Transcripts For FBC Mornings With Maria Bartiromo 20240713

Actions taken on pandemic and how money is being spent today. Getting america back to work today, larry kudlow will join me today at 8 30 a. M. Eastern live on the reopening of American Economy and rebound hes expecting and what if any additional stimulus is needed. We will also get into china. Turn into markets this morning. Futures are turning direction this morning. We are expecting weak opening this morning for stock prices, s p futures down 10 and nasdaq futures lower by 12 this after positive news from moderna on vaccine trial help fuel strong rally for stocks. Dow industrials up 911 points yesterday almost 4 . The nasdaq was up 220 points and s p was up 90 all the major indices up 2 and a half and 3 and a half percent. A closer look at the Pandemic Impact on retail this morning, this morning we will get walmart, hem depo who remained open reporting earnings. More stores and malls are reopening even in the face of bankruptcy elsewhere. Who would be held responsible . Attorney general bill barr saying a criminal investigation of former president of barack obama and Joe Biden Sun likely, they are looking at criminality else subpoena where this as senator graham pushes to subpoena comey and mccabe and other obamaera officials. Prepare to go kick off what many hope will be a full season. Mornings with maria is live right now. We have earnings miss right out of the gate. Home depot with quarterly numbers. Cheryl casone with the numbers. Cheryl earnings missed, earnings per share, 208. Estimate for 227, they missed on that, revenue coming better than expected and we will take it at this point, 28. 26 billion, estimate 25. 4 billion. More importantly home depot suspended their outlook, they are not getting any guidance whatsoever. Also they gave us same sales store numbers, that includes other countries, but in the u. S. 7 and a half percent jump. Again, remember, this is the First Quarter for home depot. They are talking about some of the expenses and curve for Employee Support and giving us a hint of what the Second Quarter will be look like because they started putting support for employees and home depot down almost 2 and a half percent in premarket. Right now we are waiting on walmart. We will bring those numbers to you when we get them in the news room back to you. Maria we have the stock down 2 and a half percent. Setting the tone Cheryl Casone, thank you so much. Joining us right now cfra senior equity analyst, gary nelson and fox business dagen mcdowell, National Taxpayers union senior fellow mattie duppler. What does it tell us about the month of april . What i think it tells us is uncertainty and the vast of majority companies are withdrawing guidance. Theres no visibility regarding the fore looking outlook. One thing that home depot has going for it is people are staying home, theres a lot of Home Improvement thats happening, so we thought there was a chance that they might not withdraw the guidance and they might revise it and its just a little bit of a surprise. Maria yeah, and its worsening as we speak. Its down dagen mcdowell. Dagen i was looking how high is up year to date and thats why my head is down like that. A stock its up 12 year to date. Thats the year to date reform, so the fact that we are in the worst economic imenvironment that we have seen environment that we have seen since great depression, bankruptcy, nieman marcus, j. Crew and is it any way to know at this point what the retail landscape knows looks like even 6 months from now. Maria garrett. Garrett its very difficult and we know theres going to be a lot of distress, thats why you have seen bankruptcies and jp penny most recently and really any other retail related to shopping malls is going to be facing a lot of distress and thats why we Like Companies like walmart, cosco, we think those companies will be winners longterm. We view them as pandemic winners and they will pick up market share and particularly higher market discretionary categories where they make a lot of their margin. Maria well, we will get more information on the whole environment when we hear from walmart and target, those numbers out this morning. We will have those for you. In the meantime we have stimulus being thrown at the economy. This morning we will have testimony, federal chairman jay powell and Steven Mnuchin to testify this morning and report in cares act. Whats your take, are we going to see more stimulus rather than later or do you think this is going to work in terms of lifting this economy from 10 trillion thrown at the economy between the between the Congress Acts and the fed . Garrett so what we think its doing is helping provide some support to Consumer Confidence. We had may Consumer Confidence numbers that came out on friday and it was much better than expected and, you know, representative balance from the april numbers. We do think theres going to be another round of stimulus. Theres a lot that needs to be worked out between the two sides of the aisle but we do think theyll be another bill and what is really helping to do is support Consumer Confidence which is extremely important, consumption accounts for 70 of usgdp and you cant have consumers throw in the towel and its critical that they continue spending through the period to pull us out of the recession. Maria yeah, which is why home depot among others are suspending 2020 outlook. You just have no visibility in this economy, Jon Hilsenrath. Jon you dont and, you know, we are going to be talking a lot today about home depot and walmart and the big guys. What im word right now is the little guys just driving down the street yesterday. Im seeing so many boarded up shops and those are smaller retailers who dont have the access to funding that a walmart or a home depot have. The other thing im word about is permanent versus temporary, you know, at the start of the crisis we were hoping the shutdowns were going to just be temporary and people would come back, two months later, we are seeing permanent shutdowns and thats longterm scarring on the economy. Maria it sure is, dagen. Dagen quickly i want to add on Small Businesses just based on the back of my envelope math, 85 of Small Businesses in the country will not get their hands on any paycheck protection money and the Federal Reserve which the wall street journal writes about is writing about Lending Facility of mediumsize businesses and i have not heard good things from businesses and even banks that are thinking about participating in it. There are a lot of of hooks and there are a lot of questions about how like they dont want to take out a loan for the links thats required in the program. Maria yeah, it may come up today at jpmorgan annual meeting which is taking place today. Garrett, good to have you this morning, Garrett Nelson with the latest there. We want to take a look at and to you, we will see you soon, sir, some of the top stories that we are watching this morning. President trump is threatening to make freeze to World Organization permanent if it does not make substancetive improvement within 30 days. Trump suspended funds as his administration investigated its response to the covid19 pandemic. The president has accused w. H. O. Of being china centric. President trump also telling reporters that hes been taking hydroxychloroquine to prevent the coronavirus for a week and a half. At some point i will stop. What i like to do is i would like to have the cure and or the vaccine and i think it will happen first. What do you have to lose . Okay, what do you have to lose . Maria the president held drug as potential gamechanger in the battle of coronavirus, medical experts have said that theres no proof its an effective treatment for covid19 and can cause serious side effects, some of them fatal. The financial pain from covid19 hitting home, more than 4 million americans are not making mortgage payments right now according to Mortgage Bankers association. Fewer homeowners are requesting relief from Mortgage Companies as stay at home orders are lifted across the country. Nascars return to the track, success, real heros 400. First race since coronavirus drew 6. 3 Million Viewers on fox on sunday. Thats the highest rating of any sporting event since daytona 500. A lot to come. Dont miss it. Former acting attorney general, then retired four star general jack keane to talk about alqaeda attack. California congressman elect mike garcia talking about flipping his district red. Hes going to get sworn in today. We will speak to him before that. And the former ceo of wynn resorts steve wynn talking about reopening america today. Kennedy here talking about powell and mnuchins testimony today and larry kudlow on reopening america, plus mark cuban is here on his ideas for more stimulus for americans, we have a jampacked 3 hours, do not miss a moment of it. Lets slip in a break if we can. Who knew what and when, investigation of obama officials hitting a road block. New face of travel, how airlines are adjusting to new safety protocols. We are back after the break. As did president obama and Vice President biden, whatever their level of involvement, based on the information i have today, i dont expect mr. Durhams work will lead to a criminal investigation of either man. Maria that was u. S. Attorney general william barr saying he does not expect john durhams investigation to lead to criminal charges against the former president and Vice President. Joining me right now former acting u. S. Attorney general Matt Whitaker. Thank you so much for joining us. Matt good morning, maria. Maria why they were investigating trump goes back to the oval office, goes back to president obama, given the timeline that we have on january 5th, there was an important Oval Office Meeting where obama brought up the logan act as they tried to take down general flynn. Your reaction to all of this . Matt well, my reaction is the American People want accountability and they want to not only know what happen but they would like anyone that broke the law to be prosecuted and i think what bill barr was saying he doesnt have evidence and we have to have regular order at the department of justice and we have to follow the law to restore integrity and we cannot follow the same play book which obama doj did, cut corners, lawless like we saw with obama holder like comey who brought nightmare to our country. Maria yeah, and the name of your book is above the law because they were acting above the law based on what we know right now, two out of four wiretaps of carter page were unlawful. We will know from john durham soon. We know that there were informants thrown at the Trump Campaign and we know the fbi changed document and and said that carter page was not was not a source of the cia when, in fact, he was, all of these things, so do you think we will see accountability. What struck me about the comment from ag barr is we are not that we are not going to look at obama or joe biden, we will look for criminality somewhere else i worked with john durham on another investigation that was involving leaked of classified investigation. I know that he will be thorough and i know that there are targets of this investigation. Attorney general said that yesterday and i really i think, you know, theres a whole laws that appeared to have been violated. All you have to do is look at the mike flynn prosecution. Its another clear example of the lawless culture at the Obama Department of justice and this is where, you know, i think not only mistakes were made and poor judgment was exhibited but theres a possibility that folks would be held accountable for that exercise of really above the law behavior. Maria yeah, President Trump reacted to barrs statement saying hes going to relinquish control and not going to get involved. This is what he said yesterday. I have absolutely no doubt that obama and biden were involved. It was a takedown of a president regardless of me. It happened to be me. I will let the attorney general make all the decisions. Ive stayed out of it because its the appropriate thing to do. Maria dagen mcdowell, jump in. Dagen i wanted to add one thing to the discussion, maria, the most important thing that bill barr said was this, the Law Enforcement and intelligence apparatus of this country were involved in advancing a false and utterly baseless russian collusion narrative against the president and the media much of it part of pushing disinformation and the fable to take down a president. Maria yeah. Thats right. And it was as simple as one Political Campaign wanting to take another Political Campaign. Hillary clinton paid for the dossier. The fbi used the dossier and ran with it and used it to wiretap Campaign People and tried to entrap them. That story yesterday, matt, yesterday we had kt mcfarland and i was so struck by it, what happened to her is exactly what happened to general flynn is just she wouldnt talk to them without a lawyer so they didnt entrap her the way they did general flynn but they tried and the president told me last week when i interviewed him we will hear more. I thought i knew all the details of the story in covering 3 years, he said theres more coming in terms of the entrapment, matt, final word to you. Matt final word that theres no doubt to take down a president and undo the election of 2016. I outlined all of this in a new book that is coming out today and it really is a sad chapter in american history. We need to make sure this never happens again. Maria all right, i agree with you, we will see, we will check out the book, Matt Whitaker above the law, thank you so much, congrats on the book. We will take a break, when we come back, Tropical Storm coming arthur. A tripledigit loss at the open despite almost 1,000 point gain yesterday, whats driving markets this morning . We have it for you when we come right back. Maria welcome back, new restrictions, nasdaq reportedly to unveil new rules on initial Public Offerings to make it harder for companies to list in the Stock Exchange. During my exclusive interview with President Trump last week i asked him for tougher rules for Chinese Companies listed. Would you force Chinese Companies have to follow accounting rules . We are looking at it very strongly. You know its run by the obama appointments and we said you have to do and we will find out whether they will do it very soon and if they are not, we will replace them very quickly. We are looking at your second part of your question, we are looking at that maria a lot of activity on china and the Capital Markets in the United States. New report says nasdaq will require companies from some companies to raise 25 million in initial offering, mattie, this does not speak to the issue that they are not following u. S. Accounting rules but making it harder or putting in more rules for ipos from china. Mattie thats right, maria, its not a whole sail blocking of Companies Participating in the nasdaq. What it is requirement of capital for companies that want to ipo and the reason its going to hit Chinese Companies is because a lot of Chinese Companies want to come to the United States, use the Capital Markets in order to increase the value of their business and then cash out because they cant do that in china because of the rules and regulations that are there. Now, remember, theres a twoway street here, we have a Huge Consumer base in china, 1. 