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tv   Varney Company  FOX Business  August 16, 2023 9:00am-10:00am EDT

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cheryl: down the trail down 57. maria: thanks to adam johnson and joe puncha, thanks for being here. "varney and company" picks it up now. take away. stuart: four indictments, a series of trials and hearing
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still to come but donald trump is still in front of all other candidates. in the latest fox power rankings trump holds a commanding lead. governor ron desantis and senator tim scott have emerged as what fox calls contenders. the rest in the conversation or outside it. trump will re-lease what he calls a detailed but irrefutable report on the presidential election fraud which took place in georgia, his words. he will present it next monday at his home in bedminster, new jersey. president biden continues his bidenomics tour claiming success for the inflation reduction act. in response he said inflation is coming down and look at this. we have a bad case of energy price inflation with us now. gas averages 387, up 30 one cents in a month. $0.31 in a month. in ten western states plus illinois the price is over $4 a gallon.
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diesel, $4.33, up $0.48 in one month. to the markets, not price movement, the dow is off 50, nasdaq down 33. look at target, this is the standout stock, standout retailer this morning, stock is up $6, the target admits it was hurt by the pride displays but did not decline because of it, the 10 year treasury is just below 4%. the 2-year treasury below 5%. as bitcoin moved from where it hovered for days? it is up 29,100. on the show today, china once the shining star economic growth, the economy is
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shrinking, population declining but do not celebrate, dictators are very dangerous. lsd and magic mushrooms as therapeutics, leading pharmacologist tells us psychedelics could revolutionize mental health treatment and trends among youngsters, texting has taken over from phone calling and taylor swift is bigger than the beatles. august 16, 2023, "varney and company" is about to begin. ♪ stuart: well done, producers. the song is leading man. trump is the leading man among republican candidates, that's the tie in.
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>> the summer concert series multiple times, loved by the audience. stuart: breaking this morning, the first fox power rankings for the republican candidates, which is what? we were one week from the debates but i artie told the audience trump is in front. lauren: ron desantis and tim scott holding on as contenders, five others in the conversation, the rest on the outside looking in. trump leads with fundraising, $54 million of this year, more than ron desantis, ozempic dean and nikki haley put together, using some of it for his legal bills, that leaves him less money and less time to campaign. is there an opening here? or is trump impenetrable? the majority of likely republican voters think yes, trump can be -- beach biden.
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58% say he can compared to 28% who believe ron desantis is the best candidate for the general. desantis's biggest challenge or anyone else looking to gain ground, keep the trump base, don't alienate them but you have to get the conservatives and the moderate to the party to like you also. stuart: easy, no problem. we need karl rove. karl rove is with us of this morning. clear front runner, donald trump in our power rankings but virtually tied with biden in a head to head matchup. does that surprise you? >> not really, former president, popular among republicans, president biden is a weak incumbent. what is interesting to these are national numbers. what will matter is what happens in iowa and new hampshire. in 2008 hillary clinton was way ahead of barack obama at this point. in 2016 jeb bush was leading the pools.
