Transcripts For FBC Cavuto Coast To Coast 20240714

Ed isly the president picked up what facebook is looking at. He has a proposal of his own coming up as well. First to the story that broke earlier today in washington, the embattled labor secretary alex acosta from stepping down from his position in President Trumps cabinet. Blake burman live at the white house with the latest on that. Reporter connell, the timeline fairly quick when you look how it unfolded last week. On saturday the feds took Jeffrey Epstein into authority. The Southern District of new york laid out its case, the newest charges they presented against epstein. That forced labor secretary alex acosta to go before cameras here in washington, d. C. , on wednesday to defend the 2018 nonprosecution agreement deal that he strong with epstein and epsteins attorneys back in florida more than a decade ago. Fast forward to this morning, friday morning, acosta submitted his letter of resignation to the president. The president was complimentary of acosta who said he is stepping aside because the focus shouldnt be on this case, all distractions around it, and it should be elsewhere. The two appeared side by side on the south lawn before the president departed the white house. I know one thing. He did a great job. And until this came up there was never an ounce of problem with this very good man. It would be selfish for me to stay in this position and continue talking about a case that is 12 years old, rather than about amazing economy. Reporter democrats here in washington have been calling on acosta to resign or be fired, saying he oversaw a sweetheart deal for epstein, he could not be trusted to be a member of the president s cabinet. Among reaction, senator Kirsten Gillibrand tweeted quote, good riddance. Senator Elizabeth Warren, one word shorter, quote, good. Here is Elijah Cummings on the House Oversight committee. The way he treated the young ladies is extremely unfortunate. I am hopeful that the president will appoint someone who will be very sensitive to women in the work place. Reporter pat pizzella the Current Deputy secretary at the labor department. President trump says he will serve as the top boss over at labor on an interim basis. The president now has to select a new nominee to go forward to lead the labor department. Connell . Connell blake burman on the breaking news in the white house. The record news from the stock market whether anything can upend this rally. Former jpmorgan economist, anthony chen, united advisors cio john trainer. Stocks want to keep going up. Do you worry, anthony that the reason, were relying on the Federal Reserve too much, the economy is weakening but we have a rally in the market . How should we interpret isnt. The economy is weakening slightly the reason why the Federal Reserve wants an insurance rate cut. Right now everything seems to be okay. What are things lingering in the clouds . Obviously flaring up trade tensions with china or certainly with europe. Or if we dont get the usmca agreement signed or passed by the night. These are all things, if they all happened together can certainly threaten the rally. Connell as were speaking the nasdaq hits another alltime high. Every day of the week, john, we have some sort of a superlative we add to the s p three thousand or dow 27,000. To anthonys point the things he points out are there, china largest among them but not going away anytime soon. How do you see it . What we saw wednesday and thursday the rebirth of the powell put. The fed and Interest Rate policy is definitely driving financial markets. We saw that that gave birth to the rally in january. Low Interest Rates are keeping it going. I would agree with anthony. What could pull the rug out from under this is really Interest Rates. There are all other issues surrounding trade. We dont see the chinese issue being solved very, very quickly though. That will fester. There are big issues theyre addressing. We do think that the trade issue will stay on the horizon for quite some time. Connell even with the tariffs, if there is a truce in place while theyre talking . The big deal were told go from 10 to 25 on the tariffs, tough to pass them along, you start to see it seep into the economy, right . Correct. If you see a truce. That would be great the market would take that very postively. Trade will stay in the headlines. Were advising clients, dont anticipate it will be one and done that will be forgotten. This will stay out there. Connell to the point about advising clients, i dont know if you noticed this yourself, a decent amount of people with a decent amount of cash in their portfolios. Are they kind of scared, watching People Like Us talk about this rally and all the threats out there too it, but they keep seeing the market go up. Maybe those people get involved now, kind of latestages as well. I dont know how those will affect things. If they do, puts pressure on the markets. To the extent these risks do not flair up, they sort of linger out there, the chinese are saying they dont want to reengage in negotiations unless tariffs are taken off. Connell that is nonstarter. That is a nonstarter for the United States. Those are things restricting things. Connell the acosta news, anything blake reported on, anything stands out there . To be fair as important as jobs are, the economy and secretary of labor, that is not necessarily the most important cabinet position though, the secretary of labor, at least traditionally hasnt been seen as such. Is there any significance leaving distraction there . His point, now we can talk about the strong economy. Any take on that, john . We see labor, as you said, we have a very strong labor market. We see that continuing. What surprises us we havent seen the wage growth. Connell yeah. I think well get through acosta. The a shame way things happen. We think well get through the news. The key thing with the Employment Situation though is really wage rates. If they start moving up, you know, north of 3 1 2 , close to 4 that will force the feds hand. Connell all the balance. Forcing the fed to act. Youre talking about inflation which we dont see things now. Thoughts on inflation . There are many other factors holding down wages. They are structural in nature. Obviously the decline in unionization. The fact that companies are getting bigger, they have much more power over their workers. The fact that there is not a lot of Pricing Power out there, all these factors holding down wages. In addition to that obviously a lot of innovation and disruption were seeing with technology. All those things are telling me wage pressures are still under control. Connell one of the cases where we are in new normal in many ways. We appreciate it. We have to move on to the weather because in the new orleans area they have those mandatory evacuations underway looking across louisiana right now with Tropical Storm barry possibly reaching hurricane status as early as tonight. Adam klotz, fox news meteorologist joins us with the latest on the storm. How are we looking, adam . We keep getting updates on the system. It is back and forth whether it will be a hurricane or very strong storm. That will not be the legacy. The legacy of possibility of all the water they will bring to louisiana. That is what we Pay Attention to. A lot of warnings, Tropical Storm warnings. The hurricane warning is moving closer and closer to the coast as it move that way. Storm surge will be part of the story. Higher levels, three to six feet well put a lot of areas especially right along the coast underwater. The rain will be another big issue. This is the satellite and radar, were seeing outer bands bring rain to new orleans and the coast. Youre seeing rain as far as back into the Florida Panhandle but it is moving closer and closer to the louisiana coast. No surprise here. Kind of a large area were talking about flood watches and warnings. The water is already high along the Mississippi River. Were talking about a whole lot more water lifting up that direction. These flood watches and warnings are in place throughout the entire event as rain moves this direction. We have several models. There is indecision where exactly it makes landfall, it will make a huge difference. You see a narrow path. If youreyoure into the height of this, rain comes down, as much as 22, 25 inches of rain. It is kind of a slowmover. I want to show you one more model before i throw it back to you. The heaviest rain is farther off toward the west. This will be the really big story, all this rain coming down again. It likely making landfall Early Saturday Morning but the rain already begun. It will only intensify throughout the rest of this friday. Connell well keep track of this. There is oil component well cover but the human component with the big flooding, adam, we appreciate it. As we move on, we saw the testimony from alexandria ocasiocortez, the congresswoman from new york earlier, got emotional at times. She and others testifying on the migrant facility conditions at the border. One lawmaker coming tooters in that hearing. The Border Patrol has a response. Well tell that for you coming up next. Headlines and records set in the market, after the bell, 4 00 p. M. Eastern time, dow 27,000, s p 3,000, last few minutes, alltime record for the nasdaq. Well be right back. Is where people first gathered to form the stock exchangeee, which brought people together to invest in all the things that move us forward. Every day, invesco combines ideas with technology, data with inspiration, investors with solutions. Because the possibilities of life and investing are greater when we come together. 