Transcripts For FBC Cavuto Coast To Coast 20240714

The 70s that wiped 2 3 of the value of equities. That was then. Is it now . It is hard to say but early indications no. Whats remarkable here my friends, as we look at these numbers how tame they are, considering what is going on. If this were to have occurred back in the 70s and the Worlds Biggest Oil producer which saudi arabia was at time, so much of its oil sidelined we would be in deep you know what. So far does not appear to be the case. Price Futures Group Senior Analyst phil flynn at the cme. Phil, it is remarkable, you know . It really is and you really got to credit the u. S. Energy industry, donald trump and his Energy Policies allowing u. S. Energy producers to do what they do best, that is producing energy. It raises concerns when you listen to the democratic president ial candidates and their Energy Policies what a different story this might have been if we had a democratic president right now. It could have done a lot more damage to the u. S. Economy because these are candidates that want to get rid of fracking, get rid of drilling n that case we wouldnt have the buffer of supply that really kept this oil spike from really blowing out of proportion to adjust to it. Having said that neil, i dont think were out of the woods just yet. We dont want to do a victory lap. There is still significant risk on the table. Hearing President Trump there could be retaliation because of what happened. President trump said he is locked, ready to go. This is uneasy calm. The u. S. Economy is in better shape than it has been in history to handle this type of shock. Neil thank you, my friend, very much. Phil flynn at the cme. To put this in perspective this phenomenon did not sprout up under the trump administration. Energy independence was the goal of the Obama Administration, the bush administration, before that seeking out Energy Alternatives as well, wind, solar, other things, but the bottom line the fracking phenomenon began under bush years continued under the obama years. This is a Long Time Coming this independence. A lot based on republican and democratic president s alike, who didnt think too keenly relying on opec for variety of reasons none the least developments like these. This is built on notion that maybe saudis will correct a loss of supply. 5. 7 Million Barrels affected today, by recouping two to three million by the end of the week, by the end of the week. It will be mitigated. Keep in mind were in the bit after global slow down, particularly in asia. So that coupled with these developments here, the supply and demand are kind of meeting each other. Blake burman at the white house, with what the president is thinking of doing right now. He said, blake, he was locked and loaded. What does that mean . Reporter all options, i guess, neil, as administration are on the table. The administration clearly putting the blame on iran as u. S. Officials are telling fox that the cruise missiles and drones that landed in that Saudi Arabian facility over the weekend did indeed according to u. S. Officials came from iranian soil. The president suggested in a tweet today do not put weight on iranian denials. You remember when iran said the drone was in their airspace. They stuck close to that story because it was a very big lie. Now they say that they had nothing to do with the attack on saudi arabia. Well see. Energy secretary rick perry in europe said not only an attack on saudi arabia but also on the Global Economy and energy markets. Listen. That the United States wholeheartedly condemns irans attack on the kingdom of saudi arabia. We call on other nations to do the same. This behavior is unacceptable. It is unacceptable and they must be held responsible. Reporter the president tweeted over the weekend that the u. S. Is locked and loaded but the debate is picking up how to respond. That a tweet from mitt romney earlier today who said quote, direct engagement by u. S. Military to irans attack on Saudi Oil Infrastructure would would be a grave mistake in his estimation. Democratic senator chris coons talked about the possibility of u. S. Military action. Want to see the intelligence but it seems credible that the houthis dont have the advanced drones that carried out this crippling strike on saudi Oil Facilities. This may well be a thing that calls for military action against iran if that is what the intelligence supports. Reporter the president authorized the release of oil from the Strategic Petroleum reserve. The department of energy says the reserve sits at 645 Million Barrels but neil, perry said at this point, action is quote, premature until everyone really gets a handle on how long this facility will be impacted from these strikes. Neil . Neil blake burman, thank you very much, my friend. Before we get to my next guest to explore options for this country, a quick peek what is happening for the dow. Obviously this is going to be a very, very big issue Going Forward for the markets. The fact were down 166 points in and of itself is not surprising. The sectors are breaking down pretty much as you would imagine. If youre an airline stock, this is hitting you hard, whether youre southwest or jetblue, united, American Airlines or delta, those issues down anywhere 1 to 3 depending on the issue. If youre a defense stock, salivating this will be more attention to your issues, raytheon, lockheed martin, grumman, host of others up anywhere two to 4 . If youre playing this conservatively as a lot of people are, looking for flight to quality, not only does it go in oil or gold or bonds. You see Interest Rates coming down a little bit on the notion here this maybe gets to be a safety play. To former president bush 43 Deputy Defense secretary Peter Brookes what we do in response. If were convinced, peter, iranians are behind this and democrats believe there is good reason to believe it is iranians, Houthi Rebels, for example, wouldnt have the wherewithal to do this. I dont know if that is true. Then what do we do . First, neil, of course we have to mitigate, right . The oil security issue we want to make sure this cant happen again. In saudi arabia it may require Additional Air defenses for the short term. We want to make sure were correct in attributing it. Were getting early reports, i think iran is directly or indirectly involved, whether iranian militias out of southern iraq or Houthi Rebels or iranians themselves. Next thing we have to consult. We talk to the saudis. They are not saying a lot right now. I heard some drones or missiles fell short of the target. We can look at those to find out if iran is involved. Then we have to decide how to respond. Whether the United States thought this was an attack on saudi arabia. So they obviously have a large say in how the United States and others might respond to this, to these events. Neil they have been very oddly silent, the saudis on this, im just wondering why . It dovetails with their reluctance to show any eagerness for dramatically ramping up production. Russia of the same mind set. Im wondering, am i missing something here . Well, neil, besides theyre pretty busy right now obviously with this tremendous crisis on their hands, also its a Public Relations disaster. Think about it. This was an attack on their major oil facility. The saudi people must be questioning whether the saudi government can keep them safe. There have been a the lot of attacks in southern saudi arabia from yemen and the Houthi Rebels. There have been attacks in northern, other places in northern saudi arabia potentially out of iraq by iranianbacked militants. So this is really a significant issue. I think theyre also waiting to make sure before they point a finger. And i think there is plenty of time to respond to this of course like i said they have to get their Oil Production back up and online. Neil what did you make of Russia Holding off on any increase in production of its own . I leave it up to oil experts. Some of these countries, oilainly, especially iran, why prices higher. If youre putting out less exports fewer exports in what 30 years, every barrel costs more, is more expensive that benefits iran. Why would you go after saudi arabias oil . Obviously it is center of gravity for the saudi state arrival of iran but in a sense it will drive up prices. It hasnt driven up as much as many expected. Maybe iran thought it would jump 20, 30 , every barrel they export would bring more money into tehran. Neil thank you my friend, very much. Peter brookes. Thank you. Neil the dow is down 160 points. I mention there are those who benefit from crisis mentality builds particularly when it has anything to do with the middle east. Chevron, exxonmobil, two premier component in the dow are up, up smartly on this. It will increase a need for a lot of stuff that they churn out and refine. Turn out this could be shortlived price hikes here. Right now the price is real and comparable. What is remarkable here, this jolt to the Economic System may be owing to the fact that opec doesnt nearly have the clout it used to, for that matter saudi arabia. We are taking this pretty well. That is a remarkable development. Were on top of that. Also on top of negotiations underway between the United Auto Workers and General Motors. [shouting. No contract, no cars no contract no cars. We are the union. Mighty, mighty union. Devices are like doorways that could allow hackers into your home. And like all doors, theyre safer when locked. Thats why you need xfinity xfi. With the xfi gateway, devices connected to your homes wifi are protected. Which helps keep people outside from accessing your passwords, credit cards and cameras. And people inside from accidentally visiting sites that arent secure. And if someone trys well let you know. Xfi advanced security. If its connected, its protected. Call, click, or visit a store today. Neil gm stock down 3 . Nothing has to do with what is going on opec, saudi arabia. Everything having to do with 49,000 uaw workers walking off the job. They want better benefits. They want a whole other things they have not getting down from gm. They made a lot of money since the meltdown and rescue. They want a piece of that. Grady trimble is live fors. Hey, grady. Reporter neil, we passed the 12hour mark of the strike. This is modest group behind me. This is snippet what is going