Transcripts For FBC Mornings With Maria Bartiromo 20240714

That issue, coming up. And the big business of amazon, the retail giant teams up with a major drugstore chain for package pickup. Find out where youll be able to pick up those orders. Mornings with maria begins right now. Standing on the edge face up. Because youre a natural. Heart of gold. To make it in this world. Yeah, youre a natural. Maria President Trump arrived in japan for the g20 summit. While he is there, he could sign off on a trade deal with china. Take a look. There is the shot of the president just moments ago, departing from air force one and weve got these new details from the journal this morning about what china is planning to frontt to the president in terms of moving this trade deal one step forward. Blake berman is live this morning in ow osaka. He joins me with the very latest. Good morning to you, blake, or good evening, actually. Reporter good evening. It is good morning, good evening. However you want to put it. Its 7 00 local time. You saw President Trump departing air force one moments ago in a rainy osaka, japan as he is set to start the g20 summit and the meetings around it, 7 00 tonight as we mentioned. So it will be a short day here for him. The president is set to meet with the leader of australia first and then the meetings really pick up tomorrow as the president in bilateral meetings alone will meet with leaders of japan, india, germany, brazil, and then he will have his one on one as well with Russias Vladimir Putin. Then on saturday hell have breakfast with the saudi crown prince, meet with turkeys erdogan and have that extended meeting with the chinese leader, xijinping. Minutes before the president touched down here in japan, the wall street journal broke the news that according to the journal that chinas xi is preparing to present with president , with quote, unquote, terms as to how to dial back the temperatures in the trade war between the two nations. According to the journal, the terms would include removing the ban, the huawei ban that is currently in place and also beijing wants all punitive tariffs to be lifted. Ahead of the meeting, the president still was talking up the idea of future tariffs when he spoke with you yesterday. Listen. Look, we have lost billions and billions and trillions of dollars with china. Were now taking in billions and billions of dollars and ive only done phase one. Phase one is 25 on 250 billion. I havent done phase two yet. Now, phase two doesnt have to be 25 . It could be 10 . Which people can absolutely handle. Our people arent going to pay for that either. Reporter this will be the first meeting between President Trump and president xi since he both met last year at the g7, november, december in argentina. You remember leading up to that sitdown dinner between the two, there were all of these talks about tariffs and what would happen next. Those two met and then the tariffs were put on hold. Coming into this, the president is once again talking about tariffs but now wee are learning that xijinping is set to present the president with terms that might stop all of that potentially. Youve got to wonder to the flip side of that if this is what china wants and the u. S. Agrees to it, what might the u. S. Get out of the equation. Remember, we heard from the treasury secretary, Steve Mnuchin, leading into these talks that about 90 of the deal was done before china backed away as the u. S. Sees it. That is sort of the stage that is set as the president is here in osaka, japan to begin the g20 summit. Maria we know how the president feels about tariffs. He calls himself a tariff man. When i asked him about whats plan b if you dont get a deal, he said plan a is plan b and that is continuing the tariffs. He even threw out the fact yesterday saying it doesnt have to be 25 . It could be 10 on that 300 billion. With the chinese saying we want all the tariffs lifted, thats a big step. It probably will require china to do a lot as well. Reporter thats like going home, maria and saying to my wife i want the dishes done, i want the trash taken out and i want all of this. She might look back and me and say what do i get out of it . Theyre going to bring their terms, what they want. But the u. S. Side is going to have to get something in return, if the u. S. Were to agree to that. Keep in mind, in the leadup to all of this, Senior Administration officials were saying if Nothing Happened at all, the president would still be as they put it comfortable. So President Trump walking into this comfortable with tariff as china is clearly trying to dial it back a notch. Maria blake, thank you. Well be watching. Big weekend for you. Blake berman joining us from osaka, japan this morning. Joining us right now, michael burgues from washington. Your reaction, that the chinese want all the tariffs lifted. The good news is that the talks are going on. I like you am concerned that the last time they thought the president thought he was closed to closure on this, the parameters all changed rather rapidly. In fact, i was on your show the day after that happened. So thats was startling. So we know these things can take stops and starts. The good news is, looks like theyre on again and theyre talking and thats a positive step. Maria so well see what comes out of this. I assume you agree the president is likely not to agree to any deal or agree to lifting tariffs unless the chinese agree to stop stealing intellectual property from the west. I would think would have to be the opening start. Maria exactly. Let me move on to the excitement of last night. Democratic president ial candidates took to the stage last night, trading barbs on healthcare, taxes and the economy. Watch this. This economy has got to work for everyone and right now we know that it isnt. I would support a tax rate and a tax code that is fair to everyone. Tax capital 70 . The same rate you tax ordinary income, Corporate Tax rate up to 28 . This economy is not working for average americans. There are a lot of politicians who say its not possible, we cant do it, have a lot of political reasons for this. What theyre really telling you is they just wont fight for it. Well, healthcare is a basic human right. Maria congressman, your reaction to what you heard last night . Did i just hear beto orourke advocate for the steve forbes flat tax . Maria sounded like it. Of course, i work in the United States house of representatives, the democrats are the majority. I hear their arguments for things all day long. But even coming from that environment, i was startled last night by really how far left the Democratic Party has moved and it was the president said it was boring. I would say perhaps it was a little concerning to me, just exactly how far the left may have moved on some of these things. Look, i did think the whole process was unfair to Elizabeth Warren. Shes the frontrunner on the stage and it was hard for her to get any words in. But the entireity of the night it was just who can go further left of the person who just spoke. And its an odd process. I know we went through a 16 candidate process on the republican side four years ago. But theres got to be a better way to do this. Maria do you think this will fly with the American People come 2020, these ideals of really socialism, when you look at medicare for all or when you look at Elizabeth Warren wants a wealth tax, 70 rate. I dont, but ill be honest with you, i did not think there was any way the republicans could lose the majority of the house of representatives with the economy doing as well as it was in 2018 and clearly i was wrong on that. Maria good point. What i was seeing last night we get round two tonight, but its i would use the word concerning, how far left. Everyone who spoke got farther to the left. I served with several of the folks who were on the stage. I know jay insley. He was not surprising. I didnt know the gentleman from maryland very well. He had the only reasonable comments during the night. That was not the maria were looking at a number of movers this morning, rite aid, boarchgrightrite aid,o get to that in a moment. Theres a lawsuit against the trump administration, alleging children are held at Detention Centers and are being mistreated. Your Senate Colleagues passed 4. 6 billion aid package for migrants at the border after failing to pass the house bill earlier in the week tell me your reaction and where you see this going. When they said Detention Centers, i dont know what theyre talking about. Obviously people who are picked up on the border are taking to a Border Protection facility. Thats the law. Thats what congress requires them to do. Children are not supposed to stay their longer than 72 hours. The reason that some have is because the receiving facility, the next facility that should be involved is department of health and Human Services and because of the funding constraints, their beds are they have a bed problem. They need space. They need capacity. And they cant take a child out of customs and Border Protection and move them to hhs unless theres a bed there. Maria which is why im questioning this wayfair thing, the employees walking out of wayfair because they dont want wayfair to provide the beds. Who are you hurting . Well, there is a distinction. Customs and Border Protection, we require, theyre there to protect the country. Thats what we asked them to do health and Human Services is there to provide care for the children until they get settled in whatever their next location is. Thats also under law, that congress has provided. I think the funding part of this has been mystifying because the president asked for this may 1st. Theres no surprise. Maria they said they didnt want any more beds, the dems, the colleagues on the left said no more beds, youre at capacity, leave it there. The centers are overwhelmed. Thank you, congressman. More trouble for boeing, another Software Issue has been discovered in the 737 max jet. Cheryl casone on headlines now. Cheryl here we go. The federal Aviation Administration has found a flaw that could push the planes nose down automatically. The problem will likely delay the 737s return to service to late summer following two deadly crashes. Boeing said it agrees with the faa and is working to aaddress the problem. This could be past labor day. Boeing shares lower in the premarket, down about 4 . That is a loss of almost 15 bucks. There is boeing, folks. The fcc is investigating sinclair broadcast group, the Agency Concerned it was misled during sinclairs unsuccessful attempt to buy Tribune Media last year. Nexar media is set to buy tribune. That is pending fcc approval right now. Well, amazon is adding another option for customers to get packages from them. Theyre picking them up at rite aid stores. You can pick your stuff up at rite aid. They can pick up purchases at specialized counters at more than 1500 rite aid locations by the end of this year. Walmart is the latest retailer to announce special deals aimed at taking on amazons prime day. The sale from july 14th through the 17th, hopes to steal some of amazons thunder. Prime day starts on july 15th. A great idea is always one to be stolen and it has been. Maria, back to you. Maria there you go. Cheryl, thank you. Join us in the 8 00 a. M. Hour, ill speak with the chief Security Officers of Huawei Technology, he is here this morning. Dont miss the important interview coming up, in the middle of the meeting of the u. S. And china on new terms that xijinping is apparently going to present to the president. Coming up, the tariff threat, Big Companies claiming theyll be hit hardest during the holidays. The numbers coming up next. Hidden talent, attorney general william barr busts out the bagpipes, his amazing performance, right after this. So. How are you feeling . On a scale of one to five . One to five . Its more like five million. Theres everything from happy to extremely happy. Theres also angry. Im really angry clive actually, really angry. Thank you. But what if your business could understand what your customers are feeling. And then do something about it. Turn problems into opportunities. Thanks drone. Customers into fanatics change the whole experience. Alright who wants to go again . I do i do i have a really good feeling about this. 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. Expedia. It all started under this buttonwood tree. Twentyfour people came together to sign an agreement that created the stock exchange. Just the right elements coming together. It started when scores more people came together, just down the street and traded bonds that helped pay for the revolution, and the nation it created. It started in an office on the corner where the right people witnessed the telegraph and brought information and humanity together forever. It started with the markets, bringing together steel and buildings and silicon and medicine and rockets. We believe the possibilities of life and investing are greater when we come together. Its why for eighty years weve connected ideas with technology, data with inspiration, investors with solutions. So that every day together, it all starts again. Maria welcome back. Big show this morning, coming up, Huawei Technologies chief Security Officer is with us, andy purdy, coming up. Former National Commission on terrorism chairman, palm bremmer joining us, as well as Juan Williams weighing in. Were talking trade and tariffs right now. Microsoft, sony and nintendo joining the list of companies owe posing china tariffs. The three saying in a statement while we appreciate the administrations efforts to protect u. S. Intellectual property and preserve u. S. High tech leadership, the disproportionate harm caused by tariffs to u. S. Consumers and businesses will undermine not advance these goals. The Companies Say the tariffs could cost American Consumers 840 million this holiday season. President trump is set to meet with chinese president xijinping on saturday during the g20 summit in japan and yesterday i spoke with the president in an exclusive interview. Heres what he said about a potential trade deal an the tariffs. Do you think they could do anything, you could hear anything from this meeting on saturday with xijinping that would push you to put that aside and not put that remaining 3 325 billion tariffs on products. Its possible. Its absolutely possible. Maria what could he say. We have to get a good deal. They have taken advantage of us as a country for so long, theyre so far ahead. On average, this country is losing more than 500 billion a year with china. Weve rebuilt china. Theyve done a great job. Theyre smart. Theyre genius. Theyre great. But you know what . Theyre so far ahead, what theyve done to us and primarily us. Theyve done well with europe. Theyve done well. The money they make with us, i mean, if i do what im doing, we would totally cut that off. This is no more 500 billion. It will go down to a trickle. Maria joining the conversation this morning, Fox Business Networks dagen mcdowell, the Washington Examiner commentary writer and editor, saraj mashmi and columnist liz pete. Thank you so much for joining us. When i see those statements, that statement from American Companies, makes me feel like its more of the same over these last couple of decades where American Companies were so interested in selling to the 1. 