Transcripts For FBC Cavuto Coast To Coast 20240714

Point gain in the dow jones industrials, which puts that not too far away from record territory. We can do that like this in this kind of market. Blake burman at the white house to sort out rumors, everything here. Bottom line, markets propelled own the belief, were closer to something, setting a framework for something. I give it to you. Reporter neil, this is one of those days where you have to separate, put in one bin, what weigh know. You have to separate, put in the other bin, what is out there being reported in the trade spaces, maybe potentially a possibility. Lets start with what we know, which is the act of goodwill, as it has been seen by china and what the u. S. Is describing it as, delaying tariffs increase from october 1st, to october 15th and apparently an ag buy from china, will come with it as well. This is what a spokesperson for the Commerce Ministry said today. Quote we welcome the goodwill by the u. S. So far as i know Chinese Companies have begun to make inquiries about purchasing u. S. Ag products. That is good, forwardmoving sign. The president recognized it on twitter, saying it is expected that china will be buying large amounts of our agricultural products. The reason i highlight expected. It was expected china would do it before but necessarily didnt go down the road. What the president and Chinese Government are openly talking about. Lets separate some stories out there that also caught the attention of the market. First the one with the wall street journal which said, citing chinese officials or chinese sources, that china kind of wants to separate the trade deal between trade and National Security and move down the trade track, so things can be propelled forward on that end. That would make huawei an outstanding issue. As you know the u. S. Team has talked about that as a National Security issue. So when we got treasury secretary Steve Mnuchin on the north lawn earlier today, i asked him if the u. S. Views huawei in the National Security lane or trade lane or both . This was his response. Watch. I think as weve talked about huawei again there are National Security issues associated with huawei and those are not things that that we are discussing. Department of commerce looking for waivers for certain issues that are not National Security. Huwai, there are two sides to that. Reporter a statement from the Commerce Ministry of china seemed to push back on that. Quote, were not aware of a separate track. We repeatedly laid out chinas position on huawei. It is hoped the u. S. Will remove restrictions and sanctions on huawei, for continuro relations. That is one story. Neil, as i know, the bloomberg story which said the Trump Administration, advisors are considering an interim trade deal, that would be sort of a watered down trade deal. Here is what ill tell you on that you dont really see anyone right now from the white house or dont see anyone from the Treasury Department rushing to the cameras saying indeed that is the case. In fact when we spoke with Steve Mnuchin out here, when he was out here doing interviews today he noted how the president can indeed raise tariffs if he wants down the line. Neil . Neil just to understand the president is for delaying raised tariffs until at the 1st of october . Reporter right. Neil that is the 70th anniversary of the communist state of china. That is something he is definitely doing, right . That he put out there on twitter saying a delay from the 1st of october to the 15th, raising 250 billiondollar batch up from 5 to 30 that is the goodwill theyre talking about. One thing to note about that, the expected talks between mnuchin and liu he vice premier was supposed to be in early october. Moving that from october 1st, to the 15th, to see how the talks go in washington, maybe see how they raise them or keep them at 25 for now. Neil grade job, buddy sorting that out. If we have anymore details well to back to blake at the white house. Sorting this out there are more buyers than sellers. That is quick way to interpret this. I stress we have four hours of trading to go. Wall street journals greg ip. Where are we on this . If you look at all the velopments we fairly characterize these as ceasefire in the trade war. This is notes much armistice as peace. Were knot talking about stolen territory. Youre talking about the president delaying steps he was going to take. Talking about the chinese making some small goodwill gestures but i dont see here yet like material withdrawal sort of steps taken at each other. At this point things have stopped getting worse. Too soon to say things are getting better. Neil i like that, things have stopped getting worse. I will steal that line, greg. The European Central bank doing everything that President Trump wants, our central bank, Federal Reserve to do, not only cut rates but add their own asset buying program here to prime the pump. What do you think of the reactions that the market seemed to have interpreted that, to telegraph that certainly the Federal Reserve will do the same, be forced to do the same, what do you think . Keep in mind the reason the European Central bank isnt doing things the fed is doing, in europe the growth picture much weaker and inflation much lower. If i had to choose between our Interest Rates and our economy and their Interest Rates and our economy i would choose ours. That is the first thing. The second thing, even though the fed believes the Economic Situation here is better than europes it cannot make policy in a vacuum and when the ecb moves the way it has that puts pressure on the dollar. That makes it harder for the inflation objectives. That is why the fed will go ahead give us another quarter point next week. Unless you see a really dramatic deterioration in the growth, im not expecting i dont think most people are expecting i dont see the case for the fed to go as far as as the ecb has. Neil i dont even see the case for cutting rates at all. Im an odd duck. Neil, can i neil go ahead. We had inflation number today, core number excludes food and energy, up. 03 two month in a row. Were looking 2. 4 core inflation, highest over a year. Idea we had three or four years ago sliding back to zero inflation or deflation, i think that is sort of off the table. If im the fed looking at data im feeling pretty good. Im feeling like that the strategy they pursued this year was to stop tightening, make some tactical adjustments in recognitions of risk to the economy that is looking so far like a pretty good strategy. Neil yeah. I think were trying to hard to follow people we shouldnt be following. Were using those countries, economies as the role model, right now were the role model. Things are twisted. But what do i know . Im with you. Neil thank you very much greg. We have moodys managing director, what she makes of this. The president made it very clear in tweets, quite a few aimed at the Federal Reserve, listen you lunkheads, he didnt say lunkheads, something kind of like that, you have got to not only cut but get to the quantity quantity that i saw under quantitative easing i saw under barack obama we see central bank doing although he was a big critic of it running for presidency but what do you make of that pressure . The fed responds what is going on in the u. S. Economy and what is going on the u. S. Economy has been growing at a fairly good clip, however, there are pockets of concern and one is investment. Investment has been slowing. So the u. S. Consumer really been carrying this economy and i think the fed might be a little bit concerned with the tariffs and inflationary pressures you might see the consumer slowing down. That is the balance the fed has to take into account whenever it makes its decisions. Neil when it makes a decision, presumably, next week to cut rates, is it your bet that it is quarter point . They wont do anything else . They certainly wont do kind of things that ecb is looking to do, buy up notes and bonds, that kind of stuff, to further goose the economy . Yeah. Certainly, nothing to indicate in the u. S. Economy that is decelerating at such a rapid pace that more than one ierest rate is warranted. Were expecting one point during the year but not as much as the ecb is doing certainly. Neil thank you very, very much. Very good having you. To her point that meeting next week is being more scrutinized than a lot of them because really within the same two week time frame we already got a read out of europe. We got a read out of japan, south korea, Smaller Player in the global stage. But read on Interest Rates there. Youre getting this combination of world events that are leading to still lower rates. Were following them south, even as our economy seems to be doing pretty well. Were following that. Were also following the political impact of whats happening on the impeachment front because it is back in focus right now. House Judiciary Committee, coming as close as it ever has to formalizing that process. Heres the thing though, house leadership, some of those worried about the partys prospects in next years elections are saying theyre going too fast, too far, and ticking too Many Americans off. Were on that after this. With drivewise. It lets you know when you go too fast. And brake too hard. With feedback to help you drive safer. Giving you the power to actually lower your cost. Unfortunately, it cant do anything about that. Now that you know the truth. Are you in good hands . 