tv Cavuto Coast to Coast FOX Business April 1, 2021 12:00pm-2:00pm EDT
today. the nasdaq, tech stocks, nice and strong, up nearly 200 points at 13,439. it is the first trading day of the second quarter. we have minor gains in the first quarter but what a way to start for this quarter. april is apparently a strong month for stocks. so far, so good. neil cavuto, take it away. neil: all right, ashley. thank you. you're right so far so good. there's a lot riding in the advance of the s&p 500, four thousand, first time over that milestone. we'll see if we close that way after the markets put in a heck of a first quarter, if you think about it. the dow up 8%. s&p up close to 6%. nasdaq, thanks to a late month rally, up 3%. the fact this is still going, all these concerns, especially what is happening with the virus abroad. what is happening at the border, worries about all the money for
infrastructure that will go down, that last item will be the focus up front right away. the president will have a cabinet meeting in little over an hour from now which he is going to get an idea of how to go about selling this. it is expensive, $2.25 trillion. some argue, by the way, actually it is trillions more because of commitment over many years for this type of activity. indeed some tax increases that go along with this, unending going on for minimum of eight years. we'll explore mathematical oddities of this you don't know about. all of this is seen perspective stimulative to the u.s. economy. that will really decide where we go here. with stimulus, market seems to think is a positive development. the reason why we're over 4,000 on the s&p 500 for the first time in history. let's go to hillary vaughn following the fast-moving developments with the cabinet meeting, how the sell is going early on, with congress as well.
she is on capitol hill. hey, hillary. reporter: neil, president biden has two big selling points for what could be the most expensive spending package in u.s. history. first, the trillions of spending will create millions of jobs. his second selling point, he promises it is already paid for. >> one of the things i admire about the president's plan it is fully paid for. anytime your car hit as hole in the road you're paying for that. the anytime a bridge collapses in america we're all pay for that we can invest now or we can pay the price later. reporter: but some critics say the math does not add up. the price of patching potholes and building better bridges is a fraction of the spending and the way to pay for all of it does not cover the full tab. the main revenue driver behind biden's package is the tax hike that raises the corporate tax rate to. 28% but the tax foundation tells fox business that raising the
corporate tax rate over 10 years to 28% would only bring in $886 billion. that leaves $1.3 trillion that will need to be paid by other tax hikes in the package. there is though a bigger cost beyond dollars and cents. business groups say the uncalculated cost of biden's plan will jobs. the business roundtable ceo coming out against the plan and their tax hikes saying this, we do not support president biden's proposal in its current form. tax increases would make the united states uncompetitive as a place to do business and make u.s. companies uncompetitive globally, slowing recovery and hurting american job creators and their employees. the president will have his first cabinet meeting at the white house in just over an hour from now, neil, but it will not be in the oval office. "the new york times" reports that the white house does not want a cramped cabinet meeting in the middle of covid.
they're moving the meeting to the east room so they can socially distance. neil? neil: all right. thank you very much for that hillary vaughn, following all of this. the reason why the tax part is getting such scrutiny because the numbers are deceptively large, in fact much larger than the administration is letting on. you heard that raising the corporate rate from 21 to 28% merely goes halfway. they could have risen up to 35%, what it was before the trump tax cuts. but that leaves out a very important detail that the tax foundation and others have followed. the corresponding tax rates in states. when you talk about corporate rates abroad, they don't have this anomaly where regions have their own surtaxes for companies by and large but if you add their tax burden in states to what is on top of the new federal level set at 28%, the u.s. would zoom to be among the major western powers the highest combined tax rate on earth for
corporations and that is a worry for those corporations and one of the reasons why the tax foundation is saying that it is going to have a deleterious effect on companies, own expansion and hiring plans. get read on all of this, from courtney dominguez payne capital wealth advisor. liz peek fox news contributor, dan dan gelter. the hidden cost that will be much more oppress sieve for companies that the administration led on. it is not matter of lifting to 28%, a matter of combined with cities and states aggressively hiking their own taxes on companies and that combined rate is what will now bring the u.s. to the highest combined business rates in the world. what do you make of that? >> it is definitely something we're going to have to be watching because you're already seeing members from the republican party are opposing
this. right now it is really a proposal. you will need to see how this weighs out at the end of the day. generally speaking government spending on infrastructure can be a good thing for the economy and good for jobs, but if it costs businesses at the end of the day you need to see it weigh each other out. i do like the markets are definitely up right now, especially after the news came out. markets are not really nervous thus far, but definitely something we'll continue watching over the next couple weeks for sure. neil: you know, liz, maybe the markets are not nervous about it, they don't see it approved in the form it is now. maybe it will be beaten down, forget about even republican votes but moderate democrat votes might be worried how it will hurt them. i talked to a democratic congressman out of texas concerned how unfriendly this is to fossil fuels for example. it is not a slam dunk. markets might be reflecting that, what do you think? >> i think that's right, neil. i think people are concerned about a lot of elements of this
bill including the fact that so little of it actually has to do with infrastructure and so much of it appears to be sort of payback to labor unions, teacher unions in particular, that helped support and elect joe biden. so, i think people, imagine that there will be fine-tuning but even fine tuned, this is a pretty horrific bill and a pretty horrific proposed tax increase. we have not talked about the fact that adding to increased taxes on u.s. corporations and by the way, that includes a pretty big hike on repatriated overseas earnings, you also have the fact that democrats are trying to get rid of the right to work statutes that are now extend in 27 states which lower costs for corporations. so you have to begin toe wonder, how is it that any company is going to want to invest more in the united states, create more jobs in the united states when basically on all different fronts democrats are raising the
cost of doing business here? i think it's a terrible idea and i'm hoping that enough moderate democrats and particularly some who really do care about their blue-collar workers, are going to stand up to this because this is really a negative thing. neil: we were racing by showing you some of the tax increases built in this. we only did that to fit the time parameters here. there are a lot of them. there will be a quiz at the end of the show, so if you missed any of the tax increases you will be punished. get your take, dan, resident accountant, for companies how they plan something like this, normally they have to cut back somewhere else. i'm sure many of them companies specifically have made plans for this. it is to brace themselves for this. they might not have made plans for some of these other things that liz touched on, like the global tax and all of that. what do you, what do you make of what they're making out of this now, planning for this now?
