Transcripts For FBC Mornings With Maria Bartiromo 20240714

State bob joining us this morning along with tennessee senator Senate Armed Services Committee Marsha blackburn. 5 cohost Juan Williams, big 3 hours coming up right now. Fox Business Network dagen mcdowell, wall street journal assistant editorial James Freeman and former republican president ial candidate steve forbes, good to see everybody this morning. Good to be with you. Steve and i jumped into mcdonalds on fifth avenue, breakfast of champions. Make maria great again, even greater. Maria oh, my god. Thats right. Maria markets are higher, we had the powell conversation yesterday and, of course, testimony hit markets on the upside, we got that optimism once again this morning, the chairman jay powells comments about the rate cuts and and the backdrop for the economy, the central bank sounded doveish citing global and economic conditions, watch this. We look at a broad range of data, since the june meeting and for a period before that, the data have continued to disappoint. Lets go to trade, we have begin discussions with china, thats a constructive step, that doesnt remove uncertainty that we see as overall weighing on the outlook, so i would say that the bottom line for me is that the uncertainties around Global Growth and trade continue to weigh in the outlook, in addition inflation continues to be muted and those things are still in place. Maria he talked about cross currents weighing on the outlook as well, steve, what did you think of that yesterday . Well, he certainly learned lesson from President Trump although he never admit it and i think, too, though, one of the things that did not get much attention, hes opened the first shot against judy shelton, they dont want her on the Federal Reserve board, they will try to do to her like they did to steve moore and herman cane cain. Maria wow, that was all planned in terms of response putting the stake in the ground on that. At least to say theres no coincidences, comrades. I think shes going to prove a more formability than shes got all the economic credentials, they cant see, you dont have ph. D, she does, thats what they fear, informed critic. She said very doveish, we are seeing that in the minutes too, a group that likes inflation, its weird when you study the Monetary Policy to see how much i dont want to say obsessed with making sure we have inflation. You want to ensure that you have inflation. 2 inflation making 60,000, that means extra 1,200 that you to spend, spend the stimulate, not, and they worship the idea that prosperity causes inflation, phillips curve, low unemployment, but in the fed they ignore reality. Dagen finally getting wages north of 3 in the first time in expansion under the Trump Administration and they want to foul it up. Those rate increases are coming especially for lowincome workers, nonsupervisory workers, the people you want to have moving up. It was surprising what happened, no chance for halfpoint cut before the testimony yesterday, now there is a 29 chance based on the futures market in half point rate cut in july, half point rate cut in july would signal that theres much bigger weaknesses on the horizon because thats exactly what the fed did in 2001 and 2007 it was when they started, they initiated halfpoint cuts rather than quarter point cuts when there was clear sign of weakness, be careful what you wish for. Manufacturing and housing are the two weak spots and cross currents of uncertainty over trade. You look at the economy today, today things look pretty good, you the uncertainties on the horizon but 60 basis points seems harsh even if its just uncertainty. They are maria in july . Yeah. I dont see the case for any cutting. Maria i dont either. You are concerned about the trade negotiations, expenditures not where we would like them to be, that was a great jobs report, he basically dismissed it yesterday and you look at where the federal fund rate is versus inflation, still historically very low, i dont hear businesses we need a quarter point lower Interest Rate and then we will borrow it. Dagen we look back to 95 and 98, quarter point cuts against recession and that did seem to work, 98 was the russian debt crisis, longterm Capital Management collapsed and we also had the impeachment of president bill clinton and report and the fed did prevention a recession quite frankly that they cut rates, we didnt get a recession until 2000. Maria thats where the cost lets speak middle east tensions, iranian attempt today block uk tanker in the strait of hormuz to be turned around with british airship, drowning of american drone and attacks on u. S. Vessels, this is the latest escalation, james, your reaction . Still a wait and see if terms of how iran really react to the president ordering and rescinding the retaliatory attack, this was another, i dont know what you want to call it, shot across threatening and retreating warship was there but probably does emphasize the need for ships to be there. Maria lets talk about nancy pelosi taking on her own caucus, the House Speaker with freshman congresswoman alexandria ocasiocortez sounds off on the spat telling Washington Post is, what the persistent signaling out it got to the point where it was disrespectful, the explicit signaling women out color. Basically calling nancy pelosi a racist. Dagen welcome to our world, if you criticize a liberal, leftwing socialist liberal on ideas, on them saying something that you find repugnant or offensive this is what happens to shut you down and shut you up they call you a racist and a bigot and trying to pull the same thing with the leader of the speaker of the house. Maria unbelievable. Dagen shes been a lot longer than social media. She wasnt worried about 20 to 30 moderate seats in 2020, she wants to keep the house rather apiece the extremist in your party. Dagen using your gender, using ethnicity, using gender as crutch that you lean on and then they will turn around and whack with it rather than standing on ideas, standing by what you say, if somebody finds it offensive, then defend it. She cant. Maria dont forget shes trying to get people to replace all of the people who have been there for so long. Aoc are trying to primary a lot of the guys and gals out. Regret sign wong the resistance in early 2017 but but i think social media point is right on here because its not that they have opinion and aoc further to the left, i dont think twitter followers add up to much, i dont think you represent many people in the country. Questioning the authority of aoc and i think thats what is driving aoc crazy here. Dagen Speaker Pelosi did the right thing in getting democrats together and voting for the 4. 6 billion in humanitarian aid, the majority of that going to health and Human Services to take care of children, who didnt vote for it . Alexandria ocasiocortez, she didnt vote for it first time or second time in case she goes down to the border and creates social media scene to benefit one person, not the children, but herself, the speaker of the democrats in washington, in the house of representatives, you would be you know what too. Maria that was all misinformation, telling people that they were telling migrants to drink water from the toilet bowl, absolutely not true. I think theres a classic case where pelosi let aoc hang herself, do at her own words, Public Opinion on the side of the president and the whole border issue but that raises whats going to happen next week with these ice raids not going after ms13 members, ghiel after them but when when you have children being deported, that will be a tough one. Maria Lockheed Martin stayed in philadelphia, another victory for the president. Widespread flooding, latest developments coming up. Bitcoin under pressure this morning, digital coin takes a hit after fed jay powell Warns Congress of facebook, straight ahead. Oh. Yeah, ive been a customer for years. Huh. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Lick fast like a cookie dough ninja. Apply that same speed to the ford hurry up and save sales event. For the First Time Ever get 20 estimated savings on select ford models, plus earn complimentary maintenance through fordpass rewards. It all adds up. Dont you love math . So get here asap because tasty deals and summer go fast. Get in or lose out on 20 estimated savings on select ford models, plus earn complimentary maintenance through fordpass rewards. While managing your type 2 diabetes why think about your heart . Because with my type 2 diabetes, im more likely to have a fatal heart attack or stroke. Lower a1c helps, but type 2 diabetes still increases my risk of a fatal cardiovascular event. Because type 2 diabetes is more than a1c. Wowthese are great answers and thats why theres jardiance the first type 2 diabetes pill that offers a lifesaving cardiovascular benefit for adults who also have known Heart Disease. Because jardiance can reduce my risk of dying from a cardiovascular event. And it lowers my a1c, with diet and exercise. Andits the 1 prescribed pill in its class. Jardiance can cause serious side effects including dehydration, genital yeast or urinary tract infections, and sudden kidney problems. Ketoacidosis is a serious side effect that may be fatal. A rare, but lifethreatening bacterial infection in the skin of the perineum could occur. Stop taking jardiance and call your doctor right away if you have symptoms of this bacterial infection, ketoacidosis, or an allergic reaction. Do not take jardiance if you are on dialysis or have severe kidney problems. Taking jardiance with a sulfonylurea or insulin may cause low blood sugar. So, now what do you think . While my a1c is important, theres so much more to think about. Ask your doctor about jardiance today. Maria welcome back, hurricane watches posted in louisiana. Cheryl louisiana under state of emergency as severe flooding stuns new orleans already, flash flooding streams and rivers, some residents had to cross in kayak, heavy downpours will be a threat over the next several days, the industry basing for whats expected to be the first hurricane of the season, oil is up half percent right now, 60. 74 a barrel right now wti, well, labor secretary alex acosta is defending how he handled convicted pedophile Jeffrey Epstein sextrafficking case, acosta blamed Palm Beach State Attorney Office and ready to let ep spine walk free. Facts are important, what is the value of a secured guilty plea with registration versus rolling the dice. This is the judgment prosecutors with dozens of years of experience. In our part we were trying to do the right thing for these victims. Theres more, nypd reportedly did not check with epstein one time at all since he was labeled a level 3 sex offender back in 2011. Epstein should have reported to the police 34 times this is according to report in new york post. All right, Deutsche Bank is under investigation by the Justice Department, officials are looking into whether the bank violated antimoney laundering laws when it worked and Justice Department says likely 4. 5 billion being stolen and even led to down fall of the former malaysian prime minister, theres Deutsche Bank down almost a percent. Lockheed martin is staying in pennsylvania after President Trump called for it. The president tweeted on the news, quote, i was informed by ceo of Lockheed Martin of decision to keep plant in pennsylvania home and humming, we are proud of pennsylvania and the people who work there. Thank you to Lockheed Martin. One of the usas truly great companies. So more jobs staying in the u. S. , maria. Maria all right, cheryl, another good job there, digital coin takes a hit after fed chairman Warn Congress of facebooks crypto currency, remarks coming up next. Raining money, armored truck stopping traffic, those who cashed in, they want their money back, stay with us. 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. 