IT'S STARTING... Fed warning, Musk, & Pete Hegseth | Meet Kevin Report 9 [Jan 14]

so Elon muscot sued and even though

inflation numbers came in way better

than expected we had a funky market

today what is that going to tell us for

tomorrow and what just happened

regarding layoffs and who's this Pete

guy that literally everybody keeps

talking about when it comes to the

Secretary of Defense let's go through

all of this along with getting you a

little bit of a fire update we're going

to keep this one short and sweet since

I'm a little bit behind today but a lot

of progress being made in the studio

which is really exciting because we're

going to be coming to you with 4K live

streams soon especially for the

inauguration very excited anyway let's

get started with today's meet Kevin

report news that makes you wel okay so

first thing first PPI this morning came

in shockingly low and my expectation was

that if we were going to get a low PPI

read well then we would have seen a

potential rally in the stock market so

we didn't get that I don't know if it's

because everybody's just waiting for CPI

tomorrow which I'll give you some of the

estimates and that way if you're

watching this for you know if you're

watching this after cpi's already out

you can kind of compare to what the

expectations are and then we can still

talk about all of the other goodies

including layoffs and what's going on

with micro at various different

companies uh by the way speaking of

micro Jim Kramer says that you should

sell super micro computers I think

that's about the most bullish thing I've

ever heard uh anyway so PPI this morning

the expectation was that it was going to

come in at 0.4 on the month over month

we got 0. 2 which is phenomenal it came

in way lower than expected that's on the

headline number which includes energy

gas oil these are December numbers right

month-over-month core came in at Zero

versus the3 expected uh producer prices

less food energy and trade so a further

category of core came in at 0.1 versus.