4 billion person population of china, they forgot to protect their own products. The u. S. Administration sees this as an a National Security risk. I dont know that the ceos are really understanding that. Well, they also wanted to access cheap labor. Lets face it. American corporations and by the way, they were barbed last night during the democratic debates, i dont want to pile on, but the truth is, they have enabled our situation now where we are so dependent on china. Why didnt any of these Companies Think to diversify their resources, their supply chains, when china came increasingly authoritarian and basically stealing their property. Its amazing the story, really. Maria it really is. Dagen if it is a National Security issue, the president needs to hit that harder than he has been. I agree. Dagen rather than talking about were losing money to china. Its a trade deficit. Which a lot o of people disagree. Dagen its not a loss from an accounting perspective. The americans will feel the tariffs. They may not feel a lot of them but it illustrates that we do bear the cost as a nation. China doesnt pay these tariffs, we do. Maria secretary pompeo has been significantly consistent on this National Security risk. Youre right, the president keeps bringing up the trade issue. Dagen its the president who does who is anywhere, everyone and on twitter all day long, particularly on the ebbing woulweekends. He needs to do a better job of messaging. The video games issue, President Trump after the parkland shooting blamed video games as the reason for the violence. If these tariffs prevent American Families from getting more video games, it will work in his favor. Maria china wants the u. S. To lift the ban on huawei and as a result were seeing a real 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. 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. Dont use if youre allergic to taltz. Before starting, get checked for tuberculosis. 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The dow futures are down 86 points, s p futures are up 3 andahalf and the nasdaq futures up 15 points. But lets the take a look at what the journal is reporting. I want to get your take on this. President trump set with terms, the u. S. Should meet before beijing is ready to settle a market rattling trade confrontation according to the wall street journal. Chinese officials with knowledge of the plan are insisting the u. S. Remove its ban on the sale of u. S. Technology to Chinese Telecom giant Huawei Technologies. Liz, your reaction. I think xi is president xi is coming into this meeting being very tough, so is President Trump. On your program yesterday he declared that he is perfectly happy with tariffs and might raise them more. I think both of them are coming together. I assume both want a trade deal. Look, president xi is seeing his economy slip. Hes got problems in hong kong. His authority is being tested, as not before, in his ten p youre atenure as head of sta. I think this is a negotiating position. Its not going to happen, by the way. Maria i dont think its going to happen either. Dagen beijing wants the u. S. To lift all punitive tariffs, drop efforts to get china to buy even more u. S. Exports than beijing said it would when the two leaders met last december. Xijinping is not expected to take a confrontational tone with President Trump. This is a back to square one. Maria it really is. Dagen the other network totally fouled up the Steve Mnuchin interview, 90 done on the trade deal. Wrong. This is the starting point. Maria 90 was back in april. Yeah, they were 90 there, maybe, back in april before the chinese reneged. Dagen this is a 5 . Since were back to square one, maybe donald trum presidenn go after human rights abuses, the 1 million plus who are in the education camps. Maria the chinese have been rounding up muslims and putting them in camps and theyre being guarded with guns. Theres so many infringements of human rights going on, its staggering. That i dont think is trumps number one concern. His number one concern is changing the way they do business, this isnt a very good opener. Maria the markets concern have been china, tariffs and Federal Reserve. I spoke with a money manager, craig hodges. Heres what he said hes looking at in terms of driving markets right now. Weve got 1. 5 billion under management. Youve got to put that money to work in what has become a confusing market. Are you looking for growth in terms of the market right now still . Yeah, growth is where its at, of course, but whats surprising in the market today, you can find growth stories that trade at value prices. Theres a lot of that. Its kind of a have and have not market. And at hodges capital we do 2600 company touches over 800 Different Companies and were finding ideas that are like lets say a Norwegian Cruise Line that should grow 12, 15 , thats trading around 10 times earnings. Maria thats some good opportunities. Theres a lot of those. My favorite idea out there is commercial he metals. The steel business, which i know in your interview with President Trump he talked about the steel, how much better its doing. Heres a company that has 50 share of the rebar market. Rebar goes into construction, roads, bridges and such. A Little Company with a 2 billion market cap that has a 50 share of that and the chances are over the next year well have an infrastructure bill through and that is going to benefit and that stock is trading six times earnings. Maria wow, six times earnings. Incredibly cheap. Theres parts of the market that are very forgotten that are kind of left for dead. Hodges capital, thats where were focused. Maria thats a big opportunity for someone looking for specific ideas. Lets talk about the Broader Market because the Federal Reserve potentially cutting Interest Rates has become a big theme. Is that what youre expecting . You know, i dont know that i know how to handicap it. You can listen to people, 50 say theyre going to cut, 50 say they are not. To us it doesnt matter. If the volatility, which i know well have volatility, if the volatility the presents itself, well buy Good Companies that go on sale. So the positive is that rates are low, thats going to stimulate the economy and whether its this month or here in six months, what they do, i dont know that it has a whole lot of effect. Maria the backdrop feels good to you, right . It does. Maria . Maria were about to st earnings season. What kind of Earnings Period are you expecting for the Second Quarter . I think it will be a little disappointing. Youre seeing most of the management teams were talking to, theyre using the tariff situation as a way to bring down expectations a little bit. I think theyre going to do underpromising and overdelivering is what the hope is. Maybe a little bit of adjustment but like you said, the economy is in a good, strong place. Full employment. Low rates. And surprisingly, Investor Sentiment is not that great. The markets close to highs. Every time the market should get to highs, optimism should be out there. We dont have that. I think thats a positive. Maria market climbing a wall of worry, thats the old saying we used to say. Then theres china. The president is headed to japan, hes going to meet with chinese president xijinping on saturday. Anything coming out of that that you think could be a market mover . I think expectations are very low that something will happen. So if surprisingly something happens, i think that will be extremely bullish for the market. Of course, the march he get hates the uncertainty market hates the uncertainty. If nothing is done, youll probably have more volatility, some 5 corrections along the way. Maria thats not going to dissuede you, youre still looking for growers. Where are the growth stories in the market today . Retailers that have been hit hard, like restoration hardware, its another one that trades below its growth rate. Maria i like that company. Yeah. Its come down from 150 into the 1110 area. Just had a great quarter. Capri is a stock thats been cut in half this year. Its still growing around 15 , trading around eight times earnings. There are parts of you can find growth, not having to pay crazy multiples. Maria you want to buy into the notion that things are slowing down. Things are slowing but not dramatically. Things are still good. The thing donal trump has done,s Given Company executives more optimism, more opportunities. The eight years of obama we would have Companies Come in and say this is an antibusiness president. Its the opposite with trump. These executives feel like trump is actually working for them. I think he really is. Maria that was craig hodges with hodges cap management. Capital management. The news of the morning is the news out of the wall street journal about the terms china is setting in terms of getting any agreement with the u. S. Markets are moving on that. Well take a short break. When we come back, were looking at big tech. President trump hints the u. S. Could bring legal actions against Companies Like facebook, google, overonline bias. Thats next. Key portfolio events. All in one place. Because when its decision time. You need decision tech. Only from fidelity. You need decision tech. Dear tech, lets talk. You blaze trails. But you have the power to do so much more. Lets not just develop apps, lets develop apps that help save lives. Lets make open Source Software the standard. Lets create new plastics that are highly recyclable. Its going to take input from everyone. So lets do it all, together. Lets expect more from technology. Lets put smart to work. Going back to the doctor just for a shot. With neulasta onpro. Patients get their day back. To be with. 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Thanks so much for joining us. Im maria bartiromo. It is thursday, june 27th. Your top stories right now. Breaking news this morning, President Trump arriving in japan for the g20 summit a short time ago. Chinese Officials Say president xijinping will present President Trump with terms for settling the trade fight. This is according to the wall street journal. We want to bring you the terms, the terms include lifting the ban on huawei and lifting all punitive damages, lifting all of the tariffs and not forcing beijing to buy a significant additional amount of goods from the u. S. In the 8 00 a. M. Hour ill be speaking with Huawei Technologys chief Security Officer, andy purdy, well talk about why this is one of the terms of the Chinese Government, that the ban is lifted on huawei. Markets this morning are mixed. Take a look at the dow industrials, lower this morning, 67 points, following the trade news this morning from thewallwl street journal that President Trump is going to talk with xijinping and xijinping is going to present these terms. Yesterday, the market ended mixed. Take a look. When all was said and done, the dow industrials were down 11 points. In the morning, the market was frayintrading on a fault reportt being 90 there, most people recognized that that was not true. The s p was down 3 andahalf points yesterday and the take naynasdaq was up 25. Dow and s p ended near session lows. European indices this morning look like this. Fq100 down 33, cac down 19, dax index lower by 3 points. In asia overnight markets rallied on the u. S. China trade optimism, hang seng index was up almost one andahalf percent. There is more trouble for boeing this morning. A new Software Problem has been found in the 737 max. The stock taking a hit in the premarket, down 5 . Thats an issue obviously for the Dow Jones Industrial average as well. Boeing shares down better than 5 this morning. Bitcoin sliding after a big rally recently. The cryptocurrency pulling back following the recent rapid rise. We take a look at whats causing this. Barrs bagpipes, the attorney generals surprise performance rocking the house. All that coming up this morning. Looking at big technology, President Trump slammed google and facebook yesterday in my exclusive interview. The u. S. Could bring legal action over alleged bias said the president. Look, we should be suing google and facebook and all that, which perhaps we will. Okay. But you see, apple, theyre suing apple for billions of dollars, theyre suing everybody. They make it very almost impossible to do twoway business. So what happened, i said folks, they are worse than china, except smaller. Its smaller than china but theyre worse than china. Maria facebook founder Mark Zuckerberg endorsed federal privacy legislation meanwhile and greater regulation of political advertising yesterday at the aspen idea festival in colorado. Look, in the absence of regulation, on some of these things, were going to do the best that we can and build up very sophisticated systems to be able to handle these issues. But at the end of the day, i dont think that that is necessarily the ideal state we want to be in. I think we would be better off if we had a more robust democratic process, setting the rules on how we wanted to arbitrate and draw tradeoffs between a lost of these values we hold dear. Maria joining us now is lou basineste do you think the u. S. Government is going to sue some of these companies . I think its verbal intervention for now. President trump is saying we should and i think hes keeping them accountable, keeping them guessing what hes going to do next. The adage is trust your mother, but cut the deck. Hes trusting theyll be accountable but threaten actual suits. Its happening in europe. It wouldnt be unprecedented. Maria i dont think the president or this administration trusts by the way the social Media Companies. Dagen, you reported on the fact that they have all of this terrible content and theyve been slow to take the content down. Its more than that. They are censoring conservative conversation. Dagen when in doubt, blame the algorithm. That is the message out of social Media Companies. And silicon valley. One thing that i keep pointing out as well is these social Media Companies have legal cover. They are not considered Media Companies in the eyes of the law and they cannot be sued for defamation. This goes back to a law that was passed in the 90s at the real beginnings of the growth in the internet. I think if somebody wants to put hammer down on these companies, thats something you take aim at and youre going to hear a lot more of this from, say, Elizabeth Warren, as these debates pick up steam, as the democrats really try to make a name for themselves, so theyre in agreement with trump on this. Interesting you bring up Elizabeth Warren. In march, she had a post that was taken down on facebook calling for the breakup of facebook and also google, who is obviously the subject of this conversation, in the past year they had to pay a 1. 