Transcripts For FBC Mornings With Maria Bartiromo 20240714

Weve got a big show coming up and interview with wilbur ross this morning and acting director mark morgan mere to talk border crisis and member of the Senate Budget banking and Arm Service Committee also here this morning on technology, trade, to discuss the real estate market, as we get house hadding data out as well. Plus founder of chairman and chairman of Equity International joining us this morning as well. Dont miss a mommy of it weve got a big three hours joining conversation this morning, cfr investment strategist lindsay belle here as well as former home ceo former ohio state is a senator minority leader American University school of Public Affairs president , capri great to see everybody this morning. Thanks so much for being here. Good morning its exciting. Excite because here we are in the beginning of another week of Second Quarter earnings and were going get a good window into the economy. Lindsay what can you tell us in terms of how earning season has kicked off. So far it is early and earnings have been decent led by the consumer. Which is very good thing were going hear from bank of america and regional banks today which could be a little bit more dicey given the net interest environment with the fed cutting rates thats really going to pressure the majorren for some of these regional banks but one thing i noticed that trade and tariffs have been a topic of discussion in some of these earnings calls and youve seen it especially with some of these Industrial Companies and most notably within the banks i think this is under reported is that theyre underwriting revenue declined double digits in the quarter. I think thats a reflection of the sensitivity to trade, city call that out theyre especially seeing slowdown in asia. But also i think it is just a concern for some of these companies as they think about future of their businesses. Well see because i want to get a window of how strong or weak the economy is right now. Because we continue to see record numbers in terms of record low unemployment, and pretty good Growth Numbers in the first quarter. But were all worried about things slowing down so wool watch that in face of thawfl technology is taking some real heat here another hearing yesterday executives from america tech giant answered questions from lawmakers yesterday. And faced harsh krit sesm. Watch this. Facebook is dangerous. Now facebook might not intend to be dangerous, but sure isly they dont respect the power of the technologies theyre playing with like a toddler who had gotten hands on box of matches facebook burned down house over and over called every arson a learning experience. In september 2017, when Senior Management told your board of director you also wish facebook also issued a statement, it said yeah the russians have tried to disrupt the election through facebook, but they always spend 100,000 and they only rent 3,000 ads that was a lie wasnt it . According to data produced google controls over 90 of the serge engine market in the United States. So congratulations on that. Although this seems to fit the google argued that Company Monopoly in the Search Market is nothing to worry about because competition is just a click away. I would say that definition of the market is quite narrow and that when kiewrls are searching for information online, the range of Different Services that they use for example, when people are searching for products the major of americans start their products searches on amazon and searching fors i plays to travel hotels and airline it is they start with dedicated specialist competitors so i think market is is is brotder than that. Bob your reaction. Timing right is everything. And probably couldnt have been a worst time maria, to bring out this cryptocurrency for facebook, you can see theyre doing this crossarm salute although not google or amazon. But interesting theyre trying to throw stones at each other now to deflect the focus in the attention that theyre under. It is hard to argue that google doesnt have dominant market share it is 90 pcialght of all search result. Absolutely. Facebook is already under spotlight to come out with this cryptocurrency about to be managing you know cash now, pane financing just the wrong time. You know may have been a better time. I would have held back on it myself. I think this is going to be a long period of investigation for all all of these companies that reminding you of the days of microsoflt back in the 90s when we went through that whole process. But you know with, monopoly seems like it is a bad word but it is not illegal so grade School Google might have that on market but not prevents players from getting involved okay and thats where Companies Need to start with if theyre not preventing other competition. But you speak about monopoly whether or not at some point the department of justice gets involved when if comes to antitrust issues with some of these companies and 98 to go back to cryptocurrency we saw some of the number for bit coin just there on the screen, and bitcoin was noticeably ab sent from some of these hearings when it came to libra you know cryptocurrency that facebook rolled out here so one thing i have found interesting as well at a time where washington is so divided the about facebook is united democrats and republican against a common enemy. Yes. It is true. With the cryptocurrency with bitcoin who would be person sitting in that seat . Right. [laughter] its thats part of the issue that people are concerned about. At least youve got a face with facebook as no transparency the bit coin you doapght know who it is the at this point really. It could have been a different narrative around the crypto libra had it not been for the privacy breaches as facebook but because this company has shown up that it is breached people privacy, and has used our data and sold it, theres a fair argument to be made, though, wait a minute we have to check this first. We want to look into this. I think whats more scary about libra thing is theyre trying to get to your everyday consumer to face for forecast and across the internet so almost like replacing papal. Exactly. Yeah. Well it has been a wild 48 hours thats for sure in washington. President versus progressive democrats voting to pass a resolution condemning recent tweet singling out four party women with four joining democratic colleagues they singled out democrats referred to as a squad weighing in on a few of the President Trump and their relationship with house speak or, nancy pelosi. Watch this. L im dealing with the biggest bully ive had had to deal with my life tim and trying to push back on that trying to do job that weve been sent here to do centered around people at home this is a distraction. Our teams are in communication our chief, shouldnt it be a facetoface i want to know if youre a new member not the speaker. Every right with any of us. Shes speaker of the house. She can ask for a meeting to sit down with us for clarification. Wow. Capri whats your reaction . You know, weve watched the democrat quote squad versus nancy pelosi in leadership, you know go headtohead for the last several weeks frankly actually since, you know, the new class has been in office in january. And i think whats happened here with these tweets coming out of President Trump, talk about again unifying a divided group whats happened here is you know President Trump has kind of brought this group together. Hopefully were going to be able to move forward and govern but unfortunately i dont think thats probably resistance for the squad. What she was talking about saying im faced with biggs bully. I mean, have they ever had had a conversation, President Trump, and she said im faced with this bully, i mean, has he said a word to her ever . Not that im aware of. Look, if you look at a President Trumps style, you think hes probably doing this intentionally poking bear to get this kind of reaction. Could be. If you look at it towards the election i think he has to play in his favor of whats happening here. Ive never seen we reached such a low in the house with pelosi yesterday, with the executive order, i mean it is just unbelievable whats happened to our leadership team. And why go specifically to being women of color what does that . So many policy issues to address. Why are you telling me youre a woman of color . Lets work on immigration policy. [laughter] afnlg whole lot there. Major issues. A lot to talk about and well talk about it this morning and take a break when we come back President Trump taking on google he wants to look into the Technology Giant tieses to china after comments by billionaire investor and entrepreneur feater teal. A closer look at that, municipal. Then digital crimes microsoft employee charged for scheming to steal cryptocurrency. Back in a minute. 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. Plin an emergency, who do you want by your side . A new proposal in Congress Wants to put the Insurance Companies and the government in charge of your healthcare by price fixing. 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Lets show girls that stem isnt just a boys club. Lets make a difference in peoples lives. Lets do it all. Together. Lets expect more from technology. Lets put smart to work. 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. A statement from the Supreme Court says that steven died of complications from a stroke. The navy veteran appointed by gerald ford back in 1975 and served through 2010. President trump offered condolences says quote his passion for the law and or for our country will not soon be forgotten. He was known or for his humbleness an faith in the law Justice Stevens 99 years old. Well, some shocking numbers on the pus Opioid Crisis a Washington Post is reporting 76 billion opioid pills flooded into the United States over a sixyear period the pills shipped by Major Drug Companies contradicted to more than 100,000 american deaths between the years 2006 and 2012. Sunny data released apartment of self lawsuits by local governments and states that are seeking to hold pharmaceutical Companies Accountable oklahoma and j. And j. Head of that fight right now. Formaller my microsoft worker changed in scheme to steal 10 digital in cryptocurrency 25yearold ukrainian citizen stole gift cards resold them on the internet prosecutors say he used money to buy 160,000 dollar test will. And get this maria a 1. 7 million lake front home. [laughter] there you go. Digital theft alive and well. It sure is thanks so much cheryl. Technology has been underfire big tech grilled on capitol hill yesterday as President Trump ties google with uber eats for a new partnership. Weve got it all right after this break. Stay with us. 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. Expedia. Cant see what it is yet. Re . What is that . Thats a blazer . Thats a chevy blazer . Aww, this is dope. This thing is beautiful. I love the lights. Oh man, its got a mean face on it. It looks like a piece of candy. Look at the interior. This is nice. This is my sexy mom car. I would feel like a cool dad. Its just really chic. I love this thing. Its gorgeous. I would pull up in this in a heartbeat. I want one of these. That is sharp. The allnew chevy blazer. Speaks for itself. I dont know who they got to design this but give them a cookie and a star. I swibecause they let metual, customize my insurance. And as a fitness junkie, i customize everything, like my bike, and my calves. Liberty mutual customizes your Car Insurance, so you only pay for what you need. Liberty. Liberty. Liberty. Liberty. Welcome back china and google President Trump announcing administration will take a look at a accusations that google is working with the Chinese Government. Now facebook board member peter teal and industry found or palmer told me earlier this year about threat from china glg and a. I. Watch. They said in a Senate Hearing that google working with china is actually helping chiengdz military indirectly so working with u. S. Military but fine helping the Chinese Military. I think theyre officially working with Chinese University but then the question is whether all of these thingses are sort of interlengthed and connected in china and practice. Theres you know i think one of the ways to think about about the a. I. Technology in soft political context is that theres an Innovation Research part where need to develop new algorithm and maybe new hardware and i dod think thats where the u. S. Is still clearly in the lead everywhere. When you build an a. I. Research center in china, where china is not allowed to operate and doing this thing there kind of in the hope it is that maybe someday theyll be in china. They are directly helping the Chinese Military. The people who work in that center are going to either be working for the military now or in the near future. You better belief it. Theres no way that china is going to say no that came from america. Were not going to use that. China is all about using american technology. Theyll steal it if we give it to them and theyll steal it when we dont want to give it to them. Joining me right now is chief of staff former c. A. Center for president and ceo fred and good to have you on the program this morning. Thanks so much for joining us. Good to be here so you hear what they said whats your take on google working in china isnt it true that chinas main priority is to make sure everything goes by the military first if you have innovation this china theres something called civil fusion. Civil military potion first they check if it is used with the military. Well look maria, china is google is operating in a. I. Laboratory in beijing to attract chinese tech talent and we know that way the Chinese Government operates every single employee is working for being vetted by chinese intention. Now google is trying to reassure us we dont work with Chinese Military thats nonsense anything developed in laboratory is going to flow through employees to chinese intenls and be used by Chinese Military. Thats what i was trying to