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tv   The Claman Countdown  FOX Business  June 27, 2022 3:00pm-4:00pm EDT

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i hope i can get gary gensler on this show one day, to talk about it, but until then, i urge you not to give up the fight. retail investors did nothing wrong other than beat wall street at their own game and they came after you to make you pay a price. never forget that. but stay in this market. in the meantime we narrow trading range but this last hour , probably be explosive, right, liz? liz: i think that the meme stock mania will go down in history as sort of that first example of people cobbling together and actually beating some of the big names on wall street. charles: love it me too. liz: amazing. charles: first but not last. liz: yes, revlon, we'll talk about that. we'll explain in a minute but investors are trying to decipher at this hour if good news actually means good news for the markets and the economy. today's see saw action on wall street right now we're down, we've been up, we've been swinging all over the place for much of the session. shows that investors are not
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ready yet to embrace the positive economic news that arrives this morning, because it may mean that the federal reserve will plow ahead with more bigger rate hikes. now, while markets remain in decisive it appears federal reserve chair jay powell is getting behind the idea of a central bank digital dollar or stablecoin. that could be bad news for usd. the stablecoin been around since 2018. blockchain company circle co- created it. circle ceo is here in a fox business exclusive to tell us if a fight with the fed is on the horizon. and speaking of digital dollars, one digital startup thinks it has the ticket to disrupt the entire $100 billion lottery industry. fresh off a new round of funding , the jackpot ceo is here in a fox business exclusive going to explain how he is trying to make it easier for you to couch surf and buy your lottery tickets just by sitting on your phone. and elvis has not left the
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building. the king's screen success has one meme stock jumping. we'll have that plus the newest meme stock, yes, as i said revlon, that's suddenly sitting pretty with retail investors. let's start with this fox market alert. stocks are zig zagging on this monday and as we kickoff the final hour of trade the nasdaq with tech names is a lap or two behind the dow and the s&p and we have the nasdaq down two-thirds of a percent, dow jones industrial is down 77 points followed by the s&p down one-third of a percent. investors are taking sides at this hour. the either put your belief in last friday, or in the week before. so the bulls are going with last friday when the s&p punched out its best performance in two years. the bears, well right now the broader index is still at the moment slightly down, but still in bear market territory, which it entered june 13 on news that inflation remains stubborn ly stuck at four-decade highs. to claw out of the bear market the s&p needs to gain close to
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500 points. but let's look right now at market internals s&p power lifters, energy names top 10 movers include oil & gas giants, valera, devon energy, he ss, marathon in there too if you go in the top 10, apache is there a refining services company. now after dropping 11% over the past two weeks, crude resuming its climb in great part on g-7 leaders push to impose price caps on russian oil. now, the group of seven trying to step on russia's financial air hose when and by how much still be working out. now we are going to get a report on that in about six minutes on that so stay tuned but even just the chatter is lifting the whole sector. you've got crude in the after market now above $109 a barrel and of course the xle, it's up 2.25%, the big basket of many big energy names. flip it over to nike. nike has been lagging at this hour, nike down two and one -third percent, tesla down
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just under 1%. now nike is coming out with earnings after the bell folks the athletic wear giant expected to report its first revenue decline in seven quarters as lockdowns and consumer backlash over nike comments on forced labor in china have hit sales, and then tesla, tesla is slightly lagging after mizuho cut the price target down from 1,300 to 1,150 saying that delivery numbers will be crimped due to covid-induced factory shutdowns in shanghai. so on this monday, we maybe three and a half days away from july and the start of the third quarter but we are one month to the day away from what could be the biggest market catalyst of the summer. the federal reserve's july rate setting meeting between now and july 27, what moves should investors make? let's get you a july market set ter to our floor show traders scott redler and kenny polcari. right now the markets, guys, pricing in a 92.7% probability of a 75 basis point fed rate
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hike in july, but guys, we have 30 days between now and then. anything could happen. right now, with the end of the quarter, 72 hours away, set the july scene for investors, redler, you're up first. >> everyone is talking about the 7% that we saw last week that was great. we've had them a few times in the course of this bear market rally or bounce, whatever you want to call it. the question now is, will we get historically what happens in the first week of july, end of june? do we get a little bit more upside, meaning at the start of the third quarter, which happens at the end of this week, new flows go to mutual funds, institutions, so they typically put it to work in the beginning of a new quarter so at this point, if it's going to move we're trying to figure out can we get another 2% to 3% more into the end of this week and the start of july because of those new funds. if that's the case, we could probably see s&p up 4,030 which is a 50 day but right there,
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it'll be very very capital because i'd say there's still a 75% chance that coming into july , august, we could at least reassess the 3,638 lows if not break them, so i think if we're going to continue this rally it's over the course of the next five to seven trading days and then that's when you have to take some caution, or caution going into earnings season. liz: yeah, but it's not like, kenny, we don't have green on the screen here. you see the dow leaders and what i think is important here is we got two pieces of really good data this morning, although again, the market isn't reading it as good because it may mean that we still have a very strong economy and of course that means four decade-high inflation, and what i'm talking about, pending home sales up seven-tenths of a percent that was a beat, may durable goods up seven-tenths of a percent that was a beat, the headline number, so tell me exactly what july should bring ahead of the fed meeting on, well it's the 26th and 27th, but we get the report of how much they like to hike on the 27th.