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. The Federal Reserve would use postpone implementing libra. Issues here that will need to be addressed. Does have potentially systematic scale and for all the reasons we discussed, it needs a careful look. Maria Federal Reserve jay powell said set for second day of testimony in cop toll hill, yesterday he spoke with house financial Services Committee Warning Congress of the risks from facebooks planned crypto currency libra, bitcoin prices down as a result, joining Us Technology analyst john, john, good to have you on the program this morning, thank you so much for being here. Whats your reaction to Facebook Libra product because bitcoin has been trading on it ever since announcement . My reaction for libra is that it is really a natural next step, bitcoin has been around for 10 years now, its seen extreme problems and its also has evolved quite a bit. Libra is a step up of bitcoin, Technology Block chain and apply it to pretty much more mainstream which you can get, so what libra is trying to do is make it extremely easy to basically be able to send money around the world to your friends and families with very little fees and very little of the problems that you normally have today in banking such as the fact that you can only do it on workdays, the fact that you have the substantial fees to transfer money and libra is taking that up a notch and making banking julyy digital, the problem is and what i think our government rightfully points out is that this is a its a very colossal step forward, its a big difference from what we have now with traditional banking and does allow a citizen in the u. S. Or citizen lets say in germany really anywhere around the world to go around the traditional Banking System and i respect the fact as a Technology Analyst that that does require careful look on government side. James freeman on the wall street journal that sounds kind of cool in a lot of ways if you can get around but highlyregulated expensive traditional Banking System, sounds like more choice for consumers. Definitely more choice for consumers and whats beautiful about this, again, reminded that even bitcoin was created on the back of 2008 financial crisis and created for the reason of providing a more Financial System and, you know, has fixed some of bitcoins biggest issues in actually adding a bit more transparency for what the regulators and transparency for Government Agencies to actually have some control over this unlike bitcoin which is very, very much id say untouchable in many ways by regulators. John, steve forbes here, one of the big down falls of the bitcoin is shortcomings, volatility, you know, steak one day and dog food the next one and libra is tieing to stability, if they get that kind of stability you could use this as money, this could break the monopoly of governments on money and no wonder the fed is concerned, is this sort of like ub other and bnb, black the way of doing things . Right, i think this really has the potential to to be Something Like that and whats so interesting about this is that facebook is actually tagging libra directly to u. S. Dollar which is fantastic, youre right, steve, volatility issue of bitcoin is gone with libra and this makes it incredibly for you to send money around the world as business or as individual, very little fees and that in itself could help economies all over the world and could help some of the more, you know, second or thirdworld countries who actually struggle with inflation because this is currency that would be pegged for u. S. Dollar that would prevent that and all you need is Internet Connection which we know now top priority of many thirdworld countries over even lets say finding food. Thats what so incredible about this, solves some of the biggest issues that actually threatens democracy around the world and thats why im a fan of it, however, i still think the u. S. Government needs to really know how its actually working and what the exact repercussions are which im not so confident in right now and so i think that the fact that they will be taking their time to delve into this is smart on them because this will have a huge impact on the u. S. Financial system and on the global Financial System full stop. But theres no way to predict that in the future, what the impact its actually going to be, you hand held wallets which are now just being used to transfer payments, they could replace the Banking System when you look 5 to 10 years down the road. Do you believe that, steve . I think that has got enormous potential, not just tongueincheek, i suggested in letter to mark zuckerberg, dont be bashful, its measurement for the libra, the germans gave up the mark, call it that, the mark. [laughter] maria i like it. Social media summit going on at the white house today, President Trump hosting prominent conservatives at the white house to talk about how they can stop the suppression of their views on facebook, twitter, google, other platforms, the president told me last month Tech Companies may need more regulation, watch this. Would you rather see competition or legislation legislation to actually coming down . You may need legislation in order to create competition. Maria is what Technology Companies are doing, what they did that to you, are they breaking the law, mr. President in. I dont know whether or not. I tell you what, they should be sued. Maria they should be sued. I know a number of the guys have testified in front of congress, should be noted that the white house is not inviting any Tech Companies to this event today but you have a lot of people there that have been complained about censorship, whats your reaction, what comes out of this today . You know, what comes out of today is stronger sense of centralized message on the trump side of things especially as it relates to his views towards the social media giants, twitter and facebook, and so i do think itll give him a bit more of an established presence with his arguments that there is some sort of manipulation happening, however, i do think itll be extremely important to have the actual Tech Companies at the table and maybe they do another summit for that, but thats going to be incredibly important because theres going to be go ahead. Maria no, please finish. Because if theres going to be disconnect between the actual problems that trump is raising and the actual pet companies that believe that they are following, you know, a bit of a standard protocol across all accounts, these issues are still going to be up there and what i would like to see is just a reasonable resolution on both sides where both sides are heard and and we can move forward. Maria yeah. And not be so i was going to point out that some of the executives have already been to the white house, so you know, jack from twitter met with the president , eric smith, they testified in front of congress and have also been at the white house as well. Dagen theres not going to be anybody there today to defend the claims that will be aired. But those executives have not followed through on the removing things after going after university for crying out loud. Politically they are brain dead in terms of they should fix this right away. You look at Something Like a twitter, devin nunes suing twitter because he gets shadowed down and posts are taken down and aoc says whatever she wants and her posts dont get taken down. The department of regulation wanted to so so consumers be ware, big consensus to have regulation here. Why doesnt somebody come along and open more social media networks, again thats the frame marketing work, people are upset by the way they get treated of social Media Companies then bring on the maria you heard what the president just said 2 weeks on the program, we might need legislation to purr up competition, i found that interesting. But the [laughter] its a warning shot to those companies, fix your problem. Maria john, appreciate you joining us this morning. Coming up trade in focus, representative lighthizer expected to meet with Democratic Leaders in capitol hill more to get usmca passed. Its going to be important. Focus on chicken, all of that straight ahead 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. 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Maria welcome back, good thursday morning, thank you so much for joining us, im maria bartiromo, thursday july 11th, top stories 6 34 on the east coast, jay powell driving market this is morning and they are higher, futures indicating gain of 45 on dow, up 17 on the nasdaq adding the gains after powell signaled a rate cut is on the way, the dow, s p and nasdaq hitting new highs after the chairman spoke yesterday, the s p crossing 3,000 before going back, nasdaq ended the day at alltime record high at 60 points at 8202 on the nasdaq. In europe this morning, momentum continues, gains, well, look at this this ftse moved to negative territory down 2 points, dax index lower by 40 points, negative performance this morning in europe. Checking asia this morning, overnight, markets were higher across the board, best performer was korean index kospi up better than 1 , trade in focus, u. S. Trade representative lighthizer expected to meet with Democratic Leaders and we have the preview there. Mcdonald franchisee asking for chicken sandwich to compete with chickfila. People jump out of their cars to scoop up currency, the incredible video, what police are doing about it now nieceless to say they want their money back. Jay powell back in the hot seat this morning on capitol hill, the Federal Reserve chairman will speak in front of the senate today, yesterday he signaled possible Interest Rate cut citing global and economic conditions, powell weighed in on economic and trade uncertainties and inflation worries, watch. Many participants saw that case for somewhat more accommodating Monetary Policy stance and strengthen, since then based on incoming data it feels trade tensions and concerns about the strength of Global Economy continue to weigh on u. S. Economic outlook. Inflation pressures remain muted. Maria joining me right now the former president of the philadelphia reserve president josh, pleasure to see you. Your reaction to what we are seeing in the economy, we know as a backdrop, 51year low on unemployment, we have growth in First Quarter of better than 3 and here we are talking about rate cuts, whats your take . I dont find theres a compelling case for kate cut rate cut at this point. Inflation is low, what whats so bad about where we are . Its true, though, theres a lot of uncertainty out there and the certainty centers around policy for the most part, trade policies, perhaps, other things that may happen around the world, slowing and the Global Economy in europe or other places, Monetary Policy cant fix those, the fed cutting rates now is not going to resolve trade uncertainty, its not going to resolve policy problems. And if we end up in a trade war, the economy will take a heat. The fed cant do anything about that. Im really concerned that we are expecting the fed to do things that it really cant do and you heard me talk about this before over the years. Maria absolutely. Putting onus on the fed to take responsibility for things that it doesnt have much control over and i think thats a very bad place and by the way, jay powell, his language about the fed will act to sustain the recovery, i think thats a very bad language, he cant sustain in the recovery in the face of some type of shocks, i think we are just expecting too much and we need to tone it down. Maria when he says sustain the recovery, thats all on anticipation, apting that things will slow down because of uncertainties around trade, he said the new cross currents have to do with trade uncertainty, is that largely china or are you talking about other countries . Well, certainly china is a big part of it, but, you know, the president has threatened to put tariffs on mexico, more tariffs on europe. Maria uncertainty of where he is going to be next. The fed cant resolve that, it has to react to that, but as you know, you read the newspapers and the headlines and one week trade agreement is on and the next week trade agreement is off, the next week theres a new trade and the fed cant deal with that and it shouldnt be reacting to that kind of volatility in the news about policy. Maria we know that alexandria ocasiocortez, congresswoman has been the loudest voice in the room in terms of questioning current policy, shes on the financial Services Committee, she talked about phillips curve and inflation, listen to the question, i want to see if you know what shes talking about, i was very perplexed. Idea of a phillips curve that links unemployment and inflation is no longer describing whats happening in todays economy, have you been considering on that, what are your thoughts on that . Very much so, the connection between slack in the economy or level of unemployment and inflation was very strong if you go back 50 years and gotten weaker and weaker to the point where its its heart beat, you can see and i think we have learned that the economy has sustained much lower unemployment without troubling levels of inflation. Maria this was the philips curve and she also talked about a decoupling which is what i was questioning, whats your reaction to that . Well, i think the phillips curve is dead, its been dead for 40 years. And i think the fed is mistaken on basing real economy, unemployment by using control of inflation and vice versa. I think thats very problematic for the whole idea of fed policy, Monetary Policy being stabilization tool and if the phillips curve isnt there, the fed needs to find another way to meet dual mandate. Maria do you expect the economy to slow down later this year, we are talking so far 3 in the First Quarter, maybe a little lower for the first half of the year, but we know that the Global Economy is slowing, europe is having a hard time generating any growth, do you think things slow down . If you go back to forecast, 2019, last fall, 2018 was coming in close to 3 , almost everyone was forecasting something between 2 and 2 and a half percent for 2019. Is that a good number, probably still is. Maria yeah. By the way, trend, potential growth is less than 2 or under 2. Theres still a forecast that we will be at or near trend for 2019 and so i find the notion that theres a pan that i can we need to react to troubling and the fact that last december when the markets hit a lot of volatility, ting fed overreacted. Sent signal that they would be doveish and cut rates and doubled down on that over the course of the spring and now they are in a position where i think to some degree the fed is probably afraid that if they dont now deliver on the rate cuts they are going to cause another volatility and they dont want to do that. Thats the curse of paying too much attention. Maria maybe the president s criticisms. Maybe the president s criticisms. Maria that as well. Getting above the prey and not reacting to shortterm volatility and shortterm reactions is a dangerous place for the fed to be but thats a failure, theyve gotten into the over the years. To be clear, we could have prosperity and Growth Without inflation. Of course. Maria why are we so worried that inflation is not meeting the target . I dont know. Im perfectly happen between 1 and a half and 2 inflation, whats so bad about that . Maria exactly. I think whats bad about it. The only thing thats bad is fed set rate of 2 , but we can only measure the things so precisely. The public doesnt know the difference between 1. 