RUSH TRANSCRIPT Dagen time ░░░░░░░░ the word on Wall ░░░░░░░░ top investors watching your ░░░░░░░░ Joining me now mjp ░░░░░░░░ advisors president Brian Vendig ░░░░░░░░ senior vice president and ░░░░░░░░ portfolio manager bryce doty ░░░░░░░░ Musk is facing a ░░░░░░░░ after announcing plans to ░░░░░░░░ off 3 000 workers ░░░░░░░░ Twitter Musk violating California ░░░░░░░░ law that requires businesses ░░░░░░░░ 100 employees or more ░░░░░░░░ give 60 days notice ░░░░░░░░ mass layoffs or other ░░░░░░░░ disruptions Employees will find ░░░░░░░░ at noon eastern 9 ░░░░░░░░ A M Pacific time ░░░░░░░░ fate at Twitter Your ░░░░░░░░ to that and how ░░░░░░░░ fits into the overall ░░░░░░░░ picture that we ll ░░░░░░░░ reporting on later this ░░░░░░░░ Right At Twitter Musk ░░░░░░░░ an imperative and sense ░░░░░░░░ urgency to his job ░░░░░░░░ change the culture there ░░░░░░░░ they ll never survive ░░░░░░░░ given the price he ░░░░░░░░ for it But of ░░░░░░░░ many of those people ░░░░░░░░ just trying to censor ░░░░░░░░ that I m sure ░░░░░░░░ can get rid of ░░░░░░░░ many or more and ░░░░░░░░ sustain and improve the ░░░░░░░░ of the messages and ░░░░░░░░ freedom and creativity of ░░░░░░░░ on that particular platform ░░░░░░░░ really needs to broaden ░░░░░░░░ appeal across a broader ░░░░░░░░ of the American people ░░░░░░░░ than just this very ░░░░░░░░ narrative that has been ░░░░░░░░ by the far left ░░░░░░░░ And that s no ░░░░░░░░ to run a successful ░░░░░░░░ So he has to ░░░░░░░░ something He has to ░░░░░░░░ something of fast And ░░░░░░░░ these are the right ░░░░░░░░ that he needs to ░░░░░░░░ Now as it fits ░░░░░░░░ the broader employment picture ░░░░░░░░ have been in a ░░░░░░░░ since April of 21 ░░░░░░░░ the Biden supposed stimulus ░░░░░░░░ From that point on ░░░░░░░░ wages lagged inflation The ░░░░░░░░ of life has been ░░░░░░░░ on economically safety you ░░░░░░░░ violence People s main ░░░░░░░░ get through the day ░░░░░░░░ not being attacked by ░░░░░░░░ MAGA supporter as Biden ░░░░░░░░ a couple days ago ░░░░░░░░ re worried about real ░░░░░░░░ real violence getting carjacked ░░░░░░░░ like that Powell is ░░░░░░░░ having to clean up ░░░░░░░░ inflationary mess of those ░░░░░░░░ s inflationary problems He ░░░░░░░░ the solution is to ░░░░░░░░ rid of jobs This ░░░░░░░░ we re hoping for ░░░░░░░░ 200 000 plus jobs ░░░░░░░░ yet that will be ░░░░░░░░ news for the market ░░░░░░░░ thinks we need fewer ░░░░░░░░ That s a mistake ░░░░░░░░ have 47 of the ░░░░░░░░ working That s the ░░░░░░░░ reason for persistent shortages ░░░░░░░░ don t have enough ░░░░░░░░ in the labor force ░░░░░░░░ oil prices are up ░░░░░░░░ morning as President Biden ░░░░░░░░ the Strategic Petroleum Reserve ░░░░░░░░ the lowest level since ░░░░░░░░ 1980s What will be ░░░░░░░░ for crude oil is ░░░░░░░░ administration has to start ░░░░░░░░ back oil at high ░░░░░░░░ 91 a barrel on ░░░░░░░░ Texas intermediate That s ░░░░░░░░ 3 and a half ░░░░░░░░ gain this morning Your ░░░░░░░░ And I also Brian ░░░░░░░░ to get Follow up ░░░░░░░░ what