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Judiciary committee moving as close as it ever has on this very issue. Now a lot of other democrats are saying go slow on this, because we have a lot of other big issues, sure enough will come up tonight in a big debate in houston among the top 10 president ial candidates for the democratic nomination for president. Edward lawrence has been sorting all of this out in washington. He has the latest. Hey, edward. Reporter neil, the democrats are headed down the road to impeachment although House Speaker nancy pelosi shut down the question, she will not respond anymore to this, but the House Judiciary Committee voted to go forward, to set the ground rules for a formal inquiry. Republicans pushes back on the committee. Democrat jerry nadler says the president can respond if he wants in writing. Listen to both sides. Under these procedures, when we have finished these hearings, considered as much evidence as were able to gather, we will then decide whether to refer articles of impeachment to the house floor. The Judiciary Committee has become a giant instagram filter, to make you appear that something thats happening thats not. Reporter democrats are divided. The vote today satisfies impeachmenthung bring base but moderate democrats worry this is going too far. Representative Donna Shalala says, this is sucking the air out of the room of good stuff were doing. They do have some things on the agenda this month. They have to pass a series of funding bills in the house and senate, so the government does not shut down on october 1st. On the gun debate, senator chris murphy is hoping to see a bipartisan deal that can pass both the house and the senate. My hope they will get together, white house staff, is with the president today. And give us clear direction whether he want to have a real expansion of background checks come before the senate, fortunately Senate Republicans made it clear they will not do anything without President Trumps blessing on guns. Reporter they would like the usmca to come up with a ratification vote. U. S. Trade representative Robert Lighthizer responded to an offer by democrats about the enforcement part on usmca. No word when that vote will come up in the house of representatives. Neil . Neil edward lawrence, thank you very much. How would you like to be among those who crafted tax cuts we got from republicans, hear each and everyone of the den Democratic Candidates talk about weighing of doing all the piling on to them . Elizabeth warren suggest ad wealth tax, going after the very wealthy, coming to extending Social Security benefits for poor individuals. Congressman kevin brady, on all of that, the former chief of the house ways and Means Committee getting tax cuts through. Congressman what do you think of all the democratic candidate want to undo what you did . Theyre trying to attack our tax reforms and reregulation because it is working for the american public. Certainly working for the economy. We lifted million 1 2 people out of poverty last year. What i love is now most new hires for working age people in america are people of color. So were getting people out of the sidelines, giving them some opportunity. They had the opportunity to join us. They failed. Decided not to do that. All im seeing is crazy ideas on the tax side. Neil you know one of the things the president mentioned, congressman, had the Federal Reserve not started Hiking Campaign we would be in a lot stronger position. The impact of tax cuts and stimulus from that alone would have carried over but they botched it. What do you think . December was a mistake, no question about that. Neil december rate hike was a mistake. Not the others before it . Well look, i actually think, i have a different view. I dont want the Federal Reserve to micromanage our economy. I dont want them putting their foot on the brake prematurely. I dont want them hitting the gas because they think they need to for some reason. If they protect the value of the dollar and keep, Pay Attention on inflation, frankly we have Strong Enough economy, if you get fiscal policy right, which we have, and Monetary Policy is just neutral, were going to grow. Neil all right. The certain is the growth has not stopped, not reversed but is slowing. Some were talking about session a few weeks ago. That was a bit premature. Yes. Neil are you concerned the oomph from the cuts have not materialized to degree you like . No question, some of the Federal Reserve action, trade challenge, global slowing of growth has had an impact, no question about it. I think there are many days where wall street is a bit disconnected from the average economy. The biggest challenge our businesses still tell us they have is workforce. They cannot find workers they need. What would you call this downturn . Help wanted recession. Never before, have we had had such urgency for neighbor. The clothe is there. The president resets, redesigns that relationship with china. I think were at 3 growth or more. Neil joe biden is not as tax cut averse as colleagues running for the presidency, but he has recommended taken corporate rate down 21 , upping anywhere from 25 to 28 . Its a moving target, but not returning to the 35 statutory level it was at. What do you think of that, among the choices, his are the least tax onerous . If that is the least onerous, tells you how bad the whole lot is. That would why doesnt he just pledge to send jobs overseas . Truth of the matter we lowered the rate to 21 , redesigned whole International Code to become more competitive. Since we did that, five countries already lowered their corporate rates. Some below us. This is competition. Having one of most innovative and tack code on the planet is hard work and well have to continue that work going forward. Going backward, look, it will cost the jobs, manufacturing patents, innovation, even joe biden neil more than taxes right . The reason i mention it, a lot of ceos have, withheld some future hiring and expansion they dont know the trade thing is working out. Theyre concerned this is spreading and it could be problem. Do you think that, the trade war, whatever you want to call it, congressman, has complicated things in a way that you didnt plan on . Yes. The answer is yes. Clearly it has an impact. We know what the president is trying to do with china and this may be the moment in time where economically were strong, where we can challenge these unfair trade practices, and redesign that relationship the i will tell you this though, much of what we did in the tax code was to change location decisions, where businesses put their plants, their patents, do their research. Were just now finishing many of the rules and regulations that go with that. The reason i always say i think the best part of tax reform is yet to come because that will significantly impact where those new Manufacturing Research plants are. They are going to be in the united states. Neil real quickly, are you angry at a lot of the ceos who either bought back stock, free to do, or rewarded shareholders but didnt do a lot of the other things that maybe you had hoped and that sticks in your craw . Yes and no. Not for a couple reasons. We had a number of companies, you know, go to their employees, provide, not just bonuses but higher pay raises. What weve seen as well, a lot of new Retirement Benefits and paid family leave. Things that work for their workers. Stock buybacks, look whats wrong with bringing back profits from overseas and investing it here in america for any reason . In fact, you know, if you cant find something of value to invest in this moment why not return it to the shareholders and drive it into the economy . Neil kevin brady, thank you very much. Texas republican. Ranking member of the house ways and Means Committee. The former chairman, the one who crafted the tax cuts that came to pass. Weve been focusing a lot on joe biden but the rising Star Democratic Party according to polls for now is Elizabeth Warren. She for one tax hikes is a new mantra, particularly targeting the wealthy. Now the wealthy are responding. Guess who is going to be the focus when she starts debating . Yeah, Elizabeth Warren. After this. I knew about the tremors. But when i started seeing things, i didnt know what was happening. So i kept it in. He started believing things that werent true. I knew something was wrong. But i didnt say a word. During the course of their disease around 50 of people with parkinsons may experience hallucinations or delusions. But now, doctors are prescribing nuplazid. The only fda approved medicine. Proven to significantly reduce hallucinations and delusions related to parkinsons. Dont take nuplazid if you are allergic to its ingredients. Nuplazid can increase the risk of death in elderly people with dementiarelated psychosis and is not for treating symptoms unrelated to parkinsons disease. Nuplazid can cause changes in heart rhythm and should not be taken if you have certain abnormal heart rhythms or take other drugs that are known to cause changes in heart rhythm. Tell your doctor about any changes in medicines youre taking. The most common side effects are swelling of the arms and legs and confusion. We spoke up and it made all the difference. Ask your parkinsons specialist about nuplazid. They give us excellent customer otservice, every time. E. Our 18 year old was in an accident. Usaa took care of her car rental, and getting her car towed. All i had to take care of was making sure that my daughter was ok. If i met another veteran, and they were with another Insurance Company, i would tell them, you need to join usaa because they have better rates, and better service. Were the gomez family. Were the rivera family. Were the kirby family, and we are usaa members for life. Get your Auto Insurance quote today. Neil those met all the criteria, there were just 10, because plenty of others who are going to make the big debate tonight in houston. Now the clear frontrunner right now is undeniably joe biden. Look who is getting more press attention as of late. That would be Elizabeth Warren. The phenomenon around her campaign, she eschews big corporate dough, the fundraisers that other candidates need. She gets more than enough in small denominations. What some say is Bernie Sanders approach to this. Talk to the people. It is popular, populist. And has her in the center seat. Lets go get a read on all this from tom bevin. She added to popular appeal with a plan that shores up more Social Security dough for lower and middle class folks, taxing the rich, those 200,000 and over, just what they like to hear. What do you think . Smart politics. Elizabeth warren is trying to sort of thread the needle being joe biden occupying the moderate space and Bernie Sanders the revolutionary, right . She is more in the Bernie Sanders camp. She is not talking like she is trying to promote a revolution but she is espousing a lot of his policies. She has been making inroads with the establishment. That is what she would need to win the nomination. She has enthusiasm. She will be in this for the