Transcripts For FBC Mornings With Maria Bartiromo 20240713

The latest on the road ahead for its potential vaccine. Retail back in the spotlight again, once again, two companies that have remained open reporting target and lowes. Markets this markets posed for higher opening. Dow trails up 294 points right now, 1 and a quarter percent higher, s p up 33 and nasdaq higher by 103 points. All averages better than 1 . Concerns over modernas vaccine trial led to lateday selloff yesterday. Delta Airlines Adding Flights as the country reopens. Ceo of delta is here ed and find out when he expects to see domestic and International Travel bouncing back. Measures to keep passengers safe and boeing prediction that Major Airline will go out of business by the fall. Demand for car products risen 500 . Hard to find on store shelves at 8 30 a. M. Clorox ceo, how they are trying to meet demand nor 5 Dividend Increase and what the future of the business holds. Clorox this morning. Newly declassified email from susan rice showed she tried to protect then president obama and blames james comey for withholding russiarelated intelligence from flynn and the trump team. This as flynns lawyers take case to the next level. Mornings with maria is life right now. We have earnings beat right out of the gate, lowes with Quarterly Earnings, lets go the Cheryl Casone with the numbers. Cheryl stock up almost and a half percent right now. They came in at buck 77, so substantial earnings beat for the company, 8. 3 billion, they came at 19. 68 billion. We heard from retailers yesterday, remember, this was a stock at 60 back on march 18th, its now 122 and change, also, the companies saying that in the u. S. Samestore sales up in the quarter, overall in total international 12. 3 . We do have a beat for lowes. Really quick, i want to add this, they told us they spent 340 million to support employees and we have seen give support to Employee Base and hiring and looks like lowes has been pretty darn busy and better than rival home depot looked yesterday, maria, back to you. Maria look at the Comp Store Sales, cheryl, up 11 and a quarter percent. Big numbers here. Stock sup 6 right now on lowes, it is moving fast showing a gain of almost 7 . Joining me to talk about this and what it means for broader average cochief Investment Officer hank smith and also joining the conversation is fox business Dagen Mcdowell, ubs Financial Service private wealth adviser alli mccartney and republican strategist joseph pinion. Good morning to all, great to see you, hank, lets get into the retail story, nice numbers from lowes, the stock is soaring right now, up better than 6 , what does this tell you where we are in retail and the broader economy . Well, it tells you a couple of things, big picture in the retail space is very clear, maria, there are winners and there are losers and very little in between, lowes is in the category of a winner. It shows that theres pinned up demand for people particularly because its springtime to go in and get the stuff for their loans and other necessities. I think we have a reopening story that could be very powerful here as consumers get back to their animal spirits and consume. Maria yeah aalli mccartney you have stock up 8 telling the story of real resilience here. All 50 states reopening in some capacity today, alli, how does that tell you about how to invest ant the the economy right now . Alli lowes is a great example. I looked at credit card data over the weekend and travel and leisure down 90 , one of the biggest beneficiaries was home improvement. We are spending a lot of time at home. Whether its buying one or two things. Average ticket price or average sale price larger than usual. I guess the question is how much business continue. Do you see this as sort of a buying forward and pulling demand forward for a lowes or do you think this can continue for the next quarters . Absolutely. It all really depends on the reopening and getting businesses and back into production and employees back to work. You know, right now fiscal stimulus is the bridge in terms of payments to the unemployed, so that is the variable here, is reopening occur without hitches and only time will tell, certainly theres got to be buy ahead here. Lowes isnt too far off where it was at the beginning of the year and here we have today 15 Million People unemployed, probably higher than that, so there is a little bit of anticipation that we are going to return to somewhat of a normalized economy in the second half. Maria we will see what happens, Dagen Mcdowell, there are expectations of growth in the Third Quarter and certainly a real pickup in Fourth Quarter in 2021. Dagen ive expressed this before, businesses will be shut down forever, we have a very leveraged economy both on the business side and on the individual side and youre seeing Large Businesses, Small Businesses go under and Large Businesses really, really hunker down and taking a conservative stance in terms of growth. I know people across industries, they feel lucky to have jobs but they have taken dramatic pay cuts that theyve been told are permanent. 50 pay cuts so im not sure that everybody is looking at what the other side of this looks like, whether we are in for extremely slow growth for years and thats what treasury secretary Steven Mnuchin was talking about yesterday in front of Senate Banking committeement run it is risk of permanent damage and hes right. Maria mnuchin and powell yesterday facing the Senate Banking committee. We had some pointed questions about economics response of the pandemic, take a look. On main street and frankly all of the facilities, we expect them to be stood up and ready to go by the end of this month. I wont say it wont be a day or two in june but thats our expectations and the funds should be flowing directly up to that. And in the Second Quarter of this year we are continuing to see large unemployment and other negative indicators. Its important to realize that the number number represents real people, this is why its so important to bring people back to work in a safe way. Maria dagen. Dagen end of the month, thats too late for the fed to get the main street fed lending program. The program is exceedingly complicated. The fed is worried that its going to become a dumping ground for bad loans but the terms are so onerous that a lot of businesses will not step up and get money from the Federal Reserve. This has this is again why treasury mnuchin is talking about opening up the economy. Thats the only solution to prevent something catastrophic. Maria hank smith, we are about to speak with ceo of moderna live, except, of course, yesterday with most recent report poking holes in it, are we going to need to see a vaccine in order to get the markets to have confidence or do you think its partly the markets ing that this too will end, wheres your take on where we are, real quick. Next pillar is reopening. And if youre looking into the market we will have plenty of downdrafts in order to take advantage of buying in. We will have volatility. Maria all right, we will leave it there. Thats what we want to see. Thank you so much. Good to see you, hank smith joining us. Top stories we are watching this morning, today connecticut joining the rest of the country in phasing getting back to business. Weve hit the metrics, we are exceeding the metrics, i think we can proceed on a very thoughtful basis with those businesses that are least likely to be dangerous and most likely to have a real economic value for the state. Maria the governor of ohio has lifted the stay at home orders for the state, however, he is banning Mass Gatherings and restrictions on bars and restaurants this morning for for ohio meanwhile treasury secretary mnuchin says unemployment money will go to americans who want to work. If you offer back a worker and they dont take that job, the theyll be required to notify the local Unemployment Insurance agency because that person will no longer be eligible for unemployment. Maria this after lawmakers increased jobless benefits after covid19. Many individuals collecting more on unemployment on than on the job. Weve been talking about this for week, additional 600 was added to Unemployment Benefits to those who lost the job. Republican lawmakers have been expressing concerns that that added benefit keeps Many Americans from returning to work because theyre making more to stay home than they are on the job. President trump announcing a 19 billiondollar program meanwhile to help farmers and ranchers hurt by the covid19 pandemic, 16 billion will go directly to farmers and ranchers under the cares act. Remaining 3 billion will buy food for needy families. Farmers and ranchers can submit applications to receive assistance on may 26th. State of emergency declared after two dams collapsed in michigan. Forcing people to evacuate. The city of mid lan could be under 9 feet of water this morning. Dams giving way after dais of heavy rain, we are just Getting Started this morning, coming up in the next hour, we have exclusive interviews coming up with the ceo of Delta Airlines Edward Bastian on ticket demand and the ceo of moderna, the company of the day stephan on vaccine, dont miss a moment of it, we are getting into it after this break. Or make me feel like im not really there. Talk to your doctor, and call 8442342424. Maria welcome back, investing the orgpoints russia probe, new information, lawyers for former National Security adviser Michael Flynn requesting the court of appeals dismiss flynns case immediately. District judge Emmet Sullivan pausing flynns case last week even requesting an investigation into whether flynn committed perjury when lying about his contact with the russian ambassador. Last night on Hannity Flynn lawyer Sidney Powell weighed in on the case. He must grant the motion to dismiss that the government made. Its a case and controversy issue under the constitution, separation of powers issued under the constitution and the law is clear, he doesnt have authority to grant it. The case is over. Maria this as Senate Judiciary to release findings on the russia probe before the 2020 election. Chief Political Correspondent fox news correspondent byron york. Thank you for joining us. Byron good morning, maria. Maria we have new information in terms of the unmasking, details that show susan rice in an email to herself said that fbi director jim comey had no knowledge of Michael Flynn sharing classified information with the russian ambassador, she write this is down, whats troubling, byron, we are just seeing this now. Why is it that they have been sitting on all of this evidence and its obviously exculpatory evidence thats coming out in dribs and drabs, whats your reaction . Byron susan rice wrote this kind of odd memo to herself, basically at the very moment barack obama was leaving the white house and donald trump was coming in on january 20th, and she said, you know, president obama did everything by the book, by the book, no problems, so she wrote that to herself and part of the memo had been blacked out when it was release and the question now that we have seen it is why that was classified. There was no reason. A year after the mueller report, 2 years after the nunes memo, there was no reason for this to be declassified but what it does show is the Obama Administration and the president himself considering withholding information from the incoming National Security adviser because they were suspicious about his conversations with russia, which by the way, any incoming National Security adviser would have had. Maria well, i mean, suspicious or really not suspicious. I mean, thats the point. They still did not have any evidence of any russian collusion at that moment and that was june 5th, 2017, donald trump had won the election, he was a couple of weeks away from his inauguration and they still had no evidence of any collusion and so now they are trying to pick stuff out of the sky, well, lets talk about the logan act and then we see that they wanted to entrap him in that ambush in the meeting in january 24th and she writes, she writes this and its blacked out. So who who are how are we supposed to trust that we are getting the right information and honesty from this group of people in the doj and the fbi when we are still getting blacked out information . Byron well, we werent. It was a very long time. Remember, youve talk today devin nunes many times during the course of the investigation and when he was finding out basic things about, for example, the dossier and who paid for the dossier, getting information out of the republicancontrolled Justice Department was like pulling teeth, so its been its been a struggle all along to do this. I mean, the reason this is happening now. You know, i think theres maybe four reasons why this is all happening right now. Its rick grenell, what hes doing as acting director of National Intelligence and Social Security Sidney Powell, Michael Flynns lawyer and john durham, conducting the investigation very quietly but clearly a lot of speculation about it and finally william barr, the attorney general who essentially assigned john durham to this. Without those four people, we wouldnt be hearing a lot of the stuff right now. Maria and i will tell you one thing, if donald trump loses in november, all of this goes away, theyll be no accountable