Maria in this edition of the weeks talkers. Watch. Maria what will be the retaliation coming from china . Its certainly posturing. At this point, theyre in a war of words with the united states, and theyre doing their best to show they can take global action. I think the other thing we should be concerned about with is where do they have points of leverage. Maria its almost our duty to stop the people from running the world. They plan to run the world by mid century, but with the pandemic, theyve speeded up the timeline. Maria what is your reaction to joe bidens climate plan . Hes been taking over by this radical progressive left, you know, Green Energy Future thing that aoc and ill hand Ilhan Omar Ilhan omar and Bernie Sanders are out there pitching. Maria our audience wants to know about the coronavirus vaccine. We will be publishing the results of our preclinical data, but we start human trials next wednesday. Maria how would you characterize the earnings season so far for the Second Quarter . I dont think the market cares a whole lot about Second Quarter earnings, it wants to know is the Third Quarter going to be better than the second by how much, and more importantly, what does next year look like. Maria and as we just mentioned, earnings season is in full swing, and while some early indications point toward the impact of the shutdown having bottomed out and being behind us, should we expect the pain to linger in the second a half of the economy . Lets talk about that and how to allocate capital right now with the founder of the bonnson group, david bonson is here. David, thank you for being here. Let me get your take on the earnings season so far. Of what have we learned . Yeah. Were so early that its mostly been financial companies, and thats always interesting because the banks are going to be on the front line of credit growth, credit demand, and then on the risk side, loan loss provisions. And really most of the numbers, there are a couple exceptions, wells fargo primarily, but for the most part it was a pretty good week for the banks. At least in terms of from the low baseline that expectations were set. Maria would you buy the banks at these levels . Do you think that their values are attractive . Well, we would buy jpmorgan almost at any level because we believe theyre always a very wellrun, strong balance sheet, very diversified company. And because of our focus on Dividend Growth and our belief in jpmorgans perpetual ability to grow their dividend, then we are buyers of jp. For some of the other banks, i think investors have to be willing to take a little bit of risk. None of the other banks have as strong of a Capital Markets franchise combined with Traditional Bank like jp. Maria do you think that the economy gets better the second half of the year . Are you expecting growth . Yeah, the economy most certainly gets better, the question is how much better and how quickly. And so those vshape versus ushape debates, i think, are getting a little tired because what were seeing is its being manifested very differently in all kinds of different industries, different parts of the economy. And so unfortunately maria i see. From a social and cultural standpoint, the pain of this recession is really concentrated. Its always concentrated in lower income segments, but this one in particular because thats with where the bulk of that unemployment came from. So our belief is that at whatever point you can really start to get some economic reopening with more momentum, then youre going to see vshaped responses in the moment. Maria yeah. Its the extension into next year, and thats where i was encouraged this week by Small Business optimism, on the nfib number and on industrial production. I dont know if its going to be sustained or not maria okay. But that Business Investments going to be key into 2021. Maria as we look ahead to the second half, the election is there, this week we did get more about joe bidens economic plan. He wants to raise taxes, he wants to spend 2 trillion on a green plan. But there are some on wall street who believe that Elizabeth Warren is going to be one of his most informed economic voices. Whether or not shes treasury secretary, even if she stays in the senate, shes got the voice on where things go economically. You wrote a whole book about her. Whats your take on what she brings to the table should joe biden win this election . Well, heres what i hope is the case and what i right now think is the case, but we could get to a point where what i hope and what i believe have to diverge, and i pray that doesnt happen. I really hope that hes going to campaign pretending as if bernie and elizabeth and this whole camp of farleft progressivism and really in warrens case when it comes to financials, its just incredible extremism. It means the rhetoric around private equity and around Bank Regulation is bad enough. But some of those policies particularly in a time of economic vulnerability would be devastating. And not just to Capital Markets and not just to wealthy people. I mean, it would be devastating throughout the economy. I think bidens in a political position where he has to try to appeal