Transcripts For FBC Cavuto Coast To Coast 20240713

Were on strike. They were counted out of work. Temporary census workers were laid off. Going to underlying strength ever economy. Look at net revisions for august and september, number of jobs was revised up by 95,000 jobs. You look at wage growth at 3 over the past 12 months. Low enough where the Federal Reserve is not seeing inflation pressures. White house Economic Advisors taking a victory lap on the report playing a little politics. White house Economic Advisor larry kudlow starting to talk about tax cuts 2. 0 to be proposed next year. The president would love to see another round of lower taxes to help middle income workers and wage earners give them as much, disposable income as possible. We are talking, again, informally at this moment. Reporter but nothing formal at this point. Ism manufacturing number. It came in at 48. 3. Anything under 50 is contraction. This may have also been impacted by the gm strike as the bureau of labor statistics wrote in the report, quote, within manufacturing employment and Motor Vehicle parts, decreased due to strike activity. Now st. Louis president or fed president jim bullard believes manufacturing in this country is in a recession right now but the consumer is driving the expansion with spending, neil. Neil ed lawrence, thank you very much. We were focused on s p and nasdaq hitting records today. Indeed they have. Only 54 points away. Timing for the dow, last time that was in record territory was back on july 15th. That is not all that far from record territory. This based on a notion even though investors seem to give up on the idea Federal Reserve cutting Interest Rates anymore, anytime soon, theyre okay with that, because it is just this steady elixir that weve got going of good economic news. Virtually no inflation. At least hoped for promise on the trade talk front. Lets go to january any chief investment strategist Mark Luschini janney. What do you think of the goldilocks term used a lot, but for investors today, steady as she goes . I think it is appropoe for all reasons mentioned by reporter t came in as number sufficient to absorb coming into the workforce for the first time. Helping keep the Unemployment Rate at 50year low. Inflation low, discretionary real incomes to produce spending into the economy and continue to support the resiliency that consumption were seeing from u. S. Consumers, and i think it will go a long way if we see more revision and concerns around trade and toward reinstituting business in the Business Community sentiment ratings so they continue to feel good about hiring, passing along wage gains. All important capital expenditures. Neil people always get nervous, mark if it sounds too good to be true maybe it is. The offset with the market, yeah you could argue it is a little rich. You could argue there are a lot of people who have concerns and doubts about it. And a lot of people who have including much of wall street, very high cash positions just in case. Normally that is not the kind of environment you see that would lead to a significant selloff, what do you think . I dont disagree. There is still fair amount of skepticism out there. We saw recently surveys taken of individual investors that pessimism was near alltime high a couple weeks ago. So there is a lot of sideline cash. If you look too, look at some of the sectors leading up until recent, really from the last peak in january 2018 had been classic defensive sectors like utilities and staples, telecommunication, Real Estate Investment trusts. These are things because they have to be in equities. Theyre buying tentatively through the defensive sectors. Rotation taking place, still embryonic in nature but still likely one to persist in the economically sensitive, procyclical sectors that benefit from sturdy u. S. Growth but improving Global Growth. Neil there are a people, get a feeling, nose bleeding for me, i dont know what to do. Normal at this stage after bull market, you can say that at any particular stage of this market, they seek dividendpaying stocks, they seek that as protection when it comes to generally oil issues that pay very rich dividends. What do you think of that strategy . I couldnt argue against that strategy for a lot of investors. Companies that pay big dividends, have a little more ballast. Dont tend to be volatile. Secondly for those looking for income, i think there is a great opportunity to look at some of the beaten down sectors that i mentioned only starting to emerge as leadership. That is in the financials like the big banks, paying out healthy dividends, raising them. Energy starting to move finally, given fact greater conviction around elevation of oil prices. So there are big dividend players in the major integrateds. Major Industrial Companies that would stand to benefit from improving growth abroad also pay handsome dividends there is opportunity for those sectors that have been laggards. Therefore have more reasonable valuation than what some leadership has been recent where theyre supporting elevated valuations in the classical defensive sectors. Neil what would keep you up at night . What do you worry about . We talk about out of the blue black swan development. You can never forecast Something Like that but what gets you anxious . Clearly trade. We talked about it ad nauseam over last 18 months particularly. The fact of the matter it helped dim sentiment among the business communities unlike levels outside recessions would see. Levels of pessimism in the Business Community. If we talk ourselves into recession if things dont break postively, coming out of this phase one negotiation effort that would hopefully culminate here in the next month or so obviously the other is some kind of a retaliatory response on either party allegedly iran or saudi arabia or some proxies around oil prices that could you know, spike to you know, triple digits which would be obviously unwelcome event which would trip up Consumer Spending which has been principal support of Economic Activity not only in the u. S. But oil consuming nations as well at a time when Global Growth needs to be steadying but still is very fragile. Neil mark, always good catching up with you. Mark luschini janney investment strategist out of pittsburgh. Medicare for all with no middle class tax hike at all. Elizabeth warrens plan is set to cost 52 trillion over 10 years. They come to the figure, 21 trillion earmark over tex men years to include everybody is little deceiving. She said the middle class will not pay up one penny. That is technically not what she is proposing here. To Washington Examiner hugo girten, the money eventually runs out. With payroll taxes looks to me average folks will pay for a big chunk of this. What do you make of her plan . Neil, it was halloween last night, it is appropriate we get a nightmare with phantom savings, et cetera. The of course the middle classes will be taxed more. In fact one of the things in the 20 million, 20 trillion extra taxes she proposes, 8. 8 will be middle class taxes. You can argue whether those are a good idea or bad idea whether people like them or not but theyre taxes. Neil because, it is same thing if you give someone a payroll tax break or not or have them pay more in that department or not, a tax is a tax is a tax. She seemed to acknowledge something for which she was under contractible pressure how you would pay for this, but even payroll tax thing wouldnt do that. She says she can extract a lot of savings from onestop shop, you know the drill on that. But what do you think about that . One of the things always done by people who come up with something really expensive like this, they find, they say, that we can get a lot more money out of, save a lot more money you know, by eliminating waste, fraud, abuse and, like there is 2 1 2 trillion dollars that she has got in there but you know, fun fact about the United States is that 90 of people describe themselves as middle class. So every politician tries to pretend when theyre proposing something expensive they will not raise taxes on the middle class. You simply cannot get to the numbers she says by taxing just corporations or and the superrich. And even her number, 52 trillion is probably got a lot short. The urban institute did a study after plan similar to the one she is proposing and came up with a figure of 59 trillion. So, i mean really what she is trying to do is have her cake and eat it too. She got hit by the rivals in the democratic field because she wasnt showing how she would pay for this. Obviously joe biden, pete buttigieg, others are saying, you can promise the world but you have to show how youre going to pay for this. Now she is showing supposedly how she will pay for this. It doesnt come to the figure that would be required. She is trying to blur actually what the cost really will be. Neil getting 50 plus trillion attention. She says it is a little over 20 trilliondollar plan. The cost of what were spending now is added to that, unfair to characterize it that way. What do you say . No, it is not unfair because you know, if you, if you simply expand masses of free medical and dental plans obviously you increase the demand for those things. She says that she is also going to be just pay doctors what theyre paid under medicare. Probably means fewer people will go into the medical profession. She is depressing, depressing supply of doctors. She is increasing consumption. Prices will go up. This is fantasyland economics that she is proposing and you know, it was very interesting to hear larry kudlow just talking about President Trump wanting to get a second round of tax cuts because this is setting the election up for the president talking about tax cuts and Elizabeth Warren proposing plans that will increase middle class taxes. Neil if she were indeed the nominee. Because joe biden, is saying that her plan doesnt add up. But well see. Hugo, always a pleasure to see you. Thanks a lot. Neil the president wants out of new york. In fact would much prefer the sunny confines of florida. That might be easier said than done. Well explain. There are things we would change about work. And there are things we wouldnt. When work is worth it. Work is worth it. Work can be closer to home. Pay more. Make us proud. Careerbuilder. Work can work. Find your work at careerbuilder. Com start spreading the news neil start spreading this news, he wants to leave today, talking about the president of the United States who is eyeing florida as his primary residence because he had it with the big apple, had it with the big apple taxes had it with the empire state taking more and more out of his estate an for his kids, he decided thats where i want to go. No longer new york. Jackie deangelis outside the trump tower in new york with all the details. Jack at this. Reporter good afternoon, neil. Thats right, the president declared his residence will now be in florida not at trump towers since he has lived since the 80s, but rather at maralago. That is interesting because he is not the only one leaving the empire state. Give you numbers from the u. S. Census bureau, more than 60,000 people last year left new york specifically for florida. The outflows in general, of, to other states, out of new york because of the taxes, presumably. 