3 expected the annual figures both came

in. 2 and. 3% lower than expected

overall these numbers were just good

good so why were markets not very

enthusiastic today well probably because

everybody's just waiting for the

Consumer Price Index tomorrow now both

pieces of the CPI and PPI come together

to come up with the pce which is what

the Federal Reserve uses to keep Hawking

the problem is you're an environment

where right now everybody doesn't even

really care anymore about these one-off

reports people are almost convinced

whether right or wrong that the Federal

Reserve is just going to stop with their

rate reduction process and as a result

sorry for these noises here there we go

let's get that fixed as a result of this

process what it'll end up happening is

you'll end up getting a Federal Reserve

that just goes too far but markets don't

price in the recession or go too far

apart What markets just do first is they

say whatever If the Fed ain't going to

cut rates anymore sell bonds especially

the long longer end of the curve that's

exactly what you're seeing so even

though we got great PPI numbers this

morning what ended up happening interest

rates went up to 4.8% on the 10 year

like this it is very Topsy Turvy and it

is usually exactly this kind of behavior

that ends up leading a

market to start doing a little bit more

poorly it's not great I'm not happy

about hearing it because eventually

those rates bite and when those rates

bite you get layoffs now layoffs aren't

necessarily bad I mean look meta for

example is cutting 5% of the jobs at

their company they're cutting their

quote unquote the lowest performing

workers which honestly if anybody on

their resume says that they stopped

working at meta around January of 2025

they're going to be attached to that

label and it's kind of like you're

branding people by firing them and

saying that so I feel really bad for

anybody who's getting laid off under the

assumption that they're the lower

performing worker that's going to be a

hard one for people to shake uh at least

for hirers who are paying attention but

Zuck says that 2025 is going to be a

quot intense year and they plan to

rehire but they don't indicate when they

plan to rehire now what's more important

here is not that they plan to rehire but

look them doing layoffs like I was

leading into them doing layoffs is not

what matters they cut a lot of Staff in

2022 and 2023 like 10% of their staff

you know twice as much as they're

cutting

now but those years were different and

I'm not saying this time is different

I'm saying those years had layoffs when

the broader Market still had two job

openings for every available worker so

you didn't really have to worry about a

worker going out and not being able to

find a job because there were so many

available jobs now people are getting

laid off and they're getting dumped into

an environment where it's taking longer

to get a job sometimes up to 6 months

for a tech worker to get a job and

you're getting more or cuts at other

businesses at the same time when the

unemployed to available job Gap is a 1:1

ratio right now which you start getting

some of these layoffs here in January

February March you're going to start

having fewer jobs available than there

are workers unemployed that's what

starts slowing an economy down and why

your business is doing it well Microsoft

literally took the words out of my mouth

because I've been warning about it for a

very long time Microsoft is pausing

hiring in its Consulting unit as well as

laying off about 1% of our workers to

help earnings it's the same thing that's

going on with JP Morgan everybody's got

to come back to work yeah it's a way to

quiet fire people you've got uh lineage

the um refrigerator uh the warehouse

refrigerating company you know they they

stock all the tattoo Chef oh uh they

stock all the uh you know Frozen Goods

or whatever for various different

distributors uh they ipoed 6 months ago

and and now they're already issuing a

bunch of layoffs Wayfair is cutting 3%

of its work force a lot of that in

Germany so these are all just

announcements we got today and we're

only on day 14 like we haven't even hit

inauguration yet now what's interesting

is musk Bezos Zuckerberg they're all

going to the inauguration by the way

Michelle Obama is not that'll be next

Monday we'll be covering that live

obviously on the channel uh but the the

layoffs are beginning so we're going to

want to pay attention to that which I

think this recipe is so weird the market

reacting poorly to good inflation

numbers

at the same time as getting layoffs at

the same time as the market

thinking listening to the FED basically

saying everything's fine there's nothing

to worry about and they're like all

right said everything's fine so they

wash their hands of bonds driving yields

up which actually creates more pressure

on these companies to lay off more

people I I don't know how I feel about

it I don't feel very good about that oh

well uh we'll see what happens uh Elon

Musk on the other hand has also now

gotten sued for failing to report the

acquisition of more than the 5% Twitter

stake all right now this this has two

sides here supporters of Elon Musk say

this is just law fair that is the

easiest argument to make that anytime

anybody you like who is on on the right

side of the political Spectrum uh gets

Accused by anything the immediate go-to

is oh it's law

fair okay uh supporters uh also argue

that it doesn't really matter if Elon

Musk acquired more than 5% because he

overpaid for the stock anyway so what

are you complaining about the company

lost like half of its value after he

bought it now maybe it'll be worth more

in the future it it's more worth now

maybe who knows but we're not there yet

we're not in the future we're in a place

where hey at that time he bought and the

value went down so supporters are like

look if anything it was good he overpaid

and other people say this is just law

fair right so that's sort of the

supporter argument others say none of

that matters and Elon just simple fact

failed to report his trades on time all

right so here's the background US

District Judge Andrew Carter said

shareholders in a proposed class action

lawsuit could try to prove that musk