long haul. She has a great operation in terms o on the ground and in the early states. Neil how is that polling, obviously New Hampshire will be a important bellwether for her. Has advantage of being from nearby massachusetts. Bernie sanders has advantage being from nearby vermont. I dont know how that splits, what do you think . New hampshire joe bidens lead is down to half a point in real clear politics average. Five polls in the last six weeks. Biden leads in two of them, sanders leads in two of them, warren leads in one of them. In New Hampshire it is wide open. Joe biden promoting himself as an electable frontrunner, if he falters in iowa and New Hampshire he will have to play defense before he gets to firewall in south carolina. Neil how is this whole tax hike thing resonating . Walter mondale proved when you raise taxes on the rich or anyone, it comes back to boomerang. It maybe help you secure the nomination in a general election battle what do you think . It will be interesting. Warren is doing the populist thing. She, her framing for this whole thing is income inequality. The rich have too much, the rest of us have not enough. And so she has got a very easy way for people to digest this, understand it, by looking we want to take two cents from the richest of the rich. That will pay for all these programs for everybody to have. Its a interesting message, in the current political environment it may be political popular but for democrats at large, comes down to the midwestern rust belt states, how it is perceived there. That is the real question. We dont know the answe to that. Neil tom bevin, real clear politics, cofounder, from beautiful chicago. All the bus about things looking good on the front, i will not say Charlie Gasparino will rain on that parade. But i am saying charlie padearino will rain on that what a time to be alive. 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At national, i can lose the wait. And keep it off. Looking good, patrick. I know. vo go national. Go like a pro. Neil the u. S. , china doing business. A lot of this, trade quagmire, 18, 19 months, will we ever get oaf this. This is going on for a long time even before Jackie Deangelis was born. Nevertheless she will report on the history of that. Hey, jackie. Reporter i am. Good afternoon, to you, neil. We were thinking about china different perspective. The president mentioned good will, when he talked about delaying tariffs on october 31st. Goodwill is about the relationship that the two administrations have theyre working through the negotiations. We wanted to look back at how businesses started in china, how businesses developed there. How this has all gone down. Negotiations started in the 70s. Business got going in china in the 80s, the peoples republic of china. And 90s is when things took off. Coincidentally i lived in china the 90s. What impressed me, american brand, logos, fastfood particularly. Mcdonalds opened in china 1990. That was relatively late. The company says it wants 4500 mcdonalds chain in china by 2020. What about kfc, yum brands . They came in 1987. Pizza hut followed in 1999. When i lived with the family, neil, what was so interesting, it was aspirational to go to the chains. That is what we did for special occasions. Dont forget starbucks getting there in 1999. Clothing brands, levis, nike, it is interesting, levis says china is only 3 of its business today. But a huge market going forward. For nike, it is 20 of its market. You can see the kind of growth levis is expecting there. The question is all about manufacturing, right . The president put pressure on companies to shift the supply chains. A lot of people are wondering can there ever be another china . Listen to bob hormats on this . The short answer is none of them in themselves can be the next china. Some can take some of the supply relationship with the united states, that china now enjoys. They were already shifting because of higher wages in china to the countries you mentioned. Myanmar, vietnam, mexico. Reporter this is interesting, there are reports out that there is some sort of a short term deal with china. Maybe that is best interest in china. The chinese suffering being squeezed by the trade war. Pressure on american, the president and administration are learning a lot how to do business with china and kind of relationship that they need to foster that ball and push it forward, come to an agreement, neil. Neil we shall see. That has been a long time coming. Jackie, thank you very much. Charlie gasparino, has his doubts, right . Yes, i will tell you why. I met with a chinese diplomat, very influential, cant use names. Neil can the name the place . In new york city. Neil olive garden . No in a townhouse, that houses olive garden. Major a lot of people that do private equity do business in china and they mad a Major Chinese diplomat there. I was asking the first question, i was deemed first question, the lone reporter, i asked about trade, are you going to do a deal . I mentioned in his preamble the diplomat made this point. Since 1980, china has taken 800 million plus people out of poverty. It is not the poverty we have here, which is, sometimes entrenched, it is much dire, much more extreme poverty. They have 20 Million People left in this extreme poverty, okay . Everything they do is directed, president xi, everything is directed to get 20 Million People out of poverty. There can be no compromise in getting those people out of poverty. This is what he said. No compromise . You wont take a deal, that sort of makes compromises a little bit with us, short term, maybe pain is diverted, from being so focused 20 million for longterm gain, relationship with the u. S. , long term . He says nothing will stop us from compromising, there will be no compromise getting those 20 Million People. I took that as like, they dont care, i. P. Theft is means to an end, getting 20 Million People out of poverty. All the stuff they do, unfair trade relationships. Neil why the talk was they wanted to separate that stuff. It is disputed. What do you think . They are not going to divert their attention away from what their main goal, according to them get 20 Million People out of poverty. I said, isnt this hurting you the tariffs . Let me tell you something. He gave me a History Lesson about the opium wars, how western colonialists tried to exert pressure on china to change their trade policy, britain and france, that is what the opium wars was b china was Strong Economy in early 1800s, very big exporter. They changed dynamic, destroyed chinese economy. They will never go back to that. Neil long memory. They will never lose face. That is what he told me, we cannot lose face particularly western aggression on trade. There is very little that theyre going to compromise if you start attacking them on twitter. Just so you know. Neil doing things, reportedly well buy more agricultural goods, or Administration Says well open up more markets. You say youregonna . No, they say were not gonna. Neil okay. Im just a simple country reporter. I tell you neil you never lived in the country. What country youre supposed to say. I say this threats are not going to work with them. They will not compromise. Neil that is all we have had. All we can do identify where they step over the line which they clearly do, i. P. Theft and other things, i think, threatening them is not going to work. Creating some sort of Global Alliance which puts pressure on them in softer way was probably the only way to go and President Trump didnt do that. I dont hold up much hope anything is going to change. Neil youre a hater. But thank you for that lesson and opium wars and everything else. That was a ratings juggernaut. Thank you. You were around back then. Neil yes i was. Way before jackie was born [laughter] neil absolutely. Thank you very much, buddy. He goes to the fancy evident places, hangs out with the fancy evident folks. It whats it is. We have a lot more coming up, including the administrations crack down on vaping crisis. Whether or not that is moral thing to do, constitutionally can he do it, after this . When you open a new account. Just another reminder of the value youll find at fidelity. Open an account today. Of the value youll find at fidelity. Why accept it frompt an incompyour allergy pills . E else. Flonase sensimist. Nothing stronger. Nothing gentler. Nothing lasts longer. Flonase sensimist. 24 hour nondrowsy allergy relief neil banning ecigarettes. It is moral an ethical battle. The president says it is harming our kids, six teenagers died, others gotten very sick, a moral imperative we get the ecigarettes off the market. Grady trimble has been following it all. Grady. Reporter the specifics of the ban the president will roll out with the help of administration in next coming weeks still have to be worked out. Fda is working on guidelines t could be a few months before we see a ban. It will focus on flavored cigarettes. Those are ones especially appealing to young people. It has parent concerned. That is at the national level. At the local level, lawmakers and School Districts across the country are trying to figure ouw o deal with i in tampa, florida, in 15 minutes, a state representative is introducing legislation to curb vaping in florida among young people. A School District plans to see big ecigarette makers for damages to the district and its students that lawsuit could become the first of its kind. Some schools installed vaping directors to monitor students. That alerts teachers and min straighttores if somebody is vaping in a bathroom. Michigan passed a ban on e flavored cigarettes. Juul, the biggest maker of the products, it support as ban and some regulation on these types of products especially the flavored ones but it needs to be categorywide. In other words in juul is affected, then other makers need to be affected. Ceo said this to the San Francisco chronicle in an interview recently, when we took flavors off shelves, surprising speed which they were replaced by other companies products. Thats problematic. The flipside of this argument, neil, a lot of people say vaping is better than smoking because, smoking cigarettes, there is tobacco in that. That kills hundreds of thousands of people every year. Health officials saying stop vaping entirely while we vet these deaths and all illnesses happening across the country. Neil . Neil grade did i, thank you very much. Weve been following story where all the big Grocery Stores, online, elsewhere are pushing to deliver to you. The latest is walmart which is planning to roll it out in every state in the country. That got us thinking. Is anyone ever going to go to Traditional Grocery stores again, after this . 