8 and 2 inflation. Maria exactly. Who cares . Maria real quick on trade, trade representative lighthizer expected to meet with house members to discuss usmca, we know its real important, is it going to come to the floor, how does that work its way into the economy, do you think . Well, i think the the good thing if it passes it resolves one more uncertainty out there. Thats getting, getting the uncertainty resolved is stabilizing and calming things down a bit. Maria all right, we will leave it there, charles, good to have you on the program, President Donald Trump just tweeted this morning about todays social media summit and the census, the white house will be hosted very big and social media summit today, would i have become president without social media, yes, probably, at its conclusion we will also go to beautiful rose garden for News Conference on the census and citizenship. The president setting off the day this morning on twitter. We will take a break, mcdonalds is feeling the heat, chain to up chicken game, why chickfila is causing stress there. Back in a moment with that the more, the merrier. Got to have this stuff in the morning. Oh, thats too hot. Act your age. Get your own insurance company. Carlo, why dont you start us with a little bit of cereal . You can spread it all around the table. And were gonna split the warm hot dog. And ill have a glass of grape juice to spill on the carpet. Oh, uh, do you want some to spill . Act your age. Get your own insurance company. Most people think a button is just a button. That a speaker is just a speaker. Or that the journey cant be the destination. Most people havent driven a lincoln. Discover the lincoln approach to craftsmanship at the lincoln summer invitation. Right now, get 0 apr on all 2019 lincoln vehicles plus no payments for up to 90 days. Only at your lincoln dealer. Maria welcome back, headlines across america this morning, federal judge orders pg e to respond point by point on newspaper article about statement, the utility knew for years that ages transform lines could cause fires, pg e to make statement, most important responsibility is safety of customers and communities. Chicago tribune this morning writes, mcdonalds franchisee are pleading for better chicken sandwich to fend off chickfila threats. Calling on chicagobase giant to focus more on chicken so they can compete. Chickfila sales soar last year, third restaurant chain behind mcdonalds and starbucks. Drivers begin to return money after 175,000dollars in cash storm on i285, the scene right out of hollywood movie, armored car door swings open, spills cash all over the busy highway, drivers hit the brakes to grab and go, police asking those who took the money that ran and return it or possibly face charges. What would you do if an armored truck opens up . I would be in the middle of the street for some singles. Charge someone for picking up a 50 off the road. I didnt know that was a crime. The irs going to ask for photos to see, report the income. Maria right, i wont be able to give the money back. Dagen given how bad drivers are on that state, i dont think you better stay in your car. Dangerous when youre in your automobile. Maria have you seen the gatorade sports drink, first time in years gatorade has new sports drink and why its standing out next. 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. Hey i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a time for them to call me back, its great you have our number programmed in . Ya i dont even know your phone anymore. Excuse me . what . I dont know your phone number. Aw well. He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. Maria welcome back, gat raid taking hydration around clock, bolt 24, new drink, no artificial sweeteners or flavors. Joining us right now Senior Vice President of gatorade. Tell us why did you decide to come out with new product after 20 years . Yeah, sure did. This is a really awesome time for gatorade, allows us to think about athletes in a whole different way, for years in 1965 dr. Kay invented gatorade because he we wanted to make athletes better, thats great, when youre sweating on court or field of play you want to drink gatorade. How do you best prepare your body and get ready for that moment of participation, for moment of performance when you have to be your best and thats where bolt plays important role, bolt 24 because its 24 hours of day of preparation, thats where bolt comes in and does amazing job. Dagen im doing the natural southern shake, might not need that but its watermelon base which i find interesting. It is, really interesting way to get to get electrolytes. Sea salt and watermelon provide electrolytes. Maria why its important . E e what does it do for nonathletes . Keeps you hydrated. Its what you want to be able to have in your body, so you dont have lethargiy, as an athlete, maintaining dagen so its very low calorie for the volume. It is, low calorie, because the proposition is not about that heavy carbohydrate moment, its about making sure that what youre putting in your body is maintaining that level. Cant wait to show them to my grandchildren. [laughter] as red bull drinker red bull is not for hydration. Thank goodness you like the taste, its awesome. Its important for nonathletes. If you didnt like the taste, it almost back to hydration element. Maria less sugar because Everybody Knows has become evil. [laughter] depends on the functionality. If you need to be out there participating in heavy weather and putting your best, you need the energy store to get you going. Maria thank you, still ahead, earnings out of the top of the hour, we will bring you the number. vo the hamsters, run hopelessly in their cage. Content on their endless quest, to nowhere. Defy the laws of human nature,at the summer of audi sales event. Get exceptional offers now. Who used expedia to book the Vacation Rental which led to the discovery that sometimes a little down time can lift you right up. Expedia. Everything you need to go. Expedia. Dear tech, youve been making headlines. Smart tech is everywhere. But is that enough . I need tech that understands my business. I need tech that works at scale. Dear tech, dear tech, dear tech, were using ibm blockchain to help make sure food stays fresh. Were exploring quantum to develop next generation energy. Were using ai to help create more Accessible Health care. Were using iot to create new kinds of digital wallets. Lets see some more headlines about that. Lets expect more from technology. Lets put smart to work. Maria welcome back. Good thursday morning, everybody. Thanks so much for joining us. Im maria bartiromo. It is thursday, july 11th. Your top stories right now. Delta airlines reporting Second Quarter numbers in a moment. The airline has been outperforming rivals. Weve got the numbers when they are released. The estimates call for earnings number of 2. 28 a share on 2. 2. Jay powell driving Global Markets higher, futures pointing to a gain at the start of trading after powell signaled a rate cut may be on the way. Dow futures indicate a gain of 86 points, nasdaq up 24, dow, s p and nasdaq hitting all new intraday highs yesterday. The s p crossed 3,000 but at the end of the day, nasdaq ended at a fresh record high at 82, 02, on the day. European and asian markets look like this, european indices are mixed. Dax index is down 23. Asian markets were higher across the board on the heels of wall streets gain. It was a fractional move in china. Delta earnings are out. Lets get to Lauren Simonetti with the numbers. Lauren. Lauren the adjusted eps better than expected, 2. 35 a share for delta versus the expectation of 2. 28. Revenue in line at 12. 5 billion. Look at the stock reaction. It is up 2. 1 right here in the premarket. Now, delta preannounced they would have pretty good numbers and they certainly did. Theyre in a sweet spot for two reasons. Reason number one, they have no boeing 737 max jets that are grounded in their fleet. There is no capacity hole for them to fill. Number two, remember the Philadelphia Energy solutions, the refiner that went on fire and bankrupt just a few weeks ago . Well, delta gets most of its jet fuel from the Monroe Energy complex that they own which is about 25 miles from the other Energy Solutions complex that went bankrupt. So they dont really have to worry about the availability of jet fuel. So those are two good things for del a take. They have also raised their profit outlook for the year. They site strong travel demand. Their traffic in the quarter up 6. 3 . So pretty good report from del a take take and as you can see, the stock is gaining even more, about two andahalf percent in the premarket. Maria lauren, thank you. That stock is doing well. Well keep checking it. Our top story this hour is the Federal Reserve, investors optimistic following jay powells comments before congress yesterday. Powell will be back on capitol hill today. Hell testify in front of the senate. He sounded doveish yesterday on future rate cuts, citing Global Economic conditions. In the United States, we got a job report that was positive and thats great news and we had some other reasonably good news. I would say the u. S. Day a take came in about as data came in about as expected. Weve agreed to begin discussions again with china. While thats a constructive step, it doesnt remove the uncertainty that we see as overall weighing on the outlook. So i would say that the bottom line for me is that the uncertainties around Global Growth and trade continue to weigh on the outlook. Maria with those comments, stocks soared to record highs. All three major indices hit intraday highs. The nasdaq gained 60 points. Joining us right now is illinois congressmacongressman shawn cas. What was your takeaway yesterday from the chairman speaking to your committee . Im frankly a little nervous. I think its easy to throw fuel on the fire many i thin. I think our job in washington is to make sure weve got fuel for the next fire. And after running over the last two years a really irresponsible fiscal policy, youre not supposed to pile up deficits and strip cash out of the economy during an expansion, mr. Powells only real tools are Interest Rates. And weve not created much of a cushion on Interest Rate for when the next recession comes, as it invariably does. If he is signaling concern about the economy and we dont have the fiscal tools in washington to deal with that and we havent built up the cushion, i dont want to go back to quantitative easing but it makes me nervous. Maria thats a fair point. Lets go through this. Irresponsible that we saw 3. 1 growth in the First Quarter, irresponsible that were seeing unemployment now at a 51year low . I mean, after all, we did see the debt double under president obama, no . Irresponsible because we are in the midst of a 10year economic expansion. I give obama 80 of the credit for that. And what weve seen over the last two years is a huge expansion in wealth inequality. Yes, weve continued to run that. But we had corporate profits at a an alltime high, we had wages at historic low relative to gdp. Maria we had growth below 2 on average under president obama, average, under 2 , sir. We have seen a widening of wealth inequality. For the average person we have seen no median wage growth and really if you look, almost all of the Business Investment, almost all of the increase in Business Investment after the tax cut was because of the rise in oil, our increase in producing. The boom that happened despite president obamas policies, if youre giving him 80 of the credit, i assume youre giving trump something. Doesnt seem to leave much for the producers had in the economy, the consumers, the creators of businesses. But i want to get to that powell comment about uncertainties. Back to your original point. Cutting Interest Rates because theres uncertainty just seems bizarre. I mean, theres always uncertainty, right . Well, what i heard and you just played it in your clip is essentially what he said was that trade uncertainties are making him nervous about the International Outlook and were tied to those international markets. The trade uncertainties are an entirely self inflicted wound in the Trump Administration right now. We know the president wants a rate cut. If the message is that the president can create trade uncertainties that hurt the economy, then give them a rate cut, thats pretty dangerous and frustrates the feds independence. Steve forbes here. Going back to your point on wages, it appears for the first time in years low income workers wageser wages are risia faster rate than supervisory workers and others. Isnt that a good thing . There have been temporary improvements. Temporary. They move up. Why do you call it temporary. Maria wages are up 3 year over year. If you look back over the last 20 years, weve seen massive increases in productivity, a massive testament to what workers have done and weve seen virtually no movement in median wages during that time. Weve seen a recent hiccup but it pales in comparison to what happened. Weve had a huge increase in productivity, which is the engine of Economic Growth and the gains of productivity have flowed almost exclusively to the owners of capital. Dagen what are the democrats going to do to extend this growing prosperity among lower skill workers in this country, people say