Lets get going. 195 million, close to 200 million under heat watches or warnings. It could get worse over the next 24 to 48 hours. Jackie deangelis on who stands to be impacted. Hey, jackie. Reporter neil this is the calm before the storm if you will. It is not quite sweltering out here in times square just yet. Temperatures here, across the country, they are going to be at record highs. It is important that everybody is ready for this heat wave. 290 million americans are expected to see temperatures of at least 90 degrees this week. The humidity of course, remember makes it feel much hotter than that. Temperatures in the northeast will be 10 to 15 degrees above average this week. At least two dozen states, they are currently under a heat alert. Here in new york city the Mayors Office issued a extreme heat emergency declaration. It is so severe, that the new york city triathlon actually can sell for the weekend. That is the First Time Since it started in 2001. We caught up with some folks here, we asked them how they are preparing, how they are feeling about it. Hopefully the power is still on so i could at least have ac, a portable ac unit i can count on. Stocking up on water. Not stocking up on too many things in general. Mainly water, if you have too much stuff laying around the house it, will get hotter. Just go with it. It is what it is. We live in it. So you get used to it. Reporter if you have airconditioning, your urged to make sure it is running properly and demand is high, these broken on a weekend it is hard to get repairmen out. If you dont have airconditioning, are close by, know location of a cool be center, very, very important. Retail will be benefiting from foot traffic with people out and about at the malls trying to stay school. Utility and Water Companies will be put to the test for sure. They are saying demand is going to be high. Theyre making those preparations to make sure they can provide users with everything they need, neil. Neil you know thats a huge sacrifice to go to a mall to stay cool. That is faustian kind of a pact. Jackie, thank you very much. Dealing with the heat, and i dont like the heat. Nations power grid is under pressure as utilities trying to make sure they can handle it. I told you what mayor de blasio is doing in new york, urging residents to keep thermostats no lower than 78. We have have a peco power ceo. What do you advice your clients to do . Youre basic rules apply, you dont want the system overstressed . Thats correct. We plan for this all yearround. Our sister utilities planned yearround. We make significant Capital Investments to be ready for weekends like this, but good practices conserving energy where they can, turn thermostats up, keep shades down, keep their buildings cool. Certainly at time like this, to look in on elderly relatives, friends, to make sure theyre safe during this period of heat. Neil i know the new york case was a little different last week and power went out half in manhattan. A transformer blew or something ignited. So that was a different case. Temperatures in the 80s then. This does put a strain and stress on the same system, doesnt it . It does, but again as i mentioned earlier, with peco part of the excelon companies, we represent 10 million customers across the country, chicago, washington, d. C. , baltimore, philadelphia. We planned all yearround and made significant Capital Investment for these periods of high temperatures. For weekend like this, we have 16,000 employees stand by on the ready both in emergency response, public outreach, Customer Care system to be ready to respond if we have problems. Neil the kind of thing that happened in new york last week a lot of folks are worried about happening this week, not only in new york, what trick terse that kind of talk . Just a stressed system or we have compromised grid, both what do you think . Anytime you can have a piece of equipment failure, what happened in new york last week was not typical. In fact coned is one of the most reliable utilities in the country, very wellrun. They are investigating that, they will get to the bottom what occurred there. Peco, excelon utilities all utilities across the country, you plan for this. If you look at the electric grid, it is extremely reliable. So i feel pretty confident well be able to get through this weekend. Neil hang in there, michael. I know you will have a busy weekend. Were following developments halfway around the world including the middle east, everyone is hot and bothered nothing to do with the heat, everything to do with the back and forth whether a drone shot down by the United States was actually iranian drone. The iranians say it was not. We claim we have unequivocal proof it was. We have Lieutenant Colonel david hunt. Iranians says it is not theirs. What do you know about this . What do you think of their response . Yeah. Iranians are full of crap. Neil okay. Weve got too much technology, neil that identifies things that are coming near our ships 40 miles out, okay . So this, this drone got within 1000 yards of an amphibious ship carrying a couple thousand marines and some other gear. We did have a very elegant thing. We didnt shoot a rocket at it. Shot electromagnetic pulse, it dropped out of the sky. That is a great way of saying, do not do this. You dont get, look, ship captains dont want anything within a mile of them, let alone a thousand yards. It is an amphibious ship. Not a destroyer. It was provocative act by the iranians of the they knew what they were doing. It was theirs. How do we know . We got the drone out of the ocean. That is the end of the story and it was a very good way of handling a potentially dangerous situation. Neil you know, were getting reports that might go to the middle east, talk to the Iranian Foreign minister. The president is saying, all right, try, see what you get. Rand paul was telling us he would do darnedest to avoid conflict. Sometimes that is unavoidable. So where do you think this is going . I dont think its a good thing in a small area like the straits of hormuz. Iran has 300 miles of coastline and for them, you know, weve been a while now, but it only month 1 2 ago, seven ships were blown up, probably by iran or terrorist organizations being paid by iran. We dropped a drone. These are incidents that get elevated. What happened yesterday is another example. I think that were going to see more sanctions. There will be threats of military action i dont think are necessary. But iran is hurting as we know because all of the sanctions we put on them. Their sales of oil dropped from 2 1 2 Million Barrels a day to under 200,000, the chinese being big users of it. This does not seem to be going any better. Neil colonel, well watch closely. Thank you. Colonel david hunt. Meantime we want you to know what is going on in the white house, a special commemoration of surviving astronauts, buzz aldrin, second man to walk on the moon and Michael Collins circling above the moon and family of Neil Armstrong will be at the special event. Michael collins made a little news, we were talking to him, he kind of agrees the president s approach, go back to the moon is a bit redundant. If Michael Collins had his way he would go directly to mars. That is what the president has been saying. More after this. 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. past them because she didnt sknow they were talking to her. G and she would just walk right deborah i just could not hear. I was hesitant to get the hearing aids because of my short hair, but nobody even sees them. avo our nearly invisible hearing aids are just one reason weve been the brand leader for over 70 years. deborah when i finally could hear for the first time, i started crying. I could hear everything. avo call 1800miracle to start your 30 day riskfree trial and schedule your free hearing evaluation today. Has been excellent. They really appreciate the military family and it really shows. With all that usaa offers why go with anybody else . We know their rates are good, we know that theyre always going to take care of us. It was an instant savings and i should have changed a long time ago. It was funny because when we would call another insurance company, hey would say oh we cant beat usaa were the webber family. Were the tenneys were the hayles, and were usaa members for life. Get your usaa Auto Insurance quote today. Neil there will be a special commemorative event about the apollo 11 landing on the moon. Buzz aldrin who was on the moon will be feeted today. The formal walk on the moon was tomorrow. Buzz aldrin will be on tomorrow to commemorate that special event on my weekend show on fox news. The dow is sprinting ahead. Microsoft is big reason, record revenue, iron click nothing to do with software but its cloud business. The company in and out of alltime highs. The company only company right now, right now, worth over a trillion dollars when you add up all of its shares with the market price. Market watch tech editor jeremy owens on that. You know, jeremy, im thinking of the Time Microsoft was not the cool kid on the block. It was apple, everyone but microsoft. Now it is. Im wondering whats driving it . Fact it wasnt growing back then when all the other Tech Companies were taking off. Now it is taking off. Its a little bit later what you call a growth curve, right . That is why it looks so great. You see all the Companies Getting so much scrutiny and government spotlight on it because they got so big so fast. Microsoft had the government spotlight on it 20 years ago. Been there, done it. It doesnt look like it has issues others have, it is growing fast and others are slowing growth and microsoft is in a really good place right now. Neil when you think about it, obviously windows is ubiquitous, eight out of 10 computers via the operating system was routinely accepted worldwide. Then obviously, processing documents, word, xcel, spreadsheet but they have gone way, way beyond that im wondering the whole cloud phenomenon others latch on to, even in ibms latest earnings, a lot what theyre doing on the cloud is getting attention, are we overstressing that . Are we overhyping that . What do you think . No, i dont think so. We really need to know when the cloud boom will kind of plateau. Neil right, right. Apple iphone was no longer growing sales, okay we know where mobile is going to be. We still dont know how big cloud is going to be. Cloud is still growing at a pretty ridiculous clip. When does that end is a huge question in tech investing right now. The way microsoft continues to grow. People freaked out a little bit, azure, their cloud product only grew 64 last quarter. 