articulate theres a thing called Civil Military fusion where anything, any innovation that whats in china first tested on military because their ultimate goal is to be number one superpower Largest Military in the world bigger than the United States. If thats the ultimate goal, of course, youre working with the chinese whether it is university or a company. Ultimately youre working with the military. It would be just as bad if this company was operating in the United States and it decided to hire chinese nationals which google is probably also a doing. But putting this a. I. Lab in beijing is a real problem and it makes it even worse because of google left wing politics it has stopped working with the pengt gone. Now we already know it is slamming search result against conservative bus this is moving from a free speech issue to National Security issue and thats why im glad that President Trump wants to look into this. For lindsay here why is it taking teal making strong accusation against goggle to actually finally look into this, this is a problem that has been known for a long time. J you know thats a good point it has been known and written about on press for quite a while. I think that Mainstream Media dupght see china for the threat that it is. And im glad that teal spoke up hes breaking with his colleagues in the tech world who they want to invest in china. And mean they have this distorted world view what it is okay to deal with Chinese Government and not the pentagon, and you know, i think that theyre beginning to be under a lot of scrutiny on capitol hill. You know here ive had 45er yewses in business and weve had restrictions over the year about what we could buy from china. And what had we could produce in china, how does google get around those policy issues and being able to set up this university if you call it that in china wheres the loophole . I dont know if theres a restriction stopping google from doing this. We know google pulled out Search Engine in 201 because china was force it to sent a sensor search results but last year grade school trying to build a secret sensorrable Search Engine for Chinese Government that had to drop because of protest in the United States. So i dont know what the restrixes are from the u. S. Government. Popular pressure might be over reverse this. But google seems to want revenue from china is not worry about the threat this poses. Thats right because for too long American Companies have so interested focused on getting their wheres in front of the 1. 4 billion in china that along the way they completely forgot to protect their own product. I mean the chinese will steal it and theyll steal is it to be used for military. Imagine capri, back in world war ii days, if one of the leading American Companies said to the u. S. Government, no, no were not going to work with you on this because we really need to get a foothold into the imperial jamb it is outrageous. I want to go back to the punish of loophole if i may for ask a quick question of you on this. Because weve mentioned this issue of loopholes, and, obviously, google has been tiebl get around certain, you know, existing regulation and laws in order to get their wheres in front of china. So if President Trump is successful looking into these, you know, these issues of google and china, what actual recourse from a regulatory or legislative stand point does the federal government have to go after google if they identify that they are these issues that they can prove . Well, i think google arguing that look were just running an a. I. Lab and not working with the the military is just laughable in the face and i think u. S. Government is going to have to be much clearer that this type collaboration poses National Security threat this is no way to stop this technology from going to the military and maybe theres a way we can bar this. Real quick fred on turkey f. 35 sales the president yesterday canceled a a plan to sell f5 jet flighters to turkey after the country air Defense System from russia. Text representative was with me on sunday explain the problem on sunday morning future. Watch this. I know that were selling Turkey Military equipment, your committee overseeing that. Theyre also buying military equipment from russia. Very problem mat egg you have a nato alibiing russia equipment you cant buy Russia Military equipment and endangers it is more so we offer them the Patriot Missile battery system. They chose the russian instead. This actually blocks the f35 sales because the s400 actually tracks our f35. That was a really important point there. The f400 track fell after 5rbgs 35 so that is a ground military piece of equipment and can shoot down. Fand here you have buying from russia. Do you think that turkey should face sanctions even though it is a nato ally . I think legally it has to see s400 shooting down selffighters worry is once turkey has this Technology Russians if turks get the f35 russia will learn more about this capability which will help russia shoot them down but you know the issue of patriot miss is also a big one. Obama administration was involved in negotiate negotiations for sale the patriot to turk yis and they didnt pull off a the sale it isnt that we offer but negotiation to sell to turkey did not succeed so i think President Trump criticism of the Obama Administration on this point is valid. We will leave it there and see what happens next with turkey given it is a nato ally fred great to get your insight on all of this. Fred flights joining us there. 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So, how can we change whats possible for you . Award winning interface. Award winning design. Award winning engine. The volvo xc90. The most awarded luxury suv of the century. All right brad, once again i have revolutionized the songwriting process. Oh, here we go. I know i cant play an instrument, but this. This is my forte. Obviously, for Auto Insurance, weve got the wheel route. Obviously. Retirement, were going with a longterm play. Makes sense. Pet insurance, wait, let me guess. Flea flicker. Yes howd you know . Studying my playbook . Yeah, actually. Welcome back to wengdz morning thanks everybody for joining us wednesday july 17th your top stories right now 6 31 on east coast focus on earnings this morning. Bank of America Company watching this morning ahead of the open. Following bts from Goldman Sachs jm morgan and wells fargo weve got numbers on quarterly number out of bank of america momentarily stay with us for that. Meanwhile were looking at marks higher this morning future indicating gain of start of trading up 27 s p futures up three and quarter and nasdaq up 14. 5 right now. Bank of new york just coming out right now, by the way, record run took a pause about the china trade deal wait on investors a bit he says theres still a long way to go in terms of a deal between the u. S. And china. Dow industrials yesterday down 23 at the close s p was down 10, and nasdaq was lower by 35. Global market it is this morning look like this european indices a mixed and lower down eight and a half but it is up about a point and dax index up about four points fractional moves in eurozone. Drove across the board it was fractional move but nonetheless in the negative column. Mcdonalds at your doorstep fast food giant delivered blow to iewb we are a new deal l weve got the details coming up. Then it is world emoji day a look at offerings coming to your phone all of that right here coming up. But first our top story this half an hour markets in focus and economy after recordbreaking highs u. S. Markets dip yesterday after President Trump comments challenging china yet again on trade and technology with the potential of more tariffs. Joinings right now to take a lock at the story and chief economist nancy lazar always great to see you thank you so much for joining us whats your attack on the back drop . Some of the healthiest economic back drop ive seen in a long time two economic weakness that were going to see in jdp is old news and new news like to see a pickup in economy and also a secularly. So whats about rate cuts things slowing down quite a bit, half of the year where did that come from and weve survived it . Yeah. So you have an earnings recession youll see that as you go through data and that recession was in part related to china trade war and sharp slowdown in chinese economic act. China is really the driver of the corporate earnings recession. And business as a result but this confidence as a result of that got hit had. And so now what youre seeing as that trade tension has eased and as china has eased massively we kind of easing moves out of beijing over past year thats stimulus is starting to help support the chinese economies, you also have some distortion to the trade data as activity was pulled forward because of the trade war. Thats all now starting to fade Interest Rates are lower around the world. U. S. Economy is healthy we have productivity thats driving growth and so at the end of the day as you move into the second half of the year, i think gross yes incrementally picks up. You have to not forget wages increase in pay in about ten years. President spoke about u. S. China trade deal. Watch this. With china is concerned weve got 325 billion dollars that we can put a tariff on if we want. Hes not backing down bob even if that additional tariff on 325 billion means hit to the economy. I dont know i want to get your take on that. Sm no. Listen, i admire his tenacity hes really looking for the longer term, i think how do we really fix the problem weve been kind of kicking can down the road for a long time. Theyre not going to stop the feeling. Theyre not so i admire his tenacity taken a lot of criticism for it but nancy i would be interested you laid out a pretty positive future here. You know, consumers strong in the Second Quarter we were talking about that earlier. But some of the profitability may be a little depressed what do you see for the second half . The consumer is pretty healthy. But theyre not spending yongd their means. So the three and a half percent kind of gross trajectory we have for Second Quarter probably doesnt continue into the back half of the year. Around to two and a half percent is probably a better track record. As is maria says they have a healthy employment back drop solid wage gain and what im impressed with is creating healthier job market for all americans you see it in data this is not just talk but you see it in pun employment rates and labor force parption rates in low income wage withs are up as much as high income wages are and you see that in overall income gross. So consumer is healthy. You have a weak furs convert a robust Second Quarter back drop but healthy. Im more interested in focus on capitol spending i think thats the key driver to growth. What about cap a lull in the first half a of the year but i think thats going to to pick up in second half of the year. Capital this is the strongest Capital Spending cycle in the history and longest in in history. And socap x today in broad base is driven by technology but also old Economy Investment in in country and cap x today is helping to create this strength in the job in the job Market Companies create jobs and that investment cycle is theres a huge misperception that ive been passionate if on cap x in this country that has been that it has not been weak but it has been the one of the healthy cap x cycles weve seen. Part of the issue is when you measure about some dont Mechanic Technology which is probably one of the biggest spends for corporations today. A shift no longer brick and motor so much as it is driving productivity as you mention and ecommerce site. i was excited about your mcdonalds item theyve been at the forefront of productivity since inception so for mcdonalds to be continuing to inno elevate, change their Business Model is a beautiful example of companies in general continuing to invest in their business. You have to believe lindsay as a. I. Gets further implemented into businesses thats beginning to only increase productivity. Thats a great point is on productivity is weak lately so im wondering what drives the pickup in productivity and in second half of the year expecting cap x to increase and threats of escalating tariffs to the old kit and of china isnt that a risk . Lets attack a step back productivity has picked up since 20 of productivity has been improving trend about and indeed in 2018 here in early 19 is out on upside so it is an celebrating trend for some reason it doesnt get respect. Is it the low historical average . absolutely. It hit a record low growth rate that was because of the lack of investment in the country in the last expansion. But when the facts change change, and whats changed is we have had an investment psyched this expansion it is now showing up in productivity, unit labor cost are now declining to keep inflation pressures lower longer. Yes trade war probably is the biggest rifnght not so much by the increase in tariffs. But what it does do to business confidence, and businesses is well to reinvest in this country. But the bigger issue is, weve had a solid invest. Cycle already. And this could flow is down has slowed it down some and it could keep it slow if it indeed reeffect lates that to me is one of the biggest outlooks. Under president obama so many rule and regulations a lot of people compared it to 15 King James Bibles literally, i mean, no seriously number of pages of regulation. And then companies were sitting on cash, they werent only handcuffed because of the regulation it is they were facing. They didnt know what was around corner. So they have to silt on cash. Would you disagree with that that the president deregulation plan sparked an enormous amount of cash . No question that we have this experience of a state of ohio where i worked on regular will story reform there and they think were slowed down significantly because we have so many regulations we were not able to permit and thing of that nature . Im curious it see whats going to happen with Manufacturing Sector Going Forward and then second half of the year. Thats one area that you you know jay powell said is a weak spot manufacturing. You start in the pmi right nancy . But questioned you saw better manufacturing data indeed in part was led by Semiconductor Production in the country. So i think manufacture activity is bottomed it got hit because of concerns. Inventory escorts but things are turning. Great to get your insight thanks so much for joining us. Nancy from cornerstone mac koa bring you analysis as soon as they hit the tape. Stock is going up into it. No more facial recognition one city votes to unanimously ban the technology. Well let you know where and why. Stay with us. 