4 billion people, american Companies Want to participate in their market but there needs to be as you said with the president accountability and transparency to make sure that our companies arent paying price for the commerce. Maria yeah, we just saw a huge selloff and a company suspended from the nasdaq because of this very issue. Do we have a chart of that . A company that was trying to be be the starbucks of china and people did not understand the accounting and here we had the company plummeting, losing all of its value and, of course, it has been suspended. We will take a short break, when we come back, the new face of travel how airlines are updating new safety protocols. We will be right back. Stay with us can my side be firm . And my side super soft . Yes. With the sleep number 360 smart bed, on sale now, you can both adjust your comfort with your sleep number setting. Can it help me fall asleep faster . Yes. By gently warming your feet. But can it help keep me asleep . Absolutely, it intelligently senses your movements and automatically adjusts to keep you both comfortable. So, you can really promise better sleep . Not promise. Prove. During the memorial day sale, save 1,000 on the sleep number 360 special Edition Smart bed, now only 1,799. Only for a limited time. To learn more, go to sleepnumber. Com show me what youre made of. So we showed it our people, sourcing and distributing more fresh food than anyone. Our drivers helping grocers restock their shelves. How were helping restaurants open popup markets. And encouraging all americans to take out to give back. Adversity came to town. So we looked it in the eye. And it wont be us. That blinks first. Maria welcome back, good tuesday morning, everybody, thanks so much for joining us. Im maria bartiromo, tuesday may 19th, top stories 6 31 a. M. On the east coast. Markets are pointing toward lower opening this morning after rock and roland rally yesterday dow industrials now down 143 points, s p futures down 16 and nasdaq futures lower by 28. This after yesterdays positive news from moderna on a vaccine trial fueled big rally in stocks. Dow industrials fishing at the high of the day, up 912 points. Almost 4 . Nasdaq was up 220 points, 2 and a half percent. Global markets this morning are following futures this morning, lower in europe, red across the board following a big rally yesterday, ftse 100 down 50 points and cac quarante down 63 and dax index in germany down 118. Jobless claims surging in the uk, more than 856,000 new filings for unemployment in the month of april. Thats the highest number month over month since 1996. Meanwhile European Union is moving closer to a unified response to the pandemic. German chancellor Angela Merkel and french president Emmanuel Macron proposing 545 billiondollar coronavirus fund. Markets rallied overnight in asia meanwhile following big news on wall street following moderna and vaccine trial. And as you can see it was higher across the board. Best performer is north korea on kospi. Fourth consecutive session, rising fourth consecutive session crude oil up and crude oil. North carolina says goodbye to Tropical Storm arthur, Cheryl Casone with the details on where arthur is headed next, arthur, good morning. Cheryl Tropical Storm arthur is moving out to sea after lashing north carolinas coast. There were heavy rains, strong winds and yes, there was surfing as you can see in the video. It closed high waists on the outer banks and on the mainland. Arthur still caused some dangers surf and rift currents for at least a day and there is your weather map of the country right now. Well, major changes in the air in the wake of covid19, wall street journal reporting those of white house fly will see temperature checks for both passengers and crew members and requirement to wear face mask. Other changes include fewer direct flights, new rules to use the bathrooms and longer wait to leave the plane once you arrive at your destination. Delta airlines, by the way will be adding flights to keep planes no more than 60 full. They will be adding back about 100, at least july and they will reassess themselves. Down and a half 1 right now. Jfk, atlanta, you will get some of your flights back. Finally a look at what is trending this morning on foxbusiness. Com. Tiktok with kevin myer a new ceo. Big move. Jcpenney filed for bankruptcy last week and toyota revealing two new vehicles online as the pandemic postpones auto shows across the country. Shopping for cars like we do for everything now online, maria. Those are all your headlines, back to you. Maria pretty amazing, cheryl, thank you. Countering chinas global influence this continues to be topic a, President Trump released letter sent to World Health Organization, warning it would cut funding altogether unless the organization takes step to curve its perceiveed china bias. I think theyve done a very sad job in the last period of time and, again, the United States pays them 450 million a year, china pays them 38 million a year and theyre a puppet of china. Maria joining me right now is fox news senior strategic analyst, retired general jack keane, general, always a pleasure to see you, thank you so much for being here. I believe the head of the w. H. O. Was pretty much handpicked by the Chinese Communist government and they continued to try to dominate un agencies, they have a number of leaders in place at a number of un agencies, do you think the president will have an impact here in jack oh, yeah, i absolutely do and the thing that is having most impact for certain is what china did in letting an epidemic spread into a pandemic and clearly the w. H. O. Is in the orbit of china and i think a number of things need to be done here, certainly the leadership has to go. They are so compromised and they have so defensive now, but secondly, we need to look at what is the w. H. O. Actually doing. Remember this organization came into fruition to prevent Infectious Disease spreading around the world and getting a pandemic like has just occurred and what have they been doing with all of this money, they have been chasing other issues that are important but not critical to the world. In other words, they have been chasing general wellness, they have been chasing obesity, they have been chasing Environmental Concerns around the world. Those are the things that are more appropriately dealt with inside each countrys also National Health problem. We wanted the w. H. O. To be focused on Infectious Disease. This organization did not declare a world pandemic dealing with covid19 until they are 111 countries infected. That is absolutely outrageous. They need to clearly get new leadership and look at what they are really doing. Maria and the pressure is coming on strong on china. The president is putting the pressure on. This morning we are talking about china in our Capital Markets after i asked President Trump about this last week with regard to the thrift fund. You and i have had this conversation many times and our military past and present investing in the Chinese Companies. The president says, no, no, we are not going to do that, we will pull the money and we are not going to have the thrift fund, 401 k money for military past and present who invest in some Chinese Companies. Explaintous once more, general, the threat from china as it relates to the military. You said before this is the fastersgrowing military out there and their goal is to be the number one military super power. Jack well, yeah, we have, you know, federal Employee Pension funds just like other defined benefit plans and major investment account in excess of 350 billion, 40 billion of that is an International Fund and 10 or 11 of that goes right into the coffers of the chinese, some of whose companies are supporting Chinese National security and military operations which makes no sense whatsoever, so all of that has to be relooked and most of it certainly has to be has to be stopped, but in terms of countering china, weve got to get on with this, we have a comprehensive plan to do it. We have its economic, geopolitical with our allies and also military. The longest pole in that tent is the military. We have got to catch up to advanced technology that is china has been pushing for 10 or 15 years while america has been involved in 911 wars, sequestration cuts, we have got to move in the right direction. Now this budget that the president has been pushing for the last 3 years is helping that and secretary esper is moving very hard to get us into the advanced technologies that are so desperately needed. Maria yeah, china has raised as much as 3 trillion or more in equity and debt markets in recent years and thats why we are taking a look at how the Companies Report earnings, they are not following and we will have a lot more with larry kudlow. The fbi finding that the shooter in last years attack at a Florida Naval base did have ties to alqaeda, the fbi get nothing help from the Technology Giant apple, you know that, as federal officials tried to unlock the suspects iphone during investigation. Attorney general william barr weighed in on this yesterday, listen to this. We asked apple for assistance and the president asked apple for assistance and unfortunately apple would not help us unlock the phones, thanks to relentless efforts and ingenuity of fbi technicians, the fbi finally succeeded in unlocking al shamranis phones. Maria general, your reaction real quick . Jack a few things here, first of all, what did we learn from this . One is that the radical islamic ideology is still persistent out there in the world and weve said many times this is a generational issue. The second thing is clearly dod should have had better vetting. They likely could have prevented the tragic incident from happening if we had done simple background checks on every one of the recruits that were coming in to the Training Programs and the third thing is i think the overall success of the program that we have against radical islam, look, there have not been isisinspired attacks in europe and the United States ever since we took the caliphate away from them. Theres been a dramatic change but they are out there and this is a reminder to us that we got to stay focused on alqaeda, we have to stay focused on isis, we are only interested in about 6 countries, we are not interested in the 40 plus movements they have around the world and we have to maintain focus on those countries. Maria yeah, well, we certainly are not talking about isis the way we were just a couple of years ago, general, great to see you this morning, thank you so much for your insights. Jack good talking to you, maria. Maria general jack keane, form former white house chief strategist steve bannon, former white house steve bannon right here because he said a multi vitamin alone may not be enough. And its my vision, my morning walk, my sunday drive, my grandsons beautiful face. Only preservision areds2 contains the exact nutrient formula recommended by the National Eye Institute to help reduce the risk of moderate to advanced amd progression. Its how i see my life. Because its my vision. Preservision. Some Companies Still have hr stuck between employeesentering data. A. Changing data. More and more sensitive, personal data. And it doesnt just drag hr down. It drags the entire business down with inefficiency, errors and waste. Its ridiculous. So ridiculous. With paycom, employees enter and manage their own data in a single, easy to use software. Visit paycom. Com, and schedule your demo today. Maria welcome back, bringing essential drug manufacturing back to america. The Trump Administration is awarding 354 million to richmond, virginia base, public Pharmaceutical Company which would produce ingredients for drugs in the United States to help treat covid19. Patients on ventilators as well as Pain Management drugs as well as antibiotics. Eric, it is great to have you on the program this morning. We had a conversation yesterday and i was really impressed with what youre doing there at at flow, talk to us about it. How are you going to manufacture the drugs that we need in america when we know right now 70 to have active drugs in our prescription drugs are made in china . Eric well, good morning, maria, thank you so much for having me. We at flow saw a huge challenge over a year ago associated with the vulnerability of our supply chain, the mounting drug shortage that is existed even before covid19 and our corporation was developed with a mission of providing highquality, lowcost Generic Pharmaceuticals and their ingredients through state of the art u. S. Based manufacturing, so what we are going to be doing is manufacturing end to end in america from precursor ingredient to active pharmaceutical ingredient to finished drug product with a fantastic team and unique set of partners who are going to make this all happen and we are delivering today. Maria this is amazing, this is the biggest contract in hhs history, by the way, we