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>> right, right, but look, don't forget, this thursday, we're going to get the feds favorite inflation reading which is the dce report also expected to be a little bit higher than it was last month. then we're still going to get cpi dpi before the next fed meeting so a lot could happen and the middle of that is earnings is starting around the second we'll of july and we'll start to hear what the c- suite is saying about what the future six months, the next six months are going to look like on margins, on pressure, on concerns, and so there can be a lot of volatility to scott's point, i do think that going into the end of this month which is thursday we'll see lots of volatility and a push higher. jpmorgan is calling for a 7% increase in the s&p this week alone, as asset managers and sovereign funds reweight their portfolios going into quarter end and month end. i think it's a little bit exaggerated but i'm anxious to see if he's right, but one way or the other i think once july comes the market sets it up like
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scott just said for more kind of concern and a testing of 3,600 again on the s&p. i do think 3,600 holds. i'd like to think that 3,600 holds, but i do think that's what we're in for , come july, and i think, i just think investors need long term investors just need to be aware of that, a short-term trader day trader-type love the fact that there's going to be all this volatility. liz: scott you were trying to get in there. >> um, i saw that call too by jpmorgan and i'm like wait are you seeing rally last week or you're calling for another 7% rally. >> another 7% i think? >> yeah, but no, you were right , another 7%, so to me, i do think we could rally more and we are setup for a push like that. i think the only way we do get another 7% rally is if we hear something out of ukraine and russia where they come to get some talks going, because some things have russia stole enough, i'm not even calling what i want to call them but could be close to coming to the
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table to try and do some kind of cease-fire, and if that happens you'll see oil go lower and you'll see an emotional retire in the s&p and that could drive another 7% gain but i don't think without that i can only see another two to 3%. >> but that is the rumor just to be clear. that is the rumor that's happening. liz: yeah, and maybe that's by the ruble is up 5% but we haven't talked about the ruble for a while because of course, russia, what a disaster. all right, scott, kenny, great to see you both thank you so much. check the dow down 110 at the moment fox business alert, the bidding war over spirit airlines hitting yet another new height today. shares of the discount airliner are now falling 7.7% after frontier sweetened its bid again to take it over. look at frontier. it's down 12%. these two have been kind of in love with each other holding hands and trying to kick away jetblue which is jumping in constantly. frontier group upped its offer
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by $2 per share in cash to $ 24.29. that's still lower than jetblue 's offer of $33.50 o per share. now, spirit's board is recommending shareholders accept the frontier bid at a vote on thursday because, and many of you are saying well why wouldn't they take jetblue? because jetblue's offer would likely encounter anti-trust scrutiny so jetblue maybe up 1.5 % at the moment but still an $8.75 stock. the major carriers overall are hitting turbulence at this hour after more than 700 u.s. flights have been canceled throughout this day alone. staffing shortages taking a toll on the post-pandemic summer travel boom. american, delta, ual, are all moving lower by more than 2%. the king is the king at the box office. new numbers this morning giving elvis a win in its opening weekend. taking in 31.1 million bucks at
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the weekend box office that is very good news for , look at that, meme stock amc entertainment, the theatre chain shares are jumping 13% at the moment. they were just up 15% right before we took the show from charles, and i think that it's important to watch this , because that was a session high just a few minutes ago. elvis, of course edging out top gun maverick in its fifth week but this weekends $29.6 million domestic take gave tom cruise his first-ever billion dollar film. paramount investors buying on top gun's success while warner brothers shareholders are singing elvis' blues we've got paramount up 1% warner brothers discovery down 1%. while amc may have been one of the original meme stocks yes it looks like revlon is quickly becoming a favorite of the wall street bets crowd. retail investors gobbling up shares on the notion that the cosmetics maker will find a white knight.
