Pandemic. This week the Senate Passed a bill that will force Chinese Companies to follow the same accounting rules as u. S. Companies listed on u. S. Exchanges. The nasdaq is set to unveil new rules of initial public offerings, a move that could make it harder for some Chinese Companies to list on nasdaq. I spoke with larry kudlow,ing the white house chief economic head, about this a hardline stance toward Chinese Companies as well as the white houses decision to halt money from the thrift fund going into Chinese Companies. Watch. The solution here is for the chinese to open up their investment system and to play according to the rules set by longtime authorities in the usa, the sec being the key and the Public Accounting board being another key. We cant ask military retirees to 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 the w. H. O. Were complicit. They lacked transparency, they lacked information. It looks like there was collusion for a coverup. Maria and joining me right now to discuss more on this is roger robinson, president and ceo of the rwr advisory group, he is also a former senior director for International Economic affairs for the National Security council during the reagan administration. Roger, it is great to have you, thank you for joining us. Thank you, maria. Maria lets go through the most important things that took place this week, roger, because i you have the thrift fund, a fund of 500 plus billion dollars. The goal was to take 10 of that money, 50 billion, and invest it in the msci index. The president has changed that because when you zero in and understand the companies there, youre talking about Chinese Companies building tanks, Chinese Companies building the tracking system that are tracking the uighurs who are currently in jail, all companies that are pretty much against u. S. interest. Thats for sure. It was the a monumental decision. I mean, this has been an area, maria, thats been largely neglected for 20 years. I mean, you cant find much on the National Security and human rights dimensions of chinas presence in the u. S. Capital markets. You cant even find much effective march of last year on the Investor Protection angle. So this has been off the radar screen for a couple of decades, and it came back on with a vengeance with the thrift plan. Those Board Members of the federal retirement thrift Investment Board simply went too far. I mean, the msci all country index, as you said, has advanced Weapons Systems manufacturers, human rights abuserses and so forth, but theres also the problem that larry kudlow and others have been talking about which is the lack of pcaob audits, lack of disclosure of their corporate financials, their noncompliance with sarbanesoxley and doddfrank. I mean, china has cheerily not been playing clearly not been playing by the rules. The chickens have come home to roost. This is now out front and center at long last, and the president should be commended for that. But it was a very close call. We were within two weeks away from all that youre talking about becoming a reality. Maria right. And in addition, i asked the president about these companies that trade on the New York Stock Exchange and on the nasdaq that dont follow the same rules as u. S. Companies. Watch. You know, Everyone Wants to be a tough guy. Look, im the toughest guy, but what happens is we we say youre going to do this and youre going to follow the rules of the New York Stock Exchange if or nasdaq, what do they do . They say, okay, well move to london or well go to hong kong. Maria lets review. China has a raised as much as 3 trillion or more in i our equity and debt markets, and there are now well over a thousand Chinese Companies in our capital markets, most of them listed over the counter, nyse or nasdaq, but they dont follow the same accounting rules. They dont is have to sell us have to tell us if theyre making money. How is that possible, roger . Well, the index providers of this country certainly didnt help. Theyve gone to asian markets and added hundreds of Chinese Companies. I didnt see a wit of diligence as to who those companies are or what they do for a living or whether theyre compliant with federal securities laws and the like, and they wered ad to etfs and put in the portfolios of scores of millions of americans. We might have as many as 170 million americans unwittingly holding the wrong sorts of Chinese Companies in their portfolio today. Look at the states public pension systems, universities. The vast majority of those are holding these companies because of lack of vigilance and lack of compliance. And forcing compliance, more importantly. So this has been a,ing frankly, a disaster. And when you talk about going elsewhere to london, hong kong, other places, thats not happening very easily, i can tell you. Look at the liquiditys not there, the depth and volume of the markets, the Research Report not to mention the prestige. None of that is happening in places like london. London has a total market cap of 2. 4 trillion, ours is 37 trillion. And they have how Many Companies on their exchange today . Two or three . I mean, the shanghai, london stock connect which was advertised as being a huge new event to increase listings in london, its all but collapsed because of the repression in hong kong. Hong kong itself is being beaten down by the mainland, and its shaking investor confidence. So if you look around the world as to where china goes, if we have the temerity to force their compliance with federal securities laws, its a very bleak picture for china. Its a very strong picture for us. Maria yeah. You make a really good point in all of that. I want to take a short break, and then i want to come back and ask you about the impact on u. S. Investors. We got a taste of it when we saw what happened with the starbucks wannabe. This is decision tech. Find a stock based 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. 