should say and you say that many of these drugs are already off patent so you can do it because there are pharmaceutical companies that own the patents to so many of the drugs and my was how are you going to move the needle to get the Pharma Companies to do this and bring manufacturing home but you say you can do it without their help . Eric well, we hope that this will light a spark and Many Companies that follow phlows model. We already have started manufacturing the medicines, in fact, within a few months of submitting proposal we were turned on by the froth and partnership with the Biomedical Advance Research and Development Authority to get critical medicines into the Strategic National stockpile, in fact, through our partnership with v civica, we were able to deliver doses to treat covid19 patients into the Strategic National stockpile, so our focus is rapid surge response, protect the key ingredients and then secure our future by bringing back a domestic infrastructure, securing our Industrial Base right here at home. Maria so eric, you will be creating, what 350 jobs or so, you will have this manufacturing in virginia which is great. Can you tell us anything about the drug that is youre going to be producing, where the most shortages that americans need to understand, what drugs they are short of right now . Eric sure, so what we started with and will be in partnership with the federal government, we started with an essential medicine list and then we looked at which drugs are for treating covid19 patients and then we looked at which medicines were in shortage as you know there are 200 medicines on the fda shortage list and this is getting worse week by week, this has been exposed during this covid19 pandemic. Maria wow. Eric our focus initially, maria, lets start with the medicines that are only made in foreign countries. Maria i see. Eric, this is really important news, we so appreciate you joining us first with it. We will be watching phlow for sure. Eric, thank you so much for joining us, and we will be right back. Helping people stay in their homes through mortgage Payment Relief efforts and donating 175 Million Dollars to help hundreds of local organizations provide food and other critical needs. When you need us, wells fargo is here to help. There are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Maria welcome back, the fight for treatment, theme for a lot of americans across the country right now as they face lockdowns due to coronavirus. I recently sat down with the author of sam houston and the alamo avengers, fox friends cohost brian kilmeade, Freedom Fighters of the past and present. Tell us why you wrote the book and how you got it out in paperback during pandemic . Brian you know, im just trying to incremental way introduce different portions, reintroduce different portions of our past and so happened many times that Things Writing in the past, i have to make it relevant when we talk about it but things just happen this way. This is sam houston the alamo avengers, im watching the salon owner battle again to stand up for herself and to fight what she thinks is unfair practices from the governor and she has right to earn a living and so do coworkers have the right to come in to work and thats really what the theme is, a whole bunch of americans went down to texas for a fresh start and when they got their liberties taken away by the mexican government, thats when they stood up, when they had no due process, no say of who was elected officials, when they were going to start taxing them it was game on and sam houston led a group of ragtag men to pull up unfathomable victory after devastating loss at the alamo and thats a story i try to tell to give a context of what makes America Great in the past so they can answer that question when asked are we an exceptional nation, they are not just going to say yes, i guess so because they told me that, they will fully have examples of that. Maria what do you make of the lockdown and what has occurred so far in terms of the reopenings . Brian well, i was thinking about it, i think that when youre born with freedom and liberty, when you the opportunity to go to the beach or open up a business we take it for granted. If we were coming from other societies where that wasnt allowed we would never take it for granted, 5 or 6 generations after we fought and won to get that can you make that relevant today . Maybe lets say for the right reasons, the pandemic says dont work, dont go to school, dont do any Recreational Activity and all of a sudden people say wait a second, im for being safe but what about the freedom to make my own decisions, small and large, that is just gone by the boards and governors seem to be entrenched by power and refuse to take their foot after everybodys neck after a considerable time, i think we question the fibers of what makes America America and i cant believe more people that i go up to i can go the walmart but i cant get my car washed. We have been taking this for granted all of these years. Maria whats new in this version of the book . Brian what i try to do is not only make paperback bendable which was somebody elses idea, i tried to add new information and what i did opened occupy war of 1812 and bring you to Texas Revolution and end in civil war, sam houston, he predicted where america was going, he said if you, texas, if you go into confederacy hundreds of thousands will die and we are going to lose. He was governor at the time. We overrule you, he quit and lincoln sent telegram, keep texas out of the war and what sam houston said, his interaction with Abraham Lincoln and we think about how the world would have been different, okay, i will fight it out. In tend he said im too old a man, if i was younger i might do it and im out and went to his farm and watched sadly his dream, his nightmare come true where hundreds of thousands did die and the confederacy did lose. Maria just incredible story and its all real, thank you again to brian kilmeade, sam houston and the alamo avengers now available in paperback, check it out. When we come back futures off of the lows this morning but pointing to decline at start of trading, we are waiting more retailers quarterly earnings, we are waiting for walmart and kohls on tap next hour, mornings with maria, stay with on the longterm. And crucial when circumstances become difficult. Us. Maria welcome back. Walmart earnings are out. We want to get right to Cheryl Casone with the numbers. Cheryl weve got a beat on both sides for walmart. People needed to go to walmart for just the essentials in their lives. The stock up almost 2 on the earnings per share, the estimate a buck 12, they came in at 1. 18, revenue the estimate was 132. 79 billion, they came in at 134. 6 billion. Probably not a big surprise. Online sales up 74 , online sales, a huge jump there. Also, same store sales up almost 10 , 9. 7 jump on same store sales. International same store sales coming in up 3. 4 . Theyre talking about what people wanted. They said there was Unprecedented Demand for products across multiple categories that led to these results. They also were saying that they are going to discontinue jet. Com. Theyre going to discontinue jet. Com. Thats a big headline thats actually crossing right now on walmart. They did have some costs they had to deal with related to covid19. That was about 900 million. They set up testing sites in a lot of their parking lots, also walmart they were dealing with trying to hire 200,000 people as well because their stores were basically overrun because people started to really hoard supplies in march and thats the quarter that were talking about right now. So again sams club did well. Sams club coming in with a number, 15. 16 billion. Again, so we knew that we were going to see a big jump right now and, again, were seeing a big jump for the stock. Walmart u. S. Sales up 10. 5 in total, same store sales up almost 10 . These numbers are pretty strong, not surprising for the company as you can see, and theyre now saying the shortterm environment will be challenging. The shortterm environment, maria, will be challenging. Those are the headlines coming across right now. Were also looking at kohls which is just crossing the tape right now. Let me go through the numbers and ill come back to you on kohls. But theres walmart right now for you. Maria all right. Yeah, the company will withdraw its 2020 guidance but very good numbers as you just lined them up, cheryl. Thank you. The stock is up 3. 5 . We are getting a closer look at the pandemics impact on retail, walmart reporting earnings better than expected. Cheryl has kohls which well get to in a second on the heels of the rifle jc penneys bankruptcy as we know this week and other bankrupt retailers. Joining us chief Research Officer dana telsey. Its great to see you again. Youve been doing this for a long time on retail. When you look at the walmart resilience throughout this pandemic after studying this company for so long, whats your takeaway here . Hi, maria. Nice to be here with you. I think walmart delivered great results. Its about essentials. Nearly 70 of walmarts sales is focused on essentials. They delivered better than expected numbers. Those ecommerce sales were tremendous. Highest growth rate theyve had. We think overall youre going to see these essential retailers continue to win. This uncertainty in shopping and choppy environment, theyre delivering what the consumer wants where the consumer wants at competitive prices and for a value. I think theyre going to continue to win over the foreseeable future. Maria so what strikes you most . The Comp Store Sales up 10 , dana. You just said the ecommerce sales are tremendous. Walk us through whats so tremendous about this quarter. Obviously investors are buying bigtime, the stock is up almost 5 right now on these numbers. Whats big about the quarter is the fact they were the only ones opened during half the quarter essentially. Consumer go there for food, for health and beauty, they go there for some of the wellness and discretionary items. What we think will happen, 2020 is a lost year, a reset year of business models. When you think of what walmart is doing, theyre able to capture share. You mentioned bankruptcies, those bankruptcies, you think about apparel categories, when we hear from walmart today, what we heard about discounters is some of the apparel categories were down double digits. When you think about gro grocer, youre thinking about where consumers destination was. We think given the fact that a lot of discretionary retailers are closed, the Unemployment Rate is as high as it is, youll see the focus on value and discounters continue and the numbers at walmart, the u. S. Comp, the ecommerce business, i cant wait to dig into the margins, but better than expected numbers. No one is giving guidance. So i dont expect any guidance. But i expect the sales growth that they had, youre going to see that basically be able to continue and be able for them to gain market share. Maria dagen mcdowell, jump in. Dagen dana, what does the world look like in terms of retail in the coming months, if not years. A lot of these businesses that have gone bankrupt, jc penney, Niemann Marcus filing for bankruptcy, j crew, jc penney is shutting down one third of its stores. Centric brands, a licensing company, also filing for bankruptcy. This is job destruction. These are jobs that will disappear forever, potentially. And what does that mean for the broader economy . Because where are these individuals who work in the stores, where are they going to go . When youre thinking about the broader economy and where the jobs are going, take a look at whats happening with fulfillment, take a look at the operations that companies are needing for personalization and data. Thats where youll have some of the jobs go. Overall, keep in mind that when youre thinking about these retailers that filed bankruptcy, they were doing poorly for quite a long time. Its no surprise that jc penney or Niemann Marcus with the debt they had filed bankruptcy. We need to have sales increases in order to keep some of these employees being able to have good wages, earn jobs and contribute back into the economy. So when you think about whats growing, its going to be some of the technology jobs, its going to be fulfillment and distribution. And certainly when youre hearing about the new economy in terms of what retail is going to look like in the future, Platform Business models are key. And having the right brands in the right real estate are where were going to see the increases come from. And were going to have hopefully new concepts developed. We always do, every 20 years, you have new cycles of retail. Maria yeah. Let me ask you about the changes that youre expecting to malls and Department Stores and how they operate differently. I mean, fitting rooms, the protocol around the fit l room, how shoppers check out, what do you think retail looks and how does it look different in the coming years once we get out of this, dana . When we come out of crisises, behavior changes. 