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Joining us right now is Capital Advisor senior portfolio manage a Long Time Bank investor youve invested in regional smaller cap but invested in big guys like bank of america overtime. Are you expecting good quarter what are you expecting here . Prchg you know what like the rest of the big guys i think i expect a mixed quarter but i think what were looking for is continued long growth continued customer accusation, and lots of return of capitol and pretty good credit it has been benign. Thats a good point credit hasnt crept up yet even though in late stage everybody is worrying about what will happen next. So what is next catalyst for bank buzz you think about Interest Rates coming down to hurt that interest margin and consumer still feeling good. We just got past the c card now giving more money investor whats next . I think you look at the big banks, they are like utilities. They paid big dividends buy back lots of stock, and if you look at their evaluation relative to the s p it is at 40year historic lows if theres a rotation from value these guys will benefit i dont think theres a downside into them. By the way fed cuts as much as they might be a negative but theyre positive for credit they extend credit cycle and people are really worried about credit, pane im just not seeing. I mean their pockets i like around this country, and i look at the different geography around this country and people are moving to the south and the southeast, and to states that have much lower taxes. Well, those economies are thriving. Yes. You know let me ask a question you mentioned earlier about about bank of america 30 million buyback youre seeing small regional and sun trust purchase whats happening out there and lindsay mention Interest Rate down, what would you what is going to happen to banks Going Forward both big ones why arent they acquiring more . To get to the numbers and answer that question. I want to get to numbers that are out and it is better than expected Ashley Webster with those. Good morning mash ya a little bit of a mixed story on eps bet at 74 cent as you said the estimate was 71 cents by the way that is now the 13th quarter in a row that has beaten on earning side revenue very, very slight miss coming in at 23. 1 billion, the estimate was 23. 2 billion. But just a slight miss on revenue and were just looking at a some of the headlines coming down Consumer Banking revenue 9. 72 billion, waiting to see some comments on cost cutting that speaks to bank of america as we know security trading environment has been a bit tough but consumer legending has good and Global Wealth revenue if line with what people are expecting. Average low to at least balances up 34 billion or 4 that is solid Global Banking revenue coming in again at 4. 975 billion. So overall i think pretty much what weve seen with big ngbags up to now that have reported similar to bank of america but we should mention a slight miss on revenue side maria. Thank you so much actually youre in middle of a die your reaction antoine. You know if you think about going to happen to the industry, youve got the top four banks which cant buy. Right theyre at the 10 deposit cap theyre not buying any other banks. Maybe they buy a thin tack or improve that. Or buy on aum right . Right Asset Management but not deposit. You know what but there are 88 banks between 10 billion and 100 billion given the new regulatory bias to allow banks to merge, obviously, weve saw some trust and were going see a lot of those 88 banks partner up, and that will create some shifting sands, clearly the bte murder will be good for shareholders but for every other bank in their foot precinct. You know everybody is going to gather a little bit of customers a little bit of some of the people that they lose, so you know if youre in the southeast, youre going get some customers youre going get good people and upgrade yourage by the way their shareholder getting cost saves so we will will see a lot of mergers between those between 10 and 100. 90 chance of the cuts in week and a half on july 3031 what does that mean for Banking Sector when fed cuts rates . Not every bank Balance Sheet. But i think that, you know, i think one of the things that fed has done over last few yearses is being clear about messaging not trying to shock market so theres a cut coming but the question is degree of it. And a probably most logical one because you see mix number right you see really good consumer numbers yesterday. Good growth, you know tbrks dp better this quarter so they need to give us a 50 base shock, i think when i was here last we talk a about 13 trillion around world negative Interest Rates are you kidding me . But isnt that one of the reasons that fed has to cut because everybody else across the world is actually cutting and it is putting our kurn about city at disadvantage. Putting pressures also on Interest Rates here in the u. S. When you have the high fest Interest Rate around the world, the money is gipping to come l right with respect to Interest Rate for earnings you saw cut interest and expectations. Citi group talked it be being a 50 billion impact per quarter so a real gact can you talk about how it will impact a regionals . Sure again it dpeppedz on the Balance Sheet morgan assume three cuts on numbers and i i think, you know, two is probably relatively more likely i mean again we continue to see decent gdp growth. What you know that i dont know . I think fed is worried about trade war so i think theyre trying to get in front of that. If we get a deal, great. You know, then not as aggressive dont get a deal more aggressive. Smg speaking of deals one of the things were talking about sort of global question marks, i mean, what about brexit right now theyre facing, you know, a Prime Minister race, i mean is that going to have any impact on Global Markets . World have been calm about it with nothing but headlines on it for threer year requests no direct impact but what happens is you are going to have a little bit of a shock and we have to figure out the chest board and much of the market like it the day it happens. Where do you want to put money in . Im investing in the southeast, and im absolutely buying companies, you know, ten times forward earnings. If you think about cost cuts that company is getting together thats 25 in the gag we saw a dealing not too many days ago 25 . Antoine ships. Well be right back. 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. Welcome back family members of victims killed in boeing max 37 crashes testifying on capitol hill today. Cheryl casone on headlines. Cheryl. Quite the testimony maria. This is coming as Congressional Panel is examining aviation safety following those two deadly crashes involving boeing best selling plane that 737. Paul is a canadian lost his wife, three children, and motherinlaw in the crash this march. Hes scheduled to appear he was to scrap the plane and Company Executive to resign and face criminal charges. We should also add that United Airlines is expecting profits to rise despite the grounding of the max 737. Company says strong domestic demanding going to forecast but airline expects to only boost flying capacity by about 4 . No more facial recognition folks okay Land City Council voted unanimously to ban the technology in city dpghts. Including police, making it the second city in the country to do so after san francisco. The amend as City Surveillance ordinance prevents from adopting any facial Recognition Technology and from using information that is obtained by this software. Well, mcdonalds is partnering with door dash in major blow to deliver orders from 200 Mcdonalds Restaurants in houston later this month. This could expand nationally later in the year. Until now uber eats has been mcdonalds only delivery partner. Finally theres this get ready to celebrate, world emoji day today nearly 60 from a physical include designs that have a walking cane, a wheelchair smiley face and other show same sex interracial couples food options theres waffle garlic animal like a sloth, skunk my favorite this morning i saw was yes yawning ill be using that many times. I like that all right thank you. Still ahead bitcoin tumbles again cryptocurrency hearing and mornings with maria plus ross on the other side of this break. It all started under this buttonwood tree. Twentyfour people came together to sign an agreement that created the stock exchange. Just the right elements coming together. It started when scores more people came together, just down the street and traded bonds that helped pay for the revolution, and the nation it created. It started in an office on the corner where the right people witnessed the telegraph and brought information and humanity together forever. It started with the markets, bringing together steel and buildings and silicon and medicine and rockets. We believe the possibilities of life and investing are greater when we come together. Its why for eighty years weve connected ideas with technology, data with inspiration, investors with solutions. So that every day together, it all starts again. On. Carrying up to 50 times its body weight. It never questions the tasks at hand. But this year, theres a more thrilling path to follow. father kids. Change of plans vo defy the laws of human nature. 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Good wednesday morning, everybody. Thanks so much for joining us. Im maria bartiromo. It is wednesday, july 17th. Your top stories right now, 7 0. Were focused on earnings this morning. Lots of big names reporting their Second Quarter with banks in the spotlight this morning. Bank of america this morning out with a beat on adjusted revenue and a beat on earnings per share. Nonetheless, the stock is down two thirds of a percent, profits rising on loan growth. Bank of morning melon bank of new york melon also beat. Pnc with a beat on earnings, missed slightly on revenue. The banks are coming in pretty much as expected as we saw last week as well. Futures this morning indicating a gain at the start of trading. Dow futures are up 13, s p up 2, nasdaq up 11 points right now. Yesterday, the record run took a pause on wall street. Markets were lower fractionally across the board. The s p was down 10, the nasdaq lower by 35 at 4 00 on wall street yesterday. European indices this morning are mixed. Take a look. Fq100 is down 10, cac down a fraction, dax up three quarters of 1 . In asia overnight, its negative. China trade turmoil continues. President trump saying that there is still a long way to go for a deal between the u. S. And china. Weve got the fallout. The crisis at the border, President Trumps new asylum restrictions also facing legal challenges. The onbattle coming up. Big tech under fire. Facebooks proposed cryptocurrency came under attack on the hill yesterday. Aboubitcoin is lower. Joining us, lindsey bell is here, bob nardelli, along with American University school of Public Affairs executive in residence, capri caf a aro. Its been a good hour so far. Interesting to see the different expectations for the economy. Nancy l lazar, a little more constructive on what were seeing, versus the conversation out there, indicating a 90 expectation for the fed to cut the rate in two weeks. If were not careful were talk ourselves into dampening the enthusiasm and the growth weve had in the economy, cap ex shifting to more technology, ai. Technology cap ex is the largest component of cap ex in gdp. I think there is reason for some concern out there. Theres a lot of uncertainties, whether it be the china trade deal, whether geopolitical in nature, brexit. There are some things you have to consider. The fact is, there seems to be good, solid strength in the u. S. , and the consumer remains very strong. Consumer confidence seems very, very strong. An area that does continue to concern me, certainly from being where im from, is the Manufacturing Sector. And thats where tariffs and trade issues really are going to play a part in that supply chain. I certainly dont need to tell you that. On that point we get the beige book from the fed in the afternoon. There will be a lot of anecdotal evidence on how tariff and trade is affecting things. Maria the fed meeting is at the end of july. Well see what the manufacturing indices tell us. Youre right, thats where the weak spots have been, ohio and manufacturing. Were talking about all that this morning. Our top story this hour is held in contempt, the house of representatives preparing for a vote today on whether to hold attorney general william barr and commerce secretary wilbur ross in criminal contempt for not complying to federal subpoenas related to their efforts to add a Citizenship Question to the 2020 census. Joining me this morning is wilbur ross. What is your expectation on this contempt issue . Oh, this is just more political theater. It doesnt really have any substantive basis. We produced to the committee over 14,000 pages of documents. Whats at issue here is about a dozen documents, roughly 15 pages, all of which the courts didnt find necessary to make their conclusion. So this is silly. I testified myself for almost seven hours before this very committee. Three of my former senior staff people including one who is now assistant attorney general in the state of florida, testified as well. We answered thousands of questions. We are not stonewalling. But we are also not yielding