tv The Claman Countdown FOX Business February 18, 2022 3:00pm-4:00pm EST
all i can tell you is buckle up, the next hour obviously going to be a wild ride. cheryl casone is in for liz claman -- cheryl: i love what you're saying about not being fearful of markets. this is the time to invest and to look for opportunity when the markets are behaving like they've been behaving this week and last. so thank you very much for that. charles: thank you. cheryl: great advice. good to see you, sir. all right. as he was saying here, markets well off of session lows, but still we've got red arrows as we go into the final hour of trading. the dow down 18, the s&p down more than 4, nasdaq down 68. investors are getting ready for the three-day weekend not knowing what lies ahead. major averages on pace for the second down week in a row, but like i said, sometimes there's opportunity. you've got to think about that. u.s. officials are warning of an imminent russian invasion of ukraine with tanks, fighter
jets, even cyber attacks. president biden is set to give an update under an hour from now, but ahead of that, a live report from on the ground in kyiv, ukraine. bitcoin bulls bummed out today as the crypto adds on to yesterday's losses. we're going to be talking to the man known as the crypto dad with charlie gasparino about the regulatory environment and so much more as we follow the cryptocurrencies this hour. plus, gamers want to be gamers -- athletes, athletes want to be games, and faze plan is bringing them all together. they now have their eye on another prize, wall street and a public listing on the nasdaq. the ceo of faze plan here in a fox business exclusive. bottoms up, everybody, as i clear my throat. alcohol sales booming throughout the pandemic, but is the
non-alcohol beverage trend taking over? we're going to find out. i'm in for liz claman today, let's start the countdown. all right, a fox market alert right now. back to what you're seeing on your screen. the dow is down only 12, we were down 325 at the lows of the session, so right now you're seeing a big reversal for the dow as well as the s&p 500. nasdaq down 53 -- 251 at one point. the final 58 minutes of trading, we could go green, as charles just said. nasdaq down 5 52. a lot of those value tech names still under pressure. well, investors are cutting and running at this hour, fears of that imminent invasion of ukraine is cutting the appetite ferriesing in the markets right now -- for risk. u.s. officials are expecting a russian attack on ukraine in the next few days. wall street's fear gauge, that's the volatility index, that's the
vix, well above its long-term average of 20 as trillions of dollars in options and futures on stocks, indexes and etfs are expiring today. right now stocks are headed for a second consecutive losing week in the runup, of course, to this three-day-long weekend here in the united states. it's prime ministers' day, markets -- presidents' day, markets are going to be closed on wednesday. new york fed president john williams saying he didn't see any compelling reason to take a big step at the beginning as investors fear the fed would be aggressive in the march interest rate policy setting meeting. let's get right to our floor show, portfolio manager steve shiv roan, scott redler. it's great to have you both here. steve, obviously, these rate hikes, we've had many guests say they expect four or five rate hikes this year, 150 basis points if you're goldman sachs. other guests are saying they don't think the fed in this inflationary environment and the
economic cycle we're in is going to have, basically, the gunpoints to follow through on that many rate hikes this year. what do you say? >> i think they better find the guts, and they better find 'em fast if they don't have it. cheryl, there's three things that should never be true at the same time. you shouldn't have inflation at 7.5%, have interest rates at 0 and have a fed that's buying bonds. i don't care how you rationalize having gotten there, that's a key risk to the market going forward. and so if the fed doesn't act now, heir going to have to act in a more draconian fashion later, and that just brings forward recession risks. so our view is the fed's going to act somewhere between 5-7 times this year. whether that's 25 at all but one meeting this year, the fed is going to have to move in a -- [inaudible] fashion because if 7.5%
inflation becomes entrenched, you've got much larger problems. we expect a hawkish fed. cheryl: you're probably look at that quarter point based on what we just heard from that fed governor. scott, i want to talk about energy. that's the big story right now. we've seen oil actually kind of pull back today. there's a lot of talk that more iranian oil is going to come on to the market. we're kind of working, it looks like another nuclear agreement with the iranians. at the same time, russia is a large, one of the largest suppliers of crude in the world and, obviously, that is the other side of the story. all of this trickles down to energy companies and that sector is down today. your thoughts. >> well, the energy sector's been a great sector to be in for the last 3, 6, 9 months as oil has come up to, you know, the $90 plus area. it is a spot that investors are hiding, it's a spot that act active investors are trading because technically that sector's been great, and even today oil started lower, and i think it's close to being green