64 that is still insane, oh, but it is under 70, right . Were still growing a ridiculous amount for cloud. We dont know where the plateau is. We continue to look for that. Neil with azure, a vast database, microsoft almost owns that arena, doesnt it . Well i mean Amazon Web Services has a few things to say. Neil right, right. Microsoft has the better cloud software. Amazon has the larger clough computing which is just computing in the cloud which is infrastructure, basically while microsoft has all these cloud software. Microsoft has that together. Amazon is trying to catch up in cloud software. Microsoft is trying to catch up with amazon in cloud computing. Neil well watch it closely. Jeremy, stay cool where you are. In San Francisco where it is always pleasant. Were fine. Yall stay cool out there. Neil rub it . Boeing shares are higher, higher after taking a 5 billiondollar charge over a lot of problems related to its 737 max. Kristina partsinevelos following that and a lot more. Reporter neil, youre right. A huge hit, 5 billion in the Second Quarter, but look at the stock price. It is climbing higher. They would have have production costs of up to 1. 7 billion. Boeing is confident they will get the 737 max jet in the air by the fourth quarter. That is sign of confidence. Why you have a tangible number, almost five billion dollar aftertax charge. Could it be too optimistic . Because regulators still need to approve the Flight Control software changes. You saw, weve been talking about this for quite some time. There are two deadly crashes, 346 people died. Overall at this point in time, there are still 371, 737 max jets have been grounded around the globe. So this five billion dollars were talking about is a good sign of faith when boeing dealing with a lot of other airlines because so many have been grounded. The money will be passed on to airlines the next few years, as well were seeing cost of discount. They dont include legal fees from settlements. A lot of families filed lawsuit for negligence against boeing. That still has to go. Earlier this week boeing announced they would give 50 million to family members of vick tis. Last but not least the transportation secretary said this week regulators have no timeline for returning the max to the skies and wont act until the plane is safe. Neil, the earnings are next wednesday. Neil wow. Anticipation around that. Great job, kristina. Thank you very much, kristina partsinevelos. Meantime were still focused on the heat. You know how new yorkers are about heat and complaining about it. 2 3 of country is in that predictment. Were following heated exchanges. See what i did with the heat then in on Capitol Hill Congress is petting rattled, rat lending a lot of folks we might not have a debt deal in the time they want. A lot of back and forth on that. After this. 4. 95. No matter what you trade, at fidelity its just 4. 95 per online u. S. Equity trade. Neil technically not today, Treasury Department say by the end of the month, Early September we could technically run out of dough. That might be the treasury secretarys way scaring democrats and republicans actually to cobble together a deal. If that was the goal so far not so good but the former Speaker John Boehner an former democratic congressman joe crowley are indeed worried about the debt. They were telling me this yesterday. Budget deficit is a serious concern of mine. It was when i was speaker of the house. It has grown exponentially since i left. It will become, mark my words, it will become the Biggest Issue of the day. Both sides will have to show political courage in this process. Whatever that path may be. Neil you know who is on top of this long before it became cool to talk about it . Ross perot is one. Sadly we lost him last week. The other is my next guest, former u. S. Comptroller, general under Clintons Bush 43 david stockman. He has been pounding this, in a good way, being relentless about it, being how important it is. David, always great to see you. Always a pleasure, neil. Neil what amazing our eyes glaze over, it is 22 trillion, okay, 23 trillion. But Interest Rates are low. We owe money to ourselves, no big deal. Chill. What do you think . Talk about one of the purposes of the debt ceiling limit was supposed to be. It came in 1917. Among other things it was supposed to try to help control spending and control debt. Lets talk about a couple of statistics. In 1917 the federal government was less than 5 of the economy. Now it is over 20 and growing. In 1917 the debt was about 9 of the economy. And now it is 106 and growing. So the bottom line is, it has failed. Both democrats and republicans are responsible for it. They will cut a deal, the debt ceiling because they really dont have a choice to do otherwise. What we ought to be talking about, is raising it one more time, and then repealing it, replacing it, with a debt as percentage the economy limit, with real Enforcement Mechanisms. Because we need a credit card limit. It is clear that washington is out of touch and out of control. While it is very hot temperaturewise here, there is always a lot of hot air but there is not much action that happens. Neil you know what is interesting . Every time washington tries to come up with an enforcement mechanism, i think of, grammrudman, all these other methods to police spending, put a cap on it, they always find a way to get around that. So im wondering do we pay too much attention to setting a debt ceiling level, whether pegged to a over all number or whether it is pegged to percentage of gdp . Because they wont listen . They wont do it . Here is what im suggesting, if we go debttogdp, that really matters. Not all debt is bad. Sometimes you take on debt for investment or in an Armed Conflict but we shouldnt be adding debt when were at peace, not at war. What we need to do is recognize we want to grow the economy. That is what the gdp is. That is what the denominator is. At the same point in time we have to force 70 of spending growing faster than the economy, socalled mandatory spending, on the table. That will encourage progrowth, force spending out of control under the table. What are the Enforcement Mechanisms . The Enforcement Mechanisms automatic things happen if you violate that, in certain circumstances people should not be able to stand for reelection. Look, these people are spending out kids money. Neil third rail there, young man. Let me tell you, my friend, you know, if you look back at the preamble to the constitution of the United States, that will lay out what the federal government is supposed to be doing. A significant majority of what the federal government is doing today has nothing to do with that. In addition, if you look at the preamble, it says posterity. Were supposed to be looking out for future generations. Were mortgaging their future at record rates when they will face a lot tougher competition and increasing interconnected and independent world that irresponsible, unethical, immoral. Debt ceiling doesnt work. Were the only major industrialized nation that has one. We need to go to something that will and by the way we need to make it constitutional. A constitutional debttogdp limit. Fortunately 28 of 34 states have already recognized the need for that. There is an effort to get to the 34 which will force a stateled constitutional convention. Maybe we can reclaim fiscal sanity. Neil appreciate the fact that americans are very intelligent. Theyre open to hearing this, neatly laid out. You did that. Ross perot did that. Dont dismiss how much wisdom in the american people. Explain to them, they will galvanize and put the pressure on. Neil, you may recall that in 2012 i did a 10,000mile, 27state National Fiscal responsibility bus tour. Neil remember it well. On that, we got 77 to 97 agreement from representative groups of voters in swing districts and swing state in the north and south for budget controls, social security, medicare, medicaid, health care, tax, defense, government organizations operations and political reforms. 77 to 97 . There are a lot smarter than the politicians realize. We need leadership. We need action. We need results. Neil yeah. You need someone as late great ross perot said, to risk losing an election to make a statement. Well see. It is always good having you, my friend. My pleasure. Neil thank you for reminding us importance of this. He was on this when virtually no one was. Were awaiting a while house event. Michael collins is talking about the whole push going back to the moon. Doesnt think its a great idea. I think the current plan, has been wellthought out but i just disagree with it. I think we ought to shoot directly for planet mars. Cant see what it is yet. Re . What is that . Thats a blazer . Thats a chevy blazer . Aww, this is dope. This thing is beautiful. I love the lights. Oh man, its got a mean face on it. It looks like a piece of candy. Look at the interior. This is nice. This is my sexy mom car. I would feel like a cool dad. Its just really chic. I love this thing. Its gorgeous. I would pull up in this in a heartbeat. I want one of these. That is sharp. The allnew chevy blazer. Speaks for itself. I dont know who they got to design this but give them a cookie and a star. I come facetoface with a lot of behinds. So i know theres a big need for new gasx maximum strength. It relieves pressure, bloating and discomfort fast. So no one needs to know youve got gas. Gasx. Neil im still having trouble with 50 year thing. I remember watching Neil Armstrong and buzz aldrin on the moon. I remember all the stories, Michael Collins circling above, the command module pilot then. I had a chance to catch up with Michael Collins on the whole issue going back to the moon. He like the president , not a big fan of the idea. There is, you know, an attempt to sort of restart the whole Space Program with using the moon as a launching pad, i always thought it just seemed odd having done that, achieved that, that were going back to that. I guess the strategy, maybe that is launching point for bigger, broader missions, what do you think of all that . I think it is wellresearched. My friend Neil Armstrong, who i think was a far more competent engineer than i, thought in discussing mars he thought there were changes of missing knowledge along the way. I think the current plan, has been wellthought out but i just disagree with it. I think we ought to shoot directly for planet mars. I used to joke when i came back from apollo 11, that i had been sent to the wrong planet. That nasa should be renamed the National Aeronautics and mars administration. 