Transcripts For FBC Mornings With Maria Bartiromo 20240714

Maria big show this morning, joining the conversation Dagen Mcdowell, chief Market Strategist art hogan and president ial candidate arkansas governor Mike Huckabee. Good morning. A lot to talk about this morning especially on day 2 of Federal Reserve meeting, Delta Airlines coming. Ed is here, chairman and ceo of the black stone group, Steve Schwartzman talking about his book. Oklahoma senator James Lankford also joining us this morning, dont miss a moment of it, we have a big 3 hours, top story this hour is oil, once again dropping this morning on news that saudi arabia will restore normal output and production levels by the end of the month as secretary mike pompeo meets with saudi arabia king prince salman to twin attacks on saudi oil facilities, iran is denying any involvement in saturdays strike with president Hassan Rouhani blaming u. S. For disruption in the region. Its not exactly going well for them. I think this was their attempt to break out and sort of find way to put pressure on the United States, the fact is their economy is in shambles, people are hurting and the president has put the right amount of pressure on them, they have the backs against the wall, they are in the corner. What now, do you want to see a response from the United States once this obvious confirmation that, in fact, it was iran . They didnt attack us and the saudis, let the saudis do the military part of it. Let us put the economic pressure. We are engaged in something which may be extroamly difficult to get out of but the economic pressure from us and let the military pressure come from the other sunni nations. Oil 15 2 days ago, been pulling back now for the last couple of days, we are watching oil and impact on the economys we also wait for the Federal Reserve today. The fed is expected to cut rates by quarter point, whats your expectation here and do you think this is price intoed the market and what about that oil impact on the broader economy. Does that factor in . The most important point and the calculation here was that this was going to cripple somebodys economy if we had a spike in oil prices, we are showing that the u. S. Is the lead producer, lead expter, so you cant hold anybody hostage by taking away their oils. Oddly enough Higher Oil Prices will affect china than the United States. This doesnt affect the decision, i dont think anything is really going to move them from cutting rates 25 basis points but i think the big surprise or the big reveal would be what do they have to say about whats next and how does the language come out, jay powell has done a good job but not great job of communicating whats next and every meeting has gotten better, i think the market is looking towards please dont say midcycle, please dont say this is the end of this, lets just get this behind us and say we are data dependent. Dagen something happened that was disturbing and jarring in shortterm lending markets, the repo rate, the repurchase market, this is the financial lubrication for banks and shortterm borrowing, overnight borrowing, the borrowing cost would have been 2 to 10 , boom, the fed had to intervene for the first time in over a decade, First Time Since financial crisis, the fed injected 53 billion into Banking System on tuesday, its expected to inject another 75 billion into the shortterm lending market but, again, it really was a bit frightening for Market Participants because this is the first time youve seen a hiccup of this size since the financial crisis, im not saying that we are in crisis mode but today particularly expect the fed to Say Something in addition to 75 billiondollar injection of funds today in terms of more permanent process for making these that the markets are liquid but when shortterm lending markets dont work, i was getting email after email from old sources yesterday and it was really upsetting. Maria why did it jump the way that it did . It was not a crisis of confidence which what you saw in the financial crisis, essentially banks and institutions didnt trust what was backing up the loans, the collateral of the loans, it appears to be that because corporations paid out their quarterly taxes at the same time that government collected payment for treasury bills that it sold to dealers last week, it just sucked billions of dollars out of banks and money markets which created a crunch and shortterm borrowing but when you see rates go from 2 in what should be normally functioning like that market, thats maria does that bother you. You step back and say, okay, you bring up a very good point, this echos things that we saw in 2008 but that doesnt mean thats where we are, the important thing to take away from this the fed acted quickly, new york stepped in and stepped in overnight, 75 billion, whats most important if you look back and say i think dagen explained it perfectly, corporations are paying quarterly taxes and they needed more, when you think about, oh, unexpectedly, you know, in a lower Corporate Tax regime, Corporation Taxes have sucked up a lot of cash, i would walk away and say, yes, the fed did a great job in stemming any crisis and corporations are doing pretty well. Maria doing pretty well in america, fedex is having ppointing earning and citing split from amazon as well as economic uncertainty, are we going to now be entering a period in the next couple of weeks where we will get preannouncements as the Third Quarter comes to the end of september because of the trade uncertainty . Yeah, trade will be one of those things multinationals point, we always think of fedex and ups together, its appropriate for them to be talking about how the trade war has slowed things down, the other thing that they did was the physical decision to drop amazon as client so that has shortterm effect, they spent a lot of money with Capital Expenditures massive, theres a big timing, listen, we thought this would be over last may so our timing and cap x probably got in front of itself, i dont think this signals necessarily longerterm concern if youre company in america and doing International Business you will use trade war as that. Maria new polls, i want to talk about 2020, new polls show that former Vice President joe biden and Elizabeth Warren are gaining ground with senator Bernie Sanders as the only other candidate with double digits, warren on late show talking about medicare for all. How are you going to pay for it, raise the middleclass taxes . Here is how we will do this, costs are going to go up for the wealthiest americans, for big corporations. And hardworking middleclass families are going to see their costs go down. Will taxes go up . The answer is yes. You cannot create that kind of cost and that kind of level of coverage without somebody having to pay up its going to be the taxpayer, its not just the people at the top because theres not enough money if you take every dime of the tax money of the people at the top, you couldnt pay for what they are advocating, its simply not possible. You would still be a trillion and a half dollars short to pay for medicare for all and layer all spending programs, theres not enough money thats reported in income every year by the top 1 to pay for all of this. Everybody is going to pay and the thing that people dont talk about is how your care is going to suffer because the life of Elizabeth Warren, they get to decide how long you have to wait for hip replacement surgery, do you get it, what kind of care do you get, again how much rationing price controls, are you going to be able to keep your doctor, i would put every dime that i have no, you will not be able to keep your doctor. Doctors get frustrated, they are the ones that went to medical school and have a better handle on what a patient needs and, you know, for democrats who say always say dont get between women and their doctor, they want to get in between everybody and their doctor. Maria shes got to admit that shes going to be raising taxes for more than just 1 , thats why i keep asking the question on what is rich, under the Obama Administration 150,000 single and 250,000 for couple. People need to understand that and this is 200,000. One of the things that was interesting, when they looked at all of democrats that said what are you in favor of, about 60 of democrats say, favor of big plans that cost a lot that probably dont get implemented and only 40 of democrats say we would like to see smaller plans and have chance of getting implemented, remember, this is just september, theres a long time for polls to churn, we see this every cycle, someone seems to be having a lot of energy and we may see that reverse, more realistically democrats have to get into the 40 group for them to say, hey, what can we actually get done versus whats fund. Dagen 180 Million People will lose private insurance under her plan and the bureaucrats and politicians get to decide what kind of health care you get. Maria same plan as bernies plan. Dagen her plan is bernies plan. Maria exactly, we will take break, kfc satisfies cravings both chicken and doughnuts, back in a minute. Well. If you run a business, it means a lot. 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Cheryl exit polls shows that the israelis prime ministers party is falling short of securing majority, netanyahu the longest serving leader in israeli history, netanyahu formed coalition this year, results expected later today, if we get more news, of course, we will bring it to you, back here at home major democratic donor ed buck arrested and operating drug house, authorities took into custody after apparent overdoes as West Hollywood last week, now the victims survived but buck faced public scrutiny, 18 months apart inside of home, he was not charged in those cases, bucks attorney so far has not yet commented. Well, the united auto worker strikes against General Motors entering day 3 as they are perceiving new contract, the american automaker with benefits of workers that walk off the job and they will find out for corporate plans, according to wall street journal gm and the union are crashing over the use of temporary workers, maria, obviously this continues to get headed and bob nardelli made great comments about it. Maria cheryl, thank you, when we come back Federal Reserve, key Interest Rate decision today, we are looking at lower opening for broader averages so far and former Trump Campaign Corey Lewandowski and the Fiery Exchange coming up this is the family who wanted to connect. To go where they could explore and experience adventure in unexpected places. Who were inspired by different cultures and found that the past can create new memories. Leading them to discover were woven together by the moments we share. 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Maria welcome back, futures pointing to lower open for broader averages, investors are paying close attention to Federal Reserve today, expected to cut Interest Rates again, we will know at 2 15 p. M. Eastern today, we are expecting 25 basis point cut, joining us right now Vantage Point Investment Advisers llc, chief investment officer, wayne, wayne, good to see you, you are in camp of 25 basis point cut, what is that going to do to the economy and how do you expect markets will react . I think that weve seen him talk little bit earlier this year about being data dependent, i think he will remove the language today because i think that they have gone from looking backwards to now point of anticipating whats going on in the future, so change in the commentary, i think that might disappoint investors a little bit there. Its interesting this week if you look at the fed fund futures, 90 and thats worked its way almost 50 , reflection of the better Economic Data that we have seen, whether its been in the manufacturing numbers, the retail sales number, better jobs numbers, do you think as we get closer to decision people pull back their bets. I think its all of those, i think that we had an uptick in the economy that people werent anticipating in the last month or so and so i think thats also being reflected in treasury securities when weve had backup again, big rally we had in july and Consumer Confidence is higher and i think Investor Confidence is better as well. Yesterdays production caught everybody by surprise, thats one thing you can point out in general that could say manufacturing and its slowing, if you take the 3 months average and compare the 3 months before that, significant increase of manufacturing, its pretty broad a cross the board, i think thats a good sign, what we were concerned is manufacturing and not the consumer, you think that bodes well for next year . Once again a reason why domestically you want to be focused on equities, i dont think you are seeing the same trend outside of the United States but certainly here you are seeing and bode well for Earnings Growth next year and some of the areas that have been probably underonned underowned because of slowdown. When you say people were surprised that the economy was doing well, why were they surprised . I think month after month we were preparing for slowing economy based on trade and things coming out of europe and all of a sudden the consumer, again underpins everything that we have been doing and spending, reflective of higher employment rate and the fact that wages continue to be okay. Dagen the economy is slowing and Business Investment slip in secondquarter report, the economy was slower in Second Quarter than First Quarter and manufacturing job growth has been slowing all year and quite a bit slower than a year ago. Right . Well, i think youve seen that in that segment certainly but i think that the area that really