Transcripts For FBC Cavuto Coast To Coast 20240714

Hence were noon in the eastern part of the United States and it has yet to begin formally trading. Were watching that. Were watching crosscurrents of the markets, buoyed about prospects for possibly a china deal and lower Interest Rates at that came with it. Although off the earlier highs, largely on concerns we might be staring down a possible conflict if iran ever since they shot down a u. S. Drone overnight. The concern that it will spike oil prices. That is exactly what is happening but it has not spilled over into the rest of the market. President trump, meanwhile as we mentioned earlier will meet with canadian Prime Minister Justin Trudeau with all his finance ministers in tow as well. Possibility of a proverbial pool spray. You know the drill with that. The canadians are here in town to make sure they nail down the agreement with the United States along with the mexicans. The mexicans okayed it. The canadians okayed it. Theyre worried about the chilly reception on it is getting capitol hill. Blake burman from the white house. Hey, blake. Reporter there are highlevel meetings across washington as it relates to iran. Capitol hill Senior Leaders were briefed with latest what is going on with that country. Back over here at the white house, the top members of the Trump Administration were over here this morning as well getting a briefing on iran as the drone was shot down earlier today. Iran says this high level, High Altitude drone entered its airspace. That is why they shot it down. However the u. S. Says it was not in iranian airspace. It was in International Airspace in airs or skies over the strait of hormuz. We got initial reaction from President Trump this morning which he sent out this tweet right here, six words, quote, iran made a very big mistake. Now just before that drone fell out of the sky the president spoke to sean hannity last night and sort of downplayed any concerns as it relates to the u. S. And iran. Listen here. Dont worry about a thing. Everything is under control. Dont worry about a thing. Iran is a of different country. I will tell you, much different today than i took over. When i took over it look like there was no stopping them. Reporter that was the president last night. Fast forward to today, that drone falls out of the sky. Speaking of the president , right now about 200 feet to my left the door of the northport at this cois opening. He will welcoming canadian justin Prime Minister here any moment. We await to see the first oncamera comment from President Trump as it relates to iran. Neil . Neil thank you my friend, very, very much. Take you back to the New York Stock Exchange theyre waiting on tenterhooks. Slack has 10 million users worldwide but heavy anticipation ahead of this because of a direct listing, floats the existing stock right not market. Dont have to have underwriters. Not everyone in there trying to secure the market or get a good adequate price, what happens from there. There is a lot of tension around that to see if it works. Other Companies Like the idea. First they save a lot on costs associated with coming to market. There are no underwriters per se. There are no brokerage giant with their hands out f this goes well expect airbnb to do something similar later this year. Weve seen spotify last try this in april 2018. In this case, of course were trying to take early cues from what happened on nasdaq with a company debuting. That went the traditional route. Grocery out let coming up 22 buck as share, up 35 since. This will telegraph how new offerings go in the market. A little bit different beast by not going the traditional route a lot of ipos go. This could say a lot about the depth and breadth of this market. Dow jones newswires glen hall, sean ohara, if markets stay on this, good news behind offerings or these threats of war right now that could kind of poopoo all of that. Glen, what do you think . What is dominating the themes right now . Even though were well off the highs the fact of the matter were still up a lot and the s p is in record territory. So the war fears not to seem to be dissuading buyers. Not yet. We havent got the whole story what happened with iran overnight. The expectations are it wouldnt escalate beyond this, right . And if that is the case, then you get back to the fed versus the world in the sense of, if the global economies are slowing, threatening the u. S. Economy the belief that the fed will get on its white horse and come to the rescue. Neil you know i always think that markets like to just get uncertainty pushed, you know, out of the way, sean and if you can just sort of deal with iran on a daybyday thing it, doesnt blow up in anyones face. It looks like we have promising developments with the chinese. Were a long way from concluded talks but progress on that front, clear indications that the Federal Reserve will have the president and i if es by extension the markets back by cutting rates if that is what it calls for, that has got to be a lot of good news there . You know, neil the market always likes to climb a wall of worry. What were hearing from the fed yesterday theyre in the back room readying the punch so the party can continue and by the way they will invite tina back to the party, tina is there is no alternative f youre a yield investor you will be forced to make the decision where you put your money so you get the yield you want. That will be risk assets, dividendpaying stocks. We pay dividendpaying stocks with high Free Cash Flow and publiclytraded real estate as alternative to generate income but only specialty publiclytraded real estate, targeting Distribution Centers or data centers and cell phone towers. I think that is what is going on. I dont think the market react to drone thing yet. People dont know what will happen. The president doesnt like these wars. I dont think that will be an immediate response. The fed is setting the table what is going on right now. Neil glenn, the president is on the north portico greeting canadian Prime Minister Justin Trudeau. He has been very busy trying to secure american backing for the threeway trade deal between the United States, canada and mexico. He had a bit more of a battle than he planned for in the night. What was pretty significant resistance from democrats, led by nancy pelosi, who wants job protections built in for American Workers. That is far from a slam dunk, isnt it . Yes it is. And remember that he also stoked things a little bit when he brought tariffs back into the situation with mexico over the issue on the southern border. Those things rallied democrats around the different agenda items. You know i dont think at this point we see that the deal is being in jeopardy but there is still a lot of work to get it through congress. Neil sean, when you look at this market, the collapsing rate environment, were lowest on 10year note he especially when it dipped below 2 overnight in almost three years that it improved multiples about the market. Without getting wonky, some might deem that is a little rich is less so. What do you think . I think that is always part of the calculus you have to do with Interest Rates where they are. The predominant feeling in wall street you can accept higher multiples as a result of that. So that is what is going on right now. We are above historical norms on pe ratios. But there are a large parts of the market you can buy at a discount to current p etches that generate a lot of cash that are highquality companies. As we go into this later phase and we start to see what the fed will do with Interest Rates we always have to be cautious. Maybe what theyre saying to us theyre seeing something as far as slowing is concerned and lowering Interest Rates is met to combat that. That is not necessarily good for stocks in the long run. I would paring back to high pe stocks, shift money to low pe stocks with lots of cash flow in the fact that we have opposite with the fed which is a slowdown. Neil thank you. Slack, messaging tool for corporate offices and the like has opened. It is now at 39 a share. It instantly gone up 50 . The price coming into this, is then again about in the 22 to 26dollar range. 26 i should say. Remember it was, it is not priced like your typical initial public offering. There are no underwriters involved. Comes to the market, takes chances, one size price fits all. Flipside a inside holders can drop shares immediately if they want. No indication of that right now but it is having a very, very good opening right now. Gerri willis has more from the New York Stock Exchange. Gerri . Reporter first trade on the stock 38 1 2. If you will remember the Reference Price that the New York Stock Exchange made public last night, 26 bucks. They did very well indeed. You can see the pricing right here. It went on for a while. It was longer than spotify to get the thing out of the chute. What is so interesting about a direct listing handled by citadel security. This is capitalism like you never see. Marketmaker matching sell and buy orders. Very clear thing to do. No Investment Bankers who add in their layer of fees. Slack Company Becoming public. This is incredibly popular category frankly. Cloud software category. A lot of companies coming public in that category have done very well indeed this year. Let me tell you, zoom video, 70 gains on their first day. This company has 10 million daily active users. What is interesting about that . Only 88,000 corporate users. Few users are actually paying for privilege. There has to be some kind of a conversion of people to paying customers. As you see here, Stacy Cunningham who runs the exchange is walking away. The bell was rung with the company as it became public. This is different public offering. This is direct listing this is where direct Market Makers come into play. This is not automatic. This is not being done by machines but real people who match the orders of buyers and sellers to come up with a price that actually makes sense. Now the big question, will direct listings become the order of the day . Is this the new thing . Weve been talking to john tuttle, Stacy Cunningham. Only small number of Companies Say this makes sense. Why . You dont raise any cash. Instead employees hold the stock, maybe they cash out, use the money for something. Vc venture capitalists can cash out. At the end of the day. It is a interesting listing. New York Stock Exchange leading the way on this. They say it is the new thing. Well have to wait and see. Neil thank you, gerri. A little more with this, reason some are intrigued about it, democratizes process insiders, big dealers, all the way down to factory workers get a chance to participate and also to be treated equally. One of the allures of this, spotify proved it, it reduces or supposed to reduce the crazy swings you get on ipos. For example, if an underwriter or trader disproportionately mismanaged it, make up for bad pricing, tries to rig something that is the fear, you dont get a real sense of the companys value for quite some time n the case of facebook that took six months after debacle of an opening here and shortly thereafter. With this the hope is cooler heads prevail. Judge the company on its haveal you that perhaps this one makes money. Stuart controls 8 1 2 which would value his holdings a little north of 2 billion since at 26 a share this was valued at about 15 billion. Add another 15 to that, or 50 to that now, now youre looking at, you know, assets that value this company as close to 23 billion in his take obviously, you know, advances mightily here. Venture firm xcel by the way, it is going to be a big winner in all of this. This is the same firm that made 12 milliondollar investment in facebook. That stake is worth nine billion dollars. Took out two million in crafts, remember that . That is worth 2. 