to that group. He came out of a tough primary and so forth. And yet i really kind of wonder would he actually be a president more like Bernie Sanders or Elizabeth Warren or a president more like i hate to say it, but even barack obama, let alone a bill clinton. Maria well see if this is just getting bullied by the extreme left and what he actually comes out with. David, you wrote the book on it, and we appreciate you joining us. Thank you, sur. Thank you, maria. Maria david ban seven joining us. Whwhwhwh looks like they picked the wrong getaway driver. Theyre going to be paying for this for a long time. They will, but with accident forgiveness allstate wont raise your rates just because of an accident, even if its your fault. Cut sonny. Was that good . Line the desert never lies. Isnt that what i said . No you were talking about allstate and insurance. I just. When i. Lets try again. Everybody back to one. Accident forgiveness from allstate. Click or call for a quote today. groans hmph. food grunting menacingly when the food you love doesnt love you back, stay smooth and fight heartburn fast with tums smoothies. Tum tumtum tum tums with tums smoothies. My money should work as hard as i do. Thats why i use my freedom unlimited card to buy heavier weights online. Got it go time with freedom unlimited, youre always earning. I shouldve purchased lighter weights maria welcome back. Well, the second half recovery in focus while the economy continues to rebound from the covid19 shutdown. Recent spikes in coronavirus cases across the country have many people questioning how strong a recovery we will see. What part will a fourth phase of stimulus play in insuring the second half recovery as well . Joining me right now to talk about that is National EconomicCouncil Director larry kudlow. Larry, it is great to see you this weekend. Thanks so much for being here. Thank you, maria. Maria is so you were with us a couple of weeks ago, and you said you are expecting a 20 second half. You said we could see 20 growth in the Third Quarter, in the forty quarter. Are you still fourth quarter. Are you still expecting that, larry . Yes, were still there. And, actually, recent numbers look great. I mean, i want to talk about this very important issue. We are looking at a vshaped recovery. You just had blow outnumbers in housing, manufacturing, industrial production, retail sales, hiring very, very strong. Unemployment claims down 15 straight weeks, continuing claims also falling. Thats really the key metric for lower unemployment in july. A lot of things look really good, hiring numbers look good. All these locals, the philadelphia fed, the new york fed, tremendous purchasing manufacturing results coming in. And so forth and so on. Now, i understand weve had this outbreak in several geographic places. I get that, and its a very serious matter. Let me say just two things quickly, if i may. One, for folks who want to keep business and the economy open and for folks who want a strong Economic Growth and Jobs Creation pace in the second half and next year, it is essential that they observe the four key health guidelines. That is masking, distancing, testing and good perm hygiene. Personal hygiene. This is what worked to mitigate the pandemic last winter. We are still feeling out the first days of the pandemic. This happens, we were warned about this. It can be overcome, and those curves can be flattened again, more ya. But again, the economic recovery, the vshaped recovery story must be tied clearly to the guidelines that each of us have to exercise responsibly especially if you are maria yeah. In a hot zone. Now having said that, i would just say we are on guard, we are scouring all the numbers. There may be some moderation in the v recovery in july. That is possible. Were looking at all the numbers. Including the case rate, the hospitalization rate and the fatality rate. And all the indicators, maria, and the indicators still look very good. But anyway, we are looking closely maria okay. And there may be a slight moderation in july. Maria yeah, no, its a good reminder about the masks and the social distancing, etc. So youre going to be watching these numbers, and you may moderate that expectation after july. Well come back to you on that, larry. Let me ask you about stimulus and what it should look like. Of course youve seen the story that there is a big disagreement within the white house about what a fourth stimulus package should look like. Does the president want a payroll tax the cut . Are you disagreeing with mnuchin on that . Tell me where we are in terms of a fourth package right now, larry e. Yeah. Look, if i may, respectfully and politely, disagree with that story. Secretary mnuchin and i have worked together hand in glove for two and a half years. And it has been a great pleasure. And we work on a daily basis, were in the same meetings all the time. We discuss, at least somebody in the west wing doesnt understand this, we always discuss different ways to implement the president s policies. All right . He might have an idea, i might have a different idea, all right . He might have a context, i might have a different context. But