452,580 people. Staggering numbers here. Why do people leave . Taxes are high. 9 income tax for top earners n a state like florida, it is zero. What about the inheritance tax, zero in florida as well. It can be 3 to 16 here in new york, depending on size of the estate. The salt deduction was capped at 10,000. If you live in new york city, youre paying city tax. Its a lot of taxes. So what are the rules if you decide to do this . If you live outside of, if you live in the state 184 days or more you will pay state income taxes here. That will apply to the president too. But since becoming president mr. Trump has spent neil apologize for that. We lost audio with her. New york controls the audio. I dont know. What does it take to change your residency and then get in this case florida, the tax status that you want from that residency . Again as jackie said, its a lot easier said than done. You have to be half the year plus one or two days in that area to make sure that you are a legal resident of that state. To National Taxpayers Union President pete seth. Pete, there are a lot of little rules here. Were already seeing a lot of states and municipalities that lost some very rich folks. They police it aggressively, dont they . They absolutely do. There is no law like an exit tax people have to pay if they want to leave new york for florida. Where it hurts when the auditors chase these folks. The fact if donald trump had never set foot in politics he would be almost automatically subject to a massive examination from new york states tax people to prove that he was actually residing in florida. That doesnt just mean staying in florida for 184 days. It means proving your businesses are actually locating to florida and out of new york. That your prized possessions, maybe your art collection, that is all got to move. Your family, if you have minor children, you cant leave them up in new york and live in florida credibly. All of those tests have to be met. And i tell you, auditors in new york go after not just billionaires but millionaires and they win about half the time in trying to force people to admit that theyre not actually residing in places like florida. They still have ties to new york. They look at your veterinary records to see if your dog is actually neil is that right . Easy pass or those who have these devices track where the cars are, government will seize that, wait a minute, you spent over half the year, lets say florida but you know, we have you half the year riding on the new york roads . Yes. And in one case the auditors won and were able to prove that a tax refugee essentially was setting up in florida but not actually residing there by going through his refrigerator and showing well, this is, this food is a year old. This guy has never really been in this house. That is how far they will go because it is easy money. The taxpayer has to do all the work in proving that theyre actually residing in the new state and not in the old hightaxed state. The auditors have very little to lose by doing this and a whole lot to gain. Neil it is very complicated, right . In the case of donald trump, a lot of businesses in the new york related area, even if you make it the center of your operations florida, it is not as if you would cut ties completely with new york at least right away so you would still be responsible for the money made in new york and other locations, right . Yes. Neil how you go through that, thats a mess, right . Yes and believe me the auditors will claim every single penny they think they can get away with. If there is any question at all about a Business Concern having income in states other than new york, new yorks going to say, no, it all belongs here, the taxes all belong to us. Neil but a dumb, question, pete, how do you, short of people who contract where youre driving or your your pet, that animal is lodging, it is your word against theirs, isnt it . In many cases it is, or it is your recordkeeping against theirs and who in the world necessarily will keep all of these kinds of records to prove that they are actually pure of heart and deciding to live in a given state . That may not be enough of a burden in a court of law because again the burden of proof on any income taxpayer is to show your records as to why youre right and rather than the government having to prove they are right. Neil very interesting. It is, the burden on you, not on them. Pete, thank you very, very much. My pleasure. Neil these wildfires in north of los angeles i should say, theyre continuing to force thousands of evacuations. What they thought was getting better, now appears to be getting a whole lot worse. Neil yet another new wildfire erupting north of los angeles, quickly started spreading, threatening thousands. You know the drill right now. It is the same story day in, day out. They cannot contain all of this. Fox news correspondent Christina Coleman is in somis, california, i should say with the very latest. How are things looking there . Reporter im in somis in Ventura County where you can see firefighters are stationed throughout this neighborhood. Theyre trying to protect the property from the flames. As you look behind me. That is some of the smoke there. That is from a controlled burn. The Firefighters Want to burn off dry brush to prevent flames spreading in this area. This is the maria fire. It started 6 30 local time on south mountain, south of santa paula, northwest of los angeles. It has burned at least 8700acres. It threatened 1800 structures there are a lot of avocado and citrus groves and branches in neighborhoods. Two homes burned so far. Firefighters are working by land and air to stop the blaze. Their aerial efforts were stopped twice by someone flying a drone this area. Our firefighting aerial efforts were hampered by someone flying an unmanned aerial system in the area that is a small drone, apparently looking at photography of the fire. This created, quite a dangerous situation, not only illegal but it hampers our firefighting effort. Reporter a woman recorded this video of the fire from inside of her house last night as those fastmoving flames scorched acres of land. These epic santa anna wind weve been experiencing are expected to start and, slowing down today, which could really help this fire die down. Crews believe this fire will fuel out and shouldnt get any larger than 12,000acres. The easy fire that started in simi valley, that threaten the Reagan Library on wednesday. That fire is 820 contained. The Reagan Library reopened today. Neil. Neil christina, thank you very, very much. The irishman is out. Good luck finding a theater where it is released. It will be on netflix in three weeks. It has a massive budget. Would you like to be a part of history . Yes i would. Big business and the government are working together trying to pull us apart. Something has got to be done. What does he say . Now is not the time to not say. Now you can, with shipsticks. Com no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. Sending your own clubs ahead with shipsticks. Com makes it fast easy to get to your golf destination. With just a few clicks or a phone call, well pick up and deliver your clubs ontime, guaranteed, for as low as 39. 99. Shipsticks. Com saves you time and money. Make it simple. Make it ship sticks. Hi, my name is sam davis and im going to tell you about exciting plans available to anyone with medicare. Many plans provide broad coverage and still may save you money on monthly premiums and Prescription Drugs. 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And, you may be able to save on dental and vision expenses, because coverage is now included with most humana Medicare Advantage plans. You get all this coverage for as low as a zero dollar monthly plan premium in many areas. And your doctor and hospital may already be a part of humanas large network. If you want the facts, call right now for the free decision guide from humana. There is no obligation, so call the number on your screen right now to see if your doctor is in our network; to find out if you can save on your prescriptions and to get our free decision guide. Licensed humana sales agents are standing by, so call now. Neil all right. Google is buying fitbit for little north of 2. 