Transcripts For FBC Mornings With Maria Bartiromo 20240714

Mornings with maria will maria coming up exclusive interview with kentucky senator Mitch Mcconnell, mill mcb, mcburman. Joining the conversation jackie, and tom beven and pwc partner mitch roschelle. Good morning. Good morning. According to wall street journal it was huwaei and issues that kept talks to a halt. Im not surprised, their only leverage right now so keep bringing it in because if you couple those things together you cant move forward and the president wants to move forward as quick as he can. Maria the president discussing wide range of issues including progressive party, the four congresswoman, he talked about the squad, he talked about 2020 and the economy. Leaders coming from other countries, prime ministers, president s, kings, queens, dictators, sometimes i hate to say it dictators and they all start off by saying, mr. President , id like to congratulate you on the incredible economy that youve created, the greatest anywhere in the world by far. [cheers and applause] the leading voices of the Democrat Party are leftwing extremists who reject everything our nation stands for, omar has a history of launching vicious antisemitic screams. And tlaib used the fword to describe presidency and your president , thats not nice, even for me. Representative alexandria ocasiocortez. Shes conducted outrageous attacks against men and women of Law Enforcement, so representative ayana pressley, she thinks that people with the same with the skin color all need to think the same. Tonight i have a message for hateif i would extremists who are constantly trying to tear our country down, if they dont like it, let them leave, let them leave. [cheers and applause] fi any 2020 democrat is a vote for radical socialism and the destruction of the American Dream, frankly, the destruction of our country. Maria crowd is getting loud. Whether it was or whether it wasnt, amazing has this has blossomed in framework, hes leaning into it, the democrats and the squad are leaning it. Its a battleground, trump reframed it and to go back, if you dont like america you can leave, that issue is going to resinate with a lot of folks around the country, its now an issue, about socialism versus capitalism but also patriotism, do you love this country and trump feels this is a winner for him. And we will see more and more as the Campaign Goes on. Maria republican who is trying to unseat aoc, businesswoman and jamaican immigrant wanting to unbeat aoc in her own district. Does she have a shot . Well, no, tough district for republicans to run in, again, aoc won her primary with 14 of the vote, shell get a challenger now but its a heavily democratic district. The issue can this candidate bring up the amazon situation and rally people in new york about all those lost jobs. Maria yeah. Because aoc has dna at the crime scene in terms of amazon taking off. Maria good point. All those jobs. A lot of overlapping the congressional district. Maria theres netflix earnings, the stock is down big this morning, down 10 and a half percent, lost significant number of subscribers in the u. S. First time in nearly decade, blaming downward trend of secondquarter content, the stock is coming down. Im not surprised by this, there was going to be point where there was many competition in the field too, the whole idea of cutting the cord was that your bill should be cheaper, if youre subscribing to every service, they will not end up being cheaper, they are going for content and theres a lot more to choose from. Maria you the behemoth like a disney coming out and putting content from netflix. Thats certainly an issue and users will see where am i getting the most content for value that im getting, they will switch and adjust bills that way. Viewers have a finite wallet that they are willing to pay for subscriptions and netflix just content, all the other stuff on broadcast or cable, so youre competing for that and then you also have satellite radio, you have music streaming services, how much americans and people around the world want to pay and i think they are bumping up against saturation point. Maria youre right, markets are down this morning, china trade story hitting road block, at odds over Chinese Telecom giant huawei, buyer of homes drops, you know, ive had andy a number of times, chief Security Officer at huawei, we are not an arm of the Chinese Government. If youre not an arm of Chinese Government why is china so interested, why is this a major point . Look at all the chip makers who do business with them who are actually on the sidelines right now, its sort of a bigger issue than just that one company because it runs across the entire ecosystem of chips and semiconductors and the like. Mike pompeo, the u. S. Governments position that they are a arm and this is a National Security threat. We will see how the Commerce Department works through licenses, exemptions, if they can do enough on the limited bases to to get back on track. Maria Chinese Government can decide, well, lets, dictate what goes on, wherever the huawei chips are, they have the ability to do that. Weve known that there are have been open doors, back doors, they are called, in a number of huawei deals. Theyre just never going step up to the plate and add mid to whats going on and thats part of the problem. Maria we will talk about that, plus votes on the floor, congress bringing two major debates to the table, sun concerning contempt and the other articles of impeachment, the result this is morning, summer is heating up, we have the fan right here on the set, americans bracing for tripledigit weekend, when will it break later this hour. Stay with us. Most people think a button is just a button. 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While taking eliquis, you may bruise more easily and it may take longer than usual for any bleeding to stop. Seek immediate medical care for sudden sign of bleeding, like unusual bruising. Eliquis may increase your bleeding risk if you take certain medicines. Tell your doctor about all planned medical or dental procedures. Eliquis, the number one cardiologistprescribed blood thinner. Ask your doctor if eliquis is whats next for you. Maria welcome back, House Democrats putting more pressure on Trump Administration with controversial vote, Cheryl Casone in details, cheryl. Cheryl thats right, secretary ross was on with maria yesterday here is what he said. Its just more political theater and doesnt really have any substance and basis, we produce 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. Maria well, Justice Department released statement states quote, this is more than a political stunt. Notorious drug lord could pay for u. S. Border wall, u. S. Judge ordered Joaquin Chapo guzman to spend life in most secure prison in colorado, hand over nearly 13 billion of his drug money to the United States, well, republican senator ted cruz and ben sasse propose that that cash is used to fund border wall. The bill is called the el chapo act. Heat of demonstrations and protests, police fired teargas, protestors were heading to governors mansion. Demonstrators are calling for resignation for governor Ricardo Rosello of private messages in which he used homophobic and has misogynistic language. Incredible story. Look, Drug Trafficking is part of the problem, if we can use that money in a positive way i think it certainly will happy, we chuck a little bit. Maria good idea. Absolutely. Maria what else should you use that money for . For a lot of different things, certainly securing is border is what the government wants to do. Maria whats Holding Things up later this hour, wait till you see what the wall street journal is reporting, flame on, spacex newest spacecraft malfunctions on takeoff, amaidsing video when we come back. I switched to liberty mutual, because they let me 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. Cant see what it is yet. Re . What is that . Thats a blazer . Thats a chevy blazer . Aww, this is dope. This thing is beautiful. I love the lights. Oh man, its got a mean face on it. It looks like a piece of candy. Look at the interior. This is nice. This is my sexy mom car. I would feel like a cool dad. Its just really chic. I love this thing. Its gorgeous. I would pull up in this in a heartbeat. I want one of these. That is sharp. The allnew chevy blazer. Speaks for itself. I dont know who they got to design this but give them a cookie and a star. We like drip coffee, layovers and waiting on hold. What we dont like is relying on fancy technology for help. Snail mail we were invited to a y2k party. Uh, didnt that happen, like, 20 years ago . Oh, look, karolyn, weve got a mathematician on our hands check it out now you can schedule a callback or reschedule an appointment, even on nights and weekends. Todays xfinity service. Simple. Easy. Awesome. Id rather not. Maria welcome back, futures are lower this morning, take a look, dow futures indicating decline of better of 40 points at the tart of trading, s p futures down 3, and nasdaq lower by 18, nervousnesses over china story, the president talking about trade deficit with china and taking a shot at former Vice President joe biden at rally in North Carolina, watch. The European Union is terrible to us on trade, frankly they are as tough or tougher than china. With china, 507 billion, many, many years theyve been taking and guys like biden, we would stop that, he was there for 8 years, no, trump is stopping it. [cheers and applause] maria wall street journal reporting that u. S. China trade talks are stuck, stalled over questions of huawei, spoke with andy about connection. We have spoken about the relationship between huawei and government, why would the Chinese Government want ban lifted so much . We do not want or we do not speak for the Chinese Government and they dont speak for us. We still welcome the opportunity to talk directly with u. S. Government to work out these proven riskmitigation measures. Maria joining right now jon hilsenrath, we want this particular data, send it asap under law in china they have to do so. Right, thats at the heart of what is holding u. S. Trade talks with china right now. U. S. National Security Officials want huawei to be separate issue, not have anything to do with trade negotiations, they see it as National Security issue and not trade issue, the president when he met with president xi a month or so ago agreed that the u. S. Would resume some to huawei and we are kind of stuck right now in negotiation offense who can negotiations of who can sell to huawei. Maria you wonder if this will play out and play into markets, do we need to see some resolution here . What is the resolution, President Trump and secretary pompeo have been clear regarding huawei. The markets are getting the idea that this is will be a long and drawnout process. Its striking to me what happened when the president talked about putting tariffs on mexico a couple of months ago, the markets reeled, people started worrying about the u. S. Economy slowing down, the Federal Reserve changes view on Interest Rates, youre not seeing that kind of reaction to these simmering trade disputes with china. I think when it comes to china we are in it for the long haul and investors are getting used to that idea. Maria let me turn to the fed, the fed reported that the u. S. Economy grew at modest rate in recent weeks with ongoing trade uncertainty, jon, are you looking for quarter point or half on july 31 . Looks like it would be a quarter point, some of the argument for cutting rates has dissipated in the last few weeks, the economy looks pretty strong, the Consumer Spending data that have come out have been robust. If the fed was or worried about the economy significantly slowing, thats got to be off the table, the main arguments for the fed cutting rates, one is we are talking about all of the time, the inverted yield curve, longterm Interest Rates, lower than shortterm Interest Rates, thats the sign of low inflation and slowdown in the economy and the fed wants to reverse that, so i think thats one of the main reasons why theyll probably do something in july but its going to be a trim, its not going to be a full shave. Jon, good morning, its mitch, one of the things that i was really waiting for hot anticipation what came out yesterday, i mean, you look at it and looks good indication, it really pans in the country, it was generally optimistic, whats your take on whether or not theres nuggets because chairman powell referenced waiting for it as well but thats going to influence any decisions on their part. Jon yeah, i guess you and jay powell were in anticipation. I have nothing else to do maria you have to get out a little more. Its hot out and i like to stay in the office. [laughter] you know, i think it was a positive report, the fed does look at anecdotal comments on the economy, it supports the idea that, you know, we are not hitting the wall. Growth is slowing this year, you know, we are in the 3 terrain last year, looks like we are closer to 2 this year, but, you know, as i said the consumer is going pretty strong. Business investment, you know, might have lost a little bit of an edge because of all of the trade uncertainties because, you know, this month the economy, this expansion has become the longest expansion on record, i mean, its just nothing in the data that says thats about to end and thats an important issue of the fed, jay powell and here, you know, his interests are aligned with President Trumps, he said his Main Objective right now is to keep this expansion going as long as it can and the data suggests that this expansion is still going and, you know, for the president , thats the most important thing too if he wants to get reelected, he has to keep growth going and keep tun employment rate low. You know, coming back to Interest Rates, i think the fed might trim but its just to steady things, theyre not in any kind of emergency mode right now. And theyre not in emergency mode, jon, im jackie, is the market going to react really negatively . Well, you know, i think its Market Conditions that are really driving the fed right now, so i agree with you, i think that jay powell has on several occasions really gotten expectations up for something in july if he doesnt follow through, stocks will probably sell off, you know, and then focused on the bond market, theres this puzzle, why are longterm rates lower than shortterm Interest Rates, in the past thats been a dangerous signal and they want to work their way out of that. Its the easiest way to do that. Jon, tom, back to President Trump and china, he raised the prospect of slapping additional 325 billion in tariffs on china, what what are the prospects of that, how real is that and what might that do . Jon well, right now it looks like they are in a stalemate, you know, theyre talking about talking but they are not really getting anywhere in part because of this hua, its effective way to fight back against the high niece and other trade partners and see it as source of revenue at a time when we are heading toward trillion dollar deficits, so i think he is prepared to go in and raise them if he doesnt see the kind of progress that he wants, right now we are not seeing that progress. Maria all right, we will leave it there, jon, great to talk to you. Jon hilsenrath, journal there joining us, coming up face app, the popular russian app could be security risk, urging people not to use it. Business of the cloud, bill joins me next to discuss Technology Growth and trade, exclusive on earnings coming up. 