with a high school diploma, what are the democrats going to do to make sure that we actually do see a narrowing of the gap between lower income americans and higher income americans, other than Wealth Redistribution by taxing the rich and passing the money on through the form of welfare . What are the democrats going to do to continue what President Trump has done in his two andahalf years in office . Well, if youre putting me in charge of the democrats, thats news to me. Dagen youre the one on the show right now, congressman. Let me tell you the student of history. The last time we saw wealth inequality and concentrations of power this wide was in the 20s. We had at the time, we saw some countries in europe embrace communism and move the capital into government. That would be a massive mistake. We saw some countries in europe essentially outsource government functions to the private sector and install despots and embrace farism. Fac. That would be a mistake. Maria what do you think should be done now . In the 1920s we embraced competition. We entered an era of antitrust and we made sure that consumers benefited because you unleash all this innovation in a competitive environment. Maria in a practice at this l call sense, what practical sense, what do you want to he see . I want to see a return to competition. Maria what does that mean . It means recognizing that being promarket and being procompetition is not always the same as being probusiness. I spent 16 years as a ceo and i can tell you, it is really hard to be in a competitive market. There isnt a business in the world that asks for competition. And every time we have embraced competition, the country and consumers have won. One of the things that has crushed Small Businesses is the massive increase in regulation, literally hundreds of thousands of new rules, were starting to tackle that. Dont you want more deregulation of some of the idiot rules that hurt businesses. I spent 16 years as a ceo. I built a company from nothing into an 80 million business with a couple hundred employees. We created a lot of value. There wasnt a point in my life other than when perhaps i was in dc and meeting with people when my barriers were competition. Did i have barriers in terms of access total only . To talent . You bet there were. But there is nothing wrong with saying a that we have a role in government to protect consumers, to protect markets, and that that is entirely different from looking out for the interest of any one business. Maria youre not giving us any solutions sir. Like i said, what would you like to see in terms of policy . Look, what id like to see, as i said before, embrace competition. Maria how . Whats your practical policy, congressman . We had a conversation yesterday, when we had a bipartisan concern that facebook, if they created a crip he totoecryptocurrency, they cod undermine the currency, if theres one company that has that potential, that Company Needs to be broken up. When we have concentrations of wealth, we need to go through and look at making sure that consumers have choices, that businesses are competing. In sector after sector right now, we have Single Companies that control those sectors. Thats not Wealth Redistribution. Thats not socialism. Thats capitalism and thats what we should be embracing. I just want todd ased to asku about the libra from facebook. Are you against cryptocurrency . Are you against an alternative to the u. S. Dollar from the private sector . Look, purely as an individual citizen, i dont put any money in something that doesnt have any innate store of value. Cryptocurrencys are gambling. Thats not to say there arent people who will participate in those markets. We allow people to participate in casinos. We can allow them to participate in cryptocurrencies. They need to be very closely regulated. It is really easy to take advantage of unsophisticated consumers in those markets and weve already seen that. Im usually gambling doesnt create a lot of Economic Growth productivity, but isnt there risk if youre stepping on cryptocurrency that you dont get the benefits of innovation, maybe its new Payment Systems, new technology, new ways to bank p outside of the traditional system. Arent you kind of foreclosing a lot of opportunity if you say thats a threat and we need to regulate it . Well, look, there are innovations around Block Chain Technology that have mass applications, way beyond a whole host of whether or not its a currency. Theres innovations around Payment Systems that have nothing to do with whether youre using a form of currency that has no innate store of value. My point is simply saying that if you have a form of currency that is not redeemable in any other kind of tender, that is not backed by the full faith and credit of a government, that currency has no inherent value. And if people think it does maybe the consumer think there is a value to bit curve. Bitcoin. I share your skepticism. Im not sure 11 grand is the right number. The dollar has nothing backing it, hasnt since 1971. I am not ad vo kateing for the advocating for the Gold Standard. The dollar has the full faith and credit of the u. S. Government. Maria we started looking at growth and you criticized the policies in place right now. Would you like to see taxes raised and regulations go up . What i would like to see is a recognition that we used to take advantage that significant parts of the social safety net were provided by corporate america. That genie is long since out of the bottle. I dont think anybody wants to live in a world where people dont have access to food and shelter and healthcare but if we can no longer count on employers to provide those benefits, we have to make sure that government is funded in a way to do it and when corporate profits are at an alltime high, relative to gdp, while the social safety net is falling apart, yeah, i think its appropriate to say that if corporations are not going to provide that service, we need to have resources from them to provide it here. Thats not antigrowth. Thats recognizing there are some elements of society that none of us want to not we want to have those services provided. What is the social safety net going away, what are you talking about there . We used to have guaranteed pensions. We used to have companies that provided housing to their employees. We used to have companies that provided education. We have a gig economy where people arent even getting healthcare. We dont want to live i in a wod where people dont have access to that. Maria you want to raise taxes on the rich and pay for it in that way. Is that your answer . I believe in the principle of to he who much is given, much is expected. Maria thank you so much. Thank you most people think a button is just a button. That a speaker is just a speaker. Or that the journey cant be the destination. Most people havent driven a lincoln. Discover the lincoln approach to craftsmanship at the lincoln summer invitation. Right now, get 0 apr on all 2019 lincoln vehicles plus no payments for up to 90 days. Only at your lincoln dealer. Maria welcome back. More wicked weather to report. New orleans already slammed by severe flooding is bracing for a potential hurricane. Adam klotz is covering the story. He joins us now in the weather center. You mentioned the flooding already there. The storm is still far out. Low pressure system likely becoming a Tropical Storm, Tropical Storm barry, before today is over. Currently its forecasted to get to a low end category 1 hurricane. It may stop just before that. But either way, this is going to be a powerful storm as it drifts closer and closer to the louisiana close. We see flooding yo flooding acre portion of the gulf states, from louisiana to the florida panhandle. Flood watches and warnings already there. The winds havent picked up too much just yet, from 20 to 30 miles an hour. As the system gets closer to the coast, the wind will pick up and the storm trent owns. Its going strengthens. Its going to push a wall of water up along the coast. We have storm surges from 3 to f the louisiana coast. Its only moving at 5 miles an hour. Every time we get an update theres a little bit of a change here which means that theres still time for this to maybe move a little bit farther off towards the west or farther off towards the east. Theres still indecision in the models. You see a wide range, some taking it over new orleans, others running into portions of texas. That something well have to Pay Attention to. The biggest story is going to be the rain. Wherever this makes landfall theres going to be spots that get up to 15 to 20 inches of rain. Theres time for this to move. Well be watching it very closely today into all the way into saturday morning when this is likely making landfall. Maria adam, thanks so much. Well be watching as well. Coming up, pelosi takes on her own caucus, the House Speaker in a war of words with a new member of congress, the response coming up. Stay with us. Baby, baby, where did our love go. Dont you want me. Bay yo baby, baby,. Dont you want me no more i cant tell you who i am or what i witnessed, but i can tell you Liberty Mutual customized my Car Insurance so i only pay for what i need. Oh no, no, no, no, no, no, no. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Maria welcome back. Good thursday morning. Markets are higher this morning. Record highs on wall street yesterday. Take a look at futures indicating a gain this morning of 85 points on the dow. S p up 6 and a quarter, nasdaq up 18 following Federal Reserve chairmans jay powells testimony to the house financial Services Committee yesterday. Powell hinted that a possible rate cut could be on the horizon, given new uncertainties in the economy. Joining us right now is the founder and ceo of parfaha partners, thank you for joining us. I know youre dealing in the private Company Space and youre making markets and private companies. But first talk about the Public Markets for a second. We saw a big reaction yesterday to the fed chief. Your takeaway in terms of whats going on in Public Markets. Im lamenting the overuse of Monetary Policy to drive Public Markets. Inc. Iti think its troubling we responding to rate cuts and thats how people are investing. I think we need more fiscal policy than Monetary Policy. You mean tax cuts . Weve had tax cuts. Lets continue to make them work. Lets get infrastructure done like President Trump wants to and lets cut regulation. Weve spoken about the private side, take care of the economy, rather than having rate cuts as the solution which is what we do now and have been doing for the last decade. Its pe peculiar. I remember watching candidate trump being interviewed by john paulson. He lamented yellens influence on the fed helping obama during his presidency. I think President Trump should remember that and not push for rate cuts and continue to do a the good job hes doing with the economy. Wanted to ask you, since you look at youre looking at private companies all around the world helping them fund themselves from the early stage until eventually an exit or ipo. Can you give us kind of the state of technology . You focus on a lot of the consumer Tech Companies. Its silicon valley, is the United States the heart of innovation . Is it china . Is it india . Is it somewhere else. The United States definitely is the cradle of innovation. Thats one of the great things about the private companies we work with and why im bullish on the economy generally speaking. If youre on the ground, seeing amazing businesses being created every day privately like we do its something to be excited about. Theyre coming out of silicon valley. A lot of them are coming out of manhattan. A lot of private companies are sprouting up. As we discussed, theyre taking longer to go public. Theres a lot of liquid at this in the private markets that werent there before. Dagen really quickly, how do you explain, though, with the very high taxes and the kind of egregious regulation in a new york city or in california, how do you explain those jobs being created there . Why arent more of these businesses moving and even starting up in, say, texas or nevada . I think they will. Thats a great point. The new tax cut probably is going to facilitate that quite a bit when you look at getting rid of the salt reduction to states like new york and california. What washington did with that is going to challenge new york and california to reduce state tax rates if they want to remain competitive. Austin, techs a texas is a t hof innovation as well. The source of liquid at this, is it pension funds, you mentioned governments, where is the money coming from. A lot of it were former Public Market players. I used to run the Hedge Fund Business at bank of america and a lot of my old clients are extremely active in private markets because thats where a lot of yield is. So are sovereign wealth funds around the world as well as long only funds that used to only play Public Markets. Almost all of the alternative focused investors are starting to play in the private markets. Thats billions of dollars. Are these as efficient as the old Public Markets, presarbanesoxley, are you coming in the breach, they wreck that so youve got to come to the rescue. Yes, im coming to the rescue. Thats exactly right. Im trying. Its a great point. I think this is definitely an opportunity that were seeing and its going to continue to grow as it further institutionalizes. Maria where is the growth in the private companies . Technology, biotech . Where do you see the most opportunity. Consumer tech businesses are probably the