1 billion. Is that a good fit . Well get into that a little more next hour. Apple tv plus is live as a streams service is up and running. It is getting panned in early reviews, too little too late, what are we here for . Apple has pretty high standards for a lot of its products, would the same apply here . This is competitive field. There are a lot of entrants. Tech analyst dan ives, jeremy kaplan. What do you think here, getting sort of a bum rap early on but it is early on . That is a good point. Early on. A couple stumbles out of the gate. You wouldnt expect apple to hit out of the park with the initial group of con tenant with the batch they started out with not doing so hot. Neil what is it . It cant compete with netflix with sheer offerings . The goal, lets be clear the goal is complete with netflix. You subscribe now, buy a phone, get it now, a handful of shows neil proprietary shows. Yeah. The challenge is that right now people are saying it is not really the best stuff. Am i in this for the long haul or not . Neil interesting. So, dan, they have an edge that a lot of these other guys dont. They have an install base of gadget customers who love their stuff, right . You have 1. 4 billion ios devices worldwide. That is really the cay number. You have got that, 900 million iphones that they will penetrate unparalleled install base than any other company in the world. The fact that apple, cupertino, to your point, shot across the bow at netflix, we believe 20 million first year in the subs, 100 million next three to four years. Neil really . It comes down if apple poised to compete with chipotle, speakses to that mind set. Talk about the number. Hang on a second. If theyre going to sell 20 million phones this year, whatever number it is, some huge number like that, that is the install base the number should look at hours watched or minutes watched or something. You are, they are going to get 20 million. Neil they offer the service for free when you buy any one of these device. Thats right. To your point, it will be bundled, churn that will be the key. No doubt the whole right now, it is content. They spend a billion in year on conflict. Apple spends, 15 billion. Neil do they have the number to do that. They have more cash than most countries. To the point we believe in m a, Sony Pictures alliance that could be on the horizon to fill the content void. Neil talk about content, isnt it this month, netflix started 40 new series just this month. Thats insane. Neil that is a lot. Netflix is investing more heavily creating great content. Neil netflix is 12. 99 basic package. I forget. Neil apple is 4. 99. Disney is 7. 99. We believe apple and disney combined about 10 disruption to netflix overall. Neil what about hbo max thing . That is 14. 99. We think that is massive head scratcher in terms of pricing. Neil how so . The product isnt there to justify it . They have significant content, but youre talking about a content arms race. 14. 99 i think that was massive strategic mistake by them. We harp at content. At the end of the day the consumers wont subscribe to 19 different services. You just arent. You want the best place and which is it. Neil that this was cheap alternative cut the cord, save a lot of money. If you got all the services you would be spending more money. Ridiculous amounts of money. Beyond that youre also subscribing to the Home Security system and subscribing, a wealth of ways we can take your money these days. 60 to 70 per month is the line in the sand. Neil is that right . Netflix costs 15. You have many other Services Going for share because next 12 to 18 months that will be the key. You got to get neil you mentioned netflix and the irishman. Netflix has running in theaters for very limited release. I cant find theaters in new jersey. Then three weeks it is on netflix. What do you think of this scandal . This is exactly what im talking about, netflix is investing so much money, they are the new content creation studios. Forget about old models of who wad theaters and pictures going into the home. Neil that takes a couple months usually. This is complete transformation. Netflix is a studio doing creation, putting it in theaters, coming back to netflix. We keep saying netflix, netflix. Why to your point 12 to 18 month from now, who is the name were talking about . No doubt. 160 million consumers. Neil this qualifies for the oscar picks and all of that . Thats why where netflix was a gamechanger, started to get on the red carpet, oscars, academy awards, golden globes. Apple will follow in the fat steps to get to the big screen because it is validation. Netflix, it had a massive Ripple Effect across hollywood. If youre a key producer now, trying to get a film green light, ultimately netflix is one you call. Neil i dont know what is more remarkable, the fact they have computergenerated technology to make the guys look younger or the fact that Robert De Niro is playing an irishman. What do you think of this whole computer thing, im reading reviews, remarkable. The technology is remarkable the testimony how far we come in the world of special effects. Things we can do these days. Neil not one of these images that look kind of hokey or, apparently they have done a pham nollnal job. You will see more and more of that. More Tech Companies get into media, you will see the blending. You will see special effects an technology that i think are gamechangers. A way to stand out. Traditionally we thought about special effects for big hollywood blockbusters, transformers movie, this is technology put to a story telling effect which i think is fantastic. Neil the possibility beyond actors, aging tv anchors is enormous, right . Its a world of possibilities. Neil a world of possibilities. Gentlemen, you know your stuff. Thank you very much . Pleasure being here. Neil well explore that. Well explore the economy very good numbers we got out today. The dow is racing at 258 point. At the rate it is going, 50 points from an alltime high. We could hit it. S p 500 and nasdaq is there. You can imagine that the president will be doing a lot of touting of that. He already has been tweeting about it. He plan as number, a number of appearances where he will be doing just that after this. We trust usaa more than any other company out there. They give us excellent customer service, every time. Our 18 year old was in an accident. Usaa took care of her car rental, and getting her car towed. All i had to take care of was making sure that my daughter was ok. If i met another veteran, and they were with another insurance company, i would tell them, you need to join usaa because they have better rates, and better service. Were the gomez family. Were the rivera family. Were the kirby family, and we are usaa members for life. Get your Auto Insurance quote today. Do you want me to go first or do you want to go first, brea . You can go first. Audible reintroduced this whole world to me. So many Great Stories from amazing people. 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Its time to drop gold. Go digital. Go grayscale. Neil all right, we got a big ol rally going now. The dow up 253 1 2 points. Weve got the s p 500 and the nasdaq, we can tell you theyre at record territory as we speak. The dow is really, what, about, 50 someodd points away from records that were reached i believe on july 15th. It would have to be up a little north of 312 point to do that so well see what happens but it is something that the president is going to crow about, he already did today, talking about the runup in the markets based on an exceptionally good employment report, one that was supposed to be kind of weak. It was actually anything but. Fox news decision desk director arnan mishkin. My eyes are going. With my name. Neil give me a sense how the president parlays this into the campaign, pounding the economy, good markets for a long time. Now added fuel, right . The most interesting thing about this campaign a very Strong Economy, yet you have an incumbent who should be sailing to reelection playing the underdog. Now a part of me sort of thinks he likes being the underdog. He thinks he fights better that way. It is striking. You would think a plain vanilla incumbent would be sailing to a 40 state sweep of the elector college. That doesnt seem to be what is happening. Neil you reminded in the past, not the National Polls that matter, state by state, battleground states, all that, there you have a majority of voters who are not keen on the impeachment thing for the timebeing and there you have a turnaround in the economy happening that is pretty pronounced. That hopes to parlay that doing what he did last time, keeping states in the republican column and doing what he did in 2016 . Exactly. I think, you know, this election is going to be fought in those battleground states, wisconsin, to a certain extent, michigan, pennsylvania. But also it will be fought in texas, where right now, looks like trump has a battle on his hands. He will have to spend a lot of money in texas, but at the same time, and a lot of time. Neil i heard people say texas is now purple. Just about to turn blue. I cant see it. I know, obviously we talk about beto orourke, who almost took down ted cruz. I know the effect population is changing. To the degree the president has to worry he could lose that state . My sense is that texas is fools gold for the democrats. There is, i would be really shocked if the democrats carry texas. On the other hand what the democrats can do is force trump to spend money and time in texas. That is what i think they will be doing, anyone who is really putting money on the idea they will win, democrats will win texas i think is smoking something interesting. Neil on impeachment front, the president says, here is what theyre doing, here is what im doing. He will keep pounding all of this stuff, essentially say the cabal to continue this witchhunt, even if im impeached, waste of time . Were going to find out. As of now, the country is split roughly 50 50 between those people who want him fired and those