is important are those that touch the consumer itself and, you know, with 70 of our economy really focused on consumer based goods and services, you really have seen that area do much better than maria what are you expecting for earnings, one big catalyst and start focusing on thirdquarter earnings . I think theyll be somewhat disappointing, i think you could actually see a year over year negative growth rate but i think whats important is the trend in the Fourth Quarter probably going to be positive so Third Quarter and Fourth Quarter year over year will get better. Anything that you want to say about fedex this morning, the stock is down 11 plunging after the company cut its profit outlook for the year . Yeah. Maria earnings missed estimate, they are blaming u. S. China trade, im wonder if youre expecting other transportationlike companies to preannounce. You said the Fourth Quarter will be good, though . Yeah, i think Fourth Quarter estimates are up 4 year over year. Maria okay. I think that that is a really good start compared to where Third Quarter earnings will be which is flat to slightly down, i think anybody who has exposure outside of the United States in transportation or anywhere else is going to be suffering little bit, reflective of the slower economies outside of in europe or asia. Maria sounds like youre predominantly worried about the slowdown going on in the u. S. And you feel like the u. S. Is doing well . Yeah, u. S. Is the place to be, outside of the europe you have to be cautious right now. Dagen were you worried about disruption and shortterm lending market for Financial Institutions yesterday where rates spiked suddenly to 10 and the fed had to intervene for the First Time Since the financial crisis . For 10 years. Dagen how do you read that . Thats act the liquidity in the Banking System right now, i dont think its a real issue, i dont look at it the same way as we did in 2009. Dagen you think . Baby jesus. [laughter] i dont mean to laugh but i think it was eye times that the fed is trying to reduce budget and Balance Sheet there but at the same time they have some other things that are going on outside the Banking System that i think insulates because financing today is not as dependent on the Banking System today, private capital does a lot more of that and im not that concerned about the situation yesterday and today. Maria fox business will have pleat coverage of the Federal Reserves decision at 2 00 p. M. Eastern followed by jay powells conference, join us live of that coverage as we learn the fate of rates, fireworks in capitol hill, former Campaign Manager Corey Lewandowski facing lawmakers, Fiery Exchange coming up. New sandwich will satisfy sweet and savory cravings, we are taking a look, back in a minute. [upbeat action music] pilot were going to be on the tarmac for another 45 minutes or so. Audreys on it. Eating right and staying active . 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Lower a1c and lower risk of a fatal heart attack . On it. With jardiance. Ask your doctor about jardiance. On it. With jardiance. Problems. Nobody likes problems. But why is that . At ibm, problems actually inspire us, to fix things, to change things, to push the world forward. Which is why so many people who dare to take on problems work with ibm. Maria wednesday september 18th, top stories 6 30 a. M. On the east coast, countdown mode on the Federal Reserves decision, futures edging lower as investors wait on central decision, we are all expecting a quarter rate cut from jay powell and company, powell will give a press conference, markets edge higher as Oil Prices Pull back from the t15 rally on monday, dow closes up 33 points and nasdaq up 32, Global Markets this morning look like this and we have gains across the board in europe this morning, fractional move in uk, cac quarante up in paris by 8 and dax index 16, in asia overnight mix performances, shanghai composite in china up. If youre in market of new car we have ideas for you, the kelly blue book out with list of favorite vehicles, we will tell you which model top it is list, you will want to see this. Kfcs new sand witch has something for everything, chicken sandwich on doughnut instead of a bun, we will take a look at that, all the stories coming up wednesday morning, first top story this half an hour, lewandowski fiery testimony, testified in front of House Judiciary Committee yesterday of russia interference, watch this. Ranges across nearly every committee originally every investigation of the administration. The president is falsely accused with colluding, jim comey, when we deposed him at the very table said after 10 months of investigation we didnt have a thing. Bob mueller gets named special counsel, he wastes 30 million of taxpayer money and he sat at the sable a few weeks table a few weeks ago and dont care. You chickened out. You put the message in your safe, in your home for safekeeping, correct, before you went on vacation . I took the kids to the beach, thats more of a priority. If you would like to ask you im going to continue this is house judiciary the fake russia collusion narrative is a greatest crime committed against the American People and our generation, if not ever. This is a president who is dually elected by the American People and members of certain bodies refuse to accept those election results. Yeah, joining us right now florida congressman Veterans Affairs and House Oversight committee member, congressman greet see you this morning. Thank you. Maria what is going on with the hearing, what are we learning from Corey Lewandowski being questioned and when are we going to hear from Michael Horowitz . First of all, we didnt learn anything that we didnt already know and many on the republican side is why are we going through the exercise, mueller spent 22 months investigating the collusionrussia Conspiracy Theory and found no collusion and now democrats will bring in Corey Lewandowski who was Campaign Manager at the time because democrats all they can talk about is impeachment, thats policy perspective and the party of impeachment, so i dont think im looking forward to the igs report coming out, ive been told that its complete, the Justice Department is going through it to learn what needs to be redacted from a classified standpoint, so hopefully we will get that report very soon. Maria okay, what are you going to do about it. Your colleagues on the left are probably going to ignore the report, i mean, what are you going to do about it, you know abuse that has taken place here, we have the fisa documents investigate thats ongoing, gop lawmakers are waiting on the doj Inspector General report on the origins of the russia investigation, but we pretty much know what its going the say, chairman Lindsey Graham weighed in on hannity last night, here is what he said. Here is what i i want you to know every american should be concerned about the fact that the department of justice and the fbi knew that the source of the document had a bias and they did nothing to ensure the document was reliable, if not reliable to this day and if the court doesnt clear this up and take corrective action, then why do you expect people in the future to be deterred. If somebody doesnt go to jail and if the court doesnt hold those who lied to the court accountable, then we will have missed a great opportunity to restore the rule of law. Maria well, restore truth, i mean, the Inspector General Michael Horowitz will testify on capitol hill today, what are we going to learn, is he going to be asked about the fisa failures and the fraud committed at the fisa court like not including evidence to the fisa court with that dossier . Im sure republicans will ask him that but because the document and the investigation is not public yet we probably wont learn the details of that and probably refrain from getting into the details of until the report is public but thank god for ag barr and ag barr is in the Justice Department because if there were crimes committed i feel very strongly that hes going to prosecute those crimes and i think the American People deserve to see what truly happened here, what precipitated all of this, a narrative by the democrats from a, you know, fisa abuse of a phoney dossier and thats where we got to where we went today. Maria once again Hillary Clinton and the clinton machine running the world, governor, it was her that was actually colluding with the russians, she paid for the dossier. Absolutely, congressman, at some point we all want to believe, this is Mike Huckabee i think that we all want to believe that this will get sorted out and theres going to be some accountability on the part of the people on the Obama Administration who are actually in power at the time of the russian interference was going on, donald trump was candidate, he was a private citizen, so why are we asking him to be accountable for something when he was not in government and the people who were in government are basically getting off the hook, do you have any hope and confidence we will get to the right people and hole them accountable . And thats a great point, it was brought up in the hearing by republicans was the Trump Campaign ever advised of the fact that the Obama Administration knew that russians were trying to meddle in the campaign, they knew, and you cant help but think that all the way up to the top the president knew what was going on and they fail today advise the Trump Campaign that this type of thing was going on and the bad actors were out there trying to influence it, they we wanted to set the whole thing up and put it in a perspective that if trump won they can investigate him and create the whole collusion narrative that he was colluding with the russian government and he was not, so im hopeful that ag barr will bring people to justice if there were crimes committed. In terms of casting, though, the democratcontrolled Committee First it was bob mueller disaster that didnt deliver results and t you say theyre going to get one over oncory lewandowski. Hes a pit bull and dragged you over the carpet, so to speak. No conspiring with the russian government and that was a fact. Congressman, you go out to the public and talk to constituents, how many come to you and say congressman, im concerned about donald trump colluding with the russians, donald trump somehow making a disaster out of racism, im just curious but you talk to your constituents, how orch does that come often does that come up from voters in the district . I talked about that yesterday and we just got back from our 6week break over the august recess and i was large district in state of florida and not a single floridans, not even a single democrat came up to me talked about impeaching the president , its not on the minds of floridans, its not on the lives of americans, they want to solve real issues, crisis on the border, solving real issues affecting their lives, they could care less about impeachment narrative. Dagen conservativ are mad outhe debt and the deficit, i will tell you that. Absolutely. Dagen a lot of time in my hometown in the district which i grew up which is blue and red and everybody is very concerned about that, governor. [laughter] they know republicans cant fix it by themselves as long as you have democrats running the house. U cant blame republicans for all of that. One thing we saw yesterday that democrats are fishing in the dead sea, chartering boats fishing in the dead sea and theres nothing there and they will come up empty and gods gift for President Trump reelection next year. Maria all the plans on the left, congressman, what are you seeing in terms of people moving to florida, this week we had carl icahn, the tax plans on the left are only going get worse in terms of if Elizabeth Warren gets in or Bernie Sanders raise taxes. A thousand people of day move to florida, we dont have income tax in florida and thats why a lot of people up north that move not just weather but Political Climate and florida is great place not just retire but start your business and to reside, so youll continue to see people move here and i think we pick up a couple of congressional seats because of all the people moving to florida. Maria good to see you. Dagen they are liberal and they will vote blue. I dont know. Maria try to push for a different policy like what we are seeing a little in texas. Not in my side of the state, the people moving to my side of the state are mid westerners that are conservative. Maria great, good to see you, thank you. Maria coming up in the market for new car, kelly blue book top pick coming up, kfc sweet and savory play, the new male meal might leave you speechless, coming back up in a minute. This is the age of expression. Everyone has something to say. 