>> that does it for us, mornings with maria starts right now. maria: happy tuesday, thanks for joining us, i'm maria bartiromo, tuesday july 9th, top stories just before 6:00 a.m. on the east coast, investors waiting on trade decision, federal reserve, jay powell will speak later today and testify wednesday and thursday, markets will be focused on that. dow industrials down 124 points right now, growing tensions with iran, tehran will ramp up enrichment of uranium. vice president mike pence says america will never allow iran to obtain a nuclear weapon. the cost of higher wages, yes, the cost, raising minimum wage to $15 an hour could lose jobs, find out why steve is weighing in, users should say good-bye to

social media giant. mornings with maria begins right now. ♪ ♪ maria: big show this morning, fox news senior strategic analyst jack keane is with us on taiwan arm's sales, texas congressman joining me on iran and china, u.s. secretary of commerce under george w. bush, carlos gutiérrez and former white house director anthony scaramucci, joining us, mlb baseball commissioner and author is here talking about new book for the good of the game, lots of stories to tell when he was

the commissioner and all-star game on fox, don't miss a moment of it, big 3 hours coming up. joining the conversation fox business network dagen mcdowell, wall street journal economic editor jon hilsenrath and washington examiner editor-in-chief hugo gordon. >> getting exciting about that. [laughter] dagen: i'm just laughing -- >> we will talk about that today, i think, but the fed is in a top spot because economic data looked pretty good right now but led the market to expect it to -- to go ahead and cut interest rates, so we have to watch pretty carefully what powell has to say, you know, does he follow through on what he led the market to believe or do they follow through on what they always say that they are data dependent and they don't cut rights. dagen: wall street journal has written extensively about be careful what you wish for in terms of the federal reserve, people are banking on fed cut so

much, one, was is it really going to do for the economy, number 1 other than continue to inflate assets, but number 2, the journal has written about this a few times, if you look back in january of 2001, the dot come started to crash and market roughly 4% at the time, nasdaq was up in a single days 4% in one day, biggest move since crealings -- creation in 1971, after one-day pop, what did the nasdaq do fall in october of the following year. jon: that's exactly the worry, if they cut rates, it might feel good for a while but the downturn that untiles -- follows it, a lot of people who hit it the most. maria: why cut rates when the economy is growing the way it

is. jon: right. maria: another window on how strongly the economy is or not, lauren. lauren: pepsco, one of the first companies to report that second quarter, expectation was 1.50 earnings per share, pepsco, 1.54, that's a beat. revenue slight beat, the number is $16.45 billion, look at this chart, this is a year to date chart of the company as we wait for it to trade in preapremarket right now, up more than 20%, we are looking at report and want to know outlook and also profit drivers as we put down the soda and pick up the frito lays what is driving pepsco and the consumer in the future, maria. maria: is it moving on the numbers? lauren: right before you came to me i had it, let me check one more time and the control room can advise me.

i don't see movement, we don't have movement yet that we can show you. maria: 5.54 versus 1.50 income align earnings look better than expected, we will check the stock as soon as we start to see volume. lauren, thank you, lauren simonetti. the minimum wage another issue, guys, the effect, hugo, nonpartisan congressional budget office estimate that the american could lose jobs in 2025 if minimum wage goes up to $15 an hour, what does it do to others? >> the fundamental thing about minimum change the value doesn't change because someone is willing to pay more for it. if you push up wages without the value of work going up at the same time, fundamental value of it, obviously it has knock-on

effects throughout the economy. maria: small managers have told us, more businesses have told us, raise the minimum wage, i will have to cut jobs. dagen: that's why we allow states have minimum wage, the cost of living is a great deal lower than other parts of the country and more urban particularly in the northeast, i will point this out, people talk about, this was bernie sanders' fight, the union's fight, the fight for 15, that's the flag pole that he's put in the ground. amazon, minimum wage is $15 an hour, wal-mart starting wage is 11 but full-time hourly -- full-time hourly associate at wal-mart on average makes 14.26 an hour, so what people actually are getting paid in this country is much closer to this 15-dollar mark. maria: you're right, look at what bank of america recently did, raising minimum wage to 18 with expectations to go to 20 over the next couple of years.

jon: the key point here is that the most effective policy for low-income workers is allow unemployment rate, if you can get unemployment down below 4% where we have it right now, then companies are going to be induced to raise wages on their own without being told to by states or government, can you get unemployment rate low without creating side effects that we are talking about. right now the economy is in a good place because we have low unemployment and low inflation and it doesn't look like we have an asset bubble yet so we are in a good place. >> raising the minimum wage is for the haves against the have nots. i don't know i don't know one of the important things about the study is that there are trade-offs, benefits, 15 million workers get higher wages, you could say that's a benefit, but there's also cost, there's

1.3 million people lose their job, so it isn't black or white, gray area of policy and i think both sides play this as if it's all bad or all good and that's not the case. >> that's why i mean benefiting the haves. jon: right, absolutely. maria: better working conditions, they are going to strike for 6 hours during tech-giant's prime sale event, amazon responding this morning, says this, we encourage anyone to compare our paid benefits and work place to other retailers and major employers in the community and across the country and see for themselves by taking tour of the facility. your reaction to this, look, just the other day alexandria ocasio-cortez, what did she say, amazon pays starvation wages. [laughter]

dagen: i will say this, amazon is now the great white whale, used to be wal-mart but now it's amazon in terms of the unions turning their focus to amazon to try and unionize the workforce there, so they use tactics like this and they also use language like what you heard from alexandria ocasio-cortez which, by the way, your own city would have benefited greatly from the tax revenue from amazon and the jobs that that company would have brought in. maria: she really blew that one. dagen: using language to cover-up horrible mistake and helping drive amazon at least the second headquarters out of new york. jon: i would say as far as this trying goes, i would say this is a sign of a strong economy and that's good news, right, because workers in a really weak economy aren't going to go out and strike and, you know, put themselves in a position where

they could lose their jobs, this is a sign that once, again, the economy is strong, unemployment is low and workers are emboldened to say we want more. >> i can tell you that people in virginia would be happy to have a facility from amazon in that part of the country which is still -- still just quite frankly part of a waste land left over from all jobs shift overseas when the manufacturing and furniture manufacturing because of the bad trade deals. >> this is a really good point that you make, dagen, it's not just the company sets up in new york or virginia, whatever it is, it's what it does to the community, having a big new shiny community cleans up streets, lights on the streets, creates more activity. jon: not nearly as many amazon jobs in warehouses as they were in factory or furniture factory, it helps communities a lot but doesn't take away from like you

say the waste land, everything that was lost from factories. >> dagen: many americans were hood-winked by politicians who let jobs shift overseas, ship jobs to china to shine up financials and this people in this country traded great-paying job, middle-class life with pension and safety net for crap sold by wal-mart and cosco and sam's club, plastic garbage in front of their front yards and now looks like it's changing. jon: both sides. dagen: it's all politicians and that's why people hate politician. john: and donald trump is popular man in parts of the country. maria: trump's administration response this morning coming up this morning, delete your account, advice from the cofounder of apple, steve,

advising users of facebook to leave the company altogether, the story coming up. can't see what it is yet.re? what is that? that's a blazer? that's a chevy blazer? aww, this is dope. this thing is beautiful. i love the lights. oh man, it's got a mean face on it. it looks like a piece of candy. look at the interior. this is nice.

this is my sexy mom car. i would feel like a cool dad. it's just really chic. i love this thing. it's gorgeous. i would pull up in this in a heartbeat. i want one of these. that is sharp. the all-new chevy blazer. speaks for itself. i don't know who they got to design this but give them a cookie and a star.

hilda, i like the new do. got some layers in there, huh? the more, the merrier. got to have this stuff in the morning. oh, that's too hot. act your age. get your own insurance company.

carlo, why don't you start us with a little bit of cereal? you can spread it all around the table. and we're gonna split the warm hot dog. and i'll have a glass of grape juice to spill on the carpet. oh, uh, do you want some to spill? act your age. get your own insurance company. maria: controversial extradition bill in hong kong now officially dead, cheryl casone with the details in headlines, cheryl. cheryl: so massive protests there, the bill to legalize extradition to from hong kong to mainland china is off the table, reluctance to fully pull the bill might not satisfy protestors, protest leaders say the demonstrations are not going to let up there.

well, the jeffrey epstein has pleaded not guilty for sex trafficking and sex trafficking conspiracy in new york. preying on victims as far as 14, epstein arrested on saturday at airport in new jersey, he's been held until a bail hearing which is set for next monday. get this, steve says drop your facebook, the apple cofounder told tmz he's concerned of loss of privacy due to technology, quote, benefits of fatebook are worth the loss of profit cri, my recommendation to most people is you should figure out a way to get off of facebook, deleted facebook account back in 2018 after news broke after cambridge analytica scandal, interesting he's the voice say to go get off

of facebook. maria: we had roger on this program, a number of times, the co-- one of their lead cofounders, not founder but investors in facebook who says get off facebook, this is scary, that these people who know this company so well and leaders in technology are telling us get off. dagen: i find instagram which facebook owns scarier. maria: you do? dagen: in terms amount of information facebook has about your lives. didn't you figure out that facebook asked you more questions, more details about where did you go to elementary school, what are your favorite colors, movies, books, you name it and compiling the data, what are you doing with it? jon: when it comes about data, what's most dangerous actor, facebook or am, cofounder of apple get off of facebook, apple

has fingerprint -- dagen: what tim cook did pushing back on the fbi when the fbi try to force apple to essentially write code to open the phone of one of the san bernardino terrorists that apple said, we are not doing that for the federal government and went to court over it and i think that that's very telling and -- jon: not popular. maria: we debated, i was worried about my privacy but i didn't like the idea. i came close the other where you were, you came close the other where i was, this is a real issue. dagen: it's been part of the company's mantra from the time that steve jobs really founded it about protecting people's privacy. >> balance between companies cooperating with police and security and -- and people's privacy and i think that, you

know, the debate about -- the whole debate is where the line is drawn with two things. jon: can i make one point to to change about icon, when the people of hong kong stand up to china and china appears, i mean, we don't know where it's going to go, it appears that china has backed down, then that's a real sign that people still have a chance, you know, moment when liberty -- the march of liberty looks like -- >> i lived and worked in hong kong, love hong kong, less than halfway through 50 years that hong kong's separation from china has been, meant to have a separate system for 50 years after the handover, less than halfway through that and china shouldn't be imposing this and very good thing. jon: people said, no, it seems to be working. maria: also important in this

fight that the u.s. is having with china to see the kind of pushback and strength that the people can represent. dagen: we are not the only people who are worried about the overreach and the danger of the communist government and the power and the people took to the streets and hong kong to basically say the thing. maria: 2 million of them. >> washington watches very carefully to see what forces china to back down. maria: for sure, when we come back, judge rejecting johnson & johnson's plea to drop state lawsuit over alleged role in opioid crisis. we've got that when we come right back, stay with us.

