It shows, by the by, that the labor market is still strong the, consumers and wage earners are still strong. As i said, america is working. I think people are underestimating the underlying strength of this economy, and i want to also add this it is a middle class boom. This is a middle class boom. This is a blow outnumber, you know . Well see if the next one and the one after that are great, but theres no question this is an outstanding report well above expectations. Maria meanwhile, as expected the Federal Reserve cut Interest Rates for a third time this year by another 25 basis points. The First Reading of the u. S. Gdp grew at better than expected rate of 1. 9 . Joining me right now is jason brady, president and ceo of Thornburg Investment management. Its great to have you, thanks so much for being here. Sure. Maria you are managing, what, your 14 billion fund is the income builder fund. This is, what, global dividend payers . A supportive element of fixed income, exactly. Maria how do you want to allocate knowing what we know to do . Sure. Its a global portfolio, so youre looking at where are you finding growth, but where are you finding value, and thats that intersection. Right now what we look at is valuations in some of those dividend payers are pretty interesting. The financial sector, especially in the u. S. , is growing nicely, and its cheaper relative to itself and history, and theres other areas like energy that look interesting on a global basis. So to those kind of more value stocks look pretty interesting to us, and thats where were putting capital. Maria youve got the Federal Reserve lowering Interest Rates another 25 basis points. People are looking for yield. Youve got to believe dividend payers are going to get a lot of interest. Is that what youre seeing . Actually, no. Youre seeing folks chasing growth. Youve seen that in both public and private markets, the wework saga being one. But people have been not so interested in kind of the basic blocking and tackling companies, compounding companies. No, actually, i think theres some real value there. Maria whats the best dividend payer that you can think of . I mean, look, youve got rates, you know, at 1 on the tenyear sure. Maria youve got rates in europe negative. Youre talking about what kind of a competition with the dividend payers . Well, lets go to whats the biggest gap between where a companys funding itself and what we get data from the stock, and that would be royal dutch shell. Royal dutch is funding itself at negative rates. This is in euros, but the dividends is in the 6s. Maria ill take that in this environment any day, wow. So why am i going to go rush into fixed income where we know rates are being pushed down for policy reasons . Its a struggle to find yield there. So rather than reach for yield there, why dont i let my equity component do some of that income work for me . Maria i love this idea. Okay, so do you worry about the european economy though . Because youve got a royal dutch paying this great dividend, but the europeans have been really with hard pressed, unable to generate any growth. For sure its a concern. And i would say that were in a manufacturing recession in europe. Especially in germany. You can see that from pmi numbers. From royal dutch perspective, look, oil is fungible. You can move it all over the world. Royal dutch shell is a large and global company. Is it much different from exxon and what it does . No, it just happens to be located in europe. I think there is that concern for the european economy but less so except on a global basis for growth maria what about china . This week we saw the chinese come up with this idea that maybe its going to be harder than people think to get a trade deal done . That, obviously, impacted markets a bit. Although the president came back and said, look, were going to find another mace to sign it because theres not going to be an a apec in chile. Yeah, look. China is ine credibly important to investment today. I think trying to figure out when and where the trade deal might be signed is probably a difficult thing. When you step back and say chinas the worlds second largest economy, it is slowing, but it is also relative to dynamic, and its carrying a huge burden from Global Growth per sect andive. Its perspective. Its still going to grow in and around 6 president which is much, much higher than anywhere else. Weve got to look at it. But im not, im not trying to follow where the president ial planes going to see where this trade deals signed because i dont think thats going to happen particularly soon, and its not really relevant maria and we dont know, but what is relevant is the chinese economy. For sure. Maria you mentioned the pmi, the purchasing managers index. Right. Maria the pmi in china this week was below expectations, manufacturing slowing there as well. Do you worry it has an impact on the u. S. Economy . I do, but much more on the rest of the world. So the u. S. , obviously, has trade with china and back and forth, but the u. S. Is a pretty closed economy relative to others. The question generally is does that flow through to weakness in the u. S. . Maybe, maybe not, but it probably nows through to weakness across the rest of the globe. Maria and the fed this week with their third cut, a lot of people felt like maybe thats the last one for a while. What did you hear in terms of the language in terms of educating us for whats ahead . They focus on that language pretty significantly, right . He moved from at, the word at to word