Ambassador to mexico and el salvador. Ester george joining us on the company with another inversion to talk about. Former economic senator United Nuclear iran chairman joe linerman, kyle beth, great insights there on markets and china he will be here onset. Dont miss a moment of it, we have a big show this morning, futures are down, we know why, markets are lower right now by about 60 points, down 7 on s p and nasdaq down 32 after yesterdays big rally boosted by positive retail earnings and stimulus hopes, china issued trade warning increased tariffs could escalate tensions and they are urging washington to meet beijing halfway, President Trump spoke about it yesterday. We are winning against china, they lost 2 and a half Million Dollars in a short period of time, has to be a deal fit for the United States, they want to make a deal, probably we will make a deal, somebody had to do it. I am the chosen one, somebody had to do it and im taking on china. Maria have to admit, the president has changed the conversation on china, liz peek. For the last decade american corporations basically did whatever it took to stay in china to exploit the cheap labor there and also be present in a growing market. I think it should have started 10 years, very important confrontation and one by the way farmers of america are still supportive of even though they are the people who are getting, you know, basically hammered by it. So we will see what happens. I do think china does want a trade deal. Its just right now they have both sides have to safe face and its very difficult calculation. Maria we have seen impact on the chinese economy. 80 of north American Companies are trying to diversify, who wants to be dependent on nonrule of law country . Maria affecting both economies, oped, cut the trump uncertainty tax, mr. Trump doesnt need to win stairdown with jinping, he can make promise now and respond accordingly if he gets second term. Elizabeth warren sits in the white house. Very good analysis there, james. Thank you, thank you on behalf of my colleagues, yeah, the trade war is having cost, we see that in Business Investment slowdown. I think it would turn down immediately if there was a deal, if there was some progress and then we could monitor to see if china follows that, but, i think its also a another reason if the president wants to continue to play this out with china to to seek trade peace with friends. Stop threatening europe on auto tariffs, get rid of steel and aluminum tariffs, look for zero tariff deals with our friends in asia, there are other places there but sometimes takes one time to move supply chains, if he pushed to zero tariff with friends in asia maria he feels theres global alignment against china and bad behavior. I was with art the other day, if theres a china deal, hes expecting dow 30,000 if theres a china deal, taxes and rates are impacting taxes just as much. He talked about it earlier in the week as a way to boost the economy, this is what he said yesterday. Im not looking to do indexing, i studied indexing, i want taxes for the middle class, the workers, the people that work so hard. Maria so no taxes there, no tax cuts . Disappointed. Index cut to the Capital Gains tax indexing would be powerful. You we wanted to see that . I do. Maria the Federal Reserve making a comment yesterday that midcycle adjustment, dont expect this to be the new era of a change in policy, i found that disturbing, what about you . The markets clearly expecting a great deal more, i think that would be the challenge when we have september meeting or even friday when chairman powell speaks, but, yeah, the short end of the curve is telling us we have to cut, we have to cut more. Minutes were out and central bank thought recalibration of policy, noted how Global Economic growth remains at risk, what do you think that means, liz . Well, i think its all about what is happening outside of the United States, i think the fed what we saw in those minutes was a real different of agreement because not everybody is on board with cutting rates, how can they be, our economy is doing pretty well and rates are very low and there has been this general thought you want to get them back to more normal levels but the truth is we are out of step with the rest of the world and by the way, the rest of the world has to question whether they are doing the right thing with german 30year bond did not fell well at zero Interest Rates, shockers, people want to get return for the money, totally distorting World Markets and i think the most positive thing thats happened recently is germany talking about fiscal stimulus, thats exactly what has to happen, one of the few countries that can do it and they should do it. Maria what do you think, james . I dont think we want to be in step with europe and negative Interest Rate policy, i dont see rates as being too high, as driving any business decisions, i think its all about trade, im looking forward to your ester george interview, im not sure she buys into this either, that we need to keep cutting rates, doesnt seem that way from the last minutes but on the taxation, really disappoint, i think the president missing, former chairman, economic advisers, buying into this crazy argument that that only rich people benefit from Capital Gains tax cuts, no one else in america owns any assets and and his Corporate Tax reform proved that when you cut rates and you encourage investment, Workers Benefit hugely and that was research and led to great tax reform and we need more of it. Maria lets not forget all of the 401 k s out there that benefit from the Capital Gains tax cut and the payroll tax cut was also a head scratcher, why not do the indexing, why not well, what happened is the markets responded to trump talking about tax cuts. The white house is scared about a recession. Maria talking points on the left. The recession narrative and i think it is a narrative which all of a sudden that President Trump realizes i stepped in it again by saying that and he had to reverse course. To nancys point, the Capital Gains indexing is something that makes economic sense, so much weight of argument behind it and by the way, 52 of americans own stock directly or indirectly according to the fed, its not an elitist activity at all. Maria it gave the left an opportunity to criticize him and say hes panicking. Yeah. Maria and obviously it struck down the conversation which is what they wanted. Exactly. Their narrative for a day, if you get the good policy, he shouldnt worry too much about that. Maria they cant talk about things about unemployment, oops, its at 50year low, we saw 3. 1 and 2. 1 growth in the first two quarters, so its obvious that they are, you know, ramping up this talk of recession because they dont know where else to go. Pounding the table when it inverted for 20 minutes. Exactly. I found that astonishing. So many weird reason that is the thing could invert. I thought yesterday they talked about the inversion that happened in terms of buying and selling security for various groups makes sense, its not an economic signal in my view. Maria more on this, top stories this morning, short break, when we come back a manhunt is going in california, police are searching for a sniper wanted for shooting an officer, we will take you there and ge details, choice words from harry reid about progressive policies m candidates are promoting on the left, we will take a look at what he said on the party policy, stay with us. Alistic tr. Beep, beep, beep, beep children traffic jam announcer and the worlds first never bump bumper cars. Children never bump announcer its a real savings hootenanny with options that fit your budget. Thats fun for the whole family. Announcer only at progressive par. Maybe an insurance park was a bad idea. Yeah. Yep. Maria welcome back, two u. S. Service members killed in action. Cheryl good morning, soldiers identities and details on what happened, still not known, 14 troops killed in afghanistan so far this year, right now special envoy in qatar for peace talks with taliban and possibly end americas longest running war. Well, a manhunt here at home for the sniper who shot a sheriffs deputy outside of a station, Angel Reynosa expected to be okay, the bullet proof vest. Two stocks we are watching for you nordstrom and l brands, retailer posted a strong profit despite weakening secondquarter sales, however, lowered guidance. Take a look a shares of l brand, down 1 in extended trading, the Victoria Secret owner with disappointing sales. Store sales falling by 6 . Dicks Sporting Good will be coming out, the gap, maria, and ross stores, we are talking about shopping, maria. Maria so far a very good retail season in if he terms of what we seen, thanks, cheryl, we will take a break, when we come back, taking aim at auto sector, his plan for more auto tariffs coming up. Focus on the Federal Reserve, chairman jay powell view rate cut, the yield and inverted managingaudreys on it. S . Eating right . On it staying active . On it. Audrey thinks shes doing all she can to manage her type 2 diabetes and Heart Disease but is her treatment doing enough to lower her heart risk . [sfx crash of Football Players colliding offcamera. ] maybe not. Jardiance is the number 1 prescribed pill in its class. Jardiance can reduce the risk of cardiovascular death for adults who also have known Heart Disease. That means jardiance can help save your life from a heart attack or stroke. Plus, jardiance lowers a1c and it could help you lose some weight. 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This is how car buying was always meant to be. This is truecar. 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. Maria welcome back, markets under pressure this morning, take a look at futures, dow futures down 30 points, off of the lows of the morning, s p futures down 4 and nasdaq lower by 19, we are talking about the Federal Reserve today, stock maintained gains on strong retail earnings after minutes of Federal Reserve showed that the officials believed that the july rate cut was simply a recalibration of policy, joining me now optimal capital analyst francis newton. Francis, good to see you this morning. What do you think that tells us, recalibration for future rate cuts . Well, i think that they are not committing by anything and thats why trump is frustrated by. Its about turning the titanic, those Interest Rate increases probably actually havent worked their way completely through the system yet. Trump is saying get ahead of this, get ahead of this, interesting to see what the gdp numbers Going Forward to see if we are following the rest of the world, hard to take out the comps from last year on some of the earnings, thats what trump wants them to get ahead of. The regional fed president talks about how much they listened to businesses in their districts and im wondering are any of them here hearing from people, the rate is too high, you have to cut a quarter point, is this the thing in business because i havent heard it . Its not keeping me up at night, no. Theres so much debt in the system right now that that tinny little quarter point makes a bigger difference over the longer trajectory and i think thats what the fed is being challenged with, obviously most of europe is negative and thats the hesitancy of the part of the fed, two theories, do they start cutting now to get ahead of the wave which makes sense to turn the titanic or so do you save the bullets . When we had tech global burst, 500 basis in 2008, quantitative easing with the rest of the world going negative, the bullets become very valuable. Maria does it bother you that the yield its at 10. 