Big Game Betting; McDonald’s Bacon Hour; Crisis in Venezuela; Apple Beats Earnings Estimates; Roger Stone Pleads Not Guilty; Interview With
<Show: YOUR WORLD WITH NEIL CAVUTO>
<Date: January 29, 2019>
<Head: Big Game Betting; McDonald’s Bacon Hour; Crisis in Venezuela; Apple
Beats Earnings Estimates; Roger Stone Pleads Not Guilty; Interview With
Rep. Steve Scalise (R-LA); Winter Chill Slams Country - Part 2>
<Sect: News; International>
<Byline: Deirdre Bolton, Jared Max, Jack Keane, Jonas Max Ferris, John
Roberts, Mike Tobin, Adam Klotz, Neil Cavuto>
<Guest: Alan Knuckman, Antjuan Seawright, Jillian Melchior, Nan Hayworth,
John Lauro, Steve Scalise>
<Spec: Apple; Venezuela; Steve Scalise; McDonald’s; House of
Representatives; Roger Stone; Super Bowl; Gambling; Robert Mueller;
Elections; Russia; Budget; Economy; Environment; Safety; Stock Markets;
Business; Politics; Republican Party; Donald Trump; Government>
And on the same subject, Juan Guaido will be a special guest of Trish Regan’s tonight on FOX Business Network at 8:00 p.m., a rare chance to hear from the man of the hour, who is probably the most scrutinized leader on Earth for the time being.
So little known about him, outside of the fact that most of the Western world wants him to take over, and China and Russia and Cuba do not.
More after this.
CAVUTO: Your ship has come in.
Is it any surprise that McDonald’s chose my hour to launch the bacon hour, free bacon with anything, even ice cream, today and today only?
You’re welcome, America.
(END VIDEO CLIP)
CAVUTO: All right, what the heck has happened to Venezuela? It is imploding.
And a lot of us were wondering. Of course, you have heard a lot about it on the news, including this broadcast, but very little coming from Democrats who might be wondering about a socialistic country that is falling apart, and maybe could that boomerang badly on them? I don’t know. Just a thought.
I wanted to raise it with former New York Republican Congresswoman Nan Hayworth, my buddy Democratic strategist Antjuan Seawright, and The Wall Street Journal’s Jillian Melchior.
All right, so, Antjuan, why are so many of your friends who espouse all these big government programs, and now seeing the same thing falling apart in Venezuela, so quiet?
ANTJUAN SEAWRIGHT, DEMOCRATIC STRATEGIST: Part of me feels like it’s malpractice, Neil Cavuto, for people to say Democrats are silent on this issue, when, just last Sunday, on NPR, we heard a Democratic congresswoman from Florida talk how she supports what this administration is doing as it relates to Venezuela.
CAVUTO: All right.
SEAWRIGHT: And also she noted that she’s working in the Congress, in her role, that she can control, to make sure we protect...
CAVUTO: Has Nancy Pelosi, has Chuck Schumer, have any of the prominent presidential candidates on the Democratic side? Let me save you the energy. No, no, no, no, no.
SEAWRIGHT: Well, I think it’s because they were dealing with other things, like trying to make sure our government stays open, trying to negotiate...
CAVUTO: No, no, no, no.
Do you find it a little odd that it is horrific, what’s going on there, and a lot of it are born of problems with a country that had more riches than you could shake a stick at, and now made promises that couldn’t even keep up with that?
SEAWRIGHT: I don’t think it’s about socialism, because I think Democrats and Republicans feel the same way about the urgency of this issue.
I think it’s more about -- I think Democrats really are worried about some of the things going on here, and that they can have more control over.
CAVUTO: But is that a testament that you can overpromise and eventually run out of money?
NAN HAYWORTH (R), FORMER U.S. CONGRESSWOMAN: Yes.
Well, socialists, it’s no longer, in fact, a dirty word. I would submit to you, among Democrats, Antjuan...
SEAWRIGHT: I don’t disagree with you, Nan.
HAYWORTH: ... to say, I’m a socialist.
CAVUTO: You’re OK with that?