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maria: welcome back, futures indicating lower opening this morning, take a look, dow futures down 112 points right now, nasdaq down 42, we are waiting on federal reserve this week, federal reserve chairman jay powell to testify in front of congress, set to make comments later this morning, adding uncertainty of when in fact, we might see interest rate cut, joining us portfolio manager and market strategist michael lee, michael, good to see you. >> good morning. maria: is market trading on on the cut? >> i think so, some questioning of the cuts is coming up. i think there was a big expectation of 50 basis points that is starting to move out the window and as people start to question whether or not we will get basis points we will see short-term selloff in equities. >> there's a question whether they will go half percentage

than the quarter. the other big question is do they do something in july or do they wait and see how the data come in until september to make a final decision about moving, so powell's testimony. maria: would we get anything about that from his testimony, do you think he will suggest july -- i can't imagine this july, frankly, i don't understand what evidence we have to say that we need interest rate cut in july. >> i don't -- i completely with agree with that statement, well, i don't think 25 basis points in either direction would make huge move in the economy, when you start looking at things like the job number on friday and you look at wage growth, up 3.1% in terms of wage growth, 17 to 18 we are up 2.9%, acceleration coming into here, we have 1.3 million more jobs available for people looking for work, you have rates at all-time highs and then you've already got weekly jobless claims and you're

looking at consumer sentiment, consumer comfort, all time highs, it's hard to see why the company really needs a rate cut right here especially when we are far from normal. >> if you listen to the president, the president says we could be at 5% growth. >> i will play devil's advocate, to give you a sense of the dilemma they face, the arguments for why they wouldn't want to move, 1, the yield curve, longer than short-term interest rates, in the past sign of following recession and inflation that worries them, they've also said that they are worried about global growth, not so much u.s. growth but the global economic backdrop and the u.s. data has looked both, there's still uncertainty about the global backdrop. the third one, they pretty much said they were going to do something in june meeting and can't send strong signal of action and back away from it.

maria: like what happened at the end of last year where they we wanted to raise rates 3 times and then completely reversed course with 360 and now talk about rate cut. jon: the economy is in good shape, do they do more to keep it going even stronger. >> i think we get accommodating language but i don't know that we get action, the longer we get inaction we get short-term selloffs which to be would be buying opportunities, you continue to get jobs numbers like friday, the economy has legs and continue to go on, i think we are -- i think the fed, you know, if i was going to gamble on it i bet that the fed stays until after the election. dagen: one thing because i'm a huge nerd and ii asked jon in commercial bank, the fed is not done with the balancing reduction, should be done roughly in september so the argument has been why would you cut when you're still reducing

the balance sheet that you issued that, you let that end. and you can move to -- >> i would say the quicker you reduce it the more ammunition you give yourself in the event that there is a downturn because if we cut from here and say something adverse happens to the economy 6 months or a year from now, what ammunition has the federal reserve have left, up to 5 trillion, are we going the take rates back down to 0, i don't know that the year, continue to reduce the balance sheet you are putting more tools in your tool box. maria: isn't cutting of the balance sheet essentially a tightening? >> yeah. maria: you would be tightening on one end and cutting on the other, how can you do both? dagen: exactly. jon: i'm going to -- the fed hasn't answered the most important question on what they are doing with the balance sheet, not just how big or small but how many long-term bonds they will hold, they haven't resolved the question, there's uncertainty about the balance

sheet, i think you raised a very very important question, on interest rates, they have expectation so much about interest rates that, you know, and the stock market has risen on that, that if they don't follow through on cut is that going to lead to big selloff in the stock market. >> i think it will lead to selloff but nothing like we saw last year, that's your entry point for those of us who haven't been able to get at the higher end and the last thing, the yield curve, so historically you get a lot of noise in first 4 to 5 years, the 2 years, 10 years, 3 month to 10 years, i look at 2's and 30's, that's your best recession indicater, we are still at positive 60 basis which is not that -- that steep but it is positive, so i don't think there's -- dagen: what triggered in part the selloff at the end of last year, was the 10-year, in early november, we are indebted world and indebted nation and we really can't as individuals and government can't handle interest

rates even at 3 and a quarter, that's a sign that the market sent to everybody but with rates at 2% on the 10-year, we don't necessarily need a rate cut to give the markets balance. >> i disagree with that, if rates were higher we would go faster, rates at ultra low levels, banks have no incentive to end to velocity has reached a halt. we will never see inflation and -- maria: would you still buy stocks, like you say you will buy weakness, if there's no china deal? >> well -- maria: bringing in another factor. >> yes, because i think if there's no china deal in the near term when it eventually gets done because it will get done, we have our foot on the floor with china and the deal is going to happen and when you see it happen you see massive rally. jon: what if it doesn't? the president likes tariffs. maria: chinese like to steal

intellectual property, there you go. deal might not get done, we will see. we will see. >> again, if i was a betting man we get a china deal. maria: michael, good to see you, michael lee, u.s.-iran relations, tehran makes another nuclear threat as president trump hosts the amir of qatar. its plans coming up back in a minute. twenty-four people came together to sign an agreement that created the stock exchange. just the right elements coming together. it started when scores more people came together, just down the street and traded bonds that helped pay for the revolution, and the nation it created. it started in an office on the corner

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maria: thank you so much for joining us, it is tuesday july 9th, top stories right now 6:34 a.m. on the east coast, growing tensions with tehran, will start deactivated centrifuge and ramp up enrichment of uranium. vice president mike pence says

america will never allow iran to obtain nuclear weapon, we are waiting on federal reserve chairman jay powell will speak later today and testifying in front of congress on wednesday and thursday of this week, we are waiting for any signals of when the federal reserve may cut interest rates, markets were down yesterday for second day in a row after the strong job's report out last friday, dow industrials down 116 points, almost 1 half of 1%, s&p 501 -- 500 down 14. ftse is up just half point, cac quarante in paris down 18 and dax index in germany lower by 130 points, better than 1%. ireland expresses more concern over risk of no-deal brexit situation n asia overnight only japan was able to end the day in the green, just fraction as you can see, fractional losses pretty much across the board,

judge delivers blow to johnson & johnson this morning, oklahoma court rejecting the drug maker's request to end opioid lawsuit brought by the state, the civil case could cost the company over $17 billion, then this, instagram fighting cyber bullying, a look at new features instagram is rolling out. all the stories coming up this morning, first top story this half an hour, u.s.-iran tensions, iranian officials threatening to take further steps to breach the 2015 nuclear deal over u.s. sanctions, this as president trump is set to meet qatar emir at the white house today, the dinner last night in washington vice president mike pence spoke in washington yesterday warning iran about those sanctions, watch. >> the united states of america and our military are prepared to protect our interests and our personnel and our citizens in the region, we will continue to

oppose iran's malign influence, we will continue to bring pressure on their economy and under president donald trump america will never allow iran to obtain a nuclear weapon. [cheers and applause] maria: joining me right now retired four-star general, chairman of institute for study of war and fox news senior strategic analyst general jack keane, thank you so much for being here. your reaction to iran's provocation right now, what should the u.s. do with all of the threats? >> well, first of all, iranians are in a place where increasing uranium enrichment and centrifuges, because the military provocation that they used a couple of weeks ago to disrupt the flow of oil through the persian gulf backfired on them and we were able to identify them as sabotage and as

a result of that, the iranians have turned a new page, trying to put pressure on the europeans, obviously, to provide some economic relief to the crippling sanctions the united states has imposed and as we predict and focused on fox, above uranium restrictions as offer to europeans that we will go back and comply with the restrictions if you give us economic relief and we will give you 60 days to do that and if we don't do it, likely another increase, so that's kind of what the iranians are doing to set the table, the united states, what are they doing? one, we are talking to the europeans not to give into extortion. i believe the president of the united states is directly involved in some of the diplomacy himself, secondly, strong warnings to iranians

being issued to them, thirdly, we are not anywhere close to double-digits, potential weapon's grade enriched uranium which would give everybody cause and that would be israelis and ourselves and i believe before we would ever do anything kinetically, this offensive cyber to push back on russians in 2018, they did offensive cyber as a result of american drone being taken down, details that can't be reported but i will tell you it is significantly, we will probable you do something like that here before before we do that something ci -- kinetically and the united states has a capability that nobody else has. maria: what about europe, general, don't we need europe, our friends in europe to side with the u.s. on this issue,

will they pull out of the iran deal? i mean, at this point it feels like the europeans are trying to walk the plank on both sides, trying to do deal with iran given the waivers. >> there's no doubt about that. >> europeans are bull headed on staying in the deal. all the other malicious activity that they are obviously conducted when they got the wind fall, $30 billion, the signatories of the nuclear deal thought the money was going to help flush the iranian economy and people the iranian people, wrong, 90% of all of the funding went to aggressive behavior in the region. so the europeans have got to --

the head in the sand and by staying in the deal they would act responsibly, that's not going to happen. maria: state department approving possible arm's sale to taiwan worth $2 billion, interesting move, drawing real criticism from china, of obviou, the u.s. going around, china doesn't like that, what does that mean for the u.s. china relations and what's your reaction to this in general? >> well, i think the chinese clearly look at taiwan as something like martha's vineyard off the coast of the united states but taiwan is a flourishing democracy with strong economy and they are an ally of the united states and we have been providing arms to them for many, many years, china pushes back on this with a lot of rhetoric, they do influence operations inside taiwan and obviously china, taiwan is looking at what's is happening

in hong kong where the people of hong kong are slowly but surely losing their freedom and their liberty as the communist chinese party strangles holds capitalist democratic society inside of hong kong. so the united states will look at democratic and republic administrations as taiwan as ally as we had for almost 2 generations. maria: the pressure campaign is accelerating, look at the 2 million people who took to the streets can hong kong, look at the u.s. dealing with taiwan, you have much of the world's worry about huawei, is this enough pressure to get the chinese to buckle and agree to the terms the u.s. needs them to agree to do a deal? >> i think the more pressure on chinese, the better it helps with the deal. maria: i would think so, yeah. >> 2 million people in the streets in hong kong with

population of 7 million is like 80 something million people protesting in the united states, that's what the equal percentage would be. it's absolutely staggering. maria: it is. >> all generations participating in that protest, largely peaceful, except for the occupation of the legislature. it is -- it is a clear statement that the people of hong kong value their freedom and liberty, quite remarkable what's happening. maria: general, real quick before you go, the president is hosting the amir of qat car today, what do you want the united states to say to qatar? >> one of the problems that we have with qatar to be quite frank about it the support of hamas. >> the muslim brotherhood, right? >> exactly, now why we've had relations with qatar, we have got to get them to knock this off and -- and the other arab states have had problems with qatar as well for the same reasons we are talking about

here and for their support of the iranians. maria: yeah, exactly. >> which has earned the emirates uae and also saudi arabia, so this administration has taken a totally different stand in terms of pushing back on the iranians, pushing back on this behavior in the middle east and i think they have to look clear-eyed and talk to them about what our expectations are going forward. maria: that's what this is about. i feel like it was just what a year ago, 8 months ago when qatar was really isolated, all of these, you know, friends in the middle east were -- were just not dealing with qatar, the saudis especially because of all of what you've just mentioned, its support for terrorism, so we will see. >> absolutely. i think they are important meetings and attempt to change behavior. maria: general jack keane joining us there in washington,

coming up requester's denied, top billionaires in the world giving money advice, subject of new book and we have the author joining us, stay with us. ♪ ♪