7 billion fine to the European Union for antitrust violations. So the department of justice looking into this, its a big deal. Facebook is facing a 5 billion fine, a record fine from the ftc. Self regulation doesnt work with social media. We blame it on the algorithm. Theres been no responsibility. Youve seen Mark Zuckerberg come before congress and he makes a halfhearted apology but makes more excuses. And he calls for regulation, knowing thats the best thing that could happen to facebook. Congress has no idea how to regulate the companies. The bigger you are, the more protected you are from regulation which would clobber newcomers or startup. Maria i said mr. , president , would you rather see competition come into the market or do you want to see legislation. He said i think we need legislation to see competition. I would agree. Look at what facebooks done. We know they were using Monitoring Software to figure out to acquire whats app early. They knew it would be the next big social Media Network and they pounced on that. Theyre using they network and the data they have to their ultimate advantage. Its anticompetitive. Dagen again, for month after month, over a period of over a year, people were committing murders and committing suicide on their live Video Streaming Service and you had the massacre in new gle new zealand, that vis up for roughly an hour after the massacre started. Theyre concerned about making money, growing their business but they really dont give a flying you know what about people committing murder. There was a man who killed his child on facebook and that was over a year ago. Heres my thing. They can figure out everything else, they can figure out your preferences but they cant spend billions of dollars to figure out how to keep that content offline. I dont buy that. They dont want to. Maria what do you want to do with these stocks at this point. Lets say you own these stocks. Will incoming legislation hurt the prices . Look, i would tell you history is instructive here. Facebook hasnt gotten hurt as a stock because of the threat of regulation. Last july it got hit the hardest because of a revenue warning. For most investors, theyre turning a blind eye. Maria doesnt regulation mean it will cost more money, p doesnt that impact profits . Facebook makes 30 bucks per user in revenue. Theyre fighting the fight of were just going to drag this out. Regulation will take a long time. Well play good sit certain and see how long citizen and see how long it takes. Maria good to have you this morning, lou. Thank you so much. For a long time, huawei has been saying, look, were not attached to the Chinese Government, right. Were not being told to spy on anybody from the Peoples Liberation army and yet here you have xijinping saying he wants the ban on huawei lifted as part of any agreement with the u. S. Dagen and theres a story, i dont know if this is exclusively bloomburg, but huawei personnel work with chinas military on research. That just came out this morning. I think thats going to be big news. The same deal with alibaba. People thought they were independent of the Chinese Government and later developed they were actually there was a 2017 law passed in china saying every company had to be responsible to help intelligence gather. Maria theres no secret that huawei worked with the military, theres Civil Military fusion. When you have an innovation in china, first it goes to the military, to see that it can be applied there, then it can be used commercially. Different than being in a remote studio. Maria theres a lot of microphones going on right now, guys. Were going to take a short break and take a look at the democratic debate when we come back. Stay with us. 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. Its a revolution in sleep. The sleep number 360 smart bed is on sale now during our lowest prices of the season. It senses your movement, and automatically adjusts to keep you both comfortable. It even helps with this. So you wake up ready to hit the ground running. Its the lowest prices of the season. The queen sleep number 360 c4 smart bed is now 1299, save 400. Plus, 0 interest for 36months. Ends saturday. Sleep number. Proven, quality sleep. Maria welcome back. The Notre Dame Fire investigation revealing that the infer no wano was probably spary an accident. Cheryl prosecutors say there is no evidence the fire was deliberately started. Among the possible causes, a power failure or possibly a cigarette. The april 15th fire destroyed the wooden beams supporting the roof. The french president wants it restored in time for the paris summer olympics. There had been construction going on at the same time. Pier one imports closing more stores this year than originally planned. The retailer is looking to close 57 locations, 12 more than announced back in april. The ceo says there could be more to come. The Company Posted its seventh straight sales decline last quarter. Same store sales falling 13 . And an impressive performance from attorney general william barr who surprised the u. S. Attorneys National Conference with his hidden talent. Turns out the nations top Law Enforcement guy plays the bagpipes. Cheryl the crowd gave him a standing ovation and we should add that he was playing with the pipes and drums bag pipers on the stage from the nypd. Maria i love it. Coming up, dagen name that song careless whisper. Dagen no. Maria we have the first night of the democratic debate last night, did you watch it . A look at whats trending. Plus the microphone glitch. Wait until you see what happened. Stay with us. Youre beautiful, like diamonds in the sky. Shine bright like a diamond. Shine bright like a diamond so. How are you feeling . On a scale of one to five . One to five . Its more like five million. Theres everything from happy to extremely happy. Theres also angry. Im really angry clive actually, really angry. Thank you. But what if your business could understand what your customers are feeling. And then do something about it. Turn problems into opportunities. Thanks drone. Customers into fanatics change the whole experience. Alright who wants to go again . I do i do i have a really good feeling about this. Its a revolution in sleep. The sleep number 360 smart bed is on sale now during our lowest prices of the season. It senses your movement, and automatically adjusts to keep you both comfortable. It even helps with this. So you wake up ready to hit the ground running. Its the lowest prices of the season. The queen sleep number 360 c4 smart bed is now 1299, save 400. Plus, 0 interest for 36months. Ends saturday. Sleep number. Proven, quality sleep. Maria the first 2020 democratic president ial debate. Lauren simonetti with whats trending this morning and the details on a microphone glitch last night. That was horrible. Lauren it was embarrassing. Its funny, what is exactly trending and what people talk about and this is an exchange that they certainly talked about. A hot mic issue. Lets watch. [ laughter ] whats happening. We are hearing our colleagues audio. If the control room could turn off the mic. If the control room could turn off the mics of our previous moderators, we will you know, we prepared for everything. Guess what, guys go we didnt prepare for this. Were going to take a quick break. Lauren they tossed to commercial break. Samantha and lesters mics were open when they were done, and coming up on chuck todds question. President trump had fun with this. They should be ashamed of themselves for having a horrible technical breakdown, he goes down, truly unprofessional and only worthy of a fake news organization, which they are. Google trends show that most people searched for the iraq war veteran and the hawaii congresswoman, across the nation, probably because nobody knows who she is nationwide and she also had the least amount of time to speak. Something her sister tweeted about saying well, nbc love Elizabeth Warren because she has the most time to speak. Number two was cory booker. Look at the red part. We know him as a new jersey senator. The southern part of the country not sure who he is. And odd they that Elizabeth Warren was also searched. But it could be for a variety of reasons, why viewers are looking up these candidates. And finally, we had fun with it. Bars offering promotions and drinking games, like every time you hear the word impeach, drink up, no border wall, drink up. They should include free on that list. Maria Elizabeth Warren did get the bulk of time. Lauren she did get a lot of time. If you ask who the winner was last night, ten down, ten to go, who won in the first round, Elizabeth Warren, cory booker i thought did really well and also Julian Castro, he had a specific answer on immigration and his exchange with beto orourke who comes out very shallow, where are his pol policies. Dagen ba. Dagen beto is dunz. Lauren his opening line was in spanish. Youre trying to get the spanish voters. Maria the spanish was too much. Dagen pandering. Thats who he is. The den l tal tall thing, de, its about himself and showboating. Lauren allin, it was boring like the president said. Maria breaking news, new reports that china wants huawei ban lifted and punitive tariffs removed. The president arrived in sosa cay, japan for the in osaka, japan for the g20 meeting. Limu emu doug mmm, exactly Liberty Mutual customizes your Car Insurance, so you only pay for what you need. Nice but uh, whats up with your partner . Oh we just spend all day telling everyone how we customize Car Insurance because no two people are alike, so. Limu gets a little confused when he sees another bird that looks exactly like him. Ya. Hell figure it out. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Maria welcome back. Good thursday morning, everybody. Thanks so much for joinings us. Im maria bartiromo. It is thursday, june 27th. Your top stories right now, 7 0. Breaking news this morning, trade terms, president xijinping is expected to insist that President Trump lift the huawei ban as part of u. S. Trade deal. Thats according to the wall street journal this morning. The journal has all of the terms that xijinping is going to present to the president. Weve got those, coming up. This morning, im going to be speaking with the chief Security Officer of Huawei Technologies, andy purdy is joining us live in the 8 00 a. M. Hour. Futures showing the dow industrials are lower, although off of the lows of the morning, down 25 points on the dow industrials. The nasdaq up 22 points right now. Boing boeing is a big drag on the market following a new Software Issue for the 737 max. The stock is down 5 right now. Yesterday th the market was mix, really little changed. The s p 500 was down 3 and the nasdaq was up 25 points at the close yesterday. In europe this morning, markets are mixed. Fq100 down 25, cac down 11, dax in germany up about 7 points. In asia overnight there was some optimism over a deal. Hang seng index was up one andahalf percent, shanghai was up twothirds of a percent and nikkei up better than 1 . The border crisis continues, the Senate Passed its border bill and that rejecting the house bill. This as some court clerks are refusing to grant drivers license to Illegal Immigrants. One of the clerks joins us live this morning. Governor cuomo wants all illegals to be able to get drivers licenses. Arbys takes a shot at meatless burgers. They have a vegetable which is actually made of meat. All nose stories coming up all those stories coming up this thursday morning. Joining me to break it down, dagen mcdowell, commentary writer, siraj mashmi and liz pete. Doesnt that seem backwards. Maybe ill go vegan now. Thats not a bad idea. Theres a vegetable made of meat. A burger maria take that, beyond meat. Dagen this is my attempt at 7 02 to not be humorless. Maria lets talk about the issues of the day. The wall street journal comes out with a list of mustdos according to china. Xijinping is going to present the president with terms when they meet on saturday and the terms include lift the ban on huawei, lift all the trade tariffs and and dont insist on more export. Maria dont insist on us buying anything additional. That seems like a nonfriendly beginning point, i have to say. I dont get it. Look, if xijinping is trying to come into this with a real strong position, as trump is trying to do, perhaps, but i must say that the asian markets obviously felt there was a more consistenconcili aatory atmosph. Could xijinping play donald trump in his own game. In the art of the deal, trump says you come out with outlandish demand and you try to get them to walk back at least to the point that you want them to compromise on. Maria i dont think President Trump is going to walk back on any of this. Dagen don peoples, i think this was even maybe before the election or right after the election, he pointed out that as a new York Real Estate negotiator and developer, that you when you negotiate youre sitting at the table and you just stand up and leave the room. And so there is some maybe some method to what seems like a little bit of madness here with this chinese proposal. Theres the scene in veep where selena meyer is preparing to meet with the head of china and you say unacceptable and walk out of the room. This will play out in real life. Except they already walked out of the room. Thats kind of what dagen im talking bouts trump does that about trump does that. Maria the chinese already reneged. Trump did that in north korea. I think people would be pretty the markets would go into freefall. It was a good thing when trump walked away. I totally agree. I think thats right. Something that maybe obama would have done, if obama was in this position, china would probably get the better end of the deal. You probably wouldnt see tariffs imposed on them like President Trump imposed them. Maria if huawei keeps saying we dont answer to the Chinese Government, were not associated with the Peoples Liberation army, then why is the Chinese Government so interested in getting the ban lifted. Ill speak with andy purdy, the chief Security Officer of huawei, here this morning, andy purdy, as china is insisting the huawei ban be lifted as well as punitive tariffs removed as part of any trade truce according to the wall street journal this morning with the breaking news of the morning that initially moved markets lower. We were off the lows right now. Meanwhile, theres the 2020 democratic president ial hopefuls looking to stand out during the debate last night. It was the first debate. The second one is tonight. Last night they traded jabs on the economy, taxes, healthcare. Kristina partsinevolos with the details now. Shes in miami. Good morning to you. Reporter good morning. Like you mentioned, ten democrats took to the stage and clashed over various topics in a fight to push the president out of the white house. They spoke in the building behind me from topics, starting off against the wealthy, attacks on corporations and then they continued on to talk about the economy, taxes, and healthcare. Listen to this recap. This