Transcripts For FBC Mornings With Maria Bartiromo 20240713

Conservative voices, mornings with maria begins right now. Maria big show this morning, joining the conversation Dierdre Bolton and Kevin Phillips and jack otter. Rockbottom low Interest Rates and the trading environment when the numbers come out, futures right now pointed to higher opening ahead of the numbers and likely going to be the issue that basically sets the tone for markets as we await those thirdquarter results, jack otter, what are you expecting . Nice that we are expecting jpmorgan, jamie dimon is doing a great job, if they cant pull it off, thatll be a problem, with low Interest Rates, that will give banks breathing going forward, theres no real sight. Maria a writedown potentially for wework, unicorns that blue up. They are on the hook for uber as well. Aside from the wework story, aside from softbank which would take the biggest cut biggest hit, rather. Refinance and loan them money for lord Taylor Building which was supposed to be the wework headquarters which was an absolute disaster. Maria also on the hook for wework, thats definitely going to show up in the numbers, you wonder how much the quarter is going to set the tone for the rest of the industry and year end. Showing a drop of 2. 2 of earnings this quarter versus last year, i think its better indication up 3 points on the percent and the idea being i actually think its more positive to show that businesses are still able to generate sales which mean you cant tweet but profits by forcing productivity, fooling around with the numbers and i think its more optimistic to see the sales indicated higher. Maria we will wait for those numbers, as soon as they come out we will see impact on the markets, nba super star weighing in on the Houston Rockets general manager prodemocracy in hong kong. We all talk about [inaudible] but at times there are ramifications. And he spoke and so many people [inaudible] maria he also tweeted after his comments writing this, let me clear up the confusion, i do not believe there was any consideration for the consequences and ramifications of the tweet, im not discussing the substance, others can talk about that, my team went through difficult week, people need to understand what a tweet and statement can do to others and i believe nobody is stopping to consider what would happened, could have waited a week to send it, kevin, your reaction. Sigh of relief, biggest super star comes out and revives the entire thing, i understand lebron, he told a lot of sneakers in china with nike, investments he has there. I understand him want to go walk the line, at the same time for him to come out and say, of course, he was uneducated. Lebron needs to understand the situation before speaking out, he had mlk quote he tweeted 2 years ago about tweeting justice, what about speaking of justice, he has done a lot good for america and pushing back a lot of that, i think its out there for him to call. He said essentially which is okay, i really didnt know when he was forced to apologize, gm and the rockets didnt really know my history as they should have and i didnt understand the nuances, i think lebron james was attacking him in a way that made it accept to believe attack him, if youd like, lets face it, 1. 5 billion contract, 1. 5 billion contract in the nba 3 years ago, 24 billiondollar contract with google, this is just to my taste about the business, its about the money. Maria its all money. What south park says, we like money better . I think this is a good time to just let bad things past, its a great lesson, lets say lebron is not the only person in the world who i suggest put down twitter account for a day or two, please. [laughter] sometimes let it go. Maria Mark Zuckerberg under pressure this morning, hes been doing dinners, off the record dinners with conservative journalists, pundits and politicians, zuckerberg reporting to accusation writing in facebook post, quote, i had dinners with lots of people across the spectrum on lots of different issues all of the time, meaning new people and hearing from a wide range of viewpoints as part of learning, if you havent tried it, i suggest you do, no doubt hes under pressure and has been because of the power facebook and also the idea that they and others in social media censor conservative news. When you try to address that and have conversations, something hopefully all americans are for, he gets grilled for it. We saw it last week ellen degeneres. Youre not endorsing their views, just sitting down and having conversations. I shouldnt say that for everyone, when you people on the conservative side that are meeting with people across the liberal side, you dont see outrage of conservatives youre not allowed to sit with those people, this does seem to be onesided issue sitting down with conservatives, those are the only people in society youre not allowed to talk to. Maria just made the point to all critics, you cant say anything or get shamed and thats happening on the conservative side mostly. Yeah. From a business perspective zuckerberg will be going to dc next week and answer a lot of questions and i think honestly hes just trying to stay out of the regulatory cross hairs so i think at this point as Business Leader he has to meet with everybody. Thats his job. Thats the job hes doing for his company and investors. Maria who cares . Why cant he meet with whoever he wants to. A responsible Business Leader getting along with everybody, thats the point. Maria yeah, you made a good point on ellen, she handled that beautifully, the fact that she had to explain sitting next to george w. Bush is ridiculous. Andrew yang came out, theres nothing wrong with this, we should have more conversations and interesting to see if it comes up in the debate. Maria a lot to talk about in terms of the debate, will the economy come up . We are Getting Started this morning, former philadelphia president charles is here on trade uncertainty on the Federal Reserve, the author of resist anticipates of all cost, board member strassel is here this morning on impeachment inquiry. And kentucky senator author of the case against socialism rand paul on syrianturkey conflict, a lot of conversation around the president s move to withdraw all the troops out of syria, we will get into that as well, short take break. Wework with a new lifeline, we will tell you what bank its choosing, back in a minute right here. And keep it off. Looking good, patrick. I know. vo go national. Go like a pro. Or trips to mars. No commission. Delivery drones, or the latest phones. No commission. No matter what you trade, at fidelity youll pay no commission for online u. S. Equity trades. 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 now former Fort Worth Police officer charged with murder, Lauren Simonetti with details. Lauren officer dean was responding to a call when he fatally shot the 28yearold tatiana jefferson. Dean has been charged with murder, hes out on bail. Wework is in a race for emergency funding and report say its pending, 5 billiondollar financing package led by jpmorgan, that according to bloomberg, rather than ipo they are working on the riskiest Debt Offering in years, also reports say that the expect is expected to lay off as many as 2,000 employees this week, speaking of layoffs, uber, Ridesharing Company letting go of 350 employees from a variety of departments including uber eats and vehicle department, the move late nest a string of staff reductions at uber because they are still struggling since ipo in may and look at chart, maria, struggling company. Maria sure is. On a lot of the names the in premarket, people have been talking for months that the valuations have just become excessive, dierdre. They certainly have. Wework and uber thats so poorly for softbank, the two biggest investments for japan, softbank, 100 billiondollar vision fund and some sources that i have say that there are fewer and fewer investors signing up, not surprisingly or you have them reducing what they want to do and i think some of the companies honestly were private for too long and one of the side consequences of having all private money on the sidelines, they didnt need to raise money in traditional sense and by the time the Company Goes Public theres zero, zero profitability, thats a problem no matter what generation of business youre in. The saudis gave them a lot of money too. Yeah, they gave softbank a lot of money n second round, fine, we will invest but invest less. Maria interesting to see jpmorgan. Big commitment that jp made. I understand that weworks bonds will pay 15 , crazy number. Junk bonds pay around 6 bonds, 15 , you have a credit card for a better rate than that. I mean, thats unsustainable for a company thats losing money. Well, we will see what happens, i think its crazy on 2 billion worth, at this point if i were wework, im surprised maybe he thinks he will end up with some of the real estate at 50 off. Maria we will take a break, General Motors, United Auto Workers bringing Union Leaders together in motor city for negotiations, we will take you there. Washington nationals bringing the fire in game 3 of the playoffs last night, tall hay highlights ahead as we watch earnings. Back in a minute. Everyone uses their phone differently. 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 welcome back, earning season is kicking off that will certainly set the tone, futures indicating higher opening this morning ahead of all of the numbers, of course t guidance from the ceos, what we hear on the Conference Calls will set the tone in terms of sentiment on the economy as well as the Banking Sector, joining us head of institution strategy, ben, thank you very much for being ear. Thank you. Maria your expectations for Third Quarter earning reporting season and when you look at the banks, obviously heavy day on banks, what would you recommend there in terms of allocating capital . Well, we actually look at the Bank Earnings on a on a large cap basis particularly important right now, so we will be looking at net Interest Income, what they are seeing on the trading front and also we would expect the 10year yield to begin to move higher which tends to benefit banks overall as consequence theyre very important to reciprocal side of the economy and we have been dominated as you know for a year by the defensive side, the utilities, Real Estate Investment trust and Consumer Staples and we think theres financials. Maria the reciprocals would be, of course, dictated by the broad economy backdrop, do you think that we are seeing a better backdrop or are you worried about a slowdown causing a recession . No, i certainly always watch for the Recession Risk and thats been the big worry, think where we were a year ago, the Federal Reserve was talking about autopilot tightening of the quantitative tightening oh testify Balance Sheet shrinking its assets, chairman powell was talking about being a long way from neutral, meaning rates would keep going up and we have completely reversed that, two rate cuts, possibly a third, i think that would be it and we have seen the fed replenish bank excess reserves so this is very bullish, i like what im seeing slowly on the trade front and i think that the brexit news is net positive, so we have ourselves all worked up in the last year and i think its time for a snapback for risk. Maria you heard president james bullard, also supporting the fed last two Interest Rate cuts and any future rate decisions will be made on meeting to meeting basis, so i guess its dictate bid the activity out there, jack we have been fairly bullish on the banks because of the valuations and you can make the case that they deserve the cheap valuations, do you see multiples moving at all higher or trying to gain a little bit more margin on that . I would say that the price earn to go ratio right now is maxed out, if you look at where we are at 0 to 0. 25 , inflation, 19 times trailing, operating, using s p earnings estimates is about all youd expect at this point, im not really looking for a huge market move, what ive been talking about the last week and in particular the note that we did monday was a rotation more back to reciprocal risk profile within sectors, again, we have really seen an outperformance in the past year and year to date in those defensive utilities, real estate and staples, looks like now we have a yield on the s p thats above the 10year yield, does seem to us that theres a little bit of a yearend rally coming up and particularly a rotation back in reciprocal risk. Maria you want to go back to growth . Growth stocks would be sort of a different animal, i was talking more about the reciprocal of financials, energy, perhaps a little bit of industrials and basic materials, particularly beneficiaries of that, again, the sentiment thats very negative and time for rotation back to positive. Very quickly, i heard you say financials and theres been a lot of people recommending them for a long time, havent been paid off, we are in low rate environment, whats different this time . Well, again, the the fed is adding enormous amount of liquidity to the system according to what we are seeing, depends on whether treasury accommodates, shorterterm paper, they announce their auction schedules at the end of this month but as they add reserve to the system it does add liquidity which was a concern, you saw what happened in repo recently, the other thing is we do think that the 10year yield pops a little bit higher and that sends to correlate with s p 50 index, when i looked at it, we have not been positive on financials, we have been bulls on defensive and reverse is on the table right now. Maria we will be right back, thank you so much. By, futures are higher this morning, we will take a look at markets as well as middle east turmoil, the u. S. Putting sanctions on turkey to curve in syria. We will have the numbers as soon as they hit the tape and show you the impact. Stock alert right now, better than expected earnings, the stock is up twothirds percent and the profit up 11 , back in a minute hey fred its medicare open enrollment. E. Time to compare plans. Were fine with what we have. Thats what the johnsons thought until they tried medicares new plan finder. The johnsons . We saved a lot on our prescription costs and got extra benefits. How bout it, fred. Plans change every year. Use the new plan finder at medicare. Gov. Comparing plans really pays. Look how much we can save. From the start, the cclass was ahead of its time. Still, we never stopped making it stronger. Faster. Smarter. Because to be the best, is to never ever stop making it better. The 2020 cclass family. Lease the c 300 sedan for just 419 a month at your local mercedesbenz dealer. Mom youve got to [ get yourself a new car. G ] i wish i could save faster. Youre making good choices. Youll get there. Were you going to tell me about this . I know i cant afford to go. I still have this car so you can afford to go. I am so proud of you. Thanks. Principal. We can help you plan for that. Start today at principal. Com. Maria welcome back, good tuesday morning, thank you so much for joining us, happy tuesday, im Maria Bartiromo and it is tuesday october 15th, top stories right now 6 30 a. M. On the east coast, earning season kicking into high gear, major banks in focus, jpmorgan, Goldman Sachs all ahead with thirdquarter results that will set the tone for markets, also today dow component Johnson Johnson to report Third Quarter, a lot of news around j j, all the numbers and full analysis including all of the above hits the tape this morning, futures are higher, indication show a gain at the start of trading with dow industrials up 64 points, s p futures up 7 and nasdaq higher by 20 points, uncertainty with china pushed lower yesterday, still down 29 points on the dow, s p was down 4, and the nasdaq was lower by 8, Global Markets this morning look like, this european indices right now are mixed ftse 100 down 27, cac quarante in paris goes up 28 and dax index up 50 points right now, in asia overnight, markets finished mixed at close. Consumer price hit 3 , pushing pork prices 69. 