20 some years ago i wrote a book, a whole boring book on mission to mars. I have always been a believer in mars. I would, i would choose a direct, i would call it jfk mars direct express is what i would call it. Neil what he left out there, what he wrote in his book he would like to be that man to go there, no matter the age. Michael collins, American Hero at the white house right now along with buzz aldrin, family of Neil Armstrong with us. Sky walking author tom jones. Good to have you. Hi, neil. Neil what do you make of what collins was saying here . He appreciates the thought and strategy behind going back to the moon, certainly a lot of countries are doing that, everyone from china to luxembourg but, just skip the middleman, satellite, go right to mars. What do you think . There are two answers, thematic and practical. A lot of companies are partners with us on the space station who vent been to the moon, they would like their people, scientific to go on to the moon. Theyre very interested in getting access to the moon. We can lead that partnership. On the practical side, mike collins identified the problem, we dont know the technologies that we need to get to mars. The most critical being, how to get big landers with people on them down to the surface safely. That technology hasnt been invented yet. If we wait to go to mars until that stuff comes along, meantime the chinese are all over the moon, our economic and military rival, we look like were second best, that is an unaffordable option i think. Neil so it is not as childish my immediate impression, been there, done that, why should we try to compete with guys we did something 50 years ago, you say that is the point . Were not doing what we did 50 years ago. The plan before us would be to go there sustainably, use resources on moon to make rocket fuel, refill tanks of landers. Neil what resources . Water at the lunars polls. At the polls there is million tons of water ice. You break that down into oxygen and hydrogen. You lower cost of space using fuels already there, instead of launching them at great expense up from earth. Neil i have interviewed a lot astronauts, present and former, a lot of viewers who say we know you love the Space Program, unmanned vehicles can do fine. We landed a ton of them on surface of mars as other countries. Weve taken unmanned vehicles to the outer reaches of the solar system and beyond. That is something we dont need a human being to do when we have done it already with all of these vehicles. What do you say to that . Well there is a role for both robots and humans. You send robots where conditions are too hostile for humans to do any exploration like pluto or into the clouds of jupiter, for example. There are places we cant get answers to important questions, like is there life on mars without sending a human astro biologist and geologist to get to the bottom of that question. The rote bottoms dont have the intelligence to do that. They wont for the foreseeable future. They will be good partners for us but they cant answer those fundamental questions. On the moon, for example, there are places on poles where humans cant go in the shadow of dark craters. That is where robots go. But you need humans to periodically, maintain the rocket fuel plants. Neil tom, if you dont go, we already volunteered Charlie Gasparino here to go. So well keep you posted on that. But always good having you. Thank you very much. My pleasure. Neil tom jones, former astronaut, sky walking author. That powwow, very impressive one at that, still going on at the white house featuring two surviving members of apollo 11, buzz aldrin, second man to walk on the moon, by the way my special guest tomorrow on our weekend show, cavuto live. Michael collins said regardless we should keep our eyes on the sky, whether men doing it or other vehicle. The fact of the matter were born for this. Quoting john kennedy, because he said, because it is there. After this. In charge of your healthcare by price fixing. Letting the government set prices means fewer doctors and a race to the bottom when it comes to quality care. Insurance companies and the federal government getting in between you and your doctor. Call congress. Make sure doctors and patients are making the most important medical decisions and keep the Insurance Companies and government out of it. Paid for by market institute. 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. Neil back to more terrestrial concerns. Edward lawrence following all of these latest machinations from the white house. Edward . Reporter seems a little out of this world talking about it there, following upon your pun. The chinese confirming there was a second phone call between the u. S. And chinese trade delegations. On that phone call u. S. Trade representative robert lighthizer, treasury secretary Steve Mnuchin also chinese vice premier liu he and newest member of commerce ministry. He holds a stronger view that the chinese must hold its ground. On the two call the sides talked about implementation of the consensus between two heads of states at osaka. They said the next step is to exchange views. What came out at the osaka from donald trump and president xi xinping, that china would buy more Agricultural Products and u. S. Would allow companies to sell products to huawei. They were in the process of sales to the chinese phone manufacturer. The chinese want huawei off the list, blacklist all together. Now the President Donald Trump has opened up the possibility of huawei being involved in a trade deal. The chinese have not started making those purchases of agriculture. Instead the chinese have made agreements this week with the russians to import more soybeans from russia to china. The california Lieutenant Governor says, that wine exports to china fell 25 from january to now compared to the same time frame last year. She adds that the demand has been absorbed by agreements that china has with chile and australia. Seems though, neil, the chinese are starting to dig in, starting replace demand of u. S. Products with other products where they have agreements. Back to you. Neil im getting a sense, edward, youre far close to this than i will ever be, nothing will happen soon, that is a given . That is a given. Nothing will happen soon. Both sides are dug in. The u. S. Will not take huawei off the entity list. They will not remove it. Because of National Security concerns, chinese are hardening the tone they have to take it off the list before they do anything, concessions back in the trade deal. Before they by agriculture from us. The two are seemingly at a stalemate. Neil great reporting, my friend. Edward lawrence with developments at white house, in the building. Surviving crew members of apollo 11, buzz aldrin, Michael Collins, Neil Armstrongs family there as well. When the cameras are out of there, they normally feed all of that back. The president is commenting on an enormous event we recognize as a nation, 50th anniversary of walking on the room. He touched on debt ceiling, iran, a number of other subjects. Were there right after this. Were the slowskys. We like drip coffee, layovers and waiting on hold. What we dont like is relying on fancy technology for help. Snail mail we were invited to a y2k party. Uh, didnt that happen, like, 20 years ago . Oh, look, karolyn, weve got a mathematician on our hands check it out now you can schedule a callback or reschedule an appointment, even on nights and weekends. Todays xfinity service. Simple. Easy. Awesome. Id rather not. And my side super soft . With the sleep number 360 smart bed you can both adjust your comfort with your sleep number setting. So, can it help us fall asleep faster . Yes, by gently warming your feet. But can it help keep me asleep . Absolutely, it intelligently senses your movements and automatically adjusts to keep you both effortlessly comfortable. Will it help me keep up with him . Yup. So, ill wake up ready for anything . Oh, weve got your back. So, you can really promise better sleep . Not promise. Prove. And now, save up to 600 on select sleep number 360 smart beds. Only for a limited time. Neil forget about losing subscribers is netflix looking for a way out and is eddie murphy the way out . The famous comic is reporting a massive stand up after reporting a massive miss in the subscribers. More people focus on that earnings, revenue, any of that stuff. To, is it im sorry. There you go. Neil Andrew Friedman and our own Charlie Gasparino. Great to have you both here. Thank you. Communications analyst. Get the title right . Hegi communications. Neil that works. Is mine more accurate than this. Im the communication sector head. Neil youre saying he is more correct . A little bit more correct. Thats all right. Neil let me ask you, eddie murphy, its a draw, what do you think . I think netflix is at the point in their life cycle, growth curve, contents, they need big hits, need Stranger Things to drive engagement. 