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. 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. But how do i know if im im getting a good deal . I tell truecar my zip and which car i want and truecar shows the range of prices people in my area actually paid for the same car so i know if im getting a great price. This is how car buying was always meant to be. This is truecar. Maria welcome back good thursdays morning, thank you so much for joining, im Maria Bartiromo, thursday july 18, top stories right now before 6 30 a. M. On the east coast, earn physician focus this morning, United Healthcare raising forecast after beating expectations, Morgan Stanley, next one to watch. Netflix losing subscribers in the u. S. , this is a first decline in the u. S. In nearly a decade. We are looking at netflix stock trading down almost 11 this morning, just about 11 , futures meanwhile indicating a lower opening for broader average, take a look at the dow, dow futures down 40 and nasdaq by 17, stock fell as earning season exposed weakness in outlook for some companies, people are wondering what growth looks like in the second half of the year. Industrial and Energy Stocks were biggest drags yesterday, yesterday the s p was down about 20 and nasdaq lower by 37. Global market this is morning look like this, ftse down 30 points and cac quarante lower by 20 and dax index down 32. In asia overnight, nikkei average in japan down 2 overall, shanghai composite better than 1 . South Korea Central Bank lowering Interest Rates for the first time in 3 years cutting growth forecast for the year as well, bracing for a dangerous heat waves, many areas of the United States to hit triple digits this weekend, we have the forecast coming up and then this, face app security concerns, lawmakers are calling for investigation into the popular russian developed app, concerns about what happens to your data, setback for spacex to tell you about, the ship bursting into flames during testing, all the stories coming up this morning. First toptory this half an hour, the big business of technology and cloud computing, the Company Reported revenue of 7. 4 billion and cloud revenue of 1. 93 billion and up 40 from a year earlier, joining me right now ceo, bill mcburman. Pleasure to see you. Good morning. Maria characterize the quarter for us, i know the Cloud Business is important at sap and important in general. Cloud was up 40 , Cloud Business was in double digits, our operating income and total revenue was up in double digits, we like the triple doubles when things come in strong, overall the business is in really good shape and we are excited to have a command performance in the back end of the year. Maria what are you expecting for second half, tall expectation that things will slow down quite a bit. Interesting, i was actually in china in a meeting with lee when a whole g20 was going on in japan and clearly in asia you do see some supply chain dislocation, so, for example, companies that are moving their manufacturing out of china to places like vietnam, malaysia and even mexico to avoid this tariff scenario, so there is some global trade dislocation out there and what we see at sap, when that happens, you can have some decisions postponed as Decision Makers say, wow, i have to build somewhere else. I have different supply chain manufacturing and the whole value chain comes into material, we tend to do Better Believe it or not in time of changes and uncertainty, we are looking for a very strong second half. Maria have you seen an impact on the tariff situation on your company . Our experienced has not experienced it, its our customers that are experiencing it and primarily you are seeing this in china and other parts of asia as the business is now moving from china in some regards, so we have like 70 million businesses, you have to keep in mind in china, but if Large Companies start moving manufacturing and changing the supply chains to avoid the tariffs and they are going to other places, that is going to form a very interesting dynamic in asia, it will be a Software Opportunity for us but also be challenging, i think, on china and in the region in general, theyll be a lot of change. Maria so what are you expecting in terms of growth overall, i mean, europe as had hard time generating any growth, most valuable in europe, what are you seeing in europe right now. Our business is unique, we have a very unique brand position in europe and Digital Transformation is at a fever pitch, if you talk to any ceo, theyre very, very careful about how they invest, but they know they have to invest in Digital Transformation. So in europe, what youre seeing now is not just the idea of operating the companies better, they know they have to connect with experiences, so how do i connect my employees, my products to my customers and how do i create mass customerrization at scale so i can offer services to my consumers otherwise you will lose market share and not grow. We have new solution and new innovations to accommodate that in my part of the world. Thats why we are growing double digits in europe and nobody is. Maria do you see impact of the slowdown in europe from your customers . How are bookings looking in the future . As you look at bookings, pipeline for Software Business or pipeline for Cloud Business, we rigorously manage this, the pipelines are excellent and thats why i have, in a resalute way, 4year guidance and more than ever our customers need sap to lead them through the change. Maria youre collaborating with microsoft and adobe to take on sales force, you have microsoft partnering up, how is this impacting in. Yeah, well, we have a way of handling our own business, so we have the sap cloud franchise so we can put everything we do in the cloud and we can offer our customers whiteglove service and we will do it all for them but we recognize that its an open ecosystem, so if our customers are teaming up with microsoft, thats great, we are teamed up with microsoft, we have embraced the hyperscale model and the sap platform is the connecting issue that puts all of this together, im happy if microsoft and adobe team up with sap, im also happy to partner if thats in the interest of the customer. We will get good business, good partnerships and continue to grow the company in double digits in the second half and beyond. Maria meanwhile you have amazon. Yeah. Aws also wanting a piece of all of it. Absolutely, thats why we have to be open and embrace the hyperscalers and the system, as the marketleading software company, we have to go where the customer wants us to go and i care deeply about our shareholders and making sure we deliver our promises, thats why today im super excited to get in front of our whole company and rev it all up, command performance. Maria you are so good at that, you get everybody excited, im sure its going to be great. Let me ask you about management portfolio sap becoming recent addition to active investor, how does that change your thinking in terms of how the company goes now . Its a very fine investor and adviser and im excited to have them into the sap stock. What elliot wanted and what all of our investors want is they want sap to take the operating margin performance to the company and improve it 500 basis points between now and 2023. So elliot management like many other investors wanted that and im going to make sure that they get it. So that combine with cloud Gross Margins which is another reason, maria, that we are interested in embracing the hyperscalers because we can with their infrastructure provide higher margin performance to our shareholders, so this embraced strategy actually drives margins and delivers greater value for shareholder. Maria are you able to take customers from oracle and increase market share . Its so easy, one of the things we did this quarter we improved cloud Gross Margins by 4 percentage points, one of the ways we did that is by getting our company off oracle. No secret that we made bold moves in realm and the companies that we acquired run oracle, taking that out, 21st century in and as we do that we will take a 100 million in costs out of the equation, not only run better, not only help customers but do it at much lower costs. Maria thats what all the analysts are talking about because of acquisitions youre able to take market share from oracle and grow margins like you just said. Look, s4hana, signature system in Economy Today is ripping everybody in the entire software industry, if we could do that really well, we will continue the growth trajectory and improve on margins as we said we would and have a command performance in the second half and beyond. Sap is one of those unique rare franchises that will continue to grow and grow and grow. Maria let me ask you about technology and overall regulation, amazon facing antitrust investigation in the e, over the companys role in selling products and marketplace operations, executives from facebook, google, amazon, apple faced grilling on capitol hill this week and last week i spoke about President Trump and asked him about regulating the Technology Industry and i thought that was interesting what he said, you will probably see legislation before competition, listen to this. Twitter is is just terrible what they do, ive had so many people come to me, sir, i cant join you on twitter. 100 . Maria would you rather see competition or legislation you may need legislation in order to create competition. Maria do you want to see legislation for tech, how do you see this, this bigger hand from government now . Well, i believe strongly that you have to protect the consumers and the privacy of their data which is why sap has always said, the data is the customers data, its not saps data. We were the First Company in the world to be recognized by British Institute for protecting data of customers and their consumers, we happen to be the best in the world at it. Maria is it going to impact you if you see actual regulation . Absolutely not. In fact, we are one of the dynamic leaders, you know, one of our great partner is am and tim cook and i were on the statementing together recently in orlando saying this clearly, the data is the customers data, you to protect the data, so we have been doing that from the very beginning, companies that also do that are our friends and our partners and i do think this is going to become one of the really important things in the new economy. Maria you are expecting regulation of some sort . Im saying its entirely possible and its understandable, you to make sure that the consumer is protected, theres no doubt about that, you know, we have a very big focus as you know on experience management and this idea of an omni channel, ecommerce world and the data of all consumers, whether its social interactions or actually transactional volume as they buy things, you know, Companies Need to understand that data is the consumers, not yours, only can you use that if youre given the permission to do do and in the best interest of the consumer and not you, im all in favor of doing the right thing for customers and their consumers. Maria all right, we will leave it there. I know that we stared about stimulus in europe, you want to see fed rate cut in 2 weeks . Look, i do think theres a lot of attention right now on doing the rate cut and i would like to see it because the American Economy is doing very well and i dont think anybody can argue that, but we also have a very, very interesting trade environment right now so why not pump it up a little bit and give business infusion of confidence and drive shareholder value. Im in for it. Maria thank you, ceo at sap. Coming up it is hot, hot, hot, millions of americans braising for weekend and how to beat the heat, deploying baby shark. Maria take a bite out of crime, details when we come back. Award winning interface. Award winning design. Award winning engine. The volvo xc90. The most awarded luxury suv of the century. While managing your type 2 diabetes why think about your heart . Lower a1c helps, but type 2 diabetes still increases my risk of a fatal cardiovascular event. And thats why theres jardiance the first type 2 diabetes pill that offers a lifesaving cardiovascular benefit for adults who also have known heart disease. It can significantly reduce my risk of dying from a cardiovascular event. And it lowers my a1c, with diet and exercise. Jardiance can cause serious side effects including dehydration, genital yeast or urinary tract infections, and sudden kidney problems. Ketoacidosis is a serious side effect that may be fatal. A rare, but lifethreatening bacterial infection in the skin of the perineum could occur. Stop taking jardiance and call your doctor right away if you have symptoms of this bacterial infection, ketoacidosis, or an allergic reaction. Do not take jardiance if you are on dialysis or have severe kidney problems. Taking jardiance with a sulfonylurea or insulin may cause low blood sugar. So, now what do you think . While my a1c is important, theres so much more to think about. Ask your doctor about jardiance today. Theres so much more to think about. 