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one month before mitt romney, was nominated in 2,012, a month before the iowa caucuses gingrich was leading. what matters is these in state polls and trump has a big lead in iowa but not as big as his lead nationwide and similarly in new hampshire his numbers are below his national numbers. we've got a long way to go. the front runner, likely nominee is donald trump but a lot of nominees. stuart: have we yet seen the impact of the trial still to come? the indictments? have we seen the impact on republican candidates? >> we see one affect. when he gets indicted he moves up in the polls. if you attack my party's guy i am going to rally to his defense even if i have doubts about it. similarly if biden is attacked by republicans democrats rally to him even though they are not that excited about him. what will matter is what
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happens when he shows up in a court room. recent polls show a plurality or small majority of republicans say if convicted of something they will not support him. when we get into a courtroom and start seeing evidence like classified documents, why did you take them? did you have a right to take them? we will have problems because that's not going to be helpful to him in each case. new york, the manhattan case is one thing that held him because it was overreach but these other cases get more serious and a problem for him is going to be the effect on the general election. these exit polls from 2020, in 2020 he loses by 7 million votes nationwide while taking 97% republicans, 38% of independents. what of those nevers go down a couple points? makes victory even more remote. that's the risk he runs. when he starts into these
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trials, turns off republicans and independents who might otherwise support him. stuart: only time will tell. nice to get that back for some clarity. see you again soon. today marks the 1-year anniversary of the inflation reduction act. louisiana senator john kennedy is not celebrating. roll tape. >> inflation is a cancer, to single out one thing that is causing president biden to be as popular as robo calls is inflation. all be get out of washington is more indictments of donald trump and all the sleaze surrounding hunter biden, and david wise. no wonder the american people have started to hate government. stuart: the senator has a way with words. lauren: no one can turn of
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phrase. we when the president will deliver results on bidenomics today. is there something to be celebrated about the inflation reduction act? >> absolutely not. what is so telling is that president biden said we probably shouldn't have called it the inflation reduction act because it's not reducing inflation. welcome to the party. john kennedy said one other thing, the most important thing he said, high prices are here to stay. you report on the show inflation went down, this went down. it is not fitting the consumer in the grocery store. if you went to purchase a bag of groceries for one hundred dollars and it and it is now $200 in 2023, not like next year it will go back to one hundred dollars. it is at $200, here to stay. president biden wants to change the conversation on that. has trump indictments. stuart: stay there please. to the futures, it is wednesday
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morning. no idea how we will close but the dow was off 50 in premarket action. mike lee with us, take a close look at nvidia. and's on and meta-blooge can we add nvidia and make the big 6? >> so much valuations is around, artificial intelligence, you can't do it, it is at the point with articles talking about how these are hot commodities and difficult to obtain and the demand is so high, i would include with all those other names. stuart: is it -- don't know what the price-earnings ratio is but it is expensive at $442 a share. would you purchase a stock with that kind of extremely high
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valuation. >> that's the million-dollar question. so much of the overall market hinges on that. 3 months ago they gave the largest revenue guidance raise in history of the world, that's not hyperbole or exaggeration. analysts were expecting $7 billion in revenue. are they going to beat that, next quarter are they going to give a guidance raise. and the stock sells off materially, that is where i want to be a buyer. the weakness in the stock added over time, they are leader in the market, the ai trend cannot continue without nvidia but we are trading on a generous way of looking at it, 20 times sales.
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you are looking at 40 to 50 times sales, every dollar that comes through the door, not profits, revenue, you're paying 20 to 30 times is that. and that is on the leading edge, one of the biggest trends we've seen. stuart: you got a long-term to look forward to. mike lee, we will see you again soon. president biden has set a date to visit maui. lauren: august 21st. he's going on monday. one hundred 6 people are confirmed dead. hundreds of. president biden said he didn't want to impede the recovery efforts, that is why he waited from the first wildfire two weeks ago to the date he's going, the 20 first. he should go. that is how he bills himself, the great empathize her. stuart: a terrible tragedy. destruction of an island
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paradise. lauren: he promised to go to east palestine ohio and never did. air force one flew over that city when it went to milwaukee today to tout bidenomics. stuart: going to hawaii monday. president biden went to battleground wisconsin to tout the economy. watch this. roll it. >> president biden: wages are growing faster than inflation. that's bidenomics. growing economy, strengthening the middle class, making things in america again. blue one we are feeling inflation. gas and diesel keep going up and there is this which our next guest is former manhattan district attorney who doesn't think trump's trial will happen before the 2024 election. he talks all things indictment, next. ♪
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could you turn down the volume? here, you can try. get way more into what your into when you stream on the xfinity 10g network. (aidyl) hi, i'm aidyl, and i lost 90 pounds on golo. i struggled with weight loss and weight gain my entire life. with all the yo-yo dieting i did in the past, i would lose 20, 30, 50 pounds just to gain them over and over again. thanks to golo, i've been able to steadily go down
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the sizes in my closet and keep the weight off. for the first time in forever, i feel in control. (announcer) change your life at golo.com. that's golo.com. stuart: doesn't that look good? 70 °, wispy clouds in the sky. would love to be there right now. now this. donald trump will present a report next week that he says proves election fraud in georgia. georgia's governor brian kemp responded to that. >> the republican rebuking the current gop front-runner as stated early on the show, after donald trump repeated his claims of election fraud following his indictment, brian kemp is the name of the
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governor writing, quote, the 2,020 election in georgia was not stolen. for three years anyone with evidence of fraud has failed to come forward under oath and prove anything in a court of law. our elections in georgia are secure, accessible, and fair, and will continue to be as long as i'm governor, the future of the country is at stake in 2,024, that must be our focus. remind everybody trump says he will present a report on his election fraud claims coming up on monday, he says will lead to his complete exoneration. stuart: fulton county district attorney fanny willis wants to hold trump's election interference trial in 6 months. she also wants to trial 19 of the defendants together. former prosecutor joins me now. that trial, on 19 together within the next 6 months, that the circus. >> inconceivable. that is logistically talk about it is not going to happen.