for now. there's a push/pull in the market. you do have, obviously, inflation, you do have what the other guest said, the fed has to hackett. -- act. the fed has to control inflation, so that typically isn't the best scenario for stocks considering the s&p's been up 100% in the past three years and so far the pullback off the highs in the s&p has only been so -- 10%. so if you really want to rook at things on an intermediate basis, in 2018 when we had the last taper tantrum, the s&p fell 20% in three months, the nasdaq 24% in three months, and so far we're only 10% off the highs after the three-year move we just saw. so on an intermediate basis, it's very hard to get excited about buying stocks right here considering we could make new lows on the year in the next six weeks. cheryl: well, timing can be tough though. charles payne and i were just -- it's still tough to time the market. at the same time, steve, i want to take this same line of questioning to you because we
are in a high inflationary environment right now. 40-year high for inflation, consumer prices, i mean, the american consumer's paying. companies though have been showing us during this earnings season, they are raising prices across the board. we have seen that. so from an earnings perspective, what does inflation say to you now? >> yeah, we don't appear to have an earnings problem, at least so far. companies have been able to take price in line with if not in excess of price inflation. i think the the bigger issue is on the multiple side, pe side. you know, if you've got growth companies that came into this year trading 30 times, they've only done that twice, the pandemic and the dot.com bubble. and as rates rise, pe multiples tend to fall. so we find ourselves in the position wanting to continue to sell our growth stocks and instead preferring some of those cyclical stocks which we think will do well in the short run. energy, materials, financials. more importantly, some of the
dividend payers that we think will hold up much better. cheryl: no. and also, too, in the middle of all of this, we had this existing home sales data come out this morning, scott. surprised me. i keep wondering when the top is going to hit, and maybe it has not. one-year high, existing home sales up 6.7% in january. >> listen, i think that's great news. but right now the market isn't rewarding strong economic data that keeps the fed on pace to have to reduce the pace of purchase and raise rates, so it's a very prefer precarious situation. and i agree with you and charles, by the way. put your monthly flows into s&p funds, not into stocks, because stocks right now, if you look at cathyed wood's names, they're 60, 70, 80% off the highs, and some of them will never come back. if you're a long-term investor, this type of process will help your average costs over time. again, it's like your time frame. if you trade like me, actively
for a living, and you get paid monthly and quarterly, you better know what's happening in the markets. right now the fed is a headwind, not a tailwind, and you have to be careful going into a weekend like this long or short based on what could happen in russia and ukraine. cheryl: if the stock market was a barbecue, whop there's room for everyone at -- we hope there's room for everybody at the table. have a great holiday weekend. thanks, guys. well, president biden is set to give an update within the hour on the escalating standoff between ukraine and russia. the situation between the two nations has intensified really in just the last 24 hours. the president also expected to speak to nato allies about continued diplomatic efforts. trey yingst on the ground in ukraine. he's got the latest. >> reporter: cheryl, a lot of updates for you today. we have separatist leaders right now in the eastern part of the country who have ordered an evacuation of civilians to russia. they claim that ukraine is
planning to attack. ukrainian officials are pushing back saying there are no such plans in place, and they say this is part of what president putin's plan is to lay the groundwork for a false flag operation. ukraine's military intelligence service warned today that russian forces have placed land mines in public buildings in the city of donesk adding people shouldn't leave their homes or take public transportation. fighting does continue in eastern ukraine after dozens of ceasefire violations were reported since yesterday. one ukrainian officer tells fox news his soldiers are responding to shelling and remain prepares for -- prepared for further escalation. both russian and ukrainian forces continue high-level military drills today. tanks and helicopters conducting exercises. the ukrainian president visited some of those drills. on the russian side, president vladimir putin will reportedly observe ballistic and cruise missile drill on saturday as estimates indicate the total number of forces along ukraine's