and we will not hear another word about the bad behavior and wrongdoing at the top of the fbi and cia, that we know for sure, byron, good to see you, for sure, obviously we will keep on this. Byron york, some democrats blaming businesses for accepting loans that shouldnt have. Target is reportingly Quarterly Earnings at 6 30 this morning, all the numbers as soon as they hit the tape, stay with us. Maria welcome back, democrats are attacking business loans, treasury secretary Steven Mnuchin answering questions before Senate Lawmakers today with heated back and forth between himself and massachusetts senator Elizabeth Warren. Watch this. Are you going to require companies that received money from this half a trillion dollar fund to have to keep people on payrolls, its a simple question, yes or no, are you going to require that . First, let me say that our number one objective is keeping people employed. Good, so thats my question. Maria meanwhile the wall street Journal Editorial Board out with oped this morning titled treasury secretary warren writing this, politicians closed the economy and denied companies their customers, now some are trying to blame businesses for accepting the loans, government offered, this is unfair and destructive and it would be nice if mr. Mnuchin or someone in the administration would say so. Whats your reaction . Dagen these democrats starting with senator Elizabeth Warren and former Vice President joe biden, they hate businesses, they want bigger government, more government and and accusations again, this is acute little line somebody wrote for Elizabeth Warren because both warren and biden called half billion dollar a slush fund for big businesses. This was an oped that they used. Use today rewarded trump political friends and punish political enemies. What the journal is arguing is this rhetoric is getting in the way of businesses that were shut down overnight to ensure that they come out of this in existence, that they dont go away. Theyre pushing treasury secretary mnuchin to be more forceful on that, but, again, he does he also doesnt want the money and it is taxpayer money to be abused. It is a loselose for the treasury secretary but shame on those democrats, they ought to know better. Maria well, joseph pinion, she called it a slush fund, a slush fund. This is a relief package so that employees do not feel that theyve lost everything, salaries, et cetera and she keeps calling it a slush fund, joseph. Well, is it slush fund or relief for businesses, are we talking about i feel like we are watching two sets of politicians. Those who have never seen bank account in negative. We have real americans stuck in the middle and we have businesses that really dont know what theyre supposed to do. We have to keep money going to those businesses. We have to also to dagens point that mnuchin is in a tough spot because we have to find ways not to have austerity on main street and we need to make sure that we are getting money to americans that need it. Maria we will take a short break. We are spotlighting moderna, ceo is live and we will talk with him and then target earnings out for the quarter any moment, as soon as the numbers hit the tape, we will bring them to you. 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The time when we defy the odds and get back to work while the whole world watches. Yeah, this is your comeback story. And when its time to come back, well be ready. Maria welcome back, another strong number from target on Quarterly Earnings. Lets get to Cheryl Casone with the numbers now, cheryl. Cheryl a few things to look at, maria, earnings per share, estimate 40 cents, they came at 56 cents and the revenue estimate they beat on that as well, it was 19. 04 billion, they came in 19. 62 billion. Digital sales comparable sales up 141 , thats the website story. No guidance, they had not given they told us earlier they werent going to give us guidance for q1, they said they are not going to give guidance for the entire year. Probably not a surprise, they spent 500 million on the health and Safety Measures within their stores and also said that about 80 of their online sales were actually fulfilled by stores which is kind of what we are seeing with the brick and mortar but target was certainly that percent. They follow they follow walmart which had a double beat. I will say the stock is interesting. Down just a little bit but this stock year over year is up 77 , maria, and it was down about 2 year to date. You look at the Broader Market and you look at target stock, interesting dichotomy, they had healthy gains and market share gains across all merchandise categories, we have seen retailers that the essential goods, hoarding that we saw in march, they had seen surge in sales, middle february especially middle of march, there is target, stock down, maria. Maria im surprised its down given the compstore sales, better than expected revenue beat, cheryl, thank you, joining us to talk more about earnings, moodies target analyst and senior credit officer charlie, charlie, give us your reaction of target quarter. Its better than expected. When we saw the release in mid to late april, i think there was some going on because the company said we are not going to make much money, we are getting beat up on margins, pretty good on the apparel side and home goods side but the numbers are better than we expected. On the expense side, when youre online is driving your store sales and you have instore pickup and curbside and everything else, the costs are higher so the markets have to get and we saw that with walmart yesterday and the impressive thing to me is the online growth. The online is up, driving 10 of the Comp Store Sales and thats impressive. Maria thats really driving retail in general, right, even in this pandemic many of the things that we are doing every day in terms of shopping online, telehealth, telemedicine, teleeducation, i wonder how you feel about that, how persistent it will be and in the meanwhile we have retailers going pier 1 import filing bankruptcy protection, charlie, you have jp penny, j. Crew, Nieman Marcus all filing for bankruptcy. Assess for news retail, do you think theres more retails poised to go bankrupt and where is the strength and where is the weakness in this industry . Charlie well, i think the strength is easy, the guys that reported this morning, target, lowes, yesterday home depot, walmart, cosco has been performing very well. Best buy will perform tomorrow and i expect to do reasonable well. One of the things we are seeing now, of course, is stores being closed, but they will be just fine. I think that what the pandemic has done is just exacerbated an and accelerated the trend which is the rich are getting richer and the poor are getting poorer with respect to retailers and when you look at Credit Rating you see that, that just jumps out of you where the guys at the top of the food chain and amazon gets into that mix as well, are driving, gaining market and driving compstore sales and the folks at the bottom of the food chain dont have the ability to do that because they dont have any money. Maria i see. All right, alli, jump in here. Alli yeah, i think this is this mornings earnings has been a really good window into the haves and have nots of the earning season and i agree completely with the concept of acceleration of trend. Youre talking about very democratic stores that are placed all over the country that are not only high end but can get into not only the Consumer Staples part but the home goods acceleration because they are companies that have been able to raise money and investing amount of money in online experience in the Data Management they have and they are really poised to continue that into the future now that they have been able to continue to build their customer base. Maria charlie, what about this, in terms of what youre telling investors right now, in terms of investing around all of this, where is the safety . Charlie the safety is with the bigger stronger guys. At least you know whats likely to happen there. At the lower end with smaller retailers, we dont know whats going to happen, but once things, once the pandemic effects start to ease we just dont know, we know that they were weak going into the pandemic and we know they were operating in the edge of a razer bus they didnt have the edge to stay competitive, we are seeing, target, walmart, cosco, amazon running on all cylinders ahead of the pandemic. Yeah, theres some stresses, amazon seeing some stress in the margin side because you have seen an explosion in Online Activity that was not anticipated and wasnt planned for and wasnt budgeted on the part of the retailer so they are kind of catching up quickly and they are trying to drink water out of a fire hose i guess and we are seeing years turn into months and they are doing the best they can to keep up. Once we come out on the back end of this, you will find consumers that become more adapt i have to this type of environment. Buying online and picking up in store and a lot of the behavior will remain, i really do. Maria joseph pinion. Yeah, i think i totally agree with your point there, we are seeing acceleration towards the winners in the top and loser at the bottom. My concern, do you believe wall street is paying enough attention to the fact that the Business Metrics simply might not work anymore. We are talking about retail and if you see it bleeding over into places like starbucks and things of that nature, the Business Model need to adjust because model as a whole might not be sustainable in the new reality. Maria yeah, we will watch that. Charlie, great to have you this morning. Final word from you. Charlie thank you, maria. To joeys joes point, it doesnt matter if youre brick and mortar, you need to make the sale. Process will come later after fully integrated. We have to look at this and say you know what, this is going to accelerate that as well where we had to look through whats happening online and see the other side and i think we are seeing it quicker now. Maria all right, we will leave it there, charlie oshea, thank you for joining us, a lot of activity around moderna, we have the ceo this morning in an exclusive Stephane Bancel will join me at 7 30 a. M. This morning. Stephane bancel, live here in less than an hour. Making a buzz this morning, wait till you hear this, stay with us. Its all right here on mornings with maria. Every Financial Plan needs a cfp® professional confident Financial Plans, calming Financial Plans, complete Financial Plans. Theyre all possible with a cfp® professional. Find yours at letsmakeaplan. Org. Maria welcome back, coronavirus marked by and flulike characteristics from the beginning, now number of potential virus symptoms has actually grown including many you may not be aware of, one affecting the brain, joining me right now dr. Mikhail varshavski, aka dr. Mike, great to see you, dr. Mike, thank you for being here. Tell us about the updated symptoms that we need to be aware of. Mike good morning, maria, good to see you. With covid19 what we are seeing in severely ill patients, thats the most important caveats that we had here, the overwhelming majority of people will recover from covid19 and will have rather straightforward symptoms if any symptoms at all but what makes us takes the virus seriously is theres situations where the virus start acting outside of the lungs, first when the virus is quite severe and second is when the bodys own immune system start overreacting into the body and creates inflammation cascade where you essentially have too much inflammation and exaggerated response and it actually harms other organs in the body like liver, brain, kidneys as well as others and the final one is a medication side effect, theres plenty of medications we are give to go patients from hydroxychloroquine, remdesivir, antiinflammatory medications, its possible that patients can have side effects that can cause significant deterioration of other organs outside of their lungs. Maria i mean, one of one of the lesser known symptoms is covid toes, tell us about that. Mike covid toes came into the forefront about 2 or 3 weeks ago when we started seeing pattern, patients having a frostbitetype picture, this redness and we are not 100 sure that this is caused by covid19 but we are seeing a strong correlation that patients who have having covid19 also experiencing this rare skin condition. So what do i tell my patients, if they are experiencing any kind of new irritation on their toes, they should most definitely contact my office or if they have another Healthcare Provider and ask the question whether they should be tested. Theres a whole slew of symptoms that we have discussed from the outset that are important to monitor of covid19. But then the loss of sense of smell or taste, the unusual rash that patients are seeing on their toes, even gastro intestinal symptoms, fatigue can be potential signs of covid19. We are casting a wider net of symptoms that we are now testing for covid19. Maria i dont know, Dagen Mcdowell, jump in here. Its hard to know because you have the symptoms maybe away from covid19. I mean, you know, gastro issues, what do you think, dagen . Dagen as always exact same wavelength because as this list of symptoms grows, people are sitting around across the country thinking