3 year over year, we have been talking about that a lot this morning and for the last several weeks, General Motors strike week 5, union leader summit to detroit for update on negotiations, believing some the deal to end walkout could be close, big win to nationals, one trip away to world series, first top story this half an hour, middle east tensions, President Trump slapping sanctions on turkey, 100 billiondollar trade deal with turkey raising steel tariffs back up to 50 , Vice President mike pence headed to the regular antonio help broker settlements between ancora and Kurdish Forces, this is what he said outside of the white house. The United States of america wants turkey to stop the invasion, implement immediate cease fire and to began to negotiation with Kurdish Forces in syria to bring an end to the violence. Maria u. S. Army special operations bret, bret, good to have you this morning, thank you for joining us. The president said he was taking all of the troops out of syria and in no time turkey moved in. Well, we are seeing the conditions being sent for us to eventually have to come back to fight isis, the red carpet that we layed out for the turks to go into syria in peaceful operations has potentially undone decades of Foreign Policy efforts, efforts which have been built on mutual trust and credibility with allies and efforts in syria have always been more not just stopping future isis attacks but also about being able to wheel the power and influence and we basically zeroed out our influence at a time when we need it the most, i mean, we are having, you know, we have our number one surrogate force out there and that basically stopped all operations against our number one enemy and thats a major, major problem and i have seen longterm consequences just as a result of the first week of the turkish invasion, the main one being that we got an isis prisoner problem, first off, we are seeing hundreds of the prisoners already being released, now our special operations cant even get access to those prisoners because they had to get out of the area so fast that they cant get much needed intel for Counterterrorism Operations and then the turkish government has been saying that they can handle the isis prisoners but yet theyre starting to employ syrian arab militias as own surrogate force that have allegiances to the extremists members that are in isis, that are in these prisons, they have absolutely no incentive to follow through with the promise to maintain that and we will see a lot more of the prisoners getting release and doing what they do best. Maria wow, this is really concerning, the president keeps saying things like this is not in our National Interest, we are doing the heavylifting but the wall street Journal Editorial Board makes good point in top piece saying trumpsyria mess, start off with 3 words, what a fiasco, the board writes this, mr. Trump finds himself back in an economic and diplomatic brawl with turkey that he said he wanted to avoid, wouldnt it have been easier to tell mr. Erdogan two sundays that the u. S. Would not tolerate turkish invasion against the kurds and use air power to stop it, mr. Erdogan would have had to back down and continue negotiating with the kurds and the u. S. , characterize the number of people we have there, i mean, i dont know, it wasnt that many soldiers on the ground, right . This rush to take everybody out is causing some real upset even the president s supporters. Well, we didnt have many soldiers there but we had some of the best soldiers in the militarys arsenal and they were in fact, keeping stability and stopping the turks from actually coming in and invading, we allowed them to basically do that by this phone call that the president had with erdoga, in that blessed them oncoming in and thats pretty dangerous and the sanctions been slapped, the damage is already done unfortunately, i dont think its going to stop turkey in the near term but the largest strategic issue here is it has to do with iranians and russians, they have been pushing the narrative that the u. S. Government has the credibility problem that the government is untrust worthy and unreliable partner and what weve done now is pushed the kurds to have to make a deal with the syrian assad regime which is backed by Russian Forces basically move their troops into the northeast to push the turkish advance, on top of that you have to be thinking about Vladimir Putin who is probably laughing at the fact that we are sanctioning a nato ally at the same time that we forced our number one surrogate in the region basically to be backed by russian group. Maria yeah, yesterday we had on the phone Prime Minister of israel and basely what brock told me that the winners are iran, you know, russia, and all the bad guys out there, turkeys president by the way erdogan also wrote an oped in the journal, he writes this, Turkish Military with Syrian National army will remove all terrorist elements in northern syria, milt antidepressants are preventing Syrian Refugees 300,000 kurds to returning home. I want to get your take. You mentioned potentially going back in at some point in the future, what would it take to get there and just how far things need to deteriorate before the United States felt pressure in your mind to get back in . Well a rapid deterioration of both syria and iraq to where we are starting to see largescale attacks, thousands of fighters reenergizing and some of the same conditions that we saw after the iraq war where now isis is having to take back large swaths of land, theres the potential for that to exist. I did read the oped as well that erdogan put out in wall street journal and seems like a lot of propaganda, you cant slap word peace in military operation and kill 600 people and just essentially say its a peaceful operation, do i think at some point we are going to have to send a military force back out to the region to stop isiss advances and right now we are losing allies in a time when we need them the most, are the kurds going to be there the next time we have to go fight isis . Maria how could they . The whole point to turks to get to oil fields in syria, once they get to oil fields, is that money going to go to isis . We had iran on their heels and now we are opening up the oil fields to give them money, revenue to sell that oil. Thats a great point, i havent even thought about it from that angle, for the most part i thought it was basically a land grab for the most part and unfortunately turkey had been talking about this operation to not only stop the ypg but be able to handle isis, we heard zero information from the turkish government is stopping isis fighters, all we hear them killing Kurdish Forces, at what point are they going to do something about it. Im seeing it more as a land grab more than anything. Maria yeah, the oil is key part of this, i think, jack. Bret, as long as we have expert on the phone, i have a question for you, i was reading journal editorial, critics said that isis prisoners would be released i would say that experts said, people like you, but your voices arent really being heard when Foreign Policy is being decided on the fly from the gut, how can we get people like you to be listened to so that, you know, as you said decades of u. S. Foreign policy isnt thrown out the window with one bad decision. Maria by the way, i heard yesterday theres a private meeting the president had with a number of people that are supportive of him including Lindsey Graham and a lot of pushback on the moves to withdraw all of the troops, those are more experts go ahead. And youre right, we are seeing that across the board, im a huge fan of the president and i do not agree with this decision thats happened here and we are seeing that a lot from especially within special Operations Community because a lot of us worked directly with the kurds, i can tell you that firsthand senior terrorist leaders that my team hunted would not have been stopped without the direct assistance of kurdish fighters and we are starting to finally hear the stories of the guys in the field that are basically letting people know how important Kurdish Forces are to our strategic objectives here and so we are seeing kind of this bipartisan support in large part to get something done, thats why we probably see this this move to push sanctions and to send the Vice President because of the fact that more people are speaking out about it, people who would normally defend the president for any decision hes made are finally speaking out and saying something about it here and i think its important that we keep doing it. Maria bottom line here, you know, isis being back in business, having access to that 70 of the oil fields in syria, yes, that is in the u. S. National Interest, can we all agree on that . I think so. Maria thanks very much. All right, thanks. Maria headlines across america now, the Los Angeles Times is reporting Governor Newsom urging pg e to give customers rebates after power outages, 100dollar paybacks, utility saying that outages to prevent wild fires, restored power to 7,000 customers, some in the dark for 5 days, Chicago Tribune writes after 800,000 rides and many er visits chicago Scooter Pilot comes to an end. The brakes apply to 4month experiment, goal to improve and reduce traffic easy way to provide transportation whether it worked depends on who you asked. Msg sphere beginning to take shape in las vegas, Las Vegas Strip has never seen anything like this before, the state of the arts sphere, it will seek nearly 20,000 people, scheduled to open in 2021. Short break, the barneys bailout, struggling retail sound buyer, we will take a look and tell you who it is. Bringing the fire in game 3 of the playoffs all of this as we we are standing by for earnings of jpmorgan and johnson and johnson right here as soon as they hit the tape. 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. As a principal i can tell you this. When one student gets left behind, we all get left behind. This is a problem that affects each and every one of us. Together with ibm, we created a whole new kind of School Called ptech. Within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. You know whats going up today . My poster. Today, there are more than a hundred thousand ptech students around the world. Its a game changer. This is the family who wanted to connect. Ptech students around the world. 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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. Maria susan li with the numbers. Positive future increasing 4year sales and guidance, up 3 quarters and 1 in the premarket, better quarter than anticipated, profit coming in stronger, 2. 12 a share, beat with analysts around 2. 01, also revenue came in much stronger than expected as well, so this is a pretty positive quarter for Johnson Johnson despite litigation overhanging, cases of opioids, powder, 8 billiondollar award being awarded in one case by jury, so right now we have the overhang coming from the courts but not hurting their sales as they are looking to increase their sales and guidance, back to you. Maria j j earnings are better than expected even with these more than 100,000 plaintiffs over the product safety and very strong guidance as well on j j, stock is up 1 and 3 quarters percent. Meanwhile theres a shimmer of hope in gm strike, Lauren Simonetti with headlines now, lauren. Lauren maria, United Auto Workers union summiting and the meeting raising speculation that end to strike is near, members will vote on agreement and then go to ranking file, nearly 49,000uaw members have been on strike for 5 weeks now since september 15th. And luxury retailer barneys reported close to a deal to keep some of the stores avenue, saks fifth avenue, Authentic Brands would own barneys, pay licensing fee for barneys. Com and play barneys stores inside saks location, Washington Nationals one game away for world series, beat cardinals 81 last night, commanding 3game lead in series, striking out 12 batters and drove in 2 runs, nationals, everyone is talking about the game. So kicker mason with 23yearold goal to complete comeback over the lions, packers including 51. Outraged lions fan, look at the video, after penalty not once by twice in Fourth Quarter many lions are questioning was it fair, i dont know. Twitter says [laughter] real controversy, if you look at analytics, it never hit the floor and people are saying mlb may get people interested. Maria o god. As far as like Miles Per Hour off the bat, all of this should be going out. Now getting caught, some people saying mlb has changed. Limited number of seconds batters can be up at bat. Speed the game up. Maria robert was here and i asked him about the ball controversy and he didnt feel like there were any major issues. [laughter] maria with the balls. Deflategate all over again. Maria state again . Breaking news we have breaking news on china right now we want to get to, chinese are asking to do away with the tariffs and, of course, we know that they do not want the december 15th tariffs in place, they want the president to back off that as well, the president has backed off on the tariffs that were supposed to go into effect today, so theres no increase in tariffs there but the chinese are talking about the tariffs that are supposed to go in effect in december. I dont know why the chinese think they have upper hand here given the fact that, you know, just because the u. S. Said they werent going to put the tariffs, you know, raids the raise the tariffs for today, but we didnt get anything done with this deal. We didnt, im surprised that we are talking about the december 15th round and when we were sitting here we were talking about the fact that banks on wall street, okay, 15th tariffs, yeah, more than likely we will impose the tariffs and just to connect all the dots, this means pretty much every single good coming from china to this country, if we do these on december 15th will be taxed at some level. Thats worth noting as we head in Christmas Holiday season. We have a beat on jpmorgan and thats why the market is trading up. Revenue is above expectations 29. 