intended to defraud them by waiting 11

days past the US SEC deadline to reveal

that he bought a 5% stake in Twitter

usually once you own 5% of a company

you're supposed to post a notice that

hey I now own 5% of a company it's a

public filing with the SEC you have a

deadline to do that Elon Musk missed

that by waiting 11 days past the filing

deadline shareholders then and these are

these are from you know cases that have

been going on there are a couple cases

one in Delaware I think one's in Rhode

Island but there are a couple cases that

have been going on against musk really

since earlier this year and and uh since

2022 when he first made his Acquisitions

that's when a lot of these problems took

place but anyway shareholders led by an

Oklahoma firefighter pension fund said a

musk saved more than $200 million by

adding to his Twitter stake and quietly

talking with its Executives about his

plans before disclosing the 99.2% stake

in April of 2022 now again in

hindsight it's obvious you know for the

shares he overpaid for it I mean he

overpaid so badly at the time that he

wanted to get out of the deal he wanted

to cancel the deal saying Twitter was

full of bots I was at the all-in summit

when when he was complaining about this

when he showed up on Zoom which was kind

of lame but anyway he was supposed to

show up in person but anyway uh he's

like oh you're not buying a a you know a

house you're buying a termite making a

reference to real estate and and the

house being infested with termites which

you go down into the real estate

analogies at least with a house you can

get rid of the termites Elon still

hasn't gotten rid of the Bots uh but

anyway so look obviously at the time we

don't know what would happen in the

future but if you go back to 2022 while

this was all happen happening when

people saw that Elon wanted to start

buying shares of X well now X then

Twitter other people wanted to join and

they wanted to buy shares as well and

because Elon failed to disclose the

stake until later yes that news of him

wanting to buy it didn't break until

later now obviously when he wanted to

cancel the deal Twitter fell the entire

stock market fell so maybe Elon wanted

to cancel because the entire stock

market was falling maybe he wanted to

cancel because he thought he overpaid it

do doesn't really matter whether the

stock went up or down really has no

bearing on the fact the fact is he made

an oopsy doopsy on the timing now should

the SEC just go all right A lot of

people make an oopsy doopsy here's a

$5,000 fine

whatever maybe but now the SEC is suing

Elon Musk is it possible they put a

highlighter through his name because

he's Elon Musk and he's associated with

Trump and right now the SEC is still led

by Gary Gensler who is like the opposite

of you know Camp

Trump yeah totally and that's where the

lawfare argument comes in so I could see

both sides but it's very important to

know there are actually two sides here

and it obviously takes a lot longer than

you know a single tweet to explain this

hence why I'm explaining it here because

I think that people who watch these meet

Kevin reports really value perspective

and I really do my best to try to give

both sides of the perspectives which now

I'm going to give you both sides of

perspectives of uh on on on Pete heg

Seth who uh had his secretary of defense

confirmation hearing this morning well

at least round one of questioning uh so

I'm just going to hit the drama point so

I watched this for like hours this

morning while I was building the studio

by the way I'm still not done building

the studio so forgive me like things are

clunky I don't have my cameras on the

right place yet the lighting isn't right

yet it's it's been a lot I think I'm 50

to 80% of the way there I'm somewhere in

that range I've still got you know

probably another 6 hours of finalizing

in here to do but anyway the biggest

drama points that have come up so far I

can't believe that this is one of them

but uh apparently Pete has a tattoo of

the Jerusalem cross uh which has been

seen popularized during the Crusades on

Shields or the code of arms for various

different uh uh you know I mean quite

frankly it was on a Cod of arms for the

city of Jerusalem at one point it's on

the flag of Georgia which is a country

not the state

uh it's a symbol of Christianity it's a

symbol of Christ it's literally

inscribed into the floor of the church

where Jimmy Carter was put to rest like

this is a pretty common symbol but some

people see it as a symbol of like

Christianity is the best or white

supremacy or or whatever I don't see it

as that I think people are trying to

make something out of nothing here but I

just want to mention it uh there are

representations of this going back again

to the Crusades but even before that

some people say the sort of large cross

in the middle and then the uh four

crosses to the side symbolize Christ and

uh his Five Wounds some say it

symbolizes Christ and his four gospels

some say it represents Christianity in

the middle and then the spread to the

four corners of the world that's when

they thought the Earth was flat anyway

he was a former Army National Guardsman

uh he served at Guantanamo Bay Iraq

Afghanistan multiple different duties I

I don't really understand fully the

whole like wait National Guard but then

deployed I I'm just going to be frank

there if somebody can give me an

explanation on that in in the comments

that'd be great so I'm just going to

leave it at that okay after he served uh

for multiple years and and on on various

different Duty tours he became a fox

contributor in 2024 and became a co-host

with Kennedy in 2018 now Kennedy's I I

like Kennedy she was a big fan of me

when I ran for governor I've we've we've

got a lunch together in man hatan I mean

she's she's a wonderful person I think

she's great and I saw her on Fox uh I

think it was this morning actually and

uh her house survived so far knock on

wood uh the fire because she's got a

house over here as well but anyway the

largest criticism of Pete so far uh have

really been based on his potential or

alleged treatment of women now I don't

know but it does seem like Pete based on

what I saw and his testimony he kind of