>> neil, like anything else, corporations are going to do what they have to do to preserve their bottom line. so if taxes are going to go up, they will look to cut in other areas and one of the prime targets always is, cutting back on human capital, figuring out how to use artificial intelligence. that's one piece. the other piece is migration. physically moving. what i believe we're going to see here what is called corporate inversions where you're going to have american companies that are multinational, that are going to look to become something else and what does that look like? it looks like headquartering elsewhere. for example, you buy a company in ireland. you move your headquarters to ireland. and then you get the benefit of that tax rate. we saw that during the obama
administration. neil: but you can't escape it, dan, you can't escape it dan, if the president somehow succeeds pushing global tax thing. keep in mind, europe was kicking this around for a while. they were at 12%. the president said 21%. having said that, i think what he is trying to do, i don't know that he will succeed, make it so companies can't run anywhere to hide. what do you make of that? >> well i think that is going to be difficult, neil and what will happen, depending on how this law is written, corporations will look for a way around that simply by figuring out how to move, where to sell from. this is always been the game with corporations in the u.s. tax laws. neil: courtney, i want to switch gears a little bit, going back to you, talking a little bit about to your earlier point how the markets are probably more focused on, you didn't say this exactly, maybe on other matters. there is certainly stimulus that will come of this.
the question is at what cost. i think they're focused coming out of the whole virus, pandemic funk and so many companies indicating gradual reopening plans, google among the first to say it wants to eventually look at those number of workers who are working from home remotely, maybe not as many, sort of make that less appealing. we've heard from goldman sachs and other big financial heavyweight that would prefer their workers in a building rather than at home. how does this play out, do you think, this back to work push? >> i think it is probably a push we're going to continue. i think google came out. they will really start to have employees coming back, i believe it is september 1st, they came out in the first place, workers needed to stay home, probably longer than many other companies accepted it. companies will lead the way and others eventually follow suit. we'll need to get back to more normal life.
whether it is before or different, working part time, not full time, start to see people get back in the office. things are reopening. people getting back to normal. getting back in the office is a small piece of that. that is continuing opening, continuing recovery. i'm definitely on the optimistic side we'll continue to seen that get priced in here, more and more people are able to get out and about. i think seeing the fact it is september potentially that can happen is a very good sign. neil: right. that is the same time broadway hopes to be back in business. most movie theaters hope to be 50% capacity maybe more. restaurants almost fully open by that time. liz peak, when you look at that dynamic, i suspect that is what is goosing these markets. what do you think? >> oh, for sure. the big news of the last couple months is the vaccine and the fact that cases until very recently had plummeted and they're still way below peak levels and deaths more importantly are not going up, which really is a testament to
the efficacy of these vaccines. neil, there is no question, the excitement in the world today, just get out, you can feel it, is people going back to their businesses and back to real life and kind of going out to eat, so forth. look at the mobility indices from apple or the dallas fed. they're off the charts. it is so exciting to have this all happening in spite of all the gloom and doom you keep hearing from the white house. the truth is, america is back and that is very good news. i got to say, i'm just worried that all of this enormous amount of spending can somehow sidetrack us, make us all concerned about inflation which undoubtedly will be rising over the next year and, you know, we kind of lose the thread of all this ebullience because that is a very happy thing for this country. neil: dan, we finished a strong quarter. we're starting this one on a good note. we'll see how we go but i think four quarters in a row where the
market appreciated more than 50%. we have not seen a four quarter performance like that i think since 1936. you were just a young man in those days, kidding, kidding. just wondering how you see this quarter we're in shaping up and indeed this year right now with all of this? >> i think, neil, the trajectory of the market is going to continue. this market is discuss incredible how it wants to keep going up and going up in spite of the news that we hear. in spite of corporate taxes. in spite of inflation. in spite of rising interest rates. this market just wants to keep going. i don't think that we're going to feel the impact of these policies and a lot of what is playing out until 2022. so i anticipate that the market will continue to rise as it has been. neil: all right. i will hold you to that. if you're wrong i will get you
back on to bring it up. but if you're right i won't get you back on because you will crow about it. guys, i want to thank you all very, very much. by the way we're getting news, speaking about the virus and vaccines and progress in there, market watch is reporting that pfizer and biontech reporting their vaccine works against the so-called south african variant that has been stubborn in that region t spread worldwide. europe has a devil of a problem, california some cases but these two companies say our vaccine works against it. that just added another reason to be optimistic where we are on the vaccine front. stay with us. ♪.
