Maria a lot to talk about in terms of china, as well as the fed, impeachment inquiry and the fbi scandal, washington is hitting beijing, the United States restricting victims based on restrictions of muslimminority groups. Two sides with another trade talks tomorrow, growing confrontation between nba and china, commissioner adam silver in an effort to heal relationship, it is a real important relationship, the nba, they rolled over, dagen, adam silver is trying to say, look, we are going to protect the general manager of the Houston Rockets and not apologize for it. Dagen wall street journal writes about this today, nba might be in a stronger position and pushing back than even u. S. Businesses because of the popularity of basketball in the country, the most powerful Sports League and it plays to, quote, the journal plays role in local sporting culture that china without the nba is increasingly unimaginable, so i quote from that, but if the nba, theyre a mess right now in terms of the response because they can put together communications and Response Plan that can amend senses, we should point out if this is the communist government, the people love basketball but the people only wants ha they can see and hear, if they can bridge the been and amend the sense, it speaks to broader saw with our relationships with china. Thats the thing, when they talk about an opportunity to bridge cultural divide, messages that work and with backdrop and trump getting on human rights issues, harder for the nba to not take a strong stand, in some way they are trying to pleasing two masters. Maria the reason markets are rallying right now because chinese are suggesting they are still open for a big deal although actually its a small deal, a deal just focused on trade despite the fact that the u. S. Put the 28 additional entities yesterday on the blacklist. So i dont know how the u. S. Does a deal without some of those important bigticket items, theft of intellectual property, just the chinese saying we are open to it even though you put other 22 entities on the list that has markets rallying. In a way a trade war is almost easier to solve than the nba. You cant put price the ability of freedom, basketball player to tweet or leaguer to not be reeducated. I kind of like the idea actually, and solve that and if so, that can be be able to steptool to the other problem. Dagen broken relationship can you mend it, it sounds like whats going on in washington in a way with the democrats, can the democrats say approve the usmca, will nancy pelosi bring it up for a vote even though theres a giant political fracture between democrats and the white house and the democrats and the republicans and with the country overall. Maria i think it was one of the officials in mexico that said later that nancy pelosi will bring usmca to the floor by november. I know mexico wants to deal done, canada also agreed and wants the deal done although they have elections coming up in the next week or so, what do you think . Dagen but if youre peek deep in impeachment proceedings, again, we are in unchartered waters, that would be mostly unfathomable. Maria as soon as they come back and get an agreement usmca im skeptical as well. Im skeptical but to lay logic, smart of democrats to say, we can do this. They should absolutely do it. Its critical that americans see something get done here because this is the thing that absolutely. Maria donothing democratic majority in the house. Issue thats important to all americans, if theyre not willing to compromise on this, what are they willing to compromise, loser issue for them and i cant imagine they will be willing to put themselves up because they want or the martyrs right now. Maria fed chair jay powell sounded off as the central bank will increase purchases of treasuries, watch this. As we indicated in march statement, Balance Sheet normalization, we would be increasing securitys holdings to maintain appropriate level of reserves that time is now upon us, i want to emphasize that Balance Sheet should in no way be confused with asset programs that we deploy after the financial crisis, this is not qe and in no sense is this qe. I will come back to that point but i want to make sure i didnt want to forget to say that. Maria its not qe, what is it, dagen . Dagen reduction in the Balance Sheet, repo rates spiked 10 overnight, so it has to do with the amount of reserves in the Banking System and essentially the Federal Reserve and the new york fed fouled up maria how did they not know there was enough liquidity . Dagen you heard the fed doesnt know what they are doing, the reduction of Balance Sheet, even though they stopped it it was trickling through but jay powell and he said it sort of there, he emphasized that the moves are aimed at basically solving the shortterm lending problems and providing necessarily liquidity there but not providing economic stimulus, anybody who is talking about this is going to be stimulative to the economy thats going to basically bring the dollar down maria not stimulus but liquidity. Needed liquidity for sure. We get the minutes out later this afternoon, we will get a window into what the fed was thinking to have last meeting where there was a lot of divisiveness. Yes, in terms of shortterm rate, is it possible that this could put downward pressure at the low end of shortest rates, thats frankly nice for the banks, spread is so tight they have having trouble making money. If it wasnt for the difference between low and short and long rates, schwabb would be in big trouble. I do think its a good move, as far as longterm rates the market is about 50 50 whether well have the third cut, i flip the coin myself, i dont know what theyre going to do. Maria chuck schwabb played into the idea that the further cuts will have profitability. Letter to Congressional Democrats writing this, President Trump and his administration rejects your baseless unconstitutional efforts to overturn the democratic process, President Trump and his administration cannot participate in your partisan and unconstitutional inquiry and this has to do with a lot of different things, number 1 the fact that all of this is being handled in secret. Yesterday mentioned that it was in a secret room where they are taking place, they are not giving the republicans any chance to subpoena or even know whats coming out and we know that typically when you have an impeachment process, you look at nixon, handled in the Judiciary Committee. Theres a lot of mystery of whats happening here, when you look at the letter that the council of president wrote, outlines valid points and the president saying good, im glad hes standing up, be fair if this is going to happen, this does seem political in nature, when you look at democrats and other people who arent sure what to think, this seems like why are you not cooperating, what do you have to hide, at the end to have day we will see how it plays out in Public Opinion and im not sure its going to look good for the president right now i thought for a while this will seem like just another thing, handled differently, im not sure how voters are reacting. Dagen majority of americans back impeachment probe, 55 of poll participants congress should take up ukraine matter, this from bret baier and jake gibson, it was broken last night by those two, john durham, u. S. Attorney reviewing the origins of the 2016 counterintelligence into russia and Trump Campaign probing a wider timeline than previously known. Based on what hes been finding, durham has expanded his investigation adding agents and resources, timeline has grown from the beginning of the probe through the election and now has included a post election timeline to the spring of 201 7up to when Robert Mueller was named special counsel. Hes asked for Additional Resources for this probe. Assume the probe begins way before the fbi said the counterintelligence investigation started which they say continues to say is july 16 but was know that informants were thrown at George Papadopoulos as early as march and early late 15, its going to go from tend of 2015 all the way you say to the election. Dagen well, no, up to the timeline will include through the spring of 2017, up to when Robert Mueller was named special counsel. Maria the president has been inaugurated and all of that. A lot of time to be investigated. Feels like every time youre about to get the horowitz report out and Something Else happens and theres another delay, i spoke with sources yesterday and they told me that this is a big as the telephone book the horowitz book, they are expected to be out on the 18th in about 2 weeks, i did get that specific from one of my sources yesterday. Thick as a telephone book. Dagen thats the fisa, its not even the origin, people are asking why now, why heat on impeachment, why the heat on the white house from the democrats, thats your answer. Maria bingo, exactly, we will take a break, general motor strike is on, thousands of workers let go now, uaw statement coming up and the stalemate is down 24 days. Fans getting chance to spend night at airbnb promotion, stay with us. Liberty, liberty, liberty, liberty 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. 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Saudi arabia to a billion dollars and more boeing news for you, efforts to return 737 max boeing, regulator has indicated more testing on those fixes, Flight Control computers, all about the software, folks, Software Details may prompt european regulators to withhold full support, faa ultimately allows the plane back in the air. Boeing has sold first 737 max since global grounding, they say private jet company, maria, has made that purchase, but obviously its dow component, futures higher this morning but dow could potentially be a problem for the markets today. Maria thank you so much, we will take a break, coming back vaping epidemic, First Lady Melania Trump to talk with teens as one of the biggest cities considers ban on those, apple has your back, when apps are tracking your location, we will tell you all about it when we come back. dramatic orchestra performance comes in lots of flavors. Theres the ampedup, overtuned, feedingfrenzyof sheetmetalkind. 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Maria welcome back, rally underway right now in wall street, take a look at futures moving higher on triple digits on hopes of a potential smaller deal on on the trade between the u. S. And china, bloomberg right now reporting that china is opened to at least a partial deal and the Financial Times just reported that china suffering an extra 10 billion in buying of Agricultural Products from the United States. All of this after the Commerce Department adding 28 chinese entities to export blacklist and the state department would impose visa restrictions on officials over alleged repression of muslim minorities in northwest and how china rounded up because they are practicing muslim instead of chinese culture. Sherry, good to have you on the program, thank you so much for being here. My pleasure. A lot of issues investors are looking at today, should we be buying into this . I watched the segment prior and dagen pointed out something terrific which is in unchartered territory but decouple the politically from unchartered territory this really isnt unchartered, the economy looks good, earnings will come in, record lows of unemployment and the consumer is feeling great, if you bring all those sorts of things together we should see the markets sort of grind a little higher here, however, i think right now being reflective on what pockets youre investing money and really critical given the policy uncertainty that we are facing particularly with china. Maria do you worry that things have slowed down because we have unemployment situation on 50year low and consumer seems real solid, pmi purchasing managers index, weaker and we had the factory order showing contraction. Yeah, all of that is true, one of the biggest pieces of advice that i give to clients to not allow market recession and so i encourage people to decouple the politics from the data and what the data is telling us the economy looks pretty good, the manufacturing data in nutshell less than 30 of what drives the u. S. Economy and 70 confronted gdp is 70 how people think and feel and how much they have in pockets to spend, that would be the saving grace of the u. S. Economy frankly over manufactured based economies, and so i i hang my hat on the optimism of american investors. Sure, can you talk to us about what usb sees in the upcoming future . My guess would be flat, are you seeing Something Better than that . Yeah, we are seeing Something Better than that, 1 growth in the s p which puts us i think in the optimistic category and maria profits up 1 . Yeah, profits up 1 , with that said, we all recognize that chinese tariffs are really weighing on the market, and if you take a look at a chart for 2019 as we are doing this tariff to not tariff, we are looking at basically 5 up and down moves as you take a look at the chart, maryland advice antonio vestors was to understand that theres a difference between policy reduction and outright dislocation in the market which is defined by a recession. Sure. We dont see recession in 2020 so we want to use the moves to reset portfolios, own the right companies. Lee talking about the right pockets, what are you encouraging, what pockets are locking at the biggest opportunities . We know that income right now dividend orientedtype sectors of the economy where cash flows are rising and you can be on the Balance Sheet of corporate decisionmaking instead of government and policy making, i encourage investors to understand how dynamic it can be with cash balance particularly pointing to