8 billion. That was at the 26dollar price. Were all of sudden up to 40 bucks. At least as early go rounds seems to have succeeded. Watch it closely. If it is wellreceived thus far, a lot of Companies Looking to go public, you know what . We can afford to get rid of the middleman, get rid of underwriters all the people with their hands out in our pockets. Market purists like it, it is fair to everybody. Everyone is doing fairly well with it. Meantime the president was asked a little while ago whether the u. S. , would ever strike iran. He says you are going to find out. After this. We like drip coffee, layovers and waiting on hold. What we dont like is relying on fancy technology for help. Snail mail we were invited to a y2k party. Uh, didnt that happen, like, 20 years ago . Oh, look, karolyn, weve got a mathematician on our hands check it out now you can schedule a callback or reschedule an appointment, even on nights and weekends. Todays xfinity service. Simple. Easy. Awesome. Id rather not. Neil two big offerings today, slack technologies, messaging firm for corporations for wont of a better term here, going public, debuting a few minutes ago, well above the offering price. Technically not a offering price in the auction they set up for this. But it is up smartly and made billionaires of its cofounders. That is one side of the story. The more traditional ipo on nasdaq, grocery youd let chain coming public 22 buck as shot. Up north of 30 . Very strong debuts. Keeping an eye on both of them, what they could portend for Market Going Forward that had a nice backdrop. Were well off the highs. Real quick peek before we move on to other stories, to the dow that surrendered a lot of gains on bellicose talk from the president , from iran that something is up, being interpreted as something warlike. Whether the market is getting ahead of itself. We had erased what had been better than 200 point gains on iranian concerns. You may have heard they shot down a drone, they say over its waters, we say over International Waters. Were trying to iron out what the United States is going to do in response. Then there is joe biden pushing back criticism from likes of cory booker, Kamala Harris, on comments what he had to say about segregationists senators. How do you feel your democratic rivals say you have issues talking about race . They know better. Are you going to apologize like cory booker. Apologize for what . Cory should apologize. He knows better. There is not racist bone in my body. Neil all right. Independent womens forum patrice lee onuka. The dustup amicable relations with senators at the time deemed to be segregationists. Its a pileon. It is not going away. What do you make of it . It is not. First of all think about his challengers here. They recognize he is in the lead. He is leading Bernie Sanders 3215 according to real clear politics in national polls. In south carolina, a state that is really important with the black vote he is leading Bernie Sanders 27 points. When we look at democratic side in 2020, race is going to be a central issue. Obviously anyone who is not towing the line, or quoteunquote, more woke than the other, theyre going to be on the losing end. That is why his rivals, his challengers are jumping on him trying to paint him not going to be for the black vote. When you think about it, neil, 1. 6 million black voters who voted for obama in 2012 sat out the 2016 election. There is some enthusiasm that i think the left is trying to really regain with the black vote. Neil he had a lock on that vote, right . So now if, if a percentage of them peel off, who do they go . Certainly Kamala Harris will be interesting. There are folks who believe that she has, she has the gumption to go up against the president. She is also a female and she is black. Im not sure if senator cory booker will get the black vote in general. They may go to those who have ideas like senator elizabeth warren. And then of course there is a growing number of blacks who support President Trumps policies. They have seen that he has, that, what he asked, what do you have to lose with my candidacy and my presidency. He is delivering on that, when we look at unemployment rates. We look at Second Chance hiring for convicted felons. These are areas that where you might see a little bit of the black vote be peeled off for the president in 2020. Neil but he is not budging. He is not apologizing, right . No, he is not. I actually understand joe biden here. I mean he is saying, listen there is something about bipartisanship in washington that gets things done. You may not like or agree with what the other person has to say, you have to find a way to work with them to get things done. Ive been reading some of these blackout lets, new outlets are trying to paint this, joe biden is saying he wants to go back to a time when seg racism, and seg seg segregation its ran washington and that those are policies he support. That is very disingenuous. The left is so far left, anyone willing to work in the middle or across the aisle is a sellout. Neil they stressed importance of both sides to work with one another. You cant have it both ways. You cant. Neil patrice, good read on this. My buddy charlie gasparino. I read tmobile or sprint i know it is not accurate until he reports it. Back and forth on this. Close to reality or not . Before i get into it. I spoke with a prominent africanamerican lobbiest about the joe biden dustup. He made a couple points. Congressional black caucus is in joe bidens camp. Neil theyre standing by him. They are standing by him. Neil do they want him to apologize . They say read the whole quote. They think in the end backlash from cory bookers and far left, there will a backlash against that, when you read the whole quote, biden saying, i didnt agree with these guys but i had to work with them to get stuff he done. Neil that is all he said. If you think you will take joe biden out with this, nice try. Keep going. Neil might be defining moment. He stood his ground but on this . On this what were hearing now, up to the minute i guess stuff on this, weve been reporting for the past week this thing is, there is a broad outline that this thing, for approval. That doesnt mean it is going to happen. It couldnt blow up, but they are progressing towards an approval, okay, a broad outline. If they do approve it, again, like i said, it is, last minute snafus are always in the cards. I reported on it in the past, it could come in as early as tomorrow from what were understanding. Heres what we are understanding from the companies. Doj right now, makan delrahim, head of Doj Antitrust Division is so worried how this might be perceived, their approval he is spending a lot of time on messaging. How is the doj approval going to be . From what we understand when they approve this thing, if they approve it, still not a done deal, anything can happen at the last minute it, will be a announcement that stresses consumer, the consumer positives of the deal. That sprint and tmobile putting this together will give up certain amount of things. They will do some concessions. It will be a deal that is, merger that is constructed that wont necessarily lead to higher prices, particularly not in the short run. Again, the deal, what we understand, there is announcement, that is imminent. Could come tomorrow. Could come monday. They are progressing towards a deal. Im not telling you that it is definitely going to happen because at the last minute it could blow up. Neil all right. But i will tell you this, they are about, this thing is about as close as youre getting, looks like it is going to happen. Like i said, neil, it could blow up. Neil we just dont know. Well we kind of do know. It is likely to happen. Neil likely. You definitely say. I have seen deals like big deals blow up, literally when people neil sounds like doing a lot of hedging . If i was an idiot i wouldnt. [laughter] neil anger management. I heard i burned a lot of bridges from being angry and arguing with people on air. Neil you . You dont seem to care. Im rubber, youre glue, right . Whatever you say bounces. Thank you, my friend. Anyway, were waiting to hear from the president of the United States. He is sitting down in the oval office with canadian Prime Minister Justin Trudeau. He is peppered with a lot of questions from iran, not surprised. Something he said that might have agitated markets. Iran made a big mistake. U. S. Drone was in international space. The u. S. Has it documented. Promising there will be a u. S. Response. We essentially took a 200 plus point advance in the dow brought that down to zilch. We recouped half that. This tugofwar continues between the promise of lower Interest Rates and possible trade deals particularly with china, this new friction in the middle east. After this. Gathered to form the Stock Exchange 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. Intand ux f sport,rst of its kind lexus ux also available in hybrid allwheel drive. Lease the 2019 ux 200 for 329 month for 36 months. Experience amazing at your lexus dealer. When your psoriasis is bad, it can be hard to see whats possible. But the possibilities become clear with taltz. The first and only treatment of its kind offering a chance at 100 clear skin. With taltz, up to 90 of those with moderate to severe psoriasis saw a significant improvement of their psoriasis plaques. Some even saw 100 clear skin. 