SEAWRIGHT: I’m not OK with that. I just don’t disagree that it’s no longer a Sunday school word.
You can say, I’m a socialist, and get a fair hearing among Democrats.
Socialists in this country, Democratic socialists, believe in enlightened authoritarianism. They believe that if they empower government, good things will happen.
But we know fundamentally -- look at what happened to Roger Stone over the weekend. The FBI came to his door. And all he was accused of -- not even -- he’s been even convicted. He needed to be apprehended for civil accusations, yet he was apprehended at the point of a gun.
Government always does its work ultimately at the point of a gun. And that’s the problem, Antjuan.
CAVUTO: Let me just stick with this particular issue here.
And, Jillian, it’s the notion that -- and I’m kidding with Antjuan there -- he was a good sport. But this notion that you can keep making big promises and keep making big promises, and eventually run out of money.
And this started happening under Hugo Chavez, when he took over the Venezuelan government, and they had a lot of oil riches, and he pissed it all away. Gone. Gone.
JILLIAN MELCHIOR, THE WALL STREET JOURNAL: Yes.
I mean, I think, when I’m talking to millennials, I want to point them to this and say, this is what socialism looks like. This is not Alexandria Ocasio-Cortez. This is not Bernie Sanders. It’s Venezuela.
And talking to young people in Venezuela -- I take Spanish lessons over Skype sometimes with Venezuelans. And I think the really shocking thing to me was hearing one of them tell me about going to the grocery store, looking at the shelves, and seeing no food on the shelves, just wall and wall of salts.
And I think that’s what you get when you have a socialist society. I think it’s a very fair question to pose.
CAVUTO: So, could that be American extreme? A lot of people who think that.
MELCHIOR: Well, I think it’s disappointing to see Bernie Sanders, AOC rail about concern about American intervention.
Look, this is a fundamental human rights issue. And I think they pretend to stand up for the marginalized and the oppressed, but this is a dictatorial government and an authoritarian government that has starved and brutalized its people. And it’s important to take a stand against that.
SEAWRIGHT: Neil, while I love these two ladies and love sparring with them, but they’re making the assumption that Sanders, the independent senator from Vermont, and AOC speaks for the entire Democratic Party.
I think it’s bad...
CAVUTO: Wouldn’t you argue that that is where a lot of the passion comes from, that so many of the prominent Democrats are looking at a wealth tax, a higher tax?
SEAWRIGHT: I just think that -- what I do think, Nan, to a point you made, I think Democrats believe in strengthening the government, so the government can carry out some of the responsibilities that we have...
CAVUTO: Are you, as a young man, worried that you’re going to be saddled with all this debt that your party and, by the way, Republicans too don’t talk about?
SEAWRIGHT: I think I’m more worried about what I’m dealing with today and the issues that I’m facing.
CAVUTO: I’m telling you, tomorrow...
SEAWRIGHT: Neil, my everyday focus is working hard so I can pay my student loans today.
And I worry about them next month.
CAVUTO: In Venezuela, they ran out of money thinking that it wasn’t a worry immediately, until it was.
SEAWRIGHT: I’m not saying it’s not a long-term worry for some people.
But I’m just telling you that we have more issues today.
CAVUTO: Long term for me is lunch tomorrow.
SEAWRIGHT: More issues today that could damage us.
CAVUTO: Nan, what do you think?
HAYWORTH: The government has confiscatory power.
We cede much power to government in order to preserve social order. The reason you have such high...
CAVUTO: We’re trying to look after you, Antjuan. We want you OK.
SEAWRIGHT: I’m glad. I want to be able to look after you.
MELCHIOR: The reason you have such high student loans is because, as a condition of Obamacare, the federal government took over student loans and deliberately overcharged the students. They do.
SEAWRIGHT: No, no, no.
I have high student loans because, for first-generation college students like myself, no one addressed the issue of college affordability, until Democrats decided to. Unfortunately, it was too late.
MELCHIOR: It’s kind of hilarious to talk about college affordability, because I think this is a really good example of when we’re talking about free college, for instance.