hottest. If you think about it, almost every company we deal with has a tech element to it. Theres an ecommerce portion to it or something. So i think tech is definitely the sector that we see the most growth in and youll see that if you look at the ipos that have happened. Ultimately, they may go public. Its mostly in that sector. Peter teal makes a point about atoms and bits. Will we have more going to manufacturing instead of algorithms for finance. Its something ive thought a lot about. I think automation technology, while wonderful for the consumer, does have a negative impact on Manufacturing Base in the country. Weve seen that. Its a variety of reasons. Technology is one of them. Its affected wall street to. Automation has hurt the amount of jobs that people are employed by the wall street, big bank sector. The Goldman Sachs ceo said now he can have three people do the job that 500 used to have to do us because of technology. There are positives and negatives along some of the points you brought up earlier. Maria three people versus 500, thats a big number. See what happened with Deutsche Bank, how many people lost their jobs. Maria the doj is investigating Deutsche Bank right now. Your reaction . I read if book about that whole fiasco. I think this is driven by economic need by the banks. So they expanded to asia and other areas in order to generate revenue because the u. S. Was contracting. And so it is odd that since compliance jobs were the jobs that have been hired the most since the crisis, that this seems to be a failure of compliance. Maria its great to have you on the show. Thank you so much. Maria thanks so much. Coming up, congresswoman alexandria ocasiocortez implies House Speaker nancy pelosi is a racist. Things are deepening. The escalating war of words within the Democratic Caucus coming up. And a coachs yo patriotic call. If theres anybody here thats going to be disrespectful to the american or Canadian National anthem, grab your gear and get the [bleep] out now. Maria the video going viral. More coming up. Stay with us. I fell into a burning ring of fire. I wept down went down, down, d the flames went higher. And it burned. Your daily dashboard from fidelity. A visual snapshot of your investments. Key portfolio events. All in one place. Because when its decision time. You need decision tech. Only from fidelity. Maria welcome back. Good thursday morning, everybody. Thanks so much for joining us. Im maria bartiromo. It is thursday, july 11th. Your top stories right now, 7 3. Federal reserve chairman jay powell driving Global Markets this morning. Futures pointing to another gain at the start of trading after powell signaled a rate cut could be on the way as early as july. Dow up 91, s p up 7, the nasdaq up 20. The next fed meeting is at the end of the month. All the major indices hit new intraday highs yesterday. The s p crossed 3,000. Only the nasdaq ended up at a new record high when all was said done at 4 00 on wall street. European markets this morning look like this. As you can see, its a mixed story, fq100 down 9 points, cac up 7 and the dax index lower by 17. Asian markets overnight were higher across the board. Fractional moves for the most part but, well, kospi was up 1 , hang seng was up almost 1 . President trump just putting out a few tweets. Heres what the president sa. A big subject today at the social media summit will be tremendous dishonesty, bias, discrimination and suppression practiced by Certain Companies. The Fake News Media will be there for a limited period, writes the president. The fake news is not as important or powerful as social media, the president says. Theyve lost tremendous credibility since that day in november 2016 that i came down the escalator with the person who was to become your future first lady. When i ultimately leave office in six years, or maybe 10 or 14, just kidding, they will quickly go out of business for lack of credibility or approval from the public. Thats why they will all be endorsing me at some point. One way or another. The president writes. Could you imagine having Sleepy Joe Biden or alfred newman, 99, hes referring to Pete Buttigieg or very nervous or skinny version of poke ho pocohonts ran what you have now. Sorry to say that even social media would be driven out of business along with and finally the Fake News Media, the president is having some fun there this morning. We want to bring in Juan Williams on that note. What do you think of the president s tweets this morning. So goodlooking and a stable genius, maria. You know, we were going to talk in a few minutes about alexandria ocasiocortez. Maria lets start here. And her use of social media. I think shes number two to the president in terms of politicians with social media following on twitter. Thats an example of the power of not only this president and his stable genius and using it, but also what he has set in motion in terms of on the other side alexandria ocasiocortez building a following that nancy pelosi then says oh, her social media following is not about real politics. I think we can laugh about the president being such a narcissist and maybe in a funny way this morning but it does have power. I dont think theres any question. Maria look, the democrats are divided and its playing out all on social media, right. Alexandria ocasiocortez implied on twitter that House Speaker nancy pelosi is a racist. Pelosi called out far left democrats for voting against the 4. 6 billion border funding deal. Sheaf said they dont have much influence in congress. Now, aoc sounds off on the spat telling the Washington Post this. But the persistent singling out, it got to a point where it was just outright disrespectful. The explicit singling out of newly elected women of color. Why would she bring up women of color . What does that have to do with anything, juan . All four that shes signaling out, the four that voted against the border bill, theyre the only four democrats who did, are all women of color. I think what alexandria ocasiocortez is saying is that theres a lack of sensitivity there. I dont think shes calling her a racist. I think shes saying that those four people are voting especially when it comes to immigration with a sensitivity the way people who are immigrants and in large part coming from central and southern america are being treated at the border and that they are deeply offended by this. Pelosis calculation is much more about counting votes and pelosi can count votes not only in terms of her floor, but in terms of the moderates that she needs to stay in power as speaker of the house come 2020. Dagen its nancy pelosi who didddid ilhan omar a favor by nt calling out the antisemitism, the repeated use of quotes about the jewish people, nancy pelosi actually tried to tamp that down. What marias talking about is alexandria ocasiocortez is using her ethnicity and the ethnicity of those four women as a crutch to try and accuse her leader in the house of being a bigot. I dont think so so at all. Dagen why refer to themselves as women of color. They are women of color. Dagen what does a that have to do with her disagreeing with the behavior, for example, not voting for that. Maria more identity politics. More what . Maria identity politics. I think identity politics is borne on donald trump and the right these days. Maria were talking about this right now. Coming back to this topic. I think dagen, what you have to understand is here one of the big divides within the Democratic Party and even with democrats on capitol hill is generational. And if we dont talk about it in those terms very often but obviously the younger, more activeist base of the party are more people of color, more immigrants, and much younger. By the way, much more female. And those people feel like you know what, were not being heard by the older generation that donald trump punches at regularly and theyre saying oh, no, the way to beat donald trump is to be more moderate, not to engage in the kind of bullying and name calling that he does. They want him they want their Democratic Party to become ferocious in defending the rights of immigrants, in saying racism is wrong, in saying that you know what, when you look at the Republican Party today, they practice identity politics to a dagen again, theyre eating themselves. The democrats are eating themselves. Its something that Meghan Mccain talks about all the time on the view and she did on this network. They need to look to the mature leader in the house. We can agree. Dagen mature leader and realize thats why youre in power in the house is because of her leadership not because that was my point earlier. Dagen not because you take a great selfie. President trump just this morning and what maria was showing is an example of the power of the great selfie or the you know, the selfeffacing humor, i hope. I am sometimes not sure when he says l hell be in power for 10 or 15 years. Dagen lets paraphrase something that nancy pelosi said to these four women. You ladies are new around here. You need to learn lessons from the grande dame thats been in politics for decades. We talk about divisions among the democrats. We could talk about whats going on among republicans. The huawei deal set off senate republicans. The issue of the continuing resolution 57bd how welresreso. People in congress are writing a letter to the administration, saying its too much in terms of military cuts and not enough in terms of deficit reduction. Justin amash is calling for the president to be impeached, one of the founders of the freedom caucus. Dagen its lonely out there. Theres always that churning in american politics. I would argue, maybe its healthy. On the issue of immigration, do you think the democrats overplayed the hand on the border issue, acknowledging finally this is a humanitarian crisis, and why dont they change the asylum rule or in Effect People around the world get the impression you get to that border, you do your 20 days, youre released and youre in. I think that thats the heart and soul of the matter. Maria it sure is. Congress having to change the laws. Of course, we have a tremendous history as americans when it comments to asylum. A lot of this goes back to you hohowjews were treated after wod war ii. Maria most of the cases, its just they want a better opportunity in america. I was there at the border in el paso, a woman said to me, no, im not really fleeing anything. I think my daughter will have a better opportunity growing up in america. We have to actually say that, that, yes, of course you want to be open handed to anyone seeking asylum. Thats not what every case is about. Thats why theyve got to change the rule which in effect invites people to come, get across the border, have your 20 days and then youre released a and you dont show up for your hearing. I think thats an adult conversation we need to have. Why wont the democrats deal with that . At the moment youre dealing with President Trump. Youre dealing with a guy who says its not just a humanitarian crisis as you aptly described it. He was sending troops to the border. Maria obama said dont come here illegally, youll be turned away. We have sound bites of obama saying that over and over again. Not just trump. Lets be honest. Obama was dealing with unaccompanied minors. Trump is separating families. Maria its because people are renting out their kids in mexico and theyre getting thats not the hear heart anf whats going on. Maria many people are renting out their kids. I saw it for myself. I think thats a talking point of the right to try to deflect from the issue. Maria are you saying renting is not going on . Thats not the heart and soul of the issue. You have families that are desperate to get away from violence and economic maria under obama it was all men coming over the border, young men. Today, its families, quote, unquote. Thats the different. Maria they know they get an easier take when they get there. When youre a family its harder to separate them. I would argue just the opposite. I think President Trumps zero tolerance policies exacerbated the problem. Why dont the democrats then do what would seem to be a good political thing, not to mention humanitarian, change that virtual invitation and say okay, we dealt with the problem. Mr. Forbes, if it was you and me, i think we could work it out. We could work it out. Go ahead. Im wondering, why doesnt nancy pelosi put a public offer on the table . You get your wall. We want these increased a amounts of Legal Immigration in these categories. We want something for the dreamers. Okay. Well change asylum rules so it makes less likely people who are not actually seeking asylum or coming in, im wondering maria why not. She has a laundry list of things she claimed for years she wants. Were in july of 2019. In january of 2018 Award Winning interface. Award winning design. Award winning engine. The volvo xc90. The most awarded luxury suv of the century. The volvo xc90. The ai i want . Well, insurance its all about trust and speed. I need it to guide this analyst to customize Flood Coverage for this house. So that this team, can inform this couple, that their payment will arrive faster than this guy. Hey. So whether im processing claims due to this fine gentleman. car engine starting or suggesting premiums for this young lady. Ai can help change everything at this company. Expect more from ai. Ibm watson. Maria welcome back. The u. S. Reaching a huge settlement over an opioid drug. Cheryl casone with the details in headlines now. Cheryl thats right, maria. The department of justice and federal trade commission reached a settlement with ruket to the tune of 1. 