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All right, facebook is launching a content Oversight Board but the power to overrule ceo mark zuckerberg, the board will be type of Supreme Court basically that review content to the social media giant and decide if it needs to be taken down, zuckerberg issued the statement saying boards decision will be finding even i or at facebook decision agrees with that. Then theres this, maria, standby for this, kfc taking the chicken sandwich war to crazy quite possibly disgusting new level, this is the Kentucky Fried Chicken with glazed donut, why you ask, why not, anybody, only available in richmond, virginia, 40 Different Stores and also in pittsburgh, standby, could go nationwide, why not put a couple of doughnuts between chicken and vice versa and call your cardiologist. [laughter] maria how about a heart attack. Cheryl people on social media are funny about this, saying are they trying to kill me, oh, my god, road trip to virginia. Maria that doesnt go together doughnuts and chicken. No, it does not go together. [laughter] its just wrong, theres something incredibly, somebody was highly intoxicated when they came up with this in the middle of the night and went to marketing people who were also highly intoxicated and the result is this. Thats what we are dealing with. Dagen no, its no dealing with chicken and waffles. No, no. Dagen the sweet and the salty Fried Chicken, my grandmother ran Fried Chicken and doughnut household and certainly this was tried. Maria really . Dagen yeah. Coconut cake maybe but Fried Chicken and doughnuts, those were always on the counter. Knock yourself out, dagen. Dagen im a vegan. Ris. Maria bracing for wild weather, heavy rain and flooding, all the details after this, looking for a new car you say, kelly blue book, back here. Devices are like doorways that could allow hackers into your home. And like all doors, theyre safer when locked. Thats why you need xfinity xfi. With the xfi gateway, devices connected to your homes wifi are protected. Which helps keep people outside from accessing your passwords, credit cards and cameras. And people inside from accidentally visiting sites that arent secure. And if someone trys well let you know. Xfi advanced security. If its connected, its protected. Call, click, or visit a store today. Maria welcome back, if youre looking to buy a new car 2020 just around the corner, releasing 2019 models to make room for latest fleet, kelly blue book publisher carl, thank you so much for joining us. Great to be on with you guys. Maria what are you looking at and what are your favorites . What should we be aware of for 2020 models . Sure, well, youve got cars that are going away that are not going to be made anymore so these are some of the deals that you can get right now, maybe youre looking for Something Like an environmentally friendly car, chevy bolt, chevrolet will not make the bolt anymore, a lot of people are not happy about it because it was really an enjoyed car, people who bought the car loved it, had the electric range that it went over 50 miles before you needed the internal Combustion Engine and now theres a 4,000dollar rebait on the vehicle and starts around 33, so over 10 off right off the top, so if youre looking for, you know, highfield efficiency, low co2, low Carbon Footprint the bolt is a great car and you can get it before it goes away, similar with volkswagen beetle, its been around forever and now going away, another popular car but it doesnt make sense where everybody wants big suv and finally the ford taurus the best selling sedan in america, people arent buying sedans and we are losing the ford taurus, if you want one you can get them around before they are gone. You have the cars for 2020, you will not necessarily get great deal, hot new cars but exciting cars coming in for the first time in 2020, this includes the chevrolet corvette, new midengine design, highest performance corvette theyve ever had, amazing deal for around 60,000 starting price. And then youve got the Jeep Gladiator which is a jeep truck, jeep is popular right now, trucks are popular right now, so how much better can they get than a jeep truck, right . These are really capable and go off road and do Amazing Things and then theres a lot of suvs like kia, suv starts at 32,000 give or take and really well equipped, highvalue car from kia. Dagen the toyota super jumps out at you, doesnt it . The super is an amang vehicle, its great to see them name back, very well received, ive driven it, a lot of people are not happy because its got a lot of bmw underpinnings, yeah maria that sounds good. [laughter] yes. The Jeep Gladiators are making a lot of noise, this is coming back out with the wrangler pickup truck conversion and looks like that im surprised thats number 3, im surprised thats not number 1, did you have a chance to drive that one . I have driven it, amazing vehicle, very popular, very capable, you know, whats great about the jeep now the wrangler and the gladiator is that they are just as capable if not more so off road but they are almost like crv or on road, they have friendly on road, and allows to hit both extremes than they ever have, very functional vehicle even if you arent doing off road activities. Maria any impact of the uaw strike against gm affecting the Auto Industry . I mean, now we are seeing day 3 of the of the striking workers, do you think that this is going to have big impact in terms of production for 2020 models . You know, maria, its a great question because i feel like gelot offed a really good benefits package in terms of medical and in terms of increased investment for the potential battery and ev production at lordstown plant, they were going to invest 7 billion to get 5400 jobs brought back even though they are closing other plants. Theyve come to the table and offered up a lot of details on what they are offering because they feel its a good deal and when people see it they are going to agree but there was i think this was almost like a required strike because of the corruption at the top of the uaw, a lot of the ranking file members were feeling unhappy about whether they were really looking out for them, so i think uaw almost felt compel today strike, they were going to strike no matter what, now on what it takes to resolve it, whether a lot of theater or bargaining ready to be done on uaw side. Maria auto sales worldwide will take a hit this year, down by 3 , whats your take in terms of business over the next year . I think its likely we will see some contraction but i also think like so many things in our economy its riding on the china tariff situation, if we get confidence back in the markets and the tariffs are resolved one way or another in relatively short time i think we could still see really strong and at least solid and not contraction in auto sales especially in the u. S. Globally we might see that no matter what because it seems like we are in a cycle and there might be some pullback globally, but i think the u. S. Is still capable of maintaining fairly high rate if the tariffs are resolved. Maria all right, great to have you on the show, thanks so much. Thank you. Maria carl broward joining us there, sixth time super bowl Champ Tom Brady on fox business, mornings with maria. At fidelity, we believe your money should always be working harder. 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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 welcome back. Good wednesday morning, everybody. Thanks so much for joining us. Im maria bartiromo. It is wednesday, september 18. Your top stories right now, 7 0. Were focused on the Federal Reserve. The Rate Decision coming at 2 0. The expectation is for a quarter point cut from the fed. We will also be focused on the feds language when jay powell gives that News Conference today. Beginning at 2 30 p. M. Eastern. Saudi arabia oilfield attack continues in the news, iran is blaming the United States for rising tensions in the middle east. This as the saudi kingdom announcing it is expecting you Oil Production to return to nor l mall levels by the end of the month and it will move forward with the aramco ipo. Markets this morning are edging lower. Take a look at futures, a decline of 20 points on dow industrials out of the gate, s p down 3 and nasdaq down 9. We are waiting on the Central Bank Decision. Investors are cautious ahead of it. Markets edged higher as Oil Prices Pulled back from the 15 gain on monday. Dow industrials at at the close up 34 points, the s pes was up 7, and nasdaq 32. Global markets look like this, they are higher across the board in europe, fq100 is up 3 points shall cac in paris up 10, and dax in germany up 14. U. K. , Consumer Prices growing slower than expected in the month of august. Weve got Economic Data out this morning, up 1. 7 year over year on Consumer Prices. In asia overnight, mixed performances. As you see, fractional moves across the board. There is a triple threat of storms this morning, a tenth storm just named in the atlantic as the hurricane brushes by better new you da an bermudad a Tropical Storm storm hits texas. Stocks on the move, like fed ex down 11 . Joining us to break it down, Dagen Mcdowell, art ho hogan and Mike Huckabee. Great to see everybody this morning. Great to be with you. Maria weve got a big show in terms of our guests this morning. The ceo of Delta Airlines is here, hes going to give us an update on business this morning and then the chairman and ceo of the Blackstone Group is here this morning. Oklahoma senator James Langford is with us and senior judicial analyst, judge andrew napolitano. Plus tom brady making a special appearance this morning. Dont miss a moment of it. Weve got a big two hours coming up. The top story this hour is the saudi arabia oilfield attacks. The iranian leaders are warning the u. S. Against any more attacks, following recent strikes on two Major Saudi Oil facilities. Iran is denying involvement. But secretary of state mike pompeo is set to arrive in saudi arabia today. Hes going to get a full assessment of what happened and governor, i dont know what you think in terms of whether or not were going to see further moves, more attacks. This is classic iran, though. They strike and then they say oh, you hit me, actually. This is amazing. Theyre in a world of hurt and theyre in trouble and theyre cornered and i think theyre scared to death the United States might take military action. I dont think we will but i think the saudis might and there are other sewn s uni nations mit look at this as a reason to go after iran. Maria markets are focused on the Federal Reserve. Which is meeting and well see a quarter point cut today. Its shocking that markets dont get that disjointed. Energy has been one of the lagging sectors in the s p 500 for the entire year. Weve got a one day pop. The commodity is plentiful in the world right now. Theres lots of inventory. Its all about the fed. What its really about is the better tone on u. S. China trade. It feels like were in a better place in september than we were in august. Heading into u. S. China trade talks in october. I think thats the main concern with the market. Maria we want to talk about that in a minute. Dagen, you mentioned one of the top stories in the journal this morning, the move in the repo market, the Federal Reserve stepping in to curve soaring shortterm borrowing costs. Dagen this is for Financial Institutions, repurchase market would have been about 2 . All of a sudden it went to 10 . There was a major dislocation in the market and the fed had to intervene and pump money into that part of the borrowing market. 53 billion yesterday and additional 75 billion expected to be injected today, the first time this happened since the financial crisis, since 2008. It was a bit unnerving. Its not the kind of loss of confidence that you saw, because what triggered it essentially back in 2008 is the reserve fund, this giant Money Market Fund broke the buck because it was holding commercial paper from lehman lowers after th broe bankruptcy. Im distilling it down. Its not the same kind of nervousness and lack of trust in the financial markets. This goes to the reduction in the Balance Sheet by the Federal Reserve, the Federal Reserve has been reducing it, not holding as much money on its Balance Sheet and it also has to do with the federal government bore h rowinl government borrowing more money. Expect jay powell to talk about this today and to talk about a more perm inep permanent part os playbook in terms of making sure this part of the lending market functions properly because yesterday it was not functioning. Can there wasnt a big disrn in the energy market, largely because the United States is Energy Independent. For all the democrats who are pushing for us to get out of fossil fuels, stop production, they need to take a good, long, hard look at this and realize that our economy is stable today in spite of what happened in the middle east because we dont depend upon whats going on in saudi arabia, that is an important factor in our stability right now. Maria it really is. Joining the conversation right now is former u. S. Ambassador to the united nations, mexico and the fil philippines, john negroponte. Your reaction to the fact that the us is independent in terms of energy, maybe thats one of the reasons that the attack did not cause more of a disruption. What do you want to see here in terms of the u. S. s response and react to what took place . Well, first of all, i think while we may be more Energy Independent and certainly have become a huge producer, an even larger producer of fossil fuel energy than we used to b a lot of our allies around the world depend on reliable supply of oil from the middle east. Japan, korea, india, other countries around the world. So what happens in the middle east is extremely important. I do think its a bit of a tinder box. I think weve got to be careful because if retaliatory action is taken, the question arises, where is the escalation going to stop . And its very easy for these countries to hurt each other. Look at how vulnerable the saudi facilities have been. So what id like to see happen is first of all, i think we need to establish very clearly as best we can what has happened and that may a take a little bit of time. Secondly, if there are ways of improving saudi arabias defensive capabilities, if theres some gap in the coverage here that allowed these attacks to be made, i think that needs to be filled as quickly as possible. And i would put a high priority on that. And lastly, i think we need to maybe try to promote a bit more diplomatic