3 billion versus 28. 49 billion and youve also got earnings, on earnings was for 2. 45 a share but looks like the stock is trading up and the numbers are better than expected, we want to talk more about earnings right here as we digest the jpmorgan numbers that are just hitting the tape, joining us cfr director ken, thank you so much for joining us. Great to be here. Maria what do you think the drive of jp quarter were . Its the consumer, we are seeing strength in lending and other areas, mostly the consumer, also commercial lending is good, the area that we want to see is Capital Markets. The Third Quarter is a transitional quarter, theyll be talking about september momentum and we whats we had for the rest of this year, so this is always a you know, its amazing to me, you know, we have 4 banks reporting today, i dont remember that in the last 15 or 20 years that they are all stacked together and if jpmorgan has a good print, i like that. Maria 30. 06 billion, a beat, so you have got a beat on revenue, beat on earnings for jpmorgan, how much of an issue is this wework problem, dierdre and i were talking about this blowup, jpmorgan has been a huge support for wework. Sure, the large banks like jpmorgan are diversified, Capital Markets matter, wework changes the psychology through ipo market and the Third Quarter, the ipo proceeds were down 40 , and the Equity Capital market underwriting was down 17 , jpmorgan is better, psychology changes, they will talk positively about the pipeline. If companies spotify did direct listing and you see more and more of the unicorns and now with wework blowing itself up i dont know what the sentiment is going to be as you mentioned but if more Companies Choose to do direct listing, accounting down the fees, what does that mean for Bank Earnings . Its not concentrated just Venture Capital technology trying to public, the Broader Market is public equity, trying to have exit strategy, levis strauss. The things have been baking too long in the private equity oven and by the time they come to market theres nothing left for the rest of us so does that any way to change that . It does, what im excited about is the Public Markets are smart, its a statement that we are smart, you cant hold onto something for 5 to 7 years, take the growth away and then say we will value it at 50 billion in the case of wework, it just doesnt work and thats a wakeup call for those who own these privately or even in the area trying to get out of these investments. Yeah, softbank has a big decision, do they die on this hill and sort of try to rescue wework, they poured 10 billion into it, im sure they are tempted but i feel like thats not the vision, that wasnt the job. Softbank with 100 milliondollar fund and youre being funded. Maria yeah, for sure, we have the numbers better than expected on all fronts, 268 a share, better than the estimate of 245 on jpm. Susan li has commentary from jamie dimon, susan over to you. Jamie dimon in this Earnings Release saying that the consumer in the u. S. Was healthy with growth and wages and spending, strong Balance Sheet, of course, in effect at jpmorgan with the low Unemployment Rate and also the consumer in his mind is offsetting the weakening Business Sentiment and really driving u. S. Growth right now along with Capital Expenditures slowing down as well in tariff environment and trade war with china. Now, i should point out that we do have jpmorgan, really interesting to see that they are looking at Third Quarter record Investment Banking number growth in this quarter given what happened with the wework ipo, who knows if it will come in 2020, one of the main underwriters and expected to bring in hundreds of millions of dollars in fees, thats not going to happen but still pretty Strong Quarter for the banking division. Maria susan, thank you, susan li with the latest, stock is up 3 quarters of a percent right now, ken, anything you want to hear in terms of what to expect in Fourth Quarter and 20, what are the most important issues to focus on jpm . Morning . Everyone knows about the consumer and rates, its about the corporate market, october 2nd, lowest ceo confidence in 10 years, the ability to say and talking with ceos as they traveled, markets are going to be better, thats what we would expect and thats going to be the investor debate. Maria stay with us, ken, you will be more, we will be right back with more, stay with us. An official message from medicare. Hey fred its medicare open enrollment. Time to compare plans. Were fine with what we have. Thats what the johnsons thought until they tried medicares new plan finder. The johnsons . We saved a lot on our prescription costs and got extra benefits. How bout it, fred. Plans change every year. Use the new plan finder at medicare. Gov. 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Im Maria Bartiromo, it is tuesday, october 15th. Your top stories right now. Earnings season kicking into high gear. Jp morgan with a beat on revenue, saying the u. S. Consumer remains healthy. Johnson johnson also without with a double beat, raising the full year guidance. Jpm up 1 and a quarter percent, Johnson Johnson up 2 and a quarter percent. Wells fargo, citigroup, all on tap, ahead of the open. Well have a rock and roll show with all these numbers coming out. Well have the numbers and full analysis as soon as they hit the tape. Markets are higher, dow industrials indicating a gain of 95 points, s p up 8 andahalf and nasdaq futures higher by 18 and threequarters point. There is uncertainty over the deal with china now and that certainly weighed on markets yesterday. The market closed off of the lows of the day yesterday. Dow industrial were down 30 points at the close, nasdaq lower by 8 and a third at 4 00 on wall street of. Global markets this morning are mixed. Take a look at european indices. The fq100 is down 21, cac is up 30, dax is up 57. In asia overnight markets were mixed. Take a look as you see, the best performer was japan. Nikkei average up 1. 87 . In china, inflation is surging. The Consumer Price index hitting 3 for september. The outbreak of the swine flu pushing pork prices up 69. 3 year over year. That is the reason that the chinese want to buy pork from the us and soybeans. Hunter biden breaks his silence, defending his foreign ventures but admitting to making mistakes. Plus the push for impeachment, Speaker Nancy Pelosi to hold closed door meetings as lawmakers return to cap l toll l this week. We have the latest. The streaming wars deepen, disney gives a sneak peek at the content coming to its service, as the major theater chain enters the field. Joining me to break it down, deirdre bolton, campus reform. Org editor in chief, cab bought phyllis and Cabot Phillips and jack otter. I love earnings season because it gives us a window into where we are. We have a lot of headlines. When you see the numbers, you get a sense of how slow the economy is or not slow. Third quarter earnings are expected to drop, if you look at this quarter versus last year at this time, 2. 2 . But on the upside, sales expected to grow, this is netnet, 3. 7 . Personally, i think thats a great sign. It shows competitive advantage, earnings you can always manage, profitability, somehow squeeze some department more than another. But sales are sales. Maria look at Johnson Johnson. Even with 100,000 plaintiffs, theyre getting sued all over the place, battling, losing a lot of cases in the courts, they raised their guidance and had better than expected numbers on j j. The stock is up 2 and a quarter percent. Jp morgan, we told you the numbs betters, the markets are reacting to the better than expected earnings. The stock is up 2 . Still with us this morning is cfra director of equity research, ken leon. The numbers were expected to be weak in the Third Quarter. Are we getting the first signs that were seeing higher than expected from the lowered estimates . Its all coming on the surprise in the nonnet Interest Income areas. So jp morgan, usually number one or two in underwriting, strong in the Consumer Lending and maybe u. S. Commercial lending is still strong too. But the breaking news from china, one has to pause and say, well, how much revenue is coming outside the u. S. Most of the banks its about 35 . There will be a lot of questions related to asia and for citi, which is also one of four banks reporting, that has a higher sensitivity. Maria you make a good point, because one of the gives that china made just in the last week of negotiations was it would lift the limits that Foreign Companies have faced for a long time in terms of owning your own bank, ownerring your own Insurance Company owning your own Insurance Company. People saw that as a real positive. Thats been talked about for a long time. Does that represent a nice runway for these banks . Its really important. Because when you think about europe and its been the same, its a slow economy, maybe to recession, and its not a Capital Marketsdriven market. For the banks to really grow, you need asia. Can you ask you one quick question . Did you see that move that maria talked about, will u. S. Institutions open more now on Mainland China and defavorize hong kong which has traditionally been the western, quote, unquote, center in the east. Maria such a good question. Its a great question. But its not in the next few years for sure. And even for the Hong Kong Stock Exchange to make a bid for the london Stock Exchange, just to be more global, that was their hedge, didnt work out. China has inside four major exchanges, but they do need hong kong because thats their gateway to more sophisticated derivatives and other instruments. Maria its no secret that london doesnt want to go anywhere near the Hong Kong Stock Exchange and merge because they dont want chinas authoritarian rule. That was done late in the day. London Stock Exchange had a major transaction with thompson reuters. Maria can we talk about jp morgan. We know that the consumer has been the best part of this economic recovery. Sure. Maria once again, the consumer is saving jpm because the corporate side has some holes in it with the wework situation. Yeah. Well, two interesting points that are totally unrelated. Wework, i think the problem with the weworks and the ubers and other companies is that they were literally giving you a dollar for 90cents, 80cents. With wework they would lease the space and chop it up. But they would lease it to you fors less than their cost. Uber, youre getting a 15 cab ride for 10 bucks. It doesnt scale. We shouldnt say all ipos are bad. A Software Company does scale and they can do well. Somebody referred to the fact that the market was getting smart. I think were there. Thats the Capital Markets. For the large banks theyve been conservative on commercial real estate lending. Certainly remembering the Great Recession, so their credit standards are toughest probably for commercial real estate. Maria were waiting on Goldman Sachs, waiting on citi. Give us your sense of what we should be focused on when the goldman numbers come out. Goldman, obviously still a number one, two or three tables in elite tables for Investment Banking. What you have to watch is the quality of the results, the quality of tensioner. The earnings. Last quarter it was a segment 25 of revenue called investing and lending. Thats their proprietary arm. That made q2. Lets see what q3 is. Theres been more talk about diversification. This is a really smart management, new management, but it marks the pathway. You have to remember with goldman or morgan stanley, more so than larger banks, trading commission. Of last week we had schwab. Trading commission is more institutional driven but theres a component that is still retail. Is it smart maria disrupting the Financial Services industry for decades, they did it two weeks ago. I was going to ask, going from an institutional, somebody who serves institutions versus somebody who is serving institutions and retail, how is that going for goldman . You alluded to markets. Back to goldman, markets gets a lot of attention. Theyre making acquisitions in Asset Management and areas where they have recurring revenue, cash flow. If you have that consistency, you get a higher valuation. Maria great stuff. Goldman sachs estimate 481 a share on revenue of 8. 31 billion, that stock is up going into the numbers. Were waiting on that. Ken, great to have you this morning. Thank you. Maria thank you so much. Lets slip in a short break. When we come back, charles plosse on trai trade uncertaintd the Federal Reserve. And also kim strassel is here on the impeachment inquiry. Dick bovee is here, reacting to Bank Earnings and kentucky senator rand paul on the syrian, turkey conflict, hes become a real adviser to the president on syria. Well get into that. Plus, hunter biden breaks his silence, were going to talk about it, sounding off on the controversy surrounding him and his Fathers Campaign for president. Well tell you what he said. 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And i dont wait when i return, thanks to drop go. At national, i can lose the wait. And keep it off. Looking good, patrick. I know. vo go national. Go like a pro. 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. Well, hunter biden admits he made a miss a take. Lauren simonetti with details now. Lauren the 49yearold son of the former Vice President and now 2020 hopeful joe biden admitting he made a political mistake. Watch. Do you regret being on the board to begin with . No, i dont regret being on the board. What i regret is not taking into account that there would be a Rudy Giuliani and a president of the United States that would be listening to this ridiculous conspiracy idea. Did i make a mistake . Well, maybe in the grand scheme of things, yeah. But did i make a mistake based upon some ethical lapse . Absolutely not. Lauren he said he will step down from the board of the Chinese Private equity firm at the end of the month as part of a pledge not to work on behalf of any Foreign Companies should his father win the white house. A massive recall hits taco bell, 2. 