the leader of the republican party? is this how we're governing now, with no republican support at all? there was no republican support here. you've got policies that i know that half the country does not agree with. you look at the border crisis
growing every day, border officials reporting more than 100,000 migrant encounters in february alone, 28% higher from january. 3,000 of those include children under the age of 12. congressman, i know that you're going to be traveling to texas on monday. you're taking the about a dozen other republican lawmakers to see this firsthand. can you tell us more about the trip and also about this issue of you've got policies coming at you whether it's border spending, higher taxes, is there anything you can do about it? >> yes, we can. and, remember, maria, it's a five-seat majority for the democrats, the smallest majority in more than a hundred years. and the bipartisan vote on this bill was no. so it's not just republicans opposed to it, it is a bipartisan vote. you understand the border because you have traveled there before. what we understand in the short amount of time in this biden administration, biden's created a border crisis. 100,000 people were caught trying to 'eming grate across
this border. how many got through who were not captured? 100,000, put that in perspective, 100,000 is larger than president biden's hometown of scranton, pennsylvania. that was in one month. why has this all changed? why has it increased by 20 and 90% of what's happening down there? it's his policies that have changed. people come for asylum, but they pass two or three other countries. what president trump was able to do, have 'em sit on the other side of the border while you went through the court process to see if you're able to stay. he is now, president biden, releasing them into america, not checking them for covid. he's taking away the covid restrictions for people that's being held so now they're closer together, thinking they're going to show up in a short amount of time, allowing them to get into the work process with 10 million americans out of work. they have more people to compete against going into the future x. now what he's done with the xl
pipeline and the federal land, he's now increased our gasoline price every single day. so those who are struggling to try to get back to school, back to work or even keep the resources that they have, he has made it more difficult in a short amount of time and refuses to take any questions about it to the american public or reporters. maria: why is he doing this though, congressman? development understand these decisions -- i don't understand these decisions. i don't understand allowing illegals in who may or may not have covid. i cannot understand killing the keystonepipeline, i don't understand -- pipeline, i don't understand the tax increases. who is driving this agenda? >> well, as they say, the most progressive they ever had. remember what just happened this week. the socialist wing of the democratic party just got elected to run the democratic party in december. they watched what's happening in
washington, and they're mirroring it across this nation. this is what we feared most. this covid bill that is less than 9% costs every hard working american taxpayer more than $5,000, and some americans will get $1400. we used to warn people about e-mails that cause that type of damage, and now congress is passing those by the direction of pelosi, and pelosi's rewarding san francisco. i don't think america wants to see less than 9% of covid but san francisco to get 92% of their deficit taken care of. if you're homeless in san francisco, they'll buy your alcohol, they'll buy your marijuana. that's what they're spending their money on. maria: wow. >> and we're doing that as hard working tabs payers? we should be -- taxpayers? we should be focused on back to work, back to school and back to health. maria: my thanks to house minority leader kevin mccalifornia think. billionaire investor mario gabelli is with us next to tell us how
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♪ ♪ maria: welcome back. we've been looking at where to invest as the country reopens for business. billionaire investor, chairman and ceo of gamco investors marco baa belly joins me now. i want to get your take, are there areas you think will benefit more so than others as you look to allocate capital in 2021? >> over the next 12 months, i'm saying to myself the consumer will have net worth reported shortly of probably $130 odd trillion. by the end of march, it could be as high as $150 trillion. that's u.s. so there's a huge pent-up demand that will be -- we'll be focused
on. what's the consumer going to do? i'm convinced we'll go back and focus on sports. so i want to own the new york knicks, madison square garden stock. the sports is about $200 a share. you getting the knicks at the major discount. the atlanta braves, you can buy manu if you want to play soccer, europeans call it football. then you look at the entire sports ecosystem. gambling online is going to be more prevalent. those individuals that play fantasy sports, those individuals that were weanedded on fortnite, those that were doing robinhood, when they are going to be able to bet online, they're going to do that. secondly, that means the advertisers are going to have more eyeballs to spend money on, and the broadcasters will do well. so i like sinclair.
the stock's 37 because of their investment in bali's, they are a large owner. that's an attractive gambling play. the other one is fox with fox bent. and they own a piece of -- fox bet. they own a piece of the system in the u.k. called flutter which is the name for gvc which is the name for, you know, fanduel. so, maria, gambling ecosystem is new, and i think it'll continue. and you can bet on that -- maria: yeah, i love the ideas. but, mario, look, we've got this $1.9 trillion stimulus package, those checks are going to be going out in the mail soon. you've got more than $5 trillion hitting the economy in a year in terms of stimulus money. you've also got the accommodative fed. i want to get your take on the overall ecosystem. earlier in the show we talked about banks, but i know you're looking at renewable energy, also at the impact of a potential infrastructure package, and it's not your typical roads and bridges that you're zeroed in on.
>> from the point of view of lawyers that we think will benefit -- areas that we think will benefit by this surge in spending, we think there's a long runaway for cars and the electric vehicle in part because of the, in quotes, dynamic with regards to the environment. so by 2030 we as a world will probably produce, maria, about 110 million cars per year. compareds to about 80 more for 2020 which was greased. and in -- that was depressed. in that regard there'll be about 70 million evs on the road, and 40 million of that, 110 million production. how do we participate in that, how do we get a microscope on specific companies and how do we get a telescope. so on evs as a subset, i am totally in favor of owning companies like dana. dana has 140 million in stocks,
they make components for the internal combustion engine and for the diesel, but they will be switching over to the ev, and they get more dollars of content per vehicle in doing that. those are examples. in addition to that, an ev has a tire because it wears out faster. somebody just buying mavis, a tire distributer, we like monroe at a price. and then in addition to that, maria, you're going back in your car and you're going to start driving. unfortunately, regrettably crash parts will do well. there's a company called copart that does this globally, and there are companies that will basically have you and me instead of trying to repair the car ourselves, they'll have it done for me. there's a company in atlanta called genuine participants, better known as napa, 140 odd million shares of that one as well. the stock has popped a little bit this year, but we think
they're going to earn $7-8. so those are some of the sectors. housing will continue to do well, and some of the areas that are not clear to me, will i sit and pay x dollars by being in front of a mirror and doing exercise, do i go out and socialize instead. so the constant change, that's the beauty of the free market system that we're all part of. and, you know, there are obviously some issues that i have with some of these dynamics. maria: mario, it's great to get your insites. come back soon -- insights. my all right that's a fifth-floor problem... ok. not in my house! ha ha ha! ha ha ha! no no no! not today! ha ha ha! ha ha ha!
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schweizer and candace owens. and right here on fox business, start smart every weekday, 6-9 a.m. eastern with "mornings with maria" right here on fox business.k you so much for joing me, have a great rest to to have weekend. i'll see you again next time. ♪ ♪ gerry: welcome to the "wall street journal at large". an unfamiliar face popped up on our tv screens this week. yes, that man you may have caught a glimpse of thursday night was, indeed, the president of the united states emerging rip van winkle like, it must be said, from wherever he'd been slipping in at the white house since january. he's been the invisible man. before thursday he hadn't given a nationally televised address since his inauguration.