bryce was talking ░░░░░░░░ about wages So companies ░░░░░░░░ raising prices for consumers ░░░░░░░░ not and they re ░░░░░░░░ hiring cutting jobs and ░░░░░░░░ passing on this inflation ░░░░░░░░ the form of wage ░░░░░░░░ Maybe that s great ░░░░░░░░ the Federal Reserve But ░░░░░░░░ morning the average hourly ░░░░░░░░ are only expected to ░░░░░░░░ up 4 7 That ░░░░░░░░ a decline from the ░░░░░░░░ month 4 7 when ░░░░░░░░ is running north of ░░░░░░░░ That is a real ░░░░░░░░ for workers Dagen great ░░░░░░░░ and good morning Yes ░░░░░░░░ let s talk about ░░░░░░░░ prices We ve seen ░░░░░░░░ energy prices have started ░░░░░░░░ increase again due to ░░░░░░░░ around the world from ░░░░░░░░ supply perspective Now energy ░░░░░░░░ did dip significantly earlier ░░░░░░░░ week with concerns that ░░░░░░░░ federal reserves was going ░░░░░░░░ significantly continue these unprecedented ░░░░░░░░ increases but we heard ░░░░░░░░ Chairman Powell that even ░░░░░░░░ we saw a 75 ░░░░░░░░ points or 0 75 ░░░░░░░░ this week going forward ░░░░░░░░ rate increases will lessen ░░░░░░░░ step down I think ░░░░░░░░ also are expecting China ░░░░░░░░ reopen their economy moving ░░░░░░░░ as they move through ░░░░░░░░ Covid lockdowns which I ░░░░░░░░ is also supporting a ░░░░░░░░ bit of the demand ░░░░░░░░ for energy prices but ░░░░░░░░ now dagen to your ░░░░░░░░ supply is the issue ░░░░░░░░ is probably going to ░░░░░░░░ energy prices elevated and ░░░░░░░░ inflation sticky and on ░░░░░░░░ wage side you re ░░░░░░░░ right Real wages year ░░░░░░░░ year are down due ░░░░░░░░ these elevated inflation aspects ░░░░░░░░ what Powell s hoping ░░░░░░░░ with these increased interest ░░░░░░░░ that we re going ░░░░░░░░ break the labor market ░░░░░░░░ a actually start to ░░░░░░░░ that unemployment believe it ░░░░░░░░ not would be going ░░░░░░░░ next year with the ░░░░░░░░ and concerns of a ░░░░░░░░ on the horizon I ░░░░░░░░ t think we ll ░░░░░░░░ a recession through the ░░░░░░░░ half of next year ░░░░░░░░ I think there s ░░░░░░░░ higher probability for unemployment ░░░░░░░░ go up and a ░░░░░░░░ to hit in the ░░░░░░░░ half of the year ░░░░░░░░ honestly going back many ░░░░░░░░ dagen to look at ░░░░░░░░ data we don t ░░░░░░░░ inflation many coming down ░░░░░░░░ we see unemployment going ░░░░░░░░ and trying to control ░░░░░░░░ wage increases that you ░░░░░░░░ speaking of Dagen right ░░░░░░░░ I got a notice ░░░░░░░░ increase in my electric ░░░░░░░░ here in New York ░░░░░░░░ and 10 increase in ░░░░░░░░ cost of apple music ░░░░░░░░ I was in the ░░░░░░░░ store I was asking ░░░░░░░░ employees have you gotten ░░░░░░░░ wage increase They just ░░░░░░░░ prices on apple music ░░░░░░░░ There s a hiring ░░░░░░░░ You getting a pay ░░░░░░░░ No It benefits the ░░░░░░░░ But it screws employees ░░░░░░░░ and over again That ░░░░░░░░ kind of what we ░░░░░░░░ seeing broadly is wages ░░░░░░░░ not keeping up with ░░░░░░░░ and the price increases ░░░░░░░░ spiral not a wage ░░░░░░░░ spiral Maybe that s ░░░░░░░░ for the Federal Reserve ░░░░░░░░ you