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. 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. Maria welcome back, breaking news right now, Iranian State television reporting that the Iran Revolutionary guard has seized a foreign tanker with 12 crew members accused of smuggling oil, hitting the tape now, the report says that fuel was being smuggled by iranians to foreign customers and was intercepted in the straits of hormuz. Senate minority leader Chuck Schumer seeing red over face app. Popular app, senator schumer calling on fbi which app makes people look older or younger, its really gone viral. The Russian Company developed face app and denied that transfer to russia, we shall see. United health raised Earnings Guidance for the entire year 2019 and also reported better than expected earnings, beat on both top and bottom line, stock up as you can see 1 and a quarter percent on premarket, ibms latest results beating expectation but revenue slipped for fourth straight quarter, you can see a little bit of pressure, also this, San Francisco making changes, they have pulled proposed ipo from november ballot, the measure would have increased taxes on companies that enter the Public Market like uber, like lyft, those companies are based in San Francisco, opponents, broad and would hit competition in the city. San francisco with a similar tax measure in 2020 ballot, stay tune, not over. Spacex setback in quest to send humans into space, erupted into a fire ball during testing, the rocket was a prototype of much larger one that spacex is hoping to use to send people to mars, right now they are investigating the cause of the very fiery explosion as you can see on your screen, maria. Maria all right, cheryl, keep watching that, breaking news from iran, we are waiting on Morgan Stanley, big name reporting, the numbers as soon as they hit the tape and reaction, get the fan out, summer is heating up, millions of americans bracing fortriple digit weather weekend, when will this break, later this hour, stay with us. Cant see what it is yet. Re . What is that . Thats a blazer . Thats a chevy blazer . Aww, this is dope. This thing is beautiful. I love the lights. Oh man, its got a mean face on it. It looks like a piece of candy. Look at the interior. This is nice. This is my sexy mom car. I would feel like a cool dad. Its just really chic. I love this thing. Its gorgeous. I would pull up in this in a heartbeat. I want one of these. That is sharp. The allnew chevy blazer. Speaks for itself. I dont know who they got to design this but give them a cookie and a star. 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, headline as Cross America this morning, Atlanta Journal constitution reports deeper findings, glitch with thousands of drivers with suspended licenses, computer with burp in system, unsuspected drivers out on the road with suspended licenses, admitting 2,000 old and previously records were sent to state by accident, not every case resulted in drivers license suspension. San francisco chronical writes, berkeley becomes the first u. S. City to ban natural gas in new homes, the City Council Unanimously vote to go okay the move to ban gas from new lowrise residential buildings, that begins january 1. The natural gas ordinance requires all new singlefamily homes, town homeses and small apartment buildings to have electric infrastructure. And south florida sun, city deploys continuous loop of baby shark in hopes of deterring homeless from camping in and out water front park. Maria ask any parent this may very well do the trick. Baby shark will keep the homeless away. They admit this is temporary fix and working on permanent solution. Its funny. [laughter] its going to work. Maria yeah. San francisco has gotten really incredible in terms of the homelessness there, by the way. Wow, hot and dangerous temperatures moving across the country this morning, fox news meteorologist janice dean live in weather center, give us the news. Its going to be hot for millions of people today through the weekend where we have heat warnings for millions of folks where its going to feel well over 101degrees for the next several days, dangerous heat, we want to make sure everyone is taking care of everyone, kids, bring your pets inside, take care of the elderly, temperatures well into the 90s for all of the big cities including new york city, including boston, these are high temperatures but with the heat index its going to feel well over 100degrees for so many people, so here is today across the central u. S. , 108, 110degrees over portions of the midwest and the central u. S. And in moving up towards the east coast this weekend, thats where we are really going to see the heat across new york city up towards boston, even new england, that could cause power outage concerns, know where your cooling centers are, all right, thats a big deal, lightweight clothing, lightcolored clothing, im telling people to stay indoors, airconditioning, drink plenty of water, dont leave kids or pets in hot car, dangerous, potentially deadly, theres forecast today, 94 in houston, 85 in new york but the heat is moving north ward and get towards northeast by weeks end into the weekend and we have threat for severe thunderstorms across portions to have northeast back through the upper midwest, the big story is the heat, the good news for the northeast is it will break next week, but the weekend will be really, really warm and potentially dangerous. Maria okay, we will get ready for it. Have to manage it. Janice, thank you. Janice dean at the weather center, my exclusive interview with Senate Majority leader Mitch Mcconnell reacting to President Trumps speech last night and a lot more. Morgan stanley, numbers and analysis next hour right here mornings with maria, back in a minute. Driverless cars. All ground personnel. Or trips to mars. 4. 95. Delivery drones or the latest phones. 4. 95. No matter what you trade, at fidelity its just 4. 95 per online u. S. Equity trade. 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. [ soft piano music playing ] mm, uh, what do you do for fun . Not this. Oh, what am i into . Mostly progressives name your price tool. Helps people find Coverage Options based on their budget. Flo has it, i want it, its a whole thing, and shes right there. Yeah, shes my ride. This dates lame. He has pics of you on his phone. Theyre very tasteful. Maria welcome back. Good thursday morning, everybody. Thanks so much for joining us. Im Maria Bartiromo. It is thursday, july 18th. Your top stories right now, 7 0. Earnings are in focus once again. Morgan stanley is due out any moment right now. The estimate calls for a profit of 1. 14 a share on revenue of 9. 99 billion. Stock is up going into the numbers, up about 1 . Well bring you the numbers an full analysis coming up. Microsoft, a name to watch this morning. This as the Technology Giant warns of hundreds of attempted election related hacks from other countries. Were watching netflix, the streaming giant takes a big hit after reporting a loss of u. S. Subscribers and slow growth overseas. The stock down better than 11 this morning. Futures are lower, indicating a decline of the start of trading of about 17 points on the dow, down almost a point on the s p and down 10 points on the nasdaq. Stocks were down yesterday as earnings season exposed weakness in growth outlooks for some companies. Industrial and Energy Stocks the biggest drags. Plaintiffs in worries a that the theres worries that the economies and profits will slow down the second half of the year. Dow industrials were down 116 points, nasdaq lower by 37. Global markets look like this. European indices are mixed. Fq100 down 21, cac up 13, dax lower by 38. Trade fears continue to drive markets down in asia. Worst performer was japan, nikkei average down 2 . Exports fell for the seventh month in a row in japan, driven by a he decline in chip making tools and automobile parts to china. Border crisis, 2,000 additional troops headed to the southern border. We have the latest. Nancy pelosi is warning a deal to raise the debt ceiling is needed by tomorrow. Deadline is looming. Were looking at where we could be headed from here as the clock is ticking this morning. Plus, lay away for teen, find out the retailer that is going after cashstrapped teens and millennials with a buy now, pay later approach. All those stories coming up this thursday morning. Joining me to break it down, jackie deangeles, tom bevin and mitch rochell. Great to see everybody this morning. Good to be here. Maria were waiting on Morgan Stanley earnings. Your take on what the Banking Sector has looked like so far . Its been a mixed story, i guess. Whats your take in terms of what youre seeing . Bank of america yesterday. Very strong from an economic perspective. The consumer has been driving the earnings for all the banks that have been reporting. The consumer is part of the economic expansion were seeing in the u. S. , that bodes well for the economy. May not bode well for the banks. Some of the pieces of their business are falling because the yield curve is not exactly cooperative for the banking industry. I think its good for the economy. Maria what happens when the fed krut cuts rates in two wee, well talk with tom brown coming up this morning. Joining us this morning, my exclusive interview coming up with Senate Majority leader, Mitch Mcconnell. Ken laingone is here as well as james langford. Joining us right now is tom brown and tom, its always a pleasure to see you. How would you characterize the banks so far in this quarter . I think its a pretty good characterization. Very strong results. Youre talking about 15 to 18 returns on equity. Bank of america yesterday, 17 earnings per share growth. So i think the industry and the big banks in particular are doing very well. Maria you called b of a a long time ago, youve been liking that stock. Jp morgan chase, you mentioned bank of america, wells fargo, citigroup, helping to lift the sector after beating estimates. What about the second half, we have the Federal Reserve going to cut rates in two weeks, what does that do to all of this . Earnings go down. Not down on an absolute basis but certainly the flatter yield curve and lower Interest Rates on an absolute basis are going to be tougher for net interest margins and for them to grow their earnings per share. If youre running one of those banks and you know that the yield curve is flat, if not slightly im verted, and rates are going to come down potentially, how do you adjust the Business Model a little bit for the rest of the year to try to pick up revenue and earnings in other parts of the business . You do what bank of new york did yesterday and what Brian Moynihan said yesterday which is were going to be tighter on expenses. But there really are no options. Now, a negative inverted yield curve is not normal. So it will change and thats what i think they have to do is just wait it out until we get back to a more normal environment. You look at some of the big banks, the stock prices yeartodate, citigroup, 36 increase, Goldman Sachs, 27 , b of a, 18 , im wondering if you feel like the stocks are a little overdone here, even though were seeing strong earnings. Heck no. [ laughter ] maria you want more. They had the worst december that theyve ever experienced. The book ends are very important. Were coming off of a period where the stocks peaked in about may of last year relative to the market on an absolute basis. Were just beginning to recover. On average, youre paying 17 times earnings for a company in the s p 500 and for a large bank, youre paying 8 to 11 times earnings. So still looks to me like maria why are they trading at such a discount to the rest of the market then . Theres so much concern about an inverted yield curve and a recession. A recession brings higher losses. Thats the biggest swing factor for Bank Earnings is a higher loan loss provision. Just dont see that. No signs on my radar screen. No one talks about it in any of the earnings releases. In fact, delinquencies and some of the banks were better than expected. Right, right. Maria are you saying you dont expect a recession . No. I think the only thing that shows you or would scare you about a possible recession is the inverted yield curve. But besides that, again, you mentioned the strength of the consumer, its incredible with employment being as strong as it is and incomes being going up a and the Balance Sheets are better than weve ever seen. So its a strong environment for the consumer. Maria when you look at a company like Morgan Stanley which were waiting on coming out with earnings any second here, Wealth Management has been real important. Theyve done a great job in terms of gathering assets. Is that where the growth in the business is, Wealth Management . How do you characterize this move . Ubs was really the first to really bone up on Wealth Management and gain assets. Yes. If you think about it, maria, 10 years ago and how much Goldman Sachs and Morgan Stanley have changed, its really incredible. Goldman sachs spending a billion three to become a retail bank and Morgan Stanley really converting the company into more of an asset manager than an investment bank. Its really been remarkable. Maria hes done a great job with that, certainly when you compare to where the ceo was in the throes of the recession, the worst financial crisis weve seen. So do you expect a good number from morgan . What are you expecting in terms of the most important issues to look at once the number hits the tape. What most people will be focused on is the revenue number you mentioned, just under 10 billion. I think it would be nice to see it over 10 