that theyve got covid, oh, ive got this and ive got this and when it comes down to it, dr. Mike, by the way, i dont know why the medical community is so late in communicating some of the symptoms like the lost of small and taste because one of the lieutenants at the ems station told me that within first week of shutdown is something that they were seeing. They are slow to come out with the symptoms for the nation, number 1. And number 2, theres so many of them now you basically convinced the vast majority of the population that they had it or have it now. Mike you can be completely asymptomatic and not have any symptoms at all and have the virus. Its tricky for news the Healthcare Community and we have given incorrect guidance that we have switched because we did not expect the huge amount of population to have had covid19 and have no symptoms. The one that comes to my mind first is recommendations on masks. In the beginning of the pandemic we did not recommend face coverings, the reason for this was because we did not understand the magnitude of how many people were asymptomatic having symptoms and spreading the virus and because of that we said, no, the masks are only to protect you, they dont protect you, they only protect everyone around you, so if youre sick, absolutely, wear a mask, but now so many people that arent sick spreading the virus and we told everyone to cover their faces. Maria now people, theres new data suggesting that people are not getting reinfected out of coronavirus, the study of south korea raising the possibility that testing positive twice is more of a fluke than a relapse. Once youve had it can you feel safe that you will not get it again . Mike i dont think you should use it as a security blanket but this is something that ive been skeptical for some time because when dr. Fauci even came on my Youtube Channel we discussed this together that its very unlikely to get covid19 twice based on what we know from past coronaviruses. Now we cant say that with 100 certainty and thats why theres very limited utility to antibodying testing at the moment for individuals, but what it does tell us, maria, once we implement the antibody tests across the board to a city and a state and we know areas where covid19 has been very prevalent, we know that the odds of reopening that area at leaste rifts because we know how many people have been infect and we need to not rush to do and do it with quality Antibody Testing. Maria thank you so much, we will talking about antibodies with the ceo of moderna. Take a look at moderna stock, it is under pressure once again as you see down better than 5 this morning on top of losses yesterday. Report yesterday afternoon said the companys upbeat vaccine report did not show sufficient data and moved a whole market, it is the story of the day and weve got the ceo of moderna here this morning live, stepane bancel answering critics. Coming up i am totally blind. And non24 can throw my days and nights out of sync, keeping me from the things i love to do. Talk to your doctor, and call 8442142424. There are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Maria welcome back, time for the morning buzz, first up finding your soul mate in sickness and in health, singles across the country flaunting Antibody Testing results. Alli, is this cool or cringe worthy. Alli oh, my god, im sort of divided on this one. Where theres a will, theres a way, this is a universal sad and lonely pandemic and everybody is trying to find a way to connect and i just, you know, to dr. Mikes point i would go back to im not sure that this quote, unquote immunity means what it should, very interesting. [laughter] maria its very funny what your antibodies show. How about this, back in action, tom brady officially retiring his patriots jersey and he was caught wearing a Tampa Bay Buccaneers jersey, dagen, how do you like it . Dagen im all over the photos from the tampa i think they were taken by the tampa bay times. Im excited for tampa that tom brady is down there, hes on the team, people are so looking forward to football. By the way, some of the guys, this was a local prep school where they were working out, theyre not social distancing, so i assume that they probably all been tested for covid19. Maria busted, busted on that one. Finally the best thing since life bread, the latest transforming social media home bakers using variety of herbs, vegetables and other ingredients to turn their bread, are you a baker . I dont know what to think of this other than i hope they are being safe and enjoying the festivities otherwise i will be writing next book death at first kiss. Maria i love it, people are baking more, making banana bread, great stuff. We are talking business with ceo of Delta Airlines. Talk state of the travel industry and rise in customer demand. When we will see International Travel come back . The story of the day the ceo of Moderna Bancel will join us. Its moving again this morning, and it is lower. Mornings with maria will be right we customize your Car Insurance so you only pay for what you need back. Liberty. Liberty. Liberty. Liberty. Maria welcome back. Good wednesday morning. Thanks so much for joining us. Im Maria Bartiromo. It is wednesday, may 20. Your top stories, 7 00 a. M. On the east coast. America is getting back to Business Today, today all 50 states are seeing at least a partial reopening this morning. Plus, the search for a vaccine continues. Moderna is under pressure this morning after a report surfaced yesterday, questioning the data on its vaccine from earlier this week. The stock this morning is down 5 andahalf percent. We will speak with the ceo of moderna this morning, live, Stephane Bancel, will join me in 30 minutes to answer critics and give us the latest on the road ahead for the potential vaccine. Retail back in the spotlight this morning, two companies that have remained opened during the pandemic reporting earnings this mornings, lowes soaring after seeing same store sales rise significantly and an 80 jump in online purchases. Lowes shares are up 7 right now, target also had a double beat on earnings and revenue, reporting a digital comp sale soar, 141 . Profits were down, though, as coronavirus costs offset the gains from the boost in sales. Target shares are up, about half a percent. Markets are higher this morning, take a look at futures indicating a rally at the start of trade, dow up 277, better than 1 . S p 500 up 32 points and nasdaq higher by almost 100, better than 1 there as well. This after concerns over the Moderna Vaccine trial led to a late day selloff yesterday. At 4 00 on wall street the market was down across the board, dow industrials up 390, the s p down 30, this market is reacting to any news on vaccines. Delta Airlines Adding Flights as the country reopens this morning, coming up, deltas ceo, ed bastian is here, find out when he expects to see domestic and International Travel bounce back and what measures hes been taking to keep passengers safe. Mornings with maria is live right now. Global markets this morning have a firmer tone. Searching for some direction in europe, the fq is up 7 andahalf, cac is negative, down 18 points in paris and dax in germany is up by 31 points. In asia overnight markets were mostly higher overnight, China Holding its benchmark lending rate unchanged leaving its one year loan prime rate at 3. 85 . There is a lot of expectation that we will see a lot more stimulus coming out of china. Travel amid coronavirus, airlines one of the industries hardest hit by the covid19 pandemic but some airlines saying that the worst could be over. This week reporting slower ticket cancellations and uptick in bookings on some routes. Analysts said air travel will be slow in returning back to normal of course and that flights will likely remain below 75 capacity into next year. Joining me right now in this exclusive interview is the ceo of Delta Airlines, ed bastian. It is always a pleasure to see you. Thanks very much for joining us. Good morning, maria. Maria how would you characterize where we are right now, ed. Do you feel like weve seen the worst at this point or its hard to know. I do think weve seen the worst. Midapril, while everyone was under stay at home orders and International Restrictions were up in terms of travel for every country around the world, we really were at the bottom, we were down probably about 5 of our revenue base that was still traveling, primarily in the u. S. You compare that to today, were up to 10 . So the optimism has developed in the last four to six weeks as we started to reopen our economy, still very much on the domestic side as compared to international but still weve got a long ways to go. Were about 90 down on a year over year basis but making slow and steady improvements. Maria and of course liquidity has been such an important story for you in terms of being able the to raise what you have. Yesterday on the program i spoke with the former ceo of wynn resorts, steve wynn was here. He was really zeroing in on the airlines and how important it is to have that traffic. Heres what he said about the first steps in terms of reopening the las vegas strip. Watch this. As summer is quickly approaching, travelers will be eager to jump in the resort pools, theyll want to go to the casinos and restaurants. What are the plans right now. For las vegas, the first hurdle is the airlines. We have to make sure the service that supported those 160,000 rooms on the strip, that the airport is uptospeed. Otherwise, people will only be able to drive from california. So assuming we get lift from the airlines. Maria this is so important, ed, because the airlines are really the answer, the solution for so many other industries. Obviously, vegas and the hospital industry. What routes are you planning in terms of are you expecting more business . What do you have to say about what he said in terps of the airlines . Well, i agree with what steve said. We need to get our economy reopened. One of the challenges we have in the Airline Space is no one flies on an airplane just to fly on an airplane. They need to have some place to go. They need to have the resorts opened, the casinos opened, the hotels, restaurants, people need to know what to expect when they get to their destination. What im hearing from travelers, constantly, particularly those who are traveling, we still have a meaningful number that are traveling, is they are impressed with the cleaning standards, with the quality of service were providing. They dont have some place to go when they get there. They need to understand whats going to be on the other side of their trip. They need business toss be reopened. They need the casinos to be in place. We are working as a travel ecosystem. I spoke last week at the u. S. Travel Association Board meeting about that very case and were all in this together as we all said. Maria youve said that you want to keep planes no more than 60 full to promote social distancing. New reports that the company will add more flights to keep up with that demand and you could resume service on some routes. What can you tell us about that and about your cash burn right now, ed . The analysts of course are talking about the Liquidity Position and you seem to be having the enough liquidity but where are you in terms of that and how much money the company burns . Our team has done a great job of reducing cost. When your revenues are down as low as they are, you really need to focus on getting your costs out of the system. For the current quarter, that were in, our Second Quarter, our costs are going to down in total 50 on a year over year basis, over 5 billion for delta. Weve done a great job of raising capital through the private markets. We expect to end the june quarter, june 30th, with a cash balance of about 14 billion. So were prepared for a long, difficult winter ahead. Theres no question. Its going to be very slow in coming back but over the next 12 to 18 months im confident travel is going to return and were going to see our economy opened up primarily because of the mobility that were going to enable through the Airline Industry. Maria yeah, i mean, the president when i spoke with the president last week in that exclusive interview said that, look, were not sure about International Travel but people will start moving within the country fairly soon. Certainly he was expecting that. What do you say about International Travel, ed . Is that sort of the last thing that you might expect to reopen at this point . Is that a 2021 affair, do you think . I think International Travel largely is a 2021. We do operate continued routes into europe, into asia, into latin america where we can. Primarily were flying because of cargo. Were bringing medical supplies in. Were bringing essential supplies back to the country. But we are starting to take customers on those trips as well. It say the one market that were seeing the most success on is korea and we are going to be instituting starting next month seven day service to seoul. I think the koreans have done an excellent job, given us a peek as to what the future looks like in our industry. On the domestic side its continued slow but were making good progress. Today our load factor on delta is somewhere around 35 to 40 full, primarily because weve taken many flights out of the system. I was on a plane yesterday. My plane was 5 of full. 50 full. I said once we get close to 60 on an individual route, that will be the trigger for us to add more plane intuse the system. For the month of june were adding 200 flights into the system and in july probably another 2 to 300. Maria that is terrific. I love to hear that. That really makes me feel like were slowly but surely getting back there. How do the planes look at this point . What can travelers expect when they get onboard . Is the middle seat empty . How are you doing social distancing. How about the crew, are they wearing masks. Tell us about that. I welcome you on board one of our planes again, so you can see for ourselves but the planes are in great shape. The 60 load of factor cap is enabling customers to create as much space as they can. Its a different experience than what people were accustomed to historically. All of our crew are wearing masks. We require our customers to wear masks. Weve got electric spraying going on in front of every flight we take. We spray down the interior. One of the things that people arent aware of is the quality of our Filtration Systems onboard our planes. We use high quality, hepa filters, the Industry Standard across all industry where we recirculate the air, the entire air in the cabin every two to four minutes, the same Filtration Systems used in hospital operating rooms. We bring fresh air into the cabin. Over 50 of the air flow that comes into the cabin is fresh every two to four minutes. Its proven to eliminate over 99. 