on across the country at gm plants. To be honest with you there is ocean apart between what the union is asking for according to Union Officials and what gm is offering at the bargaining table. The conversation is going on in downtown detroit a few plants miles from where we are here. There is a plant set later to close. They want higher wages, better benefits, including health care. In an unprecedented move gm put out what it offered to the union, which included 7 billion worth of invests, a long with a little more than 5000 new jobs and higher wages. But the union is prepared to take this thing as long as it has to, they tell me, until they reach the deal that they want. What is my fear in all this . We might be here for a while. We cant make it on 250 a week. Ultimately were going to get an agreement with General Motors. Were going to reach a tentative agreement whether today or tomorrow. No one knows the time frame. But that is our job and that is our goal. That these people here depend on it, quite frankly all of america is looking at this. Reporter you hear people honking as they drive by supporting these people on the picket line. Now the union wouldnt get into details what theyre asking for but they say they have only agreed on 2 of what theyre asking for with General Motors. So could be quite some time before this thing wraps up but either way, neil, well stay on top of it and bring you the latest. Neil grady, thank you very, very much. Meantime oxycontin maker Purdue Pharma is officially in bankruptcy. That filing paves the way for a settlement. What does that mean for the victims . Susan li with a lot more. What are we looking at . Susan we were expecting Purdue Pharmacy to file bankruptcy on sunday night. That is what they have. This halts further litigation against the company, maker of oxycontin, they have been accused of sparking the Opioid Crisis across america which has killed 400,000 since 1999. This doesnt include a partial settlement as they call it, with two more dozen states across the country and cash portion of 10 billion, with 3, 4 1 2 billion contributed by billionaire sackler family, which owns Purdue Pharma. 18th richest family across america. Operations will continue but overseen by a trust with the portions and contributions going to the, shall we say benefit the plaintiffs in this case. Now the sack letters themselves are not filing for bankruptcy sacklers. They are not filing bankruptcy. That is important. Over two dozen of the states, they didnt sign on a to the partial settlement. We also have a department of justice looking to civil and criminal complaints. You can imagine there will be more court cases more lawsuits to come. Purdue pharma as i mentioned to you makes oxycontin. It has been aggressively apparently, allegedly marketing opioids i guess without informing patients of the addictive qualities of the drug. Purdue pharma i asked them, what do you do if youre a plaintiff in this case and how do you get part of the settlement . They pointed me to this website. If we bring it up, primeclerk. Com. File one of the claims, they will get back to you. Dont forget theyre looking how to distribute some of this money, exactly how much because it really depends how much oxycontin this Company Sells over next few years which in itself is pretty controversial. Neil . Susan, thank you very much. A quick peek at the dow down 159 points. You would think it was a lot worse. History suggestion anytime we have a conflagration in the middle east it has been worst. Oil down 10 , typically with flareups, it is often time double, triple that impact. Nothing like that right now, maybe owing the fact that opec is not what it used to be. Within the dow, exxon, Energy Sector in the s p 500 doing quite nicely, thank you. Theyre benefiting from the higher prices today. The question is, how long they last . More after this. Der. Thats why your cash automatically goes into a Money Market Fund when you open a new account. Just another reminder of the value youll find at fidelity. Open an account today. Imagine a world where nothing gets in the way of doing great work. Where an American Icon uses the latest hr tools to stay true to the family recipe. Where a music studio spends less time on hr and payroll, and more time crafting that perfect sound. Where the nations Biggest Party store can staff up quickly as soon as its time for fun. This is the world of adp. Hr, talent, time, benefits and payroll. Designed for people. Why accept it frompt an incompyour allergy pills . E else. Flonase sensimist. Nothing stronger. Nothing gentler. Nothing lasts longer. Flonase sensimist. 24 hour nondrowsy allergy relief but how do i know if im im getting a good deal . I tell truecar my zip and which car i want and truecar shows the range of prices people in my area actually paid for the same car so i know if im getting a great price. This is how car buying was always meant to be. This is truecar. Neil were down a little more than half a percent on the dow. Potentially robbing the day of the ninth straight day of advances. Oil a big reason why. You have to be living in a cave if you hadnt heard a major drone attack attacking saudi officials, just drones. Raising a lot of concerns how that could happen. It could have multitrillion dollar effect on oil prices contained, up about 11 . Charlie gasparino and i could remember if that happened in the 70s, it would be a big story. Or the 80s. Neil or the 80s, exactly. Im not minimizing but by comparison relatively contained. Were getting word that saudis might delay the aramco public offering. Were reporting that. Fox business reported clearly being discussed is a delay of this thing for a few months. Neil a few months . Were not hearing indefinitely. They think they will have their hands around two months. Contingent whether this is delayed, they have to make sure these Oil Facilities are secured. I mean, two lousy little drones, right, is it two . , i mean. Neil it is remarkable. No soldiers, no air attack. It was drones. It was cheap way doing this. Neil the richest kingdom on the planet. Basically knocked out their oil supply. Neil yeah. That is one thing. Theyre weighing security. Theyve to go to investors to say, our Oil Facilities are secure. Neil good luck with that. The second thing they have to have calibration how much oil they can put out with these type of attacks or with this attack. It sounded like. It sounds stupid. Look at it this way. The ipo was priced off of how much money saudi aramco makes. They make a lot of money through the oil supply or selling oil. If they dont have a good handle how much they could sell, how much this will impact, it screws with the pricing. It is a disclosure issue for investors. They could be sued bit sec. Investors if theyre not disclosing any and all, the full month atty how much they have to produce. Neil this offering will be in saud, right . It is a multilayered offering. Neil the own reason i ask, they have their own rules. But u. S. Investors wont buy it if they dont play by their rules. You want this thing, at some point you want other changes, you want currency that is liquid that trades every place. No investor will buy this without these sort of things addressed. That is what i hear theyre working on . Will it definitely be delayed . We dont have that. Theyre seriously talking about it because they have to address those two major cursed from day one almost. Neil it really has. First they were going to do it, then they werent going to do it. Then the assassination of the journalist Jamal Khashoggi last year. A lot of banks were afraid of dealing with the crown prince. The assassination probably was caried out by someone in saudi arabia close to the crown prince, if not himself. Neil days after he handpicked his own energy guy. Right. There is a lot of questions. Neil i dont want to be cynical about this but wouldnt they welcome the Higher Oil Price . It is a interesting way of looking at it. Oil prices are going up, thus, that should make theoretically the stock more attractive. The downside reason going up because of risk to their supply and disclosures they have to make. Part of this thing is legal. You have an offering document. Lawyers are pouring over it. In the offering document they have to disclose risks to production, stuff like that. Can you imagine what the risk factors will be on this thing . It will be pages and pages here is how we deal with the situation Going Forward. That is one of the problems. They will have to disclose how theyre going to tight end up security, disclose it in a legalistic way that doesnt mislead investors. This is tricky legal stuff when you do an ipo. One of the unfortunately risks the Saudi Arabian, of saudi aramco is terrorism. You know alibaba had its own risks. The Chinese Government essentially controlled it. Peoples republic of china is essentially behind a alibaba, that is a communist country. That was disclosed in the risk factors. Investors bought it because neil only fame game in town. Oil supply chain is locked down. Neil that is amazing they could be taken out by drones . That is i spoke with underwriters today, can you believe, like neil they have been worried about an attack on kingdom, soldiers flooding into saudi arabia Houthi Rebels. Thises with a toy rocket almost. Not quite, but in that genre of not the most sophisticated neil no single soldier involved, no single soldier response. Not the most sophisticated of way of knocking out their oil supply. Neil youre the best, my friend. Charlie gasparino following all this closely. China facing a slowdown, a 17 1 2 year slowdown, you have to go back that far to see these big numbers. Chinas finance minister saying about the 6 growth weve been enjoying i dont know that we can keep going. A lot of people were saying that 6 growth was a lie and that lie is not sustainable. After this. I get it all the time. Have you lost weight . Of course i have ever since i started renting from national. Because national lets me lose the wait at the counter. And choose any car in the aisle. And i dont wait when i return, thanks to drop go. At national, i can lose the wait. And keep it off. Looking good, patrick. I know. vo go national. Go like a pro. But when i started seeing things, i didnt know what was happening. So i kept it in. He started believing things that werent