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now, revlon has shot up dramatically since filing for bankruptcy on june 16, up 251%. since that day, when it fell to about a buck and eight cents, still it's falling by 15% and down 37% year-to-date. we were all over this story this morning on my tik tok channel, the reddit rebels hoping to see revlon return, remember hertz in 2020 who emerged from bankruptcy last year. we've got all your overnight headlines so follow me on tik tok at red fox liz. world leaders working on a plan to starve russia of petro dollars. how do president joe biden and the rest of the g-7 leaders plan to do that? we will head live to the bavaria n outs and the g-7 summit to get the latest breaking details of what they at least so far have sketched out. closing bell 48 minutes away. "clayman countdown" is just getting started. look at that.
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liz: well look at this. breaking news. take a look at robinhood shares, which were just halted minutes ago on volatility and are now trading once again speaking more than 18%. right now moderating a bit now up 12% on a bloomberg report that's just hitting the tape that ftx, this is that crypto exchange run by billionaire sam bankman freed is exploring a purchase of robinhood. bloomberg is citing people familiar with the matter. look at this , intraday picture here of robinhood, citing people familiar with the matter saying that robinhood has not received a formal take over approach from ftx, and no final decision has been made but of course robinhood is trading right now at around $9 a share. the annual high was $85. this has been a very very messy company year-to-date down 48% and as we watch the story we will bring you any news as it becomes available. we've got this breaking news,
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two russian missiles slammed into a crowded shopping center in the central ukrainian city today, killing at least 10 people and wounding 40. president zelenskyy of ukraine saying that there were more than 1,000 people in the mall when it was hit. all this happening as leaders of the group of seven were ramping up their attacks against russian president vladimir putin. the u.s. imposing on more than 570 russian products with plans to use the money raised to help ukraine in its fight against russia's invasion but front and center the g-7 ironing out a plan right now to put a fridays cap on russian oil in an attempt to limit the profits the kremlin gets from selling the commodity worldwide. edward lawrence is live at the g-7 summit in austria where president joe biden gathered for hours today with global leaders. edward? reporter: good afternoon, to you , liz. it's a very busy night here in the bavarian alps. the world leaders all heard from
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russian president volodymyr zelenskyy talking about how he needs more weapons to pushback against the russians but really today was focused on energy and russia. now president biden, he made, he is in for the night here but he made his pitch adding more sanctions on the russians, this time, the sanctions focused on again, more entities & companies and individuals trying to help the russians circumvent sanctions. the g-7 leaders also banned russian gold. in 2019, russia exported 2.2 billion in precious metals including gold to the u.s.. now, that number will be zero. now in meetings today there was another big push by president joe biden to make that climate change, that transition to wind and solar energy. you know the german chancellor backing up the president on this listen to this. >> we discussed how our investment globally in climate- neutral and low carbon energy including gas can help us as a temporary response to
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russia's use of energy as a weapon. given the progress we have achieved. reporter: but germany is reversing course on some of its policies, they're reopening some coal plants that were closed. in fact, the country, again, reopening those coal plants but also part of the european union, which is rolling back restrictions and regulations to advance and fast-track pipeline projects. the u.s. though staying the course on its energy policy. there is no change. we're hearing that tomorrow, the u.s. will announce with the rest of the g-7 a cap, as you mentioned, on russian oil so european countries as they we an themself off russian oil the leaders will put a cap on what countries will actually pay, limiting the money that's sent to russia so russia, china and climate change the big topics here, one other big one they talked about a $600 billion investment by all of the g-7 companies or countries here. they invest in developing nations to try and help their infrastructure in those nations.