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My sense is exactly what you see on television and what weve heard from the Central Command and that is that the iranians shot down an american drone operating in International Airspace and surveillance one at that, was unarmed and it splashed down into International Waters. Its a provocation that goes against the United States and in addition to the ones against our allies involved in the two shipping incidents where the iranians attack norwegian and japanese ships. Neil now the president did hold out, i guess what some are seizing on as a way to tighten the crisis a little bit, who knows, it could have been someone who was loose and stupid who shot the u. S. Drown down, in other words, trying, maybe implying wiggle room for iranians. What do you think of that . Possibly but the iranians, irgc, revolutionary guard have killed americans before and it would be a mistake for this administration to ignore this on the hope and expectation that this is simply an error or somebody who is not under control. These people are serious. This is allowed to continue without a clear message from the United States, it will lead to casualties. Neil secretary, thank you very much. Now to the president. He has been meeting with the Prime Minister of canada but this issue has come up. Lets listen. Documented scientifically, not just words, and they made a very bad mistake, okay . Reporter how will you respond . You will find out. Reporter are you willing to go to war with iran . Youll find out youll find out. Obviously you know well not be talking too much about it. You will find out. They made a very big mistake. Reporter detained, sir. No concerns. Well be discussing that. It will be one of the issues i think well be discussing right now with justin. Reporter [inaudible] say it . Reporter no change to Interest Rate . They should have done it sooner but what are you going to do. He should have done it sooner. You cant win them all. Eventually he will do whats right, perhaps. Lets see what he does. [reporters shouting questions] reporter [inaudible] obviously were very concerned with the escalation by iran recently. We have significant presence in the area including baghdad and iraq. We look forward to discussing with our closest ally their perception on this and how can we move forwards an international community. Reporter meeting with xi xinping at g20 next week about i dont know that he is trying to get a meeting. Are you trying to get a meeting . We have a lot of things to discuss. Otherwise i will represent him well. I will tell you. We have a meeting set up with president xi. Obviously on the big transaction were talking about and negotiating. Our people are actually speaking now. Well see what happens with that but anything i can do to help candy will be doing. [reporters shouting questions] reporter bring it up when you meet with him . I would at justins request, i will absolutely bring it up. Reporter [inaudible] when . , dont say when . So far i have to get the democrats to approve it. So i like your positive thinking but if, and if really is subject to the democrat. Lets see what happens. I really believe that nancy pelosi and the house will approve it. I think the senate will approve it rapidly. It will be very bipartisan, great for farmers, manufacturers, really great for everybody. And unions. It is great for unions. We have tremendous Union Support too. Its a tremendous, really is, show as partnership between free countries and three countries in a trade sense competing with the european union, were competing with china. It gives us a bigger dialogue. It gives us a much bigger platform. It is really good for all three. Something that is very popular. I hope politically they can do what they have to do. A day after the election it would win with tremendous support. But we have an election coming up. But i think nancy pelosi will do the right thing. Reporter will that be the end of tariffs on canada and mexico . Well see. They have to do what they have to do. We understand that we cant have big, tremendous shipments of certain products. We understand that. We were very pleased with the removal of tariffs on steel and aluminum. They have been lifted as you know. There wont hopefully be transshipping. If there is transshipping, i will call justin and take care of it. If he take care of it, and if i dont take care of it a second time then i think that situation is very welltaken care of. Very important for both countries and for all three countries, farmers, very, very important. More so in that case from us and canada. But the farmers are really happy with it. The manufacturers are very happy mexico is thrilled. You saw the vote. Lopsided and positive way, a great vote. That will be something very special. The largest trade deal by far ever entered into. Were close to having it finalized. It means a lot of jobs for our country. A lot of wealth for all three countries. Were competing against the world. Were not competing with each other so much. This brings us into a position were not competing with each other. Were competing against the world. That is what were doing. Were competing against big sections of the world, including asia. Including other areas. I think it will be very special. It will end up being a very important deal but the biggest ever made. Reporter reporters asking questions] reporter will you invite Toronto Raptors to the white house. Im from the toronto star. That is an interesting question. They played phenomenal basketball. I watched a little of it. Congratulations, that was a great job for a great team. Well think about that. If they would like to do it, well think about that. We have a lot of folks coming. The president ial medal, i spoke to him, well present the president ial medal of freedom to roger penske. Roger penske is great gentleman who has won 18 indianapolis 500s. Won daytona. He won daytona. Indianapolis, probably more than anybody in the history of racing. I cant imagine anyone being close. Roger penske will get the medal of freedom. He is very thrilled to be getting it. That will be announced over the next little while, but actually im announcing it pretty much now. He will be putting something out. They will be putting something out in a little while. He is very deserving. He is a great gentleman. Ive known him for a long time. Brilliant guy. When you think of all the countries that want to win indianapolis and daytona and they fight and they spend, even canada, they spend a lot of money. You know, a man wins indianapolis, when he wins it 18 types, and he just won the daytona. And i won many things over the course of years. He has become a very successful man. We talked aabout electric cars today. I think nobody knows more about that subject in terms of common sense than roger penske. Roger penske will be getting, receiving the president ial medal of freedom. Reporter iran is a different country, do you hold that opinion . Absolutely. When i came here iran was in 14 to 18 different sites of conflict shun. They were extremely hostile. They were hostile signing the deal. They were screaming death to america. I think probably iran made a mistake. I would imagine a general or somebody that made a mistake in shooting that drone down. Fortunately that drone was unarmed. It was not, there was no man in it. There was no, it was over International Waters, clearly over International Waters but we didnt have a man or woman in the drone. We had nobody in the drone. It would have made a big difference, let me tell you. It would have made a big, big difference. But i have a feeling, maybe wrong i may be right but im right a lot, i have a feeling that it was a mistake made by somebody that shouldnt have been doing what they did. I think they made a mistake. Im not just talking the country made a mistake. I think somebody under the command of their country made a big mistake. Reporter leadership . Well see what happens. You just see what happens. It will all work out. [shouts questions] say it . Reporter you dont think it wasnt intentional . I dont know. I find it hard to believe it was intentional if you want to know the truth. I think it could have been somebody who was loose and stupid that did it. Well be able to report that and you will understand exactly what happened. But it was very foolish move. That i can tell you. Reporter your administration trying to push you into conflict . Not at all. Not at all. In fact in many cases it is the opposite. But i will say, look, i want to get out of these endless wars. I campaigned on that. Weve been in afghanistan for 19 years. You foe we reduced very substantially in afghanistan. We beat the caliphate. We took back 100 of the caliphate. When it was 99 , justin. I said i will get out, everybody went crazy. It was 99. Well finish it up, we got 100 . Were pulling out of syria, were pulling a lot of people out of that. This is new wrinkle, this a fly in the ointment what happened shooting down the drone. This country will not stand for it, that i can tell you. Thank you very much. [shouting questions] thanks, guys. Thank you. Thank you. Thank you. [reporters shouting questions] thank you. Lets go. Press, lets go. Were leaving now. Thank you for everything. Were leaving now, cnn, thank you. [inaudible] neil Interesting Development there. In talking about this iranian situation where they shot down, you know, a u. S. Drone, the president offered iran maybe a bit of an understanding and potential out to say that International Crisis could have been a triggerhappy general, or that it was not intended. This is something normally not be coming from tehran itself but someone on the scene, you know, over these International Waters, which the u. S. Claims this was shot down. To maybe provide an opportunity for the iranians to sort of dial this back a little bit. That is just my interpretation, probably not the case, of the president went after will the u. S. Strike iran . Reportedly said, you will soon find out. Leaving that openended. He was meeting with the canadian Prime Minister. Theyre trying to secure the u. S. Mexico trade agreement certified in mexico, president said by lopsided margin. Both parties overwhelmingly going for eight. In canada all but a done deal there. In United States, looking a little dicey, president thinking that nancy pelosi will do the right thing and support it that will complete the passage, to make sure it becomes the law of the land. The one holdup, make sure u. S. Factory jobs are assured and not hurt by this agreement. That was a claim made with the original nafta agreement, that it unfairly hit American Workers. They dont want to see that repeated. Neither party wants to see that repeated. In the middle of all of this the senate voted to block weapons sales to saudi arabia. It was bipartisan rebuke to the president , all 47 democrats going ahead and pushing this. At least four republicans. The president has promised to veto this. So the question is whether there are enough votes there to override that veto. That does not like it will be the case. Well keep you posted. The dow up 129 points now. 