economy has got to work for everyone. And right now we know that it didnt. I would support a tax rate and a tax code that is fair to everyone. Tax capital 70 . The same rate you tax ordinary income. Corp. Forget tax rate up to Corporate Tax rate up to 28 . The economy is not working for average americans. Theres a lot of politicians who say its not possible, we cant do it, have a lot of political reasons for this. What theyre really telling you is they just wont fight for it. Well, healthcare is a basic human right. Reporter overall, its a very, very diverse group. Youre pretty much hearing the same thing. What we saw, various groups but you were talking prior to the break about who spoke the long e. It was actually senator cory booker, almost 11 minutes, followed by beto orourke and Elizabeth Warren at nine minutes. Tonight theres a lot of anticipation, joe biden, Bernie Sanders and mayor pete. As of early, 5 00 a. M. This morning, you had joe biden supporters here with their signs. Well be here covering it in miami. Maria Kristina Partsinevolos this morning. Elizabeth warren taking aim at the economy last night. Watch this. Who is this economy really working for . Its doing great for those at the top. If youre a giant drug company. This is not great for people trying to get a prescription filled. Its not doing great for families who are torn apart and lives are destroismed its doing great for giant oil companies, not for the rest of us who are watching Climate Change bear down upon us. When youve got a government, when youve got an economy that does great for those with money, and isnt doing great for everyone else, that is corruption pure and simple, we need to call it out. We need to attack it headon. And we need to make structural change in our government, in our economy, and in our country. Maria joining us right now is Juan Williams. Good to see you this morning. What was your reaction . I thought it was a very good debate for the democrats. I thought Elizabeth Warren set the tone and was really the giant on the stage there. As you can see, that was her Opening Statement, maria and i think it set the tone for the night. Everybody was reacting to her on that level. I think Julian Castro had a terrific night. Dagen Jessica Tarloff called that yesterday. She said i said that on the five. I think that he, again, is people dont know him. Last night, one of the primary functions was to introduce these candidates to the American People and i think a lot of people were surprised at how competent and strong he could be. I think especially when he spoke about the immigration system and said he was i think people thought who is this guy and when he spoke about abortion and said its not just about rights and freedoms, its about justice. Again, thats the kind of power i think people hadnt seen. So i think he had a very good night. I think booker was pretty strong as you just heard. He spoke a lot. And i was surprised at how much opportunity he had to speak and how he cleared a lane for himself in terms of talking about things like guns and talking about the need, again, to go back to Elizabeth Warren, to make an economy that works for all communities in the country. Dagen im going to hit you back on something. Sure. Dagen last fall you were sitting on this show and i said medicare for all, abolishes private insurance, and it gets rid of medicare as we know it and you shook your head at me and said no, no, no, no. Last night Elizabeth Warren raised her hand and said i believe in getting rid of private insurance for people. She is going to be held to that. Could it hurt her . Of course it could hurt her. Anticipating the response which get this morning, its like hey people who have their private insurance and like their private insurance are going to feel threatened if you say im going to take that away and provide you with medicare for all. Last night you heard the response coming from the democrats which is this will drive down all the costs so that people who have private insurance will have better coverage and cheaper coverage potentially. I imagine that the argument would be the total confident and what it would do some of our pharmaceutical industries, whether or not you heard this by the way from former congressman delay who said some hospitals say they cant afford to stay open. Maria its more than that. Its the decisionmaking is transferred from the individual to the government. I have my sisterinlaws sister is waiting for an operation in europe because its the government thats going to decide when she gets the mri, when she gets the operation. Its more than just thats significant enough, doing away with 180 million peoples insurance. I think the contrary point is we have in this country people who dont have either healthcare or sufficient and adequate healthcare. I think lots of people in this country who are not in our class here this morning would say hey, wait a second, i dont know whats going on with marias cousin in europe but here in america there are people who dont get any attention. I cant get a visit with a doctor. The other point of view is to fix whats broken about obamacare and make it better, not take a 00 descrie hundred pn people off of healthcare. Dagen thats joe bidens opening. Remember, one of the things that you have to keep in mind with the debate last night, the audience is a democratic audience, like an iowa audience. Dagen you had one person clapping for telseys service. I think she had her moment, when she made the point about afghanistan. Shes a veteran. She had some power and voice there. Maria she hurt tim ryan in that exchange. I think tim ryan, who is on the Appropriations Committee in thousand, said we have to stay engaged and she said engaged for what, thats a sen sentiment a t of americans had. He stepped in it when he confused the taliban and alqaida. What do you think the central message will be for democrats . Will it be healthcare or are they going to run on trump, bad. I was surprised, i did not think, given my conversations with democratic strategists, that trump would be a focus. But i thought there would be more trump talk, bashing, last night. There was very little. I think thats why the president tweeted boring because it wasnt about him. It wasnt about him. What is this, whats going on in american politics, were not talking trump. Dagen they talked about Mitch Mcconnell or cocaine mitch, his nickname, as much as they talked about trump. Maria they talked a lot about him. Elizabeth warrens Opening Statement was in response to the question, 71 of americans say the economys working well for them right now. How can she talk about how its a thinner a and thinner slice of the people who are benefiting from this economy. I just dont think thats true. Maria somebody forge forgot tl her every income was lowered in the tax cut plan, the income tax. Every income level. Wages are rising faster. The people who benefited were the upper income people and the especially people on wall street. So i think this is such almost universityal sentiment universal sentiment knowledge democrats is the economy has to work for the people sitting at the table trying to pay bills and right now its not. Maria boeing shares are plummeting this morning, another Software Found in the 737 max. Its off of the lows, down two and a third percent right now. Details when we come right back. Twentyfour people came together to sign an agreement that created the stock exchange. Just the right elements coming together. It started when scores more people came together, just down the street and traded bonds that helped pay for the revolution, and the nation it created. It started in an office on the corner where the right people witnessed the telegraph and brought information and humanity together forever. It started with the markets, bringing together steel and buildings and silicon and medicine and rockets. We believe the possibilities of life and investing are greater when we come together. Its why for eighty years weve connected ideas with technology, data with inspiration, investors with solutions. So that every day together, it all starts again. 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. I love the lights. Oh man, its got a mean face on it. It looks like a piece of candy. Look at the interior. This is nice. This is my sexy mom car. I would feel like a cool dad. Its just really chic. I love this thing. Its gorgeous. I would pull up in this in a heartbeat. I want one of these. That is sharp. The allnew chevy blazer. Speaks for itself. I dont know who they got to design this but give them a cookie and a star. Maria welcome back. Boeing shares are lower this morning. Cheryl casone with the details now in headlines. Cheryl paw talking about this already. The federal Aviation Administration found a flaw that could push the planes nose down automatically. Fixing the problem will likely delay the return to service to late summer, following two deadly crashes. Boeing says it agrees with the faa and they are working to address the problem. The stock is down more than 1 andahalf percent. It is adding pressure to the Dow Jones Industrial average in the premarket. The dominican republics Tourism Industry is taking a massive hit as the country deals with the deaths of at least 12 american tourists. Trips book to the island dropped by about 75 for the month of july and august compared to the same period last year. Other caribbean nations are benefiting. Jamaica, bahamas and aruba have seen an increase in bookings for this month. Well, new details on the injuries sustained by a 2yearold child struck by a foul ball last month at Minute Maid Park in houston. An attorney for the little girls family said she suffered a Skull Fracture and subdural bleeding, bruising and swelling. Thats the players reaction. He was visibly upset by this. The little girl we found out had a seizure after the injuries. She was hit on the head by a line drive during a game with the astros. She was sitting in the lap of a relative. More ball clubs are looking to tend protective netting to further protect fans during the game. The u. S. Economy may be booming but achieving the American Dream is becoming much harder. According to a new survey, only 24 of renters said it was extremely likely they would ever own a home. That is down 11 from four years ago. 82 of those renters said its more affordable to rent than to buy and thats up sharply from february of last year. And those are your headlines. Even with Interest Rates low, and theyve been lower the last couple weeks, but i dont know. Maria cheryl, thank you so much. We are watching Interest Rates, what the president told me yesterday about what he would like the central bank to do, thats coming up next. Of course, markets are moving ahead of this meeting between the president and president xijinping. We are all over that. Starbucks with new flavors, the colorful drinks making their debut, weve got that as well, after this break. Something we should have done yesterday. I know a Little Church with a preacher who could hook us up right away. 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Pay no more than 5 per dose with copay card. But how do i know if im 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. 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. Maria welcom welcome back may futures are mixed, dow futures down 9 points, s p up 5 and a quarter and nasdaq up 22 and a quarter. The wall street journal out with a list of terms that apparently xijinping is going to be presenting to President Trump this saturday, as the way to get a deal done. And those terms include lifting the ban on huawei, lifting all tariffs, as well as the punitive tariffs, be lifted as part of any trade truce. Were talking about that this morning. During my interview with the president yesterday he said he still want wants a cut in intert rates despite a strong economic backdrop. The economy is doing as well as it is, were at a 51 year low on unemployment, 3. 1 growth in the First Quarter. Why do we need Interest Rates to go lower . Why do we need a cut in rates if things are going so well, mr. President . We have a lot of debt. I want to get it out. I want to pay it off. We have a lot of debt. What we really have is were going to stay even with these people. Not only are we raising ive had nine Interest Rate hikes. Obama had nothing. He had cheap money. So my economy is far better than obamas economy. Economy was ready to crash. I have great rules and regulations but theyre reasonable. Obama, under obama, you couldnt do anything. Maria and of course that was yesterday when i was talking yesterday. Joining us now is michael cantowitz. The president said when talking about a rate cut, we want to get level with everybody else, hes talking about europe, mario draghi suggesting that more stimulus is coming, sent the euro lower and makes it real competitive. Thats what hes talking about. Do you think well see a rate cut . Yes. It seems the fed needs to cut rates or at least the markets trying to get the fed to cut rates. Seems well get something less than 50 basis points which the market seems to want. It does seem that powell and bullard suggest were going to see a rate cut sooner than later. Maria youve been expecting things to slow down. Im looking at your most recent note where youre telling clients to buckle up for a bad earnings season. Were in the doorstep of the Second Quarter earnings season. What are you expecting . Weve been seeing global leading indicators decline for 18 months and leading indicators lead indicators like earnings and the chart in my report shows how the next couple earnings queens. Q2 and earnings seasons. Q2 and q3 were likely to see Companies Beat estimates. Im expecting fewer than half to beat in the next quarter and even less than that in the subsequent quarter following that. What do you think that means for the job market . The jobs are also slowing. We have seen leading indicators in the u. S. Also declining, not just europe and emerging markets that have been weak and so profits tend to lead job growth and Profit Growth has been weakening. We think Profit Growth will be weaker than the street is currently expecting, the street is still currently expecting 3 to 4 growth this year and 11 growth next year and thats where we think the street is way too high. But job growth is likely to weaken on the back of weaker Profit Growth. I think were also going to see fewer buybacks, less cap ex, less m a eventually. The liquid at this from the fed may liquid at this may be offset by the removal of corporate businesses investing and hiring. Dagen would a rate cut by the Federal Reserve really stabilize the economy, prevent it from getting worse . I would say that outside of a crisis environment where weve got like an ltcm problem in 1998, or where Interest Rates are the problem, like the 70s and 80s, its going to be hard for the fed to cut rates only once and stabilize the economy. Usually when the fed is cutting rates, the economy continues to slow for at least another