999 of what viruses or anything any particles in the air. So its a very clean experience. Customers that speak to me and talk to me say were really impressed with what youre doing in terms of quality but we need some place to go, we need businesses to start to reopen so Business Traveler versus a client, we need the casinos and theme parks to open, as disney is starting to and made announcements this week. Were walking our business back and were going to need to walk through the entire travel system together. Maria so a stark prediction from boeing, the ceo, david calhoon, speaking out saying that he sees the covid19 pandemic leading to a major u. S. Air carrier going out of business. The prediction was criticized by many Airline Industry leaders. Delta recently announced that it would be retiring its fleet of boeing 777 aircraft. Your reaction to calhoons predict . We know its a tough period with traffic down 90 plus percent, ed. I dont see that happening in the u. S. Internationally we are seeing some airlines going out of business. But in the u. S. , i give primary credit to the president , the administration, leaders on the hill. They were able to pass the cares act and within the Airline Industry we had the Payroll Support Program so as an industry we received 25 billion to keep our employees in place for the next six months through the end of september 30th and the reason we wanted to do that is we needed to see what the other side of this pandemic looked like before we took any drastic actions with respect to eliminating jobs or dramatically impairing our ability to respond when the economys ready to reopen. Our government, theres no government in the world thats been as responsive. Im proud to say. And its kept all the Major Airlines in business. Its going to be a tough go, i think in the next couple years you may see different restructuring activities occurring but i dont agree with daves assessment at all. Maria yeah, i mean, youre right, in terms of the comment. But when you hear it from the ceo of boeing, who is the major supplier, you sit up and listen. In terms of the government, those warrants to acquire give the treasury roughly 1 of delta shares through warrants, obviously. Have you heard from government officials in terms of how you might operate the business differently . Are they having an opinion in terms of how you allocate capital, et cetera . Because when we had Steven Mnuchin on the other day he said the airlines were looking at them as National Security. Yes, secretary mnuchins been a good friend to the industry, i spent a lot of time getting to know him well over the last couple months. No, the governments intent has been to be a passive investor primarily to make sure taxpayers are receiving some value back for the important investment they made in keeping our employees in place. The 25 billion didnt as much go to the airlines, it was going directly to keep our employees, pay the payroll of our of employees for the next six months. Maria its a tough period out there in all industries and they want to make sure employees are not feeling stressed. Youre keeping the crews safe. What kind of expense is this for, you ed . Delta is requiring face masks for customers and flight attendant. One airline going one step further. Have you seen what qatar air is doing . Flight attendants will be wearing disposable hazmat suits on flights to prevent the spread of covid19. Would you consider having your crew wear these hazmat suits, ed or is this one step beyond. This is one step beyond. We want our customers to feel safe. I think if our crews were wearing hazmat suits, it would scare our customers. They would wonder why theyre not wearing hazmat suits in return 678. Our cabins are incredible clean. With all the distance requirements, the space were providing, the extra cleaning, the cabin environment is incredibly clean and sanitized and the Filtration Systems are working. So as i said, the customers that are traveling are rating us very, very high on cleanliness and what the real challenge theyre facing is they dont have some place to go and travel to. They all want to travel. People miss travel. People miss interacting and the human spirit. Im glad we can do this through electronic means, but i would much rather sit in the studio having that conversation. Maria same here. Were going to continue to reinspire confidence. Maria were rooting you on. Thank you so much. We have the ceo of moderna right after this. Dest lighthouse has weathered many storms. Seeing the break in the clouds before anyone else. Together, well weather this storm. Find a stock basedtech. On your interests or whats trending. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. Maria welcome back. New questions for the Obama Administration this morning about who knew what and when. A new portion of susan rices declassified email was revealed yesterday. Rice writes this, from a National Security perspective combcomey says he does have some concerns that flynn is speaking with russias ambassador. Comey says it could be an issue. President obama asked if he is saying they should not pass Sensitive Information related to russia to flynn. She sent this email to herself on inauguration day. Your reaction to the fact that were just reading about this now. Shouldnt this have been one of the emails that one of the portions of the emails reviewed a long time ago, that its potentially exculpatory evidence, isnt it . This is another line of another instance of a long line of obfuscation by the Obama Administration. Democrats like to pretend the worst thing obama ever did was wear a tan suit into the oval office. These are the same people that lied about fast and furious, covered up benghazi. Susan rice with that meeting with bill clinton on the tarmac of the airport, every iteration we have is more and more evidence of an administration that was complicit in trying to thwart the efforts of donald trump to become president of the United States. If you continue to see the malfeasance that occurred at the fbi, from an fbi attorney basically cooking up false evidence, to use that as a basis to get a ph fisa warrant to if alleged frame job of Michael Flynn, every time its more democrats behaving badly, pretending theres nothing to see. Maria its a lot of entrapment going on. Well learn more when john durham comes out with the results of his criminal investigation in the next couple months. Coming up, facebooks new office rules, wait until you see what theyre telling employees, were taking a look when we come right back. You cant ride in my little red wagon. Front seats broken and the axles dragging. I am totally blind. And non24 can make me show up too early. Or too late. Or make me feel like im not really there. Talk to your doctor, and call 8442342424. Some Companies Still have hr stuck between employeesentering data. A. Changing data. More and more sensitive, personal data. And it doesnt just drag hr down. It drags the entire business down with inefficiency, errors and waste. Its ridiculous. So ridiculous. With paycom, employees enter and manage their own data in a single, easy to use software. Visit paycom. Com, and schedule your demo today. Staying connected your way youre just a tap away from personalized support on xfinity. Com. Get faster internet speeds with a click. Order xfi pods to your home in a snap. Or change your Xfinity Services with just a touch. All in one place. Youre only seconds away from all of that on xfinity. Com. Faster than a call. Easy as a tap. Now thats simple, easy, awesome. Maria welcome back. Johnson johnson will stop selling talcum baby pow semiconductor in the united powder in the United States and canada. Joining me now is fox news senior judicial analyst, judge an drew napolitano. This has been going on a long time with regard to the Johnson Johnson baby po powder and the debate about its safety. Tell us about it. You know, the baby powder is really j js legacy product which theyve been manufacturing and selling in the United States continuously since 1894. So they faced a humongous number of lawsuits alleging that the talc in the powder caused cancer and guess what, the overwhelming majority of juries found that it did not. But those that found that it did cause cancer, hit j j so heavily to the tune of 5 billion that it just decided to throw up its hands and after 130 years of selling this product in the u. S. Is not going to do it and canada, is not going to do it any longer. It appears they are selling a newer product that has a different absore absorbent in it other than talc and it appears they may be selling their product in other countries countries. J j was terrified by a few verdicts here even though the overwhelming majority of jurors and jurors sided with it. Maria yeah, i mean, thats amazing to me. The fact that the overwhelming result would have been a positive for them but just the threat of anybody else coming in and saying no, no, no, thats not i want to sue you has them stopping the sale of it and something that was their legacy product. Its a pretty big story. Correct. Correct. It is. I dont know what their thinking was. I believe theyre selfinsured, 5 billion is going to hit anybody hard, no matter how well this they are. Their lawyers did a good job. They only lost a handful of cases and won the overwhelming majority. Maria wow. All right, judge. Thanks very much. Judge Andrew Napolitano joining us. Well talk more about that, judge. Its great to see you today. Thank you, sir. Coming up, the ceo of moderna is here, Stephane Bancel joins me to answer critics on the vaccine trial results from earlier this week. We will take a look at the prospects for a vaccine coming up from moderna. I am the warrior. Family at home or those at work, principal is by your side. Were working hard to answer your questions. Like helping you understand what the recently passed economic package can mean for you. Were more than a financial company. Were a together we can get through anything company. Now, more than ever. I want to show you something really important. Are you guys ready for some weirdness . 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Find yours at letsmakeaplan. Org. Maria welcome back. Good wednesday morning, everybody. Thanks so much for joining us. Im Maria Bartiromo. It is wednesday, may 20. Your sto top stories right now. Markets are pointing to a rally, futures en indicating a gain of7 on the dow, s p is up this morning about 30 points. This after concerns yesterday over modernas vaccine data that led to a late day selloff for the broader averages. As you see the dow industrials was down 390 points, moderna also traded lower and the companys ceo is going to be joining me in a moment to talk about the potential vaccine from moderna. Gloglobal markets, european inds are searching for firm direction, fq100 up 9 and a quarter, the cac is down 25 and dax index in germany is up 13 andahalf. In asia overnight markets were mostly higher, China Holding its benchmark lending rate unchanged, leaving its one year loan prime rate at 3. 