65 penetrated in u. S. Over 50 penetrated in developed markets internationally. They need to stop focusing on one, twos, eddie murphy will draw a crowd or popular content to drive subscriber growth especially with loss of disney and other popular titles. Neil will that draw subscribers, oh, you have eddie murphy . No, i dont. Content is content. I personally think content is king, we all heard that, why disney is in such a strong position Going Forward but at the end of the day any companies comes up to limitations of market. It is the law of economics and reality. Neil they spend a ton. They spend 13, 14 billion a year in content. A lot of the content is, would not have performed well if it was released released in the trl theatrical sense. Theyre spending 100 million, 200 million. Struck 100 milliondollar deal with seinfeld for that. Neil the obamas. The obamas. The question is neil soon Charlie Gasparino on business. What is the halflife of that content . Neil charlies or we can say very short. To that point, theyre borrowing 10year paper, billions of dollars. That is where i get worried about the model is, the Balance Sheet. Neil you were talking about this years ago. The Balance Sheet. Tell us about the Balance Sheet. Look, it is interesting this conference calls, right . Management is saying theyre managing their Balance Sheet and capital structure. Theyre saying that their debt to capital ratio is really low. Thats true. Neil its a lost debt. Its a lot of debt, but equity value is grossly inflated. It is completely overvalued. If you think what the company should be trading at neil talking about the stock. Yes. Neil the stock many would argue is an realistically priced. That the inherent leverage is here. Do they have offBalance Sheet obligations . I keep hearing that. They do. Neil what does that mean . It means, so when they sign a Shonda Rhimes deal or big content deal, they cant necessarily, they dont understand how to value that in the short term. So it stays offBalance Sheet. Nothing super scary. That is all enronnesque though. Yeah neil disney compared themselves to amazon, building up infrastructure. Amazon and netflix are completely different. Amazon is diversified model. They have profit streams like netflix is onetrick pony. Neil they have a lot of trick. You cant create subscribers out of thin air. Their Balance Sheet are different. They have negative cash flow. Did amazon have negative cash flow early on . Yeah, they did. Okay. Most Companies Neil that is comparison everyone raises, if you liked amazon in the early days when it was building you will love this. Yeah. Amazon, everyone points to amazon as the bold case for netflix. Neil but netflix isnt building a structure as much a lot of stuff to for people to watch. It is very different than amazon building you know a infrastructure that would support all of this. Amazon is leveraged . I dont know that. I dont think so. They have been, amazon can make a lot of money if they want to. Right. Anytime, turn on the switch. Problem with netflix they have offBalance Sheet long term obligations. This company, you you 2011, 2012 like a ferrari. Reed hastings is genius. They got the Company Moving quickly. Today they dont have the luxury. They have committed to content. Neil are they raising prices . They are trying to. It is tough. The bull case from here, that unit adoption where it is, that we will continue to raise prices aggressively. Our work suggests, once you get over 10 a share, 10 a month for streaming service, when price sensitivity, consumer kicked. This quarter we i cant figure it out. I cant find anything. There is paradox of choice. Presented with too many choices you default what is common, why friends, the office. Like cavuto. Neil right. Im a simple man, i look at it, simply the whole process of cutting the cord, i want to save money, this, this. Now all of these noncordcutters are costing you more. Yeah. Neil than the old cord. Absolutely. Neil netflix is the latest example but if you keep these services, hulu, netflix, amazon, youre spending more than you did with cable or satellite, right . Absolutely. Neil so is that macro Development Something that all tease guys should worry about . I definitely think it is. Netflix was, continues, continues to be, has 90 plus percent market share. Neil is that right . Yes, in subscribers. A lot of viewership. Going forward you have disney plus launching. Neil some of those their programing wandered away. Absolutely. First time seeing big hit pieces of content come off the platform go to a competing service. They had content losses not magnitude of friends, the office, disney series. They think 20 of consumers would cancel Netflix Subscription if they lose content. Neil what are they most married to . Friend friends is a big deal. Is that in the air code, this stock goes to 100. Neil the office brilliant. Love the office. What did you like about friends . What do you have against Jennifer Aniston . Come on. Neil the office is perfect. I watch an hour of Jennifer Aniston any day of the week. Neil this is a family show. Netflix is a trendsetters, like buying entertainment mutual fund. So the argument was all of these guys, im, kind of simply, maybe stupidly lumping in google and facebook and all this. Just you know, sure invests. Maybe the dynamics changed for the whole group . Yeah. Weve seen the fangs start to underperform the last year. Were very late cycle. Hedge eye macro team does a phenomenal job. Appears Global Growth is slowing. Neil where do you and your company sit . Im looking thematic look, who will win. Neil communications, we are talking about what . Communication and telecom. Cb and viacom merges who will buy them . Will not comment. Are you over the wall . I cant comment. Why cant you comment on that . I cant comment. Neil i admire that. Like, we got to be very compliant. Neil a lot of these guys capitalists to their stock to your earlier point with netflix, im wondering the capital and the stock was also the big issue for banks and meltdown where they lost it. Yep. Neil is there any possibility that these are knows bleed levels for absolutely, for netflix especially. Look, they missed the quarter in a big way. We had data that the entire time throughout the quarter telling us growth was slowing massively. They would miss the quart or miss the guide. They missed quarter. They guided above. To your point they will Access Capital again. Suppose fed starts raising rates, theyre not would that be a problem . That would be problem but the bigger problem theyre highly levered fundamentals come down, they miss estimates, god forbid they missed q3 numbers and go to high yield markets. Neil all bets are off. Watching friends tonight because Jennifer Anniston is in it. Neil youre an idiot. Thank you very much. Always good my friend. Take you to the white house, president meeting with surviving astronauts of im unhappy with the fact that a congresswoman can say antisemitic things. Im unhappy with the fact that a congresswoman, in this case a different congresswoman, can call our country and our people garbage. Thats what im unhappy with. Those people in north carolina, that stadium was packed. It was a record crowd. And i could have sold it ten times, as you know. Those are incredible people. Those are incredible patriots. But im unhappy when a congresswoman goes and says im going to be the president s nightmare, shes going to be the president s nightmare. Shes lucky to be where she is. Let me tell you. And the things that she has said are a disgrace to our country. Thank you very much, everybody. Reporter is there an update on the rocky case . Swedens a great country. Theyre friends of mine, the leadership, and we are going to be calling, well be talking to them. Weve already started. Many, many members of the Africanamerican Community have called me, friends of mine, and said could you help. I personally dont know him but i can tell you he has tremendous support from the africa chld Africanamerican Community in this country. When i say africanamerican i mean everybody in this country because were all one. I have been called by so many people asking me to help. Actually, the one who knew about it was our first lady, right . She was telling me, can you help. You want to give a little statement on that . Ill be working with state department and we hope to get him home soon. Were going to see. Weve had a very Good Relationship with sweden. Hes being held, as you know, in sweden. Weve had a very Good Relationship in sweden. Thats pretty much it. Thank you all very much. Thank you very much. Hopefully were in good shape with the debt ceiling. I cant imagine anybody ever even thinking of using the debt ceiling as a negotiating wedge. When i first came into office, i asked about the debt ceiling and i understand debt ceilings and i certainly understand the highest rated credit ever in history and a debt ceiling and i said i remember to senator schumer and nancy pelosi, would anybody ever use that to negotiate with. They said absolutely not, thats a sacred element of our country. They cant use the debt ceiling to negotiate. And dont forget, president obama, during his eight years, he created he doubled the debt. You take every president , every president prior to president obama, he then took it and doubled the debt, over 10 trillion. 