• With: Rupert Murdoch

    This is a rush transcript from "Your World," September 18, 2014. This copy may not be in its final form and may be updated.

    NEIL CAVUTO, HOST: Meanwhile, after the historic vote, the question about David Cameron, whether he could be history as well, something I brought it up with 21st Century Fox Chairman -- the name rings a bell -- Rupert Murdoch on Fox Business Network earlier.

    (BEGIN VIDEOTAPE)

    CAVUTO: What happens to him? What does this mean for him?

    RUPERT MURDOCH, CHAIRMAN AND CEO, NEWS CORPORATION: No, I think that if -- if they lose it, if yes wins it, he will probably have to go.

    I think you could -- there's about a 70 percent likelihood. And I say after that talking to a lot of his M.P.s And -- but if it's close, and they stand by these devolution promises, which I think they have to, he will have a -- half his party, at least, very, very unhappy, and the same exactly in the Labor Party.

    It has been totally mishandled by -- by everybody on the no side. It's very interesting. I think there's meaning in this. I think it goes beyond Scotland. I think there's a great sort of anti-establishment groundswell, which is seen in this vote Scotland. You're seeing it down here in Brian in the anti-European party, which -- one single issue, which is to get out of Europe.

    CAVUTO: Right.

    MURDOCH: And I think you're seeing it in France with the polling for Le Pen. I don't think she would win, but -- but, really, you can take United States and go across Middle America, what do they think of Washington and Wall Street, for that matter?

    There's a -- people are really looking for change.

    CAVUTO: I have heard from a lot of market analysts over the last couple of hours, Rupert, who say, well, regardless, at least in the interim, the United States benefits, because it's a haven. Its dollar is - - and it was a until a little while ago. The British pound I think is now trading a little better off the dollar, but that we benefit, not that we're on fire and doing a great job, but that we're sort of the tallest midget in the global room, but that that will continue happening because the world might be volatile, but the U.S. remains a haven, more so regardless of what happens today.

    Do you buy that?

    MURDOCH: Yes.

    I think it's still the best place to invest. On the other hand, I'm sitting in a building in London, looking out, and all I can see is building cranes. It's a boom city. Now, that does not extend across the country, just as New York looks like a boom city or San Francisco does, but go to anyone -- anywhere in between, and things aren't that good.

    Look at what has happened to the average income of Americans, other than the top 1 percent, or less than 1 percent, which are, you know, exceedingly high.

    CAVUTO: Right.

    MURDOCH: But what about the average American? There were a lot of figures in The Wall Street Journal two days showing, I think, in the month of August, the average income went up a little fraction for the first time, but still overall compares pretty badly with 10 years ago.

    Things are not easy for the average family in America.

    CAVUTO: But that chasm between the rich and poor apparently is worldwide. We were talking to one of the nationalists in Scotland who was saying, you know, it's a global French Revolution going on here. That chasm between those who are enjoying the good life and those who aren't is widening, and that it was almost like -- I don't know what the Scottish version of throw all the bums out, but that was reverberating.

    (LAUGHTER)

    CAVUTO: What do you make of it?

    MURDOCH: Yes, I look the problem has been the Fed and the same here, the Interbank, trying to create jobs by printing money.

    The fact is, there are so many petty regulations at all level of government. It's in the states -- at fed, state, county. You try and just open a restaurant and employ 40 people in Nassau County or somewhere like that. It would take you 18 months and you end up, oh, saying, to hell with it, and you pay a high tax.

    And so all this free money has not created jobs. So it has ended up on Wall Street, and you have had a great inflation of asset values, which means that the rich have got a lot richer, whereas wages have not gone up, or not appreciably. So, there's a lot to do.

    CAVUTO: But in the middle of this, Rupert, you think about it, you have the terror fear, you have the ISIS fears. Many have argued that David Cameron and his raising the terror threat alert, cynically, was meant to sort of send a message to the Scots, you really want to be without us having your back? What do you think?

    (LAUGHTER)

    MURDOCH: No. They can look of after that as well as Britain can. The big story today, of course, on that level is from Australia, where 800 police went right through the sort of Muslim areas of Sydney and Melbourne and last through the night, arresting quite a number of people, and alleging that they have uncovered plots for sort of public killings and beheadings in the streets of Sydney, very, very sensational news.

    CAVUTO: You know...

    (CROSSTALK)

    MURDOCH: The intelligence services there are absolutely first-class.

    CAVUTO: Which, by the way, could explain why they raised their own terror threat alert.

    Now, Nigel Farage was here not too long ago, Rupert, saying there's something maybe more basic or systemic going on here and across the globe, and that is what binds us religiously, that we have become a secularized world, maybe in this country, as he had mentioned about Britain losing its sort of Judeo-Christian values, and that this feeds this -- this mentality. What do you think?

    MURDOCH: I have to think hard about that, but I think there's a lot - - there's a lot to it, absolutely.

    I think that's something that happened in Australia some time ago. And the then-prime minister came out and made it very clear. You know, if you migrate to this country, if you live here and want citizenship, you accept our values and our laws.

    And in this country, there have been some recent terrible, terrible scandals, where they haven't done anything. They have been hidden by local councils and so on, in order, because they thought they'd look racist if they acted against Asian immigrants, which I think is another form of racism, just thinking that way.

    CAVUTO: Well, that's what Farage was saying.

    I want to briefly, while I have you, to get your sense of the markets right now. I told you they're -- they're not really too concerned right now that Scotland breaks away. If they are, they have a funny way of showing it. But they have had an enormous run-up, our own markets included.

    MURDOCH: Well, I think when...

    (CROSSTALK)