His new book that chronicles the rise and fall of general electric, a corporate titan. All that coming up. But first, lets take a look back at some of the weeks big moments and the top news item makers on mornings with maria. Heres this weeks edition of talkers. Republican aides say a two month extension of the unemployment aid expansion is being considered. Do you want to see that . No. The white house is not there yet. The president s not there yet. We know this expiration, we suggest that we make a deal. Maria whats your take on a middle ground in terms of the federal Unemployment Benefits right now . With respect to the 600 a week benefit, that wassing . Extraordinary that was done back in march. It was important when we were closing our economy. Maria do you have a sense of what industry you are, youre looking toward . So were looking for what we call the superdurable growth company, a business that can grow for a very long period of time, very high barriers to entry, its difficult to compete with. Were looking for the great, you know, longterm hold. Maria whats your take on chicago and this reaction to having federal help . Chicago needs help. Chicagos in trouble. We had 14 people shot in front of a funeral the other day. Maria what can the federal government do about this . Well, the president is right, its anarchy. And were not talking about the peaceful protesters. Were talking about those individuals who have hijacked these peaceful protests, and theyre criminals. Maria what do you make and what can we understand about this closure of the houston consulate . Theyre spying, theyre stealing, all the things that theyre doing. Im guessing and i havent been briefed on this because it just happened in the last 24 hours that something bad was happening by chinese operatives in the houston area. Maria reopening the economy with covid19 infections on the rise across the country, the white house and capitol hill are working on another round of stimulus to stave off potential shutdown and the continuation of recovery. Joining me right now is to discuss is mohamed elerian. Mohamed, it is great to have you, thanks so much for being here. Thank you, maria. Maria assess where we are, mohamed. I want to talk about whats being talked about in washington in terms of this next relief package. Of course, the president has been real vocal about wanting a payroll tax holiday. That is being met with some debate but, certainly, we do have money for schools that they have agreed upon, and theyre having trouble agreeing on this liability protection. What do you think the next round of stimulus should look to like given where we are in this economy . So this is a very tricky moment, and i sympathize with those trying to design employment response. Its tricky because we are flattening out. Were getting indicators that the economy is stalling because of renewed health concerns. So so an optimal package and i want to start what an optimal package looks like has four components; relief for those who once again are losing their jobs, expenditure to make living with covid, this period were going through until we get a vaccine more healthy and more economically vibrant, the third set of measures to counter longterm pressures on productivity and then a fourth set of measures to counter rising Household Economic insecurity. Thats a lot for congress to do. So i suspect that we will focus on the first two elements, and we have to find a way to provide relief in a more focused and toworkmanner proworkmanner. Maria and we are going to be living with this for a while. We are going to have to adapt. But the Unemployment Benefits, that 600 a week, goes away july 31. They are now agreeing to do a shortterm extension of that. You know, the issue here as you know is that people, some people, are making more money just to stay home than they would be working on the job, and thats making them not want to go back to work. So how do you open an economy when youve got one of the policies actually encouraging the shutdown . So the answer was easier before we had an increase again in cases, hospitalizations and deaths. At that point the answer is dont make it practical for people to stay home. Now its trickier, maria, because things are shutting down again in certain states. So this is not about peoples willingness to work, this is about peoples ability to work. I suspect were going to end up with something additional. It wont be 600. I suspect itll be less than that because weve learned that 600 does 600 does make it harder for people to go back. But people do need relief right now. Maria let me talk a little about your oped and the news on china. This week, of course, the economic cold war, whatever you want to call it, definitely stepped up given the houston consulate that is going to be closing this weekend as well as a new worry about the San Francisco consulate. You write in your oped that were looking at right now the rivalry partnership possibly. Is it possible to have a partnership in the middle of all of this . Not for now. As the oped points out, the next few years. This is not an issue of weeks or months. The next few years are going to be character used by more decoupling between china and the u. S. Thats going to be part of a bigger process of gradual deglobal. And its