assess. Maria right. Thats what happened. Maria last statement in front of us, and started with, you know, figuring out whats different. Exactly. And thats the difference. Its a significant difference. So as you say, a lot of people say, okay, this is the last cut, the third cut the haas one because thats what the fed said, at, assess. Before that the probability of an additional cut was above 60, now its about 20. Maria wow, 20 chance . Of another cut. So really were here at three. Historically, and the market data set thats not good, three cuts is really about as much as you can get. Maybe another way to think about it is any more than three cuts, and the feds just admitting they really screw up. Maria jason brady, thank you so much. 43 billion in thornburg. Stay with us, the former ceo of ford is with me, mark fields. Uaw and gm end their stand off. What does the deal mean for the rest of the Auto Industry . You always want to go first when youre negotiating these contracts every four years. Mark fields gives his take when wall street returns. Muck. 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But super poligrip gives him a tight seal. Snacking can mean that pieces get stuck under mikes denture. Pursuit of solutions to help block out food particles. So he can enjoy the game. Super poligrip. No, just a sec. What would it look like if we listened more . Could the right voice, the right set of words, bring us all just a little closer . Get us to open up . Even push us further . It could, if we took the time to listen. The most inspiring minds, the most compelling stories. Download audible and listen for a change. Maria welcome back. Now it is ford and chryslers turn at the wheel now that the united autoworkers and General Motors have ended their 40day standoff which typically becomes a template for the rest of the industry. I spoke with the former ceo of ford motor to weigh in, mark fields. An important contract. If i had to characterize it as a boxing match, id call it a draw. The uaw won on economics, its a very generous package. Gm won on being able to reduce their cost structure by closing plants. But also more importantly, being able to retain their capacity down in mexico and their ability to allocate product over time. So its, its an important contract for gm and the uaw, and theres downstream implications for ford and for chrysler. Maria it dovetails into the usmca and what automakers or what up group jobs unions, rather, are going to get paid in u. S. , qanta and mexico. So canada and mexico. Explain how the u. S. Worker is doing right now based on this contract. Essentially, what theyve been able to do is lock in bonuses, lock in wage increases and insure that their health care doesnt go up in an environment where the market is slowing down. And that is a very big win for the u a aw and uaw and their workers from an economic standpoint. And for gm, that will, unfortunately, what that will do, it will increases the Competitive Labor cost gap versus the foreign nonunion makers here in the u. S. Its absolutely going to do that. But, you know, lay wore is about labor is about 5 the cost of the vehicle, but gm felt they got some other things that were much more worthwhile that will save them billions of dollars maria so what does this mean for the others like ford and chrysler at this point . Are they at a disadvantage now . Well, you always want to go first when youre negotiating these contracts every four years, because you basically get to set the pattern. And this is a term called pattern negotiating which doesnt mean the agreements are exactly the same, there are nuances and differences depending upon the companies. I think in chryslers case theyre actually the most vulnerable in terms of labor cost increases. Because in this gm contract they shortened the time where a temporary worker can be made a fulltime worker who gets paid more, and theyve shortened the time they have these inprogression workers that they hire. The haas contract it would take last contract it would take eight years to go from entry level wage to full wage. This new contract takes it could be to four down to four years. And chrysler, since the great recession, have hired the most workers, and as a percentage they have the highest temporary workers. So thats going to be an issue for them. Maria all this as the world is slowing. How would you characterize whats going on in terms of the market for autos across the world . Well, the markets are slowing. And essentially what the automakers are facing around the world, theyre facing slowing global markets, theyre facing these investments in electrified vehicles which is still an untested market, theyre facing pressure on Climate Change from governments and consumers, and theyre facing a trade war which is completely disrupting their supply chains. And so when you look at the markets, in particular china is down, its going to be the second year in a row china is down. Europe is down and the u. S. Is down. So its, the market is slowing, and you seeing more incentives, youre seeing that hit some of the automakers finances in their reportings, and thats important because this is a time period where theyre relying on their traditional business to fund these new investments in electrification and autonomy. And thats where youre seeing so many oems team up, particularly on autonomy and electrification, going forward. Maria whats your take on some of the california agreements with some of the oems versus the epa . California wants to make its own rules when