Transcripts For FBC Cavuto Coast To Coast 20240714

Bows. Sir . Reporter youre exactly right. Everyone thought the hong kong protest issue was settled last week. Controversial bill was suspended. People left the streets. Now it is back, bigger than before, this is pushback against china and their influence in hong kong. Nearly two Million People of hong kong took to the streets on sunday demanding a number of issues. First of all release of people who had been arrested last week, punishment for police who ordered the use of force, resignation of hong kong leader lam and that secretary of state mike pompeo will raise the issue with president xi at the g20 next week. We see what is happening, unfolding in hong kong. Were seeing people of hong kong speak about things they value. Reporter the protest revived of a joshua wong, a prominent activist leader rallied the crowd after being released from prison. He was serving a twomonth sentence taking part in 2014 protest. It is time for us to the ability to step down and she will face two million, already joined the fight. She will pay the political responsibility. Reporter Chinese Media have largely ignored the protests few mentions there have been say this is due to foreign interference. Very interesting now to see what degree President Trump, president xi discuss this in japan next week. Neil . Neil public hearings underway exactly what, who would be targeted if we have additional tariffs. Additional tariffs u. S. Businesses fear will wallop them, impact you, whether you buy their stuff. Hillary vaughn with latest from the International Trade commission. Hillary. Reporter neil, 300 companies and Industry Execs sounding off weighing in on the impact of additional round of tariffs against 300 billion in chinese goods coming into the u. S. Would have on their companies, consumers and industries as a whole. We talked to the u. S. Marine manufacturers association. They represent 1300 boat and trailer manufacturers in the u. S. They say their entire industry has been disrupted by their tariffs, everything from the parts they use to manufacture boat engines to life jackets have had an impact. Our industry is very uniquely americanmade industry of the 95 of the boats sold in the United States are made here in the United States. But what these tariffs ignore we rely on Global Supply change. Everything from Component Parts to other supply equipment. You cant change that on a dime. What were trying to tell the administration this is really a tax on u. S. Businesses. Reporter these new tariffs are expected to hit several industries. Tech items, cell phones, tvs, videogame consoles. Well hear from video game maker ea and best buy, roku and irobot. Items like toys, footwear, clothing apparel. I talked with kenneth cole ceo mark snyder. He tells me orders for backtoschool season, and Holiday Season are on the water headed from china here to the u. S. His concern if they dont make it through customs before the tariffs hit they will have to eat the costs because they already signed contracts for all of these items. From my standpoint, no one is writing us a check for these tariffs. China is not writing a check for these tariffs. We will absorb the tariffs or deal with the tariffs. And basically i see it as a tax on consumers, on american consumers. Reporter schneider tells me one of his biggest concerns quality in the overall apparel clothing industry will take a hit because companies will be forced to reduce quality to keep the price point the same, factoring in this 25 extra tax on their goods to try to convince consumers to still buy their products. Neil. Neil thank you very much. Before i get to my next guest i want to put this perspective this idea you can look for alternatives to the goods from china but a lot of cases you really cant. China account for 82 of all mobile phones we have. Some manufactured in the very hong kong environment subject of protests today. 94 of laptops, 98 of video became consoles, 85 of tricycles, the reason why i keep showing what happened certainly in hong kong over the weekend is that that could get in the way of any progress because that now moves front and center as an issue. Presumably the president want to talk about with xi xinping when they gather in the g20 summit in osaka, japan this month. The coming collapse of china autor gordon chang how this goes. I imagine not well for the chinese. Not well. There are lot of issues for the bilateral. Beijing has not confirmed xi xinping is going to meet President Trump. Not only issues you talked about, hong kong and trade. Now xi xinping is going to north korea this week. Im sure he is doing that to dangle cooperation on Nuclear Matters to get concessions on trade. This will be the meeting of all meetings. Neil the hong kong unrest, obviously the hong kong chief executive, she reversed that extradition order. She didnt end it. Just suspended it. Possible it could come back. The chinese presumably wanted to clear that but they havent dumped her. What do you make of that . They cant dump her right now, neil. Issue will she be around six months from now. Most people in hong kong believe she will go because there is view across the political spectrum she is no longer viable as the check executive of hong kong. You can understand why. She created one Public Relations disaster after another and she is responsible for these enormous crowds that are hitting the streets of hong kong. Neil you know, were told the president is perfectly happy, his words, to slap additional tariffs on china. Actually wilbur ross, commerce secretary said that are the chinese ready for that possibility . Yeah. I dont think so. I think they believe they can manipulate the american political system to put enough pressure on President Trump but you know, china right now has an economy which is crumbling. Could even be contracting last month. We saw that with bellwether car sales down 16. 4 , the 11th straight month of decline, the worst monthly decline ever and imports were down 8. 5 year on year, a real indication of declining domestic demand this is an economy in severe trouble. They need the u. S. Market desperately right now, neil. Neil real quickly on china, this whole hong kong unrest, many interpreted it as china blinked. You know china very, very we, and you know its history going back 30 plus years to tianamen square, always in the eye of the beholder and im wondering whether people are getting ahead of themselves . All that beijing did by suspending consideration of the extradition bill is to pause. They didnt withdraw it as you point out. Until there is withdrawal and until resignation of kerry lamb as chief executive, i think this is a tactical retreat, not a Significant Movement on the part of beijing. They will be back. I dont think they can win this. There are too many people on the streets. Neil gordon, always food catching up with you, my friend. Gordon chang, bestselling author and expert on that region. Thanks, neil. Neil moodys Capital Markets economist john lonski said this is sort of an unexpected headache for the markets anticipated by some but in the end given the china rift i guess they didnt see these materializing. How bad does this get, john . Lets start, the tariffs that india is imposing on u. S. Exports apply only to 1. 4 billion of u. S. Exports. That compares to 2. 5 trillion worth of u. S. Exports of good and Services Last year. Relatively small amount. I would not become horribly concerned about it. I think what is bothering u. S. Businesses, imposition of tariffs by both sides appears to be haphazard. It is unexpected. It keeps businesses on edge. Neil you know im wondering too as it spreads, india, this might have been expected by some but they thought india would hold off on this, small the total numbers might be. Neil now were hearing the chinese might not attend the g20 summit. Xi xinping might not. The president promised if that is the case he will slap the additional tariffs, i can see this widening. That could very much being the case. Higher tariffs equivalent to higher taxes all else the same, higher taxes mean slower pace of business activity. We saw hiring activity drop sharply for the month of may. Who knows what will happen in june. We had a report from the new york fed on Manufacturing Activity in their particular district, employment, that Employment Index was down for the first time in a couple of years. We have base Metals Prices plunging. We have the price of crude oil just above 50 per barrel. All of these indicate a slowdown in u. S. Activity as well as global activity. Neil this trade back and forth, i know youre not a political guy, good thing, you know what youre talking apout, do you think that is weighing on the president s poll numbers especially battle brown state . The economy is doing well but this stuff is still an open question. You know those midwesterners say okay to talk tough, be a bit of a brag guard, but you braggart, better come through what you promised. A few people voted for trump in 2016, disappointed, make the bold statements, cannot seem to follow through what he is trying to achieve, especially since the master of the deal, art of the deal type of approach. I want to add one thing. It has been a year now, believe it or not after the close of june 14th, 2018, trade issues came to the surface with china. First did so in a intensified manner and over the past year we find that though the blue chip industrial average is up 4 year to year, on the other hand the russell 2000 stock price index for small to Mediumsized Companies is down by roughly 9 . So it could be that smaller companies, midsized companies, are feeling the brunt of intensified trade issues. Neil that is a very good point. All right. Very good having you, john. We were showing yeartodate where the market averages are but john is quite right, since the imposition of the tariffs, first hint of them, markets are soft to down. Well follow that. Follow what the chinese might do about the upcoming meeting. Meantime a lot of countries are dragging their feet when it comes to trade but does a lot of this have to do with the fact they dont know how it is going to work out here . After this. Cant see what it is yet. Re . What is that . Thats a blazer . Thats a chevy blazer . Aww, this is dope. This thing is beautiful. 