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tv   Maria Bartiromos Wall Street  FOX Business  July 18, 2021 10:30am-11:00am EDT

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but this is the time for professional management to that i like her fidelity in matthews china. >> much better than individual stocks thank you beverly and carlton and jack, check out this week's editions of barron.com don't forget to follow u
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maria: he will weigh in on the rising cost for food and the impact on your wallet, all that coming up let's take a look back at the newsmakers with "mornings with maria" in this edition of the weeks talkers. tell us about the tuna sandwich. >> i'm very glad you asked about it it's 100% tuna, we stick by that, go back and look at the lawsuit they admitted their filing and said we agree it's 100% tuna. >> what is the point of all of this. maria: were seen in recovery, this will be a fight on the reconciliation package which will be the second package, visit infrastructure is something that we dedicated federal resources to we usually pay for the journal is warning texas democrats.
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>> voters suppressing the vote they are stopping the vote of 180 legislators and they are programming other elective representatives from doing their job. maria: we had some volatility as jay powell admitted to congress and it continued to say it was transitory or temporary joining me the bahnsen group founder and managing partner david bahnsen, it's always a pleasure, thank you very much for joining us this weekend. your thoughts on what you heard on jay powell do you agree the inflationary numbers that were seen are temporary? >> the problem, there is nuances, there is commodity prices that i think is definitely transitory, we already saw lumber go way way up and it's dropped 65%.
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there's different stories to confuse the broader narrative what i believe has systemic inflation is housing prices and i don't see that as a good thing. a lot of people like it that it keeps going higher and higher but the portability is a big problem, overall, i believe excessive government spending is this inflationary in the story in japan over 30 years, i think chairman powell is stuck talking about a different thing at once and the whole story is good very confused and the government has a right side of spending. maria: what does all this mean in terms of policy do you think the federal reserve is going to start talking about tapering more aggressively during the jackson hole meeting the annual federal reserve powwow in august and jackson hole or do you think it's a 2022 affair, when are rates going to start moving up in your view?
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>> it was ten years ago and jackson hole that they started talking about doing q.v. to come i think jackson hole that they will talk about in the this qe but i don't think they will taper it till later in the year but i don't believe it matters, i don't think markets will ultimately care and i say ultimately because i'm sure there will be enhanced volatility traders from the algorithmic guys they get beat up and so forth but ultimately market uncertainty in the qed lingers over markets with uncertainty while providing no organic or tangible economic benefit. maria: tell me how you invest after all that you've heard and seen, your expectation for the macro story leads you to capital how? >> we really want to be as a
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gnostic as we can of what the fed is going to do they are hyper involved in the american economy, hyper involved in equity markets but what we want our companies with cash flow generation balance sheets that can withstand various problems that may come up, we don't think it's going to be an easy ride for a few years, we don't want to hide the very high pe stocks that are frankly very popular so the dividend growers across the sector, were not only concentrated in the energy or financials but we want to be there and we want bottom-up companies have the ability to withstand things and if we get more inflationary pressures like the pricing power, procter & gamble, mcdonald's, 3m, these companies have the ability to grow their prices with inflation and those are what we are investing in. maria: what about the potential headwinds coming out of president biden gets his economic policy through in the three and half trillion dollar spending plan lenny's talking about taking the capital gains
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rate up to 43.4%, higher taxes on many americans, most americans as well as the corporate tax rate gets higher does not trigger a stock market selloff? >> it is interesting, they talked about a 2 trillion-dollar infrastructure bill, now it's 600 billion, they talked about a $6 billion spending plan now is $6 trillion in hour three and half trillion so he can talk about a 43% capital gain rate all he wants, they don't have the votes to do it and it's not going to happen, he may get higher taxes somewhere and i don't think that's good it's not what the economy needs, however, i don't believe that the market thinks nor is our system of government set up to allow them to get the agree just tax increases, the corporate tax rate is the one that will hurt all americans the most because the companies will pass on the cost to their customers obviously we know this economics
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101 yeah i suspect they will get the corporate rate to 25% still lower than what he proposed. maria: we will leave it there, great to see you this weekend, thank you very much we will keep watching all of that david bahnsen joining us, thank you and we will drilled deeper president biden pushing the two and have spending trillion dollar on millions of americans receiving new child tax credit to their bank accounts 39 millions of americans will receive that art laffer says we should not be spending on either of these, he will join me next. usaa is made for the safe pilots. like mac. who can come to a stop with barely a bobble. with usaa safepilot, when you drive safe... ...you can save up to 30% on your auto insurance.