billion. But theres a lot of just the shortterm swing factors will take that one way or the other. Maria any stocks you want to own right here . I know you like b of a. Still like b of a. Still like citi. Theres an incredible number, theres an eight large banks where the combination of their trailing 12month difficult depend yield, plus the amount that theyre reducing their Capital Stock is over 9 and theyre trading at less than one andahalf times tangible book value. So its an industry that is generating a lot of excess capital. Theyre using it to return to shareholders and the valuations of the Companies Overall are low and particularly relative to the market. Tom, we were talking about the big banks but how about regional banks. They get lost in the headlines during earnings season. Is there anything in the regional banks thats interesting to you . Sure. I love what i would call niche regional banks. We had one last night that reported their earnings, tristate capital. What they do is they have no branches. Theyre just a business lender on one side and they make personal loans on the other side. A company thats growing 15 to 25 a year on the bottom line. So there are theres still 5200 banks in this country and what i love about being an analyst for 30 years is that theres always a great story out there. You can always find a good, wellmanaged company thats doing something different. Maria there could be a deal in a lot of those regionals, right . These companies are not facing the cap that the largest are in terms of acquiring more deposits. You were talking about that yesterday. Maria yes, i was, with antoine schultz. He thinks well see a lot of deals in the small and regional banks, do you think that. You can always say yes because theres 200 deals a year. Maria there you go. Im going to go yes. Maria we hope youll stick around. Morgan stanley numbers are coming out. We want your reaction when they do. Thank you. Securing the border, 2100 troops headed to the u. S. mexico border. Senator James Lanford will weigh in coming up. And American Eagle rolls out a layaway planta plan targeting shoppers. Well have details following this. Ive got the eye of the tiger. A fighter. Dancing through the fire. Because i am a champion. And youre going to hear me onar. 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. carrying up to 50 times its tbody weight. Essly marches on. 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. At the summer of audi sales event get exceptional offers now 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. Maria welcome back. A deadly fire at a japanese animation studio. Cheryl casone with details this morning. Cheryl at least 13 people are confirmed dead, maria, 10 others presumed dead in the suspected case of arson. About 35 others were injured. Some of them critically. Police in japan say the suspect that started the fire is being treated at one of the hospitals there. Theres no word on a motive for this attack. 2020 election day more than a year away but microsoft says it has already detected nearly 750 attempts to infiltrate u. S. Political partys campaigns and think tanks. Microsoft wont name the targets but they say all of them are protected by the companys service that identifies cyber threats. Theres microsoft, a little lower in the premarket of course. Thats a company thats on earnings watch for us this week. American eagle is helping cashstrapped consumers. The outfitter planning to offer a buy now, pay later service. Shoppers will be able to make a sure, pay in installments. Analysts say buy now, pay later encourages shoppers to spend more money, appealing to younger shoppers who have less disposable income. Back in the day, they called it layaway, maria. Maria yeah. Or use your credit card. Cheryl you could pay that one in installments. But okay. Maria thats funny. Anything to give the younger shopper to spend money. Its sort of a reinvention of an old consistent isnt concept. Whats interesting is consumers are out there and theyre spending and theyre using and swiping credit cards and thats whats so important right now. I think the fed will look at that also, watching the inflation target very closely and it will say, you know, things dont seem as bad as they did, say, two or three months ago. Maria youre right. Happy to have tom brown this morning with us and tom, when you look at the Housing Market as through the eyes of perhaps bank of america or wells, what is happening with the consumer in terms of housing . So the Single Family Housing Starts came out yesterday and the Single Family starts were strong, multifamily was weak and i do think we had overbuilding nationally in the multifamily sector. But the Single Family sector with these Mortgage Rates doing pretty well. Maria quick break. Were waiting on Morgan Stanley earnings and were looking at the budget battle. Then this, oklahoma senator James Lankford will join me next on the shutdown showdown coming up. Netflix nail biter, the Company Loses subscribers in the u. S. , whats behind that decline, well talk about it as the stock is down 11. 5 right now. Stay with us. You can find me. In the back of a jacked up tailgate. Watching all these pretty things. Get down in that georgia clay. 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. But how do i know if im im getting a good deal . I tell truecar my zip and which car i want and truecar shows the range of prices people in my area actually paid for the same car so i know if im getting a great price. This is how car buying was always meant to be. This is truecar. Maria welcome back. That buildup at the border, the pentagon is sending more than 2,000 National Guard troops to the southern border. They will bring the number to nearly 6,000 at the border. During his rally in North Carolina last night, the president doubled down on the need for tighter Border Security and that wall. Unemployment among hispanic americans where were doing really well, you know why, because they want a strong border. They want it because they understand the border better than anybody. They want that strong border. They want that wall thats being built right now. [ cheering and applause ] they want that wall. And they really do. They understand the border better than anybody. And they dont want criminals coming in. They dont want crime coming in. They dont want to lose their jobs. Maria this as a new political Morning Consult poll is showing a majority of voters, 51 , support the president s plan for deportations and i. C. E. Raids. Joining me right now is Senate Finance and Homeland Security and appropriations member, oklahoma senator James Lankford. Good to see you this morning. Thank you for joining us. What are you expecting in terms of the troops going to the border . Do you expect that were going to see a change in this crisis situation any time soon . No, its continued support for whats happening there. The troops are not going for Law Enforcement activities. We have customs and border patrol, we have Law Enforcement there. Theyre going for humanitarian relief, additional assistance, some of the next layer behind all the Law Enforcement. We have to have additional Law Enforcement individuals to be able to help us through this process. With this many thousands and thousands, upwards of 4,000 a day that are crossing the border illegally, weve got to have places to be able to help manage all these folks, ways to be able to process them in the best way possible. Maria its just incredible. Were showing pictures of me in el paso. I took the show to the border a couple months ago. It was incredible to see the kids put in dangerous positions. What are you going to do as the colleaguings ocolleaguings cn the left dont seem to see the dangerous situation it appears to be. Thats the painful part of the journey. For months the Trump Administration said this is a humanitarian crisis, were having children trafficked. Democrats were saying its manufactured, this is because of President Trump and the rhetoric. Now theyre seeing the humanitarian issues, finally voting for Additional Support that weve been asking for for months. They wont acknowledge the Human Trafficking thats going on where we have thousands of kids that are being repeated in the border, where they come across with one adult, then sent back across an bring another adult across. Some of these children, we dont know where they are. Some children were report todd have been purchased in other villages, and they have no idea where to return the kids. The loophole is if you cross the border with a child, you get into the country. That encourages adults that want to get into the country to get their hands on a child and be able to bring them across so they can get in the country. Weve got to close that loophole and so far democrats said they want to leave the border open, they want to leave that exposed. Over half of the adults that are coming now are bringing a child with them and the vast majority of minors that are coming a across now that are males claim to be 17 years old. We dont know if theyre 25 or if theyre 17. They have no documentation. When they walk across the bore border, they say im 17 because if they say that, theyre going to get in. Maria someone is training them to say what theyre training. What are you going someone is training them to say what theyre saying. You look at the Democratic Party, they cant get together. Theyre divided with the progressives turning up the heat and then the moderates are fighting with republicans. So do you just need to win another election in 2020 to in order to get the wherewithal to change the loopholes . There are several things that have to happen. One is democrats have to big out if theyre for open borders or not. They said theyre not for open borders but the new progressives clearly are. They want to abolish i. C. E. Theres a couple things that have to happen. The administration is working with guatemala and mexico to be a third country for asylum seekers. If youre coming from anywhere but mexico, as you come through guatemala, you have to request a asylum in mexico. Thats the international norm. Thats what happens all over the world. When you seek asylum, you come to the next country that will accept you. Doing i. C. E. Enforcement, what the president is asking to do is enforcing deportations where the individual has gone through the due process system in a court of law and they said no, you dont qualify to be here. If you want to come to the United States you have to do it illegally. Enforcing interior is the other way to get this going. Maria we let in, what, a Million People legally that go through the process, getting the green card, et cetera, every year. Is that right. 1. 1 Million People, thats about 700,000 that go through citizen pshiship every year. Its amazing ceremonies. Maria youre talking about a million apprehensions on the illegal side. I have to turn to the clock and ticking and the potential shutdown slowdown. Nancy pelosi set a deadline for tomorrow for a deal on spending and a debt ceiling. Theyre hoping to avoid a Government Shutdown before the Congress Recesses on august 5th. Last month, the Homeland Security committee advanced the Government Shutdown act. Tell me about that. Weve been trying to get a budget deal, just the topline number, doesnt get the details oint. Won it. We cant get the first number, if we get that done next week, we go on to the 12 Appropriations Bills. Weve had 21 Government Shutdowns in 0 40 years. This is not new. What i propose is simple proposal. If we get to the end of the fiscal year, we shouldnt hold federal workers hostage in the process. They dont know what their job prospect is. The American People shouldnt feel it. Congress should. What i pushed is a simple criteria. Get to tend of the fiscal year, congress has to stay in continuous session until we get the budget done. At the same time, we have a continuing resolution that keeps budget spending the exact same as last year but congress cant leave. Weekends, weekdays, were in session, no one can travel until the budget negotiations are done. Its pretty stored. Most people cant leave work until the work is done. Congress leaves on weekends even when theyre shutdowns. If we stay here, well get negotiations done. Maria you think that will be enough to keep people in town to work on this. Its a spending problem, largely. It is once again the pushback on military spending . It is. Democrats want to spend as much on nonmilitary as we spend on l military. We as republicans have pushed back and said we should spend on what is strategic, what we need to spend on, that if we need to it doesnt make sense. Democrats continue to push what they call dollar for dollar increases. If you want to do more defense spending, youve got to increase Everything Else. I think we should be more strategic. That has been the big fight. Maria in terms of the defense spending, whats the argument to continue to raise the number on defense spending . I recognize weve got more issues today in terms of Foreign Affairs than we ever have when you look at iran and you look at china and the other threats out there. But make the case for keeping the spending levels where you want them on defense. So on defense, were still trying to recover from the time of the Obama Administration where they did drastic cuts in defense. That was their focus, where they can push dollars away from defense. Were recapitalizing. We need our troop levels to be correct. Were facing different threats now as we have a rising china, way havwehave a rising iran, weo make sure were prepared to be defensive, to say dont attack us, dont come at us because were fully ready to defend ourselves. It deters people from engaging in war. If we show our safes wea severad not ready, that encourages people to bring the battle to us. Maria is the fight between aoc and pelosi or the squad and pelosi is that just noise or is this underlying a fundamental difference in governing. Its a fundamental difference. The progressives are trying to take over the house. They are really the leaders of the house. The house doesnt move unless they give permission to everyone else to move. They are fund raising to be able to primary most democrats in the country, so theyve not only taken on the position in the house, theyre trying to take out every other democrat and bring in people that agree with them. So this is a fundamental that were watching i in the democrat to a more socialist left. One house member said nancy pelosi is the moderate in our conference because so many of the new democrats are so far left and theyre returning the conference. Maria nancy pelosi is really not a moderate. She is certainly not a moderate. Maria senator, thanks so much. Thank you. Maria James Lankford joining us. Be sure to stick around with my interview with Mitch Mcconnell, coming up live this morning at 8 00 a. M. Eastern. Join us for that. Well be right back. 