3 billion pounds of seasoned beef has been removed from restaurants in 21 states because it may have been contaminated with metal shavings. This issue reported saturday. No reports of injuries. Disneys new streaming service launchs next month. The three hour trailer is already you out. It shows all the movies and shows subscribers can look forward to when the Service Becomes available november 12th. And competition for streaming is growing. Amc theaters becoming the first Movie Theater chain to enter the Home Entertainment business, launching a video on demand service that will be available to members of its Customer Loyalty program, amc has a catalog of over 2,000 fill manies that members can buy or rent and of course you earn loyalty points so this encourages you to actually go to the Movie Theater. So its a winwin. You got to like that. Maria thats good. We have to leave our houses . What . Maria we have such great tv. So many choices. Maria lets talk hunter biden for a second. The fact he says im not going to go on any foreign boards or have Foreign Relations if my fathers president , its admission that its improper. Its tough to say theres nothing wrong with it, however, if my fathers president , i wont do it again. Interesting point also, anything he is saying, joe biden, his campaign are giving him directly to say. Thats the clear mes mess averai think this is clearly coming from the campaign. This draws more you attention to the fact that joe biden and his family have benefited greatly from capitalism, from business, theyve made millions of dollars from crony capital i which is hugely unpopular with the electorate. Theres democrat voters trying to run away from wealth, from capitalism, saying its evil to be rich, then you have the main candidate reaping benefits from the system. This will be used by donald trump politically speaking and other candidates. Well see it come up on the debate stage. Maria who pokes him about this tonight on the debate stage when theyll all be there, 12 candidates tonight are going to face off for this next debate and the fact that he traveled with his father, then a sitting Vice President , on air force 2 when his father had official business in china and then came home and 10 days later gets an injection of 1 billion which turns into 1. 5 billion from a Chinese State bank. Yeah. I think bidens initial reaction was oh, its just my kid, leave my kid out of it. Hes a 49yearold man. When hes making this kind of money, its no longer safe to say, well, there was no reaction there. Iif you ask who will bring it up tonight, you would think Elizabeth Warren, given the attacks shes made against other candidates, accusing them of cronyism, of capitalism, also as well. I dont know if she will. Shes kind of gliding right now. I dont know if she wants to make an enemy with biden because shes the rising candidate right now. It may be one of the lower candidates, trying to punch up to get biden to react. Well wait and see. Maria bernie came out yesterday and said Elizabeth Warren is a capitalist. Which will probably help her with independents. Maria shes handled the campaign really well. She has. Its become a bit of a joke. I have a plan for that. People are responding to that. Maria the banks ar quaking if their boots if shes the candidate. Big tech as well. Maria big tech and banks. Bank earnings this morning, full swing, Goldman Sachs expected out moments from that. Stock is up 1 and a quarter percent ahead of the quarterly numbers. And celebrating american made, the countrys oldest brewery on set later this hour. Dont miss it. Back in a minute. Fighting back them butterflies. Its sir, we want the its knocking heads and talking trash. Its shrinkin slinging mud and grass the lexus es. Every curve, every innovation, every feeling. A product of mastery. Lease the 2019 es 350 for 379 month for 36 months. Experience amazing at your lexus dealer. Liberty mutual customizes your Car Insurance, hmm. Exactly. 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 beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. Maria welcome back. We are looking ahead to the opening bell where we are expecting a triple digit rally at the start of trading. Dow futures up 1 103 points, wee Getting Better than expected earnings this morning. The markets ended the session slightly lower yesterday, investors skeptical about the u. S. China trade deal and whether issues over intellectual will be addressed by the trump add medicine vacation. Were looking at better than expected earnings in the Banking Sector. Jp morgan reporting a better than expected number as did Johnson Johnson. Joining us now is charles plosser. Thank you for being here. Charles, can you hear me . Looks like we have an audio problem. Well get back to him in a second. What i want to ask the former president of the philly fed is where are we in terms of the growth story. How much of this trade uncertainty is impacting overall growth and we know that the consumers is strong but is he seeing it as well. Whats your take on where we are. Theres an interesting thing happening in markets right now which is that we are lowering Interest Rates and increasing spending 10 years into an expansion. Thats extremely unusual. Normally you see the deficit shrinking, you would see Interest Rates rising and people say the fed is what pushes you into recession because the rates are too high. Does that mean the longest expansion on record will get even longer. Is he here . Will the longer expansion than ever keep on going . This is whats called sorry to get geeky on you, its called pro cyclical stimulus, the stimulus is coming at the same time the expansion continues. Well see where it ends. Maria charles, are you with us . Yes, i am, maria. Maria terrific. A apologies for that issue with your audio. Were glad youre here. Whats your take on the growth story today for the u. S. Economy . Taking into consideration this uncertainty that were talking about every day over trade policy. Well, i think the basic signs of the economy are still pretty good. Yes, theres been softening in manufacturing in particular because of the trade issues and the uncertainty. Consumer still seems to be holding up pretty strong. So i think the economys still doing okay. But there remains a lot of uncertainty out there as weve all talked about and i dont think that uncertainty is going to go away very quickly but well have to wait and see. Maria in terms of the Federal Reserve and what it can do here, you know, weve had two late summer rate cuts, the fed expected to you put in place yet another cut coming up in the next two weeks amid this potential global slowdown. Were waiting to see if this is actually going to take effect. This is one criticism that what can the fed do in the face of the trade uncertainty . Do you think the fed cutting rates is actually going to impact this, deirdre . Honestly, id like to hear from our guest on that. I think i the fact is, theyre cutting rates at the same time theyre increasing liquid at this and that was a liquidity and that was a reference that our guest from stifel made earlier. He seems optimistic on the next 12 months. I dont know that weve ever seen this before, an 11 year bull run and expansion at the same time that were continuing to inject im not going to call it stimulus, but flexibility into the system. I would call it stimulus. Theres a lot of spending going on. The other question with low rates is, does one quarter point really make a big company say okay, now i can afford to build that new factory. Rates are so low right now. How much lower can they go. I feel like for Business Leaders it always comes down to confidence. If they feel confident, then they spend and invest and hire. I think a lot of this u. S. China trade war, what that has done for the past 18 months is provide another element of instability. Im not saying it robs leaders of confidence but it gives them perhaps more pause than they otherwise would have taken. In that way, i do think the feds cutting may mitigate some of those concerns or maybe some of that unwillingness to invest and hire. Maria were waiting on Goldman Sachs earnings. Thats going to give us a good window in terms of the Banking Sector. There was an event in london where the st. Louis Federal Reserve president said the u. S. Economy is slowing. Hes calling for insurance rate cuts. Do you want to get rate cuts in place before we see a slowdown deepen. He rob arnott runs a compy that creates models for etfs. He makes a point you can never see a recession coming before it gets there. The fed starts cutting when its too late, like the recession is on the way. He thinks they caused it by raising rates. Its possible we did get ahead of it this time. Thats the optimistic view. Thats the optimistic view. Ill take the other side to be devils advocate. The pessimistic view is were cutting when we dont need to and when the recession arrives theres no more arrows in the quiver. Im not going to argue with you. Maria weve got a miss on Goldman Sachs, the earnings coming in at 4. 79, the estimate was 4. 81. Lets go behind the headlines with susan lee as the stock trades down on the Goldman Sachs Third Quarter earnings. Susan. Looks like bottom line, theyre a bit of a miss. In terms of revenue numbers, its pretty much in line, 8. 32 billion is what we got in the quarter, estimates are calling for 8. 31. Pretty much in line. Dont forget, Goldman Sachs is different from jpm, more Investment Banking pure play. They did see positives in the quarter with revenues and equities, they say higher due to higher commissions and reflects increased client activity because for a long time we were looking at stagnant trading in the markets, going one way. But higher activity means more fees for Goldman Sachs. Tough quarter, though, for gs because they did have to write down their 1. 4 stake in wework, down by a quarter of a billion dollars. They also had to write down according to analysts their stakes in uber, trade web, head hunter group, a quarter of a billion dollars as well. Not Good Investments for Goldman Sachs. Ill be interested to hay hear t they say about the partnership with the new apple card. Maria we called it at the top of the show, this wework situation is impacting things at jp morgan as well as Goldman Sachs. Youre seeing a bigger hit on Goldman Sachs with the numbers missing estimates. The partnership that susan alluded to, with apple and the apple card and our guest from cfra was talking about grueled s move into Retail Banking for people, not institutions. I felt like that deal with apple was one more way for goldman to get data, for one. Maria thats true. For two, let itself be a little bit more known among average consumers and bankers, normal main street people, not institutions. Another move they made in that vein was to buy united capital, an independent advisory firm, not a big move for gold b man. Part of that diversification. To the man on the street, its morgan stanley, its not its a wealthy individual but theyve done a brilliant job of they decided at the time of the crash i think that was their future was the advisory business, goldman taking a step in that direction. Maria stock is down three quarters of a percent right now. Were back with charles plosser. Let me get your take on the health of the Banking Sector today. Obviously, these banks have more capital. Theyre holding more capital than they want to. But it has been a good thing when you look at the stress test. Do you think weve overdone it in terms of the Regulatory Environment on the banks with regard to their capital rules . Well, i think they clearly are more healthy. I think capital is up and i think thats a good thing. However, i do think that the Regulatory Environment has had some unintended coverings consen the side of ex of micro regulation side effects of micro regulation that goes on, for liquid at this and other things banks have to do. Regulation is part of the source of the problem we had in the repo market turmoil a couple, few weeks ago and i think the fed needs to be looking at the plumbing and how their regulatory rules interact with the functioning of the markets, and particularly the money markets in particular. I think theres some issues that need to be resolved. I dont think just throwing more reserves at the Banking System is going to solve the kind of problems that we have. Maria you make a good point. That was that one night when rates in the repo market went from 2 to 10 overnight. There was not enough liquidity. A lot of people say the fed should have seen this, there wasnt enough liquidity there. You say its too stringent rules on the capital. Well, its partly that. Its liquidity requirements and its the fact that the large Balance Sheet the feds trying to operate in has undermined what used to be the fed funds market, where banks traded funds with each other. And thats not functioning much anymore because theres so many fed funds out there that the banks really dont worry about trading very much. I think thats contributed to the inability for reserves, which is what the fed supplies, to move around in the marketplace and meet these shocks that come in. So i think its a combination of factors that are just throwing more reserves isnt going to solve the problem. Maria its really great analysis from you on that. Before you go, we have another fed meeting in two weeks, i think its 70 that the market thinks well get another rate cut. Assess the backdrop for us, charles. Is that warranted right now given the fact were looking at a 50 year low in unemployment and the consumer is where it is . I know that cap ex spending has slowed down quite a bit and theres uncertainties around trade. My own sense is the fed may very well cut rates again. Im not convinced of that. I think its far from a foregone conclusion. I think the problem is, is that, yes, cap ex spending as slowed and softened, partly due to uncertainty. I dont think cutting rates is going to solve that problem. Its not going to make firms more confident about the future. Its not going to make get rid of the uncertainty and so im not sure it would have much effect, even if they did it. So i think i dont think another cut is far from a foregone conclusion at this point and markets might be surprised at the reaction of the fed. Maria all right. Well leave it there. Charles, we want to apologize for any audio issues we had this morning. We hope youll come back soon. Thank you, sir. Thank you. Maria well be back with kim strassel from the wall street journal. Stay with us. This is the family who wanted to connect. And find inspiration in new places. Leading them to discover were woven