border now tops 190,000 soldiers. as for that developing story in the eastern part of the country, a leader of the russian-backed separatists was interviewed by russian state television and asked about the prospects of war and if war was on the horizon. he responded, unfortunately, yes. back to you. cheryl trey yingst, thank you very much. appreciate it. all right. well, draftkings under pressure at this hour. we're going to check what's happening with the sports betting app. stock is down more than 19% right now. and did you see the chain that snoop dogg wore in the super bowl halftime show? coming up next, the company and gen-z influence nuance -- influencers that gave it to him. faze clan. they're going to go public via spac. the ceo joins me next. it's a fox business exclusive. ♪ muck. cheryl: taking a look at your markets. as you can see, we've got the dow down 90. we'll see how the rest of the
hour goes. a lot of pressure this week on markets. "claman count countdown" coming right back. ♪ your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire black rock silver is bringing new life to a historic silver
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♪ cheryl: draftkings' stock not a good bet to boost your portfoliod today after the degeneratival sports entertainment company announced it examine expects losses to wide widen to between 825-925 million, much higher than the estimated os love 572. the company -- loss of 572. new york state contributed to a wider loss from operations. i caught up with the ceo, jason robbins, last week at the super bowl to ask him what his engame is as they try to get more states like california onboard. >> it's anyone's guess how many states will do it. i don't know that we'll get all 50, but you never know. right now our latest projection that we've had in our investor day from last year was 65% of the population in the u.s. getting sports betting. hopefully it's higher. i think there's some upside there, but we'll see. cheryl: we shall see. checking other sites right now, penn national and caesar's, and i was asking, we talked about
the competition, it's probably going to get more competitive. penn national down more than 3%. draftkings, as i mentioned, down almost 19.5%, and seize caesar't 3%. elsewhere in the business of sports, the fast fashion merchandise company fanatics is buying mitchell and nets for 250. teaming up with celebrities like jay-z to expand its empire with mitchell and nest known for its throwback pro team her m -- america if erch. faze plan gifted the chain to snoop dogg. it's what he's wearing around his neck in that picture. that was for the super bowl halftime performance under the ticker faze in a $1 billion spac deal. a marketing agency, e-commerce if company and a new sports team
all under one roof. the multifacetedded company revolves around gaming and gen z culture. here is the founder and ceo, lee. it's great to have you on the show. >> hey, cheryl. thanks for having me. cheryl: you've got a lot going on as a company. [laughter] >> we sure do. cheryl: yeah. let's start with this move to go public. what kind of timing are we looking at here for the ipo? >> so look, we're moving ahead. you know, we're on track and, you know, something that's likely to be you might say the next several months is what we're tracking towards. cheryl: is the spac environment kind of giving you pause right now? >> i mean, look, obviously, the spac market has been challenged, but i think spacs are made for companies like ours. i think that a, you know, a company like ours, you know, we need the ability to really explain what we are, and the spac vehicle gives us the
ability to do that. cheryl: let's talk about what you are, because you're a lot of things as i mentioned in the into duction. really for you -- introduction. we're going to get to ?oop doug in a second, but it's youth market. you're capitalizing on that younger group. let's talk about that. how do you monetize what is a tough to reach audience, which is that young audience? >> yeah. i think, look, i think the first thing is, you know, we're in conversation with gen z every day, right? this generation, look, i think all youth generations have their own twist on how they want to be communicated with, and i think that that's remained consistent and evolutionary over the course of different generations. but gen z is really kind of starting with more of a blank canvas. and the thing that older generation cared about, just don't -- you know, a lot of those things don't matter.