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the constitution gives every defendant the right to their own attorney in the right to vigorous defense, try to imagine what that would mean in a courtroom. every potential juror questioned by the prosecutor, 19 different defense attorneys 20 questions, every witness subject to 19 cross examinations, every question the prosecutor asks subject to an objection from any of 19, we have this in an nba arena. inconceivable, not going to happen. 19 defendants is a joke. stuart: there's another four trial scheduled between next year. do you think any of them will take place? >> i am skeptical as to whether any of these will take place before the election. the manhattan case, i am not sure is going to survive a motion to dismiss. i'm not convinced the manhattan indictment is sufficient. as to the other cases, there is complicated discovery issues,
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issues that are going to be subject interlocutor or a or pretrial appeal, the georgia case 19 different defendants with 19 sets of motions with 19 potentially appealable issues, i will disappoint both sides on this. trump wants a blanket delay because he's a candidate. nothing in the law allows him to do that. running for president is his job. as you and i say sorry, it interferes with our judge, that shouldn't fly. he shouldn't be treated worse than any other defendant. in this country defense lawyers walk into court rooms every day and ask for longer delays for a variety of reasons and routinely granted, we ask for delays because of a vacation coming up and bought plane tickets and ask for a delay because they have dental work scheduled or medical procedure or their kids graduation and judges say you get a long day. substantive reasons for delay
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like a lot of discovery. it should be neither controversial or political for judges to grant long delays as they do for all defendants. stuart: that is fascinating. there were no trials before the election that would alter the political dynamic of the election. that's my opinion. >> the real trial and the american people, the real jurors. stuart: that is what might happen. good stuff. come back soon. 2024 candidate governor ron desantis coming to trump's defense after his latest indictment. what is desantis saying? lauren: it is a distraction from georgia's real criminals, crime on the street and misusing resources to make trump a criminal. >> atlanta has huge problems with crime. there have been criminals have been let out that shouldn't have been let out. they are doing an inordinate amount of resources to try to shoehorn this contest over the
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2020 election into a ricoh statute which was designed to go after organized crime, not necessarily to go after political activity. i think it is an example of this criminalization of politics. lauren: one of the best discussions of the latest trump indictment and why try to move everything so fast? because arguably they are trying to take out desantis's top contender. >> if us elliott, has he ever run a trial from 6 points from .80 point b, he is out now but he would say no, 6 months is not a reasonable timeframe. desantis's point of view, look at fulton county, crime since fanny willis has taken over, number one job of a da is to protect the people, be the voice of the people, people getting killed, in fulton county she's worried about trump. lauren: and has been for 2 and a half years. blue one back to money briefly,
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the dow futures before the market opens down 70, nasdaq at 35. "the opening bell" is next and we will take you to wall street for it. ♪ ♪ what if you could make analyzing a big bank's data... no big deal? go on... well, what if you partner with ibm and red hat, use a hybrid cloud solution to connect data across clouds, then analyze all that data with watson. okay, but this needs to meet our... security standards? yup. compliance standards? mm-hmm. so they get the insights they need... yup. in real time... check. ...to make quick decisions? check. aaaand check. that's the solution ibm and a global bank created. what will you create? ibm. let's create. you can't buy great conversations
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stuart: not much price change as we go to "the opening bell". shah gilani is with us, what signals have you seen the market may be turning? you are a little less bullish. >> printable either rising interest rates, seeing the 10 year approaching the cycle highs. that is unexpected. the expectation has been for the fed, and interest rates might come down. to the contrary they are moving higher and we don't see a reason for them to go still higher. that is probably the one thing standing in the way of investment enthusiasm which is fine because we are in a bull market as far as i'm concerned. as i have been saying it is time to purchase the dips. stuart: following up on the conversation ten minutes ago
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about nvidia we were saying it belongs in the top five technology companies, should be number 6 on the top 6 list. do you think it is a good purchase for someone in their 20s and 30s to get a little nvidia into their portfolio because you can take risk now because you have years to organize that risk? >> great question. the answer is yes yes yes. earnings coming out on the 23rd will hit it out of the park and expectations are good gain over the previous year in terms of earnings and if the stock comes in a little bit this is a purchase the dip opportunity if nvidia mixes for some reason, and it gets along with the market, another buying opportunity but i recommend to a lot of my friends, if you don't know it, right before the earnings it's a long-term hold. stuart: earnings come out next week, wednesday of next week. >> wednesday yes.