people who really want him to stay in office or not get impeached. What you see in some of the polls, in the Battle Ground states is, it is a little tilted towards those opposing impeachment in the battleground states, in places like new york and california, basically everyone is in favor. That is wasted space for democrats to a certain exten. It will be interesting to see see what happens. Whether or not the democrats are able to develop some kind of piece of evidence. Keep in mind what did in bill clinton was the blue dress. What did in richard nixon, from impeachment perspective, what did him in was the tape saying i know about the breakin. Neil what saved bill clinton is Strong Economy and strong markets. Exactly right. Neil im not comparing the two. What did not help richard nixon, stagflation, High Energy Prices and oil crisis. Not a nice backdrop. For bill clinton, a nice backdrop. For this president he invoice a very nice backdrop. If it continues he is in good shape fighting the impeachment battle. Neil well watch it closely. Around none mishkin. The guy who wrote the movie on zuckerberg, now upping the drama, after this. We can go down this what do you think . Woo yeah its good its refreshing. At northwestern mutual, this is what our version of Financial Planning looks like. Tomorrow is important, but shes only seven once. Spend your life living. Find an advisor at northwesternmutual. Com. People want to go on the internet to check out their friends, build a website with pictures, profiles, taking the entire social experience of college, putting it online . Neil aaron sorkin writing about facebook again. This time in an oped slamming mark zuckerberg. Grady trimble in chicago with the latest. What is going on . This is not a screenplay this time around like the social network was. He said facebooks policy to allow political ads is a assault on the truth. This cant be out come you and i want, have crazy lies pumped into the water supply that corrupt the most important decisions we make together. Zuckerberg is firing back at sorkin. He already defended his companys position on capitol hill, it is all about free speech. More recently he defended it again on a facebook earnings call. This time around he defended himself in a facebook post, not using his own words, using sorkins words from 1995 movie, the american president. Here is part of the monologue from michael douglas. You want free speech . Lets see you acknowledge a man whose words make your bleed boil, Standing Center stage, advocating it up of his lungs that which you would spend a lifetime opposing at the top of yours. Facebook getting a lot of criticism for allowing a lot of political ads. It allows for the spread of disinformation. Twitter banned all political ads starting this month from its platform. Google has flown under the radar so far. It sort of has the same policy as facebook where it allows political ads. It is interesting if lawmakers up pressure on google as well. Just like they have on facebook. Neil . Neil thank you very much, my friend, Grady Trimble in chicago on all of that. It is not just facebook investors getting anxious about all of this. A lot of facebook workers penning a reminder to mark zuckerberg, cool it, cool it. We have Charlie Gasparino on all of that. What do you think of this . Weve been talking to facebook investors, people that own the stock, people advising people that own the stock, it is pretty controversial. Here is the thing. I should point out aaron sorkin is out of his mind. Equating facebook taking political ads is end of democracy is one of the dumbest overreactions i heard in my life. Do you think the ads on facebook swayed the election . Given the fact that the media is so dispersed. No more three networks, no more five big newspapers that control the dialogue. You go on the internet it is open warfare every day. Facebook had nothing to do. Neil many on the left were criticizing you dont police accuracy of republican ads but not word of policing accuracy of democratic ads. Zuckerberg make as compelling case. Who am i to be final arbiter except gross examples. Aoc made the case when she questioned him. What are you allowing the white supremacist daily caller to be on your platform. That is insane. It is white supremacist someone so far left. The daily caller is mainstream conservative, supports trump. Doesnt make them defacto white supremacist. So. Neil he should have answered, you and i talked about this before, im not going to police or edit the left. Are you taking daily storm or daily caller, put it back on her to explain why she thinks conservatives neil where is this going. That said, my preamble, both from what i hear of investors sandberg and zuck to a scaring a lot of people in terms of handling of this brouha. The company is doing well, if you look at numbers, 6 billion last quarter. Stock at almost alltime high. I get that. There is a sort of worry among investors, political missteps, zuckerberg didnt do great optically at the hearing. Cheryl may not have been the contained all these scandals that began after the trump election with cambridge analytica, one after another, one after another. That they need additional management firepower or they should go. Two things i heard. I heard zuckerberg said he will not stop taking political ads. Got that. What investors tell me, because of this pressure from inside his company, employees, executives, probably will have to nuance that a little bit. In a sense, maybe better policing. He will have to do something that gets, that addresses the issue. There will be a compromise. That is what investors say. Facebook is saying no changes. These investors are telling us, there will be something. Therethere will be somebody neil is it that worth it . I agree it takes two to tango. You can talk about sloppy ads full of errors. Right. Neil what the left says or the right. But they never say it about themselves. So in eye of beholder, i get that. Is it really worth all the headache for him . Twitter, dorsey decided it is not. Different people . They only say a fraction of their revenues. They have a lot of revenues so its a big neil absolutely. I think he is making, he is taking, i guess a worthy stand on this. I think, you know, what he is saying, very easy for jack dorsey who i like, were not taking ads. It is like minuscule. By the way twitter has much worse problems than ads. Troll factor is on the charts. You accept the friendship. A lot more contained. There are two issues neil you get the nasty. I get the worse. I said something about deadspin. They went nuts. Business issue, question of ads, future of zuck and sandburg. I think there are question marks there. Neil thank you my friend. The dow up 238 point. Stay with us. Count. With value like this, there are zero reasons to invest anywhere else. Fidelity. There are zero reasons to invest anywhere else. Im working to make each day a little sweeter. Adp simplifies hr, benefits, and payroll for magnolia bakery, so employees like sarah can achieve what theyre working for. Now you can, with shipsticks. Com no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. Sending your own clubs ahead with shipsticks. Com makes it fast easy to get to your golf destination. With just a few clicks or a phone call, well pick up and deliver your clubs ontime, guaranteed, for as low as 39. 99. Shipsticks. Com saves you time and money. Make it simple. Make it ship sticks. Neil all right. Heres how much you can figure Elizabeth Warren is a threat to joe biden. He didnt waste a nanosecond today ripping apart her medicare for all plan that he says leaves a lot of details out, like, well, how to pay for it. As you do the big old numbers here, in excess of 50 trillion, that could be a misnomer. Shes adding about 21 trillion to take care of the rest of those of us who do not have Medicare Coverage but be that as it may, the way she pays for it through payroll taxes, other things that would affect the middle class largely, even that doesnt handle it. Nevertheless, its all the details and all the numbers and they can be specious sometimes but they are what they are. Hillary vaughn has had a chance to look at the impact of all this. She joins us out of washington. Hey, hillary. Reporter hey, neil. If you add up all the money governments, companies and employees already pay for health care, that makes up about 30 trillion of her 52 trillion price tag but warren has to come up with the extra 20 trillion shes getting from a lot of places but mostly banks, businesses and billionaires, but not the middle class. Warren says this. No middle class tax increases, 11 trillion in Household Expenses back in the pockets of american families. Thats substantially larger than the largest tax cut in american history. But its not a tax cut for most people because warren says shes counting on 1. 4 trillion more in tax revenue on takehome pay by taxing that extra 11 trillion that she says is going back into peoples pockets. Warren is also proposing a. 1 tax on financial transactions, a fee on 40 of the biggest banks in america. That brings in about 900 billion. She will get 1. 