on the very, very important matter of executive privilege. These are privileged documents. Theyre going to remain privileged documents and were not going to be frightened into changing that position just because of some action the house might take. Maria so how will the president deal with this, then, in terms of understanding fully the number of americans in this country versus illegals . Is that the whole point of putting that question on the census . The question of illegals was never going to be asked. The census was intending to ask the question are you a citizen or are you not. It never asked about legal status. Nor can the census data be used for i. C. E. Purposes or criminal investigation of any sort. Under title 13, those data are protected. Individual data cannot be released. Theres a serious jail sentence and a serious fine for anybody who is convicted of doing so. Maria the left knows that, right, wilbur . They dont want the question on the census regardless. Why do you think that is . Well, i think its just gamesmanship on their part. They know were going to come much closer to the answer than we ever have before. Maria i see. Because with the president s executive order, were having much better access to federal documents than we ever had before and believe it or not, many states are also going to be cooperating with us. So we will get the kind of data thats needed and in some ways it will be even better because i believe that a lot of census money should be dedicated to administrative records, rather than just people ringing doorbells and we hope that the progress we make this time will move us toward that for the 2020 census. Maria okay. Well, were going to be watching that obviously. Meanwhile, look whats going on in the congress right now, secretary. First of all, big tech is in the hot seat, lawmakers taking aim at Silicon Valley giants yesterday. The issues here, data and privacy concerns. Listen to this. Ive got to get your reaction. Well, i was at the facebook might not intend to be dangerous, but surely they dont respect the power of the technologies theyre playing with, like a toddler who has gotten his hands on a book of matches, facebook has burned down the house over and over and called every arson a learning experience. On monday, you claimed in an op ed that google is not politically biased, yet you acknowledge that google took down or limited the reach of conservative content accounts and only did so mistakeenly. Google controls over 90 of the Search Engine market in the United States. So congratulations on that. But although this seems to fit the classical definition of monopoly. Maria what about that . Its interesting to look on both sides of the aisle, secretary, and both sides of the aisle want to really put in the screws on these tech companies. Whats your take . Well, i was at the social Media Conference last week at the white house and quite a number of the participants in that conference came up with very specific instances of censorship. These are not theoretical issues. These are people saying this is exactly what happened to me on this date at this time. So there is censorship. I dont think theres any question based on the evidence that those folks put forward. And so i think the real question is how should government, how should the congress, how should the Administration Deal with it. Anybody who thinks there wasnt censorship is wrong. There was a Public Survey taken, 13,000 something responses came in, mostly all giving instances of this kind of censorship. Maria so what is this administration going to of do about it . I spoke with President Trump just about two weeks ago or so when he called into the program and i said to him, look, do you want to see regulation here . Do you want to see how are you going to get these guys to stop doing what theyre doing if in fact this is the reality. Because if youve seen the censorship of conservatives now, wait until we get kneedeep into 2020. Heres what the president said to me two weeks ago. Watch this, secretary. You mentioned Technology Companies, how concerned are you that Technology Companies are censoring conservatives and theyll do this right up to the 2020 l election. Well, theyre doing it to me on twitter. What they did to me on twitter is incredible. I have millions and millions of followers but i will tell you, they make it very hard for people to join me and twitter and they make it very much harder for me to get out the message. Maria and he went on to say, when i said to him do you want to see new regulation, said i said do you prefer just seeing competition in the marketplace. He said you might need legislation in order to get the competition. That could be. This is a whole new area for us to explore. But i think the underlying question is its not appropriate for this kind of censorship. Theyve been given a get out of jail free card by the congress, saying that if youre not the creating media, you dont have certain responsibilities. Well, to me, censorship is creating media, its creating content, and if theyre going to start doing that, they better think about the consequences. Maria let me switch gears, ask you about trade. Futures are higher this morning or mixed after the markets took a hit yesterday on President Trumps comments that a deal with china may still be out of reach. Heres what the president said. Watch. We have a long way to go as far as tariffs with china is concerned. We have another 325 billion that we can put a tariff on if we want. So were talking to china about a deal. But i wish they didnt break the deal that we had. Maria so is it fair to say its probably a long time before we actually see deals here . What do you think, secretary . Where are we . As you know, ive said repeatedly this is not a 10 minute process. This is a long, involved process. The fundamental question now, though, is will they go back to the point where we were before they changed their mind and backtracked on some of the understanding that had been reached. Thats the important issue right now. And thats whats being probed in telephone conversations and the outcome of those phone conversations is what will help determine whether there is the next meeting and if so, when. Maria do you have any optimism or encouragement that they are planning to stop the theft of ip . Isnt that one of the big ticket items . Real quick. The big ticket items are the Structural Reforms. The theft of ip, the unlevel Playing Field in procurement, the subsidies, all those. But theres another in some ways even bigger issue. And that is, what is the u. S. Enforcement capability in the event that they violate the agreement. Maria right. Sure. You were talking about that before. Thats the real key. Maria before you go, secretary, on usmca i was speaking to a high profile senator over the last week and he said im not expecting nancy pelosi to bring it to the floor at all. Well, it would be a real dereliction of duty if she did not. This is the biggest and the best trade deal this country has ever made. And its quite ridiculous that Many Democrats in the congress voted for nafta. Nafta was not only a disaster, but paragraph by paragraph usmca is demonstrably better on all scores, particularly for u. S. Manufacturing, but also for the digital economy, for intellectual property, for environmental and for labor constraints. Maria i know, but she doesnt want him to have another victory. Well have to wait and see. Before you go, secretary, theres a report that the president was considering removing you from your post following the Supreme Court defeat on adding the Citizenship Question to the census, according to nbc news, nbc is reporting this. What can you tell us . Well, i was on a trip with the president last friday. We were in milwaukee. We were in cleveland. Ii was at the Cabinet Meeting of course yesterday and here i am on tv today. I think you ought to go by facts, not by rumors on some other network. Maria you got it. Mr. Secretary, always a pleasure to see you. Thanks so much. Good to see you, maria. Maria we covered a lot there. Thank you, sir. Arrest at i. C. E. Headquarters, protesters blocking exits and entrances. The fallout coming up. Celebrating the apollo 11, washington marks the golden anniversary with a high profile monument getting in on the act. All the beautiful pictures coming up. Back in a moment. Sed, 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. Dont miss your gto experience our most advanced Safety Technology on a full line of vehicles. Now, at the lexus golden opportunity sales event. Lease the 2019 es 350 for 379 a month, for 36 months, and well make your first months payment. Experience amazing. 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. 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 welcomcheryl welcome o mornings with maria. Im Cheryl Casone with headlines were watching this morning. Its official, european regulators are investigating amazon. Theyre going to look at whether amazons use of other merchants data breached eu rules. It will focus on amazons standard agreements with marketplace sellers and whether the company uses their data unfairly. Amazon says it will cooperate. There was a hit in the stock this morning. It is slightly lower in the premarket right now. Taking a look at shares of qualcomm, they are actually moving higher in the premarket, more than 5 andahalf percent right now. The Justice Department asked a federal Appeals Court to pause the enforcement of an antitrust ruling. Justice Department Says it would be impossible to replace qualcomms role in 5g technology in the short term. Back in may a judge ruled qualcomm engaged in anticompetitive patent licensing practices and ordered the company to license its technology to rival chip makers. Well see where the court case goes now. In honor of the the 50th anniversary of the apollo 11 mission to the moon, the Washington Monument is looking more like a rocket for the next two nights. The Smithsonian Institute is projecting a life size image of a saturn a 5 rocket accompanied by a 17 minute video presentation. If youre in the area, check it out. All right. Weve got a lot more coming up this morning. Lawmakers grilling facebook. The tech giant answering questions over its proposed Digital Currency. Their response coming up next. Plus, free beer for life. Now ive got your attention, im assuming. Busch is offering customers the ultimate prize but theyll have to work for it. Details coming up. He was a big star every night at joes bar. Where she sang karaoke every night. She said if you work hard to get where you are. Feels good in the hot spotlight. All right brad, once again i have revolutionized the songwriting process. Oh, here we go. I know i cant play an instrument, but this. This is my forte. Obviously, for Auto Insurance, weve got the wheel route. Obviously. Retirement, were going with a longterm play. Makes sense. Pet insurance, wait, let me guess. Flea flicker. Yes howd you know . Studying my playbook . Yeah, actually. We will take the time to get this right. We expect the review of libra to be among the most extensive ever. We are fully committed to working with regulators here and around the world and let me be clear and unambiguous. Facebook will not offer the libra Digital Currency until we have fully addressed regulators concerned and received appropriate approvals. Maria that was david marcus, head of facebooks cryptocurrency libra, the social network under fire on capitol hill this week, pushing on regulation on libra. Joining us is michael insara. Great to have you this morning. Whats your reaction to what you say on capitol hill and the longer term outlook for whether its block chain or coins, how do you see this developing . Look, i think you have to look at this in the context of as you just said the bigger picture. Things like block chain are here to stay and theyre actually moving at a much more accelerated pace. 20 years ago when erp systems came into play, people were unclear how this would revolutionize. This is a secure payment system. It has no central authority. Were big believers in things like public block chain. Much of what you saw in the testimony is a consortium of 28 companies, not just a Single Company that i think you is recognizing things need to change. We need the right regulatory and oversight i think you heard it resoundingly. You dont want unintended consequences. Maria dont be confused by the upset over facebook and libra. The Block Chain Technology is much different and thats sort of the backdrop and here to stay. Exactly. Go ahead. But the issue with facebook is not going away and we just heard the gentleman basically say to congress, look, were not going to move forward unless we address the regulators concerns. I recently saw an article, i believe in the Washington Post, talking about the fact that facebook actually preemptively went and presented this information to the treasury as well as the sec. And they were apparently the the sec was stunned that facebook was unable to answer some basic questions about concerns surrounding Money Laundering and consumer protection. So how are they really going to address some of these concerns . Are they really prepared or, you know, are we really seeing Something Like libra being pushed further out because its going to take so much longer to address the concerns of the regulators . So let me take block chain just for a moment to a different place and what is block chain. Maria were talking about two different things. Let me talk about why i think block chain is here to stay. Its been around for 10 years. But some of the things it does it is really an end to end, very secure payment type system. Okay. Its almost a distributed ledger so any person on the block chain and the coins are the currency. And the coins. I want to make a distinguishment between bitcoin and cryptocurrencies and the currencies talked about here, backed by financial reserves. Okay. So again, sometimes its the headline that kind of disrupts the actual reality of it. But let me talk about things were doing in block chain that i think