85 , whats your answer to rockbottom numbers . My answer is theres a record amount of debt in the system because ben bernanke said we did not finance enough, quantitative easing and the only way to have super, super low yields. Thats exactly to marias point thats why they, in fact, are they behind the curve, overseas obviously is tremendous red flag it seems to me causing all kinds of distortion, so businesses may not be Holding Back Investment but exporting right now with the strong dollar is clearly a challenge, i mean,i just think we cant be the odd one out, i totally agree with you. The thing thats interesting, better to get ahead of cutting, think about this, everyone is chasing the premium on the face value of bonds. If yields pick up a little they will lose so much value, when they mature they will have losses because its so low or if they sell bonds, endure huge losses and the reason the bond market is inflated because the United States is one of the only places for yields. Endowments, safe treasuries, those yields pick up a little depending on your maturity which is why the shortterm is most popular right now. It is really a touchy thing. What about the 10year, the real yield is negative. Very very easy. Do you worry about that and if so whats the solution . I will tell you what makes me worry about that a little bit, is that we had peak earnings in europe and china in 2017, we had peak earnings in Third Quarter of 2018 in the United States, when you look at the Business Cycle in general, we are just a little bit late rolling over and i feel like when the United States finally rolls over people will go to cheaper assets in europe and china eventually, i dont know if they have bottomed out yet and i think that becomes very important as far as where are we on trajectory of trying to paper our way out of this debt with decelerating earnings and earnings recession, if we have credit problems we will see recession and best scenario stagnation until we get less leverage. Maria would you buy europe equities, they dont have any bullets in terms of cutting rates . I wouldnt buy them just yet but they are going to look very cheap if the expense of markets in america start to really fall. Yeah. Theyve been cheap for a long time. I think they are going to get a little cheaper, i think they are trying to bake in quantitative easing but at some point their stimulus is ahead of our stimulus and the United States start the decelerate a little bit more. They are ahead but its not working. Not yet. To answer the question, shouldnt savers get a return on on their money when they lend, whether its an institution or a government . Ideally, absolutely, but i think we are on praecipes if you read ray dalios book, the painful option that we have rather than having debt crisis, if you go back, some of the things people from the left have coming in, this is not the time of spending tons of money in the environment, spending tons of money on Free Education and free health care, its not the time and the cycle because we are loaded down. Maria would you allocate money in the stocks right now . No, too high for me. Maria selling to any rallies . Im actually selling into some of the rallies on certain stocks, im lowering my equity, at the firm we have very low exposure to equities, utilities, we have been doing great all year because of the defensive plays, personally im unloading stocks for the fall. Maria nancy are you on the other side of the trade . I am. [laughter] we will talk about how youre allocating capital. Francis, good to see you, thank you so much for joining us. Coming up wild fires ravaging the amazon rain forest with no end in sight, heavy smog heading over several brazilian cities, harry reid going after progressives, what policies he claims are a loser for democrats and we are taking a look at nordstrom shares soaring this morning, better than expected earnings, stock is up almost 10 , back in a minute right here. Maybe ill win saved by zero maria welcome back, good thursday morning, thank you so much for joining us, top stories before 6 30 a. M. On the east coast, markets pointing to lower opening this morning, dow industrials down about 35 points, s p down 4 points, nasdaq lower by 21. This after strong reports from retailers yesterday, the ease fears of slowdown have pushed markets much slower, almost 1 , s p was up 23 and nasdaq up 71, almost 1 , we also have the 10 and 2year bond yield invert briefly before closing bell. In europe this morning, markets look like this, there was an unexpected rise in the euro zone purchasing managing index for the month of august. We had germany selling, cac quarante in paris down 17, ftse 10 is lower by 34, in asia overnight markets were mixed, hang seng and hong kong down as protests continued, down almost 1 there, the others fractionally moving, 2020 race, the democratic race is thinning out. Bill mahr slamming Rashida Tlaib, the lawmaker calls boycott of his program. President trump taking on automakers calling them foolish after rollback in regulations, all the stories, first top story this half an hour, 2020 changes, washington governor dropped out of the race for democratic nomination for president yesterday, this is former Colorado Governor John Hickenlooper said to run for the senate after vowing from race last week. He called the policies like medicare for all and open borders unrealistic, yesterday when i hosted your world on Fox News Channel i spoke with 2020 hopeful and ohio congressman tim ryan about the policies of the 2020 candidates. I think going for taking people Privates Health insurance away is part of our Healthcare Plan is stonecold political loser for us, bad policy, people have negotiated really good contracts, Union Members like the ones that are behind me in iowa negotiated good healthcare, sacrificed wages, you cant go in and say that you will take their Health Insurance away, thats a loser for us and im not for that. Maria how did this happen, how did the Democratic Party swing so far to the left, congressman, you have plans and thats not where much of the country is. Well, i dont know how it happened, it gets away sometimes, weve got to keep our focus on how does everybody get universal coverage. Maria joining me right now daily caller editorinchief christopher bedford. What do you think about the policies, harry reid now slamming his colleagues on the left. I think its hard to stand up on this stage, a lot of the guys have run on issue candidates, no one else on the stage who is going to have the cuts to call Global Warming important issue and have the gut to say the president is a white nationalists, how is he going to use that and bring this issue and i ject the issue when its already so deep in the democratic bloodstream, not a lot of room for issue candidates. Maria moderates are getting squeezed out, liz. Not a single moderate that has been able to come forward except for joe biden, most democrats i know are absolutely horrified by by array of candidates. Most of my friends cant find who to vote for. Farleft candidates are terrifying in terms of their policies, so, look, thats the good news. Maria a recession wont inevitably sink trump, democrats will lose voters by themselves. [laughter] the most offensive thing is people like beto orourke saying the country is profoundly racist and all Trump Supporters are racists. If theyre expecting any trump voter to cross the line and vote for a democrat after being called a racist, forget it. Its not going to happen. People are dug in and they are angry at the vilification of President Trump. Maria new york city mayor bill de blasio has been trying to attack the president and policies and now hes getting laughs in iowa after recorded video message had some audio problems, watch this. Guaranty working people like other industrialized country in the world, guarantied working people by law, 2 weeks, paid vacation every year. I apologize, but this new yorker volunteers to get rid of him for you. [laughter] maria, oh, my god, chris, sounds like he set the balloon. That was incredible, he didnt have a great day, missed flight or canceled and malfunction, you live in new york city, its amazing he didnt have a challenger to run for governor again because i havent come across a Single Person in new york who think hes great and yet hes running on the national platform, i dont see any future for him and i actually dont think that even if he had been there in iowa he would have suede too swayed too many people. Weve been talking about the agenda of the democrats moving left, you look at polling and their voters are not that far left, a lot of them call themselves moderates, even conservatives and yet john delaney, former maryland congressman, the one person who was really challenged in a big way, the medicare for all insanity is not really getting a big reading in the polls, what do you make of this where the democrats say to pollsters they are moderate and they are not embracing candidates who are pushing more moderate policies . I dont think anyone is in the mood for moderation right now, the country theres conservatives and the republicans and the Trump Supporters are excited and the left is envious of that and they are extremely excited of President Trump, they are going further and further left, after president barack obama so fundamentally country, shifted the economy, the Democratic Party, thats just a platform now to push further, so anyone who says hold on a second, hold on a second, this sounds crazy, guys, thats sounds like a nay sayer in the excitement of a primary where people are eating on red meat but i dont think to your point that this is a good strategy for winning general election. Chris, dont you think also that democrat primary voters tend to be just as republican primary voters are, somewhat to the extreme of the party in terms of ideology that they are a little more leftwing than the mainstream democrats . Certainly, look at iowa, places like folks rand paul and rick sanitorium have done, itll take South Carolina before you start to see a candidate like joe biden take a lead in a more conservative state like that. The primary right now starts in places, new hampshire, new england is gripped with we hate donald trump fever and california having role this round, california is a state that has no tolerance whatsoever for anything that wreaks moderation. Tom perez is running the party, hes the chairman of the dnc and he was president obamas labor secretary and then theres the squad, chris, congresswoman tlaib slamming comedian bill mahr after he criticized support of bbs movement, boycotting israel, tlaib to boycott mahrs show. Some people have one move only, boycott, move away. Does tlaib want to boycott 93 of her own party . I think she does, she does. Shes the kind of candidate that would win the presidency and put everyone against the wall, bill mahr is an interesting guy, hes upsetting people, whoever is in front, i dont think theres a person watching dc who hasnt thrown a jab at which makes favorite here, but i dont i dont see a future for this bds movement, its a social justice thing, a College Thing and if theres a future for it its being educated in our schools right now but not house or congress. Maria hes wishing it on, bring on a recession, thatll get rid of donald trump, nancy, do you see a recession on the horizon . I dont see it in the numbers. I think theres things to be worried about but i dont think recession. Maria wish a recession has got to be the thing that takes the recession, hes not going to be impacted by a recession . They started attacking the president by saying how can you make America Great again, america has always been great, switch today america has never been great and now switched to can we have a recession, this is this is the crazy train, whats going on right here and a lot of folks and you know, people who you would regard as sane or normal and intelligent, rational observers have been driven mad by the president s policies and a lot of the Democratic Candidates and commenters and other channels are certainly among them. Maria only emboldening his base, by the way, chris, great to see you, christopher bedford, meanwhile devastating fires in amazon fires in brazil, blanket of over the country. Cheryl the fires set by loggers burning at record rate with smoke so big you can see them from space, smog appeared nearly 1700 miles away plunging, the city of sao paolo in darkness. Simply good foods is buying privately held quest nutrition, maker to have quest bars, you might have seen them in the grocery store, billion dollar deal, the stock is pretty happy, 45 so far this year. And then this is interesting, maria, new High Resolution images of the titanic are now surfacing, 4k images from the first man dive to the ocean liner in 14 years and its going to be part of new documentary on the tragedy which we cant seem to get over, the exploration uncovered the ship thats deteriorating. We are so so fascinated by the titanic. Maria quick break and taking aim at auto sector. Why not, we have the details, gridlock headaches, which city has the worst delays when it comes to traffic, you would be surprised, back in a minute. At synchrony, were changing whats possible every single day. But what does changing whats possible mean anyway . 