9 11, all of a sudden airports have many more safety procedures and protocols in place. Well have the same thing for retail, whether its operating with appointments, Curbside Pickups, social distancing, everyone has cabin fever and there needs to be interaction with people when its safe. Being able to provide the safety element, were going to have a shopping environment overall that still provides the needs but has to provide the wants also. And so that environment is being recrafted as we speak. And i think some of its going to come from in some discretionary areas an appointment society so that one to one touch point is going to increase and think about the data that companies will have. The Curbside Pickup they will reach out to you so they know what you want, whether its no soaps, new shampoos and when theres occasions coming up, birthdays, anniversaries, there will be newness there. Well have engagement and shopping. Its going to el evolve. Some of it will be by point. Maria lets get in Jon Hilsenrath here. Im looking at Dollar Generals stock, thats up 33 since late march. Looks like theyre doing better than walmart. How does dollar general, these Real Discount retailers fit into all this and whose lunch are they eating in the process . When you think of the Dollar Stores, the opportunity they have is to expand in so many places across the country. Right now you have more opportunity to expand lower cost, get attractive rental prices and attractive occupancy costs, more so than youve ever had. When you think of the Dollar Stores, the Dollar Stores do compete with the walmarts and targets of the world. What they offer is speed and convenience. You can go in and out quickly. It isnt an environment where you get a ton of items but you can get what you need and when you think of the prices of Dollar Stores, theyre very competitive. In this environment, where unemployment is as high as it is, they also have an opportunity and they focus on essentials. Thats why youre seeing these essential retailers deliver better same store sales. Maria dana, these ecommerce numbers are insane. You said they were tremendous. Ecommerce up 74 at walmart. They really did capture a market in online. Mattie duppler jump in here. Dana makes a good point. Walmart was one of the only stores that was open during a moment s when so many others wee closed. The online component is the interesting one. Walmart got a lot of flack for spending 3. 3 billion on jet. Com. Dana, do you think this shows that investment paid off, particularly the news today that they might be unwinding that component of the business, does that mean their own ecommerce enterprise is the one thats here to say and theyve mastered that component of the retail space . I think one of the things thats happened with ecommerce and certainly walmart by jet. Com a couple years ago, keep in mind, a couple years ago every retailer was learning how do you execute and operate ecommerce. The ability to learn how to execute and operate it, i think partly jet. Com helped them being able to execute walmart. Com. I dont think these businesses in online operate in a silo. Retail was bricks and mortar to begin with. They int great integrated online. It came from hiring talented people. Thats where the Digital Talent can go to in integrating bricks and mortar. I think they needed it. They might not have gotten as far with walmart. Com if you didnt have jet. Com. I think one plus one has the ability to equal three in the learnings and engagement. Maria and now given the fact that they are discontinuing jet. Com, what does that tell, you, dana . Certainly tells you they see more opportunity in walmart. Com Going Forward and jet. Com, perhaps some of the learnings they they indicated and theyre going to use the one platform, one name to harness market share. Maria it was like a bridge and then they figured it out. Dont forget, at the 74 increase in ecommerce, a lot of it was grocery. No surprise, thats what we all were ordering online during this pandemic. Dagen right. Ive been banned from buying more boxed hair color from amazon, so ive had to turn to target and walmart for that and im not joking when i say that. That they have banned me from buying anymore of my specific color. But i just want to in talking about these very large chains, youre seeing the benefit in their sales here, i just want to think about and mention all of the Small Businesses out there that are being crushed by these shutdowns because a lot of retailers, maybe not Grocery Stores, but were not allowed to be open even in the new york metro area, still not allowed to be open and theres no rhyme or reason as to why a big box retailer or a target could be open but not, say, a small Lingerie Store and so i think about all the businesses that have been put out of business in decades by these big box retailers and that continues as we try to fight this virus. Maria well, we certainly have a blockbuster report from walmart this morning. Dana, real quick, how many retailers, small retailers dagens referring to do you think will be unable to make it out of this. There will be a fair amount of bankruptcies. Do you have a metric or percentage in your head how many will not make it . I dont have a metric in my head. I think obviously wellcapitalized companies will come out of this. The smaller businesses, the quicker they can get open, the quicker consumers can get comfortable being able to go shopping and being able to have an online operation during this time period. Were going to see a lot of badgbankruptcies and closures. Well see more today than we saw in 08, 09 is how im thinking about it. Those with the strongest Balance Sheets will come out winning, and those bigger Balance Sheets employ a lot of people so youll be able to hopefully gather some of these people. Maria in some cases theyre more poised to adapt to an online world. Dana, good to see you as always. Keep in touch. Come back soon. Dana tellsey. Well be right back. Or make me feel like im not really there. Talk to your doctor, and call 8442342424. Seeing the break in the clouds before anyone else. Together, well weather this storm. There are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Maria welcome back. U. S. Attorney general william barr commenting on the durham investigation yesterday, weighing in on the prospects for criminal charges being brought against former president barack obama and former Vice President joe biden. As to president obama and Vice President biden, whatever their level of involvement, based on the information i have today, i dont expect mr. Durhams work will lead to a criminal investigation of either man. Maria joining me right now is Senate Judiciary committee member, senator marsh Marsha Blackburn. Great to see you. Thanks so much for joining us. Thank you. Yes. Maria a lot has been said about what took place in the 2016 election and certainly the spying on President Trump and candidate trump. When do you expect the durham report, senator . We dont know exactly when that is going to come. And maria, one of the reasons is because as that has taken place, as that investigation has rolled out, it has been expanded. And this is a good indication of what happens when you follow the evidence. And you follow the facts. And indeed, in Judiciary Committee as we meet and start our process of subpoenas, then were going to do the same thing and just follow the facts and whenever we finish, whenever we get the durham report, is when youre going to be hearing and seeing more of those developments. Of course, we can bring maria if we dont hear from john durham soon or in the summertime, then youre getting up close to the election. So senator, i mean, if President Trump doesnt win, you know joe biden and company will do everything they can to crush this and put this to rest. We will not hear another word about the wrongdoing at the top of the fbi and the cia, agreed . One of the things we do know is the American People are not going to stand for crushing this because they know if you spied on donald trump, if you spied on michael flynn, if you spied on the Transition Committee who was handling this, then you can spy on them. And they are demanding answers and of course the durham investigation will be a criminal it is a criminal probe and that is where youll get indictments and what we will do is reveal what happened and make those criminal referrals to doj. Maria i was happy to hear lindsey graham, the chairman of your committee, say that you are investigating the investigators, the Senate Judiciary Committee Chairman announced that your committee will vote next month to potentially subpoena former Obama Administration officials involved in the justice departments investigation into russian meddling, the origin of that, why they decided to investigate trump including former fbi director, jim comey, james clapper, former cia director, john brennan and andy mccabe and forming acting attorney general, sally yates. Ive been souping the alarm, sounding the alarm on this, asking investigators to get this witness down, that was earlier this month with lindsey graham. You are the only one with subpoena power right now in the republican party. We need you to call these individuals down to testify as witnesses. People want you to move on this, senator. Are you going to do it . Yeah, but ive told you and ill tell you again, im not going to interfere in an ongone criminal matter. This is a rule of law nation. Im a politician. My goal is to ride a report as to how i got off the rails. I can promise you were going to do it right. Im not going to jump into the middle of this case. Maria so senator, since then weve heard a different tune, right . You have been told or what are your plans with this committee . You want to bring these people down to testify in early june . We do want to begin to bring them in. I think a great place to start would be bringing in general flynn and then bringing in rod rosenstein. When you look at the scope memo, how in the world did this come about and what was the sequence of events. What we know is that somebody happenehatched a lot, somebody n order to carry it out, somebody did the dirty work and then you have what folded as the investigation of michael flynn, the spying on President Trump, and campaign and lets see where it takes us. Maria just extraordinary. Senator, always great to catch up with you. Thanks so much for joining me this morning. Absolutely. Good to see you. Maria Marsha Blackburn there. Quick break and then were back. Now is the time for a new bath from bath fitter. Every bath fitter bath is installed quickly, safely, and beautifully, with a lifetime warranty. Go from old to new. From worn to wow. The beautiful bath youve always wanted, done right, installed by one expert technician, all in one day. Weve been creating moments like these for 35 years, and were here to help you get started. Book your free virtual or inhome Design Consultation today. Confident financial plans, calming financial plans, complete financial plans. Theyre all possible with a cfp® professional. Find yours at letsmakeaplan. Org. Okay, showtime turn it up tubi has you covered. Were gonna celebrate yes tubi. Watch now. Staying connected your way youre just a tap away from personalized support on xfinity. Com. Get faster internet speeds with a click. Order xfi pods to your home in a snap. Or change your Xfinity Services with just a touch. All in one place. Youre only seconds away from all of that on xfinity. Com. Faster than a call. Easy as a tap. Now thats simple, easy, awesome. Maria welcome back. Protecting your package as online sales spike, shoppers are finding packages are not showing up when theyre supposed to if at all. Gerri willis is following this story. This has to do with theft as well. Good morning to you. Reporter thats right. Good morning, maria. Thats right. If youre still waiting for the delivery truck, youre not alone. Listen to this young mom. I had ordered some toys off of amazon for him and i they were set to arrive and they didnt. The only explanation to me is that they were stolen. Its not like i can go out to a toy store and buy stuff. So were completely dependent on these Online Retailers to deliver things to us. Reporter porch pirates are back. Delivery thefts spiking as consumers order more and more goods online. One in five americans say they had a package stolen in the last 90 days. A surge that roughly alliance with the start of the pandemic. But its not just theft thats a problem. Consumers report delays in package deliveries and lost packages. That same day delivery, not anymore. Listen. Theres massive issues in terms of lost packages. The whole logistic supply chain is thrown into a Twilight Zone at this point. You go from a welloiled machine to whats become in some ways a black hole. Theres less planes flying, less trucks and thats why its become a perfect storm. Reporter even so, online sales spiking as consumers are forced to stay home. Insider intelligence exclusively shared their Online Retail Sales Forecast with us. The Research Firm sees sales jumping 18 this year to 710 billion even as economists call for a recession. For its part, amazon, the nations largest Online Retailer, tells us, quote, the vast majority of deliveries make it to customers without issue. If something occurs, we work with customers directly to make it right. So why so many packages that never make it into the hands of consumers . Well, delivery workers dont want to contract covid19 either. Listen. We really do have to minimize the different types of contact points. So were putting things behind a glass door or in an entryway or in front of the garage. That is really where were seeing those inconsistencies because people are just theyre trying to be respectful in terms of not touching the different areas of your home but it also leads to other issues. Reporter maria, its anybodys guess when deliveries get back to normal but i have to tell you, i hope its soon because i ordered an item weeks ago and im still waiting for it. Maria unbelievable. Thanks so much. Dagen, if you did get something stolen, its going to be hard to expect the company to just send you another one for free. I mean, everybodys going to start saying my stuff was stolen. Dagen right. The delivery times are incredibly long, depending on what you order. I know that were all deeply grateful for those people who have been on the job delivering these packages, delivering our groceries, ringing up our purchases in stores throughout the shutdown, throughout this pandemic, even at the height of the virus fight here in new york city. That being said, to amazon, when my gray roots start growing in, im going to write amazon on my forehead with an arrow so youll know why i have gray because i cant order any more hair color. Maria all right. Well wait for that. Gerri willis, dagen mcdowell, great insights there. Were going to take a break. When we come back, futures are reversing course after potentially seeing triple digit losses at the opening of trading. The walmart report is lifting many boats this morning. Futures are up on the do you 28 points up on the dow, 28 points. Back in a moment. Right now is a time for action. Thats why usaa is giving Payment Relief options to eligible members so they can pay for things like groceries before they worry about their insurance or credit card bills. Discover all the ways were helping members today. Find a stock basedtech. On your interests or whats trending. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. Maria welcome back. North carolina says goo goodbyo Tropical Storm arthur. Cheryl with details. Cheryl yeah, Tropical Storm arthur is now moving out to sea after lashing north carolinas coast with heavy rain and a lot of strong wind. The first named storm of the atlantic Hurricane Season closing highways on the outer banks and mainland but it did provide good surfing. Arthur could cause dangerous surf and ripcurrents over the next couple days, at least along the east coast and there is the track now of arthur as you can see, as it should dissipate as it heads towards pe bermuda. Uber is cutting an additional 3,000 jobs and closing 45 offices, the ceo made the announcement in an email to company staff. The latest waves of layoffs comes less than two weeks after the company said it would eliminate 3700 jobs. Stock is barely up in the premarket, 0. 09 gain. Little change. Heres a look at whats trending on foxbusiness. Com for all of you. Outdoor furniture sales soar as the coronavirus pandemic cancels summer vacations for many americans. Country music star and fox nation host john rich says his nashville bar is back open. But with one major change, theres no live music. Hope he has a juke box. Finally, Carole Baskin one of the stars of tiger king is selling coronavirus masks featuring her catch phrase, hey, all you cool cats and kittens. Im glad theres an article on that. I saw the face masks a few days ago and almost bought one. I think im going to do it now. Maria thank you, cheryl. We are looking at stimulus spending grilling, thats whats happening today. Federal reserve chairman jay powell and Steven Mnuchin will testify this morning, speak on Coronavirus Relief efforts, including emergency programs as well as the 530 billion Paycheck Protection Program that we have been talking so much about. My next guest thinks the focus should be on making sure midsize businesses have the cash flow to survive the crisis. Joining me now is the chairman and ceo of ey global, carmine disibio. Thank you for joining us. Great seeing you, maria. Maria lets talk about those midsize businesses. This has been one of the issues around the ppp program, that the rules were so strict that you get the money, you have to hold onto the money for eight weeks and you have an eightweek period to spend 75 out the window to blow eas employees an of the money on rent and overhead expenses. Now were hearing the rules will be loosened. Is that what youre referring to . Tell us how you get the money to the much in need midsize businesses, carmine. Thanks, maria. Its great being here. Look, we have to get these businesses, we have to get them money and i think the governments trying to get them money as quickly as possible. But probably more important is we have to start getting them reopened. You know, at ey, i know most of you think we only work with Large Businesses but 70 of our business is with Midsize Companies all around the world and they need to really reopen. Many of them were not able to invest in the types of technology that the Bigger Companies were able to invest in and, therefore, the only way theyre really going to get moving is to reopen. Now, stimulus is needed. It has been needed and i think the governments doing a good job, needs to do more as we move forward. But right now, they have to really start opening, the economy needs to get going. Maria how has it been so far in terms of these reopenings . I have to assume that jay powell is going to say the same things that he said last week when he was on his virtual testimony in front of the senate, he will also he spoke to 60 minutes and he said no central banker ever will say otherwise, keep in mind we are committed to using our full range of tools to support the economy in this challenging time even as we recognize that these actions are only part of a broader public response. He also said until we are confident that the economy has weathered recent events, on track to achieve maximum employment and price stability goals, we will keep rates near zero. Is there anything other than these main points that were made last week that youre expecting him to testify today . No, i think maria, i think those are going to be the main points. I think jay powell is trying to do everything to keep the economy going. I do think here theres a bit of a misconsistenconception betweef the Large Companies and some of the medium size businesses. A lot of Large Companies including Tech Companies can easily work from home. Even they who i know youve had some guests talk about the Tech Companies will s people working from home throughout the year and so forth, even they when you look at it, they have large campuses, they want people together, thats how they get innovation. Its not a longterm answer. To me, they have to get businesses open. Jay powells doing a good job in terms of making sure he does everything under his power. I think this is really by sector. Some companies are able to do things including what you had on before in terms of Online Retailing and so forth but others including hospitality, travel, have to reopen. Maria were going to talk with steve wynn about that coming up, the former ceo of wynn, the founder of the massive Las Vegas Casino company, talk about working from home, mattie, how about working from home forever . Jack dorsey announcing mobile Payments Company square will join twitter and theyre allowing remote employees to work from home for as long as they want, even after the Coronavirus Crisis ends. Mattie. Thats right. I think carmine made a good point there. What we dont want to see as States Reopen is this kind of have and have not. The division between people who are able to work from home, who are typically white collar workers, and the rest of the country who dont have that capability. Carmine, the question to you is, what else can we hear from chairman jay powell today and secretary 3450u chi mnuchin thap assure some of the midsize businesses. Yes, they need to reopen and they need certainty from policy makers they can stay open in the weeks and months to come. Yeah, so i do think from Steve Mnuchin and from jay powell, theyre going to do Everything Possible to make sure that businesses reopen and they stay open. So any kind of stimulus package, any kind of stimulus package number four or whatever they call it, they needs to have business in there because thats whats going to create jobs. Thats whats going to maintain jobs. Thats whats going to get us out of the 20 or whatever it is 10, 20 unemployment. So thats going to be important as they testify today and as theres more coming to businesses, medium size businesses. Maria you said that 70 are medium size businesses at ey that youre doing business work, consulting work, et cetera. What are you hearing, carmine, from your companies, from your clients in terms of the biggest takeaway from this pandemic and this shutdown . Yeah, so maria, thanks for that question. First of all, even for medium size businesses we are hearing they have to invest more in technology and they have to be ready for these things Going Forward. So investment in technology is incredibly important. Were also hearing and this is something that from all our businesses, there have been surveys out there in terms of are people ready to go back to work and some of the surveys, in particular in large metropolitan areas, larger companies, the surveys the numbers are very low in terms of people wanting to go back to work. But i do think this will improve as the days go along here and we are hearing from the medium sized business thats they need people on the ground, servicing their clients. So its a mixed bag. I think it was well said before. Its two worlds here, the haves and have notice. We have to make sure the have notes are able to nots are able to operate. Maria thank you so much. Coming up, california congressman is here joining me to talk about how he flipped the district from blue to red. Hes going to be sworn in today. Were going to talk to him before that. Stay with us. Keeping me from the things i love to do. Talk to your doctor, and call 8442142424. Maria welcome back. Well, one county in the golden state turning red, Republican Mike Garcia pulling off a political upset in a special election in californias 25th district. Flipping a congressional seat from blue to red for the first time in 22 years. Garcia is in washington this morning where he will be officially sworn in my House Speaker nancy pelosi. Joining me right now is congressmanelect mike garcia of california. Congratulations to you. Thank you, marie y i appreciate it. Its great being with you this morning. Maria its a big deal, california is largely blue. We know that. Tell us how your policies or what you were saying resonated and how you were able to flip the seat to republican. Yeah, you know, it was really the culmination of a year andahalf of campaigning and hard work. As a former naval of aviator and businessman and father, i was a political outsider, frankly i think thats what a lot of folks in our district were looking for, someone fresh, someone new, someone who is pro business, for lower taxes, an America First mindset where we need to take firscare of our district and our nation and do the right thing for those trying to live in california and live there. In contrast, im honored to have led the campaign. It was a grass roots effort with 500 volunteers man. We outworked our opponents and will continue to do so, its whats needed most for this country. Maria in addition to being a former navy pilot, you are also a small businessman. Tell me about that and also your owe poe meanowe poe meant is a t wanted to increase taxes, voted to fire teachers and mocked his military service during the campaign. Do you think this is an indicator of what could happen this upcoming november as some of these liberal policies are beginning to get people to question, given the result in the cities. You look at Something Like a San Francisco or new york, the homelessness, the taxes, and how so many people are fleeing these cities. Tell me about what this might indicate coming up in november. If at all. All the way through november, its definitely a positive sign. Look, i love the state of california, i love the things we cant change, the weathers fantastic, the geographies great, the people for the most part are great. The things we can change are the problems. And thats the politicians and the policies and, yeah, my opponent was layering up taxes, 3 billion on new taxes that were making it tougher for Small Businesses and independent contractors to operate. This was before covid19. When you add all that up its a challenging time in our district. Our district right now has one of the highest Unemployment Rates in the nation. We have an amusement park, Princess Cruises headquartered in our district and hollywood production that is completely shuttered right now. Im looking forward to hitting the ground running, to bringing the lights back on and helping people get jobs and work on the demand side of the economy. Maria how are you going to do that . Whats your agenda. We have secretary mnuchin and chairman powell testifying in front of the banking committee. Should they be doing more to support Small Businesses through the Coronavirus Crisis. Youre a former businessman yourself. I think Congress Needs to do enough for Small Businesses and their employees. It would be an amazing wins accidents if the amount of money thats on the streets in the cares act was the right dollar figure. This thing is extending further than most of us anticipated it. So there may be an opportunity for more federal funding but i think working with the local governments, the mayors, the City Councils and the chambers within the district to help facilitate getting back to work and getting people comfortable. We have low infection rates in our district, we have high capacity in the Health Facilities and infrastructure so we should be able to get back to work, feel comfortable, still mitigating the risk for the infections and the virus but rebuilding confidence and getting paychecks back on the streets so people can buy and work on Consumer Confidence. I think it will be a several month process. We will rebuild and get stronger and well get back to the Strong Economy that we saw. Maria all right. Congressmanelect, well be watching the swearing in ceremony today. Will everybody be Wearing Masks . I guess it will look a little different. It will look a little different. Thank you, maria, for having me. Maria thank you so much, we will be watching your swearing in ceremony later today. Still to come this morning, National Economic Council Director larry kudlow will join me in the next hour, followed by Dallas Mavericks owner mark cuban. Dont miss a moment of it. Weve got a big hour, right here. Staying connected your way is easier than ever. Youre just a tap away from personalized support on xfinity. Com. Get faster internet speeds with a click. Order xfi pods to your home in a snap. Or change your Xfinity Services with just a touch. All in one place. Youre only seconds away from all of that on xfinity. Com. Faster than a call. Easy as a tap. Now thats simple, easy, awesome. Maria welcome back. Federal reserve chairman jay powell and treasury secretary Steven Mnuchin will testify this morning. Joining me right now is louisiana senator, john kennedy. Thanks very much for joining us. What do you want to hear from these two individuals this morning . I want to know how much of the 3 trillion that we appropriated has been spent. I want to know how many state and local governments have asked to borrow money. Weve heard a lot about how they need money. The fed has a facility to loan them money at special rates. I want to see which states and cities are taking advantage of it. I want to know their thoughts about how much if any additional money we will need, how quickly the economy will come