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. Thanksno problem. Youre welcome. This is the durabed of the all new chevy silverado. It looks real sturdy. The bed is huge. It has available led cargo area lighting. Lights up the entire bed. It even offers a built in 120 volt outlet. Wow. Plug that in for me. Whoa holy smokes oh wow and the all new silverado has more trim levels than any other pickup. Whoa oh wow very cool. Theres something for all of us. Absolutely. Its time to upgrade. laughter neil president wrapping up a little bit after mini presser with the media here, when he was sitting down with the canadian Prime Minister Justin Trudeau. I always feel for visiting heads of state when the president is questioned, they are left out of it. They are just sitting there and like maybe, get me some water or something. But the bottom line is, the two leaders are meeting to discuss this canadianamericanmexican trade pact which is essentially a gimme in canada and mexico. Not so much in the United States. Edward lawrence where the talks stand right now. Hey, edward. Reporter president said senate would ratify it quickly and up to nancy pelosi to bring it up in the house. This is unified trading block against the world. That the usmca agreement could help canada, mexico, United States compete around the world. The administration is putting on push for ratification. So is Prime Minister Justin Trudeau from canada. He is expected to be here in Congress Later on this afternoon meeting with House Speaker nancy pelosi to personally try to get her to bring up ratification vote. The process started in canada. They have a second reading for the ratification bill. Then debate in their house of commons. Mexico ratified the agreement yesterday. Their president called their senate back from vacation in order to make that happen yesterday. This Morning White House Economic Advisor Peter Navarro says that it is the u. S. s turn. For the record, the vote was 1144. So it was a slam dunk in mexico because this deal is good for mexico, canada and the night. The thing i like about it as trade manufacturing guy, the fact that we have strong rules of origin coupled with tough protections and labor and environment, which will bring our manufacturing to u. S. Soil, our supply, chain, jobs and factories. I think every member of congress regardless of party wants to go back to their district and talk to their people and be proud that they voted for usmca. Reporter u. S. Trade representative Robert Lighthizer says if does not get passed it would be a catastrophe for the economy. That is his words. It would send the wrong message for other negotiations like china we couldnt even make a deal with our closest allies. Now the canadian Prime Minister will also meet with Senate Majority leader mitch mcconnell. Neil this is important for Justin Trudeau personally. He has an election coming up in four months. He wants to go back to canada to tell voters he could bring this deal to completion. Back to you. Neil quickly to wall street, corner of wall and broad. Slack making a big debut. This was direct listing. Dont have to use underwriters to raise money up front. If this is how things go for such offerings, it could Save Companies headaches in future. Corporate messaging service, better than 55 right now, made a lot of inside players including stuart butterfield, slack cofounder, ceo, multibillionaire in a matter of minutes. To tech new york city executive director julie samuels, whether this could be a preview of coming attractions. What do you think . I think so. These tech ipos are happening daily and going we well, by and large we develop. Neil what do you think about direct listings. Spotify had successful go of it. Now looks like slack is too. I think you will see more of these. Airbnb is flirting with the idea. Neil right, right. One interesting dynamic ive been paying attention to because you dont have the banks underwriting you find yourselves needing to get attention of the analysts. So you see bigger Brands Taking advantage of this. I think it is a little harder for brands that are not as wellknown, not consumer facing in same way. That only works neil seems cleaner to me, more democratizing if i can simplify. 7 usually goes to the banks. Now the 7 is it that much . That is my understanding. That is a huge difference. Makes sense for the tech culture. The culture of these companies to find new solutions that work better. That is what slack has done. Neil youre looking at this, looking at the backdrop, you were mentioning during the break about the environment today is very different than it was, you know, i guess you were referring to the 19192,000 period where we have companies, in slacks case making money, doing well. Yeah. Neil Promising Business model. Back then not so much. The companies are very well integrated into our lives. These companies are not going anywhere. The market might do some correction. I dont think well see what we saw last time. These companies are part of our lives and what we do every day and that is not going to change. Neil let me ask you, you say theyre part of our lives. I really agree with you on that, julie, the big fear they have gotten to be much a part of our lives and there is bipartisan deal to chop them down a size. A few of them. Were talking about a small subset, very important subset to be fair. Were living in incredibly interesting dynamic and really rare time. This is the kind of thing that happens once a century. Were literally reordererring how society lives and works, communicates. That is crazy. Neil youre right. Im glad that regulators on both sides of the aisle are paying attention. There are no simple answers. I hope they continue to pay attention. So much is changing about how we live. Neil do you think it casts a pall on the entire industry . If a few big players if they catch a cold that goes to i dont think that is so. Ipo from slack and chew y. These companies are not, they are also increasingly in all different subsectors, whatever term you want to use. Theyre not pure tech place. Theyre in media tech bags, real estate, whatever the thing is. So to your original question, does what is happening with some. Big guys have a impact on everyone else . Not really because some other companies are neil you cant control aberrant events, all of sudden out of the blue, iran. Right. Neil no way you can plan for Something Like that but do you think it gives investors pause that we could be going to war . I dont know . I think well see tomorrow, we see how the market plays today. Neil dont worry about that just yet. Fundamentals . I think well enjoy today. Well enjoy a strong ipo from slack and maybe tomorrow iran. Neil thank you, julie samuels, new york city executive director of tech. So much more. Oil is surging up better than 5 right now. That is off its highs but it is a reminder at least in some markets they are very much focused on iran. Stay with us. You are watching fox business. Delivery drones or the latest phones. 4. 95. No matter what you trade, at fidelity its just 4. 95 per online u. S. Equity trade. O matter what you trade, at fidelity there are roadside attractions. And then theres our worldfamous onroad attraction. The 2019 glc. Lease the glc 300 suv for just 459 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. Youll find out. Youll find out. Wil youll find out. Obviously you know were not going to be talking too much about it. Youll find out. They made a very big mistake. Neil that was first alerted on Wire Services so when we got that comment before we went to the socalled press conference the president was having with the president of canada, in response to questions about whether there could be a triggerhappy general involved, not a directive from iran, that someone just took action on their own, it eased concerns that something powerful or imminent or even disastrous was in the offing and the market has since recouped on those losses. We are up about 141 points on the dow. But there are a lot of options on the table right now. We are getting word the administration is looking at a briefing for reporters at 3 00 p. M. To address this and other issues, all about iran. Hillary vaughn with the latest on capitol hill. Reporter we have be taen talki to republican and Democratic Senators all morning who are all very concerned about this drone strike that occurred over the strait of hormuz earlier. Bottom line is that both sides want to avoid allout war with iran. The president making comments on this moments ago about the drone strike calling it a big mistake. I find it hard to believe it was intentional, if you want to know the truth. I think that it could have been somebody who was stupid that did it. We will be able to report back and youll understand exactly what happened but it was a very foolish move. That i can tell you. Reporter iran says the drone was intruding on their territory. Thats why they shot it down. The foreign minister of iran tweeting this, also