IS ASKING FOR HIM TO BE RELEASED
ON $250,000 BAIL.
COULD WE LOOK QUICKLY AT APPLE
SHARES?
APPLE RIGHT NOW IS ON THE MOVE.
IT IS TRADING UP ABOUT JUST HALF
A PERCENT AT THIS HOUR AFTER
BLOOMBERG NEWS REPORTED THE
COMPANY IS PREPARING TO
ALLOW ALTERNATIVE APP STORES ON
ITS IPHONES AND IPADS.
ACCORDING TO THE REPORT,
CUSTOMERS COULD ULTIMATELY
DOWNLOAD THIRD PARTY SOFTWARE TO
THEIR IPHONES AND IPADS WITHOUT
USING THE COMPANY’S APP STORE,
HENCE SIDE-STEPPING APPLE’S
RESTRICTIONS AND THE UP TO 30%
COMMISSION IT IMPOSES ON PAYMENT
S.
THIS IS VERY INTERESTING,
CONSIDERING TWITTER HAS JUST
PUSHED BACK ON THAT SAYING IT
WOULD CHARGE IPHONE USERS $3
MORE FOR TWITTER BLUE BECAUSE,
OF COURSE TWITTER WOULD HAVE TO
PAY ON THE APP THAT 30%
COMMISSION.
IN THE MEANTIME THE IPHONE MAKER
STORY VERY INTERTWINED WITH
CHINA AND WE SHOULD TELL YOU
THAT PART OF THE MOMENT WHEN THE
MARKETS LOST ALMOST ALL OF
THEIR GAINS, I MEAN THE DOW AS
WE SAID HAD BEEN UP 700
POINTS EARLIER TODAY WAS WHEN
THIS HIT THE TAPE.
COVID-19 CASES ARE RISING IN
BEIJING, JUST DAYS AFTER THE
GOVERNMENT ANNOUNCED PLANS
TO RELAX ITS ZERO-COVID POLICY.
CHINA ANNOUNCED THAT IT HAD BEEN
LOOSENING RESTRICTIONS LAST WEEK
BOOSTING CHINA STOCKS AS
INVESTORS HOPE IT BE THE
FIRST STEP IN THE COUNTRY
TO FULLY REOPEN, BUT BILLIONAIRE
INVESTOR MARIO GABELLI IS HERE
IN A FOX BUSINESS EXCLUSIVE WITH
HIS TAKE ON WHEN CHINA COULD
ACTUALLY REOPEN AND HE’S PUSHING
IT WAY OUT TO 2024, THE GAMCO
INVESTOR AND CHAIRMAN
AND CEO JOINS ME NOW.
GREAT TO SEE YOU, MARIO.
YOU AND I WERE TALKING ON THE
PHONE YESTERDAY AND YOU MADE
THIS POINT I THOUGHT WAS REALLY
SMART.
YOU SAID YOU UNMASK THE PUBLIC
IN CHINA, BECAUSE THEY DON’T
HAVE THOSE MRNA VACCINES AND
YOU’VE GOT A BIG PROBLEM.
HOW DO YOU VIEW CHINA RIGHT NOW?
>> WELL, IT’S EASIER FOR ME TO
PREDICT THE OUTCOME OF THE
ARGENTINA-CROATIA GAME NOW
THAT ARGENTINA IS UP 3-0 OR
TOMORROW TALK ABOUT THE FED AT
2:00.
CHINA IS CHINA.
IF WE DON’T LOOK AT COUNTRIES OR
DEVELOPING MARKETS, ALL WE LOOK
AT IS LIKE THE IMF, THE
INTERNATIONAL MONETARY FUND
THAT SAYS THE WORLD ECONOMY IN
2023 IS GOING TO BE 108 TRILLION
, CHINA WILL BE 20%
OF THAT SO YOU HAVE TO FOCUS ON
IT.
IT’S NOT CHINA 1981.
IT’S CHINA TODAY OF 2023 AND
WHAT IS THE OUTLOOK?
NOW IF YOU’VE JUST BEEN, WHAT IS
YOUR PROGRAM?
COMMON PROSPERITY.
YOU’VE GOTTA WORRY ABOUT COVID
BUT YOU WORKED WITH, HOW DID
HONG KONG HANDLE IT?
WHAT IS GOING TO HAPPEN WHEN A
YEAR FROM NOW AND NINE MONTHS
FROM NOW HOW ARE THEY GOING TO
HANDLE CURRENCY, AND HANDLE
CHINA ONE POLICY?
HOW ARE THEY GOING TO HANDLE
CHILDREN?
THEY NEED MORE CHILDREN.
LIZ: THEY NEED MORE KIDS.
>> SO THIS IS A MIX.