going to be degloballization. And its going to be driven by more than governments. Its not just about tension between the u. S. And chinese governments. Were going to see u. S. Companies localize their production chains, pull them out of china, get them closer to the u. S. Were going to see households push back against this notion of having competition from china because unemployments not coming down quickly. And were going to put a lot of pressure like we did with the u. K. On what i call countries that want to play both sides to make difficult decisions. So this is a process of decoupling. This is a process of degloballization. The hope is that you can continue to operate on key issues like pandemics, like climate change. But i think its going to be really truckee in the next couple of tricky in the next couple of years to stop this decoupling. Maria whats your take on Chinese Companies that are trading on u. S. Exchanges, mohamed . Were going to speak with senator marco rubio coming up, and this past week he withdrawsically called for basically called for companies to be barred from american exchanges. Hes pressing the white house to take a hard line as it ramps up pressure on china. You know that these companies do not follow sarbanesoxley. They really get a pass. Theyve traded on the Near Stock Exchange and nasdaq, and they dont have to tell us the true story of their Quarterly Earnings the way every other company does. Should they be on these exchanges if they dont follow the rules of america . Yeah, i think weve gotten to a point where we are saying enough is enough. Enough is enough in terms of intellectual property theft, enough is enough in terms of an unequal, unlevel Playing Field in the Way Companies are created. And this is another enough is enough. And i i think that people have to realize that we have crossed that line, that the tolerance that the u. S. Was showing earlier is gone. And for good reason. The assumption was give china time, and they will adhere to global standards. And what has materialized is much less than that. Maria mohamed, obviously, well keep following it, and we enjoyed your oped. Thank you very much for being here. Its always a pleasure, maria. Maria stay with us, my oneonone with florida senator marco rubio up next. Stay with us. I like liberty mutual. They get that no two people are alike and customize your Car Insurance so you only pay for what you need. What do you think . I dont see it. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. In a highly capable lexus suv at the golden opportunity sales event. Lease the 2020 nx 300 for 339 a month for 36 months. Experience amazing at your lexus dealer. And the clock could be ticking towards bad breath, receding gums and possibly tooth loss. Help turn back the clock on gingivitis with parodontax. Leave bleeding gums behind. Parodontax. But what if you could stdo better than that . K. Leave bleeding gums behind. Like adapt. Discover. Deliver. In new ways. To new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back. But bounce forward. Thats why were helping you stay ahead and adapt with a network you can count on, 24 7 support and Flexible Solutions that work wherever you are. Call or go online today. Maria welcome back. Tensions between the United States and china flaring up again this past week as the state department ordered the closure of the chinese consulate in houston, texas. Florida senator marco rubio says that consulate was long thought to be a mass spy center. I spoke with the senator about that on mornings with maria. So this consulate is basically a front for, its kind of the central node of a massive spy operation, defense espionage, also influence agents to try to influence congress, you know, they use businessmen as fronts in many cases to try to influence political leaders at the state and local level, and its long overdue that itll be closed. The secretary of state probably already has the ambassador basically called him in, told him were going to do this, told them why. Given their agents, we know who they are, 72 hours to leave the country. If they dont leave, theyll be arrested as spies. And then the whatll happen is theyll, you know, youll see this all the time, every country does it e when your embassy or consulate is closed, they start destroying everything in there. They have a plan of destruction, so for us, the marines are in charge of doing that if someone closes our embassy. So theyll destroy computers and red documents. The chinese will respond, theyll close one of our facilities somewhere in china, probably wuhan, as youve outlined. Maria well, its unbelievable. We have been talking about this now for years, and during the president s talks, the trade talks with chinese officials, they kept going back and forth saying we want the ip theft stopped, but the chinese officials would not agree to it. What is this, a strategy . In fact as a strategy to grow for china . Yeah, absolutely. Now, look, theyre also investing billions of dollars in these industries. They are trying to become an Industrial Power on par or greater than the United States, particularly in the new industries thatll dominate the 21st century. But in addition to that, they steal our secrets. And so you can imagine, for example, you talked earlier in the program