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worth of the two, you've got well, cachet going for you right now. certainly for bitcoin. chris brand is the chipotle chief marketing officer to explain what they're doing here with bitcoin. chris, very good to have you. could you explain how it works? i know you're giving away $200,000 i guess evenly ditch vieded between burritos and bitcoin. can i get burritos and bitcoin? can i get both? how does it work? >> neil, happy national burrito day. thanks for having me on. you win one or the other. go to chipolte.com or bitcoinorburritos.com. you enter in a code. if you enter in the correct code you win a free burrito or $500 in bitcoin all the way up to $25,000 in bitcoin. neil: so the 25,000, if it went
that far in bitcoin, you would be limited to four winners on that front, right, if they went to the max? >> there is only three of those. only three of those prizes. neil: got i, got it. what is reaction you're getting? >> the reaction is overwhelming. the site just went live and you know, people, people love burritos. they certainly love about it coin as well. whenever we do one of these things, especially a day like national burrito day, like we call chipolte, like a national holiday we get a lot of fan interest. i encourage everybody to get on sooner rather than later if they can. neil: obviously bitcoin has become a phenomenon much yourself. obviously you're lending your name and chipotle's considerable marketing cachet to this certainly helps bitcoin. so if it works, if it succeeds, gets people out of the woodwork normally wouldn't go to a
chipotle, would you expand this? would you even look at you know, bitcoin as a currency you would use for people to buy to your restaurant? >> yeah. you know, never say never. we have no prance to do that right now. there is a lot of complexities involved in that. but if you would have told me a year ago we would be doing something with bitcoin i probably would have been skeptical about that as well. in this world never say never. we have no plan to take it as currency. we're doing it. relevant in culture, one of things we do in chipotle, engage people in things going on in the world, certainly bitcoin received a lot of press. we thought it would be fun for the fans to help experience that a little bit on a day like today. neil: no. it's a very clever marketing idea. chris, can i step back to get a sense how things are going, your restaurants, many of them have in-store seating. that has been limited during the pandemic. most states you can open up and
actually fill them up pretty fast. what, where do things stand right now on that front? i would imagine a good many much your customers just order and they take it out but how does it break down now? >> yeah. certainly it is opening up. just like the folks on the previous segment said, we, we see more people moving around. we're very excited about that. we made a big conversion to digital. digital, at the end of 2019, digital was 20% of our sales. in 2020 it was almost half. and so we're really hoping that we can hang on to a lot of those digital users which are a lot of new users to chip pole as the end restaurant business comes back. every week it seems like things are opening up a little bit more. restrictions are lessening, the amount of positive tests are going down. we are seeing more and more people moving about and that is a good thing for us, for our restaurant business for sure? neil: all right. chris, thank you very much.
good luck with this. chipotle chief marketing officer. a little burrito, a little bit coin. it is delicious. it is a mexican place. you know what i mean. we have a lot more coming up including this progress we're making on the vaccine front. pfizer saying its vaccine is 91% effective which is very, very good. let's say you get 100 million americans treated with a 91% effective vaccine. that means -- it hasn't been effective. am i only one wondering what happens to those people? ♪.
neil: all right. following the various vaccines, you know, pfizer says its vaccine can indeed work against the south african variant that has proven to be a real worry for a lot of those following this closely whether it can address all the variants that popped up. the south african one said to be more problematic. having said that though pfizer also noted its vaccine is 91% effective which is pretty impressive here. we're going to get into what that means for the 9% that is not effective. not looking at the half empty glass but i want to look with dr. roger klein. first to my buddy jonathan serrie in atlanta. this is good news, jonathan, with better and more efficacy rates in general. what do you make of it? reporter: overall this is fantastic news. even the 9% that might come down with some covid-19 symptoms, it appears this vaccine is 100%
effective in blocking the most serious symptoms. now another company is facing a setback. the fda investigating one of johnson & johnson's manufacturing partners after improperly mixed ingredients led to spoiling or wasting of some 15 million doses of covid-19 vaccine. j&j said quality control checks at emergent biosolutions plant in baltimore identified a batch of drug substance not up to standards. it never advanced to the filling and finishing stages. in a statement johnson & johnson says, this is an example of the rigorous quality control applied to each batch of drug substance. the issue was identified, addressed with emergence and the food and drug administration. "politico" reports that biden health administration some folks in the white house new two weeks
ago that johnson & johnson manufacturer production problems could significantly delay a number of future vaccine doses according to senior administration officials. despite that setback, u.s. vaccination numbers continue to rise. more than 1/5 of the adult population has been fully vaccinated. studies demonstrate the safety and effectiveness of the three vaccines currently approved for use in u.s. >> vaccination will not only protect us against the wild type but it has the potential to a greater or lesser degree also protect against a range of variants. reporter: very good news there. according to the cdc, covid-19 was the third leading cause of death in the u.s. last year, trailing just behind cancer and heart disease. neil, back to you. neil: all right, good news indeed. jonathan serrie, thank you very much. back to that 91% efficacy rate, that seems to be the balance of
you know efficacy rate of all major drugs but there are some 100% effective for kids. back to the nine or 10% for whom it doesn't have any demonstrable results, whether we should be worried about that, dr. roger klein with us, physician health policy expert, heartland institute. doctor, great to see you again. should we worry about that, doctor? a small percentage but it is big numbers if you assume 100 million americans have been vaccinated for maybe nine million, 10 million or not, are not really seeing any bang for the syringe buck here. what do you make of that? >> i'm great to be with you. first of all there are two-ways to look at. the first is from the individual. suggest you're asking a great question, but i think jonathan hit the nail on the head. this is not and all or nothing phenomenon. it doesn't mean that there is no effect from it. it means that some people have symptomatic infections. but what we didn't see were