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maria: welcome back, opioid lawsuit against johnson & johnson moving forward, cheryl casone with the details now, cheryl. cheryl: yeah, maria, the judge in oklahoma has dismissed johnson & johnson's bid to toss out the lawsuit on grounds the state has presented enough

evidence for the trial to continue. johnson & johnson could face a fine of more than 17 and a half billion for alleged role in opioid crisis, instagram testing new antibullying feature, allow you to restore other users making comments visible only to themselves, instagram will be using artificial intelligence to detect offensive comments and ask the user, quote, are you sure you want to post this, the feature design users to rethink their comments, take a look at instagram, parent facebook, lower 3% in premarket right now. 11-ounce can doesn't have coffee-flavored beer but latte, coffee beans, vanilla flavoring

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maria: welcome back, secrets to success, yes, there is more than one, new book offers inside look at roads taken by more than 20 self-made billionaires, told by their own words, author of the

billion dollar secret, 20 principles of billionaire wealth and success. rafael, great to see you, rafael, thanks for being here. >> thanks for having me. maria: who are the types of people you interviewed and what are their secrets? >> all billionaires are self-made, they are started with zero and created billions of dollars in value, they have created great amazing companies with thousands and ten thousands and sometimes hundreds of thousands of employees and they don't come from wealthy families, they don't come from, not all of them, most of them they don't come from wealthy countries and they didn't get the best education you can imagine. maria: they did it themselves from nothing. >> from nothing. maria: how did they do that? >> perseverance is one of the things. what i noticed, the first point is they were standing on their

feet very early, responsibility for their lives, people around them and they ran into business pretty early, so i can give you an example of friend of mine from brazil, he was born actually in village with no water, no running water, no electricity, no paveed road and no connection to other worlds generally and this guy created one of the most valuable companies in brazil, and he told me because he made ph.d doctor of medicine and the friend of him asked him how can you become a billionaire being a doctor and he said, first, stop working as doctor, you need to do -- become entrepreneurial to go into your business, impossible to become

billionaire as employee, even the wealthiest, even company that we have in the world right now of apple, tim cook, he's not worth 600 million. maria: you won't become a billionaire by being an employee, you have to have your own business and grow it. >> absolutely. maria: jon, what do you think. jon: i want to hear about places, how does geography play into this, what economy you're working in, i imagine billionaires don't go in stifling places like venezuela. >> most people have this stereotype or preconception that you have to be born in great country like the united states in order to become a billionaire, but actually many of the beginners in my book, most of the world's billionaires weren't born in great countries, they either built great

companies and extreme wealth in some of the poorest countries in the world, for example, one of the largest programming companies, 250,000 in india. maria: what an incredible story, rafael, thank you, billion dollar ticket. it's just not right. but with sofi, you can get your credit cards right - by consolidating your credit card debt into one monthly payment. you can get your interest rate right - by locking in a fixed low rate today. and you can get your money right. with sofi. check your rate in 2 minutes or less. get a no-fee personal loan up to $100k. . . . apply that same speed to the ford hurry up and save sales event. for the first time ever get 20% estimated savings on select ford models, plus earn complimentary maintenance

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maria: welcome back. good tuesday morning, everybody. thanks so much for joining us. i'm maria bartiromo. it is tuesday, july 9th. your top stories right now. markets under pressure this morning. we're waiting on any developments on trade as well as the federal reserve. futures indicating a decline of 90 points at the start of trading on the dow. the nasdaq down 37 points. jay powell will be speaking later today. he will also be testifying tomorrow and thursday in front of congress. markets were down yesterday for a second straight day on hopes of -- as hopes of a rate cut began to fade after the strong jobs report on friday. that's what the markets are waiting for. what will jay powell say about the potential for an interest

rate cut later this year? europe pine meaeuropean indicesy lower. cac is down 17 and the dax in germany lower by 116 points, 1% lower in germany this morning. asian markets mostly lower. only japan able to squeak out a gain as you see. it was fractional. the other majors down, about three-quarters of 1% or lower. growing tensions with iran, tehran is warning it will restart deactivated centrifuges and ramp up enrichment of uranium. mike pence says america will never allow iran to obtain a nuclear weapon. virgin galactic has liftoff, making moves to become the first space tourism country to be publicly traded. we'll tell you about the company's plans to go public. stranger things breaks records,

find out how many households streamed the new season of the netflix original. joining me to break it down, dagen mcdowell, global economics editor, john hilsenrath, and hugo gernan. great to see everybody this morning. >> great to be here. maria: big week. >> yeah. everyone's going to be watching fed chairman powell. the market is already pricing in the possibility or the likelihood that there won't be any rate cut. last week's jobs numbers revealed again that the economy is still strong so there isn't a real incentive except for the fact the market expected it and priced it in. maria: the president's been asking for a rate cut. the president said we would be a lot better off if the federal reserve didn't start raising rates at the end of last year. >> it's the politics of powell's appearance on capitol hill that i think are going to be really interesting this week. he has the president after him, saying cut, cut, cut, saying he's doing a bad job. the president is saying he's got a right to demote him or fire

him if he wants. powell has been quoted by republicans and democrats, personal private meetings with them. it will be interesting to see how lawmakers respond to's presence. a lot of them will be offering support and kind of that's powell's way of pushing back on the president, saying hey, i've got backing in washington. it's not just you. >> the president is in election mode right now, re-election mode. he obviously wants the economy to stay strong. will he not do you think get backing somewhat from republicans on rates, even if democrats oppose it? dagen: i think you've got to be careful about cutting rates. at what point do you send the message to investors that the economy's a great deal weak her than people might expect and would a rate cut really help? you have to understand about the president. this is my view from 35,000 feet or however many hundreds of miles away from washington, is that everybody falls into good guys and bad guys and the

president always needs a fall guy. if the economy does weaken he can turn and blame jay powell leading up to the election next year. >> i love that phrase, jackie jawing. dagen: did my father make it up? i'm not sure. i don't think it's nasty, so -- maria: we are in on the doorstep of second quarter earnings coming out. we heard from pepsico, which was better than expected. the preannouncements will drive sentiment as we go into the reporting season. we'll see what the economy looks like from that standpoint. the journal story this morning, we could see a deal in the financial services industry, piper to buy sandler o'neil, according to the wall street journal. we'll see what comes out of that. >> right. consolidation, we're seeing it across many industries and we have to see where that goes. maria: yeah. all right. we've got a big show this morning. coming up, the former commissioner of the mlb, bud seelig is here. fans are gearing up for the all-star game.

plus, sky bridge capital founder, anthony scaramucci is joining us as well as carlos gutierrez is joining us along with jeff van drew. don't miss a moment of it this morning as we continue to watch all of the breaking stories of the moment. top story this hour is the tension with tehran. iran is threatening further action to breach the 2015 nuclear agreement if the u.s. does not relieve the sanctions that are in place which have in fact impacted the iranian economy and that is one of the issues. the regime beginning to enrich uranium beyond the limits agreed in the nuclear accord. iran's foreign ministry spokesperson is warning that tehran is prepared to ramp up its nuclear weapons program should it be necessary, he said. vice president mike pence issued a warning to iran yesterday. watch. >> let me be clear.

iran should not confuse american restraint with a lack of american resolve. we will continue to owe pose ops maligned influence, we will continue to bring pressure on their economy and under president donald trump america will never allow iran to obtain a nuclear weapon. [ cheering and applause ] maria: joining me right now is texas congressman, house armed services committee ranking member, matt thornberry here. thank you for joining us. >> thanks for having me. maria: how serious is the threat with iran? should the u.s. be responding to these provocations? >> well, that's what iran is trying to provoke. they are intentionally dialing up tensions to create a crisis in the hopes that they can divide the u.s. and europe and that somebody will come rushing in with some sanctions relief, just so they dial back the crisis that they created. and they tried bombing tankers to see if that helps increase

the price of i they have shot down a drone of the u.s. and now they're on the nuclear path, just to see what sort of reaction they can get. maria: so where you does this go? i mean, obviously the president has said he doesn't want a war but do you see military action necessary? >> well, it depends on what they do. if they attack u.s. troops, absolutely. and there has been information that that is one of the things they're considering, allowing their proxies to attack our troops in iraq or elsewhere. so that is very significant. again, i think iran is following the north korea playbook, dial up the tensions, create a crisis, and hope that they can get some sanctions relief when everybody comes rushing in with relief that it's not as bad as you thought it could be. for us, i think the key is stay close with europe and now there are indications that the europeans are concerned about this increasing enrich pment because that violates what they thought they were achieving in

the nuclear agreement. stay close with europe and keep a strong military presence. i don't think it's a coincidence that these tensions started when we did not have a carrier presence in the persian gulf. so they're watching these things. now we do. now we have a stronger military presence and i think that's good. maria: wow. okay. well, it's been slow-going for europe, by the way. >> absolutely. maria: kicking and screaming, not wanting to separate businesses from iran. let me turn to defense spending in all of this, all of these pressures going on across the world, later today you're giving a speech on why a strong military is vital for economic growth. tell me about defense spending. you've got a budget deadline coming up. are we going to see another debt ceiling debate? >> the debt ceiling has to be dealt with and it's a forcing function to make congress come to grips with the budget, the funding for the government, for the next year.