so we're in a daily and consistent conversation with a huge audience really, at this point our network is, like, 400 million followers, and we speak to them daily and in their native tongue, in the platforms that they live on. and so we're in constant conversation. so it's given us the ability to just commercialize our relationships by bringing, you know, blue chip brands like mcdonald's, nissan or beats and introducing them to our audience, and then there's direct ways we commercialize like with our apparel. cheryl: okay. so you're commercializing with the apparel, but what about the sponsorships? for instance, the chain that snoop dogg wore, i'm assuming that's something you had to pay for, i'm assuming. >> i will say you're actually assuming wrong on that, on that part. so, you know, snoop has been in our orbit for a long time. our chief strategy officer has a long relationship with snoop,
and he's begun talking to him about faze really for several years, brought in snoop's son kordell into the conversation, and we're certainly exploring what a relationship looks like. but the reality is, is he kind of just blessed us with wearing that chain. and there's no deal that was predicated on it. i think that it was sort of another moment that showed how this super bowl was the moment when gen z rose to power. and i think you saw that within halftime, you saw that with the fact that, you know, snoop and what he wore that day was all the things that represented him. you know, snoop is almost like the original gamer kid. he's like the original internet kid. cheryl: yeah. >> he's been a gamer and a champion gamer for a long time. look, i think we're kind of -- we were humbled to see that he is, you know, that that's part of what he wanted to present. cheryl: well, hey, he's any
generation -- my generation too. me and martha stewart. real quick, having an e-game on the cover of "sports illustrated"ded, getting a mainstream brand to really get into this whole, i mean, that's huge right there. talk to me about this. how meaningful was this, this cover? >> it was immensely meaningful because, you know, look, i've been in the space for some time, and part of the dissonance was how big the space was, how important it was, how important we were as a brand to this huge community, but the reality is the traditional world was -- what i used to say blissfully unaware of it for some time. and so with sports "sports illustrated"ded, it was able to translate to those people that didn't understand gaming, that certainly didn't understand faze, how important we are to sports overall. and so it was, you know, it was certainly a seminal moment for
us to really demonstrate the importance of the space and the importance of faze clan within it. and i think that all, you know, gamers and gaming companies celebrated that moment as finally being recognized for the importance of pop culture. cheryl: we've got to run, but i tell you what, the super bowl this year looked so different from the advertising, from who sponsored the parties, from the halftime show, all of it. it was a very, i think, very forward-looking super bowl, and i'm sure the nfl is happy about that as well. lee trink, keep us posted on the ipo. thank you. >> thanks a lot. cheryl: talk to you soon. let's stay with music and sports. what do pit bull, michael jordan and floyd mayweather have in common? they've all got cars racing in this year's daytona's 500. we're going there live next. as we go to break, selling, we're down 193. be right back. ♪ ♪ finish
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♪ cheryl: a fox business alert right now, shares of intel are taking a dip at this hour, sitting at the bottom of the dow and the s&p 500. stock is down more than 5%. the chipmaker said is it expects its profit margins to drop this year as it invests in new technologies and factories to meet rising chip demand, because we need chips in this country more than anything. in response to the news, barclays maintaining its underweight rating but lored its price target to $45. shares trading, as you can see, almost $2.50 to the downside. take a look at roku. this stock is plummeting right now as you can see on your screen, down more than 23.25% on pace for its biggest percent decrease ever after reporting disappointing first quarter revenue and guidance. roku management blaming the supply shortages that hurt the u.s. market for televisions. in addition, web bush slashed
its price target from $220 to $150. shake shack delivering weak guidance for the current quarter. the stock is taking a hit, down 5%. the burger chain says the mix of inflation and omicron closures hurt its business in addition to more investment expenses. barclays lowering the price target on the stock to $69, and as you can see, it is trading down by $3.87 right now. shares of virgin galactic crashing back to earth on news that the chairman of the board, the man who took the company public back in 2019, has resigned from the if -- from the post. in a statement, he said that he was leaving to focus on other existing board responsibilities. he's going to be replaced by board director evan love el until a new chair -- love vel until a new chair is chosen. stock down almost 7% right now.