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stuart: you never know what might happen when the earnings come up. it is a blow out. this reminds me of 12 years ago when you said to purchase big tech, get on the ground floor and we all did well. thank you very much indeed. see you again soon i trust. market will open in 30 seconds. we just saw nvidia closing, $444 a share. "the opening bell" comes up shortly, 20 seconds from now. we don't expect much price movement in the early going and not seeing any big items of news that would move the market today. the fed minutes this afternoon as fed watchers are pouring over that. maybe something comes after that. a kind of neutral newsday and the market, press that button, it is over. the dow is down 50 points in
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the early going. not much change in price. and and. 08%. also done a fraction, 1/3 of 1%. show me big tech, some of them down sharply. microsoft a few cents, now has gone higher. apple at 177, meta below 300 at 299. there is one stock this morning, a real standout, a retailer named target. what is with that stock? lauren: a lot of information what happened, the back lash. in june, consumers were mad. ceo brian cornell says shoppers had a negative reaction to that. target took action and said things normalized and things
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are going great. going forward target is more sensitive to heritage month like pride, the revenue in the quarter did fall almost 5% and they expect sales to decline this quarter and they cut therefore your profit goal because the consumer is cautious. you say why is the stock up so much? stuart: i know why they are up. the earnings report was a blow out a blowout and profits went up. lauren: inventory management, fewer markdowns, better margins and the comment on the pride back lash, they are learning from their mistakes. theft involving violence up 120%. shrink and theft and issues like that and put a number on it. stuart: tjx, another retailer. lauren: the hunt for the deal, same-store sales up 6%, revenue up 8%.
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margins were stronger because off-price stores selling at higher prices but it is still considered a deal and the ceo optimistic about the fall and the holiday. >> every time i have been in t.j. maxx i've been the only one in there. one hundred% of their shoppers are female. lauren: a treasure hunt for women who need something to do. >> a chair for the one guy dragged their. i sit there like let me know when you are done, woman. i don't call my wife woman. stuart: apple, not sure, it is down a bit, 30 one%. a slew of headlines. lauren: the first is they start paying out claims to customers who accuse them of slowing down performance, they agreed to pay $500 million to settle a few years ago but now they can send out those checks.
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stuart: the lawyers get all the money. lauren: the average is $65 a person. stuart: don't know what the lawyers get but it is more than $65. lauren: the main supplier for the iphone, the 15, the new phone is going to be in india. that according to bloomberg. this is the entire supply-chain being moved from china to india. stuart: carva's first report since the ipo. lauren: suzuki talks. stuart: stock is up 5%. lauren: it ipo to at $22 and it is profitable. that is a big deal. it is up 4.5%, same-store sales up 18%. stuart: a very good report. lauren: prices went up. >> if you got somebody to pay would you go to mediterranean food with us? >> no.