300 miles an hour, thats where i feel normal. Having an annuity tells me my retirement is protected. Learn more at retire your risk dot org. At comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welcome to the neighborhood, guys. There is reward. Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. Neil if im john bolton i dont know how i feel about this, oil down again in hopes that john boltons exit leads to talks with iran and north korea. Like a dingdong witch is dead thing. That is not very fair or nice. That is the way the markets work. Walmart unveiling unlimited grocery delivery subscription. In any state in the country, walmart will deliver what you want and the groceries you need right away. Which got us thinking, it happens sometimes on this show, what if everybody did that . A lot of people are doing that. Are Grocery Stores as we know them, going to be like the Department Store malls of today . No one will go there . Stu leonard ceo, stu leonard disagrees with that. Despite the growing trend, Grocery Stores are not going anywhere. His is an event in the new york, new jersey, connecticut area, he can claim that. Its a family business. Right. I have to bank on the fact retailing is here today. Neil but you do have delivery . We started with instacart. They will deliver persons groceries, order it on line, deliver it. It is 3 of sales right now, growing at about 50 . Neil do the customers pay surcharge for that convenience through instacart, right . Through neil but you dont pay it . No, we have milk at 1. 99 a half gallon. Say, 2 . 13 extra would cost you a quarter delivered to your house. Neil has it expanded your business doing that . You know, i dont know that. I know a lot of customers said i didnt have time to run over to buy stuff. I think it helped 50 growing it and 50 people who were going to come anyway. Neil when youre delivering food you have to be fast at it. I know. Neil not one of those things you can wait for a nonperishable item. How will that work out . Big grocery chains is one thing. Big stores are another. For someone like you, that is your bread and butter quite literally. Were like 80 perishable at stu leonards. We have fresh meats, fresh fish, fresh fruits and vegetables everything from local farms. Neil yeah. Everything is local, right . I find people want to pick their own salmon out. You should see people in front i want that piece, i want that piece. Neil really . So my wife has been there. Its a long day. That experience, that touch and feel is different in your case. Youre different. Your store is different in that respect, period. That is what were trying to do, keep retailing fun. Were just opening in paramus next tuesday at the paramus park mall. Were opening in an old sears site. Neil isnt that wild. Here is one of the greatest retailers that ever existed, closed and here we are now opening neil that could be a scary omen too. Youre not worried about it . Look at my nails. Neil you do, a lot of people are not familiar with you going to the stores, is an event. Do stuff for kids. Almost like going to a carnival. You obviously differentiated early on in the grocery business very low Profit Margins but you found a way to expand those . Were high volume. We sell, we buy direct from the farms. I go visit a lot of farmers all the time. We bring the stuff in. We have animation shows like disney, in the store for kids. Were adding something in the paramus store, augmented reality, where kids can hold their phones up, animation shows come out of the wall in the store. Neil you give a lot of stuff away, right . Lots of samples. Neil yeah. We kid some customers well not put price tags up in the store. Well weigh them on the way in, weigh them on the way out. Neil you lose a lot of money with me. One thing i have thought of, your voice is ubiquitous, tristate radio ads, youre still doing them, right. Right. Neil people bump into you, dont know the face but know stew leonards but they know the voice. We have a lot of customers going through stores. I grew up in the business. My brother, two sisters. My dad watches who love you. Neil you make crab cakes sound delicious when you say it. When i say we have crab cakes im excited about what we do at the store. We say it is nice, find the line looking for a new trend or product. Look in new york city, there is lines of people waiting to get in for that cupcake. Neil your stores are constantly changing but is that the pressure you guys are under . All the big names, you know, with talk about walmart. Theyre all doing it. All major chains. They, shop rite, so many others are going this route. So, maybe with the exception of some of your stores, has it made Grocery Stores we know them dinosaurs . I dont know, i dont think they will be a dinosaur. You have to keep innovating. We have Cauliflower Pizza right now, thats selling more than the regular cheese pizza. Neil cauliflower is the crust . The crust. You still put mozzarella cheese. Neil does it taste okay is it . It is phenomenal. Neil youre not italian. How would you know, [laughter] we took a burger, took filet mignon burger, put different cuts. You have to come up with things all the time. It is pressure. It is always fun. Were looking around, sniffing, scratching. Neil amazing. He has been doing this for so, so long. Not remotely heavy, not remotely fat. I walk in one of his stores i gain 10 pounds. Well have more after this. [upbeat action music] pilot were going to be on the tarmac for another 45 minutes or so. Thand find inspiration who win new places. Ct. Leading them to discover were woven together by the moments we share. Everything you need, all in one place. Expedia. Youre smart,eat you already knew that. But its also great for finding the perfect used car. Youll see what a fair price is and you can connect with a truecar certified dealer. Now youre even smarter. This is truecar. All right brad, once again i have revolutionized the songwriting process. Oh, here we go. I know i cant play an instrument, but this. This is my forte. Obviously, for Auto Insurance, weve got the wheel route. Obviously. Retirement, were going with a longterm play. Makes sense. Pet insurance, wait, let me guess. Flea flicker. Yes howd you know . Studying my playbook . Yeah, actually. Neil all right. We are less than a hundred points from a record on the dow jones industrials. That was reached on july 15th. The s p 500 also within spitting distance of a record itself, one that was reached at the end of july, around july 26th. A lot of it has to do with growing optimism on the trade front. Know, weve heard that one before. But at least adding to a little of the buying excitement here is what happened out of europe. The European Central bank not only cutting rates, that was expected, but doing their own bit of quantitative easing to stimulate the european economy. Now, the president seizing on that to say thats the way to do it, thats the way you goose an economy and right now, he was sending a strong signal to the Federal Reserve for whom you might have heard hes not a big fan to do the same. We are still waiting on front. The Federal Reserve meets next week. Expectations are at that gathering, they will cut rates a quarter point. Thats about it. If you are expecting anything dramatic like we saw out of the europeans, not yet. Not yet at all. Wall street Journal Editorial Board member James Freeman is here. Kat timms and dan ribboen. The markets again are almost in sync on trade, trade, trade. Better it looks, better for them. This is uncanny. I dont know that its uncanny. Look, the market just doesnt have any big catalyst to go up or down right now. So anything, any time anything happens with u. S. china trade war thats good, market goes up. Any time theres any headlines its bad, the market goes down. Neil its almost completely tradecentric. The worry that you hang your hat on something thats yet to materialize. Thats just where we are right now because theres not anything else. We dont have earnings coming out right now. There are low expectations for Earnings Growth in the third and fourth quarters but we hent actually seen those numbers yet. You also dont have anything big. The ecb came out and did exactly what the market hoped they would do, then a little bit more so thats got traders a little excited, little bit of pickup in their step, you know, little more stimulus for europe. Hey, if thats how you do it, if donald trump wants the european economy,. 5 growth, negative 2 growth in germany neil what i think is its one thing to set your standards with the economies that are on fire and getting it done. We are imitating losers. Right. Yeah. Theres an excitement with these cuts neil my producer said [ inaudible ]. There has been some excitement. That was the whole point, to try to fix these problems with growth, but theres still the issue of fiscal policy that this kind of is sort of like putting a bandaid on a bullet hole essentially. What you said, we want to have slow level growth, fine, lets do that but i dont understand why we would emulate these countries but i would say we should just end the fed entirely. Then we wouldnt have to worry about it. Mario draghi came out today and said we need fiscal stimulus. We need you folks out there in government to do more. I dont think President Trump would like it too much neil no. This was his swan song move, who knows what Christine Lagarde will do in his place. The effect it has if we all race to zero, all the smart wall street guys are talking about yeah, we could get to 0 rates, then what . Well, this model isnt working. Its interesting, even the European Central banks own Research Shows its not working. But this is easier than reforming your economy, cutting tax rates, cutting regulations. The interesting thing about the president is, his model works. We have already seen that. Now hes urging kind of more of the european model. Neil his notion is the cheaper your currency, the better it is for multinationals but the jury is still out on that longer term, isnt it . It doesnt always work that way. Yeah. I think the ecb would love it if it absolutely did work. Neil they would be going gangbusters if it did. They have gone gangbusters. Negative. 