Transcripts For FBC Cavuto Coast To Coast 20240713

[ inaudible ]. The tax will be substantial. We will put them on payments. What is your number . The number we talked about is 70 increase. Where are you now in terms of your number . We are at 1. 4 . Youre getting there. Neil whether you are a fan of the president or not, you have to just be startled at what you are seeing here on global tv live. Negotiating with the leader of canada saying why arent you coughing up more, what kind of progress are you making on that and all of a sudden Justin Trudeau say we are about 1. 3 , 1. 4 live for the whole world to see, not behind closed doors for no one to see. And talking as well with macron of france about how much are you putting and why did you say that nato is brain dead and why did you say that behind my back when you can tell me to my face. So macron did raise it to the president sitting right next to the president but thats the way its been going today. As the president , when it came to tariffs that are targeting much more countries and of course, some that kick in a little less than two weeks from now, thats just for starters. Its going to be a long day and long couple of days. To blake burman in london with the latest on the trip that doesnt seem to end. Blake . Reporter nighttime here in london and we have already had a days worth of headlines. Three mini press conferences already scattered throughout the day but perhaps no bigger headline than what we heard from the president earlier this morning in which he suggested it could be a full year before a trade deal is struck between the u. S. And china. The markets of course sold off because of that and in the third of three meetings that the president has had today, he was then asked about what has been going on at the corner of wall and broad, and the president downplayed it. Listen here. Were at a critical stage. Theyve called us today and theyve called us yesterday. Were having ongoing discussions and well see what happens but if the stock market goes up again, i dont watch the stock market. I watch jobs. Jobs are what i watch. I watch making the proper deal. Reporter however, as you know, the president s twitter feed suggests otherwise, often when the market is soaring, a president ial tweet will follow. I mentioned three meetings today. That one, one of them with the nato secretary general, another with Justin Trudeau, and a third with emanuel macron. The macron meeting awfully interesting. Just hours beforehand the u. S. Trade Representatives Office said it was going to be Going Forward with 2. 4 billion worth of tariffs in response to frances Digital Services tax, something the ustr says is discriminatory to Companies Like apple, amazon, facebook and google. Sitting right there next to macron, the president says he is willing to go dollar for dollar with france on any tax. Theyre not my favorite people because theyre not exactly for me but thats okay. I dont care. Theyre American Companies and we want to tax American Companies. Thats important. We want to tax them. Thats not for somebody else to tax them. And as the president knows, we taxed wine, we have other taxes scheduled, but we would rather not do that, but thats the way it would work. Reporter the president also said the Digital Services tax, frances Digital Service tax, is the least bit of the problem as it relates to the eu. As you know, hes trying to strike a much larger trade deal with the European Union and he contended today that the eu was formed in part to take advantage of the u. S. Neil . Neil it gets better and better. Thank you very much, blake burman in the middle of all this. One of the people couldnt have better timing coming here is wall street journal at large host. You have covered a lot of these events globally over your m pressi impressive career. What strikes me is normally stuff that is said behind closed doors is out in the open for the world to just take in. Absolutely. This is the president s style. He says what hes thinking at any particular moment. It comes out, he says it, then may Say Something different a few minutes later, may tweet something else. Neil i love the canadian Prime Minister, how much are you paying. What are we paying. Put him right on the spot there. Then the french president with his brain dead remark, stocking up on bottles of french wine getting ready to tax those more. This is the president s style. Its interesting, i dont think World Leaders have still quite adapted to it. Nor clearly have the markets in a way because they respond we dont know whether theres going to be a trade deal with china. Neil you think theres talk he could wait until after the 2020 election was a negotiating ploy or hes just had it with they are going to move, not going to move . I think the chinese assumption has been for a long time that President Trump needs a deal before the election so it will goose the markets, it will take some of this uncertainty thats around about the economy neil he was getting annoyed that the chinese thats right. Look, so far, it has to be said the economy is doing okay. We are going to get job numbers this week, unemployment is still at a 50year low. There is uncertainty about trade but its not directly affecting the economy. There might be a bit of a sense in the president s mind we have done all right so far with this uncertainty about trade, maybe it could go through the election. Neil whats interesting is tariffs are back front and center. I was adding it up, i know you do the same, but with argentina, brazil and china, of course, those kick in on the 15th, apparently thats a train that is not being stopped, and of course france responding to what they are doing on the digital tax front, are offering 100 tariffs on everything from french wine to cheeses and all that. Where is this going . Well, these are relatively small beer, if you forgive the pun. Neil i like that. I like that. Right. Small glasses. Theyre not huge. The brazilian ones and argentina amount to Something Like 5 of total aluminum and steel imports. The french wine, if it happens, is pretty small. By the way, the president in his remarks with macron said look, we would like to match the french tax, if anybody is going to tax these Digital Companies it should be us. Again, these are small symbolic things neil but they are playing with grenades. Eventually people expect you to deliver on that. China is the big game. China is the game. Everybody knows china is the whole game. Again, even with china, we have seen these tariffs have already been imposed. China retaliated with tariffs. We have seen an escalating tariff war, the threat of further tariffs not imposed as yet, and as i say, the markets just off the alltame higime hi economy is performing quite well. Neil but we could be a hell of a lot worse off. To be fair, part of the reason the markets have been relatively [ inaudible ] except for today, there is an expectation there will be a deal. Nobody really thinks theres going to be immediately an outright trade war where tariffs stay in place and get higher on a significant portion of u. S. And china exports. Neil what did you make of the president saying he doesnt focus on the markets . Obviously what he was trying to get at here is the markets have a bad response to my tough position, so be it. But he does very much pay attention. When the market is at alltime high he said the market is at alltime high, thank you, enjoy your 401 k . Of course he keeps an eye on the market. Of course hes just playing games. Again, i think there is a sense that look, the chinese really expect a deal. They think he will have to make a deal for political reasons in 2020, before 2020 or sometime before the election, and i think he just wants them to think you know, dont be so sure. We could spin this out. We dont have to have a deal before 2020. That might encourage them to make more concessions the u. S. Needs. Neil he likes to keep people guessing. Hes very good at that. Neil this might be among the last polls released before brits head to the polls in a couple days but right now, conservatives are polling at 40 , labour at 33 . For Boris Johnson, if that holds, that could be a big win. There have been a slew of polls, i think three today, i have been watching quite closely. The conservatives have an average lead of about ten points in the polls. Neil amazinamazing. That should give the conservatives a sizeable majority. That means brexit will happen probably by the end of january. That is very good news for Boris Johnson. Neil the deal hes got in place will be the deal, an expanded party that exactly. The elections are next thursday. Parliament will come back immediately. He will try to get that deal done. Interestingly for the u. S. , if he gets that deal done, they will work quickly to get a u. S. Trade deal. Thats become quite controversial in england because people are worried about the u. S. Demanding concessions on health care and stuff like that. But they will be looking and u. S. Officials i spoke to in the last day or so are quite optimistic about the prospect of a trade deal between a United Kingdom outside the eu and the United States. That could be good for both countries. Neil we will see. Unless we just slap tariffs on britain. Im sure that threat is around the corner. Neil thank you, my friend. Meanwhile, the president talking to macron about this digital tax, saying he wants to be the one to heap taxes on these Companies Even though they are the ones that dont flip over me. We slap taxes on businesses that do foreign businesses here. To National Taxpayers Union Executive Vice President Brandon Arnold on all of that. What the president is saying is that you dont slap taxes on American Companies, thats something i do, thats something we in the United States do. What did you make of that argument . Well, we have cut tax rates, of course, on our corporations as well as smaller businesses here in the United States which is a good thing. What we dont want to see here is countries placing discriminatory taxes on American Companies and thats exactly what france is doing here. This Digital Services tax is intended to target the Largest Tech Companies in the world which of course are by and large located in the United States. This is amazon, facebook, google, these are hitting American Companies in a discriminatory fashion and thats why the ustr ruled the way they did yesterday in