we work hand in glove together. There is no ethics struggle. The president does want a payroll tax holiday, and that along with restricting covid liabilities for Small Business, restaurants and so forth. One of the key aspects of our asks for the next round of cares act which will probably be discussed beginning next week when the senate returns. Steve mnuchin is a good man, and as i say, actually going back to the campaign in 2015 weve been working together. So those stories should be completely disregarded. [laughter] i dont know where that stuff comes from. If i had any hair, id be pulling it out. Maria yeah. No, i assumed, i assumed that was true because youve got to put lots of ideas on the table to come up with the best thing. But let me ask you this because july 31 is when that unemployment benefit goes away, that additional 600 that people are getting. A lot of people complained about that, in congress anyway, senator Lindsey Graham a few weeks ago saying why are we paying more money to stay home than to go back to work. You want to open the economy, well, people are making more with this 600. Thats going away. Will it be extended . Well, look, we will reform that 60. Were look at some options, by the way, some people are asking me why are you getting rid of Unemployment Benefits when you till have a lot of unemployment . The answer were not. We know theres hardship out there. Weve had tremendous rebound in jobs, and i think much more is coming, but were not getting rid of Unemployment Benefits. Now, a couple things. We are looking at various ways to cap total Unemployment Benefits, federal and state and local. Were looking at various ways to do that which will provide plenty of liquidity and support and assistance to those who are dont have a job to go back to. But it will not deter them from working. We will keep the incentive structure to go back to work in play. Second, were looking at reemployment benefits. I cant quote specific numbers because thats still under discussion. But that, too, will provide an incentive go back to work, reemployment. And third comes the president s strong view that we should have a payroll tax holiday. You know, we could, maria, on the payroll tax do what we did on the business side back in march. Business had a pay e roll tax holiday. I dont know if people understand that. Maria yeah. It was a deferral, essentially, a deferral of the tax, and part of that can be rea paid next year and part the following year when the economy is back on its feet x. That wont is have any particular budget implications but is another incentive to work. Maria yeah. Well, senator barrasso was with me last weekend, and he said theyve got to get something done, somethings got to pass before they leave again on august 8th. So we have got a small window of opportunity. I assume you believing something passes in the next couple of weeks. Yes. Wed like to get it done by the end of july. How about that . Thats an early target. Wed like to get it done by the end of july, if possible. Maria yeah. Well, thats, of course, when the benefits go away. Real quick, larry, before you go on china, the rhetoric has really been raised this past week as attorney general bill barr is basically calling out companies saying theyre more interested in shortterm profits, selling wing gents to 1. 4 billion people, than recognizing the National Security risks are existing long term. Your reaction, what do you want to say about china to investors this weekend . Well, look, theres you know, a lot of issues here. Number one, i will just say we are still engaging on the trade deal, the phase one trade deal. And china says it wants to immr. President it e, and actually so far they are. Well see on that part. The rest of the story is not a good story, as you know. The president has always been the way they handled the early stages of the coronavirus, they hid information, did not tell the rest of the world, they did not tell the World Health Organization which weve dropped out of because theyre in cahoots with china, they were not transparent. Theyve taken over hong kong. Theyve losted theyve forced out the democracy and Voting Rights of hong kong. This is particularly troublesome to us. The president just signed the autonomy act. We are going to sanction certain parts of the hong kong economy, and well probably sanction certain parts of the chinese. Thats under discussion, under consideration. And, look, on National Security they have violated normal customs in the South China Sea and elsewhere. Theyre building up a huge military. Robert obrien, National Security adviser, and i have sent letters to the federal thrift savings plan and the Railroad Retirement plan strongly suggesting that they not invest in chinese securities because there is fraud maria yep. And a lack afterness afteo transparent s and i were transparency. Maria all right, we will leave it there. Larry, thanks so much. Thanks, maria. Maria larry kudlow. Maria larry kudlow. Stay right the new house is amazing. So much character. Original crown molding, walk in closets. We do have a ratt problem. Round and round with love well find a way, just give it time. At