i suspect that will be september. we could do it now, if there were just the political will. just to back up for a second. remember, defense spending was cut about 20% in the obama years. we've made up about half of that. so we have not even gone back to make up the cuts that were made during the obama years. meanwhile, the world has gotten more dangerous. we see increased threats china. we've been talking about iran, north korea, russia, terrorists have not gone away. so just like any other organization, wit what the defee department needs is some stability so they can plan. if you're going to invest in new programs like lasers and hyper sonics and artificial intelligence you need to know what your budget is and you need to be able to plan on it. so hopefully we can get another 3% increase in defense spending, that's what the experts told us we need, just to stay even with russia and china. that's the goal. unfortunately, defense becomes a political football as people try to leverage it for spending in other areas.

maria: worried should we be that china apparently is ahead of us on ai, is ahead of us on some of these new innovative technologies and -- 5g? >> we should be very worried. because they are targeting technologies that they think will hurt us. one of the areas is counter space, so they can knock down satellites. that's part of the reason that congress and the president have come together to create a new space organization so we can do a better job. you're right, ai, hyper sonics, a number of these areas, china is actually leading us and it's not just a competition. it's specific areas that they think will prevent us from defending ourselves and our allies. so it's very targeted, it's very smart and we're scrambling to catch up. maria: we look at the economic side of this dispute between the u.s. and china but it's really the national security issues that are paramount here and you're dealing -- the u.s. is dealing with these national security issues with regard to china as the clock is ticking on

the government facing a potential default. there's a new warning that the government runs out of borrowing power in early september. you just mentioned the debate on the debt ceiling. how are we going to communicate this to the congress, to your colleagues, to make sure people understand the threat of national security that china represents and to make sure that the budget issues go away? >> well, we do make it hard on ourselves. there's no question. and if you look at china, they have this full range of tools from military to economic and trade that they use for a designed, foe focused purpose. and we have problems getting the defense department to talk to the state department. we make it hard for ourselves. i don't think there's really any difference between the parties about the long-term threat that china poses. both parties you agree. the challenge we get is people on the other side of the aisle want to say okay, i'll give you more for defense but you have to

give me more for housing, education or some other social program. it's using defense as a political football rather than national security on its merits straight-up that present us the political problem of getting things done in washington. maria: let me ask you about this report from the washington examiner, reporting that democratic congresswoman veronica escobar is see secretly sending staff into mexico to coach you asylum seekers. congresswoman escobar responded to the claims over twitter. she wrote this, the washington examiner published a fa fabricad story resulting in death threats against me and my staff. it's fueled by mig by misinform. it won't deter me from doing my job and upholding my oath and pushing for accountability. do you know if she is helping asylum seekers? >> i do not know. i heard of the reports but i don'idon't know whether that's

happening. any member of congress those be careful about obviously encouraging people to break the law and getting involved personally in foreign policy sorts of issues. so this is dangerous territory. i don't know if there's any truth in the allegations or not personally but it's a place where members of congress need to be careful. maria: are your colleagues on the left ad admitting this is a crisis? what do we need to do in terms of the border with regard to national security? >> engineerly everybody agrees -- i think nearly everybody agrees it's a crisis, that we're overwhelmed at the border. that's the reason why we saw democrats and republicans pass a border supplemental bill. even though the progressive socialist wing of the democratic party was critical of it. i think most people who are looking at the facts understand this is a crisis. but obviously we're just treating -- helping alleviate a

little of the symptoms. there needs to be greater attention paid in central america. we've got to change our asylum laws to reduce the magnet that is drawing people here and we've got to have more border security. it's this combination of things. i bet you could get most members of congress in a room and 75% of what needs to be done they would agree upon. maria: do you think something can get done on asylum laws an asylum standards this year? >> it could. maria: it could. but will it? >> i doubt it. because it's become a political football for both sides. and that's the tragedy, number one, a problem's not getting solved and number two, real human beings are caught up in the political football nature of the immigration debates. we could agree on a number of things that would make it better, not solve everybody, but we could mack i make it better. maria: right now, what do our viewers need to understand in terms of the most important risks? >> the most important risk is

that the united states would decide we're going to withdraw from engagement in the world and weaken our military. because our quality of life depends on a strong military and engagement. we can't backtrack. maria: matt, great to see you. thanks so much, congressman. we'll be rightet back. s. liberty mutual customizes your car insurance, so you only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond.

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maria: welcome back. well, the future of obamacare hanging in the balance. cheryl casone on headlines now. cheryl. cheryl: interesting stuff, maria. a federal appeals court in new orleans will hear arguments over the constitutionality of the affordable care act. the court will take up a ruling by a federal judge in texas last year. that ruling said the entire law is unconstitutional. the trump administration and 18 states claim that obamacare is invalid without the individual mandate after congress dropped that tax penalty to zero back in 2017. this case could jeopardize healthcare for more than 20 million people. well, you can soon own a piece of virgin galactic.

the company will become the first public company that will basically put tourists into space according to the wall street journal. the paper says social capital hedosafea holdings corp. intends to invest in exchange for 49% stake of that company. virgin galactic expecting the deal to fund the business until it can turn a profit. and 11 is breaking some records. the new season of stranger things setting the bar pretty high over at netflix. 40 million households have watched that show since its debut on july 14th. they streamed it and there's been a lot of binging with this. more than 18 million households have made it through the whole season, completely. netflix only recently started sharing viewing numbers. we used to hear from them when it's a really big number. i guess this qualifies. maria: i haven't watched it. cheryl: i'm waiting.

so no spoilers, please, from anybody on the panel. i'm holding off. maria: cheryl. thank you. anybody watch it? dagen: i watched the first season of it, it's too kitchy about the '80s. i don't need to revisit it. clearly, it has a following. but i recommend the re-watchables podcast, a bill simmons podcast, they go back and watch older movies and we did an entire binge over the weekend. we did the godfather, the hangover, no country for old men and the firm. maria: you had a good weekend. dagen: no, i just. maria: lauren: you watched a lot of movieses. dagen: i gained 10 pounds and i'm two inches wider. maria: coming up, jay powell is under the microscope this morning and all week, the federal reserve chairman will testify before congress tomorrow and thursday. futures indicate a decline at the start of trading.

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maria: welcome back. futures this morning are lower. take a look. dow futures down 94 points, s&p down 10, nasdaq lower by 36. we're waiting on the federal reserve and chairman jay powell's testimony before congress this week. he'll make comments later this morning but he will testify in front of the house and senate tomorrow and on thursday, this comes as top u.s. and chinese trade negotiations seem to be expected to resume this week. joining us right now is the chairman of city icg, leon c alvria.

you have a great vantage point to look at the activity out there, from deals, to private equity, to capital markets. how are things going? assess the situation for us in capital markets. >> great. thanks for having us. there's a few issues going on today. number one, the u.s. m&a business is doing incredibly well. there's been significant transactions done. i was reading actually an earlier report published a year ago that said healthcare m&a would be flat to down. obviously, those predictions were not correct. the u.s. has been strong. europe is weaker, probably down 25%, plus. japan is down. and most importantly, from a macro standpoint, cross-border m&a is down. why? because of the issues relating to either protectionism, uncertain regulatory environment, long dated closings. maria: and then there's china. china was a big deal maker for a long time. has that slowed down? >> china has obviously slowed down dramatically. going back three or four years ago, it was reminiscent of japan, probably 15 years ago,

where they were buying multiple assets. now that's obviously on a pause and time will tell whether that changes or not. maria: we just had a deal announced a minute ago, the investment bank piper jeffrey merging with sandler o'neil, valued at $485 million. i mentioned this earlier in the show, the journal was saying it's going to happen today. they're now confirming it. does that tell you anything about consolidation in financial services in the u.s. >> there are obviously two very, very good niche-focused firms, relatively small deals, just tells you people want economies of scale if they're worried about pressure on costs or downturn, this is a great way of taking certain risks out of the system for those kind of firms. a. hillarygreat firms.>> what indug the most right now and excite you the most, in terms of the transformation that's happening from deal making. >> you can start in so many areas. by definition, technology, technology, technology. i mean, there are so many interesting things happening there right now and i think, you

know, when you think about the world being flat, to quote tom freedman, it's happening all over the world. there's interesting things going on in the payment business in brazil and australia, in europe. you know, things going on in kenya that are cutting edge. so the technology area is very, very important. the payments area -- >> tech finance in particular? >> exactly, tech finance in particular, the amount of disruption, the amount of interesting things going on there is profound. e-commerce obviously we've gone through all of that right now. as we were discussing before the show, this is the year potentially in which the private and public market valuations are going to have a meeting and we'll see who comes out ahead here right now. maria: you're the chairman of the institutional clients group at citi. what are your institutional clients doing right now? and in an environment where we see rates at rock bottom levels, the federal reserve probably going to cut rates at some point, institutions reaction? >> i think the institutional reaction, everyone is obviously somewhat cautious.

you don't have very volatile markets right now at the moment. it's been in a trading range, so from institutional standpoint right now money continues to get put out. the investor base right now i think feels relatively calm would be the way that i would say it. low interest rates, good jobs data here right now. you look at the growth rates, the potential expectation of a fed rate cut which sometimes i think is fine-tuning to the point of perhaps irrelevance when you think about the numbers we're talking about. the corporate client base is looking very, very carefully at what areas they can expand in, and obviously we can discuss that. maria: are they sitting on cash because of the uncertainty over china? >> there's some level of sitting on cashier right now, both institutions and corporates are looking at the china situation. everyone believes in their heart of hearts that a deal will get done. but people are very, very cautious and we've seen the volatility depending on the day of the week. >> the last two global economic

expansions were ended by financial excess, by bubbles in tech stocks in the '90s and real estate housing in 22000s. do you see that kind of excess in markets now and what parts of the financial markets worry you? dagen: i'm going to step on your question and note i got an e-mail yesterday that the greek 10-year yield is less than the u.s. treasury yield. there you go. >> there you go. dagen: in terms of excess. >> there you go. demand. >> look, there's a few areas. one, the leverage loan market right now, people are watching it carefully. they're being very, very careful. but one has to keep an eye on those things. second -- >> explain that to viewers. what's happening in that -- >> the leverage loan market, everyone -- the regulated banks are very careful about what money they're putting out because they want to make sure the covenants are a appropriate, leverage ratios are appropriate. people are watching to make sure they don't do anything that could end up an issue.