back. I want to know how quickly treasury can get the main Street Lending program set up. I think theyre a little bit behind. I want to quiz them about that. Maria and you also mentioned the state and local governments. You have a bill out that introduces the Coronavirus Relief fund flexibility. You want to give states more flexibility on how they allocate capital to give them the funds provided with this coronavirus aid. What are you envisioning . Do you think its been too rigid in terms of how the states go ahead, sir. Sure. Weve already given the states the moneys appropriated, 150 billion. Thats 150, zero, zero, zero, zero, zero, zero, taxpayer dollars. We told the states and the cities, you can spend it on coronavirus expenses. I want to pass a bill that says if you have a revenue shortfall as a result of coronavirus you can use it to offset the revenue shortfall. That may mean we dont need the pelosi bill. If my bill comes to the floor of the u. S. Senate it will pass overwhelmingly. I just have to convince my friend, mitch mcconnell, to bring it to the floor. Maria well, i mean, nancy pelosi says shes got a plan and its 3 trillion. We know its expensive. But she said that it is a lot of the things that werent in these previous plans. She has no idea. She has no idea what states and local governments need right now. All im saying is and none of us do. But i do know this. We have given them already 150 billion. And ill bet you most states and cities havent spent it yet. I want to give them a little flexibility in how they spend it and it may be that we, as a result, we dont need speaker pelosis bill at all. Maria now we see that the nasdaq is potentially making changes on Chinese Companies, ipos, this is another piece of legislation that youve been talking about in terms of ensuring that those Chinese Companies follow the rule of the law. What happens next in that story . I would not turn my back on the Chinese Communist party if they were two days dead. They cheat and ive got a bill to stop them from cheating with Chris Van Holland on new york Stock Exchange. Maria were going to be talking about that, senator. Its great to see you this morning. An abriestay with us, larry kudw coming up the other side of this break. For business as usual. Or is it . What if business as usual means putting people first. And understanding their needs . If thats your business. 365 days of every year, then business as usual is precisely what these times require. Which is why your lexus dealer will do what weve always done. Put you first. Find out how we can service your individual needs at lexus. Com peoplefirst. Seeing the break in the clouds before anyone else. Together, well weather this storm. Maria welcome back. Good tuesday morning, everybody. Thanks so much for joining us. Im maria bartiromo. Tuesday, may 19, top stories it is 8 00 a. M. On the button on the east coast, we are take a closer look this morning at impact coronavirus is having on retail walmart out with earnings last hour rising a big report Comp Store Sales 10u7 only sales up 74 , in u. S. For the First Quarter retail giant pulling forecast for year after home depot missed on profit expectations suspended full year outlook walmart up better than 4 hrz home depot shears down as you see 1 1 2 strong from walmart helping futures off lows take a look at broader markets positive news from moderna this morning markets back dow industrials down 15 points yesterday a rip rigor rally on Moderna Vaccine news dow industrials up almost 4 nasdaq up 220 he s p up 90 Points White House increasing pressure on china, President Trump, threatening to perm informantlypull funding from World Health Organization if whave. O does not commit to reform nasdaq reportedly making it tougher for Chinese Companies to go public calling for more transparency in ipos mornings with maria is live right now. Taking a gamble on reopening Hotels Casinos hit hard Las Vegas Strip a unique set of challenges beginning turning lights back on for the public post pandemic wynn resorts one of the Largest Hotels iconic names take reservations for june 1 under heavy restrictions announcing planning to reopen using thermal cameras temperature checks face masks for guests will reopen without poker to promote social distancing during pandemic joining me in exclusive interview only telephone former wynn resorts Ceo Steve Wynn thanks very much for joining me. Do i sound like i just woke . [laughter]. Maria well it is early there i guess, we are all just waking up so is when you are inside the house you can sleep late, okay but i am up. [laughter]. Maria glad you are up, thank you for being up for us, steve i want your take on reopening you have ben in business a long time you have been a student this have economy on terms of growth for so long, leading one of the most successful industries ever, in terms of hotels, gambling all of that tell us how you see opening, reopening america, the challenges and the opportunities, and how should it be done safely. I think the way i look at it if there is one overridinging thought that i have has to do with human nature in general. We have an example that gives great insight to what is about to happen. In england 1940 when nazis started blitzkrieg bombing of london with buzz bombs when it first happened sirens wentz off buzz bombs came over public panicstricken fearing for lives grandchildren ran to air raid shelters huddled there panicstricken for lives that is the way it went avenue three or four months was fascinating to read and learn, that in london, after four or five months after three or four months actually they would stay in pubs drink beer eat sandwiches would hear sirens not move an inch and listen to motors of the buzz bombs if mot others stopped overhead meant bomb would fall they dove under table if it kept going they kept drinking beer, there is overwhelming impulse to return to normal behavior people are not going to stop no matter what governor says to them they are going to go out try to return to normal behavior, in businesses. And Small Businesses, bars restaurants, the neighborhood, very easy for them to do it they can practice, simple defensive measures he weve all been being instructed bn masks separation the rest however, when you talk about las vegas with big, really, any business with a huge Employment Base, these hotels that have 5 to 6, even my company 12,000 employees, encore, wynn the logistex the decision that have to be made how to open them are very complicated, if you open part of the hotel when employees back to work if you open another how many restaurants do you open do you cater to conventions when you have huge Employment Base you open enough restaurants, and troomz service even part of your occupancy if you dont fill those rooms, these hotels can lose millions of dollars a day. You know it is not unusual for one of these places to cost three Million Dollars to open doors every day. So the calculation how many are going to show up how to take care of them on the other hand is not a mystery i think all of us, there this is large ones small ones, have enough guidelines now about masks, separation, and testing yourselves if you are exposed stay home that is not the hard part. We are facing implicated logistics of reopening, any business with a large Employment Base, i think that is going to be the challenge in nevada a lot of smart people are working on it. I know, at wynn resorts the leadership is outstanding. And they are doing they are providing the leadership for the strip. To figure out how to do this properly incidentally i think when they open there will be business. I think people are going to come back. Maria there will be businesss. Interesting story in macau maria. Next to macau casinos is another island only a few hundred meters away. It is not part of macau it is part of the province but adjacent to macau by i 200 or 300 meters, on that island our amusement parks huge park a couple thousand hotels rooms opened up, a couple weeks 20 odd,000 people came first day the energy suppressed will jump out i think there is going to be business i think people are going to come back hopefully they will do it safely but going to be tricky in las vegas. Maria steve you mentioned macau for a long time i know macau was pretty much subsidizeing the business chinese, big gamblers, macau a huge important growth story for las vegas all Casino Companies talk a little about importance of macau given focus on china, i mean weve got pictures of the strip here, and wow, i have never seen strip look like this steve. Have you ever seen Las Vegas Strip so quiet the way i never i see the pictures, on tv. Im in florida. The moment, with we are in palm beach, but i cant imagine my friends i speak to on the phone tell me that it is eerie, and depressing and completely knocking them out. Macau. In the case of wynn resorts 65 to 70 profits came from there. And for caesars, for mgm rather for sands, sands has 13,000 rooms, and macau. In singapore as well. Wynn has 2700 rooms. The a macau business was driver, during recession between are 8 and 10 we used chinese money to fill rooms never laid off one human being because of china we never had a layoff at wynn. As a matter of fact during my time never had a layoff period. But this time, opening china i think is going to happen, as soon as they release the some restrictions on visas going to open the border macau will i believe you will see bounce back very rapidly. Will benefit the Nevada Hotels that have operations there. Maria that is what i was saying Nevada Hotels really need them i want to ask you about what is going to be different i will get to that in a second in terms of nevada is it i mean isnt it true though there are some hotels, and Casino Companies that he wont make it out of there the lip of wynn encore mgm whole different situation but are there others going to have a hard time getting out of this . You know, when you look at the financial situations, the Balance Sheets some of the companies, you realize that this kind of this kind of a hit could be permanent. Hopefully that wont happen, and they will get back open, and they will get enough business to survive. It is a very inside question, you have to take it, very technical look at each operation. And we will know a lot more when we see what happens, june 1 is when the targeted beginning of the opening of the hotels will take place. And by june 15, by june 15 if you asked these questions again we will get real good clarity on it. Little early now. What are the plans, summer quickly approaching travrlgz egg tore jump in resort pools wanting to to casinos go to restaurants. What are the plans right now . How will they look different come june 1 . Wearing masks . At the blackjack table. For las vegas first hurdle is airlines, we got to make sure that the service that has supported those 160,000 rooms on the strip what about that the airport is up to speed. Otherwise people will only be able to drive from california. So as assuming we get lift from the airlines, i know that their planning to have separation at the tables even having some are barricades clear plastic barricades using, masks go,ing to take peoples temperatures going to use all of the common sense defenses promulgated by the government i know they have got the staff to do that. They will be able to do that. Yeah, we see plexiglass everywhere, really. Yeah. Maria in terms of what is going on. Strange look being. Maria i am glad you he mentioned airlines isnt it true that once you have airlines a flight that went direct, to macau that changed everything, once you get the transportation to up and running again, that changes everything because you wouldnt have had the success, of macau without a direct flight and easy way for people to get there from beijing or anywhere. Well, the the flow across the border, of from the other side of the street so to speak in macau, where you know mainland china, those people come by now theyve got the bridge they come by car, they come by bus they come by train. The transparence is not the problem in china. Because it is just the border control. The access, the province surrounders 50 Million People within driving people to macau within 50 to 60 minutes it is airlines for las vegas the lift in the airlines. Las vegas needs airlines. Macau does not. Quick before you go go ahead one other thing go ahead. The high rollers biggest customers in nevada come from china. And that that is restricted as you know is likely to remain so. Maria do you see any blowback as a result of focus and pushback on china, blowback on audience coming from china into macau. I think that the tension between the government of the china, and our government exacerbated by the virus is very interesting question. It has been raised, and, you know, in the history of china they havent interfered with foreign business per se that way but everything is new these days. So maria you are raising a point that i am not able to answer. Maria it is an important point it is a great value to have your insights on the air this morning steve i want at the thank you so much for calling in. Any time maria have a nice day. And to you steve wynn founder of wynn resorts we will take a break have a panel check when we come right back. Stay with us. So you can keep your patients cared for. Your customers served. Your students inspired. And your employees closer than ever. Our network is resilient. Our people are strong. Our job is to keep your business connected. Its what weve always done. Its what well always do. And my side super soft . Yes. With the sleep number 360 smart bed, on sale now, you can both adjust your comfort with your sleep number setting. Can it help me fall asleep faster . Yes. By gently warming your feet. But can it help keep me asleep . Absolutely, it intelligently senses your movements and automatically adjusts to keep you both comfortable. So, you can really promise better sleep . Not promise. Prove. During the memorial day sale, save 1,000 on the sleep number 360 special Edition Smart bed, now only 1,799. Only for a limited time. To learn more, go to sleepnumber. Com the story where the chances are low, and