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Trading revenue in the quarter, down 17 at 2. 73 billion. Investment banking revenue big for Morgan Stanley, coming in at 1. 59 billion. And Asset Management net revenue, 3. 22 billion. Most of the business that Morgan Stanley gets, most of the revenue from those businesses comes from fees. So im looking also to see if we get anything on fees just yet. But this is the last of the major banks to report and it looks like the numbers, although the stock reaction is a little better now, still negative. The numbers on the top and bottom line did beat, maria. Maria maybe the reaction is because of the decline in trading revenue, lauren. Thank you. Lauren simonetti. Tom brown is with us this morning from second curve capital, an expert of the sector. Your reaction. My first reaction, thats a better mix of an earnings beat than you would expect, just hearing the revenue side of things. It was a tough trading quarter, so thats not to be i were t surprised about that. The fees were impressive. Maria its interesting to see trading under such pressure. You have a market at record levels, right . This market continues to go higher, an economy thats doing well, yet trading has been dogged for the last several quarters. Id say last several years. Coming out of the Great Recession and the passing of the new regulations, the banks have been put much capital, proprietary capital at risk on the trading desk. The retail side of the business is also competition, people flocking to discount trading firms as opposed to the bigger firms, is that impacting the revenue . Theres so many factors impacting. Weve got movement from active to passive. Theres just a lot of changes going on in the Asset Management business. Maria morgan is going back and forth. The investor reaction was positive a second ago, now its negative again. Well keep watching this. Is this a stock you would buy right here . It would be, because i like all the big banks in this environment. Maria its not your favorite. Not my favorite. Maria your top 10. Good to have you. Tom brown from second curve capital. We want to turn to the president s Fiery Campaign rally last night in North Carolina. At one point he blasted the 2020 democratic candidates. Watch this. Sleepy joes not looking too good. Pocahontas is gaining a little bit because we probably used the hoke hon takepocahontas a littl. Thats okay. Well bring it out of retirement very soon. Bernie, let me save you time and effort, bernie. You missed your time. It got taken from you four years ago, bernie. Not doing too well. Hes not doing too well but thats okay. Ive got to hand it to him, hes up there ranting and raving and going like a lunatic. And then youve got a young guy, buttigieg, buttigieg. Theyre saying how to say this name boot, edge, edge. Hes a beauty. He runs a failed city. A vote for any democrat in 2020 is a vote for the rise of radical socialism and the destruction of the American Dream. Maria tom bevin is here for real clear politics. You have to give him credit in terms of pointing out some of the truths in some of the policies in the left. Hes funny. Trump is the ultimate showman. He puts on a show. The crowd loves it. You can see them reacting to the name calling and nicknames. Maria what about the fundamentals. Exactly, that is the core of his argument, right, and we saw this just in your interview with senator lankford. These radical socialists are running the house of representatives. Nancy pelosi is considered the moderate and she is no longer driving the bus. And so thats the core that this election that will be fought around. Trump is betting it all. Hes putting all the chips in on the idea that this was a winner for him again, particularly in those rust belt states where the election is going to be decided among the sort of middle class voters. Maria tom freedman in the New York Times yesterday said, look, stop, stop to the squad. Do you think they understand what theyre doing to the Democratic Party . Do you think they understand that it shouldnt be all about them . It feels like they want more attention on tv than actual policies. I dont think they really do i think theyre making it so extreme in terms of what happens in the election, its going to end up hurting them. I think its as you said before, its really all about them, all about the headlines. For aoc its all about getting herself out there and thinking about what her next move is and unfortunately thats going to be a problem for the party. Maria do you a agree with that . I do. These are folks that are not interested in compromise. Theyre interested in revolution, interested in moving the party to the left. Nancy pelosi is trying to protect her majority. Youve got 34 House Democrats who won in trump districts that are up for reelection. Alexandria ocasiocortez and the squad dont seem to care about those folks. Forget about trumps base but the middle of the road democrats and middle of the road republicans, does this not activate them to get out there and support candidates who speak to them as opposed to what theyre speaking to, which is not them. Sure. Trump is such a unique figure. You see the clips on tv. He fires up the base and fires up the democrats incredibly. They watch the stuff and cant wait to go to the polls. The question is t folks who really dont Pay Attention to elections, dont get engaged until the final 10 or 12 weeks, how are they going to react to the economy if it stays good, his policies and his style and whether that stuff that makes people cringe when he uses nicknames or they hear the chapters, whether that will keep the folks at home or bring them in one direction or another. Maria we have to talk about jon stewart, he is slamming senators for delaying the vote on the 9 11 victims fund last night. Watch this. Pardon me if im not impressed by rand pauls fiscal responsibility signaling. He stands at the last minute after 15 years of blood, sweat and tears from the 9 11 community, to say its all over now, were going to balance the budget on the backs of the 9 11 First Responder community. Maria does anybody here disagree with that . Its hard to disagree with him. What do you think . Fiscal restraint is not in vogue in washington right now. Maria the 9 11 Compensation Fund, i mean, come on. Exactly. Were spending tons of money on tons of other things that are probably less important than that. So why not go ahead and fund that. In rand pauls defense, and jon stewart makes fun of him, but rand paul this has been an issue that he has brought into congress and hes been consistent on. Maria i fee like hes been the only one i feel like hes been the only one. Its a broader conversation we certainly need to have. This isnt the place to make the point, you could argue that for sure. Maria not the place now to Start Talking about pulling in spending when in fact this 9 11 Compensation Fund is important and there are people out there suffering. I cant find any of the Tea Party Folks who were put on this planet to bring fiscal responsibility and trying to balance the budget, they all voted ways differently than they campaigned for originally. Maria well take a quick break. When we come back, netflix stock is plunging this morning, the company hit by a loss of subscribers in the u. S. , what the company is saying about that now. Hot digity air airbnb celebratg the frontin frankfurter accommo. Stay with us. Might as well jump. Might as well jump. Go ahead and jump. Jump. [ dogs barking ] what about him . Lets do it. [ sniffing ] come on. This summer, add a new member to the family. Hurry into the mercedesbenz summer event today for exceptional offers. Lease the glc 300 suv for just 419 a month at the mercedesbenz summer event. Going on now. While managing your type 2 diabetes why think about your heart . Because with my type 2 diabetes, im more likely to have a fatal heart attack or stroke. Lower a1c helps, but type 2 diabetes still increases my risk of a fatal cardiovascular event. Because type 2 diabetes is more than a1c. Wowthese are great answers and thats why theres jardiance the first type 2 diabetes pill that offers a lifesaving cardiovascular benefit for adults who also have known heart disease. Because jardiance can reduce my risk of dying from a cardiovascular event. And it lowers my a1c, with diet and exercise. Andits the 1 prescribed pill in its class. Jardiance can cause serious side effects including dehydration, genital yeast or urinary tract infections, and sudden kidney problems. Ketoacidosis is a serious side effect that may be fatal. A rare, but lifethreatening bacterial infection in the skin of the perineum could occur. Stop taking jardiance and call your doctor right away if you have symptoms of this bacterial infection, ketoacidosis, or an allergic reaction. Do not take jardiance if you are on dialysis or have severe kidney problems. Taking jardiance with a sulfonylurea or insulin may cause low blood sugar. So, now what do you think . While my a1c is important, theres so much more to think about. Ask your doctor about jardiance today. Maria welcome back. Drug Overdose Deaths appear to be falling in the United States. Cheryl casone with headlines. Cheryl preliminary data shows that Overdose Deaths for last year fell for the first time in nearly three decades. 68,000 Overdose Deaths were reported last year. The number topped 70,000 back in 2017. The improvement in part driven by a drop in deaths from heroin and prescription pain killers. Intake gram is expanding its hidden like test. When you hit the heart on an instagram post, if you dont know. The company confirmed on twitter it wants to find out if hiding the like counts that people get can help users in brazil, ireland, australia, italy, new zealand and japan. Instagram says they want followers to Pay Attention to users photos and videos and not the number of likes they get. Yes, folks, its not all about you. Its about other people. Okay. Had to throw that out there. Heres an idea you can relish. If you love hot dogs, why not spend the night in one. Yes, oscar mier is offering fans a chance to sleep in a 27foot long weiner mobile. The hot dog hotel open from august 1st to the fourth in chicago. 136 a night. I hope it has air conditioning. Maria fun funny. Cheryl i dare somebody on the show or maybe ill go do it, check it out. Maria yeah. Why not . Cheryl ill go sleep in it. Maria thanks, cheryl. Would you do it . A bargain. I would do that. [ laughte. [ laughter ] manufacture give umaria give. Paul ryan, one of his first jobs, he drove the weiner mobile around the country. Maria only to become speaker of the house. If you take a like feature away, i think you kill the whole purpose of the app. Im glad theyre testing it. Im not sure its so wise. Maria i dont know why they came up with that idea. Without the like, have you no intake gram. Instagram. Thats the whole point. People want to be stroked. Thats what its for. The most important story that cheryl talked about, the opioid Overdose Deaths. Were maybe getting finally getting a handle on the Opioid Crisis in this country. Its been raging for decades. Maria its definitely a priority of the administration. Well take a break. When we come back, content concerns, netflix losing customers, the reason behind the slowdown and why the stock is down 11 this morning. Back in a minute. We could have had it all. Rolling in the deep. You had my heart and cant see what it is yet. Re . What is that . Thats a blazer . Thats a chevy blazer . Aww, this is dope. This thing is beautiful. I love the lights. Oh man, its got a mean face on it. It looks like a piece of candy. Look at the interior. This is nice. This is my sexy mom car. I would feel like a cool dad. Its just really chic. I love this thing. Its gorgeous. I would pull up in this in a heartbeat. I want one of these. That is sharp. The allnew chevy blazer. Speaks for itself. I dont know who they got to design this but give them a cookie and a star. We like drip coffee, layovers and waiting on hold. What we dont like is relying on fancy technology for help. Snail mail we were invited to a y2k party. Uh, didnt that happen, like, 20 years ago . Oh, look, karolyn, weve got a mathematician on our hands check it out now you can schedule a callback or reschedule an appointment, even on nights and weekends. Todays xfinity service. Simple. Easy. Awesome. Id rather not. Maria welcome back. Netflix earnings, the stock is down 10 after reporting underwelunderwhelming growth. Joining us right now is the wall street journals technology reporter, tim higgins. What do you think is going on at netflix. Its a content issue. The Second Quarter didnt have anything as exciting as what youre seeing right now. Stranger things just dropped. Second quarter, maybe people werent as excited. This is worrisome to some invelvetteinvestors when thereo be greater competition, competitors who have in the past been selling some of the greatest hits to netflix, giving them the content they need to bring in customers. Now theyre pulling it back. Friends, the office, these things are leaving the service in coming years. Tim, this is tom bevin. Netflix spent billions of producing original content. How much of an investment are they making that . Is that going to continue. Is that going to accelerate or is that a drag on their business . Theyve