recession, areas of a market where you have sectors with big cash balances, raising capital and theyre going to be able to deploy the capital. Beyond that we want to be decoupled and this put you within tech sectors, Services Area market and that would be my advice, pockets and Consumer Discretionary as well. Maria what do you make of the fed . Powell will be increasing purchases of shortterm treasuries in order to prevent a strain on money markets and whatever happened last month, dagen was talked about it last month where rates went over 10 , should be worried about this, they dont know what theyre doing, they didnt know that there wasnt enough liquidity in the market . Having managed for 20 years, i think theres little bit of post traumatic financial disorder syndrome for investors went through that, that was the liquidity driven crisis, certainly something that is makes sense for people to be concerned about, i think this the positive in that is that really the fed statement really is about preempting what happened in the last few weeks and create sort of an orderly adjustment to repo market so investors dont have to be concerned about a spike and in many markets or liquidity i think that thats positiveness, i find that interesting, though, the qualifying statement that is that was not a qe. I think that sort of remains to be seen, but either way i think anything we can do to help advance the mental outlook of u. S. Investors to feel good about the data which shows us that this economy is actually, continues to be stable and grow but a lot of people dont feel that way but the data tells us otherwise. Dagen just to be clear what i was talking about earlier, they said in july they would stop it and they stopped it in august, but the Bank Deposits called the reserves continue declining and banks were increasingly unwilling or reluctant to lend reserves out, there wasnt the amount of money in the overnight lending market that the fed thought it was, they misjudged that, we said this all along, in this program, because it was unprecedented the quantitative easing, the bond buying and it was unprecedented, the reduction to have Balance Sheet and the quantitative tightening that the fed really didnt know what the outcomes would be and i think that the rubber has met the road in terms of those concerns and when you have repo rates overnight lending rates spike to go 10 , says the fed cant control the federal funds rate, the federal funds rate its not where its set or hadnt been where the fed had set it, that creates a lot of anxiety for investors particularly in fixedincome market. Maria see we anxiety play out with volatility. Youre focused on fundamentals and buying in this period . Yeah, i think a lot of people have missed the market since the election which is sort of incredible. Maria yeah. If you led with your own psychology on how things feel instead of the data you missed terrific returns over the last 3 years, these things are hard to time, you have to be extremely thoughtful where youre placing must be and understanding sort of the political and policy context that we are now trying to manage risk in. Maria thank you for card, sherrys dog has own instagram page, i have to up my game from dusty, i talk about it but she doesnt have her own instagram page. Sherry, thank you. Coming up china trade in focus, futures are jumping this morning in report that is china is willing to increase agricultural purchases but talk about partial deal despite company blacklist, the meeting happens tomorrow, all eyes on china next couple of dais, dow industrials up better than 200 points, we will be right back. We wear our work ethic. We work until the works done. And when it is, a few hours of shuteye to rest up for tomorrow, the day well finally get something done. the day well finally get something done. My body is truly powerful. I have the power to lower my blood sugar and a1c. Because i can still make my own insulin. And trulicity activates my body to release it like its supposed to. Trulicity is for people with type 2 diabetes. Its not insulin. I take it once a week. It starts acting in my body from the first dose. Trulicity isnt for people with type 1 diabetes or diabetic ketoacidosis. 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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. Welcome back, good wednesday morning, im maria bartiromo, it is wednesday october 9th, top stories right now 6 33 a. M. On the east coast, china trade hopes rising this morning, futures are rallying extending gains ahead of tomorrows expected talk with china, dow industrials up 200 points china open to partial deal despite u. S. Putting 28 entities on the blacklist. Export list, the dow industrials closing up over 300 points yesterday due to uncertainty over the china down, im sorry, down 300 points, 1. 1 , s p down 45 and nasdaq down 132 points, european indices this morning look like this, europe higher across the board along with wall street, dax index in germany up 112 points, in asia markets were mixed with nikkei and hang seng down sharply, modest gains as you can see, hang seng down about 1 and the nikkei down twothirds of 1 . The korean market is closed for a holiday. Vaping deaths are on the rise, First Lady Melania Trump is holding a listening session with teenagers today as death due to vape ago cross the country rise to 23, another major city this morning is saying it is looking to ban the products as well. Good year for College Football fans, airbnb offering stay, find out what you can get that unique trip. First top story this half an hour, u. S. China trade, highlevel trade negotiations tomorrow this as china reportedly says it is ready to talk about a partial trade deal and it is ready to increase u. S. Agricultural products buying by 10 billion a year, the chinese buyers brought more than 1 and a half Million Metric Tons of u. S. Soybeans in last week of september alone, joining me right now is cnh industrial ceo and great to see you, thank you so much for joining us. Your machines harvest the soybeans that have been at the center of so much of this trade debate and so much more, so tell us what youve been seeing . Yeah, as you said, second largest Agricultural Equipment manufacturer under the brands, u. S. Brands and then actually as this would become true, trade deal with china because they have suffered a lot because of the trade deal, so if we found a resolution right now and 10 billion a year purchases this would be great, great news for u. S. Farmers and very good news for us as agricultural manufacture. Maria trade deal is more than that according to u. S. And thats about the theft of intellectual property and the forced transfer of technology, even fentanyl coming into this country, so, yes thats a great part of the story if theyre buying Agricultural Products but can they get it across finish line given bigticket items. I dont know, comprehensive conclusions over the chinese issues to be found within next day. Perhaps we would find a solution that at least where bits and pieces get done, so i think thatll be good, i dont know whether we are going to find a comprehensive agreement in the next days but i would hope that the u. S. Administration takes this invitation and at least closes partial deal on the agricultural side because, again, those farmers have suffered right now and the ag machinery and ag market, finally to get the stimulus maria your investor day in september, you talked about increasing cap x and, Capital Expenditures, ambitious goal to spin out the trucking business, let me ask you about the cap x increase, this is something we are all worried about, the fact that over the last couple of months we have seen Capital Expenditures go down for largely corporate america, what are your plans . We want to see this current turbulence and uncertainty through, the Agricultural Machinery space is very innovation space, we are leader in precision agricultural, precision farming machinery, so we really see that with our investments we are creating productivity increases and thats the reason why we want to invest into our Farm Equipment and also our Construction Equipment being also one of very large Construction Equipment manufacturer and the plan basically foresees ag grows 5 which is sounds a lot over the 5 years but considering where ag has been in the last year, we see we will see market help and we basically believe that by investing 13 billion of innovation money and cap x into our company we will be able to gain market shares and we feel confident on growth story, as you have said, margin journey, we do believe that we have some gaps on the margin, 400 basis point margin, here in the u. S. We are Large Company in ag and globally as well, we on highway business, spinning it off separately. Maria this is a really important story because you are monetizing this real Growth Engine within the company but, you know, underestimate 70 increase in margin in terms of the stepup in r d and cap x, tell what you say youre seeing in terms of the demand for things like trucks, buses, Construction Equipment right now . On the agricultural side we are seeing demand for precision agricultural solution automated machinery, a lot of automation going on in the ag space and we are seeing this this creates productivity gains and farmers are buying that they are buying that right now and we are gaining a lot this year and we basically brought a very, very highly automated on highway truck, leaders in alternative so we are going to l g trucks and we just became the lead investors in trucks which is the u. S. Leader in fuel trucks, on and off highway you have Growth Opportunities with us and, again, customers are paying for innovation. Maria certainly differentiates you in terms of Growth Strategy for the next 10 years but within the time frame people are also worried about brexit, i want to ask you about this because you have a large factory in the uk and trade impact in terms of brexit, will it happen, wont it happen, how are you preparing for that . Can you prepare for that . [laughter] nobody know where is brexit is going right now, im internal optimist on that one, the brits will stay, how this will come out, we will see, most likely they will have reelection, changes every day, very difficult to predict whats happening, but we are preparing that said. I said yesterday prepare if for worse and prepare for the best. Maria if they leave with no deal would that be a disaster, Nodeal Brexit where they dont have trade deals in place . It would be very bad for the uk and also bad for europe and also bad for the u. S. , in the end we are good friends, we are large trading partners, europe and the u. S. And the u. S. Has an interest in a healthy and strong europe. Maria you look at caterpillar, your competitor feeling the effects of trade tension headed for onemonth low, concerning economy, whats your take on the broad backdrop in terms of the economy . We know china is slowing. Theres volatility and uncertainty out there and as we are active in different industry segments, some segment wills go down for sure, again, big portion of our business is agriculture and there we are actually optimistic so we are cautiously optimistic for 2020 despite all trade uncertainty because we see light at end of the tunnel so to speak. We talk about china, dont forget usmca, nafta 2. 0 agreement, we have to get that den and that also needs to be on the top of the mind of current u. S. Maria how would that impact s e . Most have trading partners in canada and mexico and theres a lot going on agriculture. Usmca is done which is better agreement than nafta, i hope there would be agreement on that one and i think what is positive that we finally ratify with the deal with japan, thats some demand for u. S. Farmers, so i see also some positive, not all bleak, okay. Maria i like the fact that youre not only looking at growth story but investing in growth story but at the same time take costs down and thats certainly going to help margins. You have to shift. Maria yeah. I think growth frugal and mindful spender. Maria real quick, when do you expect spinoff . 15 months, we want to be live january 2021, latest, we will take 15 months to prepare for the spin. Maria we will leave it there, great to have you. Ceo of snh industrial, coming up going to pot, one of the Marijuana Industries biggest deals falls apart, what went wrong on that . 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Nuplazid can cause changes in heart rhythm and should not be taken if you have certain abnormal heart rhythms or take other drugs that are known to cause changes in heart rhythm. Tell your doctor about any changes in medicines youre taking. The most common side effects are swelling of the arms and legs and confusion. We spoke up and it made all the difference. Ask your parkinsons specialist about nuplazid. Sometimes, they just drop in. Obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Maria welcome back, first lady will meet with teenagers on vaping. Cheryl Melania Trump will speak with teenagers with experience on vaping, they invited a group from initiative. Well, we know that smartphone apps keep track of our location, now apple is letting you know how often it happens, the new ios Software Upgrade on the iphone will tell you how many times an app tracks you, it will pinpoint the locations on a map for you, for more control the software does let you grant on per use basis, all to protect your privacy. Then theres this, airbnb and goodyear tires helping celebrating 150th an anniversary. 