moments ago, quote, the u. S. Wages economic terrorism on iran, has conducted covert action against us and now encroaches on our territory. We dont seek war but we will zealously defend our skies, land and waters. We will take this new aggression to u. N. , show that the u. S. Is lying about International Waters but a spokesperson for the u. S. Central command says iran claiming the drone was in their territory are completely false and that this was a quote, unprovoked attack on a u. S. Surveillance asset in International Air space. Republican senator Lindsey Graham saying on his way out of a classified briefing moments ago that we are one day closer to war than we were yesterday. I think its a dangerous situation. High tension wires are up in the region. We have to be strong and strategic about how we protect our interests. We also cannot be reckless in what we do. You need to tell the iranians that if they increase their Enrichment Program for uranium, that would be a provocative act toward the United States and israel, and all bets are off, and put in place the military capability to go after their naval forces and their refineries. Reporter there will be a meeting in the situation room at the white house between both house and Senate Leadership at 3 00 p. M. This afternoon. Neil . Neil hillary, thank you very much. Lets get the read on all this. Kansas republican congressman with us. Congressman, the president did seem to offer a potential out for the iranians by saying it could have been a triggerhappy general, that someone did something stupid. What do you think of that . Well, listen, obviously kinetic action in the region is troublesome but what we really need to see is their enriched uranium program. If they continue to enrich uranium, that will be a direct threat to our allies, to israel and netanyahu is not going to let that go unnoticed. Also another worrisome action would be if they would continue to bomb tankers in the region, particularly allies of ours. But one thing thats good, the market did respond to this, but we are insulated in part by the fact that we are a net energy exporter, one of the worlds leading producers of oil and gas. We have doubled it since 2008 and we anticipate 50 increase in the next ten years. So we are well positioned in terms of energy. They are trying to destabilize the region in that regard, but we are looking good and also we are well positioned militarily. We have the uss Abraham Lincoln and amphibious troops in the area, we have b52 bombers, f35s and a host of other things we cant talk about. Neil you know, congressman, today in a case of curious timing, the senate rejected this arms deal the president wants out of saudi arabia. Four republicans at a minimum joining the 47 democrats against it. Thats a big repudiation to the president. What did you make of it . Well, its a complex relationship between us and saudi arabia. Obviously, they are no friend of irans and neither are we, but you know, the situation in the area, its tough. They are bad, iran is worse. We are talking about iran being the leading state sponsor of terrorism, they spend over 1 billion on terrorism each year, they have been taking swipes at us for many decades and those have been largely unresponded to. I stand by the president. Neil all right. Thank you very, very much. Congressman watkins, beautiful state of kansas. Meanwhile, stocks were originally dipping after the first comments from the president concerning iran. It eased back as we got more nuance to that. The president , for example, blaming this drone attack maybe on a general that was triggerhappy or some loose nervous hands. Not getting the okay from tehran. Theres no way of knowing but it did offer the iranians possibly a way out of this. Thats my quick interpretation and likely very, very wrong. I want to go to steve moore, meanwhile. He has been following economic and other developments, not so much obsessed with these market turns. If you dont mind going outside your normal purview, if you want to dismiss this you are more than entitled. You know the president very well. You know hes a pretty good negotiator, that he might be trying to offer iran an out of this crisis to sort of deagitate it. What do you think of that . I think thats exactly right. This guy, i always tell people if you want to understand donald trump, you have to read his book the art of the deal. He uses leverage, knows he has leverage over iran and i think thats exactly what hes doing, trying to provide iran with some sort of out short of military action. Neil it is interesting that just the threat of things escalating with iran has taken a lot of steam out of the market today that was buoyed by the prospect of lower Interest Rates, maybe a trade deal with the chinese. So its a reminder that Something Like this, like iran, could upset all of that, right . It sure is. Any time you have a Foreign Policy crisis or some kind of military action, the stock market reacts almost instantaneously. Youre right, we sweat over these things like whether that is going to, you know, raise or lower Interest Rates by a quarter percentage point or this jobs report or that report but sometimes a major, you know, International Incident, im not saying this is necessarily a major one, you know, can have, you know, a much bigger impact than a lot of these things we sort about every single day. Neil youre also a good student of market history and economic history but you know whats kind of interesting, any other time you had heard talk that iranians shot down a u. S. Drone, manned or unmanned, it would have buffeted world markets. Now, barely a blink. What do you make of that . I make of it that theres just a fundamental strength in the American Economy and that means businesses are doing well, they are profitable, you know, thats still the mothers milk of the stock market. Its profits. And businesses are doing well right now. Now, of course, you know, when you have, as you said, if you have an International Incident which can disrupt business, then that reduces profits but i think its just a testimony to how solid this economy is. Neil the president has been making a lot of Jerome Powell lately, might be pleased with the fact he seems to indicate the next move will be a cut in rates, but can i just interrupt you there . I saw the president yesterday, because as you know, i was privileged to be over there with art laffer when you won the president ial medal of honor in the oval office. I chatted with the president for just a minute or two. Hes not pleased with Jerome Powell. He wanted a rate cut. I want a rate cut as well. Neil thats interesting. This was after the fed made its decision which was no decision for the time being, but hinting of one to come. So hes still not pleased with him . Well, i would say hes agitated. He thinks and i think theres a lot of truth to this, that hes created this booming economy and it needs the dollar liquidity to keep it going and that Jerome Powell isnt with the program on that. So yeah, there is a sense of that he doesnt get, you know, what hes trying to do, that hes increased the supply of goods and services, that hes frustrated that, you know, every time we get wage increases, or every time we get, you know, an increase in employment, somehow the fed feels like it has to pull it back. Im with him on that. Why . Why do you have to do that . You should be looking at the inflation rate, i have said this many times on your show, show me, show me the inflation in the economy because i just dont see it right now. Now, where i differ a little bit from the president , he would like to see a pretty big rate cut. I would like to see a quarter point. I wish they had cut by a quarter point yesterday. Neil we will see what happens in july. We have the tenyear now under 2 . Those are threeyear lows. Yeah, but thats actually an indication that, you know, if investors were worried about inflation, you would think neil youre right about that, but its also a reflection that maybe they are worried about more than just that. Maybe they have moved on, forget inflation, we are worried about this economy, you know, going south. Right . I dont think i dont see it. I mean, i think, i mean, i just dont see any kind of slowdown. Im a little worried about the china trade situation, but you know, you get that thing resolved, i think theres a decent chance that happens, its going to be very liberating. Neil he will need to cut Interest Rates in that environment. No, no, see, thats the point. Okay. Neil hoping to catch you. No. Growth does not cause inflation. Thats my message. Neil you were fast on your feet. Thank you very much. Good seeing you again. Thank you, neil. Neil steve moore. Meantime, you hard a lot about slack making its public debut, this corporate messaging service. Im oversimplifying it. But it is the holy roar today. Gerri willis with the latest from the big board. Gerri hey, neil. Thats right. Slack coming public down here. Take a look at this. They are up some 58 . Thats what they call volatile but in a good way. The stock doing very well indeed. They are the second successful direct listing down here on the floor of the New York Stock Exchange. So what is a direct listing . Well, theres no pesky investment banker interference. Theres no road show, road show the line of buyers. Theres no offering price and you dont make money, you dont like bring in a lot of capital with your ipo. So the big question here, why would a company go public that way if youre not getting money . Well, we spoke to Stacy Cunningham, president of the New York Stock Exchange, about this. Heres what she had to say. There are a number of reasons why companies go public. First, its access to capital. Two, its branding and visibility so they can attract new investors. And new customers, frankly. Three, its that liquidity that provides their investors and their employees the ability to trade the shares they already own. Then four, its a currency so they can engage in m a. Gerri so lots of reasons you would go public as a private company and clearly the people at the Stock Exchange would like to do more of these, now that they have two under their belt. Let me take you back to spotify, the first direct listing that was successful here on the board of the New York Stock Exchange. The Reference Price on that, 132. The