5 Interest Rates. Why not negative 1 or 2 . Neil not to bemoan this too much but the lower they have gone, the lower their economies have gone. You would think someone would slap their head and say this is idiotic. They dont want to change anything of actual fiscal policy, the way they actually do things. Its easier to say lower it again, lower it again. Its not a longterm fix. Neil do you guys focus on the ins and outs of this . You touched on this. We dont know whats going on, we dont know the administrations position, we dont know about the confusing reads we get of what the chinese are conceding. What i do know is they pick a lot of fights simultaneously. I was talking to peter navarro, you know, trade spokesman for the president , pushing this new thing on International Postal rates, it numbs your mind thinking aboutit. Its a battle that might be a worthy one but in the middle of all of this, i have to wonder if its worth it. I want you guys to react to this. Peter navarro. You ever lose track of all the people youre taking on . So who are we weve got neil the world. Hang on. We got a great deal with canada and mexico that congress has to pass. We just had a great deal with japan thats moving forward. Were talking to the uk as soon as they solve their brexit deal about getting things. Were getting investment from europe. I dont see all these conflicts that you allege. We can do more than one country at a time, neil. Trust us on that. Neil youre convinced of that, its not confusing . The proofs in the pudding. Neil no, we dont have a china deal. It got nasty. The point was, im not here to besmirch him. I just think we have so many fights and so little time and its confusing people. This postal rate thing hes arguing over countries get better deals than we do. I get it. It might be a legitimate fight. One battle at a time. I think its confusing folks. Thats all im saying. What do you think . I think the problem is mr. Navarro is a trade warrior and he thinks trade deficits are a problem, so hes urging the president to pick all these fights around the world, and i think china is a different case. I think the president has succeeded in persuading people that the theft of intellectual property, the limits on the rule of law, make it different. So i would hope if this thing is dragging out for awhile, we talked about this before, making trade peace with our friends while you focus on getting the best china deal would encourage that corporate investment. Neil we need our friends. All these people, oh, neil, youre a globalist. No, im for getting along with other countries. And one of the things i just notice with this, the china fight is a legitimate one. I take nothing away from that. The president is waking people up to the fact its a real concern. They have cheated and lied for many years, certainly that you and i have covered them. Fine. But in the process, we have gone after south korea, we have gone after japan, gone after canada, gone after mexico, maybe some of those fights were worthy and worth it. Others i imagine are not. Thats why i think we need a backstop of friends and we are running out of them. Its too much, especially most economists would point out some of the deficit has to do with the fact that america just consumes more than it produces. We are not going to ever be able to completely close that because imports do make up for that. So i dont see any point in as you said, taking on our allies because we do need some allies. Neil yeah. To function as a country. Neil what do you think . It would be nice, it would be great to have allies. That was really the Coalition President obama was setting up under his term. When he was trying to set up the tpp and moving forward neil the Transpacific Partnership was supposed to be a group to counter the chinese. Now, we bowed out of that maybe for perfectly legitimate reasons but we lost our bargaining chip, right . Right. That was the idea, to set up this Global Coalition that could counter the impact of a rising china and the influence they were trying to have in asia. Thats what he was doing. When President Trump came in and pulled back on all these alliances, then started trying to renegotiate settled trade deals, its worsened our relationships with our allies and now we are seeing the exact reason the president , president obama, was trying to set these coalitions up in the first place. Neil by the way, i fully understand and appreciate the degree to which, i have heard from tech ceos and the like, yeah, they do steal our stuff, and its why we kind of trimmed our exposure to china long before this president came along because it was pretty blatant so intellectual property and all the issues we have been talking about are legitimate and worthy to pursue. Its just that we are spread thin fighting with everybody. Yeah, i dont think its too late, by the way, to try and do a new asia deal. Obviously it would need to have a new name, i think the president needs to rebrand it. But our friends over there still dont want china to dominate their part of the world neil but they are already flipping it around and using it as an excuse to say this is why our business is hurting or using it as an excuse to say this is why were trimming our growth plan. So are some overdoing it and blaming it for the slowdown thats going on, because thats what the president was arguing. I think theres a mix. Some of the concerns are legitimate, especially when we are taking on not just china and the tariffs, Many Industries are dealing with it right now but at the same time, the economy is really strong so i think some people are overstating it. I think that as with many things, the case is the truth lies somewhere in the middle. Neil for today, for all i know we could hit a record in the stock market today. Were not that far away. 50, 60 points. What do you think drives it, when push comes to shove, is it just that we are the only game in town by comparison, these same markets were trying to imitate, these economies we are trying to imitate, we are better than them and thats ultimately whats scoring this for wall street . Look, Stock Traders say all the time there is no alternative. Tina. Where else you going to go . You going to get a tenyear treasury yield with, what, 1. 75 now . You going to go with a 30year yielding just under 2 or just over 2 now . You going to some japanese bonds that are paying you nothing . German bonds that are charging you to hold them . What else, where are you going to put your money besides the u. S. Stock market which actually for a time last month was paying a better dividend yield than the tenyear . Neil all of a sudden you get a lot more bang for your buck via dividends than you do on a 30year and certainly tenyear, right . Yeah. I think the reason we talk so much about trade is because that is the big overhang. Everything else, i think the president has succeeded in basically solving the competitiveness problem in the u. S. Economy. We have now got a tax system that allows our businesses to compete, hes made great progress cutting regulation. If we get the trade thing resolved, i think really skys the limit. Just amazing how big of an impact something so small can have. The president made a small concession to china and the markets are loving it. Experts are saying not really time to pop the champagne yet, we dont know whats going to happen longterm but the market is popping the champagne essentially. I get it because champagne is also, my colleagues at the journal, this story today that china is making a new effort to figure out how to resolve it, i think this is we have had a lot of these before. Who knows what ends up happening. But it definitely suggests that this balance thats been out there that xi jinping has kind of given up on cutting a deal with trump and hes now looking to the next administration is not the case. They are trying to find a way to make this happen. I would disagree. I read that story youre talking about, and it says theyre turning the focus now. I think its because they still have these ir reconcilable differences on the big issues. The question is, is trump or president xi going to back down from these irreconcilable differences and neither man, neither side has given any sort of idea thats whats going to happen. Maybe we can get a short fix but again, President Trump today came out and said we are not going to do an interim deal or shortterm quick fix. We want a big deal on these issues. We want to make sure a big thing, you know, things change in a big way and meaningful way for the u. S. Economy. That seems to be president xis stance as well. With those two opinions, it seems like weve got the immovable force and whats that, the unstoppable object. I mixed up my metaphors. Neil we are going to take a quick break here. There are a lot of folks watching what these Democratic Candidates will be debating in houston tonight. We talk about a recovery. Could Elizabeth Warrens plan to go after the rich and in a bigger way than we ever thought possible, they are annoyed, thats probably an understatement, the rich, but could this boomerang on you . We are on that, after this. I get it all the time. Have you lost weight . Of course i have ever since i started renting from national. Because national lets me lose the wait at the counter. And choose any car in the aisle. And i dont wait when i return, thanks to drop go. At national, i can lose the wait. And keep it off. Looking good, patrick. I know. vo go national. Go like a pro. Here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Neil all right. The 2020 contenders will be debating in houston tonight. All eyes on Elizabeth Warren. She released her latest plan on Social Security, how to shore it up or at least help average folks get more, average and poor folks get more by, well, going after the rich. Hillary vaughn has more in houston ahead of the big debate. Hey, hillary. Reporter hey, neil. Senator