6 trillion from a 35 Global Corporate tax on foreign earnings for u. S. Corporations and shes also putting a 6 tax on net worth above 1 billion and will change Capital Gains taxes to charge annually for the top 1 . Those two changes will bring in 3 billion. Warren has admitted her plan wont just cost money, it will cost jobs, too. Two million of them, which warren says is part of the cost for medicare for all. White house economic adviser larry kudlow reacted to her plan this morning on fox business, saying the cost to the economy will be a lot bigger than just the price tag. It would have a catastrophic effect on the economy and all these numbers that were seeing, all these numbers, on incomes for households, on wage increases, on jobs, all these numbers would literally evaporate and by the by, so would the stock market. Reporter the Biden Campaign also blasting her plan, calling it mathematical gymnastics and also a sleight of hand to disguise and downplay the real cost that biden says will trickle down ultimately to the middle class. Neil . Neil thank you very, very much for that, hillary. By the way, the impact on rich folks would be pronounced. Jeff bezos, for example, under this plan would pay about 7 billion 7 billion because remember its an asset tax for just the medicare for all part of that. Anyway, to mike murphy, jeanne zaino and jillian melchior. Let me get your take on this. It still doesnt add up but it is obviously spreading the wealth around. You hit payroll taxes, both companies that pay them and you as an individual that gets them, thats the middle class, thats every class. Its every class. Thats why i think although theres a fringe group of people that want this and theres probably a larger group that thinks it sounds great, but nobody wants to have more money taken out of their pocket to support other people. Neil you say sounds great. Health care for all has a nice ring to it. Medicare for all, i dont know. I dont know, i think from a standpoint of everybody i think could agree that the Health Care System in the United States isnt working right now as well as it could or as well as it should. As a fix to it, it sounds great to say hey, everybody, Free Health Care for everyone, or everythings free for everybody. The initial sound is great. My health care is 3600 a month. So i would rather not pay that. But who is going to pay for that . Someone like you, but thats not fair then to the other people. I think when you get down neil i dont want to support you. When you get down to the numbers it doesnt work. Neil let me ask you, say what you will of Bernie Sanders, hes been remarkably consistent, whether you agree or disagree with what he wants to do when it comes to medicare for all. He does include the middle class and higher taxes but he always argues you are going to get more from this than what you pay into this. But at least he expands the pool because he knows he cant do it just hitting people like mike. He cant. And quite frankly, neither can she. The reality of this is twofold. Number one, when something is not broken, you dont try to fix it. You have many millions of people who are covered through their employerbased health insurance. Let them keep that and address the problem that mike was talking about, the people who dont have care who need care. Fix what needs to be fixed, number one. Number two, for all these promises that shes talking about, these have to get through the house and a republican senate, unless that senate turns democratic, and shes then president. You are telling me those taxes shes laying out are going to make it through that gauntlet . They will not. We saw this with barack obama. These plans that they offer as candidates, they seldom come to fruition in the way we are talking about. For all of those reasons, this is dead on arrival. And she has to recognize that. I think the big difference between her and Bernie Sanders is hes been consistent for years on this, and he has not been afraid of the politics. Shes afraid of the politics which is why shes taxing the very wealthy because its more palatable than talking about the middle class, when the reality is you are going to have to hit both. Neil now, republicans, though, dismiss this at their own peril, dont they . They lost the house because they didnt appreciate the magnitude of this health care issue. In the midterms. Im wondering if they are missing the boat now. Not that this is the answer, but their inability to come up with a cogent plan of their own on health care feeds this argument that Elizabeth Warren, Bernie Sanders and others are running away with, right . I think here at the center of this we have obamacare which we were told was going to fix our Health Care System. I think now you have democrats and republicans oddly agreeing that it did not fix our Health Care System. I think republicans missed an Incredible Opportunity when they had the house and the senate to do something about that. This has been the consequence. If we are talking about the intellectual honesty of that, of course this is going to hit the middle class. By the way, i also think its a little bit like i wonder if its going to be like hillary clinton, we are going to put coal miners out of business, we will put two Million Health care Sector Workers out of business here. Thats something thats not a winning line to the american electorate. I think shes really got a case to make. Unfortunately, i neil where are the two million . I didnt understand that. Administrative positions, especially based on this academic study from a couple years back, but its basically, its to be expected if you are reconfiguring something starting from scratch on something that is in the american economy, they will neil you know where theyre working . Hospital administrators and insurance companies. Neil the president , meanwhile, wants to focus right now on whats going on in the economy, the good, thats the wind at his back. Thats the stuff hes bragging about. He says everyone else is focus order impeaching me. Im looking after you. Hes going to be making the National Tour to keep pounding that. He should be, because if you look at the jobs number we got today, it was better than expected. The revisions for the last two months were better than expected. So hes backing up what he said he was going to do. Jobs, jobs, jobs. More people have work right now in this country than have ever been employed in history. Wages are going up, although they could be going up more, they are going up. People are making more money. Thats a positive. Thats what he promised he would deliver. Hes delivered it. Neil what do you think . I think the president should do more on the good jobs number and more on jobs and less talking about how he is going to be reading us the transcript of the ukraine in a fireside chat. I mean, this is what he should be doing. He should outsource the impeachment to somebody outside of the white house and focus on the business of the american people. This is the best he probably could have expected as you get towards the end of the year and he has the wind at his back but he seems to want to tweet and talk about impeachment which i think does him a disservice and does the administration a disservice because it takes all the wind out of the sails of the good things that are going on. Neil you know whats remarkable about the report, what mike was saying, the feared dropoff in the Manufacturing Sector did not materialize even with the gm strike, it was less than thought. Construction jobs were actually up. Thats vital in the industrial states he wants to retarget again, the states that went from blue to red, because he devoted so much time. Thats in their interest, right . The thing thats frustrating about this, i think we have seen how powerful of an Economic Impact we have been able to get out of tax reform, out of deregulation. The de regulatory efforts really dont get enough attention. Thats the government taking its thumb off of american businesses, letting that grow from the top and i think the only bad factor in the economy right now is the trade uncertainty. A lot of that could have been mitigated if we just had gone after china in a more concentrated way. Instead we picked fights with all of these allies that could have been helpful in that. I really think thats whats dampening the economy. Its uncertainty that functions in the same way as obamas regulatory agenda. But to the point of neil you know the president blames the fed for hiking rates too soon and that prompted the slowdown, they had to reverse. The fed comes back and says no, its the uncertainty over trade that has prompted us to address this by cutting rates. Yes. Neil therein lies the rub. But when you look at this, it is a good economy and i do think he should be much more focused on that. By the way its also something that could win him votes he may not otherwise have. If you are looking at black or hispanic unemployment, those are areas where hes really neil alltime lows. What do you think . I think the president should be focused on the economy and the jobs numbers but the ism, neil, that was worse and lower, and thats something that could neil still reading under 50 indicating a contraction. Thats right. So that in my career, has a lot of times been a good harbinger of things to come. Hopefully this is based on the china trade deal so its a one or twotime oneoff. Neil you think the uncertainty goes away on that all of a sudden . They are buying and expanding and well, if we sign a deal tomorrow, say, for instance, with china, if that uncertainty was off the table, i think there would be a pickup across the economy. But if the ism continues to be negative, that will be something that has to be watched very closely. Neil thats a key read of the Manufacturing Sector. Again, it was still weak and getting weaker, just not as weak as some thought it would be. Meanwhile, phase one and done. Had a chance to catch up with the commerce secretary of the United States, wilbur ross, on that. What he said after this. There are things we would change about work. And there are things we wouldnt. When work is worth it. Work is worth it. Work can be closer to home. Pay more. Make us proud. Careerbuilder. Work can work. Find your work at careerbuilder. Com here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Neil all right. You think youre being taxed in the state you live in . Why dont you pull a President Trump and say goodbye. He wants to leave new york, says its a too hostile environment and hes not just thinking about the taxes. Hes looking i guess at the sunny skies of florida. He wouldnt be