are pas fascinating. Its tokenizing or tracking Better Things around the world. It could be viruses and knowing where patient zero exists today. It could be containers, billions of containers move around the world in cargo, marine block chain. Being able to actually hone in on where a source of food emanated from and a problem with that food is done in manual, very archaic ways. Maria it has nothing to do with libra or facebook. Thats why i wanted to focus on that. Maria im glad. Its really articulate the way you explained. Its very educational to a lot of us out there. We hadnt heard about block chain for a while. It kind of has gone into the background. You and ey are very dominant in that with your i object know vacation innovation centers, with advanced manufacturing, et cetera, et cetera. Want to talk a little about what youre you returned from a global trip so youve had the benefit of globality, if you can bring it to our audience today. Well, we talked a lot about why is unemployment at 3, 6, yet we feel like theres mixed wins. I think innovation, again, continues to create this efficacy of the marketplace thats allowing us to continue to propel the environment. I think one of the big things were focused on is how do large institutions maintain a day one mentality and entrepreneurial. More and more, its startups are great, theyre a critical part of the u. S. Capitalist system but big intuesday instewe adapting and institutions are adapting and becoming more agile. Its setting uninnovation activities, those that can permeate the broader organizational alignment. Really kind of segmenting the business and finding ways to accelerate innovation through it. I think that may be one of the unsung catalysts of this extended economic run. Maria all right. Michael, great analysis. Thanks so much. Thanks for having me. Maria thanks so much. President trump tweeted about the democrats. Heres what he said. The democrats and congress are getting nothing done, not on drug pricing, not on immigration, not on infrastructure. Not on nothing. So much opportunity yet all they want to do is go fishing. The American People are tired of neverending witch hunts. They want results now, writes the president. When we come back, the new Trump Administration asylum rules aimed at stopping migrants before they reach the border with mexico. Mark more can will weigh in next, in an exclusive. Elon musks next big idea, new details about his brain to machine interface, wait until you see this, next up. Chuggachugga, charles my man hilda, i like the new do. Got some layers in there, huh . 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. Maria welcome back. Good wednesday morning, everybody. Thanks so much for joining us. Im maria bartiromo. It is wednesday, july 17th. Your top stories right now 7 32 a. M. On the east coast. Futures are indicating the markets will open higher this morning. Dow futures are up 2 points. The s p struggling to hold in positive territory. The nasdaq up 6 andahalf. We are seeing selling right now because the markets are well off of the highs of the morning. This on top of a pause yesterday of course. We had a record run. But yesterday markets took a breather, down 23 points on the dow yesterday, s p was down 10, nasdaq was lower by 35. In europe this morning, major indices are mixed to lower. Fq100 down 19, cac down 9, and the dax index in germany lower by 23. In asia overnight, fears drove markets lower but here too fractional moves on a summer tuesday. Focus on earnings this morning. Lots of big names reporting earnings for the Second Quarter. The banks are in the spotlight once again. Bank of america with a beat on adjusted revenue and earnings. The stock is down a fraction. Profits were rising on loan growth in the quarter. Linking the brain directly to applications. Find out more about elon musks latest venture. The quest for free beer but you will have to work for it. The details coming up on that. All those stories coming up this wednesday morning. First, our top story this past hour, the Trump Administration lays out new asylum rules this week making migrants who pass through other countries on the way to the United States ineligible for asylum. The new regulations facing lawsuits from civil rights and immigrations groups. The president weighed in yesterday. Watch. We were sending hundreds of millions of dollars to guatemala and honduras. Were not going to send it anymore. We were giving them hundreds of millions of dollars like fools for years. And all they did is send us up a lot of people, caused a lot of problems and a lot of the people in those caravans were criminals. Hardened criminals. Dangerous people. And why not . Why would honduras or guatemala or hell sel el salvador, why wy keep their criminals, when you can lose them in a caravan and send them up to the United States. We take everybody. Because the democrats dont allow immigration laws that mean anything. Its horrible. Maria joining me right now is u. S. Customs and Border Protection acting commissioner, mark morgan. Mark, it is great to have you on the program. Thanks so much for joining us. Do agree with what the president just said . What is it about the democrats that they are not agreeing with some of these issues that the president has spotlighted over the last couple of years, in terms of the cries sis a crisise border. Thats the 60,000 question ive been asking for a long time and so have a lot of experts. I look at this as a congress issue. Congress needs to act on a bipartisan way to pass meaningful legislation to address the very real loopholes in our asylum that is causing this crisis. So i agree that Congress Needs to act and if they do, they can fix this crisis. Maria but the issue is is they do not certainly the majority in the house does not want the president to have a victory. They just started calling it a crisis recently. Many are still not. They said it was a manufactured crisis by the president. And then even when you go down to the border which i did and i actually witnessed it firsthand in el paso, how horrible the situation is and the dangerous situation that children are being put in, youre still not getting the kind of enthusiasm to actually make a change. When you say all you need to do is change the asylum standards and the flores agreement. Maria, you have been there. You saw firsthand. Another example of that. I know that you witnessed the children being exploited and how emotional that was for you and it should be for all americans. Case in point, we were asking congress for months to pass a supplemental because children, because families were being held in facilities that they shouldnt be. Maria but theyre not doing it. So whats your plan b . How are you going to get your arms around this and this administration going to discourage migrants from coming through mexico to the border and flooding our borders when it doesnt look like youre going to actually get a change from congress. Thats right. Maria, i think thats very important. We need to continue to work with congress when we can. We cant wait for them to do their job because theyve shown theyre not willing to do it. We are doing a lot. Were working with the government of mexico, the migrant protection protocol for example that were sending individuals back to wait in mexico while they go through the asylum process. 20,000 individuals have gone back to mexico instead of clogging up our system. You talked about the new regulation for asylum. The American People need to understand, thats not new. Thats an international standard. The European Union countries do this. Its an accepted standard. The first country that you come to, thats where you should be required to apply for asylum and thats what this new regulation is about. Maria let me ask about i. C. E. Protests. Federal authorities arrested 11 activists yesterday for blocking entrances and exits to i. C. E. Headquarters in washington. This is really becoming such a scene. There was an armed man was killed after police after attacking an i. C. E. Detention sender in washington over the weekend, writing a manifesto to antifa before carrying out the ambush. Progressive congresswomen and members of the squad, ilhan omar, alexandria ocasiocortez not speaking out to condemn antifa at all. Watch this. Do you condemn antifa . Will you condemn antifa for the attack in washington . Maria so there you go. Theyre making all this noise in the spotlight, being talked about across the news media, and yet its i mean, what is this . Is this smoke and mirrors . Theyre asked as specific question. Will you condemn antifa. They refuse to do it. In the manifesto he mentions someone from congress, specific language and rhetoric they used. Dont get me wrong. Those are actions of individuals. Im not putting that on anybody on congress. I think whats important is, congress should recognize stop the rhetoric, stop attacking the men and women of i. C. E. And cbp for doing their statutory responsible mission. Theyre enforcing the laws that congress have enact sed. So if congress doesnt like the current laws, they need to change it. And what i would say to people that want to protest i. C. E. Or cbp, i would say your protests are being directed towards the wrong people. If you dont like the laws, go Petition Congress to change the laws and well enforce those laws. Its frustrating to see. As you said, maria, that violence and that rhett rick its not help rhetoric. Its not helping. Not solving the crisis. Maria you have Companies Like wayfair saying were not going to send anymore beds to the detention centers. We dont like whats going on. Well, who are you hurting . No wonder theres 900 people behind bars when theyre supposed to be 385 and theyre so busting out of the accommodations because theres so many people. I mean, who are you hurting not to send beds . Its crazy. How about this new immigration proposal, mark. The white house adviser, jared kushner, also weighing in here. Presenting an updated plan to the trump cabinet, congressional aides could see it this week. What are you expecting . Im expecting the same thing that ive been expecting congress to do that hasnt happened, is that we actually put forth some meaningful legislation thats actually going to address the issues. Senator Lindsey Graham is trying to put forth a bill too that will address the specific issues that could absolutely, positively impact this crisis. We cant sit on our hands anymore. We cant allow this crisis to continue to go. Something has to be done. So i support any legislation thats Going Forward that actually is meaningful legislation that will address this crisis. Maria i know that part of the issue is that the cbp officers are being forced to do other things and not even stay at their post because of all of these kids showing up who are sick, theyre taking babies to hospitals and checking on children and cleaning babies and all this stuff when in fact they should be at their post, securing the borders. Thats exactly right, maria. We have two elements. We have Border Patrol agents and officers from the office of field operations. All those resources are being pulled away from the port of entry and from the line to really do the humanitarian mission. We have individuals feeding babies, changing diapers, that are ordering baby formula, water and it goes on and on. Up to 50 of our resources are pulled off the line to do the humanitarian mission. Make no mistake, our country is less safe because of this crisis going on because that enables the cartels to take advantage of loopholes and wide open border, bad things, bad people are getting through every day. Maria mark, well keep watching the story. It is an important one. Coming up, Artificial Intelligence in your brain . The new Technology Elon musk says is the future of human interaction. The hunt for beer, busch makes an offer loyal customers cannot refuse. L theyll have to work to win the ultimate prize, after this. I bid my life on you. I bid my life, i bid my life when the hot sun hits your ice cream 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. 