together by the moments we share. Everything you need, all in one place. Expedia. Fidelity now has zero commissions for online u. S. Equity trades and etfs. And fidelity also offers zero account fees for brokerage accounts, plus zero minimums to open an account. And only fidelity offers four zero Expense Ratio index funds directly to investors. With all of those zeros, there are zero reasons to invest anywhere else. Fidelity. So maybe ill win saved by zero maria welcome back. Our top story this half hour, the high stakes whistleblower standoff, Congress Returns from recess today. House Speaker Nancy Pelosi expected to hold a closed door he meeting for an update on the impeachment inquiry. President trumps former russia advisor testifying for nearly nine hours yesterday. It was all closed doors. Sources tell fox news she had high praise for the ousted u. S. Ambassador to ukraine and matt gates getting the boot from the hearing because hes not on one of the committees conducting the investigation. Gates slammed the call last night on hand a hannity watch. Today, adam schiff removed me from the deposition he was taking. This is proof that democrats cant win a fair ferrell ex, fd theyre stacking the deck. Theyre not allowing us to call witnesses. If republicans had a witness list, it would be adam schiff who would be a fact witness because of the collusion that he was and his staff were engaged in with the whistleblower that they lied about. Were going to keepfighting to get to the facts here. Maria joining me right now is fox news contributor, the author of resistance at all costs, author kimberly strassel. Kim strassel, great to have you on the show this morning. Its great to be here. Maria thank you for joining us. Youve done such a fantastic job covering all of this, you are our hero on this program. We talk about your op ed every day, actually. Tell me about your reaction to what is taking place now for us before we get into the book, in terms of this inquiry and all of these testimonies that are happening behind closed doors. We just saw it today, there are endless stories with leaks about what fiona hill said in this testimony yesterday. We dont really know what she said because its all being presented, again, behind closed doors and then you see democrats spinning a narrative. This is really high stakes. Its impeachment. The American People deserve to see transcripts, they deserve to see whats going on so they can make their own judgment about what happened. Maria youve covered the origins of the russia investigation so well. This has been a story that i care about deeply. Youve been great on this. Maria thank you. I feel like on any side of the aisle, have you to be upset when you see a group of people, whether from the fbi or cia, trying to put their finger on the scale and use the tools that we use for terrorists and youre seeing more of this with this obstruction. Whats your reaction to whats taking place . You made a great point, which is that everyone should care about this deeply and there would have been a time when everybody did care about this deeply. Some of us still do. Just being able to say the fbi started a counterintelligence investigation into a sitting be president ial campaign is an as astonishing statement. The more we find out about how it actually did so and the abuse of power that was going on we lettered heard some of that from the already heard some of that from the ig. The Inspector General put out a report on comey and mccabe and made it clear. This is the kind of damage im talking about in the book. People like to say donald trump is destroying institutions and democracy but look at the loss of faith in the fbi and doj. That is a result of folks who a abuse their power and americans say because they didnt like this president and it scares americans. Maria in the book you write that its not just the left, the media has also jumped onboard and youve got the media driving the bus on this in terms of focusing on some things but not focusing on other things. The media refuses to look at the origins of the russia investigation, where we know that they inserted donald trump into the story of russia meddling into the United States. No, i have a whole chapter on this, about all the ways that they lowered their standards, using anonymous sources. You and i both know some of these have to be the people that are accused of wrongdoing, but they present them as neutral, just running with false accusations. What bothers me, i think were seeing a repeat of this now with the ukrainian story. America suffered through two years of the mueller investigation, this hyped, what was a hoax in the end. And that was driven in large part by democrats leaks and media being involved. I think were seeing a repeat now. Its why americans need to be able to see the train transcripd see whats going on. Maria lets not forget Brett Kavanaugh and what happened there where there was resistance at all cost, where the trump haters didnt want him to have any victory and didnt the left spend 30 hours with Christine Blasey ford to help her carve and shape her hearing and her testimony. And to get rid of due process along the way. Maria bingo. This is the thing, you go through the list. We have a broken Senate Confirmation process because of this. We have the lowering and demeaning of impeachment standards because of this. Weve got a judiciary thats engaged in all kinds of normbreakings, national injunctions, right and left. This is a departure from anything weve had. New Media Standards being lowered and then lack of trust in the media, in our civil bureaucracy, in the fbi and doj. This is because of the actions of people that got the impression that just because they didnt like donald trump, that they were allowed to break any rules that they wanted to in their effort to get rid of him. When you have a mentality like that, thats how you end up breaking core and born things in this country. Maria as you write, breaking america. Its just not right. If you believe in our constitution, you should be outraged by what took place. Now, i gave an update last night on twitter to say the ig report now im hearing is going to be out at the end of the month, because they are still doing classifications. Theres going to be a lot in the ig report, i initially thought it would come out this friday, its not coming out this friday because theyre classifying things. Do you think were going to see accountability here . Do you think well see actual prosecutions and indictments for those people who tried to take donald trump down and used the tools that we use on terrorists like informants and like wiretapping. The thing i hope most of all is we simply see most of the report. You mentioned the classification. Dont forget, when you go back to when House Republicans were doing their investigation, the incredible foot dragging that went into this and how they would not like doj, fbi, all the intelligence agencies, they didnt want to give up any information. I hope we get the information. I appropriate at this confident were going to get some accountability. Maria tell me about this book in terms of the most important piece of information that people need to take away from this book. Because theres so many legs to this story. And you write all about it in the book. But give me your sense of what readers should take away with. This is a chance to step back and take an objective view at the last three years and talk about where the real damage is being done and we all need to know that, especially as we go into an upcoming election season, about the real narrative here and what we risk in this country. Maria and one of the real damages, i think, is the fact that our leadership, the fbi, the cia, are not focusing on the real wrongdoing. When you talk about obstruction, am i wrong to say Hillary Clinton used a hammer and bleach bits to get rid of her emails. We have a double standard. Maria is that obstruction . Hello . When i takee to americans talk to americans, thats the most frustrating thing for them. Apparently its perfectly okay for the Hillary Clinton campaign to funnel russian information to the fbi to be used against a president ial campaign but the president just calling the ukraine is an Impeachable Offense . You cant have it both ways. This is the frustration for many americans. Maria the same thing with hunter biden. Hes breaking his silence, openly admitting to making a mistake in th youve ukraine de. People keep using the word corruption. Aside from corruption, the fact that hunter biden stepped down from that board is admission that this just smells bad. Its a conflict of interest. He should never have been doing this when his father was Vice President. And i think that the bidens essentially acknowledge that this week by his decision to step back and say i wont do it if my dads president. Maria its incredible that from the moment donald trump was inaugurated, the Resistance Movement was as strong as it was. But the Resistance Movement has only gotten worse. How do you think this president s legacy will go down in terms of how we look at this threeyear period that you write so well about . Well, again, it depends on how much damage ends up being double is there going to be an Impeachment Vote against him . Is that going to be the asterisk by his name . Weve never seen anything like this before. Again, we all have the ability and the right to disagree with each other in politics. It doesnt mean you dont have to follow all of the kind of rules that weve set out about how you handle politics. And so i think that theres going to be just as many history books written about the reaction to him as his actual governing. Maria this is an important book. It is an important history book. Because this actually happened as extraordinary as it sounds. You write and its like you cant write this but you did and in closing, tell me in terms of what you want to see in terms of the wrong doers from the russia probe. Who do you think the mastermind of it was. Look, all of the leadership of the fbi and then the outside groups too. Fusion gps, by the way, we heard theyre going to put their own book out here. Maria unbelievable. Jim comey has his own book. Your reaction to him going on tv and Andrew Mccabe getting a job on cnn. He has criminal referrals. This is unprecedented too. Not that members of those communities are acting as analysts, also one of the reasons people feel frustrated that theres no accountability is because theyre being treated as heroes when in fact this guy was fired from the fbi, hes a disgrace. Maria thats exactly right. Kim strassel, get the book, the book is resistance at at all costs. Well be right back. H here people first gathered to form the Stock Exchange 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. 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. Yeah, have fun thanks to you, we will. Aw, stop. This is why voya helps reach todays goals. All while helping you to and through retirement. Um, you guys are just going for a week, right . Yeah thats right. Can you help with these . Oh. Um, were more of the plan, invest and protect kind of help. Sorry, little paws, so. But have fun send a postcard voya. Helping you to and through retirement. Maria welcome back. The eus brexit negotiator says a deal with the u. K. Is possible this week. Lauren simonetti on headlines now. Lauren the main challenge now is to turn british proposals on the irish border issue into legal text. Eu leaders are meeting this week as the october 31st deadline looms, 16 days away. The chief brexit minister made a last minute trip to lex emburg. Pilots with Southwest Airlines dont expect the 737 jet to fly until the end of january. Southwest is the largest operator of the grounded jets. The pilots union sued boeing last week accusing it of deliberating misleading it bout the planes. Maria lauren, thank you. Americas oldest brewery in business for nearly two centuries. The women behind the brand. Join me on set as we celebrate made in america. Stay with us. As a Financial Advisor you have to listen. You listen to your clients goal of sending her daughter to the music school of her dreams. And you help her turn it into reality. Principal. We can help you plan for that. Start today at principal. Com. 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. thei need all theally breaks i can get. One. Line . Liberty mutual customizes your Car Insurance so you only pay for what you need. Thats a lot of words. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. 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 welcome back. Well, we are toasting americas oldest brewery this morning. Theyre celebrating 190 years of brewing right here in america. The company is producing 2. 6 Million Barrels of beer every year, becoming americas number one craft brewery. Joining us right now is jen yingling and debbie yingling. Its great to have you on the program this morning 678. We love Family Businesses here and we also love made in america. Tell us about your business. Thank you. We are celebrating our 190th anniversary this year. Our brewery was founded by migrate, great, great grand father. Maria youre two of four sisters running the operation. How is it to run being women in this male dominated industry and running the family business. Its very special for us, getting to work alongside your family and knowing the history that our generations have worked there before us, our grandfather, still there with my dad. The Beer Industry is typically male dominated. But its something that were persevering through. Maria how have you broken through in this male dominated industry . We have seen up to a third of brewers in the industry today are women. We have a partnership also with Pink Boot Society where they enable and they educate and empower women in the brewing industry. I think that really resonates with us, a sixth generation. Maria go ahead, jack. Im interested because budweiser and miller started dominating the industry and put a lot of the smaller guys like you out of business but then in the 80s you surged and youre like the original craft brewerrer and now it seems like craft brewing is the thing and youre on top of the wave. How did you start it. Thats really accurate. When our father took over the brewery, him and jim cook they were the pioneers of the first craft beer revolution. Now, youre just riding the wave. Are you national or just east coast . Were in 22 states. We kind of joke internally. Its taken us 190 years to get into 22 states. But i think we survived through innovation. Our lager brand was number one and our recent collaboration with hershey. Maria tell us about the collaboration with hersheys. You got a gigantic hersheys bar here, my favorite chocolate barbie the way and the porter beer with the hersheys. What is this. We were super excited to partner with hersheys. An iconic chocolate company. Were both in pennsylvania. We came up with our collaboration. Our dark brewed porter is one of our original beers, almost 200 years old. Its a great combination with the dark l malt malt, very delee taste to it. The first beer i ever had was a yingling. What are you guys doing to market and to shift to their needs. Innovation we have with the Hershey Chocolate porter, its hitting millennials, for all legal drinking age consumers, more of an upscale, premiumized beer, you can see the chalice we have here. Maria how cool, a chocolate aroma. Where do you produce . We produce we have two breweries in pennsylvania, centrally located and we also have a brewery in tampa, florida. Maria thank you so much. Congratulations to you. Thanks for having us. Maria great to have you. Check out the new porter beer there. Well see you soon, jen and debbie. Stay with us. We have breaking news, Hunter Bidens son breaking his silence. Well talk about that when we come back. Ful. 