150, a promotion offers 3 onenight stays aboard. The disappointing part of the story you dont get to go up which is what i would want to do. [laughter] maria good point, thats really important point actually too, cheryl, thank you. Cheryl you bet. Maria they call it puppy love, why owning a dog is good for your heart, we have the stats, theres baby dusty, my little one, back in a minute beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. 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Maria welcome back, the high cost of politics on your health, 38 of americans say that the current Political Climate is stressful, yeah, according to new study, they also say that the situation is depressing and ruins friendships, yeah, and it keeps them up at night, joining us is dr. Mikhail varshavski also known as dr. Mike, yeah, its true. You know what it is true and its interesting that im laughing when we are talking about depression and anxiety because im usually not but in this case when we are talking about political instability, political polarization, this is actually starting to affect our health for one primary reason, because politics has now started to invade all aspects of our lives that normally we are politically free, we would come home usually and be away from the political radicalization and polarization, we would come home and go on our computers and watch movies that had had nothing to do with politics, now our social media, our television screens, our sports everything has something to do with politics and thats invading our Mental Health space. When our Mental Health is affected that actually has a very strong impact on our physical health as well, those two parts of your health are connect sod if youre constantly on edge, constantly in this fight or flight state where your body is going to do and not heal well, not absorb nutrients well, high levels of hormones, we need to take a break, we need to log off social media, remove the political conversation from dinner table and just appreciate each other for who we are. Lee im astounded, 26. 5 has said politics has led to hate some people, hate, 1 in 4. Dagen this is why im not a doctor, somebody came and complained about this i hate so and so, i would say get out of here and get off social media f your life is resolved on what people are telling you on political candidate, you have bigger problems than that. Maria people are diego of cancer right now, we dont have cure for alzheimers yet. Dagen thank you, thank you maria bartiromo. Lee we could give each other the benefit of the doubt with both people and disagree on politics. I think with the rise in polarization what we started realizing increase in black or white thinking, this is a distortion, we dont function well when we indulge in this type of thinking, we actually need to understand theres gray zone, theres nuance that needs to be taken into consideration, but when you look at what really drives us and the way that media has really fed into this, it made us worse, made us more likely to think in black and white term and thats not healthy, part of what i do as Family Medicine doctor is cbt, cognitive behavioral therapy, i try to get patients to understand that theyre doing this and allow them to address it and unless youre able to see yourself from outside rational perspective that youre indulging this type of behavior, you wont be able to fix it . Driven by social media, i hate men in suits on skate boards, you know what, its a joke, i used the word hate but its in jest, im not walking up and down street [laughter] dagen en, people can ascertain what is supposed to be funny, social media is the place lee one of the cornerstones to have book is teaching people to have empathy for people that you disagree. How could you possibly say that . Maria i have the answer, owning a dog. Owning a dog is good for your heart, new data today, we could have told you it was true about the data, having a dog lowers risk of overall death by 24 , cut it is chance of fatal heart attack and stroke by 34 and reduces death of heart attack and stroke survivors, thats why we constantly show our pictures of my baby dusty and dagens babies charlies and ramon. Maria theres dusty, shes so cute. So sweet. [laughter] no, but its true, dogs actually have a pretty good effect on our health and while we are not going to go to say patients you should go get a dog for yourself, we do say theres a strong correlation that i definitely support. Maria i know you, do i have seen your dog on instagram. Dr. Mike, thanks you so much. 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 . This is the family who wanted to connect. So, how can we change. 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. For everywhere you go, expedia has everything you need, all in one place. Do you recall, not long ago we would walk on the sidewalk all around the wind blows we would only hold on to let go blow a kiss into the sun we need someone to lean on blow a kiss into the sun we needed somebody to lean on all we need is someone to lean on oh, wow. You two are going to have such a great trip. Thanks to you, we will. 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. Thanks so much for joining us. Im maria bartiromo. It is wednesday, october 9th. Your top stories right now. U. S. China trade tensions easing this morning, reports out today that china is open to a partial deal on trade despite the u. S. Black listing chinese tec techny companies. The u. S. Put 28 entities on the black list. China is offering to increase agricultural purchases by 10 billion a year, as the white house is restricting visas for chinese officials linked to the abuse of muslims, putting them in camps. Markets are rallying on all of this. Futures extending this morning, up 188 points, the s p up 23 points, the nasdaq up 72 points, this all ahead of tomorrows expected trade talks between the u. S. And chinese officials. Yesterday was a volatile day. Dow industrials closed down 300 points yesterday due to the uncertainty over the china trade situation. Dow was down 313, s p down 45, nasdaq at 4 00 yesterday, down 132. European indices are taking a cue from wall street and trading up. Fq100 up 32, cac up 36, dax in germany up 110 points, almost 1 . Asia overnight march kettle were mixed. The korean market was closed for a holiday. The nba is on the defensive, commissioner adam silver is in shanghai, looking to repair the nbas relationship with china as an nba cares Event Features lebron james and the lakers in china, that event was canceled. Bibles, guns and flags, one carolina ford dealership sweetening the deal for customers with extra gifts. All that and more coming up this morning. The fire storm grows over a now deleted tweet by the Houston Rockets general manager in support of the hong kong protesters. Susan lees is covering the story this morning. Reporter what was intended to be a glitzy preseason week for the nba looks to be tarnished. Not only do we have the nba cares event being canceled, the la lakers and lebron james, we have open practices by the Brooklyn Nets and la lakers being shut to the press and fans as well. More Chinese Companies say they will be suspending their ties with the nba, that includes cosmetics companies, travel companies and car hire companies, which streams nba games in the country. Adam silver traveling to hang shy today, trying to make amends, trying the to broker better ties with Chinese Government officials and speaking to the Chinese Basketball Association which is headed b yao ming. We have a fire storm surrounding players and coaches which refuse to criticize china, including steve kerr, asked about the controversy brewing overseas. Its a really bizarre International Story and a lot of us are dont know what to make of it, so its something im reading about and just like everybody is but im not going to comment further on that. Reporter kerrs comments may be benign, but begin hes been so outspoken on other issues it was disappointing to fans here, even politicians across the u. S. Including those in the house of congress. But where we go from here for the nba, theyre doing internal calculus, according to the wall street journal. Does the nba need china more or does china need the nb a ba mo. It has at least 600 million fans streaming every game and probably so much more watching on traditional tv. Does the nba need china, given theres only one National Basketball league. Maria, back to you. Maria thats a great question, susan. Great reporting as always. Thank you. We want to turn to the impeachment inquiry and look at china as well. The white house says it will not cooperate with the house investigation, blocking testimony of the Ukraine Ambassador, a key figure in this probe. The white House Counsel sent a letter to Congressional Democrats, given your inquiry lacks any elementary due process protections, the executive branch can not be expected to participate in it. Joining me right now is Government Accountability Institute President , investigative journalist and author of secret empires, peter sshwitzer. Thanks for being here. Thank you for your very important reporting over the years. Youve done a great job. I want to get into whats going on in terms of the conflicts of interest that we know are glaringly obvious in washington. But first, your thoughts on the president and the white house saying, look, were not going to participate in this impeachment, what some people are calling show, as opposed to an impeachment inquiry. Yeah, i mean, i think its a fair point. If youre going to conduct an impeachment inquiry, you might as well have a vote on it and make it official. Having an unofficial sotospeak impeachment inquiry dont doesnt make sense. I think the position is completely reasonable on the part of the white house, basically put up or shut up as far as impeachment hearings. I think thats a fair point. Maria i want to ask you a bit about the china story, while we are talking about conflicts of interest. Youre out with a new op ed in the New York Times this morning and the headline is what hunter biden did was legal, and thats the problem. In it you call for more rules to prevent corruption. You write this, at a minimum we need to strengthen american disclosure rules, joe biden and elaine chow have to report when someone sends them 500 Campaign Donation or when they make 5,000 investment in a stock. But when their family members strike lucrative deals with a Foreign Government or oligarch, the reporting requirements are vague, thats why we need a washington corrupt practices act you write, one that shuts down foreign influence and seven richment for some of americas most powerful families on both sides of the aisle. You wrote a book about this. You mention that back in 2016, and i mentioned this a couple times too, when jp morgan had to pay a 264 million fine as part of a settlement with the federal government because the asian subsidiary hired the children of Chinese Government officials, tell us what you mean, peter. Yeah. What i mean is that jp morgan violated the foreign corrupt practices act by hiring the children of communist Party Officials in the hopes of Getting Better treatment from the Chinese Government in exchange, but if a Foreign Corporation hires the children of prominent american politicians, thats no violation of the law by itself. And thats a huge problem. I think its one of the things that frustrates so many people out there, the rules are different for what i call the Political Class in washington, d. C. Theres people on both sides of the aisle and i think we need to at minimum require a disclosure. When they do Financial Disclosure as you talked about, quoting the piece, they have to disclose all of these campaign contributions, which is good, their stock portfolio, whichs is good, but if their adult child as in the case of hunter biden signs a private equity deal of more than 1 billion with a Foreign Government, the Chinese Government, theres no disclosure requirement and i think thats ridiculous. My hopes is that washington, d. C. Will move in a bipartisan way in the direction to deal with this glaring loophole. Maria i agree, that is ridiculous. Tell us what they did, you mention hunter biden. I know he took that trip with then Vice President joe biden to china on air force 2 and then when he came back he got that injection of 1. 5 billion from the bank of china. Tell us about that, as well as you mentioned Mitch Mcconnell and elaine chow. Youre looking at this on both sides of the aisle. Yeah, its a bipartisan problem. If theres a way to make money in washington, d. C. , people on both sides of the aisle are going to take advantage of it. In the biden case, its very simple. Joe biden was point person on u. S. Foreign policy towards two countries, ukraine and china, and in both cases his son got a deal that he had no reason to get. He had no qualifications, no background. And in the case of china, he flies with his father in december of 2013 on air force 2, 10 days later, a after they return, what happens is Hunter Bidens small boutique Investment Firm inks a deal for 1 billion, later expanded to 1. 