>> that's lending to businesses. >> that's lending to businesses. that's traditional lbos or leveraged companies, below investment grade. looks, it's fair to say, you go back to '08, '09, the level of control on these institutions and the level of observation on these transactions is profoundly different to what it was before. so that's one thing is the leveraged loan market. and when you talk about the tech bubble and tech investing, we all remember 2000. this is very, very different. but there is significant money that's gone into the tech market right now and we'll see how all these valuations pan out because at some point people want liquid at this and liquid a atity willn you need a marketplace willing to provide that to you. maria: valuations feel extended to you? >> it's case by case. you can go through company by company and say i love this, this is exciting. you go to other things and say where is the path forward, where are we going to get to. maria: it doesn't sound like you feel a recession is at hand,

is on thor ry the horizon? slowdown later this year? >> i don't see it. business confidence is high. investment in capital is high. economic numbers are decent. the job numbers are incredibly good. wage numbers are good. everyone says that expansions have to end with recessions but time will tell when that kicks in. >> how about looking abroad? everything is looking dandy at the moment domestically. is there any concern about things happening overseas? >> there's not a lot of growth in europe. we'll see how brexit plays out. ultimately they will get to a solution. i mean, they have to get to a solution in terms of trade deals right now. there are transactions being done intra-europe but not as much as we thought would get done. we thought we would see more intra-europe consolidation. there's been a little bit of that, but not much. >> how about china? >> china we talked about. it's quieter. maria: sure. with this dispute going on.

>> with this dispute going on, people trying to figure out numbers. maria: leon, great to have you on the program. please come back soon. disney recall, a toy story toy posing a potential health risk. details coming up. a judge blocks a trump administration rule for more drug pricing transparency, more on that coming up this hour, back in a moment. ♪ ♪ award winning interface.

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maria: welcome back. good tuesday morning, everybody. thanks so much for joining us. i'm maria bartiromo. happy tuesday. it is tuesday, july 9th. your top stories right now, 73:073:00 a 5:00 a.m. president trump just tweeted that trade deals are being negotiated or being set i'll for negotiations as china and the united states are looking to restart talks this week. plus, the push to get a trade deal u.s., mexico and canada approved continues 6. markets are under pressure. we're waiting on jay powell, the federal reserve chairman will speak later today and then he'll testify in washington tomorrow

and thursday in front of the house and senate. markets are on edge ahead of that. we're wondering what he's going to say or suggest about a cut in interest rates. that's why futures are indicating a decline of 96 points on the dow this morning, s&p down 10, nasdaq down 31. on top of a down day yesterday, markets were down for a second day in a row yesterday as hopes of the rate cut faded following the strong jobs report on friday. of course, better than expected numbers there. dow industrials yesterday down 115 points, nasdaq was down 63. in europe this morning mostly lower, although more of a mixed story. the fq100 is down 3 points. the cac is down 20, dax lower y 122 points this morning. major flooding in dc yesterday. take a look at this. this is a historic flash flood that hit the nation's capital and it is in recovery mode today. we'll take you there. then a judge delivers a setback to white house drug pricing reforms, blocking the rule requiring prices to be listed in television ads. what's wrong with that?

the best of the best come to play. we're taking you live to cleveland, we're getting a preview of tonight's mlb all-star game. i'll be speaking with bud selig. all those stories coming up this tuesday morning. our top story this half hour, u.s.-china trade, both sides set to resume trade talks this week after a two-month hiatus. president trump tweeted earlier this hour, this. very good numbers on the economy. much potential for growth. trade deals being negotiated or set up for negotiation. we've been treated very unfairly by other countries for many years but that is changing. writes the president. nintendo said it is moving some production out of china, while the most recent proposed tariffs on chinese imports could result in a bible shortage in the united states. apparently the bibles in the u.s. are made in china. joining us right now is the former u.s. secretary of commerce under president george w bush, secretary carlos gutierrez. thank you for joining us. >> thank you. maria: first, let me get your reaction on the china dispute.

what do you want to see in terms of potential deal, in terms of the u.s.'s pushback on some of china's behavior? >> well, i think we have to get to a deal eventually and i don't think it's going to be the perfect deal. i don't think it will be the only deal. we're going to be dealing with china for a lot of years and this whole notion of once and for all let's take kaye. hillary:care of chinai think is. the u.s. would like china to put some of the changes into law. they're not willing to do that. and china has really gone public with this whole -- with the trade war. people in china are hearing about it every day. there are national songs about the trade war. that tells me that china's willing to stick it out and of course the president is up against an election. so i think that's going to gear where we go. but, look, we're far away.

the two parts are far away and it doesn't seem like there's something obvious in the works. so both sides are going to have to compromise. it's going to be a com compromie deal. maria: should the u.s. be pushing back if the chinese will refuse to make theft against the law in china? so the last time we were looking at a deal that both sides are agreeing to was back in april and at that time the u.s. said to china we need to make sure you stop stealing intellectual property from the u.s. and then in the 11th hour they refused to put that into law. >> yeah, i think it was the fact that we were asking china to change their law and that was the part where they thought it went a little bit too far. i think we can negotiate a deal. maria, technologies, these new digital technologies are maybe 10, 15 years old. this is brand-new. 10 years from now we don't even know what's going to be hitting us. regrettably, what we should be

doing is getting europe, china, japan, the u.s., together and figuring out how we're going to manage technology globally. everyone is splintering into their own little regulations. so we're going to have a splintered global technology industry that is less than ideal. maria: i want to ask you about usmca and nafta, given your experience there. you were the commerce secretary. i've got to ask you about the census citizenship question. attorney general william barr said he believes it can be legally added even though the supreme court ruled against it. watch this. >> we've been considering all the options and i've been in constant discussions with the president ever since the supreme court decision came down and i think over the next day or two you'll see what approach we're taking. i think it does provide a pathway for getting the question on the census. maria: how do you see this? >> well, you know, on one hand there is the political aspect of

asking people for their citizenship and that has become an issue. i would look at it from the effectiveness of the census. the census relies first and foremost on that first response. and if people are afraid to respond, if people have a green card but they're not citizens, they may be reluctant to put that down on paper. so the response will be a lot lower and we will have a less than accurate census. that's the big problem. maria: i mean, wouldn't it seem natural to ask if you're a citizen on the census? isn't that one of the points of the census, to make sure we understand how many americans -- how many citizens are here? >> i see what you mean and on the surface seems logical. maria: it seems logical. i don't understand the big stink over it. >> we're in the middle of a politicized immigration

environment and that's why it's a big issue because we have politicized immigration, because we have politicized the whole issue of immigrants so we are in a very divided society right now and immigration is a real problem. maria: who is politicizing it? there is a border crisis, right? the department of homeland security is asking the pentagon to authorize 1,000 additional texas national guard troops to help at the border. vice president mike pence is going to be visiting the southern border on friday. we were there, we took the whole show there about a month and-a-half ago. what i saw was stunning, all these kids coming across the border. we don't even know they they're with their parents or if they're with strangers that paid for the kids and you had -- i met two -- an 8-year-old and 10-year-old, they were alone. they walked over the rio grande because there was no water and it wrapped behind me, from flores, mexico. what are we going to do about this, these asylum standards, the loopholes that are encouraging loads of people to come, we're talking about a million apprehensions this year,

probably. >> yeah, maria, we will not fix immigration until we change the laws. we're talking about refugees and asylum, that's kind of a separate story. but the real issue with immigrants is that we need immigrants to grow our economy. and the only way the private sector can get enough immigrants and jobs that they need, whether it be high skilled or low skilled, is if we change the law. today, they can't get the workers they need so the only way to get them is to hire illegally or shut down the business. that's the part that frustrates me. a wall is not going to fix that. maria: i understand what you're saying. especially since we've got more job opportunities than we actually have people. >> there are about 5 million empty jobs, vacant jobs. maria: unemployment is at a 51 year low. do you think usmca is going to pass? nancy pelosi hasn't said a word about whether or not she's going to bring it to the floor. this is going to be an important piece of legislation. >> i think a lot will depend on this kind of game of chicken

that's going on. if the president withdraws nafta, then i don't think congress would want or the house would want it on them that we're out of a trade agreement with canada and mexico. there will be some comments, there will be some issues. they'll want to have some side letters. but it's just hard to imagine even in this day and age that we would walk away from this incredible trade agreement which has been wonderful for three countries. and you know, the change between usmca and nafta, there's some changes but it's not like it's a brand-new agreement. maria: wonderful for three countries, except that so many u.s. companies decided to set up shop in mexico, have production there and pay workers at a fraction of what they were having to pay them in america. >> that's true. and that's kind of the way that economic history has folded for the last 500 years. we need retraining. we're focused on jobs, not workers.

we should be focused on retraining our workers and not bringing back jobs. maria: that's a fair point. secretary, good to see you this morning. thanks so much. coming up, toy story recall, that's next.