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maria: welcome back getting
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america back to work u.s. initial jobless claims fell to pandemic well this past week in march of 2020, the month that covid-19 first hit the u.s. economy i spoke with former reagan and economist art laffer to get his reaction and what the biden administration is moving the economy in the right direction. >> we need a lot more increases in employment that were getting just to get back to the pre-pin democrat, employment at a population ratio just to get back to that we need a million new jobs and these numbers are not producing those types of gains that we need to breeding our production back to where it was before the pandemic, if i look at this it'll be a long slow process ever coming back in the policies that this administration is putting in i don't know how we will ever make it. maria: we've been talking about these policies whether it's economic policy and foreign
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policy i'm having a hard time finding anything that's really positive for the american people, look where oil is in between vladimir putin and the iranians are waving sanctions on iran and they will be allowed to use his money that was frozen, what the heck is going on with the foreign policy that is enriching all of our adversaries, policy regarding china either, your thoughts overall on foreign policy and economic policy. >> i think our foreign policy is not helpful to the u.s. at all i think we should have be in the pipeline, oil prices we should be producing oil here which is that by the way of foreign policy tool, we were energy independent before and the price of oil was dropped that's very good for the u.s. economy and were waging a war against and the u.s. which will hurt the economy with proposing tax increases especially on capital gains, corporations, individual and minimum tax, all of that is
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into production and against the ability of the u.s. to come back where we were it's a frightening situation. maria: 39 begin household receiving bank deposits through the end of the year it is obviously talking about $150 billion child tax credit on top of this story that we've got the this morning senate democrats agreed to a 3 trillion-dollar package, do you think joe biden will push this through reconciliation? >> i don't think he is but i'm not sure, i believe he's going to have to backtrack a great deal on the three and half trillion but i'm not the expert on politics that's what i've been told but it's way too much it's in the wrong direction we do not need the stimulus we do not need the child tax credit we don't need the extended employment benefits we don't need any of these things that are not pro production we need to get back on growth we will never make up for what we lost
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during 2020 with the pandemic we will never make that up, at least we can get back to the trajectory we were on but we will not do that either with these types of programs. maria: we just showed you the morning consult graphic more than 1.8 million unapplied americans have turned down jobs over the course of the pandemic due to the unappointed benefits, we talk about the child tax credit don't forget what the other on extended employment benefit has done to the jobs market people are turning down work and they would rather stay home and get the gig that they got on the side and except the unemployment benefits. >> then you've not mentioned the new regulation, you not mentioned raising the minimum wage all the visit into production i don't know how we get back to good growth taxes this administration the way that they're doing they did a couple of things really well medical
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price transparency is wonderful they agreed with the trump executive order and they will enforce it which is terrific and no be very good for the economy, otherwise these policies do not make sense and one issue were talking about is the package obviously needs to be paid for joe manchin says i'm not going to agree unless it's paid for. how do you pay for, you raise taxes. >> the trump tax cuts in 2017 in the fourth quarter paid for themselves, read a brand-new, total butter government revenue went up after that for the next two years, compared to the previous two years in previous four years it paid for itself come if you raise is backup in reverse trump, believe me it will not pay for itself, you will lose money in the papers make no sense, why don't they raise all tax rates to 150% of everything the rich people earn. so every time these guys going to the office they get a bill instead of a check we would have a balanced budget in a prosperous country, wouldn't it be wonderful.