85 . We are expecting further stimulus coming out of china. Two Big Technology Companies Reportedly announcing major changes when employees return to work. Cheryl casone with details now. Cheryl. Cheryl going to be hearing a lot of this, good morning again bloomberg says in bum othe numbf facebook employees will be capped at 25 when theyre allowed back in the office in early july. Employees will have temperatures checked, work on multiple shifts and wear face masks when theyre not social distancing. Google will also limit capacity. The ceo of googles Parent Company alphabet telling tech podcast capacity will be between 20 and 30 by the end of 2020. A separate report says workers who need to return to the office can start next month. Toy maker mattel expanding their new line of toys honoring workers on the front lines of covid19. The thank you heros collection includes uno cards, building sets and match box cars. The collectibles adding to the huer rows action heros action figures. All proceeds are going to go to help those affected by the virus. There is a yeartodate chart of mattel. Still a bit of pressure over the last year. And here is a look at what is trending on foxbusiness. Com. Belmont stakes set for june 20th without fans and it will lead off the triple crown series. Youtube pursues tv advertisers with new programs, they will let brands by ads through the smart tv app, trying to retain ad revenue. And this one, tourists and high end shoppers slowly returning to rodeo drive. The street opened for Curbside Pickup for now. Those are your headlines. Back to you. Maria Curbside Pickup on rodeo drive. Got to love it. We are zeroing on a vaccine this morning. Modernas race for a vaccine is raising questions, scientists are saying moderna did not disclose sufficient Critical Data to assessing its covid19 vaccine. The Biotech Company reporting very positive results earlier this week from an early human trial which showed that people given its potential vaccine generated antibodies to the virus and joining me right now to talk about all of this is the ceo of moderna, Stephane Bancel. Its great to have you this morning. Thank you very much for being here. Good morning, thank you for having me. Maria and i know that youve invested so much in this over the last 10 years so im going to get to that but lets talk about first the most recent concerns and two vaccine experts interviewed by stat news report that the company has yet to publish your studies in scientific journals, they also pointed out that the company disclosed results from only eight of the 45 participants meaning that the majority of outcomes remain unknown. What can you tell us . Yes, so we on monday morning shared interim positive phase one data, so as the press release, it was interim data. Ii want to remind that the study is being run by nyad, the division of the nih led by dr. Fauci and theyre under study and they analyzed all of the samples. What we showed is that the low dose and middle dose we have all the positive up to that data cut that showed antibody at or above the level of convalescent and we shared that of eight of those, we had neutralizing antibodies, answereds that will bind and neutralize the virus. We have only eight of those because it takes a longer time to analyze the neutralization assay. Thats the data we had as of the first day. Maria will you be publishing in scientific journal this information on the first human trial . Yes, obviously. One of the reasons that we only shared topline data and not the full data set is to preserve the ability very soon for nyad to be able to publish the data in a peerreviewed medical journal and thats what they intend to do and that is what we have also done as a company in the past. So were not changing our policy. Maria i think this is an important point that you make. Because another concern that was talked about yesterday was that the National Institute for allergy and Infectious Diseases has not said anything about this information even though it was partnering with moderna but yesterday the Vice President tweeted this out. Vice president mike pence tweeted this out on monday saying in our call with governors today, dr. Fauci shared exciting news from Biotech Company moderna, the first potential Coronavirus Vaccine has shown promising results in a clinical trial. 45 participants received two doses of the vaccine and all 45 produced antibodies. So you did get the weighin from dr. Fauci although that was one of the concerns that we hadnt heard from him yesterday. Yes indeed we were happy to see that tweet on the internet. Again, i go back to what i said before, which is those are interim data. They are early, obviously. Its a small data set. All the things we said on monday that is in the press release. But they are encouraging data. This is what dr. Fauci seems to have said at the meeting. Obviously, i was not there. And thats why we are encouraged and we are moving as fast as we can. There is a lot of suffering, people are dying. For the last four months our team is partnering with the nih, working hand in hand with the fda. Theyve been remark an remarkabs of their quick response. Weve gone from a sequence of a virus to interim phase one data. Theyve given us the green light to go into phase two and we are in final planning to start a phase three with thousands of subjects as early as july. Maria and i think this is why you had the buyin from fauci and from the government early because the scale that moderna has built up in the last 10 years, getting the ip in place, using software, using hardware, i want to talk about your technology, that the government can come to you and say, well, we need a billion doses and we need you to manufacture this because you worked with them for the last 10 years. Can you talk to us a little about the investment that youve put into this before these headlines of the last week . Of course. Maria over a 10year period. Its nine years old, we have invested literally billions of dollars from investors to build the science correctly. We published extensively over the years. Weve partnered with merck four times. We partnered with astrazeneca three times. We partnered with the department of defense, the Gates Foundation and the zika vaccine thats in the clinic, we shared the positive interim phase one data that is also very encouraging on the zika product and with dr. Faucis team weve been working for almost two years now on a different kind of viruses and vaccines and the reason we are able to move so fast with them is that on whatever vaccine worked together on is the middle east respiratory syndrome that happened in the meat a few years ago in the middle east a few years and it was also a coronavirus. All the work that weve been doing with the division of dr. Fauci was very helpful because we could just on the sequence of the virus, established by the chinese authorities, we could use that information to design very quickly a vaccine and we not only reported interim positive phase one data, we also reported on monday that we showed in an animal model full protection where basically you vaccinate the animal and then you give them high dose of a virus and we could demonstrate we had very, very reduced level of virus in their lungs. Maria i see. So then what do you think of this latest stat report then . I just think that, again, they said things that we think the same thing which is why it is quite surprising. We say on monday this is an interim phase one study and it was a small number of subjects. Neutralizing antibody, eight subjects, its in the subtitle of the press release. They say the data was not published. This is topline data. It will be published very soon. Were talking weeks, not months and they say that they reached out to nyad and no comment. I dont know who they tried to talk to. The only thing i know is what the Vice President said about the comments that dr. Touch eye made to fauci made to the governors. Maria thats a very good point. You dont know who they spoke to. We heard from the Vice President. Tell me your level of confidence on phase two and phase three. We have a platform, this is not the first vac seen. This vaccine. This is the tenth vaccine in clinical studies. We have partnered with barta on zika. We partnered on merck with a respiratory virus called rsv. We have those very close now to 2,000 Healthy People with different vaccines around the world. The fda has seen the data over the years and we believe that our platform has this very interesting feature, which is basically genetic molecule that we inject in a humans arm like a typical vaccine and your body is going to read the instructions we give you to make one protein of a virus to infiltrate the immune system. Whats interesting about the technology which makes us cautiously optimistic about the phase two and the phase three, i am cautiously optimistic because of the data i have seen over the four years in all of the vaccines and you see a very small variation between different humans that get the vaccine and thats very encouraging as we go from thousands of people, the phase two is going to be 600 subjects and the phase three where we have notif not finalized the l size with the fda is going to be many thousands of people. Maria sounds like youre optimistic about phase two. You did a big money raise this week, more than 1 billion, 1. 5 billion or so. How will that money be used and tell us about your r d. Youve got other things in the pipeline that youve been working on. How do you allocate the capital from the money raised this week and how does that impact the other drugs in the pipeline right now . Yes. So the money we raised this week as we said in our s4 that we filed with the sec is to be used to build the manufacturing capacity, to be ready if the vaccine gets approved. Which of course we are hoping for. Because of all the suffering thats happening around the world. What were trying to solve for is the following. If we wait to invest in manufacturing capacity when we have potentially and hopefully fda approval for a vaccine, we will not be ready to supply the United States or other countries with a vaccine that would have been approved and that would be of course awful from a Public Health standpoint and so what we are doing with this capital that was raised monday night is were going to buy new equipment, were going to buy raw materials, were going to hire more employees that we have to train because its a very regulated industry. We have to be very careful and follow protocols so we make the products correctly to ensure safety of people that will eventually potentially get this vaccine. Maria let me ask you about your manufacturing capability because youve got the norwood facility in boston which is a beautiful facility, a lot of technology there. I want to ask you about robotics and what youve done in terms of software and technology to move this forward but also i want to get your take on outside of the United States. We know that youve got the manufacturing capability in the United States. What about exu. S. Are you going to build that on yourself. Are you going to take on a partner for e taxe exu. S. We have a state of the art facility that is fully integrated. We make the materials, we put lipid, the fats to deliver it once you get injected and we put it in vials. Its a fully integrated plant, fully digital. Everything is highly documented to ensure quality and safety of a product. And this is done using computers. To remove human mistakes. Thats for the u. S. This facility as we said in the past is able to roughly produce at full capacity with process scaleup and going 24 7 around 100 million dose, if you assume 5 of micro gram 50 micro gram dose for this vaccine. In the case of a global pandemic, it is obviously not enough. What we announced two weeks ago is a very strategic longterm partnership with lonza, one of the biggest and largest Swiss Companies and theyre allowing us through their infrastructure and their factories to potentially build manufacturing capacity to deliver up to 1 billion doses, again, at the 50 micro gram dose. Maria that is amazing. A billion doses. Do you think youll have a vaccine by yearend . I know youve got the phase two trial in july. Yearend vaccine or next year . So phase two is going to start any day. We got the green light from the fda. Phase three will start in july. It is possible, assuming a best case scenario, and there are many risks that could derail us shall obviously, but we could potentially be in a position to file for the fda toward the end of the year or early next year. Again, its best case scenario. Maria and that is the music to our ears. Stephane bancel, thank you very much for joining me. Well be watching the developments. Thank you, sir. Well be right back. With decisions focused on the longterm. And crucial when circumstances become difficult. That continued emphasis on people our advisors, associates, clients and communities gives us purpose, strength and a way forward. Today. And always. Maria welcome back. Well, Contact Tracing is considered key to stopping the spread of coronavirus. But states are launching Contact Tracing apps to help keep residents safe. Theyre having a tough time. Joining me right now is the cyber guy, kurt knutsson, to explain why and kurt, this dove tails into a privacy conversation, doesnt it . Man, it sure does. Good morning, maria. Of all the tools in the arsenal to identify and prevent the spread of covid19 infections, technology has the most potential. Thats if tech gets it right. You just have to ask any tech official. The usefulness of the Contact Tracing app is whats happening is as people move about their day, all the time information is being stored and theyre actually connecting to other people who might have the Contact Tracing app. If that person then goes into the app and says hey, i have covid, it will then be able to pull up that information and send an anonymous message to those people that may have had contact with that phone during the infectious period. And heres the deal, maria. You know, it sounds simple enough. This is not what uscs head of