Elizabeth Warren and former Vice President joe biden will head to the same debate stage tonight, going facetoface for the very first time. Warren, who has steadily gained momentum in the polls following her debates, has a shot to finally take on the frontrunner. Warren tonight will take the stage with a new plan in hand. This one to expand Social Security, promising people who get Social Security benefits 200 more a month. The plan would also bump up benefits for low income families and people of color. All of this paid for by the top 2 . Warren says top earning families will contribute over 14 of their net Investment Income to Social Security. Biden among the candidates who have plans like warren at a fundraiser in new york last week, said you have to have plans but you have to be able to execute those plans. That fundraiser was hosted by the cofounder of a houston based Natural Gas Company which biden got a lot of heat for attending in the first place so he made a pledge not to take any Campaign Cash from fossil fuel executives. Texas is the top producer of oil and natural gas in the country. Some of the candidates onstage tonight have promised to ban oil fracking, a controversial natural gas extraction process. Senator kamala harris, Bernie Sanders and Elizabeth Warren all have pledged to put a stop to it. There are also two texans onstage tonight, beto orourke and Julian Castro who both shied away from an allout fracking ban but are looking for a chance to shine tonight. Beto will have to do that while censoring himself because abc and the dnc issued a memo to all candidates to not use foul language on the debate stage, and beto has been using the f word on the campaign trail when expressing frustration about gun violence. He will have to keep his fourletter words out of his comments tonight, though. Neil he cant use that word. Hillary, thank you very, very much. Meanwhile, ted cruz is warning that texas could be very hotly contested in 2020. Maybe that is why the Trump Campaign is flying its socialism warning banner before the big debate. Back with our panel now. James, kat, dion, who is shaking his head. You dont want to get him upset. They are going to say all these guys are separated only by the degree to which they want to spend you into oblivion. You say . I think the big mistake Elizabeth Warren is making here is paying for her plan. That was a big mistake Hillary Clinton made. You need to embrace m t, embrace all the new economic models. Everything you want, free, no more taxes, no raising taxes, just free, free, free, free stuff, free college, free Social Security, free medicare forever. Neil but the party base seems to like it. Right . I dont know. For me im a single issue voter. I actually vote on whoever uses the f word the most. Its ridiculous. No, look, i think a lot of voters are very liberal, particularly democratic voters in primary elections. For that voting bloc, they like to hear these kinds of things. Everyone else, though, not so much. A lot of people are scared by words like socialism and the fact that some of these candidates, remember when obama was some super progressive and he was a socialist . These people are actually using the word socialism and obama is too conservative now. I think that for a certain segment of the population, yes, but that segment seems to be influencing the party overall, if you watch these debates. They are trying to see how much further left they can push each other. Neil i dont know where all this goes. I do know that Elizabeth Warren is going to be closely scrutinized here. She is the rising polling star. You will warn me, as you should, its too early to seize on that when no one has voted yet. Part of her appeal is she backs up what she wants to do with the plan of how she plans to pay for it, particularly its on the rich. The latest wrinkle in that is this plan to beef up Social Security payments for average folks and hang it on those who earn 250,000 or more to pay for it. But again, it plays out a theme ats consistent. She just verbalizes it more than the others. I think dion may be on to something. Neil hes on something. Thats a lie what did i do . I mean, it might be better to just say youre going torint the money because she keeps going back to the 1 with each of these plans. You know the climate plan. Even if you took every dollar the 1 make each year, every single dollar, it wouldnt even pay for the governmentrun health plan shes proposing, not to mention all this other stuff. So your question about the frontrunner i think is a big question in these debates is when do people start treating her like a serious contender. Neil tonight will be the first shot at that. I think you wonder is it tonight that someone finally raises the issue of claiming to be native american all those yea years. Now, maybe candidates are reluctant to go there but if she takes the lead, if she begins to leave bernie behind her and shes the second place person, you might expect some of those questions. I just do not imagine doing that. You know . Neil do not imagine i have always been like and i have never pretended to be anything else. Neil you think thats her achilles heel . It is said republicans are going to pound that. I think she has a lot of them. Part of it is she is so far left. Even if you took if you get bezos making 30 grand a year, there still wouldnt be enough money to pay for all of these things shes proposed. A lot of it hasnt been constitutional as a separate issue. Then also, this is an issue that trump at least would absolutely have a field day with. She would be up there on the debate stage and she would be giving out this point by point plan that she thought out so well and trump would just say whatever, pocahontas and the crowd would go wild. You would win on that. Neil its still early on. Thank you guys. Dont go anywhere. Next we are looking at apple, of course hitting a trillion Dollar Company yesterday, adding to that substantially today. Of course you had apple at its low, we were talking about how this was faring a couple decades ago when you could get it for a split adjusted buck a share. Right now its at 225. More after this. The community, we present limu emu doug with this key to the city. [ applause ] its an honor to tell you that Liberty Mutual customizes your Car Insurance so you only pay for what you need. And now we need to get back to work. [ applause and band playing ] only pay for what you need. Liberty. Liberty. Liberty. Liberty. Audreys on it. 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. Jardiance can cause serious side effects including dehydration, genital yeast or urinary tract infections, and sudden kidney problems. Ketoacidosis is a serious side effect that may be fatal. A rare, but lifethreatening bacterial infection in the skin of the perineum could occur. Stop taking jardiance and call your doctor right away if you have symptoms of this bacterial infection, ketoacidosis, or an allergic reaction. Do not take jardiance if you are on dialysis or have severe kidney problems. Taking jardiance with a sulfonylurea or insulin may cause low blood sugar. Lower a1c and lower risk of a fatal heart attack . On it. With jardiance. Ask your doctor about jardiance. The type 2 diabetes pill thats on it. Learn more at jardiance. Com neil all right. Get this. Walgreens is now offering 3 cash back for anyone with an apple card purchase. Yet another reason to keep pushing up apples stock price. Its holding well above the trillion dollar valuation. Again, little bit north of 225. It can go back and forth. It hit this about ten months ago, then came out of that, but its a whole new world right now. Investor and managing partner gene munster is joining us. And our panel joins us with their insights as well. Thank you for stopping by. Thank you, neil. Neil lets look at apple post the product announcement. Some people shrug their shoulders on the new watches or new iphones. Be that as it may, it seems to be back in fine form for now. You think this lasts . I think it does. I think there is measurable upside to the stock. I just want to take a step back and put some perspective on what the consensus investor view of apple today is. That is an 85 largely hitdriven hardware business. Thats why there is events like we had this week, a lot of focus and scrutiny on the features. Thats an example of hitdriven hardware. 15 is a Stable Services business and that obviously is growing a little bit faster but thats the consensus view. When i think about the fair valuation of apple, i think its important to change the lens a little bit. I think this will become the prevailing view over the next couple of years, is that this is not a hitdriven hardware business, but this is a Consumer Tech staples company. Very similar to other Consumer Staples company, but this is the one company that can make tech usable for all of us, and ultimately, that should drive a multiple that is similar to other consumer staple companies. Just to put that into perspective, Procter Gamble and cocacola trade at 25 times next years earnings. Apple trades at 15. If you apply a similar multiple as apple to as Procter Gamble and coke to apple, that would yield about a about 60 upside to the current stock. That may seem absurd when you think about 1. 