10 trillion with a t, not a b. Not a million, not a billion. President obama put 10 trillion, he doubled the debt. It was 10, it went to 20, went to even above 20. Some of it is attributed to him. So when they Start Talking about using the debt ceiling as a wedge to negotiate or things that they want, they have told me very strongly they would never use that. Thats a very very sacred thing in our country, debt ceiling. We can never play with it. So i would have to assume were in great shape. Just remember also, the Previous Administration doubled the debt in our country. You take all of the president s that came before, double the debt. Pretty big statement. Certainly its a big statement to be talking about for that party to be talking about using the debt ceiling and i dont think they are. Its been mentioned but i dont think they are. I dont think anybody would want to play that card. Reporter looks like hes going to be the Prime Minister. What do you think of him . I like him. I like boris johnson. I spoke to him yesterday. I think hes going to do a great job. I think were going to have a great relationship. I think theyve done a very poor job with brexit. I think the previous Prime Minister has done a very bad job with brexit. What can i say . Its a disaster and it shouldnt be that way. I think boris will straighten it out. I like boris johnson, i always have. Hes a different kind of a guy but they say im a different kind of a guy, too. We get along well. I think well have a very Good Relationship. Thank you. Reporter [ inaudible ]. Yeah. There is ongoing tension between japan and korea. In fact, the president of korea asked me if i could get involved. I said how many things do i have to get involved in . Im involved with north korea on helping, im involved with so many different things. We just did a trade deal, great trade deal with south korea, but he tells me that they have a lot of friction going on now with respect to trade, primarily with respect to trade, and japan has some things south korea wants and it asked me to get involved. So maybe if they would both want me to, its like a fulltime job getting involved between japan and south korea, but i like both leaders. I like president moon and you know how i feel about Prime Minister abe. Hes a very special guy also. So if they need me, im there. Hopefully they can work it out but they do have tension, theres no question about it. Trade tension. Thank you. Thank you, everybody. Thank you very much. Neil all right. This was an event meant to honor the surviving apollo 11 astronauts. In the room, buzz aldrin, who walked on the moon with the late Neil Armstrong. Neil armstrongs family in attendance in the oval office. Michael connell has been a critic of the president but on this day we xhet racommerorate h anniversary of the moon landing. I do want to update you on something the president said that i want to make sure we get our facts right. The president saying about the 10 trillion in added debt, about 9. 5 under the obama administration. At this point in his presidency, donald trump is running ahead of that by about 350 billion. Big difference, of course, barack obama came into office in the middle of a meltdown, im not playing politics here, but the numbers are and at the rate were going, this president if he were to serve full two terms, would exceed that debt level and then some. So he bemoaned the fact the debt piled up under the administration of barack obama, it did indeed, but its piling up at an even faster rate and pace under this president. Thats not to cast aspersions. Blake burman following all of these developments at the white house. Blake . Reporter just to jump off of that for a moment, keep in mind it was the office of management and budget which is an arm of the white house that said this week that the 2019 deficit, the 2019 Trump Administration deficit, is expected to be 1 trillion. Should this president of course get eight years in office, as you just mentioned, as far as the eye can see it would be trillion dollar deficit after trillion dollar deficit after trillion dollar deficit and so on until the end of the presidency, at least as it stands right now. Speaking of right now, democrats and republicans are trying to figure out a budget deal that would be paired with a deal to raise the debt limit. Remember, it was the treasury secretary Steve Mnuchin who sounded the alarm in recent days saying this needs to be dealt with before congress leaves for its summer recess, by the beginning of august. Heres what i can tell you in speaking with sources across washington, d. C. Today on this matter. Nancy pelosi earlier this week had said that she wanted a debt ceiling agreement by today, by friday, so that they could potentially put it on the floor of the house of representatives next week so that they could just sort of wrap all this up and move on before the recess. My sources are telling me that most likely aint happening today. That they are moving in the right direction essentially, but there is still some work to be done on that front so it appears as if that the debt ceiling budget deal still has some room to run, still has some work to go. As you heard the president say there, he is criticizing using the debt ceiling as a negotiating tool, but as you know, for years and years on end dating back, if you were to sit there and take a look at democrats and republicans, all across washington, d. C. , who have used the debt ceiling as a negotiating tool, you could go guilty, guilty, guilty, guilty for both parties all across the line for many, many years on end. One other thing of note that i thought was interesting. The president noting that the First Lady Melania Trump has gotten involved with the asap rocky case, prominent musical figure who is now in detention in sweden. This caught the eye not only of the president but also the first lady and the state department. Neil . Neil real quickly on the debt stuff, im glad you mentioned debt slash budget. This president has used it as sort of his predecessors have to get their way, its just the nature of the beast, and both parties play this game, but to say that he didnt, thats a misstatement. Reporter everyone would say that the debt ceiling should not be weaponized and we have heard the treasury secretary, even Mitch Mcconnell speaking to maria the other day saying, trying to sort of tamp down any fears that the debt ceiling will be touched. Everyone agrees, do not weaponize the debt ceiling. Democrats and republicans weaponize the debt ceiling to try to get something on either end. Its just one of those things that happens. But at the end of the day, its something that they eventually agree on. The question in this case is, are they going to get a deal that would push the debt ceiling potentially two years down the road and most importantly politically, past the 2020 election, or are they going to have to do something in the interim and deal with it in most likely october, november of this year. Neil all right. Blake, great job. Thank you very much. Blake burman at the white house. Again, sometimes you can blur the lines of the debt ceiling and not coming to a budget accord and all of that, but again, that kind of thing does threaten if you dont raise it or push it back or do something to avoid, you have a Government Shutdown and then of course you have to worry in that event how far you push it and what do you risk, what bills do you pay or not pay if youre hitting that level. But this president has been embroiled in that just as almost every president before him. I do want to stipulate here, without playing politics when it comes to this issue, they all play politics, including donald trump. Lets get the read on all this. Moodys Capital Market chief economist john lonski, fox news anchor brett larson and mary, i want your take on where this debt ceiling goes. The market isnt panicking because they think they will come to some sort of agreement. We play fast and loose with this stuff. We sure do. I think the markets remember in 2011 how it came so close to the brink and the result of that was deleterious. You had the s p downgrade that came even after they reached a deal. They finally came to an agreement and still s p downgraded the Credit Rating of the United States. Neil it was a circus. Thats how they described it. Exactly. That hurts the longterm credit of the american institutions so trying to convince investors that, you know, thats okay and well be able to surmount that this time, theres that memory for sure, but at the same time, how do you price that . How are you supposed to trade around that . Theres nerves absolutely, but i think its hard for the market to get ahead of that and really try to anticipate anything and its like ill deal with it when it comes here. Neil think about it tomorrow kind of deal. We always get this thing settled but we are always punting. The funny thing about it, of course, as the other guy said, the markets dont really care. Theyre not concerned at all. The tenyear treasury yield is just above 2 , were looking for the fed to be cutting rates fairly soon. Neil 4 , 5 . Thats what were waiting for. Thats when washington will be forced to take action, when we reach that point where Foreign Investors have had their fill of u. S. Treasury securities, dont want to buy any more and that has the effect of pushing benchmark Interest Rates, mortgage yields, Corporate Bond yields and Everything Else higher and higher and higher, and washington will be forced to bite the bullet. Neil you know whats interesting, the backandforth on this, forgetting the fact, i think its always risky in washington, blame the other party for problems like that when you are compounding it yourself. Neither party, to marys point, ever gets a handle on this. Well, it wasnt it was the republicans who pushed through the tax breaks that have led to a large chunk of more Additional Debt and then, you know, they are crying foul over say funding the 9 11 Victims Compensation fund and saying, rand paul saying thats going to cost too much money. Wish he had that concern when he signed off on the tax breaks. Neil to be fair to rand paul, we had him yesterday, he did have a provision in that that was in the original tax cut to pay for them. Be that as it may, it does echo a point you raised that they do play fast and loose with this. They do. They do. We see a lot of, you know, large Tech Companies that are the big money makers, the Big Companies now are, you know, stocking cash overseas so that they can keep it safe from all the whatever is happening over here, changes to tax law or increased National Debt or just, you know, waiting around for congress to raise the debt ceiling. Neil know whats interesting, we did under, you know, the years of bill clinton and the internet boom certainly helped and the market boom, to johns point earlier prior to this certainly helped there, but i dont know if you can grow your way out of all this debt at these levels, but you can certainly reverse what has been the deficit trend now, trillion dollars plus. What do you think . I think that would absolutely be a very powerful thing. If there is a movement in that direction, i think that would assuage a lot of the concerns. Youve had all this rhetoric changing around what is modern monetary theory, does this matter, actually, if we have a deficit. At what point does it start to matter. Theres this conversation that makes a lot of people real nervous so you actually backed away from that and focused on reducing spending or reducing the debt and just kind of rebalancing. I do feel like there would be kind of, it would take a lot