health, nor the rest of the country is really seeing with this. In fact, were seeing a lot of glitches instead. The biggest of which is a big tech trouble of bluetooth accuracy in the location. Sometimes the phone might be three feet, six feet, cant really tell if its 10 feet away from another phone so that accuracy is questionable. Then comes the idea that there are reports out there that already people who have this enabled come very close to one another and it never registers the phones. Theres a lot to work out there. Number two is the fact that people simply are not interested in the states that have this of downloading this app. So thats the second problem. And maybe its because of the privacy issues. If you take a look at the states first with Contact Tracing apps, really the state that pops out here, youve got rhode island, south dakota, north dakota and utah. Utah asking if you look at the app and download, its called healthy together. Good try at this but, man, its knocking on privacy door here. They want your name, email address, they want complete access to your contacts in your phone and location, bluetooth data and it goes on and on. Dont say goodbye to it yet. Were just at the beginning of this. Maria okay. Kurt. Well be watching, a lot of things to discuss there. Kurt knutsson. I am totally blind. And non24 can throw my days and nights out of sync, keeping me from the things i love to do. Talk to your doctor, and call 8442142424. Staying connected your way youre just a tap away from personalized support on xfinity. Com. Get faster internet speeds with a click. Order xfi pods to your home in a snap. Or change your Xfinity Services with just a touch. All in one place. Youre only seconds away from all of that on xfinity. Com. Faster than a call. Easy as a tap. Now thats simple, easy, awesome. There are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Maria welcome back. Time for the morn buzz. First up, the hundred Million Dollar podcast. Joe rogan inking a deal with spotify to air his show by the end of the year. Dagen, youre a loyal listener here. Youre the first one that brought up joe rogan on the program. Are you going to use spotify or are you going to need to subscribe dis i have spotifys app. The show will continue to be free on spotify. It will be on other platforms starting september 1st when it begins airing on spotify. By the end of the year, it will be exclusive to spotify, including full video versions of the show. I suspect the deal is worth more than 100 million. It feels like when howard stern moved to satellite radio. More and more i get phone calls from friends and even relatives asking me, i dont get this joe rogan podcast. Its disorganized and rambling and it just they dont get to the point and i dont have three hours of my day and i said well, you need to maybe smoke some weed so youre on the same waive lent. Maria the elon musk podcast certainly introduced joe rogan to a lot of people who were not following it before that. Dagen musk has been on more than once. Sometimes he gets a really good guest. Sometimes its just like two bros just shooting the you know what and just rambling and its not funny, its not really anything. So sometimes i listen to it. Sometimes not. Maria well, good for joe rogan to get a deal with spotify. Lets take a break. When we come back we are talking politics and business with former white house chief strategist steve bannon. He is here live. How would you like to be the ceo of the company with the hottest product on the market. The ceo of clorox is here with United Airlines Clean Initiative and the clorox wipes, next hour, stay with us. Adversity came to town and said, show me what youre made of. So we showed it our people, sourcing and distributing more fresh food than anyone. Our drivers helping grocers restock their shelves. How were helping restaurants open popup markets. And encouraging all americans to take out to give back. Adversity came to town. So we looked it in the eye. And it wont be us. That blinks first. Will it be familiar streets . Or perhaps unknown roads . Wherever you may go, lexus will welcome you back with exceptional offers. Find a lexus for every road at lexus. Com. No payments for up to 90 days on all 2020 lexus models. Experience amazing at your lexus dealer. Thanks for joining us. Im Maria Bartiromo wednesday, may 0 top stories 8 00 a. M. On the east coast on the button america getting back to Business Today all 50 states are seeing at least a partial reopening, plus, the search for a vaccine is on moderna shares off the lows after ceo Stephane Bancel joined me answering critics from a report over data on vaccine said company will accomplish in scientific journlz in weeks not months phase three going to happen fweez going to happen any day phase three for july for that vaccine vaccine stock higher retail back in the spotlight two companies have remained open during the pandemic reporting this morning, earnings, lowes soaring after samestore sales up 80 jump on line purchases stock this morning up better than 6 target were also a double beat on earnings revenue digital comp sales soared 141 profits of down coronavirus costs offset gains, shares up 1 , market is pointing to a higher opening for the broader averages check out rally Dow Jones Industrial average up 228 points s p futures up 32 nasdaq futures hire by 93 after concerns over Moderna Vaccine yesterday, led to a late day selloff dow industrials down 390 points 4 00 on wall street nasdaq down 49, s p was lower by 31 United Airlines partnering with clorox, the ceo of clorox here joining me live 30 minutes time on new partnership, how the company is trying to meet demand risen 500 , during this pandemic, delta looking back to the skriez ceo bastian joining me a while ago telling me seeing demand come back adding hundreds of flights june and july reducing capacity to allow for social distancing. A lot of breaking news in that we bring more coming up controversy over flynn case deepening a newly classified email from former National Security adviser susan rice shows she tried to protect obama and blame jim comey, mornings with maria is live right now. Global are markets mixed european indices searching for direction ft 100 up 19 cac quarante paris down 18 dax in germany higher by 23 in asia overnight markets mostly higher china tolding benchmark Interest Rate unchanged leading leaving rate 3. 58 markets fractionally moving in asia overnight. Dagen Mcdowell Joseph alli mccartney great to see you. A lot coming up first top stories that we are watching right now, today connecticut joining the rest of the country in getting back to business. We hit whos metrics exceeding those metrics i think we can proceed on a thoughtful basis for businesses least likely dangerous more likely economic value for the state. Ohio governor lift staying at home orders bans on being mask gatherings, restrictions on bars restaurants stay in place Steven Mnuchin saying unemployment money goal only go to americans who want to work. Offer back a worker, and they dont take that job, the the there will be required to notify local Unemployment Agency because that person will no longer be eligible for unemployment. This after lawmakers increased jobless benefits due to covid19 but many individuals collecting more money on unemployment, than actually working on the job why come back . Republican lawmakers the expressed concern this added both of will keep americans from returning to work. The president wants country opened. Ceo of moderna joining me live pushing back on report that cast doubt on test results of the potential covid19 vaccine findings show people given treatment created antibodies to the virus i spoke with Stephane Bancel the last hour. We have been able to go from sequence of a virus to via we are given a few green light to go into phase two. And were final planning to start phase three thousands of subjects as early as july. Maria now report yesterday, from stat raised questions because 8 people developed neutralize antibodies in the trial bancel says all data they had at the time they are expecting a potential vaccine by year fend not beginning next year. The stock had been down further it is now flat on the session, ceo of Delta Ed Bastian here warned a rough winter for the Airline Industry bastian telling me a while ago he is confident Domestic Travel will return next 12 to 18 months but could take longer, for International Travel. I think International Travel largely is 2021 we do operate continued routes into europe, Asia Latin America where we can. Primarily flying because of cargo, brings medical supplies in were bringing essential supplies back to the country. But we are starting to take customers on those trips as well, would i say one market that were seeing the most success on korea going to be starting next month sevenday service to seoul in china. International air popularity Association Says does not expect Global Travel to return to normal until at least 2023, economic warnings in middle pandemic Federal Reserve jay powell trshdz secretary mnuchin will fielding lawmakers questions yesterday over economy coronavirus pandemic treasury secretary giving senators citizens pause. I have said publicly i will say againt i think job numbers get worse before they get better i want to be very clear i think june will be a very difficult quarter. Maria joining me right now former white house steve strategist steve bannon to talk about that great to have you here thank you so much joining us. Thank you. In terms of this economy steve you had another bomb thrown at it at us yesterday with mnuchin and powell saying june is going to be worse than may you are former chief strategist of white house what do you tell President Trump into election where he is the business president that is supposed to be leading growth weve got these kinds of numbers. Look, every day is election day, every day is november 3 i think if you look at message yesterday, i think it is quite reassuring President Trump chairman powell secretary mnuchin are on point on this number one secretary powell said hey we support it flooded zone with liquidity to report assess classes on debt side more sfier power if we need it mnuchin i thought very specific, he says look we understand we have had demand destruction i am focused on that, and at appropriate time there could be another relief package to focuses on Small Business cash into consumers hands going to take care of demand destruction the president is greatest jobs president weve had sense fdr this is don dons wheelhouse the ceo yesterday from Flow Corporation in resh monday virginia advanced manufacturing plant dealing all three phases how you make generic drugs precursors, api advanced manufacturing sief bringing supply chain back from china president going to end of the week to ford motor we had quote unquote crisis ventilators 60 days ago today we are net exporter of ventilators manufactured in United States of America American jobs for American Workers if you look at powell asset side mnuchin demand side President Trump, he focusing on jobs, i think you are seeing them come together today is opening people want this done rapidly smartly safely the American People demand that want politics aside, and i think President Trump has right team i think headed the right direction. Maria you mentioned ceo of with us yesterday flow ceo degreed wards, he just received the largest contract ever given out by hhs, bringing manufacturing back to the United States, specifically in the pharma area watch this. How are you going to move needle to get Pharma Companies to do this bring manufacturing home . You say you can do it without their help. Well we hope this is going to light a spark and there will be multiple companies who follow the model here our goal is to start with those essential medicines at most risk for shortage, we already started manufacturing medicines in fact within a few months of submitting our proposal we were turned on by federal government in partnership with the Biomedical Advance Research development authority, to get critical medicines into the Strategic National stockpile so our focus is rapidly surge response protect key ingredients obscure our future bringing book domestic infrastructure securing our industrial base, right here at home. Maria so steve, there you had dr. Edwards, i think you make a really good point about manufacturing in United States we are going to talk about china in a second, but we better fire up manufacturing supply lines here right . The Services Part of the economy is getting crushed we have become a services economy, Restaurants Hotels we need that manufacturing side of it for more than just the protection in terms of National Security we need the jobs. Listen President Trump has been a manufacturing president from day one talked that on campaign talked for years like lou dobbs says youve got to bring manufacturing phase back to United States of america it should not be loss on anybody yesterday an interview in china by Major General twhie wrote that book unrestricted warfare how Chinese Communist party is going to try to take down United States he said United States doesnt manufacturer anywhere they have capital advanced technology but we manufacturer everything a strategic advantage donald j. Trump understands that yesterday seminal day