serious infections. there is one patient out of 77 patients who got infected or called cases symptomatic infections who met the fda definition of serious did not meet the cdc definition of serious. so what we're doing, is, we're preventing serious illness, even those people getting infected. i think the vaccine is yes, 91.3% effective in this study at preventing symptomatic disease over, with significant numbers up to six months but then also it is protecting people who do get infected. that is a very, very important point. the other thing is, at a population level. this is extremely, an extremely high level of effectiveness. when you couple that with, you know, ongoing infections quite frankly, most of which are in people who are younger, many of which are people younger and not
getting seriously ill, we're rapidly reaching a point where the virus will not have anywhere to go. so the epidemic itself is going to peter out, with the public health, the most serious public health impacts rapidly diminishing as, as these elderly and vulnerable folks get vaccinated. neil: on all of that, doctor, i appreciate your expertise on that to put it in perspective. i'm curious what you recommend to patients who have been fully vaccinated, two dose method, most companies with vaccinations out or vaccines out or johnson & johnson one-shot vaccine how do you advise them what they do after that? some of them feel like superman, they don't have to bother with a mask, they can do whatever they want, they feel bulletproof, what do you tell them? >> nobody is bulletproof but i think we have to put this in perspective. we do not live in a disease-free world. if you're old and you know, if
you're elderly, you have fierce disease, probably not the best idea for you to be going into crowds where you could also get influenza or something else that can make you sick. so you know, especially at this stage where we still got a lot of virus circulating i would probably avoid, avoid crowds for example, but i think most people who are vaccinated, they can go out to dinner, they can, healthy people, young, healthy people, i think can go back to their, pretty much to their normal existence and, i know, i mean i have had covid. i've also been vaccinated. i know in life, you're never 100% safe. again we don't live in a disease-free world. we live with a world of disease but it is now becoming manageable. i think is really what is important. people are being able to go on with their lives and they need to act in accordance with their
risks. neil: so very quickly, doctor, you've been patient with my idiotic questions, and patient as you are are don't dismiss them out of hand, how effective is the vaccine? you hear reports six to nine months later you could revisit that? what is true about that if anything? >> that is great question. from a clinical data standpoint which don't know. from immune logic standpoint, the immune system is very complicated. you have b-cells and t-cells and you have antibodies. the b-cells produce antibodies. what happens if those antibodies diminish and effective, you have memory t-cells for a lifetime. this could offer long term duration protection. what ends up happening, viruses mutate, they change, they have variants. ultimately the immune response is less effective than it was. to get to the point where it is
not effective. we see that with colds for example. i think, so we, it remains to be seen but from what we can tell thus far there is a good expectation that this protection is going to be durable for quite sometime. you know, if this virus stays with us, it is conceivable that in the future people will need to get, to get a booster. but maybe, maybe we'll get lucky and, this is going to disappear. we just don't know at this point. i think anybody, anybody who is telling you different can't be basing it on clinical data. neil: all right. so sort of like the flu shot, right? get it once a year, something like that. dr. roger klein, thank you my friend, very, very much. you know your stuff. i appreciate that. dr. roger klein, health policy expert heartland institute. the dow is 38 points. we have number crunching for the
infrastructure package. there is no vaccine for that. i will explain after this. ♪. [announcer] durán catches leonard with a big left. ♪♪ you can spend your life in boxing or any other business, but one day, you're gonna take a hit you didn't see coming. and it won't matter what hit you. what matters is you're down. and there's nothing down there with you but the choice that will define you. do you stay down? or. do you find, somewhere deep inside of you, the resilience to get up. ♪♪ [announcer] and this fight is a long way from over, leonard is coming back.
♪. reporter: welcome back to "cavuto: coast to coast." i'm lydia hu. the list of companies speaking out criticizing georgia's new voting law is growing. the latest just in is apple ceo tim cook speaking out cone demming this new law. this is of course happening after the new law passed just last week along party lines. a group of black business executives including merck ceo ken frazier and former american express ceo ken chenault is pressuring corporate leaders to speak out against it. companies doing so are getting blowback from lawmakers this is happening to delta. the status of major league
baseball all-star game which is suppose towed happen in atlanta in july it is in doubt. let's address claims about the voting law. democrats say the law ends voting hours early. that is not true. the fact voting on election day will run 7:00 a.m. to 7:00 p.m. which is the same as current polling hours. the new law requires polls stay open 9:00 to 5:00 at a minimum. local officials are free to keep them open longer. there is also a claim that water is prohibited but actually polling workers are free to set up self-service stations for voters. now georgia governor brian kemp has been pushing back and other claims defending the new voting law, listen. >> i'm not going to back down when we have a bill that expands the opportunity for people to vote on the weekends in georgia. we have as many early voting days as anybody in the country. we've got no excuse absentee. we're adding dropboxes.
we also want to make sure the election is secure and that all georgians have confidence in it. reporter: some critics of the law called for boycotts of georgia based companies that did not quickly condemn the measure. prompting a number of companies to issue statements yesterday. coca-cola ceo james quincy says the new voting law is wrong and delta ceo ed bastion called it unacceptable. but happening late last night, after delta spoke out critically of the voting law, republicans in georgia's house of representatives voted to strip delta of a tax break worth 10 of millions of dollars every year but the senate did not take up the measure before adjourning so that move is largely symbolic. now also happening, major league baseball tells the associated press the league is in talks with teams and executives about exploring options where the game could be moved if it were not held in atlanta. though the league has not specifically addressed the new voting law. neil, back to you.