activity around these issues, possibly at the united nations, but lets study whats happened, talk these things through, improve defensive capabilities before we resort to some kind of retaliatory action that could lead to even further escalation. And again, i want to stress, i think that whatever else anybody says, the saudi even if iran is in a world of hurt as the governor correctly states, saudi arabias vulnerable. Dagen and ambassador, the u. S. Is in part vulnerable in terms of because if prices skyrocket, prices sky rock t et for u. S. Businesses and consumers and we do still import oil, in california for example, the refiners there i believe get a large part of their crude from that nation. Thats correct. I think the point would be, though, in the direst of straits and if we wanted to stop exporting oil, which i dont think we want to do, now that we went through such pains to resume exports of oil in recent years, then of course we would having close to selfsufficiency. But, yes, were very sensitive. Our economy is sensitive to International Oil prices. Maria let me switch gears, ask about the l elections in israel. Benjamin netanyahus political future is in doubt. What are you expecting here . Give us a sense of the u. S. Israeli relationship going into the results of this election. What do you think well see . We dont know. Apparently its leaving the country in even greater political possibly in greater Political Uncertainty than it was during the most recent election earlier this year. So i think well have to wait and see on that. As far as our relationship, i dont think theres any administration has that been a stronger friend of israel in recent years than the trump administration, and i have no reason to believe that that will not continue. Mr. Ambassador, speaking to that issue it seems like former defense minister liean will be holding the cards more than the voters depending how this thing goes, he cou tip the scales for benny gantz or netanyahu. Hes got to make the deal. It may be the people who end up losing will be the ultra orthodox that so far has been protected by bb. What would be your sense of how that changes the alignment within israel, should that happen . You know, governor, im not entirely certain, but its conceivably conceivably could have some implications with respect to the governments attitude towards the peace process, since mr. Netanyahu has probably been the hardest liner with regard to that subject in recent years. But again, i think theres still quite a bit of uncertainty surrounding the situation and i think its hard to tell at this point. Maria we will leave it there. P am bass r door, good to see ambassador, good to see you this morning. Thanks so much. Coming up, controversy around Supreme Court Justice Kavanaugh, the list of democrats calling for impeachment probe is growing following the New York Times article. And a tenth storm just named in the atlantic as a hurricane brushes by bermuda and a Tropical Storm hits texas. The forecast, next. Treasure, that is what you are. Youre my golden star. 1 in 4 of us millennials have debt we might die with. And most of that debt is actually from credit cards. Its just not right. But with sofi, you can get your credit cards right by consolidating your Credit Card Debt into one monthly payment. You can get your Interest Rate right by locking in a fixed low rate today. And you can get your money right. With sofi. Check your rate in 2 minutes or less. Get a nofee personal loan up to 100k. [upbeat action music] pilot were going to be on the tarmac for another 45 minutes or so. Maria welcome back. We now have a tenth storm of the season, Cheryl Casone with the details. A new name of that storm. Cheryl the names continue. This may not be a good thing for the southeastern coast of the u. S. , maria. Youve got a triple threat of storms happening. Tropical storm jerry formed in the atlantic, it could gain strength and become a hurricane later this week. Then youve got Tropical Storm emeelda which made landfall yesterday. Flash flooding a concern there. Were not done yet. Hurricane humberto is a cat 3 storm, set to just miss bermuda but heavy winds and rain today are expected on the island. Well, back here in new york, the state has become the first state in the country to ban the sale of flavored ecigarettes. Stores have two weeks to remove these products from shelves. Meanwhile, in india, the finance minister says production import, export and distribution of ecigarettes are now banned in that country. And then there is another measure of credit for lenders and borrowers to tell you about. Equifax is giving consumers the option to have information on their electric phone and cable bill payment used to determine whether a loan is approved for them. This move is in response to lenders that are asking for other forms of credit reporting. Its a couple of things here. First, its to find new bow borrowers. Banks are looking at this, other options, pieces of data for consumers. If they dont have a credit card history, they could maybe be a good candidate. I think if you have lights and Cable Television on, life is good. Maria thanks, cheryl. Coming up, controversy swirling around Supreme Court Justice Brett kavanaugh once again. The list of democrats calling for impeachment probe is growing following the New York Times report. Airlines under pressure, the aftermath of the saudi oil attacks, ill speak with the ceo of Delta Airlines, hell weigh in on global fuel fears, boeing troubles, the future of tech in travel. Back in a moment. Im going to live where the green grass grows. Watching my corn pop up in rows. Every night be tucked in close to you. Raise our kids where the good lords blessed. As a principal i can tell you this. When one student gets left behind, we all get left behind. This is a problem that affects each and every one of us. Together with ibm, we created a whole new kind of School Called ptech. Within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. You know whats going up today . My poster. Today, there are more than a hundred thousand ptech students around the world. Its a game changer. Have you lost weight . Ptech students around the world. 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. Everyone has something to say. But in a world full of talking, shouldnt somebody be listening . So. Lets talk. We are edward jones. With one Financial Advisor per office, were built for hearing whats important to you. One to one. Edward jones. Its time for investing to feel individual. Maria welcome back. Now, the Supreme Court Justice Brett kavanaugh, squad member Ayana Pressly and Kamala Harris are pushing for an impeachment inquiry, this after the New York Times report mentioning additional sex l wal sexualiscot allegations against kavanaugh. The integrity of the story is in question. Joining us now is analyst judge andrew napolitano. Quite the developments in the story. When congressman nadler who is chair of the House Judiciary Committee, the place where any impeachment inquiry would have to begin, was asked right after the New York Times piece came out, are you going to start another impeachment inquiry, he said dont you think we have enough on our hands. So hes already either counted noses or realizes that whatever theyre doing with President Trump, because they havent said whether or not its impeachment which is causing them a lot of constitutional issues, another story for another time, i dont think there is the political will even to commence an impeachment proceeding against Justice Kavanaugh. This could of course it would not be unprecedented. The last time it happened against a sitting Supreme Court justicer was 200 years ago. The question is not that this happened, because the evidence of this happening is so sketchy, the question is did ellie or mislead did he lie or Mislead Congress and did the fbi knowingly look the other way. That has caused a lot of very moderate senators to wonder what the heck is going on. Did the fbi do its job . Does Justice Kavanaugh have a claim against the New York Times . Now, ordinarily i would say abs absolutely not because hes a public person and the standard is so high. He would have to show that the times published something, knowing it was wrong or was wreckless. Maria they did, they published something and edited out a key piece of information so they did publish something and they knew it was wrong. Thats not the standard. The standard here would be were they reckless to take out the statement and the alleged victim has no recollection of this. According to the authors, that was in the piece they wrote. And the authors of the article are not two New York Times people summarizing somebody elses book, theyre summarizing their own book so theyre familiar with the evidence in this case. They sent it to the times. The piece that is published has those two sentences removed. Question, is the removal of those two lines reckless disregard for the truth . Maria yes, yes. It probably is. Maria the answer is yes. Now the he question is, would he want to go through with this, because if youre a plaintiff in a libel case, your entire history is exposed to scrutiny under oath. I dont think a sitting Supreme Court justice wants that. Whats happening to him is terrible, i agree with the president. But this is an effort to undermine the court. This is an effort to undermine his vote. This is an effort to maria thats what the president said. What do you think . I thinits i think its underme rule of law, the presumption of innocence and due process f we lose that, we lost the republic. We say every person has the resumption of presumption of innocence. Maria the democrats havent followed that since day one that President Trump came on the scene. They figured due process, forget about it, its trump, we dont care. The right to not be wiretapped for no reason, forget about it. Its trump. The presumption of innocence is relevant in a courtroom but in the rough and tumble politics, world for which you personally have lived, once youre tarnished, once the paint is on your skin, to a lot of the country they assume its true. To a lot of the country, Brett Kavanaugh is a monster, just because of what Christine Blasey ford said against him. His denials were more persuasive than her allegations. They want to go through this again with him. They want to say that 54 vote doesnt count because one of the five was him and he doesnt belong there in the first place. Thats the argument. The attack is ultimately on the constitution and our whole system. To a lot of people, the Supreme Court is just another political branch. Look, it doesnt have an an ar. Maria when did that happen, that people thought the Supreme Court is another branch . Because the country respects it. If they can undermine the respect, they can undermine the rule. Maria when did that happen . When did people start saying the Supreme Court was this political arm . I think it started maria the last two years . I think it started with the assault on robert bork. Thats when it became the most devastatingly political effort because clarence thomas, 54 would have changed things. Wait until Ruth Bader Ginsburg leaves the court. Maria theyre going to go nuts. It will make what they did to kavanaugh look like kindergarten. When the court began to make legislative decisions and they began to do what congress didnt have the guts to do, whether it was brown, board of education. They made many decisions that really were political decisions. I think that was the beginning of this and its become more and more brown versus board of education shows the Supreme Court can make a moral ruling that it can do the right thing when the political branches lack the courage and lack the will to do the right thing because theyre worried about getting voted out of office. Brown versus board of education is one of the greatest decisions in the history of the r court. The legislature had the guts to do it. The legislature should have, they didnt, the court interseeped and becam intervd and became a legislative would city. Dagen this is what the democrats do when they dont get their way. They lost the election, they want to he get rid of the electoral college. There are conservative justices appointed under President Trump to the high court, they want to basically discredit the entire court. And they want to destroy america as we know it. Because its not shaping up the way that they wanted. Let me tell you an inside story. When Justice Ginsburg during the Campaign Said if donald trump gets elected im moving to canada, she was reprimanded by justice sotomayor, saying you are undermining im not he voting for trump, she says, but you are undermining the credibility of the court when you make a Public Statement like that and then she recanted the statement. Because the court is concerned with its legacy and its credibility because without either it is meaningless. Its just the opinions of the justice. Dagen Justice Scalia would have had a conversation with her. He would have. Maybe intervened from you know where. Maria great to see you. Were looking at jobs in america, glass door reveals the nations highest paying jobs. Weve got the list. Industry innovation, ill be speaking with the ceo of Delta Airlines, edward bastian, on how technology is transforming travel and his take on the boeing crisis, how delta is managing following the saudi oil attacks. Back in a moment. Looking to the sky to save me. 