true. I knew something was wrong. But i didnt say a word. During the course of their disease around 50 of people with parkinsons may experience hallucinations or delusions. But now, doctors are prescribing nuplazid. The only fda approved medicine. Proven to significantly reduce hallucinations and delusions related to parkinsons. Dont take nuplazid if you are allergic to its ingredients. Nuplazid can increase the risk of death in elderly people with dementiarelated psychosis and is not for treating symptoms unrelated to parkinsons disease. Nuplazid can cause changes in heart rhythm and should not be taken if you have certain abnormal heart rhythms or take other drugs that are known to cause changes in heart rhythm. Tell your doctor about any changes in medicines youre taking. The most common side effects are swelling of the arms and legs and confusion. We spoke up and it made all the difference. Ask your parkinsons specialist about nuplazid. I thats the retirement plan. E, with my annuity, i know there is a guarantee. Its for my family, its for my self, its for my future. Annuities can provide protected income for life. Learn more at retire your risk dot org. Neil were getting word amazon reportedly changed the search algorithm in a way that would boost its own product. In other words you want to look for something, i dont know, processed meats and cheeses it would guide you to its own processed meats and cheeses. I dont know if they have meats and cheeses but not a bad idea, amazon. Theyre looking into that. Regulators are circling around the company saying you dont play fair, youre too big for your britches, were keeping track of all that. A china slow down that seems to be deepening before the Oil Dependent nation got word out of the attack on Oil Facilities that will clobber prices for chinese, a big buyer of that oil. Industrial output in china hitting a 17 1 2year low. Liz peek, on what that could possibly mean. That adds insult to injury, isnt it . This is another signal that china is struggling to deal with effects of trade confrontation. President trump talks about that all the time but he is right. Neil do you think the development with oil and china, depend send sy on that oil, might have hasten ad settlement going to the United States . That is the last thing they need. That is the last thing they need. The problem we dont know how long it will continue. Saudi arabia is reaching out to other opec members telling them not to increase production because they can manage the short fall in supply by themselves. Neil they all kind of enjoy the uptick. You think russia is celebrating . Absolutely. So i would view this as a hiccup but the truth is, neil, as you have said before on air, we dont know what the chinese economy looks like. Were petting scattered information about bank failures, companies being under pressure because of overly high debt. All kinds of things seem to be going wrong. We dont know if it grows 6 , or 2 . You dont know. The answer, china is in a very different place than 10 years ago when they had to put tens of years of workers migrating from rural areas to cities to work. That is no longer the case. They are at a demographic fall off point. Where numbers of workers basically stymied, stagnated. It is a different kind of an economy. Here is what weigh do know, they want their consumers to step up spending so they can get off the debtfueled infrastructure construction. Neil it was government edict. It is not working. Why . China is not a very confident nation and when you have a crackdown on law and order really repressing individual freedoms it doesnt work. I think people who are projecting never ending growth in china and overtaking of the u. S. Economy, i think its a little bit like the japan story in the 70s. Is it going to work for china . Maybe. But there are signs such as this Industrial Production falloff that not all is well. Neil not all is well, to your point, let me switch to the Oil Situation in saudi arabia i certainly can remember a news item like this would have sent oil prices sky rocketing. Certainly we saw it during the 70s oil crisis, they doubled, tripled, quadrupled often time in matter of weeks. We saw that again with the persian gulf wars. The kneejerk reaction, buy up the oil, wore about later. Im not minimizing a 10 or 11 hike in oil prices but that is nothing like we would have seen in the 70s and did see in the 70s and countless crises since. For good reason. There used to be a real chokehold on the worlds economy by didnt of saudi arabia Oil Production. Something happened to saudi arabia the great swing producer in decades. We were all in trouble that has so significantly changed. There are so many other sources of oil in the world, particularly the United States. Neil were a net exporter. Were a net exporter. People really underestimate what a shock this is to the energy markets. No one thought the United States was going to turn around a long term decline in production and now become the Worlds Biggest Oil and gas producer. That is an as stoning thing. Neil that is nice situation for Companies Like exxon, chevron, mobile, to be in because price of stuff is rising but longer term to control the market means a lot more than whatever the price is. Sure. Dont forget, Oil Prices Today around 50 bucks or whatever, there was a time when it was 100 a barrel of oil. Neil absolutely. So now when you get a 10dollar increase in the price of oil, maybe it costs consumers 25 billion. We have 15 trilliondollar consumer economy. It is just not going to be that meaningful. By the way, i dont think it lasts very long. Neil knowing you were coming i always do my homework, i know you do your homework, we. Who had the most homework. Neil 1979 when Oil Prices Spiked with the second opec crisis do you know what that peak was in inflation adjusted terms . No. Neil 125 a barrel. Wow. That is a big change. Neil that is a huge change. Huge sentiment. Real quickly one of the things i was more worried to see is how easily this facility was compromised, without a single soldier, without a single soldier response, drones, came left untold damage, longer term in the middle east would be a pressing urgent, critical concern. I think they respond to that quickly. I gathered what happened, they do have air defenses protecting their oil fields but theyre geared towards airplanes. I always go back to george w. Bushs comment it was a failure of imagination, the attack on 9 11 this was a failure of imagination, they had 10 drones attacked oil fields so quickly, so effectively. But they will respond to that, im sure. Neil drones are front and center. They are. Neil iranians shot down one of ours. Youre saying these drones are taking more prominent i agree. People wonder what can they do . Why are we concerned about them . We know what they can do. Neil i know you will explore this on bulls bears, a lot more. Liz peek she knows what she speaks. Me, i get excited when i do a historical analogy like that, 125 oil. Work with me people. Oil is up 11 . Most of the s p 500 sectors theyre kind of split, oilrelated issues, doing well. But you have to break that down. Good day for defense stocks, raytheon, lockheed martin, northrop grumman. A host of others. Predictable beneficiaries are benefiting. Those going to get the short end of the stick when it comes to Oil Prices Going up. Southwest, jet blue, united American Airlines, delta, need i go on . My producer telling me, no, you need not. After this. Ees need more than just a paycheck. 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This is truecar. Thand find inspiration who win new places. Ct. Leading them to discover were woven together by the moments we share. Everything you need, all in one place. Expedia. Frstill, we never stoppedss wmaking it stronger. E. Faster. Smarter. Because to be the best, is to never ever stop making it better. The 2020 cclass family. Lease the c 300 sedan for just 429 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. Should always be working harder. Thats why your cash automatically goes into a Money Market Fund when you open a new account. Just another reminder of the value youll find at fidelity. Open an account today. Neil in a battle of steel being Services Netflix landed seinfeld streams rights starting in 2021. That could be a deal changer for them. Just as disney is hitting the ground offering its own product, unique content. You have what is happening already with apple with that 4. 99 a month content. Apple is very satisfied, just add this to the existing streaming services you have because the price is so good. Youre dyingdigging deeper into debt. It will get deeper and deeper. 10 days to avoid a government shut down. Theyre a long way from being done. Maya macguineas says the problem they might get to the finish line, get these approved, but will we be worse off for it . Youre still concerned. Both sides argue it. This is part of our budget deal. Well get through it. Spending bills are approved. Live goes on, no reason to worry. Numbers are getting worse. Politicians are caring about it less and less. Something will have to give. Now were in the midst of one of these last minute scrambles. Seems to have happen every time. It is fiscal year, we didnt pass any bills. Who knew. We are about to shut down the government. Neil you didnt like the bills they were talking about. They preordained. Added spending that will make it a lot worse. They just passed one of the single worst pieces of legislation i have ever watched from fiscal perspective, busting through the spending caps, getting rid of them forever. We have no constraints on discretionary spending, one of the justifications many people said, gave irresponsible vote, well we needed to help push through the appropriations process to get bills done in timely manner by end of the year, yet none of them have moved. The ones moved out of the house are too high in terms of level of spending. Neil all said and done, spending 300 billion more than would have been the case before . Over two years. Neil upwards of two trillion over 10 in terms of how much increased assumption of discretionary spending. Starting point every year Going Forward has no more constraint and if congress doesnt have spending restraint, they start throw everything on the credit card. That is what were seeing. Neil you