with ceo opening up in richmond today Ford Motor Company making ventilators you are going to see supply chain medical but deeper manufacturing supply chain that is going to start coming back this is key point not talk it is Action Action action i think that is why the American People say hey this guy knows what he is talking be is putting shoulder to the wheel bringing american jobs back for American Workers. Maria well there is it also china anning thel president changed the conversation on china, and in middle of this pandemic we get threats from Chinese State media saying maybe we wont send all those prescriptions drugs that are made here America Needs so much if President Trump keeps poking, you yourself a punching bag the chinese you communist party calling you enemy one dedicating 890 second commercial to your personality blasting your personality opeds written about you. In terms of china it wants to be number someone superpower can u. S. Really stop that. Listen this is about the Chinese Communist Party Chinese people are some of the greatest people in the world desent hard working in bondage to totalitarian dictatorship President Trump has great saying no, no games no games the gamers over with Chinese Communist party if you look at World Health Organization the other day an International Panel president xi allowing trillions of dollars economic carnage throughout the world on his watch offered two billion dollars happy talk about maybe having investigation after this pandemic passes, the president of the United States countered with not a letter it with was a bill of indictment on World Health Organization how basically not just kowtowed to Chinese Communist party but covered for them in pandemic led to all this destruction, President Trump understands this fully gauge in economic war Chinese Communist party is visiting on entire world information world propaganda you talked to about coming after me any american in the west or china that stands up to them shows about the slavery they put chinese worker under look they knew what was happening in december covered it up this is why you have all this deaths all destruction donald j. Trump called them out confronted them now thrift savings board saying not putting money into Chinese Companies, bass, friedman sending a letter to say we have to start res registrationering Chinese Companies on merge exchanges getting access to american Pension Funds unless they play by same rules as american companies, look President Trump is not in are punishment bes he is in fairness justice business i got to tell you Chinese Communist party day finally arrived not playing games clear leaders on wall street in media in global corporations, the party at davos their days here held accountable for exactly what theyve done o to their own people and what theyve done to humanity. You make a lot of good points steve you are absolutely right in terms of what the president is doing going to try to limit money of going into international particularly Chinese Companies going to start making sure they follow the rule of law they have to follow accounting rules of United States if they want to be listed on exchanges thank you so much we will be watching your wildly particular war room podcast. Back in a moment. Helping people stay in their homes through mortgage Payment Relief efforts and donating 175 Million Dollars to help hundreds of local organizations provide food and other critical needs. When you need us, wells fargo is here to help. Maria welcome back retail in focus all week target lowes reporting earnings this morning target beat expectations as customers shopping at stores amid coronavirus pandemic lowes soaring this morning premarket seeing samestore sales rise 80 jump on line purchases Comp Store Sales great both companies there are haves hand notes pier one imports announcing closing all 540 stores filing for bankruptcy this year Dagen Mcdowell you know it is hard to swallow some retailers closing neimanmarcus, some favorites are actually unable to make it through this. Dagen right, it is a retail reckoning long coming for say a chain like neimanmarcus, also owns Bergdorf Goodman you are hoping for smaller brands to survive this that being said facebook announced facebook shop new feature going to let businesses post liftings to fibering instagram, Instagram Story for free a huge help but also on in the thiss not havenots there are goods manufacturers channel, Louis Vuitton raising prices, so a handbag 10 grabbed isnt enough . They are trying to basically can when sales are low shut off trying to pad Profit Margins according to business fashion ready for rebound in china. Oh. Chinese customer is real important for retailers japanese he consumers spend a lot of money, i get that, but to raise prices during this environment really bad news. Quick break markets pointing to a triple digit again how Retail Investment banking are driving markets coming up. Stay with us. Well be right back. Principal is by your side. Were working hard to answer your questions. Like helping you understand what the recently passed economic package can mean for you. Were more than a financial company. Were a together we can get through anything company. Now, more than ever. Trading over a month halted after billions in sales fabricated shares on nasdaq luckin received a notice the stock will be delisted the situation i have been referring to over the last two years talking about Chinese Companies not following u. S. Accounting rules, they dont follow sarbanesoxley you dont know what you are buying the stock plummeted continues to plummet 2. 66 a year. Futures tripledigit gain for broader averages this morning we are looking at rally this morning, investors keeping eye on, states reopening, not all 50 states today will either have partial openings or full opening, beginning today the dow industrials up 300 points right now s p up 35, nasdaq up 102 points right now joining me right now chairman ceo of steeple, great to see you this morning thanks very much for joining us access the situation for us, you are optimistic economy will overcome this pandemic. , of course, i am. I think American People are optimistic in our history we will get through this pandemic it is of getting the people back to work safely, and getting economy going again, i am optimistic maria. Maria i know you welcomed a large portion of your workforce back more than may 18, i want to ask you about that let me bring ali mccartney in from ubs. It seems the market is basically trading on around the virus in terms of curve flattening progress around treatment, and vaccines and reopening. I think we can all agree this is acute issues are behind us but what do you think this market needs to really, really take it higher do you think that phase four in terms of not only the rally first week but true stimulus is necessary to get us back to the strength we came in . Stimulus never hurts . Short run deshlt on back end gets everyone concerned look last three weeks market hasnt gone anywhere if you really look at it over since end of april, it has been in a very narrow trading range hasnt gone anywhere sort of a balancing act, on one hand a lot of optimism about reopening and, yet, on the other hand, you know, look at sports as a good barometer this economy will not get back to full productivity wont support facts where they are if we dont gather for supporting events for the next year or restaurants are required to keep 25 occupation at a max market trying to judge vaccine i think a waiz away there is taking this market higher of unfortunately catalysts to take market lower. I know your employees are coming back but your take on Pandemic Impact on business ron what can you say, in terms of the longer term impact here where investment banking, or investing trading, et cetera. What do you expect to be this true impact, on Financial Services . Well, Financial Services look our biggest question is credit, and the the impact of this pandemic in economy longer term on credit Financial Services we are very busy there is a lot to do restructuring of debt whether a corporation or municipality fair amount to do stock picking has going to come back in vogue for firms like us because there is a lot of he differentiation the consumer got a crash course in digit, banking ordering whatever it is, and that is going to accelerate that trend going forward. Are you taking everybodys temperatures before they come in . What kind of safety precautions did you put in place in your safety plan to welcome, everybody back . You know it is interesting, maria we have done a number of things. We have done all of the cd. C. Guidelines, temperatures questionnaires a step further masks, all the sanitation we also have putting in Contact Tracing when you are in our building we dont think we should be doing that when people arent here but we also on a voluntary basis allowed employees coming back to sake serology tests, so that was surprising how many people wanted to do that, so we brought that into our mix of bringing people back, that it gave a lot of comfort for people, i will tell that you. We leave it there thanks very much for leadership we will see you soon, joining tell us ceo of steeple see you soon clorox here to talk about initiative with United Airlines some of the hottest products on the market. Back in a minute. Want to stream thousands of movies and tv shows for free . Okay, showtime turn it up tubi has you covered. Were gonna celebrate yes tubi. Watch now. Maria welcome back, about good wednesday morning, everybody. Thanks so much for joining us. Im Maria Bartiromo. Wednesday, may 20 top stories 8 32 a. M. East coast markets rallying weve got a rally underway open after big Sales Numbers from retail lowes targeting especially when it comes to only purchases wait till you get numbers dow industrials up 300 points nasdaq futures up 97 s p futures up 35 points wearing surgical masks can reduce spread of covid19 up to 57 , Cheryl Casone with details look we knew it was a positive but 75 improvement big number. Cheryl pretty incredible really interesting revealed in Study University of hong kong, one group infected with virus other healthy use a fan to push air towards infected Group Without about masks twothirds ham cities are about infected in a week masks over the infected group about rate of effect ofs dropped 15 masks over group of ham cities are rate dropped 35 Johnson Johnson in baby powered hit with thousands of lawsuits claiming talc taped asbestos j j stands by product going to sell baby powder made with corn starch. On foxbusiness. Com, ceo may extended coronavirus initiated work from home, restrictions access to beaches and neighborhood pool coronavirus has deals on corvettes camaros, cadillacs mercedesbenz good deals out there back to you. Maria thank you, meanwhile, keeping the world clean Clorox Company is facing an Unprecedented Demand for its products anxiety over deadly coronavirus outbreak sparked worldwide panic demand surging as high as 500 households stock up on cleaning supplies clorox announcing a partnership with United Airlines to boost sanitation on flights including enhanced cleaning disinfection before takeoff snack bags include sanitizedwipe color ax raising dividend by 5 joining me is ceo, of the Clorox Company chairman, great to have you this morning thanks very much for joining for having me good to be with you. Well, look i know it has been a very strong quarter, quarters, for clorox did you ever think you were going to be selling number one products in america that the clorox wipes . The to be honest we would all have liked to be without pandemic but it is true a lot of consumers right now northeast disinfecting products in times of need revert back to brands they trust we have most trusted brand in our category sending a lot of colorks products right now to help people in needed. Clorox products completely cleared from store he shelves you increased predicts more than 40 still warning that consumers and cloroxwipes wont be fully in stock until summer walk us through the supply chain tell us if there are bottlenecks on some products. Biggest issue only issue maria is demand. I mentioned it we saw demand spike up to 500 no supply chain in our industry set up to meet the demand like that i am proud of our heroic frontline workers all manufacturing employees how stepping up, we have made a lot more products, last quarter, our sales ll third are parties to continue to make more products help us on the way to make situation a lot better this summer longterm investments already to help cope with hopefully, hopefully cope better with future situations like this should they occur, and keep people safe have more products in store next time. Maria one of those investments new deal you are announcing United Airlines introducing united clen to put Health Safety at fore front of Consumer Experience tell us the partnership you have with United Airlines. Yes, so many people are heart broken they cant visit family and friends everybody wants to go out and travel again this where is this Partnership Comes in, we have partnered with United Airlines Cleveland Clinic i can in partnership the Clorox Company will provide cleaning disinfecting knowhow products in lounges, gate areas terminals also clorox products will be used in between flights to disinfect planes