first day it was 149. Its first trade, 165. So think about that delta in that stock. A major move. Thats the takeaway here. These direct listings are very volatile. They can really move around. So far, the movement is in a positive direction. But we will cover it for the rest of the day and make sure that stays the same. Back to you. Neil gerri, thank you very much. Gerri willis following that. The volatility can happen no matter how you debut, you know. So many offerings that came to the market whipsawed all over the map. Best way to look at direct listings, i like to call it a financial democratizing of these type of events. Sort of like if you want to sell your house without a broker. You are confident enough that your house can sell, you save obviously on the commission, and in this case commissions run as high as 7 , 8 , 9 , if you deal with underwriters and bankers and you know that crowd. They have all got their hands in your pockets. No one has anyones hands in anyones pockets here. It is pure, it is simple, and for these guys, its a reminder that they can save a lot of money, like you selling a house and keeping every penny you got for it. More after this. Hmm. Exactly. Liberty mutual customizes your Car Insurance, so you only pay for what you need. Nice. But, uh. Whats up with your. Partner . Not again. Limu thats your reflection. Only pay for what you need. Liberty, liberty, liberty, liberty can we talk . We used to play so beautifully together. Now we can barely play anything. Even cards with the girls. If you have bent fingers, and cant lay your hand flat, talk to your doctor. It may be dupuytrens contracture. Your hand is talking. Isnt it time you listened . There are nonsurgical options. Take the first step. And learn more about dupuytrens. At factsonhand. Com hey i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a time for them to call me back, its great you have our number programmed in . Ya i dont even know your phone anymore. 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 the pentagon releasing video a little while ago that shows the iranians shooting down this unmanned u. S. Drone. The president has tried to provide maybe a little bit of potential wiggle room for the north koreans to say that it was an errant idea, this did not come directly from iran, this might have been someone there on site, little triggerhappy, a general, you name it, but that this was not the original intent of the country of iran. No word back from iran on this. We do know more meetings or summits are planned throughout the day to talk about what the u. S. s next options are. We will keep you posted. We do know the oil markets are a little jittery on this, even if stocks are not. Decidedly contained, so that can tell you something. Meanwhile, president xi jinping in north korea today, meeting with his counterpart, kim jongun, and all of this about a week before he sits down with the president of the United States. After the bells Connell Mcshane in beijing with the latest. Connell you know, we spent a lot of time this week speaking to company officials, government officials. Today, we went out and spoke to some of the people here in china to get their sense of whether or not theyre looking forward to that big meeting you mentioned between President Trump and president xi to take place at the g20 in japan, and the sense that we got from the people here is that they are really looking for a trade deal to be signed sooner rather than later, and you know, most people relatively optimistic or hopeful about the g20 summit. Hoorps heres a sampling. Are you optimistic, are you worried . Do you think there will be an agreement between the countries . Actually, im thinking [ inaudible ]. Connell you think its important to have an agreement with the United States . Of course, yes, because United States is number one largest for the economy and china is number two, and if they are fighting each other, there will be damage to global trading. Connell that last man you heard from is actually in the import export business, he was telling me. He does see some impact from the trade war in his business. For the most part, we found that the average person we were speaking to on the street was telling us that they dont see a daytoday impact from the trade tensions with the United States, but many of them are worried about what the future might hold. Just one quick example for you, speaking to a College Student earlier in the week, you know, about this and got into the huawei backandforth and the u. S. Crackdown on that company, and he said the reason he was worried about that is that huaweis such a big employer here, especially for people majoring in engineering and whathave you, he was worried that maybe if huawei is in trouble, they wouldnt come to the College Campuses and recruit as heavily for young people like him. So when people have a personal interest in it, they see the impact or the potential impact but on a daytoday basis, very few people see themselves feeling any pain just yet. But they are looking forward to this summit. Everybody knew what was going on and they are looking forward to seeing what happens in japan next week. Neil you can literally see they are engaged. Thank you very much. Connell mcshane. All right. He follows trade very closely, talking about lee speakerman. He says its very important to keep in mind whatever deal we get is enforceable and we can prove the chinese are making good on what they say they are going to do. He joins us right now. Lee, good to have you. Great to be with you, as always. Neil now, it looks like something is cooking, we dont know how far along, we have been disappointed before. You are in the camp a bad deal is not better than no deal. No deal, if it even hints of that. What do you want to see . Let me put it this way. If we had an adversary that wanted to weaken the United States and their plan was to do that, what better way than to destroy millions of our manufacturing jobs, implode our middle class incomes and ravage our inner cities . Thats exactly whats happened since china entered the World Trade Organization in 2001. It has destroyed american jobs and incomes. They now have and have had for years a 400 billion goods trade surplus with the United States. We have a 400 billion goods trade deficit with them. 460 billion trade deficit with china overall. Neil, that is twice, more than twice chinas entire defense budget. So they are swimming in an ocean of money from the United States that they are using to fund their military adventurism, to fund the research they are doing to overtake the United States as the Worlds Technology leader, to fund their new colonialism which is the massive lending theyre doing to developing countries around the world to exact control and have leverage over them and undermine the United States and our allies. We cannot allow this to continue and when President Trump meets with president xi in japan, i hope he keeps in mind that this is an adversary and that the trade strategy, the nefarious trade strategy china has been employing and continues to employ has got to be stopped and frankly, i think tariffs, not agreements, are the key to doing that. Neil the flipside for americans is they will pay a lot more for stuff. Might not be the 25 more that a lot of businesses will eat a lot of that, but they cant eat the whole thing. I dont think americans are ready for that. Maybe they should be given a headsup. Well, theyre not ready for more than 10 of our middle class to have evaporated over the past 30 years during this importing and offshoring orgy that weve had driven by neil you think middle class its in their interest to make sure you bet. You bet. You bet its affected them. Because whats happened, we have hollowed out our manufacturing base, deindustrialized our inner cities and wonder why neil if you agree on that premise, say you are right on that, we can bicker on that, but do you think the president should be giving the American People a headsup, you might agree with him tariffs are beautiful things and all that, but people pay them and i think a lot of people to this day have no idea for whatever reason this goes into effect, they are going to pay for them. Maybe justifiably to make a statement and to deal with it, but they dont know whats coming. Should someone give them a headsup . Neil, if we americanize american manufacturing, if we red redomesticate our supply chain, it will create an upsurge in american jobs and incomes. We are right now almost in a disinflation in this country and throughout the developed world. They are worried that the prices are not rising fast enough in this country. We dont have to worry about inflation. What we have to worry about is middle income americans have stagnant or declining real incomes over the past 20 years. The overwhelming reason for that is the deindustrialization of america caused by horrific trade deals that have been made which has also decimated the africa nc africanamerican middle class. That was the ladder to the middle class to africanamericans who fled the jim crow south after world war ii. Because of deindustrialization, we decimated our inner cities and decimated so many other millions of jobs around the country and imploded american incomes. When you have this leakage of incomes, when people can source goods in china for 5 an hour, workers making 5 an hour or less, that has a tremendously deleterious effect on American Workers. How can American Workers bargain for fair wages and get their recompense when they are competing with that . Its atrocious. It has to be stopped. Neil you are assuming a trade deal with china is going to do that. But well see. All right. Well see. A deal wont do it. I think it wont do it. I agree with you. China cheats. China cheats. Unfortunately. The only way we are going to deal with that is with a permanent tariff at least 15 on all imported goods from china. That would raise billions of dollars for our country neil we shall see, lee. Always good chatting with you. Always good seeing you. Agree or disagree, never disagreeable. In the meantime, now the fbi is getting involved in the deaths of the americans in the Dominican Republic and testing things out. After this. What do you look for when you trade . I want free access to research. Yep, td ameritrades got that. Free access to every platform. Yeah, that too. 