about vaccines. So we are investing billions of taxpayer dollars in this race for a vaccine, so the taxpayers sort of create the baseline for it, and these guys get to come in and steal it and, for free, sort of start their research from that point forward. It just cant continue. So weve seen this over and over again whether its forced intellectual property transfers, whether they come in through a Front Company and buy an innovative American Company and steal secrets that way or, in this case, they just hack into a computer. Theyre very aggressive about it, and it is not a small part of the advances they have made to this point. Many of the great, big leaps theyve made in technology are the result of them stealing it from us or someone else. Maria unbelievable. And you mentioned that hacker situation. The u. S. Is accusing these two former E Engineering students, theyre students, for allegedly Hacking Computers and stealing the trade secrets. Now for more than a decade. The hackers stole for both profit for themselves as well as for the chinese intelligence. Recently targeted firms involved in covid19 vaccine research. For the better part of two years, ive been part of this road show along with the fbi and Homeland Security meaning weve brought in academia, the chamber of commerce, Telecommunication Companies, the Rural Electric can and Telecommunication Companies and read them all into this threat. And youre right. Look, theres still resistance out there because youve got companies that have built their entire Business Model around doing business with china. We are nowhere near where we need to be yet in terms of being aware of this net and addressing it, but we have certainly come a long way. Maria my thanks to senator rubio. Dont go anywhere, ted mann is here to talk about his new book when you think of a bank, you think of people in a place. But when you have the chase mobile app, your bank can be virtually any place. So, when you get a check. You can deposit it from here. And you can see your transactions and check your balance from here. You can detect suspicious activity on your account from here. And you can pay your friends back from here. So when someone asks you, wheres your bank . You can tell them heres my bank. Or heres my bank. Or, heres my bank. Because if you download and use the chase mobile app, your bank is virtually any place. So visit chase. Com mobile. My agerelated macular degenso today i made a plan with my doctor, which includes preservision. Because he said a multi vitamin alone may not be enough. 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Getting the boot from the dow 30 two years ago, wall street reporter ted mann who covered the fall authored the book, lights out. Ted mann from the wall street journal, great to have you here. Thanks very much for being here this weekend. Thanks for having me. Maria congratulations on the book, ted. Its a great read. I love corporate stories, and this is really an important one because ge was such an Important Company not just for the employees and for the market, but really for mom and pop. When you had stock in ge, you felt like it was in the bank, it was safe. Can you walk us through what went wrong, ted . Sure. Its a complicated story, but youre right, it was a stock that many mom and pop investors held for many years. It was a stock you had to hold in any portfolio because of its breadth and essentially functioning almost like a proxy for the whole economy. What happened over the last several years was an attempt to transform ge under jeff immelt that really went awry. And one of the things they were trying to do was to break a reliance on their Financial Services business which had almost taken the company under during the financial crisis and really since 2008 large investors were not going to ever be comfortable with again. They were never going to treat an Industrial Company that needed to rely so heavily on Financial Services and lending like the solid thing it had once seemed to be. So in trying to break their resistance on Financial Services, they also went out and made a giant industrial acquisition, the purchase of most of of alson. The market for that equipment was diving off a cliff. So the combination of those two things and then the mismanagement that eventually was revealed within ge is power business ges power business itself where a lot of the profits that had looked so solid to investors turned out to herbally be just there essentially be just there on paper, and you had the business at the heart of this corporation essentially running out of cash at the worst possible time. And the result of all of those things happening, you know, really within quick succession was just a devastating blow to the company itself. Maria you know, you make a lot of important points. The acquisition, i remember hearing jeff immelt talk about it, and he would joke that he had to deal with the french government, and it was so bureaucratic e, and that was one of the issues there. On the ge capital situation, there were a lot of complaints from investors and analysts that it was a black box, that we didnt really know what the true earnings story was in ge capital. But thats, putting that aside, there were other things that he got rid of as well, right in implement did. He