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. From adding unique capabilities to your companys apps to bringing you loyalty programs, our technology and Financial Solutions are changing whats possible in all sorts of ways. So, how can we change whats possible for you . Maria cooper veto bills requiring sheriffs to cooperate with ice, governor roy cooper says no to legislation a day after North Carolina house members vote today approve it. Senate okayed it in june, republican who is control the house and senate could try to override the veto but theres not much more hope until democrats break ranks. Court finds colorado electors wrongly forced to vote for Hillary Clinton in 2016, the decision considered a victory for socalled faithless electors, people who cast Electoral College vote for president ial candidate who is not chose begin majority of candidate, cast their electoral votes for Hillary Clinton, but who we wanted to vote for john kasich instead. And the mercury news says bay area traffic delays ranked second longest in nation, the urban mobility report released today examined 494 urban areas in puerto rico, Southern California ranked number 1 with annual average 119 hours delay per person compare today 103 in bay area, numbers show commuters are spending more time and money in their car since 1982. Wow. Lot there to talk about and since we are on the subject of san francisco, nancy, i have to ask you, whats going on in san francisco, give us your sense, assess it for us because we see the pictures of Homeless People and even digital poop map, there is. [laughter] maria im sorry to bring this up, its 6 47 a. M. In the morning, pretty disgusting. Its just bad policies that we are talking on a national level. If you drive in the bay area the traffic is one thing, the roads are like a thirdworld country. I left about 5 years ago and you couldnt pay me to go back. Its a jerry rigged map so you have its impossible to elect out of the super majority of democrats and the policies like no Water Bottles at the airport, its not even logical. Maria you could still get a plastic of water from coke. Look at chicago 8 shootings a day on average, look at la, new yorkers sort of feeling what we have nationwide rollback of broken windows policing and attack on cops, attack on ice, this will not end well and what really kills me is democrats are never charged with failures of the cities and state that is they manage, why doesnt one of those debate moderators say, hey, youre so smart about running a city or state like california, how come homeless there is worse than anywhere else in the country. Maria didnt have a problem with the president pointing out whats going on in baltimore on cummings. In new york weve had reform, political competition, you see whats happened in baltimore, oneparty rule. Maria quick break, slamming the brakes, President Trump going after Car Companies over rollback of fuel efficiency standards, risky business, Mortgage Market opening to questionable borrowers, how it could affect the Housing Market, more after this. Stay with us. This was me before liberty mutucustomized my car insurance, so i only pay for what i need. And this is me now any physical changes to this mans appearance are purely coincidental. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Maria welcome back President Trump calling out Auto Executives for putting brakes on emission. Ford, founder of Ford Motor Company and General Motors are rolling over willing to spend more money on a car that is not as safe or good and cost 3,000 more to consumers. Crazy, the president writes, he went onto say the proposal would make cars cheaper and safer with little impact on the environment, 13 states have joined california in vow to go lower emission standards, joining us right now the car coach lauren, thank you very much for being here, your reaction to all of this. Thank you, maria. Well, not in 100 agreement with what he is saying, what hes saying is that automakers are becoming cheap, there should be one rule for the whole country, one state should not have the power for the other 49 and when california says hey, we found more vehicles in the United States, we will call the shots, what happens consumers pay more per car, somewhere like 3,000, that hes correct, if you want to make 54. 5mile gallon a range, you will have have to make cars lighter and lighter and will become electric, thats what they want, makes no sense for the bulk of the country, this becomes a problem, if they get lighter that means they are not as safe although todays current vehicle and i have driven new gm and ford products are very safe, but if you want to keep making standards so high unobtainable you will have to give up something somewhere and thats what hes talking about and look at the total sales, they are just not selling. Maria yeah, liz. So is there any legislative fix for this . What has to happen to get california out of the business of dictating what cars americans buy . Thats an excellent question, liz, something as we as auto journalists keep talking about, when one state calls the shots, everybody pay it is price, one thing that the president is doing, in september they will put out finalized rules, better solution for this corporate average fuel economy, if we go with trumps plan, what will happen is all the states will have an equal say. Now, this will probably go to courts in california because thats the way they like to play as long as the president gets reelected, this will get resolved in his favor because in truth, california shouldnt have all the all the say for everybody else. So thats the only way this is going to work and get the new standards, its going to go to court, hes going to win in court but going to take time. I think the answer to this being good for all consumers is the president getting reelected. Maria nancy. Lauren, i have a question for you, i was wondering what you think about the fact that the batterypowered car, the waste is never talked about and the danger of the batteries and i just wonder if you have a view on that and if you think thats going to become an issue in a place like california that should care about that . I do talk about it, im probably the only person that takes about the waste thats involved in battery vehicles and thank you for bringing that up, by the time they produce raw material and the time the vehicle is done, theres actually more damage to the environment than there is for an internal combustion engine. Beyond that, no one is talking about all of the charging stations, they have Magnetic Fields alternative, who wants charging station next to their house, you dont want to build next to power station, hey, dont put your phone in your ear, we dont know what kind of Health Impact there is now. You can sit on a bank of batteries, i think theres a lot more to this that meets the eye and we are just talking about the surface because thats the agenda that the green people want to share with people. Maria great point, lauren, thanks for being here, we appreciate it, we will see you soon. Thank you. Maria new report that is top u. S. Aides met with embattled venezuelan Nicolas Maduro urging him to step down, we will talk about that when we tom come back. Taylor swift to rerecord music after the sales of music when we come back. Or. That you cant be both inside and outside. Most people havent driven a lincoln. Its the final days of the lincoln summer invitation event. Right now get 0 apr on all lincoln vehicles plus no payments for up to 90 days. Only at your lincoln dealer. Maria welcome back. Good thursday morning, everybody. Thanks so much for joining us. Im maria bartiromo. Happy thursday. It is thursday, august 22nd. Your top stories right now. U. S. China trade turmoil continues to work its way through markets. China says it wants to meet the u. S. Halfway. It is warning that more tariffs will, quote, lead to an escalation of economic and trade friction, unquote. Once again, warning of retaliation. Focus on the Federal Reserve. Weve got the minutes out yesterday revealing that the july rate cut was a, quote u midcycle 5 adjustment, not the start of a series of deeper cuts. We are looking a lower opening for stocks this morning. Off of the lows actually, were pretty much at the lows right now, dow futures down 42 points, s p futures down 5, nasdaq futures lower by 24. This after very strong reports from retailers yesterday. That eased the fears of a slowdown in the economy, pushed markets higher yesterday. Good news on target and lowes. Dow trials wer industrials weret the close, s p was almost 1 higher on the nasdaq and dow. 10 year and two year bond yields inverted briefly before the closing bell. European indices, looking at weakness as well. There was a rise in the eurozone purchasing Managers Index for the month of august. That would be a positive. Germany sold 30 year bonds at negative yields for the first time fq100 down 38, dax is flat, down 4 points. Asian markets mixed. Hong kong was down as protests continue there. The u. S. Holding secret talks with venezuela, a look this morning at the efforts to push Nicolas Maduro out of power. High debt, low credit score, no problem. Risky mortgages are on the rise again. What it could mean for the Housing Market. Plus, it is not about winning all the time, the inspiring speech a coach gave his team after losing the Little League world series. All those stories coming up this thursday morning. Joining me to break it down, Fox News Contributor and columnist for the hill, liz pete. Assistant Editorial Page Editor, jim freeman and nancy tingler. Whats on your mind . I think if china wants to meet us halfway, theyve said theyre willing to have a policy against stealing american inventions but they cant put it into law. I dont know why theyre saying they cant put the policy into law if theyre willing to adopt the policy. That would be a great measure, maybe then the president can take the tariffs off. Maria we all know what the big ticket items are. We know really what china has been doing, stealing intellectual property, forcing the transfer of technology. The president cant do a deal unless he gets a commitment on these things. He cant do something halfway. Critics will slam him for giving up halfway through. Chuck schumer knows thats the toughest thing for the president right now would be to see a slowdown in the economy and he thinks that the trade disagreement with china could get us there. So he is allin on the china trade spat. I mean, it really is cynical. It makes me cry. Im a little worried about the trade deal not getting done. Maria you are . I think corporate ceos, the confidence has declined. Exactly g. Cap expending is basically flat. Good productivity numbers were enjoying is from cap ex spent years ago. Its a lagging indicater. That troubles me. I think trump those be careful President Trump, sorry. No president has been elected with a recession since the second word war. Despite the other side, the other candidates being maybe weak, i do worry about the impact to the economy. Maria it will have a big impact on the markets if we were to get a deal. Art laffer told me if we get a deal with china, hes looking at dow 30,000. Thats something markets are watching closely. It would be euphoric. I think markets would go up worldwide. I think everyone is suffering from the same malaise of trade being diminished. One thing we havent talked about today is the fact that it looks like were kind of close to doing a deal with japan which is not insignificant. It would open up their markets to more Agricultural Products from the u. S. , change some of our industrial policies versus japan. I think any deal right now, any trade deal would be a big win with the president. Maria for sure. We have to see if theyll stick with big ticket items. They broke promises in hong kong, breaking promises in the wto. How do you believe them. Thats an argument to get into quickly. History says youre going to have to watch them. Its all about the enforcement anyway. Who knows whether they keep promises in the future. In any deal. Yeah. Because whatevers promised, you wont necessarily get it later anyway. So this is an argument to strike the deal and then monitor and pursuantish them if they dont respond well. In the basic law between hong kong and china, this autonomy that theyre supposed to have expires in 50 years. So theres that. We dont talk about that. But there is an expiration to all of this. Ive got to get your take on the protests going on and what it means for hong kong. This is a really important story. Joining the conversation is the kansas city Federal Reserve president , ester george, well get her take on jay powell, what he might say, where the fed it right now on rate cuts. Plus, former connecticut senator, senator joe lieberman. William lee is here and kyle bass as well. Weve got a big two hours coming up. Top stor story this hour is venezuelas deep divide. U. S. Officials reportedly Holding Secret talks to push nicholas ma diNicolas