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. Who used expedia to book the Vacation Rental that led to the ride which took them to the place where they discovered that sometimes a little down time can lift you right up. Flights, hotels, cars, activities, Vacation Rentals. Expedia. Everything you need to go. 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. So no one needs to this is something bigger. [ movin on up by primal scream ] that is big. Not as big as that. Sure thats big. Thats bigger. Big. Bigger. Big. Bigger. Big. But thats bigger. Wow, big. So much bigger. This is big. But thats. Well, you got this. Neil all right. Now youve got congress, youve got the fbi and who knows who else investigating these Dominican Republic deaths. Fox businesss Deirdre Bolton on more. Deirdre nine americans are dead, numerous others have fallen very ill, but the state department has not issued an elevated travel advisory for the Dominican Republic. Congressman Frank Pallone thinks the u. S. s position should be reevaluated. Yesterday he wrote a letter to secretary of state mike pompeo, fbi director christopher wray. He also tweeted this out. You will see it on your screen. Im extremely saddened by the deaths of nine americans in the Dominican Republic. He goes on to talk about one of the victims who is, in fact, from his particular district in new jersey. The fbi as we know is working with local authorities to investigate any similarities between the deaths, the state Department Says it could take up to a month to receive results from any toxicology analysis. Officials in the d. R. Are downplaying the deaths. One ministry of Public Health spokesperson told fox news that linking the deaths and illnesses amounted to fake news. The countrys minister says the cases were isolated and that the autopsy reports for the nine deceased tourists showed that they died of natural causes. He said there is hysteria against the Dominican Republic to hurt their tourism. He says the testing of food, alcohol, air is all normal and with the tourists that they get every year, he said they must comply with International Standards for everything and they do. The government officials there have been using a hash tag be fair with d. R. On social media. This is so important to their country. Tourism is 17 of its economy. Back to you. Neil thank you very, very much. Deirdre bolton. Meanwhile, slack going public today. Didnt go the traditional ipo route. Thats why its getting even more scrutiny than normal. To the wall street journal Capital Markets reporter maureen farrell. So much attention on this direct listing gambit of theirs, but it appears to be paying off. What do you think . It seems like it. It was a really solid open. We see the number tick higher and keep on going up from there. So far, so good. Neil if you are an investment banker or an underwriter, youve got to be quaking in your boots a little bit, right . Definitely. Looks like relatively, looks like 2 for 2. We saw spotify went very well, slack went really well. This does cut a lot of banks out of the process. And lowers fees a lot. Neil im wondering, too, given some of the bumpier ipos that were not of this type, that maybe that was an impetus for this, and that others are going to think more about going public like this. What do you think . It definitely seems like a lot of companies are looking at it, especially, there are a lot of companies that look like slack. Not exactly, but software companies, but they are a similar business model, a lot more than look like spotify. I think a lot of smaller ones are watching this, companies that dont need money. Thats the real distinction between direct listing and ipo. Youre not raising money. But there are companies that want to be public and dont need the money right now. I think they are watching and as you said, we have seen some very bumpy rides with uber and lyft and even in the opposite direction, when a stock goes up 90 and a Company Sells at that lower price, they have lost out. Neil i do wonder, though, obviously a company like slack which had a track record of over ten million users and corporations around the world, you can make the point that they could risk this, but a lot of companies not so well known, this is not a good idea, right . How does that play out . I think its a really fair point you make. People know them, their financials were really good. Theyre known enough. Some of the companies that i think people say in retrospect could have done it, maybe zoom, they didnt really need the money, crowdstrike, we have seen that go up so high. But the question is, theyre not quite as big and wellknown. So it will be interesting who is willing to take the gamble next, because there are risks. Theres a lot of unknowns here. You dont know whether there are buyers or sellers. Those are all big questions. Neil yeah. Very much so. Maureen, a pleasure talking with you, getting educated on this. Maureen farrell. We told you about billionaire investor Jeffrey Gundlach. He can envision President Trump bowing out of the president ial race. How likely is that . After this. 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. There are roadside attractions. And then theres our worldfamous onroad attraction. The 2019 glc. Lease the glc 300 suv for just 459 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. Youre smart,eat you already knew that. But its also great for finding the perfect used car. Youll see what a fair price is and you can connect with a truecar certified dealer. Now youre even smarter. This is truecar. 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. Do you think the president will get reelected . It depends on the economy. Im not even sure hes going to really run. If the economy goes into recession and he cant pull it out by removing the tariffs, theres very little for him to run on. Neil lets say hes running. It started yesterday. You think in that case he might pull out . Well, Lyndon Johnson ran for awhile, too, then pulled out because of the war problem. Neil all right. Billionaire investor, bond King Jeffrey Gundlach with us exclusively yesterday saying anything can happen, dont assume if the economy keeps doing what its doing and if it doesnt keep doing what its doing, that the president decides to pull a 180 and not run for reelection. He was referring to Lyndon Johnson in 1968 who was a candidate for president , did win the New Hampshire primary that year, but barely and mccarthy did so well that it pushed then johnson out of the president ial race, and then Bobby Kennedy later on emerging in that same race. That was then. Could it happen right now . Republican strategist holly turner, politico congressional reporter and democratic strategi strategist. What do you think of that . Well, his point about the economy and that being the president s strongest thing that hes running on is absolutely true, but look, americans, if the economy does slip a little bit because the president is engaged in this longterm strategy to even the Playing Field on tariffs, if the economy does slip just a little bit before the election, americans are going to be faced with a choice of more President Trump which has yielded great economic success for our nation, and a democratic socialist which is inevitably going to be an economic disaster. So i dont think that his point is going to actually neil all right. Are putting joe biden if he were the nominee in that democratic socialist camp . Well see if biden makes it that far. I dont think hes really i dont think he fits with his party anymore. Neil we dont know. He is the leader for the moment but only for the moment. Melanie, what do you think of that . What do i think of biden . Yeah, look, i think there is a recognition among republicans right now including President Trump and some of his advisers that he might not be the guy that is running against trump in 2020. You are starting to see trump reflect that in his attacks. Hes starting to now train his fire on elizabeth warren, hes revived the pocahontas nickname. Always my colleagues at politico reported that the rnc is starting to dig up Opposition Research on elizabeth warren. There is a clear shift among trump and his campaign team. They cannot put all their eggs in the biden basket as there are serious questions in the Democratic Party right now about whether he is the right man to represent the Democratic Party. Neil we dont know. Its very early. One of the things we dont know as well, if it turns out this billionaire investor i talked to is right that the economy slows down, and we go into recession, theres no way of handicapping that but for now, the republican model is are you better off than you were when we took over and they are going to argue that voters across the country, no matter what they think of donald trump, will say yeah, i guess we are. What do you think of that argument . Well, i dont think theres really any reasonable expectation that President Trump isnt going to run. This is one of the most selfimportant, selfaggrandizing president s in the history of our republic. To think that hes going to step down, step down away from the trappings, from the rallies, and from putting himself in the center of the chaos he creates, thats just not going to happen. Thats unfortunate for the political discourse of our country. Neil if you thought you were going to lose, i think thats i dont think President Trump can actually i dont think he can contemplate the notion that he might lose. I think hes that detached. No matter that his own pollsters came in and showed him on the short end of polling to a half dozen Democratic Candidates right now. Neil all right. Its still early and he might not do that. I dont think hes convinced that any poll worth its salt is going to have him in the position that some do have him in. You might have something there. Holly, im wondering how it is that people arent responding more favorably to the president given the economy, given the way markets are. One argument that i heard that i thought was interesting was that people have gotten kind of used to this economic recovery, ten years of recovery going from the great meltdown, that theres a whole generation there that doesnt see the economy any other way. Not robust but not necessarily in melt mode, either. In a way, it kind of hurts