MELCHIOR: You have seen a blow to the administrative state. You have seen tuitions skyrocket. And you have seen a lot of administration that’s unnecessary.
CAVUTO: All right.
CAVUTO: And we’re trying to help Antjuan, but he doesn’t want to be helped.
If you don’t want to be helped, we can’t help you.
SEAWRIGHT: Just pray for me.
HAYWORTH: Vote Republican. We love you. Vote Republican.
CAVUTO: All right, guys, thank you all very, very much.
By the way, Apple is out after the bell with earnings and revenues that apparently beat the Street and sales of products that beat the Street as well.
It’s also giving a slightly more than expected upbeat forecast, enough to propel the stock about 2.5 percent in after-hours trading.
We will have more after this.
CAVUTO: All right, it is probably among the more closely, if not the most closely scrutinized company when it comes to the earnings parade, the middle of which we’re in.
Apple out with better-than-expected numbers, lifting the stock right now.
Alan Knuckman and Jonas Max Ferris on the significance of that.
Alan, what do you think?
ALAN KNUCKMAN, BULLS EYE OPTION: Oh, it’s all about Apple.
Everybody keeps an eye on -- this is a barometer of the market. Obviously, it has a large impact, if you look at all or indexes, because it’s very heavily weighted. This could be the phase two of this relief rally. The rest of the market has bounced back, whereas Apples been stuck awaiting these earnings.
They weren’t disappointed. And we’re seeing an initial reaction that’s positive. Let’s see if it can build on these gains. It’s a stock that’s been stuck between $140 and $160. That target is $180, on a bit of a bounce here.
So I’m rather optimistic, and I think everyone’s going to realize how much money Apple truly makes every quarter.
CAVUTO: Everyone’s been waiting for technology to come back. Apple was one of the dragging soldiers, so to speak, Jonas, and now this could be a sign that it will have a comeback month as well.
But what do you make of it?
JONAS MAX FERRIS, FOX NEWS CONTRIBUTOR: Now, it’s only up slightly because they have been lowering expectations for months now.
CAVUTO: Very true. Very true.
FERRIS: This business model stopped growing, at least the core business of selling the phones.
And this is the first time that their growth was actually down since they launched the phone over 2007, I believe it was. So this is not good. But it’s better than we expected marginally, like a penny a share.
So, again, it’s great for the stock right now. But this could be problems. Luckily, they’re squeezing money out of the existing monopoly, which is services to the installed user base.
CAVUTO: All right, but earnings are -- we’re, what, about a third of the way through this process. Most of them are beating the estimates, and I think, Alan, by a pretty large amount. How do you judge earnings season thus far?
KNUCKMAN: Well, I think this can be a relief rally, like I said, a secondary catalyst for the market comeback, after that extreme low that we have had in December.
I think everybody was waiting to see exactly what happened here. They still sold 50 million phones. So we’re talking about a lot of phones here. Apple is still doing very, very well. We can’t state that enough. I mean, the revenue wasn’t -- more than $80 billion. Yes, it was knocked down. They knocked down expectations.
But that’s what this game sometimes is. So let’s see what the next step is. But I would rather be positive, rather than be bullish on that stock at these levels. We have come back to the level where we were in 2017, and we broke out about $150. So let’s see if that holds as a long-term support.
It’s at a discount, and I still think it’s a healthy company.
CAVUTO: Any freeze to worry about with the government again? What do you think, Jonas?
FERRIS: They are having some problems abroad. That’s most of their business.
Look, people by tech stocks for growth. They’re not utility companies. These companies aren’t growing quite the way they used to, and the stock -- and that’s why the Nasdaq’s down. And it wasn’t that bad. But it wasn’t good enough to turn everything around either.
CAVUTO: Guys, I want to thank you both.
KNUCKMAN: It’s still Apple.
CAVUTO: You’re right. It’s still Apple.
And bacon is still a very popular item in this country, and doesn’t McDonald’s know it, Deirdre Bolton, huh?
DEIRDRE BOLTON, FOX BUSINESS CORRESPONDENT: That is exactly right, Neil.