saying we are not going to tolerate this kind of nonsense from the french. Neil so we respond in kind by, in this case, doubling tariffs 100 doubling the price of the goods on wine, cheese, fancy handbags, all that stuff. Where is this going, you think . Well, thats the concern. We are right to fight back here because france is instituting very poor unfair tax policy. We are right to fight back. But we need to do so strategically. If the end of this discussion is simply imposing tariffs on french products, we are in trouble because we will just see escalation. Thats going to hurt the french economy. Thats going to hurt the American Economy and cost us jobs. Thats a problem. What we need to do is find an exit strategy here that not only sends a message to the rest of the world because lets be clear, there are other nations right now that are contemplating similar taxes right now. We need to send a message but we also need to work constructively toward a resolution. Thats something we did frankly with japan when we crafted a trade deal with japan earlier this year. We had a provision in there that prohibited Digital Services taxes across the board. We should do so in all of our trade deals Going Forward, whether thats with the eu, the uk, as is possible, and frankly its something we should have done but failed to do in the usmca. Neil whats novel here, i dont want to belabor the point, its something to go after a u. S. Entity on antitrust concerns, thats happened in the past with microsoft, amazon, google, et cetera. This is targeting them on a specious theory that lets get a digital tax because these guys have a lot of money because they are not putting the same on, in this case, French Technology concerns. Yeah, thats right. Thats why this is such a discriminatory tax. It should be struck down by International Bodies and i think we should there certainly is a process going on currently, i think we should flag this for the wto. That doesnt mean we shouldnt take unilateral action. I think its appropriate for us to do so. I just want to make sure we are doing so in a manner that deescalates the problem eventually, that solves this problem by getting the dst off the books, not one that leads to a further escalation and trade dispute we have been having with france and the eu broadly on other matters outside of the dst and get to a situation like the one we have with china where we have a protracted trade war thats very bad for our country. Neil yeah. Protracted all the more. Very good seeing you, my friend. Be well. Its the trade war with china that shows no signs of ending and the president s comments that it might not be resolved until after the 2020 election about a year away that has stocks under the pressure they are under after the dow lost about 268 points yesterday, its down about 400 points right now. Only merck is surviving the carnage for the time being. These are all pretty much multinational concerns, if you think about it, that are exposed to all of this. Today, not in a good way. More after this. No, its not in my records. Youve got a lot on your plate. Deliveries. Billy, come in. Shift times. I just need to know if its there. Compliance. Can i get your 20 . For 100 drivers. Doug. Doug . And where is doug . He should be sleeping. So should you. Just because youre married to my sister, you could lose this job, billy this isnt working. Introducing samsung connected fleet solutions. 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[ dramatic music ]ing ] ahhhh ahhhh elliott. You came back song by song i try and make it easier for anxiety. O get help. Depression. Panic attacks. People dont want to talk about it. So i share it. The struggle and the joy with my mental health. I bare it on a stage, under a spotlight, and invite everyone to join me. Whats your mission . Use godaddy to help make it happen. Make the world you want. Neil you know, you always wonder when markets have the money heading out some place, it always has to go some place else. For the time being, it seems to be in the relative safety of the u. S. Bonds, treasury notes one of the examples with the tenyear treasury at 1. 70 . Remember, we had gotten up for awhile to as high as 1. 77 so that represents a slight change that bears watching. Seeking out some of the safety of the bond market as they try to sort out what happens in the stock market, then there is this. Well, if it does, then the democrats have done a very great disservice to the country which they have. I think its very unpatriotic of the democrats to put on a performance where they do that. I do. I think its a bad thing for our country. Neil all right. Real quick before i get to the particulars, just to clarify, the yield you are seeing is a drop adjusted today but over the last week or so, since tuesday, we have seen the tenyear note yield collapse about 13. 5 basis points. We were up a week ago at this time at around 1. 83 yield on the tenyear note. That represents some of the ongoing consternation about where we are going from here. Meanwhile, weve got the washington examiners hugo gerdon, on what the republicans are doing with this impeachment fight by not showing up. What do we glean from that . The white house is not going to turn up to participate in jerry nadlers, the Judiciary Committee hearings. Thats in part because theres been no detail given to the white house and you know, Pat Cipollone had decided at the white house that, you know, theres not a Strong Enough basis to go ahead. It hasnt ruled out participating at some later date. But the thing thats really important, i think, neil, is that the democrats have made it very easy for the republicans to defend President Trump because the process so far has been so manifestly unserious. The democrats are running this impeachment inquiry on the basis that they want to get it done and get it out of the way for the election so they are thinking, they can displaying the fact they are doing this for political reasons. That undermines the message they are trying to put forward which is that they are doing this more out of sadness than anger, theyre not doing it for political reasons and that the president has actually committed crimes. They are undermining their own message so they are really helping President Trump and the republicans to defend. Neil you know, i can see that point but if you are itching to get your side and its the point of view you want expressed, out there, and youre not out there, then its all tilted. I understand republicans will be doing a lot of the questioning too within the Judiciary Committee but the president s people have rightly complained they have not had their own counsel there to respond to this, to deal with any of this. Theres been a lot of back and forth. I wonder if they risk losing the public narrative at a time when democrats, we are told, are racheting this thing up to go way beyond just the ukraine situation. Yeah, look, there is always a risk in any litigation or quasilitigation kind of scenario, the sort we have now. Theres always a decision by the defense to decide whether or not, for example, they are going to put the defendant on the stand or, you know, obviously there are people, witnesses who could be crucial for fact witnesses for the democrats such as don mcgahn and Mick Mulvaney and Rudy Giuliani who are not currently participating, but the democrats have decided not to litigate, not to try and force them and yes, there is the opportunity for the democrats to get their narrative out and the president risks not getting his out, but if the hearings so far under adam schiff are anything to go by, its become very apparent that the democrats are not really trying to do anything other than create a narrative, and polls show that at best, voters are not turning against the president. At worst for the democrats, they are actually losing support for impeachment and you simply cannot impeach a president and get away with it with voters if the voters are not going along and thinking there has been a serious crime. Neil if you do want to get your point across or keep your powder dry, the administration might be thinking save that for senate trial if it comes to that. Yes. Absolutely. Yeah. Neil always good catching up with you, my friend. Be well. Have any of you seen the controversy building over this new ad about a woman who receives one of these peloton bikes, shes thrilled and happy about it, thought the husband did a great job, touche, shes delighted. Turns out its sexist and evil. She looks happy to me. After this. Most people think of verizon as a reliable phone company. But to businesses, were a reliable partner. 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A lot of stocks are getting a selling workout, if you will. But this is particularly noteworthy today. Kristina partsinevelos has the latest on the controversy that might be generating the selling. Kristina what is not to love, over 2,000 stationary bike for christmas. Of course, online critics arent loving this new peloton ad, just released for the holiday season. The ad appears to show a woman yearlong selfie journey after her partner gave hrer a peloton for the holidays. People are criticizing this ad for many reasons, one of them is that its sexist because the man seems to suggest the woman should work out more. Heres one twitter comment. Quote, when you have to videotape yourself exercising to prove to your husband that you are making every effort to look thin for him, hash tag, peloton. Other negative comments revolve around the small size of the model. This one tweet reads the holiday peloton ad where the skinny athletic model undergoes a transformation over the course of a year to become a skinny athletic model who now rides a stationary bike really pulls at the heartstrings. The social media backlash isnt anything new for the company, though. Last year, some complained about the Million Dollar modern home featured in the peloton commercial. Aspiration aspirational, anyone . The Company Still has a market cap of 9. 