neil: lydia, thank you very much for that. meantime we're focused on the president's $2.3 trillion stimulus package to help things get going on infrastructure. on the transportation front, pete buttigieg saying there will be republican support. saying on fox news he has no doubt there will be. >> really want republican senator on this plan. whether in the end whether they decide to support this plan is up to them. we'll do everything we can to earn their support. the president welcomes ideas on this. i'm on the phone every day with members of both parties, seeing what they like, where the concerns are, since infrastructure is bipartisan priority among the american people, we would love to have nothing more than a bipartisan vote on that here in washington. neil: all right. mitch mcconnell, the senate republican leader has anything to do or say about it, that does not seem likely. the senate republican honcho
saying he does not think there are any republican votes for this package as things stand now. go to republican congressman mike gallagher of wisconsin, what he makes of that congressman, what do you think? you have had a chance to digest some of the things president biden wants to do with this. would you support it as it is now? >> no. because it is green new deal bill disguised as infrastructure peproposal. if the secretary of transportation wants bipartisanship, a bipartisan principle a infrastructure bill should focus on infrastructure, right? look at fact that they have more money in here for electric vehicles than they have for actual infrastructure. i don't have a problem, if rich people want to buy teslas, i really don't have a problem with it. i don't want to pay for it. i don't want working families in wisconsin to pay for it. i don't think we should expand government bureaucracy with a
civilian climate corps and tsunami of solyndras reappear. a target targeted bill on infrastructure, that doesn't have $100 billion going to schools, when we sent hundreds of billions of dollars to the teachers union not teaching our kids. i think this has perverse effects. i urge the biden administration to step back from the ledge. i implore, blue dog democrats if there are any left, step back from the dangerous ledge to focus on actual infrastructure. i think there is support on the committee for doing something sensible on infrastructure. neil: just infrastructure, not some of ancillary things such as report for the handicap or elderly, little, meritorious little to do with infrastructure. then the issue becomes, congressman, how you would pay for it. you're not keen on anymore prominent tax hikes the president is looking at to pay for this but are there any other options to pay for it you would
entertain? >> this is interesting. i thought the whole promise of secretary buttigieg coming in as a very smart, younger millenial was to have creative next generation ideas but we seem to be sort of trying to shove as much money through a boomer bureaucracy as possible. instead i think we need to change our thinking a little bit. in some ways it does involve going back to the past. the fundamental problem is that transit funds have been diverted from the highway trust fund. if you separate out transit funding and maintain the basic eisenhower principle when he built the interstate highway system of a user fee in the form of a gas tax, you don't even need to index it to inflation to fund almost all highway surface prance transportation needs. that is remarkable. when you have a leak in the house, instead of taking a short trip to home depot you decide to build olympic size swimming pool and you don't swim. it doesn't make sense.
that is point one. do simple things fund the with user fee and destroy our corporate tax system, give a gift to communist china making it 3 percentage points higher than communist china. there are things previous admin strange proposed. value caps. take page from foreign countries like australia, did things with asset recycling forcing everyone to look at everything on the balance sheet and come up with creative private sector partnerships to get more value out of the assets. that is the other question in this proposal, where is the private sector, right? by some estimates we have a trillion dollars untapped private sector capital we could get working for infrastructure. taxpayers in wisconsin shouldn't have to foot the bill for all of this if we get creative looking creative in a forward-looking manner not looking back with a bumbling bureaucracy. neil: you have a lot of good ideas. we will see democratic response
to ideas. some reflected views among some democrats as well. there might be common ground. still too early to tell. mike gallagher, thank you very much here. we have a lot more coming up including this country trying to get back to normal. we talk about the post-pandemic push back to whatever normal was, beginning with baseball. it is back. the 162 game season is on. some of the stadiums middle east not be too crowded but they will have people in them after this. traded with a touch. the gold standard, so to speak ;) [laugh] dad i got a job! i'm moving out. [laugh] dream sequence ending no! in three, no! two, keep packing! one.
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♪. neil: play ball. baseball is ready to begin playing today, a full 162-game season on tap. depending on the stadium, they can fill it to capacity like in arlington, texas, a lot less in other locales grady trimble in chicago to kick off things. reporter: neil, gates just opened here at wrigley field. they will be at 25% capacity for today's game. that is about 10,000 fans. so not as much as a normal opening day by any stretch, but still the biggest event chicago has seen more than a year at this point. let me show you a graphic that gives you a sense where the other ballparks are falling. fenway will be at 12% for their
homeowner. arlington, you mentioned the anomaly with 100% capacity. yankees and mets will have sort of a asterisk next to theirs. they're requiring proof of a negative covid test or a vaccine. these changes throughout the country are changing the business of baseball. the head of business operations for the cubs, he tells me that between 20 and 25%, that is right around their break-even point, with 25% capacity today, that brings them into the black, which is good news for them but they hope to increase capacity as the season goes on. hopefully be full force by mid-summer. listen. >> year later with a lot more experience, we'll get number above 25%. we're just excited to have people in the ballpark. reporter: neil, i was thinking back to last opening season. it was beautiful weather that day. but then i remembered. you know what? the whole season had to be
pushed back to start in july. that explains that. as you mentioned no shortened season this year. full 162-game schedule which is good news here at wrigley. neil? neil: forgot about that. a year ago. seems like 10 years ago. let it begin, grady, thank you very, very much. we have got the s&p still holding up over 4,000 right now. first time we crossed through and held that milestone. we'll see if we can do it. we have another three hours to go. keep in mind the markets are closed tomorrow for good friday. that is the middle of a bilge, big statistic coming out, employment report for the month of march here. so that will be an important development to keep an eye on here. stay with us. you are watching fox business. ♪♪
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be the most expensive spending package ever to be four times bigger, some progressives want president biden to add another $8 trillion to the $2.25 trillion he is already written willing to pony up for infrastructure to spend more on climate. >> that $2.2 trillion, 2.25 over eight years i have serious concerns that it is not enough. we have a truly crippled healthcare system and a planetary crisis on our hands and we are the wealthiest nation in the history of the world. we can do $10 trillion. >> reporter: not the money going to roads and bridges but more money for their green energy initiative. the sunrise movement, new progressive groups is this infrastructure package is a step towards the green new deal vision they have that does not
go all the way they want it too. adam green, co-founder of the progressive change campaign committee telling me as an infrastructure plan this was a home run, bernie sanders pushing $1 trillion just recently. as a climate plan this is a down payment with hopefully more to come to meet the urgency of the moment. biden and pete buttigieg are in a tricky spot tackling climate and infrastructure because building something green has an impact on the environment and biden on day one promise to put in place strict are epa regulations for federal infrastructure project. more red tape to get these projects approved, the transportation secretary pete buttigieg admitted today getting permits approved when he was mayor including under president obama was a problem but biden has put the epa administrator gina mccarthy on a path to put back in place those obama era regulations, she and the transportation secretary pete buttigieg will
be in that cabinet meeting starting in any minute. neil: thank you for that. we will monitor that as well. let me go to the chief investment strategist, the trading director of options. the markets have been doing quite fine for all these worries about the infrastructure package and taxes that go with it. i don't know why that is. i'm betting a lot of those, a lot of that package doesn't get through what the president wants or because it does get through. what do you think? >> the big brush is very seasonal. a lot of optimism for the new administration for the consolidation period where no one is sure what is going to happen. we are debating is going to be good or not? it will impact factors like eb
and solar but right now the run into earnings is more impactful on the market, the nasdaq breaking are going to major tech earnings. >> the evaluation of the stocks changes when the underlying company's tax rate goes up. they calculated that in the 28% corporate rate, and look at these markets. >> bioresearch, 8% corporate taxes. and can't accept that. the direction of the stock market is upwards in the short-term. seriously concern for the long-term, inflation is a true concern down the road.