Maduro ou. Venezuelas top officials negotiating to secure safety, considered a major breakthrough as the regime opposed holding a new vote. Joining me right now is the former u. S. Ambassador to the united nations, ho honduras, meo and the philippines, john negroponte. Thank you for being here. Your reaction to whats happened in terms of secret talks between the u. S. And venezuela. Kind of takes me back to the time we were trying to negotiate mr. Noriega out of power in man panama and those talks ended up not faring as well and the administration had to go in with force, the Bush Administration ultimately did that. I dont know if this situation will turn out differently. I think the big issue is whats the price were going to have to pay to mr. Maduro for reaching some kind of agreement . Is he going to be let off the hook completely . Is he not going to be accountable for all the terrible things that have happened in his country for the fact that venezuela has become a narco trafficking state . I think the devil is going to be in the details. The other thing is how what kind of opportunity is this going to result in for the opposition . Are they going to be kind of frozen out with the old maduro types allowed to stay in office or stay in their current positions . I think the details are going to be extremely important in this and i hope that were taking a very firm line with them. Maria yeah. Well, let me switch gears and ask you about immigration because the Trump Administration is proposing a rule to change border detentions, allowing the government to hold migrant families in custody indefinitely. The move likely to face Court Challenges we know. It would end the 20 day limit currently in place. What do you think about this, ambassador . We know that a number of people are coming to the border because they know theyre basically saying, i give up. They want to get caught because they know that theres that 20 day limit in place to be held. Yeah, right. Right. Well, i gather that it is not really a matter of doing it indefinitely and i think theyre going to process these. Its actually easier to process these cases if the families are together, the parents and the children, rather than separating them. I think the important thing is to have a good processing approach that is able to deal with these cases as quickly as possible. On the other point that you made, i think that the existing system has been an incentive for people to want to get children across the border, because then they can be released into our country and can stay for an indefinite period of time. Its been a bit of a magnet for migration from points south, up towards our country, and i think something did have to be done. Maria yeah. Well, when we went to the border it was incredible to me when i saw these kids and the positions that they were being put in and theyre showing up sick because they were walking or hitchhiking for four months. Right. And i think, again, i think the problem is that the Current System gives an incentive for people to want to take the chance of coming up here and crossing illegally in the hopes that then once the children are in, ultimately this will help get the parents in as well. I think much better that they be held together and ultimately of course much better that we find ways of dealing with the immigration, these migration issues at their source, at their root, in the northern triangle of Central America and in mexico. And i think that can be done. The one thing i would question about the administrations policy is the cutback that theyve carried out with respect to a assistance. Maria yeah. Economic assistance to Central America. I think thats the wrong direction. I think what weve got to do is try to help them improve their economic condition. Maria thats what Lindsey Graham has been saying as well. He says hes poised to actually increase aid to Central America if we can do a deal in terms of limiting the apprehensions and flood of people. Right. Hes absolutely right. I endorse that totally. Maria whats your take on whats going on in hong kong, such hostility, showing no signs of stopping, banks condemning the violence, calling to restore order. Supporters of the protests include taiwans leader. Taiwans leader praised the cafe pacific ceo for not giving names of his Staff Members of who participated in the protests to chinese authorities. He only listed his own name because of course chinese authorities want to know who is protesting because there will be ramifications for them. Theyll be detained in china. Right. Well, so, this is a very difficult situation. Earlier in the program you mentioned the 50year i guess its 2047 when hong kong is slated to revert totally to beijings control in terms of its legal regime and so forth. I think the way you could summarize this is that the people of hong kong really want conditions to be as close to what they were in 1997 when the british relinquished sovereignty back to the chinese and i think the Chinese Government wants to move the schedule forward as quickly as possible and theyre sort of bringing pressure to bear to make 2047 come sooner, if you will. And i think therein lies the struggle and the hong kong people, they dont want to have the standard of living and so forth that people have on mainland china. They want to live the kind of life theyve been living for all these years. Theyve got a first world standard of living in that country. They have basic civic freedoms. And thats what theyd like to preserve. The elite in hong kong have multiple passports, british passports, chinese, whatever. But the rank and file in hong kong dont. And they have nowhere else to go and they want to have a good life for themselves there. Maria its an International Financial hub but knowing that it is all changing in 2047, knowing it will go back to chinese rule, why would you go there and open a business . Why would you go there and take your Company Public . Right . Well, thats getting more difficult to contemplate. Look, you i served in hong kong from 1961 to 1963 as a vice consul. We never thought 1997 was going to come. We thought the british were going to find some way to renew the lease. Maria right. With the chinese. But that didnt happen. So i think 2047 will happen also. Well, for those young enough to think about those things, you know, i think youre probably right, theyre starting to put it into their calculations. Maria right. Thats why theres so many young the Chinese Government is bringing pressures to bear, likely to accelerate that kind of thinking. Maria thats why so many young people are in the streets. Ambassador, thanks so much. Coming up, the economy is in focus, kansas city Federal Reserve president ester george weighs in on the central bank policy. Jay powell speaks tomorrow. Markets will watch that speech closely. Then this heartwarming speech. Elizabeth, new jersey is now known in the best of light because of this group. For the rest of my life, im proud you guys are going to call me coach. All right . Theres dad, and theres coach. I love you guys. Maria more from the Little League coach who has everybody in tears this morning, next. Stay with us. Something big i feel it happening. Out of my control. Pushing, pulling, its got this feeling in my bones. Dear tech, lets talk. We have a pretty good relationship. Youve done a lot of good for the world. But i feel like you have the potential to do so much more. Can we build ai without bias . How do we bake security into everything we do . We need tech that helps people understand each other. That understands my business. Weve got some work to do. And we need your help. We need your support. Lets expect more from technology. Lets put smart to work. 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. Maria welcome back. A hotel worker in california under arrest this morning, accused of threatening to kill customers and coworkers. Cheryl casone with the headlines now. Cheryl. Cheryl maria, police in long beach, california say they found an arsenal of weapons inside his home, including multiple guns and hundreds of rounds of amunition. The suspect had clear plans, intent and the means to carry out an act of violence that may have resulted in a mass casualty incident. Cheryl well, police were tipped off by his coworker saying he was upset about hr issues and wanted to shoot everybody he saw. He could be in court today. Well, turning to the budget. The deficit is expected to top 1 trillion in the next fiscal year, according to a report from the Congressional Budget Office p. The last time the budget deficit hit a trillion, back in 2012. And some heart warming stories for you now. A Little League world series coach sending a powerful message after a crushing loss. Watch. For the rest of my life, im proud that you guys are going to call me coach. All right . Theres dad, and theres coach. I love you guys. Bring it in, boys. Cheryl theres dad and theres coach. He thanked the group of 12yearolds for how they represented the community of elizabeth, new jersey. They were eliminated by a team out of louisiana, maria. But the state of new jersey i think its safe to say should be proud of those kids. They played really well. Its tough to get that far along. Maria love that speech too. Thank you so much, cheryl. Coming up, risky real estate, mortgages now bypassing usual requirements, what it mines for the Housing Market coming up. Taylor ready for a redo. The pop powerhouse hitting back, taking back her music. What shes doing, next. The one that lets you know for sure. Shes everything i want and more. Real desire. Hmm. Exactly. Liberty mutual customizes your car insurance, so you only pay for what you need. Nice. But, uh. Whats up with your. Partner . 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Plus 0 interest for 24 months and free home delivery. Ends saturday maria mortgages in focus, lending requirements put in place after the 2008 financial crisis are starting to soften according to the wall street journal. Potential home buyers finding it easier to get credit. You wonder if this is actually the beginning of an p opening for a real risky situation the way we saw in 2006. What do you think, nancy . I do, maria. One of the things thats been powerful is the consumers Balance Sheet has improved and savings have gone up and we have high student debt but not home equity debt like we did going into the great recession. This could be one of the things that tips us over, ultimately. Maria you never know what could tip us over, you know. This is a risk. It is a risk. I think to this point delinquencies are low. The borrower looks fairly healthy generally but i think some people look at this and say oh, good a lot of this lending is outside of these too big to fail banks that we stand behind. When you look deeper, a lot of the nonbank lenders get liquid at this, funding from the big banks. Its not clear where exactly the exposure ends up if we do hit some kind of crisis. The consumer Balance Sheet right now is up about 42, 40 trillion not trillion. Billions of dollars. Forget the numbers. T its incredibly improved from 2007. I did the numbers recently. Its a big hike. And the debt servicing on the part of consumers. I mean, consumers are acting rationally with Interest Rates this low, the rational thing to do is to take advantage of that. And they are. One of the things, if you want to be optimistic about the economy, which im resolutely so, is that the housing sector has not participated. Thats a big part of the economy that perhaps would lower with lt rates could in fact start to come on. Maria especially if Mortgage Rates get in line with other rates. The unknown is fin tech. These companies are lending money at a loss. I applied for a loan, you put your name, your Social Security number and your income and i was funded three days later at a below market rate. So i think people arent thinking about that. Theyre taking on a lot of the risk and then theyre repackaging loans and selling them to investors. Theres a little bit of day hav. Weve seen that story before. Maria it wasnt a good movie. Coming up, the economy, kansas city Federal Reserve president ester george will weigh in on central bank action. And then see who tops the list of the highest paid movie stars. Weve got the list. Back in a moment. Ill be here forever. Said ill always be your friend. Ill stick it out to the end. Now that its raining more than ever. Know that we still have each other. You can stand under my umbrella. E accounts. And zero minimums to open an account. At fidelity those zeros really add up. Maybe ill win saved by zero 2,000 fence posts. 900 acres. 