6 billion even though the stock is down today and it has more than 500,000 users. Many of them diehard fans who have busted that over two grand for these bikes and 40 a month. They must be doing something right. Neil, i just want you to know, peloton has disabled the comments on their 30second commercial, yet all of us are still talking about it. Neil we are indeed. They could settle this by just offering, you know, a man getting the bike. Kristina they do have an advertisement from last year where the man is riding the bike of the woman in secret. Neil got it. Got it. They just need a guy like me hopping on one of these puppies and this debate would end right away. Kristina in spandex. Neil you dont want to go there. Thank you very much. Fascinating story. Real quick, peek at the corner of wall and broad. The dow down about 363 points. This is all donald trump related. Hes getting back in the face of the chinese saying i could live and we might not be able to see a trade deal until after the 2020 president ial election. Thats still about a year off. Also upping the ante and saying those tariffs he was planning, you know the ones for argentina and brazil, theyre still on. Now france is caught up in this. They have a digital tax they want to slap on us. Hes ready to slap a similar tax on their wine and cheese. Its his way of saying the United States, you can always eat velveeta and try california wines. Theyre delicious. 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At chevy, were all about bringing families together. This time of year, thats really important. So were making it easier than ever to become part of our family. Man thats why our chevy employee discount is now available to everyone. The chevy price you pay is what we pay. Not a cent more. Family is important to us. And wed like you to be part of ours. So happy holidays. And welcome to the family. The chevy family get the chevy employee discount for everyone today. Im not going to let people take advantage of American Companies, because if anyones going to take advantage of the American Companies, its going to be us. Its not going to be france. And so as you know, we are taxing their wines and Everything Else. Neil all right. So these new tariff threats are out there. U. S. Businesses waiting on them to get the actual hit. Grady trimble on how some say that could be a good thing. Thats a little confusing. Help me out. Reporter i will try to help you get there. First, the Industry Groups obviously arent happy about this. A lot of these same products are subject to the tariffs because of that airbus ruling. Now they are facing potentially an additional tariff on 2. 4 billion worth of french products. You mentioned cheese and wine. It also includes handbags, makeup and soap. Industry groups say customers who buy french wines and cheeses, for example, could eventually have to foot the bill for the tariffs. They say a 100 tariff would be devastating for their businesses. So the french champagne exporters are calling for macron to help. This is what they say. We deplore this announcement which after the dispute over airbus targets french wines again and always in the context of a dispute between france and the United States that doesnt concern our sector. On the flipside, this could be good for some businesses. American businesses. If Retail Prices for those french products go up, is it possible that consumers switch over to american domestic products . On top of that, i did talk to the president of one Industry Group who says prices for domestic products could go up as well, as he put it, just because they can. That wouldnt be good for the consumer, necessarily, but it could be good for the businesses because their margins would increase. Neil . Neil thank you very, very much. So the impact from all this, from senior wealth adviser courtney dominguez. Courtney, im looking at this wondering what would, assuming this goes into effect, and that might be a leap there, i touched on this during the break, a negotiating point, but what would we see . How soon would we see it . I think people are underestimating how much of an impact this would be. We are throwing out these numbers like 2. 4 billion, which sounds like a huge number in our minds, but realistically its pretty minimal when you think about the u. S. Gdp is 21 trillion. If you just think about that, its a pretty minimal impact. Even if they go into effect, which i agree its too soon to know if they will or if this is just negotiation tactic. Even if they do, i dont think it will have as much of an impact with investors that are pricing it into the markets right now. Neil for americans who want to get their hands as quickly as they can on french cheese, french wine, all of that, i always tell them california or virginia varieties are excellent but they dont listen, if it doesnt affect cheeses and wines already here, it would affect those already on their way here, right . Thats my understanding. Exactly right. I think we might be able to get different cheeses, different wines, but as an investor if you are looking at your 401 k , use this as an opportunity because this happens like clockwork. People panic and sell but nothing has really happened right now. Its just the uncertainty of it. The economy is still on strong footing, we are still seeing solid data so whenever anybody else is nervous, take advantage and buy more shares. Prices are lower right now. Neil Hickory Farms is not part of this controversy. I just throw that out there. The other thing, we have this other wave of tariffs that go into effect on december 15th. I guess that looks much more likely now, talking about the better than 250 billion worth of chinese goods that make their way here. That would see a substantial pop in prices. What are you looking at there . Do you expect it to even happen . Thats again, i think its too soon to see if its going to happen or not happen. I think its more the uncertainty of knowing how long thats going to last thats overweighing investors, overweighing businesses and how much they want to deploy their cash right now. So i dont think its going to be a longterm impact. I think again, you will get some of the kneejerk reactions from businesses and investors, but i think longterm, if the markets dip on that, use it as an opportunity. I dont see this as a longterm effect. Neil a lot of people get nervous because they say december has almost become like october, ever since last december, where we started out okay, then the floor fell out beneath us, a lot of people ran out of the market. You would have been wise just to stick with it and see the great appreciation. Is that kind of your sentiment now . Not at all. I think thats something investors do a lot, they think just because something happened in the recent past that its going to happen again. So right now we are having a few down days in december and everyone is saying its going to be a bad december again, i want to get out of the market. I think its preemptive to think that right now. There are just some headlines that are hitting and some nervousness. Nothing fundamental has changed with the economy or the market. I dont really see that in the near future. Neil all right. So when you look at the environment right now, you mentioned the tariffs, the impact has been minimal. A lot of it because some have been delayed, adjusted or absorbed by American Distributors and retail companies, but that can only go on so long, right . Yeah. Which is true. But i think we kind of have to look at the underlying data. Unemployment is still at 50year lows. Companies are hiring. Thats across the board. Thats with minority groups, people with college degrees, people without them, consumers are feeling that and their paychecks are rising while inflation has been pretty low. Even if our paycheck is going further its not affecting the consumer as much as people expect it will. Neil thank you so much for stopping by. The dow down about 363 points, all dow stocks, dow 30 stocks down with the exception of merck. Merck mildly positive right now. A lot of that money is headed into the relative safety of bonds. Thats a good place short of putting money under a mattress and thats where the money seems to be going right now. We have the yield on the tenyear note which started out the day 1. 85 , now at about 1. 70 . You have to take my word for that because thats whats happening. More after this. The epson ecotank. No more buying cartridges. Look at all this ink it comes with. Big ink tanks. Lots of ink. No more cartridges. Incredible amount of ink. The epson ecotank. Just fill and chill. Neil elon musk is in court today, testifying in a Defamation Case against a british diver that he had branded a pedophile in tweets, when they were rescuing those boys caught in a cave sometime back. We will keep track of that. He could be facing some steep fines here but we are on top of it. Meantime, selloffs to start december, reminding some investors that, you know, what the market giveth it can taketh back very very quickly. We all remember how the year ended last year with a 2,000 point selloff in the very last month of the year. So is this a warning to investors that what goes up can also go down, wait it out, dont panic, what do you do . To the securities and Exchange Commission chairman, jay clayton. He joins us now out of washington. Chairman, very good to have you. Thanks for coming. Thanks for having me on. Neil you know, it gets a lot of attention when you have big days like this. The president was indicating today that he doesnt watch the markets, he was talking about trade and all of that. Obviously he does watch quotes and watch the markets but investors, you know, get a little too marketobsessed every day. As a Business Network we monitor it as well. Do you think this is an overreaction today, investors just keep calm . What do you tell folks . Look, i think your guest courtney, who was just on with you, did a very nice job of explaining that the markets digest the news of the day. Thats what they do for us. Thats how they function. And markets are going to go up and down as the news changes. Our job at the s. E. C. Is to make sure that that digestion of information as it gets reflected in prices happens in an orderly transparent and fair way. And this is ordinary market function we are seeing today. Neil obviously, markets change a great deal over certainly the decades i have been covering them. Its instantaneous today, you find a tweet from the president or reaction from say macron of france or the chinese trade delegation, and boom, the market can turn very very quickly. So for investors who go day to day on this sort of thing, is there value in thinking more longterm . I would suspect it depends on their age but what do you think . Look, im not in the Investment