the cost is high. The sacrifice is real. Its all around us. But this isnt a story about how tougher times beat us. This is our comeback story. The time when we rally and come from behind. The time when we defy the odds and get back to work while the whole world watches. Yeah, this is your comeback story. And when its time to come back, well be ready. Maria welcome back retail earnings in focus it has set the tone for markets certainly walmart hope home reporting firstquarter earnings last hour, investors watching target earnings tomorrow, coals a imaginary decline amid coronavirus pandemic, lets talk earnings Jon Hilsenrath, what strikes you, about what the trends we are seeing in the First Quarter . What well you know online, and big box are the winners but, you know, there is so much talk about reopening right now, when you look at countries like sweden or states like georgia what is clear to me is that this economy isnt going to get again until actual treatments for coronavirus even if you get reopening people arent going to come back in force until they feel safe i think the market focus is on, is on treatments, and vaccines, what we should work on. I think interesting what steve wynn said about how asks a will look different plexiglass, talking about, cables more spaced out gave a really good look at the difference in terms of the set of challenges that Small Businesses are faced with versus larger business opening up having all employees come back. Dagen i will quote matt beloved sustainabling manager said not craps roulette unless you are hugging up on people sweating everywhere giving high 5s that issue to get people in casinos, quickly retailers in italy reopened monday traffic extremely light. Walmart did announce they opened 139 testing sites across store parking lots could have another 44 by end of may so that is critical in getting people, back into stores. Maria this report was very strong, ecommerce at walmart up 74 in First Quarter, that is why the stock is up 3 1 2 samestore sales up 10 as well a short break when we come back programming note we want to tell you tomorrow Delta Air Lines ceo, edward with clorox ceo joining me tomorrow morning beginning 6 00 a. M. Eastern tune in a big show talking about the airlines, that steve mentioned is to a key to getting reopened to brighten your day beautiful shots the sun is rising over a long island beach, beaches will be open for this holiday weekend. We will be right back. Stay with us. All the boys and girls, joy to the deep blue sea joy to you and me restaurants covid19 tax sparking debate over businesses adding california to the bill owners say new fees helping make up for rising food operating costs Grady Trimble taking a look for us, this morning, things are getting more expensive. Reporter they are good morning here in chicago a restaurant added a 26 coronavirus surcharge that restaurant met with a wave of backlash got rid of the Additional Charge but restaurants across the country adding charges, as you said, to cope with increased food costs an example from missouri this restaurant adding a 2. 19 charge to 50 order that diner not happy to see that tweeted about it then here is another capital, this restaurant in california, has a sign outside saying what the daily surcharge is in this case on this day it was a flat one dollar charge other restaurants we are hearing about across the country, are adding surcharges only for some items like products the reason doing this food has gotten more expensive amid pandemic you might have noticed yourself at Grocery Store eggs to meat costing more on top of that several new challenges theyve never faced before a faring in cost ppe masks, gloves into budget for waitstaff, at the same Time Restaurants that reopened they have to do so at a limited capacity so in many cases, they are spending more money, a making less of it not to mention maria theyve been closed for several months, now we looked into whether this was legal this, added surcharge it appears to be perfectly legal as long as the charge is disclosed before you make a purchase, of course, what is acceptable in the court of law what is acceptable in the court of public opinion, are often different maria. Maria yeah good point grady we will be watching Grady Trimble joining us there grady, coming up National Economic director larry here later in the program mark cuban will join me on ideas for more stimulus for americans we are jampacked. Stay with us. Good times looking to the sky. Maria welcome back. Good tuesday morning. Thanks to much for joining us. Im maria bartiromo. Tuesday, may 19, we are standing by for april Housing Starts Building Permit numbers out moments from now we will bring those numbers as soon as released Housing Starts expected 927,000 Building Permits expected one million futures off the lows of the morning following strong sales from walmart this morning the quarter was better than expected on earnings front Comp Store Sales front result that stock doing well dow industrials negative dow futures down 62 nasdaq futures up 2 and quarter s p futures lower by 10 points, those numbers usually not Market Movers but we are certainly expecting the reopening to alleviate some stress we will get to Cheryl Casone has numbers right now. Cheryl 20 drop in Building Permits maria the estimates for on permit side these are future, future pieces of construction talking about,s 1. 047 about in line on estimates, just barely above it, but that is substantial loss from last month was 1. 35 million permits, so 1. 07 million permits, on start side this is the beginning of a homes construction, site if you will 891,000 that is actually not as bad as we thought drop actually it is worse than what we thought expecting 927,000 starts coming in, we saw 891,000 again, monthovermonth to see what this means in march was 1. 22 million starts not a big surprise there, obviously, this is going to be Home Building sector, pulte, stocks to watch futures down right now, again, we already have names pulte saying doing furloughs layoffs so industry itself was ready for this the only bright spot in housing has got to be 30year fixed rate the latest number 3. 52 on 30year fix if you Start Construction on a new home if you could buy right now Interest Rates environment very good for you again that is what were seeing on starts in permits, not a precise pressure strien construction not happening this is april this is month of the shutdown, maria. All right cheryl thank you of course we have been look at which industries will get fired up first with reopening, Jon Hilsenrath construction, was one of those industries that many people said they can start reopen get back to work you can do the social distancing, you can do construction, following all guidelines, with a mask as well. Reporter there are a lot of things happening in construction housing one of the big problems in construction a few months ago there arent enough workers sadly looks like its going to be a lot of workers out there right now, you know the other thing that cheryl hit on i think really important is that Interest Rates are extraordinarily low and you know if normal times that should lead to a a housing upturn there are a lot of housing shortages a lot of cities around this country, the question is whether the banking industry, is going to have the wherewithal to get that out into individuals to home builders, the fed do everything it can to pump that credit into the system, and we have to see if that is really going to support households with refinancing new mortgages month ahead could be a bright spot it could be. We have to see how we get the next couple months. A great point dagen. Dagen real estate is more local than ever anecdotallyive heard stories from people buying houses owed of new york to move get out of dodge, sight in scene they have found them on the internet bought them like that i know people who have listed houses literally sold them in a matter of days, that is what is happening, you could see a real rush out of these densely populated major metropolitan areas because of this virus because people cant take it anymore. Can i jump in. Maria i think cities are in big trouble i think cities are in big trouble people do not want can i jump back in this. Maria yes please. Dont count out new york that is what ive got to say weve seen so many crisis hit new york in the last 50 years, almost went bankrupt in 70s we had 9 11 i have been talking to a lot of executives, your friend ken langone the message from everyone dont count out new york going to have hard time there is no question. But new york survived power outbreaks in 1800s, spanish flu early 1900s i am not counting this place out join. Dagen i am not hanging around 120 years, new york, it was already bad. Because of the bail reform because you have a mayor who is completely about incompetent, i want to point out that mayor de blasio just spent two Million Dollars, on new hires and pay hikes focused on erecting fences on beaches over memorial day weekend come on they are not going to wait around to have apartment broken into, they are not you know what if on. Maria on sunday said that beaches are not ready to be opened in new york city, we will not he open them we are so far away from reopening said on sunday, on sunday morning futures said yes, i will put fencing around if they go into water also said he needs 7 1 2 billion dollars jon he wants federal government to make it whole, so that is why. Dagen not getting money from federal government if he is basically passing 7 figure pay hike additional hires number one, number two why pay 5 grand for 500 square foot apartment in a not great neighborhood in new york city, it is because of everything that goes on outside of your apartment it is the theatre it is music it is bars, it is nightlife it is culture, museums when is all that coming back . The theatres broadway are shut down until the fall, people are not going to wait around for that unless they get dramatic rent decreases and landlords have their heels did you go in. Reporter i get all that new york is bigger than one person one mayor has been through bad mayors before tough times pap pandemic pandemics, earnings per share very hard time that needs to reopen dont count out new york years of history has gone through a lot of bad times all im going to say dont count the place out i understand what you are saying Broadway Theatre restaurants they will come back dagen listen new yorkers are awesome i am a southerner by birth, a yorker by choice, i love the people here. But there are a lot of folks, who grew up here duringing the 70s who are not going to wait around for those days to come back. And there is no hope in sight with that mayor running the city. Maria i am the coronavirus aside for right now, because yes youve had all impact from coronavirus, but things turk negative in new york way before coronavirus, mattie lets talk about the numbers of people fleeing new york because of higher taxes because of homelessness, of course, yes then that bail reform law allowed all these inmates on streets then they came out started committing more crimes, they had to be put back in, there are all these other inmates out because trying to cut down capacity of rickers island new york was in big trouble before the coronavirus. Listen irs tracked data of taxpayers who flee high tax states for lower tax states trendline not good for new york, we consistently see people, who by the way, are the ones funding, all public edifice dagen americans they are not putting up with it any more dont want to be last remaining pieces of a tax base while rest of the people who live in new york try to find other places where they can be more productive income isnt con is if indicates by incompetent public state i think that you are right maria it is not simply just a question coronavirus look i live in city too i live in d. C. I love d. C. But there are problems living in a city when you have a pandemic that shuts down everything in the city that makes it worth paying high cost of living there, you know new york is one of the places certainly comes to mind look at the bill house stalled production back on table for high income earnings so many saying they feel pinch high state local taxes, rather than forcing politicians are any of you moving to the country permanently any of you . . I get up at dagen you know what i actually did live in the country for some years. I lived in the kin for some years, i get up 2 00 in the morning. So i was getting up 12 30 i am not commuting anymore for that reason. Maria arent willing to buy a house on line dagen has friends bravery than i am what this does for that resident industry, you know, a lot of places tried to do only tours, accessible industries, i am not willing to buy a house sight in scene some people may be. Dagen i know people who have done it. Talking about moving into city they dont want to commute anymore, listen, it is going to be a very dark i will sell my house right now if they dont want to commute anymore i can get further away lets make a deal. Maria lets take a short break. A new york i am not talking about d. C. I am talking about ask happening left and well be right back. On this program we are take a break whether we come backlar larry to talk about reopening we will get his take on where we are right pou right now in this pandemic and shut down. Stay with us. I am totally blind. And non24 can make me show up too early. Or too late. Or make me feel like im not really there. Talk to your doctor, and call 8442342424. Stimulus spending grilling that will happen in about an hour and a half Federal Reserve chairman jay powell seen the mnuchin to test before Senate Banking committee speaking on coronavirus release efforts including emergency lending principals to theling 500 billion dollars, 530billiondollar Paycheck Protection Program chairman powell will confirm central bank plans to use quote its full range of tools to support the economy, after saying on 60 months sunday Federal Reserve not considering negative Interest Rates joining me National Economic Council Director larry kudlow great to have you thanks so much for joining