it comes to fuel standards. Right. And the most important thing for carmakers is to have certainty in the regulations and to have one National Standard. Because you can imagine the engineering costs if you have to do multiple fuel economy standards for california and other states. And so i think this agreement with the four automakers with california was actually pretty smart. First off, its nonbinding, so its voluntary. But what they basically did was they were able to say to california, okay, we recognize your right to set your standard, but in return for that, they got a lower standard than what was on the books already from the obama administration. And thats a good thing. They got certainty and they got a lower standard. But theyre playing kind of both ends here because thats an agreement with california, which is nonbinding. If the epa comes in and the Trump Administration says were stripping that ability of california for you to set, you know, get a waiver which was put in place a number of years ago, then the oems will get a lower, even a lower standard and at the same time keep in the good graces with california because they appeased them. So well have to say see how this plays out, but getting one National Standard very soon is absolutely crucial. Maria dont go anywhere, Palmer Luckey is up next. Remember, he sold oculus to facebook back in the day. Today hes working on drone technology. Hes up next. The ethics of a. I. , what will this mean for military applications . Theres ethics on the side of the creation of Artificial Intelligence and ethics on the side of deploying Artificial Intelligence. Palmer luckey weighs in with maria when wall street returns. Imagine traveling hasslefree with your golf clubs. 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. Seeing what people left behind in the attic. Well, saving on Homeowners Insurance with geicos help was pretty fun too. Ahhhh, its a tiny dancer. They left a ton of stuff up here. Welp, enjoy your house. Nope. No thank you. Geico could help you save on homeowners and renters insurance. vo o could help you save 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. Maria welcome back. Artificial intelligence, a. I. , is increasingly becoming prevalent in military applications, so much so theres a greater focus on ethics surrounding the use of a. I. , i spoke with Palmer Luckey about that. His Company Develops autonomous drones for the Defense Department and the industry. The drone system that were developing is called anvil, and it works in conjunction with the zenly towers century towers that weve been deploying with the military. Basically, the towers can detect drones in a very, very large bubble using radar and then cue our anvil drones to go out and knock them out of the sky. The goal is to be able to detext and respond to hostile drones over military bases or Critical Infrastructure within singledigit seconds of them trying to attack that base. What were really trying to do is make sure the skies dont turn into the wild west. Youve seen a lot of drones i attacks happening in places like saudi arabia, afghanistan, and even things that are not public yet where drones have attacked military installations or surveilled military installations. So what were doing is making a tool to that we can control what is. In our sensitive air space. Its been going great so far. Maria this is so important in a world where weve got Artificial Intelligence, and a. I. Is being used across the world by our adversaries as well like china. When i came to visit you and you showed me the drone zone and what you were creating and producing there, i was struck by the fact that some of these drones had the capability to see very far in front of you and see all things around you. Explain that a bit. Sure. So the cool thing about the trones that build drones that we build is they have onboard sensing and processing capabilities. Its not like you would treat a drone from best buy. Youre not telling it go left, go right, basically a remotecontrolled airplane. Youre getting what you would with a real pilot in a real helicopter. I want you to fly this perimeter and look for anyone whos approaching it. I want you to fly over this area and look for this white truck. Or even i want you to fly to this facility and watch it from far overhead, and as people leave that compound, i want you to follow them and see where they go, all without a person having to control that minute by minute. That means you can have one person managing dozens of autonomous drones rather than a whole team of people like is currently the case with most military unmanned systems. Maria yeah. And one thing that was talked about in the past is the ethics that america has in terms of implementing some of these things. Theres a real debate about implementing a. I. , Artificial Intelligence products, in an ethical way because our adversaries like china also, theyre using a. I. , but they dont have the ethics that america has. Absolutely. And i think theres two sides to that. Theres ethics on the side of the creation of Artificial Intelligence and on the side of deploying. On the creation side, china is willing to train their Artificial Intelligence using data that they get by surveilling their entire population, everything they do, everything that theyre saying, everything that theyre buying. And that has the side effect of allowing them to control their population and remove the undesirable elements. Theyre also willing to steal the intellectual property of u. S. Companies and other