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Excuse me . what . I dont know your phone number. Aw well. He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. Neil it is way, way early, but interesting just the same. In a Strong Economy like this, strong markets like this, the president trailing five democrats in headtohead matchups. In a new fox news poll. He kicks off the reelection bid in florida tomorrow, i believe orlando. That is state he won last go round. But he is in battle of his life, what is going on . Democratic strategist, marjorie clifton, Gianna Caldwell and francesca chambers. It doesnt jive with a economy and markets, that the incumbent give credit or not, i often say blame the credit when it is not going well, he should take a bow, but voters in key state early on as it is are not giving him that credit or they dont care what do you make of it . Yeah an important point, neil in the fox news poll is that the president s Approval Rating on the economy is slipping, that appears to be directly tied to the tariffs that he has put on china as well as threat to put tariffs on mexico. Voters say that theyre not in favor of using tariffs as a reason to force mexico to get in line with his views when it comes to immigration. You want to talk about florida where the president is having his 2020 kickoff tomorrow, a Campaign Source tells me that the Campaign Still feels very good and especially about florida, a place the president calls a second home. Neil looking at all of that, gianno, shut the president worry the message is not seeping through . Worries about trade, tweeting other factors he should address, aides are telling him he ought to address, what do you think . If a few things going on. Talk about florida, a back in march, a poll went out 56 of floridians oppose a second term for President Trump. That is a problem for him. I think blue wall will be a problem for him. Were talking about michigan, pennsylvania, wisconsin. Those are things that the democrats are certainly going to use to show you. When were talking about trade issue in particular, americans are concerned, because certainly unfamiliar area for many people. Many people view the tariffs as a tax but the interesting part about that a lot of people are not feeling that particular pain. When i think about this conclusion i continue to go about, people the feel way which he talks to people, behavior on twitter, they feel it is unpresident ial even in economy that is roaring. People have a problem with that, because people like to feel good about those in leadership. Neil marjorie, bill clinton made it famous, it is about the economy, stupid, normally that is the case, fascinating looking at history not always the case. Were used to that, i harken back to the 1892 election, i covered that one, seems like yesterday, one of the things that fascinated me about that, the president at the time, Benjamin Harrison was shepherding a good economy but he was also supporting big tariffs at the time on a lot of, a lot of countries that shot up as high as 48 . It doomed him. Grover cleveland came in, only president we had to serve nonconsecutive terms. Say that to show im very dull, but also showing that a good economy doesnt lock it up for you. Carter as well. Jimmy carter was operating in a very Strong Economy, was unsuccessful in a second bid for president as well. Actually near history. Neil but in 1980, it was getting dicey, right. It was getting dicey but it was strong going in. The general consensus was the same it is all about the economy. The other thing to look at, when we look at economic numbers, were at 50year low on unemployment the way the economy sim packing people is different. There is more income inequality. Neil isnt that always the case . Why would it resonate now. It is but i think there is a growing divide when you look at metrics on education, look at metrics on a lot of the socioeconomics in cities, especially urban areas which turn out more democratic voters in a lot of instances. So i think there is a lot of things we need to think about. 51 disApproval Rating i think, that is a powerful number going in. I agree a lot of republicans i talk to who are strong on economics but really have trouble contending what they see as manners and morality of our current president , what that means for the presidency but i do agree economic drives, but i think there is a lot of fear around a global component in our economy. More industry is it touching in a global way, theyre understanding impacts on trade and china and other countries in our goods, what we feel. It does matter. Neil that is a good point. Francesca, talks about what you said at outset, trade issues more than credit we give them for as gianno said, we havent felt impact of a lot of tariffs yet, we will if they drag on, you have a problem you dont have alternatives to chinese products. You dont have alternatives in the mobile phone market. You dont have alternatives in the laptop videogame market. Guacamole. Neil dont even go there, that is a revolution. Francesca, im looking at that, saying if im the president i want to resolve this right away because this is eating away. Another point from the fox poll was that. Americans do feel that the tariffs will make prices go up on gods that they buy. So it is not just about the overall 30,000foot effect on economy. It is as you said, how americans in some of these swing states feel those tariffs will affect them. So look at the rust belt. Those are areas where both joe biden and Bernie Sanders are targeting, heavily campaigning aggressively in places like iowa, ohio, indiana, michigan. Those are states that President Trump did very well in 2016. Theyre hoping to put back in the d column. Neil gianno, is it your sense you get trade thing resolved, maybe take tariffs off the table, more expensive products off the table, would that narrow gaps president has in early states, as it is, not even worth the paper it is printed on as it is, but what do you think . I do think so, especially when it comes to farmers for example. You know what is kind of interesting to me the fact that the tariff is a tax essentially but yet you got people like Bernie Sanders and others running on tax increases, saying well have to pay a little bit more, that is every american that he says. But yet he is still polling ahead of the president. So at end of the day the tariff issue is important, certainly is especially for businesses but i dont think that is the end all, be all the issue president has in terms of him polling so far behind in matchup headtohead with democratic candidates. Neil someone who covered the 1892 election, you might want to hear me out on this one. Youre looking good neil. Neil it is makeup. Guys, thank you all very, very much. 1776 too i imagine. Neil thats fine, young man. We have the dow up 35 points. To add a little bit of uncertainty to the markets, you have iran, right now, almost bragging about the fact it is surpassing its nuke limits. In other words, whatever it agreed as part of the deal ripped up, it is no longer agreeing to it because it figures it doesnt have to. It is worrying the world after this. Ange which brought people together to invest in all the things that move us forward. Every day, invesco combines ideas with technology, data with inspiration, investors with solutions. Because the possibilities of life and investing are greater when we come together. I come facetoface with a lot of behinds. So i know theres a big need for new gasx maximum strength. It relieves pressure, bloating and discomfort fast. So no one needs to know youve got gas. Gasx. The exus es. So no one needs to know youve got gas. Every curve, every innovation, every feeling. A product of mastery. Lease the 2019 es 350 for 379 month for 36 months. Experience amazing at your lexus dealer. Neil all right. This is probably just a matter of time coming, right . Iran set to surpass limits put on its plutonium stockpile, uranium stockpile the stuff that get as nuclear thing going. Fox news correspondent trey yingst on it. Reporter they will exceed the stockpile limit, according to the countrys Atomic Energy Organization Spokesman. That spokesman speaking today at irans heavy water facility, that they would start enriching uranium 20 , bringing that near weapons braid material. Under the jpoa deal established in 2015 iran cannot surpass a enrichment deal of 3. 67 . In an effort to continue pressure on International Community to renegotiate the deal the Atomic Energy Organization Spokesman threatened more uranium enrichment and increased heavy water stockpiles, if European Countries fail to meet irans demands in the next two months. There will be another set of actions if, after 60 days they will not [inaudible]. Reporter those comments come amid heightened tension in the region after iran and iranian proxies were blamed for series of attacks on oil infrastructure. Two oil tankers were targeted with limpet mines in the gulf. They blamed iran but provided limited evidence. The u. S. Military released a video, showing iranian gunboat approaching a damaged tanker to remove unexploded mine. Series of eu Foreign Ministers met, this was to discuss the situation in iran. General concensus for countries like germany, they would meet about attacks on oil tankers next week before pointing the finger. Neil trey, sounds like not all allies feel evidence is convincing enough at this point, right . That is exactly right. There is number of u. S. Allies in the eu and they want to gather more information before making a final assessment who indeed was responsible. The key issue to look at whether or not this was directed, if indeed directed by iranians, if directed by leadership in tehran or directed by iranian proxy in the region. They have Houthi Rebels backed by islamic regime. Islamic jihad receiving money and weapons according to our reporting and proxies in lebanon and syria. Iranians have spread out influence in the middle east. So they do want to take a look at information gathered by intelligence agencies in the United States before drawing a final conclusion. Neil . Neil trey, thank