the inflationary concerns with higher tax environment, here is the thing. most of the people supporting higher taxes and higher spending, and it is the middle class always gets burned. and especially if wages don't keep up with inflation. stuart: do you see that continuing. if these worries are out there again, markets have a funny way of showing it. >> i don't think we will see the same growth we saw in the stock market under biden likely sondra donald trump who taxed
policies were very effective as far as corporate growth and a lot of the factors lloyd mentioned are going to damper the type of momentum we saw. i'm still bullish on the stock market and thinkable climb higher i do think that movement is going to be a little muted and that is what we have seen over the course of the past two months while the markets have been digesting what is going on on a macro level. neil: looking at this and the inflationary side, i put in perspective even though the 10 year notice comes out, today it feels it tripled from a year ago. you look at that as a price, that is an inflationary development, prices are 3 times what it was but are you worried if this gets out of hand? >> i'm definitely worried 5 to 10 years out this gets out of hand whether it is inflation or
taxes, it goes so high that jobs are eliminated. when you raise taxes it will eliminate jobs, decrease wages. the only reason they think about raising taxes in the first place is democrats hand out money like candy through the infrastructure bill, stimulus and an efficient government spending. taxes cause a redistribution of wealth. redistribution of wealth does not work. it causes the middle class and poor to become poorer. the only people to support higher taxes have the them not me, i shouldn't pay higher taxes but people making more money than me should pay higher taxes. this is in the best interest of america. politicians, what they are doing now, to answer your question again, this is a worry for investors, it should be. neil: i could be, many viewers assume that is the case but i think this will pass the way the president wants. i could be very wrong.
let's say that i'm right. let's say i am right and this does pass, play out the fallout. what do you think? >> i think it is going to pass but if it does pass we need to look at areas of the stock market that could potentially benefit from it, look for some infrastructure plays, we need to look for easy plays, solar plays, look for new ipos, innovative companies the work within this space. tech has been soft and companies, big technology companies, those are the ones that will be more impacted based on higher taxes but it comes down to earnings, the companies that are going to not just survive but thrive in the new era. what investors need to be looking for, we need to be looking at company earnings to
see that these companies are going to continue to thrive or not. those are the ones we need to be invested in on a long-term basis. neil: i want to thank you both very much. we keep showing the s&p 500 on the lower portion of your screen hitting a milestone, over 4000 right now, the dow at 30,000, this is maybe more consequential when you think about it because the 500 companies represent a more diverse view of american business, not the largely industrial types but by and large define the dow, with the weighing of tech in that average but many more companies, the s&p 500. it is a more accurate barometer and it is racing away. the former office of management and budget under donald trump. good to have you, thank you for taking the time.
i know you are fond of looking at the market, surprised they continue to advance? it is very damaging for the economy and the spending that is going on and more spending on top of that. >> these policies will catch up with these policies, we can't keep throwing $2 trillion spending bill and expect to finance these things. the massive tax increase on it for things that didn't seem able to capture, there are warning clouds on the horizon. neil: a lot of commodities, the price of homes up 11% year over
year. do we worry about inflation? >> i think we do. we are seeing that a from across the political spectrum, hearing that from larry summers as recently as a couple months ago. the variables of that metric starting to be out there that is not a problem. my concern with this bill is not an infrastructure bill. we are wasting money exacerbating a problem, we need to make certain investments that may countries strong and get the economy going down the road. neil: something the president will be pushing in his first cabinet meeting since the whole infrastructure plan was announced, getting democrats on
board, it will be an uphill fight, mitch mcconnell as it stands now, doesn't mention republican support but what about the president keeping troops in order, that is what it would take? >> it is an open and shut case. moderate democrats, the importance of senator cinema and senator manchin, we are seeing some theater, they want to spend that money. it is designed to make a $2 trillion infrastructure bill to look moderate, they don't survive the bird test. that is very damaging as policy but designed to provide some winds out there to keep this package largely intact.
neil: it is a more limited infrastructure package closer to $1 trillion for infrastructure only, ancillary stuff that is lampooned by the writer. how likely is that? >> the scale of how big this is makes it hard to go anywhere near the level of spending for roads and bridges, $160 billion for potholes and bridges and airports, the kind of thing that would allow a republican inside, 1 trillion and a half off the table which is care economy investments and soft infrastructure.
and it is a bipartisan deal. >> and keeping an eye on the border. the implications and the crowds that are building as we speak. >> officials at the border tell us the smugglers who operate along the us-mexico international line are now exploiting their victims and in more horrific ways than we thought possible. some jaw-dropping video you don't want to miss next.