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This is why voya helps reach todays goals. All while helping you to and through retirement. Can you help with these . Were more of the plan, invest and protect kind of help. Voya. Helping you to and through retirement. Maria welcome back. Good wednesday morning, everybody. Thanks so much for joining us. Happy wednesday. Im maria bartiromo. It is wednesday, september 18th. Your top stories right now 7 31 a. M. On the east coast. Were focused on the Federal Reserve today, the Rate Decision is coming at 2 00 p. M. Eastern today. Were expecting a quarter point cut this afternoon. Futures are edging lower going into this meeting as we await the Central Bank Decision. Dow industrials down 28, s p down 4, nasdaq lower by 9 and a quarter. After the decision we will hear from jay powell in his News Conference at 23 0 2 30 this afternoon. Well focus on what he says, whether this is an extended period of lower rates. Markets edged higher yesterday, Oil Prices Pulled back from that 15 gain on monday and that helped stocks. Dow industrials at the close yesterday up 34 points, s p up 7, nasdaq up 32. Global markets look like this. European indices are higher across the board. Fq100 up 14, cac up 12, dax up 17. In the u. K. , Consumer Prices grew slower than connected in the month of august. They were off 1. 7 year over year. Weve got that Economic Data out this morning. Asia, mixed performances, fractional moves across the board overnight in asia. Ed fed ex delivered a warning, the stock is down, the shipping giant cut the profit forecast citing trade tensions and the loss of the amazon business. Stock is down 10 andahalf percent on fed ex right now. That obviously will impact the dow transportation average. Streaming wars, big money being spent to secure rights to popular old shows. The details there as the war deepens. Where to get the big paycheck, a new report reveals the highest paying gobbles and the companies that jobs and the companies that will pay out. Find out what tops the list. Our top story this half hour, industries are reacting to this weekends attack on saudi oil industries. American, united and delta on the rebound. Questions remain over how the attacks will affect the consumer. Joining me right now is the ceo of Delta Airlines, edward bastian. Its great to see you. Thank you for joining us. Whats your reaction to what took place in terms of all of that Oil Production being shut down and i guess in your last call you had said that unit cost exfuel growth was moderate. Does this change in terms of does this change the game in terms of the expense thats the company is i think its premature to say. We already see Oil Prices Trading down significantly. Saw you dis talked about saudis talked about bringing the capacity back up by the end of the month. I think the Oil Markets Oil today is in the 65 range. Its been trading between 60, 70, 75 for the last couple of years. Its a he very comfortable range for us weve got a great Business Model to adapt to that. Mariatell me. Maria tell me abe Business Model and wherefore the growth comes from right now. Youve managed to stay on top. Its the best airline in terms of quality, youre investing billions of dollars in technology. How do you characterize growth and where it comes from the next couple hell years . Its fascinating. People think about the Airline Industry as being relatively mature, almost an industrial part of the transportation index. Yet what we see with our customers, people are traveling at record levels. We went through the past summer the busiest summer in our history. Top line revenues are up 7 yeartodate. That has been a trend for the last couple of years. The fortune 100, we are in the top 25 of fortune 100 Growth Companies for the last two years running. People are not only enjoying travel, enjoying the experience. I think technology is making people more aware of places to go, opportunities to see, whether they want that snapshot for their Instagram Account or they want to see something, the kids have told them where they should go. The other thing thats fueling the rise is prices are have never been more affordable. We think about over the last 25 years, real ticket prices are down 40 including fees to travel. Maria why . Because of all the capacity thats been brought into the market and really you see the final step of the deregulation of the Airline Industry that started in the 1980s has worked itself through now and travel people are traveling in record numbers. I never step foot on an airplane until i was 25 years old. Maria theres a long runway in terms of people who have not stepped on an airplane even still when you look across the world. You said geographies away from the u. S. Are slowing. What can you tell us in terms of the economic backdrop right now, compare the u. S. To other geographies and where are you seeing the growth. The u. S. Consumer is healthy. You see that in a number of other industries. The u. S. Consumer is 70 of the u. S. Economy. Our u. S. Business is up somewhere between 6 and 8 year over year. Internationally, its a little more theres cracks showing certainly in asia as weve talked about. The impact of the tariffs. Not that its impacted travel to a significant extent for our consumers. Its really hurt a lot of industries, the automotives, the heavy manufacturers that have businesses in japan and china. They cut back some of their corp. He bretcorporate spend. Brexit is a wild card. We have an optimistic view. Latin america, south america is going gang busters. Weve seen some really nice growth there. So internationals about a third of our total mix. Were still heavily levered to the u. S. Consumer and the u. S. Consumer is healthy. Maria today, we have fed ex warning that earnings will be under pressure. Partly because of the loss of the amazon business but also partly because of the trade situation, this fight with the us and china. Has that impacted your business . Not in a meaningful way. Our revenues to china are about 3 of our total revenues. So its a relatively small piece of our business. Maria you are investing more than 12 billion in renovating hubs at laguardia, Salt Lake City, youre investing the coach flying experience, free meals on trans continental flights. Tell me where youre going with this and where you are in this investment cycle in terms of instituting new technology as well. Weve been investing for a number of years. The First Investment was reliability of the airline and the performance levels are the best in the industry. Our people are the very best. They deliver Incredible Service to our customers. What thats enabled us now is to invest those profits that were making back into product, back into new fleet, back into airport technology, back into our digital evolution that were making as a company. That were putting better tools in the hands of our customers as well as our employees to manage their own experience. Youre going to see the new Laguardia Airport starting to turn on in phases over the next several years. In fact, next month ill be with the governor, opening our first concourse, concourse g at laguardia. Weve got the new lax terminal coming out of the ground. Salt lake city, a brandnew airport. The investments weve made a for the last decade is whats fueling our opportunity to succeed and whats happening for delta is that Great Service is turning into a Premium Service and premium revenues for the company. We have on average, well get about a 20 premium relative to our peers in the u. S. Industry on tickets and were continuing to reinvest that and keep that fly wheel spending. Maria and interesting, laguardia really needs it. Absolutely. Maria we welcome that. Thats for sure. Youre also rolling out facial Recognition Technology in certain hubs, in atlanta, minneapolis, Salt Lake City and detroit. And improving the checkin process. But most recently you brought the technology to lax as well. Last week. Theres a lot of controversy around this, San Francisco banned the use of facial technology, china is tracking its citizens. How do you use facial recognition without impeding on peoples privacy . Well, first of all, facial for us is designed to enhance the experience for customers going through security and boarding a plane. Maria it is convenient. Today, through facial, you do not need to pull out your passport, you dont need to look for your ticket. When you step out of the car, the curb, you can go directly onboard our International Service without showing a piece of paper. So its very, very efficient. On the other hand, were we understand those concerns. Its an optin process, consumers do not have to go through. We have the traditional process that customers can always go if they are concerned around facial. And the question really for us is youve got a tsa agent comparing a picture on your passport to a picture of you on their screen or youre doing that through technology. Delta maria thats a good point. Delta does not retain those images. Thats all the government anyway. Were as concerned with the safety of our customers and the privacy of our customers as anyone and were going to make sure we tread carefully in this space. Maria you did not buy the boeing 737 max8 aircraft, you do not fly that aircraft. Was that just lucky . It had nothing to do with sometimes in life you would rather be luck ethan smart. We have lucky than smart. We have enormous respect for boeing. Were cheering for that to be in the sky soon. We went with the airbus product. Theres a lot of demand for the product we already had because we had the planes to serve customers this summer. Maria do you feel any retaliation as a result of this tariff situation going on with china . Now theres some expectation that maybe the president will do tariffs on european imports because of the subsidies on air a bus. Well, thats been going on for 15 years with the world trade oranization, the dispute between airbus and boeing. I dont know thats going to be resolved anytime soon but we do watch it. I think were concerned as an industry if we start seeing tariffs being placed on european airplanes. Theres no questio europeans are going to place tariffs on the u. S. Airplanes, all of which means theres going to be higher ticket prices for u. S. Consumers many i dont think thats good for travel, trade or comes percent. Maria for sure. Youre not worried about the saudi Oil Situation because oils has already begun to stabilize. Youre not worried about the tariff situation because it hasnt impacted you yet. Okay. You are also announcing this morning, youll be the First Airline to be the keynote presenter at the 2020 Consumer Electronics show, youll be presenting the future of air travel. This is good stuff. The Consumer Electronics show was all about the auto sector in the last couple of years. Tell me what its going to look like with you as the keynote. Were excited. Our theme is going to be putting the c back in cs, putting the consumer back in the electronics and technology. Cs is the premier Technology Conference in the world, were excited to be in vegas. Well have a lot of information in terms of the you future of travel, everything from the ground experience with the airport innovation were headaching theadache making , to the air experience, were starting to fly into the skies, technology with respect to the delta app, all the way through some really Interesting Partnership thats well be unveiling in the next few months. Were excited about it. Its an interesting time to be in this business. I was saying earlier in the travel business, with all the devie sevennesdivisiveness in tu would expect travel is something people would pull away from, but its just the opposite. People are more aware, more curious, more adventure than ever before. I think as the best performing airline in a growing sector, were well positioned for the future. Thats going to fuel innovation thats well be talking about. Maria are there any cracks you see on the horizon in terms of the Global Economic backdrop . Obviously you know with rates where they are, the recession conversation has picked up. Do you see a recession on the horizon . We dont. We dont. We watch the same information that everyones looking for. I think theres caution that we dont talk ourselves into a recession because were so cautious about when the next shoe will drop. But as i said, the Consumer Spending that we saw this summer was gang busters. Its moving into the fall. I think the Holiday Season is going to be very busy, very active for travel and going into 2020, were you bullish. Maria terrific. Edward, great to have you. Thanks for having me. Maria thanks so much. Hed bastian, the ceo of Delta Airlines. Coming up, the streaming wars, the field getting more crowded as shows get a new home. Well tell you where to find them. Americas workforce, glass door unveils the nations highest paying jobs, weve got the list. Back in a minute. Need a little time to wake up, wake up. dramatic orchestra performance comes in lots of flavors. Theres the ampedup, overtuned, feedingfrenzyof sheetmetalkind. And then theres performance that just leaves you feeling better as a result. Thats the kind lincolns about. 