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tv   Cavuto Coast to Coast  FOX Business  April 25, 2024 12:00pm-1:00pm EDT

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asked which countries have the longest international border, russia, china, us, chile, argentina, and russia, and kazakhstan. what do you think? >> i set up a go at chile and argentina. david: i was hoping you -- i am going to stick with you up are supposed apple canada but i haven't -- oh! oh! and i didn't look, you saw me. my wife always is americans should know more about geography. on a globe you can tell more about sizes and shapes. the flat always distorts it but i like that i think. my wife would be happy. that's the answer. thank you very much. we can see they are down. time for cavuto to take you through the rest. edward: the dow plummeting 558
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points after d - gdp shocked with a lower slower rate than expected, the white house responded, we will talk to the council of economic advisers jared bernstein. coast-to-coast starts right now. welcome, i am edward lawrence in for neil cavuto from washington dc. top story the us economy growing at a slower rate than expected in the first quarter of the year. investors not liking what they are seeing with all 3 indices plummeting. let's get the read from luke lloyd and carol roth. was the matter earnings missing or gdp estimates today the really sparked the selloff? >> i'm going to say yes. it's a potpourri, a cornucopia of issues. when you have the magnificent seven that has been carrying
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the market when you get the numbers and the projections, meta, that's going to take something price to perfection and create a bit of an issue. that is third but from my perspective this hugeness gdp, almost a percentage point, at the same time we are running massive deficits, really not only underscores the issue that the fed is between a rock and a hard place but goes to show the federal spending isn't making up for the growth we are paying a ton of money for that. we are in a pretty sticky situation. edward: i will get into that in a moment but let's look at the treasury yields spiking at 2,024 yearly high two year treasury yield topping 5%, the highest since november 13th. the 10 year treasury yield is about 4. 7%, highest since november 1st
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and you expect to see this for a prolonged the period or is it just a bump? >> glad you brought that up. that is what i am watching with gdp numbers. it is telling conflicting information. the lower than expected gdp number is what you need to pay attention to. the fact that bond yields are up to date after a one% risk tells you what you need to know. slowing growth should be a flight to safety or to price in potentiality there might be sooner rate cuts than we were expecting previously but markets are priced in the federal reserve cares more about getting inflation down to the 2% target than economic growth. blessing the federal reserve wants to see is stagflation, with economic growth rates. the federal reserve had to choose whether to have stagflation environment which looks like the economy
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contractionary territory which is negative gdp numbers, they would rather choose the latter scenario. we are in a higher longer narrative, that will remain 5% toward the end of this year. edward: you said the s word, stagflation. you find in the first quarter personal consumption grew at 2. 5%, non-defense government spending grew 0. 3%. back to the fourth quarter, nondefense covenants spending grew at 4.8% so government spending, stop in the first quarter or the cut back and gdp plunged. is there a correlation? >> we are still running deficits that are deficit to gdp basis, two times the historic average. they are more difficult this time around, that is a big issue. what you should be seeing isn't
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a scenario like this that when you have some growth you should be seeing declining deficits and we are not. we are seeing the opposite. and unfortunately with of those continued deficits, we need to pay the rates on them, and bank of america projected a few weeks ago to see interest rates go to one. $6 trillion. if the fed were to raise rates, to go after the inflation piece of this, that will put us into this continued spiral so what the fed needs to do is not about rates, they need to tell the government to row in the correct direction. >> the fed chairman we are on an unsustainable path but i asked last year if you won't go farther than that. i asked about being the adult in the room, talking about spending, he said he would stay in his lane but great conversation, we will continue with this, the dow down 541
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points. appreciate it, thank you. president biden swiftly coming out of the statement downplaying the lower-than-expected gdp number, grady trumbull is at the white house with the administration side of this. >> reporter: the white house doesn't seem as worried as investors are about these weaker than expected gdp numbers. here's what he says, president biden says about it, today's report, he says, shows the american economy remains strong with continued steady and stable growth, the economy has grown more since i took office then at this point in a presidential term in the last 25 years including 3% growth over the last year while unemployment has stayed below 4% for more than two years. in that statement the president goes on to attack congressional republicans saying, quote, they are fighting to give the wealthy and corporations big tax cuts but conservatives say president biden is the one who