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. Connell congresswoman alexandria ocasiocortez and other democratic lawmakers being asked the questions, theyre witnesses. You see aoc as she is known being sworn in. She was under oath for the hearing on the crisis at the border and conditions those migrant facilities. Hill very rain has been covering. Hillary vaughn joins us from capitol hill. Things are emotional. Reporter you dont see several law makers from boeing sides of the aisle break down detailing what they are calling a crisis on the border but for different reasons. We heard from tearful testimony from Democratic House lawmakers detailing their own visit to the border detention facilities in el paso and clint, texas. Congresswoman alexandria ocasiocortez told the committee she still thinks the border crisis is manufactured because the cruelty she says is manufactured by the Trump Administration. What was worse about this, mr. Chairman, was the fact that there were american flags hanging all over these facilities. That children being separated from their parents in front of an american flag. That women were being called these names under an american flag. We cannot allow for this. Reporter congresswoman Rashida Tlaib used lawmakers to not use the word illegal when describing Illegal Immigrants because she says it is derogatory and dehumanizing. She broke down in tears describing what she saw at the border detention facility. Mr. Chairman, it needs to be noted and into the record, i spoke to cpb agents, even though they told us not to speak to them too, remember that . Said, what do you think we need to do, because you guys are overwhelmed . They said, one of them, stop sending money. It is not working. Reporter passionate testimony from border state lawmakers desperate to fix what they are saying is a growing crisis. They said that they have asked democrats repeatedly over the past yearandahalf to approve more funding for the border so they can fix these conditions and help lift some burden off cpb officers that are trying their best to handle the situation that is escalating out of control. You dont have enough supplies. You dont have enough facilities it is a crisis. It is real and we do not get anywhere by blaming the people who are doing their best to help these people. We need to look in the mirror. We need to make the changes. Reporter Elijah Cummings coming under fire not holding the hearing until midsummer, right before the summer recess, saying when democrats took the majority they could have addressed this issue in january. Instead the first hearing they held was with michael cohen. Connell. Connell well stay on the story. First, let me alert you to the situation on the ground in the milwaukee area. President trump just landed there. He will make a speech in a couple of hours in milwaukee talking about the economy. We expect him to talk a lot about the usmca deal, the trade deal between canada and mexico. Maybe we can listen a little bit, see if we get a little bit of audio from the president talking to supporters, get back to the border story. He is posing for pictures. God bless you, mr. President. We love you, mr. President. Connell president just on the ground in milwaukee. We will cover this in more detail, guessing closer to the time he makes the speech. The president made plenty of remarks on news of the day, on south lawn. I said we would stay on the border story. We have reaction to hillarys report from national Border Patrol Council Vice President hex tore garza. Im sure you heard hector, with testimony of alexandria ocasiocortez and congressman talib. Your reaction . Fortunately we know that we have a border crisis happening right now in the United States and were glad that at least this is talked about in congress. At least theyre holding hearings, theyre acknowledging we have a problem on the border. The problem is it is nothing more than political grandstanding. We need to make sure congressman something to happen. Aoc talking about the conditions on the border. Weve been talking about that for the past six, seven, eight months. She still refuses to vote for the supplement. Unfortunately it is, well only find solutions until members of Congress Work together, Work Together with President Trump. She is only one that tried to fix this problem. Connell let me ask about a couple terms here today, get your side of it to respond. Aoc said its a manufactured crisis. Congresswoman tlaib says if you refer to an illegal immigrant as illegal, that term, in of itself illegal is derogatory, dehumanizing. Your reaction to that kind of talk . The term illegal alien is found in u. S. Law. That is something that agents weve been trained. That is how we learned the term because it is found in u. S. Law. If she doesnt like the term change the law. Again it is political grandstanding. Lets get to the root of the problem, fix the issues. People are suffering on border. Border patrol agents are overwhelmed. Facilities are overcapacity. Nothing is happening in congress except grandstanding. Connell you obviously dont feel its a manufactured crisis. No point in following up. I know how you would feel about that. You just expressed those feelings, the question becomes what do you do about it . You said Congress Needs to do something. What does that mean . What would that look like right now . What kind of action would you like to see that would actually fix this . Problem on the border were encouraging illegal immigration. The testimony, some of the statements by some of these democrats continue to encourage people coming to country illegally. For them to continue to abuse our asylum laws. We know a lot of people dont have legitimate asylum cases. We want to be sure those with legitimate claims we help them out, give them help that we need. Those abusing the system need to be identified and need to be removed because they are violating the law. They are not showing up to court proceedings. Connell do you think the raids planned supposedly over the weekend, that is a good idea . Its a great idea. We have to enforce the rule of law. These people have been found to have been ordered removed by an immigration judge. They have already had their due process. They have already had their day in court. Guess what, we are enforcing laws, and not going to enforce the laws. If we dont enforce the laws, the situation on the border will get worse. That is what is encouraging illegal immigration. Then we get these public figures telling some people ordered to remove how to avoid law enforcement, how to hide and stuff like that. That is unbelievable. We need to enforce the rule of law. Connell hector thanks. Thanks for your point of view today, we appreciate you coming on with us. Thank you, connell. Connell hector garza, a lot going on all at once. President landed in milwaukee. Well stay on the border story. The Vice President is at the border today, even with the testimony happening in the congress. Meantime you have facebook, facebook is out pushing its new libra, the cryptocurrency digital currency. That as a lot of people suddenly noticing digital currencies. One of those people . The president. He tweeted about it earlier today. What that might mean for regulation, for companies in the space, including facebook. Thats next. 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. Connell the dow is at 27,000. They will look at comments coming in from charles evans, Federal Reserve bank of chicago, just out with new comments suggesting two rate cuts could be possible before we end this year, before the end of the year of 2019 suggesting low inflation requires lower rates. Slower foreign growth, some trade tensions, trade disputes that weve seen are adding to the need for more rate cuts. The possibility of two rate cuts before the end of the year from evans. His comment would carry a little bit more rate than the average fomc official. He is a Voting Member of the federal open market committee. Those comments are in. We pass them along. The dow is above 140. Well above 20,000. A recordsetting pace with all three major indices with the s p over 3,000. Nasdaq hitting an alltime high. In the middle of all this the president weighed in on something, there were a few topics we hadnt heard him comment on in the past but this was one of them, cryptocurrencies. Apparently President Trump is not a fan, a quote from his twitter talking about facebook and its new libra currency. Deirdre bolton is here to talk about this and what it might mean for regulation, right . It will take a while for facebook to get this launched. Jay powell testifying this thisk in d. C. , more or less, i will heavily paraphrase. We know youre looking for a 12 month launch, facebook, but it will take a lot longer than that the president s tweets up on the screen, if you want a currency, you will be a bank, you will be regulated like a bank. He talked about risks we talk about a lot, whether bitcoin, leeb barks unlawful libra unlawful behavior. He talked about libra lacking dependability. He gave a shoutout to the u. S. Dollar saying if you really want a good currency, this is the dominant one. It is reliable. Connell he is making the point, not like everyone ignored digital currencies, we talk about them a fair amount, to your point if facebook gets involved suddenly you caught the attention of the president. You think that, i dont know if it fast tracks regulation in this regard but certainly a lot of people would be talking about it and thinking about it i would think . Facebook has had pr disaster after pr disaster the past few years. I think with this theyre doing it up correctly. A subsidiary will be based in switzerland. There will be 100 partners, visa mastercard. Ceo, Sheryl Sandberg says well working with regulators every step of the way. What is interesting from the tech perspective, tech entrepreneurs they will launch any kind of business except for this one because Financial Services is so heavily regulated f anything, this underlines that point. Connell their assumption is at some point this will be, to the president s point treated in a similar fashion to a bank . Exactly. There is no government that, having a currency that you back by assets, your own reputation, that is not something that any government takes lightly. It is obviously most heavy control. And it is not something that necessarily a lot of governments or even businesses or investors want in the hands of the people. What i will say about Facebooks Libra, i feel like this is a good way for facebook to change the conversation. So if i owned facebook stock, good on them. This gets everybody off the concerns about privacy and data. Of course the next question, if i cant trust them with my data, will i trust them with my money . Connell glass halffull version from facebooks point of view, maybe fresh in my head, being back from china, the way everything works there, you talk about it a lot, get inside one app, we chat. You do everything. Connell everything and social media and more importantly you pay for whatever youre buying. I guess where facebook things were going too but china is already there. Facebook with libra is trying to do things differently, it is not peer to peer as bitcoin. It would be backed by government securities. You have to have an actual bank account in your home country. So it is less random, it is less in the ether than bitcoin or other competing products with bitcoin. Connell now the president is paying attention. Thank you, deirdre bolton. In the meantime back to new orleans. Theyre racing down there to get set for Tropical Storm barry that may well turn into a hurricane. The big storm may not necessarily be the winds, it will be the rain in anyear that has already been hit so hard. The water levels are normally higher than they would be this time of year. It wont take much for this to be a big issue over the weekend. Well go there after the break. How do you gauge the greatness of an suv . 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Connell this is always the case anytime we talk about a storm, you will hear as this one from Casey Stegall in a moment is scary because the water levels are already so high. Maybe this could do a little more damage than a storm of this strength ordinarily might do. What about the from the Oil Industry Perspective . There are two sides. One is the offshore. The crews have been evacuated. Most companies have meteorologist on staff who keeps them well advised what happens from the weather front. Getting people safely off the platforms, securing the platforms, so they can be shut down in a proper way, so they can be restarted in a proper way. Everything is done in an order derly fashion. People are gone. Everything is taken care of. What we dont know where the onshore facilities are. That can affect flooding and pipelines. This is refinery rich area, the Southern Coast of new orleans or of louisiana. So there are issues that have been taken care of in the past. For example, most refineries have elevated their electric calls above the flood level so they dont see the electricals go out because they were at flood level. Many things are modified over the years. There could be a lot of water. Connell a lot of water. Especially since the levels are so high. To the industry perspective, you talked about evacuations. Weve been through this before. You see prices go up a little bit, everybody goes back to work. They know how to run that drill. If there is more damage onshore than the industry has to pick up the cost from there. The big issue is if the power goes out. When the power goes out, those refineries which dont have their own power, most of them dont have their own power, they have to rely upon getting the grid back up. That shuts down oil, gasoline, diesel moving through pipelines. That is leads to shortages. The pipelines come right up the east coast to baltimore and new york. Connell sure. I want to get one more point in. Were 60 on crude oil before i go down to casey in. We talk about oil and iran a lot. As you were coming to sit down you were making a point off the air about the permian basin. It could be an important point. What is it . If you make money in the permian basin, you need north of 65. Connell really . Not only are you paying the expenses of drilling and producing but you have to set money aside for future capital expenditure. Decline rate of wells in the oil shale is so rapid that you have to keep drilling to replace the decline youre experiencing in the older wells. Connell that is an interesting story. I pointed out that last year. I was having conversations with peel, with the type of drilling youre doing you need oil price to to be up. Years ago, it used to be 50 bucks. Guys were saying no, we could do it at 35. Youre saying it higher. They can pay bills at 35 but that will not pay for the next well. Connell always good to see you in person. We always have you on satellite. Want to get to casey with President Trump declaring an emergency in the state of louisiana. Casey is on the ground for us in the new orleans area with the latest. Casey . Reporter connell, were already feeling the outer bands of barry. Well get some really brief moments of heavy rain and heavy winds. Then it dies down. Were in one of those lulls at the moment. You know in order for something to be classified as a category 1 hurricane, you have got to have sustained winds of at least 74 Miles Per Hour. That is the threshold. Right now it is still a Tropical Storm and forecasters are unclear as to whether it would hit as a category one storm, to see along the central louisiana coast. If it does, it would be the first time in history that a hurricane has hit when the Mississippi River levels have been this high and rising. Look at this. You can see how high the water is. It is not terribly far from the top of that levee. Then on the other side of the levee. You see houses right there. This is the lower nineth ward. A lot of people know this area well. It wept underwater in with katrina. It is normally at eight feet this time of year. Right now it is at 16, 17 feet. A storm surge of any kind could be bad, bad news. Look at this video from plaqueminess parish. Lower lying orders, evacuation orders are put in place. Residents dont listen a to the evacuation orders and they opt to ride the storm out instead. Listen. People just dont want to leave their houses. Before katrina we had a bunch of people that stayed, we had smaller storms and all, they just got comfortable oh, it is not that bad, it will not be that bad. Then that came. It caught a lot of people off guard. So we are hoping that more people take heed and, and go but, it would be in a smaller storm reporter now, we have talked to some people who are listening to the emergency officials. A guy yesterday told us he was taking his four kids and he was going as far north as he could because the time is running out. The window is closing, to make the preparations. Sandbagging, going on, boarding up of windows, getting purchasing of supplies and medication. It is on its way. The question is. How much rain and how much flooding is it going to cause . Hopefully we dodge a bit of a bullet. Well be here to keep you posted. Connell be safe, Casey Stegall in new orleans. We get back to the market. The dow is well above 27,000. We talked about that. Could china doing business with iran unravel a trade deal prospect . What will that mean for stocks . After this. Fact is, every Insurance Company hopes you drive safely. But allstate actually helps you drive safely. With drivewise. It lets you know when you go too fast. And brake too hard. With feedback to help you drive safer. Giving you the power to actually lower your cost. Unfortunately, it cant do anything about that. 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I guess all those things might complicate things as if they needed to be even more complicated right . Reporter seems more and more this stuff is intertwined so to speak. U. S. And china trade teams are still in communication. Signs that the chinese economy might be softening a little bit more. Chinese exports to the United States fell 1. 3 in june. 250 billion of china import are under a 25 tariffs. The chinese retaliated raising their tariffs on u. S. Imports into china fell 7. 3 in june yearoveryear. President donald trump says he still has a Good Relationship with president xi. As the u. S. Economy flourishes, the chinese, he says, still wants a trade deal. Right now companies are fleeing china because of the tariffs. Right now were taking in billions of dollars. By the way, our people are not paying for it. Theyre paying for it. Theyre paying for it by depressing their currency and theyre putting a lot of money. Reporter Federal Reserve chairman Jerome Powell testified yesterday he heard Companies Move supply chains from china to mexico. Still the maneuvering continues. Today the chinese announced that china air will buy 20 a350900 jets from airbus, a loss for boeing. This does a couple things for china. It shows u. S. Negotiators that china can move forward without u. S. Technology. The chinese are close to a trade agreement with the European Union, closer than the u. S. Is with the eu this could be a olive branch towards that agreement, possibly locking, causing the European Union to be strict, tougher on the u. S. Trying to get a trade deal with them. All of this stuff might be interconnected, connell. Connell started saying it is quite complicated already, getting more so. Thank you, Edward Lawrence in d. C. We also talked about talk iran the uk sent another tanker to the gulf. Seems like something every day with iran. Where is this going . Iran is extremely desperate to get out from under these sanctions. Their economy is really tanking, kind of an unprecedented rate. We all know about how their currency has been affected massively. So irans biggest fear, the internal domestic populace goes into a state of unrest which they have done at different periods over time. Economy, it