companies around the world and turn that into things that theyre able to bend to their own needs. And so thats kind of on the creation side. Then on the deployment side, chinas willing to do things that the United States is not willing to do. The u. S. Has a really strong framework around responsibility and responsibility and escalation in the u. S. Military. A person always has to take responsibility for the actions of any system. Whereas china is willing to allow their Autonomous Systems to act without any kind of human command or control x. I think that that means were going to have to be a lot better than them if we are going to win and not play dirty. Maria tell me about the company, where the growth comes from, and i also want to get your take on this current conversation about regulation within the tech sector. Im talking facebook, where you used to work, you sold oculus to facebook, google and others are more powerful today than we, than they ever have been and that we ever expected, palmer. So should they be regulated tightly or at least like a Media Company if theyre creating content . Sure. On the growth side, were growing because we have some of the best technology in autonomy in the defense space. The major defense contractors are not equipped to build autonomy Artificial Intelligence the way that a lot of Technology Companies are, and i think thats one of the reasons weve seen so much success. On the regulation side, weve talked about this before. I lean libertarian. I am not generally a fan of more government regulation in the intervention in how the private sector works. At the same time, our government is giving special protections to internet companies, they were specifically intended to preserve free speech, that were intended to foster free discussion of all ideas. And im not sure we should be giving those special immunities which, you know, your show does not enjoy, for example. Maria thats right. And, you know, the special liability protection, i dont think we should be giving these companies special protections when theyre not using them for their intended purpose. And, you know, are they a Media Company, are they not . Its hard to say. Im generally a fan of private companies being able to censor whatever they want, but we shouldnt be giving them special Legal Protections to do so. If a Company Wants to censor what people are saying, if they want to say that certain ideas, certain people are not allowed, then they should have to compete with all of the other companies on an even Playing Field and not be, get special protections. Maria my thanks to Palmer Luckey. Dont go anywhere, more wall street right a after this. Audreys on it. Eating right and staying active . On it audrey thinks shes doing all she can to manage her type 2 diabetes and heart disease, but is her treatment doing enough to lower her heart risk . [sfx crash of Football Players colliding offcamera. ] maybe not. Jardiance can reduce the risk of cardiovascular death for adults who also have known heart disease. So it could help save your life from a heart attack or stroke. And it lowers a1c. Jardiance can cause serious side effects including dehydration, genital yeast or urinary tract infections, and sudden kidney problems. Ketoacidosis is a serious side effect that may be fatal. A rare, but lifethreatening bacterial infection in the skin of the perineum could occur. Stop taking jardiance and call your doctor right away if you have symptoms of this bacterial infection, ketoacidosis, or an allergic reaction. Do not take jardiance if you are on dialysis or have severe kidney problems. Taking jardiance with a sulfonylurea or insulin may cause low blood sugar. Lower a1c and lower risk of a fatal heart attack . On it. With jardiance. Ask your doctor about jardiance. On it. With jardiance. Its been reported that theres a cyberattack on business every 39 seconds. Ouch. I dont even want to think about it. Comcast business has a solution. We go beyond fast with a cloudbased Security System that automatically updates, so you always have the latest protection. Phishing. Malware. Risky sites. It can help block all of that. Its one less thing for us to worry about. Comcast business securityedge automatically protects all the devices on your network. Call 18005016000 today. Maria welcome back. Coming up next weekend on the program, we are talking entrepreneurialism and startups. Ill talk to founder and ceo of sounder i long with the founders of harrys. Join us to talk about these industries with these long runways. See you on sunday morning futures live on fox news channel, 10 a. M. Eastern. I will be speaking with former chief strategist for President Trump, steve bannon. Catch the show live on fox news, 10a. Also start smart right here on fox business every weekday 69 a. M. Eastern for mornings with maria. Join us every morning as we set the tone. Thatll do it for us right now. Thanks so much for joining me. Have a great rest of the weekend, everybody. Ill see you again next time. Gerry hello and welcome to wall street journal at large. Well, the impeachment inquiry into President Trump is now official. Under pressure from the president and republicans, House Speaker a nancy pelosi called for a formal vote on the matter, fittingly on halloween, and the resolution passed by 232 the votes to 196. Every republican and two democrats from districts won by trump in 2016 voted no. Pelosi and other Democratic Leaders have been very cautious in their wording of exactly what the measure means. They insist its not an