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. Hell cha poe will learn is fate today. Cheryl mexican drug lor lord l appear in court today where a judge is expected to sentence him to life behind bars. He was convicted in february in an epic Drug Trafficking case. Guzman accused of smuggling mountains of cocaine into the United States over a 25year period. He claims he was framed by traffickers working for the government. Well, elon musks updated nura link has been unveiled. It is focused on developing brain, machine interfaces. It includes flexible threads less likely to damage the brain than the materials currently used. It has been developing brain machine interfaces to connect humans and computers. Musk says the system has been tested on a monday that was able to control a computer with its brain. How about free beer for life . Well, it can happen. Youre going to need hiking boots. Busch not making this easy. Theyre hiding a popup bar in a National Forest for just one day this saturday. Clues are revealed on twitter. You get free merchandise. The winner gets a lifetime supply of beer. Heres the thing. Busch is going to plant 100 trees in our National Forest for each person who finds the popup shop. We should add, theres 15 10 10 National Forests across the country. Good luck. Maria beyond meat moves, the maker of the worlds first plant based burger expanding its reach with key connections. Weve got details after this. Shining so bright. Strawberry champagne on ice. Lucky for you thats what i like 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. Lets take a look at futures, higher this morning but really back and forth, not a lot of commitment. Dow futures up 5 points, s p up a fraction, nasdaq up 6 on top of a lower day yesterday, really the markets took a breather on the record run. Joining us now to talk about the markets and the economy, jason trenner. Thanks for joining us. Whats your take on the broader backdrop of the economy . The escb will do a meeting on july 25th. The fed, theres a 90 chance the fed lowers Interest Rates. The fed has to in my opinion, the fed has to ease now, given where Market Expectations are. It would be too big a shock to the system if they didnt. It highlights the idea that bob and i were talking before, its not a closed system. The fed really cant go it alone. It cant be an island. If you have 13 trillion negative yield, sovereign debt globally, theres a limit to how much the fed can tighten. It found that out the hard way twice in the last three years. The fed has to get more towards an international standard. My opinion, its too bad because usually Monetary Policy alone as a single tool creates a lot of distortions in the economy. Its not a good way to run the economy. Its good for financial assets. Maria have you seen anything like this . The economy is doing really well. 51year low in unemployment. And yet the fed has to cut rates because every other central bank in the world is cutting rates and the currency situation puts the u. S. At a disadvantage. I think some people point to 1995 and 1998 where the feds trying to get ahead of a potential slowdown. When you do think about this, if they are able to revive growth here, give us a little bit of a boost, and then also potentially ease the situation abroad, where do you put your money . What looks most attractive . The u. S. Has run the s p trading at a premium multiple. Look at europe. Theres a lot wrong over there. Asia easing should probably actually help the emerging markets. I tend to agree with the emerging markets call. I actually i have more of a bias towards cyclical as we go into 2020 for a variety of reasons. The president may stick the landing here in terms ofi dont know if this is part of the plan or whether its luck or looks like youre going to get a fed easing and a resolution of the trade tensions in the second half of this year. Maria you think so . I think so. Mainly because i think its politically expedient to have a resolution of the trade tensions. And so you set yourself up for a pretty Strong Economy going into the election next year. We wrote a piece a couple months ago saying it wasnt really a strong incentive for the president to resolve trade tensions earlier this year. Because i think there were concerns, i dont know this for a fact within the white house, the economy was peaking too early from a political point of view. If you have the economy you have now in october of next year, regardless of what you think of the president , its he would be tough to beat. Theres some things the pat has under his control and others he doesnt in regard to trade. Say for example the china trade war is quote, unquote resolved yet congress dente ac doesnt an usmca, what happens under a scenario like that. Its a very good question. It certainly doesnt help. I would say the president generally speaking has i think people tend to underestimate some of the executive powers the president has to make other deals, remove nontrade barriers, do other things. There are other things that are being talked about like indexing Capital Gains to inflation. I dont know if you heard that. Thats another thing that the administration has been talking about to lift equity prices. So its true, the president doesnt have complete control but probably has a little more control than people might give him credit for. And play a lot of games with cpi in general. Talking to north korea, open to talk to iran. There are a number of things to your point that i think hes got a number of levers in that cockpit of his that hell be able to make sure that things are moving in the right direction in november. As we were talking earlier, even if the rate comes down a quarter point, its still the most attractive rate globally with 13 trillion. Were still going to see a lot of foreign currency come in. We talked earlier about the long, short portfolio, shorts are gone, right. So back to the question, where do we put our money . No, listen, i like personally, i like cyclicals in the United States. Were overweight financials, industrials, technology stocks, we also have r. E. I. T. S in there. Thats more to get some income. But i think the most unloved part of the market is really the most cyclical part of the market. One of the problems when you have very low Interest Rates is that things with yield and things without yield become very expensive. So collectible art becomes very expensive and utilities trade at 22 times earnings, that are growing at 2 or 3 a year. Thats not particularly in my opinion, thats not particularly attractive. The places that are more attractive now are places like financialsers places that people dont like, industrials would be another one of them within the u. S. , i like that, i like emerging markets. Europe we were talking before. The idea that the ecb might be forced to buy equities, to me is a it might work. Certainly stocks would go up. To me, thats not the most compelling, not a great reason to buy european equities a side from a trade. Maria rick reeder was here last week and said ecb will be buying european equities, i want to buy european equities. Cap expending, has it come back . What do you think about cap expending . The problem with cap ex, theres certainly enough cash flow to go around. The problem is i think to be fair, the administration has created a problem in which all the pieces were there but then if you follow up the big tax cut thats very, very stimulating for cap ex with the trade war, its very difficult to have that confidence. We have someone here that would know, that its easier just to issue bonds and buy back stock. Maria a lot of uncertainty. Jason, great to see you. Thanks so much. Well be right back. Ize my insu. And as a fitness junkie, i customize everything, like my bike, and my calves. Liberty mutual customizes your Car Insurance, so you only pay for what you need. Liberty. Liberty. Liberty. Liberty. Award winning interface. Award winning design. Award winning engine. The volvo xc90. The most awarded luxury suv of the century. 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Ask your doctor about ibrance. The 1 prescribed fdaapproved oral Combination Treatment for hr her2 mbc. Your top stories right now 8 00 a. M. On the east coast, Big Technology under fire this morning, facebook proposed cryptocurrency came under attack yesterday on hill the conversation continues, as lawmakers demand more regulation of tech giants google, amazon feedback and apple questioning if they need to even be broken up, markets this morning are flat take a look at futures indicating a higher openings for the broader average better but backandforth negative and positive territory, dow futures 15u7 s p up tw points naz dentaling up 10 yesterday record run took a pause take a look at markets perform at the close dow down 23 s p down 10 points nasdaq lower at 35. In europe this morning, markets edging legislator to look ft 100 down 17 kang contact paris down 8 dax lower by 17 in asia overnight, trade fears drove markets down across the board a fractional move china trade uncertainty continuing, President Trump, saying that there is still a long way to go, before a deal happens between u. S. And china, commerce secretary wilbur ross joined me this morning saying u. S. Enforcement capability of any agreement made a big ticket to any deal. Bank of america beat on earnings and revenue take a look at stock this morning, profits rising on loan growth in premarket, down a faction 28. 95 ibm netflix higher reporting after the bell tonight as i can see, the numbers are higher going into those reports netflix up 1. 63 one half of 1 we bring the analysis coming up, before those numbers come out, then beyond meat lifting blue apron addition of substitute cooking up big numbers for the service, all those coming up joining me to break it down cfra vest strategist lindsey bell former home depot ceo chrysler ceo bob nardelli, former ohio state senator School Public Affairs Executive in residence, thanks for joining us this morning, good. Great two hours. Has been a lot happening because it is a busy period when earnings are coming out we are right now at the beginning of the Second Quarter reporting. Right numbers have been coming in pretty good 58 Companies Reported are to date have beat on bottom line 75 beneath on top line, sales estimates, by the way, into the quarter 3. 7 , top line growths was expectation low a bigs deceleration several quarters could be a strive. Analysts looking for a decline right. Looking for decline. The kwns. Right, so the consequence estimate for decline 2 i think we are going to come in better than that al come in better than that i think see 2 to 2 1 2 positive growth for the Second Quarter, Third Quarter has come down under one percentage point decline probable more pressure Fourth Quarter almost almost 7 Earnings Growth definitely out of whack. By the end of the year joining the conversation, georgia senator dade peer due here we will talk momentarily Equity International founder chairman real estate billionaire investor, host of Varney Company weighing in big hour we kick off with big technical on the hill this morning, executives are from apple amazon dwoog about facebook grilled in house and nat blake burman live with more. Reporter good morning to you as well not end there go here we go again for facebook later today as that company will get the chance, once again, to try to defend its plan to get into the cryptocurrency space head of kaleeb brother will appear before the House Financial Services yesterday, that project introduce you immense ingenuity share odd brown says he is concerned it could become next uncontrollable house fire for that a company. Facebook is dangerous. Now facebook might not intend to be dangerous but surely they dont respect the power of the technologies, they are playing with like a toddler has gotten hands with a book of matches facebook burned down the house over and over, and called every arson a learning experience. Reporter Senate Judiciary committee raised concerns with Major Tech Companies about issues of krens orship antitrust, google said that it competes for perps with yelp amazon travelosity facebook noted snapchat lawmakers were skeptical. Many of our competitors are sitting at this table with me unique chair unique position among those seated at the table. May not be identical competitor to facebook. I would with like to offline i would like to get a list from so you that i could do some shopping around myself. Reporter ed President Trump also through his support behind the idea from the billionaire tech investor peter thiel fbi and cia should investigate google to see whether or not that company has been infiltrated by chinese intelligence in a statement yesterday, google said it does not work with the Chinese Military. Blake burman with the latest there, joining me rights now georgia senator member of the Senate Budget bank Arms Services Committee David perdue senator always a pleasure to see you thanks for being here. Can you really say that flatout would you not work with Chinese Military when in fact the company is working with chinese companies, state owned companies, the Chinese Government, and isnt there number one priority the military . Well i lived over there maria i worked in china as one of your guests, plas nardelli last few decades i can tell you if you work with any Chinese Company you are working with Chinese Government they are so vertically integrated the data all things working on all vertically integrated with the government i dont think any u. S. Company can say they are not working with Chinese Government unless, they have done a study review to make sure they are not doing that. Especially since would be nardelli Chinese Military is the priority of the Chinese Government. Yeah. I mentioned Civil Military fusion a minute ago because any innovation that comes into the Chinese Government, first it is tested if it is going to work in the military because the main goal to be an number one superpower militarily. Any time you go to china you are going to beijing meeting with government first if you want to invest in a business create a business, the so for knows that for business,also, so it is it is totally transparent you are dealing with the government to deal with any business over there, whether we were making cars whether we are selling locomotives you are dealing with government. Once you than us senator you have to come up with another way to understand, how the u. S. Is going to work with china right . I mean like this trade deal the president commented a deal with china is is not any time soon, going to take a long time. In terms of getting this done, so how should we look at china . Given the fact that they want to beat us in everything including becoming number one superpower. If you look at shot of 2025 chinese mentality goes back to confucius, they dont tell you what theyre going to do unless they decided you dont have where withall or will to stop them why i have to give President Trump all the credit in the world first president last five to asking for a level Playing Field what President Trump is asking for stop stealing our technology stop forcing of technology complying with wto give us equal access stop the cyberwar, it is going to take a while to negotiate. Maria commerce secretary burr ross on a wilbur ross on early. Is it fair to say probably a long time before we see deals here what do you think secretary where are we . The fundamental question, now, though, is will they go back to the point where we were before they changed their mind and backtracked on some of the understoodings that had been reached. Do you have optimism encouragement that they are planning to stop theft of ip isnt that a big ticket item real quick. Big ticket items are structural he reforms theft of it unlevelPlaying Field procurement subsidies ul those but there is another in some ways even bigger issue, and that is what is the uas he he enforcement capability in the event that they violate the agreement. Right so the he enforcement has been talked about you mentioned that as well, senator, i got to get your take real quick before we leave trade conversation we want to get to the budget, do you think usmca go usmca is going to come to the floor. I certainly hope so it is a dramatic improvement over nafta, both sides if you went to the floor of the house we think would pass right now. Maria what if it doesnt do we have a plan b, sir. Not right now it is up to nangs unanimous speaker needs to put you the this on the floor American People really want this deal. So senator, i want to get your take right now, on what is happening with the budget negotiations between Speaker Pelosi, and treasury steak Steve Mnuchin i understand that you are not in favor of a potential one year continuing resolution. But it seems to me that we might be on a collision course here we have democrats that look to be unwilling thought he short term deal or cut spend heing we have obviously, end of the fiscal year looming september 30 and we have coming up against potential of to having raise debt ceiling what do you see happening here speaking of plan b, you know, there is a plan bif we cant get a deal on budget and try to avoid a cr . Thank you, that is the question of the day here. Look, i am very encouraged that secretary mnuchin and Speaker Pelosi are dealing oneonone a breakthrough a week ago they made great progress i am hopeful we are very close on numbers this is what it is at stake if we go to one year cr military is he devastated weve done it 186 times last 45 years since budget act put in place a draconian impact causes expenses military to go up dramatically so small drifrngs we have right now domestic spending military spending are small, in xiern, to the increased cost this will cause the military over next dade, here is the other thing that is ridiculous about this we are talking about 1. 