of the heat off. Neil yeah. Another idea thats bandied about, why not drop this whole debt ceiling thing and dont go through this kabuki theater, maybe make it, you know, debt to gdp or whatever, percentage, or dont do it at all. What do you think . One of the problems with that is it may again tell the rest of the world you dont really care about the debt ceiling and that could have adverse implications for the u. S. Dollar Exchange Rate and it also could create neil arent we the only major power that has Something Like that . But we are the major power. We are the worlds most powerful economy. Lets not forget. The u. S. Dollar is still the worlds vehicle currency. We want to keep it that way. The u. S. Treasury bond market is still the benchmark credit market for the rest of the world. We want to keep it that way. If the dollar falls out of favor, if Foreign Investors begin to price securities off of something other than u. S. Treasury bond market, then we got to become nervous. That might be the forerunner of a potential downgrade for u. S. Credit. Neil we had that even before, once it was done, right . Im curious, i feel like its not necessarily clear to me that the debt ceiling is necessarily the thing keeping all that in check, right. I think your point about the treasury market being the most liquid, the deepest, i think our laws being enforceable is probably a big part of that. I want to add one thing. Looking forward, we have a huge headache trying to control government spending. Thats a simple aging of the u. S. Population. My goodness. Im already there. 65 and older, 1. 75 million new americans turning going over the age of 65 in that particular age category. Meanwhile, the working age population, 16 to 64 years of age, thats growing by about 350,000. Neil mary is happy to pay for us. I got you. Well be working for a long time. Neil this is not a problem in the eyes of many. Its certainly not weighing heavy on the minds of millenials concerned about the debt ceiling or any of that stuff. I think were raised in this ill think about it at some point, we dont have to worry about it now. Neil guys, thank you very much. I apologize, we are truncated with those remarks out of the white house. You did see buzz aldrin and Michael Collins there saying this is not what we signed up for, this backandforth. It is what it is. Meantime, weve got this heat wave gripping much of the country right now. New yorks mayor has said, hes advising all new yorkers, they are putting out an edict set your thermostat no lower than 78 degrees. Thats hot in and of itself. There are a lot of people who say that will at least avoid all these utilities from going kablooey and they dont want that. We are keeping on top of that. Also keeping on top of liz warren talking about the heat, shes turning it up on wall street. We did the heat thing. All on basic cable. More after this. Prevagen is the number one pharmacist recommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Has been excellent. They really appreciate the military family and it really shows. With all that usaa offers why go with anybody else . We know their rates are good, we know that theyre always going to take care of us. It was an instant savings and i should have changed a long time ago. It was funny because when we would call another insurance company, hey would say oh we cant beat usaa were the webber family. Were the tenneys were the hayles, and were usaa members for life. Get your usaa Auto Insurance quote today. 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. Neil what if we went back . What if we really reenergized ourselves, did the jfk thing and made it a mission to land a man on mars before this decade is out . Thats probably a little soon. Maybe the next decade. Lets get the read from microsystems cofounder scott mcnealy, all things technology. I want to go into this, the more terrestrial concerns like china, but im wondering if thats what would give this big technological boom beyond what we have already seen, if space was a center goal again. What do you think . I think there are so many different areas of technology that need to be invested in. I think space would be maybe a little bit too narrow. I think the most important thing we can do is reduce regulations, you know, enable the private sector, enable i mean, its interesting that the private sector is driving space very aggressively right now. So im not sure, im not a Big Government guy. Im not into the government solving problems. It just sort of grates at me to think we want to put them in charge. Neil but if they were these private enterprises, we were somehow able to coordinate all of that, get this national sense of urgency that weve let this slip by where all these other countries all the way from china to luxembourg are exploring space when we sort of reduced ourselves to hitching rides to get astronauts into space, and that is something we should not let others dominate. What do you think . Im not im just not sure i want to live on the moon and im not sure that mining on the moon is going to really change our lifestyle. I think we have so many other terrestrial issues today that we ought to be focused on those and the government ought to spend less time on redistribution to buy votes and all of the weird things they seem to be voting on in congress lately. I think we need to get back to getting the private sector at work, getting everybody a job, making sure our schools are teaching stuff thats useful and move forward from that perspective. Then i think in a few years we might have a lot of investors who have cash and i know theres some Good Investments in things like leo labs, which is managing and watching all of the pace debris, youve got elon musk doing spacex and lots of other companies that are driving that. If we give the Capital Markets that money, they will find good reasons for doing investment in all things aerospace and space technology. Neil you know, whether we ever get back into space, i do know in the meantime, there are a lot of companies leaving china. Im wondering what you make of that now, whether we get a deal or not, if the die has already been cast with so Many Companies shifting production out of that region, some nearby places like vietnam and thailand, whathave you, but clearly hedging their bets. What do you make of that trend . Well, you know, chinas an enigma. Its the biggest market but its quite closed. I dont think we have fair trade agreements across the board with china when you look at how well we protect intellectual property here versus how well they protect it there. If you look at their blocking Internet Service companies here from competing in china, if you want to go to china, you have to do a joint venture and nobody believes that the tariffs and trade equity is there in what would be called a fair environment. China is not a tiny little economy anymore. Theyre the second largest, i believe, gdp, and growing like crazy. I think its time for a fair deal. Theres got to be theres going to be a lot of fighting and screaming and kicking to get them there, i believe. Neil what if we never get one . Get one . Neil a deal. A fair deal . Neil yeah. You know, we havent had fair deals with most countries around the world because we have been quite benevolent there. I think at this point, i think the leadership is saying why dont we make it a little more fair at this point and everybody ought to earn their way. Neil do you get a sense right now that so much of the market is obviously looking forward to a deal, if it were to come to pass, i guess even if they dont get a deal, the Federal Reserve will have everyones back by lowering Interest Rates so were in a kind of cant lose situation here, i always get nervous when i hear cant lose. What do you think . Yeah, you know, i was listening to the conversation just now about the debt and does it matter. Well, of course it does. Quantitative easing is fundamentally growing its allowing the deficit and its growing the money supply which reduces the value of the dollar and a devalued dollar is a tax on every income and asset in u. S. Dollars, and its basically quite a regressive tax on all americans, when we go out and print money and run a deficit. It is absolutely and politicians love, even donald trump loves a devaluing of the dollar because it makes the ability to go buy votes and to pump up the economy in a fairly dangerous way while taxing people without having to vote on it or say yes, i approve of a tax. Nobody thinks of a deficit as a tax, but it is. Neil it is indeed. Scott, very good seeing you. Try to stay cool, of course, where you are thats not a huge issue right now. But thank you, my friend. Good seeing you. Thank you, neil. Take care, bud. Neil number one toys r us was thought to be dead. Theyre back. Jardiance asks 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. Theres so much more to think about. 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. 