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>> i tried. lauren: if we got someone to pay. they hiked their prices, 8% on average, they say no more anytime soon. stuart: what was that? lauren: it is like chipotle. have you been to chipotle? lauren: not recently. you go through the line and pick your protein, how you are going to decorate the same with mediterranean. stuart: producers are urging us to move along quickly. disney accused of withholding profits from avatar's equal. lauren: another headache for bob iger. tsg is a major hollywood financer. they spent $3 billion over the decade cofounding one hundred 40 movies for disney including avatar. they are suing disney for withholding profits and cutting deals that boosted their streaming service and share price. tsg says to deprive them of investing more in movies, they
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say they are owed $40 million. stuart: another headache for bob iger. h and r block, the prompter says they are using ai. stock is up. lauren: 7.5%. don't know how they are using ai. the ceo said details to come but they will reduce cost with it and increase productivity. that is the whole point of artificial intelligence but in the end stronger earnings in their report card and hike their dividend by 10%. that is another. stuart: next time around they've got to show people how much they benefited from ai. 3 months from now, how did you do with of this? stock went up when you announced it. how did you do? we will see. check the big board in business for all of six minutes, we are 41 points, a little shy of 37,000 on the dow. dow winners, travelers, walmart is up there, caterpillar,
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boeing. as for the s&p 500 winners, good opportunity for stocks you may or may not own. progressive, target on the list, 4. 5%. tjx, got it, news corporation, we are finally with that. going up again, performing well recently. dr pepper, ge, healthcare, technology, etc. some winners, the dow is up 75 points. the tenure treasury yield is 422. the price of gold is $1934 an ounce. bitcoin right at $20,000, oil coming up a little bit today, 80 one dollars a barrel. natural gas doesn't change much, 260 in the average price of a gallon of regular has gone up another sent overnight to $3.87, look at diesel, 433 on average and that is $0.48 in the month. coming up this week marks two
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years since the taliban and return to power in afghanistan. nikki haley blasted biden for the disastrous withdrawal. she says the world is less safe. we get reaction from retired green beret who fought in afghanistan. could michelle obama take president biden's place in 2020 will, liz peek think she could be the leading lady thanks to hunter's scandals. and then there is this. in the can't afford their rent, turns out they are paying a high percentage of their income. mitch rishel is here to tell me why after this.
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stuart: after 12 minutes of
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business, the dow is up one hundred 60 points. the s&p up 8, nasdaq down 26. a split market. i will find out which dow stocks pushed the dow up 160 points. new data reveals is taking longer for buyers to afford their first home. two years ago the typical first-time homebuyer was 33. i will now? lauren: oldest every 36 years old. my father owned the home i grew up in at the age of 40. now the average age to first purchase a home is 36. what does that mean for young people? there is no american dream for them. are they going to be renters in a big city forever? while living with mom and dad? largest share of homebuyers, they have property they can sell and if they are looking to downsize they are not is impacted. we are competing with you.
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stuart: we need mitch rishel, sitting next to lauren this morning. jen z spending higher on rent than generations previously. i know why. are you prepared to accept my answer? >> i don't know about the choice but go ahead. stuart: we are building fewer multi family units, apartment buildings. the latest on housing starts shows 39% drop of multi family apartment units. that's why the rent is so expensive. >> that's one of the reasons. i will give you credit for that. a simple supply and demand. we are short on supply of apartments and demand has not ebbed at all. when supplies down demand is high and prices go up but jen z, i'm the parent of twins who started working a year ago.