Advice business these days, but i think history demonstrates that main Street Investors are main Street Investors who invest regularly for the long term. For many, many years, that has been the appropriate strategy. Its very difficult to be a main street investor and be a day to day market timer. We dont prohibit people from doing that, but its not easy. Our main street folks who invest in the long term and do so on a regular basis are generally happy that they approached it that way. Neil mr. Chairman, are you curious that as we put the finishing touches on this trading year, that so many initial Public Offerings have such bumpy rides, whether its owed to the fact its an inside trading class that might have had the advantages but calling a commission to reassess how these things are handled, what do you think . Let me Say Something generally about the process. Its something i believe and my colleagues at the commission believe, which is that companies that go through that process generally come out better companies. The questions that we ask the questions that the investors ask of companies and the company has to respond, our rules say you have to tell people the truth, which is extremely important. They come out better companies. Now, we were just talking about price discovery in the marketplace. When a Company Comes to market, theres naturally going to be a price discovery process, where buyers and sellers meet and you expect some volatility early on in a companys trading history. That is natural. As people adjust to the company and its new disclosure, what supply and demand for the companys stock in the marketplace is, so i dont think we are going to in fact, i dont have any plans to recalibrate our rules around the ipo process. I will note that the rules we have in the use of direct listings have evolved and will continue to evolve as technology evolves. Neil speaking with jay clayton, chairman of the securities and Exchange Commission. In some ways, you are calling into question all these companies after the tax cut simply used a lot of that to buy back stock. They are free to do with that mon money, but there did seem to be a Division Within the s. E. C. , not directly from you, but what is the s. E. C. Position on that . Some have expressed concern companies have over done it. Where are you on that . Let me split the issue of buybacks into two. The question of whether to buy back your stock or not as a company, thats a Capital Allocation decision. When a company has what they believe is excess cash on their balance sheet, do they buy another company, do they dividend out that cash, do they invest in something else, door they repurchase their stock, thats a decision for the company, how to allocate capital. If the company decides to buy back stock, our rules do apply. We make sure they do it in a fair and transparent way. Thats where the s. E. C. Comes into the buyback question. Neil do you have any concern, though, that so Many Companies did that . Some did share the loot with the workers, so to speak, but the overwhelming majority did it to buy back stock. Again, to your point, they are free to do that, but do you think that going into this big Corporate Tax cut that brought the top rate from 35 to 30 to 21 , that it would be used so disproportionately this way, that it wasnt quite the way that those who were pushing it, including the president , thought it would be . Look, thats not really our job at the s. E. C. As to how tax policy is going to affect neil it doesnt bother you, if thats how it ended up . It is what it is, to your point . If thats how it ends up, we want to make sure its done in a very fair way and transparent way, and that the marketplace understands what a company is doing with that cash. Thats our job. To the extent anybodys not being transparent with what theyre doing with their cash, we want to know about it. Neil Public Companies that do announce this and say we are buying x number of shares or, you know, 5 billion worth of stock, thats the way they communicate that, are you okay with that . I think that thats exactly what we want people to be doing. Telling their investors, telling the marketplace what they are going to do with their capital. Whether its buying another company, paying a dividend, buying back stock, then if they are buying back stock, when they enter the market, they are doing so in a way thats fair to all market participants. Neil all right. So you are not for curtailing that. Just to be clear. You are not for curtailing stock buyback. I want to make sure that to the extent theyre done, theyre done in a fair and transparent way. Neil understood. Mr. Clayton, thank you very much. Chairman of the securities and Exchange Commission. Thank you. Neil the read from the Vice President on all these fastmoving developments. Charles payne had a chance and will have a chance to sit down with him, get a sense of where things are going. After this. Woman friction points, those obstacles that limit a companys growth. I try to find companies that turn these challenges into opportunities. But by going out in the field, and meeting management, suppliers, competitors. In the end, its these unique companies with Creative Business models that will generate value for our investors. Thats why i go beyond the numbers. That will generate value for our investors. [ electrical buzzing ] [ dramatic music playing ] [ squeaking ] [ screaming ] elliott . [ gasps ] elliott. You came back my son. My, my family. Lots changed since you were here. Its called the internet. Whoa whoa holiday movies. Im dreaming of a White Christmas family. Home. Woo [ gasps ] woohoo woo ill be right here. The problem netflix is facing, in five years they will have maybe 150 million global subscribers and so will disney, but the difference is disneys making a profit and netflix never has. Somebody else is going to have to take over netflix. Neil think about companies that sit on a lot of cash, apple. What do they do with that . Well, apple needs content. They have started to ramp up and put out all kinds of neil possibility of them buying netflix . Very likely. Neil all right. Echoing what Charlie Gasparino has been reporting, netflix could be in play. Whether it will be bought is anyones guess. Charlie back with us now. He put it in terms that you have as well, that a lot of content but still losing money and eventually tons of debt. Neil tons of debt. Then what . Listen, that doesnt mean apple will buy them. Apple has been very very neil will someone buy them . Theres only a few that can buy them given where the valuation of the stock is and the fact that you would be assuming a gazillion dollars worth of debt. Apple would be it would have to be a company with a lot of cash. Apple has a lot of cash. Neil amazon. Amazon. They dont have as much cash. Neil verizon . Maybe. Porter thinks amazon is going to buy something. Hes positive cbs viacom as well. Listen, there are different plays going on. Heres two things i think i got some breaking news on tmobile sprint. Before we go there, two things, if you are trying to play the game here. Number one, you have to look at it from a regulatory standpoint. Will the Justice Department, whether its the Trump Justice Department or if you have a democrat in charge, will they allow any of these big tech players to get much bigger. Because lets face it, the only companies that can buy a netflix are these big tech players. I mean, some of them are out because they have done deals already, or are big media Companies Like at t. Theyre not going to do another deal. Comcast, they are out, right, because the Justice Department we are not big enough, to be honest, to buy netflix. Can amazon, can google, can those type of Companies Buy netflix. Apple, its a regulatory thing. The other thing is do they want to buy them, do they find it more efficient to use their cash on hand to create their own content. So far, thats been the way they have approached it. So netflix has not been bought yet. Neil disney doesnt need it. Its rapidly building its own. Switching gears, youve got news on tmobile sprint . Every time you think this is over, its not. There is obviously a lot of regulatory issues, theres a big case thats coming down, state attorneys general from california, new york are trying to sue to break up this 26 billion merger, creating i guess the Third Largest wireless carrier. Heres what we do know right now. Midaugust, sprint has had major financial issues, regulatory issues as was reported in the journal and financial issues, losing money and subscribers. The stock is down about 8 in the last month. We understand that the officials that are putting together this deal are actively discussing a repricing of the deal. The deal, its a complicated pricing structure. Its like, Something Like. 103, i got to get the exact number, sprint shares for tmobile shares, comes out to a 26 billion merger. Suffice to say they are looking at sprint shareholders getting less, maybe tmobile getting more, because sprint is worth a lot less than it was when they did the deal. Neil Charlie Gasparino, thank you very, very much. The selloff continues right now. Because the president says a trade deal with china can wait. Can it . Today, the sellers are not waiting. More after this. What shines forever . Diamonds. What is as rare as true love . Diamonds. What lights up every room . Diamonds. 