3 trillion dollars, on the discretionary part of the budget we spend 4. 6 trillion in federal government, it is time that we start dealing with the mandatory expenses Social Security medicare medicaid, benefits for employees interest on debt up dramatically last two years. Senator lindsey bell here on that point the budget deficit we have had a deficit, for a very, very long time going back to the 1960s it has only been two times we have had a surplus it was late 60s, and then late 90s early 2000 doess deficit even matter at this point. Of course, it matters 22 trillion dollars there is 60 trillion dollars sovereign debt in the world we are 5 World Population we have onethird sovereign debt the i i think 20 o sovereign debt today negative Interest Rates you know a period of time with four ballot sheets of Central Banks the largest ever been, it is a very concerning time right now, so unchartered territory i can tell you bond markets are not going to continue to support this explosive growth in debt we have add 450 billion dollars interest in last the two years nine fed rate increases we can deal with it resources are here to do it we dont have to cut Social Security we can save Social Security trust fund goes to zero 14 years about medicares trust fund zero in seven years cant hide any longer that crisis is rushing at us like Freight Train thanks to the question. You think you can save them, your oped in times says u. S. Military is going to at a pay price if no budget deal is reached at a time all new threats across the world right. Exactly right china doesnt have this problem russia doesnt have this problem right now china spinning if you adjust for partee spending about same amount as we are on military we cant afford to do this to military last year first time in a decade maria that we actually got the governments funding for the military, without having to use a continuing resolution it causes expenses to go up dramatically, recap rationalization readiness destroys efforts that we are trying to rebuild the military right now. Great to have you on the Program Thanks so much senator david perdue in washington another restaurant getting green light on beyond meat burgers. Bill gates knocked off post as worlds seconds richest person in the world we tell you who snagged his spot coming up. Back in a minute. 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. Supreme Court Justice John Paul Stevens passed away cheryl that is right a statement from the Supreme Court says that stevens died of complications from a stroke. The navy veteran pointed by president gerald ford in 1975 he served through 2010, President Trump offered condolences, saying quote his passion for the law and for our country, will not soon be forgotten he was known for humbleness and fate in the law was 99 years old. Servers are watching, bank of america this morning after the Company Reported record Second Quarter earnings what a report net become climbed 1 Consumer Banking loans rose 6 adjusted revenue 23. 2 billion dollars ceo moynahan said they are seeing solid consumer activity across the board. There are the estimate and the actual numbers for bank of america. Well, billionaire boss is the worlds second richest better than the index showed jump in shares that pushed net worth to 108 billion dollars with a b, microsoft kuo founder bill gates by more than 00 million he added nearly 40 billion dollars to fortune this year alone, not bad maria. Big numbers. Good lord 10 billion i cant imagine. It could be somewhere sunny. Rise of the meatless menu beyond meat burgers launching a new restaurant nationwide where you can find them coming up prime problems, why amazon is following an annual shopping event next right here. 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. 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. But with sofi, you can get your credit cards right by consolidating your Credit Card Debt into one monthly payment. You can get your Interest Rate right by locking in a fixed low rate today. And you can get your money right. With sofi. Check your rate in 2 minutes or less. Get a nofee personal loan up to 100k. The number users canceling prime accounts spiking new data from Search Intelligence firm vooeflz people sign up to browse deals immediately cancel membership benefit jays oz posted a picture of himself on amazon spear after twoday event thanking prime members workers a great two days must have been, as these sale days become more prevalent your take object amazon. It is fascinating like having black friday in the middle of the year. I am not surprised when at home depot, we would sell a on the of tvs before super bowl bowl many didnt work after super bowl bowl would come back people would take advantage doesnt involve anything to sign up get deal why continue. All retailers are having to compete too. They are. Walmart target everyone jumping in on this deal, and kind of interesting because it is moving from sale more to the middle of the year instead of being Fourth Quarter as you know, heavy weighted towards revenue. Do we know much amazon prime profits actually make up for the totality o how much amazon makes general retail cycle people make so much holidays. Look at costco more on membership provides profitability for costco than the retail sale interesting model. Rise every meatless menu beyond meat burgers launching nearly 4,000 tim hortons restaurants across country as blue apron stock soared young partnership with beyond meat blue up a preexisting condition killed recently but up 35 on this deal, company up on on doing a deal with tim horton as you can see. The stock had a great day. The blue apron thing is interesting had to do a lot to kind of really make themselves relevant build Customer Base back up so doing all different deals, weigatchers to. The marketplace came to meal kits boxes one of the first out there now so much more competition, with played the, purple carrot specific for vegan vegetarian i dont think it surprising that blue apron as well as fastfood chains having to compete with casual restaurants that you know can deliver more healthy product i think more friendly to Consumer Trends so i think i am not a big user. Do you eat me neither. Veggie brurz i think some bru burgers less vegetable some chemicals. Calorie count the same, i like meatit i am going to have a biograp burger. Real estate when we come back awaiting june housing Building Permits data going to come out we will have numbers after the break get into real estate, netflix tech giant ibm set to roaster the bell everything you need to know coming up stay with us. And young and lovely, the girl from ep neima goes watching, goes ahh 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. 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. For plaque which builds up as you age and increases your risk for stroke and cardiovascular disease. 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In europe this morning the european indices are lower across the board as you see the ft 10000 down 14 cac quarante down nine dax lower by 20 points in asia overnight, trade fears drove markets there as well lower, as you can see fractional lose pretty much across the board. President trump, says there is still a long way to go for a deal, with china, commerce secretary wilbur ross telling me Structural Reforms are needed u. S. Enforcement capabilities important to have any deal. Across the finish line. Have building permittings out they are 1. 22 million that is below the 1. 300 million we were expecting. Once the stars legislator Lauren Simonetti has breaking news right now Housing Starts Building Permits. Those numbers weakerthanexpected Housing Starts coming in 1. 253 million for the month of june the expectation was for 1. 261 million so that is a decline of. 9 , monthovermonth you gave the permits number i will put perspective behind it, the expectation was 1. 3, 1. 22 Million Units number both for june weakerthanexpected is Housing Market going to continue october a drag on Economic Growth we are looking at a 30year fixedrate mortgage 3. 75 , the National Association of home birlgdz relatively confident the thinking as Mortgage Rates continue to move lower, maybe this will boost, some of the optimism we could be seeing in the however, market but right now this report worse than expected i am also seeing that the may numbers were revised looks like a little bit to a a little bit higher i will continue to look into that. Maria we will get back to you, as you see any new information thank you so much, no real impact on markets this morning, joining me right now to talk more about housing and real estate in yen he is equity gripe investment founder chairman real estate billionaire investor sam zell thanks for joining us what is your reaction i know just a month residential, but your take on what were seeing in the Housing Market today . I think that you know the Housing Market today reflects the fact that people are reticent to commit. Reticent to take longterm responsibilities. There are several you know particularly in this home affected by student debts other debts that makes their ability to you know purchase and put down a down payment more of a challenge having said that, 1. 22 versus 1. 3 is hardly anything worth jumping up and down about, i know you guys are in the business of making news. Maria yeah. That is the reality is overall not a disaster or success. What do you want to say about Office Market in terms of commercial real estate how would you characterize it. I think the Office Market today is in a very unique place. The creation of all these for lack of a better word temporary Office Facilities i think has weakened dramatically weakened the credit of the Office Building business. You know. The reason people invest in Office Building is because it gave them longterm credit exposure. And effectively were leasing and creating an enormous percentage of office space to noncredit tenants that sooner rather than later is going to be very difficult scenario to we will do. How do rates fit into all this mortgage reits raised 6. 2 billion dollars in equity last year according to journal, and youve got i know Mortgage Rates having come off the lows. Well, but the fact that they raised whatever it is xtrillion dollars in mortgages frankly, all that means is that their easily providing refinancing capability for the industry so i dont think looking at short exam but i also dont see any significant positive and i see a lot of supply coming out. A lot of supply coming on that is something to focus on ways your take braeld speaking of backdrop in terms of the economy we are having conversation every day about federal reserve, preparing for a rate cut two weeks, july 31st could be as high as 50 basis points recording to blackrock. Characterize the backdrop for us. Well, i think that you know were looking at an environment that is have you you you puzzling for everybody im very involved in real estate i am also involved in a lot of other areas i have been studying them looking for signs that the game is changing the game is over. Et cetera, et cetera. And not seeing it. Maria cant find it. We had a couple bad employment reports, then weve a good one. You know we have one of our o Companies Six months ago alerted me looks like future bookings going to be down. And i said aha, finally you know finally a sign then i had launch with ceo you know last week said oh everything is terrific that was a blip. So you know, everybody would like to know what the answer is. I am first one to say i dont know. What happens when fed cuts rates in two weeks. Nothing. Does sit stimulate the market any way does it stimulate Housing Market . No. I think that the biggest thing that cutting rates will do i think look rates are prepost rousely low. Right. How much room to do anything . What is hour in rates below inflation rate do . Not a lot of good stuff, generally speaking, i am not a big fan of very low rates i think very low rates discourages decision making, and, you know, our economy is predicated on a sense of urgency. Because we have a sense of urgency, when cost of capital is as low as it has been, that sense of urgency disappears and the overall economy doesnt jump quite frankly weakens. Good point sense