is. Thank you, maria. It is a pleasure. Let me start with the give us status check larry i want to talk about Chinese Companies what is going on in terms of listings accountability, but start with testimony coming up where we are in the economy, all of the stimulus thrown at economy do you believe it will work . To actually lead us out of this and see growth the second half of the year . Well, look. I i dont really consider what stimulus i think it was rescue mission cash liquidity trying to the staib lives the situation some cuts most spending cuts Federal Reserve roughly four trillion lending programs, actually the fed Balance Sheet maria, is up about 2 1 2 trillion, m2 drawing over 20 yearoveryear stabilization efforts i think you will see are from secretary mnuchin, and the fed chairman jay powell. Looking ahead, you know we are going to have a very bad pandemic contraction we will be reported for the Current Quarter there is no question a lot of pain. A lot of heartbreak in numbers you have seen in Unemployment Rate, probably have perhaps another month of it to go, but having said that, i think now we move into the gradual phasein reopening i think 48 some odd states big threecar makers opened this week a big sign ive got glimmers of hope to report, i think the second half can be very strong, and i think 2020 2021 can be stronger i think going to have to have growth oriented incentive oriented deregulation tax cuts supplyside policies, get america to fullest potential the president built it once i think can rebuild it again. What are some of those incentives, larry i know that of you talked a lot about a payroll tax holiday, is that is that critical . What else. That is one payroll tax holiday could be very, very important, the president has said publicly he is looking at the possibility of a Capital Gains exclusion for companies for anybody that might buy assets, are companies billing factors whatnot request sclufgs from capital gain Capital Gains several years deductions, daeksz thursday and yesterday a very positive discussion we are looking for incentives for off shoring, full expensing may be cut Corporate Tax rate may be targeted tax credit we learned we cant trust china in situations like this, of course, looking at the fencing off or shielding liabilities related to covid19 for restaurants all businesses for that matter the package has not been decided, discussion going on in white house meeting with president so forth those are some of the things he himself has mentioned. This is really important package that you mentioned, what weve talked about on this program is more flexibility in terms of the ppp, restaurants, hair salons struggling to cover essentially expenses, and youve got that 8week period, do you support those changes . I know a congressional move but they have to act on this but do you support loosening up 75 25 rule and 8 week rule. I want to wait and see on discussions 57 to 10 75 to 10 rule i talked to secretary mnuchin we talked about extending from 8 to 24 weeks president thought a snifbl issue we havent committed on it i dont know if it requires new legislation, but it may. So i am going to leave that, but i know the president said that is a pretty sensible ask the extension to 24 i want to get to china before i get there is there any way Unemployment Rate could be below 10 by september . You said growth second half of the year . Well, look the Congressional Budget Office has put out numbers that show a very significant rebound, about 20 . In the second half of the year. With unemployment get below 9 . I would say it is a possibility maria. I think if you look at the terrible unemployment claims that again, very bad, i think about 80 of them 80 of them maria scored reported as temporary layoffs. So i guess my point here is if the economy opens and opening i think at fairly good pace that is for may probably go into next month june. We probably will see a lot of people go back to work. And i know the president wants to see those folks that do go back to work should get a 7. 6 cut in their payroll tax, so they are after tax income takehome pay goes up. So i am you know we will see on those forecasts. Maria so let me ask you about china. China raised as much as three trillion dollars or more in our equity debt markets recent years larry we have news this morning about restricting Chinese Companies nasdaq to unveil new rules on ipos could make it harder for some Chinese Companies to list on Stock Exchange when i spoke in interview with president last week i asked in particular how he is trying to pull back money in thrift fund allocated to the Chinese Companies, watch this. Will i go one step further and force Chinese Companies have to follow a rule if they want to be listed on new york Stock Exchange and. It is run by obama appointments right . We said you got to do this we are going to find out whether or not they are going to do it soon if not we are going to replace them very quickly. We are looking at your second part of your question we are looking at that. Maria President Trump, of course, moves to block the federal retirement money from chinese equities, larry tell me about what the path ahead looks like, are you going to push for more accountability from Chinese Companies listed on nysc and nasdaq. Well we have to we have to fore Investor Protection we have to for have National Security advisory Robert O Brian and i wrote a letter to Scalia Labor Department sent to thrifty saefks plan retirement force the president directed him stop this new fund. That would have for the very first time put Chinese Companies in look. Whether sec, or the Public Accounting board or a number of credit agencies we have learned Chinese Companies not transparent do not meet regulations usual blue sky laws, larger companies, by the way, involved in Chinese Military efforts to the detriment of the United States a lot of companies, by the way, already had he scandals caused investors a lot of money because of failure to be transparent, in their reporting the Chinese Government for bids that kind of transparency, what is more, again, we cant ask military retire toes invest in Chinese Companies that are operating against our own interests. And in some cases with respect to this pandemic, we saw the president wrote an excoriating note to the World Trade Organization china and wto complicit lacked transparency lack information losing like collusion for coverup means with respect to government in China Companies in china the potential for various lawsuits, and overall you know penalties financial penalties until that stuff is sortdz out nobody really can invest with confidence in china i am just saying transparency openness, accounting ruled start with thrifty savings fund but administration wants to protecting investors and we will be studying that, over the next weeks. Maria kroo do you think you are going to see response from china . I mean what if they start selling our debt how much debt do they own of the u. S. A noble they will set our debt the crown jewels of Foreign Exchange they would lose more money doing that like catching a falling knife i dont expect that under normal market conditions. Lack. The solution here for chinese to open up their investment system, and to play according to the rules set by longtime authorities in the usa sec being the key the Public Accounting board being another key. There are issues here american accounting firms, and china, have been warned they are discussions going on about how they are going to do Going Forward. Those companies themselves subject to lawsuits for fraud, and so forth. So this is a very tough the solutions for china is not to sell u. S. Bonds when would bankrupt Chinese Government the solution for china to put transparency and openness into it, just as i want to refer back to the president s incredibly tough letter to the World Trade Organization went out last night, where is the transparency . Where is information . Why are you colluding with china with respect to this to coverup regarding virus all they things are on the important stuff we so appreciate you joining us to go through it thanks very much good to see you, sir. Thank you appreciate it. Maria larry kudlow joining us at the White House Joining me right now to react Dallas Mavericks owner member of President Trumps economic rival Team Mark Cuban youve got a lot of ideas in terms of getting reopened your reaction to what you heard from larry you are an investor through and through, are you going you are going to change when it comes to Chinese Companies on listed on these exchanges. Yes about time i have been calling for it for years agreement produced a p remove called china hustle about this same talk about we have loud chinese Public Companies to play by their own rules not to live up to usa accounting standards or even sec standards, this is long, long, long maria we are just hearing now, mark, that reuters is reporting that the nasdaq has asked Luckin Coffee to delist. Look, you saw what happened with Luckin Coffee. This was the Coffee Company of china that wanted to be the new starbucks and basically they were trying to steal the starbucks recipe for coffee. Its had massive accounting issues because again, same issue, transparency. Look whats happened to the stock. The nasdaq wants it to delist. I want to get to some of the reopening with you because you have great ideas but not everybody is satisfied with the governments attempt at saving Small Businesses. You are saying its time to face that fact, the Paycheck Protection Program quote, did not work, in your view. Was it some of the issues i just discussed with larry, the 75 25 rule, the eightweek period . What specifically in your view that was part of it. That was part of it. So if you look at the progression, the ppp plan was perfect in conception, right. If it would have funded the first week of april, all those companies and remember, the goal was to keep employees connected to their jobs, because it was cheaper to have them employed than on unemployment, if it would have funded quickly, we would have millions and millions more still employed. Instead, they went on unemployment and now because unemployment stimulus is so high, its hard to get them back. Combine that with the fact that some are still not fully open, which leads the your point, we need to go beyond eight weeks which i think now we need to do, but even then, with partial openings and eight weeks to 12 or 16 weeks, its still hard to get employees back. We need to figure out ways to get employees to want to come back before the july 31st end of the Unemployment Insurance stimulus. Maria yeah, but mark, why would they want to come back . Give me a break, theyre making this 600 a week on top of the other money that they have. You look at some of these states, they are making more money for staying home than they are to come back so the president wants to reopen the economy, but in the next couple weeks, but guess what, they are getting paid until the end of july. Theyre not going you think we will see a change . Well, you know what i propose, i give the president credit, he established a liaison for me personally to work with the white house and i have been talking to the person every single day. One of the things i proposed, we will see what they come back with, is that its cheaper to allow companies and for the government to pay a 5,000 bonus to get those who are on Unemployment Insurance to come back because it will cost less money and get them back to employers, take them off the unemployment roll and allow companies to open up and hopefully do a lot of business. But we are still, with all that said, we are still facing a significant decline in consumer demand and thats really the base of all the problems. Thats really where we need to focus our stimulus Going Forward. Maria you are calling for the government to directly hire and train americans to cap the skyrocketing unemployment numbers. Mark, do you agree with what the administration is saying that we are going to have growth in the second half of the year . Do you agree that third quarters transition president called it transition to greatness Fourth Quarter growth and 2021s a good year . Yeah, of course. We are working off a lower base. If you start with 100 and go down to 10 and all of a sudden, you have 12, thats a 20 growth. Its not necessarily, you know, were not going to get back to where we were. Thats the most important thing. How do we get back. The president s right, theres going to be incredible growth, the numbers are going to look great but in terms of absolute numbers, we are still going to be way behind. We need to focus on creating stimulus for demand. Maria and that stimulus plan you are suggesting that american households receive 1,000 every two weeks for the next two months. But the money must be spent within ten days of receipt or will expire . Right. So the key there is timing. The idea is once people come back to work, either through an Incentive Plan like i mentioned or after july 31st, because they are off of the increased unemployment, then you want to really push the stimulus because we need to keep those small and medium and Large Companies in business and the concept is by just throwing money to people so they can spend on whatever they want. If its essentials like utilities, rent, broadband, great. If its for unessentials, it can be anything. Those are the things we need to stimulate the economy because part two for the challenge for ppp is not only are we not getting them open but theres not demand there to keep them open. We need to find ways to keep businesses open. Maria all right. We got to jump to stuart right now, mark. You have been thinking a lot about the American People. You still want to run for president , real quick . Its going to be really tough. You never know. Maria going to be tough. Mark, good to see you. Always a pleasure. We cut into stuart varneys time. Hes not going to be happy. Stu, its all yours. Im sorry. Stuart not true. Any time you want to ask mark cuban if hes running for the presidency, i will give him a couple minutes. Maria, good morning to you. Good morning, mr. Cuban. Good mo