year, which is why youve never seen only one rate cut or only two rate cuts. Usually the feds are cutting rates 2, 300 basis points. Dagen youre saying we could have an economy thats slowing into the election year. Possibly. We think, though, that leading indicators of the economy, while theyve been slowing for about a year andahalf in the us and now youre starting to see that show up in data like industrial production, job growth and profits, we do think leading indicators could pick up early next year and start to show the signs of some green chutes of a recovery by the time we get later into the year and the election. Maria this morning weve got boeing taking a hit, news that the faa found more Software Issues for the 737 max jet, 2 and a quarter percent, thats going to impact the Broader Market. I like the question you ask in your note, how long can the market remain resilient as the data comes in. Is any of this priced in . Do you think market sells off. We think the second half the market will sell off. The s p index, the dow jones has been side ways for about a year andahalf. Weve tried to get back to new highs. We get there and a then we kind of have some kind of issue that pulls us back. So in the beginning of 2018 it was really cyclical stocks that got us the new highs. Throughout 2019 this year, it was Growth Stocks that got us back to new highs. A few weeks ago, it was defensive stocks, utilities and r. E. I. T. S that kept us as new highs. The rotation within the march. Net has been from market has been from value to growth to defense in the last year andahalf. That kept the market resilient. Its been weaker than the index suggests. Do you think its safe to say the market and economy as a whole has peaked. In the near term, we do think it is a fact that leading indicator have peaked add coincident data have peaked. The market does show the telltale signs of a peak, or potential correction coming up in the second half. Maria you and your colleagues, youre not expecting a china deal right now. No. Our policy analyst doesnt believe well see a deal until the election. What if there were one . Would that change your perspective significantly. If there was a deal that removed a lot of the tariffs put in place, that would certainly representment and i think in the near term certainly help the market but at the end of the day, we still think we have to digest the full effect of the tightening cycle we had from the february and thats going to stay with us for another six to nine months. Maria when does the fed cut rates do you think . Later this year . Seems the fed is setting up the market for a cut coming soon, sooner than later. I think if they do start to cut rates and if the data doesnt pick up were likely to see many more cuts down the road. Maria if you see a cut in rates, does that send markets higher, does that help what otherwise could have been a selloff for stocks. We dont think so. Periods when the market has gone up when the fed has been easing has been periods like the early 80s and 90s where Interest Rates were really high and they were a problem. By the fed cutting rates, that helped the market. Today we dont have a high rates problem. We have a growth problem which cant be turned around with one or two rate cuts. Dagen i think when the Federal Reserve cut rates it was in early 2001 in january, it was a surprise cut after the nasdaq had peaked. The nasdaq had its best one day performance ever in one day, a double digit gain in one day and it then right after that continued this crash. Yeah. Maria is there an anywhere to hide. Youre painting a picture of a slowing economy, market selloff as a result of that, no help from the fed even if we were to see a cut, anywhere to hide . What do you recommend . Weve been recommending a more defensive posture for investors, extended into gold prices, were seeing break out, even bitcoin. Investors are looking for things not sic cyclically sensitive toe economy, not sensitive to the trade or the fed. Were recommending utilities, healthcare, staples, real estate, gold. We think investors want to park their money there for another six to nine months and we expect to see things improve early next year. Maria michael, great insight. Thanks so much. You bet. Maria michael from Cornerstone Macro this morning. President trump is at g20 summit, what hes being asked ahead of the crucial trade meeting with chinas president , next. So. How are you feeling . On a scale of one to five . One to five . Its more like five million. Theres everything from happy to extremely happy. Theres also angry. Im really angry clive actually, really angry. Thank you. But what if your business could understand what your customers are feeling. And then do something about it. Turn problems into opportunities. Thanks drone. Customers into fanatics change the whole experience. Alright who wants to go again . I do i do i have a really good feeling about this. It all started under this buttonwood tree. Twentyfour people came together to sign an agreement that created the stock exchange. Just the right elements coming together. It started when scores more people came together, just down the street and traded bonds that helped pay for the revolution, and the nation it created. It started in an office on the corner where the right people witnessed the telegraph and brought information and humanity together forever. It started with the markets, bringing together steel and buildings and silicon and medicine and rockets. We believe the possibilities of life and investing are greater when we come together. Its why for eighty years weve connected ideas with technology, data with inspiration, investors with solutions. So that every day together, it all starts again. Maria welcome back. Good thursday morning, everybody. Thanks so much for joining us. Im maria bartiromo. It is thursday, june 27th. We have breaking news on trade terms, president xijinping will insist that President Trump lift the huawei ban as part of any u. S. China trade deal, according to the wall street journal this morning. The journals has alist of the terms that the chinese want the president to adegre agree to anl bring them to you. The president arrived early this morning for the g20 summit. Hes currently having dinner with the Prime Minister australia where the president talked about u. S. Allies. I think i can say very easily that weve been very good to our allies. We take care of our allies ive inherited massive trade deficits with our allies and we help our allies militarily. Maria coming up, ill speak with Huawei Technologys chief Security Officer, andy purdy. Futures are down, but they are we are looking like we are trading down once again, toward the lows, dow futures down 30 points, s p up 3 points and nasdaq up 13. Take a look at boeings stock this morning. Boeings new Software Issue driving the stock down. Without boeing we would see a rally in the dow industrials this morning. There is another Software Glitch found in the 737. Yesterday markets were mixed. Take a look at the dow industrials, down 11 points, nasdaq yesterday up 25 when all was said and done. In the morning there was a rally underway on a false report about the u. S. And china being close when in fact theyre not close at all. The fq100 is down 29 points, cac in paris down 15 and dax index is up 6 points. In asia overnight markets rally on the u. S. China trade optimism report and as you can see the shanghai composite was up twothirds of a percent, the hang seng was up almost one andahalf percent. Some court clerks are refusing to grant drivers licenses to Illegal Immigrants. One of the clerks is with us this morning. Live. Starbucks losing money overseas. As the coffee giant introduces new drinks for the summertime. Well tell you about that. Arbys takes a shot at meatless burgers. The fast food chain has a vegetable that is really made of meat. Looks like a vegetable. Make you feel better about yourself, i guess. Breaking news this last half hour, President Trump arriving in japan for the g20 summit. And china president xijinping is going to be armed with terms for the president before they agree to any deal. In fact, xijinping is expected to insist that President Trump lift the ban on huawei as part of a u. S. China trade deal, according to the wall street journal this morning. The journal reports that xijinping is going to say to do away with all of the punitive tariffs and do not insist that the chinese buy excessive number of goods from the United States. Now, there are crucial meetings on trade taking center stage. Iran tensions are sure to be a main topic of the summit this weeweekend yesterday i spoke wih President Trump with the recent tensionses and the threat from iran. Are we going to have a war with iran, mr. President . Well, i hope we dont. But were in a very strong position if something should happen, were in a very strong position. It wouldnt last he very s long, i can tell you that. Maria the sanctions are enough in your view to fight back on irans provocations. The sanctions are biting. When i took over, iran was a terror. We had 14 to 18 sites of conflict. Iran was behind everyone of them. 24 wer24 they were going to takr the middle east and they were going to make it very bad. Maria joining us now is former National Commissioner on terrorism chairman, paul bremmer. Good to have you on the program this morning man. What is your reaction to what weve seen from iran these last couple weeks and what do you think the u. S. s response should be . Lets start by recognizing the persians have been at the game of empire for thousands of years. They know a thing or two about their location and their geography. And i think if i were in their shoes, i would be confused by what the american policy is on two key points. The question of regime change and the question that you asked the president about the use of military force. I think they have a right to be somewhat confused about what our policy really is. And thats potentially dangerous. Maria you mean because we pulled out of the iran deal . No, the key problem is the president has said that we dont seek regime change. The secretary of state has said he wants iran to be a normal country and were ready for what secretary called unconditional talks then he listed 12 conditions. Only three of which related to the iran nuclear deal. Nine others effectively said to the iranians we want you to change your regime. So theres a real question about that. Then on the use of force, the president after the turnaround last week about whether we would hit or not hit the radar site that brought down our drone, sent out a tweet saying if iran attacks anything american, anything, not any american, anything american, our response will be overwhelming even to obliteration. That suggests a willingness to use force and in effect go to war. Then he his secretary of defense said just a day later, we are not going to war with iran. Which means is it off the table then . Is military response off the table despite what the president said . So in a war, theres something to be said for spreading confusion in the enemy camp. But if youre trying to avoid a war, in diplomacy, a certain degree of precision and clarity is needed and i dont think were certainly not any way in the public domain, were not being very clear. Ambassador, question for you. Thank you for joining us this morning. What do you think should be the offramp for iran . In other words, we have to give them some way to get back to the negotiating table which is not a total humiliation of the jcpoa or whatever past agreements weve had. What do you think could be a path forward . Well, i rather optimistically as it turned out thought the president s decision not to carry out the attack might have been a signal to the iranians that there was an offramp and one could hope that there are back channels, Communications Going on right now between the swiss that represent us in tehran or between the ow omaniso have been a third party area. But with the sanctioning of the Supreme Leader and the Iranian Foreign minister, im not sure that we offered any offramps at this point. Its very and this is how unintentional wars get started. When youre not being very clear, at least in private, as to what the red lines really are. Do you think President Trump has done a pretty decent job of at least holding some of the secretary pompeo and john bolton at bay here . Well, i dont find it very profitable to speculate on the internal debates within the administration. And i dont think the iranians do either. I think the iranians will Pay Attention to the kind of confusing messages that i refer to both on the question of regime change and on the question of the use of force. And you know, it was 150 years ago tomorrow that basically century of war descended on europe when the europeans were unable to deal with a minor crisis, the assassination of arch duke fire ferdinand. This is a dangerous situation to find ourselves in. Maria you would like to see more clarity, would you like to see clarity on regime change and what the u. S. Administration wants as well as the potential for military force. Obviously theyre not going to spell out what they may or may not do on military force but i understand r r poin your point e regime change. I think there needs to be more clarity at a minimum in whatever were saying privately to the iranians. We have channels. We have channels through the europeans, the japanese, abe was just in tehran. He got stiffed because he brought a message that the president wanted to have a communication with hamani while abe was sitting there, saying im not interested in having a conversation with trump. But he has channels he can exploit while hes in osaka, if thats something he wants to do. Maria ambassador, thank you. Great insights from you. We appreciate you joining us this morning. Nice to be with you. Maria coming up, uber is under pressure this morning, drivers organizing north of the border. Weve got those details. Arrest flipping vegancar arbys flipping vegan meat on its head. Stay with us. Let me take you back. Wait a minute. 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. Dont use if youre allergic to taltz. Before starting, get checked for tuberculosis. Increased risk of infections and lower ability to fight them may occur. Tell your doctor about infections, symptoms, or if inflammatory bowel disease symptoms develop, worsen or if youve had a vaccine or plan to. Serious allergic reactions can occur. See the possibilities. Ask your doctor about taltz. 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. 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. I love the lights. Oh man, its got a mean face on it. It looks like a piece of candy. Look at the interior. This is nice. This is my sexy mom car. I would feel like a cool dad. Its just really chic. I love this thing. Its gorgeous. I would pull up in this in a heartbeat. I want one of these. That is sharp. The allnew chevy blazer. Speaks for itself. I dont know who they got to design this but give them a cookie and a star. What do all these people have in common, limu . Oug [ paper rustling ] exactly, nothing. Theyre completely different people, thats why they need customized Car Insurance from Liberty Mutual. Theyll only pay for what they need [ gargling ] [ coins hitting the desk ] yes, and they could save a ton. Youve done it again, limu. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Maria welcome back. Uber drivers in canada are barning together to protect their livelyhood. Cheryl casone with details. Cheryl hundreds of uber drivers in toronto signed up with the united food and commercial workers union. They operate in canada and the United States, we should say. The drivers are demanding a minimum wage and end of the ratings system and better working conditions. Uber along with waymo and gm plan to release we should add fleets of Autonomous Cars in many cities across the United States by the end of this year. Yowaymo is making self driving minivans for lyft, restricted to an area near phoenix, arizona where they have been testing self driving vehicles. This ma business may be strong r starbucks in the u. S. Its different in the u. K. Starbucks posted a loss of 22 million in the year ending september 2018 reversing a profit from a year ago. The company is taking a charge for renegotiating leases and closing unprofitable stores. Well, it is sunnier days for starbucks in the u. S. Where colorful new drinks are making their due bay for summer. Look for tees and iced espresso drink coming this week. Teas will be available all year long 67. Starbucks is up in the premarket. This is my favorite story. First there was fake meat. Now arbys is taking it one step further. The Company Created fake vegetables, calling them megtebales. Theres a care t rot thats actually carrot actually made of meat. It looks like a raw carrot but it is not a carrot. The company is testing the marot. Theyre not sure if it will be available. Im sure people will be lining up to order that. Those are your headlines. Maria why. Cheryl exactly. Yuck. Maria thanks, cheryl. Cheryl thats all ive got. Maria so, drivers license for illegals, coming up, the controversial plan to give Illegal Immigrants drivers licenses. Why my next guest is refusing to compromise with that law. Stay with us. Maria welcome back. Drivers license for Illegal Immigrants. Clerks in some new york counties are taking a stand against the states controversial new law, set to go into effect in december. Joining me right now is one of them, eerie county clerk michael kerns. Thanks so much for joining us. Good morning. Maria Governor Cuomo said he would like illegals to be able to drive. What do you think is behind that law, first off . Probably more voters. But for me, my opposition is dealing with the conflict with federal law. Right now, this creates an obstacle for our federal Law Enforcement to do their jobs, to prevent illegals from being here. It prevents conflict for the clerks. Puts them in a precarious situation because do we file state law follow state law or federal law . Look at, yesterday, the other day, we had an Orleans County bus by i. C. E. That took some illegal aliens working on the farm and they had false documents. They were in federal court yesterday. I met with my attorneys and were going to dhal challenge s law in court. Maria just to be clear, in many cases all you need is a drivers license to vote. All you need is a drivers license to vote especially in new york state, with the motor voter law. Not only will it create fraud, theres a possibility to even purchase firearms. So these are things were looking at when were looking at safety and security and not even talking about how this will impact our local auto bureaus, with real id and 9 11, we had unprecedented number of people renewing their license and its a less stringent standard for those who are here illegally. Michael, quick question with respect to this particular issue. Do you see any parallels with respect to, say, the kim davis issue when she refused to basically honor the hodges ruling that basically allowing gay couples to marry. Do you think theres going to be any sort of backlash like that . Well, i think its a different case. Not only myself, there are other clerks throughout the state of new york that are not going to comply with the law. Were basing our argument on law and thats the difference in that. That was a religious opinion on her part. Were going into federal court. Were preparing our paperwork and were going on the rule of law. Remember, in new york state now they have to be notified, i. C. E. Has to be notified and that illegal alien gets a threeday notification if theres a judicial warrant, pulled out against them. Thats something that an average citizen, a United States citizen doesnt get. This is all about the rule of law. Maria i think you make great points, michael. I hope youll come back to give us an update on where this stands. Thanks so much for joining us. Thanks for having me. Maria still ahead, my exclusive inte interview with te chief Security Officer of huawei, right here. 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. No matter what you trade, at fidelity going back to the doctor just for a shot. With neulasta onpro. Patients get their day back. To be with. Family. Or just to sleep in. Strong chemo can put you at risk of serious infection. In a key study. Neulasta reduced the risk of infection from 17 . To 1 . 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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. It all started under this buttonwood tree. Twentyfour people came together to sign an agreement that created the stock exchange. Just the right elements coming together. It started when scores more people came together, just down the street and traded bonds that helped pay for the revolution, and the nation it created. It started in an office on the corner where the right people witnessed the telegraph and brought information and humanity together forever. It started with the markets, bringing together steel and buildings and silicon and medicine and rockets. We believe the possibilities of life and investing are greater when we come together. Its why for eighty years weve connected ideas with technology, data with inspiration, investors with solutions. So that every day together, it all starts again. Thanks so much for joining us. Im maria bartiromo, theyres, june 27 top stories right now 8 00 a. M. On the button on the east coast, we have breaking influencing this morning, on trade, president xi jinping, will present President Trump with terms to actually move forward on a deal, among them xi jinping going to insist that the president lift the ban on huawei as part of any u. S. China trade deal that is according to the the wall street journal. Of the they also want the president to do away with all punitive tariffs i will speak with Huawei Technology chief Security Officer andy purdy in a few moments right here live President Trump is in japan g20 meeting had dinner last night with Prime Minister of australia, where president talked about u. S. Allies trade deficits marketed mixed dow industrials down off lows it would be up if not for boeing. Dow futures a decline 33 points s p futures up 4 points nasdaq futures up 21 boeing is the issue because the company he has discovered an additional Software Issue, in the 737 jet max, as a result of stock down almost 3 taking more than 100 points off Dow Jones Industrial average. Yesterday, markets started the day very strong, on an erroneous report, dow industrials down 11 points yesterday s p down three nasdaq up 25. In europe this morning, take a look at indices we are seeing he go weakness there as well. Ft 100 down 23 points cac quarante down 12 dax in germany up about 15 points, in asia overnight markets radical on u. S. China trade some of them shanghai composite up twothirds of one percent, the hong kong, hang seng up almost one and a half percent last night first democratic debate on the economy President Trump, weve got all highlights low lights the moments that went viral. Plus big business in amazon, giant team up with major drugstore chain for package pick up find out where you will be able to get orders riteaid shares down sharply company predicting a loss for the year we tell you about that as well coming up thursday morning joining me to break it all down Fox Business Network dagen mcdowell, Washington Examiner commentary writer editor, and Fox News Contributor columnist for the hill liz peek great show. Lots of rj lots going on always so much going on this morning, take about the debate. Dagen quick talk about Bernie Sanders has editorial ahead of second debate trump worst kind of socialist i dont agree with much again democratic populism more power needs to go to federal government to fix things attacking fossil fuel pharmaceutical business however, there is a chunk of this in here that is the where is my bailout . He talks about the bank bailout, remember the where is my bailout chant . That ultimately led to the birth of the tea party this is populism crosses party lines. There is a real rightwill have the alliance on opposing corporate cronyism one things the tea party did trying to get rid of xm Bank Something i thought was wrong they thought another example of helping get Big Companies, i thought one thing that unified the group last night all those candidates, they hate big corporations they think they are terrible for america, terrible for workers, i disagree with that i think big corporations have been responsible for some bad stuff, but i also think they provide jobs, r and d the refute of that. Dagen that is alternative if not free market in private industry it is the government, they believe. No question. Dagen believe they make better decision with your money about your life about your health care, than you do as an individual noovg the power and the thought of the individual. That is why medicare for all eliminates 180 mill People Health care. Dagen tracy with hand in the air coming back to haunt. Bill de blasio said yes. Millennials as a whole, very attracted to streams in splil spectrum. Do they upset them. That is the thing there has been historical disconnect among many mils alexandria ocasiocortez making comparison of Detention Centers to concentration camps a fundamental disconnect right there people dont understand that in many ways, if they dont trust the other party, with their with what you know health care decisions, why vote for something for like the government to have more power if they say, the Republican Party comes into control . And then they you know undo everything. Maria good point check out the journal oped Bernie Sanders oped, before tonight, day two of the next debate democratic debate, by the way, getting gdp out 25 minutes, 3. 1 growth expected for the final reading of the First Quarter, the breaking news of the morning President Trump is in japan for the g20 summit while there he could sign off on trade deal with china, but there appears to be some serious terms blake burman is live in osaka when i look at terms blake burman to me looks like, we are back at square one, and we are not getting a chinau. S trade deal. Reporter the timing of this is interesting, too, maria because the thought of a from the wall street journal in which they cite chinese officials as to what the chinese president xi jinping is going to want from President Trump, when they sit down on saturday, for these talks the president got to osaka earlier this morning two hours ago ago youve got this article in which china sort of spells out what they want ening ban on huawei also, ending all of the tariffs, that is sort of the leadin to all of this when President Trump president xi will be meeting saturday it is thursday night mere in osaka the president on the ground a couple hours already had one meeting with australian Prime Minister we will be done for the day things that pick up tomorrow as President Trump will be meeting with five different leaders Russias Vladimir Putin also have meetings on saturday successive with afor mentioned xi jinping, of china. In the leadoff to the g20 u. S. Officials were saying the president would be comfortable if there was not any progress made, because tariffs are intact. The chinese leading up to this are saying that they want those tariffs gone. But yesterday, on this very show, the reit raetd could keep on going. We have lost billions and billions trillions with china taking in billions, and billions of dollars i have only done phase one phase one 25 of 250 billion i havent done phase two yet phase two doesnt have to be 25 could be 10 people can absolutely handle, but our people arent paying for that either. Reporter maria according to the wall street journal, china is prepared to ask for a for ban on huawei to be removed tariffs removed as well, but the other side of the equation, is what are they willing to give to the u. S. . That this morning remains unclear. Maria thank you so much blake burman in japan. This morning, joining me right now is chief Security Officer of Huawei Technology, andy purdy in our studio, this morning, andy very nice to see a you thank you so much for joining us. Thank you good to be here. You have and i have spoken sparred in the past in issue over china and u. S. Blake mentioned breaking news of the day, that the the wall street journal is reporting that chinese steadyr xi jinping wants huawei ban lifted and he wants punitive tariffs removed while at g20 we spokes a lot about the relationship between huawei and the Chinese Government. If there is not a direct link between Chinese Government and huawei why would Chinese Government want this ban listed so much. Let me say two things the second point is people dont understand the way the United States government works, if they think any agreement between u. S. And china is going to eliminate all restrictions on huaweis ability to do business in United States we will not be allowed to do business unless there are strict government monitored Risk Mitigation processes a trade deal is not going to affect that, secondly, we do not want and we do not speak for the Chinese Government, and they dont speak for us, we still welcome the opportunity to talk directly with u. S. Government to work out these proven Risk Mitigation measures. You say you dont speak for Chinese Government yet founder the chairman of the company is actually a member of the communist party. Well there are there are 88 million members of the communist party a communist country. Right i know but i mean, for you to say that you dont speak for the Chinese Government, youve got your founder who said so much in fact ive got a quotel quote here says we sacrificed interest of individuals families for the sake of idea to stand at top of the world in interview with Chinese State media for this idea there will be conflict with United States sooner rather than later. I had opportunity to speak at length with him when i was in china last week, i am confident that he wants agency