seems like he admits to cheating on his

second wife and then having now a

seven-year-old daughter with now his

third

wife that uh combined with comments that

he's made on podcasts and books that

women shouldn't serve in combat roles uh

and that standards shouldn't be lowered

for women a lot of people agree with

that by the way a lot both well I mean

some people agree with both of those

some people agree with just the second

one that standard shouldn't be lowered

right uh yeah I think I think a woman

that any woman that could meet the

standards that sort of the average

enrolled dude meets fine with me that

but that that's my take my opinion

doesn't so much matter though uh but um

it does not help that in 2018 his very

mother so 6 years ago he's 44 so when he

was 38 when he was 38 his mother wrote

in an email I have no respect for any

man that belittles lies cheats sleeps

around and uses women for his own power

and ego you are that man and have been

for years and as your mother it pains me

and embarrasses me to say but it is the

sad sad truth now in an interview with a

New York Times his mother regrets that

and says she she wrote that in Anger

during the divorce and followed it up

with an apologetic email blah

blah my point is look he's got some

blemishes but then again who does it

everybody's got some oopsy dupsies and

I'm not trying to dismiss cheating uh

you know I'm not that is that is not my

my job here to do at all uh don't cheat

okay but in this case this is what they

are trying to get against him now there

are also allegations that he potentially

uh had inappropriate personal uh conduct

or uh you know ultimately there are

allegations here of financial

mismanagement as well when he was

working for certain organizations such

as the Veterans for freedom and

Concerned Veterans for America

groups uh he ended up stepping aside

from those rules through some of these

allegations uh and then later ended up

getting a job at Fox he was a commenter

at Fox or commentator as they like to

say at Fox and he's been a commentator

there since about 2013 and in 2018 he

got a co-host role and eventually ended

up moving on to Fox and Friends since

then he's potentially earned as much as

$6 million as a broadcaster speaker and

author per filings

all right so that's a little bit on Pete

he's very likely to get approved the

Senate arms Services committee has 14

Republicans 13 Dems so he can really

only afford to lose one Republican and

still get confirmed it's likely he is

going to get confirmed though uh so far

his his performance has actually been in

my opinion pretty decent uh oh look at

this I was just going to talk about the

fires and look who's on TV with the

policies protect you from a future

earthquake protect you from a future

fire protect you from preventing

insurance companies prices of going up

do you believe that's going to happen

the answer is no number two if you

choose to build a house and you want to

rebuild how long you think it's going to

take to get those permits probably 12 24

36 months number three if you choose to

have kids why would you raise your kids

in the school system of California no

matter what part of California you were

in why would you do that so you don't

trust the system number four if you

choose to start a small business in

California do you think they've cleaned

the homelessness they got $4 billion of

taxpayer money and homelessness just

went out in America we have 770,000 of

homeless people in America 181 of it is

in California this man has been the

governor for 6 years the lieutenant

governor prior to that for eight years

his policies have destroyed a once great

state this is why uh you saw that

tweet all right so he donated to my

campaign for governor by the way we have

empty reservoirs we find out $650

million allocated to make the port of LA

green we found out that the state you

know that they have $2.6 billion dollar

allocated for firefighting but they but

$101

million uh was cut from that uh we know

that the city of Los Angeles cut money

we know that they're spending a100

billion on electric Vehicles we know

that the city of Los Angeles is spending

800 Grand on electric street sweepers

but they're cutting the fire department

budget how do you fix stupid cuz it's

all stupid and it's all

preventable well I mean you you saw the

the exchange with mayor bass where she

went up there and she said well I'll

never as a mayor I'll never leave the

states I'll never go abroad she left

five times it the leaders are not

leading that state but think about it

this way the Palisades you look at all

the fires 880,000 Acres 24 death toll

that we know about right now all the

homes $250 billion of Damages today

Reservoir Santa inz

117 million gallons of water it can have

since February of last year it's been

zero why because there was a hole in the

cover that they had that that was one

mile away from the fire that took place

we can look at so many different angles

high elev it's just bad policies and sit

there thinking people are not going

toing the next pH of people maybe

Hollywood doesn't maybe the Boomers in

California that have lived there for a

while don't leave maybe some of the

folks that are sitting there that have

Family Ties restaurants businesses don't

leave but that 35 to 45 year old that

knows the next 20 years are going to be

the best money-making gear of their

careers they're looking at Nevada

they're looking at Texas and they're

looking at Florida and uh I can't blame

them for looking at any one of those but

I will tell you they don't get a penny

unless they adopt the science of

forestry so that the American taxpayer

won't have to give one more Penny to

California frankly in many ways they

should they should have to fix this

themselves they elected these people

they they wanted these environmental

radicals in office and this is what they

got and sadly I bet they elect kamla

next that's pathetic all right

appreciate you being with us when we

come back Joe Biden KLA Harris they

continue to embarrass themselves on the

way all right well for forgive me I'm

not trying to come across as one-sided

here uh I I've just uh I am I've all for

a very long time been frustrated with

the politics of California I've just had