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. Se datto 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 welcome back. A car slams into a trump plaza in new york. Cheryl casone with details. Cheryl maria, a black mercedes plowed into the lobby of the trump plaza last night. Witnesses say the driver got out of his car, took a seat on a sofa, and didnt say anything. Police say the crash is being investigated. But does not you appear to be intentional. Two people walked away but they did suffer some minor injuries from all of this. Well, President Trump versus california. The fight heating up over auto emissions. The environmental pro agent techs agency is expected to revoke californias right to set air pollution standards. This decision will almost certainly set the stage for a Lengthy Court battle. The California Attorney general said the state is prepared to sue. 13 other states are following in californias lead on this. Finally, if you are looking for a high paying job, listen to your mother. Because being a doctor, way to go, folks, glass doors annual survey, the 25 highest paying jobs in america is out. Doctors still on top. Physicians top the list of best paying jobs, average annual sally, 193,000. Thats followed by pharmacy manager, dentist, pharmacist, and then enterprise architect. One thing the healthcare jobs all have in common, they require sigcant amount of education. That can get expensive. Medical students at the end of 2017 had average Student Loan Debt portfolio, 197,000. Get your medical license and give in your parents house for a few years to pay off your debt. Maria coming up, streaming wars are heating up, the field getting more crowded lik while e office and saved by the bell get a new home. Well tell you where to catch them. Six time super bowl Champ Tom Brady has a new business venture. Well take you inside his new gym and youll hear from him, back i in a minute. Welcome to the hotel california. Such a lovely place. Such a lovely place. Such a lovely face. Plenty of room 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 wag. The streaming battle hellfield gets more crowded in 2020 with a peacock ready to take on the old guard. Nbc names the new service after the longtime mascot. Deirdre bolton with all the details. We can be entertained forever now. The he peacock law launch, not e sure on the pricing. It will launch april 2020 p. Theres going to be parks and rec, the office, 30 rock. There will be a h a reboot of sd by the bell which for many fans who watched that show i think theyre enthusiastic about that. I want to mention as well, this huge deal especially because the lady on my left is a big fan of the big bang theory. The producers of that, 1 billion for all of this consistent p tent icontent is gx along with friends. That by the way, i should tell you, domestic streaming only. If somebody wants to pick that up for overseas rights, thats another pile of cash that can go to those producers. The streaming wars is heating up. Disney plus is coming online, thats sort of the familyfriendly entertainment. And thats coming online in november along with the apple streaming product. So many many choices out there and then hbo max seems to be focused more on i would just say the over 18 crowd for the most part, theyre sticking with their edgier content with a few exceptions, friends being one of them, big bang. I would be remiss if i didnt say netflix just picked up seinfeld yesterday for 500 million. Basically what you have is just this entire arms race almost between all these platforms, looking for the content that were addicted to and willing to pay some serious money. Maria who wins in all of this . Thats the question. There has been Market Research done saying consumers will only pay an extra 38. This is an average, but they say consumers are not going to run around and subscribe to every single one of these services. So people are really going to be a little bit pickier as to whether they keep netflix, if theyre going to be adding disney, if theyre going to be adding peacock. Thats why all of the platform are fighting so hard for the shows people are ad addicted to. 38 sound like not too bad, over the original cable, which people complain about. Maria i think disney wins. They certainly priced it right. Maria theyve got marvel, pixar, lucas and now fox. Dagen you get disney plus hulu and espn plus for 12. 99 a month which is great. They dont have to go out and buy a lot of content. I think thats the problem. Are we running out of marquee shows . Is there anything else that hasnt been taken in. Thats why youre seeing some of the reboots of the cult classics. There were a lot of people that liked saved by the bell, well do that. Even though the actors are now 20 years on, but theyll go forward all the same. Dagen side note, people on social media of lost their brains over the idea that the Princess Bride was going to get remade. Again, that was lets hope that doesnt happen. In the long term, how do you make money when youre spending that much money on the content . A billion dollars, 500 million, youre talking about some serious dough. Youve got to have a lot of subscribers. Im wondering, is there enough way to monetize that to make it work . I think thats the biggest question for netflix. You can have a big argument because netflix, theyre really spending, spending, spending, theyre quite leveraged to do so. Theyve taken on a lot of debt to be able to compete. Thats why a lot of people favor disney at this point because they have a lot of the content. Dagen if you pay for quality its okay. If you pay for garbage, its not. Maria thank you. Irans president says the u. S. Is to blame for escalating tensions with tehran, this comes as secretary of state mike pompeo prepares to meet facetoface with the crown prince in saudi today. Back in a minute. [upbeat action music] pilot were going to be on the tarmac for another 45 minutes or so. 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. Of the value youll find at fidelity. Your business is up and running, but is it going beyond fast . Comcast business gives you high speed internet. We also have Solutions Like powerful wifi that gives your entire business more coverage and automatic internet backup that can keep your business running. And it all starts with our gigspeed network. So give us 10 minutes. If we cant offer you faster speed or better savings than your current internet service, well give you 300 dollars for your time. Call now to get your comcast business 10 minute advantage. Comcast business. Beyond fast. Good wednesday mning tnks so snufrp for joining us. Im maria bartiromo. Wednesday, issue september 18 top stories right now 8 00 a. M. On the button on the east coast, we are in countdown mode for Federal Reserve meeting futures edging lower as investors await the Central Bank Decision we are expecting that the fed will lower Interest Rates by a quarter point, today, 2 00 we will be focused on jay powell commentary in press conference, happening 2 30 pm or an, what he says about the future. Markets are lower going into the number, down 40 points dow down 5 points s p down 20 on nasdaq, after markets edged higher yesterday Oil Prices Pulled back, from the 15 gain monday, as you see the dow industrials up 34 points the close yesterday the nasdaq up 32. Global markets this morning higher in europe european indices fractionally moving but are up with fhn 4u7 cac quarante up nine dax up 12, in uk Economic Data out Consumer Prices grew slower than expected in august up 1. 7 yearoveryear, in asia overnight, mixing performances you see fractional moving across the board fedex a warning this morning giant cut profit forecast trade tensions loss of amazons business the stock down 10 almost 11 right now, General Motors striking back the automaker stripping health care from workers as the walkout hits day three, we are taking you to detroit with a live report coming up, 6 time super bowl champion tom brady here tells us about latest business all those psychological up this wednesdays morning joining me to break it down Fox Business Network Dagen Mcdowell chief Market Strategy National Securities art hogan former republican president ial candidate arkansas governor Mike Huckabee what is on your mind. Tom brady on my mind getting nervous every time you say it what is going on in market amazing weve got a fed meeting massive rotation beginning of september from growth to value, we had oil, spike 15 yet the s p stock at 3,000 not going anywhere we have a very resilient market i think a lot has to do with fact the tone around u. S. China trade improved, month of september much better than month of august. Maria things are feeling better fed he is going to cut rates today what does that mean in terms of of where fed is a cycle . What to do you want to hear at 2 30 think. I think fed is trying to getting caught up with where they should have been not where they think she should bee probably raised one too many times december last year i think look at spread between yield twoyear yield and 10 year say we troll two year world continues 10 year that is just too close to each other the prevent inverted yield curve closer where traditional intaifrngs are i think exactly where you are going to bee after you hear jay powell Say Something should a sounds data dependent fed should be all the time fed should not be thinking about you insurance shouldnt be thinking bn autopilot some other, the fed should be data a dual mandate look at that appropriate place. Were going to take it you live te2 00 expecting quarter point cut press conference 2 30 join fox business then joining the conversation this morning chairman Ceo Blackstone Group here in studio with us this morning new england parts i star 6 same super bowl champion tom brady top story saudi oil attacking rouhani plainlying United States for tensions secretary of state pompeo attractived to saudi arabia pointing finger at iran, Saudi Arabia Energy millionaires says saudi kingdom will reward most oil supply by the end of the month joining me Senate Finance Homeland Security Appropriations Committee member James Langford a pleasure to see you. Good to be here. How did saudis miss this how did u. S. Miss this knowing money that has been allocated for defense spending . Well, one of the challenges they have is their facing south, to be able to look towards yemen assume attac from there not cross gulf air in straits to come straight from iran the key factor to come out we notify rains put mines on ships taken hostages individuals say will say will sorry on ships helped houthis in yemen to be about able to spark is a civil war on southern border funding hezbollah hamas, assad interesting to hear iraniansey americans fault the i Iranian Regime has been pushing against entire region. Is what kind of response could you like to see from United States from saidis at this point . We have got to begin with two things one that is we really need to be put pressure on the i Iranian Regime not on iranian people we dont have a beef with rainy people, there are lots of good folks, that are cap repetitives to own regime putting as much pressure as week on regime they have been the problem since 18979 on 1979 on entire regional we need a yuntdz front with the rest of the world europe waiving whether it is a problem iran is acting in terrorism all over regional europe macron specifically past couple weeks outspoken to see you they want to be able to help iran tome back to nuclear deal Nuclear Issue is not issue right now proliferation of terrorism around the regional weve got to have a united frontal to push back on that sanction additional pressure addition hes islation hope resolved military always there as backstop. Interesting yesterday president sonar Lindsey Graham backandforth on twitter president authorized strike on iran in response to downing of u. S. Surveillance drone in june called it off after he learned more about potential casualties, Lindsey Graham criticized trumps approach writing this measured response by President Donald Trump regarding shooting down of american drone was clearly seen by Iranian Regime as sign every weakness trump reapplied no lindsey a sign every strength that some people just dont understand, your reaction . I think it is a sign of strength, again, we have seen over and over again, iran is trying to provoke trying to engage with us, the bests thing we can do is continues to be able to is them pressure clearly pressure on iran is work aring at this point, they are trying to find some way, to be able to push back we need to continue isolate them the rest of the world has to admit what is obvious to americans that is iran is the major problem in the region, and to be able to come to the table to be able to is late them push them towards a resolution for their people the rest of the geological. Your role in Senate Finance economy you are up against deadline to avoid Government Shutdown members of the house expected to push a resolution to fund the government through november 21 what should be done senator when are you expecting, the congress to start roening in spending this process in place right after watergate worked four times the debt has gone from just a few billion, in 1974 to 22 trillion, now we literally have a process that doesnt work to we seed a couple things here one is that weve got to have a change in process, ares there are several of us pushing issue how can we get a Better Process on top of debt deficit to be able to, would on it second thing take Government Shutdowns off focus perpetual focus on gets to a deadline having government shut down doesnt work it waists additional money american taxpayers losses families workforce lose in that we should have intense debate on budge issues without the having to have Government Shutdowns in mix as well i have a bill, maggie a part of that bipartisan bill to say we get to end of fiscal years with not involved everybody has to stay in town there is is mandatory quorum calls week endz weekdays no one can travel cant move to other bills ear than appropriations, so locked into resolve that so we dont have have a shutdown, in federal he families not affecting. I think you make a really good point but at this point, what you have are your colleagues on the left saying we are not going to authorize any more money for defense, for National Security without allowing more spending elsewhere. And if not, the