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. I had no idea why my mouth was constantly dry. It gave me bad breath. It was so embarrassing. Now i take new biotene dry mouth lozenges whenever im on the go, which is all the time. New biotene dry mouth lozenges. Freshen breath anytime, anywhere. New biotene dry mouth lozenges. [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. Neil senator Elizabeth Warren making some news, saying private equity firms are kind of like vampires, not kind of like, thats what she said. Hillary vaughn on capitol hill with more on that. Shes definitely digging in here. Reporter she is. Senator warren warning voters about vampires and monsters, sounds like something out of a twilight movie but its not. Shes talking about private equity firms, tweeting this moments ago. Quote, lets be real, private equity firms are like vampires, bleeding companies dry and walking away enriched. My new plan reins in these monsters to save our economy. Her new plan would do three major things. It would block private equity firms from selling a companys real estate, then leasing it back to them for the first two years after they purchase a company. It would also Block Companies from taking, monitoring or transaction fees out of the company that they buy and it would also hold private equity firms responsible for the debt they incur. My plan says you got to stop doing that. If you want to buy up businesses, thats great, but you cant buy them up just to crash them and sell them for parts. Reporter the idea isnt going well with industry experts. The American Investment council ceo drew maloney issuing this statement in response. Quote, private equity is an engine for American Growth and innovation, especially in senator warrens home state of massachusetts. Extreme political plans only hurt workers, investment and our economy and neil, senator warren is teaming up with congresswoman ocasiocortez, issuing a letter to sun capital, the private equity firm, over how they have handled the discount retailer shopco. In this letter, they accuse sun capital of essentially looting shopco, driving it into bankruptcy, then also reneging on a promise they made to workers to offer them a severance package. Neil thank you, hillary. Its still early in this political season. Meanwhile, at the corner of wall and broad, the dow is up about 80 points. Microsoft, a big contributor there, hitting new highs as their cloud revenue continues to impress investors and users. Gerri willis on that and much more. Gerri thats right, nice day down here so far. The worlds only trillion dollar company, microsoft, soaring to new highs today, and wall street believes mr. Softy can go higher. Citigroup raising target prices on the stock to 147. All that optimism stemming from a blowout Second Quarter Earnings Release beating on the top and bottom lines. The company reporting record revenue, growing at 39 in a very crowded field. Meanwhile, fast food [ inaudible ] buying Pioneer Foods to boost its presence in fastgrowing africa. Pioneer based in south africa makes cereals, juices and other food staples. Pioneer shares surged 29 on the news. Pepsi down 1. 3 . Meanwhile, ab inbev agreeing to sell for 11 billion. Shares higher as you can see. And finally, maybe the heat wave has folks worrying about their ac and snapping up generators. I havent bought one yet. Are you buying one . Neil im getting concerned with the heat thing in general. If im not careful here, i could lose faith. Gerri drink water. Drink water. Neil thank you very much, gerri at the new york stock exchange. This heat is a very serious issue for twothirds of the country, almost 200 million americans. What are you doing to protect yourself . After this. 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. No matter what you trade, at fidelity at comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welcome to the neighborhood, guys. There is reward. Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. Neil all right. We have some dangerously high temperatures, in fact, triple digit temperatures that are already or will soon be gripping about half the country, twothirds at least in the 90s. To Nyu Langone Health doctor. Its interesting, i was looking at the breakdown of this. It is so widespread now that fully twothirds of americans are going to be impacted, many of them vulnerable to the very kind of issues you raised with me in the past that could really compromise their health. What do they do . Thats right. So first of all, i just want to make sure everyone understands this is not just about feeling sticky and uncomfortable. This is a real health hazard, particularly for as you said certain vulnerable populations. We are talking about the elderly, young children, anyone with a chronic medical condition, but especially those with asthma or heart conditions. Theyre more susceptible developing not just heat exhaustion but heat stroke which is a potentially fatal condition. What should we all be doing . You want to stay out of the hot, humid temperatures. Stay indoors whenever possible with the ac going, stay in the shade, if you have to be outdoors. Avoid strenuous exercise. Im always a big believer in exercising but not outdoors on a day like today. And you want to stay hydrated. You definitely want to be drinking fluid, water or fluids that have a lot of electrolytes because when you sweat you lose sodium and potassium. You want to really keep up with that and take care of your loved ones who may be elderly, might not have access to air conditioning. Make sure that theyre okay. Neil you know, doctor, there are a number of states and cities that are taking precautions to open up Public Centers that have air conditioning and the like, but the message seems to be if youre outdoors, try to avoid that, but if the power goes out, then all bets are off. What do you do . Well, first of all, you should know to learn to recognize the symptoms of heat stroke because if you see anyone who is undergoing those symptoms you want to call 911. That would be a rapid heart rate, rapid breathing, if you see someone who is having nausea, vomiting, they complain of muscle cramps, anyone who is showing an altered mental status. That means confusion or even just irritability although we all get a little irritable in these temperatures but some changes like that should prompt you to get immediate medical condition, and while youre waiting for that to arrive, anything you can do to cool off the person, move them into the shade if you cant get them into an air conditioned room, a cold towel, even just cold water or a hose on this person could potentially save their life. Neil well said. Doctor, thank you very, very much. Very wise words to live by and for those in good health and compromised health, do be aware. Half a century now after man landed on the moon, the guy now is setting his sights on mars. 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. You know what im talking about when your little grandchild starts talking to you. Something i couldnt hear for a long time. wiley its funny how Something Like just a hearing loss can have an effect on a relationship. melissa somebody would ask her something and she would just walk right past them. deborah i just could not hear. avo these are real people who are now living life to the fullest. Thanks to miracleear. Call out toll free number to start your 30 day riskfree trial at your locally owned miracleear. And schedule your free hearing evaluation. john when someone new comes in, i take the time to listen to whats important to them. Then i run a comprehensive hearing test to find out if they even have hearing loss. If they do, ill custom fit a hearing aid that fits their lifestyle and their budget. aurelia with miracleear, its all about service. Theyre personable. Theyre friendly. Im very happy with them. deborah when i finally had miracleear and i could hear for the first time, i started crying. I could hear everything. ben i went to miracleear. bobby i went to miracleear. ben but i told you to go to miracleear. bobby thats notoh avo call our toll free number today to start your 30 day riskfree trial at your locally owned miracleear. deborah i was hesitant to get the hearing aids because of my short hair, but nobody even sees them. avo featuring our latest technology, our hearing aids are nearly invisible, so no one will notice and theyre so comfortable, you might forget youre wearing them. grandchild can you hear me . ben yeah now i can hear my grandson again. avo call our toll free number today to start your 30 day riskfree trial at your locally owned miracleear. Your 30 day riskfree trial is only the beginning. We also provide you with unlimited checkups, cleanings, and adjustments free. Its why weve been trusted for over 70 years. And we have over 1,500 locations nationwide. wiley i see someone new, someone happy. bobby vo its really made a difference. [laughter] avo call our toll free number to start 30 day riskfree trial and book your free hearing evaluation at your locally owned miracleear today. We have the number one spacecra spacecraft. [ inaudible ] with significant maneuvering capabilities. Thats a great disappointment to me. Neil all right. Buzz aldrin, who will be my special guest tomorrow, by the way, talking about this on the formal anniversary of his and Neil Armstrongs walk on the moon 50 years later, saying that you know, this pursuit of the moon and Everything Else, weve got constellations, Everything Else, set sights on mars, whathave you, but big goals remain and he wants to see it. Robert, good to have you. There is this idea of i guess a competing thought here that the moon is the launching point to get to mars. I hope i have that right. Buzz aldrin, saying why should it be . There are other things you can do there, absolutely, but do you need that as a launching point . What do you think . No, we certainly dont need the moon as a launching point to mars, and you know, equivalent of apollo for us today is not to return to the moon in five years, its to get to mars by the end of the next decade. I think we can do it. Now, to even get to the moon by 2024 which is the goal that trump has set, we need to have a purposedriven program instead of a vendordriven program. Right now, nasa is choosing the most expensive way to go to the moon they can think of. They say they have to build a moon orbitting space station before they can go to the moon. They are saying they need a mars orbitting space station before they can go to mars which is beyond satire. What they are basically saying to trump is you cant do your program until we do our program. Hes got to put his foot down on that. But beyond that, he needs to take advantage of the new capabilities that are enabled by the entrepreneurial space revolution which is what i talk about a lot in my book the case for space. We have this revolution in space flight going on. We have space launch vehicles that are mostly reusable that cost onefifth of what they used to cost. And you know, with falcon heavy, which is operational now, and the dragon capsule which is almost operational now, okay, we could easily make it to the moon by 2024 and that would reestablish nasa as a cando organization. By 2024, spacex will have their starship reusable heavy lift vehicle and that will available mars by the end of the decade. We have to embrace these goals and embrace the free market that will enable these goals. Neil you know, the late great astronaut on this show many, many times, the commander of apollo 17, he admired and this is before it got to the degree that jeff bezos and elon musk have gotten with their private space ventures, he admired all that but he said you need a bigger entity enwrapping all of that, that we as a people, maybe government is too trite, have to commit ourselves to what we committed under john f. Kennedy. What do you think of that . Well, i agree with that, actually. I think we need nasa but we have to first of all give nasa clear direction, moon by 2024, mars by 2030 and not to engage in diversionary projects like lunar orbitting space stations and mars orbitting space stations we dont need and we also simultaneously have to free Nasas Human Space Flight Program to be purposedriven and not vendordriven, to actually spend money to do things, not do things in order to spend money. For example, right now, falcon heavies are available that cost 150 million a launch but nasa has baselined for their moon program a launch vehicle which isnt even flying yet and which will cost 1. 