is the economy. Connell right. That is what they are worried about. They will try everything they possibly can to get the u. S. To lift sanctions. I just dont think what they are doing will be effective. Connell here domestically, a piece of news breaking over last few minutes. The house of representatives just held a vote which approves an amendment before the house to bar, ban the use of force against iran without congressional approval. What happens as i understand it, it goes into the defense bill, which will be argued in the senate. Well see how all that plays out. It doesnt seem this president really is looking to use, military force in iran. That he would like to avoid it at all costs. What is your take where were going in terms of the possibility of military conflict . I dont see him going in that direction either. There is a lot of people on the staff underneath, youre going to hear complaint, theyre hawks, theyre this, that is fine. Play good cop, bad cop with the likes of john bolton or somebody like that. Connell right. But President Trump hasnt shown he wants to use military force. He is trying to disengage in the region of the amendment that says you cant i havent read through the whole thing, that says you cant use preemptive force for iran. Good for congress. Take your power back. It is not supposed to align in the executive branch. Take your power back. Connell that is a wider story, right . You would know, its a wider, going back to kind of the post9 11 days or even further, since then we talked about that a lot. You have to go to congress to get this kind of approval. Absolutely. Connell maybe some would argue congress did not want to get involved in the past, looking for someone else to blame. I dont know what your take is . Connell, youre absolutely right. Congress played the whole, they tried to walk the middle ground and not commit to either side. They have allowed to have the authorization for use of military force since 2001. Were still operating under it. It is ridiculous of the you went into syria, libya, forays into africa. All this under the guise of a very flexible, congress, the legislative branch should take back the piece whether we go to commit troops to war or not. I think that leads to more success when we do. The American People then are behind it. It is not just an executive decision. Connell good discussion, dave, well continue to watch iran. To your point well watch the economy first, to see how the people there react. Thanks for coming on. We appreciate it. Thanks, connell. Connell amazon was first, now google admits it is listening in to what were saying if you have a device like this one in your home. More in a moment. 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. You need decision tech. 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. Connell you know the dow is above 27,000, comfortably above it, in fact the Dow Jones Industrial average just hit a session high a few minutes ago. It is up 168 right now. Nasdaq, also hitting alltime high earlier on this hour. With s p 3,000 to deal with. A lot of records in your stock market. Meantime google admitting its contractors now can listen in on people who are using a google virtual assistant. The tech analyst russ russ is with us. We do the stories all the time. I kind of laugh, no surprise theyre listening in, but it is contractors outside of google. Should we have known about this . Heres what i say, if you buy an internet connected microphone in your house somebody will probably hear something you say at some point . Connell assume that going in. I think that is a fair bet. They are saying these were specific circumstances in specific instances, for a lot of them someone said wake word. Google turn on the lights. Connell or alexa with amazon, right. There are minutes long recordings have also come through. It will always be a rick. More connected devices in your home the always a possibility that this will come out. Connell we care about this generally speaking in the United States. Sure. Connell i find it interesting as the Technology Eye involves, well talk about 5g in a second, rest of the world depends where you go. Other places dont have as much concern, saying with china it is not really up to them. The government decides. Theyre collecting all the data. How does that affect the race for technology, will we fall behind because of our cone concerns about privacy . I think china is more bullish and more cavalier about pushing this technology because again the privacy concerns are not there. I think it makes sense for us to be who are hesitant and more thoughtful about it. Again privacy is such a huge part of our country and our government. It is in the constitution. We better get it right. Connell it is just interesting, it is not, again not up to them, not a concern. Right. Connell huawei, speaking of china, speaking of 5g, is reportedly launching a 5g capable phone early as this month. I was just there last month. They gave me a tour. Whatever we covered everything to do with huawei. After our interview, they give us a tour of our 5g facilities whatever they show us. That part was impressive. A lot of computer screens, what are they showing you. Connell technology, the speed of it. Examples they have are amazing. But having a phone ready is not as big of a deal as a network ready, what do you make of this . Phones already exist, 5g phones exist but the networks are not there. The United States forget about it, we have barely any 5g coverage. Connell this stories matters maybe in europe or asia . It is only asia. South korea is definitely like connell ahead of the game . Ahead of the game on this front. It is so early, the fact theyre launching phones it is like a test balloon, launching a rocket first like proving out technology that will become the norm. It will eventually happen but it is still away as way. Connell how aways is aways away . Im conservative. It could be 10 years because the technology requires so many, some towers contrary to the towers we have now, you would need in new york city, you would need one every single block to reach the 5g network. Spreading that across the country is outrageous. Connell the company, even apple is rumored to be ready by next year youre saying networks wont these companies will have the phones that can pull this off, it might only work in downtown manahattan or Something Like that. If youre in the middle of montana, good luck. You might be on edge at that point. Connell good seeing you, russ. It is spectacular technology. To your point takes a while to get there like selfdriving cars which would be better connected with 5g. Meantime all three major indices we follow on wall street at record highs. Dow 27,000 is part of that. Is it the top . Is it just beginning after rally . Where are we . We could use the inning analogy. Bottom of your screen. We will be coming right back. 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. Their medicare options. Before theyre on medicare. Come on in. Youre turning 65 soon . Yep. And youre retiring at 67 . Thats the plan well, youve come to the right place. Its also a great time to learn about an aarp Medicare Supplement insurance plan, insured by unitedhealthcare Insurance Company. 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It is making its way towards the gulf coast. We are keeping a very close eye on it. Potentially becoming a hurricane before landfall. Again, you are in an area where the water levels are, as Casey Steagall reported to us last hour, significantly higher than they normally are at this time of year. So you have to keep that in mind as were going in. Our meteorologist joins us with what we can expect. We are talking about major flooding concerns across louisiana and also going to be seeing that extending further do the north as the Mississippi River continues to be pretty high. But lets talk about Tropical Storm barry moving at five Miles Per Hour, convection to the south of the gulf which is good news into the louisiana coastline but there will be more wet conditions to come. Visible satellite reiterating the heaviest convection to the south, we will continue to watch this storm be slowmoving and as it spends more time over the water it will continue to gain strength. Thats why the potential for a cat 1 by saturday morning. It will drag further to the north through arkansas and even bringing rain concerns into the midwest region as we head into next week. Flash flood watches in effect for new orleans, also seeing that into biloxi, mississippi, mobile, alabama and pensacola. We will be looking at major flooding into new orleans and widespread flooding through little rock and memphis, tennessee. We are going to be running up to 24 inches, now, not everyone will be looking at 24 inches of rain but some spots are definitely possible to see that. Winds in new orleans 60 to 80 Miles Per Hour with Tropical Storm barry, rain will range from eight to 16 inches. Baton rouge is likely the see heavier rain, running 10 to 20 inches. Currently under Tropical Storm warning. Any of the counties highlighted in the orange, looking at hurricane warnings. Any of our counties highlighted in that red and once again, this is going to be the locations that you definitely want to evacuate. You are already looking at mandatory evacuations across some of the communities. As we talk about gusts, gusts will be pretty high. In the darker shade of purple, which includes baton rouge and new orleans, 60 to 80 Miles Per Hour and on top of that, we are looking at a storm surge possibly up to three to six inches. With that being said, your real impact, meaning beyond the winds, we are talking about how it can impact the community at a level 2 and that will really be looking at extreme risk to life and property across baton rouge as well as new orleans and even extending close to vicksburg. We will keep you