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maria: welcome back. a setback for the trump administration's plan to lower drug prices. cheryl casone with the details in headlines now. cheryl: that's right, maria. a federal judge in washington has blocked a trump administration regulation that would require drug companies to include drug prices in their tv

commercials. the judge ruled the administration does not have the authority to force drug companies to comply with this. the judge said that the decision is up to congress, not the department of health and human services. well, a massive cleanup now underway in washington after historic flooding in the nation's capital. some areas got a month's worth of rain in just an hour. roads turned into raging rivers. vehicles were submerged. and the take a look at this video, this is the metro train that went through a waterfall. kind of yeah. >crazy.rain also carried away ae in alexandria, virginia. no major injuries believe it or not have been reported but what a day for the weather there. well, a breakout star from the new toy story movie getting into real world trouble. >> i am not a toy. i was made for soup, salad, maybe chili and then the trash.

cheryl: disney is recalling its plush forky toy, there it is, after the consumer products safety commission said the eyes could potentially fall off. that could be a choking hazard to young children. the commission is warning parents to return the toys. disney offering a full refund. those are you headlines. maria: all right. thank you so much, cheryl. coming up, hitting it out of the park, literally. baseball's all-stars take to the field tonight in cleveland. we're live at progressive field when we come back, ahead of the annual mid-summer classic. stay with us for that. ♪ the ball goes up. ♪ the ball comes down. ♪ wings his ba swings his bat ay around. pathe world so still you can hear the sound. nice. but, uh... what's up with your... partner? not again. limu that's your reflection. only pay for what you need. ♪ liberty, liberty, liberty, liberty ♪

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maria: welcome back.

the 2019mlb all-star game is tonight in cleveland. baseball's best of the best face off for the bragging rights. connell mcshane is on the ground in cleveland this morning. hi, connell. >> reporter: hey, there, maria. good morning to you. as you know, i always volunteer for the tough assignments. this is one of them. this is going to be great tonight. it's always a lot of fun to see the best in any sport get together. that's what we'll see at progressive field in cleveland this evening. now, they packed them in last night for the home run derby which is always one of the fun events at the all-star break every year. you had a couple he'll of rookies in the finals of the home run derby. it ended up being pete alonso of the mets who won it over vladimir guerrero junior of the blue jays. he put on an absolute show in the early rounds of the home run derby. alonso got the better of him in the finals. all this talk about home runs is ironic. all the talk at media day and our cameras were there yesterday for that, here as people look at

the business side of baseball, is whether or not there are too many home runs being hit this year. major league baseball is on pace to shatter the record for home runs set in 2017. now, like anything else, that depends on who you ask. you can ask somebody who is hitting the home runs or one of the great pitchers who i trying to prevent the long ball. let's take a listen. >> i don't think there's too many home runs, no. i think home runs are exciting things in baseball. and there's obviously been more of them this year. >> it kind of takes away it from a little bit. there were guys who were going to hit 30, 40 home runs with whatever baseballs and then you look around at how many people have that many already. >> reporter: two guys there, jacob degrom and mike trout that a lot of people will come to see this evening. the pregame show begins at 7:00 and 7:30 eastern time they have the pregame he show on the

fox broadcast network. first pitch maria after 8:00 tonight. speaking of john smoltz he'll be a guest later today. maria: fantastic, connell. from china to cleveland. >> reporter: i get around, as you know. maria: great reporting in china, connell. we'll be watching. stick around, at 8:00 50* this mornin8:50 thismorning i'll be d selig. he's out with a new book, for the good of the game, talking about all of this experiences. first, president trump just tweeted about the u.k. ambassador. here's what he wrote. the whacky ambassador that the u.k. foisted upon the united states is not someone we're thrilled with. a very stupid guy. he should speak to his country and prime minister may about the failed negotiation and not be upset about my criticism of how badly it was handled. i told theresa may how to handle

the deal. she went her own foolish way and unable to get it done. i don't know the ambassador but i'm told he's a pompous fool. they are getting bigger and stronger. thanthank you, mr. president. we'll be right back. (vo) the hamsters, run hopelessly in their cage.

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maria: welcome back. good tuesday morning. thanks for joining us. i'm maria bartiromo tuesday, july 9 top stories right now 8:00 a.m. on the button on the east coast, markets under pressure in morning investors waiting on federal reserve, jay powell will speak today, and chairman will testify wednesday and thursday this week, tomorrow and thursday, about monetary policy markets wondering if if he had will suggest in fact we will see rate cut july or september. markets down yesterday for a second day in a row on top of the weak necessities we've got more weakness today as the hopes of a rate cut seem

fading, strong jobs' report on friday, european indices flat to lower europe right now ft 100 down 4 cac quarante paris down 24 dax in germany down 129 better than 1% in asia overnight japan was able to squeak out gain but most of the markets lower, as you see trade, of course, in focus, president donald trump tweeting this morning, that trade deals are being negotiated or being set up for negotiations, suggesting we will hear something from china this as china and u.s. still looking to restart talks, the crisis at border, department of homeland security is now asking for 1,000 troops to provide more support at texas border, plus this, cofounder of apple says get off facebook quick find out why wozniak says euros of facebook should say good-bye to the social media giant, plus getting ready for the future preparing for the cost of health care insurance, so you can retire, in comfort those coming up tuesday to break it don fox

business next dagen mcdowell "the wall street journal" jon hilsenrath washington examesh he hadto in chief hugo. >> great show looking forward we have talking about fed and white house the battle going on . dagen: do you know him well enough to call him the mooch i think it is mr. scaramucci. >> his brother coached my son in baseball many years ago i can call. >> gives you license. >> a couple long island boys. maria: lot to talk about with on th anthony scaramucci we heard from mcshane all speculation about the federal reserve, dagen what are we going to hear from jay powell? do you think we are getting a rate cut in july. dagen: can i steal what jon hilsenrath just said -- no i don't think we are getting a rate cut in july i think would be given the strong jobs' report last week wages still growing north of 3%, but little to nos consumer

inflation out there that i think that the i don't know what market wants because what is a quarter point or even a half point cut going to do. >> how do you explain rock bottom line rates you studied interest rates for so long you are talking about, 10 year now back above 2% it dropped below 2% two weeks ago. dagen: it is worries about a global slowdown but also demand for getting paid some interest, on o loaning money to a federal government meaning that much of sovereign debt around the world -- is negative, if not zero rates are negative rates. >> a hard time sitting next to you on shows because like you always say what i am about to say [laughter] >> there is. >> one step ahead of. >> you great deal of global demand for safe assets right now pension fund demand insurance company traditional bank demand just a lot pouring into u.s. treasurys. >> that is what you would

attribute the rise 32 in bond prices to with yielded dropping. >> exactly. >> we are talking about that this morning a top story in fact trump economy, president trump touting economic chooechlths during envoy dinner with emir of qatar last night central bank president christine lagarde as well. >> our country has never done better setting records on friday we had the all time in history of stock market the all time highest number we intend to go a lot higher i think we will be a lot higher than even what we've done tremendous potential, there is a lot of room for growth and during the campaign i talked about growth. and we had great growth but we're going to have a lot more of it. maria: the president also ahe firj economy on twitter this morning saying very good numbers on economy much potential for growth trade deals being negotiated, we are being set up for negotiations we have been treated unfairly to put it mildly by other countries for many years, but that is changing, writes the

president this is the yu states and china are set to relaunch trade talks this week after two-month high at u.s. joining us former when is the director founder of skybridge capital anthony scaramucci. >> to my brother i am a little mooch so you know if hijacked have name fine. >> what do you see out of white house a lot to talk about. >> maria you have been studying the economy for a very long time as have i, we're in economic miracle if you look at the density of growth, the jobs at legislator levels and rising wages in the bottom 10% of the united states, you are literally witnessing economic miracle more over you have more jobs available than people looking for jobs short evident duration if i lose job today god forbid i am getting a job more quickly than before literally since 1969. >> why is president so angry at jay powell he criticizes him all the time has said his

primary goal, as chairman of the fed is to keep this expansion going, but the president needs to get reelected in 2020 is to keep the expansion going, their interests in line economy doing so well why doesn't he lay off -- >> can i is a i i understand you don't really want the president of the free world to be taunting the president of the federal reserve, i totally agree with that, but when you look back over the last year, it is pretty clear, jay powell missed something huge, he was going to raise rates three times at the end of 2018 and going to wind down balance sheet on top of that. and, you know, it was it was a blunder, it you have to look at it that way if weren't a blunder wouldn't be talking about a rate cut so that is one reason. >> i will let -- >> okay just want to say one thing, that it may or may not be a blunder looks like blunder right now you have to look in context of the three to five year economic cycle. maria: okay. >> i think what the president has gotten right to have you get president credit for this

is that there has been way less inflation can anybody would have anticipated given the rate of growth in gdp but what is at issue, okay, when you are -- trillion dollars or northed of a trillion dollars, threeish per cent growth gdp is it sustainable to have inflation like this so what fed would say we want to get ahead that have inflation. okay. that is why they are moving as quickly as they were, but for me -- >> debt load the end of '18. >> i don't want to see fed lower rates here to me personally, number one, you need 400 basis points of stimulus study the economy over the last hundred years to smooth out the sharp edges of a recession, number two, the president does not need a rate cut here if anything, if he wants to get reelected leave powderer dry first half fed not meeting 12 minutes prior to election in terms of rising rates take off the table what hand with alan greenspan and

george berhert walker bush. >> he has sometime. >> i think he does. >> trump should perhaps want the stimulus if he wants it closer to election. >> that is my point, i mean leave the powder drive. >> good guys and bad guys messaging out of president needs a fall guy if economy starts weakening setting him up to be that guy again, the world falls into are you good? or are you bad? it might change on a dimon that is the messaging out of white house. >> i think there is a lot of truth to that, i mean that is maria's point should leave federal reserve chairman alone allow him to have that npz at the end of the day we are the global capital markets engine for a reason people do think the checks and balances defusioning of power in the united states led to great -- >> with jay powell blew it the end of the year. dagen: maria thinks the president has right to attack -- >> i don't -- i don't this can

the president should be attacking the chairman. >> that is right. maria: i think should be independently. however i also think jay powell blew it the end of last year. >> he is not the president. maria: i do. >> did he blow it -- if. maria: he was planning on raising rates three times, and unwinding balance sheet. >> if a down -- not -- >> going to be the president, you can set up in ib to be a bad guy but eventually it is a president going tooesh win or lose because of the economy. >> again i have been studying for 30 years, for running 12 will billion dollars at our firm there ising going to be no, it is almost impossible to create a recession between now, 17 months from now. >> let's see. >> what about the 2020 what about the 2020 lineup centeric swalwell pulling out senator elizabeth warren seeing massive hike in fund-raising past three months campaign said raised 19.1 million dollars second quarter up from six million first congressional congressman eric swalwell announced he is withdrawing from this rave three months to the day after

launching campaign. >> i don't know one with an call elizabeth warren dark horse but interesting how she was riz whenl attention has been on other people, right beginning of the campaign, struck me that kamala harris was strongest i still think that is probably the case, bernie sanders no longer stands out, as the most left wing they are all extremely will have the wing joe biden looking weary not very successful. >> so i just think elizabeth warren looking energetic raising lots of money she could be stronger than a lot of people think. >> elizabeth warren -- >> i think he annihilates her to be honest, said she would lose by 47 states not only are you right about that in my opinion me she has 300 plus people in all-important states nevada, knew hampshire iowa ask shadow front-runner listen to campaign she has

quote/unquote solution based ideas but ideas that i would agree o with -- >> there is one thing that will be her downfall. i am in favor and raising my hand i am in favor of taking away health insurance of 18 0 million people how do you run on that. >> how do you convince anybody that the federal government bureaucrats inept sometimes cup bureaucrats are going to deliver health insurance better than a private intent? deliver it like the way they delivered the damn mail, good luck with that. maria: you are right. >> the president's -- from 55%, i think -- >> he is behind in one-on-one matches up in a lot of polls. >> biden, too. >> he is behind, because there is no definition yet let's just -- >> you can't believe pols. >> call one person, the nominee, let's get the president with his billion dollars and air force one able to to start defining people i