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Hey fred its medicare open enrollment. E. Time to compare plans. Were fine with what we have. Thats what the johnsons thought until they tried medicares new plan finder. The johnsons . We saved a lot on our prescription costs and got extra benefits. How bout it, fred. Plans change every year. Use the new plan finder at medicare. Gov. Comparing plans really pays. Look how much we can save. Maria welcome back to tuesday morning. Thanks so much for joining us. Im Maria Bartiromo. It is tuesday, october 15th. Your top stories right now, 8 00 a. M. On the east coast. Earnings season kicking into high gear today. Goldman sachs out with a beat on revenue. A miss on earnings. Taking a hit from the lower fees from advising deals and weakness in underwriting. Goldman sachs shares down 1. 33 . Jpmorgan, beat expectations on revenue. Jamie dimon saying the u. S. Consumer remains healthy. Jpm stock up 2 right now. Johnson johnson out earlier with a double beat on earnings and revenue. It also raised its full year guidance despite 100,000 lawsuits coming its way. Jnj shares up 2 . Citigroup is out right now, also beating expectations, as you see on the screen. Wells fargo also coming out right now. We are having a busy morning with all these earnings hitting right now. Citigroup beating earnings expectations at the actual coming in revenue, 18. 57 billion versus the estimate of 18. 5. We will check those stocks. Citigroup shares right now are down 1 . Lets get to susan li with these numbers hitting the tape right now. Susan . Susan yeah, absolutely right, maria. Looks like we do have a beat on the bottom line when it comes to profit. 2. 07 is what we have per share, higher than analyst estimates calling for 1. 95. Also, revenue coming in stronger as well, 18. 6 billion. Thats higher than analysts called for, 18. 5 billion. I think for citigroup, we are looking at credit losses. Thats whats dragging down the stock at this point. Third quarter credit losses were down to 1. 75 billion. Thats a big deal, especially for more of a consumer name like citi, which is still trying to rifle through this slowdown in the Housing Market and also with this Interest Rate volatility environment that were looking at given that we saw two Interest Rate cuts since july this year. Back to you. Maria thank you so much. Susan li with the latest there. Interesting to see citigroup shares trading down, even though you have a beat on revenue and on earnings. What do you make of this . Yeah. I need to see the numbers to say i dont want to jump here and see whats going on, but obviously the market doesnt like something. That was a nice eps beat so have to find out why the markets unhappy. I saw the tick up a little. Maybe it was getting close to even but its down. Maria the International Story is real critical here, because you see the rest of the world slowing down, and certainly europe being unable to generate much growth. Yeah. Obviously thats a big problem for all these multinational banks. Negative Interest Rates are, you know, impossible to have any Net Interest Margin and if you look at the european banks themselves, its been devastating. Deutsche bank frankly could be on the verge of death. So the u. S. Banks by comparison have done brilliantly since the Great Recession but its still a struggle. Maria yeah, the stock is back and forth, positive and negative, on citigroup it was just positive a second ago. Joining us is odion Capital Group chief financial strategist dick bove. Always a pleasure to see you. Thanks for being here. Lets attack all these numbers. First, citigroup, whats your reaction there . Then i want your take on the others we saw this morning including jpmorgan as well as citigroup and goldman. I think the key issue, you are looking, you know, i have been able to look at three of the four companies, is that they are not increasing their core income. In other words, if you assume the core income of a bank comes from selling more loans, having higher margins and having reasonably good loan quality, in the case of jpmorgan, that was terrible. In the case of Goldman Sachs, it was worse. In the case of citigroup, it isnt quite so bad as the other two. If youre looking at variable income issues such as did they do a lot of ipos during the quarter, trading was pretty good, did they make a lot of money on their securities portfolio because Interest Rates went down, all that part of their earnings are pretty good but the things that are pretty good are not sustainable. The things that are not doing well are sustainable, and therefore, i would say that these earnings are somewhat concerning. Maria one issue for this quarter was some of these ipos that went bellyup or went flat. I mean, wework is a perfect example, given the support jpmorgan has given this company, you got to expect that its going to have an impact but look at jpm shares, up 2 right now. Doesnt look like the market cares about that. Was that a significant issue for you . Goldman sachs obviously also getting impacted. Yeah. Yeah. No, actually, theres something called debtor in possession financing. Thats probably what jpmorgan is doing with weworks. Remember, 5 billion is less than. 25 of the assets of Jpmorgan Chase so it sounds like a big, big number but if you got, you know, close to 2. 5 trillion worth of assets, its not a big number. The key issue with jpmorgan is their loan volume has not increased now for a few quarters. Thats very concerning, because either jamie dimon expects a recession and therefore, is pulling back his lending offices, or his company is losing market share. The second thing thats concerning is that in the case of jpmorgan, their loan losses have skyrocketed. Thats a very bad sign. The third thing which is of concern is that the companys Net Interest Margin has been down both on a quarter over quarter basis and year over year basis. And thats bad. So in other words, if youre looking at the core business, its not great. In the case of Goldman Sachs, youve got a company which is in total disarray right now. In other words, they have gotten rid of one out of every six of the top managers of that company. Theyve got a new ceo, cfo, cio, coo, you know, whatever c you want to use, they got a new one. You know, in total turmoil, because Lloyd Blankfein and gary cohn took this thing in the wrong direction for years and David Solomon understands that and is trying to turn this ship around, to use the cliche, in what is pretty icestrewn waters. He will have a lot of trouble doing it. The fact they could do so well in terms of their Investment Banking activities both in terms of ipos and in terms of mergers and come up with numbers like this is terrible. Its just not good at all. Maria all right. I want to hear more about this Goldman Sachs story and also get your take on where things go from here, but first lets get to susan li. Shes got the core numbers on the wells fargo quarter and apparently, theres a miss here. Over to you. Susan yeah. We wanted to reconfirm this before we got the numbers out to you. Wells fargo, bottom line here, profits missing estimates so 1. 07 is what they put in for the quarter and also, looking for 1. 15. Now, on the revenue side, they actually came in stronger than expected, so were looking at a number of over 22 billion, much higher than analyst calls were looking for just around 21. 2 billion in the quarter. This is the countrys fourth largest lender. They are also anticipating a new leadership coming in next week as well. Charles sharpf will be taking over as ceo starting next monday. And this is also one of the largest mortgage issuers in the country and very important, given we have seen this slowing down in the Housing Market. I think this is whats helping the shares given the miss on the profit line is that Residential Mortgage loans, the originations actually increased in the Third Quarter from a year ago. Dont forget, this company and this bank has been handcuffed by the Federal Reserve. They are not allowed to grow their assets since 2018 until they can prove that internally they got things going right. Maria susan, thank you. Wells fargo shares down a fraction. Dick, you were talking about Goldman Sachs, this leadership, these leadership changes affecting this. This is also affecting morale and culture, is that right . I would assume so. In other words, you cant have, you know, this many top people being pushed out of the company and not have the people who were working for them also feel a great deal of uncertainty about what their positions are, where theyre going to go, do they have a job, what is their income going to be. I think that, you know, as goldman turns around, and i think what solomon is doing is absolutely necessary. This company was not managed properly for years, in my view, and the fact of the matter is that he had to make the changes. And hes doing it. And hes in this quarter, according to the press release, hes writing off a whole series of bad investments that the company made in this period also. Theyre investing and lending, their numbers were quite poor, so the net effect is its going to take some time for Goldman Sachs to get where people want them to be and this apple cart situation, i would probably be willing to guarantee you theyre going to lose money on it for two to three years if they ever make money on it. Maria i want to point out whats happening in the premarket. All these stocks are rolling over right now except jpmorgan. Wells fargo, citigroup, Goldman Sacks down. Would you buy any of these stocks right here . No. Not at the moment. I think i would rather see the market settle out before i would step up and start trading. Maria all right. We are grateful for your analysis this morning. Thank you. Thank you. Maria meanwhile, hunter biden has broken his silence. Joe bidens son sounding off on the controversy surrounding him and his Fathers Campaign for president. Blake burman is at the white house with more. Blake . Reporter good morning. There has perhaps been no bigger target of President Trump over the last few weeks than hunter biden, the son of the former Vice President , joe biden. The president has taken issue with Hunter Bidens business dealings in both ukraine and china while biden, his father, was Vice President. This morning, abc news on Good Morning America is airing the first interview with hunter biden since he has been a focus of President Trump. Hunter biden says that he was qualified to sit on the board of a ukrainian gas company. Hunter biden was asked about this. He says while he sat on the board of amtrak for a handful of years, sat on the board of the u. N. World food program as well, was an attorney for a free Prestigious Law Firm and was as qualified as anyone else to sit on the board of that ukrainian gas company. Hunter biden as well said essentially that he regrets that this story has taken into effect what it has and that its generated all the headlines that it has, but he was adamant in this interview that he has done nothing wrong. Do you regret being on the board to begin with . No. I dont regret being on the board. What i regret is not taking into account that there would be a Rudy Giuliani and a president of the United States that would be listening to this ridiculous conspiracy idea. Did i make a mistake . Well, maybe in the grand scheme of things, yeah. But did i make a mistake based upon some ethical lapse . Absolutely not. Reporter hunter biden announced this week he would be stepping down from his role in a Chinese Private equity firm. President trump has been claiming that Firm Received a 1. 5 billion investment. However, the Washington Post fact checker has said it was a mere fraction of that. When hunter biden was asked about it as well in this abc news interview, he said at one point quote, this has no basis in fact in any way. He went on to say quote, no one ever paid me 1. 5 billion. If they had, i would not be doing this interview. Maria, so far, no response from President Trump this morning, who has often taken to twitter to talk about hunter biden. Hes done so as well at campaign rallies. Refresh the tweet machine, i guess, to see what the president has to say about all this. Maria blake, thank you. Blake burman. We will probably get more info on all of this tonight, with the debate. Youve got a debate where 12 where 12 people will be onstage tonight. It has to come up. This is the first debate where joe biden has shown signs of not being the true undoubted frontrunner, with Elizabeth Warren rising above him in the polls. I think theres blood in the water where candidates are realizing hes not invincible. Remains to be seen who will bring it up but there is an admission in that exact statement if theres not a problem, again, if theres nothing wrong with it, why not come out and say i would do it again because theres nothing wrong with it. Its an admission of guilt when you say i wouldnt do it if my dad was president. Maria there is controversy swirling around nba superstar lebron james. Hes condemning the Houston Rockets general managers tweet on the hong kong protesters as quote, misinformed. Plus, women in the work force. I speak with two female entrepreneurs on the biggest obstacles facing women looking to move up the ladder. Back in a minute. Driverless cars, or trips to mars. No commission. Delivery drones, or the latest phones. No commission. No matter what you trade, at fidelity youll pay no commission for online u. S. Equity trades. This is the family who wanted to connect. N to go where they could explore and experience adventure in unexpected places. Who were inspired by different cultures and found that the past can create new memories. Leading them to discover were woven together by the moments we share. For everywhere you go, expedia has everything you need, all in one place. 