48 bales. All before lunch, which we caught last saturday. We earn our scars. We wear our work ethic. We work until the works done. And when it is, a few hours of shuteye to rest up for tomorrow, the day well finally get something done. the day well finally get something done. Go to vettix. Org. Maria welcome back. Good thursday morning, everybody. Thanks so much for joining us. Im maria bartiromo. It is august 22nd. Thursday, your top stories right now, just before 7 30 a. M. A on the east coast. Were focused on the Federal Reserve this half hour. The fomc minutes yesterday were out revealing the july rate cut was just a midcycle adjustment, not the start of a series of deeper cuts. The news sparked another inversion of the yield curve. We will get reaction from Kansas City Fed president Esther George coming up. Markets this morning are flat, take a look. Dow futures are up 12 points, s p up three quarters of 1 point, nasdaq down 3 points. This is a big victory. The markets are reversing course from earlier weakness, after strong reports from retailers yesterday eased fears of a slowdown. Dow industrials were up 240 points, s p was up 23, nasdaq was up 71. We also have the 10 and two year bond yields invert briefly before the closing bell. In europe, markets look like this. As you will see, we are off of the lows. The fq100 is down 34, cac is down 33, the dax index is up 8. There was an unexpected rise in the eurozone purchasing Managers Index for august. Edward lawrence is in jackson hole with the Esther George comments, thats our top story right now. Over to you, edward. Reporter this is the challenges in Monetary Policy is the name of the symposium this year. Esther george says that shes not concerned actually about President Trumps comments. She says that the Federal Reserve enjoys a level of independence from the president. She says Congress Gives them a mandate and she focuses on that mandate which is stable prices and low inflation. I talked with her yesterday at length about a lot of topics and the embargo on that ends right now. Do those comments play into your Decision Making at all . They do not. They do not. So i think for myself, we keep in front of us the american public. We keep in front of us those mandates. And thats how we demonstrate our accountability to the public. The president s been very vocal. Do you think he maybe has gone too far in voicing his concern or so i deal with people every day that express concern. And again, you have to stay focused on what your job is and our job is to think about the real economy, the people in the economy, and to be completely accountable and as transparent as we can be and i think thats our focus. Lets talk about that economy. Are we slowing down . Is this a Strong Economy . Where are we in the Business Cycle . Its hard to know where you are in a Business Cycle but i can tell you for my own outlook and as i look at the outlook of private forecasters, i think the economy is poised to continue to expand. My own forecast is around 2 for this year and i think the consumer remains confident. The consumer is spending. And thats really the strongest part of our economy right now. We see other segments that are weaker. So where are the head winds for you then . I think when we look at Business Investment and we look at our exports, we see headwinds there. Business investment has flattened out. And there are a variety of reasons for that. I think a prominent one is the amount of uncertainty businesses may have about their products and where theyre going, manufacturing, a strong dollar. All of those i think are holding back that segment of the economy. So how do you get that Business Investment, how do you get them to start spending again . I think as ive talked to my own business contacts, the issue for them is uncertainty. And thats not something Monetary Policy and lower Interest Rates can really fall for. So i think what you try to do is to look at the broad aspect of the economy, understanding that our Monetary Policy tools really have to be aimed at that broad economy. You mentioned the rate cut. You were one of two who descented in the last july meeting for a rate cut. In the fed minutes it says that several members thought that the rate should stay where they were what are you seeing in the economy thats telling you we dont need to make accommodation . The way i was looking at it had to do with how are we doing relative to our mandates from congress around employment and price stability. We have a low Unemployment Rate. The job market looks healthy. The consumer seems to be healthy right now and inflation is low and stable. Its staying right around the feds target. So in light of that, while i see Downside Risk, i wasnt ready to act on that relative to the performance of the economy. So when you look at the stock market, these wild swings over the past couple weeks, that doesnt bother you or it does bother you . I think you observe them carefully but you have to remember, those moves happen in very short intervals. And for making Monetary Policy decisions, you really have a longer time horizon. So you certainly take in those shortterm movements. You understand a that volatility can affect confidence. It can have effects. But its not a very prominent day a at that point for me in the scheme of all the data to look at. Reporter and she seems to hold the view there may not be the need for another rate cut. She said she has an open mind and wants to see the next data coming in and the data is retail sales, gdp estimates, as well as the next job numbers report. Maria she was pretty positive on the consumer and twothirds of the economy. She says shes looking for 2 growth. Did she give you a sense of what drives that growth this year, ed . She says its purely the customer, the consumer buying. She sees that spending going on for the rest of the year. She said that Business Investment will likely be slow because of the uncertainty and she doesnt see that uncertainty going away. So she is looking for the consumer to continue to drive this economy which is why shes looking for retail Sales Numbers which she does expect to come out pretty strong in the next few weeks. Maria we will keep watching. Ed, thank you. Edward lawrence in jackson hole this morning. She pin pointed what you pinpointed earlier and that is cap ex. I want to point out that even though cap ex was down sixtenths of a percent in the last reading, it doesnt include a lot of investment in technology, software. And thats a huge spend for a company. So i dont know we dont know that theyve stopped spending on that. No. But you can see it in the Consumer Confidence or the ceo confidence numbers as well and those are pretty highly correlated with actual cap expending. So i think we will see a slowdown. The consumer is probably going to add twotenths to gdp growth in the quarter with the strong retail Sales Numbers. For a while they can shoulder the burden, i dont know about globally but certainly in the us. I think were still i decent shape. Maria reaction to Esther George . She made a good point about business spending. This is not a problem for Monetary Policy to solve, if businesses are concerned about trade negotiations, trade disputes, thats something that has to be resolved by the political authorities, not a central Bank Following its mandate which under the mandate theres no argument for cutting. Maria you want to see the end of tariffs on our friends, like canada, mexico, you want to see no more fighting with europe. Friends in asia, they want to trade with us, want to manufacture more stuff with us instead of china, obviously we would love to have peace with china too, we would love for them to start embracing reform, et cetera. Maria you put that in a separate category than our allies. The point i think is that if the president wants to continue to have this standoff with china, it would i think help Business Confidence to say im not fighting with the whole world, heres the progress elsewhere, you know, go ahead and make the investments and well have growth in lots of places while were trying to resolve the issue with china. Maria anything strike you from the Esther George interview. I would second everything thats just been said. For example, we could have from day one approached the china confrontation with all of our allies onboard because guess what, europe has finally come around also to doubting, challenging china, understanding that the wto isnt going to solve our problems. Maria not enough to unravel their huawei infrastructure. Thats true. I mean, look, theyre mercantileists like everybody else. They could have been more onboard. One thing that would be great to hear, not from Esther George and the fed, but from treasury, is how we can take advantage of the super low rates by extending the average maturities of government borrowings in the u. S. One of the great uncertainties going back to that is the fact that Interest Payments by the government over time are going to be ballooning and are going to be overwhelming Everything Else, including the military budget and medicare. So how about issuing some 50year bonds at very low rates and beginning to move that average maturity out. Obama was criticized for not doing that and rightly so. I think its time we did it now. I think you raise a good point. I think thats one of the things behind President Trumps sort of hounding the fed. A 1 rise in the Interest Rate would cost about 200 billion in debt servicing cost. That would in fact do exactly what you said, liz and i think its an important point that we have to pay attention. Maria dont for get the all assets come to the u. S. , boosting the dollar. What is the dollar going to do for earnings later this year and how does that fit into the mix. Those companies have the multinationals have paid for it in Earnings Growth and Price Performance this year. Its been domestically focused companies that have done better. I think from where we were last year, maybe the net change is not super material, but it is something to watch and i think the companies are well aware of that. It has a very Positive Side too. I sometimes wonder why the president doesnt say king dollar, look at how strong our currency is. Its great for consumers and even for companies. It means they can buy components from overseas and get a lot for their money. Maria hasnt he made it clear, he doesnt like a strong dollar. I know. He ought to be bragging when hes got the most beloved currency in the world. Maria i agree with you. Im struck by the Second Quarter reports, how few Companies Really said man, were being killed by the tariffs. Top line growth was outstanding. Top line was very good. Home depot said 1 change, maybe Something Like that one of the democrats running for president , i cant keep them all straight, said recently the consumer is being killed by the trade war with china. In what way . I cant find it. Maria its the uncertainty of it. Theyre looking at well, some point tariffs will have an impact. They havent had an impact yet. It hasnt been care reads over o the consumer. Companies have been absorbing it. Chinese companies have been absorbing it. To this point theyve largely absorbed it. We havent. But we will. Maria the consumer Balance Sheet right now up 24 trillion, thank you, maria. I get to go back and get that on record. Its 24 trillion since the end of 2008. That is the net worth of consumers compared to then. Thats a huge increase. Maria enormous number. When we come back, taylor swift takes control, the pop star wants to rerecord her oldest songs. Why she could be headed back into the studio, coming up. And disconnecting your device, having fun without plugging in. The owner of a unique cafe explains his Business Strategy of board games. Back in a minute. Dont leave me high. Dont leave me dry. Dont leave me high. A children yeah announcer ride the totally realistic traffic jam. Beep, beep, beep, beep children traffic jam announcer and the worlds first never bump bumper cars. Children never bump announcer its a real savings hootenanny with options that fit your budget. Thats fun for the whole family. Announcer only at progressive par. Maybe an insurance park was a bad idea. Yeah. Yep. That a handle is just a handle. Chair is just a chair. Or. That you cant be both inside and outside. Most people havent driven a lincoln. Its the final days of the lincoln summer invitation event. Right now get 0 apr on all lincoln vehicles plus no payments for up to 90 days. Only at your lincoln dealer. Maria dix Sporting Goods better than expected earnings. Stock up 13 right now. Theyre raising full year guidance, saw a 3. 