we feel like a great opportunity to make people feel safe, as they get out in the and the country opens. Let me ask you about this, sort of long term because i think some of the things that we are learning we are doing during this pandemic, we will take with us when we get out of this what expectations do you have in terms of partnerships like this united others no doubt making in terms can have long term sustainability here. For our company we think elevated demand for disinfecting products people say home more, more for charcoal hidden value. The key people want to feel safe when they get out more we will pursue a number of partnerships to help people accomplish that, one of them, is going to be a partnership with uber, as well that we are piloting this summer uber cars are going to be equipped with disinfecting wipes safety on peoples minds where we can make a big difference to Public Health for the foreseeable future. Yee i am glad you mentioned uber in addition to the Cleveland Clinic airlines you are trying to do increased partnerships. We serve hospitals in fact part of why, you dont see as many, disinfecting products in regular Retail Stores that we have prioritized are hospitals, caregivers keep us safe it is very important to keep them safe as they do that, and i think a priority, doing the right thing, is a core value as company this is very much, consistent with that value, we have given back to caregivers, go ahead, maria. Maria please continue, you have given back to caregivers. We have also a giving program out, we donated more than 14 Million Dollars products and services, to communities in need also caregivers about 5 Million Dollars, have gone to caregivers to give them personal protective equipment and other things that make their lives easier better at this time. Do you expect organic growth to pick up a number of your peers seeing organic growth does growth at clorox come organically in year or two or through more partnerships. We certainly have very strong cash flows want to put that cash to work always on hunt for acquisitions, but we believe that our brands are going to see so much strength, that we have the opportunity to serve more consumers with core brands will lead to a lot of growth. We will continue to procure more partnerships like the ones we talked about with United Airlines and uber feeling optimistic as company for the foreseeable snurt what area would you see an acquisition for . Health and well on anybodys mind around this company 107 years so i would look there first. Health and wellness, the centers for Disease Control saying coronavirus spreads mainly from persontoperson, not through things like touching surfaces we were all afraid of surfaces do you think that impacts consumer demand now that there is new information maybe we cant get it from touching surfaces we are certainly using wipes to clean. Cdc does recognize our products to be used on hard and surfaces to help stop spread of infection so we continue to believe that we are going to make a great difference here and we will continue to see elevated demand by consumers. Quick before you go do you expect growth in the third and Fourth Quarter do you think the economy comes back sooner or later . I think we will see two effects, we will he will certainly see economy come back we are seeing unemployment in the midst of recession i think will dampen positive impact i think we will see a lot of volatility throughout the the next quarters in the economy. For our company, though, we think we are relatively recession resistant the elevated demand for products we and tailwinds over the next threequarters. Rough time there thank you very much great to talk with you this morning we will see you soon, sir. Thank you, maria. Ceo chairman of clorox ohio senator portman here on u. S. Intensifying crackdown on china wait till you hear about what is happening at universities as it relates to china. That is next. Maria welcome back, china and Vaccine Research theft Justice Department last week arresting a former Cleveland Clinic doctor failing to disclose to tie to see Chinese University and receiving grants, works hospitals labs have been arrested or fired for tie with beijing look at all University Professors, who have been taking money from Chinese Communist government, joining me a member of congress crafting legislation to protect american research, ohio senator member of Senate Foreign Relations Committee Homeland Security Governmental Affairs rob portman thanks for joining us senator. No audio senator rob portman can you hear me now . We want to show you a sound bite from one of your colleagues that was senator tom cotton joined me a couple weeks ago to basically, lay out what has taken place, watch this. Senator cotton was with me a couple weeks ago said that we are seeing University Theft because Chinese Communist party is sendings researchers have into universities stealing our research they want to come up with a vaccine for covid19 before the United States. Senator can you hear me now rob portan. I can hear you now yes. Hi senator trying to get you i have been [laughter] i think talking to myself here senator i want you to talk to us about how significant this issue is i had tom cotton on your colleague a couple weeks ago told me chinese p communist party send references in engineers in to our medical labs and Research Institutions and what they are doing is stealing the information turning around actually filing for patents, to make it appear they actually came up with this research themselves can you lay out the issue for us senator . Maria even worse than that you and i talked about it before i appreciate your following this, for 20 years now, the Chinese Government has been targeting Promising Research in the United States doing it through the researchers themselves. So you remember story about harvard professor recently yesterday of there have been three more last couple weeks arrested individuals signed up thousand tallents Program China has. They pay people to take their refer doing here, that is taxpayer funded so most recent case in ohio actually, Cleveland Clinic Research Getting money from nih paid that person to take research to china set up labs for them in china, in this case this took biological samples to china they steal research they put pat epts on it outrageous happening a long time we are waking up to it thanks to investigation took a year a report put out last year, Justice Department fbi now beginning to put a stop to this by arresting individuals they need more tools we have legislation to tighten it up through the process including, giving Law Enforcement officials tools they need, to stop this really stealing of american technology. One of the issues people are will people do not understand, the National Security risk that is china. You know, for a long time global ceos just thinking about 1. 4 billion people population i want to widgets Starbucks Coffee sell to 1. 4 billion people there big money for me global ceo do these University Professors not understand, that they are being paid by the communist government . Well, i think they are starting to understand it. Because we are exposing it we had a state department, official testify before us in a hearing he made it very clear that Chinese Communist party is using these universities, as a way to fuse research, and economic buildup military buildup, this is a National Security issue, National Economic security issue a military issue because some research is actually military research and funded by places like the department of energy, Issue National science permission to national of hel our tax dollars 150 billion dollars a year for research a lot of return on that Research Good not if chinese come in take that research, and commercialize it use it in some cases against us. Talk about a lot of this in recent China Special on fox nation america versus china. And the point is that Chinese Communist government has been very clear they want to be number one superpower, economically, militarily will do whatever it takes to get there stealing intellectual property, putting military bases across the world. What can we do about it though . It is very difficult to decipher who is working for ccp o who is working to steal for communist party who is a student wants to come to america and learn . Your colleague senator cotton said we need to start limiting visas for Chinese Students wants to study quantum computing a. I. We no, not give them a leg up knowing they want to be number one superpower militarily. Our legacy does very effective job stopping it through the system starts with visas, state department should be permitted to when they know someone coming to access Sensitive Information they have no able to not to grant visas they have to grant them this is Career State Department folks testified before us that is in legislation. Second is, our researcher institutions terrific National Science foundation National Institutes of Health Department of energy basing research but not working together transparent in terms of where grants are going, the right handed doesnt know what left hand is doing we tightened that up requiring people obviously, to disclose on elections to get Research Whether getting money from Chinese Government they dont have to do that there is no law against it we addlawed says it is illegal to hide that information from institutions, and hide from university by the Way University Community Needs to come along they are the ones ultimately being defrauded we tightened up if you have access to Sensitive Information you have to report that allow the state department to know it allow others there you go fbi to take preempt actions to help safeguard innovation. Senator we are showing a graphic all University Professors that have been arrested or have been known now to have taken, money from the communist government, i mean, the issue is china created a number of lobbies in the United States; right . The University Area is one lobby, because theyve given so much to universities, that chairman of universities professors at universities, know that you know china is writing their checks getting money from them they want to push forward, same with hollywood, right . Similar with hollywood. You are right. Chinese communist government paying for movies dictating how movies should be produced, and that is why you see globalists in hollywood saying no china is great keep doing it not recognizing the National Security risk. Absolutely right we need to know that another point of legislation says if you receive 50,000 dollars or more from a Foreign Government any Foreign Government including china you now have to report that make reporting easy to do streamline not trying add burdens but we have to know this information that is the world within which we live weve been naive about it when fbi testified before us late last year acknowledged which is unusual for Law Enforcement i suppose they have been asleep at switch said we should have caught on many years before now on top of it to their credit they have been Justice Department, u. S. Attorneys office fbi are on top of it dealing with it maria frankly, we have been naive allowed this to happen it helped fuel rise of the chinese economy and Chinese Military we want research in this country, we want people from all over the world to want to come to america has been the case because our Research Enterprise is so open, so interesting to them that to be part of it good we dont want for them to misuse that. And misappropriate, our research particularly taxpayer paid research which i think biggest outrage i think there is a balance weve got to reach encouraging research, of course, open to people from other countries to help with research, we have so many crunches benefit from our research we benefit from yourself there al good we want to keep that so a balance they are if we can achieve it. Would you think the rest of the world is allied with the United States not wanting the communist Chinese Party to be running the world. And to be carrying on this bad behavior in terms of theft, and the trapping of citizens, and jailing of preliminarilies all of that senator good to have you this morning thanks very much. Take care. Thank you so much, safety in the skies meanwhile, Qatar Airways announcing hazmat suits for flight attendants we are going to talk about it stay with us. Maria well, dagen, hopefully the next flight you take, you wont have haz mat suits over there with flight attendants. Qatar air is doing it. Keep your feet off of me, all you passengers. Maria great show, everybody. Great to see you. Thank you so much. Have a great day, everybody. Varney Company Begins right now. Stu, take it away. Seize that day. Stuart wait, wait. Maria, you have a fantastic show. You are knocking them flat with bigname guests. I take my hat off to you entirely. Congratulations. Good morning. Maria thank you so much. Stuart i want to see dagen in a haz mat suit. Thats another story entirely. Good morning, maria. Good morning, everyone. Stocks, a little wobbly late yesterday after modernas vaccine test results on just eight patients were questioned. Maria interviewed the ceo earlier. He offered reassurance the tests on thousands would begin in july. We will have more on that in a moment. As for the market, well, look at this. The rally