been funding this through debt, billions of dollars are going into it. One of the things netflix is saying, now that the shows theyve been spending big on, the office, and friends, theyre going elsewhere, now theyll have money they can invest in their own programming. And theyre confident if you look at the numbers in the current quarter, if you look at stranger things, 40 million households looked at it the last time i looked at the numbers, so theyre confident theyll rebound in the third quarter, predicting 7 million new subscribers will join. They think its going to even out. The concern is that the Second Quarter is kind of a sign of things to come in the years to come as more competition aand tharrivesand the content is hart from the previous suppliers. Good morning, mitch rochell. One of the things we talked about at the top of the show is the feeling were at the saturation point with all of the subscriptions and subscribers dont want to subscribe to that many things. Is it inevitable well see a consolidation where content providers and Access Points start consolidating . Youre hi hitting on this big point. Theres only so much time in the day and how Many Services can you subscribe to and netflix talked about who it sees as competition and its people sleeping. [ laughter ] this is definitely going to be an issue going forward, right . Tim, ne netflix doesnt havea live component to its offerings, its about picking Programming Options on demand. I actually canceled netflix and got a service that gives me streaming news so i can watch while im on the go. How important is that to its success ultimately . Theyre experimenting with all sorts of different kind of content. Youre seeing that across all of the new players, trying to figure out what is the right way to reach customers, whether its format or content or trying to repackage. So its an interesting time for the creative types because everybodys trying something. Maria what about cryptocurrency . Let me switch gears, ask you about facebook on capitol hill yesterday, facing questions from the House Financial Services committee, several members of congress are warning facebook of issues with its plan, the level of trust, public trust. Watch this. I have serious concerns with facebooks plans to create a Digital Currency and digital wallet and its efforts to enlist partners that expand its reach like mastercard, pay l pal, uber, lyft and spotify. Facebook is apparently trying to create a new Global Financial system that is intended to rival the u. S. Dollar. People call this the libra. Its not the libra. If it finally happens, nobody is going to call it a libra. This is a zuck buck. This is zuckerbergs family. Bitcoin, 46 of the transactions according to one academic study are for drug dealers and other operations. What todays discussion is about is trust a and whether we can trust your company. I think youre pretty low on the trust spectrum currently for very good reason. Maria ouch. Tim, what do you think . I spent time on the hill. Theres not a lot of subjects that can unite both sides quite like this. And thats going to be a challenge for facebook as they move forward here. You dont just have the politicians but you also have ring la tori agent regulatory agencies raising concerns about this. A tough couple days for facebook in dc, no doubt. Maria would you expect this to have legs long term, or no . One of the things here that we see, clearly going into the president ial elections, trump has signaled that the social Media Companies are going to be in the crosshairs and this is just facebook waving a flag and inviting more opportunities for criticism and kind of picking at them. It wasnt just facebook on the hill this week, as you know. Really big tech in general is under the microscope, whether its amazon or its google, facebook. These companies are raising a lot of concerns among democrats and republicans for various different reasons, but uniting them in this idea of has big tech become too big. Maria theres a lot of scrutiny there. Tim, good to see you, thanks so much. Still ahead my exclusive interview with Mitch Mcconnell, thats next on mornings with maria. Stay with us. Just dance. Going to be okay. Just dance. Spin that record, babe. Just dance, going to be okay. Award winning interface. Award winning design. Award winning engine. The volvo xc90. The most awarded luxury suv of the century. 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. 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. Accusation. Maria welcome back. Good these are morning. Thanks for joining us. Im Maria Bartiromo thursday, july 18 top stories this morning at 8 00 a. M. , President Trump sounding off, about he was in full Campaign Mode during a rally in dplj last North Carolina the economy democrat skwaed 2020, in between. Leading voids of the Democrat Party left wing extremists reject everything nation stands for omar has a history of launching vicious antisemitic get her out the fword to scribthe presidency, and your president that is not nice even from me, representatives alexandria ocasiocortez [booing]. Conducted outrageous attacks against men and women of Law Enforcement. So representative pressley, [bo. O]. Thinks people with same skin color all need to think the same i have a suggestion for hate filled stanlt trying to tear our country down never have anything good to say i say if they dont like it let them leave let them leave. Vote for any democrat in 2020 is a vote for the rise of radical socialism and destruction of the American Dream. Maria joining me right now fox business exclusive is Senate Majority leader Mitch Mcconnell thanks for many here the president rally you heard what he said your reaction, to some of the president s commentary. Well, look he is right about the the squad want to go turn us into a socialist country what he should have added however is a lot broader, than just four of them. You know the speaker, the democratic Leader Senate a whole lot of others including president ial candidates have all signed up, for things like the green new deal, takeaway your job, being medicare for all would takeaway your private health insurance, and in order to make any efforts to pay for that maria they have to go after the top 10 , of tax pairs in america 70 revenue federal government comes from would slow economy down i think the president is own to something we are having a big debate now and next year, about what we want america to be like do we really think socialism applies here time of great prosperity 50year low unemployment what election i think is about. Senator lankford said it is making nancy pelosi look like moderate hardly a moderate you are right voted for she said yes to the new green deal you have got to put her in that category alexandria ocasiocortez is turning attention to you calling you complicit in advancing racism pulling out race card when it comes to you. Look i think time to lower a rhetoric related to that all aCross America everyone knows that is on in sense, you may not know this your viewers may not know i was there, when Martin Luther king give a that i have a dream speech i was there, as an observer when president johnson signed Voting Rights act ive got nothing to apologize on this front we ought to tone wrest do rhetoric down across country throwing around words like racism, you know kind of routinely applying it to almost everything lets talk about the issues. Yeah. The issues are, as we would talked about in the first discussion, here, where they want to take america, they want the take america, into a socialist country i think important to remember you dont have to have a military coup to have a socialism company Margaret Thatcher said the problem with socialism soon you run out of other peoples money giving away free this free that who is going to pay for that all of us productive parts of society the president is on to something we are going to have a a big choice next year direction this oun ougthis dowc out to taik. When you say free everything a portion say i deserve that i should have that free not recognizing that, you know, nothing is free, and somebody has to pay for it the tax increases ticl down. We have to make the argument, you know that is what a campaign is about. We have to make the argument. And if we cant successfully make the case against that kind of stuff ought to go into another line of work. Media seems to be, in some ways complicit cnn reporter asked i if it would be racist to tell your wife transportation secretary elaine chao to go back to her home country taiwan what did you think of your wife being brought into this debate. I am glad he is not willing to go back home as viewers may not know she came at age 8, not speaking a word of english two different cabinets president bush 4 President Trump i am rowed of her she is not intoed in going home imano glad not a story elaine chao a gust we pressure her success as well matters of the moment shutdown showdown hours Speaker Nancy Pelosi setting a deadline tomorrow for deal on spending debt ceiling we know this is a spending Problem Congress and president hoping to avoid Government Shutdown before recess august 5 of Congress White house projecting a one trilliondollar deficit in 2019. Something has to give; no . Look, of the up pleasant alternatives we have in reaching agreement with are very liberal house of representatives, getting a deal between president and speaker is the best option prevents chaos, shutdowns did she faults i am hoping secretary of the treasury speaker representing the president democratic majority in the house can come together on an agreement that we can all lock on to support, because it will give us a chance to run the government, in an orderly fashion, for the next year and a half i am hopeful optimistic such an agreement will be reached, that democrats control the house we have to deal with them this is one thing that we need to come together on. Maria what should that deal look like . There is the continuing pushback, on the spending on the defense. Well we we dont want to send defense in the wrong direction the president has done a growth job plussing up defense we dont want that to stop in order to get deal with House Democrats we will probably end up having to spend more on domestic side than we would like to but that is compromise that is what happens in divided government if you dont control hole government the best option actually really is for the president and for the speaker to reach an agreement here that we can vote for, and end the uncertainty for the next year and a half. Maria so you are expecting then to raise the debt ceiling again. Of course, he we will never have america the committee for budget said last time we went down the road, and raised the debt ceiling statutory budget caps before august recess last deal in february 18 added 420 billion it continued if continuing would cost two trillion dollars says macguineas your reaction to that how does this end . You keep raising the debt ceiling adding to debt. Raising debt ceiling america cant default that would be a disaster, we are spending more than i would like to, but i dont get to ignore did house the president doesnt get to ignore the house. So of the options that we have available standing up for National Security the single most important responsibility the federal government comes first, that is what house and Senate Republicans and administration are committed to doing. We dont control the whole government therefore we will have to allow more spending on the domestic side in order to get a bill through the house, than we would like that is the nature of compromise. Particularly given the new threats that we are seeing today, from iran, to china, russia, and beyond. I mean would you say these are some of the most significant threats the country has ever faced. Maybe not ever, but certainly very significant, the iranians are acting out as they have since 1979 various destructive ways across middle east we immediate responses to actions directly or surrogates as president directed i think he is doing the right thing. Where specifically would you see opportunities to cut back not of including defense obviously. It is hard to do that with this particular house. They mefr metnever met a spendig bill they are not for we are doing the best we can to keep down even more spending that would occur if democrats were able to elect a president take senate all would be off no restraint whatsoever. Stand pie we want you to talk about china a new story in the the wall street journal this morning that it was really huawei that that is having the china trade talks really stall facing questions over huawei we are learning now the treasury secretary mnuchin will hold talks with china over the phone later today, what is the answer here . Secretary pompeo has been on this program, making the case that huawei does he represent a National Security risk. It does. Huawei represents a National Security risk, and i dont think we ought to do anything, to make it easier for them to operate and do business here in america. Maria so what or in european for that matter talking to them about it as well. Maria what about that are you going to be giving less information to our friends in europe in they have huawei in their infrastructure. I am unclear how we enforce this i do believe europeans agree with us that huawei is a threat that is a good first step and i hope whatever arrangement we ultimately end up with, with china does not allow huawei to have that kind of access to our technology. You know interesting, to look at europe because it feels like yeah maybe europeans agree on huawei but skret sketchy when it comes to iran are europeans with this president when it comes to iran. It has been difficult they did not agree with decision, to back out of the Iranian Nuclear detail, by the way, i think the president did a right thing, it was a terrible deal we continue to encourage them, to to back us up. And there is reluctance to pull out of the deal bad deal made by previous administration. Senator stay with us a short break i am going to ask about border and immigration right now, we are talking with Senate Majority leader mitch Mitch Mcconnell we will be right back. 