5 billion. Its a private equity deal with the government of china that create an entity called bohi hair vesharvest. This deal was done through the frame of shanghai free trade zone. It was unique. Nobody else had this deal. Not goldman sachs, not deutsche bank, nobody. Of all the companies on the planet the Chinese Government shows to partner with this small Boutique Firm that had been started by the vice be president s son, just a couple years earlier. And that speaks to the whole question of why did the chinese choose the to partner with hunter biden and i think Everybody Knows the answer to that. So its a bipartisan problem as i point out in the piece. The Mcconnell Family has ties in china as well. And thats why i think there needs to be a bipartisan solution to this issue. Maria whats the story with mitch mcco mcconnell and elaine chow that you report. Youre looking at both sides. I want to make that clear. Yes. In this particular case, elaine chows family, elaine chow of course is married to Mitch Mcconnell, is in the shipping business. They started that shipping business and they are very, very closely wedded to the Chinese Government. The Chinese Government finances the purchase of their ships, provides crews for their ships and it also provides contracts for their shipping company. And Mitch Mcconnell an elaine chow are direct beneficiaries of this. They received a gift of millions of dollars from elaine chows father and the point is, again, the chinese have a strategy, they have a strategy, theyve done it in australia and elsewhere, to partner with the Political Class in Foreign Countries because they believe its going to give them favorable treatment and access and i think its a bad thing for america. Maria you make an excellent point, peter. Youre right, china buys influence, period, end of story. Thats what they try to do over and over again. Very small example is anthony scaramucci. They wanted to buy his company while he was rumored to get a job in the white house. He gets the job in the white house for 11 days. As soon as he gets fired after the 11 days working at the white house, crickets from china, they no longer wanted to buy his company. So theres that. We see this over and over again, china tries to buy influence, you make a great point, about the need for a foreign corrupt practices act or equivalent law to look at that. New polls this morning from nbc news and the wall street journal, want to get your take on. Americans are split when it comes to impeaching President Trump, 24 of americans say there is enough evidence to impeach and remove him from office, thats 24 . 31 say congress should move forward with an impeachment inquiry but 39 say theres not enough evidence for an impeachment inquiry. Whats your take on all of this and where we are with the democrats trying to take him down behind closed doors in secret . Yeah, maria, i mean, all of it comes down to the phone conversation he had with the ukrainian president. If you read the transcript, whatever the whistleblowers claim was in the call, the transcript speaks to what was in the call. And theres just no evidence of a quid pro quo in that phone call. Whats funny to me, maria, is people have said, well, he was speaking code or it was a subtle quid pro quo. Anybody who followed donald trump for 20 minutes knows that so telsubtle is not his approac. Hes going of to tell you flatout, hes going to smack you in the face if he has a problem with something. I look at that phone transcript, i do not see a idea pro he quo anquid pro quo. I think its enty appropriate for the president of the United States to talk to a foreign leader about investigating an american political figure who is reportedly been engaged in corruption. We know the money flowed to his son, hunter biden. His son had no background in ukraine. He got 3 million over a fouryear period with no expertise. And its entirely legitimate for the president to ask a foreign leader to do that, with our department of justice. Maria. Maria go ahead. I was going to say, the point that democrats make, that joe biden is running for president , he cant be investigated, i mean, remember when Hillary Clinton lost in 2016, everybody said, well, shes no longer running for office, shes not going to be president , so you cant investigate her either. My point is, its ridiculous. Theres no immunity whether youre running for office. If political figures are going to engage in these kinds of financial trans a actions with their family members, they should be subject to investigation. Maria on top of that, lets not forget the hysteria the country was in for two andahalf years because the media was driving this bus on the fbi made up story that donald trump collude seres with thed with therussians. It feels like its appropriate for the president to say find out what the heck went on, given the fact we know some of the garbage in the dossier came from the ukraine. The first two andahalf years of his presidency was clouded by that story. Thats right. That story, ma writ maria, was y the steele dossier which was this unverified basically fictitious document. That drove the entire investigation. If you contrast that to the biden situation with ukraine and china, this is not a conspiracy theory. You have financial transactions. You have meetings. You have joe biden bragging he got this prosecutor fired who the Prosecutor Says was investigating 00 dee hunter buy. Theres more evidence in this case than there was in the previous case on russian collusion. Maria peter, great to see you this morning. Great reporting, thank you. Were going to come back with President Trump is tweeting this morning. Well bring you that when we come right back. Stay with us. 2,000 fence posts. 900 acres. 48 bales. All before lunch, which we caught last saturday. We earn our scars. We wear our work ethic. We work until the works done. And when it is, a few hours of shuteye to rest up for tomorrow, the day well finally get something done. the day well finally get something done. My body is truly powerful. I have the power to lower my blood sugar and a1c. Because i can still make my own insulin. And trulicity activates my body to release it like its supposed to. Trulicity is for people with type 2 diabetes. Its not insulin. I take it once a week. It starts acting in my body from the first dose. Trulicity isnt for people with type 1 diabetes or diabetic ketoacidosis. Dont take trulicity if youre allergic to it, you or your family have medullary thyroid cancer, or have multiple endocrine neoplasia syndrome type 2. Stop trulicity and call your doctor right away if you have an allergic reaction, a lump or swelling in your neck, or severe stomach pain. Serious side effects may include pancreatitis. Taking trulicity with a sulfonylurea or insulin increases low blood sugar risk. Side effects include nausea, diarrhea, vomiting, belly pain, and decreased appetite, which lead to dehydration and may worsen kidney problems. I have it within me to lower my a1c. Ask your doctor about trulicity. Announcer fidelity is redefining value with zero account fees for brokerage accounts. And zero minimums to open an account. At fidelity those zeros really add up. Maybe ill win saved by zero maria welcome back. President trump just tweeted, he writes this, the whistleblowers facts have been so incorrect about my no pressure conversation with the ukrainian president and the conflict of interest and involvement with the democrat candidate that he or she should be exposed and he questioned properly. This is no whistleblower, the president writes. He says the whistleblower has tie to one of my democrat opponents. Why does the icig, the Inspector General allow this scam to continue, writes the president this morning. The United Nations facing a cash shore stageshortage, cheryl cash headlines. Cheryl theyre facing the worst financial crisis in nearly a decade according to a spokesperson for the u. N. Secretary general. The Organization Says unless action is taken, u. N. Operations around the world could take a hit including the pan ability ty their staffers. One of the biggest deals in the cannabis industry just fell apart. Med min backed out of a blockbuster agreement to buy pharma can, the latest setback for marijuana stock investors. Then there is this, a giant American Flag can fly in statesville, north carolina. The City Council Settlement dispute with a camping world store over the size of a flag that it had outside. Back in may, statesville sued camping world, said the giant flag exceeded city limits. Camping worlds ceo refused to take down the flag, said he was willing to go to jail over it. Thats patriotism for you. After gaining national attention, the city agreed to change its ordinance to allow the 40foot by 80foot flag. Living in a car is really not anybodys idea of luxury, right. But it is a necessity for a growing number of americans who cannot afford high housing costs. Problem is especially bad believe it or not in california. Annual Los Angeles County numbers show 5 jump in the number of people that sleep in their vehicles, also an uptick in rv dwellers in Santa Barbara and san jose. Thats pushed organizations to find a solution to help people who can work but cant afford to live in traditional housing. The idea, maria, of actually rent control in parts of california has been floated in parts of the state, especially the San Francisco area. Its unbelievable how expensive it is. Maria even with the homelessness issues and cheryl adding to it. Maria more legal troubles for Johnson Johnson, forced to pay 8 billion over an antipsychotic drug. Well tell you about that. And well tell you about a car dealership that offers a bible, flag and a gun, yes, with every purchase. Wait until you hear this. Is where people first gathered to form the stock exchangeee, which brought people together to invest in all the things that move us forward. Every day, invesco combines ideas with technology, data with inspiration, investors with solutions. Because the possibilities of life and investing are greater when we come together. To the wait did frowe just winners. Prouders everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. Now you can share it between lines. Mix with unlimited, and switch it up at anytime so you only pay for what you need. Its a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you buy an eligible phone. Call, click, or visit a store today. Maria welcome back. Privacy concerns in focus this morning, newly declassified files reveal a secret court fight over the fbis procedures for searching for americans messages using electronic surveillance, a violation of americans privacy rights. Joining us right now is judge andrew napolitano. Good to see you. First, react to this, this specific case on the fbi. I hate to say i told you so but a lot of us told you so. First of all, this opinion that came out yesterday is a year old. We have to get used to having secret courts in america that make secret rulings and sit on them for a year. We have the right to know about this at the time that it came out. The intelligence communitys persuaded the secret court to sit on it. Heres what happens, fisa, the Foreign Intelligence Surveillance Act has a lower standard for judges issuing search warrants than the constitution. The deal is, we will issue you search warrants not for criminal investigation but for intelligence purposes. Youre trying to find who in the United States if anybody is cooperating with a foreign entity that wishes us harm. Youre not looking for evidence in a criminal case. People seeking these warrants are nsa agents. Ah. But the fbi got wind of this. Im giving you a story that took 40 years to take place and learned that they can go to fisa with its lower standard for issuing search warrants and get a search warrant as if it were an intelligence case and then they gather evidence for crimes. The court for the first time has chastised the fbi for using fisa, foreign Intelligence Surveillance court, to investigate domestic crimes. Now, while investigating domestic crimes, some of these fbi agents also investigated their neighbors and their Close Friends and a each other and this judge found this out and chastised them for it. So the constitution says you want a search warrant, you present probable cause of crime. Fisa says you want a search warrant, you present probable cause of communicating with a foreign person, could be my cousins in florence, their book seller, a foreign agent, any foreign person triggers that. The fbi, the same thing that happened to President Trumps campaign, the fbi discovered how much easier it is to get those warrants, pretend it an intelligence investigation, boot strap it to an investigation. Maria the fbi has gone so wildly offtrack under jim comey in the last couple of years. Its outrageous. I want to say this. We are about to get the Michael Horowitz fisa abuse i cant wait to see whats in there. Maria ill hearing its going to be out on october 18th. Its going to be out in two andahalf weeks. Im also hearing that its about as thick as a telephone book. It goes beyond the fisa you abuses. The fact that they wasnt to wer page and wiretapped him based on flimsy evidence of the dossier outrages me two years later. Your outrage is justified and shared by a lot of people and will be reinforced by the horowitz report. This opinion covers march of 17 to october of 18. So the vast majority of these violations of the constitution liberties of americans, not foreigners in the us, but americans, occurred under chris wray, the current fbi director. Dagen really quickly, i want to point out, this is a top read story in the wall street journal, this is how much all Americans Care about privacy rights and violation. Maria thats right. All right. We want to also get to Johnson Johnson because this is an important story as well. Stock is lower in the premarket after a philadelphia jury ordered the company to pay 8 billion in damages over the antipsychotic drug the company produces. A maryland man charged that taking it as a child caused enlarged breasts. J j failed to properly warn of that risk, he says. Its if lateest in a series of legal setbacks for j j, alleging that injuries from products including the baby powder as well after the opioid charge as well which was better than anybody thought. Correct. Until today, i dont know whats going to happen today, j ached j in the market has been surviving this. This is the second part of the trial. The first part of the trial was a verdict for 680,000 for a compensatory damages, the pay for the surgery and the pain and suffering necessitated to return this fellows breasts to normal. Whats the 8 billion for . Punitive damages. Who gets that . The plaintiff gets the 8 billion and its intention is to punish j j because the jury found that j j knew that this product caused abnormal male breast growth and didnt warn, didnt warn the doctors and didnt warn the patients. This is the first of 13,000 13,000 of these litigations. Dagen j j is going to immediately move to set aside what it calls an excessive and unfounded verdict, an amount that was, quote, grossly disproportionate to the initial compensatory damages of less than 700,000. When you assess punitive damages in america, its based upon the wealth of the defendant, not the harm to the plaintiff. Dagen who gets the money . The plaintiff. Dagen and the lawyers. Yeah, the lawyers get their share, sounding like varney now. But they do get there thats what they do for a living. Maria thank you so much. Well slip in a short break. The nba couldnt veer sieve, commissioner adam silver is in china this morning, looking to repair relationships there. This is america, a car dealership in South Carolina sweetening the deal when you buy a car, offering more than just a warranty with every purchase. Wait until you hear whats on the list of perks. Back in a minute. Cant you see that i want to fall from the stars. Straight into your arms. 