4 billion over that drug. The company is in u. S. Crosshairs over the actions of the former pharmaceutical unit. The unit produced the open idea addiction treatment. Investigators allege the company drove up sales by claiming it was safer to take than other drugs in the same category. The next trade conflict with france is over tech. The French Parliament approved a 3 tax on revenue that Companies Like google and amazon get from targeted ads in digital marketplaces within france. U. S. Trade representative Robert Lighthizer who has opened an investigation into that tax said the u. S. Is very concerned that it unfairly targets american companies. And then finally, check this out. An assistant hockey coachs locker room speech has gone viral after he told players to respect the anthem or get out. Were not womens soccer. Were not the nfl. If theres anybody here thats going to be disrespectful to either the american or the Canadian National anthem, grab your gear and get the [bleep] out now. Because youll never see the ice in this arena. We dont have that problem in hock east were better than that. But theres no sense in wasting anybodys time if that [bleep] is going to happen. Cheryl well, the coach made clear there is no room for that kind of protest on his team, maria. Back to you. Maria all right, cheryl. Thank you so much. The president is tweeting this morning, he just tweeted about the cofounder of bet, Robert Johnson. I give the president a lot of credit for moving the economy in a positive direction, thats benefiting a large number of americans. I think the tax cuts clearly helped stimulate the economy overall. If you look at the u. S. Economy and you look at the number of people who are no longer looking for jobs but who are seeing the opportunity for job growth, youve got to give the president an a plus for that. Thank you, robert. The president says, one of our great business leaders, Robert Johnson said that recently so the president tweeted about it. He tweeted this this morning, the Fake News Media loves the narrative that i did not use many banks because the banks didnt like me. No, did not use many banks because i dont need their money. Old fashioned isnt it. If i did, it would have been very easy for me to get. Remember, a bank that i did use years ago, the now badly written about and maligned Deutsche Bank was then one of the largest and most prestigious banks newspaper the world. They wanted my business and so did many others the president writes this morning. The president is having a lot of fun tweeting this morning. Dagen waiting for that tweet about alex across. Maria wela acosta. Maria , talk about had that next. Ve the. 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. Xfinity mobile is a designed to save you money. Whether you use your phone to get fit or to find the perfect gift, youll use less data with a network that automatically connects to millions of wifi hotspots and the best lte everywhere else. So you save hundreds of dollars a year on your wireless bill. Xfinity mobile has the best network. Best devices. Best value. Simple. Easy. Awesome. Click, call or visit a store today. Maria welcome back. Media and Technology Moguls headed to idaho for the annual allen and Company Sun Valley conference. Jackie deangeles is there with the latest. Jackie, good morning to you. Reporter good morning, maria. Were told that 400 private planes will touch down here, they started yesterday, over the course of the next few days with the media and tech giants. As you mentioned, we saw big names coming and going yesterday. Namely, john malone, we saw barry diller, diane von ferstenbrg, james murdoch. Its the theme of media and tech mixer. In the marketplace, who has more power. We had a chance to talk to john malone yesterday, he stepped on the side to answer that question. When asked what he thought about amazon, facebook and google, the answer was interesting. Theyve changed the world and theyre the disrupters now. We were disrupters in our youth. Now theyre the disrupters. We have to figure out how to position ourselves to adapt to the changing world that theyre changing. Youre not going to fight them. So you better accept them as a fact. Reporter so interesting there. Theyre the disrupters, they are changing the world he said and sort of also said if you cant beat them, join them. Thats part of the conversation i think thats happening behind the scenes here today. But the other things people are going to be watching is sheri redstone. Were looking for an announcement on a cbs, viacom veemerger. Maria another topice potential regulation within the social media space, right . Particularly as weve got a tech summit going on at the white house and all of this criticism about censorship. Reporter thats the conversation going to be taking place in washington and a conversation thats taking place here. Its going to have such an impact on how the companies develop. Maria jackie, thank you so much. Well keep checking back. Still ahead, the social media summit on the white house, more on that, right here, next hour, mornings with maria. Stay with us. Liberyour Car Insurance,s so you only pay for what you need. Nice. But, uh. Whats up with your. Partner . Not again. Limu thats your reflection. Only pay for what you need. Liberty, liberty, liberty, liberty lick fast like a cookie dough ninja. Apply that same speed to the ford hurry up and save sales event. For the First Time Ever get 20 estimated savings on select ford models, plus earn complimentary maintenance through fordpass rewards. It all adds up. Dont you love math . So get here asap because tasty deals and summer go fast. Get in or lose out on 20 estimated savings on select ford models, plus earn complimentary maintenance through fordpass rewards. Fun fact 1 in 4 of us millennials have debt we might die with. And most of that debt is actually from credit cards. Its just not right. 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Minutes from last months ecb meeting just released saying the members agreed on the need he to be ready to provide more stimulus to eurozone in an environ of heightened snurnt from from ecb not movement in markets post that that is basically what we heard from mario draghi last pique asian markets higher overnight take a look, pretty much, higher across the board fractional moving in china escalating tensions with iran iranian gun boats tried to steez a British Oil Tanker in strait of hormuz the lattered a british warship intervened. A profit beat on higher travel demand raising guidance stock up better than 2 as Company Takes dividend up, the worlds highest paid intaernz kanye west number 3 forbes find out you who is earning top dollar steve forbes with us coming up joining me to break it all down dagen mcdowell, assistant Editorial Page Editor wroj james preman forbes media chairmen former republican president ial candidate steve forbes great to see everybody. Great to be an here thank you. Interviews about issues of the day what is most important. Right now the Federal Reserve. And yeah they are all focusing on Interest Rates, built, i am concerned about getting a number fed person on that board judy shelton did a bank shot yesterday with paul going against the Gold Standard as a way of hitting her there is a big battle weve got to get diverse on the board. You want a disdent there yes need hard divest idea of pro sprity causing inflation has to be ataxed. What is wrong with into sperity no inflation . Yeah, a rock star people have talked about President Trump, with the kooky tweets rest of it might have trouble attracting talented people called the collapsing of the soviet union that is one of the great calls in history, a lot of smart writing Research Since then ep. Dagen also, speaking of hires the labor second the only thing you need to point out his main job is to promote how awesome the job market is how great job growth is. Wages growing at fastest pace 10 years, is a distraction can he do that Going Forward who do we see on jobs, larry kudlow we see heaven hassett all the time economic adviser not alex acosta why is he there is he a distraction in the weeks and months to come if he stays around . I just raised that issue, but you are there to promote labor policy, the great job market, and all of this too much we are watching that. Labor department, has been doing good things removing barriers to hiring dont get much pubs caster deregulation push. Skills training another important element there we are talking about all that this morning, top story right now, is President Trump is host sag social media summit at the white house later day blake burman live at the white house right now with the very latest blake, good morning to you. Good morning to you as well very first surprise of the day over at the white house 6 39 this morning came via twitter, President Trump announced that after that social media summit here at the white house there will also be a News Conference regarding the issue of the Citizenship Question, on the census break down one by one later went on to twitter to talk about social media summit said the following he wrote quote a big subject today at the white house, social media summit will be the tremendous dishonesty bias discrimination suppression practice by Certain Companies we will not get them get away with it much longer you can see at end of the tweet followed up about several others, he then went on to rail against with what called fake news yood after that summit the expectation is the president will announce his course of action, regarding thes census Citizenship Question earlier this week the president talked up possibility of executive order as Supreme Court has recently kicked the matter back to a lower court, watch. We will see what happens maybe addendum after a positive is asking we are working including afr executive order. If president goes route of executive order you can expect lawsuits to follow after that, because the current dynamic right now is this. This is still a matter that is being handled in the court system, and as relates to the census the census is already being printed the president clearly doesnt like that dynamic or where everything stands right now he is potentially trying to change all of that we will see how he tries to go about it later today. Maria blake thanks so much blake burman the latest interest joining me right now tennessee senator member of the judiciary Armed Services Committee Mar marshall blackburn. Absolutely. We are talking about this white house summit you are urging bike tech to protect Young Children what do you want out of Big Technology . Well what i would like to see, out of big tech is some responsibility and accountability. And maria, they go in and subjectively manipulate algorithms opens doors to children like Senate Senate letters i sent this week deals with the way pornography is made public, on their site. And this is made available ratings are wrong on these apps, children are seeing this they need to adjust those ratings, and also, parents need to be aware, you need to give parents the tools, to block this. These videos, that are deleted, this becomes a child predators dream, for contacting children, and there are several cases, where pedophiles have used snapchat to contact and to coerce these children. Unbelievable. Maria it is unbelievable. Maria feels like this is one issue big tech hits both corn rz like elizabeth warren, and ted cruz both saying that they want to break these companies up. Do you want to see breakups of some Large Companies that are today as you know more powerful than weve ever known. I think where we start with privacy issue, yesterday, chris hughes, who was cofounder of facebook was in my office we had a very productive discussion. About how you deal with privacy and givings consumers the tool box, to deflect i term it virtual use and online so you start with privacy, and data security, you look at how the social media giants are prioritizing their content over content that should be realli readily Available Online i am having a meeting later today with ceos of yelp concerning this issue, because they are conducting will go prioritizes their content, so that determines what people see, what they have access to were also going to look at krens orship antitrust say i to they need to reposition themselves i think first, you look at the privacy issue, and you determine how that forces the Media Companies to adjust their Business Model. Right now, they are they built Business Model on a no holds barred they do not have have to inform you that they are taking your data, that they are mining your data. They say he that they are positioning your data to be an sold to highest bidder going to market back to you or is going to go through and sift your data and then determine what they want to push forward to you in the method of videos, or articles it is like youtube you look at one video then they fill a stream with similar videos. Quick i want to move to the border but let me end this here on this, because, when i spoke with 2 president a couple weeks ago he side look we might need legislation which will spur competition. Do you want to see regulation for bureau of investigations. The browser act is legislation that deals with privacy issue that i working to move that forward to get guardedly rails in someplace, and to do that first, like touch, but to put those parameters in place. Understood the crisis at border Immigration Enforcement agents preparing to conduct raids the move after President Trump said operation was first delayed you are