YEAH, FROM MY POINT OF VIEW YOU
HAVE 1.4 BILLION PEOPLE PLUS OR
MINUS, AND BASICALLY, YOU HAVE
20% OF THEM HAVE TIGER MOMS THEY
WORK AND THEY WILL BE CREATIVE
AND INVENTIVE AND WE AS A GLOBAL
ECONOMY HAVE TO INCLUDE THEM IN
THAT PROCESS, AND WE AS A
COUNTRY HAVE TO BE SENSITIVE
ABOUT THE CHALLENGES OF
INCLUDING THEM.
SO FROM MY POINT OF VIEW --
LIZ: MARIO, I HEAR OTHER PEOPLE
AT OTHER BUSINESS NETWORKS SAY
CHINA’S UNINVESTABLE.
DO YOU AGREE WITH THAT?
>> WELL, IF I HAVE A COMPANY
THAT’S LOCATED IN XYZ STATE
LET’S MAKE, UM, NEW YORK, AND I
DON’T LIKE WHAT THE MANAGEMENT
IS DOING, I CAN TAKE AN ACTIVIST
ROLE AND START TAKING OF THE
POSITION THAT SAYS HEY,
YOU’VE GOT TO CHANGE THIS OR
I’M GOING TO VOTE AGAINST YOU.
I’M NOT SURE I WOULD FEEL
COMFORTABLE DOING THAT IN
SHANGHAI OR IN ANY PLACE ELSE,
SO THAT’S A LEARNING CURVE FOR
ME.
I THINK EVERYTHING IS INVESTABLE
BUT AT THE MOMENT, IT’S A
QUESTION OF WHAT PRICE DO I PAY.
LOOK, OUR PHILOSOPHY IS FAIRLY
SIMPLE.
THAT’S A GOOD QUESTION YOU ASK.
WE WANT TO BUY A GOOD BUSINESS,
WITH GOOD MANAGEMENT, AT A
DECENT VALUATION AND THE
VALUATIONS IN CHINA ARE
GETTING TO BE QUITE INTERESTING.
THAT DOESN’T MEAN WE’RE GOING TO
BUY THINGS.
ON THE SIDE OF THE COIN DO WE
LIKE CONSUMER PRODUCTS AND DO WE
LIKE THE FACT AVATAR, AND I WAS
JUST READING VARIETY, LOOK THIS
IS OPENING TOMORROW NIGHT.
IN CHINA IT’S ONE OF THE 28
MOVIES THEY PICKED.
NOW IS ANYBODY GOING TO A MOVIE
THEATRE?
MAYBE AND WE’LL SEE WHAT HAPPENS
SO THERE’S A LOT OF DYNAMICS
GOING ON.
FROM MY POINT OF VIEW WHAT I’D
LIKE TO SEE IS CONTINUED RESUR
ING OF AMERICAN COMPANIES
BUILDING UP THEIR SUPPLY CHAIN,
SHORTENING IT, GETTING LESS
INVOLVED AND ON-TIME DELIVERY OF
GOODS AND WHOSE GOING TO BENEFIT
FROM THAT?
THE SECOND PART, LIZ, IS YOU
TALKED ABOUT BOEING AND UNITED
AIRLINES.
WELL JUST THINK ABOUT THE NUMBER
OF 737’S THAT CHINA NEEDS.
THE 919 IS GOING TO WORK BUT
IT’S NOT GOING TO BE BOUGHT AND
SOLVE THE PROBLEM.
THEY WILL SOLVE IT BY BUYING
BOTH.
LIZ: I WAS THINKING ABOUT THIS
THEY LOVE TO FLY FROM
MAINLAND CHINA TO MACAU.
YOU GOT ANY GAMBLING STOCKS THAT
YOU FEEL CAN REALLY PROFIT FROM
THAT?
>> WELL, AT THE MOMENT, THEY
HAVE ANNOUNCED THE EXISTING
CONCESSION WILL CONTINUE TO HOLD
THAT FROM THE POINT OF VIEW OF
THE GAMING GROSS GAMING REVENUES
, I THINK THE NUMBERS
NOW LIKE X BILLIONS OF DOLLARS
VERSUS 2019.
SOME OF THE CHINESE HAVE GONE
AND PLAYED IN SINGAPORE.
FROM OUR POINT OF VIEW, WE ARE
VERY SENSITIVE ABOUT MGM.
WE STRIP OUT THE AMOUNT OF
OWNERSHIP THAT THEY OWN AND
THESE COMPANIES MARK-TO-MODEL.
FROM MY POINT OF VIEW IT’S ONE
NARROW WORLD AND MY POINT OF
VIEW TOMORROW AT 2:00 WE’LL SEE
WHAT THE UNITED STATES DOES
WITH THE RATES, THE RUNOFF THE
RHETORIC HE’S GOING TO HAVE.
INDEPENDENT OF THAT, WHAT DO I
LIKE?
YOU KNOW, I LIKE THE NOTION OF
THE AMERICAN FARMER.
THE CHINESE NEED FOOD.
THEY ARE GOING TO IMPORT AND GO
FOR BRAZIL AND UKRAINE AND
RUSSIA OR ARE THEY GOING TO TRY
TO GET IT FROM CANADA?