5 billion to launch, ten times as much. And theyre baselining a capsule which weighs 26 tons, so heavy that even the fls cant get it into lunar orbit with enough fuel to come home instead of dragon which only weighs tendons and which not only fls but even falcon heavy could get into lunar orbit neil they all kind of compete with each other, right . We have to sort of accept common standards but in some of the more private enterprises, they are territorial, right . Yeah, they are, but see, a free market requires not just free competing suppliers but free customers, free to choose. Nasa needs to be free to choose the cheapest and most effective launch vehicles in spacecraft. Theyre not right now. They are being compelled by politicians by senator shelby saying you must use the sls because its being developed in my district. As i said, this is talked about in my book the case for space but if we can take advantage of this entrepreneurial space revolution which has caused a reduction in the cost of space launch by a factor of five in the past ten years and is promising another reduction in the cost by a factor of three within another five years, all these things are going to be possible. We need determined leadership and we need to take advantage of the free market and yes, we can duplicate the achievements of apollo, we can show that we are still the kinds of people we used to be, okay, and but not only that, have Cost Effective human space flight program. Humans on the moon and mars to stay. Neil all right. We will watch it closely. Very good having you. I appreciate it. My pleasure. Neil in the meantime, you know, theres a little story that goes around maybe on this, the 50th anniversary about john kennedy saying in a speech to land a man on the moon before the decade was out, and a couple of people asked him which decade are you talking about. Of course he was saying the 1960s, a few years prior to our landing on the moon. He never got to see that. But do we need big visions like that where people actually say youre crazy to even be entertain them . Buzz aldrin says yeah, we do. After this. Neil have you been following this deep space thing . Its a threat supposedly from abroad that criminals could take advantage of it by impersonating ceos stealing from companies, all of a sudden to get an image of yourself at a certain age, it gets kind of deep, but suffice to say bad guys can take advantage of that and now a lot of people are advocating just dont use this technology here. Easier said than done. Our panel is back with us. One of the things, by the way, john lonski, mary childs, brett larson. A lot of people are saying first of all, what goes on here, how do you take advantage of this . Whats going on . Its kind of horrifying, whats going on. What theyre basically doing is theyve taken talks and speeches these ceos have given which is their actual voice, they plugged it in with some Artificial Intelligence and kind of made it into, for lack of a better term, they have made it into a siri that you can basically have it say whatever you want in the voice of this other person, and they havent neil is it that accurate that it would fool you to think this is my ceo talking . It has fooled people over the phone. Granted, when you are talking about a phone call, the quality doesnt necessarily have to be better. I would imagine in a situation of a phone call if it was someone saying this is urgent, i have been kidnapped or whatever the story that it is that they set up, you might let it slide a little bit that the quality wasnt great, it sounded like he was far away or she was far away, but its horrifying. The deepfake videos we have seen where they have former president obama saying something or Mark Zuckerberg saying something, those, you can kind of look at and say wait a minute, these guys clearly didnt say this stuff. But imagine getting a phone call from someone who is literally the voice neil but that looks real. If you glance, you might do a double take. Im sure we have all gotten the phishing emails that use every psychological trick in the book to get you to respond to it. I have gotten the instant message from friends who say, hey, my wallets stolen, you need to wire me some money. Like your wallets stolen, you are sitting right across from me, why are you messaging me on facebook. But in this instance, this is a very terrifying use of deepfake technology. Neil i touched on it because i joined together part of the same thing, the face app issue, and there, theres another thing if youre not careful, all of a sudden what . Right. This face app that everyone is downloading just makes a picture of you where you look more old. Like thats literally the utility and yet it gives access of all of your photographs, your content, your face neil so you download that app i would not, but yes. Neil right, but youre giving it access to all your photos. Exactly. This company is based in russia. We dont really know what theyre going to do with all of this content. They dont say, obviously, why would they. But functionally, if you kind of add things up and you give your paranoid self some leeway here, you could suddenly appear in a video saying things that you dont support like you just gave them access neil this is like a shutterfly kind of deal, these are my pictures, you want to make an album out of it . Now there are more nefarious elements involved. Definitely. I had a weird experience two weeks ago. I got port hacked, where they hack the port on your phone. I think they were looking for bitcoin. I dont have any bitcoin. I dont have any money. It ruins your two factor authentic atio authentication. Everything you set up at your backup security, you get locked out of everything. Neil thats why john doesnt even own a computer. You know, heres whats troubling about this. This is really costly for society. Here we have a new type of criminal activity that we have to be on the lookout for all the time. Neil its a cool idea, you can do an older version of yourself. As you are alluding to, it makes me not trust high technology. Do i really need this . What type of trouble might this get me into at some point in the future . Neil toys r us is coming back, a couple stores. I guess its not dead yet. What do you guys think . Listen, i wish they would bring back the times square store. That place was amazing. There was a ferris wheel. They had a giant section of legos. You could build the empire state building. These are important things for the children in our life. I would point that out. I think toys r us is a side effect of amazon. I dont think kids now, kids these days, dont have the joy of like running through the aisles of a toy store with all the fun stuff to play with. Thats something that sorry, one person bidding on toys r us last year was saying, a toy maker, says its so critically important to have that ability to test toys in the aisle, so these new stores will allow that. But they are making it much more difficult for the suppliers, the toy providers, its much more speculati speculative. They put these toys out, the kids test them but they can return it. Its not like they bought the imagery in the store. Neil where do kids go today to get toys or sample them . Walmart, i guess . Target. They can look at what amazon has to offer. Getting back to toys r us, the real story we are overlooking, why did it go under . It went under not because the business model, the business was weak. It went under because it had way too much debt. It turned out that maybe cash flows werent as great as neil bad leveraged buyout. Thats what happened. What Elizabeth Warren is talking about is basically what happened to toys r us. Neil but there was a lot of Venture Capital that went into that to begin with. They paid rich dividends and you cant police the business model. Nowadays with this latest runup in leveraged loan activity, i come across these names, these businesses i never heard of, they are borrowing one, two, 3 billion in leveraged loan market. You wonder whats going to happen when the economy sours. Neil youve got to get up on this Technology Thing here. Start with an iphone. Work your way up. Neil all right. Guys, thank you all very, very much. Lot of breaking news. Dow up 66 points right now. The temperature is about 200 degrees. What is it on the surface of the moon . Close. After this. 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. Test test neil coming to america so much more, eddie murphy could be start in netflix. Joe piscopo an alum. Charles payne. To you. Charles neil, thank you very much. Good afternoon, im charles payne. This is making money. Were back in the green. Big names helping the stock market. The breadth also helping with driven by corporate profits as first week of earnings season in the book. I will tell you howto book and invest profits, not the same as earnings. I will teach you that. The fed, he joins most investors hoping for rate cut. I say the commander will be thrilled by the new thinking by powell and company. It was 50 years ago tomorrow. Apollo 11 astronauts made the first visit to the moon. We remember the historic moment. That and so m
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