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 . But when i started seeing things, i didnt know what was happening. So i kept it in. He started believing things that werent true. I knew something was wrong. But i didnt say a word. During the course of their disease around 50 of people with parkinsons may experience hallucinations or delusions. But now, doctors are prescribing nuplazid. The only fda approved medicine. Proven to significantly reduce hallucinations and delusions related to parkinsons. Dont take nuplazid if you are allergic to its ingredients. Nuplazid can increase the risk of death in elderly people with dementiarelated psychosis and is not for treating symptoms unrelated to parkinsons disease. Nuplazid can cause changes in heart rhythm and should not be taken if you have certain abnormal heart rhythms or take other drugs that are known to cause changes in heart rhythm. Tell your doctor about any changes in medicines youre taking. The most common side effects are swelling of the arms and legs and confusion. We spoke up and it made all the difference. Ask your parkinsons specialist about nuplazid. Maria welcome back. Good wednesday morning, everybody. Thanks so much for joining us. Im maria bartiromo. It is wednesday, october 9th. Your store rise righ stories ri. There are reports this morning that china is willing to talk about a limited trade deal despite the white house announcing its tech black list and adding to it 28 new entities on the black list. Also, the u. S. Issuing visa restrictions for chinese officials. China says it will still offer to increase agricultural purchases by billions of dollars more a year. The dow industrials this morning up almost 200 points. Three quarters of 1 . The s p is up 25, nasdaq is up 74. This on top of a big selloff at the close yesterday. The dow industrials closing down better than 300 points over uncertainty over the trade story. European indices are taking a cue from wall street and trading up. Cac is up 41 points, the dax index is up 135. In asia overnight, markets were mixed as you can see. Fractional moves, korea was closed for a holiday. We are looking at all of that coming up this morning. First, our top story this half hour, tensions still brewing over a pro hong kong tweet sent by the Houston Rockets general manager. China canceled profits of the nba preseason game. Adam silver is traveling to china today, says he will not apologize for the tweet. Its part of a bigger crisis for the nba. Merchants are halting sales. Chinese celebrities and sponsors and distancing themselves from Upcoming League events. Joining me right now is the author of chinas vision of victory, jonathan ward. Its always a pleasure to talk with you. Youve been an expert analyzer on this story. So thank you. Good morning, maria. Maria give me your reaction to whats going on in terms of the nba and what were seeing here is the chinese increasingly bullying American Companies to do what they want them to do. Sure. I think this is kind of an america meet china moment because this has been happening for quite a long time to all sorts of companies, from the United States, from around the world, but its the first time really that its found its way into american culture. Really going into the nba, i think now Many American citizens are going to be increasingly aware of what its like for china to exert its kind of influence on our companies, on our citizens. Here you had the peoples republic of china saying essentially we do not support your right to free speech, youve been in china for quite a long time, you know exactly what to say and what to do, those were their words. So its a big moment. Maria its a big moment and i want to focus on how u. S. Companies are responding. Youve got the nba fight. Then youve got blizzard, blizzard has removed hong kong player from the grand masters, they took away the prize money and they suspended him from the pro play for one year for a recent interview where he too talked positively about hong kong protesters. Then youve got apple, apple was going to ban an app that they had on the app store which basically connected hong kongers to one another, so you could know if you know anybody who was also protesting. They reversed that decision. Its becoming a situation where American Companies are really taking a long time to think about how to respond to the chinese bullying because they want that market access. Well, thats right. This is the cost of the chinese market. Its not just losing your intellectual property or forced jivejives and transfer, its bog to the political demands of the communist party. You look at what happened to the nba. Twitter is an app that is banned in china. This is talking essentially over american discourse in america on an internet that china is not essentially divided in half when they have a firewall. Theyre trying to censor speech outside of china. Gap had an incident where they didnt include a South China Sea on a map of china that was not being sold in china and this led to ire from the country and the party. Its not just the party. Its also the Chinese Consumer that is calling for boycotts on waymo and such, on u. S. Business thats are failing to adhere to the party line here. So its the china market. This is what this is about. Maria the trump its hard to push back on their own. This is the issue. Ultimately, youre going to have to have some kind of getting together and i think the nba has stood out, has been commendable about this when adam silver said, look, were not going to regulate the speech of our employees. That was almost a first in American Business dealing with china. Maria that was very good that he was so strong on that. The administration is taking action over the Human Rights Violations as well. We reported this first, a long time ago. I spoke with secretary pompeo about this, how the chinese are rounding up muslims, putting 1 million muslims in what some people are calling concentration camps. They call them reeducation camps, telling the muslims you cant study your muslim religion, youve got to follow our culture and our religion, so they put them in these camps. The camps are guarded with armed men, with guns. So youve got that. Some of chinas Biggest Technology companies are on this u. S. Black list. Chinas Foreign Ministry spokesperson said the u. S. Should stay tuned for possible retaliation, jonathan. What do you think stay tuned means . I think at the end, this is part of the Bigger Picture of u. S. China technology decoupling. The United States is going to sanction the surveillance state, high tech human rights abuses and the emerging military complex. Through u. S. Participation in the growth of china, weve wound up facilitating through engagement the rise of a high tech thotech authoritarianism ts repressing their citizens, concentration camps have 1 to 3 Million People in them, they have massive dna banks, all sorts of oppressive activities, being sanctioned through high tech startups, one of which is about to ipo. The Civil Military fusion is something where china is trying to take its entire Industrial Base and convert it into military power. We saw the fruits of that on display at the military parade last week and thats a great a great deal of that is enabled by the engagement with the United States. So i think thats all starting to separate now. So as you look at the trade deal and the question of a limited trade deal, the sort of scope of this trade deal gets more and more limited all the time and what really is widening is the actual scope of the changes the u. S. China relations. This is a much bigger subject and our trading relationship, tech relationship, all these things are in question based on what beijing is trying to do. Maria should the u. S. Be doing a trade deal when youve got human rights abuses, when youve got this inability of the chinese to admit that theyve been stealing our intellectual property for decade and they dont want a mechanism in any deal that requires consequences if we find out the chinese are continuing to steal . Theyve been very clear, the chinese, they want to be the number one super power in the world by 12025, they 2025. Militarily and economically. You said civil, military fusion. That means any innovation thats in china will first go to the military. It those be used in the military or at least looked at in the military so theres no separation of the commercial economy and the military economy. Military is number one. So jonathan, you have to ask yourself, does the world want the largest super power, militarily and economically, does the world want that super power to be a communist government . No, absolutely not. I think thats what ultimatelys at stake here. What you have to do now, i mean, the sort of entities list is an important method. But these things have to go multilateral. What you really need is the United States, europe, japan and sort of high tech asia coming together to essentially close off the peoples republic of chinas path to further high tech and their ability to build that military capacity. So at this point, the steps that are being taken in the United States are really going to have to start going multilateral. That was a challenge even in the cold war with strategic embargoes of key military technologies and the ability to wage economic competition against the ussr. Today, because theres commercial engagement, its going to be even more difficult and yet you can see what its like to actually do business in an incredibly national isistic china. Thats the pressure on the nba, the list goes on. Maria not to mention hong kong, they made a promise it would have its own autonomy, yet theyre putting their rule real hard on hong kong right now. We have a couple seconds left, jonathan. What do you think the u. S. Should be doing with this trade deal . I mean, tomorrow the talks are happening in washington. How should the u. S. Take this . Dont cave in on technology. I mean, i would be very concerned about some kind of tech for ag deal. We hold a lot of the cards. We are a massive food supply, Massive Energy supply. The Chinese People need all that. We cant let them advance technologically through our assistance or our allies given what they want. As long as things like huawei are not put back on the table, i think we have to stay focused. Maria not to mention the fact that, yeah, they want to buy more soybeans and pork. They need that. 250 million dead pigs in china, and as i understand it, theyre throwing those dead pigs either theyre throwing them in the river or sending them to the slaughterhouse and making meat anya way. They say you cant get sick from a diseased, dead pig. Theyre using that to support our companies. We cant have china pushing around American Companies anymore. Maria thank you so much. Great insights from you. An all american giveaway, a car dealership offers more than just a few perks with every purchase. Wait until you see the list of stuff theyre giving away. And now heres the scoop, a cool instagram feature is one of the hottest spots, coming up here on set. Ive been working my way back to you, babe. With a burning love inside. Im working my way back to you, babe. With a happiness i wish i could shake your hand. Granted. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Maria welcome back. Cars, god, america and guns. One car dealership banking on all four. Lauren simonetti with details now. Lee it is a ford dealership and its in South Carolina. Northwest part of the state, population 3700. This is a people that loves to hunt and the folks and the employees at the car dealership got together one day and said what do we love. Selling cars, our country, our faith, so lets do this promotion for october and november. You come in, you buy a ford and you leave with a free bible, a free American Flag, and a 400 voucher to buy a gun at the local gun store. If you do not want to buy a gun, because we understand that these are our beliefs, were not forcing them upon you, we do support the second a amendment, you might not, well take 400 off the price of your new car. This drummed up controversy on social media. Tony writes cant wait for the lawsuits when your company is held liable for a shooting. Let me talk about the positive also. Mike simmons, god bless america, good for you, too bad i dont live closer. Guess what . The dealership sales are up. One customer said i saw this promotion and drove two hours to buy my new ford from them. I got my bible, got my flag and got my voucher for a gun. Maria wow. I mean, know your target audience, right. Its the number one rule of marketing, so here you go. They know who theyre after. Theyre opening discussion on it, which i liked. I immediately thought of liability. Thats why its a voucher. Theyre not putting a gun in the trunk. So probably dont have to worry about that. Im sure they checked with lawyers. Dagen its called the constitution and the second amendment, just a reminder. Maria thats right. You will go if this is interesting to you, if you live in the area, you go through the background check, locked and loaded, the local gun store and you make the decision if you want to go forward. The general manager did say we believe in gun control but do absolutely support the second amendment. We dont want to take our guns from people. Maria great story. Lauren, thank you. Coming up, the sweetest scoop of all, a cool ice cream popup shop has a permanent home in new york city and weve got it right here on set. Back in a minute. All flavors and pushups too. Im your ice cream man, baby. 