know this better than i do, they love the last minute thing it, forces them not to do something. They can write off if we had more time which would have done this but dont really want to do that. Governing by crisis or compromise at the last minute, compromise is generous word. We are supposed to meet deadlines. Parties have different opinions. You have to scramble, compromise, make up difference between the two come up with something nobody loves, but now, so much of our bad fiscal situation is as a result of our bad political situation, but politicians dont want to give an inch. Only way they say they pass a bill they didnt love, my back was against the wall. We were to have a shutdown, default, use all the terrible to do their job. Neil if im going to be embarrassed you better be embarrassed. If im not going to get something, you will not get something. In the end they get something. Republicans push defense, that is fine. Democrats push nondefense, that is fine. They justify it. Well get it done. They could have done it without bringing it to the brink. In the end comes to spending bills, what we saw this year and two years ago, both sides spent more than they asked for in terms of defense and domestic chris correction nary. Because theyre borrowing on all of it. Neil ive seen these polls, say the debt, not even a top 10 concern. So they feel emboldened to say, we know maya is worried about it. God bless her. She has within worried about it since she was little girl but no one else. Politicians are not have their phone ringing off the hook you need to address record levels. Neil republicans or democrat, ross perot thing, guys this is not sustainable. This is problem sapping everything you want and your kids and grandkids. Ross perot is exact right model. Somebody who will not win the presidency, run on an issue both sides know is true. Behind closed doors they acknowledge record levels of debts trillion dollar deficits, interest paints growing are a problem. Neil people are very smart. They do know that. Neil when you explain it to them. They say that is not good. They dont like the solution us because theyre hard but willing to do it with leadership with ross perotlike. We need somebody to go out on the field, guilt the other politicians being more honest. Neil good luck with that you bonds and the rest. Looking what do you think of that. I think it had been smart financially would have done it already. There are tradeoffs. Rates are much lower. You see a lot of times countries gotten into this for long term it is damaging to their economy. May be fine to have some longer neil to be clear you cant renegotiate debt. In other words if bondholders are expecting to get paid xamount youre renegotiating on that you cant no, im saying long term. You might use it for a little while now. Neil take advantage of it. What i would like to see the opportunity with lower rates to use that to bring down some of our debt. We dont have Interest Payments growing as fast as they would have. Neil because of lower rates. Not because of were borrowing more, rates are being generous to us. Take the moment while the economy is strong to get the debt under control. We know there will be recession at some point. Then you want to have more wiggle room than we do. We dont have any wiggle room. You have to calm down, lady. Worried too much. Take a chill pill. Maybe they borrow some more. Neil maya mcginn has knows what she speaks. She has been on this before it was cool. When it was briefly cool she was there well have more after this but in a world full of talking, shouldnt somebody be listening . So. Lets talk. We are edward jones. With one Financial Advisor per office, were built for hearing whats important to you. One to one. Edward jones. Its time for investing to feel individual. Im working to treat every car like i treat mine. Adp helps airtech automotive streamline payroll and hr, so welby torres can achieve what hes working for. At comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welcome to the neighborhood, guys. There is reward. Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. Neil all right. We are into the first day of a uaw strike against General Motors. Some 49,000 uaw workers are involved in this strike. The detroit news Editorial Page Editor says that the strike has a lot more to do with bribery probe as anything else. Maybe he can clarify that. Clarify that, nolan. Yes, neil, good to be with you. You have compromised Union Officials bargaining for this contract, talking with General Motors, they have very little credibility with their members because remember they got kickbacks and bribes and some of the money was designed to influence contract talks going back as far as 2015. So they have little credibility with their members. And, if they signed a contract i think, they had signed a contract without a strike, the members couldnt have trusted whether that they were acting in their best interests. So i think they walked away from an amazing offer from gm. They basically got everything they wanted going in, yet, i think, this strike was inevitable because of this corruption probe which just keeps unfolding. Neil we do have nine convictions related to that probe but i could turn it around another way, nolan. If bribery charges were there, an some of these who were convicted of taking bribes, someone offered them bribes, right . Yeah. Neil someone on the company side did that, right . Yes. If Sergio Marchionne hadnt died he would be subject to criminal charges. He was under investigation when he died. So weve had at least one chrysler official convicted already. There is somebody on the other side of that but in terms of taking a contract to your members, members who now dont trust your integrity, would they ratify that contract if they, without a strike . I mean if they thought it was won too easily. Look what gm is offering. Gm did the extraordinary thing yesterday detailing the offer. Neil i saw that what did you make of just that . They wanted to relay how friendly terms were. They increased profit sharing. They are participating in this, getting benefits, closer to guarantying jobs for parttime workers who will be fulltime workers but they let that out there . They wanted the public to know. Particularly they wanted uaw members to toe what they were sacrificing their paychecks for. This is a very good offer. So they bypassed the union leaders. 7 billion in investment over the course of the contract. They will save the detroit town plant. Build a new battery plant. First ever Union Representative battery plant in lordstown, ohio, where the plant is being closed. 5400 new jobs. 8,000dollar signing bonus. Youre taking people out on the street, people making 1200 a week base, now will be getting strike pay of 250 a week. I guess they wanted the membership to know what they were sacrificing that grand a week for. Neil how long do you think this drags on . If im ford, am i worried what i see going on if the arrow turns to me . I dont think ford would be worried. We dont know how long it will drag on. Depends whether gm is willing to sweeten the offer enough for uaw president doug jones to save face, get support back from the membership or let him dangle. He is named, doug jones is named, believed to be the unidentified uaw official named in this federal investigation into the misuse of funds. He and former president Dennis Williams for whom the uaw built a Vacation Home at the resort in black lake, michigan, are both unnamed, briefed to be unnamed conspirators here. It depend how much leverage gm thinks it has from this corruption poll. Neil always about that. How much of an edge do i have . Nolan findley, thank you very much. Yeah. Neil for joining us on the phone. Oil even with this by comparison, small change, compared to disruption in the middle east in the past. It still does represent here and abroad the biggest price gain weve seen in a day in 10 years. Well have more after this. Tv announcer its just as powerful as the lexus rx. As many safety features as the rx, the new. The lexus rx has met its match. If theyre talking about you. You must be doing something right. Experience the style, craftsmanship, and technology that have made the rx the leading luxury suv of all time. Lease the 2019 rx 350 for 399 a month for 36 months. 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This type of plan lets you say yes to any doctor or hospital that accepts medicare patients. There are no networks or referrals to worry about. Do you accept medicare patients . I sure do see . Youre able to stick with him. Like to travel . This kind of plan goes with you anywhere you travel in the country. So go ahead, spend winter somewhere warm. If youre turning 65 soon or over 65 and planning to retire, find out more about the plans that live up to their name. Thumbs up to that remember, the time to prepare is before you go on medicare dont wait. Get started today. Call unitedhealthcare and ask for your free decision guide. Learn more about aarp Medicare Supplement plan options and rates to fit your needs oh, and happy birthday. Or retirement. In advance. Neil all right. Oil predictably surging after this attack on saudi Oil Facilities. What is remarkable is its not surging nearly to the degree if Something Like this had happened back then had, back in the 1970s. We were riproaring with long gas lines and prices that were doubling, tripling, quadrupling. Meanwhile, along with the strike, we have, well, a strike. Gm talks are still ongoing. We will get an update on what uaw workers really want. We talked to a guy who follows this very very closely and says that a particular scandal within the uaw is complicating matters. Then the attack on vaping heats up and is leading to new bans in new york state pretty soon. You wont be able to get these products anywhere. Neil i wanted to leave you with that pregnant pause to think of the magnitude of what was happening. Oil is on track for its biggest gain, daily gain, since february of 2009. Jackie deangelis on why this crisis might not be the 70s all over again because by comparison, it is nowhere close to the 70s all over again. What do you have for us . Jackie good afternoon. Well, im not discounting the impact of a 14 move in the oil market. Its certainly significant. But i will say that most people are saying its different this time because the United States is producing so much oil and there is such a big chunk of supply thats out there. So according to the latest eia report, the u. S. Is pumping 12. 