7 trillion but i would almost ask the panel and investors more broadly, why in fact do companies that grow, Procter Gamble will be flat in revenue growth, coke will be down, apple will be up 6 or 7 this year, why does a company that ultimately has greater Growth Opportunity and is a staple trade at a much lower multiple. Thats a lot there, but neil that would be a lot. That would be a 350 stock at a minimum. Go ahead. I think related to that question, where the multiple should be, gene, im wondering, you are comparing it to these Consumer Staples companies and people who started that Great Innovation culture at apple probably would not have wanted to be compared to sort of traditional firms like that. You mentioned the rollout this week of kind of what seemed like incremental improvements. Can you tell us about the state of innovation at apple . Do they need to keep creating amazing new stuff or can they kind of milk the franchise like a procter or cocacola . They need to have great products and ultimately, one of the metrics that they continue to share, its a metric that they reveal which is 99 Customer Satisfaction rating, it was 100 a few years ago and they gave the number out, but its been high and part of that is because they do innovate. I think that largely gets lost, i think, in this conversation as we look at the specs around the technology. If you just take a step back and think about the products that they build, the features that they have, it is innovation. I would argue that these are the best Consumer Tech products in the world, if you compare that to samsung or huawei or google or amazons hardware. I think theres a strong argument to be made for that. So the question about innovation, back to your question, is i believe they are innovating and i understand they are not new product categories. There are large categories they will go after, health care and mobility in the future, but i believe they are innovating. Keep in mind, the three features that people want most in any phone is first a great camera, second a better battery, apple delivered on both of those and third, a price they can afford. Thats the piece that apple still largely struggles with, that they are a high end price point. For me its just a pet camera. I have had this iphone 7 for so long, i dont want a new one because its too big but this pet camera might get me. Neil you are not sort of technology woke, are you . Im not. But i am woke in terms of taking pictures of my cat. Neil thats fine. Thats fine. No one asked about the quality of the phone. Can you hear it. Millenials dont talk on the phone. Neil we dont have time to talk. We have time to discuss right now this escalating tension with north korea and china and how the two are going to sort of dovetail to get a deal. After this. Experience the style, craftsmanship, and technology that have made the rx the leading luxury suv of all time. Lease the 2019 rx 350 for 399 a month for 36 months. Experience amazing at your lexus dealer. Doprevagen is the number oneild mempharmacistrecommendeding . For 399 a month for 36 months. Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Neil all right. I mentioned this before. If youre john bolton, you have to be thinking really, guys, this isnt hard enough . Oil prices continuing to slide right now on the fact that hes gone and the prospects of talks with the North Koreans and chinese, all that improves, even the iranians and the former centcom commander on all of that. Commander, thank you for taking the time. Hey, neil. Neil does the world change because he is no longer calling a lot of the Foreign Policy shots . I think everybody is watching and waiting here to see what happens, who comes next. Im not sure that there are going to be any earthshaking moves in the immediate future here in terms of policy changes or anything like that. But of course, all the interested parties are waiting to find out if theres going to be another initiative, take korea, the u. S. , both sides certainly have a majorwanting t forward in some kind of discussion because they both want something significant. We want nukes to go away and they want sanctions to go away. Neither one are likely to happen any time soon. Just unilaterally. But theres a strong motivation, i think, on both sides to get started again with a discussion. Do you feel like the markets overreacting here . Because from the start of the Trump Administration, i dont think other countries leaders have really known what to make of it. The president says one thing, he says another, and it may be a direct strategy on his part to keep folks on their toes, but it doesnt really seem like, its not as if john bolton is out and now a noted dove who loves everybody and wants us all to get along is in the trump white house, right . Of course. Of course. I think markets are looking for a sniff of something to try to move along and if it looks like good news, then things are going to go up. If it looks a little challenging or a little unstable, then they come down. Admiral, James Freeman. Good to see you again. Its been awhile. Wanted to ask you if theres anywhere in the world, among these adversaries, potential adversaries, do you feel like theres a particular place where the art of the deal potential is promising . Do you see a former adversary that you think is really ready to make a deal, chart a new course . I would say probably the korean situation is the most likely, because you have two leaders that are very similar in their approach, and in the case of the North Koreans, kim junguncan basically call the shots himself. They have some kind of chemistry they have demonstrated. Kim is firing his missiles again but hes been pretty cautious in not pushing beyond what i think they verbally conveyed to one another, so for our standpoint, theres some things we can do to get moving. I know they would like to see sanctions lifted, just across the board. I dont think thats going to happen, but there may be a way to get going. I think thats the most likely one. Iran, very complex. Theyve got a lot of issues. Again, revolutionary regime that really wants to move a lot of things in their favor in the middle east so a lot more baggage there. And of course, the taliban, afghan situation is just challenging. It just wont go away. They have been resisting outsiders for centuries and its really tough to get anything done there. I think of all the likely hot spots or Security Problems right now, korea is the best bet. China of course is the Biggest Issue longterm. Thats not going to change. But in terms of maybe trying to get something quick, i would say korea is probably the best bet. Neil all right. Admiral, thank you very much for taking the time. We will watch things very closely. Meantime, we are also watching this. 145 ceos pushing Senate Leaders to act and act right now on gun violence. After this. Fact is, every Insurance Company hopes you drive safely. But allstate actually helps you drive safely. With drivewise. It lets you know when you go too fast. And brake too hard. With feedback to help you drive safer. Giving you the power to actually lower your cost. Unfortunately, it cant do anything about that. Now that you know the truth. Are you in good hands . Like very high triglycerides, can be tough. 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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. but how do i know iflly im im getting a good deal . I tell truecar my zip and which car i want and truecar shows the range of prices people in my area actually paid for the same car so i know if im getting a great price. This is how car buying was always meant to be. This is truecar. But shouldnt somebody this is be listening . Pression. So. Lets talk. Were built for hearing whats important to you, one to one. Edward jones. Its time for investing to feel individual. Neil all right. Thats a lot of ceos, 145 right now pressing Senate Leaders to act on gun violence, do not put it off. Kristina partsinevelos has all the details. Whats going on here . Kristina yeah, they are calling firearm violence a Public Health crisis that demands urgent action. You said 145 ceos from some of the Largest Companies in america. Youve got gap, uber, twitter on the list, dicks sporting goods, even bain capital. Theres a lot of missing companies. You have primarily a lot of Tech Companies and ad agencies but nothing, no big wall street banks that have signed this letter. What theyre demanding is background checks on all sales and transfers of guns. They are also expanding or want to see the expansion of the red flag law which pretty much removes a gun from anybody deemed a danger to society. That would be temporarily taking away their gun. In the letter, they wrote and i quote, gun violence in america is not inevitable, its preventible. There are steps congress can and must take to prevent and reduce gun violence. We need our lawmakers to support common sense gun laws that could prevent tragedies like these. What youre seeing, a trend right now, corporations that are getting more involved in the gun control debate in america. This comes after several retailers have asked customers not to openly carry guns into their stores. Part of that list, walmart, cvs, walgreens, starbucks has done it in the past, panera bread has done it in the past. We are talking about what does america think. There was a very, well, a relatively recent poll from pew research about bipartisan support for several of these gun policies. One in be theingparticular is t background checks for private gun sales. 91 of democrats, 71 republicans. At the moment, the president is slated for a briefing on potential gun control policies today. Back to you. Neil thank you very, very much. By the way, we do want to let you know that with the strong stock market here, we are not that far away from a record. We are keeping a close eye on the dow, now around 27,277. So about 80 points or so from record territory hit earlier this past summer, around the end of july. In the meantime, not just the Trump Administration cracking down on vaping. What a lot of states and schools are doing before they even get a chance to move themselves, after this. Their medicare options. Ere people go to learn about before theyre on medicare. Come on in. Youre turning 65 soon . Yep. And youre retiring at 67 . Thats the plan well, youve come to the right place. Its also a great time to learn about an aarp Medicare Supplement insurance plan, insured by unitedhealthcare Insurance Company. Heres why. Medicare part b doesnt pay for everything. Only about 80 of your medical costs. This part is up to you. Yeah, everyones a little surprised to learn that one. A Medicare Supplement plan helps pay for some of what medicare doesnt. That could help cut down on those outofyourpocket medical costs. Call unitedhealthcare Insurance Company today. To request this free, and very helpful, decision guide. And learn about the only Medicare Supplement plans endorsed by aarp. Selected for meeting their high standards of quality and service. 