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. Nba superstar lebron james speaking out on the nbas standoff with china. Lauren simonetti with headlines. Lauren james was in china for the exhibition games between the lakers and the nets, amid the controversy surrounding the tweet from rockets general manager darryl morey. He expressed support for the protesters in hong kong. Well, that tweet having lasting effects. Even after being taken down, the nba was taken off the air in china and many events surrounding the exhibition games were canceled. This is what lebron tweeted. My team and this league just went through a difficult week. I think people need to understand what a tweet or statement can do to others and i believe nobody stopped and considered what would happen. Could have waited a week to send it. Well, james went on to say hes not discussing the substance of that tweet. Others can talk about that, he says. The nba remains off the air in china, but the games are being streamed online. Harley davidson pulls the plug temporarily on its First Electric motorcycle. A charging problem stopped production of its live wire bike. Harley says it doesnt know when production will be back. Asking customers and dealers to only use a professional charger available at dealerships. Dont charge this in your home. The company says the bikes, however, still safe to ride. Stock under pressure this morning. Booking starts today for, get this, goodyears team is out with an airbnb list in giving College Football fans a chance to spend a night on the iconic blimp. This ahead of the notre dame michigan game. The price is 150 a night. The promotion all part of a celebration of College Footballs 150th anniversary. Two can stay in that blimp comfortably. I think its great. Maria if its me, thats zero. Im not going anywhere near a blimp. Thats a hard pass for me. Im intrigued on the Harley Davidson thing. Half the reason people buy a Harley Davidson is so they can hear the engine roar. Maybe the little bzzz doesnt have the same impact as the revving of the engine. There was some weird thing even with washing machines, i remember people were like if i cant hear it it means its not working. A couple companies redid their models. I have that problem with the dishwasher. I dont know if its on or not. Im sticking my ear up against it. Maria its a big week for the big banks. Jpmorgan, Goldman Sachs, wells fargo, citigroup releasing quarterly reports today. We were all over it. We are checking the stock prices. The only one still up is jpm. When we come back, we take a look at women in the work force. I will speak with two female entrepreneurs on the biggest obstacles facing women, trying to move up the ladder. Back in a minute. Liberty mutual customizes your Car Insurance, so you only pay for what you need. I wish i could shake your hand. Granted. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. 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. Women in the workplace. The fifth annual study tracking women in Corporate America is out today, shedding some light on csuite diversity and employment trends. One part of the survey finds increasing women in the csuite since 2015. The number of women in leadership positions increased from 17 to 21 . Joining us right now is lean in. Org founder Rachel Thomas and chief diversity and inclusion officer larena yi. Thanks for joining us. Good morning. Good morning. Thank you. Maria i guess characterize where we are in terms of where women are in these senior positions. I see the numbers, 21 , but im always scratching my head in terms of why we dont see higher numbers here. Youve got the majority of women in Higher Education like the majority of people in med school and law school and Business School are actually women, yet theyre not getting to the corner office. Why . Well, were starting actually pretty well, just as you said. We are educating women, they are graduating and they are starting pretty much in parity but we are getting tripped up on the very first promotion to manager. What we see is that is the greatest disparity. In our research that we did, we saw that women disproportionately lose out. For every 100 men promoted that very first time, only 79 or 72 women are promoted. If you are a black woman, that number is even less. Bauns because we are losing so many women at that very first promotion, we are starting to see very few at the top. This is jack otter from barrons. Question for you. I have seen some research that suggests that more women on corporate boards leads to better Stock Performance and when they drill down a little, i think their finding was what really helped was on the downside. There are fewer blowups when you had that gender diversity on the board. Have you guys looked at that . I think we can both speak to it. One of the things we know is that diverse management teams lead to better profitability and higher performance. And so thats a really good thing. As you noted, the report showed that this year, we are seeing signs of light. We are seeing more women at the very top. But we also need to see women at all levels of Corporate America. It was mentioned earlier, this broken rung at the step up to manager. Its Holding Women back. There are too few women to advance up into the csuite so the broken rung is the message we really Want Companies to hear. Look at the pipeline, see if they have disparities at the manager level. If we dont close those up, we are not going to see tremendous movement in the pipeline. Maria earlier this month i spoke with the executive chairman of santander and asked her about women and how they could actually move up in the executive ranks. Watch this. So you know, i dont think we have to speak up. I think as a business trn, its just about gender and diversity. Its about other issues. We have to make sure when we see something thats not working, we speak up and try to make it better. Maria generally speaking, women dont like to speak up. No. This is one of the things. We find internal promotions, men put themselves forward when they are 50 , 60 qualified. By the way, this is empirical in the whole world, not just in the markets we operate. Women, unless they are 100 or more qualified, dont put themselves forward. Maria so this is coming from the chairman of santander bank. Do you believe that, that women dont speak up . We looked at almost 600 Companies Data over five years. They employ over 20 million people. This is big data. Heres what we see. Women are not opting out. They are staying in the work force at the same rates as men and more than that, they are asking for promotions and asking for raises as often as men are. It wasnt the case a decade ago, but it has changed. Women are doing their part, so the question is what do Companies Need to do now. Maria when i first got down to the floor of the new york Stock Exchange, and i felt this pushback from people that they didnt want me there, men, this was when i was, you know, what was it, i was 25, 26 years old, and all these guys were so much older than me deirdre figuratively and literally when you were down on the floor. Jostling you. Maria they were like run along, this is not your business, i said to myself im going to own this job. Im going to make sure i know this better than all these guys. They wont be able to push me around. Deirdre you have the career that you have. Be so good you cant be ignored. Maria thats what you have to do. Have you faced that as a woman in business . Deirdre yeah, coming from wall street, of course. Then being in media, yes. So two times, yes. A question for your research, im just curious, what kind of cultural reception are you getting from institutions . You have the data, to jacks point i know even during the credit crisis, female hedge fund managers, of which there are too few, managed actually pretty well through that crisis, because their risk elements were a little bit more in place, lets say, than average, but what kind of cultural reception are you getting from fortune 500 companies . When we spend time with fortune 500 companies and ceos, we know that they want to improve, they want to do better. This is not something that they are thinking is not a top business priority. The data shows over the last five years, Company Commitment has completely risen. More employees believe thats authentic. So thats the good news. But related to that, its pretty hard working your way up. One of the things that we know that Companies Need to do more of is provide opportunities for women. We call that sponsorship. Instead of doing it informally or casually, they need to actually create formal programs around that. They also need to create an opportunityrich and fair workplace. We know that for employees, that if they experience that, both men and women, by the way, they are three times more likely to want to stay. Three times more likely to want to be promoted and three times more happy. Maria thats a good point, ladies. Rachel, larena, thank you so much. We appreciate it. Coming up, i will speak with kentucky senator rand paul. We will get his take on tensions in the middle east as President Trump slaps a fresh round of tariffs on turkey. Then the future of retail. How walmart is planning to deliver groceries straight to your fridge. Wait until you see this. Back in a minute. Anna, do you yes those plans . I just wanted to show you something ive been wor. James r. And associates. Anna speaking. James r. And associates. Anna. [phone ringing] baker architects. This is anna baker. At northwestern mutual, this is what our version of Financial Planning looks like. Tomorrow is important, but youre ready to bet on yourself today. Find an advisor at northwesternmutual. Com. 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 tuesday morning. Thanks for joining us. Im Maria Bartiromo. It is tuesday, october 15th. Your top stories right now, 8 32 a. M. On the east coast. Earnings season is kicking into high gear this morning. Big banks are in focus ahead of the opening of trading. Wells fargo with a miss on profits but a beat on revenue. The stock is down almost 1 . Citigroup with a double beat on earnings and revenue, profits up 6 . That stock nonetheless down about 1 . Goldman sachs beat on revenue estimates but missed on earnings expectations. Profits hit by lower fees for advising and also weakness in underwriting. Goldman shares down better than 2 right now. Jpmorgan, the star of the morning. Also beating estimates on revenue. Jamie dimon saying the u. S. Consumer remains healthy. Jpmorgan shares right now up almost 2 . Futures this morning indicate the market will open higher. Take a look. Dow futures up 79 points. The s p futures up nine points. Nasdaq futures up 21 points right now. Our top story this half an hour, unrest in syria. President trump authorizing sanctions and heightened steel tariffs on turkey. The administration threatening more if the country continues military operations in northern syria. Vice president mike pence weighed in on this yesterday at the white house. The United States of america simply is not going to tolerate turkeys invasion of syria any further, and were calling on syria to stand down, to end the violence and come to the negotiating table. Maria joining me is kentucky senator, author of the case against socialism rand paul. Great to have you this morning. Thanks for joining us. Good morning, maria. Maria before we get to the topic of socialism, i know that you have become a very important source for President Trump and he listens to you and certainly is grateful for your advice. I want to get your take on turkey invading syria. You know, i think the real irony here is that our relocating our troops, turkeys incursion actually may allow an alliance to develop between the kurds and assad which may allow the kurds to have some sort of autonomous region within syria. It happened in iraq that way. The iraqi kurds have a semiautonomous region because they are no longer a threat to turkey. If assad could assure turkey that the kurds in that region were no longer a threat to be invading into turkey, i think there could end up developing a semiautonomous region under syrian sovereignty but ultimately it means the syrians need to be part of the discussion. In the past, what has happened is the neocons and the war caucus has really wanted to topple assad and havent wanted to talk to assad. Assad now has essentially won the war, for better or worse, hes staying, so assad needs to be part of the peace deal. Im glad the Vice President is talking about talking to the Syrian Regime because if you dont talk to them, they will never be peace. Maria is this in the u. S. National interest to pull out of syria . Whats not in our National Interest, to be there, period. The president was very clear the purpose was to defeat isis, not to create a nation out of syria. Syria is a mess and really, syria is more of a mess because of all the outside intervention. Had no one intervened in the civil war seven years ago, it probably would have ended in six months and you wouldnt have had hundreds of thousands of People Killed and millions of people displaced. The way we determine in our country whether something is in our National Interest is we vote on it. Thats why the constitution put the power in congress. We debate fully whether or not to go to war and then congress decides, not the president. Heres the interesting thing. All these people yelling and screaming about why we need to be in syria, ask one of them who they want to declare war on, have them come back to washington, we will declare war. We will declare war on turkey, our ally, the free syrian army, also allied with turkey but used to be allied with us, or the assad regime, are we really going to declare war on any of those entities . So because its so messy, we shouldnt have 50 soldiers in the middle of it. Its a disservice to our kids, the young men and women who serve, to have them right in the middle of a war zone. 50 people deter nothing and i think the president was absolutely right to get them out of a massacre. Maria isnt it true that taking our troops out, leaving the kurds vulnerable, opens up the oil fields in syria to iran, and you know, the president s had the rairanians on their heels, w basically opening up the oil fields gives them the revenue to continue to support terrorists like isis. I think it has nothing to do with iran, actually. What i would say is that this wasnt like the president said oh, to turkey, please come invade into syria. The turks called the president , said we are coming