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just yesterday promised attacks hike for every day americans when he said this about letting the 2017 tax cuts expire. >> president biden: now trump is saying if he gets elected he wants to give -- that tax cut of his expires next week. okay? let me tell you something. it's going to take expired and dead forever a fireman. >> the tax foundation crunched the numbers and they say of the trump era tax cuts aren't extended or made permanent by the end of 2025, filers with no kids would have to pay from $250-$700 more in taxes. taxpayers who are married with kids would have to pay even more, between 1670 $500 more depending how many kids the couple hasn't how much money they make. the white house argue the trump era tax cuts disproportionately help to the wealthy and corporations. those are 2 groups president
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biden wants to tax more. donald trump is campaigning with a completely different tax philosophies that is to extend the trump tax cuts, make them permanent and cut taxes even more. edward: that list, those folks make under $400,000 a year. we have the council of economic advisers, jared bernstein coming up on all of this, the other big story, donald trump sitting in a courtroom right now but according voters when he can, meeting with construction workers in new york city, he and president biden still pushing for that endorsement from the teamsters union. alexis mcadams joins me with how big of a boost that would be if the teamsters were on board. >> reporter: donald trump spent his morning in a courtroom in new york talking with construction workers and union members, that happened behind
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me, this as he tries to turn new york as red as he can. >> i have a lot of support, the teamsters, did a lot of work with teamsters, built a lot of buildings with the teamsters and they liked me a lot, teamsters here and it is an amazing show of affection. >> reporter: the former president was in midtown manhattan early this morning greeting local union members, construction workers and a group of supporters, his campaign tells me the visit was meant to highlight how working men and women across the country have suffered under the bidenomics plane, the visit comes one day after president biden secured another union's backing in dc, this time from the head of the north america building trade union, the president has been working hard to court union workers telling them donald trump is one big bully who doesn't care about americans or the labor movement. >> it was absolutely fantastic,
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the union members seemed to love him. we are very erratic group, very pro-america, we want what's best for our country and we want our tax dollars to go to the citizens. >> that's what one of the members and leaders of the steelworkers union had to say about how donald trump connect with voters on the ground. a little different than what president biden thinks in terms of trump connecting with blue collar workers, people chanting four more years out here, there will be more campaign stops as he has to go back to the courtroom as we are now on day 7. edward: appreciate that. let's get reaction from bill mccarron and former democratic new york state senator david carluci. 9 defense spending went from 4.8% growth in the fourth quarter, 3% growth in the first quarter. maybe we don't have david.
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do you hear us now? we might not have david so let's go to bill mcgurn. let's start with you about the gdp number. government spending. making the point it was 4. 8% government spending, not defense in the third quarter, the first quarter was 0.3% government spending, this shows government spending is pushing, this could be a clue, pushing gdp number because we saw that. can that be sustained, that much government spending through this year and can taxpayers handle that? >> it can always be sustained in the short-term. the problem for president biden is husband and wife don't sit down and say what was the gdp figure for the second quarter and vote accordingly. they are feeling and the economy they are feeling the inflation at the supermarket
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when they buy groceries. inflation may be down but the price is up. it is interesting with president biden's speech at the trade unions and trump's meeting with union workers before he went into court, the line is not union and nonunion, seems to be union leaders who prefer biden with union workers who are more divided and a lot more trump voters. >> to the politics of the day, the former president visiting construction site talking to union workers before he went to court pitching more government spending in syracuse and having a campaign event in westchester county. how critical is the union vote in this election.
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>> every vote is critical. we've seen poll after poll that shows this is a neck and neck race. every vote is going to be recorded intensely. every vote is important and most union officials recognize that president biden has been most union friendly president ever, not just by standing on a picket line but making moves that help the middle class. the administration just released information about stopping no compete clauses, changing hourly employees that if they are hourly and go beyond their salary but over the $44,000 they could still get time and a half. president biden is not just talking the talk, he's walking the walk, in direct opposition to donald trump. whatever labor unions wanted to hear but didn't follow through with it.