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this is met as a competition for china's belt and road. the difference it doesn't come with all of the strings china has attached the g-7 offering this money up without the strings. liz: understood, edward thank you very much. all you need is a dollar and a dream, and lottery millions could be yours, as they say. just march into a convenient store to buy a ticket, right? wrong. one startup is on its way to disrupting the $100 billion lottery market. the ceo of jackpot is up next, live, to tell you how. it's a fox business exclusive. with the closing bell ringing in 39 minutes and the dow down 56, look it's just the russel that's clinging to gains here up 1% but this could all change because it has multiple times during this session. stay with us, we are coming right back. ♪ pop rock music ♪ >> tech: ...we can replace your windshield and recalibrate your advanced safety system. >> dad: looks great. thanks. >> tech: stay safe with safelite. schedule now.
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liz: well, if the bear market and crypto collapse have your portfolio in shambles there's
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always the lottery. tonight's powerball drawing is worth $346 million and by the way, tomorrow's mega million s jackpot, $328 million, and if one startup has its way, you won't have to go to the corner store to buy a ticket. jackpot developed an app that allows you to buy lottery tickets online in select states. just five of them so far, but if it has its way lotteries across the country will go digital via jackpot. this is backed by an all-star lineup including nba star james harden, hockey hall of famer, dallas mavericks owner mark cuban, investment funds by owner s of cleveland patriots jackpot is fresh off a $35 million series axe funding round. joining us now in a fox business exclusive, jackpot ceo akshay kh ana who just started in the last month after being pretty much in charge of north american stub hub.
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actually, wow, to come in and have this success right off the bat with the series a funding is pretty amazing especially in this atmosphere. what is it about jackpot that got all of these people to give in? >> yeah, liz, thank you so much for having me first and foremost as you mentioned, its been a tough atmosphere for fundraising no question, and for startups in general, but we think we've sort of hit the jackpot as it were on the perfect mix of a market opportunity that is unlike any other, and a changing landscape from what is currently an analog business model to what we believe is going to be the digitization of an entire sphere of american culture that ends up being more than $100 billion, and when you combine those elements and the team that we're going to be able to assemble, i think you understand why a lot of the investors have gotten incredibly excited about this. liz: right, but yes, absolutely,
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but i need to know exactly how this works. people in five states, new york, ohio, oregon, they are allowed right now to buy lottery tickets o online. how do you convince the rest of the states to say i'll open this up to your app? >> it's actually the number is closer to 12 or 13 now states that are allowing what we call the courier verse model for lottery tickets. as you can imagine a big part of this role, a big part of this industry is going to be working with state regulators to ensure that this digital forum, this digital distribution channel, is not only regulated and legalized but really encouraged. it's 2022. you can buy almost everything online today. there is no reason for lottery tickets to be any different. liz: how would your business model work? how would you guys scrape in revenue? >> yeah, so think of us sort of as the uber eats for lottery
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tickets. we want to make sure that you can buy your lottery tickets whether that's to state lottery or to powerball or mega millions we want to make sure you can buy those from the comfort of your home while sitting on your phone or desktop or any other device that you have. at the end of the day, we will charge you the consumer a convenience fee, hence kind of the uber eats model. liz: how much? >> and in exchange we will make sure that you never need to leave. and that convenience fee kind of varies anywhere from 12 to 15 to 18%, depending on the state and depending on the amount of money that you're depositing and the number of tickets you're planning on purchasing. liz: okay so you've got ease and you have got technology, so people can do this from home. there are those and let me play devils advocate who would argue this is a horrible recipe for gambling addiction and lottery tickets buying and so tell me how you are able to get
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around that accusation that you guys would only be kind of affect waiting a real problem in this country. >> look, depending on the state , up up to in some cases 95% of all lottery take that goes to the state ends up being spent on really positive causes, whether that's obviously prizes to the winners or public education, public housing, this is money that ends up going back to the state and going back to typically causes that help a significant population of the state. now, at the end of the day, we are a channel for the sale of lottery tickets. we are not creating our own lotteries. all we are saying is for people for whom $2 and a dream are that form of entertainment, we want to make sure you're able to do that in a seamless, safe, and convenient manner that doesn't require you having to get into a car, pay for some very expensive