headed to the southern border with Vice President mike pence tomorrow, what are you expecting . And do you think we are ever going to get our arms around these loopholes, that are encouraging so many illegals migrants to flood the border . As the thing is we have to get our hands around the loopholes, and we have to plug these loopholes if you will, and make certain, that those who are coming to our country, come here legally, the Border Patrol i was down there, a couple months ago, and they are in desperate need of some help my hope is that our democrat colleagues will begin to work with us, to give the Border Patrol three things they continue to say they need, they have been saying this for 20 years. Give them a barrier, give them appropriate technology, give them more ofrz agents judges to deal with this issue. Maria lets be honest they dont want the president to have a victory, i mean some people on democrats side hate him so much, that they are going to try to make a point and not do anything, about this issue, do you really see anything getting done. I got to tell you they need to get over their pettiness they need to put this nation and our sovereignty and the protection of the American People first. Skoo i understand. They need to stop this Human Trafficking, sex trafficking Drug Trafficking that is taking place on our border. Every town is a border down every state is a border state because of the drugs and Human Trafficking coming through they need to get over themselves. Maria yeah because all people. Election, they need to work for the good of the American People. Maria all people coming to the border facing the situations, where before they even get to the border, they have got to deal with druglords, so there is that. Maria . That is right. Maria they dont want to do anything there but also an issue on trade, so let me asks about usmca. Yeah. Maria what is a likelihood the bill comes to the floor for a vote in the fall . The votes are there. If pelosi were to pit on the floor today, put it on the floor it would pass. Maria why isnt she . I think that there again, you are looking at people that say well do we want to give donald trump a victory, give the American People a victory the unions, farmers for this, come on guys put it on the floor. Maria you dont know is the answering the she is going to bring it to floor by fall. What you are saying. She should bring it to the floor next week. Maria exactly, let me ask about china trade representative Robert Lighthizer going to be meeting with members to discuss usmca. I spoke with Vice President mike persons chief of staff marc short on program yesterday said probably coming to the floor in the fall what is plan bin is it she donate bring it to floor could that happen they doesnt bring it to the floor . I think she will see what happened to the border funding bill before he week before lat you will see moderates say come on nancy lets get with it get this job done. And when you have the unions and so many trade groups, all saying usmca, push it forward, she needs to say she and steny need to say put it on the floor call vote let chips tall where they may let they need a victory being able to about move something forward we need to get this thing dean. When it comes to china we are going to continue to encourage holding that line against huawei. China will steel our intellectual speaker pro tempore they will embed chips and build huawei as a spy network in that equipment and consumer products, we need to make certain that we deal with that issue, and not give them an in which we know what they are up to you have been keeping and president has been keeping his boots on the neck of the chinese on this issue for sure, senator good to see you as always thanks so much. Good to see you. Marcia blackburn, coming up awaiting june Consumer Prices cpi in 150 minutes time economists expecting it unchanged, zero percent we are bringing the number we will see if markets get impacted there, came up yesterday, in the fed talk then fame and fortunate forbes list is out. . Oet 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 dto experiencer gthe luxury you desire on a full line of utility vehicles. At the lexus golden opportunity sales event. 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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. Welcome back shears delta rallying premarket this morning a lot of news there, Cheryl Casone on it right now. Cheryl lot to unpack with earnings secondquarter results beat expectations both top and bottom line strong in an for travel for premium class tickets raised Profit Guidance for the year, they did raise Quarterly Dividend stock up premarket 2 they dont fly boeing 737 max jets, those ground following two deadly crashes, now to a different earnings story this morning, this is bed bath beyond. Adjusted profit coming in better than expected but revenue fell from a year ago missed forecast street had down more than 40 from a year ago, as you can see, down almost 4 premarket right now, few stocks is to watch today. Lockheed martin staying in pennsylvania, defense giant keeping a helicopter plant open there after President Trump called for it. The president tweeted after the news was released quote i was just informed by ceo of Lockheed Martin of decision to keep the helicopter plant in pence open coming we are very proud of pennsylvania people who work there, thank you to Lockheed Martin where u. S. Is truly great companies. And she may be worth a billion dollars but kylie jenner not worlds highest paid celebrity. This iss for steve forbes shaking up stop of forbes list taylor swift earned 1 85 Million Dollars past year, she came in number two 170 million top five of the forbes list kanye west, lionel messi, ed sheeran. Folks are list we look forward to great list i love the list at forbes a sense of amount of wealth in this country. We have been characterized putting kylie jenner on cover a year ago saying a selfmade billionaire, and by golly doing. It quick break waiting Consumer Price index in 10 minutes time economists expecting it unchanged we bring the number next. Fed in focus futures hire this morning rallying after, the testimony yesterday hopes that weigh see rate cut in a couple weeks what you need to know this morning, back in a minute. I got me sun coming up, cakes on griddle thank god i am a country boy, yeah. Maria welcome back markets hit record highs yesterday fed chairman powell testimony before congress indicated a rate cut could be come this month looking at gains today, dow industrials up 113 points s p up 7 nasdaq up 23, this right here high of the morning joining us right now invesco advice chairmen of investments great to see you. Thank you. Maria you said we are looking at further gains, your call is 5 more years of a bull market being. Yes, so suffice more years of growth therefore five more years of bull market the key point that i would like to make is the lack of inflationary pressures in the Global Economy provides central bankers flexibility that they need, to manufacture economic outcome they are not being forced into a corner, much the way fed did in 2018 if things get hot and heavy, they start tightening, at right moment, they have the flexibility to pivot what they did that is why they are probably going lower for a while moo how come they dont act like that we have been having debate all morning why the fed doesnt believe that prosperity is possible without inflation never do anything about it. You dont feel that if the economy starts to do well they are going to talk about overheating incomes going up sweating at night you got to cool it off . They are still working off alleged data sets, in their mind they have been Unemployment Rate gets to a certain level will reach inflation could lead to inflationary pressures unfortunately that is not how things worked out in cycle for most cycle i think, they dont like the current environment, but i think the adjusting actually lagging indicator. Absolutely, intellectually they still believe in the phillips curve although phillips curve hasnt materialized economy very different globalization demographic pressures Technology Keeps inflation under control laws rates far more stimulative. Do you see threats in europe. If you go back in cycle 2011, 12 far more political trouble. Europe on verge of europe breaking up, the common currency going down, and didnt materialize i think what we need to do is make sure that at the right pivot point somebody comes up, like draghi in 2011 to support economy i think as long as we dont make we dont make mistakes we dont have our own goals, the Global Growth can continue for a bit. Markets down by so i think, the the markets are going to be driven ultimately by globe economy Global Economy overall continues to do well, the emerging markets. That a speaker is just a speaker. Or that the journey cant be the destination. Most people havent driven a lincoln. Discover the lincoln approach to craftsmanship at the lincoln summer invitation. Right now, get 0 apr on all 2019 lincoln vehicles plus no payments for up to 90 days. Only at your lincoln dealer. All im askin is for a little respect plus no payments for up to 90 days. Excuse me maam, would you like to have my seat . Respect find out what it means to me respect take care. Tcb, oh maria welcome back. Good thursday morning thank for joining us. Im maria bartiromo. Thursday, july 11 we have breaking news another important read on the economy, june Consumer Prices due out in a couple seconds, economists expecting it to be unchanged monthovermonth but off 1. 6 yearoveryear Consumer Price index measuring prices at Cash Register are we seeing consumers pay more for goods, when they are at the register . Monthovermonth up one 10th of a percent higher than we are expecting Lauren Simonetti with more on cpi right now lauren. We are getting numbers for cpi maria Market Reaction not liking this a bit hotter for monthovermonth number for the month of june a rise 1 10 of one percent market expecting flat reading. Yearoveryear in line, ares 1. 6 . Just looking through the numbers a little bit more right now maria, give me one quick second. Um if i can could i cant get breakdown at this moment but i will check back. Maria lauren yearoveryear 1. 6 is pretty much in line with expectations, and obviously, we want to look at this number, because the Federal Reserve continues to say that the inflationary story is below 2 target we are seeing that again, 1. 6 yearoveryear. Let me get to core number maria if i can, this is xfoobd energy more volatile expecting. 2 this came in. 3 , so a little bit more inflation in this june cpi read, yearoveryear core read also a tad bit higher 2. 1 versus 2 expectation so that is more information from this report. Maria all right. We are not seeing a major move but certainly markets have cooled off, from the highs of the morning. Right before this dow was up 111, seconded before now up 69, s p was up 7 moments before this report seconded before now up 2 points, so we do have we are looking at higher opening but, nonetheless, we have come off highs much to at all does this change the way fed has to do a cut. We are seeing markets off highs thank you. We will keep reading see what they tell us joining us former undersecretary of state for Economic Growth energy environment. When you look at cpi number like this you say what . What what does it tell you . First of all, i dont pay a lot of paengs to monthtomonth numbers, second if there is anything, moving it up a little bit, it is weve had a decline in Health Care Costs for a while maybe they are beginning to trickleup a little bit housing may be going up a tiny bit, but in general, we are very competitive global environment, we dont have to worry much about a deflation slight increase in inflation is not really troublesome do i think if we get into a trade war prices go up because of higher tariffs, that will be inflationary but also in a way, going to slow growth, because it is an effective tax, so that maybe looked at one way as inflation another way as actually growth slowing. Maria good point. Wondering about case for rate cut fed chairman jay powell talking about uncertainty you are hearing same message from europe if President Trump treats tomorrow xi of china he is great guy beautiful country is going to lower tariffs does that mean they raise rates. Im very ufsncomfortable with point links in rhetoric perhaps so much Decision Making certainly what he said to uncertainty over a trade war because as you correctly point out, a lot of what is going on in trade, is short term some negotiating tactics we dont know what is going to happen three or four months from now. There is uncertainty but if there is a deal with china all eliminated does that cause fed to change its mind if it gets worse does that cause the fed to get even more concerned, and lower rates further . But to trigger trade policy you have trade policy in effect trigger fed policy to me is not a comfortable thing because it is so volatile so unpredictable can change weektoweek monthtomonth day to day hour to hour fed should not focus on short term things the longterm trade war that is different matter but a lot of this is tactical. On trade front worries about autos. Yes, i think a terrible thing if we start first of all, National Security argument for ric restricting tariffs on autos doesnt myakka much sense a major impact on a lot of consumers third what we should be doing is getting allies among Major Trading pairnz japanese europeans working with them to deal with global trade issues if we take tough