you very much. I want to get the read from rebecca heinrichs, Hudson Institute senior fellow. Almost after a week, rebecca, not everyone is on board pointing the finger at iran and then i hear this separately this maximum restraint urge on part of germany, france, italy, that they are concerned the president might rush something. What do you make of all that . I dont think the United States has any interests using what we believe to have been iranian behavior attacking this oil tanker in the gulf of oman. I dont think that is sufficient evidence to retaliate against iran. For me, what i see is the Trump Administration right now is trying to get all of the allies on the same page to understand what the iranians are doing. This was the iranians as far as i can tell but theyre ratcheting up the tension and pressure because theyre trying to compel the United States, get us in a bad position, to force us, either get back into the jcpoa, that is the iran deal, or relief some sanctions were putting in place. We used to have waivers for chinese and others which we have stopped. This is the iranians at an old game trying to disrupt the Energy Market to get us into a corner. Neil if theyre targeting tankers and bragging about the limit on uranium levels in 10 days, theyre sort of spiting us and flaunting us. What is our response. It is. What this does, proves how bad the iran deal was. It shows we were only days away from threatening nuclear blackmail, going back to raising enrichment levels. The whole prompt with the jcpoa, iranian deal, it never fully removed the latent Nuclear Program from the iranian regime. Never got to bottom of what we saw military dimensions after israelis went in there, pulled giant cachet, showed history of Nuclear Missile program. We havent really fully vetted about that. We know iranians lied. There are elements of program expire under the terms of the deal, 2020, 2023, the Trump Administration is right, renegotiate a better deal doesnt put all of this cash back into the iranian regimes hands to continue their maligned exploits. Lets get back to leverage the iranian regime, get a better deal that truly removes Nuclear Threat from the program, from that country. Neil as you point out, if administration is already promising, consider a full range of options against iran, what do you think that means, rebecca . It is cliche to say were looking at anything, everything, but what are they likely to consider . The whole range can be taking out elements of the iranian navy that is responsible for conducting these, you know attacks against these just, benign oil tankers, going across International Waters to actually attacking elements what we believe to be the Iranian Missile program, Nuclear Program which would be highly escalatory. That is not something i have understood in the interests of United States. What i understand were trying to do, get allies and partners on the same page, crank up the pressure to force iranians to the negotiating table. It is what we did in the obama years, Bush Administration worked in bipartisan manner. Were trying to get us back to that position so we can get a better deal that is in the interests of the american people. Neil rebecca, thank you very, very much. See what happens here. I dont know if you saw this over the weekend, every Cash Register in every target store across the country, i dont know how they are all connected, but apparently enough were all of them to go down. They apparently waited for them to get back up, they didnt get back up in a long time. What is amazing about the video, i dont know if you like to shop, i dont know if i would wade through that, but these guys did. After this. I dont want any trade minimums. Yeah, i totally agree, they dont have any of those. I want to know what im paying upfront. Yes, absolutely. Do you just say yes to everything . Hm. Well i say no to kale. Mm. Yeah, they say if you blanch it its better, but that seems like a lot of work. No hidden fees. No platform fees. No trade minimums. And yes, its all at one low price. Td ameritrade. When it comes to type 2 diabetes, are you thinking about your heart . Well, im managing my a1c, so i should be all set. Right. Actually, youre still at risk for a fatal heart attack or stroke. Even if im taking heart medicine, like statins or blood thinners . Yep thats why i asked my doctor what else i could do. She told me about jardiance. Thats right. Jardiance significantly reduces the risk of dying from a cardiovascular event for adults who have type 2 diabetes and known Heart Disease. Thats why the American Diabetes association recommends the active ingredient in jardiance. And it lowers a1c . Yeah with diet and exercise. Jardiance can cause serious side effects including dehydration, genital yeast or urinary tract infections, and sudden kidney problems. Ketoacidosis is a serious side effect that may be fatal. A rare, but lifethreatening, bacterial infection in the skin of the perineum could occur. Stop taking jardiance and call your doctor right away if you have symptoms of this bacterial infection, ketoacidosis, or an allergic reaction. Do not take jardiance if you are on dialysis or have severe kidney problems. Taking jardiance with a sulfonylurea or insulin may cause low blood sugar. So, what do you think . Now i feel i can do more to go beyond lowering a1c. Ask your doctor about jardiance today. Quadrupled their money by 2012 . And even now, many experts predict the next gold rush is just beginning. upbeat music [announcer] today the u. S. Money reserve announces the Immediate Release of u. S. Government issued solid gold coins for the incredible price on screen. These Gold American eagles are official gold coins of the United States and are being sold for the price on screen. Pick up the phone and call americas gold authority u. S. Money reserve. With nearly two decades in business, over a billion dollars in transactions, and more than a half a million clients world wide, u. S. Money reserve is one of the most dependable gold distributors in america. [announcer] today the u. S. Money reserve is releasing official Gold American eagle coins at cost for the incredible price on screen. These government issued gold coins are official u. S. Legal tender, made from solid gold mined here in america, and fully backed by the United States government for their gold weight, purity and content. Do not delay. Call now to purchase your Gold American eagles for the amazing price on the screen. Gold is now on sale at prices unseen in years. And this year could be one of the greatest gold buying opportunities of all time. Call now while vault inventory remains. As one of the largest u. S. Gold coin distributors in the country, the u. S. Money reserve has proudly served hundreds of thousands of clients worldwide. Dont wait another minute. Call now to purchase your American Eagle coins at cost for the amazing price on screen now. Neil target is still trying to recover from this nationwide Cash Register outage. This stunned me. A, it happened nationwide. B, that people waited until it was resolved, sometimes for quite a while. Jackie deangelis has more, a lot more. Reporter thats right, neil. If you were a target shopper over the weekend there was a twohouroutage on saturday where customers were not able to use credit cards. The machines couldnt process charges at store. We saw issues on sunday as well. Target says the two incidents were not related. Actually it was system Maintenance Issue occurring over the weekend. Target also says that the outages were not securityrelated issues. So nothing to be worried about in terms of Customer Data being compromised. It issued a statement apologizing to customers. Meantimes sothebys taken private by a french billionaire. 50 a share. Total deal, 3. 7 billion. That is 61 premium on what we saw at fridays close. Sothebys is public 31 years. Private is creating a environment where they say Growth Initiatives can be pursued without scrutiny when youre a public company. Dan loeb is on the sothebys board. This deal affirms he says the value he saw in the company a long time ago, neil. Neil thank you very much, jackie. Meantime were watching closely what is happening on the Interest Rate front. Investor wait what if anything investors decide this week. They have a meeting tuesday, wednesday. The real expectations are for next month. Former advisor Danielle Dimartino booth. Danielle, predictions about this week, what do you think . I think this week will have to be about communications. There is no coincidence there was a big wall street journal story out that said in the past, in july 1995 for example, the Federal Reserve tried to preemptivelily get out in front of the risk that the economy was slowing by lowering rates. I think what jay powells goal is going to be this wednesday with the statement, with the press conference that follows to educate the public that the fed is standing ready to cut rates if the situation justifies them moving forward. I dont know if he will use the word july, that is message communicated we could see a rate cut as early as july. I truly think the man is relieved that there was such a strong retail sales report on friday morning because the futures markets cut the probability of a rate cut on wednesday from 33 to half of that, to 16 . So i think that is, that is good news for the fed because they need a moment to communicate what their next step is as opposed to completely pivoting versus their last statement. Neil danielle, you read the tea leaves better than i do. You actually used to gather the tea leaves. What confuses me, markets celebrating the possibility of a fed rate cut. Normally when the Federal Reserve, especially in this case reverses what had been a steady policy incrementally raising rates, 10 times over the last few years, that would send some alarms that they overdid it. And that first thing i would ask myself, well if theyre worried, should i be worried, what do you think . Well look the average time between the last rate hike which in our case, that would be last december and the first rate cut over the last three downturns has been about eight months that would put us at the september fomc meeting. That is leading into the last