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. Thats why Xfinity Mobile lets you design your own data. You can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. All with millions of secure wifi hotspots and the best lte everywhere else. Its a different kind of Wireless Network, designed to save you money. Switch and save up to 400 a year on your wireless bill. Plus, get 250 back when you buy an eligible phone. Thats simple. Easy. Awesome. Call, click, or visit a store today. Maria ice cream, you scream, we all scream for the museum of ice cream, new york citys sweetest popup experience opened its doors three years ago and became an instagram sensation. Now its going from popup to permanent, opening a flagship location in new york city. Tickets go on sale today. Joining us right now with the scoop is the museums ceo and founder and the cofounder of figure 8, mary ellis bohn. Tell us why this is so special. Ice cream, our number one favorite food and were going to have ice cream for breakfast this morning. Today were launching our Flagship Museum in new york city, tickets go on sale 10 00 a. M. Eastern time. Its going to be a magical place in nyc. Tell me about how you got the idea to do all this. Most of the ideas came from my wildest childhood dreams. I used to dream about going into an ocean filled with sprinkles. We made it for the world to experience. I was in california, staying across the street from i never heard of your museum and the lines were going around the block which i thought should i stop in, no, i dont have six hours many it was incredible. Weve seen 1. 6 million visitors to date, next year were on track to see 3 million visitors and were opening up locations around the world. Maria whats the attraction other than Delicious Ice Cream . We create multisensory experiences for people to taste, smell, and experience everyones favorite treat. Maria the museum of ice cream is reportedly valued at 200 million. I mean, its so successful, youve been doned the millennial walt disney. Tell us about that. How did that happen . . Whats so special about it . We look at creating the next disney for millennials and genz, looking towards experiences over products and delivering places for people to form community and to engage online and offline. Dagen and things that create instagramable moments, true . Everyone is looking for concepts theyre able to share. Dagen literally, its colorful, that looks good, that photographs well. Its not just its just the visual sensation, not just the taste. Yeah. What were finding thats so interesting is theyre trying to find different experiences that can amplify who they are as individuals and ice p cream does that. Its a universal treat. Maria. Dagen when you had the m set up on 14th street and i live in that neighborhood and so i would walk by and it is this you see these people who are lined up and waiting and waiting and waiting. And everybodys so happy. It does spread its spreads. It doesnt see borders, doesnt see religion, doesnt matter where you are in the world, everyone loves a treat. You guys want to try some of our latest flavors. Maria tell us about the flavors here. That one youre picking up is churro churro, the next one is the top seller, queen bee, a honey based ice cream with honey comb. That one is cones, the bottom, the drum sticks, we packed the pint with all of the ends. Maria how did you get started . How did you get the money to start the business . We selffunded the business two years ago and we built the first popup in 18 days. I literally put up every wall. The first museum sold out and we had 200,000 people on our wait list. We then since opened five locations. Maria did you have to borrow money to do it . No, we selffunded the piece. Maria fantastic. Mary ellis, thank you. Thank you. Maria check out the instaple m feed. We just put it on. Fun fact 1 in 4 of us millennials have debt we might die with. And most of that debt is actually from credit cards. Its just not right. But with sofi, you can get your credit cards right by consolidating your Credit Card Debt into one monthly payment. You can get your Interest Rate right by locking in a fixed low rate today. And you can get your money right. With sofi. Check your rate in 2 minutes or less. Get a nofee personal loan up to 100k. 2,000 fence posts. 900 acres. 48 bales. All before lunch, which we caught last saturday. We earn our scars. We wear our work ethic. We work until the works done. And when it is, a few hours of shuteye to rest up for tomorrow, the day well finally get something done. could another come aroundot, the the corner. Inally get something done. Or could it play out differently . I wanted to help protect myself. My doctor recommended eliquis. Eliquis is proven to treat and help prevent another dvt or pe blood clot. Almost 98 of patients on eliquis didnt experience another. And eliquis has significantly less major bleeding than the standard treatment. Eliquis is fdaapproved and has both. Dont stop eliquis unless your doctor tells you to. Eliquis can cause serious and in rare cases fatal bleeding. Dont take eliquis if you have an artificial heart valve or abnormal bleeding. If you had a spinal injection while on eliquis call your doctor right away if you have tingling numbness or muscle weakness. While taking eliquis, you may bruise more easily. And it may take longer than usual for bleeding to stop. Seek immediate medical care for sudden signs of bleeding like unusual bruising. Eliquis may increase your bleeding risk if you take certain medicines. Tell your doctor about all planed medical or dental procedures. Whats around the corner could be your moment. Ask your doctor about eliquis. Maria well welcome thanks so much fr joijs i am maria bartiromo, happy wednesday to you, it is wednesday, october 9 top 8 00 a. M. On the button east coast u. S. China trade tensions easing apparently what markets say reports, this morning, that china is says it is still open to a partial deal despite u. S. Blistering Chinese Technology another 28 entities on that blast list restrictions for chinese officials u. S. Putting visa restrictions in place, then china is offering to increase agricultural purchases, by over 3 1 2 billion dollars a year, this is coming out of the Financial Times this morning, they are saying now 3 1 2 billion, of Agricultural Products that china is willing to buy. They want to narrow deal dont want a deal with whole problem of theft of intellectual property markets are up nonetheless in triple digits in fact aof tomorrows important talks between u. S. And chinese officials dow industrials up 205, s p up 27 nasdaq up 79 betters than 1 higher on top of a big o selloff yesterday at close dow down 313 points 4 00 on wall street uncertainty over china trade movers markets yesterday s p down 45, nasdaq by 132. European markets are higher across the board, ft 100 up 50 points cac quarante up 48, dax in germany up 15 in asia overnight markets mixed, as you can see, the market korea closed for a holiday. And the impeachment battlelines are drawn white house telling House Democrats they will not comply with what they call a partisan unconstitutional impeachment inquiry a mb of the House Judiciary Committee joining me this morning to respond nba china o problem commissioner silver . Seaning shanghai looking to contain damage by gm of rockets, the pro hong kong tweet then dleetsdz as advancing featuring lakers star lebron james canceled heat on top story impeachment inquiry white house refusing to koopt with house investigation, blocking tent of Ukraine Ambassador key figure in probe white House Counsel Pat Cipollone sent a letter to democrats writing given your inquiry lax legitimate Constitutional Foundation any pretens fairness or most elementary due process protections executive branch cannot be expected to participate in it joining me florida congressman House Judiciary Oversight Committee member good to see you thanks for joining us. Good to see you lets talk about illegitimacy white house writes about typically in history, any impeachment proceeding would have the jurisdiction of the Judiciary Committee. Your Committee Senate Judiciary Committee or hou judiciary why is it in Intel Committee. Not only that there would be a vote both clinton, nixon johnson, there was a vote, by the entire house of representatives, to authorize an impeachment inquiry through the Judiciary Committee and that hasnt happened pelosi refused to have that happen, despite the fact when back in washington a couple weeks ago, our minority leader tried to put a privileged motion on the floor to force a vote on that very issue, and the democrats tabled it so, yes, typically a vote is taken then it goes to the Judiciary Committee, so what you have now, is the Intel Committee having secret hearings are not open to public only make public certain pieces of testimony that adam schiff wants made public despite calls by republicans, to make all the transcripts public so American People can see. Unbelievably the committee, the Intel Committee keeping things behind closed doors rather than Judiciary Committee republicans would be able to do subpoenas youve got adam schiff actually met with the whistleblower we understand, or his staff met with whistleblower, before whistleblower complaint became public he is a fact wins witness, running this deviation youve got idea that being held in secret all testimonies that are happening all the time the public doesnt know anything about them in other words, they want to impeach a duly elected president behind closed doors in secret then. They want to overturn the rumentsz of the election, in 2016 they want to do it without the other side the republicans having an opportunity to subpoena our witnesses without republicans having the opportunity to even have lawyers so they wouldnt law state Department Lawyers to come with ambassador that was deposed in hearing last week having hearings were not in washington, d. C. We left two weeks ago on a fray and then they give us notice that friday after we are all gone from washington the following tuesday that we are going to have depositions we are in district doing this purposely trying to i cant call it anything but impeachment by fiat, just say hey we are going to impeach president at any cost, and they have been trying to do that the last three years first mueller didnt work obstruction that didnt have work then corruption that did not work now it is whistleblower. Right, so what are you going to do about it at the end of the day youve got real pieces of important business that need to get done usmca in balance the unions want it mexico wants it canada wants it not happening nancy pelosi wont bring it to the floor youve got china story, that the markets are moving up and down depending what happens in do a to day notion, bloomberg this morning is reporting that china is open to at least a parring deal, the Financial Times says china offering extra 3 1 2 billion dollars agriculture buying annually is anything going to get done on anything china usmca, while you guys are fighting about donald trump, and the democrats push to take him out . I have been in congress this congress has been in congress for 10 months we have gotten absolutely nothing done, because the democrats are fix aidated on impeachment have a large grilling district my district wants us to pass usmca because of effect on my agricultural dry Dairy Farmers in okeechobee county want us to get things done they are frustrated about by the fact they see this congress is all about impeachment not getting anything done for the American People. Maria right the mexican Deputy Foreign minister apparently said for us u. S. Says House Speaker nancy pelosi will move forward on usmca by november. So what about that . I hope so we have been republicans have been calling on her to bring it up for a vote 8 months she refused i hope she does i think would be great for our country to get that agreement great for the president about negotiated that agreement to be able to get that done. About unbelievable we were supposed to get it before canadians elections happening in a week and a half i had hours minority leader mccar three on show his outlook onus here is what he said about timetable listen to this. If we cant get this done is anybodys guess get anything else done in terms of other trade deals. If this does not get done by thanksgiving it wont get done, then the decision will have been made, by the speaker, that it was a political decision, not about the country. Maria so we will see about that. Do you think so you are not sure if the mexican minister said by november do you agree not getting