see him leap -- i think it is almost impossible to see a scenario not trying to jinx in ib about where in rising economy combata incumbent losses presidency go to 1880 not had incumbent loss -- >> the messaging, there is more work to be done, because the democrats are trying to run on a small part of the country that still doesn't feel the growing prosperity the low inflation the rising wages trying to run on that and basically upend our entire economic financial system. just whip up industry, but all he has to do is say there is more work to be done, and i will focus on that, in the next -- >> i think he wins reelection i hope fed does not lower rates here honest. >> you know president very well do you think he runs reelection what is he going to be like in a second term? does he change at all or basically what we get what we see what we get. >> i think his point is he is

not -- i don't see the guy changing. maria: i think going to attack the entitlements i think going to actually get his arms around the debt if he gets the second term, because he knows -- >> keep saying he won't touch entitlements. >> won't touch it social security. >> i think -- want me to put out a grews do it. >> i that he changes the law, he would change the law and have the government negotiate medicare prescription drug prices something democrats tried to run on but i think that the fact that he still hasn't really brought down drug prices, that you still have a lot of drug prices going up rather, i think that that is that is a point that is something that he fix figuresateing on. >> prison he reform going feedback a big deal come collection if numbers up in those areas he is going to wildly crush people could not get prison reform done in obama administration he got it

done inside of two years. maria: that is why i think taking on hard issues if a second term great to get insights. >> great to be here i am called mooch, jr., at home that hurt my feelings. >> anthony scaramucci cisco making acquisition 2 1/2 bond acquisition will apply communications for 70 dollars a share, there is the stock, up 38% right now on kcf nasdaq stock soaring on news we take a look at cisco shares down 1% now on that news we'll be right back.

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maria: whep overwhe. >> welcome back workers at amazon planning to strike on prime day gerri willis with details and look at lower opening hey gesture inside that is right good morning, maria. so the strike not expected to disrupt amazon logistically because just one of 100 warehouses will be striking

company protested for pay for practices, but they say they already pay 16, 25 to 20.80 on average per hour for employees in that warehouse brought wi fieu teamsters the counsel on american islamic relations, target going to provide competition to amazon on prime day, they are announcing the detail of their deal debut they want furniture indoor rugs kitchen brands small appliances toys also offering deep discounts up to 50% on hundreds of thousands of items, next week. >> and steve wahe says about privacy for members benefits make sense for most he says you should this is a quote should you figure out a way to get off the facebook.

maria, back to you. >> thank you so much we have been talking about that wozniak interesting to see him say it homeland security pushing for 1,000 additional national guard troops toll to border vice president pence visiting on friday the average retiree spending on health care costs wait till you hear this. >> ♪ country, to a down home, country, to ♪

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expensive necessary planning retirement health care the average retirees spends more than 4,000 dollars out of

pocket, on yeeshl health care comforts joining with us a few ways to make sure you are not spending too much, the author of everyday millionaires ramificationy solutions financial expert chris hogan good to see you now thank you, maria good to be with you -- >> one issue here people don't look forward to say oh when i am retired, when i am 65, 70, 75 i am going to need money for mc, i am going to need to pay for this stuff insurance doesn't cover everything all the time. >> no you are absolutely right, and what happens with this maria is that people end up being surprised, and even overwhelmed, when you start to look and you understand, that health as we age we can have more health issues if we can be aware that is going on when a options are, it helps to remove some of that anxiety medicare like learning a foreign language things covers with dr. visits hospitalization megz understanding nuances when it kicks in helps looefl zie help people be better prepared.

>> dagen: it is dagen mcdowell if better prepared ought to bet into better health change eating habitats lose weight so they don't have heart disease diabetes by the time even before they qualify for medicare again, it is there is zero -- well not zero, but there is very little permanent responsibility these days when it comes to people's health, you go to any hospital, sit around, they are tell me 20 years younger than i am have catastrophic health problems. >> i agree dagen there are things that people can definitely do right now, for example, look at your health be aware taking advantage of those wellness visits that are offered through your insurance right now, and really start to get engaged it is not something just going to take care of itself like our financial future, right if we don't engage with it and take certain steps we are going to put ourselves at risk for later so i agree, engaging taking right steps going to see doctor wellness visit have conversations now. maria: this is why a lot of

offers on shelves to talk about wellness getting ahead of disease we have had dean, his book undo disease by health living we had on last week, how not to die the author of that to again to get ahead of sickness much cost isn't this true goes to fighting diseases that are actually preventable hart disease diabetes, of course, number one killer of heart disease. >> absolutely, boils down to information, when people have information, maria they can take the right kind of steps to put themselves in a better position. but we just can't sit back, and wait. >> so a quarter of nearly a quarter million workers have no plans to retire according to poll from ap center for public affairs your advice for those people say not going to do it not retiring. >> well, maria i think there are two sides to this discussion. there are the people that love what they do and don't want to retire, then you have other people that are saying hey i

don't think it is possible for me to ever be able to. >> that is rue. >> the latter group says they can never do it because they don't think it is possible, i say hey, wake up and start to look at this and understand retirement has nothing to do with your age has to do with financial numbers so we've got to take control. >> 56% of people feel they are they can't retire don't have money to do so really important, conversation here, chris thanks for joining us. >> thank you for having me. >> coming up the border battle department of homeland security asking for a 1,000 additional troops to provide support at texas border we talk about that home run plbl top players geared up for all-star game on fox former nlb commissioner bud selig will join me on set back in a minute. ♪

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q. welcome back breaking news ibm coming up this morning, happy tuesday i am maria bartiromo, tuesday, july 9 top stories 8:30 a.m. on the east coast, markets under pressure in this morning investors eyeing trade and the federal reserve, jay powell speaking later today and testifying, on wednesday and thursday, of this week. investors waiting to see what he is going to say. about a potential interest rate cut sometime this year, market lower with dow futures down 95 points the nasdaq futures lower by 28 in europe also a down day, fractional moves though f4-up down 7 cac quarante down 25 dax in germany lower by 125, 1% lower in asia overnight japan squeaked out gain others lower across the board, as you can see. couple deals to tell you about

cisco making 2 1/2-billion-dollar acquisition will acquire kcf communications for 70 dollars a share, the shares soaring on news, plus ibm closing the deal to acquire red hat 34 billion dollars word this is official deal has closed, red hat shares halted for news pending i assume news, that we were waiting for u.s.s initially signed off i haven't bm, red hat deal is now complete and closed, i haven't bm shares finished yesterday, at 140.57 a share, this is the breaking news from ibm right now, meanwhile, there is border crisis department of homeland security asking for 1,000 troops to provide support at texas border, plus best of the best coming out to play i mlb all-star in cleveland tonight bud selig will join me 20 minutes his take on state of the game what can be done to draw more viewers and revenue. all stories coming up tuesday

morning first our top story this half an hour the border crisis, the department of homeland security, is requesting an additional 1,000 national guard troops, to provide support for the border patrol at u.s.-mexico border joining us new jersey congressman jeff van drew, to talk about that other things congressman always a pleasure thanks so much for being here. >> same here, maria happy summer. >> and to you, thanks so much, your reaction, to this national guard assessment that we needed additional 1,000 troops to help with border this crisis is obviously, not getting any better sir. >> well, for safety and security reasons, i think it is important. you know they fulfill a lot of obligations and jobs that need to be done there they also help border agents so not only for border agents not only for people in enforcement but actual for everyone, bless you -- >> everyone that. maria: jon hilsenrath god bless you thank you. >> go ahead. >> for everyone that is there,

including the children, including the detainees you have to have a controlled organized situation. , of course, speak to overall problem still have not dealt with our immigration problem, and our immigration policies and complete and full way. >> congressman i want to ask you about one of your colleagues because we've got the editor in chief of the washington examiner here today, and hugo you broke news this week. >> congressman we reported that councilwoman escobar is sending firldz down into mexico and reinterviewing people who have been sent back under stay in mexico program and escorting them back to united states. the -- the border patrol people feel they are being undercut surprisingly some people turn up in suddenly can't speak spanish means they have to come back to united states can you tell us what is going on in this? >> i don't know all the details, of it i am going to find out more, one of the

actions i am going to take is next week, i hope to go to the border, and in bipartisan group actually to have a few of us to go down and really take a look at what is going on there. i mean, again, every nation has to have a border. every nation if it is going to be secure has to have some kind of a system to maintain border to have security. that is isn't onto any particular group that isn't trying to you are the hurt anybody i don't understand here what some people believe our options are either to have open borders, or to have a secure border, one or the other, and i believe that most americans do not whether democrat or republican, by the way, actual folks live in our country do not want to have open borders, we have to come up with an intelligent secure humane way dealing with this issue, and i don't understand where some folks don't see about that, or what they are really trying to do here.