least geico makes bundling our home and Car Insurance easy. It does help us save. Round and round with love well find a way, just give it time. Round and round what comes around, goes around. For bundling made easy, go to geico. Com Simon Pagenaud takes the lead at the indy 500 coming to the green flag, racing at daytona. Theyre off. In the kentucky derby. Rory mcllroy is a two time champion at east lake. Touchdown only mahomes. The big events are back and xfinity is your home for the return of live sports. Maria welcome back. Well, very few is industries have been hit harder by the covid19 shutdown than the airline industry. Tell that Airlines DeltaAirlines Reported an adjusted net loss of nearly 6 billion in the Second Quarter. I spoke to Ceo Ed Bastian about that. One of the things we said about the beginning of the pandemic if we could minimize layoffs, thatd be a real testament to the strength of the company, the culture and the people, and i think weve got a real shot at going just that doing just that. Only a minimum level of furloughs, and i think weve got a shot at no furloughs. We are finishing off an Early Retirement Program with our people here in the month of july. We had over 17,000 of our people is subscribe to it voluntarily, 20 of the work force, and on top of that monthly leaves of absence, unpaid leaves of absence. In the current month, we have 40,000 people on those and thousands more that will continue over the course. So the delta people are stepping up and making a great sacrifice and commitment as we try to downsize the airline in the face of the pandemic. Maria well, youre handling all of this great with terrific leadership, ed. But i know that youve already made impressive progress on cutting costs. Total, out cutting total operating expense by more than 50 in the june quarter. Youre expecting that to sustain through year end . What does that do to cash burn, . Well, cash burn is the one and only metric were measuring these days in the industry. When the pandemic started, we were close to 100 million a day that we were burning cash, and it just immediately stopped. And the team has gotten it to the point where in the month of june were down to 27 million a day, so thats a 70 in just 90 days. A lot of it through the cost side, the 50 reduction, great sacrifices by all of our people, the cost to the company and our call is to eliminate that cash burden by the end of the year. Weve got some work to do to take that 27 million down to zero, but based on the success weve had to date, i feel cautiously optimistic. Maria ed, when would you expect International Travel to come back . Is that a 202 the 1 affair . 2021 affair . Very much so. Its going to lag domestic by probably 12 months in scale. So id say anyone thats looking to go overseas, im optimistic that next summer will be a Good Opportunity to do that. Maria my thanks to ed bastian. Dont go anywhere, more wall street right after this. Usaa is made for whats next were helping members catch up by spreading any missed usaa insurance payments over the next twelve months so they can keep more cash in your pockets for when it matters most find out more at usaa. Com in a highly capable lexus suv. At the golden opportunity sales event. Get zero percent financing on all 2020 lexus models. Experience amazing at your lexus dealer. [camera man] actually anyone 50 or over is at increased risk for shingles. The pain, the burning my husband had to do everything for weeks. And the thing is, theres nothing you can do about it [camera man] well, shingles can be prevented. Shingles can be whaaat . [camera man] prevented. You can get vaccinated. Frank they have shingles vaccines whaaat . Thats what i said. Were taking you to the doctor. Not going through that again. [camera man] you can also get it from your pharmacist talk to your doctor or pharmacist about getting vaccinated. Maria welcome back. Thats all for this week. Thank you so much for joining us. I hope youll join us next weekend, another big show. Be sure to tune in to fox business every friday night, 9 p. M. Eastern, for another edition of wall street. And then this weekend on Fox News Sunday morning, sunday morning futures, 10 a. M. Live. Louisiana senator john kennedy and former senior white house adviser steve bannon, my special guests, along with the founder of bridgewater and author ray gal owe. Catch the show live, 10 is a. M. Eastern on fox news. Plus start smart every weekday, tune in right here on fox business weekdays from 69 a. M. Eastern for mornings with maria right here on fox business. Have a great rest of the weekend, everybody. Thanks so much for joinings. Ill see you next time. Swraims james hello, and welcome to the wall street journal at large. The u. S. Is facing another political panic over the coronavirus. While several states are experiencing more cases, covid19 is not taking lives as it did just a few months ago. And overall, hospitals are not being strained the way they were when the virus was at its worst in the spring. Yet media cries for locking down American Society have returned. In California Governor Gavin Newsom has reversed the golden states reopening, shutting down