4 Million Barrels a day. That is the highest on record. It is the Largest Global oil producer. The sachludis, 9. 8 million. The russians, around 11 million. Opec is down to less than 30 Million Barrels a day. Pretty important when you think about it in the scheme of things. On top of that, i think the surging prices are capped a little by the fact the president said he will tap into the spr, Strategic Petroleum reserve, to curb price increases. Remember, there is 700 Million Barrels there and its all down in the gulf and its ready to be refined and shipped up through the pipelines once its sold, if he chooses to go through that option. Now, i will talk about the impact this has on consumers, because a move from 55 to 61 right now or 62 and change, could probably add anywhere from 10 to 25 cents to gas prices. Thats what analysts say. But gas prices are pretty low right now. The average according to aaa right now, 2. 56. It was 2. 84 at this time last year and its well under that 3 mark. So all of this is going to depend on are there more attacks, how fast do the saudis get their supply up and running and back to the market, and to put it in context, the way you started this, in the past we have seen huge price disruptions when it comes to oil, so in 1973, the oil crisis then, the arab oil embargo, oil moved 400 . It wasnt in a day. In 1975, iran, the revolution, oil was up 100 over that period. 1990, iraq invaded kuwait and oil was up 110 . So on a relative basis, you can look at todays move and realize that its relatively small and the game is different with the u. S. Being such a big influencer in this space. Neil thank you very, very much. To put it in perspective, the International Energy agency did say for now, the markets are well supplied with ample commercial stocks. We should also let you know that a kremlin spokesman has said the president s of russia, iran, turk turkey, they were all getting together, talking on the phone about all of this, never discussed the saudi attacks. Never. Never even came up. Okay. Just want to pass that along. Meantime, the fallout here both domestically in the United States, globally of course, the asian markets were hit the hardest on percentage basis. They are vulnerable to certainly saudi oil, get a lot of saudi oil, iranian oil to boot, by the way. That might potentially be in short supply for the time being. We have our panel with us. Joseph, reading seems to be, as jolting as they say, it could be a hell of a lot worse. I think to me personally, im more concerned about how the attack was executed than the effect. Neil that is a little scary. To me, thats the story we should be focusing on. From an effect standpoint, america is much better positioned today than we were in the 70s. You look back at 2011, you look at dealing with that libyan crisis, you were able to have 28 nations coordinate 60 Million Barrels of oil so i think again, america is much more better positioned today than we were in those 70s and for my purposes, for americas purposes, geopolitically, we should really be talking about the attacks, not necessarily the impact. Neil not a single soldier involved. Just a couple of drones. David, we think all signs point to iran. So the president has promised some sort of response, locked and loaded, whatever that means. What do you think . Its amazing how bold people get when john bolton is no longer in the administration, i guess. Theres my little plug for neil he wasnt the one who said dont trust these guys, dont deal with these guys, dont make negotiations. He said a lot of things that reflect a lot of wisdom but he will be missed for some of us. Look, i really agree, 14 is a big number today. This brings oil to where it was july 10th and before that, may 24th. We have seen it twice this year when there wasnt a saudi attack. 60 oil is not going to disrupt any global markets. So i think geopolitically, you have to wonder not only how it happened, what the response is going to be, does it end up forcing the president s hand. You saw this morning Tulsi Gabbard kind of poking at the president a little bit, saying are you going to do anything about saudi arabia and so forth. Ultimately, from an economic standpoint and certainly u. S. Economy, this is the whole reason why a lost t of us have spent a generation saying the u. S. Needs to be the leader in Oil Production so we are not captive to forces and nefarious actors. Neil a lot of countries are. The fact that brent, the oil choice for europe, that has been more over there than here, so they are another bird, right . Yeah. Clearly, its a concern. We are the Largest Oil Producer in the world. The Permian Basin in texas became the new revolution and the start of this uptick of Oil Production in this country. I agree, this is a geopolitic geopolitical we have to be careful. We have a noninterventionist president and what is the Tipping Point with iran, who is very clearly a bad actor in this and other spheres. What do we do that is appropriate and measured if we find it is iran but how do we ensure neil if i can be so crass about it, they feel that getting in your face is the answer, whether its north korea, kim jongun keeps launching missiles, whether they technically abide by whatever they agreed to or not which i n iran i think we have to really confront the fact this is a changing world and we have new bad actors on the rise, bad moons rising all around the world. I think the one thing, to make it political neil they have always been a bad actor. True, but things are becoming more imminent now. I think if you look at whats not being talked about during this president ial cycle, you have people obviously talking about nonintervention, not starting new wars, even mayor pete and individuals on the democratic side talking about getting out of afghanistan. We have to be talking about are we prepared to meet our commitments around the world. Its that famous phrase from jfk, our arms must be commequal our commitments around the world. America are being caught asleep at the wheel. Neil jfk also said those who tempt a tiger often end up inside the tiger. Im wondering whos the tiger. Its interesting we would refer to President Trump as noninterventionist because i think its been amazing to watch his popularity with remember in the campaign, the bomb the youknowwhat out of isis rhetoric and the real isolati isolationist crowd . I think hes played both sides of this remarkably well from a political standpoint. Neil doesnt that confuse markets . It confuses markets and certainly confuses me and allies and all of that, yes. Neil you are a hater. You like both, then you were dissing the president. Its not being a hater. Honestly, it is confusing that we dont know exactly what the ideology is here. Neil i think theres a strategy to that. Keep them guessing. Think about the way the president dealt with kim jongun, it was never really clear we were talking about syria on the one hand, then it was very neil maybe the leader of iran needs to write a lovydovy letter. In a very big envelope. Clearly, its a problem for decades and decades, the iran deal thought to constrain one strand of irans problematic behavior but this is a massive country with a massive military presence. This isnt going to be overnight. I think it requires more than america. Neil what if it hastens a trade deal . If china is slowing down to the degree it is, the number we got out of china shows its down to 17 and a half year lows, maybe it forces them to the table. So thats a Silver Lining in this. I think im more concerned about looking whats happening in israel right now. We have this election coming up right now and i think if you look at the footing israel is on, the footing iran is on, i think to me, that is where we need to blast our eyes to, so to speak, to say we understand that, you know, we are bound to our allies, israel is our strongest ally in the middle east and as israel goes in many ways, thats going to force our hand in how we actually deal with these situations. Are we bound to netanyahu or bound to israel. Its very clearly a strong relationship between President Trump and president netanyahu, and i think similarly, netanyahu has found his future almost israels future in the president , theres very similar rhetoric. Its going to be a very interesting we definitely have a special relationship now. If we no longer have that affecti affection, then i think it is replaced by an Even Stronger affection now with our ally in israel. Neil before we go to break, some tend to say be prepared for the black Swan Development or the thing you werent counting on. Invariably, those comments, not all the time, to be fair, but could something there, something generated now with this, be that . I think the whole point of a black swan event is that you dont know what its going to be. So all the forecasting is made for this Cottage Industry of doom and gloomers and so forth. Ultimately, whenever someone is predicting what the next black swan will be, its what i always know it will not be. In this case, its an easy pick to say middle eastern geopolitical fragility is a likely candidate to do something. Neil you are not of that mind . No, im not of the mind that its predictable. Im at the mind that its potential. I think theres issues with russia, issues with china. I think the European Union economically is the most likely candidate to create a black swan Global Economic event. But the european Banking System is completely insolvent and we dont ever talk about it. Its stuff we dont talk about that scares me more than stuff we do talk about. Neil kind of bumming me out. I know. Neil we will take a quick break here. In the meantime, with the dow off about 137 points, off our worst levels of the day, as this gm strike goes on here one full day, it could linger for quite awhile. What are the issues that are dividing them . After this. Have you lost weight . Of course i have ever since i started renting from national. Because national lets me lose the wait at the counter. And choose any car in the aisle. And i dont wait when i return, thanks to drop go. At national, i can lose the wait. And keep it off. Looking