changed the face of this company. He wanted to change the motto, we bring good things to light. So he really went down into all areas of ge to, what, refresh it . Was that the goal . I think thats, i think that was part of it certainly on the advertising taglines. He wanted something new and fresh and different. Immelts defenders and immelt himself, i think, would also point out that there were things in the company that he inherited that needed to change, and there were business lines that, frankly, investors didnt particularly love and that he wanted to get out of, some of the older commoditized businesses like appliances and lighting. So in many respects, he was trying to show that this old model, this conglomerate model could be refreshed and updated and could continue to be the essential corporation and essential stock that it had been, and i think that in some respects he succeeded. This were a lot of acquisitions in the aviation business, for instance, and that remains a leading jet engine business. But there are other decisions that dont look very good in hindsight. Maria so i guess it was the financial crisis that really got in the way of what had been a partnership and a great friendship between jack welch and jeff immelt. Jack chose jeff to be the ceo, and then i guess later regretted it. I want to say that the other day when you were on with me for mornings with maria, i said jack wanted to take jeffs name off the leadership building. I got a call from jeffs representative who said, no, no, jacks name still on that leadership building. I can you now, is it wrong to say that jeff wanted to unjack ge at some point, and was it because of the upset over the financial crisis and how the stock plummeted during that time in. Well, i guess the Public Relationship between them obviously changed during the financial crisis. Ge missed a target, and welch criticized immelt on Television Pretty bluntly. And immelt then went on to utter this remark in a public forum which i believe is disputed by his representatives, something along the lines of a german shepard could have managed this company back when jack welch was running it because the economy was so hot in the 90s. So, obviously, there was a bit of a blowup between them then. In the later years, really welch mostly kept his mouth shut in public about how immelt was doing, but there was a lot of background resentment about the Sluggish Performance of the company. Maria ted, its great to see you this weekend. Thanks so much. Congrats on the book. Thank you. Maria it is a great read. Check it out. Ted mann, lights out. Dont go anywhere, more wall street right after this. Hey, can i. Hold on one second. Sure. Okay. Okay safe drivers save 40 guys guys check it out. Safe drivers save 40 safe drivers save 40 safe drivers save 40 thats safe drivers save 40 . It is, thats safe drivers save 40 . Hes right there. Its him hes here. Hes right here. Hi hi. Hey thats totally him. Its him thats totally the guy. Safe drivers do save 40 . Click or call for a quote today. Car vending machines and buying a car 100 online. Vented now weve created a brand new way for you to sell your car. Whether its a year old or a few years old, we want to buy your car. So go to carvana and enter your license plate, answer a few questions, and our technowizardry calculates your cars value and gives you a real offer in seconds. When youre ready, well come to you, pay you on the spot, and pick up your car. Thats it. 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And other Money Managers dont understand why. Because our way works great for us but not for your clients. Thats why were a fiduciary, obligated to put clients first. So, what do you provide . Cookie cutter portfolios . Nope. We tailor portfolios to our clients needs. But you do sell investments that earn you high commissions, right . We dont have those. So, whats in it for you . Our fees are structured so we do better when you do better. At Fisher Investments were clearly different. Maria welcome back. Coming up next weekend on the program, dont forget to join us, 9 p. M. Eastern friday night, well talk with blackrock cio rick reider, my special guest. We want to get into rock bottom Interest Rates and the impact on your money. Next weekend, right here. And this weekend on sunday morning futures, fox news channel, live at 10 a. M. Eastern, ill be talking with congressman devin nunes along with ray dalio, my special guest this weekend. 10 a. M. Eastern on sunday morning over on fox news. Meanwhile, right here on fox business, start smart every weekday, 69 a. M. Eastern for mornings with maria on fox business. We are live every morning, and we hope youll be with us. Thatll do it for us for this weekend. Thanks so much for joining us. I will see you again next weekend. Have a great rest of the weekend. Lou democratic leadership in americas largest cities continue to allow wallace writers to so chaos and destruction. They are forced to remain in their homes. Police and portland, oregon, declared a riot last night during what is the 56th straight night of unrest in the city. Arsonists starting several fires around the federal courthouse despite federal Law Enforcement officers. They threw fires, molotov cocktails at
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