[background sounds] cheryl: celebrities are racing to be part of this year's daytona 500. going to feature cars owned by nba legend michael jordan, floyd mayweather jr. and grammy award-winning artist pit bull. connell mcshane going hollywood on us at the racetrack to tell us how the celebrities can help the sport grow. hey, connell. >> reporter: i don't know the it's hollywood or not, but it is fun here, cheryl. it's my first time in daytona, and it's about to get very loud during this report one of these truck series cars comes by. to your point about the celebrities, yeah, they're excited. they're going to have the daytona 500 sold out this weekend, a lot of fans checking it out today. we were talking to justin marx, for example, he's a race car driver turned entrepreneur -- i told you it'd get loud -- he owns trackhouse racing which has partnered up with pit bull,s and he's talking about it as kind of
a marketing company rather than just a racing team. that's the way he sees it. you know, you don't see that in some other sports, and here's a little bit from justin. take a listen. >> these are people that have tremendous reach and tremendous platform, and it's authentic involvement in the sport. and so my hope, invested in the sport as i am,ing is that it starts to draw more and more interest to where nascar can catch up with football, baseball, the nba and these other american sports that have this huge global reach and penetration into pop culture. >> reporter: now, if you are a pitbull fan or admirer, everybody knows him these days, watch the number 99 chevrolet car this sunday in the daytona 500. that's his car with trackhouse. so we'll be watching that. meanwhile, michael jordan's got a couple of drivers in here. floyd mayweather actually had to qualify last night, his driver did, and he did. it was in the last lap of
qualifying, number 50 comes around and passes another car, qualifies for the daytona 500. so so floyd mayweather, michael jordan, pitbull, who knows, we'll see how it plays out, but one of them could end up, you know, in victory lane. not necessarily the favorite to win the race, but they could end up doing it, and we'll see if that happens. you might see some of the fans, it's a lot of fun. another car flying around. i don't know, cheryl, if you've ever been to one of these races in person, this is the first time we got down right next to track. man, it gets loud when they come by. cheryl: we can hear it from here in new york. trust me, that is something else, connell. very cool. i've never been, i'd love to go sometime. enjoy, definitely. great stuff, thank you. connell mcshane live for us. well, you can catch all the nascar action at the daytona 500 on your local fox tv station, 2:30 p.m. eastern time sunday, february 20th. by the way, our chairman and ceo is going to be waving the green
flag sunday to start the great american race. ♪ cheryl: well, the quarantining getting through many -- getting many people through the pandemic. we're going to talk to the woman behind absolute, malibu and jamison. can't wait to speak with her. taking a look at the markets, i don't know, i can't wait for this day to be over. we've had a big escalation in the last 15 minutes. dow's now down 312, s&p down 40, nasdaq down 191. we've got a lot of expirations on the markets, options and all that, so that's probably a big reason you're seeing the volatility. we'll be right back. ♪ ♪ riders! let your queries be known. yeah, hi. instead of letting passengers wrap their arms around us, could we put little handles on our jackets? -denied. -can you imagine? i want a new nickname. can you guys start calling me snake?
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cocktails. but according to a report by nielsen, non-alcoholic sales are up 19% compared to total alcohol sales which are down 6.7% for the month of january. that could be the dry january effect, i don't know. now, could this be the trend of alcohol sales for the entire year or just the usual? we're going to take a break in january and start drinking back in february. let's bring in per know rhode island card ceo. great to see you with. >> always great to be with you. cheryl: talk to me about this shift now. we saw alcohol sales go through the roof during the pandemic, but now people are out and about. what does that trend that you're seeing at pernod ricard mean? >> what we're basically seeing are restaurants is back, and they're back big, double digits. what you're showing here on nielsen is only what we call the retail channels, doesn't include bars and restaurants. so if you look at the total growth, if you combine both,
we're actually still seeing very robust growth, in that 6% range. and you're absolutely right, it's the low-alcohol, no-alcohol trend that's real. we're projecting about 31% growth in that sector worldwide by 2024, so there's a lot happening in this space right now. cheryl: i think it's interesting that the company is moving into that space because it is kind of the health and wellness trend that we're seeing, especially after we went through the covid pandemic, obviously. talk to me, though, about the different brands and the supply chain because we saw in particular with the wine industry, and i know that you've got perrier as one of your brands, all those ships that were stuck off the coast of california, a lot of those bottles, supplies for these wine makers were trapped on ships. how has the supply chain had an effect on you, and how have you dealt with that? >> yeah, i'll tell you, we're seeing supply chain issues, as you know, in the broader industry across many success or to haves. it's affecting alcohol as well. we've got many of our containers out there as well. but i'll tell you, it's made us