three recessions, neil, to your point. So im not so sure why there is this giddiness that the fed is going to ride to the rescue, if past is precedent, when the fed starts to cut rates it is not a good sign if they try to get out in front of it, it would be the shortest runway between the last hike and first cut weve seen in modern market history. Again i think markets gotten ahead of themselves. They have simply no memory of something as recent as 11 years ago. Neil another thing too, danielle, they were just relieved to know if the president somehow has bigger problem on his hands regarding trade deals that never materialized or worse impact that is immediate, fed will come to the rescue but that is not a gimme, right . It is not a gimme. I think the public needs to understand there was a very important interview took place over the weekend. Former vice chairman of the Federal Reserve, stanley fischer, said had pressure from the white house had been not as extreme the fed might not even have hiked rates last december. They were trying to do it to make a stand against the white house, to prove their independence. The last thing we want to have is a Federal Reserve open Market Committee go rogue on us, start to make moves and decisions so they appear to be sufficiently pushing back against pressure from the white house. That is not their job. Their job is to be shep heards of u. S. Economy, if there are signs slowing because of the trade war, confidence ebbing, fresh data came out this morning, shows business margins are being squeezed, it is the feds job to take care of the u. S. Population via its influence on the economy, period, end. Neil i like that. Danielle, good seeing you again. Thank you. Neil tim cook in a big graduation speech, pointing the finger at social Media Companies and privacy they bear the risk if they go too far but sometimes when you point fingers at your competitors karma tells me that certain other fingers are returned to you, after this. This is my headquarters. This is where i trade and manage my portfolio. Since i added futures, i have access to the oil markets. And gold markets. Ok. Im plugged into equities. Trade confirmed. And i have Global Access 24 7. Meaning, i can do what i need to do. Then i can focus on what i want to do. Visit your Online Broker today, to learn more. The latest inisnt just a store. Ty its a save more with a new kind of Wireless Network store. Its a look what your wifi can do now store. A get your questions answered by awesome experts store. Its a now theres one store that connects your life like never before store. The xfinity store is here. 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This industry is becoming better known for a less noble innovation, the belief that you can claim credit without accepting responsibility. Too many seem to think that good intentions excuse away harmful outcomes but if you built a chaos factory you cant dodge responsibility for the chaos. Taking responsibility means having the courage to think things through. Neil that was tim cook slamming other Tech Companies over things like privacy and some of the things that have resulted when a lot of Companies Either backed away from that, pointed a finger. Many are pointing it back on him, be careful what you wish for, you might get it. Fox News Headlines 24 7 reporter said apple shouldnt be pointing finger. Good to see you. Tim cook has been very up front and out there with privacy. He said privacy is a human right. Apple pushed the iphone and other products this is where you want your stuff to be if you want your stuff to be safe. That, for the most part is true. Apple has avoided some highprofile hacks although we had some with celebrities several years ago, but that was a password issue. But there is company in israel can get into the iphone now. We had that issue with the San Bernardino shootings, where the fbi said we need your help getting into the phone. It wasnt said apple said were not going to help you, we cant help you. The operating system is designed to be secure. Once it has a password on it, like the scene in mission impossible, this message will selfdestruct after 10 seconds. Neil they are the device a lot of more controversial social programs lie, facebook, host of other. Right. Neil does he bear any responsibility on that front. That is kind of an interesting point where he is saying you created this chaos factory, apple they havent created anything that is chaotic. They certainly are not sharing our personal information. In fact in many ways siri the Virtual Assistant apple has, has fallen behind google and amazon because of the fact they keep your information private, they cant even use it to better their own products. They have been up front about security. They have been on the forefront of this. They have been pointing fingers at google and facebook but theyre also working with google and facebook. So if you want neil you and i were talking at the break why are they lump in with googles, facebooks as potential sinners too big for their riches . This goes back to the fact that apple controls the product from start to finish. Neil right. You dont just buy the iphone. You buy iphone, get software from apple. All the other software you want to put on your iphone goes through apple. Apple is getting a cut with everything that theyre doing. They will have a credit card you sign up through the iphone, you use it on iphone, apple gives transaction fees but they are giving a lot of it back. That is why they are mixed in with google and facebook. Facebook is harvesting our data in ways well probably not ever really know for a few more years. Google is tracking literally, when i get up and walk out of here, google will know when i did that. Apple is not doing that. Apple is trying really hard to separate. We get it. You need to see advertising. That is a revenue model for applications and a lot of content creators but doesnt need to come at the expense of the users privacy. That is where they are separating themselves. Neil are they beneficiary from huawei troubles . Huawei says well have 30 billion left in revenue . Phones wont go anywhere . Yeah. Neil is apple getting a lot of the juice from that . Is really good question. Time will really tell but, i guess, in aways they are taking a hit from it, in china it affected iphone sales. It has become National Pride to buy huawei phone instead of iphone. Neil they associate apple with evil americans. During the trade war. In terms of pickup i think huawei issue will push everybody behind on 5g. I was reading a report that apple may have a highend 5g phone next year, for 2020. But entire phone lineup, will not see it before 2021 or 2022. Neil is that typical for the whole industry . Samsung has a 5g phone available for at t and verizon customers. 5g works in a three block radius in Downtown Chicago and couple streets in minneapolis. Neil is that going to be, sorry to skip around. Thats fine. Neil i do get a sense so much hype with 5g. So much hype. Neil superfast, i get it, i get it but anything else . Everybody who uses it says it is amazing i would love to get my hands on it. It doesnt quite work. I think the benefits from 5g well not know for five to six years. Just like with advent of the iphone and other smartphones. We didnt really know we would suddenly have the app culture, you can get a car and pizza, you can get a dog delivered to your door by way of your iphone or smartphone in general. I think 5g is definitely going to open up to a huge Market Industry that we havent seen before. Neil the on going impasse we have with china, all bets are off for all technology. Maybe the first example of that was last week with broadcom, its exposure to huawei. It dragged the entire Semiconductor Industry wit. They have been coming forward, maybe go easier on huawei because we need them to buy our products. They buy our chips to put them in the phones, even though we cant sell them in the u. S. We want to sell them the technology. Its a quagmire. I dont know what the solution will be. Well see in time. Neil if youre waiting for the whole 5g i will park it. Im patiently waiting until at least next year until i see otherwise. Neil good thing about bret, he speaks english which is quite unsettling. Thank you very much, my friend. We have a lot more coming up. The hong kong crisis, this woman who had to take back the extradition order, she is still there and these protesters still not finished, after this. Your daily dashboard from fidelity. A visual snapshot of your investments. Key portfolio events. All in one place. Because when its decision time. You need decision tech. Only from fidelity. Will transform nottech. Just the automobile, but mobility itself. An autonomousthinking vehicle protecting those inside and out. And its the mercedesbenz of today that will help us get there. The 2019 eclass, with innovations that will change the way we drive from this day forward. Visit your local mercedesbenz dealer for exceptional lease and financing offers. Mercedesbenz. The best or nothing. Neil all right. The good news is in hong kong, they suspended that extradition order. The bad news is they didnt suspend or fire the woman who was behind it, hong kongs chief executive. Many protesters had demanded that, are still demanding that, but china so far, so far, stands by her. There have been no orders that all these protests cease and desist, much as there was in the week before Tiananmen Square. Lot of people use that analogy and worry about history pre repeating itself. Its clear this is not entirely resolved and could come up at the upcoming g20 meeting when the president will meet his counterpart, xi jinping. Lets get a read on what the white house wants to do with this from blake burman, who is there. Reporter the daily headlines as it relates to hong kong and china continue. In fact, i was told earlier today that the president is continuing to receive updates on the ongoing situation in hong kong. We did hear from him on this matter last week and im told hes continuing to get those updates. You just talked about hong kongs leader and theres a report out today from reuters that china will not allow her to step down, even if she were to want to go in