updated. Meantime, you definitely want to prepare as we continue to watch this storm, track its way north ward into louisiana. Connell we hope people are listening to all that. We will stay on top of the storm. Meanwhile, a lot of other stories to talk about today. Last hour we showed you President Trump landing in wisconsin. He will be making remarks on usmca in the next hour. So this hour, we will start with whether or not the economic wind is at the president s back. The apple metro chairman and ceo is on our distinguished panel here this hour along with will rhine and Lauren Simonetti. Thanks for coming in. Kind of on that broad question, we will cover the president s comments on trade, got a lot of other issues as we saw in his comments earlier today going on, can he focus people on the economy and you know, if so, does that help him politically . I think the answer should be yes. I wonder if he can do that. I think youre very smart. Connell couldnt figure that one out. Not only should it be yes but let me use my company as a simple random sample. We have some thousands of employees but change in their pockets, hes a good man. Take change out of their pockets, hes not so good. Connell its not so easy to get people to actually talk about it. It sure is, if you get your tax return back and see it. Its really optical. When we pay somebody, we take taxes out every single week that they get paid. When they see theres more money in there, they think hes a lot better. When theres less money, whomever, obama, whatever. But addressing the wind at the back, to your economy on trade, you know, its strictly a political thing. I remember when nafta was passed. I remember clear as a bell, president clinton passed it i believe firmly because he was a democrat. If a republican brought that to the floor, building all those cars and bringing all that stuff in from canada at preferred rates, never would have gone. The fact that president clinton was economically sophisticated enough connell because it started under a republican president. It started under president george h. W. Bush. He drove it. If you look at it now, 75 of cars have to be there, it used to be 62 . Isnt that better . Connell lets talk about that. Start with that, on the new nafta, usmca. We can broaden it out to where we are on trade overall. First, we dont even know if this thing will get passed. Should it . I think it should. I think its pretty much a done deal. We are talking about number two and three in terms of americas largest trading partners in the world after china. Actually, whats interesting, if you look at them individually, chinas only somewhere in the region of 10 bigger than each of them. As a bloc, that is a very very valuable trading relationship. I think that theres will on both sides to get this done. So i think by the end of the year they will be in place. Connell theres a question whether or not this issue broadly, trade, is going to be one heading into 2020 that is a political weapon for the president. In other words, it helps him, or its a political liability, because not necessarily on what were talking about with usmca but more so china, you have farmers around the country who are definitely feeling the pain, whether or not they blame him for that is a separate question. I dont know. Look where the president is today. Hes trooiying to sell usmca an sell 2020 in his favor in the swing state of wisconsin. Connell which is huge. Yeah. A big win in 2016, largely went democratic during the midterms last year. The president is there. Shes speaking to the manufacturing and ag sectors saying we could potentially have a win on Foreign Policy and the economy with the usmca. Now, as for the china trade deal, a lot of economists, a lot of Business Leaders keep pushing back expectations. We thought a deal would have been sooner, would have been more likely but now as we see all the back and forth, no ones saying thats going to happen any anymotime soon. Connell it would be a shock. I mentioned earlier the president had a lot of other issues to deal with today. The labor secretary, alex acosta, saying he is going to step down, giving this explanation on the white house south lawn, standing next to the president earlier. Lets listen. It would be selfish for me to stay in this position and continue talking about a case thats 12 years old rather than about the amazing economy. Connell all right. Trying to remove a distraction. I dont know how much it matters, but jobs is a big story for this president that as we talked about earlier, is something thats a positive for him. I dont know how much people connect the actual labor secretary with that but now hes moving on. What did you make of it . I dont think they do. The jobs are a function of the economy. Labor secretary may set barriers in terms of minimum wage and rules, regulations, all those things, but you get jobs if the economys flourishing and you dont get them if its declining. Connell he thought he was a distraction, supposedly, or we never know whether youre jumping or pushed to these situations. He says he was its such a reversal from the press conference that acosta gave on wednesday where he showed no remorse, he didnt offer any apologies. He said he was staying where he was until he was asked to leave. And he left today. Very nice letter that he sent in his resignation, very nice comments from President Trump, but it seems that is a theme of the administration when someone goes. The president does praise them. Connell right. You were great. I heard reports that there was some frustration with the antiregulatory legislation coming from his office. That could be a back story. Those are just reports. Connell anyway, hes leaving now. Want to get your take on this next topic, which is the debt threat thats been intensifying. Republicans pushing back against secretary mnuchin, the treasury secretarys plan for the debt ceiling and what happens if its not raised. This is maybe my least favorite story to cover in financial journalism or whatever this is that we do, because i brought it up the other day, why we even in this environment have a debt ceiling is beyond me because we always raise it. We always know it has to go up because the consequences are dire. Sure, we can patch things together for a little while but we go through this dance every so often and then it goes up. What do you think of whats going on here again . Yeah, i think the move to kind of decouple the debt ceiling raise from the spending package is interesting. Thats kind of a new development that we havent seen. Well see how hard the democrats want to fight on that, especially going over to summer recess. Connell they used to be put together even though they dont necessarily have anything to do with each oefrmether. The whole thing, whether they are talking about the debt ceiling and the argument over it, or the actual discussions about spending, comes down to how much money we spend which is by any measure, too much. Correct. Correct. But i view it differently, sorry. Debt ceiling is a function of gdp. Since you told me three minutes before i came on air what the subject was, my great memory says that in 15, the one year i remember, gdp is a percent or rather, debt as a percent of gdp is now less than it was in 15. I cant tell you 16, 17, 18. Five minutes before i came on air. Connell so jay powell tried to make the case yesterday that the point here is we keep paying interest on our debt, we cant do other things which is kind of obvious but it was a succinct way of saying it. Thats the real story. You want to spend on highway, infrastructure, whatever you want to spend on, if we spend time paying down interest, you cant do that. Its inevitable at some point we will have to raise the debt ceiling, and i do agree, it is a function of how strong the economy is, but we constantly kick the can down the road and take it to the brink and if we keep doing that, we find ourselves right in the middle of the 2020 election and honestly, it could be spun as a bad look for both parties. Then youre talking about defaulting on your debt, not being able to pay your bills, the government shutting down. We saw what this looked like, for 35 days at the end of last year. Connell a lot of money, we will talk about that in any other election. When will connell that does bring up a serious question. When is that point, kick the can down the road, what is the breaking point . I dont know there is, as long as, you know, if you continue to make more money, and i wish you do, you can buy a bigger house and get a bigger mortgage and carry more debt. If you lose this job, i strongly suggest you downsize. Connell your point is our country is still a strong country. We have the reserve currency. We can kind of keep this up. We certainly can. Not if we go to libra. Again, what would they have to fight about . Connell guys, thank you. Youre coming back whether you like it or not. We have to take a quick break. We will get to this alexandria ocasiocortez story about the testimony on the border conditions. It got emotional on capitol hill earlier. Not just with congresswoman ocasiocortez, other members of the congress. This ahead of these raids, immigration raids that are supposed to start taking place on sunday. Back in a moment to talk about that. Dont forget to catch after the bell today. We will cover the markets, see how far above 27,000 we stay and whether or not we are able to hold s p 3,000. Recordsetting day on wall street. Back in a moment. Prevagen is the number one pharmacist recommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. On a scale of one to five . One to five . Its more like five million. Theres everything from happy to extremely happy. Theres also angry. Im really angry clive actually, really angry. Thank you. But what if your business could understand what your customers are feeling. And then do something about it. Turn problems into opportunities. Thanks drone. Customers into fanatics change the whole experience. Alright who wants to go again . I do i do i have a really good feeling about this. Youre smart,eat you already knew that. But its also great for finding the perfect used car. Youll see what a fair price is and you can connect with a truecar certified dealer. Now youre even smarter. This is truecar. Connell quick alert on United Airlines before we bring the panel back. United extending daily Flight Cancellations until the 3rd of november. Already had cancellations in place because of the boeing 737 max situation, now extended those cancellations until november 3rd. Thats boeing stock, up today along with just about Everything Else in the market, it seems, by 1. 