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I have confidence. Just slightly delinquent. Some are way below 1 . Thats unacceptable. We want to tax American Companies. Thats important. We want to tax them. Thats not for somebody else to tax them. So the president knows we taxed wine, we have other taxes scheduled. But we would rather not do that. But thats the way it would work. Neil all right. The president had a field day with leaders right next to him, going after those said leaders. A lot of this normally happens behind closed doors. Not today. A point of reference, we do tax Foreign Companies here. They do business here, we tax them here. What the president is complaining about in the case of france is that they went the extra mile of starting a digital tax that would only target American Companies and thats not fair and not right and he is slapping back taxes and tariffs, the likes of which will hit french wine, very pricey cheeses, all of that. You always have velveeta and some of the boxed wines that are very popular. So there are alternatives. Anyway, what the president had to say on that front sort of rattled the markets, because he was adding tariffs, or potential of them, on top of what he wants to do with argentina and brazil and reinstate tariffs on foreign Steel Products coming into this country, notably from both countries, and doing the same with china, in a battle that could take us to december 15th and all those tariffs that we hoped, a lot of people on the corner of wall and broad hoped would get delayed if not outright canceled are back on again for the 15th. The president also indicating, and this is what really started the selloff bright and early, that he could see the possibility that we dont have a trade deal going until at least after next years election. Weve got Edward Lawrence following all of this and theres a lot to follow. Reporter yeah. The tariff man may be back. The president as you said there, no timetable for a trade deal with china. Hes talking about a phase one, phase two and phase three trade deal. He said he could maybe get to it possibly after the election. You may be seeing a warning sign here to china from the president. The chinese have been pushing to get tariffs rolled back in order to get a phase one trade deal. The u. S. Has been pushing back against that. Thats become the Sticking Point related to all this. The president indicating that on that world stage, that he is fine with the status quo in collecting those tariffs. Listen. I have to make the right deal. Im not going to make a deal thats not going to be great for our country. And it cant be an even deal. If its an even deal, its no good, because china, other president s and leaders of our country have really let us down because they let china get away with get away with something that should never have been allowed to happen. Reporter in fact, my trade sources are saying that december 15th tariffs are going to be added in place basically on Everything Else that china imports into the United States. Now, we are talking about a 15 tariff on about 160 billion worth of stuff like those on your screen there, phones, laptops, toys, tablets. The caveat here is that if there is progress, enough progress for the president , or if a phase one trade deal actually makes it down on paper, President Donald Trump could change his mind and not impose those tariffs but as of today, those tariffs are set to go into place. Back to you. Neil thank you very, very much. All right. Does this have the making or at least hint of what happened last december, it was a bumpy month, actually got bumpier as the month wore on here. That was then. Could it all be happening all over again now . Connell mcshane is with me. What do you think . Connell in many ways, we are so far away from that it almost buys people like the president some time to kind of have these conversations, negotiate as they seem to be doing today. Neil is that what you think . I heard that from others. They think its really negotiating. Connell probably. We have seen this, i mean, we have grown used to this over the last few years. If you think about it, everything that the president said today was probably just some sort of a trial balloon. There was no actionable, you know, executive order or piece of legislation or anything behind really any of this. So you throw out the possibility of tariffs here, you might extend the deadline there. But you havent actually done anything. Of course, the markets react to that, but at the end of the day, we will see where we are. We are down now, what, a little over 1 . Less than 1. 5 . Not the end of the world. To go back to your point about last december, it did feel like almost the end of the world on some of those days. There was a tenday trading stretch last december, i forgot how crazy it was, i was looking back today, where in 6 out of the 10 days the dow was down 350 points or more, and there was also a day in that stretch where it was up over 1,000 points. Neil and where we got as low about a percent away from a bear market. Connell bottoming out on christmas eve, then came roaring back. Neil when you look at this, and the backandforth on this, is it your sense that the president is tiring of the chinese, you are hearing it from some of your guests that they are going back and forth on things that just seem to frustrate the president and now he cynically says i dont really see a deal imminently . Connell theres a number of signs now, not just what we have seen today but the comments yesterday, over the weekend, going back a couple of weeks, where all signs now point to the fact that theres nothing coming soon. We have also been conditioned to find out that that could change as quickly as one tweet or one comment tomorrow. But we are being set up for that, whereas a few weeks ago, we were all but being set up for the fact that phase one, even if that was not the end of the road by any means, but phase one, whatever that would mean, would be signed by the end of the year. Now almost nobody thinks that. You are just seeing a bit of a readjustment for now. Again, we havent got to the point where we were last december, where people were kind of panicked to some degree. There was so much volatility. Neil thats a good example. If you sold out and just left this market, people who were selling, getting out on the dips, ended up looking like dips that they didnt stick with it. Thats been the lesson. I guess i got to stick with it. Connell exactly. Yeah. I guess thats the larger point. Thats in the back of your head. If we didnt go through that and there wasnt so much craziness last december, mostly to the down side, as you said, the dow down by 2,000 plus points but also for the upside, the roar back after bottoming out on christmas eve, if that wasnt kind of in neil all of this, we still have yet to get a trade deal with china. Connell right. Its almost there is a little bit of groundhog day element to this. We are having the same conversations we were having last december which sitting us up for some sort of trade deal but we are lowering the bar on expectations and everybody has to set that bar. Again, it is difficult to plan. Thats still out there. If you are a business and watching all this, it is just a difficult environment to go say well, heres what things are going to be like in six months or in a year, and that is back in peoples minds as well, the uncertainty for lack of a better way of saying it is certainly back there. Is that your car pulling up . Neil it is. Its your ride. Its right outside. This is at Buckingham Palace. The president has arrived. Hes going to be meeting with Prince Charles and kamila. As we are watching this, how do you think this trip is going here . I was saying a lot of the stuff we normally see behind closed doors is happening for all the world to see. I think no matter what you think of the president , that can be refreshing. Yeah. The curtain has been torn and everyone can see exactly what President Trump is doing. Hes going to be tweeting about it, hes going to be answering shouted questions from reporters, hes even going to be negotiating trade deals with other countries while hes talking to the heads of state of european nations. I think that right now, theres a lot of movement because of what he has talked about with these trade deals but this is a win for President Trump in london right now, to be able to talk about nato and talk about how they have increased funding by 130 billion since 2016. So thats a big takeaway from him. We have to see how the rest of the visit goes. Neil you know, a lot of times, you reminded me of this, someone said something critical or it sticks with him and he has to get it off his chest, either, you know, making a comment on the side or more likely, in his case, bring it up with them right there. Macron and his famous comment that theres a brain death of nato going on and it owes in large part to the president of the United States, who has not provided adequate leadership. The president didnt waste a moment to rip him on that and they had this sort of tense discussion on the subject, and others, including french tax on Digital Products out of the United States. How do you think that went . Well, the irony here is obvious because not long ago, President Trump said that nato was obsolete, now macron says theres a brain death. The difference is obviously that that funding has increased and trump sees himself as taking more of a lead with nato than he had in the past. But President Trump made clear explicitly that if anyone was going to be taxing u. S. Tech companies, it was going to be the United States. And what did he counter with . Those tariffs you were discussing a second ago on everything from french cheese to luxury handbags to champagne. Thats the type of tariff that i think is going to be very popular in this country and if you are watching from the middle of the country, youve got to be thinking yeah, stick it to the french. Neil really a big target, luxury handbags filled with french cheese. Jeopardy there. By the way, we are still watching outside Buckingham Palace right now. Back with Connell Mcshane as we well. This is a chance for the president to meet with Prince Charles and camilla. We are told later on he will meet with the queen, with whom hes enjoyed a very good relationship, endearing one. But when it comes to Boris Johnson, rumors are they are very very close with the understanding Boris Johnson didnt want him involved directly and thats because the elections are so close, didnt want to rattle cages. Less than two weeks, nine days, i believe. The 12th of december is the election in the uk. I think those of us who, i dont know if you do, but watch the crown on netflix, especially when the president is overseas, in particular when hes in the uk, you feel like you are watching season seven in realtime where that negotiating earlier in real time, now he goes over and is meeting with Prince Charles, you love it because that whole show, if you think about it, you see behind the scenes of the royal family and their interaction with World Leaders. Like you said, there is no behind the scenes anymore. We are seeing everything out in the open. Neil by the way, we are just learning, talk about the open, camilla was to meet with the president along with Prince Charles. It will just be Prince Charles. Phil, can we glean anything from that . I apologize. I was