2 increase in same store sales at dicks supportinSporting Goods. President trump is cancelling Student Loan Debt for disabled veterans. Cheryl on headline. Cheryl President Trump signed the executive order after speaking at the American Veterans National Convention in kentucky yesterday. The president said the move would save 25,000 disabled veterans an average of 30,000. The executive order exempting eligible vets from having to pay federal income tax on their loans. Taylor swift is planning to rerecord some old songs. Our song is slamming screen doors. Sneaking out late, tapping on your window. When youre on the phone and you talk real slow. Cheryl the singer told cbs news she wants to retrack because the manager, scooter braun, bought the masters without telling her. Swift accused him of manipulative bullying. She also said she plans to rerecord music from her first six albums. She would then own the rights to these new versions. Pretty smart little girl there. And finally, rock solid paycheck, the highest paid actor of 2019 is dwayne johnson. Also known as the rock. A according to the forbes list of top paid actors, he took in 89. 4 million between june 2018 and two months ago. Chris hemsworth came in second, followed by robert downy junior, acshay kumar and jackie chan. Maria. Maria i never watch any of those. Doesnt that say something. Maria its me. Im sorry. Jackie chan. I mean im sorry, what was he in i . I dont even know. I dont know. Maria i want to point out, the markets have completely reversed and are showing a pretty good gain. Weve got european indices also up as well as u. S. Indices, now at the highs of the morning, we started the day off negative and now were looking at dow futures up 40 points, s p up 4, nasdaq up 7. Fq100 is picking up speed, the ecb minutes are out today. We will check on what it is thats fueling the markets. Fq is down 30 points. Here too we are looking at some of these markets off of the lows, perhaps its the better than expected retail numbers. Dicks Sporting Goods reported well. Maybe its Esther George. Maria maybe its the interview with Esther George. When we come back, put down the screen and pick up the dice, mixing in modern technology with board games. Well tell you all about it when we come back. The games people play now. Every night and every day now. Never meaning what they say now. Never saying what they mean. From the 5am wakers, to the 6am sleepers. Everyone uses their phone differently and in different places. Thats why Xfinity Mobile created a Wireless Network that auto connects you to millions of secure wifi hot spots. And the best lte everywhere else. Xfinity mobile is a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you buy an eligible phone. Click, call or visit a store today. Maria welcome back. What is old is new again. Retro board games experiencing a bit of a renaissance. The growth is undeniable. The global board game market expected to top 12 billion by the year 2023. That is up 9 . But alexa wont be ignored. The amazon mouth piece now a popular player in the classic game of clue. Joining us is the owner of main street board game cafe, neil goldberg. Its great to have you this morning. Thank you. Maria u you how refreshing to see the board games on the set. You say this is the strongest growth story within the toy industry . Within the toy industry right now, board games are the biggest growth sector. Maria wow. Of it. More and more board games are coming out, board games are experiencing a huge renaissance, a huge boom. Board game cafes like the one i opened four months ago in huntington are popping up all over the country. I think people are looking for a way to unplug themselves, their kids, their families, our motto is unplug your game. And are looking for some way to entertain themselves but yet put their phone down, put their screen down and play in real life with your friends, your family, your community. How old are the people coming to your cafe. We have all over the place, we have kids with their parents, kids with their grandparents and people dates, families, husbands and wives. Our whole cafe, the whole audience change as the day goes by. When you open a a business youre there every minute of every day, seven days a week, its like having a kid you dont want to leave it with anybody else and when the day opens, especially during the summer, its kids and families. As the night goes, the crowd changes. At night it becomes a great date night spot and for groups of friends to come out together. My recollection of dating, this would be good, it would be an activity so you didnt have to talk the whole time. [ laughter ] what admission. You run into a problem, do you have to stay to the end of monopoly, for example . Monopoly is a classic game thats been around almost 100 years now but monopoly can go on for a little while. These three games here, you will finish in an hour. Or less. Maria you brought these traditional these games here on set. What traditional board games are the favorites right now . I am definitely playing monopoly on my vacation. Im so excited to play monopoly. Off the top of my head, the three biggest selling games in the country right now, these have been the biggest sellers, two of them for the last decade, katan, ticket to ride which a lot of people have played and a game called zeul is one of the top selling games in the country. We talk about the community experience. A game like burgle brothers is called a cooperative game. Everybody works together to beat the game. Either the game wins or Everybody Wins. Its an office heist. It promotes the idea of community and concentrating. Im here and i have these cards so you need to do this so youll have the chance to do this and nobodys loo looking at their p, everybody is working together and when you win, we all play a game, okay, one of you wins, when Everybody Wins together, its a wonderful experience. Whats the Business Model . How does this work . The Business Model is were a cafe. We sell games. We have many of these games for sale. We have a library of 300 board games in the back. Theres a small sitting fee, 5 during the day, 10 at night to play for up to four hours. And we have a cafe, coffee, deserts, snacks, beer and wine, while youre playing. I call it like half a starbucks. Maria thats great. They can have food while theyre playing. Maria have you integrated some digital things within some of the games. Some games have apps theress a game called chronicles of crime. You use the phone to look at a crime scene. You scan qr codes to talk to witnesses. I think a little bit of technology in the games is great as long as its supporting the game and isnt the prime thing of what youre doing. Okay, we saw this on the phone, now lets talk, what do we do. You dont have to check your phone at the door. No, look, i trash around on my phone as much as anybody. Im not here to say throw your phone away. Im saying its important to learn how to help yourself and your family unplug. Well be starting an after School Program as well to drop kids you can drop kids off. Well have a board game curriculum this fall. Maria do you have bac back gammon too. We have all of the popular favorites. The teamwork thing is exciting. A lot of family game nights can ive been told they can be destroyed when someone realizes theyre going to get crushed. With risk or monopoly, it can take forever. Like all things, its got to have a beginning, middle and end. You have to feel where you are in it, if youre like this is never going to end maria we love it, neil. Thank you so much for joining us, neil goldberg. Well be right back. Ght. 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 your business is up and running, but is it going beyond fast . Comcast business gives you high speed internet. 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Donald trump shifting his stance on tax cuts, he now says the economy does not need all that stimulus from tax cuts, futures have reversed course and i have, their futures that 31 points, s p up 31 4, in effect futures of 7 a quarter, after that kansas city Federal Reserve president , storm reports retailers ease fears about a slowdown, house pushed markets higher, down the street in triple digits at the close, 240 points high, the s p up 23 and the nasdaq of 71, yesterday at the close. European indices are mixed, we off of the lows as european indices follow the uss lead but negative on the s p down 24, toronto and paris down tenanted action next higher by 19, we got the person thing man it is index this morning, the minutes from the European Central banks july meeting have been released showing members discussed combining rate cuts and bond purchases at the ecb. The democratic field thins out, j inslee dropping out of the race in a giant sand castle for rent. How you can spend the night on a new york city beach in this unique structure. We will tell you about it. Joining me to break it down, columnist for the whole is peak is here, assistant Editorial Page Editor the wall street journal James Freeman and chief instant been Investment Strategy list nancy spengler. Lets talk Capital Gains and the ideas of indexing. I wish the president would reconsider. There is no reason a gain based on inflation should be taxed is when you cut taxes on investment you help all the people who own stocks. Even those tax preferred vehicles when you make the aftertax return on investment better it raises the value of stocks. For everybody. Liberals said his corporate rate income tax cut would only be for rich people, it wasnt. Weve seen a result, more jobs, higher wages, more investment is good for everybody and hope you will reconsider this, an excellent idea he can do it ministry to. Maria 401 k s are not access Capital Gains, the distribution are taxed as ordinary income rather than Capital Gains but if you have a taxcut it lifts valuations across the board. If i could jump in, dan clifton has done great work, his calculations are it would free up 1 trillion in pentup gains but Going Forward not as powerful but going backward and looking at gains that have been accumulated it would increase liquidity dramatically and benefit all investment. The opposite of elizabeth warrens wealth task. If you tax investment and wealth you will have less of it and this is the opposite of that. Maria why is the president reversing course . The market expressed talking about tax cuts was evidence the white house was worried about a recession, Something White house aides have been eager to dispel in terms of that notion which i think he backtracked because it was sending the wrong signal. Democrats want to make it look like he is panicking. There is never a bad time to enact good policy, grow faster. He needs authorization from the attorney general and the Justice Department and that is something he doesnt have the appetite for that kind of fight right now. Maria a lot to talk about on that front. Former connecticut senator Jill Lieberman is your, chief economist at the Milliken Institute william lee is here with herman Capital Management founder and cio kyle bass plus the host of varney and company Stuart Varney weighing in. A big hour coming up and we kick it off with this, donald trump reversing his statements about tax cuts and not backing down on china trade. Blake berman has more. Good morning. Reporter reversal from earlier this week in which the president was talking up potential tax cuts but the president said yesterday as relates to a payroll tax cut we dont necessarily need it at this moment in time and you were talking about indexing Capital Gains which the president endorsed that possibility earlier this week but when he talked about it yesterday he said now he doesnt think it is necessarily needed or something he can go forward with because it might target a group of people who might not necessarily need the tax cut the most. Not looking at a taxcut. We have a Strong Economy. Certainly a payroll tax cut. President obama did that to artificially jacket the economy. Im not looking to do indexes. I have studied indexing for a long time. I think it will be perceived as elitist. I dont want to do that. Think it would be perceived as somewhat elitist. The idea of china and the us striking a trade deal doesnt appear to be a nearterm event either. The president continued to insist yesterday he has to be tough on china and he turned some heads when he turned his to the skies and said the following. Somebody had to do it. I am of the chosen one. Somebody had to do it so i am taking on china. Meantime this morning china is threatening retaliation if the next batch of tariffs go forward in a weeks time. A spokesperson for Chinas Commerce Ministry