this mindset of like hopefully I can get

my voice out and and change help be part

of the change of California rather than

than just leaving it uh but uh leaving

it is obviously the Easy Choice I mean

nothing there we haven't heard from um

Patrick B David uh a lot of passion

obviously there and he's not wrong about

uh the Sant yanz Reservoir which is a a

local run uh Los Angeles water power run

uh facility that was empty Gavin Newsome

points the finger by saying oh well it's

not state run so okay well you're still

in charge of the state and that

Reservoir had a higher altitude than the

Palisades which could have contributed

to water pressure in the Palisades where

20% of fire hydrant stopped

working Patrick B David also rightly

complains about homelessness it's it's

worth noting that we just had an auto

fire uh in Tura County just about 8

minutes from me uh it burned about 55

Acres last night was uh started around

6:30 it was uh contained at about 12:30

we got a lot of firefighters out very

very quick response time since SoCal

right now we've got about another 24

hours of serious wins that we're going

to have to deal with but after that we

we should be on the chill mode if you

will

hopefully excuse me but uh the Auto fire

was uh was probably started this is my

speculation but it started in the river

bottom out here which the river bottom

here is almost always occupied by

homeless they have encampments down

there and it's not uncommon for their

you know space their little kind of

flame heaters or whatever to uh to catch

things on fire especially when winds are

very strong and one of them gets blown

over and then all of a sudden the gas

spills and boom there you go there's

your there's your Wildfire so very very

very very very common out here usually

they don't go to 55 Acres this one did

went up to a golf course

go of course because we had water turned

its landscape sprinklers on that was

clutch uh I just also quickly want to

mention regarding Pete uh worth saying

that regarding Pete there is some

speculation that

potentially uh was this a favor to Fox

News to keep Trump in his uh in their

good graces uh some were saying that's

you know just something to pay attention

to but anyway uh a lot of news today

about the same spot reignition for the

Palisades fire we already covered that

two days ago so if you want to know just

type into YouTube meet Kevin cause of

Palisades fire and you'll see the meet

Kevin report from two days ago where we

already went into this so I'm not going

to rehash that I just want you to know

like yes I'm seeing all the other

mainstream media talk about it or

whatever but I'm like bro this is old

news okay we've covered this two days

ago fine they're just now getting to it

classic uh but uh I did get a little bit

more detail on uh how the Getty survived

which I've already gone through how the

Getty survived uh brush clearing the

sort of ignition of very dry brush that

sort of looks like Rosemary where it

lights up on fire and then it burns

itself out because there's so little

fuel keeping tree canopies High blah

blah blah we covered a lot of that but

specifically they also used Acacia

shrubs and oak trees apparently both of

these are known for absorbing a lot of

water and they don't burn as easily or

potentially at all because they're wet

compared to obviously you know the

inside of your attic which is very very

dry another thing is because they have a

positive pressure air conditioning

system they actually blow air out of the

building you know how usually when you

have your air conditioning on inside of

your home and you kind of feel like

around the edge of a door you can kind

of feel air getting sucked into the home

because the blower motor is

and just sucking from everywhere well

that can actually suck Embers in it can

suck Embers into your attic vents it

could suck Embers through doors or

cracks or whatever well because they

pressurize their ventilation system it's

actually more

like pushes air out of the system and

out of the building and that keeps smoke

either compartmentalized or out but also

Embers out in addition to that they also

have their own 1 million gallon water

tank in another

50,000g water tank very interesting now

there's also talk about how Gavin Nome

reduced squa requirements I think this

is like nonsensical because like squa

let's be real like every time the

governor signs an executive order or a

law saying yeah get approvals done

within 30 days it still ends up taking a

year anyway because local governments

are like yeah we're not staffed for this

sorry so I've gone I've literally gone

through that so that is not coming from

a a place of trying to bager in

California it's I've been through the

system all right Dad joke of the day

what do you call a Mexican guy that gets

his car

stolen

Carlos okay uh now onto the Daily

Wealth

today quick one one of my favorite hacks

for actually getting things productively

done is make sure you schedule something

fun with your family or your friends for

me back in the day that used to be like

6:00 ventiki my ties and then you're

like trying to rush rush rush get

everything done done done done done so

you're ready to go get your my time now

it's like bowling with my 9-year-old and

so I love that big big big fan but

there's a hack to that when you actually

put something on the calendar that you

have control of you know it's like you

can go hey I'm going to be 15 minutes

later or whatever and just you just

leave the house 15 minutes later it's

not it's not like it's the hardest

deadline but because you have a deadline

you have something to achieve or plan

towards and then you actually pressure

yourself to get your work done so cool

little tricks anyway thanks so much for

watching uh still working on the set so

forgive me and we'll see you in the next

one all right folks thank you so much

goodbye and good luck why not advertise

these things that you told us here I

feel like nobody else knows about this

we'll we'll try a little advertising and

see how it goes congratulations man you

have done so much people love you people

look up to you Kevin paffrath there

financial analyst and YouTuber meet

Kevin always great to get your take