done if it doesnt happen in november. Why hasnt she done it this point in time most pel you all political doesnt want to give a win for the president something be great for the president take home we got he got the tax bill done last congress, now usmca, would bring, an additional like half a percent to gdp, would be great for our country. Maria part of me feels like i mean, all of these efforts to take down President Trump, i mean he is the president. Grow up we have a the democratic system in place if you hate the guy vote the way you want to vote how democracy works that is not happening it is like children fighting do you think voters are going to blame you both come november . I dont think so, i have encouraged viewers to read transcript for the themselves see if anything in there they view as a crime, a high crime or misdemeanor people dont believe that that phone call was. We have seen polling in some more moderate districts where, trump won in 2016. By 57 of those people did not believe the president should be impeached, i think that is great for republicans, going into the election and president being on the ballot 2020. You have had fair amount of retirements, and people you know leaving, the ranks in the House Republicans do you think that you can win back the majority . In next election. I believe we can a lot of tirmentsz are in safe republican districts, so obviously, a republican successful in those districts there is a lot of focus a lot of frustration back home, that congress isnt getting anything done the democrats are in charge. So i think that we will do very well, in 2020 i think the president will do very well well American People of sick and tired of impeachment narrative for three years. Can you do usmca, and impeachment at the same time . They want to impeach him yet nancy pelosi couple weeks ago said moving forward on usmca. Is that i dont see how you can when six committees right now are investigating the president one is ways and means how are you able to spend time in committee doing impeachment and investigations depositions hearings on impeachment and get something passed . I just dont see how you can do both we are 10 months into this Congress Getting nothing done because of it. Maria quick before you go on china, the chinese say yeah, we will do a deal want a small deal on trade. Put the theft of intellectual property on side on side the fact we round up one to three million would you agruighurs. Do you think the president should do that i can guarantee president not putting intellectual property to the side we have had president s not wig to stabbing unto china so i am glad the President Trump is doing that, and uven it in their xh i their economy is starting to show signs slowing down because of the tariffs, and i think it will be great for our country if we get this done with china. Congressman good to see you you thanks so much. Thank you. Congressman greg sfteube in florida. Pgande cutting power to nearly a million customers in california says necessary precaution next generation playstation has name release date all the details right after this. Back in a minute. One more time. But what does changing whats possible mean anyway . Well. 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Maria welcome back, we have breaking news american are airlines expects boeing 737 max jet in air in Service Starting january 16 of 2020. Remember the airline canceled 9475 flights Third Quarter due to grounding that havejet expects to fly 70. 1 available seat myself Fourth Quarter bringing it back the max jet in air for american. January. Deadly shooting is near synagogue in germany. Cheryl monitoring what we are large from German Authorities police say they have arrested one suspect after a deadly shooting in eastern germany Officials Say at least two people dead on yom kippur holiday near a synagogue excuse me one confirmed death reviving local folks to vigilant we will bring more details as we get them in fox business nearly a million customers in congressional loufg power pg e cutting them off to avoid a disaster as in a wildfire shutoff to reduce the threat to power lines brought down by gusty winds, dry hot windy weather in the forecast pg e expects blackout to last through thursday. A playstation 5 launch in time for the season next year new technology on controllers offer more detail Player Experience crashing into a wall will feel different than a tackle on the football field price has not been revealed, you know we move ahead forward going to be big. Maria always is. A while since a new consul. What caught my ear American Airlines that is a big deal would i love to know, what do the foreign authorities have to say on this, because you cant just fly in u. S. So i want to follow the story see what is happening so important for boeing. Maria i am told they are going over and over and over in terms of safety precautions this is going to be the assertive plane anybody has seen that they are speak abouting hours and hours unlimited funds to make sure there are no cracks here according to sources at boeing. American, would be easier to tell story here Airlines Customers we dont fly that plane, so american going out on a limb. Dagen symbolic. Important a partner like that. Google taking over gaming mark my words google taking over gaming online. I would not bet against you, i am sure that is right this is probably the most particular area of entertainment gaming and i would say betting as well. Yeah. Sports betting. Interesting chinese angle on gaming as well with acti. Vi. Si. On took a hit, a crackdown the nba again, it is new battleground seems everywhere. You are right, china trying to plul anybody says anything positive about hong kong if you dont stand against china people saying human rights issues messed up how do you serve two mafrss terz a statement in mandarin you tougher than in United States saying we apologize we apologize, if you are going to stand for social justice here better stand for social justice as american sport overseas. A break then taking a look at u. S. Economy who are not a recession at hand futures up take a look at retail trade tensions in upcoming Holiday Season dow up 193 points Central Bank Increases purchases of treasurys jay powells comments coming up stay with us. All across the land nationwides teamed up with amazon to bring you the allnew echo auto. Youre gonna love this. Alexa, add xylophone to band shopping list. alexa okay. We dont need a band shopping list. Alexa and i disagree. 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Maria welcome back, retail facing slump in United States, storefronts across country closing as they try to compete with only retailers some are luring in Customers Using social Media Marketing artificial intelligence, next guest walk us through trends joining us president of the notori company ken, thanks for joining us. What youve got is better. Goods has what is going on how is business. Business i think you have to sort of separate it into two buckets, so i think you know, online as we prepare for the Holiday Season here, we are very confident of whether notori confirm only channels stores we sell to confident demand is going to be there what percentage of the share we can get how we can bring that home remains a of a question very confident about only prospects into next couple months, in stores there is no one out there high end who expecting, increases foot traffic at Department Stores i will say to store credit a better job preparing for it past years overbought if sales did not come through a problem i think you have seen early he reports vrn levels in general down even a decrease in store traffic if a bigger increase than expected i think stores are better positioned the worstcase scenario isnt as bad. A difference between online, and brick and mortar not necessarily the difference between a weak consumer and strong consumer trying to understand if consumer is weaken on us. I dont think so in general the way we view from it owe our seat consumers spending more brands have traditional sold to stores major chaos couple years because that business has been such a question mark overall people are still spending more just incumbent on brands to figure out where are people spendings how can we get in front of them a lot are level new channels. Lingerie bracist s, is it repeat how is it shifting. Certainly with bras there is instore element very important but i would say some people think certainly categories, that are immune from only evolution i dont think that is case we have seen cross our businesses everything, is subject to that we say expand new only jewelry partnership with adida you see brands like us expand into categories finding partners as key part of Business Strategy going forward. In terms of the trade fight most manufacturing is not in china is in philippines do you have exposure pot tariffs backandforth. We he have some we are fortunate for the brands that we do in house collections we do inhouse proud to have a family owned factory in the philippines we do 70 of our manufacturing, that said the 20 to 30 elsewhere including a good amount in china, you know that really does hurt, i think one key piece of info for viewers there has been a lot of talk about tariffs passing down the consumer while that may happen in long run, short term there is no ability for us to pass those increases to the Department Stores there is so much pressure so much competition to get into Department Stores, we have no ability to pass those tariffs so right now, we negotiate with our chinese factories to degree that we have them whatever we cant pass off to them really comes directly out of our bottom line i think you will see that see results. Have there been tariffs it is painful a lot of things like we set prices with Stores Factories before tariffs hit next thing we know goods on water if it landed august 30 no tariffs but a lot of goods unfortunately small drooe we have chinas exposure hit in september reduction in profits. You are dont adopting to selling on line not same stuff in Department Stores on wooeb how do you have to change business to deal with amazon. A mix certainly you snow most pluts we sell multichannel most products we do sell, you can find them in stores you can finds them on store web site as we think about future whether third martyr marketplace a channel we didnt previously used to sell we astrategy. The impact of direct Consumer Product line we have been focused on expanding our niche in marketplace probably for sleepwear bras, under war our goal east meets lifestyle brand across categories in clothing ready to wear bedding latest in fine jewelry this partner with parent is a model for how brands look in the future, in the past, brands like us we would develop new collections, really that stores wands them after we made it now because partnering with number one related direct to consumer fine jeweler partnership have store connection but without that great business off the bat we love the product excited about sniper east meets west your idea. Collective a Family Business everything together. Your mother has been icon, so great to see you. Thank you. Thank you so much, the designer, european regulators clamp down. Usmca and brexit ahead all headed back in a minute. Baby if you want me val, vern. Im off to college and im not gonna be around. Im worried about my parents retirement. Oh, dont worry. Voya helps them to and through retirement. Dealing with todays expenses. Like college. While helping plan, invest and protect for the future. So theyll be okay. Without me . Um. And when we knock out this wall imagine the closet space . Yes oh hey, son. Yeah, i think theyll be fine. Voya. Helping you to and through retirement. Thand find inspiration who win new places. Ct. Leading them to discover were woven together by the moments we share. Everything you need, all in one place. Expedia. Fun fact 1 in 4 of us millennials have debt we might die with. And most of that debt is actually from credit cards. Its just not right. But with sofi, you can get your credit cards right by consolidating your Credit Card Debt into one monthly payment. You can get your Interest Rate right by locking in a fixed low rate today. And you can get your money right. With sofi. Check your rate in 2 minutes or less. Get a nofee personal loan up to 100k. Maria welcome back, good wednesday morning. Thanks so much for joining us. Im maria bartiromo. It is wednesday, october 9 top stories 8 1 a. M. East coast u. S. China trade if focus moving markets this morning, bloomberg reporting that china says well it is still willing to make a deal, despite the u. S. Putting 28 entities on the blacklist and issuing visa restrictions announced by white house yesterday, we will see what happens at important meeting happening tomorrow between u. S. And chinese officials stocks rallying on the notion that maybe we are closer dow futures up 185 points 3 4 of s p up 25 nasdaq up 71, european indices a que from wall street up ft 100 in london up 47 cac quarante that are applis up 44 dax in germany higher by 145 in asia overnight mixed korea closed for a holiday the others, as you can see, the fractionally motivating boeing this morning, American Airlines says it will resume the max jet in the air new line to for the return of the 737 max jet gerri on the floor of the New York Stock Exchange with details there good morning. Hey. Good morning maria that is right, us know the averages all three major averages look to open higher first time in four dais American Airlines out saying they are canceling all 737 max jet flights through january 15. They say cancellations in Third Quarter will cost them 40 Million Dollars. That 140 Million Dollars hit to profits the the wall street journal