alone. He wouldnt be alone. What do you think . Yeah, hes certainly not alone. You know, i think what was stunning to me was our governors response to this. I get the politics. Governor cuomo does not like donald trump but to say good riddance is not something the governor of new york state should be saying to any new yorker because they are fleeing in droves and with them are going businesses and taxes and other things. So you know, you know, as the weather gets colder, i totally see what the president is doing but my fear is the politics in new york city and new york state is also playing a part in this, as is the incredible taxes that we pay and so i think our Public Officials have to be a lot more careful about who they say goodbye to. Neil he doesnt have to look at how much hes limited to writeoffs in taxes like most of us but that is whats driving other people out. Missing the cold weather. Cuomo last year said its the new york weather, its the new york weather but that doesnt explain the transfer of people from new york to balmy New Hampshire here. If you look at it, pretty consistently, its places that have really high taxes, really high regulatory burdens and enormous Public Sector Union Presence and they are moving to states where the government will get its foot off their neck. Ive got to laugh, too, when you are looking at california, here you not only have really high taxes and hostile regulatory environment, their Environmental Policies are so bad you now have rolling blackouts with no end in sight, with the last person oh, you dont have to turn out the light when you leave the state. Neil you know whats interesting when i look at this, the implications, states that are losing a lot of High Net Worth individuals, they are giving them a tough time. We want to see that you are spending the entire 184 days in arizona or in florida and they are checking their ez passes, checking their vets and whether their pets are with them or not. They arent giving up easily. They want to get what they rightfully can get if the person lives in that state. I just wonder when does it push too far . When does new york or new yorks elected officials decide hey, we do have to do better for the people who live in our state because they will leave. If i didnt have kids in school here, i would have to consider leaving as well. You would like to think our elected officials would say rather than good riddance, hey, lets keep as many high income earners as we can in new york, lets collect a fair tax from them so that then we can do better for our state and for the people who elected us. I hope some day we get there. Neil in the meantime, we are looking at china, looking at developments going on there, and i had a chance to catch up with commerce secretary of the United States, wilbur ross. He teased some developments going on on that front. Take a look. Coming up today at the working level, things are moving along but like anything else, it never really gets done until the last minute and you dont have the deal on anything until you have a deal on everything. Were pretty comfortable the phase one is in good shape. Neil that was something that was echoed by larry kudlow talking to Stuart Varney earlier today, they think a deal is in the works and they will sign off on this phase one, they will have to change the venue, obviously, they havent rechosen a venue after chile said we cant do the big conference in a couple of weeks, but say they cant get this done in a couple weeks, a few weeks, maybe a lot of weeks, then what . You know, i think its a good sign that it looks like they are going to get the phase one done. I think it is a big win for the administration because this is a hardfought battle. But i still think hes got the administration has got to pay close attention to this calendar because as you move closer to the new year and then into the election cycle, the real question politically for the administration is do americans in the rust belt you were just talking about that hes trying to attract and needs to retain, do they start to feel like okay, we know you wanted to do this, we know you said you were going to do this but were not getting a deal. I think the calendar does start to be a problem. But the phase one is a good sign except the chinese seem to be indicating that may be it for now which is a bad sign tore the president. Neil if that is indeed the case, combine that with the fact the chinese made it clear this guys a tough guy to deal with, you know, impulsive, in no way predicting what hes going to do, they all but said its phase one and done. Didnt they . Then what . I think there are concerns about this being phase one and done, that its not going to address some of the hairier issues like forced transfer of intellectual property technology, some of the true bad behavior from china. But i also want to point out, you know, you say trump is inconsistent and he certainly is, but i think theres also a real question about whether we can trust the Chinese Communist party. Neil by the way, you keep them guessing, right . I do think theres a question whether china will live up to its international expectations, its obligations and the case in point is whats happening in hong kong. They have an International Obligation to abide by one country, two systems. They are now saying thats no longer legally binding. Central Committee Just did this the last 24 hours talking about more interventions. If they cant respect what they said they would do in hong kong, why are we trusting them on this trade agreement . Neil very good point. Now hong kongs in a recession. Hong kong is suffering from whats happening with china. But i think the president is in the drivers seat right now. I think a deal will get done. I think the market is telling you they expect at least phase one to be done. I think also, if you say that trumps hard to deal with, its because i would be quite confident hes in these negotiations saying well just leave. Well keep the tariffs there, well deal with mexico, deal with canada, deal with the rest of the world, so we will leave you out here by yourself. That is difficult. Its not what they want to hear but i think the u. S. Voters that you talk about in the rust belt, i think a lot of those people feel like the president is fighting for them. I think that will come through in the election. Neil we shall see. Thank you very much. Final word on that subject. They had this big old meeting, they all gathered around the table and said we have the way out of this. Yoga. Yeah. Yoga. It was in this small Little Village in connemara. 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Tomorrow is important, but youre ready to bet on yourself today. Find an advisor at northwesternmutual. Com. Neil all right. Google and fitbit, perfect together or not . We are about to find out. Geru wiri willis at the new Yor Stock Exchange with that. Gerri looks like investors think so. The stock is soaring to close up 16 right now, shares of the fitness tracker maker hitting their highest level in more than a year after it announced a definitive agreement to be acquired by alphabets google for 2. 1 billion. Now, the purchase price, 7. 35 a share, is a 19 premium to bits Closing Price thursday. Analysts have said the deal could allow google to expand its reach into medical technology. Meanwhile, netflix expanding its podcast business. The company says it will start making fictional series in addition to its collection, thats behind the scenes podcasts which describe how their shows are made. They plan to release the only podcast left as a fictional companion to daybreak. Shares this year up 7 . Jc penney shaking things up for a comeback. The Company Announcing a plan to revamp one of its texas stores to include a fitness studio, yoga style class and video game lounge. The struggling retailer plans to test the popularity of the idea and roll it out to other locations in the future but its not going to happen fast. Remodeling all the companys 850 stores would be a drain on cash and jc penney hasnt shown an annual profit since 2012. Check out that share price. 1. Pretty tough stuff. Im sure you would go to that yoga class, right . Neil no. Not me. It sounds interesting. Its a clever way to get people in the store. Good seeing you, gerri. Reuters is now reporting that china and the United States have reached what they call a consensus on principles. These concern talks between the main trade negotiators, this is also coming out of a china agency. We dont know if this is simply on nailing down the phase one part of the trade deal that is about 60 of the trade issues the president wanted addressed with his counterpart in china. We know he was eager to write off on it with the chinese president because the chile talks have been put off because of all the problems going on in chile. Whether this is part of that or beyond that, anyones guess. The stocks have picked up a little bit on this. Up about 235 before, up about 251 right now. Stay with us. 