good, patrick. I know. vo go national. Go like a pro. Neil all right. Gm stock down a little more than 4 . The largest automaker right now facing its first strike in 12 years. The uaw wants a whole lot of stuff. Kristina partsinevelos has been following it very closely in arlington, texas, with what some of that stuff might be. Reporter so what were seeing right now, this is the plant that makes large suvs. They are estimating right now that they could be potentially losing 1 million a day which is contributing to that stock loss. You have people picketing, they have been picketing over 4,000 employees just at this plant alone, spread all around this massive building. What are they demanding . What is the union demanding . Fair wages, profit sharing, given that gm made 8 billion just last year alone. They dont want to see their health care go up because right now, they are paying about 4 of their health care costs, according to gm. It potentially could go higher. Gm also announced four plants that were going to close across the United States. They obviously dont want to see that because that results in more job losses. You did have gm, they reached out and they commented saying that they have already contributed and promised to give 7 billion over the next four years in terms of investment to add another 5,fo400 jobs and increase health benefits. Several politicians weighed in, even democrat candidates, castro, who tweeted the ceo of gm made 22 million last year, thats 281 times the median gm worker. I stand with the 46,000uaw members who have moved to strike fighting for Affordable Health care and fair wages. You have also the uaw Vice President , relatively optimistic that a deal could get done. Listen in. We have a lot of work to do. And a whole lot of areas. We are going to sit there and talk about how we can move this thing forward, because ultimately, we are going to get an agreement with General Motors. We are going to reach a tentative agreement. Reporter i have spoken to some employees that put door latches on, have been here for 20 users. Some told me about temporary workers that have been in the temporary position for six years and cant get a permanent job. These are just some of the complaints im hearing from these strikers behind me. They are not allowed to talk on camera, according to their president. Again, its being estimated that gm could be losing up to 1 billion per hour at all these closures across the country, potentially up to 49,000 people striking. If this continues, if the strikers stay out for at least a week, they will only be getting 250 u. S. Per week paid out by the union. There is still optimism it could be rectified and they can get through with the negotiations. Were waiting. Back to you. Neil thank you very, very much. I believe the figure was one million per hour. To her point, it is something that could drain the company the longer this drags on. Lets get our panels reaction to all of this. Danielle, david, joseph. Danielle, if this does drag on, you have seen a lot of Democratic Candidates already pounce that the workers should share in the riches and they havent been, that they are going to make sure this is a Campaign Issue. Is it . Absolutely. You think about somebody like Bernie Sanders or elizabeth warren, certainly the Democratic Party has been really the prounion party for as long as unions have been around. We go back to the Supreme Court cases of the last century where really, you know, the right to work and the right to contract was really questioned. One interesting bit to look at in this paradigm is right to work states versus nonright to work states. If you are not in a right to work state you should get more money. Right to work weakens unions and many studies have shown 3 lower wages if you have unions. This matters. This is the working class, the engine of our economy. This is about health care and benefits and the Auto Industry is at an Inflection Point so the concern is are they going to commit to longterm spending on the workers, raising pay and raising benefits. As electric cars and selfdriving cars come to the fore which involve a lot of investment by these companies, this is where the rubber hits the road. Workers want to be protected. They are worried about a slide in sales and a change in the nature of neil you want to go after your boss for more money when your boss is doing well. This boss is not doing as well so the question is there might be a limit to what mary barra, the board, can offer. Yes. You would think we would have learned this lesson. I mean, the company went through bankruptcy because of the commitments they made that they couldnt keep to pensioners and Union Demands over a generation. Thats exactly what happened economically. Its indisputable. Right now, for Julian Castro to jump in with that kind of class warfare is so unreasonable. Neil to be fair, a lot of those candidates are doing it. Thats right. Thats right. I think that it will be a Campaign Issue but im not convinced its a winning one for the democrats this time around. Neil the president kind of sounds like he backs this. Theres two issues. Number one, you have to make sure we are taking care of american workers. That should go without saying. Number two, to your point, we have Julian Castro talking about 22 million salary for a ceo. Lets be very clear. Thats not even a freedom dividend level of payout if you want to take all that money and give it to those 40,000, close to 50,000 workers. You are talking about less than 500 per worker, even if she decided to work for free. I think we have to talk in stark terms. You are looking at a company dealing with market uncertainty. You have democrats who are saying we want to have basically zero emissions. They want to basically revolutionize the Auto Industry but General Motors in particular, if we are being honest, struggles with the exact type of vehicles that democrats are trying to neil its the onus of that rescue and the fact it got one, that company. Thats the issue. They are trying to get them to understand we are dealing with market realities and human realities and we should be able to address both. Neil final word on the subject. When we come back, the governor of new york banning flavored ecigarettes. And all of a sudden, the representative of that industry is saying time out here. Hes next. You wouldnt accept an incomplete job from anyone else. Why accept it from your allergy pills . Flonase sensimist. Nothing stronger. Nothing gentler. Nothing lasts longer. Flonase sensimist. 24 hour nondrowsy allergy relief great riches will find you when Liberty Mutual customizes your car insurance, so you only pay for what you need. Wow. Thanks, zoltar. How can i ever repay you . Maybe you could free zoltar . Thanks, lady. Taxi only pay for what you need. Liberty. Liberty. Liberty. Liberty. Names like bubblegum, cotton candy. These are obviously targeted to young people. We would ban all flavors besides tobacco and menthol. Neil all right. New york moving more than any other state has as the first to ban ecigarettes outright. The American Vaping Association president greg conway here, says this is the wrong move. The governor, as you probably are aware, says its a threat to kids, weve got to keep them out of their hands. You say . We say that you can take and keep these products out of the hands of youth without impacting the two million plus adults in new york state who still smoke cigarettes. We know that nicotine vaping products are far less hazardous than smoking. Even the fda notes that they can be very helpful and a great benefit to Public Health of adult smokers who switch. Going straight to prohibition is a bad idea thats not going to actually work. Neil you said safer than cigarettes. The governor went so far as to say no one can sit here and say longterm use of vaping where you are inhaling steam and chemicals deep in your lungs is healthy, in other words, that it might be better but its not healthy. Well, lets talk about how much better. The Royal College of physicians and Public Health england released extensive scientific reports saying for a smoker who switches, vaping is at least 95 less dangerous than smoking. You are talking at least 20 times safer, less dangerous than smoking cigarettes. When we know that the most popular flavor among adult switchers is not tobacco, its not menthol, its fruit and sweet flavors, so Governor Cuomo can pick out whatever ludicrously named flavor that represents. 01 of the market but the fact is that the fruits and sweet flavors that he is banning, they are actually the most successful products at getting smokers off of cigarettes. Neil but you would admit that your industry has effectively targeted younger people, kids, right . Actually, no. The industry does not target youth. The industry neil you make strawberry, lemonade, bubblegum, mango, cotton candy, fruity, mint, on and on. I understand there are adults who like that, who it might help get off cigarettes but you dont think kids would find that appealing . You didnt think the approach you took to cartridges to mimic the look of a disc that you could put in a computer, to use it in school, which many are . To say adults find it helpful vastly underestimates the amount of smokers who have switched. Millions have bettered their health by switching to vaping products neil do you think more adults than kids enjoy these flavors . There are about 14 million adults in the u. S. And probably 12 million, 11 million of them use flavors. Neil if the government came i understand what you are saying but if the government came by and said all right, we wont ban these but we will ban kids using these and the marketing of kids for these, would you be open to that . Of course. We are very much open to tobacco 21 which will soon be in effect in new york. Marketing restrictions, flavor name restrictions. But the bottom line is that we need to keep these products available to smokers so they can use them to quit and just moving towards prohibition as President Trump hhs secretary has tried to force on to him at the national level, its bad policy. For President Trump, it could actually mean not being reelected in 2020 because people are going to be disaffected if these flavors get removed from the market neil are you saying these 14 million folks who might have been open to voting for