thinking of another camilla, harris. I can separately see that . Not at all related there. Shes dropped out, Kamala Harris, dropped out of an event that would feature new york titans. Thats a separate issue. On this meeting today, phil, are you impressed with how at least the president has changed the posture of all of this . I think what is very interesting is that trump has shown that he can be very delicate when it comes to certain interactions with heads of state. Hes able to rub shoulders with british royalty which is something that he wanted to do when he was in new york neil im jumping on you again. She did more than just drop out of this wall street event. Kamala harris has officially dropped out of the president ial race. For awhile a frontrunner in the democratic president ial contest. There have been a lot of stories, real clear politics reported as well about staff dissatisfaction, former stafferers complaining about their treatment and the tone and tenor of the campaign. Shes dropping out. What do you make of that snfr . S this is huge news. If we rewind the clock to a year ago, Kamala Harris was one of the rising stars. We saw what she did on the Judiciary Committee during confirmation hearings of kavanaugh. She became a progressive darling. A lot of hopes of the party were put on her because she was quick on her feet, very persuasive in the way she talked about a lot of different issues but the core problem was Kamala Harris did not come up with a fundamental issue. She tried to, you know, run the field with a number of different topics and there were headlines about how she got her campaign on the phone during a Conference Call to figure out what their fundamental message was. When you have to go to your campaign and say on a Conference Call, what are we all about, thats a big problem. I think this opens up a lane for some of those other candidates who now have a little bit more breathing room ahead of the december debates because while she did falter at times, she was always a presence onstage and now they will have an opportunity to take a spotlight from her. Neil connell, maybe you can update us. Senator Kamala Harris dropping out of the 2020 president ial race. She was the only africanamerican candidate whose polling numbers and National Media attention had put her in the top of the field, but as the campaign wore on, even after that very, you know, good performance in the first debate where she was taking on joe biden and others, it was shortlived and now shes out. Connell isnt that the point, how shortlived that was, that attack on joe biden back then. I think phil hit the nail on the head in describing how the obituaries of this campaign will be written in the next few days. They always say, you have moderated debates. Many times the question, why are you running. Why are you running for president. There never was a definitive answer from senator harris or from people representing her. Like you said, there were many stories neil could you see her as a potential running mate . Connell its certainly possible. Depends who the nominee is, i think, and what that nominee would need in a running mate or what she or he would think they need in someone to be a running mate but this was a candidacy that was better on paper than in reality and it just never executed from the beginning with a coherent message saying why are you running for president. Neil i want to thank you both for that. I apologize for the confusion. No ones fault but my own. I was looking at Prince Charles and immediately thought camilla would not be joining. Thats on me, no one else. But i will blame someone else later on. Kamala harris, the California Democratic maverick senator, is now out of the race for presidency of the United States. More after this. In your printer ready for another school year . Whats cyan mean . Honor roll. imitates whooshing, booming the ink dad dad im so hosed. Yeah, you are. That can save youh tha lot of trips to the store. Get ready for the deans list. Whos dean . Most people think. As a reliable phone company. But to businesses, were a reliable partner. We Keep Companies ready for whats next. man we weave security into their business. second man virtualize their operations. woman and build ai customer experiences. second woman we also keep them ready for the next big opportunity. Like 5g. Almost all of the fortune 500 partner with us. woman when it comes to digital transformation. Verizon keeps business ready. Wthats why xfinity hasu made taking your internetself. And tv with you a breeze. Really . Yup. You can transfer your Service Online in about a minute. You can do that . Yeah. And with twohour Service Appointment windows, its all on your schedule. Awesome. So while moving may still come with its share of headaches. No kidding. Were doing all we can to make moving simple, easy, awesome. Go to xfinity. Com moving to get started. Neil all right. Kamala harris is dropping out of the 2020 president ial race. There might have been some things telegraphing trouble here. Of course, recent Staff Members who had been complaining about the environment there within the campaign. Apparently it was, to put it mildly, testy. Then the candidate dropping out of a fundraising event in new york that featured some wall street titans. That was the first thing that went. Now this news. Former ohio state democratic senator capri cafara, what do you think . Well, im not entirely surprised. I will say that i am a little bit surprised that it came this quickly and this swiftly because we have been getting these reports that shes been losing staff, for example, and that weve had senior staff i think that has gone to mayor bloomberg who has recently announced his democratic candidacy. So obviously, there has been some trouble in the Kamala Harris camp. Now i think really, the question becomes where do Kamala Harris supporters go, to joe biden or to mike bloomberg, to Elizabeth Warren . I think she was a very strong rising star and i think still is and still has a Bright Future in the democratic party, but she did not seem to build a coalition necessary for longevity and i think that because she did not have a clear message, i think its not as obvious where her supporters would go now that shes leaving the race. Neil if youre looking at just those africanamerican candidates who intrigue democrats, you have deval patrick, the former massachusetts governor, obviously cory booker, who indicated hes got to do something and soon. What do you think . Well, even though there are africanamericans in the race, now Kamala Harris is not but you mentioned the other two, just because you hold a certain race or gender does not guarantee you are going to have a monopoly on the africanamerican vote or the women vote, for example, and we know that Vice President joe biden has a very Strong Coalition in the africanamerican community. I think that then raises the question, does the exit of Kamala Harris somehow strengthen joe bidens hand even more in the africanamerican community, or does it somehow dissipate to the other two african americans. As i said before, i think that because Kamala Harris did not have a leading issue necessarily, you know, whether it was immigration or reproductive rights, even though she has a Law Enforcement background, she got a little flack for her background as chief Law Enforcement officer in california. She hasnt really had a group thats coalesced. Because of that, its not, as i said, as obvious of where her supporters will go because its harder to show that alliance to say, for example, well she was strong on, you know, trying to take out big banks as well as Elizabeth Warren, so now that shes gone, they will go to Elizabeth Warren. I dont think its that obvious. Neil im wondering, too, about what you get being in these debates, we know right now that Michael Bloomberg will not be in the next democratic debate. But it didnt seem he was too upset about it, maybe because he knew he would be the center of attention there, but the debates themselves had not dramatically changed the equation for anybody, have they . The only thing i think the debates have done are two things. One, they have given a very small maybe 12 to 24hour news cycle jolt for people right after the debate is over so for example, we have seen Tulsi Gabbard had that backandforth neil but it didnt improve her numbers. Kamala harris and joe biden, you get these jabs. So maybe, you know, that can do a little bit of a boost within the 24hour news cycle and sometimes its given people an opportunity to raise money off of it to get to the next debate but it has not really changed the calculus as far as the poll numbers have gone. Thats on both sides, whether its been a strong debate performance or in the case of joe biden, you know, hes just basically treading water. His poll numbers, you know, are at least nationally stabilized on a state by state basis, thats a whole different story. Neil real quickly, at the risk of getting my producers here, i would love your thoughts on this, the process now, especially with proportional voting, that even if you dont get a whole lot of votes in a state, you get some delegates, do you think even with a dozen plus candidates still in the race, its possible we get to a first ballot and no victor . Yes. I do. I have said that all along. I think that its going to be, as people drop out, its going to be obviously theres going to be more consolidation. Thats common sense. But because as you mentioned, you have to get at least 15 of the vote and theres no winner take all in any state due to the Democratic National Committee Rules changing in the last year, so its anybodys game. Particularly as long as we have a larger field in front of us. So i think we might have to hold on and see whether or not we will have a floor fight. Neil we will watch it closely. Capri, thank you very, very much. We mentioned london. Also that its where the president is meeting right now with Prince Charles, later on a big shindig featuring all the nato guests for an event at the palace. Later on a meeting with the queen herself, who has struck up quite the friendship with the president of the United States and he with her. More after this. Im your 70lb st. Bernard puppy, and my lack of impulse control, is about to become your problem. Ahh no, come on. I saw you eating poop earlier. Hey my focus is on the road, and thats saving me cash with drivewise. Whos the dummy now . Whoof whoof so get allstate where good drivers save 40 for avoiding mayhem, like me. Sorry hes a baby neil all right. It wasnt 10 billion but it was a record 9. 