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Theyre making it next to impossible for kids to get them or get anywhere close to them at school. Back with us, james, kat, dion. What do you think of what theyre doing . Look, these are some very strong steps that the administration is taking here. Health and Human Services secretary alex azar has really come down hard on vaping. There was some talk that maybe when we got a new hhs secretary, they were going to back off vaping. That has been very clearly not the case. Juul, one of the Fastest Growing unicorns, tech startups, whatever you want to call them, in the history of the country, they are not a tech company, they are not some website. They reached decacorn status neil they knew what they were doing. They marketed to kids. They absolutely were. Now they say thats not what theyre doing, thats not why they have candy flavors. Theres an argument just because kids like green apple and ruby red flavors and mango doesnt mean i should not be able to neil you know, i think it was Shepard Smith was talking about one of the guys marketing this stuff and its really over the top what they do, and he properly grilled him on it. My concern is that when you start picking and choosing the products that are harmful, i mean, my big fear is that it spreads, that the government assumes this role as our National Babysitter here when in fact, there are other means by which you could crack down on this stuff. We didnt even do that with tobacco, you know . Yeah, and the recent deaths, that looks like it may be a separate case related to the particular substance black market vapes are the vast majority of these illnesses. Look, i have the juul, okay . Im addicted. Neil did you smoke before . Yes, i did. Now i no longer smoke. Neil you no longer smoke. How do you feel about kids who then get hooked on this and they never smoked . Dont do it. All the kids watching, i know cavuto is for the children. Im sure theres a lot of you out there. I cant stop, i fall asleep holding it every night, i wake up, its still in my hand. Its absolutely sick. Neil is it addictive . Yes, it is. Neil where does this go . I think a lot of parents probably looked at this and thought it was a relatively benign way for a kid to rebel, not as dangerous as smoking, obviously. If a kid is already smoking, this is a better alternative. Neil im not a fan of it. To your point. Shepard interviewed, i agree fully with that, its a weird thing to fear, but i worry bludgeoning the system to get what you want to get it off the market, whatever, whats next. Do you do the same for adults . My big fear, do they go after bacon, do they go after exactly. Where is the wall street Journal Editorial Board on this . Speaking of overreach. I will take bacon. Neil careful what you wish for. You just might get it. In the meantime, europe is planning to block libra, the Digital Currency that facebook is proposing. Its led by the french. You know, its obviously accepted in europe that this is going one step too far. I think what they are saying is this whole Digital Currency thing, much like Central Banks around the world, go slow, go slow. This is not right. What do you think . Look, Central Banks actually are looking into issuing some of these Digital Currencies themselves. China just came out recently and said they are looking at issuing their own Digital Currency, it would be available, it would be the same as cash, backed by the central bank. Essentially you have this currency on your phone that would work even if the internet goes out, even if theres no power. So thats the kind of thing Central Banks are studying and working towards. I think the big fear is they dont want a company like facebook which is a private company, which is motivated by profit, to be able to control this thing. Neil someone will. Someones going to control it. Right . I have no problem with that. Im libertarian so i think almost everything should be legal. But i personally wouldnt neil theres something very twisted about this whole philosophy. Freedom . Im an american. Neil freedom is just another word for nothing else to do. I wouldnt trust facebook, though. I wouldnt trust neil i guess theres this fear that comes across central bankers, you hear Jerome Powell talking about it, his swiss bank counterpart, they dont know what to make of this. They just know it could wreck the system that we have. I think they are trying to kill it in the crib. There is a conflict of interest here, where a lot of the cryptocurrencies, a lot of the appeal was challenging the products created by Central Banks. We dont trust your currency, we dont trust that youre not going to keep printing it to suit your policy agenda. That certainly was the appeal of bitcoin for a lot of people, is to have something that central bankers cannot emulate. So to have Central Banks then deciding how to regulate what are essentially competitors, although i think libra, less of a competitor. Its more sort of integrated into the existing Financial System i believe than some of the others. Neil i just dont understand. I know that its deemed a threat. Its deemed a threat to the system that we have. Thats because it can replace money, quite literally, if people are on libra. The idea facebook has, we have two billion users around the world, they want to increase that to three billion. Everywhere you go theres another facebook user, the guy at the market has facebook, the guy on the corner has facebook, your local deli, everyone has facebook, you can just manage interchangeably and buy things straight from them. You dont have to go through systems or payments or the government. It creates a lot of questions and a lot of headaches that Central Banks have only recently stepped up their knowledge on and their study of. I think thats part of this. I think the other part is really like you said, this could get out of control and where you get to a point that facebook rather than governments have control of how people pay for things. Thats a really big deal. I dont know that it makes sense for neil so you err on the side of the french more than facebook. I dont know that i err on either side. Neil i thinknow. I think i know. All right. In the meantime, water vapor has been detected in the atmosphere of i guess they call them exoplanet. My good buddy and friend is all over this stuff. He was trying to get me up to speed. But this is a planet about seven times the size of earth. How many lightyears was it away . A hundred some odd lightyears away . It apparently would accommodate life. Im just thinking, you know, this planet gets too much for you, kat, there you go. You know, look, it has water but does it have vitamin water zero . Neil it does have a Digital Currency. Space too far. I dont even go to brooklyn. I wont be going to space any time soon. Neil what do you think . Well, there is neil im sorry. What was it . 110 . At least twice as far as brooklyn. Neil exactly. Something like that. Yeah. You may need to rely on the other panelists once we get there, because theres an Oxford University study, believe it or not, saying men are more likely than women to talk to aliens. Neil really . Yeah. Neil wow. But we dont ask for directions. By the way, how do i get to your planet . That, we wont ask. Neil all right. But we are discovering more and more of this, right . It was a couple weeks ago there was a planet 30 lightyears away, six times the size of earth. It could maybe be like earth. Yeah. I think this is the alternative to the green new deal. A far superior alternative. Instead of paying 30 trillion, we find a new planet and go there. Neil we find confirmation theres life elsewhere, im always debating if we have a big day in the markets, do i lead with that or do i lead with i have no idea. I want to thank you guys. Werent they a great bunch . No . You dont think they were . I thought they were. All right. We have a lot more coming up. The dow is really moving very very fast. Up 157 points here. S p, within a stones throw. The nasdaq, not so much. Interest rates, they are stacking up. We are back to early august levels here. The better thinks look presumably for the economy and the Federal Reserve, whats going on in europe, the Better Things look for stocks. Its coming at the expense of bonds, taking money out of that. T you take the money out, the demand goes down, the yield goes up. Thats where we be. More after this. I get it all the time. Have you lost weight . Of course i have ever since i started renting from national. Because national lets me lose the wait at the counter. And choose any car in the aisle. And i dont wait when i return, thanks to drop go. At national, i can lose the wait. And keep it off. At fidelity, we believe your money should always be working harder. Thats why your cash automatically goes into a Money Market Fund when you open a new account. Just another reminder of the value youll find at fidelity. Open an account today. Neil there is a big democratic debate tonight. The reason it is getting dis dispeportionate amount of attention, Elizabeth Warren is surging in the polls. She wants to spend a lot of money that might be meritorious and decent but they cost a lot of money. More Social Security payments for a lot of folks, that means socking it to the wealthy, those earning 250,000 or more for generous payments for those who are not wealthy. What that means here, if you hear phil gramm and others tell it, it is going to wallop the economy. What starts with the wealthy doesnt end with the wealthy. Anyway, former texas senator and man who came up with the grammrudman spending restraints, also a president ial candidate, he will join me on all of this, 4 00 p. M. Eastern me saying there isy s much dough you can get from the very rich. He is very annoyed. He will express his grievance on your world and he will. Man with no brief vanses everyone gets along with him. Charles before you go, one of our loyal viewers eddie hooks, team cavuto is in contest with Charles Payne for ugliest coats. I think it looks great my man. Eddie doesnt like it. Neil someone else told me, i thought tony soprano was gone. I dont need that, charles. Come on. Charles we have to take the good and bad as long as they have a nielsen box. Neil thank you, my friend. Charles im Charles Payne, this is making money. Breaking right now, we have big stuff going on. Investors deal with the typical anxiety associated with hitting alltime highs. Bias remains to the up side as buyers continue to emerge, despite a report of potential