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edward: the candidates trying to get union endorsements, talked about how president biden is set up or done some things he believes has helped the unions but one thing to get endorsement from the union, it's another thing to get the vote from the rank and file. the rank-and-file could still vote for donald trump because president biden is regulating that industry out of existence. >> a perfect example, you can say you are the pro union president, point to the legislation, the agenda is putting the fossil fuel cars out of business, no one wants to buy them. workers in michigan, a swing state know their dog is being put online. the more honest union leaders will realize they don't necessarily have a ability to command their members to vote the way they want. a lot of them are of are for donald trump.
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>> that's the tough d debate here. go ahead. one last thing. >> leaders in the unions are more engaged at the negotiating table and a lot of it is just rhetoric from donald trump. it's easy to blame president biden for everything from inflation to the weather but we know that is simply not true. president biden has been working to turn things around. we have the lowest inflation rate in the world. edward: france has a lower inflation rate than the united states. and prices spiked under president biden, when he started getting the policy, it was -- >> we lost more jobs under donald trump. >> results came back -- than when he began. >> a lot of those jobs ended up coming back. >> the bottom line -- >> we have to move on. appreciate it.
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>> taxes for the wealthiest. edward: this is a great debate, thank you but we have to move on. thank you. coming up, florida governor ron desantis wants to dispel or deport protesters who target jewish students. we have jeanette nunez here to react after this. (vo) what does it mean to be rich? maybe rich is less about reaching a magic number... and more about discovering magic. rich is being able to keep your loved ones close. and also send them away. rich is living life your way. and having someone who can help you get there. the key to being rich is knowing what counts.
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>> what happening in america's college campuses, anti-semitic mobs have taken over leading universities calling for the annihilation of israel, they attacked jewish students and faculty. this is reminiscent of what happened in german universities in 1930s widgets unconscionable. it has to be stopped. it has to be condemned and condemned unequivocally. that's not what happened. >> the israeli prime nester condemning anti-israel protestant dances medic act at american universities. ron desantis taking a harder line when it comes to hate speech on college campuses saying we will push for expelling students involved and possibly deport them if they are on student visas. lieutenant governor jeanette nunez, thanks for being here. i want to get into this.
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why isn't this too harsh of a punishment, students expelled or deported? >> it is not too harsh of a penalty. when you look at all these college campuses, the chaos, the disruption, violation of civil rights, there are whole host of reasons students could be expelled from the university including academic reasons but there's no more important reasons and violating the civil rights of other students especially given what we are seeing how this is being played out and starting to reverberate across the country. where it's not happening is in florida because we take a strong stance can we protect people's rights, we want to make sure if you have a right to protest you are going to be able to exert that right in florida but not at the expense of violating people's civil rights. lauren: how do you balance the right to protest was crossing the line into hate speech?
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>> it's very clear, what you see happening at columbia, yale, usc, all these universities that are turning a blind eye and these university presidents are showing no leadership. when you are jewish students that are fearful for their lives, faculty that are not being allowed on campus, it's not that kind of a line. it's very clear you have a right to protest peacefully, you have a right to express your views but not to desire the annihilation of the jewish people are not to align with hamas, a terrorist organization. for us in florida it's very clear, that's why we are proud that our university system is number one in the country 7 years running, number one for net migration, number one for new business formations and those things happen because of the insanity and leadership of ron desantis. >> the holocaust museum called on campuses to do more to
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protect college students. did you talk with any groups that have come up with a strategy for the university system to deal with this? >> we are in communication with our jewish brothers and sisters, those that are on campus, and the board of governors making sure they understand, if there are situations that are dangerous or potentially dangerous we want to continue to be a place where students feel safe and secure which is why our administration has focused on law and order quote been on enhancing curriculum and education making sure our students can-12 are learning about the holocaust and we work closely to provide jewish day schools with a tremendous amount of funding for security. i was just at a jewish day school not long ago and the director told me many of his students have gotten ivy league
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acceptances to which many of them are deciding to decline because of their concerns. we work closely with all the stakeholders, all the folks here to make sure we can provide the safety and security and educational experience they should be having, we want students to go to universities, to fulfill the careers of the future and to provide florida with workforce needs, we don't want them to become agitators and social justice warriors, we want them to be productive members of florida society. >> do you think these protest have an impact on money. do you think schools in florida who are taking steps to curb they hate speech, will they see the donations come in where is columbia is being those donations stop because of the rhetoric they've been hearing and not able to stop that rhetoric, you feel this could impact the money? >> i hope so. i hope that all these donors, all these corporations with
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endowed professorships look at florida and see universities not only providing a great educational experience, so many great universities, hope they decide to put it towards florida universities that are doing a great job. edward: appreciate your time. the fed and the white house digesting the shockingly low gdp number. i will get the read on what comes next from esther george and the chair of the council of economic advisers coming up next. ♪
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♪ >> do you think jerome powell is doing a good job as chairman of the fed? >> i have from a disrespect for j, the fed was late in raising rates, they are probably right in watching right now. you don't know what's going to happen. >> reporter: investors pricing the possibility of a rate hike at 20%. esther george is he who i've known for 6 years. it's good to see you. i am curious.