of urgency moves people to action. Going to i can make a decision if you can afford not to make a decision, you got another option. Right. You can sent out cash. When cost of capital is 10, you look at watch every minimum say i better make a decision, the cost of capital is 2, i will wait till tomorrow. I have time. Time, and that is, you know, ripels out throughout the whole economy. Youve been allocating capital interesting ways away from real estate, in waste industry, about certainly international, so how do you allocate capital what can you tell viewers what you see for example in merging markets or in europe right now . Well, i have not been an investor in europe. For a long time. I am still not an investor in europe. You know. When you are an investor you are basically gamed future demand. Will there be demand nor what i am investing in. And maybe superior demand allowing price to go up. A hard time growing great cheese great wine great right. You know i mean i go on vacation wonderful. You are not putting more than there. I cant find anybody that ever wants to work. So weve stayed out of europe i mean, look at i think 30 some odd countries in eu 17 have negative demographic growth, if the number of people at the end of the year is less and more than half of the eu where is the demand going to come from. Good way of putting it. I dont know how to explain it any other way. Outside of europe, you know, the the siren of the merging markets is always there because it may not be profitable but there is growth. And every optimist believes if there is a growth you can figure a way to profitability i say my owner experience has been weve been very successful and very unsuccessful using the same standards for investment. So it is a challenge. But the fact that there is growth means that at least if you if you get the methodology right, youve got the engine to make that valuable. You invested in waste industry, tell me where growth is there. Well, i mean lets put it a different way. You know, the answer is that there may be lowering of demand in a lot of other areas but i think trash is probably at the bottom of the list. I think that you know we are very one of our largest provider of waste Energy Facilities i think in the world. Where were basically our raw material is trash. And the amount of trash decreasing and landfills being limited so hundreds of supply demand situation if face of all this you are looking for growth, and investing alongside that youve got economy feels good does this infighting going on in washington. You notice of. Yeah looks like 2020 upcoming election set up as capitalism versus socialism President Trump versus progressive democrats house voted a resolution condemning president recent tweetsu four republicans joining democratic colleagues singled out they referred to as squad wade in on a feud with President Trump relationship with House Speaker nancy pelosi watch this on a competitive network. I am dealing with biggest bully i ever had to deal with in my lifetime trying to push back on that trying to do the job that we all have been centered to do centered around people at home this is a distraction. Our teams are in communication, our chiefs should not it be a facetoface. I want to know if you are not the speaker what every right to sit down any moment any time with any of us. She is speaker of the house she can ask for a meeting to sit down with us for clarification. She nancy pelosi wants clarification instead four women are tweeting talking about it bringing all of the dirty laundry into the public. One of them was just talking about the fact that she has never been bullied much in whole life all i know is that these four women represent bullying. So i mean we got a situation that is relatively out of control. We have a president who i think would do better if he was a little more restrained. I think we have congressmen who are not showing respect to the office of the presidency. Forget about the fact may or may not agree with this perfect presidency the same group of people 10 years ago had there been same accusations about bill clinton as an example, where were they . There wasnt anybody the other side then i think we have a dysfunctional situation no right answer no wrong answer, Everybody Needs to stop focusing on being victims, and stop start focusing on how do we make america work better for everybody. As a businessman, looking for the right policies to move things forward, and actually see growth, the policy so far worked in terms of the economic policy. I think the economic policies have been have proud produced very positive results despite noise. Squad wont admit that wants medicare for all green new deal, et cetera. Theyve proposed a whole bunch of ideas how none of those have come with a Balance Sheet explaining how they are going to finance it. So until somebody comes up with ideas that are financeable, potentially viable, it is hard other than if you are a a reporter waste a lot of time on those subjects. Have you decided as businessperson who you are getting behind in 2020 election. No. I dont it just particular stage not high on my list of things i need to worry about. We will see this is the socialist conversation is pretty scary. Margaret thatcher said when asked when socialism will end her answer was when you run out of other peoples money. Sam zell special guest on wall street this weekend well be right back stay with us. Maria welcome back, do show you you tweet President Trump put out just wrote this, big rally tonight in greenville North Carolina great things including the fact our economy is the best it has ever been. Best employment stock market numbers i am talking about people who love and hate our country mostly lot of tonight at 7 confirm the president has another rally in greenville North Carolina. A survey shedding right on financial of millennials host of Varney Company stuart tourist to weigh in good morning. Maria i am not going on a rant about younger generation, i will never say get off my lawn, i simply report this to you. Okay. Td mere tayed says 20 of millennials expect to be financially reliant on parents into their 30s. Okay. How about that . No, i am not going to say young strz not youngsters i understand loans around your neck hard to get a mortgage do i understand my point is, now we can understand why free stuff is so attractive to millennial generation, after all if you are getting free stuff from parents way into 30s why dont you get Free College Free medical care from uncle bernie understand why attractive attitude toward money on part of parents influenced millennials, most parents in the survey found it embarrassing if their children stay on the parental payroll past age of 27 so it is our fault that is what i am saying. All free stuff any conversation about who will pay for it . , of course, not, good lord do you ask parents when when they got money from when they donate to you you dont ask about that. Maria there you go, i know you have a lot more 10 minutes we will see you then he Varney Company top of the hour 9 00 a. M. Eastern after mornings with maria jane stuart next streaming giant netflix tech giant ibm roaster the bell tonight live to the Trading Floor for a preview of the numbers, tell you what to look out for when released back in a minute. You know 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. All right brad, once again i have revolutionized the songwriting process. Oh, here we go. I know i cant play an instrument, but this. This is my forte. Obviously, for Auto Insurance, weve got the wheel route. Obviously. Retirement, were going with a longterm play. Makes sense. Pet insurance, wait, let me guess. Flea flicker. Yes howd you know . Studying my playbook . Yeah, actually. Thats it. Im calling kohler about their walkin bath. [ sigh ] not gonna happen. My name is ken. How may i help you . Hi, im calling about kohlers walkin bath. Excellent happy to help. Huh . Hold one moment please. [ finger snaps ] hmm. The kohler walkin bath features an extrawide opening and a low stepin at three inches, which is 25 to 60 lower than some leading competitors. The bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. Kohler is an expert in bathing, so you can count on a deep soaking experience. Are you seeing this . The kohler walkin bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. Everything is installed in as little as a day by a kohlercertified installe. And its made by kohler americas leading plumbing brand. We need this bath. Yes. Yes you do. A kohler walkin bath provides independence with peace of min. Maria welcome back. Netflix is the story were talking about tomorrow. Its reporting earnings after the bell tonight. Gerri willis on the floor of the New York Stock Exchange with the details. Good morning to you. Gerri netflix shares trading higher here. Expectations for earnings, 56 cents a share revenue expected to come in at 4. 93 billion. That will be after the bell tonight. The big worry here, what everybody is watching, of course, are subscribers. The company has already said they will have five million new subscribers. That is a slowdown and a big worry, of course, here is that the company is losing ground against an increasingly long list of competitors including disney, hulu, amazon prime, you name it, apple, warner, nbc universal. Lots of people coming into that category. Meanwhile, ibm will also be out after the bell. Expecting to come in at 3. 07 a share, 19. 16 billion in revenue. Thats the expectation. Shares are higher here. They have had several quarters of declining revenue. Watch for that revenue line. That is a critical thing. The company is betting on that red hat acquisition to fuel results. They already have a multi billion dollar deal with at t after the red hat acquisition. We will be watching how well they do in the cloud. Back to you. Maria thank you so much. Gerri willis there. Speaking of netflix, the streaming wars are on and your sons have a new series debuting on amazon. They do. Thank you, maria. I will be premiering it at comiccon friday and saturday night. We have a panel also but more importantly, it will also open up on amazon prime friday night. We are excited about being with jeff on amazon prime, streaming content. Maria your sons are directors, michael and tim nardeli . Directors, actors, editors. Maria fantastic. You must be very proud. Very proud of both boys. Maria the series is called dark web. Have you seen it . I have. Its an eightpart episode. If you want to binge, you can do that starting friday night. Its a wonderful series. Obviously im very, very proud of both sons. Maria isnt that great. We can look at the streaming wars from your side which is your sons side and that is as content creators. Yes. Maria we will be watching. Check it out. When we come back, final thoughts. Stay with us. Dear tech, lets talk. You blaze trails. But you have the power to do so much more. Lets not just develop apps, lets develop apps that help save lives. Lets make open Source Software the standard. Lets create new plastics that are highly recyclable. Its going to take input from everyone. So lets do it all, together. Lets expect more from technology. Lets put smart to work. Call j. G. Wentworth phone ringing j. G. Wentworth, how can i help you get cash . I want to pay off my debt and move into my own place. But i need cash now to do it. Do you get regular payments from an Insurance Company . Yes. In exchange for some or all of your future payments, we give you a lump sum of cash now. Call now, and youll also get 25 for receiving a quote. announcer call 877cashnow. 877cashnow. Thats 877cashnow. Content on their endless quest, to nowhere. S, run hopelessly in their cage. But perhaps this year, a more exhilarating endeavor awaits. Defy the laws of human nature,at the summer of audi sales event. Get exceptional offers now. Keith used to be great to roadtrip with. But since he bought his house. Are you going 45 . Uh, yes. 55 is a suggestion. Its kind of like driving with his dad. What a sign, huh . Terry, can you take a selfie of me . Take a selfie of you . Yeah. Can you make it look like im holding it . He did show us how to bundle home and auto at progressive. Com and save a bunch of money. Oh, a plaque. He later navigated northward, leaving. Progressive cant protect you from becoming your parents. But we can protect your home and auto when you bundle with us. Maria welcome back. Its going to be a lower opening this morning. Final thoughts from this allstar panel. Lindsey . Im looking for second half outlooks because i think theres going to be some pressure as these Companies Report and we get through Second Quarter earnings. I think q2 will be great. Second half, be wary. Maria all about the guidance. Bob . Great content today. A lot of guests talking about a Strong Economy, very encouraging to all of us, particularly consumers, and investors. Maria incredible how many people still see a very Strong Economy even with the rate cut happening in two weeks. Lot of great work by the administration. Maria yeah. I want to say thank you for the opportunity to spend some time, spend three hours with all of you. I have learned a lot in the last three hours and certainly will be continuing to keep my eye peeled on the trade issues in washington. Maria thats what we are concentrating on as well. Thanks very much for joining us. Have a great day. Varney Company Begins right now. Stuart yes, it does. Good morning, maria. Good morning, everyone. Okay. Headlinedriven market, here are the headlines. Profits are coming in strong. Netflix reports later today and that could move the whole tech sector. Number two, when fed chair powell said he would keep the economy growing, he moved the market up. Three, when the president said we have a long way to go as far as tariffs with china are concerned, he moved the market down. Four, mr. Trump may do it again tonight. Hes holding a rally in North Carolina. He knows who knows what he will say, but he will fire up the crowd. He will make a head line, guaranteed. Number five, the attack on big tech continues. Taxes and