Speaking of healthy, I am on Sixth Avenue and 28 Street at a McDonald’s. Neil, you can even get a McFlurry with bacon, if you want, in this hour.
We’re right in the middle of bacon hour. So, when we come back, I’m going to tell you a little bit more what is behind McDonald’s strategy.
CAVUTO: All right, this is the new -- the new rage at McDonald’s.
This hour, they’re giving free bacon to anyone and everyone, from 4:00 to 5:00 p.m. Eastern time, 4:00 to 5:00 p.m., no matter where you are in the country, free bacon. Our guys here are very keen on it.
Bacon is a big deal. You like bacon?
UNIDENTIFIED MALE: It’s really -- it’s small.
CAVUTO: It’s very tiny. It’s very tiny. Yes, it is. Well, enjoy.
UNIDENTIFIED MALE: It’s actually life-size.
CAVUTO: That’s fine. That’s fine.
But it’s interesting that McDonald’s has discovered, as has Wendy’s and Burger King and all, they go bacon, and you never look back.
Now, I know what a lot of you are thinking. Neil, do not touch that bacon, because we know you had heart surgery a couple of years, and it’s very, very bad.
Now, I might point out that my cardiologist at the time and the fellow who did the heart surgery and the keeper of these very embarrassing pictures at the time said, everything is OK in moderation.
What he didn’t realize, when that picture was snapped, is that, in my other hand, I had a big old wad of bacon there. And that’s the cardiologist’s assistant telling me, Neil, not a good idea.
Anyway, what is going on here with this, even whether you do it in moderation, as my cardiologist said at the time?
Deirdre Bolton, this is big, huh?
BOLTON: This is big, Neil.
We’re right in the middle -- or, I guess, getting towards the end of bacon hour here at this particular McDonald’s at 28th Street, Sixth Avenue.
So I have been talking to people who have been coming in and out, saying, did you come here for the bacon? Because right now you can get whatever you want, whatever McDonald’s sells -- so if you want to make a McFlurry with bacon, you got it. You want apple pie with bacon, and you got it. Basically, whatever’s on their menu, you can get free bacon on the side for this hour.
So you said it. It’s all participating McDonald’s. It’s nationwide. And the idea is just to have some fun. I was talking to one of the two people in management here. And they said, look, this just seems like a fun thing to do. It’s the middle of winter. Everybody is cold. Everybody’s borderline hibernating right now.
And the idea is to drive sales, not surprisingly, for some of the more traditional pieces, I guess, or more traditional recipes that we think of. So McDonald’s is going to begin to order or promote a little bit more heavily that Quarter Bacon with cheese, Big Mac with bacon and cheese, and then of course, cheese fries, also with bacon.
So that is the purpose of this. We also know one of the competitors, Wendy’s, for example, offering free Baconator cheeseburgers all week. So, McDonald’s not alone in this. We do know McDonald’s is going to be posting earnings tomorrow. So, obviously, this will not show up in tomorrow’s numbers. But it’s pretty festive down here.
So, Neil, as people have been coming in and out, I have been talking to them, saying, OK, did you come here for this special hour? And so what a lot of people told me is they didn’t come here specifically to have bacon added on to their orders, but now that they’re here, I have seen a few people walking around with some bacon strips.
So, Neil, even one young lady who came in for one of the coffee drinks actually got a side of bacon. I guess if it’s here and it’s free, why not, Neil?
CAVUTO: Yes, you can stir it in drink or whatever.
And I know this is so alien to you. You’re one of the healthiest people I know, and you eat everything that is like perfect. You’re a cardiologist’s dream.
Meanwhile, mine is having palpitations watching me do this report.
Deirdre, thank you very, very much.
CAVUTO: All right, meanwhile, ahead of the big game, you might want to know about the big office pool bets that are technically illegal. But that hasn’t stopped a record amount of betting.
Bet your bottom bacon.
CAVUTO: You know, it’s obvious to say that people plays big bets on the game, but a record $6 billion-plus, according the American Gaming Association?
FOX News Headlines 24/7 reporter Jared Max on that.
That’s staggering. And it’s illegal.
JARED MAX, FOX NEWS CORRESPONDENT: It’s -- most of it is illegal.