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if you ever had nightmares, to cut, not to cut, tie, not to hike, do you ever have those nightmares? >> i think if you've been up policymaker you understand the us economy does not always follow the forecast. edward: jamie dimon says the risk for stagflation is greater than it has been, where do you see the risks of stagflation your mind? >> right now the real focus has to be continuing the inflation fight. we have had growth over the past year, expectation that that growth would come down. when i look at the first quarter gdp numbers an initial estimate, does not show real signs of weakness at this
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point, the consumer is still spending so i think the focus as the fomc has had is right on target to look at inflation, to make sure they continue to bring that inflation down. edward: the fed signaled 3 rate cuts and the employment is beating expectations, core inflation is moving sideways and we started to see the pressure of it rising. will get even one cut this year? >> that is a very good question because the federal reserve understands that the economy has not unfolded as they expected, they don't have the confidence they are looking for, that inflation is moving in a timely way back to that target and so it puts the committee in a position of having to look at a number of scenarios and the markets have begun to look at this as well
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which is potential for fewer rate cuts, maybe no rate cuts and even now beginning some slight pricing. i think all those scenarios are important to keep on the table right now and so data giving us a clear picture where the economy is headed. edward: what do you think of a rate hike? >> if i were doing my own forecast for the committee i would not have a rate hike in their. i think it is still reasonable to think that the economy cools in the second half of the year, could be rate cuts on the table at that point, the committee does not want to see unemployment be damaged in a meaningful way. my own forecast would be that the economy should continue to cool this year but it is not
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clear yet that inflation is cooperating so i keep a careful eye on a small chance that you could see inflation continue to be sticky for the rest of this year. edward: good to see you again. markets plunging on the unexpected below gdp reading. jared bernstein, chair of the council of economic advisers, good to see you today. you dig into this report, you find the first quarter personal consumption grew at 2.5%, non-defense government spending grew at 0. 3% but if you look at the fourth quarter, non-defense government spending grew 4. 8%. 's government spending, was that driving the gdp? is there a correlation there? >> it is certainly in the mix, one of the components but the rate is much lower than
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consumer spending, consumer spending is 70% from nominal gdp. add investment and your north of 80%. if you look at the first-quarter results, consumer spinning reel and investment together grew at a 3% annualized rate and think of it as almost accord gdp measures something that takes out the more volatile inventories are net exports or government accounts which can balance out the dow and that is why we think the underlying growth is steady, solid and strong like you heard from esther george. edward: you are okay with this gdp report? >> i think this gdp report especially once you got under the hood, you take out some of those more volatile components, consumer spending and investment look great. year over year gdp is up 3%. that's a great number. since the president got here the average gdp growth rate has been 3%, gdp over his term has
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been the highest we've seen under -- 25 years in a row. add in the very strong job market and you understand the underlying economy is solid as ever. >> the president signed $7 trillion in spending, two market watchers are worried about stagflation, why isn't this the start of stagflation, lower growth and inflation inching out? >> not even close in my view. you have an unemployment rate that's been below 4% for over 2 years, real wages rising for 13 months in a row and that's helping to fuel strong consumer spending, a number you just shared with me, 2. 5%. when consumer spending and investment are rising 3% annualized rate in the first quarter, that is nothing like a stagflation scenario so i wouldn't see that anywhere near this report. let's not over index on one report. we try to be careful not to do
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that around or whether it is not side or downside. edward: we've seen a lot of news about energy, the president limiting lng exports when it comes to future permits to non-free-trade agreements, you see the alaska wildlife refuge taking 13 million acres off the table, that's putting pressure on gas prices, that have been inching up over the past month. we've seen overall cpi inflation go up maybe because of that. are you worried that inflation is not gone and it is here to stay? >> we have a lot more work to do on lowering costs on behalf of the american people and that is absolutely at the heart of our agenda whether it is negotiating lower risk of drug prices, tapping the price of insulin at 35 a month, saving millions of americans $800 a year on their insurance coverage, our work is doubling not done. edward: lowering those costs