5 . Now, back to the panel. A shakeup in 2020 among the democratic leaders. According to a new poll, Elizabeth Warren, who has been surging in many polls, now up among democrats to second place. There she is right behind joe biden. So you know, i dont know if this is what this actually means other than maybe bad news for Bernie Sanders. Hes going down in the polls as she goes up. Our panel, zane, will and lauren. You want to go first on this . Everybody wrote off liz warren not that long ago. Shes secretly getting popular among wall street. Its amazing. Connell really . Do you believe that . She wants to take your wealth away from you. Connell i read those articles. Thats why i asked you really believe it. Shes thoughtful. She has a plan. Connell for everything. She says shes not a democratic socialist. Remember that . She believes in markets. She just wants to make sure they work for everybody. And shes not a left of Bernie Sanders. Connell thats the argument. The constituency is similar. We will speak to wall street now, representative of wall street, is liz warren becoming more popular on wall street . I definitely couldnt say that. Or maybe not publicly. Exactly. Not from what ive heard. To me this is sort of a market share thing, if you will. Last time, you had Bernie Sanders who was the antiestablishment vote and he was pretty unique. So that was where you went for that particular sort of political leaning. Now theres just more people on that same sort of antiestablishment track. So warren, Bernie Sanders, just taking away some of those votes from each other. Thats really whats going on. Connell i was at the debate in miami. After the debate, everyone tried to write off joe biden but hes still hanging in as the frontrunner. If people had to bet, the most comfortable would be biden versus trump in 2020 but who knows. How do you see the democratic side of this . I see the country thankfully is not ready for a far left anything. So Elizabeth Warren is morphing towards wall street or whatever, towards the right, she becomes more popular, if you will. Bernie sanders is way out there, let him stay, i cant believe he could go further out there along with all the rest of them. Connell speaking of aoc, i want to get into that a little bit. Whats been going on on capitol hill today, the president weighed in on it before he left for wisconsin, this feud so to speak between the speaker of the house, nancy pelosi and the congresswoman from new york, alexandria ocasiocortez. Heres President Trump. Very disrespectful to somebody thats been there a long time. I deal with nancy pelosi a lot and we go back and forth and its fine. But i think that a group of people is being very disrespectful to her, and you know what . I dont think that nancy can let that go on. Connell so i guess mrs. Pelosi has a new defense attorney here. New advocate. Back to your original question, i think that its a good thing that biden continues to hold that lead. I think that i dont like the early on words of the far left because it has a tendency to gain traction. I know a lot of folks in washington say disregard. Dont disregard. Chavez got elect orded on that of thing in venezuela. Connell were not venezuela. Well, it was a populist theory and populists Gain Momentum if you dont deal with it. Connell who wins this internal struggle if you had to guess . Is it the establishment, the joe biden and nancy pelosi of the world, or will they be pushed out by new voices . What do you think . Difficult to say. I think you would probably have to go with the establishment at this stage. But the social media as the president knows very well is incredibly powerful. When you have five million twitter followers, thats a weapon that you can use and you can get an outsized share of influence because of that. Connell its a different story but a similar comparison that the republican establishment would never have thought that someone named donald trump would be president now, pushing out a lot of their big names, paul ryan or pushing back even on Mitch Mcconnell and so many others that just arent even around anymore. In that case, the establishment didnt win. These are different ideas, but i wonder if the same happens to the democrats. What do you think . I think back to 2011 when this was happening in the Republican Party connell the tea party. The tea party. It hurt republicans in 2012. The unfortunate or fortunate, depending on your viewpoint, nancy pelosi versus the squad, these four radicals, is they have a very loud megaphone and the media likes this story, too. I think its a civil war forming in the party. The democrats are supposed to go against donald trump as much as they can go against republicans and now they are battling each other. Its not a good look at all. Its something probably nancy pelosi didnt think after they were able to win back the house that she would have to deal with. Connell we will see how she deals with it. Shes dealt with a lot over the years. Been there a long time. My moneys on her. Shes a remarkable woman at, what, 76, 79 . I read her bio on what she does all day. Shes got more energy than ocasiocortez, i promise you. Connell well see about that. Zane, thank you. We will come back to you guys before the end of the hour. In the meantime, i want to talk a little bit about the levels were at in markets. If we keep on going up, the dow 27,000, certainly part of it, but the tech stocks are doing well. New alltime high today for the nasdaq, s p 3,000 as well. Looks like we might hold that today. Well see at the close. We will talk about what exactly is still continuing to drive all this. Well be right back. Oh, hey jeff, im a car thief. What . im here to steal your car because, well, thats my job. What . What . . What . laughing what . . What . what . [crash] what . haha, it happens. And if youve got cutrate car insurance, paying for this could feel like getting robbed twice. So get allstate. And be better protected from mayhem. Like me. I had no idea why my mouth was constantly dry. It gave me bad breath. It was so embarrassing. Now i take new biotene dry mouth lozenges whenever im on the go, which is all the time. New biotene dry mouth lozenges. Freshen breath anytime, anywhere. And what was worse about this, mr. Chairman, was the fact that there were american flags hanging all over these facilities, that children being separated from their parents in front of an american flag, that women were being called these names under an american flag. We cannot allow for this. Connell quite a scene earlier on capitol hill with a number of lawmakers, including alexandria ocasiocortez, getting emotional as they testified on the detention facilities at the border and the conditions in those facilities. This while the deportation raids from i. C. E. Are now set to begin this weekend. Former u. S. Ambassador to mexico antonio garza, is our next guest. First, your reaction to what was happening today on capitol hill. You had a number of democratic members of the congress, instead of asking the questions, testifying on their experience at these detention facilities. Vice president of the United States at the border today and undoubtedly defending the conditions or trying to in those facilities. Whats your reaction to whats actually going on there . Well, connell, i think that sometimes the best evidence is in plain sight. I think if you take a look at the inspector generals report of the situation in the Border Patrol detention facilities, in many cases it was simply unacceptable. They were the types of conditions that if children were being held anywhere in the u. S. In those kinds of conditions, Child Protective Services would sweep in and take those children away from the parents. Yeah, you can youve got to look at what the facts are. The detention facilities were not built to hold the kind of numbers that they were holding and for the lengths of time that many of these children and families were being held, so i say look at the inspector generals report and it will give you some sense of what government inspectors felt they were seeing and the conditions there. Connell one of the political questions becomes who feels more pressure to deal with that, is it the administration and thereby the president , or is it congressional the democratic members of congress who the president is trying to put pressure saying Congress Needs to act. Which side feels more pressure to deal with those conditions . Well, i think the American Public should be pressuring both sides, the administration for over 18 months has dealt with this largely through enforcement. There has been little if any congressional action on the underlying asylum procedures and reviewing those and perhaps legislation needing to address that. Secondly, i think weve got to look at our policy in central america. The administration has chosen to cut foreign assistance but perhaps theres something more that can be done with congressional support, working alongside mexico to address some of the conditions in those countries. And thirdly, its time really to look at our overall immigration laws, streamline some of it and make it