INDEPENDENCE THERE.
>> Bret: THEY, THEY DO.
LET’S BRING IN MARIE
EMBARRASSMENT.
GOODMARIA BARTIROMO.LET’S TALK A
YOU ARE TALKING ABOUT THE
ECONOMY.
>> IT’S AN IMPACT BRET AND
MARTHA.
GOOD TO SEE YOU.
RIGHT NOW WHAT I’M WATCHING IS
THE ENERGY PRODUCING STATES.
I THINK INVESTORS ARE
ANTICIPATING BIG CHANGE SHOULD
WE GET THIS RED WAVE THAT SO
MANY PEOPLE HAVE BEEN TALKING
ABOUT.
AND SO YOU WANT TO REALLY LOOK
AT TEXAS, WYOMING, PENNSYLVANIA,
LOUISIANA, WEST VIRGINIA,
OKLAHOMA, THESE ARE THE LEADING
ENERGY PRODUCING STATES AND IT
IS LARGELY ENERGY POLICY THAT
WILL CHANGE OR AT LEAST GET
SLOWED DOWN.
THE BIDEN CLIMATE CHANGE AGENDA
SLOWED DOWN SHOULD WE SEE A BIG
G.O.P. WIN.
BECAUSE IT IS ALL ABOUT
INFLATION.
I WOULD SAY THE ROOT CAUSE OF
INFLATION IS COVID-19 RELIEF
PACKAGE PAUSED INTO LAW 2021.
ALL THAT SPENDING MARCH OF 2021
PACKAGE AND THE OTHER PACKAGES
THAT WE HAVE SEEN HAS CREATED
$5 TRILLION IN BORROWING.
BUT IT IS THIS CLIMATE CHANGE
AGENDA THAT THE BIDEN
ADMINISTRATION IS PUSHING SO
AGGRESSIVELY THAT THE
REPUBLICANS WILL LIKELY WANT TO
CHANGE.
REPUBLICANS WILL CHANGE THAT
ENERGY AGENDA, ESPECIALLY WHEN
IT COMES TO CLEAN ENERGY.
THEY WILL PUSH BACK ON THE
CLIMATE CHANGE AGENDA.
AND SO THAT’S REALLY WHERE I’M
FOCUSED TONIGHT.
I SHOULD POINT OUT THAT THE
PRICE OF OIL HAS SKYROCKETED
SINCE PRESIDENT BIDEN STARTED
SELLING OIL FROM THE STRATEGIC
PETROLEUM RESERVE.
WE’RE TALKING ABOUT OIL NOW.
BACK UP TO THE $90 A BARREL
LEVEL.
EVEN THOUGH GASOLINE PRICES ARE
ABOVE WHERE THEY WERE WHEN JOE
BIDEN TOOK OFFICE OF COURSE THEY
ARE LOWER IN THE LAYEAR BUT
STILL ELEVATED.
ALL ABOUT INFLATION.
ANOTHER ISSUE THAT INVESTORS ARE
WATCHING WITH REGARD TO THE
ECONOMY IS RENT.
THOSE ESSENTIAL ITEMS, FOOD,
FUEL, AND -- FOOD, FUEL AND RENT
ARE THE REALLY MAIN ISSUES THAT
HAVE BEEN A PROBLEM FOR AMERICAN
FAMILIES.
RENT HAS NOT STOPPED RISING.
SO WE CONTINUE TO SEE RENT AS A
MAJOR ISSUE.
FOOD PRICES OFF OF THEIR HIGHS,
ALTHOUGH YOU ARE STILL TALKING ABOUT, FOR EXAMPLE, A DOZEN EGGS
ABOUT, FOR EXAMPLE, A DOZEN EGGS
UP 30% IN PRICE YEAR OVER YEAR.
INFLATION WITHIN INFLATION.
TONIGHT, INVESTORS WILL WANT TO
SEE REAL SUCCESS FROM THE G.O.P.
IN THOSE ENERGY PRODUCING STATES
TO FEEL THAT WE WILL SEE A
CHANGE.
THAT IS GOING TO BE ONE OF THE
MAIN ISSUES THAT REPUBLICANS
TAKE ON.
ALSO, OF COURSE, FISCAL
SPENDING.
I MENTIONED THE COVID RELIEF
PACKAGE AND ALL OF THE OTHER
SPENDING, 5 TRILLION IN
BORROWING.
IF THE REPUBLICANS CAN GET A
VICTORY IN A NUMBER OF THESE
STATES LIKELY SEE FISCAL
SPENDING SLOW DOWN AND THAT IS
ALSO SOMETHING THAT INVESTORS
WILL BE FOCUSED ON.
TOMORROW, I WILL SAY THIS, IF WE
SEE A BIG WIN BY THE G.O.P.,
EXPECT A BIG RALLY IN STOCKS
TOMORROW.
THE NEXT BIG CATALYST FOR
MARKETS AND THE ECONOMY COMES
THURSDAY WHEN WE GET THE NEXT
CONSUMER PRICE INDEX OUT.
THAT’S GOING TO BE FOR THE LAST
MONTH.
THE MONTH OF OCTOBER.
AND EVEN THOUGH WE ARE OFF OF
THE HIGHS, WHEN YOU LOOK AT THE
LAST SEVERAL MONTHS, YOU ARE
STILL TALKING ABOUT EXPECTATIONS
OF BETWEEN 8 AND 9% INCREASES IN
CONSUMER PRICES OVER THE LAST
YEAR.
YEAR OVER YEAR.
>> Bret: IF YOU WERE LISTENING
TO MARIA 2016 LATE IN THE NIGHT,
YOU MADE A LOT OF MONEY.
SO, QUICKLY, MARIA, DOES THE
MARKET LIKE DIVIDED GOVERNMENT?
>> THE MARKET DOES LIKE DIVIDED
GOVERNMENT.
AND THAT’S WHAT WE ARE LIKELY TO
SEE IF, IN FACT, THIS PANS OUT
IF THE REPUBLICANS ARE IN CHARGE
OF THE HOUSE AND SENATE AND THE
DEMOCRATS ARE IN CHARGE OF THE
WHITE HOUSE.
WHAT DOES THAT MEAN?
IT MEANS NOT A LOT GETS DONE.
AND INVESTORS LIKE THAT.
THEY DON’T WANT HIGHER TAXES AND
DON’T WANT TO SEE $80 BILLION
GOING TO THE IRS TO HIRE 87,000
IRS AGENTS.
THAT’S SOMETHING THAT KEVIN
McCARTHY HAS BEEN TALKING
ABOUT A LOT.
THAT’S ONE OF HIS PRIORITIES TO
OVERTURN IF, IN FACT, WE SEE HIM
TAKE THE GAVEL.
AND SO, THAT ALONG WITH TAXES,
IF THE G.O.P. WINS, AGAIN, IN A
BIG WAY TONIGHT, YOU DON’T
EXPECT TAX INCREASES FOR THE
NEXT TWO YEARS AT LEAST.
THAT’S ANOTHER THINGS THAT
MARKETS WILL CELEBRATE.
I WOULD EXPECT A PRETTY GOOD DAY