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. At fidelity youll pay no commission vo thewith every attempt, strto free itself,piders web. It only becomes more entangled. Unaware that an exhilarating escape is just within reach. Defy the laws of human nature. At the season of audi sales event. Neil all right. Getting a little more detail for you on the trade front here. This is coming from our Edward Lawrence in washington. We hope to have him up here pretty soon. The trade representative Robert Lighthizer and treasury secretary Steve Mnuchin have been talking with chinas vice premier liu he on phase one of this u. S. china trade agreement and apparently, they have kind of dotted the is, crossed the ts and have something together. Whether that is enough to propel a signature on the part of both leaders, that was the hope. They were going to gather in chile for this at this apec conference. That never panned out. Chile had to cancel because of protests there. They were looking at other sites. I understand the catskills and poconos were talked about. No. It want. I just wanted to see if you were paying attention. But they hope to maybe cement this so well see. Mike murphy, if that is indeed true, not the poconos and catskills thing, but that they have cemented at least this part, the president already said that would be 60 of what he wanted. Right . Yes. Absolutely. Its a huge plus. It takes a lot of uncertainty off the table. We all were concerned that this trade war could escalate into something further. The fact that a big portion of it is done is just a positive for both sides, a positive for the president , for the administration, for the american people. Its great. I hope they sign it today. Neil i think we will be able to flesh this out with heed lawren. What are you hearing . Reporter we have seen the global times report saying that china says they have reached a consensus on the core things that are inside the phase one deal. We can tell you that white house economic adviser larry kudlow laid out for us earlier today how close they were on a lot of those items, specifically agriculture, he said that was basically done. Also the Financial Services related part of this, basically he said that was almost finished. So they were very close on a number of sections related inside this phase one deal. Now we have reporting out of china from the global times saying they reached a consensus on some of those major core issues inside that. Its a very big breakthrough. They are very close and we know the white house is looking for at least according to white house economic adviser larry kudlow looking for a place where President Trump and president xi can sign a phase one deal but they are very close to getting there. Neil so already we are seeing Oil Prices Move up pretty smartly, up 3 on just the hint of a consensus on these core principles. Edward, to be clear, the president seemed to be optimistic they were going to be able to meet somewhere soon to sign off on the deal that many people assumed was all but done. This confirms that its much closer to being done or how would you describe it . Reporter yeah. Thats exactly right. I think that we are hearing that it is much, much closer to being done. You know, although you asked the u. S. Trade representative robert light hiez lighthizer, he will say no deal is finished until its signed but they are very close to finishing this phase one trade deal from everything that were hearing. This report just sort of confirms the fact that maybe they crossed over a threshold somewhere in some of the more stickier issues. They were having some issues with the i. P. Theft section of this, according to the white house economic adviser this morning so maybe theres a breakthrough on that but it looks like some of the other ones really were very very close. So this could be the breakthrough on it. We will have to wait and see as more of this comes out. We also have phone calls into china as well as my trade sources here in the United States. Neil thank you very much, my friend. Jillian, we were just talking about dealing with the chinese and obviously trust, verify, the whole reagan thing, but in this case, the chinese themselves have signaled that its going to be difficult to go much beyond the phase one part. They zing the president a little bit, they zing the whole process is more involved than you think. What if it ends at phase one . Thats it . It would be significant but what do you think . Both sides are under pressure to make a deal. Trump is looking to Middle America right now, we are going into election season. These are farmers that have gone out on a limb for him and really taken a hit. Im thinking about the soybean guys and the corn growers. These are people that have put up with some pain. Some of these agricultural provisions are going to help. I think china, this is a government that derives most of its legitimacy from economic prosperity. We are seeing slowing growth there, seeing, you know, conflict in hong kong, pressure on that government. I think they have every incentive to do something. But my concern is, im less concerned about the trade deficit. Im concerned about chinas bad behavior, theft of intellectual property, the way it pushes companies the way we saw with the nba scandal. Many of the things we hear in phase one dont get at the root cause of that bad behavior. Those will be the really sticky difficult things to address. Im concerned about whether, if we can get to a phase two and throughout this, the concern that we can trust china. Neil again, we are scant on a lot of the details. We are closer to something, which is better than nothing, but again, its way early in the process. Just the fact they have made progress, we dont even know specifically where that progress has been made. What we do know is that the president has been pushing for this, optimistic we could get this. Hes also pushing for Something Else in the middle of this entire impeachment push, that maybe he should do a fireside chat much like fdr, to address that ukrainian call. A lot of people are looking at that, including fellow republicans to say you know, dont add fuel to the fire here and certainly not in that format. What do you think . First of all, i want to just go back to the trade and say i dont think we say enough what an enormous accomplishment if this gets done, even phase one and we dont get to a phase two, this is, because President Trump, really many people looked askance when he said he was going to enter this and he stuck with it a lot longer than people expected. So it would be a big win for him and the administration. The fireside chat, gosh, i hope he focuses on the trade war, on jobs. I do not think he should be doing that. Yet i fear he might because this has been his m. O. He will push it to the nth degree. I wouldnt be surprised if he does but i wish he would stop talking about the impeachment. Its got to be taken seriously. Its got to be taken over by lawyers and hes got to fight the substance of this thing and hes got to let people who represent him well do that, and stay out of it. He needs to take a page out of clintons book on this and focus on the american public. Do your job and let these things take their course. Neil i think bill clintons famous remarks came after the impeachment. I think there is still a large group of people in this country that get their news from antitrump news sources so all they believe is what they are hearing or reading so i think for the president to come out and air that, whether its him reading it or someone else reading it, it would be, i believe, a good thing for potential voters, for the entire neil like an Andy Kaufmann thing where he read from a book . Kind of. I dont know how it would go. But for people to get the facts would be good. The fact that the accused is willing to air everything in an open forum i think speaks volumes. Neil leave it alone or what . Political gamble. On one side you have this impeachment inquiry that is clearly very partisan. The rules are different for democrats than they are for republicans going through this process and democrats control the narrative. I do think theres an opening for trump if he uses twitter, uses his fireside chat to go over the head of the press, communicate a message. At the same time, this is impeachment. Its really serious. Its a Political Risk any time you do it but especially when you have a president who has a tendency to go off message, to deviate from the script. Neil we were dealing with wilbur ross, he said we are going to be talking about trade agreements, we are going to be talking about lower taxes, cutting regulations. If the democrats want to pursue this, have at it. That i would think would be his approach. You could make the argument as i think you did earlier that this is all one way, the ones who voted for this were all democrats. The ones who voted against it were all republicans and two democrats in vulnerable districts. I dont know if its worth his doing. Yeah, again, i just think its a Political Risk here. Its maybe going to end up being one he decides to take. Then again often hes gotten himself in trouble not because hes said something but because hes said something and gone off message. Thats the risk. Neil we will take a quick break and find out what we can on this trade progress or we will see, the devil is in the details. We simply dont know the details. Meanwhile, california is moving right now to reduce the punishment you get for stealing stuff. Not quite that simple. Im working to treat every car like i treat mine. Adp helps airtech automotive streamline payroll and hr, so welby torres can achieve what hes working for. 