Of the majority, 94.7 percent, I believe, will be illegal bets.
CAVUTO: But who’s counting?
MAX: Who’s counting.
Neil, earlier today, I was in a supermarket thinking about this whole topic and what I might say this afternoon. And as I was walking to go pick up an item, I hear one of the elder gentleman working in the store asking another colleague, hey, you going to play one of those bet -- one of those Super Bowl boxes?
Everybody plays these boxes. And you pick a number, and then -- or you pick a box, and then you find out if you get a shot to win. It’s like a lottery at the Super Bowl party. It’s still illegal. Uncle Sam is not getting a clip of this.
We now have eight states with legalized sports betting. It used to be just Nevada. Former New Jersey Governor Chris Christie pushed very hard for that change, and the Supreme Court ruled...
CAVUTO: Right. Well, apparently, they’re going to get $180 million off it, they think, at a minimum, right?
MAX: Lot of money for the gambling.
And, hopefully, obviously, there’s so much that goes for taxes. We hope that a lot of this is going to find its way to the right places. Give teachers a little bit more money or something. Fix the potholes in the roads, because there’s...
CAVUTO: Bacon, bacon purchases.
MAX: And more bacon, of course.
Now, what is it -- what draws this year, or is it different this year? Or it just goes up every year?
MAX: I think it’s because it goes up every year.
CAVUTO: I see.
MAX: And everybody has an interest in it, whether you know football or not.
The Patriots opened up as underdogs of one point. And within just a few minutes, really, the line changed. And the Patriots are favored to win this by two-and-a-half points.
CAVUTO: Well, they were favored last year, right?
MAX: Last year -- boy, you forget year to year what the actual spread was, yes.
I mean, I think it’s going to be about a three-point game. I do like the Patriots, if anybody wants my...
CAVUTO: There are so many different ways to bet too, right?
MAX: You can bet who’s going to win the coin toss, whether it’ll be heads or tails, who’s going to score the first touchdown.
You can bet -- these are fun ones. And this pulls people in. How many points will James Harden of the Houston Rockets score on Sunday, vs. how many completions will Tom Brady throw? And then you kind of get these goofy...
CAVUTO: Get out of here.
MAX: Yes, it’s...
MAX: It’s all there.
I mean, like they say, you throw a couple mice around and people will bet on who is going to win.
CAVUTO: Do you get more of it when there’s controversy or the players or the team, the Patriots?
MAX: I’m glad you bring that up, Neil, because with the legalized sports gambling, now more than ever, there’s a need to get it right.
And the NFL looked so foolish in that NFC championship game where they admit this wrong call. Now, I don’t think that they’re going to listen to -- they will listen to the Saints fans crying foul, we got robbed.
The difference for the NFL, why they’re going to get it right, you had a sports book in New Jersey that does mobile sports betting. And they told anybody who bet on the Saints, whether it was straight up or with the point spread, we’re giving you your bet back. We’re going to credit your bet. The NFL dropped the ball, and we’re going to pick it up.
And then the NFL realizes, and the other leagues too, there is a need to get this right, get the calls right, because there’s so much money on the line.
MAX: What happens if you put up a lot of money?
Somebody told me they bet $400 on the Saints to win the Super Bowl several months ago. What do you do?
CAVUTO: Well, that didn’t pan out.
Any predictions you have?
MAX: I like the Patriots to win the Super Bowl.
MAX: I think that what they showed me in the AFC championship game in Kansas City, how resilient they were, and that they keep coming back, L.A. is a good team, but I like the Patriots.
CAVUTO: They’re still the embodiment of evil, don’t you think?
MAX: Well, look, a lot of people hate the Patriots.
CAVUTO: No, that’s too strong a word.
MAX: I think what is special -- what’s special about this team is, Neil, one day, all the people who say, like, Tom Brady hate him, hate the Patriots, one day, they’re going to tell everybody, I saw the greatest football team to ever play.
CAVUTO: Absolutely. You’re right.
Jared Max, the FOX News Headlines 24/7 reporter.
Here’s “The Five.”
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