we do, huawei employees in United States, we want to talk with u. S. Government, and we recognize, that no deal is going to allow huawei to pattern without government monitor Risk Mitigation we welcome that huawei has not disappoint with u. S. Government . We have spoken to u. S. Government over time, in terms of of the current situation, we have had technical conversations, but we have not had substantive conversations we welcome. Tell me about the impact that this ban on huawei has had on the company, i mean you have been, vocal, and in in terms of economic hit also hit u. S. Companies, by the way, because of relationship the suppliership that goes on between Companies Like qualcomm and Intel Micron Technology what is the impact of the about a n . Well, there was discussion last week, about the potential decrease in he projected revenues mr. Ren said we project up to 30billiondollar reduction in projected increased profits. The impact in terms of our suppliers, of course, is not going fatigue felt until august 19 when back is in place because they are allowed to apply from us we believe there may be a hit over time but if not allowed to buy from american suppliers long term we hope to welcome partnerships will have impact on us we are able to deal with it. Maria one of the issues, obviously, has been huawei represents a security issue, National Security is what secretary of state mike pompeo has told me in this many practice, and many people, many times. Want because the being if a is because of the connection with the Chinese Government, if at any time any of the data that the Chinese Government wants data from u. S. , that data can go directly to the Chinese Government. If fact i think is a misunderstanding about the role of the Telecom Operators equipment providers like us we can only get access to any of the data if the Telecom Operators give it to us in fact we have very limited access to the data, they have to give us written permission every time we access data only from special laptops they record every keystroke of laptops so fully about about access quite limited to the data. We know that there were back doors found, in the number of situations, so you and i talked last time we had an interview about the voda phone situation an executive at voda phone found hidden back doors in their huawei equipment, equipment in italy at the time. And vodafone had to well huawei there was backdoor we see there is a backdoor going right back to the Chinese Government, from our data, and then it was rectified, there is also obviously, data from the African Union in ethiopia sent about directly to seaning shanning shy engineers found when nobody was at desk the system was very different, there was all this transferring of data going to china. So we know, huawei has all back doors, you are the Security Officer, are you telling me you were unaware of this andy. Long before media accurately publicized about Vodafone Vodafone said there were no such back doors that their official position has been that is what we know there were back doors. Vodafone says there were not. Vodafone actually said there were back doors. Subsequently said they were wrong. Got it rectified. Is not what their position inspiration what about African Union . I am is not really familiar with those allegations. How can you not be familiar the Security Officer i am Security Officer for huawei in United States. My understanding is that there was no direct connection, to Senior Leadership of huawei from that situation. Maria iment has been widely it has been wildly reported there was massive activity during the night for the to african labor unions as a result found back doors in ethiopia data going directly back to chinese go of the. The fact is that there is no proof that huawei was involved in those back doors, and as you see that is not true that is not you true we know there is the actual refereed the africa situation. Secretary of state pompeo and Vice President pence in their efforts to block huaweiaround the world found that because they could gef no evidence of significant cybersecurity wrongdoing by huawei anywhere in the world our allies are pushing back, our allies want to continue to buy from huawei using proven Risk Mitigation measures. We will see about that talk about that take a short break there is a story this morning i want to ask you about the socalled civil fusion with military, Civil Military fusion we are back with andy purdy chief Security Officer Huawei Technologies this monday morning live in our studio. Ats a chevy blazer . Aww, this is dope. This thing is beautiful. I love the lights. Oh man, its got a mean face on it. It looks like a piece of candy. Look at the interior. This is nice. This is my sexy mom car. I would feel like a cool dad. Its just really chic. I love this thing. Its gorgeous. I would pull up in this in a heartbeat. I want one of these. That is sharp. The allnew chevy blazer. Speaks for itself. I dont know who they got to design this but give them a cookie and a star. On a scale of one to five . One to five . Its more like five million. Theres everything from happy to extremely happy. Theres also angry. Im really angry clive actually, really angry. Thank you. But what if your business could understand what your customers are feeling. And then do something about it. Turn problems into opportunities. Thanks drone. Customers into fanatics change the whole experience. Alright who wants to go again . I do i do i have a really good feeling about this. Vodafone. Andy purdy chief Security Officer Huawei Technologies a daybreaking news xi jinping the president of china, is presenting tournament trump with with terms when they meet on saturday, one of the terms in order to move forward on any deal with United States, the president of and china says must include ban lifted on Huawei Andy Purdy i appreciate you joining us on this important newsday, one question has come up about who really owns huawei is it owned by zbhes. Employee owned company, 90,000 or so own shares in the company. Not true one percent owned by your chairman mr. Ren, 99 by union union overseen by Chinese Government. Union not overseen by china go of the. This is state union. We have ownership shares we get the vote i just met with chairman of the company, just met with him last week. He owns 1 of the company that is mr. Ren chairman, elected to reason i the board. Privately owned. Labor union owns 99 labor union is overseen by Chinese Government, i mean, if Chinese Government says to you, look we need to see this data, from the u. S. Military, you are going to be forced to send that data to the Chinese Government isnt that right. We cant send Chinese Government data we dont have. How do you not have it if it is your company. Data in terms of our dealing with customers the Telecom Operators control data we dont control the data we dont own unless back doors we have evidence that there are in fact back doors. Prosecutorially Deputy Director National Intelligence said they can about test for back doors we are open to objective testing verifiable facts we know which products of worthy of trust. Has u. S. Government checked for back doors in your technology recently. I am not sure if they have checked for anyones back Doors Technology they monitored traffic five years could could not find wrongdoing by huawei in the operation known revealed. Tell me about Civil Military fusion. Reports about huawei employees participating in research for the government, is not the kind of thing that huawei does inlike other companies in United States around the world we do not do those kind of specialized projects for the military we did not authorizes those employees to do it we did not know that those employees shl doing it. Did not authorizes them to do it we know that several huawei employees have collaborated on research with Chinese Government bloom bloomberg out with report talking about closer ties to military than people acknowledged Civil Military fusion you cant have innovation in china without first going to the military about it right. Well that is not the experience with our company, 80 some,000 patents over 10,000 u. S. Pants we dont collaborate with military before we seek those innovations. This is sort of underlying National Security risk. Basically, china wants to become surl pour of the world overtaking u. S. In term of military right. U. S. Government is definitely much more concerned about china can huawei, the fact is there are objective transparent mechanisms to protect and manage the risk, but regarding the access to data, that can be completely controlled and protected Telecom Operators doing that thoroughly. How do you think this is going to in this cases itself, what are you expecting, how do you expect this to play out andy. Well, if the United States government is going to talk with us, i think with we can come to agreement, about how we can operate in United States, with particular limitations might be we cant sell to government we cant sell Critical Infrastructure we want to be able to security tier three to whierls customers by from American Companies we think america has best technology we want to be allowed to apply it long term we will be able to do business when we have good standards we dont have those good standards yet. Stay with us andy purdy well be right back. Maria back with andy purdy Huawei Technologies we are going backandforth in terms of the connection to the Chinese Government, the story really has been is that this company has been littered with theft in terms of tooling trade secrets from the likes of cisco microsoft tmobile list goings on motorola one of the issues consumers with a look at huawei say how could we trust them theyvestone all this intellectual property now they want to get bigger dominate the industry. If you google the names of Major Companies in the same industry you will it is replete with stories of lawsuits involving intellectual property. Weve as far as i know there has never been instance with Court Ordered us to pay damages in staunch case. You settled cases with motorola with cisco with tmobile we know that you have paid you settled lawsuits. Ahave ih, nondisclosure wont let us say there are numerous instances we did not pay anything in text with cases. You are american as ied. Right. You work for u. S. Government. Umhmm. How did you land at huawei. Recruited by john suffok our global chief that i would be responsible for u. S. Security part what we do able to participate trying to make cyberspace safer why we want objective standards that apply to everybody will verifiable testing cisco had 8 back doors recently. We to be the know cisco had back doors. Well public lied they had 8 back doors. We know huawei had back doors. Who put them in why does on in ask them about their back doors. Thank you for joining us we will be right back. At fidelity its just 4. 95 per online u. S. Equity trade. 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. I kept putting it off. T get what was i thinking . Ago. Ok, mr. Jones. Were all done. I told you it was easy. 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It started when scores more people came together, just down the street and traded bonds that helped pay for the revolution, and the nation it created. It started in an office on the corner where the right people witnessed the telegraph and brought information and humanity together forever. It started with the markets, bringing together steel and buildings and silicon and medicine and rockets. We believe the possibilities of life and investing are greater when we come together. Its why for eighty years weve connected ideas with technology, data with inspiration, investors with solutions. So that every day together, it all starts again. Maria good thugs morning. Im maria bartiromo. Thursday, june 27 we have breaking news right now we are waiting the final reading for gdp for the First Quarter, economists expecting increase growth 3. 1 for the quarter that is what it has been so this is the final reading, we also have jobless claims the numbers straight ahead out in ten seconds time await breaking news look at markets futures indicating pretty much a gain start of trading dow futures down 5 points that has everything to do with huawei, s p froourlths up 6, nasdaq futures right now up 30 points, as you see there, markets are waiting on the gdp number, now and it is expected up 3. 1 , for the First Quarter , on gdp. We are waiting on those numbers we see the market pretty steady joining the conversation is Stephanie Pomboy going to give her read where we are right now in the economy, stephanie good to have you this morning. Thank you very much for having me. Looking at the 3. 1 is number right in line with estimates 3. 1 growth for the First Quarter, for the gdp, just coming out hitting the tape right now stephanie reaction . As expected, you know this third revision usually have it nailed at that point. So obviously, the question is Second Quarter and thereafter, and as we talked about before, you know First Quarter number was inflaitd by percent versely by tariff affect, where companies rushed to import goods ahead of the anticipated tariff one delayed and whatnot but that had the effect, of boosting inventories adding to trade number secretary Second Quarter two factors should come out why forecast for the Second Quarter more than 1 1 2 have a fed 1. 9 new york fed 1. 