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are only for a small portion of americans. a lot of americans are feeling the gas prices going up, the increase in all items, grocery items up 21% since president biden came into office. >> let's unwrap that. i want to get to the gas price. grocery inflation according to consumer price index has been 0 for the past two once, doesn't mean grocery prices are back where we would like to see them but grocery inflation has flattened a great deal and that certainly helps especially at a time when people's paychecks are beating prices, 13 months in a row in a year over year basis, workers wages of beat prices, their buying power is going up. let's talk about gas. one of the things we've seen in this economy is the highest levels of domestic gas production, we seem dramatically high levels of
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renewable production which we are firing on both of those signals, really aggressively. record production of traditional sources and renewable sources. obviously we would like to see those renewable sources continue to grown in the interest of fighting climate change, takeover from the others but at this moment we have american oil producers making record profits and record production while we are still delivering on the renewable side. we think that's a good record that we will defend all day. >> the last two months, food might be a threat but when president biden came into office, food is up 21%. i want to ask about the tax hikes, weird president biden say that he would let expire donald trump's tax cuts because they disproportionately helpful wealthy but when we look into these numbers the american tax foundation found taxes would go
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up on people making less than $400,000 year of those tax cuts expire? >> i will speak to that. i want to make sure we are straight on the grocery point. we are never going to get grocery inflation back to where we wanted because we don't have more months like we've had in the last couple months with 0 inflation on groceries. i wouldn't brush that after as i think you just did. that's how we get back to where we need to be. we are not there yet but that shows we are on the right track. this president has said many times he's not going to preside over tax increases on anyone under 400 k and he will consistently as he has done work with congress to make sure that reality sticks. >> how do you do that with the divided congress, say the tax cuts expire and we have a divided congress, how do you get them on board? we've seen what has happened? >> how do you pass historic legislation, standing on domestic semiconductor industry, some of the deepest
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investments in clean energy we've had, how do you pass legislation, bipartisan legislation like the infrastructure plan, this president has a track record of constantly pulling legislative rabbits out of hats and consistently being underestimated on that front so when it comes to getting -- by the way, think about the emergency supplemental, people thought that wasn't going anywhere but president biden stuck with it so let's give the president credit where it is due and watch what happens. edward: in the back rooms at the white house is their concern about this slowing of the growth, you heard esther george say it will slow through this year. has the economy slows toward the election, voters may get fed up with the slower growth. is there concern? what's the feeling in the white house about the slow growth that is expected to come if it unfolds that way? >> we haven't seen much in terms of slow growth yet, let's talk about job market because
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that is what matters to people, you don't need gdp, your paycheck matters most in their you see growth continuing to defy expectations to the upside, stronger job numbers than have been expected, unemployment rate below 4% for over two years generating real wage gains. on the gdp front, this president has a 25 year could when it comes to real gdp growth. i think probably one thing you may be referring to is a downshifting that has to happen as you grow at a breakneck pace out of the pandemic induced recession, we have to study the growth, that's one of the things you are seeing and reports like the one this morning. but as far as bucking the trend, the year-over-year measure of 3% gdp and the job market numbers you cited, the economy remains strong and solid on a steady stable path. edward: you think markets have overreacted to the economic data?
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>> i'm not going to comment on the waggle of the markets day today. i am going to call the data like i see it the last few minutes. edward: thank you very much. always appreciate it. campus protests leading to a small protest on wall street, top firms reconsidering students participating in these anti-israel rallies.