saying that friction between european and u. S. Regulators over max jet when it can come into service will zlai that until beginnings next year announced yesterday they have first order for a 737 max jet from a private jet company, so a lot going on there the shares higher, toys r us with target to relaunch toys r us. Com if you think huge relaunch think you when you hit buy button you go to target. Com. Paypal writing down 228 Million Dollars on its uber investment take a look at this. You thought you were uber experience was bad they have to write down 228 million put down 500 million for shares on day of ipo v34 why paypal investing staining was tied to a collaboration uber uses pay with venmo, back to you. Thank you so much gerri willis latest markets higher on some signs of hope that maybe the two sides tomorrow chinese and u. S. Will come to some kind of an agreement partial deal china is willing to do a small deal but focuses on trades not intellectual property theft joining us Stephanie Pomboy great to see you. Thank you so much for joining us. Thanks for having me. What is your read on the latest china backandforth . In terms of impact on markets, you know, i am over this constant headlined backandforth and backandforth, it has been what a year and one half now of this seems pretty clear that you know the prospects of a real deal where we get the intellectual property agreement, and real enforcement looks dim going to take a long, long fiem time the have a longer term time frame working on, really ultimately want to challenge u. S. , journey have a bigger objective i think headlines backandforth are going to keep going maybe small deal but ultimately, i dont see anything material happening. You are much more focused on Federal Reserve. Yeah. Tell us. I think the trade thing, is often blamed for a lot of the weakness were seeing in the data in my view, the weakness is really much more a function of the fed and just how completely behind the curve in summer before election profits were in recession economy clearly slowing on heels of a fed rate increases that began the year prior consumer speaking abouting cut in half 10year yield went from 2 1 2 to alltime record low of 1. 4 under 1. 4 at that time. Then trump is elected and the anticipation and ultimately delivery tax cuts had the economy in markets do a 180 we had this you rejuvenation everything turned around meanwhile, behind scenes fed was still tightening as we remember in 2017 they started doing qt and unwinding a Balance Sheet on top of that, so i start getting all lathered up you will remember me coming on talking about how sooner or later itly behind scenes the fed was really tightening, aggressively and it was being masked by fiscal stimulus this year obviously, effect of the tax cut faded and monetary drag we had been experiencing really came into focus not surprisingly profits swung rights back into recession, Consumer Spending has rolled over capex cut in you know gone from, up 8 to mine u. S. 2 yearonyear. And the yield about curve obviously, has come in, and 10year yield rally yee aggressively clearly indication there may be a recession afoot if recession may have been been averting by trump tax cuts now kind of back on radar, and given what powell said yesterday, and you know we will see what minutes say this afternoon, it seems like the fed is just going to remain behind the curve already, doing too little too late in terms of the tightening that they had imposed on the economy, so sort of i wish i had something sun under arrest sunner to say. If usual not going to do capex does quarter point make you is a yes. An important question, last week, the doj made what i view as a concession acknowledgement there is a where slower rates hurt more than they help obviously, Banking Center is really feeling squeezed, adadmitedsly in negative territory were not there people argue weve got room where theres some upside to cutting rates i would push back against that though because i think, what we have seen one of the reasons why consumer speaking abouting has been generally tepid relative to how strok consumer should be 50year low Unemployment Rate record High Net Worth low debt service, is that we are an aging population when the fed takes Interest Rates down to effectively zero, you have to work a hundred times as hard to save the same amount of money for retirement, and were seeing consumers adjust to that. Last week the income spending number income up a lot spending was really muted people are realizing they have not having enough for retirement saving that money logger rates from here just you know he intensifies that savings impulse. More behind curve earnings season right here a week and a half away analysts expecting first profit to decline in three years you called this a long time ago what is your tThird Quarter, coming out next week. I know everyone is poohpoohing prospect of negative print analysts have overstaidz Downside Risk maybe break even it will be flat whatever we still have two quarters of negative earnings, the reason why i was bearish on earnings wasnt that i have a crystal ball i was looking at Government Measure of profits on before tax basis last year were in recession. And there are telling you that when tax cut effect came off, the profit numbers would slump over, so there is nothing that i see out there that suggests were going to see some big boost to Profit Growth i think this is a major risk going into the Fourth Quarter we could actually have i hate to get more negative we could have a pretty Fourth Quarter meltdown last year because if people start to realize that the earnings story isnt really going to rebound in 2020, that 10 earnings forecast next year dangling out there all year you know, unmoved, in the face of the profits recession we are seeing, is going to come down that was a major catalyst for market reversal Fourth Quarter last year earnings estimates actually started to come under pressure and stocks followed where estimates go on. Dagen higher longterm Interest Rates 10 year spike to almost 3 1 4 in november of last year that would have been seen as con catalyst indebted nation indebtdz world speak of that jay powell saying Federal Reserve is going to buy more increase purchases short term treasury trying to permanently resolve funding problem that you had in the shortterm borrowing on market the money markets. Some people are looking at that, and saying explicit dont see this as quantitative easing, dont see this as stimulus pumping into market what do you make of it. I would say in keeping with the feds for lack of a better expression complete coolishness about the world their Balance Sheet played in this cycle, you know we talked about this before, it is it is qt like watching paint dry why did you bother expanding Balance Sheet in the first place obviously, if you thought expanding the Balance Sheet was going to be stimulative encourage risk gap, et cetera, taking it back, would therefore be a drag, correct . So they seem to have had this infa infantsy to unwind no evidence so many people said they telegraph really well been very clear, about it is every month going to reduce Balance Sheet this amount investors know we said for literally a couple of years, now dont know you dont know what the knockon effects are all these parts of the markets fixed income even equity markets. Also, being told that you are going to unwind the Balance Sheet is sort of like being told i am going to punch you in the face repeatedly month after month it doesnt make it with less painful, or aware okay this is going to happen. I am going to tell you it is going to happen makes it better . Right somehow takes all drag out of it the messaging was completely irrelevant they didnt know what they were doing in the first place. That is the thing this reveals how out of touch fe was with how impactful that Balance Sheet effect was and theyve been in some fantasyland given what he said yesterday doesnt appear waking up to reality soon. Do you want to take sidelines sell into rally going into Fourth Quarter and earnings that were going to get next i would be hunkered down for a possibility that we see a repeat of what we saw last year earnings estimates still in that doubledigit territory come down to more likely reality i would put somewhere in may be the low single digitals. Earnings growth. S p next quarter . For next year for 2020. I am saying people look ahead to 2020 as we get to the final quarter of the year, they are going to start to adjust those numbers down because the Economic Activity you know the ism, et cetera, are signaling a slowdown ahead. Thank you. Thank you. Well be right back. , so you only pay for what you need. Nice. But, uh. Whats up with your. Partner . Not again. Limu thats your reflection. Only pay for what you need. Liberty, liberty, liberty, Liberty Maria quell well, economic yelz what will markets do if u. S. China strike a deal, and usmca passes, and brexit succeeds Varney Company is this fantasy what are we doing ensure laughing at me. Maria i am not laughing at you i am laughing at idea everything he will gos rosy rosy rosy when we have so many issues you are right it could happen. I am speculating wildly in the most possible fashion, suppose we get a shushort term l with china suppose usmca passes suppose bretts get it off europe a great trade deal with United States of america can you imagine news on all three areas of trade this market goes to the moon i am telling you very firmly dont laugh, this is pure, pure speculation Wishful Thinking at the same time i could be wrong. Maria i totally feel like it is realistic to think usmca passes. I also think he throttle realistic to think u. S. Does fast deal with uk after it leaves i will at some point adamant about that china stuff i dont know if that is what people want a small deal, then china wins in my view china wins. The market would like it. Maria okay. I think the market up 15200 points because of bloomberg report that might do a medium term deal i think that is that is again speculation, but that has moved the market this morning, to upside. For sure that i know you have a lot more we will see you top of the hour Varney Company 9 00 a. M. Eastern after mornings with maria join stuart up in connection farmers approving corn is not just for eating fox business jeff flock is in iowa this morning with the story check him out jeff. Reporter you know maria if you cant make money selling corn in Commodity Markets how about in canon firing it at a pumpkin on side of a darn it i missed it, the American Farmer when we come back. Rock n roll, kind of music soothes my soul the days of old articulate whats old rock n roll, 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. Thats why Xfinity Mobile lets you design your own data. You can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. 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Exports thanks to the trade issues in china. Et. Praises. Yes. Fun time out here. Because of that, farmers diversifying not only canons but hay rides corn mii maizes. Franklying corn an soybeans where would you be . A bad market. Yes. Here we make 4 dollars a bushel here 100 dollars a bushel off one canon. I am looking at sign four ears for 2. We have a canon then get down there, and fire when ready. Okay. Oh. No, i shot that over the o sorry. Your turn. I will tell you that is not american he think newty i dont know what is, then every time you hit target we hear the song we are the champions, i also love. Oh. Man. Well. First time. Not a good one all right, you want to try once more we end on a win . Okay. Jeff flock there iowa we will break then final floats allstar panel say with usset. Et. Tweet, tweet, tweet, rock can go robyn, go rockin robyn cause were really going to rock tonight every little i knew about the tremors. 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We spoke up and it made all the difference. Ask your parkinsons specialist about nuplazid. Announcer fidelity is redefining value with zero account fees for brokerage accounts. And zero minimums to open an account. At fidelity those zeros really add up. Maybe ill win saved by zero maria welcome back. Final thoughts from this allstar panel. I think its really important for us to remember that only one in four americans right now decided theres enough evidence for congress to impeach mr. Trump. A lot of people are supporting the inquiry, they are not necessarily supporting impeachment yet. I dont think thats what people are talking about right now. Maria good point. Yeah. Impeachment is great for news ratings. Barrons came out just this morning at 6 00 with a buy on or at least investors ought to look at box stocks. We think its a good deal. Maria dagen . Bernie sanders has been on camera a few times since he got out of the hospital last friday. Joe biden has not since last friday, when he said he wasnt going to be talking about conflicts of interest. Hes back on the campaign trail today. He has some explaining to do. Maria the most consequential week for the president s reelection last week with all of that. Have a great day. Varney Company Begins right now. Stu, take it away. Stuart good morning, maria. Good morning, everyone. Optimism is in the air. My, how the pendulum swings. All it takes is a couple headlines and sentiment does indeed swing. By the way, those computer algorithms read those headlines and you will see what it did for the market, lefthand side of the screen. First, though, trade. Bloomberg reported this morning that china may be open to a partial trade deal. We do something on tariffs, they buy more of our stuff. Both sides keep talking. A separate headline in the Financial Times suggests china will increase its purchases of american soybeans from 2