4 the underlying trend growth in the economy is closer tore one and one half percent right now that is what were working with, the question is in my view, will a shift in fed policy be sufficient to arrest and reverse this slowdown in activity, i guess my feeling is think of waited too long, we talked about this basically all of last year, i was sitting here, talking about how q2 was going on in become everyone so focused on fiscal stimulus boost from tax triple digits no one was paying attention to what fed was doing in the background i was so concerned that when we got to january 1, the tax cut lift started to fade people would realize hey, you know, what is the fed doing all this time, now wall street come to this headed smacking epiphany my dposh look they are taking liquidity out of the banking such rates going up we are seeing slowdown in the economy as if great shock. Dagen what did you say in december, that the Federal Reserve will cut historically cut ratings exactly six months after last tightening they are about on course what is fed doing right now in terms of reduction in the Balance Sheet have they eased off it will they be done by september want or even sooner. They slowed down the piece of drink of the Balance Sheet, and i think their time frame would would cease entirely by september then try to figure out what is the proper sort of normalized level of the system this can my thinking has been a much bigger factor than the fed itself realized they described quantitative tightening innocuous technical shift that really was going to take place in the background i mean, yellen talked about autopilot like watching paint dry. Dagen the dismissive with with about it the impact of it on this very program when you remove this amount of like excessive stimulus from the system, you dont know the impact on Asset Classes to say well it has been well telegraphed they dont even know what is going on. Did say weve never done this before dont know what to expect from it last session with powell speaking so many things that seemed that they were clueness about talking to americans discovering employment was really important. [laughter]. Maria the fact. Seven months ago talking three rate hikes, ridiculous. If you go back. It is not surprising, but if you go back and lack at look at last time a shift in expectations fed policy to this degree from two to three hikes to three to four cuts in a span of eight months that happened three times, in the past in 1994, which was sort of the bear market in stocks set us up for 1995 the economy, about 1999 i dont need to tell you what happened after that, and 2007. Dagen to thursday credit in terms of of the kind of 1830 fed has done 180, we are in a hard to judge unprecedented trade war with china we were also fighting with some most important trading partners as well so it is hard to maybe ascertain fallout. I think that is true right now i guess i would go back and say this notion that they could tightened and scaled back the Balance Sheet from the day it started in october, 2017, was ridiculous, as you said dagen people came on were dismissive of qt if qf is number inventory why qe in the first place ininflated risk assets pushed people out risk curve lowered rates. Dagen oh but it is measured getting punched in the face you know someone tells you i am about to punch you in the face does that make it hurt less. Maria slowdown specifically you said around 1. 9, one and 1 2 percent growth you said . At 1. 9 new york fed 1. 4 it is right now we are around one and one half. Where that is slowdown in growth coming from is that consumer segment the Business Assessment where are you seeing he most vulnerability. How big peak not surprisingly when the fed started qt, the end of 2017 we have had quarters 15 months of negative home sales in one key area housing a huge input to economy second Capital Spending seem some things but kaex gdp peaked at 11 2 201 was 2 1 2 in the First Quarter and judging by durable the capex proxy durable goods number it is closer to one percent year growth, from 11 1 2 to one that is a pretty significant drag on seems biggest cost of the trade war is that corporations and about you have seen in ceo numbers, you know, people are just scared to death dont know what to do they are not spending monday on plust number we had uptick my guess that is kind of what how much is priced into the market michael on from early from porter, mcenroe said get ready for bad earnings season Second Quarter and the markets also going to follow suit what kind of a move in the a markets are you expecting. I have been talking about negative earnings for gdp profits number was predicting a recession in profits, a year ago, we are getting it now. You pointed out we are going to get another one in the Second Quarter, even by s p earnings, expectations i think the market still dont have that priced in i think that the you know, the consensus second half rebound kitchen sink. You think selloff. I do i think earnings numbers continue to be shave lower right now sat 11 for 2020 Earnings Growth that number is going to come down. Quick you mentioned housing before. Economists are sort of forecasted the how big bubble might be bursting are weseeing like 2007, 2008. I guess i dont really worry about housing obviously, there are areas things are frothy whatnot to me conspicuous bubble cycle is Corporate Credit that is why i think the longer fed drags feet in terms of cutting rates, the harder it becomes for them to fix the upon, because once fear grips credit risk, concerns, grip the market that is really hard for them to reverse. Maria markets expecting july cut right. A july cut, perhaps september cut we will see stephanie great insight as always, coming up boeing under pressure this morning stock down on news of yet another issue with the 737 max jet then amazon teaming up with riteaid tough day for riteaid predicting a loss for the year, disappointing guidance, has that stock down 6 right now back in a minute. 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. I love the lights. Oh man, its got a mean face on it. It looks like a piece of candy. Look at the interior. This is nice. This is my sexy mom car. I would feel like a cool dad. Its just really chic. I love this thing. Its gorgeous. I would pull up in this in a heartbeat. I want one of these. That is sharp. The allnew chevy blazer. Speaks for itself. I dont know who they got to design this but give them a cookie and a star. I swibecause they let metual, customize my insurance. And as a fitness junkie, i customize everything, like my bike, and my calves. Liberty mutual customizes your Car Insurance, so you only pay for what you need. Liberty. Liberty. Liberty. Liberty. Boeing leading dow lower faa finds another additional Software Problem with the 737 max, gerri willis on floor of the New York Stock Exchange this morning. That is right, so not as bad as earlier, dow expected to open maybe 17 points lower but i have to tell you boeing now a new Software Problem, different from the one they formerly reported, what we know that this could require a Software Upgrade even a hardware fix questions about this now he remember faa has no time for when 737 max jet might get back into service barclays saying a supplier reset is in order there is a Company Senior plc down and down hard on a downgrade from, to ripple through a lot of companies in the sector amazon says going to allow amazon prime members to pick up purchases at 1500 riteaid Stores Starting with 100 of these stores riteaid you mentioned earlier down and down pardon company is guiding lower, further saying the company has zero long term value, he amazing, all right, this is online brickandmortar partnership becoming more and more common, amazon with kohls Bed Bath Beyond pick up your your. Air canada Tour Travel Company for 529 Million Dollars interesting tieup there, the airline itself and tour company maria, back to you. Thank you so much gerri willis on wall street, the 2020 democratic president ial hopefuls to stand out during debate last night again tonight last night traded jabs on the economy, taxes health care Kristina Partsinevelos with details in miami. Reporter maria that is right did jobs some beast beast answered in spanish mid question Julian Castro firsttime candidate here in our reporter tent 10 minutes ago spoke to fox but off camera said that he didnt sleep at all last night after the debate, because he said he had a good performance, speaking of performances, beginning of the night, started out with focus, on attack on wealthy as well as corporations listen to this. Should this who is economy working for youve got economy does great with money isnt doing great for everyone else, that is corruption pure and simple we need to call it out we need to attack headed on we need to make a structural strange in government in economy in our country. This is supposed to about party of working people yes, we are supposed to be for 70 tax rate on the wealthy, yes, we are supposed to be for free college, free public college. This economy, has got to work for everyone. And right now, we know that it isnt. This is actually an economy that is hurting Small Business notlawing not alawing them to xoo either. Supposed to be randomly distributed. Joe biden, Bernie Sanders, mayor pete, pete buttigieg, as well as Kamala Harris to name a few hope tonight they dont have audio issues mic goes out they have to cut to commercial speaking 9 00 pm eastern time, in miami. Though, stay tuned more coming up, summer top toys on mornings with maria. Of the love to hear the robin go tweet tweet tweet rocking robyn, tweet, tweet, tweet, rocking robyn tweet tweet were the slowskys. 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. Maria Welcome Back School is out for summer, and that means time to play, is to i am out here, on the plaza outside headquarters taking a look this morning, at the seasons hottest toys joining me editor in chief of the toy insaid toer thank you for joining us bubbles, to see bubbles again, but we want to look at all toys for the summer, first 24 monster truck. Hello ava. Monster, wheels super fun four Miles Per Hour forward and two in reverse, so kids are going to love this definitely i could have a lot of fun in that thing, check out this super soaker. Super soaker looks like rocket lawn cher from fortnight. Nine ounces of water. No sprig. Very cool, love that. Stick in water like this, going to that, then pull it back. There you go. All right then pull this back. There you go there it is. I can do this. Get ready for heavyduty fun with gazillion bubble. Ultimately bubble machine you have so many bubbles in backyard this summer. Love this machine. Stick bubbles on top there goes forever. 19. 99. Also 19. 99 truck. 349. 99, very cool, right. Now weve got beach ball to look at that, likes like really beach ball. Sprinkle already amazing, and beat heat all summer long. And what is prices. 14. 99, great. Okay now in the spray. Okay. So our next toy here right here, got little tykes water table, fun zone battle about water table. Battle about water table you got it each kid can grab a sprayer you can spray towards target try to phil boat with water nice time with all water play. Great. Water, i know. Very cool. This one is about 59. 99. Awesome. Lets talk about ninja this is really fun game everyone gets little wristbands on wrist, ribbons off wristband, the person no ribbon might be the loser. That is all to have you do. Move with one foot kind of the key, ninja move. You know super safe super finish active, want all summer. Exactly great all this stuff you get outside. Which is nice. Absolutely, off the couch playing outside. Price of this. 19. 99 very good prices top sellers. Absolutely so we have tested all toys they are all on summer gift guide, and we can definitely give mark of approval. Let me ask you about this in terms of anything to wore about, in terms of a vehicle, you know, only goes four miles an hour. See this entire time which is important you want to make sure your paying attention to age range three and up weight restriction 77 pounds and under. Any other age notes we need to know about with other toy for example the bubbles or or the 6 1 2 bubbles for all ages, it goes way up from there. This is good for 18 months and up this the game also great for 5 or 6 and up. Lot of it great choice. Thank you so much. Thank you great to see you. Thank you. A short break when we come back final thoughts from our allstar panel today. Stay with us back in a minute. Thanks for coming out. Oh did you know that nationwide has customized Small Business insurance . Huhuh. Maybe thats a song. Yeah, maybe. peyton did you know nationwide is americas 1 provider of pet insurance, farms, and ranches . Now thats a song. Yeah, maybe. Oh, thats gold right there. Did you know that nationwide has an interactive retirement planner . music stops are we there yet . nationwide jingle so. How are you feeling on a scale of one to five . Wait. When it comes to feelings, its more like five million. Theres everything from happy to extremely happy. Theres also angry. Im really angry, clive actually, really angry. Thank you. And seat 36b angry. Youre clive owen. And youre barefoot. Yeah. Theres also apprehension. Regret. Relief. Oh and theres empathy. Ah, i got this in zurich actually, whats the opposite of empathy . But what if your business could understand what your customers are feeling. And then do something about it. You can turn disappointment into gratitude. Clive, you got to try this. I cant im working. Turn problems into opportunities. Thanks drone. Change the future of your business change the whole experience. Alright who wants to go again . I do i do i have a really good feeling about this. But how do i know if im 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. It all started under this buttonwood tree. Twentyfour people came together to sign an agreement that created the stock exchange. Just the right elements coming together. It started when scores more people came together, just down the street and traded bonds that helped pay for the revolution, and the nation it created. It started in an office on the corner where the right people witnessed the telegraph and brought information and humanity together forever. It started with the markets, bringing together steel and buildings and silicon and medicine and rockets. We believe the possibilities of life and investing are greater when we come together. Its why for eighty years weve connected ideas with technology, data with inspiration, investors with solutions. So that every day together, it all starts again. Maria welcome back. The markets have pared the losses. We are only down about six. Take a look at futures, you see all the decline in the dow is all due to boeing, down eight points right now. Boeing is representing almost 100 points on the dow industrials because of that selloff, about 2 plus on boeing because of the new issue with the 737. Lets get to final thoughts. Liz peek . Im very concerned that xi jinpings comments ahead of the g20 do not auger well for any kind of trade agreement. There will not be a final deal but i thought we would come out of this with a path forward. Now i think that throws that in jeopardy and i think the markets im surprised the markets arent off more this morning. Maria i agree with you. He just came out with all of these mustdo terms. President trump really needs to get china to the negotiating table, to at least salvage some of this trade talk he has going on because if the economy tanks and its because of the trade war, its probably over for him in 2020. Maria yep. Well, the economy is the number one issue for the president , no doubt. Dagen . Tonight is the second big debate, making last night look like a warmedover casserole. Tonight is the main course. Expect Bernie Sanders to attack joe biden. Maria yeah. That is going to be really interesting to watch. Kamala harris on that stage. Pete buttigieg as well. Thank you for coming out today, everybody. Have a great day. Right to Stuart Varney we go. Stu, take it away. Stuart i dont care what they say, you should be the moderator tonight. Youre good at it, okay . All right. Good morning, maria. Good morning, everyone. Observations from the first democrat debate. Number one, ashley is with me and hes snoring. Stop it. Number one, the party is shifting rapidly to the left. Free stuff for all. Two, theres a shift towards socialized medicine in some form. Three, open borders remains the core immigration policy. Four, the gloves never really came off, did they. No insults or serious putdowns. President trump called it boring. Youll get the relev s