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. Maria welcome back. We are back with the ceo of rwr advisory group, roger robinson. Roger, i want to talk about the impact this is having on u. S. Investors. Look at this chart of Luckin Coffee. What happened here was exactly what youre talking about. We learned that the company was lying about its sales, about its earnings and, of course, the shares plummeted. American investors had access to that, they thought that Luckin Coffee was the new starbucks until they didnt. Indeed. And look, if you want to see fraud, were talking about a 4. 4 billion overstatement. Luckin coffee was about 310 million which is dramatic as well. So the problem with fraud is rampant. And just imagine in may, on may 7th in 2013 the u. S. , through the pcaob, signed an mou with chinas Security Regulatory Commission that basically gave china a free pass on these kinds of audits and compliance with federal securities laws. Seven years later nothing has happened. If anything, china has dug in and is even more recalcitrant in terms of the willingness to allow their companies to submit to independent audits that every American Company is forced to do. I mean, this is preferential treatment, pure and simple. I cant imagine that the president is keen on seeing this kind of thing continue. I mean, its a, its end dangering the american investor community. Maria yeah. I also want to mention gsx. Gsx is another firm that has been really, carson block, who joins me on mornings with maria, has said that the company is making false statements. This is a beijingbased company, they keep pushing back though. So far the stock has host a lot of value because investors are thinking maybe there are also issues at gsx. The bottom line here, roger, we dont know. Were not getting the transparency, and we dont have a clear read on their accounting, so investors need to beware. Why isnt the scc doing more on this, rogersome. Well, they put out a statement that i have to tell you was quite anemic from the chairman of the scc and pcao to b not long ago that was heavily criticized by former chairman Arthur Levitt and michael mann. They were on target with this, im afraid. I mean, you cant just say buyer beware and then not offer remedies. I mean, they didnt have any kind of solution set. I mean, when you dont play by the rules and u. S and break laws, forked goodness sake, you should be deregistered, delisted. There are a number of tools available to the sec. We havent seen any of those tools applied here. I mean, we have the ability to give 30 days notice on that mou, and after 30 days we should give the chinese a distinguished period of time, say six months, to come into compliance with these federal securities laws and pcaob laws. If they dont comply, those noncompliant companies should be deregistered. Maria do you think were going to see blowback from china . Look, they hold a significant amount of debt, the u. S. Debt. That, if they start selling that debt, that could be a disruption to u. S. Markets. The Chinese Communist government is not happy that the u. S. Administration is pushing back so much not only on things like theft of intellectual property, but their inclusion in our capital markets. What kind of a response might we see from china, roger . Well, i think they have to be the awfully careful. I mean, this is the area of their single greatest vulnerability and arguably our greatest strength. I mean, we utterly dominate the financial domain on this planet. And thats something they have to keep in mind. I mean, their response will probably not entail trying to sell off treasuries. Not only would they take a bath, but we can handle the trillion one if they were to do so. I mean, it would be a rise in interest rates. Not debilitating. It would be fairly shortlived. I mean, they dont have nearly the leverage that is attributed to them, so im not unduly concerned about that at all. They have to, again, tread lightly on the finance. They never wanted the money to see the light of day. Thats why it was off screen for 20 years. So, maria, i think that we dont have to worry. What are they going to do . Go elsewhere . There largely is no elsewhere. Maria all right. We will leave it there. 1. 1 trillion in debt. Its interesting, youre right, a lot of people make it out to be a much bigger number. Roger robinson, its great to have you here. Thanks very much for joining us. Thank you, maria. Maria stay with us, my e oneonone with the ceo of Delta Airlines is up next to talk about the reopening of america. Back in a moment. Maria bartiromos wall street, vo since our beginning, our business has been people. And their financial wellbeing. Its evident in good times, with decisions focused on the longterm. And crucial when circumstances become difficult. That continued emphasis on people our advisors, associates, clients and communities gives us purpose, strength and a way forward. Today. And always. 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. As america gets back up and running, all 50 state now showing some phase of opening, all eyes are watching the airlines, one of the industries hardest hit by this crisis. Traffic down more than 90 . One of the keys to how fast the postpandemic recovery will be has to do with the airlines. Former wynn resorts Ceo Steve Wynn joined me on mornings with maria on what its going to take to get vegas back up and running. First thing is the airlines. Weve got to make sure that the service that has supported those 160,000 rooms on the strip the, that the airport is up to speed. Otherwise people will only be able to drive from california. So assuming that we get lift from the airlines. Maria so where are we in that . An exclusive interview this week, delta Ceo Ed Bastian gave me his thoughts on the state of the airline industried today. When will we start seeing traffic once again . I agree with what steve said. We need to get our, the economy reopened. One of the challenges we have in the Airline Space is that no one flies on that airplane just to fly in an airplane they need to have