one way or another, you have 50 soldiers there and we are giving you fair warning that 50 soldiers are not in a good place to be in front of tens of thousands of turkish troops coming in. The president never promised to stay. The American People dont want hundreds of thousands of troops over there. We dont want another iraq war. There is no National Interest over there for us. So i think the president did absolutely the right thing but he also did something where he had no choice. The people who think that the 50 troops were deterring the turks know the turks were always coming. When they decided to come, they told us they were coming and instead of having a massacre, the president did the wise thing and moved those troops. Maria the president is getting a lot of pushback about this, as you know. The wall street Journal Editorial Board this morning out with an oped writing trumps syria mess, writing mr. Trump was able to project an image of strength in his early days as he prosecuted the war against isis, and used force to impose a cost on mr. Assad for using chemical weapons. But that image has faded as he has indulged his inner rand paul and claimed at every opportunity the main goal of his Foreign Policy is to put an end to endless wars. Senator, it goes on to call it simpleminded isolationism. Yeah. I would say that theres a certain naivete in the wall street journal to think that somehow we make the middle east better with our wars. Toppling Saddam Hussein didnt make the world safe or the middle east better. Did toppling gadhafi do it. The wall street journal has been in favor of regime change time and time again. They want regime change with assad also. Heres the irony. The irony is for all the criticism of the president over the kurds, the kurds, once alied with assad, if they can make a deal with assad, will actually have a much better chance for a homeland within syria than they have ever had in a hundred years. So really, we need to have discussion but we were having no discussion because nobody on our side, including the wall street journal, are willing to talk to assad. Assad has to be part of the peace process. So do the turks. So do frankly the russians. So do frankly the iraqis. All the players need to be part of the discussion. What we should do is we should withhold arms in order to use the leverage of withholding arms to try to bring everyone to the table. Maria but isnt it true that the kurds are really the ones that have been fighting here . The americans have helped in terms of the armaments, like you just said, have provided the weaponry. We havent lost a lot look, no life is okay to lose. Right . We did lose a handful of people over the last five users but when you look at the numbers, the americans have not lost many and its really the kurds that are fighting. We are just providing the backup with armaments. The kurds live there and so they are fighting to regain and retake their villages. Maria whats wrong with the u. S. Helping them to fend off the iranians who want that oil . Well, maria, when we go to war in our country, the constitution is very explicit how we go to war. We go to war by voting on whether or not we should go to war. So if america wants to go to war to protect the kurds, we have a discussion, a national debate, and if you can convince enough americans that its in our National Security interest to be at war in syria, so be it. But i dont think thats what americans want. And i dont think we should be in every godforsaken part of the earth in the middle of somebodys civil war. Maria what if isis comes back . Senator, what if isis is back in business . What if it has a new revenue stream . Its a what if, what if. You can say the what if in afghanistan. You can say what if in libya. The thing is if you are going to say what if in every quadrant of the world, you can try occupying it but we dont have enough money or troops to do it. I think its a mistake. I think we should get out of the afghan war, get out of the syrian war, we should be strong, have great intelligence. If we have to go and attack our enemies, we do. If you ask our soldiers do you want to be a policeman, the policemen of the world, you want to do nation building, road projects in syria, road projects in afghanistan, they will say no. We will kill the enemy but we are tired of being stuck in these places for decade upon decade. The president did the right thing bringing the troops out. Maria final question on this subject is about these sanctions. The president authorized sanctions and raised the steel tariffs on turkey, also threatened more powerful financial penalties if they continue this offensive in north syria. Is that enough . Do you think thats going to work . I think we should withhold arms to turkey and other countries like saudi arabia, unless they are really behaving as true allies. I dont think saudi arabia or turkey has been. I would withhold arms. We have a great deal of leverage with that. I do think that whats probably more important sthanthan sanctis whats happened on the ground in the last 24 hours. I dont think this can be overstated. The alliance between assad, the russians and the kurds gives the kurds ironically the best chance they have had for some kind of autonomy and region within syria. Thats already been decided so the sanctions might take effect and might have some influence over months and months and months but the battle lines are going to be drawn much before that. If we can get the turks now to talk to assad, and assad could reassure them that they are going to control their side of the border and there are going to be no incursions from these syrian kurds, the other irony about all the love for the syrian kurds is you realize that they are the socialist workers party. Basically the kurdistan workers party. Many iraqi kurds dont like the syrian kurds and have turned them into the turkish government because they have been in favor of attacks across the turkish border. This war has been going on a hundred years. We have got no business thinking that we are going to be the determining factor in a hundred year skirmish between the kurds and the turks. Maria really important to get your insights. Let me move on to your new book. You recently appeared on the view and had a Heated Exchange about socialism in venezuela. Lets watch. If you vote for a democrat, they will turn the United States into venezuela. Do you think thats a fair statement to make . Well, if you vote for a socialist, you might get socialism. Come on. Dont do that. Maduro is not a socialist. Hes a corrupt murderous thug who is starving his people. Thats not true. Thats not true . Let me finish. No, i wont let you finish. If you are going to say [ speaking simultaneously ] i have a bunch of neighbors and friends who know this. Dont do this to me. Maria wow. You were courageous to go on the show. You write about, well, first of all, reaction. How was that . What happened that day . What a bunch of screeching and very little intelligent conversation. I would say this. Part of the theme of the book is exploring the relationship between socialism and thuggery. What they dont get is they want to say every thug around the world that used tbo be a socialist accidentally became a thug. We are trying to say socialism, centralizing power and authoritarianism are directly linked. In fact, really, one of the themes also of the book is that statesponsored violence is an inevitability of socialism. If you want to take the land from people, if you want to take businesses from people, ultimately there will be resistance. I think it was hyack who said its not an accident you get rootless people. Socialism actually selects for ruthless people because in order to take the land, you cant have this kind, gentle dictator come take the land. It has to be somebody who will come with enough bayonets and bullets to take it. Maria why do you think 43 of americans think more socialism would be a good thing . Do young people not understand the difference . Thats why we have written the book. Hopefully we will explain that to people. I think some have a misconception that socialism is actually Something Different than what it is. We will remind them what socialism is. Maria unbelievable. Senator, great to talk to you. Thank you. Thank you. Maria well be right back. Oh, wow. You two are going to have such a great trip. Yeah, have fun thanks to you, we will. Aw, stop. This is why voya helps reach todays goals. All while helping you to and through retirement. Um, you guys are just going for a week, right . Yeah thats right. Can you help with these . Oh. Um, were more of the plan, invest and protect kind of help. Sorry, little paws, so. But have fun send a postcard voya. Helping you to and through retirement. Maria welcome back. A possible sign of progress in the General Motors strike negotiations. Plus walmart is launching an inhome delivery. Gerri willis on the floor of the new york Stock Exchange looking at all of this. Good morning. Gerri good morning. Thats right. Hopes are spiking for a settlement in that uaw strike at gm, after the union summoned local Union Leaders to detroit for an update on negotiations. This typically has preceded a tentative agreement but i have to tell you, this morning sources telling us that while the two sides are close, there is not yet a tentative agreement. Want to tell you that buckingham, an analyst there cutting his price target on the stock to 32. Shares are higher, though, as you can see. Walmart, hey, forget that last mile when it comes to delivery. Theyre looking at the last few inches. This Company Wants to deliver to your refrigerator and even organize your refrigerator for groceries. This Service Called walmart in home will be in kansas city, pittsburgh and vero beach, florida. They will use tenured employees to do this. I like the idea. I dont know about you. Back to you. Maria i like it. Thank you, gerri. Gerri willis. Quick break. Then elaines town house from seinfeld could be yours. We will take you there live. Stay with us. Everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. 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Elaines new york city apartment, not the central Meeting Point for the seinfeld clique but the focus of a few funny episodes, but it can now be yours. Cheryl casone is covering the story. Good morning. It was a show about nothing but this townhouse is actually something. We will go ahead and take you inside. 408 west 20th street, in the chelsea neighborhood, and this townhouse, 180 years old. They listed it for 8. 65 million. Want to bring nu to show you a lot of the fixtures in the actual townhouse. No, none of this was on television. We are putting it on now for the first time. You have original mahogany doors and again, this is the parlor level which is kind of unique to new york and manhattan, because the parlor level is where the family would hang out and have dinners and things like that. 8. 65 million. They bought this in 1995, paying 950 grand. Nice little turn on investment, right . It has eight fireplaces. This, when they bought it in 95, the owners just told me this was covered up with a white wall. This is the original italian marble fireplace. Look, why have just one when you can have eight throughout the entire house. You also have pocket doors. This is like fullon 19th century kind of stuff here we are talking about. Then you can shut the rooms or open them up. Now, this is the living room. Again, part of the parlor room. A couple of things about this apartment i think is really interesting as we kind of show you around, is that its five floors. If you buy this for 8. 65 million, you get all five floors. Elaine doesnt come with it. I havent seen Jerry Seinfeld or kramer or anybody else. This is what you will get. You will get six floors, a cellar, an exercise room, rec room, also out here, this is the garden area. Youve got a full fountain out there so you can kind of go out there and hang out and see all your neighbors which, as you know, because we both live in manhattan, you can have really close proximity to your neighbors because thats what happens in new york city. Anyway, its a great place. They never watched the show. The owners never watched seinfeld. Now they do. Maria looks beautiful. I wonder how much supplies on the market. Thank you, cheryl casone, in new york. We have to talk real estate for a second. Lot of supply on the market. Prices have already come down. Wonder if they will continue downi coming down with rock bottom Mortgage Rates. The Mortgage Rate was 3. 99 a week before, last week 3. 90 for a 30year mortgage. That could entice buyers, for sure. Maria quick break, then final thoughts from this allstar panel. Back in a minute. Heading into retirement you want to follow your passions rather than worry about how to pay for longterm care. 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We use data to show you what your shoppers have already bought so we can tell you what they might consider buying next. And you can offer them the perfect products. That ceo gets it. From adding unique capabilities to your companys apps to bringing you loyalty programs, our technology and Financial Solutions are changing whats possible in all sorts of ways. So, how can we change whats possible for you . Maria welcome back. Final thoughts from this allstar panel. Jack otter . Best time to buy stocks is to buy low. Right now, everybody hates health care, because they think Elizabeth Warrens going to come in, destroy the sector. The last best time to buy Health Care Stocks was the day obamacare passed. Im bullish on this out of favor group. Maria sticking your neck out. Who can run as far away from capitalism as possible must be confusing to the billion people around the world brought out of poverty by capitalism. Hopefully we will get some answers tonight. Tonights a big night. Im watching earnings. Maria all right. There you go. Have a great day. Great show. Right to varney company. Charles, take it away. Charles thank you very much. Good morning. Im charles payne. Stuart will be back tomorrow. We have a ton of big stories for you today. Earnings season kicking off this morning with several big dow components reporting. Higher profits at Johnson Johnson, the company also raised its guidancement loo. Looks like the lawsuits arent hurting them. 13,000 lawsuits. Big banks also reporting. Jpmorgan beating, reporting record revenue. Jamie dimon says the u. S. Consumer remains healthy and that stock is going higher. May open at a new all time high. Go goldman stocks fell short on revenue and profit expectations this morning. These earnings of course are affecting the overall market. Looks like the big indices are going to be higher this morning. The dow looking a