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. Plus no payments for up to 90 days. At comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. 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I am amazed we have had as much difficulty as we have getting our democratic colleagues to do anything about the obvious crisis at the border just as an example a couple weeks ago we passed a border supplemental for humanitarian relief didnt deal with wall didnt deal with other issues that are important the speaker almost couldnt get that through the house all the people the president is talking about last night the squad wont vote for humanitarian relief we have seen people packed in fafs totally incapable of handling the humanitarian crisis what created the crisis there are deficiencies in the asylum laws that allow this buildup to our needed to be changed by statute we have not gotten any cooperation it would be safe to say the president a had more cooperation out of the mexicans than he has out of democrats in congress. About dealing with the crisis at the border. Incredible really is, and senator, Lindsey Graham joined me sunday basically said i am going to have legislation i am going to bring it down to the floor for his committee to vote on it before the recess. But what does that mean are we going to see fundamental change flores agreement asylum standards change how does this or going to continue to see detention centers, supposed to about 3 85 people it is 900. I dont know what it takes to get democrats attention lindsey is bringing a bill out of committee i hope gets democratic support i wouldnt bet on it two president ial candidates on the committee to deal with statutory problem that contributings to the asylum humanitarian cries at the border see what it looks like i lope not partyline vote would indicate they have no desire to solve this problem, it makes you wonder since they are talking about openly borders, whether they want us to have any kind of Border Security at all. I mean some of the things they are saying in the president ial election is just astonishing eliminating ice basically not having any effort to secure the border. What nonsense every country is involved in trying to secure their border, immigration is not a uniquely american problem. Alexandria ocasiocortez said eliminate all department of Homeland Security. Yeah, look. The democrats won house last near why difficult to get a solution on this problem because they basically like open borders they basically want people who got in the country illegally to be put on path to citizenship kind of shoi reward for breaking the law we have very deepseated differences with this issue they won house we have divided government that is why you are seeing maria the difficulty, in getting a solution here. Maria the department of Homeland Security having created after 9 11 now former latenight host john stewart slamming rand paul,for delaying the vote on fox news watch this senator. Pardon if i am not impressed in any way by rand pauls fiscal responsibility virtue signaling now stands up the last minute after 15 years of blood, sweat and tears from 9 11 community, to say that it is all over now now we are going to balance the budget, on the backs of the 9 11 First Responder community. Reaction senator . Well i think short answer we are going to pass the 9 11 emergency bill, we always deal with this tragedy, and we will do that we will do it shortly. Maria i want to get to the fight for 15 in a second but speaking of bringing things to the floor are you expecting usmca to come to the floor any time . Nancy pelosi seems sitting on it they dont want President Trump to have a victory obviously, this is important piece of legacy if you cant get this done how, are we going to have any confidence in any other trade deal gets done . Yeah, it is a problem, i cant bring it up first in senate if i could under procured would i or procedure i would it would be rat ratified in the senate has to start in the house remember why most democrats are on tried i had to join up with president obama over opposition harry reid and unanimous north americans to get trade promising authority not just for president obama but next president as well, so most democrats, are not good on trade issues they dont seem to understand how trade benefits the American Economy, until you see that reflected in the difficulty the speaker is having, in making a decision to take it up. I am hoping she will. I am hoping she will do it sometime soon. I am hoping we get democrats to pass it we cant pass it republicans only, in the house. Maria you are going to have to stay with nafta i guess if it doesnt come to the floor right president says there is a plan b, it is prenafta that would hit the economy. No i think no i dont think we ought to walkway from nafta if we cant get this done we ought to get this done an improvement the administration did a good job of updating nafta to the advantage and United States to get this done. About wages let me take you to fight for a 15 house to vote on whether to lift federal minimum wage to 15 dollars a year could set tone for 2020 give your stance. It would cost according to cbo between one and three million jobs lost we dont need to loss jobs we dont have enough jobs now there are more people looking for work than Jobs Available would did he would depress the economy at a time of economic boon not doing that in senate. Do you want to see legislation. We are taking a look at it a very complicated field, and we are watching what develops in committees. Mitch mcconnell, a quick break with health care in america home depot founder langone, dr. Robert grossman joins me to discuss high cost of medical care following 100milliondollar donation to make school free. Streaming joint plunging after a miss we take you live to the Trading Floor how stock is performing. It is down 11 . Back in a minute. I switched to liberty mutual, because they let me 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. 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. But how do i know if im im getting a good deal . I tell truecar my zip and which car i want and truecar shows the range of prices people in my area actually paid for the same car so i know if im getting a great price. This is how car buying was always meant to be. This is truecar. 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 im theed Health Higher following strongest report gerri willis with details. Largest health shoour getting on top line and the bottom line narrow beat coming in 316 shares higher, the company being about med kay business doing well, a big part of the business, boosting 2019 eps the arbiters, ebay double beat here, surprising coming in 60 cents versus 56 cents a share, that the Company Shares up 5 this morning, they are saying they will review stub tub ebay business two new Board Members pressure from outside investors finally big a steak in ecommerce platform you can see there. And netflix big story really they had a beat on their bottom line 60 cents versus 56. All about subscriber growth that was the disappointment for netflix. They did manage to come o above 160 million for the first time but ad 2. 79 million versus expectations in addition of 5 million subscribers, didnt happen they lost 126,000 subscribers in u. S. Back to you. Maria thank you so much, on wall street we are looking at lower opening for the broader averages quick break high cost of health care, we are talking with home depot cofounder ken langone, joining next on pressing issue of prices and the success of initiative yu langone the 100milliondollar donation to make nyu medical school institutituition free th next. Well. If you run a business, it means a lot. For starters, we provide you with Financing Options for your customers. That way, you can help them buy the things they love instantly and pay over time. And that turns them into serious fans. Hang on, theres more. Want Customer Insights . Weve got those, too. We use data to show you what your shoppers have already bought so we can tell you what they might consider buying next. And you can offer them the perfect products. That ceo gets it. 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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. Welcome back, top story this half an Hour Health Care in america, california has a shortage of physicians so, the state is offering to pay off medical school debt, as incentive, this after one of my guests has a 100milliondollar donation to New York University to make medical school free joining me in a fox business exclusive is the cofounder of home depot nyu langone member steadier robert grossman, congratulations to you a hundred Million Dollars to nyu langone i want to ask why you did it wasnt just about making it free it was about the availability of doctors. Right . I did it because when he got the job first day, 11 years ago i said what are we doing he said one big draem to have this place tuition free i said we are going to do it take some time but we will do it his idea, as Everything Else that happened since he took over i got to broog this guy is most unbelievable leader i have ever had the opportunity to work with in my life. That is great. He is smart to go with it. I want to talk about leadership what youve done it wasnt just a hundred Million Dollars from langone he encouraged others to put money in. You cant have a better partner, are right . By far. Wait. Would never have happened without ken make no mistake. 350 million. 450 Million Dollars. Total. And youve got criticized for it. I was told i was irresponsible you should not give money to kids from wealthy family i had a simply thought kids are going to give up from 6 to 13 years of life hard work, depending what the specialty dedicateing life to this best years of lives, out of college 20s, 30s, and i just felt that it was their efforts not their parents effort they are the ones going to be doctors not parents, but it was this guy here, poor kid from bronx. Success story. From your brooklyn long island when you got money had ability to offer free medical school tell us how you allocated it youve got innovations right now at nyu langone using Artificial Intelligence robotics tell us about it. We thought it was very important to be focused, on student debt and to become tuition free, because these students and their families were financial pressure we surveyed first year class after we gave the tuition free about nine months into the into their course. And the thing that they most appreciated reduced anxiety so about wellness for the students and their families. The debt burden is enormous. Yeah. Average medical School Student graduates with about 200,000 dollars worth of debt a little less than that very difficult to pay back as ken was saying, because, after they finish medical school, they intern andres and three to five years debt accumulates compounds it is enormous burden for them. You even got the bezos he family involved. No, no, not for that they gave us god bless them jackie mike bezos give a us substantial gift specifically for the brooklyn program. Brooklyn program. Hospital. This initiative yu the brook berlin in consolidation in hospital talk about that you got Great Success in terms can have lutheran that acquisition, what you have done in brooklyn youve got one happening in two weeks. Exactly. So we are going to do a partnership and full asset merger with winthrop in long island we are very careful with what with hospitals we associate with. The cultures have to align, and but for us, we have a lot of patients in brooklyn patients in i dont think island so it is very including you. But i would say in brooklyn we did something incredibly special ken and i are very proud of what happened we took underserved hospital sunset park has the largest concentration of medicaid in the United States, and after three years their metrics are as good as our campus on manhattan. About congratulations, you know. That is these people have a right everybody talks about health care, these people have the right to the same Quality Health care that i get. When you come into our place doesnt matter who you are what you are the same quality of care hopefully highest possible. You know, as you are talking i am thinking, what an incredible story, what a story you have had, and yourselves a well coming from nothing, to build up incredible careers, and you know you look at a guy like mayor de blasio says there is a lot of money in the city just in wrong hands you have not been able to give away 100 Million Dollars, had you not had the resources that you have, ken. Maria, i will tell you the thing that bothers me the most. I am truly the American Dream my grandfather couldnt read couldnt write when he died couldnt read couldnt right this is a aggravate country there will never be another america do we have issues things to fix yes, but in health care fixing the things that we need to fix making them the best not better, the best. So i am a strong advocate and passionate about this country. Grandma grandpa thanks for coming to america we are all children of immigrants. I appreciate that yes. Just as good and goodlooking how much better look what is going on the fact that you have the resources, after working so hard your entire life, to give away this money, to make a better situation for underserved people then youve got socialist ideas in the 2020 democratic race candidates many young people interested in what they have to say understand this selling something like, about medicare for all you say. Well, i think what has been to have you look what has beneath the hood right a good slogan but how does it really work . And how would it affect everyones health care, and when you look at it, i dont think the idea really works very well in the United States. United states is a very different country, than scandinavia and europe, European Countries we have much more Cultural Diversity much more many more gradients between rich and poor we