that direction. A Government Official saying of the unlikely possibility, this is at least according to reuters, that of her leaving quote, its not going to happen. That is what reuters is reporting today. Meantime, back here in washington, on the prospect of a trade deal, as we keep our eye looking ahead toward the g20 meeting, likely at least it appears between President Trump and xi jinping. The commerce secretary, wilbur ross, over the weekend threw some doubt as to whether or not that meeting will actually have significant consequences attached to it because ross in an interview said at one point quote, i think the most that will come out of the g20 might be an agreement to actively resume talks. At the president ial level, they are not going to talk about the details of how do you enforce a trade agreement. That from wilbur ross, who is part of the discussions at the highest level between the United States and china. By the way, the administration, the president , the white house, continued to say there is going to be this meeting likely between President Trump and president xi at the end of next week. China has not yet specifically said that that will happen. Neil . Neil didnt the president also hint that if xi jinping doesnt show up for this, tariffs are coming . Reporter he said if there was if xi jinping wasnt going to show up, if there wasnt going to be a meeting between the two, the tariffs would happen quote, unquote, immediately. But then also, when the president was asked last week in the rose garden what is the timetable for potential tariffs, he said there is no timetable, its only here, he pointed to his head and says no one really knows the timetable. He seemed to kind of blow the doors open on anything happening as it relates to tariffs and the meeting with xi jinping and keep in mind, the last time these two met which happened to be in argentina, the administration had been saying that tariffs were going to go into effect after that dinner meeting. Then they had a nice dinner meeting and the tariffs were paused. So its one of those, i know it sounds cliche, but anything could happen or i guess as this president says, well see what happens. Neil my personal reaction is right here. Im not going to share that with anyone. Thank you, blake burman. Lets get the read on all of this with peoples united adviser. We have fox businesss susan li and Fox News Contributor liz peek. We already know wilbur ross, the commerce secretary, has also said the president is perfectly happy to slap further tariffs on china if no deal is reached. Is that likely, in your eyes . I dont think anyone in this administration is happy to move forward with those very very onerous tariffs because i think that is the breaking point. We will certainly then be at a point where prices have to go up on consumer goods. It will have an impact on Consumer Spending and on our economy. Nobody wants that. Neil he must know that. Of course they know that. On the other hand, he has to have that position or else the chinese arent going to take him in the slightest bit seriously. Of course, you have to have lots of bluster and force going into this meeting. Wilbur ross, i take exception a little bit with the way people have translated what he said. I think its clear trump is not going to sit down with xi and start spelling out codes of product lines and what the tariffs should be. They will either agree that they got to get this thing done and put their people to work doing it or they will not. I think it is going to be an incredibly important determination. Neil then we have the wild card of hong kong, how this is handled. A lot of people breathing a sigh of relief this didnt end up like Tiananmen Square. I know that was a real concern. But its not resolved. Xi is still in power. They havent exactly fired her. Hes really put himself in a tough spot. Hes awakened the people of hong kong. They realize that boy, this could have gone through and been a real disaster for them. Hes made himself look weak heading into the g20. He wants to go in from a position of strength and neil you know whose idea this was . Was it her idea, was it chinas idea . Its being positioned as her idea because of a problem with a murder in taiwan. This has all of the fingerprints of the chinese, of beijing, all over it. Then also, theres a lot of ethnic unrest in china. If xi looks weak with the chinese people, that could foment other problems within china. Hes got three real problems and none of them have easy solutions. Thats translating into trade negotiations as well. It seems president xi is willing to take a step back from a hard line stance as he could have taken with hong kong in the case of the extradition bill. If hes willing to take back and also negotiate, what does that mean for g20 negotiations for trade and President Trump . Neil what would happen next if he didnt follow, some feared a Tiananmen Square reaction. I really dont want to go that far to say its a repeat of Tiananmen Square. We said that in 2014 as well, especially with young kids neil its different with china, its an economic power today. Thats right. Its very different optics when you are rolling in tanks to hong kong which has traditionally been outside of mainland china. Neil you didnt see that as a real possibility. No, not at all. Neil the reason why i mention it, you got to remember, i think im getting this right, at the core, china will defend its turf more than it will defend capitalism. At its core it might remain a bully and if push comes to shove, they will shove in that direction. That didnt happen, you know. I think we have to recognize that china is really different now than it was in 2014 or during Tiananmen Square, when obviously it was still an oppressive state. Under xi jinping it has become truly authoritarian. One of the reasons extradition treaty has taken on such moment is because people were disappeared off the streets of hong kong last year and mainland china. If you remember, advisories went out to u. S. Ceos saying be careful of traveling to china. This is a dangerous regime. And whether lam takes the fall here, which the ft had an editorial today saying it was her idea but also because they dont want beijing to look weak, so its better for her to apologize, in other words, and say no, no, its a big mistake, than for beijing. Gosh, i just think the world has a very different view of china today than it did even five years ago and rightly so. Its a different country and a different kind of regime. Neil do you think, guys, china is looking in terms of getting a trade deal done with the United States as polls show this president will have some trouble . Its very early, you always remind me of that, but it doesnt look good in battleground states and they might want to wait him out. The problem the president has is the more he heightens the trade rhetoric, even just the discussion of tariffs, not the imposition but just the discussion, undoes a lot of the benefit of the tax cuts that he put in. So we had the very good stimulus from the tax cuts, the regulatory relief. We are undoing that. We keep a sharp eye on Business Capital spending. Ceo surveys, Business Capital spending has really fallen off. So as we get closer to the election, the bad news of all of this is really going to be festering at the worst possible time for the president. So going into the g20, theres a lot of pressure on President Trump and president xi to basically get something going. China also invested 100 billion r b into the Banking System overnight because they want to ensure they get to 6 growth for the year. I would say both probably need a deal, as we have been saying for a long time. Neil they have more flexibility. Politically, yes, because they dont think in fouryear president ial voting cycles. Neil you think they are waiting him out . No. Well, i dont think they have a year and a half to wait him out because the economy is slowing as well and they are taking a hit from the tariffs. I dont think we will see a deal in 18 months. By the way, i think its pretty hard for them to assume that a democrat, if a democrat were to win, could really reverse all this thinking. I mean, america now understands and boy, labor unions sure understands they have been really whipped by china. That has become a talking point on both sides of the aisle. Neil is this going to go into effect soon . I was surprised china counted for more than 80 of our global phone imports, 94 of our laptops, 98 of our video game consoles. There arent alternatives, right . But you know whos responsible for that . How did those companies that are importing all those things become so dependent on a country that we all know to be unreliable . This goes back two decades. There is turkey, vietnam, thailand. People are now moving to some of those other suppliers. China is no longer as cheap as it was before. Thats why. Neil whether or not we get a trade deal, wouldnt this trend continue where you look for alternatives like vietnam, thailand, mexico . That trend started five years ago because when people say cheap, they dont think of china in that same sense as they did maybe ten years ago. I think that transition has already started. Thats why i think that goes back to china probably needing a deal, not in 18 months but fairly soon. What you may see is the strategy remains the same. As you said, its bipartisan. Chuck schumer was out saying he backs the president being tough with china. Where the democrats may try and differentiate themselves is on the tactic side and say look, President Trump has picked all these trade fights with all of our european allies. Instead, what he should be trying to do is build a coalition of the willing. So i think the democrats will try to attack him on the tactic side, not the strategy side. But that will give them an opening that the president really needs to think about and improve his negotiating tactics. Neil a lot of our allies are quietly rooting for the president. Theyre just not saying it because they think, to lizs point, if he doesnt do something its going to come back. Take a harder line because other administrations have been negotiating and trying to negotiate for many, many years. Gotten nowhere. Yeah. I would