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was deprived of most of their college experience. my kids lost so much of the college experience. they graduated. they have income. what are they doing? trying to purchase that lease for that apartment so it can feel like they 've got their autonomy and their life back because they were deprived of a lot of it. that's why they are paying so much of their income. they are willing to pay so much in rent. stuart: is inflationary, isn't it? when you get inflation numbers, housing, shelter there is a big component to it. >> 40% of cpi. the lag affect takes a while for shelters to work through the cpi numbers. when other prices are coming down in the cpi shelter costs are high. stuart: you can't just wave a magic wand and build more apartment buildings. the permitting process won't let you. >> cities don't want more apartments for all the wrong reasons so they make it
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impossible. people moving further away from cities, but here is the smart thing to do, i give my kids credit for being smart, they are living at home. they look at what they are making out what rent would be and in new york city what they would get for that rent and would rather say let's save. you save money, live at home two years after graduating college, the amount of money you can save and the future value of that money will make all your living costs for the rest of your life easier. stuart: look at the other end of the scale, commercial real estate. it has got to be way down in value. she was buying at what price? >> the wall street journal yesterday, sort of a back to the future moment. when i got into the real estate world, coming out of this, you know who out the commercial real estate, the loans that were in trouble, the blackstone's of this world,
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carlisles, a lot of private equity firms that exist today, the hedge fund space, they got their start buying troubled assets, all those firms, they know the playbook really well, the problem with commercial real estate is buildings are half-empty in terms of people but from a lease perspective they may be full. tenants are still playing rent but tenants are not going in but leases roll over, those tenants are not going to renew for half of that space. it's a shoe that is going to drop. in many markets it hasn't dropped yet. stuart: what about converting office buildings into residential units? i hear a lot about this but don't see much. >> it is a great idea, really costly and the conversion cost, holding up the building, foreign office building, the
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rods that hold up the building are designed for office, not apartments. when you get done with retrofit cost, the elevators, all those things are different from an office building. when you get through the retrofit cost, the rent is so high that it doesn't work out. stuart: if you could just get the people back into their offices it would go away but it is not going to happen. >> you can work in your pajamas, why would you go to the office? stuart: some people like to dress up. you are all right, thanks very much indeed. scottsdale, arizona just banned grass. i thought of as marijuana. long grass, they just banned it from some front yards lose this is a water problem. >> a lot of grass is allowed in our country, not this grass anymore. didn't even think about it.
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scottsdale, arizona prohibiting natural grass, the stuff on the lawn in the front yards of new single-family homes. it was reported yesterday, 70% of water use is reported the outdoors, the majority of that use is for grass and the ordinance supported by a deep risks%, they are not getting pushback from this. of the when i'm not surprised. it is a serious water crisis, got to take care of it. thanks very much indeed. times have changed. china has gone from workshop of the world to a dangerous threat to the world economy. that's "my take" at the top of the hour. more hospitals closing maternity wards leaving expectant mothers to travel many miles for care especially in rural areas. live in a hospital about to close its doors. ♪
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and take advantage of our no interest stuart: hospitals across the country closing their maternity wards. lydia at the samaritan hospital which is about to close its doors. why?
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>> reporter: staffing shortages and declining number of births. the operator shared a statement with fox business that said for the birth center has not been immune to the staffing crisis, declining utilization and birth rates compounded this, 217 hospitals close labor and delivery centers across the country since 2011 when the consulting firm, declining birth rates have been spreading across the country for decades. birth rates dropping nearly 24% in the last 20 years. more young people choosing not to have families. 44% of non-parents 18 to 49 say they are not likely or not at all likely to have children.
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without a birth center here in new york, this area will become a maternity care desert according to nonprofit march of dimes, an area without a hospital, birth center or medical professionals experienced in delivering babies, the nonprofit says more than one in 3 us counties, the areas shaded red, raising concerns about maternal and baby care, listen. >> really concerned about the birth outcomes. that's what i'm concerned about. infant mortality rate is high. >> reporter: the hospital here says expectant mothers can travel to the next closest birth center which is a 25 minute drive away if you were to drive that right now but local officials, elected officials say it's too far a drive for a woman that is in
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labor. that means care in that moment, pushing back to save his birth center. stuart: good report, thank you very much indeed. check the market. the dow is up one hundred 38, nasdaq down 30 points. the 10 year treasury yield, where is that? it's below 4 and one 12:45% of the price of gold well below $2,000 an ounce, back to 1935, bitcoin struggling to do anything, $29,000 per coin. oil $81 a barrel roughly speaking. natural gas not much change. >> going after me, hot air, natural gas? stuart: appreciate it. liz peek on some people betting that michelle obama will take biden's place in 2,024. we are a week from the first gop debate on fox, martha mccallum will be here with a preview. chris christie pulled ahead of
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desantis in a new new hampshire primary poll. and kennedy on phone phobia, jen the tops for texting over talking on the phone. i'm a baby boomer and i do exactly that. "varney and company" returns after this. you got this. let's go. gobble gobble. i've seen bigger legs on a turkey! rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. i go through a lot of pants. before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com.
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