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gas, having to drive down to the gas station, and transact in a way that just doesn't make sense for 2022 any more. liz: well i get it and i ask that because as you face this challenge of convincing other states and their lottery commissions to jump in and deal with you guys, they're going to maybe be pushed out the same thing, believe me i know they love the money and the states love the money but they will of course feel that they have to ask that question. talk to me a little bit about your skillset. you came from stub hub. what is the difference between selling lottery tickets online and selling concert ticket ms. spears >> yeah, so there are a lot of similarities so let's start with that. when the founders of stub hub looked at this business 20 years ago when stub hub was founded they saw something similar. what was fundamentally an analog model, people physically going and waiting outside of arenas to go and buy tickets and they saw the internet and realized there was no reason why the purchase of those tickets could be done in a digital manner in the same
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way that so many different things were happening. fast forward 20 years, and now, we're in a space where the vast majority of transactions have the capability to be conducted online, and lottery tickets are that one outlier so the similarities exist. in terms of the differences, at this point in the live event ticketing space, most people who are attending a live event are generally aware that their best bet is to purchase a ticket in a safe and secure and convenient manner, is to go online to a website like stub hub which is the industry and the market leader. most people in america used to be owned by ebay, no longer, most people in america are not yet aware that they can do the same with lottery tickets, and so it is my job, it is our job as a company, to ensure that people gain that awareness, that they can be purchasing in the comfort of their own home, through their phones and that's
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what's a little bit different than my prior experience at stub hub. liz: well, akshay, that's one business model, 12-18% fee, i can't wait. that's how you know people love to play the lottery but they don't want to get up and go to, of course, the 7-eleven or who knows where but we'll be watching it, and i know that you guys are hoping to go public, maybe second half of the year. please let us know, thank you so much. >> we are. we are planning on launching toward the end of the this year. would love to be back. thank you for having me. liz: you bet, akshay khanna, we like disruptors. fed chair jerome powell said he would love to see a stablecoin, a coin pegged to the dollar but one problem. there already is one, in fact a couple, circle manages the dollar pegged usd coin. this is the one that actually held up in the recent volatility the ceo of circle is here next exclusively to tell us how he plans to fight the fed or at least make sure his stablecoin
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liz: oh, boy its been kind of a rough and tumble indecisive day for bitcoin. not just the stock market, right it was above 21,000, now it's below it. it is falling 651 bucks, ethererum is also down same with litecoin. while cryptocurrency is really feeling like its facing its biggest test yet, there are few signs of recovery as bitcoin struggles to hold above 20,000. so with these cryptos, solidly in the red, as the stability of the crypto market further deteriorates, hedge funds have turned their eye to shorting tether. tether, of course is one of those stablecoins that was supposedly pegged to the u.s. dollar and of course, they are shorting it after tera usd's
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collapse last month. same with luna. another stablecoin. the wall street journal reports today that an increased number of traditional hedge funds are betting "hundreds of millions of dollars" to short stablecoins. so is right now the best time to introduce a new stablecoin to the market? well, considering that circle's first stablecoin u.s. dollar has held up just fine, let's bring in circle co-founder and ceo jeremy alair with circle's new euro-backed stablecoin launching this week he joins us in a fox business exclusive. we'll get to the euro coin in a moment but what do you make of what's going on in the crypto market at the moment and specifically all of the problems that stablecoins have dealt with >> well thanks, liz, for having me on. i think crypto markets as a whole have seen an extraordinary amount of activity, obviously very much correlated to the risk -off in tech and in other sectors, and then kind of finding some of its own fundamental weaknesses where we
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had as you noted, protocols and projects like tera and luna which kind of collapsed among themselves, and then we've seen crypto lenders with over leverage and even some in solvency so we seen really difficult times there. i think throughout this what's been notable has been really over the last month or so, as this has happened, there's been this incredible flight-to- quality, and specifically, a flight to stablecoins like usdc, where we've seen net in-flows increase significantly from 48 billion us dc in circulation to now about 56 billion usdc in circulation and it underscores that the market is looking for where's the risk, where's the real risk? where are there products that are built on a sound regulatory footing, and that's really been the case for usdc since we launched it with regulatory frameworks around it four years
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ago. liz: well four years ago you launched it and it was pegged to the u.s. dollar just like luna was supposed to and tether, et cetera, tera. fully backed. yours is fully backed by cash and u.s. short-term treasuries, correct? so we're looking at it right now and it is right there, pegged at a dollar. in fact, slightly above it. although it has broken down slightly below it, during the drama, that involved all of the luna and tether and tera problems, but now, we have jay powell coming out and saying last week, and this jumped out at me and my team because i'll tell you something when you see him talk about stablecoins it was something he delved into central dollars, central bank dollar, but he really got specific with stablecoins. i want you to listen to what he said and then you can react because he takes aim specifically at what you guys do >> and you think overall, the