THE UNITED STATES FARMER, THIS
YEAR, THIS YEAR, THEY ARE
GOING TO GENERATE 550 BILLION
PLUS OR MINUS DOLLARS VERSUS
425 A YEAR AGO.
THEY WANT EQUIPMENT THAT WILL
ALLOW THEM TO SIT BACK AND
OPERATE THEIR EQUIPMENT.
LIZ: SO WHAT’S YOUR NAME THERE?
>> I HAVE TWO COMPANIES.
I LIKE JOHN DEERE, THE STOCKS
GOT 300 MILLION SHARES, SELLS AT
$400 A SHARE, THAT’S 120-ODD
BILLION, LITERALLY THEY HAD $27
BUT MY PREFERRED BUYER AT THE
MOMENT IS A COMPANY CALLED CASE
NEW HOLLAND CNHI, 1.3 BILLION
SHARES, $2 BILLION OF DEBT THEY
EARN A BUCK 50 THIS YEAR MAYBE $
2 NEXT YEAR AND BASICALLY THEY
HAVE A NEW CEO, SCOTT VINE, THE
COMPANY SPUN OFF THEIR
TRUCKING BUSINESS BACK AT THE
BEGINNING OF THIS YEAR.
LAST YEAR AT THIS TIME IT WAS
SPUN OFF, AND SO THE STOCK IS
SELLING AT ABOUT $16.
I THINK THAT IS VERY ATTRACTIVE
WAY.
IN ADDITION TO THAT, JUST THINK
ABOUT WHAT THE NORTH KOREA AND
SOMEBODY PUT A CIRCLE ON HOW FAR
THEIR MISSILES CAN TRAVEL.
WELL, THE DEFENSE SYSTEM IS LIKE
, YOU KNOW, LIKE THE
MARGINAL LINE IN 1938 IN
EUROPE OR 1937 AND BASICALLY,
WE NEED TO REFRESH THAT AND ONE
OF THE COMPANIES WE LIKE THAT IS
VERY GOOD IN HYPERSONICS, IT’S
AIR O JET GENERAL.
THE STOCK IS 54.
THERE’S 80 BILLION SHARES OUT
GOT ABOUT A COUPLE HUNDRED
MILLION OF CASH, SOME LAND IN
SACRAMENTO THAT’S VERY VALUABLE
AND LOCKHEED TRY TO BUY IT AND
THIS WAS TURNED DOWN BY THE
GOVERNMENT BEFORE AND RUSSIA
THEN HAS A GROUND WAR THAT
HASN’T TAKEN PLACE.
LIZ: RIGHT AND PUTIN HAS BEEN
USING THESE HYPERSONIC MISSILES
AND NORTH KOREA PROBABLY HAS THE
TECHNOLOGY SO SHOULDN’T WE?
>> WELL, I THINK A LOT OF
ORGANIZATIONS OR COUNTRIES HAVE
THEM AND OBVIOUSLY, BUT YOU HAVE
A COMPANY THAT HAS THAT
CAPABILITY BUT IT DOESN’T HAVE
THE TERRIFIC BALANCE SHEET THAT
SOMEONE CAN BRING TO THE TABLE
TO ACCELERATE THAT.
FOR EXAMPLE, THE ONES THAT PUT
THE ROCKET ENGINES ON THEY HAVE
THE SPACE FORCE IN THE UNITED
STATES IS VERY IMPORTANT TO THEM
, AND SO THE STOCK SELLING
AT 54, WE THINK ANOTHER DEAL
WILL COME.
ANOTHER COMPANY LIKE THAT, FOR
EXAMPLE, WE HAVE "BLACKHAWK" UP.
IN OTHER WORDS THE "BLACKHAWKS"
ARE GOING TO BE REPLACED.
A COMPANY CALLED TEX DRAWN WITH
GREAT MANAGEMENT, GOOD BUSINESS,
THEY HAVE COMMERCIAL AVIATION, BELL HELICOPTER, THEY JUST GOT A
BELL HELICOPTER, THEY JUST GOT A
CONTRACT CALLED FLORA, FUTURE
STRATEGIC ASSAULT, LONG RANGE
ASSAULT VEHICLES, AND I GOT THAT
WRONG, BUT BASICALLY THAT’S
GOING TO BE A FAIRLY SIGNIFICANT
CONTRACT.
THE STOCK IS SELLING AT $74 AND
THERE’S A 200 ODD MILLION SHARES
OUT AND WE THINK THAT ONE THERE
IS GOING TO DO EXTREMELY WELL SO
AND ANOTHER ONE THAT’S DOING
FINANCIAL ENGINEERING, LIZ, IS
CRANE.
LIZ: WE COULD BE HERE ALL DAY
AND I WISH WE COULD.
>> ALL THE TIME.
THANK YOU.
LIZ: THANK YOU SO VERY MUCH,
SUCH AN ORIGINAL TO HAVE YOU.
>> ALWAYS A PRIVILEGE TO BE