more consistent with the needs of the United States today. Connell this weekend, the agents have i. C. E. Are going to be going around at the president s order, i suppose, to try to round up and detain people who are here illegally, people who came in and were given a hearing in many cases to and did not show up for that hearing or there could be other circumstances as well, but what do you make of this plan . Is it a good idea . Well, first, this was originally announced as a june initiative and later called off at the request of i. C. E. Officials that were concerned about broadcasting these sorts of efforts and the kind of situations that it might put i. C. E. Officers in. I think thats still the case. When you announce this sort of sweep, you put your officers in a little bit more challenging situation. Secondly, the targets, the asylum applicants that did not appear for their hearing, theres some question as to whether or not they were properly noticed. Thirdly, will the sweeps target beyond those with existing deportation orders to the larger undocumented community generally. Tlsh there, you raise question of capacity for detention and separation of families. Theres some real challenges they will face this weekend. Connell well see how that kind of plays out and talk about it on monday. Ambassador, good to see you. Thank you for coming on. Thank you. Connell shares of Johnson Johnson, something we are watching in the market today, they have been going down on a news report the Justice Department is pursuing a criminal investigation into that company. With just about everything up today, j j, down almost 5 . Back in a moment. Is where people first gathered to form the stock exchangeee, which brought people together to invest in all the things that move us forward. 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Lending tree made lenders compete for my business and i ended up with a loan that saved me over 9000 and no more credit card debt. I mean 9000 its a lot of money. Lending tree, may the best loan win. Connell what a day in the market. Been quite a week, as a matter of fact. If you like things happening for the first time, the dow above 27,000 first time ever, s p above the 3,000 level first time ever, and also, the highest levels we have ever, ever seen on the nasdaq. So that sounds like a lot for gerri willis to track. She has a lot to keep track of at the new york stock exchange. Lot of hats to wear this week. Gerri thats right, literally. Fingers crossed, right, that it continues. You were asking what could bring this down. Well, look, even wild horses couldnt drag these markets down. In fact, all three major averages hitting new highs driven by gains in industrial Consumer Discretionary and tech names. Whats behind the move . There are three things. The feds dovish view of Interest Rates, central bank widely expected to cut rates at the end of the month, inflation stabilizing and the yield curve steepening, looking a little less like its predicting inflation and a recession. The s p 500, the index that has lagged among the big three, set to close above 3,000, 3007 right now for the first time ever. The breakout coming five long years after closing above 2,000. Meanwhile, the dow industrials hitting 27,000 and not looking back. We are currently 27,234. Walmart, visa, procter gamble, disney and home depot all hitting alltime highs. Boeing, 3m and home depot accounting for the dow gains today. It wasnt all good news. Johnson johnson down 4. 8 after the department of justice said to be pursuing a criminal probe into whether the company lied about potential cancer risk of its talcum powder. And a change of heart by the fed could hurt stocks but even a stronger than expected showing of inflation at the wholesale level today didnt really derail the rally. So fingers crossed. You know what they say. Stocks dont grow to the sky just like trees. Connell oh, really. Gerri youve heard that, right . Connell climbing a wall of worry. We have all kinds of cliches to throw out. Looking forward to seeing you when we close today. I guess 3,000 on the s p. Looks like we will hold it. Well see. Gerri fingers crossed. Connell thank you, gerri. President trump touring lockheed martins subsidiary, Derco Aerospace in wisconsin today. He will be touting his record of jobs and on the economy. Jeff flock will be there to document it for us. He joins us from milwaukee with the latest. Jeff . Reporter that sure is a good thing for the president to talk about in view of his defeat yesterday in terms of getting that Citizenship Question on the census. The president has landed here in the state of wisconsin. Yeah, hes at a fundraiser now. Got a couple fundraisers here today, then will be, as you report, here at Derco Aerospace. These are the folks that take care of military planes like the c130 transports, the f16 hornets and blackhawk helicopters. As for wisconsin, this is a state the president has now visited, were counsting, six times since hes been elected. An important state, one that he won by a scant 22,000 votes in 2016. Thats less than a percentage point. Unlike the opponent in that 2016 race, democratic president ial candidates have been blitzing the state. In fact, just yesterday here in milwaukee, senators warren and sanders were here, representative orourke and former secretary castro, democratic president ial hopefuls all here in milwaukee for an event. I tell you, despite the competition, the president has a great i guess a great message to bring today not only on the economy but on the usmca. As to the economy, the dow since this president got elected, as perhaps gerri was just referring, up well over 40 . The nasdaq, up well over 50 . When it comes to unemployment, not only is it great nationally but specifically here in wisconsin, which was already in pretty good shape when the president was elected, 3. 8 Unemployment Rate, it is now down another point to 2. 8 . So despite the fact democrats in 2018, connell, swept statewide offices here after the president s win in 2016, the president s going to come here today, talk about passing the usmca, perhaps say some nice things about nancy pelosi, as larry kudlow did to david asman the other day. Surprise, surprise. Connell he was defending her earlier, the president. To the extent that hes going after aoc. Youre right, trying to stay focused is the challenge on the economy. The president himself, he will just say its other people talking about other issues. But thats sort of like the acosta story. Try to get that out of the way, stay focused on the jobs or to your point, backtracking on the census yesterday, the economy is the story. Reporter yeah. People can argue with him perhaps on a number of issues but the economy is very difficult to argue with the president s performance. Connell jeff, thank you. I want to get into this acosta story. The labor secretary will step down a week from today. Whats the big picture here . What do you think actually happens . The idea as i said, talking to jeff, get this distraction out of the way, move on and talk about the economy. I think thats it. Thats the distraction. Its basically gone at this point. The Trump Administration can continue to focus on the big numbers, right. Those numbers include 5. 6 million jobs created during the Trump Administration, wages going up about 7 . Youve got 600,000 jobs created in manufacturing, mining and logging. Then of course, when you hear Great Stories like whats happening to the Unemployment Rate in wisconsin which you just told us about, i think the president s got a great economic story that he doesnt need any distractions for, and i think it also probably suggests he was not completely satisfied with the way alex acosta handled that presser this week. So its just one more reason connell what about real quick, the idea of all these acting secretaries now . Labor, defense, department of homeland security, the story will come back whether this president can attract talent and get that talent that needs to be confirmed through the senate. I dont think hes really that distracted by it. If he was, thats the kind of thing he would be focusing on and hammering about and he doesnt. At this point we just keep getting acting secretaries. I think hes willing to plow along under those circumstances. Theres nothing conventional about this presidency, obviously. Hes happy to go along this way. His feeling is as long as i can get things done. Again, as long as the economy looks this good, i dont think he minds those types of things. Connell i can see that at the labor department. The pentagons a bigger issue, isnt it fair to say . You should have someone in there thats in that job permanently confirmed by the senate . Its a fairly long time without a defense secretary. Thats absolutely right. These are different questions, but even then, i think the president feels like, you know, he just gets a lot of pushback from congress and the pushback he gets, he probably chalks up to sheer partisanship, despite the fact of course, republicans control the senate and control these nominations. But democrats are doing everything they can to kind of slow them down. Even including with qualified candidates. Connell good to see you, as always. Piece of breaking news from washington as well. Moments ago the house of representatives approving the 9 11 First Responders bill. It was an overwhelming vote, 40212. Well be right back. Ian buying a new car. Lets go. Limus right. Liberty mutual can save you money by customizing your car insurance, so you only pay for what you need. Oh. Yeah, ive been a customer for years. Huh. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Youre smart,eat you already knew that. But its also great for finding the perfect used car. Youll see what a fair price is and you can connect with a truecar certified dealer. Now youre even smarter. This is truecar. Connell dow 27,000, but its Johnson Johnson, the breaking story, a few moments ago reported by Bloomberg News that its taking points off the dow rally. Down 5 now on the report that the Justice Department is opening up or pursuing a criminal investigation into whether or not j j lied about the cancer risks associated with its talcum powder. Dr. Marc siegel, fox medical correspondent, is with us now. According to this report, they had a grand jury looking into this and you know, what j j officials knew. Its definitely hurting the stock. I dont know what you can add, what you know about the background of all this. The first question and the main question is full disclosure, what did j j know and what did they do. We were always told medically that talc was taken out of these Feminine Hygiene Products in the 1970s. The question is, a, did talc remain in these products, how long did it remain, did j j know about it, whats the amount of talc in there. Because talc is a known carcinogen. How much was in there, how much exposure did it give women that were using the products . Connell from what i can read, just in the summary that came out, thousands of lawsuits involved the safety of the talc containing baby powder. They say for the alleged role that had in fueling the opioid crisis, according to this report as well. But your point is we know that this is dangerous stuff. Just a matter of how much the company knew it was using. The same thing with baby powder thats used for young babies, exposure over a long period of time could have a carcinogenic risk. Its been studied in mice. Theres an associated finding in humans for increased risk of cancer. Connell fair enough. Again, the stocks down today about 5 , give or take. We will stay on top of that story throughout the day. Meantime, there are new questions over how drug prices can come down, with the president backing down from the proposal he had to eliminate rebates from government drug plans. Dr. Siegel, this was something i think kind of moved the market yesterday and people were reacting to that. Tell us first of all about this whole rebate plan and how significant it is that the president s going in a different direction. First of all, its huge. The reason the president is dropping is backing off of this is because of what you just said. Cbo, congressional budget office, has determined that over ten years, it would actually cost the taxpayer 177 billion. Why . Because of increased premiums to medicare. Why is that happening . Thats interesting, because the middleman traditionally, if the rebates go to the pharmacy benefit managers or to the insurers, you would expect, and i would expect, that the Drug Companies would raise their prices as a result, because if the profits are being sucked out of the middle, the Drug Companies would raise their prices, then the price would then be transferred over to the consumer. In other words, if you are the patient, you go to the pharmacy, you pay a higher copay because the list prices are higher. Thats what the Trump Administration believed. But this is throwing a wrench into it because this determination by cbo is well, wait a minute, maybe list prices are actually going to go up, not go down. However, secretary azar is saying that the congress is going to continue to look into this and possibly pass a law. As a physician, i dont like all these middlemen. I dont like all these people who have no reason to be there other than to make a profit for themselves and obscure the real prices. I like price transparency. I like lower prices for the patient. I like patients out there having choice and knowing what theyre paying for. Connell all right. Dr. Siegel, thank you. Thanks for the insight on breaking news surrounding Johnson Johnson as well. Meantime, should Facebooks Libra be treated like a bank . This after the president came out with something of a proposal of his own on the topic. Thats coming up. Wanna take your xfi to the next level . Now you can with xfi advantage. Giving you enhanced performance and protection. When devices are connected to your homes wifi, theyre protected. Helping keep outsiders from getting inside. And if someone tries, well let you know. So you can stream, surf and game all you want, with confidence you can get coverage where you need it most. Thats xfi advantage. Make your xfi even better. Upgrade today. Call, click or visit a store. Connell all right. The uk is pushing forward with a new tax on tech. If that sounds familiar, its because we have talked about the u. S. Anger over a similar tax from the french. Back with Lauren Simonetti on this and other topics. Yep. Connell yeah, im still here. The french were doing this, or are doing it. Now i guess the uk is doing it. They love taxes over there. Lauren i can kind of see how the french are doing it because of all the concessions they are having to make as they deal with their budget shortfalls at home, the yellow vest protests, big headache for paris. A 3 tax on Digital Sales of our Big Tech Companies in that country, but now the uk, too. Where does this end . Connell it ends or maybe it goes next to the president s response. You know, the u. S. Is i guess conducting some sort of investigation into the french and well see what happens with the uk, but this president s normal response to Something Like this is at least the threat, if not the imposition of tariffs, that he will say all right, youre going to do this, im throwing tariffs on something. Lauren retaliation. Lighthizer is looking into this and how it will affect the u. S. They have about a year but if you are a facebook or amazon or even linkedin, and you are looking at this with the onslaught of other investigations here in the u. S. That these companies are facing, how do you plan your future . How do you know what your expenses, what your liabilities, what your Legal Expenses are going to be . Maybe the answer to all of this, i think this is what the uk is going at particularly, is fixing the outdated tax laws that legally allow these tax giants to park their money at lower tax rates or taxfree in certain jurisdictions. Connell that last point you made is probably the biggest challenge in this environment, with this present administration and Everything Else, planning your future, whether its trade or other uncertainties that are out there. If you agree with policies or goals, the idea there is so much thats uncertain. Now, the president went after bitcoin, always going after something, today it happened to be bitcoin and facebook. I think when facebook got in the space, that caught a lot of peoples attention, including President Trump, going after this new libra currency that facebook wants to introduce. That brings up the idea, i would think, of regulation in this industry. I wonder whats next there. Lauren no one knows. No one knows the answer to this. So the idea of digital currency, of libra, is democratization of money, if you will. Facebook has a huge audience which means that there will be a huge acceptance of this whenever, whatever form it ultimately becomes after all the regulators have their say. But it also, with that huge acceptance, would be the huge possibility of a big catastrophe of it not working right. I know all of these Tech Companies are raising their hands and begging and im going to use the word regulation in quotes. For regulation that is more legislative clarity, that is more of a rule book for how they can go forward, how they can be innovative and how we can support them as a country to keep their innovation in the u. S. And dont force them to go overseas, where they can try out these new policies. But what facebook is saying, its a pregnancy announcement, not a birth announcement. This is just the beginning of a very long battle as they figure out connell they dont know what they are, what they are going to become, how big a part this is. The transition is interesting that zuckerberg says hes making and this i guess is part of that, going from this completely open company to something thats more focused on peoples privacy. Just the complete opposite of what we have come to know facebook being associated with. Lauren honestly, i dont use venmo because i have my concerns. This is like the whole next level that i think a lot of people would be welcoming. Connell i was going to ask you to borrow money. Lauren i will put a stamp on the envelope and mail it to you. Im that old school. Connell really . No digital . Lauren nope. My friends hate me. Connell right. Venmo is a way of lauren but the president has a point. With the tweet he sent last night, facebook, youre not a bank. If you want to be a bank, get a license to be a bank. Connell it might be one. They might end up. Lauren a version of one. Connell everybody thats in the space will now have to deal with this. Thank you, facebook. Thank you, lauren. Lauren youre welcome. Connell lauren stayed up late for us. Thats essentially what happened. Its 2 00 in the afternoon. The gulf coast is bracing for that storm. This could be very rough as we have been talking about this weekend, because of where the level of the water already is. The sandbags are out, theyre getting ready. We will talk about it in a moment. 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. No matter what you trade, at fidelity patients that i see about dry mouth. They feel that they have to drink a lot of water. Medications seem to be the number one cause for dry mouth. I like to recommend biotene. It replenishes the moisture in your mouth. Biotene definitely works. [heartbeat]. Fact is, every Insurance Company hopes you drive safely. But allstate actually helps you drive safely. With drivewise. It lets you know when you go too fast. 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He will Push Congress to finally approve our new nafta deal. Well bring you his comments when he takes the stage. Vyings president mike pence heading to the