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the border, to keep the community safe. neil: it is very much in question. casey steagall following these developments at eagle pass, texas, right at the border. >> you see something that breaks your heart. a baby was thrown off, we woke up this morning, shocking video near know paso. captured by customs and border protection cameras. you can see the smugglers on the mexico side drop two small children from the top of the
border wall in that spot. the 3 and 5-year-old little girls fell to the ground in ecuador, agents able to rescue them and miraculously were not -- this simply proves the cartels and organizations are becoming more brazen and are willing to do almost anything to make a buck. >> the byproduct of this is further exploitation and family members. when you think of hope and desperation, that is a kick of a choice to make. >> last night the feds announced a new emergency intake site in houston at the situation with christian churches. we see the convention center is converted to overflow housing
now, church groups getting involved in houston up to 500 unaccompanied minors set to arrive there today, with h h s numbers, now more than 18,000 migrant children in us custody. ashley: casey steagall, all of that, getting a sense of the growing sides of this, chris cabrera, very good to have you back. and, it would clarify not at the border. what do you make of that. >> them but he coming down here
from the administration, and what that may or may not be. >> you see the entire border, a lot of open points in the wall, and true about it, you go to those points, they are by the thousands. where do you see this going? >> there needs to be a policy change if people turn themselves in, do it behind the wall on the other side of the wall wherever they can so we need to put in something that will not allow them to make landfall. making so much space for people who come here illegally, something needs to stem the
flow and doubling numbers every couple months. neil: forget about the teenagers but the real little kids, what happens to them? >> the tragedy of these things, whether it is 3 or 13 they come across, god willing they make it okay, parents are already here, a child needs to be with a parent, times are tough where they are from. you can't put your kid in the care of a smuggler to drop them off a wall. the people, the smugglers on the mexican side don't see them as human but as cargo. >> much further south, talk down that many are penetrating
the border, some as far away as africa. the mix seems to be changing. >> seems the word is out worldwide. it is welcome and unfortunately, that is what we are hearing from people who cross it. that is the messaging they have and we will not be up to convince them unless we take decisive action. neil: you have a good common sense view of this, you breathe it, you see it, what would you do? >> mandatory detention, mandatory removal that send a message that into we figure the system out, nobody is coming across the border illegally and if you do you are going home. once they come up with a reform
plan, we can start allowing people to come in unless we have the border secured first. neil: all wise words, chris cabrera, national border control, the situation worsens right down there. giving you an update on how the virus is going on, things are progressive smoothly. in europe it is anything but. ♪♪ ♪ ♪ (upbeat music) ♪ ♪ ♪ ♪ ♪ ♪
nothing of france and italy stay home on easter sunday. >> reporter: it is hard to believe what i am about to report, france has not seen the end of covid 19. the french president emmanuel macro went on tv, the third national lockdown, cases and deaths soaring, the intensive care units apostles are filling up. and the uk variant we've been talking about. a slow rollout of vaccines, only 13% of adults in france got there first shot of any kind of vaccinations, bulking up supplies with of the sputnik vaccine, bars, restaurants, shops remain closed, travel is limited, when medical official
quoted today saying, quote, the virus is winning and we lost control of the pandemic, more than a year into this thing. the new wave of covid 19 restrictions to out the european union, they are feeling the heat of the government right there and the international body also getting a lot of stick for this was one country right where we are in the uk in better shape and again we think it is down to vaccines, 60% of british adults have had their first vaccine and stage by stage, uk prime minister boris johnson bringing the country out of lockdown. your viewers might remember a year ago about this time johnson was himself a victim of the disease.
neil: i had forgotten about that. to the white house, i want to dip into this. >> american employees. today i'm directing every member of the cabinet, i mean this sincerely, every one, to take a hard look at their agency spending and make sure it follows my by american standard which was set out in january and ask you all to report back to me the next cabinet meeting and i thank the press for being here. talk to you all later. >> thank you. thank you. thank you.
neil: you wait to see if he's going to say anything. the east room, the cabinet discussed that, 2 and a quarter trillion dollar infrastructure plan that has run into criticism from republicans, mitch mcconnell above them, saying it is a nonstarter. jake stein is with us, they cited the dream hotel group ceo, kind enough to join us. if you don't mind my tying it in to the infrastructure put on top of $2 trillion stimulus push that is supposed to help the economy or your industry.
>> thanks for having me. a lot of support at this point, getting people comfortable to spend money, certainly helps our industry, the rollout of the vaccine is going well in our country as opposed to previous report in europe. the infrastructure spend, to see where the money is going to go to improve our roads and airports. to travel internationally and you are way behind in those areas, severe help to bring the us back in the infrastructure side. neil: margaritaville is under your domain. >> we will be managing that
one. and lifestyle hotels, a lot of rooftop bars and revenue, food and beverage is sometimes higher than the ringside. it is typical for this type of hotels the we do, funding in markets, south beach and hollywood, los angeles, nashville, new york city, in mexico, a property in cutter this year in time for the world cup, doing a great wilderness lodge in new york, very high end, also a project in belgium in the wilderness, southern part in france, all four of
those projects we hope to have before the end of the year. >> france is returning to a lockdown not as severe as prior ones but a lockdown nevertheless. europe looks a little bumpy. are you worried? >> i am. the international markets that feed the us -- even before the recent bumpiness it is going to be, we are focused on the domestic business. even the majority that will come from leisure mixing business, gotten comfortable through the pandemic being able to work remotely and be able to do their work. that is where we see the upside in the coming few months.