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these people are critical linchpin for the growth of the economy, these top 1% are the ones who make america great they're not the ones who should be exploited and sacrificed and butchered, these are the people who are america and they make it and that's what we've got understand the buffets the gates, there wonderful people, they're not awful the great. maria: my thanks to our laugher coming up food prices spiking, coming up food prices spiking, how high will they go and ♪ ♪ ♪ coming up food prices spiking, how high will they go and ♪ ♪ ♪
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maria: welcome back the incredible shrinking dollar milk, gas, wine, eggs all cost more this was on the cover as
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consumers start to feel the pinch of inflation wholesale prices for food are also showing big spikes and greens, beef, pork, fish all hitting restaurants hard joining me the former ceo of ckd restaurants andy pozen or, thank you for joining the conversation this weekend, what is your take when you see those spikes in foods, what do restaurants typically do, do they swallow that or inevitably do they raise prices. >> the mergers are not big enough, with these kinds of cost increases in you normally got the cost of food going up which is tremendous of a worldwide problem you also have the cost of labor in the united states going up so restaurants are facing dramatically increase cost added time when we should come out of the pandemic and should be having a great economic recovery and we seem to
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be cobbled by the policy initiatives that increase labor cost and food cost. maria: i was going to say the restaurants are coming off of it. where's some were struggling to stay solvent given the fact that they had a long period of time that they were shut down, how significant is the inflation out there from your standpoint. >> is very significant that said in the biden administration seem to think this is all temporary the business has reacted differently, 43% of small businesses in the national federation of independent businesses monthly survey said they would raise prices that's an all-time high in the number of businesses that increase salaries and wages without an all-time high businesses are looking beyond the bottlenecks in one industry like the chips being unavailable for automobile
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manufacturers they're looking long term at energy cost which impact the cost of everything there is nothing that is not impacted by energy because you have to deliver it and then labor which impact the cost of everything because you need people to produce your products. they're looking at this long-term and broadly than the federal the biden administration and they're probably right. maria: we are talking about inflation and wages going higher companies cannot find workers that they need to fill the positions that they have open, that's why were focused on policy, economic policy, where is this going where do you see the wage story going is this going to be limited once interest rates move higher? >> the more money that the government pours into the economy the more money it gets into people's hands and the less inclined you are to work, a lot
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of government benefits during the pandemic which were necessary at the beginning of the pandemic we wanted people not to work we didn't want them spreading the virus, those days are over and we knew at the beginning when this was over the democrats would try to extend the government benefits to keep people depended on the government we did not know that they would be in control of all three branches of government which is the big problem but we knew they would extend this and expand it and they are and it's having a dramatic impact on wages which will have a dramatic impact on inflation it was up year over year 5.4% in june wages were up year over year 3.6% that's a good number but it's not a good number if inflation is 5.4% because you're really behind and not gaining that something that we saw during obama and it will be what you see in the biden years unless a change policy direction. maria: it's extraordinary and
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there's also worries about where the covid story is headed mode during the had a good friday being added to the s&p 500 your thoughts on the worry around covid are we coming out of this from your standpoint as you look at business and how it has responded? >> i was at the airport a lot in the last two weeks, i'll tell you what except for the fact that people are wearing masks it looks like you're back at pre-pandemic levels of traveling you cannot get a reservation at a restaurant no matter what city you're in because people are so anxious to get back in and do the things that they did pre-pandemic. i do think there's concern about the delta variant but everything that i read that said if you been vaccinated is not that big of a concern it's a concern for people who are not vaccinated i think people who got the vaccine are out there going full steam i
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know i am in ice and people like me are doing the same. maria: this economy that you see more resilient than others, i know were seen reopening and it looks good we were ordering things online during the pandemic, does anything change after the pandemic inward you see the growth in this economy right now? >> two things definitely changed the way people purchase products in your gonna see people continue to purchase products online because a big part of people doing things differently is getting used to doing them differently and everybody got used to purchasing differently the second thing a positive impact to housing residential housing and a negative impact to commercial office space because people have gotten used to working at home. maria: great to catch up with
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you, thank you so much. andy pozder joining us, more wall street after this. ♪ ♪ ♪ ♪ there's an america we build and one we explore. one that's been paved and one that's forever wild. but freedom means you don't have to choose just one adventure. you get both. introducing the wildly civilized all-new 3-row jeep grand cherokee l
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mark levin will join us. plus on fox business start smart every weekday 6 - 9:00 a.m. eastern for "mornings with maria" on fox business we hope you will start your day with us every weekday that will do it for us for this weekend thank you for joining me, have a great rest of the weekend. i will see you next tim ♪ ♪ ♪. gerry: welcome to the wall street journal at large politics is mostly performance art these days especially on the left this week we retreated to dazzling displays joe biden gave a speech of the historic symbolic national constitution center in philadelphia he chose the city where the declaration of independence was signed you'll remember that the document produced by what

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