saying the following at one point earlier today, quote, i want to emphasize again that for the trade war china does not want to fight but is not afraid to fight and will fight if necessary if the us implements new tariffs they go on to say china will resolutely adopt corresponding countermeasures to defend the interests of the country and the people. That coming out of china this morning. Maria thank you so much, blake berman with the latest, the 2020 field is thinning out, washington governor j inslee dropping out of the race for the democratic nomination as father colorado governor John Hickenloop he will join the race for senate after he bowed out of his White House Run last week. Democrats with far left policies are facing increased criticism is that we most recently from Senate Majority leader harry reid who called proposals like medicare for all and open borders and realistic. Joining me is united against nuclear iran chairman former Vice President ial nominee to, senior counsel joe lieberman. Always a pleasure. Thanks for joining us. Interesting to hear harry reid talk about the progressive this. It is something we talked about before. Theyve gone all the way to the left, your reaction . Im grateful for what harry reid said and i agree with him. He has an unusual position in the party. He is very loyal to the Democratic Party but i dont think every stereotype he has left center or right are credible to all of those and i think hes just about succeeding, winning in the election next year but i couldnt agree with a more. Medicare for all sounds good as a slogan. It will cost an enormous amount of money. Bernie sanders said everybodys taxes including the middle class will go up. A big reform was adopted, the first in decades, Affordable Care act, obamacare. Most people are happy with it, more people are covered, Insurance Companies are better regulated. If people want to improve the system, they should tinker with you for the care act, dont do something so big it will turn against maria they are all endorsing medicare for all. What is going on here . People like the squad, aoc, very progressive. Is that wing of the party the face of the party . There is a danger to that. Candidates for president tend to go to the right, the republican party, then come back to the center in november but this year ive the Democratic Party is more acute a problem then normally and part of it is because of all the emotion against donald trump and the socalled resistance. You dont win an election nationally for president in america being part of a revolution that wants to turn most of our society over to the government so i hope democratic voters in the primaries will be more cautious about that or else their most fervent desire which is to have a new president will not be realized. Maria speaking of resist i want your reactions what took place around israel. Rashida tlaib and omar calling out Benjamin Netanyahu for barring them, banning them even though they voted for this resolution to boycott israel, the president is doubling down on his comments on democrats and israel. Heres what the president said, watch this. In my opinion the democrats have gone very far away from israel. I cannot understand how they can do that. They dont want to fund israel, they want to take away foreign aid to israel, they want to do a lot of bad things israel. In my opinion you vote for a democrat you are bearing very disloyal to jewish people and being very disloyal to israel. Maria this coming after Rashida Tlaib and ilhan omar held a News Conference about being banned from israel and visiting israel this week. Your reaction . I agree with Donald Trumps criticism of these two congresswomen. I dont agree with the israeli governments decision to keep them out because israel is a great democracy. This very spirited debate in israel, out of 120 members of the Israeli Parliament are arabs duly elected, citizens there, why should our approval because you disagree. And dont come. It was a mistake diplomatically politically because it didnt look like the action of a strong country to keep just two members of congress out. The idea of a boycott of israel is wrong and 93 of democrats and congress, voided just a week or 2 ago against the boycott of israel. And what is the president saying about democrats being disloyal, about democrats not supporting israel the way he would expect . Let me say first of all donald trump has been enormously supportive of the state of israel in a 21 2 years he has been president but in these comments he has made in the last couple of weeks including the last couple of days i think he has not been helpful to israel, and in the relationship between the us and israel is it has been bipartisan. It is based on values that go back to the bible. And we have common interests. And because we have common enemies. And congresswomen omar and tlaib do not represent the face of the Democratic Party. The overwhelming majority of democrats in congress are still strongly supportive of israel. And and, terrorism and extremism. They are National Security concerns we talked about as it relates to huawei, disclose last year, and next the nation that is not going to be too clear which is i am not lobbying for cte but i had to register under the law because im talking about some members of congress, what they ask me to do. And what is your view of cte, what do you want to do to gain your confidence to continue to do business here. Im still working on that. Any thoughts on the assessment so far . Theyve got to do some things to overcome the factbased distrust of chinese companies, theft of intellectual property, forced sharing of technology and fears about the coming of 5g which is the next step. Maria is their backdoor metadata goes back to beijing . Not as far as i know and something that is encouraging so far. I havent found a specific case where is cte smart phone or tower has been compromised to threaten american security. Maria thank you, we will be right back. Only pay for what y. Liberty. Liberty. Liberty. Liberty. That a handle is just a handle. Chair is just a chair. Or. That you cant be both inside and outside. Most people havent driven a lincoln. Its the final days of the lincoln summer invitation event. Right now get 0 apr on all lincoln vehicles plus no payments for up to 90 days. Only at your lincoln dealer. I had a few good tricks to help hide my bladder leak pad. Like the old tunic tug. But always discreet is less bulky. And it really protects. cause it turns liquid to gel. So i have nothing to hide. Always discreet. Maria two retailers have betterthanexpected earnings, Cheryl Casone he with the details. Great week for retailers, shares of dicks sportinggoods in the premarket up 11 , the latest earnings better than expected raising for your guidance. Investors nabbing up shares of tulsa, a just earningspershare beating the streets forecast, the stock is up 8 . 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Maria centralbank warning uncertainty around the administrations trade policy is creating turmoil for the economy and the protest in hong kong showing no signs of stopping, big banks are responding as the nation braces for the 12th week of demonstrations, back in a moment. Managingaudreys on it. S . Eating right and staying active . On it audrey thinks shes doing all she can to manage her type 2 diabetes and Heart Disease, but is her treatment doing enough to lower her heart risk . Maybe not. Jardiance can reduce the risk of cardiovascular death for adults who also have known Heart Disease. So it could help save your life from a heart attack or stroke. And it lowers a1c. 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. 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Its a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you preorder a new samsung note. Click, call or visit a store today. The way i was looking at it had to do with how are we doing relative to our mandate from congress about employment and price stability and in my view we have a very low Unemployment Rate right now, job market looks healthy. The consumer seems to be healthy right now and inflation is low and stable, stay around the feds target. When i see Downside Risk i wasnt ready to act on that relative to the performance of the economy. Maria Esther George explaining her dissenting vote on the rate cut, the fomc minutes reveal the centralbank thought of it as a recalibration of policy and noted how Global Economic growth remains at risk. Joining us is the Milliken Institute chief economist william lee. Great to have you this morning, thanks for being here. We got another centralbank cut overnight that was indonesia, the indonesian centralbank lowering Interest Rates, this was a surprise cut. We have more than 30 Central Banks across the world stimulating and lowering Interest Rates. What is your assessment of the us economy and go global for us . The economy, we are doing quite well because the Service Sector is doing well but one of the things we all know is we have to look forward and the lack of investments, scariest thing about the us economy, lack of investment means Going Forward there could be slow wage growth must lower proximity growth and if businesses are really uncertain they could start laying off people and cutting back on hours, that will hurt consumers. That is where the risks are that the fed has to contend with. Maria have you seen that impact yet . Have the two year and 10 year, germany selling the 30 year debt at a negative yield for the first time. Interest rates are telling one story but what you just said is we havent seen the impact yet but that is the worry. Relative to the rest of the world the us is doing fantastic and that is why so much money is coming into the us because around the world negative rates mean capital cannot be useful for investors so investors cannot put used capital anywhere in japan and europe but it is very productive here so a lot of people are coming here and buying us assets so that is the source of this bullish inversion. It has nothing to do with any recession signal. Dont you find when you look back historically the long end has to decline for it to be a real recession indicator . The long end declining right now is a signal that there are a lot of people buying longterm assets but the productivity is capital is showing up in our stock market prices, productivity capital is useful in the United States and put to use because of deregulation and tax incentives donald trump has put in place but Going Forward will businesses continue with the investment boom we had . We see the gdp level that investment is starting to flatline because of the uncertainty. Maria we talked about advisability of the government lengthening average maturities on its holdings, on its borrowings. Is that a reasonable idea that might ameliorate the increase in federal debt and the outlook forever rising Interest Payments down the road . Very few people mention this but im surprised because this means by lowering interest on debt and lengthening the maturity it gives us space to fiscal policy and gives us another toolkit to use in case the fed doesnt cooperate and the economy does go down and that space for fiscal policy is something we should keep in reserve. Germany is not willing to use it. We should come out and say if something happens we are willing to make whatever it takes to whatever policy is needed to keep growth up. Maria great to have you this morning, thanks so much. Please come back soon. William lee from the Milliken Institute was hong kong protests showing no sign of slowing. Big banks speaking out as a nation braces for a fourth week of demonstrations. We will talk to carl bass who is investing in the face of all of this and apple hits the reset button, details on the upcoming revamp coming up, stay with us. 