say thats very true. President trump has brought them to the table to actually negotiate on some things they see as national interest, meaning nonnegotiable. I think hes made a good entry way. Neil quickly, you raised a very good point. If this isnt resolved, all of a sudden you have higher tariffs, you are looking at at reelection time even if the economy is good and you are facing that, thats a headwind. By the way, we got kind of a big red flag today on that with the Empire Manufacturing number which was down hugely, into negative territory. First time since 2016. Look, i think trumps team has to be looking at this stuff and saying we have to fix this. Hes going to be running on the economy, absolutely. Thats what hes running on. Hes not going to close the border. Got to run on the economy, and right now, thats a little bit up in the air. Neil the fact you said hugely. I know. Neil the dow up about 49 points. The president kind of unofficially kicking things off with his own reelection with a planned rally in orlando. But hes having some difficulty even in that state. After this. Im really into this car, but how do i know if im getting a good deal . I tell truecar my zip and which car i want and truecar shows the range of prices people in my area actually paid for the same car so i know if im getting a great price. This is how car buying was always meant to be. This is truecar. Neil all right. The reelection on the part of the president of the United States is on. He officially kicks it off in orlando tomorrow. Politico White House Correspondent gabbi orr reports the campaign will be a whole lot different than the way it was structured in 2016. How so . Reporter well, look, the president s entering his reelection with a much Stronger Team and a much Stronger Campaign operation than he had in 2016. I wrote a story about this last week and i talked to a number of officials who are involved in his 2015 president ial campaign and one of them said it was like experiencing a slowmotion plane crash, that they were essentially on this sloppily organized thing and there was nothing they could do about it, yet here we are heading into 2020 and its the exact opposite. The president has an extremely organized campaign, he has an unparalleled data operation, something that none of his 23 democratic rivals have been able to match so far. He has a war chest of 40 million and 82 million if you combined it with what the Republican National committee has also raised and on top of that, he has a growing number of field staff that are already in place in a number of regions that hes going to need to win in order to get a Second Chance in the white house. Neil you know, the dismissing some of these polls that are out, and hes right at this early stage to put much account into any of them, but are you concerned that pennsylvania comes to mind, michigan comes to mind, where theres record unemployment rates and so how much of a concern within the campaign is there that the bang for the economic improvement buck hasnt materialized in these states, early as it is . Reporter Campaign Officials will obviously say we are 17 months out, theres no way we should be taking no reason at least we should be taking any of these polls seriously. But they will simultaneously admit that there is an effort under way to make sure that voters recognize what President Trump has done on the economy and is getting the credit he deserves for it. So there is an effort to sort of reach out to voters, to make sure they are aware of the economy, of the unemployment rates, of the job creation that has been a primary aspect of his administration, and hopefully that translates to greater support in some of those rust belt areas. As you mentioned, we havent yet seen that in polls although again, we are so far out that i think if they can be successful in making sure voters are aware of those things, we will start to see a steady rise in President Trumps poll numbers in states like michigan, wisconsin, pennsylvania and florida. Neil we shall see. Thank you very, very much, gabby orr of politico. In the meantime, the president is aiming to corner democrats when it comes to health care. Republicans say just let go of this, it doesnt help us, but the president vows to debut a phenomenal plan he thinks will do the trick and change peoples perceptions that republicans are more critics than creators when it comes to health care. Former special assistant to President Trump on this and whether it can work. What do you think . Hello. Neil is this going to work, what the president wants to do to revisit health care . I guess hes been warned by some republicans, not a good idea. What do you think . Well, why would we cede the issue of health care to the democrats who presented us with the obamacare disaster. It absolutely makes no sense. Now, this was one of the things the president campaigned on in 2016, the repeal and replace. We have had incremental success in the fact that you know, the mandate has been repealed under the tax law, and hes given associations and Small Businesses the ability to kind of group together to offer plans across state lines. So this is an issue that republicans can win on. Its a Kitchen Table issue, an issue that affects millions of his forgotten men and women in america which is who they campaigned for. I think its something he should pick up and definitely lead the way on. Neil would republicans then be standing by the notion that every american should have health care . No. I mean, not every privately, they should have the option to have health care, private health care. They should be able to shop around across state lines to find the plan that best fits them and their family, and it should be marketbased approach. It should not be heavyhanded, this government socialist medicare for all, where every familys going to be taxed 17,000 basically per year to have a system like the va, which has failed many veterans. Neil another argument is, are they going to, will every republican stand by coverage for preexisting conditions . Yes. The president has already said that. In every plan hes brought forward he has said explicitly that he will protect preexisting conditions. I think that will be in the president s plan. Now, it hasnt been unveiled. He said in the coming weeks he will release it so i dont want to get ahead of him but in everything hes done thus far, he has vowed to protect preexisting conditions. Neil he will continue the private Health Insurance programs that we have, he would not obviously be going the direction Many Democrats have, medicare for all or tax the private Health Insurance field to the point where you dont even have private Health Insurance. Hes not going that route, right . No, no. Theres no indication he would ever do that. He wants this to be a competitive marketplace where you have the most options and that comes at a lower cost because we will have more competition in the health care arena. Neil this is all about having a plan ready. It might not go anywhere in the house. It could in the senate. But its something to show voters in 2020. Its something to lead on. This president is not happy with the status quo. The republicans quite frankly on the hill should not be, either. Just because something is hard to solve doesnt mean that it shouldnt be solved. People were elected to congress to work on behalf of their constituents and health care is a leading issue that comes up, when you do the polling, when you ask people what they care about, yes, they care about the economy but they also care about health care for their families. So this is an issue the president should take up and quite frankly, should urge congress to do the same. Hes going to be leading by presenting his plan. Neil we will watch closely. Thank you for taking the time. We appreciate it. Thank you. Neil interesting little item from morgan stanley, by the way. I want to pass this along to you. They see an escalation in the u. S. china trade tensions and that it will ultimately lead the Federal Reserve to lower u. S. Interest rates to near zero by the spring of 2020. They are right around 2. 5 right now so that would be assuming all the rate cuts we have seen will be unwound about a year from now. Pretty aggressive timetable. More after this. At comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welcome to the neighborhood, guys. There is reward. Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. Is where people first gathered to form the stock exchangeee, which brought people together to invest in all the things that move us forward. Every day, invesco combines ideas with technology, data with inspiration, investors with solutions. Because the possibilities of life and investing are greater when we come together. Neil all right. The u. S. Campaign against huawei is apparently taking a toll. The company expecting a 30 billion revenue hit over the next two years. Thats for starters. Connell mcshane with a very rare look inside huawei headquarters today. Hes live in china. Connell . Reporter hey, neil. The comment you are referring to came from the founder of the compa company, named ren. He says huawei at this point is like a badly damaged plane, saying smartphone sales outside of china could very well drop by 40 . Yes, the campaign against huawei is working from the u. S. Fwo governments point of view but the other thing he said and the thing many executives we spoke to today said is that the crackdown will not put an end to huawei. It was a 45minute drive to huaweis corporate headquarters, a rare opportunity for an American Television crew to tour that facility. We were met by an englishman, the huawei vp, andrew williamson. We knew just by the extension of the invitation, huawei had a story they wanted us to hear. My first questions this. Why are we here . Why are you here. Well, we have always been very open and transparent about inviting journalists like yourself, news organizations, to come and visit huawei. I think theres lots of misunderstanding, false information out there about what we do. Reporter the biggest misunderstanding according to williamson is he says theres no connection between huawei and the chinese government. Now, that brought us straight to