someplace to go. So they need to have the resorts open, the casinos open, the hotels, the restaurants. People need to know what to expect when they get to their destination. What im hearing from travelers constantly, particularly those that are out traveling, and we still have a meaningful number of people who are traveling, is that there are very impressed with our cleaning standards, with the quality of service that were providing. They dont have someplace to go when they get there, so so they need to understand whats going to be on the other side of their trip. They need businesses to be reopened, they need those casinos to be in place. Were working as a travel ecosystem. I spoke last week at the u. S. Travel Association Board meeting about that very case, and were all in this together as we all say. Maria how would you characterize where we are now, ed . Do you feel like youve seen the worst, or its hard to know . I do think weve seen the worst. Mid april while everyone was under stay at home orders and International Restrictions were up in terms of travel for every country around the world, we really were at the bottom of we were down to probably about 5 of our revenue base that was still traveling, primarily in the u. S. You compare that to today, were up to 10. So the optimist in me says weve dealt with the worst in the last 46 weeks as we start to reopen our economy, still very much domestic, but still weve got a long ways to go. Were about 90 down on a yearoveryear basis but making slow and steady improvements. Maria you have said you want to keep planes no more than 60 full, new reports that the company will administer flights to keep up with that demand, and you could resume service on some routes. What can you tell us about that and about your cash burn right now, ed . The analysts, obvious, are talking about the liquidity position, and you seem to be having enough liquidity, but where are you in terms of that and your and how much money the company burns . Ill tell you,ing weve done a great job of reducing costs. When your revenues are town as low as they are, you really need to focus on getting your costs down. For the Current Quarter that were in, our second quarter, costs are going to be down in total more than 50 on a yearoveryear basis, thats over 5 billion for delta. Weve done a great job of raising capital through the private markets. We expect to end the june quarter, june 30th, with a cash balance of about 14 billion. So were prepared for a long, difficult winter ahead, theres no question its going to be very slow in coming back. But over the next 1218 months, im confident travel is going to return, and were going to see our economy opened up primarily because of the mobility that were going to enable through the airline industry. Maria yeah. I mean, the president , when i spoke with the president last week in that exclusive interview said that, look, were not sure about International Travel, but people will start moving within the country fairly soon, certainly he was expecting that. What do you say about International Travel, ed . Is that sort of the last thing that you might expect to reopen at this point . Is that a 2021 affair, do you think . I think International Travel largely is a 2021. We do operate continued routes, you know, into europe and into asia, into latin america where we can. But primarily though were flying because of cargill. Were bringing medical supplies in, were bringing essential supplies back to the country cargo. But we are starting to take customers on those trips as well. Id say the one market that were seeing the most success on is korea, and we are going to be instituting, starting next month, sevenday service to seoul. I think the koreans have done an excellent job of giving us a peek as to a what the future looks like in our industry. On the domestic side, it still continues slow, but, you know, were making good progress. Today our load factor on dell a that is somewhere about a 3540 full primarily because weve taken many flights occupant of the system. I was on a plane yesterday, it was 50 full, and what i said is once we get close to 60 president on an individual route, thatll be the trigger for us to administer planes into the system. So for the month of june were adding about 200 flights into the system, and then in july probably another 2300. Maria my thanks to ed bastian, ceo of dell a that airlines. Dont go anywhere, more wall street right after this. Maria welcome back. Coming up next weekend right here on the program, dont miss us friday night, 9 p. M. Eastern. Ceo barry sternl are ich will be my special guest. And be sure to tune in for sunday morning futures over on fox news channel, special guest this weekend tennessee senator marsha blackburn, congressman andy biggs and former acting attorney general matt whitaker. 10 is a. M. On sunday. Plus, every weekday start smart and tune in with us weekdays from 69 a. M. Eastern for mornings with maria right here on fox business. This upcoming week we will welcome Martha Stewart on wednesday. And my colleague Stuart Varney will be hosting a virtual town hall this upcoming week, thats next thursday, may 28th. Stuarts panel will be dave ramsey, ken coleman and chris hogan. Send us your video questions, and well get them on the air, invested in you at foxbusiness. Com. Thatll do it for us for this weekend. Thanks so much for joining me. Have a great rest of the weekend. From all of us, a good memorial day. Ill see you again next time. Gerry hello, and welcome to wall street journal at large. Well, its memorial day weekend, the weekend when we remember those who sacrificed their lives for the country. Its also normally the unofficial start of summer and a time for three days of r r for millions of americans. But these are not normal times. As the country grapples with the economic devastation caused by the lockdowns. As of this week, all 50 states have now finally allowed some nonessential businesses to open but with limits. Memorial day beach v