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Look at european indices, we have the minutes from European Central banks july meeting, rate cuts combined with bond purchases. The s p down 20, current downturn, the dax index up 21. In asian markets were mixed, hong kong was down is the protests continued on the streets of hong kong. Top story markets and investing, take a look at futures where we expect a big rally to extend this morning, yesterdays broad rally boosted by positive earnings and Retail Companies like target and lowes. Increase tariffs could escalate tensions urging the United States to meet beijing, donald trump spoke about the trade war. We are winning against china, they lost 2 million jobs in a short time. They want to make a deal, it has got to be a deal that is good for the United States. This isnt my trade war. This is a trade war that should have taken place a long time ago by a lot of other president s, somebody had to do it. I am the chosen one. Somebody had to do it so i am taking on china. Maria joining me is kyle bass, great to see you, thanks for being here. A lot of people are saying if we were to get a deal with china it could be a big deal for the markets. Art laughter said it would mean doubt 30,000. What is your take in terms of where we are in the big issues, what do you think, the sustaining in the way of further investment . In the daytoday news flow, if we get a deal, will stock market go up, that is a given. As we spoke a couple days ago, theres a big difference between what is in the longterm best interests of the country and what is in the short term best interests of people who want to see the stock market go up including the president. The difference between those is National Security of the United States and if we given to any of chinas demands how do you meet china halfway . Do they only steal half of the intellectual properties, half of the few million go from concentration camps, only build half of the military bases in the south china sea. I dont understand how we meet them halfway anywhere. These are bigticket items the president has changed the conversation on. The hong kong situation, banks, violating for page newspaper ads to restore order. Supporters including taiwans leader praising the ceo of Cathay Pacific because he did not give the names of his Staff Members, they participated in the protest chinese authorities and only left his own names. And how will they keep promises to the United States . They signed the ascension protocol in 2001, havent listed one thing they said they were going to do in 18 years, signed in 1984 british joint declaration, leaving hong kong alone and that is a historical documented that served its purpose. In the past tense. Chinese dont believe agreements are agreement, they walk away from everything they sign and donald trump and Steve Mnuchin and the crew are trying to hold their feet to the fire and say we will only sign an agreement that is measurable and enforceable. And i dont see how they overcome that unless either side decides to walk away from their own core ideologies. When activists join me last week, this is a fight over values. Hong kong has the values of the west, are you going to go to hong kong and started business, take a Public Public in hong kong going very these broken promises and theres an expiration to this socalled autonomy. Hong kong goes back to china. You are right. They were supposed to let it go until 2047. Another 27 years they were supposed to leave it alone, leave it autonomous and judiciary and economy and legislature and it is clear already if you need that it is clear hong kong is not autonomous. If you look at what carrie lamb has done she abandoned her own people for favor of what beijing was putting down their throat and the entire complication has lost faith in its leadership and in its police. How can that move forward . How can that have an offramp or settle itself . I dont think it can. Carrie lamb has got to resign at of china wants to let hong kong be the beacon of freedom and liberty in Southeast Asia they have to let them have a real election instead of china appointing the ceo of hong kong. Let me take you home looking at Interest Rates. We had another global bank cut rates, it was indonesia, germany is telling year earlier bonds with negative deals for the first time ever. What is your take on the 35 Central Banks across the world that are cutting rates, the ideas that the Federal Reserve yesterday said it was an adjustment, not necessarily the opening to a series of rate cuts . There is a lot of politicking going on and you have the bank of japan, their national pastime. You have the bank of china that prints more money than anyone else to mystically, the ecb is now considering buying stocks and here you have our said. I heard your prior guest, the majority of the worlds capital will end up here in the next few years and that is an issue because a much stronger dollar is a larger problem for these emerging markets. It is looking like 9798, asian ems borrowing a lot of dollars. The multinationals, we are expecting earnings to pick up speed pretty well in 2020. What is your expectation of the backdrop and how do you allocate capital, you have 5 billion, youve got to put money to work, what are you doing in the face of this talk of recession and slowdown . The us is the single best place to invest from. Europe is having problems with italy, too be to save and too big to fail. I dont know what europe does with italy and are you going to invest in china where there is no rule of law and a crazy man running the place or invest in europe where look at the european banks . They are plunging back to crisis lows and you have the us where we have the best growth around the world, positive rates and our companies are the most Innovative Companies in the world and Multinational Companies so people will buy our companies that have great dividend yields, they are still above water. I think when you think about allocating capital you have to look to the us because the rest of the world is a basket case. Maria are there areas that will do better than others in terms of Growth Potential . There are two ways to answer the question. Are we looking at things that are growing very quickly or the secondary question which is more important to retirees, where can you best return your retirement dollars and actually say stay safe . When you look to us utilities, us energy toll roads, infrastructure and all these things people use to talk about and those have decent high single digit yields in a world where Central Banks are taking rates 20, those are things to have your money invested in. Maria in terms of this hysteria over a slowdown are you seeing it . Talking about indexing Capital Gains . The president said indexing would be easy but now he doesnt want to do it. Do you think we should see lower taxes, indexing of Capital Gains or a payroll tax cut even in the face of what seems like a strong situation, retailers coming out saying the consumer was strong. When you look at the tax argument, the way we look at it you are talking the fiscal balance of the government, the interesting thing they taught the World Leaders is deficit spending doesnt matter. You dont have to have fiscal rectitude as a leader because central bank has your back. The first into recession the central bank will print money so your fiscal deficit can be what you wanted to be. You can spend more than you make. Do we need a tax cut . I think our Current Society is taxed a lot already. And i think the real problem, asset values going up too quickly without incomes following. You will see the bigger problem is the exacerbation of that wealth divide in the coming years. As far as tax cuts are concerned, i dont advocate tax cuts at this moment. Maria you are going to be my guest on wall street. Thanks for being here this morning. Kyle bass will join me on friday. The trump economy, the best way to spark Economic Growth is by locking down a deal with china. He weighs in next and apple hits the reset button. What can we expect as the Technology Giant readys for a revamp. Back in a minute. vo the hamsters, run hopelessly in their cage. Content on their endless quest, to nowhere. 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. Donald from floating the idea of tax cuts but the best stimulus could be a trade deal. Stuart varney is here. Stuart things are slowing down in america and worldwide. What is the best way to tackle that . How do we speed things up . What is the best stimulus . Tax cuts would be great but you wont get them in the near term, certainly not through the house of representatives, they never met a tax they didnt like. You could lower Interest Rates dramatically. That might help and that is what we will probably do. It will not help that much. All we are doing is catching up with europeans and the japanese. My opinion is the best way of stimulating the economy is a modest, not comprehensive but modest trade deal with china. A deal in which tariffs were removed or certainly mitigated to some degree through increased trade and the chinese purpose a lot of Farm Products as well. If you get that shortterm minorleague deal that will be stimulus and that the only thing on the horizon in any way, shape or form. Donald trump does not want to do this deal, and xi jinping as opposed to it but if you are looking for the best way of stimulating i say it is a shortterm deal with china. It would move markets and then you have that wealth effect that would help economic effect. But back to the National Security issues. I cant get over that. The theft of intellectual property and forced transfer of technology and manipulation of currency are real issues and the chinese have to address it and we know what happened the last time they tried to put it in law, the chinese reneged. If they cant say we are not going to steal your stuff anymore and keep breaking their promises on Everything Else how do you trust them in a trade deal . You are absolutely right but what you say is we will deal with intellectual property theft deal and forced transfer of technology later. That the longterm prospect. Maria beijing wins. Stuart you could say that. Markets go up and the us gets out of it as well. Stuart my premise is what is the best way of stimulus . What the best way to get the economy going and going up a bit more . There is a shortterm trade deal. Maria theres a lot of investors who would agree. Art laugher says it is down 30,000. I know you will have more in ten minutes. Varney and Company Begins after mornings with maria but apple is hitting the reset button, the details on apples upcoming revamp and touchdown, how you can score a paycheck for being your football teams biggest fan. Back in a minute. Youre not even enrolled in this class. I know. Im supposed to be in ceramics. Do you know room 303. Oh. Thank you. Yeah. Good luck, everybody. Oh. Thank you. Yeah. 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. 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And we need your help. We need your support. Lets expect more from technology. Lets put smart to work. Maria President Trump just tweeted this. Germanys 30 year bonds offering negative yields. Germany competes with the usa. Our Federal Reserve does not allow us to do what we must do. They put us at a disadvantage against our competition. Strong dollar, no inflation, they move like quicksand. Fight or go home, the president writes. This is something you brought up earlier in terms of germany selling, actually, liz, you brought it up as well. Your thoughts . Final thoughts, guys. I think the 16 trillion in negative debt is a real problem for europe and the rest of the world. I think we have to be very careful that we dont let our yields slip into negative on an after inflation basis. I dont think we are at risk of going to zero no matter what greenspan said. My final thought. Thats not a win for german savers and investors. We win in the United States by getting a return. No need to cut rates. Also, friend of mine has had pretty good luck, you buy the home gear but bet the road. Maria i like that. Look, i think a big story we are going to be talking about increasingly is whats going on in hong kong, because i think the demonstrations there show no sign of slowing down. I think thats going to mean a profound change in the amount of money, 58 of money going out of china into investment goes through hong kong. Probably ditto in terms of money coming in. Whats going to happen, what does that mean for Chinese Investment . It could be significant. Maria could be significant, especially since theyre not giving up. They want china to make sure they promised that autonomy stays. Well see. Great show. Great to have you. Thanks so much. Have a great day. Varney Company Begins right now. Stu, take it away. Stuart good morning, maria. Good morning, everyone. Consumers to the rescue. Full employment, rising wages, yes, we have money to spend and we are spending it. You are a real source of strength. The immediate beneficiaries are the big name retailers. Even supposedly out of favor Department Stores like nordstrom are reporting much better results. Look at dicks Sporting Goods, still racking up sales gains even though they no longer sell some types of gun. Look at the stock go up. The strength of Consumer Spending has been clearly demonstrated this month. Home depot, lowes, walmart, target, big names, all, all doing well and all suggesting