the most sensitive of topics, whether huawei can be used to facilitate spying if asked by the government here in china. We operate in over 170 countries around the world. Many of those countries are now deploying their 5g networks. So we work very closely with those partners to build out the hardware. But at all times, the telecom partners, customers, are completely in charge of all the data. Theres no need for us to touch any of the data at all. Reporter theres no need to but i want to be clear on this point. Theres no need for you to, but could you . No. We couldnt do it without the permission of the telecom company. Reporter could you do it without their permission hypothetically if the government asked you . Is it technically possible . To my knowledge its not technically possible. Reporter after wrapping up with williamson, it was on to huaweis research and development center, where we were given a demonstration of the rollout of 5g. This is something you will be using in the future . A huawei executive told us the company has been preparing for a potential crackdown by the u. S. Government by developing its own chips. For the past eight years. Theres no timeline given to us as to when huawei will have that chip business of its own ramped up enough to replace American Partners like broadcom and others that have been for the time being taken away from them. Thats an important point, whether they can get there. The executives kept referring to that as their plan b. Not something they want to do, but something they may have to do. Theres no doubt, you look at the founders comments, some of the comments we had today, theres no doubt this campaign from the u. S. Government is having a profound shortterm impact on this giant company. Neil connell, amazing. Amazing job getting access. Something most reporters, let alone americans, are never given. Touche for you. Connell mcshane will have a lot more on this throughout the broadcast day on fox business. Meantime, market watch tech editor jeremy owen what this huawei ban means. When you think about it, we talked about it before, we realize now just how far and how widespread huawei impact is, broadcom last week saying its a 2 billion hit for them. It took down a lot of semiconductor issues as a result. This is big stuff, isnt it . It really is. Cree also said the same thing, they are going to be hurt. It goes beyond huawei. Broadcom did about 900 million in sales to huawei last year but said it would have a 2 billion shortfall just in the second half of this year. You see that is also the rest of the chinese original equipment manufacturers and others that are slowing down purchases. This is going to really throw a wrench in the entire tech supply chain which was already kind of roiled especially for chips over the past year. Neil the president seems to throw in at the last minute the possibility that huawei could be part of our ongoing talks with china. I guess hinting that the punishments that are going to be meted out, you cant do business with huawei, et cetera, might not pan out. What did you make of that . Its such a moving target. I try to point out to people that qualcomm was going to get acquired by broadcom and the Trump Administration blocked it and used huawei as the major reason they were blocking it. Now we have qualcomm and the white house supposedly reportedly, according to reuters, asking trump not to put in this huawei ban to help them so they can continue selling chips to huawei. This is how crazy and convoluted all this stuff can get. So trump is trying to deal with it is just throwing another level of that on to the mix. Neil know what i didnt realize until talking to you about this, how intertwined huawei is in everything. In every technology company, in every country. It is humongous. I dare say, little more than a year ago, most americans had no idea what they were about. Right. The tech supply chain, i dont think most americans, most people know how crazy that is and how much stuff is flowing over borders and going around and coming around. Companies are both customers and suppliers to some of these. Huawei does supply some equipment, the same companies they are taking components from. All of this goes back and forth. When you throw a wrench in there, it can have ripple effects way beyond what even we can understand or predict, right . Neil jeremy, if we dont do business with them but other countries do, even though we have said if you do business with this company for the time being, you are persona non grata with us, how likely is that . Well, for smart phones its one thing. For 5g equipment, its another. We are really putting the pressure on the 5g equipment. So we are going to see if that happens and huawei is saying thats looking better than the smartphone. The smartphone business may be the one that really gets hit outside of china. So this is doing a bad thing for their consumer brand, obviously. People who would buy huawei phones before and not even think about it are now thinking about it, right. So thats going to hurt that brand. For the 5g, we will have to see. The ban did get delayed for 90 days. I would have to think they are thinking twice, these countries. Neil thank you very, very much. Good catching up with you. Market watch tech editor, jeremy owens. Speaking of the president , we just mentioned his role, how far to go with huawei. Its a good thing we ripped up that Iranian Nuclear deal because the iranians Just Announced they are going to violate it. After this. My experience with usaa has been excellent. They really appreciate the military family and it really shows. With all that usaa offers why go with anybody else . We know their rates are good, we know that theyre always going to take care of us. It was an instant savings and i should have changed a long time ago. It was funny because when we would call another insurance company, hey would say oh we cant beat usaa were the webber family. Were the tenneys were the hayles, and were usaa members for life. Get your usaa Auto Insurance quote today. Thats it. Im calling kohler about their walkin bath. Nah. Not gonna happen. My name is ken. How may i help you . 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What do you think . Well, i just recently met with the lead inspector with the international Atomic Energy agency thats over the deal with iran. Iran has been doing a number of things that are approaching or preparing for breaking the deal, all in direct observation of the iaea. Its somewhat been anticipated they were going to be going down this path. As you know, the deal itself had three major flaws. It was limited in its time period, meaning there were things they were going to be able to do anyway in ten years when the deal had been constructed, it did not include missiles, did not include malign activities the administration has been concerned about and it also had a very limited inspection regime. Thats why the administration through a maximum Pressure Campaign has been trying to bring iran back to the table to renegotiate this deal. Clearly, as iran continues to escalate its activities in the area, its bringing it closer and closer to everyone realizing the deal is probably not going to be renegotiated and consequently neil they ramp it up. Are you concerned that wait a minute, faulty or problematic as the deal was, at least something held it together. Now theres no swiss cheese, nothing. Well, iran claimed they were going to comply with the deal as long as the europeans complied with the deal. They are going to have some explaining to do as to why they would be now breaking a deal they had committed themselves to. But the deal itself is flawed. They would have had a path that would have we would have been facing a nuclear iran so its very timely that we bring this forward and with pompeo and the administrations maximum Pressure Campaign. I do think theres opportunities for allies of the United States and iran to come to the table. It may get noisy for awhile but i think if our allies come to the table with us, iran should be able to come to the table. Nl neil on that front, you dont doubt the evidence out there that iran was and is behind these tanker attacks and other things . I mean, some of our allies apparently want more proof. What is it . I dont. I think, you know, one of the questions you have to ask yourself is who else in the area would have been doing it and who else in the area has the means to do it. Neil the cynical view is someone could set it up to make it look like them. These are fairly sophisticated attacks. Neil why would they do that . Why risk our wrath . They were already doing covert malign activities in the area. This is the first time they are sort of surfacing as being evidenced, as doing these activities, a clear dotted line. I think its clearly to show the International Community that they do intend to through aggression and attacks in the area, call attention to the International Community, their displeasure that their economy is tanking, its not growing as a result of u. S. Sanctions. They are having great difficulty in convincing anybody to invest in iran. They are not a very Good Business partner. Neil china cozying up to russia, i know mike pompeo, secretary of state, is saying the administration is considering a full range of options on iran. Do you know whether an outright attack is among them . You know, i think the secretary has rightly said military options will be preserved but at the same time neil not military options alone. Right. If you only look at the issues of if iran should attack our allies, or attack the United States, we just recently in the Armed Services committee had a debate, the democrats brought forward an amendment that would have prohibited any military action or response to iran. This wouldnt even allow us to protect israel or to protect our nato allies. I think neil they pulled that. Ro khanna from california. Neil someone must have gotten it. Once we began having the debate and the chairman saw the difficulties this amendment would have prohibited options for the United States, took it off the table. We will have that debate again as it comes, as the bill comes to the house floor. But i think pompeo through his maximum