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ideal role of the fed in overseeing stablecoins is what? >> do we want a pray vatican stablecoin to wind up being the digital dollar and i think the answer is no. if we're going to have a digital dollar it should be done by us. i think that it should be government guaranteed money, not private money that is really created for the benefit of the private issuer. so anything to do with payments that the public is involved in, we should be involved in that too. liz: he is taking aim at you guys. what do you think about that? >> well, i think chairman powell, there are a couple piece s here. i think the first is he's multiple times, you know, come out in favor of making sure that we have sound national regulatory policy around dollar stablecoins and in fact we're quite aligned about that. we view dollar stablecoins as a critical major innovation in payment technology. liz: but jeremy, he says we don't want a private stablecoin
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to become a digital dollar. that's you guys. >> yeah, i think two things. so very clearly, i think chairman powell understands that stablecoins are going to grow and are going to be very significant and i think at the same time, he's making an argument that the federal government ought to be building technology and potentially releasing technology in the space. now i think the really critical thing is every single major payment system innovation of the past almost 75 years has been private sector led. the messaging system of wires. the check clearing system. atm's, credit cards. liz: paypal, i get it. >> nft, stablecoins all are private sector-led and they will continue to be so the important thing is that the underlying risk, safety soundness, and the role of the fed can be preserved, but the technological innovation cycles are really going to continue to be driven by the open internet and private sector innovation. liz: have you met with the fed
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or anybody that represents the fed and would you like to? >> i've had the opportunity to meet with a lot of leaders in the federal government and the fed and other places. i think the fed is quite open minded and thoughtful about these issues, and i think the treasury department as well. i think private sector innovation plays a huge role in the financial system. 95% of money issued is issued by private sector institutions. liz: i'll end by saying you're launching the euro coin, stable euro coin. tell me how that is going to work. same way? and how difficult was it to convince the powers that be involving the euro to allow this >> well, so, euro coin is being introduced this week. it's a token called euro-c, and it's operating under the same framework that regulates usdc, under electronic money transmission statutes so it's a one for one backing held entirely in euro currency, within the regulated u.s.
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banking system, the technologies very similar, it can be used on blockchains and digital wallets and exchanges and we see huge opportunities for these additional international stablecoins as these crypto markets become kind of fx markets as well. liz: gotcha, jeremy please come back. be very interesting as we are in this nascent stablecoins. >> absolutely. liz: goldman sachs is slapping a sell on coinbase. charlie gasparino has the very latest on all that's going on there.
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and have historically low risk. call today to request your free bond guide. 1-800-217-3217. that's 1-800-217-3217. ♪ ♪ how's he still playin'? aspercreme arthritis. full prescription-strength. reduces inflammation. don't touch my piano. kick pain in the aspercreme. liz: shares of crypto exchange coinbase sliding 11 and one- third percent at this hour after its lead underwriter goldman sachs put a sell rating
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on the stock. the lead underwriter they are the ones who help bring it to the public markets. goldman is saying the company needs to cut costs even further in order to stem its cash-burn rate. so again, the stock is down 78% this year, and the short sellers are circling betting the stock will continue its downward spiral, and charlie gasparino, what more can you tell us? charlie: we'll spin this forward a little bit about what people are saying and how they are shorting the stock and what they are saying about it but let's just go through goldman's sorted history here and this is why you , as the average investor, cannot trust a wall street recommendation coming from the firm that underwrote the ipo. liz: always check. charlie: if they underwrite the ipo, even people as good as they are at goldman, they're a client, they aren't going to beat up on a client or be really objective so they bring the company public in spring of last year, right? they upped the price target in
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november at 385. i forget where it ipo'd at. it never quite got there. liz: it got to 368. that was the annual high. charlie: okay so remember in november, right before the you know what hit the fan with crypto, they put a 385 price target on it, and then by the beginning of the year, coinbase was going nuts hiring and obviously, the crypto bus came, and now, they're cutting it to whatever it is $45 and it's a $55 stock, so this is not like a good thing, and just as an average investor, if you see an underwriter saying buy a stock, just check it out. just check if they were -- liz: conversely though, right? if you see the other day, i saw a big bank say this is the name that you need to support, and i went back and checked to see if that bank and those analysts had been the underwriters and they were not but you always got to check. charlie: check and by the way sometimes they are trying to be the underwriter too.