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wireless that works for you. for a limited time, ask how to save up to $830 off an eligible 5g phone when you switch to comcast business mobile. don't wait! call, click or visit an xfinity store today. edward: anti-israel protests continue to sweep the country. charlie gasparino reports grads could be risking losing prized jobs because their schools are allowing these protests to fester. charles: let's be clear. the ivy league and the elite colleges are always going to be recruiting from corporate america, wall street. what is going on now is there is a reevaluation of how much of the recruiting efforts should be focused on those
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schools because of these protests. to be clear it is not just the protests that are turning off corporate recruiters but the protests are somehow enlightening the corporate world as to what type of curriculum is at these places. are places like columbia replacing the core curriculum of liberal arts, math, you name it, stuff you need to to be a good employee with soft and politicized subjects which are companies recruiting from these like a generation of political activists and that is where we are going. are you have to do is read my story in the new york post, a big hedge fund, a graduate of columbia, pretty sure dan will always look at columbia but he told me he is broading out the search, not just second-tier or
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good state schools but places like rashida college because what's going on at ivy league schools, he's worried what type of employees he's going to get, someone who is activist as opposed to one who wants to trade stocks. these protests and this is what i can't understand from administrators, why they are allowing this to go on, it's having a reputational impact on the degree they are charging, you go to columbia you are paying $90,000 a year. edward: i remember the days following the hamas attack on october 7th israel, student groups on harvard campus blamed israel for hamas attacking. bill ackman and it doesn't ceos that they would not hire anyone associated with those harvard groups. six months later and this is
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expanded to schools possibly. this is in stopping. charles: gary goldstein with the whitney group is the ceo, gary told me point blank, not only our parents wondering should they be sending kids to these schools because they don't understand what type of education they are getting, what type of education would produce someone that would share on hamas, that's what they are talking about, but leaning over to the corporate recruiting effort, what type of candidate are we getting? if you are someone who will pay $90,000 for columbia and get the same education as you get at michigan or michigan state, one third of the price, why go there? what gary goldstein said, he knows and everybody knows these colleges are tweaking their curriculum or molding their
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curriculum based on the money they are getting from the middle east. they are instilling a left-wing interpretation of events in the middle east based on the money they are getting for middle east sources. edward: the commercial is coming whether i like it or not, more after this. added a 25th hour to the day, businesses are wondering "what should we do with it?" bacon and eggs 25/7. you're darn right. solar stocks are up 20% with the additional hour in the day. [ clocks ticking ] i'm ruined. with the extra hour i'm thinking companywide power nap. let's put it to a vote. [ all snoring ] this is going to wreak havoc on overtime approvals. anything can change the world of work. from hr to payroll, adp designs forward-thinking solutions to take on the next anything. trading at schwab is now powered by ameritrade, giving traders even more ways to sharpen their skills with tailored education. get an expanding library filled with new online videos, webcasts, articles, courses, and more -
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edward: record-breaking deal with nike, caitlin clark signed the richest sponsorship contract in women's basketball history, here to discuss is achilles pr founder doug eldridge. the contract is $28 million. stefan curry, 215 million with underarm. is that fair? >> two things can be simultaneously true. on one side, 8 and 28 is a historic date.
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on the other hand, based on her performance, personality and potential. we see an and presented moment in women's sports. with interest and investment my caitlin clark will have her game of thrones moment where she said i came to shatter the wheel. it is indicative of female empowerment billion the cost text of caitlin that is the case with women's sports like tiger woods did for golf, caitlin clark will shatter the wheel of women's sports. edward: her starting salary is $75 million a year, starting salary for lebron james was 4.7 million a year. we have a media manager trying to get them tickets to the first game to see her come and play, $300. >> 19 million people watched, the most in history.
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similarly, 2. 5 million people watched to the wnba draft shackling the record. caitlin clark riding the high tide and she will ride that all the way to the back. edward: quarterbacks will go big. bill bella check has a report saying 50% do well, in 15 seconds, is it worth that? >> it is if you have the infrastructure in place. to have a great infrastructure lesson, make a huge investment, if they are upfront, to protect them. that's the key just as the offense of scheme, huge investment changes the future of a franchise. edward: the offensive line matters. find out when the commander is getting a quarterback, i can't wait for that. jackie deangelis on "the big money show," the dow, $4.50 coming back a little bit. jackie: good to see you. i am a jackie deangelis.

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