donald trump wouldnt because he removed their vaping product . Americans for tax reform had an oped last week in the washington examiner. They did polling data after the 2016 election and found they overwhelmingly went for trump in part because the Obama Administration treated this technology so badly. When President Trump only won some states by 10,000, 15,000 votes, if flavors are band at the national level, that will result in people being disaffected and staying home. Neil is that a threat . Its not a threat. Its just reality. Neil that sounds like a real threat to me. I do not want to threaten the president because the president has been great for this industry. Under president clinton, the industry would have been exterminated in 2018, one year ago. We had an extra year because of President Trumps leadership in picking Scott Gottleib to run fda. Neil i understand your industry has responded a lot of these were corrupted products, thc, oils, i get that, and so many others were severely tainted and compromised. I get that. Would you then recognize the need if the fda came along and said not only can you not give this to kids but you have to redesign your product so it cant be corrupted like it was in some cases, that resulted in deaths and far more injuries . Any drm technology to block out other cartridges, china can beat it within a week. You saw that with kcups. They tried to mack ke it so you could only use products distributed by the kcup maker. Neil we know people in the black market are still going to use this compromised material that threatens kids. How would you would you do anything to deal with that . The dea should be involved, taking out these drug dealers. Thats the bottom line. The drug dealers who are filling up contaminated cartridges, putting things like vitamin e acetate into the oil. If you want to combat that, states and the federal government need to look at rescheduling, medical marijuana. Neil you knew early on, right, you knew very early on, i see it with my teenaged sons, not that they are using it, let me get that out there, but you saw very early on that this was very popular with kids, right . With teenagers, right . You couldnt miss it. And very popular with adults as well. Neil im not saying do you think that the fact authorities are now trying to rein this in for teenagers to deal with a problem they said you werent, you have to admit they were forced to make that action because you didnt, right . What you have today actually is former mayor Michael Bloomberg contributing 160 million to an antivaping campaign that was announced last week. Its no big surprise that following bloomberg pumping 160 million into an antiflavor effort that various liberal progressive governors are coming out trying to destroy these products. Neil but you wouldnt want them for your kids, right . I dont have children but no, if i had children, i would caution them and stop them from using vaping but neil in other words, thats the parents responsibility, not the governments . You know as things stand now its very easy for kids to get their hot little hands on. Parents absolutely have a responsibility but the government does as well. The fda, for example, has done nothing about ebay sales of vaping products. Neil kids shouldnt buy them so whatever the government should do to make sure they cant, you would be for that . As long as the policy does not substantially impact the ability of adults to access these products and get off cigarettes. Neil it wont be easier for adults, right, if suddenly taking measures to ban it for some, it will be more difficult for them, too, right . Yes. Theres going to be tons of these adults are either going to go back to cigarettes which is the last thing we want, or they are going to move to black market products where theres no regulation and the drug dealers will sell to youth all they want. Neil greg, thank you very much for fashion the titaking the ti. We do appreciate it. More after this. This is the age of expression. But shouldnt somebody be listening . So. Lets talk. Were built for hearing whats important to you, one to one. Edward jones. Its time for investing to feel individual. Experience the style, craftsmanship, and technology that have made the rx the leading luxury suv of all time. Lease the 2019 rx 350 for 399 a month for 36 months. Experience amazing at your lexus dealer. Neil all right. New york moving to ban ecigarettes, the flavored variety. To liberty file host, fox nation, so much more, bestselling author, judge andrew napolitano. You touched on this last week, and many said we agree with everything youre saying about the danger to kids, et cetera, but be careful what you wish for. What did you mean by that . I meant that people, very similar to what your prior guest was saying, that the people no longer have vaping available to them will go back to cigarettes, which is probably far worse for them, as bad as vaping is, cigarettes is worse, and that is really the opposite of what Governor Cuomo wants. But let me say this about Governor Cuomo. Under the constitution, health, safety, welfare and morality is reserved for the states. So he really has his eye on the ball. This is not a federal issue. It may be a National Issue but its not a federal issue. But i think this bang is going banning is going to backfire on him. Neil this issue, this goes against the republican grain, you know, let business do its thing but in this case, the argument is, and the president has espoused, its kids. I think number one, we have to do everything in our power to protect our children. Having said that, im kind of appalled by the thinking behind the Decision Making. When we have a bad batch of mad cow, we dont say no one should should ban hamburgers. We say there should be a recall. We should figure out what is the source of the problem, we should identify if that source has been contaminated and will be a problem Going Forward. This notion you will wholesale ban ecigarettes, we will still have a black market. Yes, i think as you see for the cigarette industry, i dont think the fact that we dont have candy crush cigarettes is hurting them. They are still doing quite well. Neil clearly, judge, in that case, werent they clearly marketing that to kids . I think they were. The names are intended to appeal to children. Quite frankly, they are lawful products for adults. They are not lawful products for children. So should the government be protecting children from themselves or should their parents be protecting them . How much dissipation of parent responsibility and assumption of parentlike responsibility is the government going to accept . Judge, to your earlier point about this being a constitutional power of the governor, this is the police power, of course, which protects the health and safety of individuals within a particular state, i actually think that because there is so little testing, so little regulation of this, it reminds people of a line from the muslim ban, stop it until we find out what the hell is going on here. Theres no reason, its an executive order that can be undone, if theres a way to s m demonstrate they are safe. When you go down this path, its i was laughing, we said about banning all meat products. I guarantee you there are some on the left that would do that, too. Neil not on my watch. I think nanny paternalism is something the judge spent his career fighting against. It is an infectious issue that you give an inch, they take ten miles. Heres the counterpoint. What about abortion . That is the police power of a state protecting the unborn, but i suspect the conservative view, the view the state must protect the choices of grownups. I dont think parents can control every waking minute of their childrens lives. There are 3. 6 million middle and high schoolvape rs in this country. This is done under the rubric of protecting children. Theres not a single child in america who can consent to sex. Therefore, not a single child in america can get an abortion without any type of parental supervision. Im talking about the unborn, not children. But even if you are talking about from an unborn standpoint, the Decision Making process, when you talk about protecting the children, children who are vaping on some basic level, their parents are supposed to be confiscating those products. Neil we ran out of time. Thank you for moving so quickly on this, judge. You were way ahead of this. More after this. Im really into this car, but how do i know if im getting a good deal . I tell truecar my zip and which car i want and truecar shows the range of prices people in my area actually paid for the same car so i know if im getting a great price. This is how car buying was always meant to be. This is truecar. Our because of smoking. Ital. But we still had to have a cigarette. Had to. But then, we were like. What are we doing . The nicodermcq patch helps prevent your urge to smoke all day. Nicodermcq. You know why, we know how. Neil all right. This could be the day we break what had been the longest winning streak in 16 months. Im talking about for the dow and the s p, for that matter, but more the dow right now that gets the disproportionate amount of attention. Deirdre bolton with the latest. Reporter you said it, the dow is on track to close lower. It would be the worst losing streak in quite awhile. At its lows of the session it was down actually about 160 points. We are off of those lows but investors clearly concerned about the effect Higher Energy prices may have on the Global Economy. Dow right now on pace for its lowest or its first day lower in nine. Biggest weights, goldman sachs, 3m, home depot, all weighing on the dow collectively, taking off about 60 points. If you look at the s p 500, 11 key groups as we know, 10 of those are lower. The ones falling the most, real estate, materials, Consumer Discretionary stocks. If you look for transport stocks, not a huge surprise with oil up, biggest gain in ten years, Airline Stocks would be one group affected. As a barclays analyst pointed out this morning, saudi arabia one of the largest net exporters of crude oil, also petroleum products. It also has one of the Worlds Largest spare production capacities. You will see united, jetblue, american all lower. American airlines has spent more than 3. 