have more obesity, diabetes but our Health Care System the people who have insurance actually like their doctors, satisfied with health care to say we are going to change a system, where majority of people actually like their care and want to keep their doctors, to me is a flawed idea. 180 Million People get insurance from private sector ken, and medicaid fre for all wipes it up. We are living longer i am 84 in september walking arorn i think i have mort marbles. Maria love that. This is a quality care in the country this is care that everybody gets access to, this notion that in new york city somebody walks into a hospital and is turned away because they havent got insurance card is nonsense. It is nonsense you dont do that we dont do it anybody doesnt do it. I like what you said when you first decided to give away the 100 Million Dollars nyu langone you said this is bigger than home depot. Yeah home depot is spectacular fabulous, but this touches 370 million lives why in carry going to have a shortage 50,000 primary care physicians 2030, 30,000 pediatricians 30,000 obs 120,000 doctor shortage not so much issue affordability as availability. Right. And by the way, i wouldnt have happened, this maria what we did wouldnt happen except for home depot that iss where juice came from. What you wrote eloquently in your book capitalism i love capitalism you got a Bernie Sanders 2020 democratic candidate who says look i am vigorously defending medicare for all yesterday fired at critics said debate over medicare for all about agreed of the Healthcare Industry rather than right health care plan. Let me tell you about this guy and about us he is talking about doing something, we are doing something. It is a is a big difference he sits with a microphone pontificates talks about this that bernie show record go back in your life show me what you did for somebody else think pitch at rosss memorial the other day perot did. He didnt talk about it. Write down to the lit left person needed a break this was a genius of ross perot genius of people wanting the world better we do it dont talk about doing it. You are back from dallas spoke at ross perots funeral were close. I loved him i tell you i wish that day had never come. He was well okay. It was good of you to speak. Go it was biggest honor of my life he was he was the very precious human k. What would he say going one proposals. He would tell america the greatest country own earth he was fabulous patriot loved America Health care in america roscherie murray loved everything america passed it on most wonderful family in the world but he was awesome he made things happen for the Little People not just headlines this best kept secret in new york. Weigh dont i dont need credit. Yes do you. The institution is a fantastic institution all about the people of the institution no one person. Does anything, frank, and we are incredibly proud of you all the people who work there. Absolutely. Changing peoples lives, and Impact Health care every day. An can he impressive institution, i am proud to say i am a board member. We are going to take more about the policies of today, and what you are hearing on the left as well as the incredible Success Story back in a minute. vo the ant mindlessly marches on. Carrying up to 50 times its body weight. It never questions the tasks at hand. 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Maria welcome back home depot facing backlash from shoppers boycotting stores after cofounder said he would debt a large part of 4 had abilliondollar fortune to President Trumpss campaign donated millions to trump past few years he back with me home depot could founder nyu ken langone dr. Grossman ceo nyu langone joining the conversation host of Varney Company Stuart Varney good to see you this morning. You, too, maria thank for having part of the show can i say to my good friend mr. Langone, i too have lived the American Dream, and everyoning absolutely fabulous country. I didnt hear come here with very much i am on marias show talking to ken langone what a country. Stuart varney can i jump into the conversation about socialism for a second. Please do. I hope you dont mind that i am a refugee from socialism i came to this country, from a socialist country i came here willingly, i think that this trend towards socialism has already hit its high watermark in america. Because in the cold light of day, and that is a president ial campaign coming socialism will be rejected, because it is profoundly unamerican i think ken you and i agree on this. If people understand what it is. Go back venezuela was one of the wealthiest countries in south america aggravate Natural Resources biggest pool of oil. Richest in latin america. Chavez elected by democratic process poor people believing everything he said was going to happen what happened was, he came in, what happened with the money that would come to the private sector to buy goods and Services Competitive rates Government People talk money stole it. That is what happens in socialism, this doesnt work, i you pray to god American People see through this nonsense going on right now. They are not explaining what the cost is they are not when you hear Bernie Sanders talking about medicare for all Elizabeth Warren talking about free everything, they are not explaining that there is a cost to all of this and at some point taxes will go up not just the top 1 . Stuart said something. Like europe isnt it, isnt that exactly what is happening in europe. Look what is happening in society. In europe. It europe is at a situation right now doesnt know how to get italy for example the hope is greece is now going to right, hopefully there is a trend, that will bring it back but you said about your life my dad was a plumber went through 8th grade mother worked in School Cafeteria 7th grade hardly born with silver spoon what happened to me could only happen in Capitalistic Society if you are willing to work your butt offed go valentines day give it all you got you might succeed. Capitalism awards, we compete for the goodies in society that brings out the best. Of course, but the question is, do you think people understand the difference . What i worry about the biggest concern i have in america today, is quality of Public Education if we educate People Better than we are, they are going to understand how it works a lot better okay. A great point first of all, we are hearing all issues in this 2020 election, health care, immigration, et cetera, i dont hear one peep about education u. S. Number 35 in the world. You are right. I dont care one squeak how to grow this pie what is the democrat what is the socialist message on growing our economy. Because without growth in our economy you got no life. Absolutely right we just saw 3. 1 growth going to continue conversation i know you have to get ready for your show see you 10 minutes. Thanks for kind words. Great to be with you Varney Company 9 00 a. M. Eastern after mornings with maria you are right in terms of education, and in terms of focus there, why . He wouldnt be the accomplished individual he is with what he has done with life for other people if he didnt have benefit of a solid education, couldnt have done. It youve got all attacks on left what did you think about the terrible treatment bern marcus got because he donated to trump campaign. Bernie has given away two billion dollars so far i dont know how much stock bernie has left if any he will never want for a thing rest of his life dont misunderstoodstand started out in ten manhattans about newark went to Pharmacy School the rest is history. You get from Bennie Marcus ken langone talking about robotic surgery doing. It we are doing a lot of robotic surgery also, usi Artificial Intelligence in a different way thought about Artificial Intelligence is that it will replace it will help doctors with diagnoses it will replace Health Radiologists making not going to replace my doctor. Going to help your doctor o other thing Artificial Intelligence will really enable it will enable to us increase the speed of ct scans mri scans up to 10 times. Getting ahead of disease ahead of things, and ensuring that youve gotten the times, more accurate in terms of of the mri. 10 times faster may result in needing less equipment. Yeah. When may result in better scans four congresswoman in a war of words what do you think. A phase that will pass i think will happen what they are talking about is nonsense. I am going to give them credit for the belief hopefully they really want to make life better for people i will say that is their motivation i got to get a plug in want to saint pats i found out feet of of saint camilous update electron saint of hospital brokers, a saint in his corner. You donated all that to saint pat rooibs kathe st. Patricks with a head to rally i worked with cardinal raising money if you get to new york one of the great attractions. Beautiful. I mentioned four horsemen of congress, pushing ban how do you think the plays out . It is very difficult to understand how the impact on academic med centers if you have medicare for all understand that a lot of research including nih research is subsidized by clinical revenue. And in medicare for all if you look at it, hospitals academic hospitals would see a revenue decrease on average before 11 that is in sustainable. There you go, thank you for the facts, on this story, dr. Robert grossman. To bernie. Go ahead. Giving away all money home depot committed to veterans programs i think we spent 250 million so far on it, more to come. Bernies, right as american citizen to believe this what he wants to believe like four people here i my disagree with what they say but their right to say what they want to say bernie believes in trump bernie believers doing a good job bernies money paid taxes on it i dont know how much home depot, but kids like people at work 42000 people, they are the people led by bob that give the quality of care. And to say all money in new york but in wrong hands, mayor de blasio is stust w jut wow. He thinks he can spend better. Ken langone and friends created free medical school for all those people, and continuing to do so thank you so much for coming on, and two my guests on wall street we will be right back. Stay with us. 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. Or trips to mars. 4. 95. Delivery drones or the latest phones. 4. 95. No matter what you trade, at fidelity its just 4. 95 per online u. S. Equity trade. Maria welcome back. Going to be a lower opening for the broader averages. Final thoughts from this allstar panel . I still think its all about earnings. We heard from the big banks but also, were going to be looking at these companyspecific stories. For example, netflix. Its not really a barometer of whats happening in the economy, more about that business or you look at microsoft reporting, ibm had some trouble with the cloud, maybe microsoft will do better. Stories like that are less troublesome than broader economic stories that might indicate, you know, were in for a bit of a slump. Maria ken langone just told me maybe we will grow 2 , 2. 5 this second half of the year. Its still a very good number. Most people are expecting a little bit of slowdown. Tom . Two thoughts. One is, what an hour of television. Ken langone, Mitch Mcconnell, lot of news made. That was great. Then theres a lot being paid attention to trump and his rally and what hes saying and this backandforth. Meanwhile, we talked about it a little, whats going on in congress right now with the debt ceiling and getting a deal done and actually congress working, very important. Keep an eye on these negotiations between trump and pelosi. You heard mcconnell say its really between those two. They got to set the number, then they can actually dig into the details and pass the Appropriations Bills. Otherwise we may have a shutdown. He said were not going to default but that could have big ramifications for the economy and for the election. Maria there are 12 Appropriations Bills that need to be dealt with. Mitch mcconnell said theres absolutely no way the u. S. Will ever default. Right. I would also like to see usmca passed but maria thats a question. A lot of senators i speak with are not even expecting her to bring it to the house floor. Got to go to the house first. Which is amazing, because we started the show talking about china. If we had any kind of deal with china, the chance of it getting ratified by the house and then ultimately the senate, china knows that. China is looking at usmca and saying why are we negotiating with these guys, they will never ratify the legislation. Im going to go back to earnings. If you look at the Bank Earnings, theres something in there thats really important. How strong the consumer is. Our economy is driven on the consumer. So talking ourselves into recession is silly. If you look at those Bank Earnings and retail sales number couple of days ago, i think that bodes well for the economy for the rest of the year. Maria yet, what are we, a week and a half away from whats going to be a monumental fed meeting where we are going to see a rate cut. Could be as high as 50 basis points. That would really, really shock me. I still dont think we get the 25 basis points even though the market does. Well see what happens. Maria all right. We have to watch that. One more final thought. Happy birthday, jackie. Maria happy birthday, jackie deangelis, of course. And Cheryl Casone. Great to see you. Thank you so much. Great show. That does it for us. Varney Company Begins now. Stuart, take it away. Stuart good morning, maria. Good morning, everyone. Last night in North Carolina, the trump rally was fiery, raucous and in my opinion, politically very smart. The president went right after the four radical Young Democrats known as the squad. He concentrated his remarks on them and in effect, made them the leaders of the Democrat Party. For a business guy hes learned politics rather quickly, hasnt he. The response this morning is predictably extreme. Kamala harris tweeted that the speech last night was vile, cowardly and xenophobic. The crowd at one stage chanted s