Pressure Campaign is using all options of sanctions, working with allies, working with our International Partners to place pressure on iran and thats certainly the way to go. Neil sanctions is the way to go right now. At this point, even the sanctions are increasing, tightening, and that i think certainly will hopefully bring iran back to the table. Neil we shall see. Good seeing you in the flesh. Be well. Meantime, airbus is getting a new plane deal and boeing, as if it needs the hassle, is missing out on a 100 jet order that probably would have gone to boeing. Pilot and aviation analyst kyle daily on all of that. Kyle, its interesting, the argument was that this was boeings to lose and they lost it, presumably because of the 737 max issues. Was that what doomed it . You know, with the 737 max issues, we just dont know what to expect. The timeline for the airplanes to get back in the air is pushed back time and time again. Quite frankly, boeing has a very good record of building airplanes with the exception of the 737 max, but they have a horrible p. R. Strategy. They should be talking to the media more. They should not be doing these prerecorded ceo messages and these, you know, press conferences. They should be putting the engineers out there and showing us what they are actually doing to correct the problem. Neil they talk about this software and they try to, you know, address that with other countries that might want to buy their planes, other companies, but when they all but acknowledge and the ceo has admitted the mistakes with the 737 max, it both helps and hurts, right . It does, but you have to keep in mind there is such a backlog and demand for commercial airliners. Right now, airbus has over 7,000 aircraft in the backlog pipeline. Neil is that right . Yeah. Boeing has just over 5,000. Neil how much of the boeing, sorry to jump in, how much of that is max or maxrelated planes . You know, i think theres some but the bottom line is these Airlines Need the airplanes. Theres only two major players. The only players in the game right now. So if you need an airplane, you really have no choice. The airlines right now are flying with heavy passenger loads, especially during this busy Summer Travel season, and the airlines hands are tied. I dont think its really going to affect boeings bottom line in the long run. Neil to be the first group of passengers on that first max thats given permission to fly, thats going to be a tough sell, isnt it . Its going to be tough. In my opinion, the boeing 737 name could be scarred as a result of this. Perhaps should they rebrand the airplane, maybe do some slight modifications and call it something else, thats an option out there. But i think this is going to go on for years. It will be in the back of everybodys mind. Once the airplane does fly, its going to have the Media Attention around the world focused on it and whoever doesnt know about it now, will know about it then. Neil you can rename it anything you want. People will be aware. Interesting stuff. Very good. Meantime, the president said if you like what you see in the markets, you like what you have seen in the economy, you dont see him getting reelected, there is going to be a crash. After this. My insurance rates are probably gonna double. But dad, youve got allstate. With accident forgiveness they guarantee your rates wont go up just because of an accident. Smart kid. Indeed. Are you in good hands . At comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welcome to the neighborhood, guys. There is reward. Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. Neil all right. The president warning you dont elect me, theres going to be a market crash. That simple. Gary b. Smith and phil flynn are with me. First, its kind of a risky thing to say one way or the other, but what do you make of what the president is saying . Everything you have been seeing happening with the economy, the markets and all the stock buybacks and great earnings and all of that, all goes if im not reelected. What do you think . Well, i think there are two camps here. First of all, is it good politics. Its fantastic politics. Look, everything is rosy around here. Nothings crashing. The market is at or near new highs. And hes saying listen, you dont want that, then dont elect me. From the economy perspective, you know, a crash between now and november of 2020, i dont know crash, but i think theres a lot of ominous signs out there for a real market selloff. Neil phil flynn, what do you think . I dont see that right now. Im actually pretty optimistic about the way the economys going. Usually if you are going to get a crash in the market before november, it usually comes after irrational enthusiasm. Were not seeing a lot of that in the market right now. We have seen a lot of sideways action. When it comes to donald trump, you know, even though, you know, hes probably exaggerating that the stock market would crash if hes not elected, i do worry what would happen if Bernie Sanders got elected, right . What that would do to the market once he starts to privatize, take over private businesses, take away property, raise taxes. That would be where the economy would crash. At the end of the day when we talk about donald trump, listen, when donald trump got elected the first time, just remember what all the pundits were telling you. The stock markets going to go down 10 , 11 . Hillary clinton is the only savior for the stock market. What happened . We had one of the most dynamic stock market rallies in the history of the world. Why . Less regulation, government getting out of the way. So i can see why donald trump is saying hey, if we reverse all of that, we will probably get back to the Hillary Clinton election day which would be a major correction from where we are now. Neil you know, gary bv. , you cn flip that around. Most president s talk about, we see from Ronald Reagan when he beat jimmy carter the first goround, his argument was are you better off than you were four years ago. Americans said actually no, were not. Four years later he said are you better off than you were four years ago when i came in. Yes, we are. But he didnt make the next leap to say well, if you want to risk this, and see a crash, then vote for the other guy. So i dont know whether thats more of a personal kind of a question or a risk that the president takes all but inviting a market disaster if its his reelection that doesnt happen. You know, its interesting. I dont know if hes inviting it does seem kind of like a little bit of whistling past the graveyard, but it goes to the point that phil made. I agree with everything that phil said but he made one comment and he said you know, the markets kind of moving sideways and that gets back to my whistling past the graveyard comment. There are so many other shoes that havent dropped. We still dont have a resolution on china. We still have, now we are dealing with oil tankers being blown up. We still have definitely a european economy thats in a stall. We have the China Economy without the tariffs is in a stall. Our economy, by most metrics, is in a stall. Maybe im just worried about that other shoe. Maybe im always worried about the other shoe, though. Thats the ominous thing that im worried about. Neil yeah. You should be worried. Balance it out, whether its justified is anyones guess. I was going back, the president presiding over a good economy is always reelected, then i went really far back, 1892 when republican president Benjamin Harris was taking on the former democratic president grover cleveland, the economy was pretty good, but, but there were talks that the administration the 48 tariffs in effect and they were widening, and it undid him. He ended up losing. Grover cleveland got elected, the first president to serve two terms though not concurrently. I share that story not to bore you because god knows you cant be bored further still with what i say, but it was a reminder that we cling to yeah, the economys strong, but, but, but, an issue like tariffs are a black Swan Development like much more expensive goods coming into this country, it could boomerang on you. I think it could. I think yeah, i do think go ahead, phil. Sorry, i apologize. I thought he was coming to me. I do think thats a risk. I agree with gary b. The china trade war thing is really hurting him both from a political viewpoint and from an economic viewpoint. But as they move closer to a deal, we will get the equal and opposite transaction. When we talk about grover cleveland, my best memory of him is that they introduced him to the leader of the Chicago Bears and he goes great, i love animal acts. I dont know if you can go back that far. Neil the issue there, not so much the Chicago Bears, but the issue there was a Strong Economy might be one thing but the prospect of paying a lot more for goods in that case back then up to 48 , that can zoom you. Yeah. Yeah. Exactly. Thats one black swan. I will give you another black swan. All of a sudden the entire, you know, whether the republicans or democrats, they all seem to be aligned against big tech. Big tech has been the driving economic engine for at least the last 25 years. They are looking to kill the golden goose out there. Those are the kind of things again that could start to creep up and you know, then all of a sudden you have uhoh. Neil gentlemen, thank you both very much. For those of you who doubt me in the coverage of president harrison, i was there. I covered that administration. What a doozy. More after this. T i witnessed, but i can tell you Liberty Mutual customized my Car Insurance so i only pay for what i need. Oh no, no, no, no, no, no, no. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. I come facetoface with a lot of behinds. So i know theres a big need for new gasx maximum strength. It relieves pressure, bloating and discomfort fast. So no one needs to know youve got gas. Gasx. He comes from the Southern Coast of ireland. So no one needs to know youve got gas. I think its why weve been doing this. Forever. My dad has roots in the mountains of northern mexico. Home to the strongest runners in the universe. My dads ancestors were african bantu. 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