maria: and you are articulate this so well every time we talk about this congressman i so appreciate you, for that. i mean when you look at alexandria ocasio-cortez for example she went to the border, i spoke with the border patrol guys right i spoke to them before she was the right after she left she they told me she lied, that she went there said that in detention centers tolling migrants drink from toilet bowl an out-and-out lie how do you deal with real progressives like aoc and moderates like yourself actually telling truth what is going on down there actual getting solutions to things like loopholes that encourage people to flood our borders? >> number one i can't imagine anybody saying to drink out of toilet bowl they know how carefully they are being watched, what is going on. i mean all eyes are on them number one, number two, i don't think by and large the vast majority of individuals

who are performing that work, there, are going under great stress and working very hard, and just would never do anything like that, i really truly believe that, so that is the first point the second point is we've got to come to a point where sometimes i think moderates and you saw that happen last week -- where actually week before i'm sorry where moderates say wait a minute, we are derogatory a line in the sand let's use commons. the commons we talked about, is a bill, that went through humanitarian aid, in the senate, bipartisan it was something likable, maria 83 to 8 i don't remember. maria: you voted for it i know you voted for it for you colleagues including aoc did not vote for it if 4.7-billion-dollar aide bill dagen. >>. >> not only did we vote for it we had communication, both the problem solvers and blue dogs, with you know leadership and said look, we are -- and i was at the point i was not going to vote for the bill that we were working on because the bill that we were working on,

you know nice bill, i know trying to do some good there but it wasn't going to pass it wasn't going to go anywhere. maria: good for you good for you -- >> thank you. we were going home on july 4th, and be in exact same situation that we were in and obviously, to do that i put a statement out i am not going home july 4 i am not going tome until we straighten this out i am not voting for that for that bill. and then they had meeting, and was discussion, and they put forward the senate bill vast majority of people obviously, both in senate and house did vote for, we've got to have sanity here we've got to use common sense, and -- i think that is the answer, so you know, as i said to you before i think the answer is, that obviously, we have to move forward, we need a better and new immigration system we have to do that in a a bubipartisan y need security includes fulfill structure doesn't mean every in which of piece of ground is going to have physical

structure or wall whatever you want to call it but some areas do need that we need side of the. maria: write. >> canada has it mexico has it. other countries have it. i mean this is just common sense. it doesn't mean you want to hurt people it doesn't mean you don't like people. maria: you don't think they really believe all this stuff they just want go against president trump they don't want him to have a victory is that what it is. >> you know what i don't think it is just a victory for president trump i think it is a victory when we are organized and we work together, and we get things done, it is a victory for america. >> you would think so -- >> that is what that is about we all do well. maria: exactly congressman great to have you this morning thanks to much. >> thank you. >> come back genuine we definitely want to hear about your experience at the border i want you back billionaire richard branson advise virgin galactic to stock market stuart varney weighs in on that, baseball top players gearing up for all-star game on fox former nlb commissioner bud selig on set a special

update from the tennis channel. >> welcome back to another tennis channel court for the for fox business, manic won wimbledon multiple upsets in ladies draw, plan reached the round of 16. >> french open cham champion sent backing, fought back from set down to take out the world number one, the victory puts the american into her first major quarterfinal. >> i am so about incredibly excited the fact that it is at wimbledon, the place that i had always dreamed to be in on they can't kick me out now, so -- >> favorite gave brits something to cheer put out two-time champion, five aces 22 winners, will face for a spot in final four wimbledon prime this time daily on tennis channel 4:30 pm

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maria: welcome back billionaire richard branson helping uber in new wave of space tourism virgin galactic plans to go public the host of "varney & company" stuart varney to weigh in sir richard branson. maria: right you are right. >> i am intrigued by this i really am found out since eureka first went round the earth in space, 1961, only 570

humans have been into space, richard branson's galactic thing could double that number very quickly, once it gets up and ring he is going to do this ipo it was to bring in money for space travel space tourism what i think really getting at introoeyings me, i think that is where he is going sounds very sexy take you into space you can go and be a toughest, 300,000 bucks but down the road, hypersonic travel turns me on i remember the -- love to get back. maria: you are going to go to you want to go. >> i did not say that. maria: oh you said turns you on. >> if 50 years younger, of course, i would, but not now. maria: all right, well just

want to say we had congressman ranking month on house arm services committee said very important we are in space china wants to beat us there so they can knock down all our satellites. >> yep. >> there is that throwing that out there. >> okay. >> i should have liquid that. >> national security issues top of mind i know you have a lot more on all in 15 minutes we will see. >> you droning on about space tourism you come up with goods right there. >> "varney & company" 9:00 a.m. we see you in 15 thanks so much join stuart top of the hour after "mornings with maria" sliding into home base this morning, mlb top players gearing up for all-star game on fox i speak with former mlb commissioner bud selig joins me here on set next up. ♪ ♪ . >> ♪ wanna take your xfi to the next level?

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. >> line drive off the top of the wall there it is -- [cheering and applause]. >> your home run derby champion -- 2019. maria: that all-star week reaching fever pitch yesterday new york mets first baseman alonzo hitting it out of the park take home the coveted home run derby he trophy in cleveland with-million-dollar prize tonight, the top players in american and national leagues warming up for the iconic all-star game live on foster cares tonight joining me before that, is the former commissioner of major league baseball and author of get for the good of the game" important night how are you feeling into all-star game what are you going to look at

in terms of most important. >> what is most important, everybody is playing and that is very important. there were years years ago where, a lot of players didn't want to play they all want to play will play tonight, and hopefully a very good tough competitive game to the end. >> unlike to approach fiasco when you were on job 2002, milwaukee ran out of pitchers, right. >> yes managers joe torre bob they manage well the commissioner always gets blamed, that is the way it should be but they rap out of pitchers on both sides. >> how do you get baseball to -- reach younger viewers reach women you know i know that this is a struggle for so many sports leagues that you are trying to reach young people and women, in different ways how do you do it? >> well to do it i want to say it is that the important thing

is baseball is really do remarkably well i know a lot of people who have some negative thoughts gross republicans are all-time high numbers that i if 10, five years ago i would have told you were impossible they are rising. >> what is revenue now of -- >> revenue i think around 12 1/2, 13 billion dollars or more. >> so they are doing remarkably well attendance sort of flat we are flat this year down like 4/10 of upon per cent a lot of times doing remarkably well the ones that are not the ones that are not playing too well. >> you agree you've got enforce game along make it faster is this one of the things -- >> there is no question that in every generation you have to do things -- there were years when i was way back in in 60s we need more offense, we lowered the mound we did

brought in designated hitter now home runs how do we -- just going through a lot of cycles but, overall, when i think back i used to hear how back in the 50s, 60s game was more fun game not going too moribund not going to survive. >> you have seen a lot. >> jackie robinson you were right there, with a complete change. >> one of the great things that i did was retiring his number in perpetuity i have jackie robinson story has i think people don't quite understand he not om changed baseball, he changed american. >> he did you are right. >> such an important character. >> and when you think of what he did, being what ricky did, that was -- fnl. >> i got to know jackie's

widow. >> she said the movie about him was exactly the truth, everything. >> same thing. >> let me give her more credit she played a great role in getting jackie through 47, 48 all really you can imagine how tough it was. >> must have been ugly. >> so ugly. >> beyond ugly. >> she was a woman of stature throughout so grateful, so i loved rachel robinson your new book for the good of the game out today congratulations. >> thank you. >> that is terrific takes inside look at number of frshz drug crisis in baseball expansion of instant replay your true feelings about barry bonds breaking aaron's home run record. >> he we have been very close friends i want to see him tomorrow, but i deal with steroid crisis in great depth proud where we are toughest

program in sports maybe in america we dealt with it went through tough times as you know when you go through things like that you are going through some really tense tough times so my feelings about barry, articulate, and that is just the way it is. >> somebody came in this morning, in first question that they asked is what about pete rose hall of famer or what? >> great player, and but -- commissioner back in 19 89 every commissioner since then including the current one has come to the same conclusion. g gambling on your sport is something can't be tolerated. >> important point. >> it affects the integrity of the game. >> but what do you what about those people who are gambling there is video games, there is lots of wagers being made --

does baseball need to have more of a partnership in terms of video games, music to reach -- >> all that is part of the new era, as saying this but that is long way from a player or anybody connected with the game gambling on his team. >> that is the big difference. >> you make important point where you draw the line bottom line let me ask you about justin verlander leveling heavy charges astros pitcher starting tonight accusing league of juicing the paul espn said players on track to break home run record set in 2017 what do you think. >> i saw what justin said i talked to commissioner manfred a lot about this other people in baseball they don't believe the ball is juiced but that is as much as i can tell you right now, look we went through ball juicing in 1999, 2000 i happened sandy alderson head of baseball operations he

went around went to haiti everywhere trying to figure out whether the ball was juiced we never found any evidence that it was as much as i can tell you now i know what justin has said, and -- the powers that be are going to have to take a look at that. >> how do you find younger talent to come in and keep this game exciting how do you make sure you are getting people into the stadium, by the way, i threw out first pitcher at yankees stadium a couple years ago over the plate very proud that have. >> you should be better than my first pitch. >> a lot of some -- >> throwing out there, boins. >> number one in terms of playing talent we have the best wave of young players i have ever seen, let me give you mike trout mike trout statistics after six years for angels, are better than any baseball player that ever lived. maria: wow. >> so the wave of talent is enormously good i guess the other thing would i say about

that i think our demographics are good what i say to you i would take you to game baseball game and -- games in any other sport you will see more young kids at any baseball game than any other sport. >> not too slow moving. >> no, what about technology is mlb doing enough to incorporate technology so that wherever you are, i can watch the gaming? wherever you are, you can interact with players nfl saying take helmets off we want audience to know who players are follow them with family trying to get a passion partition point gettience. >> you have to do a lot of those type of things we had a company baseball advanced media extraordinarily successful you are absolutely right i think we are head of the curve on all that and will continue to be so that how? >> well, you can listen to games on all kinds of different devices, we do

things in the stadiums that we're doing this company has been brilliant successful beyond any comparison to anybody else. >> you wrote in book you had a lifelong love affair with baseball you actually thought well you came from nice jewish middle class neighborhood you wrote dreams of being next joe dimaggio but that ended -- >> the guy, threw a football that was the end then mickey mantle got in the way to a. maria: have come on! >> but no that is all true, first curveball ended my career. >> how about taking the game abroad look what red sox are doing in london. maria: yankees. >> the yankees obviously, you want more. >> we started that years ago, and it is great cubs are going to play cardinals next year, and in london, other places in europe that really want us now, so there is no question that the future of this sport

one of the aspect of the future of the support maria: so what's that going to look like? what do you think that does for the game to go international the way you are? >> its been tremendous, i mean i know we've played games in tokyo, we've played games in puerto rico and it's tremendous because it just in creases the audience and it increases everything we do, and after all, 42% of our players today come from either asia or central america, and so on and so forth. maria: to me it's so incredible how sports commands the premium that it does. people want to see the live game as it's playing. >> absolutely. maria: that's why you've got the most valuable intellectual property on the plan el. >> no question about that. maria: how do you keep it going? >> we'll keep it going just by all the things we've talked about here. maria: terrific. it's great to have you on the show. we're all major fans and we congratulate you on this great book. "for the good of the game" catch

major league baseball all-star game tonight on fox coverage starts at 7:30 eastern the game gets going at 8:00 p.m. eastern right on fox you don't want to miss it have a great day. go see us for the day, ""varney" " begins right now. well that strong jobs report really threw a wrench into the market all those people pouring back into the labor force, wages rising nicely why should the fed lower rates really sharply when the economy is doing just fine. you can be forgiven for thinking but investors want it all rate cuts of a china trade deal too and if they don't get it they will stamp their feet and look at this left-hand side of the screen down triple digits yesterday and down the best part of 100 points when things get started this morning, and the dow will be up 90-odd points, s&p down 10 and nasdac is down about a third of