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With over a quarter of a million clients worldwide, were one of the most dependable gold distributors in america. Give us a call today to get started. Neil all right. How deirdre got this assignment is beyond me. Shes in Fort Lauderdale, florida. I think they call it a yacht convention. All the yachts get together. Whats going on, all that stuff. Thats beautiful. Reporter it really is. I have to tell you. It is officially called the Fort Lauderdale International Boat show but convention is a good secondary title. But the boat im on right now is really meant for the next generation of buyer. It can be yours for a cool 23 million but these are for people who really want to explore. Not that the other yachts we have been talking about have been party boats, quote unquote, but this one you can really see something. Im showing you right now this helicopter which by the way, i have to tell you, is sold separately at a million and a half. I dont know if we can pan down and just show you all of these panels open up and then theres this kind of metal platform that comes up. Essentially, its a helicopter that has its own elevator and then this is stored in the garage underneath this yacht which is about 160 feet. Im just going to walk you down here on this side and show you some of the other elements that we have. Its a company from new zealand that actually built this yacht. The broker is ocean independent. Essentially, this can go around the world and its been around the world more than a few times. Its actually even gone through, traversed, if you like, the northwest passage. Still obviously in style, you can see this dining room, theres a proper living room and sitting room. But one of the brokers told me who is representing this boat, he said listen, the next buyer of this boat has to be very similar to the late paul allen, microsoft cofounder, and really want to use the boat, really take it out. Thats why the helicopter is there. Thats why there is this idea of they told me even helicopter fishing, helicopter skiing. The broker said this is really for people who want to get out there, maybe even go to antarctica, for example. This boat can go halfway around the world before it needs to be refueled. It is a yacht, it is obviously very fancy and very pretty but it is also basically built to get out there. We leave you with lets just call it a little tough luxury. Back to you. Neil man, oh, man. Thats some beautiful stuff there. Thank you very much. We have it on very High Authority that Charles Payne was set to close on that deal when they wouldnt include the helicopter, he said thats it. Charles actually, i got in and it was too small for me. Neil the money flows when stuff like that is selling, right . Charles some people would consider those a red flag, thats for sure. Got to tell you, theres so much wealth in the world. I mean, we created 600,000 new millionaires last year in this country alone. Thats one of the reasons i think when you have the market at these levels, its good news but its also bad news in the sense that some people are going to say the rich are getting richer and what about the rest of us. Neil yeah, i know. Its already happening. You know, the latest push up in the market seems to be based on the latest reports we are getting that china and the United States have come very close dotting the is, crossing the ts on the last few details left of phase one of this deal. If that is indeed the case, what do you expect . Charles i think thats next year although i will say, the december 15th tariffs are probably going to come off and that will help the market later on this year for the yearend rally. We are in the middle of earnings season and the earnings are strong. The jobs are strong. In the last three months, a million americans came back to the labor force. Blue collar wages are rising faster than overall wages and rising faster than they have in more than a decade. We are just in an amazing sweet spot right now where success begat success. I think we can keep it going. Neil earlier when we were talking, you got into this notion of all right, is the market getting ahead of itself. Normally that would be the case if everyone and his uncle were talking but theres a great deal of trepidation and caution and large cash positions on the part of a lot of people. That could contain those fears, right . Charles the experts have been caught completely flatfooted. The bank of America Merrill lynch survey, its about 750 billion in managed money around the world, they are sitting on the largest cash position in more than a decade. They have no faith in this market. They have been concerned about almost everything. They will have to catch up. By the way, individual investors, 35 bullishness, more investors are neutral than bullish. Theres not irrational exuberance. There has been irrational pessimism and the pros will certainly have to catch up because like that old trick they like to buy the winners at the end of the year, say hey, we were in those, too, i dont think that old School Window dressing is going to work this time around. Neil the old window dressing. Thank you very much. Look forward to your show in about 12 minutes. Something about the magic of charles, he starts talking and people continue buying. We are now up 273 on the dow so im doing the math backward in my head, a little more than 40 points away from an alltime high there. S p is already in record territory. The nasdaq and the way we are going, we could make it a hat trick today. More after this. This piece is talking to me. Yeah . So what do you see . I see an unbelievable opportunity. I see bestinclass platforms and education. I see awardwinning service, and a trade desk full of experts, available to answer your toughest questions. And i see it with zero commissions on online trades. I like what youre seeing. Its beautiful, isnt it . Yeah. Td ameritrade now offers zero commissions on online trades. Neil all right. I think they call this a california conundrum. Its called prop 47. It would ease punishment for those who shoplift so if you are in california, steal less than 950 in valuables, you will no longer be facing a felony. The police are saying they want to focus on more serious crimes. We are separately told a lot of people are actually going into stores with a calculator. I dont know. Ja jeanne, what do you think . We have seen this push to really decriminalize to a certain extent into new york. We have seen it on the coasts and we have seen it in california. There are reasons for it, and the police have made that case. But on the other hand, there is a big fear that, you know, going back to new york in the 1970s, if you dont punish low level crimes, broken windows and other things, the crimes escalate. So these are the kind of moves historically you see when times are good and crime is low and the stock market is good but when things start to go bad, they go bad very quickly. Its got to really be watched. I think thats a real fear. Neil part of the argument for this sort of stuff is they are legalizing marijuana and all this stuff, there are more important things for Law Enforcement to be zeroing in on. Different, i grant you, but what do you think . I think its a tserrible ide. I think state governments have to do a better job. They have to deliver for the people who live in the state. Like i was saying about new york before. I think new york and california, although they have lost so many people to the texases, floridas and New Hampshires, if they dont start delivering for the people that are there living in o continue living there, they have to be voted out and you have to bring in a government that will support the people and give the people a good quality of life. Neil i want to switch gears a little bit. Jillian, you are a renaissance woman. In saudi arabia, they are hosting the first womens wrestling event ever. This is the same year that they granted women the right to drive. You can drive and now you can fight. Yeah. Neil what do you think of that kingdom . Still not great for womens rights. I think the fact we are talking about it like oh, gosh, they can go out and fight but with costumes that are more modest here. Its a pretty good indication of how repressive that country is. [ speaking simultaneously ] you can drive, you can wrestle and i think it is part of an attempt on the part of the saudi arabia for monetary and financial reasons to appeal to the rest of the world and to make the case we are opening up. And yet you look and the openness is something you really have to question. Neil thats going to be very popular. It will be. If you look at the tape, the young women, the young girls watching this, they are going to want more rights for the next generation which is a big positive for them. Neil thats where this stuff usually leads, right . Final word on the subject. Guys, thank you all very much. Busy news day. Good luck. You are running in the marathon . Im trying to run the marathon. First time. Neil i will be watching. Thats amazing. In the meantime, we do have stocks, you know, racing ahead right now. The dow a little more than 45 points away from a record. Weve already got the s p and nasdaq comfortably there. Doing all this, of course, is a very sort of goldilocks employment report we got today. Wasnt nearly as weak as some had feared. Month hi no hint of inflation arkansary e and between that and good earnings, the wind is at this economy. Clearly the markets back. Well be right back. Does your broker offer more than just free trades . Fidelity has zero commissions for online u. S. Equity trades and etfs, plus zero minimums to open a brokerage account. With value like this, there are zero reasons to invest anywhere else. Fidelity. Neil all right. Optimism that Charles Payne was showing this morning when this, employment report came out, bearing fruit again. On a lot of investors looking at this, the added prospect that maybe we can nail down this phase one trade deal with china. It is combining for a recordsetting advance today at corner of wall and broad for the s p 500. Nasdaq comfortably in record territory. The dow not all that far from record territory a lot to chew on from my colleague and good buddy Charles Payne. Charles have a great weekend. Were having a good start to the weekend. Im Charles Payne. This is make an money. A blockbuster says the economy is full steam ahead. We have exclusive reaction from the white house. There are new reports coming out just now, the United States and china have reached a consensus on principle after more trade talks. Plus im going in depth on the message that im seeing from this earning season. President trump moving from the towers of morning to the beaches of florida. Why the lifelong new yorker is flying south permanently. Elizabeth warren has her medicare for all plan. How she will pay for it. She says the price tag