gentlemen Brian bryce ░░░░░░░░ well Coming up Xi ░░░░░░░░ reportedly Advisors president Brian ░░░░░░░░ and senior vice president ░░░░░░░░ senior portfolio manager bryce ░░░░░░░░ Elon Musk is facing ░░░░░░░░ lot after announcing plans ░░░░░░░░ lay off 3 000 ░░░░░░░░ at Twitter Musk violating ░░░░░░░░ a law that requires ░░░░░░░░ with 100 employees or ░░░░░░░░ to give 60 days ░░░░░░░░ of mass layoffs or ░░░░░░░░ work disruptions Employees will ░░░░░░░░ out at noon eastern ░░░░░░░░ 00 A M Pacific ░░░░░░░░ their fate at Twitter ░░░░░░░░ reaction to that and ░░░░░░░░ it fits into the ░░░░░░░░ jobs picture that we ░░░░░░░░ be reporting on later ░░░░░░░░ morning Right At Twitter ░░░░░░░░ has an imperative and ░░░░░░░░ of urgency to his ░░░░░░░░ to change the culture ░░░░░░░░ or they ll never ░░░░░░░░ especially given the price ░░░░░░░░ paid for it But ░░░░░░░░ so many of those ░░░░░░░░ are just trying to ░░░░░░░░ people that I m ░░░░░░░░ he can get rid ░░░░░░░░ that many or more ░░░░░░░░ still sustain and improve ░░░░░░░░ integrity of the messages ░░░░░░░░ the freedom and creativity ░░░░░░░░ speech on that particular ░░░░░░░░ He really needs to ░░░░░░░░ the appeal across a ░░░░░░░░ swath of the American ░░░░░░░░ rather than just this ░░░░░░░░ narrow narrative that has ░░░░░░░░ controlled by the far ░░░░░░░░ frankly And that s ░░░░░░░░ way to run a ░░░░░░░░ business So he has ░░░░░░░░ do something He has ░░░░░░░░ do something of fast ░░░░░░░░ this these are the ░░░░░░░░ moves that he needs ░░░░░░░░ make Now as it ░░░░░░░░ into the broader employment ░░░░░░░░ people have been in ░░░░░░░░ recession since April of ░░░░░░░░ with the Biden supposed ░░░░░░░░ bill From that point ░░░░░░░░ real wages lagged inflation ░░░░░░░░ quality of life has ░░░░░░░░ going on economically safety ░░░░░░░░ mentioned violence People s ░░░░░░░░ concerns get through the ░░░░░░░░ is not being attacked ░░░░░░░░ a MAGA supporter as ░░░░░░░░ said a couple days ░░░░░░░░ They re worried about ░░░░░░░░ crime real violence getting ░░░░░░░░ things like that Powell ░░░░░░░░ stuck having to clean ░░░░░░░░ the inflationary mess of ░░░░░░░░ administration s inflationary problems ░░░░░░░░ thinks the solution is ░░░░░░░░ get rid of jobs ░░░░░░░░ morning we re hoping ░░░░░░░░ 200 200 000 plus ░░░░░░░░ and yet that will ░░░░░░░░ bad news for the ░░░░░░░░ He thinks we need ░░░░░░░░ jobs That s a ░░░░░░░░ We have 47 of ░░░░░░░░ population working That s ░░░░░░░░ big reason for persistent ░░░░░░░░ We don t have ░░░░░░░░ people in the labor ░░░░░░░░ Dagen oil prices are ░░░░░░░░ this morning as President ░░░░░░░░ shrinks the Strategic Petroleum ░░░░░░░░ to the lowest level ░░░░░░░░ the 1980s What will ░░░░░░░░ inflationary for crude oil ░░░░░░░░ the administration has to ░░░░░░░░ buying back oil at ░░░░░░░░ prices 91 a barrel ░░░░░░░░ west Texas intermediate That ░░░░░░░░ almost 3 and a ░░░░░░░░ percent gain this morning ░░░░░░░░ reaction And I also ░░░░░░░░ want to get Follow ░░░░░░░░ on what bryce was ░░░░░░░░ about about wages So ░░░░░░░░ are raising prices for ░░░░░░░░ but not and they ░░░░░░░░ freezing hiring cutting jobs ░░░░░░░░ not passing on this ░░░░░░░░ in the form of ░░░░░░░░ gains Maybe that s ░░░░░░░░ for the Federal Reserve ░░░░░░░░ this morning the average ░░░░░░░░ earnings are only expected ░░░░░░░░ be up 4 7 ░░░░░░░░ s a decline from ░░░░░░░░ previous month 4 7 ░░░░░░░░ inflation is running north ░░░░░░░░ 8 That is a ░░░░░░░░ hardship for workers Dagen ░░░░░░░░ points and good morning ░░░░░░░░ so let s talk ░░░░░░░░ energy prices We ve ░░░░░░░░ the energy prices have ░░░░░░░░ to increase again due ░░░░░░░░ concerns around the world ░░░░░░░░ a supply perspective Now ░░░░░░░░ prices did dip significantly ░░░░░░░░ this week with concerns ░░░░░░░░ the federal reserves was ░░░░░░░░ to significantly continue these ░░░░░░░░ rate increases but we ░░░░░░░░ from Chairman Powell that ░░░░░░░░ though we saw a ░░░░░░░░ basis points or 0 ░░░░░░░░ increase this week going ░░░░░░░░ those rate increases will ░░░░░░░░ or step down I ░░░░░░░░ we also are expecting ░░░░░░░░ to reopen their economy ░░░░░░░░ forward as they move ░░░░░░░░ these Covid lockdowns which ░░░░░░░░ think is also supporting ░░░░░░░░ little bit of the ░░░░░░░░ picture for energy prices ░░░░░░░░ right now dagen to ░░░░░░░░ point supply is the ░░░░░░░░ which is probably going ░░░░░░░░ keep energy prices elevated ░░░░░░░░ keep inflation sticky and ░░░░░░░░ the wage side you ░░░░░░░░ absolutely right Real wages ░░░░░░░░ over year are down ░░░░░░░░ to these elevated inflation ░░░░░░░░ but what Powell s ░░░░░░░░ for with these increased ░░░░░░░░ rates that we re ░░░░░░░░ to break the labor ░░░░░░░░ And a actually start ░░░░░░░░ support that unemployment believe ░░░░░░░░ or not would be ░░░░░░░░ up next year with ░░░░░░░░ risks and concerns of ░░░░░░░░ recession on the horizon ░░░░░░░░ don t think we ░░░░░░░░ see a recession through ░░░░░░░░ first half of next ░░░░░░░░ but I think there ░░░░░░░░ a higher probability for ░░░░░░░░ to go up and ░░░░░░░░ recession to hit in ░░░░░░░░ second half of the ░░░░░░░░ and honestly going back ░░░░░░░░ decades dagen to look ░░░░░░░░ the data we don ░░░░░░░░ see inflation many coming ░░░░░░░░ u we see unemployment ░░░░░░░░ up and trying to ░░░░░░░░ those wage increases that ░░░░░░░░ re speaking of Dagen ░░░░░░░░ Yesterday I got a ░░░░░░░░ 22 increase in my ░░░░░░░░ bills here in New ░░░░░░░░ City and 10 increase ░░░░░░░░ the cost of apple ░░░░░░░░ So I was in ░░░░░░░░ apple store I was ░░░░░░░░ the employees have you ░░░░░░░░ a wage increase They ░░░░░░░░ raised prices on apple ░░░░░░░░ 10 There s a ░░░░░░░░ freeze You getting a ░░░░░░░░ raise No It benefits ░░░░░░░░ company But it screws ░░░░░░░░ over and over again ░░░░░░░░ s kind of what ░░░░░░░░ re seeing broadly is ░░░░░░░░ are not keeping up ░░░░░░░░ inflation and the price ░░░░░░░░ they spiral not a ░░░░░░░░ price spiral Maybe that ░░░░░░░░ good for the Federal ░░░░░░░░ Thank you gentlemen Brian ░░░░░░░░ be well.