neil: saying the obvious, hospitality suffered mightily. you went on to say the government should suffer a real estate tax bill or give them some type of relief. some of them, talk about hotels closed for good but the majority will get through, particularly vulnerable are smaller hotels. i don't know if that was addressed. i don't think it was but what happens now do you think? >> it wasn't, it's not a national issue. it is a state and local real estate tax issue, many of these cities and states are suffering on their own so it is difficult so for the national government to step in to get those cities through these tough times and cities to rollback the
penalties, the payments themselves is when our industry needs at this point. neil: without that you left a lot of cash on hand, vaccine occupancy rates pick up mightily across most major brands. what about the rest of the industry as things stand now, how many will not? >> tough to say. i hear numbers in new york city that as many as 20% of the hotels might never reopen. that is possible and some other markets, typical, like san francisco and those markets you may see but new york will probably be hurt the most and the number of rooms that don't reopen, you will see the bounce back much quicker. new york had some issues prior to covid in terms of real
estate values and the hotel rooms that are there and the ability to drive more rate for these rooms. neil: we will see what happens, thanks for taking the time, and optimistic forecast, hope it sticks to that. we are still looking at a couple developments and why we are disproportionately showing the s&p 500 because it crossed 4000, the dow is not doing a good job putting incredible performance in the first quarter here and continuing to pick up on that theme as is the nasdaq, picking up where they left off, four quarters in a row, stunning growth, 50%.
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neil: exactly how it was that the founder of the company was able to swing around a network that got to the billions of dollars, charlie gasparino joins us now. what have you learned? charles: if you grasp the size and scope of what happened here you have to figure out the family office basically managing his money he has accumulated during a long career in hedge fund business and six years ago where it was before it. up and blue up a bunch of
banks, credit suites hadn't put the final price tag on how much was lost, credit suites could lose $500 billion which would necessitate a capital rate so this guy had a big impact on wall street the last couple weeks so we went back to figure out how much he started with and how much he made now. we know the number now is $10 billion. who knows what it will be when the final losses are tallied up. we found a document from a private research report paid for by a christian college. he gave a lot of money to christian colleges and christian charities, they ran a research report to figure out how much he was worth, soliciting for contributions. people with direct knowledge of
the report that he was worth $1 billion in 2014. he's worth $1 billion in 2014, much of the money being traded, he is worth $10 billion before it implemented. that is a staggering 900% increase in six years, i have never seen that on wall street before. the only way you can do that is by taking huge risks, huge bets and derivatives. don't know the last guy who did that for six years. gamblers when a lot, they can lose a lot too, in a fraction of it, if anything is left i don't know. lydia moynahan came up with, that will give you the size and
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televised in their entirety. >> the confirmation process by the senate democrats which i call the obstructionists, maybe they will change but i doubt it, they are truly obstructionists. this is our first cabinet meeting with the entire cabinet and president. never has there been a president with few exceptions in the case of fdr this past more legislation, who has done more things than what we have done. >> the greatest privilege of my life to serve as vice president of a president who is keeping his word to the american people and assembling a team that is bringing real change, real prosperity, real strength to our nation. >> my hat is off to you for taking that stand and presenting a clear message around the world that america is going to continue to lead in
the area of energy. >> we were able to focus on the forgotten men and women, putting the budget together. neil: those are the meetings i have with my staff. sciences they start out complimentary me and we take it from there. different style. the white house national correspondent, a different tone, a different tenor. what do you think of that stark contrast? >> you had donald trump. he waited until june to have first full cabinet meeting in person. it was very self-congratulatory and ryan's priebus talking about how it was wonderful to serve him. this was more buttoned up, what we have come to expect from the biden administration, no
questions. to approach it as a journalist you had totally different approaches. you become prepared for those cabinet meetings, when you went into the oval office and the cabinet room, you had to put on your arm or because you may tangle with the president, he would take your questions, this time no questions taken, assured out the door, very routine, very orderly but not a lot of give and take, the cabinet members we saw or the press that were there. neil: to be fair we don't know what was going on after the cameras left but you are right about this, it will be a different policy here maybe going back to cabinet meetings and how they were handled pre-donald trump where you didn't know what went on in those meetings and that could be good or bad depending on your point of view but it does
set up enough to worry about and share things they might not want to share in a public forum, this president intends to keep his white house event limited, his white house calendar very limited at least to the public. adding more of a mystery. i don't know if that is good or bad, just returning to what was. >> if you have a more private setting especially for the first meeting you will build a trust level with your cabinet. you will build an understanding about their marching orders that may not want to be public yet, share some concerns they had with you that are things you might want to address and troubleshoot ahead of time. these are two different styles. president obama was a little more in between. i covered him as well. he had some engagement with the press, some back-and-forth and
some comedy. we are not seeing that even though joe biden was known for that in the senate and as vice president we are not seeing that easy rapport he had with his staff, his cabinet members of the press, not yet at least. neil: we get little inkling of what is going on. fascinating to juxtapose that with donald trump today. it could happen. great seeing you again. looking at the s&p technology stocks, the dow marching along picking up where we left off, four quarters in a row where the market surged 60% more for technology and continuing where they left off after this. ♪ ♪ ♪ ♪ ♪ ♪
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♪. neil: all right. the back and forth on all of this with the infrastructure package and all. as i keep saying they have a funny way of showing it. right now to charles payne. hey, charles. charles: neil, thank you very much be my friend. good afternoon, everyone, i'm charles payne, this is "making money." the market kicking off the second quarter with a bang. the s&p hitting an all time high. money continues to rotate back into tech stocks. is it time to get in on the action? i have a panel of experts what you need to know right now. while president biden holds his first cabinet meeting today, the middle class are wondering if the taxes are going up. there are more than economic dilemmas with the proposed infrastructure by we'll cover the political and moral issues with amazing guest, including former congressman