be much more, i think, innovative, finding new solutions, finding new ways through our supply chain. so we continue to perform very well in the industry versus some of our competitors in terms of supplies. and so it's an ongoing, i think, modernization of the industry really becoming much more data-focused and really, this has been a lesson learned for all of us in terms of where we can improve as an industry. cheryl: and you mentioned that growth. is the growth, again, going back to those, like, developing non-alcohol or low-alcohol brands, and what are those brands? >> i'll tell you, the first thing is as bars are opening up and we're seeing a huge amount of growth, retail sales stayed flat. all that gain that we got from the pandemic is holding. overall, that's a great trend. and from a low-alcohol, you've seen the increase in ready to drink. these tends to be -- tend to be the kind of 5, 6, 7%, so they're
really taking off like crazy. and as most are slowing down, what's really taking off in the ready to drink factor is spirit-based ready to drink and that lower add. we're seeing a lot of no-alcohol cocktails on the menu. so you're seeing kind of this kind of widen in terms of how people are enjoying alcohol across the spectrum. cheryl: that's really interesting how the trends are changing for the consumer. obviously, you're a global brand, and, you know, i was looking at the numbers, 6 billion in euros, 6.79 billion, basically, for the first half of fiscal '22. it's a 13% jump. so the numbers are strong globally. what about prices? because we're at a 40-year high for inflation. the consumer is seeing price hikes on everything at the grocery store. are they seeing price hikes for your products as well? >> yeah. i mean, input costs are a real issue, and what we're doing,
we're working really hard with our distributers and our retailers to contain as much of that cost increase as we can and really just kind of reflect the cost increases. but, you know, discretionary income is going to get challenged, and right now people still are voting with their dollars in this industry, and we're seeing a lot of -- [inaudible] but we're trying to work with our partners to control that as much as we can. cheryl: a lot of things happening, exciting things happening, ann. please come back anytime. >> i promise. all the best. cheryl: great to see you. well, switching gears, do not miss fbn prime's housing block every tuesday night. join me as we help people find their american dream home. that is at 8 and 8:30 p.m. eastern time followed by mansion global with casey mcdonald, 9 p.m. eastern time. that is only on fox business prime. bitcoin falling below $40,000 for the first time after
tumbling yesterday. we're going to be talking to the man known as the crypto dad about regulation in the sector. and as we head into the final 20 minutes -- 18 minutes left, the dow has been on it, we've been on a volatile tear. we were down 300, we were down 9, 90, now we're down 181, 182. i don't know what's going to happen, folks. stay with us. we'll be right back. ♪ ♪♪ we all need a rock we can rely on. to be strong. to overcome anything. ♪♪ to be...unstoppable. that's why millions rely on the strength and financial guidance of prudential to achieve their dreams. who's your rock? ♪♪ your record label is taking off.
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commission and author of crypto dad, chris january car low along with, of course, our very own charlie gasparino. chris, you said you don't think xrp should be regulated as a security. why is the sec so adamant about this? >> thanks so much. you know what? you had chairman gensler on just a few days ago, and he made it very clear he wasn't going to comment on an ongoing enforcement matter. the same may -- applies to former chairmen. what i would say is before the sec launched its enforcement action against xrp and ripple, i penned an op-ed along with my colleagues in an international law review applying the same approach we would have taken when i was at the cftc to analyze xrp, and we came to the conclusion in that 2020 article that it wasn't a security. and i stand behind that article today.
but as for commenting on that specific action, once it's in front of the court, it's not for me as a former chair to hanky cap how the judge may rule -- handicap how this may rule in a case can. >> well, chris, ether is not before the court right now. let's unpack this a little bit. gary gensler has consistently sidestepped the question if xrp is a security -- because, remember, they did some of the similar things they did on ether which is sell the token to help build out their platform, thus, mack -- making it an invest investment in the sec view, obviously not your view. then why isn't ether a security? because they did an ico to help build the i here to yum blockchain. i guess my question is if the sec wins this case. does gensler have to go back in time and basically consider ether a security and ding the etherium people? >> well, it's the right question
to ask, charlie. and in my book, i talk about our analysis and our work with the sec back in 2019 when i was chair of the cftc and jay clayton was at the sec and our look at etherium. it would be precedent that we looked at in 2020 after i left the commission in coming to the conclusion that xrp is not security. >> right. >> so the analogy is certainly there. the precedent is there, and i think depending on how this case comes out, it's going to -- it could be very challenging for the way here to yum's considered. >> so you think gensler could bring the case if he wins this one against e etherium. >> again, i don't want to handicap. as a legal precedent, it would be challenging. >> interesting. also the fact that he doesn't comment on it -- [laughter] the other thing i have to ask you is, i'm sorry, did i interrupt you? >> no, i was going to say, in