government shuts down why cant your side just say no, we cant continue this out of control spending . Is it well that is exactly the push that were trying pooeb able to push part of issue not only what you are seeing about defense democratic colleaguesr absolutely blocking increase in pay for admittedly that is what is in this bill, so we are trying to be able to o death increase to pay to those in military they are saying no, we are not going to do it unless we get other priorities other things, we are trying to be able to get that involved first things first should work on National Defense should be a given for all American People that is the foundation of our economy, about is a secure nation, and then our economy builds on top of that this should be a given. Maria should be a given, but but it is not. So what it is not you are rightly. Maria what to get this moving forward what is plan b. Plan b for us at this point continuing resolution to be able to continue on debate behind scenes until november 21 to be able to keep pushing it i continue to be able to push blocking Government Shutdowns forces us into a spot to skoblt debate try to get involved one great challenge of congress they get close to a deadline not so so they will do extension and walk a, say this will be six 8 uniques a couple months from now we have to get to a spot resolve it look at timelines for what they really are try to resolve it at that spot, in the meantime as well we have got to continues to be able to push back on every area as i mentioned before National Defense, lets get the issue resolved on our folks in mill and pay get issue resolved on the border, those should be straight forward. How are you getting anything done look what is going on on the left, in like the Judiciary Committee with jerry in a deer, et cetera, scomrer. Dagen nadler want to impeach kavanaugh,President Trump uggs u. S. In the balance borrowered hanging in the bam, youve got all these other issues, in terms of of iran north korea china, so i mean what do you see, towards lets say the next two men because once thanksgiving comes around things quiet down again, so are you able to get if i go done . Before for example the the canadian elections october 21 . One of the great priorities we have is what you mentioned usmca. That has to begin house of representatives the American People have put nancy pelosi in the chair only way to fix that is the American People, changing who is in chair based on next election that is happening, in the coming days, right now, weve got to be able to have this usmca agreement come up replacing nafta does nothing but help our economy, so this is not about President Trump getting a win as Washington Post put out a big editorial saying, give the president his win, on usmca. It is not giving President Trump a win it is giving the American People our businesses,our trading environment a win, right now the house of representatives, is saying they want to cut off all aid to farmers, at this same time they also, wont do the usmca. Just to try to hurt President Trump in election that is hurting people, nots hurtleing the president , so our focus is try to bring to light the issues of the house of representatives, doing right now for us to be able to continue to do right thing, get us into the room try to actually get things resolved. Maria all right senator good to have you on the program this morning thanks so much. Thanks. We will be watching, coming up General Motors striking back the automaker strips benefits from works on picket line walkout day three live to detroit with closer look fedex delivers a warning stock plummeting giant cut prst forecast letting trade sanctions in loss of sam zon business stock down 11 back in a moment right here. 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Get a nofee personal loan up to 100k. General motors in third day, each side trying to force the others hand to work out a deal grady joins us from detroit with the very latest good morning to you. Good morning, maria. Three days that means three days that no vehicles have been proud out of this plant or dozens across the country meanwhile, the pick eitherers picketing behind closed doors negotiations are still negotiating reports that some progress has been made as of yesterday they will get back to it today, one key issue in all of this has been health care, gm stopped making payments on striebing employees health care yesterday, forcing the union to step in and pay the tab, another issue has been temporary workers, can remain on line for years we are told there are a lot cheaper for gm than full time questions workers have issue with that so does representative ryan democratic president ial candidate stopped by picket line yesterday. You guys make 30 bucks an hour 60,000 dollars a year, i mean not like they are killing it they got a good solid job, and then working nex to somebody on the factory floor making 15 bucks an our a temporary worker five years. They come to work, daytoday, dont know if they have a job we need them to be permanent. I cant imagine working across from someone doing exact same job temporary employee to me not fair hurts a lot we are a family. Reporter in strike comes as Federal Reserve investigators look into current and former uaw officials accused of using member dues to life luxurious live swanky, golf outings they tell me they wont let that conversation and that investigation distract from negotiations, that are going on, but some people suggest, they are using the strike to distract from the probe try to win over neuromembers of the union, it is worth noting maria last strike in 2007, that only lasted two days this one is officially longer than that one. All right, grady thank you. We will be watching, in detroit this morning coming up blah beingstone Group Chairman ceo joins me here onset, to weigh in on china trade fed decision taxing wealthy new book dealing secretaries of state to success called what it takes coming up, 6 same super bowl champion tom brady unvais business adventure brandnew Fitness Center here from tom brady himself back in a minute. Take it from me girl, take it from me take it from me, girl, take it from me, girl, take Liberty Mutual customizes your Car Insurance so you only pay for what you need. I love you only pay for what you need. Liberty. Liberty. Liberty. Liberty. 2,000 fence posts. 900 acres. 48 bales. All before lunch, which we caught last saturday. We earn r 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. 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 . Here, hello starts so,with hi mple. Ge 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. Maria welcome back tom brady celebrating grabbed opening of tv 12 Fitness Center bovrn we got chance to speak with him jackie good morning. Good morning, to you maria i sure did, this is actually the second location for him the first one in fox borrow patriots play this one in boston kind of the expansion of the brand actually just outside not that far away where Boston Marathon ends a fitting location, but as you know, tom brady so successful, so iconic so good at what he does, and he will tell you it comes down to his regimen to his discipline, how he implements fitness deet we spoke to him last night about what it means to sort of bring this to other people, to regular people can have that experience, and why that is so important in his sport he is playing at 42 so many quarterbacks have been injured having surgeries, ely manning beached this is what tom said about why he is still on the field top of his game. Everything matters how you think matters how you eat matters how much you drink how much you sleep, how you work out, how you recovery, and i think when you add those things up the cumulative equity loud me to do something i still love to do which is playing football. Also interesting when you are expanding you really have to think about different price points of the products think about the competition out there, there are so many fitness products centers, all across the country, they want to expand to major cities in the United States new york l. A. Next they may even go internationally so i asked tom how is this different what is this going to give consumers and draw them into the door . Creating business, is providing people with, a lot of solutions i think there is so many graphing stories ive gotten back over last six years how we changed their life given them life back when they had not a lot of hope, you know didnt get to do things they love to do didnt excuse me play with kids, and, you know, see grandkids, i think people now are starting to realize, that you know what we provide here, has incredible value Incredible Service. People can just make small increment changes have a big impact on them you could subscribe to everything we do here really take a holistic approach to the nutrition hydration working out, or take bits and pieces toms perspective is you know find what works for you start making change, and you know you can see, his health is so important to him we talk about health being new wealth all the time. That was tom that was also ceo john burns charged with executing the business also the expansion, and what you can see is at core of it i was able to experience this today i took one of the group classes, i will tell you this i didnt finish the class it was hard but you can customize to your level of fitness doing modified pushups easing into it is there an ecommerce business here you can about buy the banned t plyability products do it at home while you travel, good in environment where people are always on the go, and working. But it was fun to have this experience, to see exactly what they are doing see how excited the participants were about it as well there are a lot of Different Levels you can do it tom does oneonone trainer the group class you can customize it for yourself. Maria awesome that is great looking great jackie thank you so much, at home amazing to me how much water he drinks. It is all water, that is his constantly all day long. Ounces of water for every time he weighs, 220 pounds has that many ounces of water day means skaenlt drinking water. Whole look is about. Do machines need to hydrate . Themselves . [laughter] that is a great gem i can look at that tell very series. I saw jackie rolling i dont know if preor post workout, rolling legs but i would go to that gym, way before i go to one of those bicycling gems, whee bysling makes legs fat. It is all very healthy all con strikeion your weight your resistance Capital Expenditure much more about you than what you you saw rollers, matters, down with side plank. All right quick break cooling up the chairman ceo of the Blackstone Group Steven Schwarzman here weighs in on hotbutton issues china trade fed decisions taxiing wealthy new book detailing his secrets to success called what it takes, shares of fedex falling ahead of homing cut profit forecast trade tensions loss of amazon business stoke down 11 we check it out when we come back. Stay with us. 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Strive for the Blackstone Group chairman ceo steves sw a new book titled what it takes lessons in pursuit of excellence from growing up in philadelphia to building blackstone into the Worlds Largest private equity firm he writes for me aggravate rewards in life have com someth unexpected, and impactful i am constantly in pursuit of excellence people ask how i succeed my basic answer is always see the same i see unique opportunity go for it with everything i have i never give up joining me right now is the blackstone chairman. Dagen Steven Schwarzman congratulations to you great to see you. Thanks, maria always great to be here. You are now, number six on amazon . Yeah, in a day. Pretty amazing, the book just came out yesterday, check it out because they see are real lessons for success, i love the fact that you built this incredible powerhouse in blackstone, 545 billion dollars in assets under management you talk about in the book coming from modest beginnings mowing lawn in daddys store philadelphia write about close calls brak monday you started firm Pete Peterson public 2007 before crash buying sam zel commercial real estate empire, tulz about close calls what do you think it does take, to achieve the success that you have . Well, a lot of close calls. And it sort of proves the point, that when something is there to be done, you better do it quickly we closed our first fund about the time we finished getting all the documents the friday before black monday. In 1987. And the person who was working with me, on that closing i ended up going in office probably every 10 minutes can we be done can we be done they ended up becoming a psycho therapist. Hilarious. Just by having that, if we hadnt closed a lot of people would have i think reneged, the next day. Markets were shake. Dagen you wanted to billion dollars you closed at 800 million. 8950 850 total they couldnt get money out once it closed lucky them the rest of the time at blackstone just went up and up and up after you got through that that black monday. Right that was very good for them. And weve had a lot of things, we went public right before, you know, sort of the credit cup crunch took down system Equity Office products biggest real estate deal ever in history. We bought roughly 40 billion dollars real estate the most ever bought was 10 billion in a year this was one transaction. 