4 billion in online sales that is forcing retailers to get very creative these days. Lauren simonetti is at a luxury experience in manhattan. Lauren yeah. Thats a lot of money. 9. 4 billion on the internet and instagram is the new retail therapy. How do you get people to not only come to a store, but spend a lot of money here . Lets talk to the trendsetter himself. Hes the head of brookdale place. Major shopping destination. Lot of luxury here. How do you get people to spend their money here . Its about creating a great place, we call it place making and its really about understanding people arent just coming when the lights are turned on and stores are open but bringing people in. So we have a great arts and events team that holds upwards of 100 plus events a year. Lauren look up, you can see the light show for christmas, right . Exactly. Thats going to launch tonight. Also, we have a lot of restaurants here, 20 plus restaurants that do a total of over 100 million a year in revenue. So creating a dynamic destination and bringing people in will allow them to shop. Lauren clearly people like to eat. We do know that. If you look over our shoulders, the Louis Vuitton store is over there. It started as a popup a few years ago. Now you are nearly tripling the size of that store here in this location. Yeah. I think Louis Vuitton came short term to try something, realized it worked and its a mix of stake holders that are shopping here. We have 40,000 office workers, 20,000 residents of battery park city, 15 million visitors coming downtown every year. Lauren location is key for brookdale place but can you do what you are doing, does this work in another location . I think it can. Certainly location helps, density helps. We have a million square feet of office above this complex so that helps. Its that place making concept when you give people reason to come by. Lauren what really surprised me, we are talking about all this money being spent online with our smartphones, when you look at the amount thats actually spent on luxury, its happening in store, only 12 of overall luxury sales happen online. So your shoppers come here, they are buying something expensive and not getting a discount. What does that say about the economy . I think all the sentiment right now, all the indicators is that the consumer is doing well. I think especially the Luxury Consumer is still demanding they come, actually touch and feel something, if they will be spending that much money, versus a more commodity product you might buy online and get delivered to your house. Lauren neil, over to you. Neil thank you very, very much. I get nervous when they want to improve the shopping experience. Anyway, we are learning more on Kamala Harris from my buddy, Charlie Gasparino, who said democratic sources have been relaying that her attack on joe biden actually backfired and her currency went down along with it, that she probably would have been possibly joe bidens Vice President ial pick if he gets that far, but now it looks highly unlikely. Then theres the issue with Tulsi Gabbard, whether she was exposed on some criminal justice issues that also backfired on her. People still say she is a player but shes wounded, basically had no choice but to drop out, couldnt raise money. That of course can be a death knell for any candidate. But sort of wrenching over what prompted this and what she could have done to avoid this is now a moot point. Shes out of the president ial race. We are still down to more than a dozen candidates still very much in it. After this. Nationwide helps you invest for your future, brad. So you can plan for retirement and save for college. Oh, that explains this. The nationwide dome. Stateoftheart venue. 80yard screen. Fantasy sports lounge. Climate controlled seats. Sushi bar. Club level pool. Really . Lastly. Retractable roof. Whoa. Touchdown peytonville just runnin away with this one. Go peytons. pop kind of lackluster. Eh, still working out some kinks. Who they playing . The brads. Worst team in the league. Of course. What shines forever . Diamonds. What is as rare as true love . Diamonds. What lights up every room . Diamonds. Beautiful diamond styles for the diamond in your life. Get 25 off everything, including these oneofakind deals at the winter jewelry sale. Exclusively at zales, the diamond store. Neil all right. Well, the president might be trying to school the chinese on trade, but it seems that china is schooling us on schools. Susan li has the details on how it seems possible that the chinese now have the smartest kids in the world. Susan smart is defined differently around the world. I will show you the findings of this survey. It did find china was number one when it comes to math, to reading and to science as well. And china is represented by four specific regions, beijing, shanghai, and youre looking at me like where are these places . So as you see, china number one, singapore, macao, hong kong, this is just reading, by the way neil we are 13 . Susan yes. U. S. Is 13 when it comes to reading. Thats probably the highest score they have across the three subjects. Number 37 when it comes to math. Thats actually below the oecb average. Number 18 when it comes to science. This, by the way, is not being solved by money amongst the richest nations in the world. They found that first of all, education didnt really improve in the last 20 years or so going back to 2000, and even those that through the moew the most improving education didnt really get that far, even those who put 50 more resources neil is the school day longer, more focused . Susan definitely its longer. I can tell you that. I think its also cultural and societal as well. This is the country of scholastic excellence being appreciated, encouraged, i can tell you that for a fact. Neil how long is a Typical School day . Susan in china . Dont forget a lot of tutoring comes after class as well. I had friends who have had kids that have been basically doing their homework until 10 00 p. M. At night. Nie problem with this study is that chinas represented by four specific regions. These are really rich regions across china as well. In this study, they found that actually, the poorest 10 performed above the average so socioeconomic status doesnt really matter in china. I would argue these regions dont really represent the poorest part of china because i would be i guess i would be surprised to see the same sort of results there as well. Neil in science and math, is that their draw . Susan yeah. It definitely is. Its encouraged by the government as well. Again, this goes back to the order in society where math, science, some of these s. T. E. M. As we have talked a lot about, s. T. E. M. Areas are exactly what the government is promoting. Neil do they go to school year round . Susan i think so. There is no summer break. You maybe get a few days off for chinese new year. No christmas. No thanksgiving. But its pretty much school, school, school for 20 hours a day, 355 days a year. Neil i should tell my kids that. Could be worse. Susan but really smart, though. Getting high grades in math and science, is that necessarily smart . I would argue that the Education System in china does not promote i would say ideas, innovation, imagination. Neil the heart and the mind, right . Susan personality. Neil okay. Susan obviously im a student of that. Neil you are indeed. Thank you very much. The wealthy are giving a lot more to charity but could all of that backfire . After this. No, its not in my records. Youve got a lot on your plate. Deliveries. 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Neil all right. We are hearing now, being told the House Intelligence Committee will be publicly releasing its impeachment report shortly. We are also told that republicans have their own conclusions that they are going to announce either tomorrow or the day after, so two different reads out of the same Intelligence Committee that paves the way for the Judiciary Committee to begin its own impeachment proceedings separately. A lot going on there. Meantime, the season of giving is on. While a lot of democratic hopefuls are giving it to the rich, the rich are actually giving it to a lot of folks. Jackie deangelis has the story on this giving tuesday. Jackie . Jackie good afternoon to you, neil. Well, of course whats important here is estimates are suggesting 500 million in donations will be collected today but researchers say that overall, Charitable Giving is down, actually. 20 million fewer households donated in 2016 compared to the year 2000. There are several reasons for this. First, some people say they just dont have time to go to church anymore, that this is connected to tithing and also their religious beliefs. At the same time, the cost of food, housing, health care, they have gone up so theres less disposable income. Itemized giving from low and moderate income earners decreased all the way up to 2015, but donations from upper income earners, they actually were on the rise until that point. As a matter of fact, the wealthy were accounting for 75 of all itemized giving. The question, of course, is will this change and the reason for that is last year, new tax changes made it more incentivized for the standard deduction. The itemized deduction is where the charity things used to go. So this comes at a time when you have president ial elect candidates like Bernie Sanders and Elizabeth Warren saying the rich dont give enough. But back in 2015, the most recent stat that we have, the top 1 gave onethird of all of the giving. The white house made a statement on giving tuesday as well, encouraging people to give of their time if they cant give money, saying quote, in part, as you and your loved ones continue to celebrate the holiday season, i encourage you to seek opportunities this giving tuesday to improve the lives of others and your community. Neil . Neil very nice. Give what you can. Jackie, thank you very, very much. Charles payne gives a lot away, just sitting down with the Vice President of the United States. Weve got a preview hes ready to tell me a little about right now. Charles . Charles great to be down in the Nations Capital and of course, tariffs are back in the news bigtime. I began the interview with Vice President pence on the notion that instead of just being a tool to get the better relationships with our trading partners, perhaps this Administration May consider actually using tariffs, not necessarily the ones that are in place but using tariffs permanently to bring jobs back to america. This is what he had to say. The president has also been willing to i dont tuse the pows economy and access to this economy and tariffs to leverage changes in our trading relationships with nations around the world. I think its that combination thats working for American Workers and its working for the American Economy. Charles so obviously, the administration is thrilled with the results they have seen so far, thrilled at how well this economy has done. Again, its something i always tell folks. Keep in mind we do have 360 billion in tariffs in place, we are going on two years and the economy has had a pretty good run. Neil all right, my friend. Thank you very, very much. Look forward to that interview. Charles payne in washington. How a fifth generation Family Business became one of americas largest marketers of beef. The coowner of omaha steaks is next. As a struggling actor, i need all the breaks that i can get. At liberty butchemel. Cut. Liberty mu. Line . Cut. Liberty mutual customizes your Car Insurance so you only pay for what you need. Cut. Liberty m. Am i allowed to riff . What if i come out of the water . Liberty biberty. Cut. Well dub it. Liberty mutual customizes your Car Insurance so you only pay for what you need. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Neil all right. Turning a unique idea into a success. Omaha steaks started as a father and son butcher shop way back in 1917. Its grown into a multiMillion Dollar brand delivering its meats worldwide. Its commercials are legion and are everywhere. The omaha steaks coowner todd simon joins us now. Good to have you. Merry christmas. Merry christmas to you, neil. Neil its interesting when a Family Enterprise from the way, way back and it still thrives, its important to you obviously not only the meat you sell but the way you treat the people who sell it. Its kind of integral. Could you explain how that works . Sure. I mean, we have built a fifth generation Family Business treating our customers like family and treating our Employee Team like family. So its really important as we follow our mission, which is to deliver exceptional experiences that bring people together, that that really permeates not only the products that we sell and the way we treat our customers, but also the way we treat our Employee Team. Neil its interesting, too, what you have been able to do, when you have to sell people online, they dont have the advantage of testing out a product. They have to get it, if they like it, they order it again, they tell their friends and so it goes. So you were kind of doing that long before we had the amazons and all of that. Explain how that went. Id like to think of omaha steaks as the original food tech company. We started the Meal Delivery business in the mid 50s and have been shipping now millions of packages a year to our customers that way, and its been a great ride, and with some Great Technology to help us along the way, you know, the internet being probably the most Important Technology lately. Because we have a 100year Family Business, we are able to offer a 100 satisfaction guarantee and that speaks to the quality of our product and the fact that people cant touch it, they cant see it necessarily before they try it, so we back it up with all the force of our hundred year fifth generation Family Business. Neil i know you were steeped in this from when you were a little kid. I read a story where you said i have done just about every job in the company starting in the box room at age 10 to my first real job after college in production. Did you ever want to buck the Family Business, saying im going to launch on my own and do something totally different . I thought about it for about 15 minutes, then i decided you know what, i think i will give the Family Business a try. That was 35 years ago. I guess im a lifer now. Neil the rest is history. Who are your customers . I know they are hard to generalize but who are they . Sure. So our customers are steak enthusiasts and we really have kind of three groups. We have steak enthusiasts, we have convenience seekers, people looking for easy meal solutions, and we have people interested in making sure they have good protein in their diet. It ranges in age from people who are just kind of in their mid 20s all the way up to people in their 70s and 80s. Weve got a lot of empty nesters who rely on the convenience of omaha steaks and we have a lot of families who rely on omaha steaks for everyday meals. Of course we have corporations and individuals and professionals who use omaha steaks as gifts as well. Neil so the way of plantbased, you know, alternatives, beyond meat, whathave you, do you worry that that is going to take some of the thunder away . I dont really worry about that, because the beef industry is very big. Its a 60 billion industry. While we do hundreds of millions in revenue, we are still a niche player, if you will, and we dominate the niche that were in. Our customers are steak enthusiasts and beef enthusiasts and theyre not coming to us for highly processed plantbased meat alternatives. They are coming to us for that real steak experience. We do notice that some people are eating a little bit less beef, but when they do eat beef, they want to eat the very best. Thats why they come to omaha steaks. Com and choose their proteins there. Neil obviously, you take in your own product. You like your own product. Is there one particular product you like more than others . That is a great question. I can tell you are a man of taste and distinction for even asking that question. I love the omaha steaks private reserve new york strip. Its absolutely, im a big new york strip guy. I have always liked new york strips. If you go to omaha steaks. Com we have a full line of private reserve which is like our best of the best. I would encourage anybody to try them. They would make a great place on your holiday table. Neil there you go. Always a marketer. Todd simon, omaha steaks coowner, senior Vice President , very good seeing you. Thank you. You want to know where the beef is with the Intelligence Committee report . See what i did there . Its out. The report is out. Not the beef, the report. Hillary vaughn in washington, d. C. With the very latest. Hey, hillary. Reporter hey, neil. House Intelligence Committee chairman adam schiff releasing the report, saying he believes the president abused the power of his office to solicit foreign interference into our election for his own personal political gain. We are poring through this report but this is new because the Intelligence Committee has officially wrapped up and concluded its investigation, handing the report then to the house Judiciary Committee, which we know is going to hold its very first hearing tomorrow. The hearing happening in front of the house Judiciary Committee, is not going to turn up more facts in this investigation or witness testimony related to the president s dealing with ukraine over military aid. Instead, the Judiciary Committee hearing will hear from four law professors from harvard, stanford, George Washington and North Carolina school of law. They will give their take on what the constitutional grounds for impeachment are. The president today says he does not plan to watch the house Judiciary Committee hearing tomorrow, but he did say that he would be willing to have his people, including secretary of state mike pompeo and chief of staff Mick Mulvaney to testify in front of the senate if there were a senate trial. They have three constitutional lawyers and weve got one. Thats not even smart. Because its not going to matter. And they take three and they give us one. Whoever heard of anything like that . No one. I want them to testify but i want them to testify in the senate where they will get a fair trial. Reporter today, republicans from the intelintelligence, ovet and Foreign Affairs committees released their own report on the impeachment investigation, saying quote, the evidence does not prove the democrats allegations that President Trump abused his authority to pressure ukraine to investigate his potential political rival. Vice president joe biden. There is still no deadline for when the house would vote for impeachment. Speaker pelosi announced that the house will delay their holiday recess. Neil . Neil thank you very, very much. Im reading that report as hillary is speaking. One line stands out. The impeachment inquiry has found the president personally and acting through agents within and outside the u. S. Government solicited interference of a foreign government, ukraine, to benefit its reelection, in furtherance of this scheme the president conditioned official acts on a public announcement by the new ukrainian president of politically motivated investigations including one into the president s domestic political opponent. It is clear to see from this report that the democratic majority authors have said the president abused his power. But that warrants a high crime and a dmisdemeanor. That at least reading from this is impeachable. More after this. There are things we would change about work. 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I have loved serving with her in the senate and every moment weigh run into each other. Her campaign broke barriers. Love you, sister. Mayor buttigieg also saying that she went her career advocating for the voiceless and vulnerable. Im greatful for her leadership she brings to the senate and the debate. With the dow down 330 points i turn it over to my colleague Charles Payne. Charles im Charles Payne this is making money. Stocks are singing today that trump may want to delay a trade deal with china until after the 20elections. I think this is like three card monthty. They might follow the red king, there are issues investors should be watching. We have expert what is you should know and be doing during this downdraft. We have reaction from the white house on the president s comment on china. I just sat down with Vice President pence of the United States for an exclusive interview. Mr. Pence making news with the latest on the trade deal and our booming economy