action against. Going to getting caught up in dispute with france over them putting took taxes on. I think will be dispute retaliatory measures by United States i hope we dont use a sledgehammer in auto tariffs would certainly be a sledgehammer very disruptive not just to american consumer, but to the Global Trading system, and at a tame when you need allies if you are going to try to get our rules of the global order, intipd the rest of the world you dont want to make enemies among countries that have the closest sets of views on the markets. What do you think of revenue this country is taken in president will always push back when you creative tariffs say i am taking in a hundred billion dollars taking in a hundred billion dollars in revenue as a result of tariffs on china . Oh, i think this argument has gotten so confusing, americans pay the tariffs. Now the chinese may in some cases lower the price of certain goods, to be able to clear the American Market but the tariff is a tax. Who. Pays the tax in americans pay the tax, second, the amount of money paid by almost all accounts has been something in the order of 20, 20 plus billion dollars not a hundred billion dollars i think you have to look at it. Final the final 325 billion if he were to do so far it is around 20 billion. If he were to do that americans would still pay tariff the problem is then, you would have a slowing of growth prices would go up growth would probably slow because it is a tax. Other countries works there is some argument here, that we wouldnt pay the whole burden we would pay taxes but prices that other countries charge us to exporters every china for instance charge us would probably go down, in order to clear the market, at a lower price but the tariff payments by americans the final price may not be as high as tariffs, because chinese may in effect cut sales tax. Let me position it like this. U. S. Corporations ship jobs overseas used to be goodpaying jobs in the United States essentially shipped them overseas for what was a boost to their profits, politicians sat back went that is fine with us until President Trump gets elected weve what is acceptable with tariffs on chinese imports, a not a border tax but it is a valueadded tax, on goods coming into this country. But at the same time they cut Corporate Taxes, so there is that offset so actually almost if you look at it from 35,000 feet, a change in the way that we we tax we incentivize savings, is we basically tax spending if you will, discourage spending in u. S. , and we have the offset of the he Corporate Tax cut in the United States it is kind of brilliant if you look at from it economic perspective. Corporate tax cut, irtotally agree, that is a very positive thing. What i think is part of the equation here particularly if longer term trade war is that the notion of supply chains is going to be changed there are companies that are moving their source of supply out of china into vietnam into mexico, and some of it back into United States. So were getting some benefit there, but i would i would nt necessarily he equate the hard to figure out overly impact on american the journal this morning about that. Dagen vietnam lovers donald trump. They do. You want use light switch tactics to change your supply chain overnight the supply chains have been developed in china over decades, literally, chinese have great infrastructure vietnam does not chinese have a lot more trained workers, vietnam does not. They have a lot of stem workers in china one reason u. S. Wants to invest there, and do research there, is that there are a lot are talented ch go there all the time see them not so easy to change in an instant dagen the journal cites this chinese goods exports to u. S. Fell more than 12 yearoveryear from january through jay vietnam saw more than 36 increase. Mostly in labor intensify products. Us about it is leverage on china. Who knows if they will want to stop stealing intellectual property make a deal, but it does suggest if we want to look somewhere other than fed for growth, that if this china negotiation is going to continue, the ought teeing lowering barriers in trade with other countries right. Yes, for two reasons, one in effect lower barriers lower taxes in effect. And second, it will boost growth in these countries and there our Major Trading partners will apply more from us. The uncertainty the president said over and over again, the europeans treat us worse than china does, that india treats us badly that actually even said in interview a week and a half ago with when he joined this Program Vietnam is another one, so youve got all questions, about who is next. Largest economy in the world what is the trade. I mean you have to pick your spots when you go into these kinds of things. You cant against everyone, and seems to me you want to work with japanese you want to be working with europeans you want october working with canadians mexicans. Politically definitely geopolitical. Do you think she brings to it the floor for a vote. Probably not in august but do i think they are working very hard in fact on a bipartisan basis. Which is one of the few things that is happening in washington bipartisan basis and dealing with issues like, labor, and o enforcement environ issues i do think that she will bring it to a vote, perhaps they dont want to only have nine days in august but after august recess would guess they would both sides would benefit, i just like to add one more point, on the china thing we are paying a lot of attention, and understandably so to all the issues, with china. Because we see china as a major competitor now and particularly in technology and in the future. And technology has both economic and National Security implications what we are missing perhaps distracted from it we need to do more to strengthen our competitiveness at home if you want to compete with rising china you continue to cut money from National Science foundation the National Labs you need to take advantage of talented foreigner workers a excessive Infrastructure Environment you need to support Stem Education we ought to be dock a, competing with china trying to get rules agreed on base of much more market youngers forts Global Trading rules bilateral trading rules cant be diverted from if fact we need to a lot more at home as during space race the strengthen hour capabilities. Flat tax wouldnt that help . Flat tax there is one inventory what do we need to do to strengthen our competitive capabilities as we did during space race. All good points, bob great to havities come back more often thanks for joining us coming up markets record run futures higher this morning off major detections intraday highs yesterday Stuart Varney weighs in ahead of the opening bell, cashing in on cannabis live to one of the Worlds Largest Marijuana Companies for closer look at driving what is happening here, but first, check out the ep tennis channel. Welcome back to a court report for fox business, the mens semifinals set at wimbledon giving us the matchup we all have been dreej federoff, nadal, roger feder defeated in quarter fiemz made history in the process the first man to win 100 marches at single major and broke Jimmy Conners record in the open era will face nadal won his quarterfinal, that will set up first match wen feder and in a a. M. Wimbledon since epic 2008 final what many people call the greatest tennis match of all time, in the other semifinal Novak Djokovic against batista, djokovic won wednesday under two hours you can catch 1 pm eastern thursday on tennis channel i am jonathan novak. Truecar is great for finding new cars. Youre smart, 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. Cylinders some signaling goldielike, goldilocks not too hat not too cold. My expression i know used in 1990sed golocks economy i think a goldilocks market, i will defend that position. You got good news on Interest Rates i think market factoring in three rate cuts moderatelied good news china trade economy pretty strong with no sign of inflation. So that is why i would call it a goldilocks market. Because we hit a series of highs lefthand side of the screen going up all three indicators up again first thing this morning. Dow is getting close to 27,000, i call it a goldilocks market how about you you know market looks at what is next ahead now expecting a slowdown toward end of the year, yesterday powell said there are crosscurrents that have developed has to do with certainty over trade. He will drop Interest Rates, to take account of threats on the horizon. I mean going to take care of the market isnt he, he is guaranteeing this market donate crash. The question we have been asking this morning is can a rate cut fix all ailes. There you go. I dont think so. I know you have a lot more we will see you then Varney Company top of the hour 9 00 a. M. Eastern after mornings mornings join stuart after the program, but first, we are cashing in on cannabis next taking you live to one of the Worlds Largest Marijuana Companies closer look at drug prospect for growth there back in a minute. And when you smile smile, the whole world, you are amazing, yes this is the couple who wanted to get away who used expedia to book the Vacation Rental which led to the discovery that sometimes a little down time can lift you right up. Expedia. Everything you need to go. 4 out of 5 people who have a stroke, their first symptom. Is a stroke. 80 percent of all strokes and Heart Disease . Preventable. And 149 dollars is all it takes to get screened and help take control of your health. Were life line screening. And if youre over 50. Call this number, to schedule an appointment. For five painless screenings that go beyond regular checkups. We use Ultrasound Technology to literally look inside your arteries. 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I am inside one of 47, growers, surrounded by marketplace if i bring in contaminant would be in a lot of trouble i am all suited up canada leglived recollect reiterational marijuana nine months ago business booming growing marijuana if you smoke there is also cannabinoid the Health Benefits supplement is a big business, five billion dollars this year alone there are questions as to whether cbd is safe you can get in it drinks in all types of foods but we spoke to a doctor said you know what he has his doubts right now take a listen. Think about all these sources of cbd coming into your body is that safe . I as a doctor dont have an answer but i err on side of caution say that is not ideal we need some sort of regulation here. Fditcha also says it has not okay the ingestion we spoke to ceo he welcomes regulation take a listen to him. There are people selling tons every cbd products all over america all over the world right now, so they have a real incentive to put a system in place to make sure that what you are buying is properly labeled has been tested proud to certasercertain produced to standard. A huge bet the largest Legal Marijuana grower believe United States is in outlook, already have seven big facilities one upstate new york growing hemp, as you can see this is what they believe will be the face of the United States to come, the question is can the federal authorities in washington agree with some was states like california and colorado and legalize marijuana and cbd for that matter across across the board we will wait and see we are here all day showing major sites across the street there is a billion dollars worth marijuana piled up irony like next door to Police Station who would have thunk it . S Companies Public investors believing. One of the best ipos we saw allier absolutely in fact, there has been a change at canopy the original ceo on fox business a number of times kind of left suddenly, mark we spoke to new ceo i asked what is going on he said bruce was founder kind of he is moving on to next job, canopy continues to grow, on New York Stock Exchange can betrayed under weed, this is the future cbd in particular. Good symbol Ashley Webster in canada final thoughts from allstar panel. Well be right back. Morning light, forget about you can leave it all behind driverless cars. All ground personnel. Or trips to mars. 4. 95. 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. Maria welcome back. Final thoughts from this allstar panel. Steve forbes . Watch out on the trade front. Watch fourth the fed. Maria for sure. I wish the president would realize every other country is not china. Hes made a good case that chinas mistreatment of American Business needs to be addressed. He ought to be seeking trade peace with everybody else. Again, dont be fixated on the trade deficit because u. S. Prosperity, this irrelevant economic measure in u. S. Prosperity means we will probably still have a trade deficit as we do. Trade war, still got a trade deficit. Maria we are on the doorstep of Second Quarter earnings. That will be the driver for the market. The big banks, next week. Great show this morning. Thank you so much. Have a great day, everybody. Varney Company Begins now. Stuart thanks, maria. Good morning, everyone. Oh, to be an investor. Oh, to have money in the market. Its all come together. Interest rates, trade, profits, the evergrowing trump economy and stocks are way, way up there at record levels. New highs for the dow, the s p, the nasdaq and the value of all stocks has now gone up almost 10 trillion since donald trump was elected president. 9. 9 trillion, to be precise. All right. Now look at this. More gains to come at the opening bell this thursday morning. The dows going to be up the best part of 90, 100 points. A smaller gain for