5 billion on fuel and taxes just in the first half of this year, so not a surprise that you see that stock lower by more than 5 . Cruise ship companies, lets face it, they also have big oil and fuel bills, too. They are lower. Royal caribbean, carnival cruise, norwegian, all down. As investors leave some of those stocks, they are going to proceed to safe haven assets including gold and silver. If you look at the chart, silver is really rallying. Neil thank you very much. Before i go to my next guest, i would be remiss if i didnt get your take on this market. Not really slavish to trade issues today. Theyre not dominating it. You had dates ineight days i the market was up. The market could have been down 200 points for ten other reasons today. I think the market has shown resilience in its response to Saudi Arabian incident. Neil a new home in Beverly Hills is hitting the market for 12 million, coming fully equipped with a Yoga Instructor. Robert gray is there with a look inside. Reporter thats right, we are in the wellness house in Beverly Hills. Its a new segment in the luxury housing market. If you take a look at it, just a couple years ago, you think about what the amenities were, its all about the smart home, controlling everything digitally including the lights, music, security, walkin wine fridges and wine cellars, of course. Now what makes it a wellness house. Take a look at some video we have of the home here. You talked about the mirrors. A streaming fitness class makes you the benefit, a Yoga Instructor who makes house calls and a juiceologist who will mix up your personalized juices and bring them over a couple times a week. Very popular items here in los angeles and some other markets. We are pleased to be joined by a luxury housing expert. Thank you for hosting us here. Shes the one who put this all together. Tell us, who is buying this type of home . I know you cant tell us who the buyer for this one is, its in escrow for around 12 million bucks. Millenials, mostly, what i see come into the property. Dotcomers, hedge fund, young kind of smart money is looking at the properties. Reporter how big can this get . L. A. Is a very fit necessaness market and l. A. And San Francisco, but is this a fad that could go across the u. S. . I see it going everywhere. Everything starts here and in new york and San Francisco and with the virtual trainer thats in your gym on the wall, it can go anywhere. I see it continuing. Reporter talking about the 134 billion industry right now, i think it can go up to 180 billion in the next three years, we are looking at these, we will talk more after the bell and tell you what could be coming down next. Thanks for joining us. I will send it back to you. I think we have a yoga appointment out by the pool. Neil so its sold . Someone bought it, right . There we go. Reporter they have already bought it. 12 million bucks. Neil im trying to prepare my juiceologist to make the move. Not today. Me home, that day. Ive been plotting to destroy you. Sizing you up. Calculating your every move. You think this is love . This is a billion years of tiger dna just ready to pounce. And if you have the wrong Home Insurance coverage, you could be coughing up the cash for this. So get allstate and be better protected from mayhem, like meow. Here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. 127,000 criminals off the streets of this country last year. Not just illegal aliens. Those who committed crimes against u. S. Citizens. They want this company to stop working with us . Study the issue. If you want to change, if you want to effect change, go to the hills of congress and tell them to make change. Neil i. C. E. Director tom homan now calling addressing proteste calling on microsoft to cut ties with i. C. E. Back with our panel to digest this. What do you think . Im not a big fan of the irs, as you might imagine, but i would never advocate any Technology Company stop providing Software Services to the irs. I think this is the wrong target. I believe they are handling it in the wrong way. Ultimately, this is a tactic the left has now become unfortunately too cozy with. As i said before, i do consider it a form of cultural marxism. This is not the way we try to effect change in our country. Its an issue with the way we effect change is by speaking out. Think about vietnam protests, about other ways people have come together and made their voices heard. Neil advocate boycotting . I think this is a little bit much. There was an internal letter, i think 300 microsoft employees supported this. Thats not a lot of people in the grand scheme of microsofts employees. I think this is a small fringe group trying to have their say. Actually, the microsoft products they are are calendaring neil this has nothing to do with not to advocate for separating children from their parents but i think this is misplaced. Neil what do you think . We leapt from a bds protest led by the left to now a protest of an American Government agency. To me, that is nonsenseical. Even if you want i. C. E. To be more sensitive to cultural needs, to the fact that families are being torn apart, whatever your talking point of the day is, this type of approach only alienates your movement. It actually hampers your ability to get support from people who might be willing to agree with you because they are sitting here looking at you saying you must have absolutely no idea what you are talking about. And are probably using microsoft products. Writing letters on microsoft word. Neil the new york offices, one of the many offices of microsoft, has these retail offices in manhattan, i think it was Michael Bloomberg who had a column in todays New York Post and might have been other papers as well, warning about this trend. The former new york mayor said you know, you are free to spend your money as you want, or not spend it where you want, but that doesnt mean this lever is a good idea. No, and if everything is an outrage, nothing is an outrage. I think it really does empower neil tell that to my italian relatives. I have relatives i havent talked to in 40 years, they have no idea why. Some brands take a stand on social justice. We saw it with nike and Colin Kaepernick but not all brands want to do this. We will see how it plays out but i think this is a small fringe. We have gone from cultural segmentation to business segmentation. Ultimately all this will end up doing is shuffling the deck. You will have different people using microsoft all of a sudden. Neil i have seen this with whether its talent on this network or talent on other networks, they say boycott, theres a boycott. You have the power to turn it off. I just think everyone is hyperventilating. Calm down. I also think his point is a really good one. Theres a lot of evidence that sometimes boycotts have the opposite effect. It generates a lot of free publicity for the company. Neil im happy for others who work there who are just caught up in the fray. The wall street journal is now reporting that amazon already the target of a lot of people who want to rein it in for getting too big for its britches, adjusting their Search Engine to boost buying their own brand. What do you think . You might be able to make the argument theres a vertical antitrust issue here. Neil i would never say that because i dont know what you mean. Well neil slanted in their favor. On the other hand, i dont think its any different than if you are a store and have store Brand Products you place them more prominently. Because there is no difference whatsoever. Exactly right. Thats exactly what it is. Theres a million things to criticize amazon for and we dont own it in my business. We think its a very expensive stock. However, if they were doing that, it would be a travesty to their shareholders. Of course you use that position to better your economic outcome. Neil wasnt that the rap with microsoft, its Search Engine was slanted toward microsoft . In theory, by bundling it with their products and of course neil they had no choice. That whole antitrust thing was ridiculous as well but in theory they were saying you werent given the choice. Neil Competitive Forces chaingd that. People can go online and shop in a lot of places other than amazon. It isnt close to being that kind of monopoly. We have an entire generation of workers trying to squeeze blood out of a stone. We need to accept the fact the world has changed. Amazon, of course, their business is to have everything you buy on amazon be made by amazon. Ubers dream is to make sure theres no one in the front seat. If they own and possess all those vehicles themselves, even spotify, apple, all these networks who are loading up on billions of dollars of original conte content, licensing deals with original mucsic companies, the world is changing. We need to prepare our children differently. The people caught up in this transitional period need to make sure they protect themselves. Neil final word on that. Great job. Really great job. Okay. Great job. A lot more coming up with the dow down 130 points. Oil is up but not outlandish. After this. What do you look for when you trade . I want free access to research. Yep, td ameritrades got that. Free access to every platform. Yeah, that too. I dont want any trade minimums. Yeah, i totally agree, they dont have any of those. I want to know what im paying upfront. No platform fees. No trade minimums. And yes, its all at one low price. Td ameritrade. Imagine a world where nothing gets in the way of doing great work. Where an American Icon uses the latest hr tools to stay true to the family recipe. Where a music studio spends less time on hr and payroll, and more time crafting that perfect sound. Where the nations Biggest Party store can staff up quickly as soon as its time for fun. This is the world of adp. 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Charles good afternoon, im charles payne, this is making money. At the moment were facing the biggest Oil Supply Disruption in history after the Saudi Oil Fields were hit by a drone strike. How the president could respond and another different kind of strike as the United Auto Workers walked out on the job. Pay raises, 8,000dollar signing bonuses are just not enough. It isnt cutting it for them. Painting of three republican villains going into the election. Taking aim at the president , brett kavanaugh, mitch mcconnell. Will that be enough to sway