39 billion. Then, because we were so worried that we paid a high price, about but other people wanted to pay even more for individual properties, we ended up selling threequarters of it we he bought 40 billion roughly sold 30 billion within a month that is 70 billion dollars complete out of body experience. How many months before things completely fell apart . Um. Maria this was 2007. Yeah by the time we got all that done was about 4 or five months four months the credit crisis happened most of the people that we sold that 30 billion to, either went abrupt or got into enormous financial trouble, and that would have been us. If we werent conservative and worried, and the 10 we had left we made 3. 2 times monday, applying something at the wrong time if you will. Unbelievable. We knew there was risk at that point. Were you also a with a conservative approach in terms of yeah would you do big deals, but you wanted to manage it in a conservative way . I mean was that also a your approach . I have a simple. Wore wa. Warrior. There are no brave old people in finance, the reason they arent they get picked off destroyed, in their 30s, 40s, so for the rest of us survived longer it is because we worry a lot, we always expect thingsing to wrong, you have to plan on them, going wrong, most people basically assume because they made a decision it is going to go right it might go right, but what if it doesnt, you have to have in effect, what is your plan b . And do you action that, to protect what you have you may make less money, but you will always be safe. When you look at blackstone what was the driving approach to get you to this number in you look at details what were your most important best decisions . Well you know we raised 150billiondollar just in the last 12 months what were doing. Real estate opportunity in europe or the different one. This is the whole, 150 billion. And the way we get there is we had a philosophy from when we started, that you only do things you think are gng to be terrific and just dont do one thing, because in finance there are no patents so anything you can being can be replicated by somebody else, so you have to keep inventing new things we went into business, we started in m a business strategic plan, to go into buyout business then any other business that we thought would be fantastic at the right time, about and be easy way to make large money for investors but to do it we had to recruit somebody who was 10 on a scale of 10 could make magic happen and the business itself had to generate intellectual capital. That we could use in the rest of the other businesses to make them stronger, so in a way, we were one of the first data production interesting. Businesses we started in 19 1985 because knowledge is power in finance enabling you to see things other people cant see, you can being see patterns like we saw, approaching in real estate, at the top of that about cycle, we could see in housing. In 2006. It is the ability to see those patterns and get knowledge feet from others of our businesses so you can as you sit here today there saw lets avoid this, lets go here. Yeah, i want to ask you about that, what you see today, obviously, in all of that, and while you are talking about what you see, let me ask you about blackstone reportedly bid for bellagio mgm do you see growth in the casino a successor. I cant talk about some deal that is involved, so you know we are looking at that to real estate business. Maria okay, okay. So Real Estate Today i mean last time we spoke you talked about europe not generating any growth is there Real Estate Opportunities today in europe given that you did just close a fund there. Yeah europe actually is in very slow growing, you can see the Central Banks are struggling with when way do we go, how do we create growth. But but, you know, because people are quite negative on europe, we find there are a lot of opportunities because what we do is when we apply things that dont leave them the way they are we always try to improve them make them better, and, you know, is it Just Real Estate for example not only thing we do, you know. We do private equity, we do credit other things. That we can fix something up, and people will today more rent. And so with very low Interest Rate we can generate incremental cash flow from that asset we can make it very successful buts sometimes in life people have such negative views they dont want to do i go any thing. Maria right. We apparently have stunted emotional development, and we dont worry some way just look objectively how much can we improve something just did a very large deal actually, for real estate, on monday, buying five billion dollars of properties in a company in another country actual owned all the of this real estate in europe we think that will be a successful deal. Staph i want to ask more about decisions what isind them, also, about the issues of the day, i love in the book when you asked when you were on interview with doj you said why are you hiring somebody who doesnt have any relevant experience here . And the founder said to you well i have a hunch maybe you will be running the firm one day i know you didnt end up running that firm you did stay at lehman more with Steve Schwarzman with we come back the issues of the day with fed. Back i cann a minute. Its not pretty good or nothing. Its not acceptable or nothing. And its definitely not close enough or nothing. 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That is tough one everybody is a combination of you know, nature and nurture my dad was very smart, smarter than me he wasnt commercially aggressive but ambitious but very smart, my mother was was a life force i am sure would have been running a fortunate 500 company, so you know, you get that kind of mix, and my dad could always figure out what the weakness was, in any argument. And so when you are in a household, like that, with a good sense of humor all the too many, and a kind person, you learn that there is always a weakness, in every argument, you just have to find it and if you can plugt hole and take advantage of Positive Side more like my mom super aggressive, you put that together, you have a good balance. Going from the mowing the lawn to becoming adviser to the president of the free world pretty extraordinary i know that you are an indirect advisory to President Trump could the president do a deal with china you are familiar obviously, schwarzman fiscal ares in china spent a lot of time there can president do a deal separate National Security frshz trade issuing where do you think we are in this fight. I i think you are going to have to do that because you know, that really National Security that is technology. And, china keeps its about markets pretty close to technology. And we have been quite open, and so now were moving more into a position of reciprocity. In other words, if you want to really open, that is great, but if you are not going to we should not be. Coming our way, we think that those types of issues to decide for the moment, there are lots and lots of other issues that can be addressed, productively from both sides, at the moment, really, certainly since may when negotiations were basically terminated by the chinese, we our two countries have been delinking. China and United States together, is somewhere between 35 , and 40 of the entire worlds economy. Based on when set of numbers you like to use. They cant decouple. It is so big that what happens this they start decoupling results if both countries growing slower such a big part of the world then suppliers to china grow slower. And then the europeans start getting into trouble so the whole world is not benefiting. So for china itself if you look at things from their point of view a strategy based on slowing the whole world down and themselves, is bad for them right . Certainly bad for us bad for every place in the world. So logic says, that you wouldnt pursue a strategy where you get damaged in the short enter need yacht long, long term one reason discussions are heating up again exactly where boating sides get is Market Access most important for u. S. Business some say u. S. Businesses so intrd in getting products in front of 1. 4 billion people forgot to protect products. They didnt did not matt what they thought of wasnt going to happen for them there are a number of things whether intellectual property whether marketing opening where cyberprotections all kinds of things, that the people negotiating deal know what the issues are. I think that you know many of these the chinese are sympathetic, to those areas. Imagine maria, that you started out with almost no gdp per capita 40 years ago i dont know whether 300 or 400 dollars now 10,000 the greatest economic miracle perhaps in world history, when we show up and say hey why dont you drop that system, and do it the way we do, you can understand that the enthusiasm for that wouldnt be wild. This is a good point you are making because this is this is a debate over governance over values, you can look at communist versus democracy and capitalism also having conversation of capitalism versus socialism your take on 2020 Elizabeth Warren was wealthy wealth fax to raise taxes substitute wealthiest taxing carl icahn announced moving to miami. Ma what is your reaction to that do policies dictate behavior there is impact . Sure they do, you know karl moving from new york will probably personally save i dont know what karl pays i know very wealth guy whether saves a hundred Million Dollars a year to move from new york to florida, you know that is a powerful incentive. That, you know, government determines outcomes Good Governance get good economies bad governance can ruin good economies, so if you look at a place as strange as venezuela you have got to be very prosperous. Right. One. Richest in latin america. Right, you change the government to a socialist government, and now they are poor they cant even get food. And that is just a changing in governance, same country we invest all over the world. And one thing we know is when there is an odd government that comes in with policy that tend to fail everywhere, that something bad is going to happen, and you should not invest there. Who do you think will be nominee for the Democrat Party what is your gut say. Well you know there is like so many people paid to give judgments like that i am not one of them. Maria okay, okay. So i dont know. If Elizabeth Warren have comes in with wealth tax we see this increase to florida . You are not able to get away from it, it is federal tax. I think a wealth tax regardless of who is sponsoring it you know has failed virtual every place in the world, and a few countries have experimented with that, and basically given it up. Maria yeah. Because, technically very difficult you have to valve asset it also creates sort of a negative incentive so if you were a tech person, and where they have, relatively low cash comp, and play to have successful stock big net worth if you had types of wealth taxes being discussed they would have no income so they wouldnt come here. Congrats on the what it takes, Steven Schwarzman. Well be right back. 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Hey maria not a good news story for fedex no less than four analysts downgrading fedex 10 analysts cutting price targets after this performance disappointed on bottom line eps you can see revenue as well company, lost amazon as consumer did not renew that contract that is a billion dollars in revenue for th company lowering full year guidance for fiscal year 2020. The ceo is blaming weakening global macroenvironmental trade sanctions policy uncertainty General Mills more disappointments here now on the revenue side, stock trading premarket down as well, about 2 . Strong growth in retail, and ceo jeff saying we got to slower start with an expected our other segment, bad news for them as well. But the profit line was upbeat i got to tell you nobody cares about that this morning, so we are watching stocks very closely i can tell you everything on hold as we await the fed no big movements in the stocks yet. Maria thank you we are taking a break the final thoughts from allstar panel. 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Where a music studio spends less time on hr and payroll, and more time crafting that perfect sound. Where the nations Biggest Party store can staff up quickly as soon as its time for fun. This is the world of adp. Hr, talent, time, benefits and payroll. Designed for people. 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. Maria breaking news right now. President trump just tweeted this. I have just instructed the secretary of the treasury to substantially increase sanctions on the country of iran. We have not seen a major move in markets as a result of this. Any reaction . I think its the right move. Dont take military action. Take economic action, squeeze the iranians, make them pay. Gree wit the governor. Itsworking. Continue to do whats working. We dont need boots on the ground. Indeed. Maria yeah. In terms of this market, we are waiting on the fed. Everybody agrees quarter point cut . Yeah, but watch the 75 billion intervention today by the fed. Very very dangerous. A result of the Balance Sheet reductions as President Trump has warned people. Maria have a great day. That does it for us. Varney Company Begins now. Heres david asman. David thank you. Great stuff. I appreciate it. Good morning, everyone. A lot of big stories affecting your money today. Lets start with the market. We are less than five hours away from the feds decision on Interest Rates. The market is actually pricing in a 41 chance that the fed does not cut rates even a quarter point. What happens with President Trump, with the markets, if they dont get any rate cut at all . Heres a big Economic Indicator for you. Fed ex, it is the stock of the day as well. It is down about 10 in premarket activity as a result of its cut in profit f