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wall street research is a crazy thing. i wrote a whole book about the scandal but let's get to that it is and we can leave that aside because we take up your whole show. let's get to coinbase coming under incredible scrutiny right now. short sellers are betting the stock and they are the ones that bet that a company will decline and maybe even go out of business. they aren't betting about this , you know, pretty i would say existential decline in the future of coinbase. short sellers are raising the possibility, and they have been out there talking about this , of coinbase going into chapter 11. now, the company says don't even listen to them, we're not close. we're taking all the necessary steps. they do have a lot of cash. i think they have 4 billion in cash. they do burn a lot of cash. i think they burned a billion five in cash, probably less this year because they are cutting so many people and they may cut more people but if you are an account holder at coinbase, where your account is, is your money safe if they do file chapter 11?
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you know, the company offers very cryptic and sort of convoluted explanations and there's a reason for this and i'll get into that in a minute. they put out a filing that said all account holders will be essentially treated like creditors, not good. if you're a creditor and they start figuring out whose at the top of the list when they start divvying up the assets, right? and the company comes out and goes no, no, no, let's clarify. your account is segregated money , we'll take care of it and watch it. here is the thing when lehman went under and all these banks go under, and you have a brokerage account it takes a long time to get your money out plus you have spi insurance, there's an insurance policy that says you get pushed to the front of the line, when there's a bankruptcy. there's no such insurance in crypto. so if your money is in there, you got to look at worse case
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scenarios. if you think coinbase is ever going to declare bankruptcy, you're going to be treated in a worse case scenario like a bond holder. now, bond holders are getting paid, are buying the bond at $ 0.66 on on the dollar right now that's highly, highly junk bond status. keep that in mind if your money is at coinbase. liz: shares right now down 11.5% at the moment charlie, thank you todd bubba horowitz, that is his name, has stanley cup stocks on his mind, yes, we're coming right back. dow is down 128. mons. lemons, lemons, lemons. look how nice they are. the moment you become an expedia member, you can instantly start saving on your travels. so you can go and see all those,
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♪. liz: boy, is this a big day for crypto and anything related, robinhood, which allows you to trade crypto is popping 13 plus
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percent because of the bloomberg report. ftx, the exchange run by wunderkind freid, is possibly exploring a buying the platform. no confirmation from either side. colorado avalanche beat lightning in final game 2-1 first time in 20 years. he says he has three stocks to fill your stanley cup winners in your portfolio. todd horowitz, with the bubba show. i'm a hockey fan. you're a hockey fan. let's fill the cup with what? >> fill the cup with a market very rough, a lot of problems going forward. i think time you play all of it, look for some bottom-fishing in some stocks, one you were talking about charlie, coin. i think coinbase, bitcoin will be real. i think it is. i think it is going to be a great play long term.
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get 429 in the opening week. i think coinbase looks really good. from a gambling standpoint, we're not looking at fundamentals here. hey, let's bottom fish. i think square fits that same model. square is partially a payment system. which is heavily involved in the crypto world which i'm a believer in. that is food way to play those. stocks have been beaten down to zero, really hurt badly six months to a year. amazon, look it fuel prices continuing to go higher, amazon will have more business than they have been, split at recent price at 114 i think amazon is a great play. liz: i find it interesting square is down 57%. i'm okay with that one. all the people are using it. it is not going away. it has been beaten down so much. we have about 15 seconds left.
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what do you think of the market today? it is very indecisive. the bear market rally is over. i think i look for the market substantially lower, i think the next 20% down after leg we finished. i think this is nothing more than a bear market rally. [closing bell rings] >> todd has been a trader for a long time. take that for what it is. that will do it. "kudlow" is next. ♪ larry: hello, folks, welcome to "kudlow," i'm larry kudlow. so the best thing i've heard or read today is that we can all pray on 50-yard line. no kidding. it is a victory for free speech and religious freedom. a victory for the constitution and best traditions for our country. my guess you can pray on the 25 or the end zone. my hunch it is a

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