the president in that they have other things to concern themselves with. What do you make of that . Yeah, i think thats true. Something from your interview yesterday with Jeffrey Gundlach that was really interesting, talking about Consumer Finance or Consumer Confidence in the economy and the confidence in the future is low. I do think thats actually maybe related to some of this emotional scarring that they have from some of these recessions we have experienced recently. So you know, that will impact them. Its good right now but they just dont know if its going to hold in the future. Neil melanie, so much could happen between now and election, but the one thing that is a constant for the most part is that the economy is stable, the party in the white house is reelected. There were wild card developments and i had to go all the way back to 1892 to find tariffs of up to 48 that jeopardized an otherwise Strong Economy that year and democrat Grover Cleveland snuck in, the first president we had who served two terms but not concurrently. That was in a pretty good economy but the big difference was we had tariffs and big ones. Wouldnt you know, we are looking right now presently at tariffs and big ones, not that high, but it stopped the republican from getting reelected. Yeah, i would absolutely agree with you. But this is the number one concern among republicans on capitol hill right now. You talk to them and they say tariffs, that is the number one thing, they are worried about. Its a huge wild card in the election. They dont know how this trade war is going to play out. There is still not a deal with china yet. Theres a lot of unknowns when it comes to this space. The thing with the tariffs is that it could also impact red states in trump country. You have a lot of these industrial midwest states that are impacted by these tariffs. These industrial farmers. I think this could be a real problem for republicans potentially if this doesnt pan out well for the economy heading into 2020. Neil stephen, i noticed in a lot of the Campaign Push on the part of the biden folks is that hes the calm in the storm, hes going to be reasoned and measured. Some have embraced the fact he might be dull, that americans might be ready for dull or measured, because whatever you say of this president , even the success of the economy and everything, its drama every day and maybe, maybe thats going to be their prescription. Well stop the drama and craziness. What do you make of that . Well, i think there is definitely an underpinning of the american electorate that are tired of the bombastic nature of President Trump. And there are definitely things for Vice President biden to run on which include 84 consecutive months of job growth in the obama administration. And the policies they put forth that allowed that to flourish. Theres a certain irony here where trumps biggest card to play in running for reelection on the economy is largely the result of the infrastructure put in place by the obama administration. So that makes for a very interesting dialogue between neil you can give them both credit, whatever barack obama started, obviously the president has kept it going, right . You can give them both the credit for that, right . The president s main economic push right now has been on the International Front which has been met with incredible pushback from both democratic and republican members of congress, because its all been on tariffs. Which has thrown the markets into disarray. [ speaking simultaneously ] neil at the worst you could say hes just continued what barack obama has. They will say hes taken it to a new level. You dont give him that . I dont give him that. Because right now, the only positive steps this administration has taken is to create uncertainty in the market, not to build upon it. Neil all right. See, i could give both president s credit. Thats fair and balanced. All right. I want to thank you all, seriously, very, very much. I heard about this and it shocked me. Vladimir putin was on a callin show and he was taking calls. How did that go . You are on with vladimir putin, is the caller there . Apparently there were more than a few. After this. It shows a partnership between three countries and we are competing with the european union, we are competing with china. It gives us a bigger dialogue, it give us a much bigger platform. Its really good for all three. Its something thats very popular. I hope politically they can do what they have to do. Neil you probably had the same reaction i did with the canadian Prime Minister. Will you pipe down, let the president talk. I always feel for these visiting heads of state when they come to the white house and obviously, all the questions focus on the president , and oftentimes theyre like that. But today the Prime Minister is here hoping that the United States approves this deal. Its looking kind of dicey. The socalled new nafta agreement is hanging by a thread in the house of representatives, for example, where nancy pelosi is still not convinced its that great a deal. The former u. S. Ambassador to canada under president Barack Obama Joins me right now. What happens if this thing does go down. What do you think then, ambassador . Well, we have nafta and its been in place, and so Everybody Needs to just understand, this is not a brand new trade agreement. Its an update to an old trade agreement. And while im very much in favor of updating the agreement and enhancing and improving it, that we should just keep it in perspective. The president is talking about this as a whole new thing. Right now the trade between our three countries under nafta is 1. 3 trillion and it is the largest trade agreement that exists in the world. This is an update to that agreement. So if the update doesnt happen, it will look just like it does today. And this trade thats going on. Neil so the default would be you go back to the original nafta deal, the one the president says was a horrible deal. How do you know he will go along with that . Well, we dont. We dont know what he will do on any given day. But it cant be that horrible because its the basis of the new deal that was just constructed. He took tpp, which he said he hated, he took nafta which he said he hated and put the two together and all of a sudden, magically, he says wow, this is really great, this is going to be wonderful. The International Trade commission, the itc which evaluates these things, shows it will have a modest impact on the u. S. Economy, this new update. Its good, im for getting this updated, but people shouldnt get all twisted up if it doesnt happen right this minute. Neil nancy pelosi im sorry, nancy pelosi were to say, recommend to democrats dont sign off on this, the impression has been at least in canada this would be disastrous. You dont agree with that . Its not disastrous. What would be disastrous, if the president , you know, put a gun to everybodys head and said im ripping up the old nafta and giving notification of withdrawal, forcing an outcome with congress, then having this confrontation which is completely unnecessary. I think that nancy pelosi and team have said from the beginning they never said the deal is bad. They simply want to ensure that its enforced. We want to enhance the enforcement provision. Neil protecting american jobs, right . Exactly. American workers, American Farmers and the environment. Neil real quickly, how do you think the china thing is going to go . I hope it goes better than its been going. The president has confused a legal extradition agreement we have with china and used language that conflates it with maybe i will negotiate it away in a trade deal with china, which has opened the door for china to take all kinds of actions against canada which are wholly inappropriate against their grains and pork, et cetera. Hopefully we can get some clarification here. Is this legal or is this a trade negotiation, cant be both, and weve got to find a path to resolving this. Its unfair to the canadians right now. Neil obviously the canadian Prime Minister is here trying to close this deal. The mexicans already have. The canadians essentially have as well. You argue that we go back to what we had. But there are going to be a lot of sore feelings, right . Sure. Lot of people worked very hard on this. I dont want to go back to what we had. I want this deal to get completed and find a path. I think, though, youve got to remember, article i of the constitution gives trade authority to the congress under section 8. So thats where the authority lies. And the president has to negotiate with them and get this done. Neil ambassador, thank you very much. Very good catching up with you. The dow is up 164 points. The s p is in record territory. The dow, the nasdaq, about 1 or so away from record territory. All good. For now. After this. Hey, who are you . Oh, hey jeff, im a car thief. What . im here to steal your car because, well, thats my job. What . What . . What . laughing what . . What . what . [crash] what . haha, it happens. And if youve got cutrate Car Insurance, paying for this could feel like getting robbed twice. So get allstate. And be better protected from mayhem. Like me. 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. 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Call now to learn more. Translator would not want events to evolve according to scenario. Iran fully complies with. Iaea, the Organization Controls Nuclear Technology and does not violate anything. Neil Vladmir Putin was taking calls from russian listeners and viewers across the country there. Some were funny, some were in your face. Others are what you think of iran. He expressed his opinion. There well have a lot more on fox news at 4 00 p. M. Eastern time today. He was taking no prisoners. Reminding everyone, im the king. Charles says that every day. Charles payne. Charles only thing better than that is putin playing hockey and scores 73 goals. Neil i dont know how he does it. Thanks a lot, charles. Charles im charles payne. This is making money. Breaking know a whole lot of stuff. Drum beats of warsaw. A kind of confusing powell press conference. President trump doubling down that iran made a very big mistake after shooting down a u. S. Naval drone over International Waters. Tensions rising for weeks, have schiffed to a different level as noted by a