all fairness, there are good reasons why chairs and former chairs shouldn't comment on ongoing cases. it could be damage -- >> but etherium is not an ongoing case unless it is. >> no, i -- [laughter] look, i think my view is etherium falls on the cftc side of the ledger as a commodity, and that -- >> but, you know, he won't go there which makes you think he is investigating. and i'd like to just turn just a little bit. why is the sec on your turf or your old turf? it sounds like, you know, all's we're talking about is the sec going into these cryptocurrencies when you guys are, at least legally, the main regulator. you're the ones who are supposed to figure out whether it's a commodity or a security. you've obviously ruled you thought xrp was a mod key, at least intellectually you believe that. is this a power grabby gensler? >> you know, charlie are, you've been around washington long
enough, you know that washington is just a series of turfs and turf battles. that was one of the things that jay clayton and i really tried to put an end to when we were there, and i don't think the cooperation has ever been as good as it was the during our terms there. >> right. >> and i really recommend to my successors that they try to harmonize these things internally and not publicly. >> right. well, that is a real -- before i turn this over to cheryl, because she wants to ask you a question, that's a really diplomatic way to say gensler's picking -- making a power grab. [laughter] cheryl: didn't mean to go there. not my show. i do want to ask you about regulation in general. i mean, i think the biggest question for the movies crypto investor is what's the -- novice investor is what's the regulatory environment going to be. because i think there's a lot of fear out there. >> absolutely, cheryl. we have to start getting this right. this is not a novelty anymore. this is the future of finance. this is the future of money.
this is going to affect the role of the dollar, it's going to affect the standing of american banks and the global financial markets. we have to start taking this seriously -- >> and, chris, i want to just ask you this. we do have to take it seriously, but is the current regulatory environment enough, or do we have to create something else? >> yeah. well, charlie, early this week i put out, actually, fundamental principles for what we need to do, and the first step is this needs to move to congress. this is not for the biden administration, trump administration if, some other administration to willy-nilly change it every four years or every eight years. we need congress to step in and in a bipartisan -- it and must be bipartisan so it stands the test of time -- in a bipartisan manner, establish a reregime to regulate this new development. cheryl: there's so much there. so much there. you have to come back and talk more about this. chris, of course, thank you. charlie gasparino, thank you, as
always. >> my pleasure. cheryl: yeah. we'll be right back. ♪ ♪ what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq i'm ben affleck and i want to thank you for joining me and supporting paralyzed veterans of america. i joined the navy to serve my country as a navy seal. i wanted to protect the people i love and the country i love. being a seal gave me so many things, but i gave something too. while parachuting with my platoon, my parachute didn't open. i broke my neck. it left me paralyzed. i realized that
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cheryl: the closing bell, the dow and the s & p and the nasdaq are on pace to be down for the second week in a row. paramount global was the biggest loser. falling flat among the streaming spending concerns. they are showing a lot of cash on that streaming platform. we were down 325 on the dow. i don't think we'll go back there in three minutes but i have been proven wrong before. let's bring in mark travis. the volatility has continued for
two straight weeks. there is a lot of pressure on the market. is this the way the rest of the month will go? >> i certainly hope not. when the tide goes out. what we are seeing is just that, the tide is going out, interest rates are going to rise, and those nonexistent free cash flows and a lot of startups and streaming, whatever they may be, they are getting back to significantly lower prices. their share prices are getting chopped literally. the thing i would caution viewers which has been proven investors buy high and sell lee. make sure -- sell low. make sure you have a fixed balance of equity and try not to
do that. cheryl: a lot of people are looking for safety. if you are not into gold. you like sketchers. i think over our history we have beer, shoes and underwear. we have tequila. becker is one of the oldest companies in mexico. they have great brands. and they have an irish whiskey brand they bought from colin mcgregor. what you are seeing during lockdown is where people buy a premium product to take home and it helped their business. sketchers, i think the greenberg family father-son team has done
a great job. there are two share classes of sketchers. cheryl: mark travis, love the pick. we are down, markets will be closed on presidents' day. we'll see you then. >> welcome to "kudlow." i'm larry kudlow. a bit of juggling as we open up our show. president biden is scheduled to speak right now at 4 *. we are tracking it. if there are any headlines we'll get to it. fan john thune for his comments on all these matters. let me begin, first of all,