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tv   Mornings With Maria Bartiromo  FOX Business  July 18, 2019 6:00am-9:00am EDT

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everyone, thanks for joining us, thursday july 18th, top stories just before 6:00 a.m. on the east coast, president trump takes on on the left in a big way, slams the squad and we have all the highlights from the rally last night. netflix losing subscribers, first decline in nearly a decade, stock taking a big hit, down 11%, futures also lower, take a look at futures indicating lower opening for the broader opening better than 50 points, as we await another big group of earnings, morgan stanley ahead of opening bell, we have all the numbers, getting you ready for opening period. u.s.-china trouble, disagreements over huawei bring.
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mornings with maria will ♪ maria: coming up exclusive interview with kentucky senator mitch mcconnell, mill mcb, -- mcburman. joining the conversation jackie, and tom beven and pwc partner mitch roschelle. >> good morning. >> good morning. >> according to wall street journal it was huwaei and issues
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that kept talks to a halt. >> i'm not surprised, their only leverage right now so keep bringing it in because if you couple those things together you can't move forward and the president wants to move forward as quick as he can. maria: the president discussing wide range of issues including progressive party, the four congresswoman, he talked about the squad, he talked about 2020 and the economy. >> leaders coming from other countries, prime ministers, presidents, kings, queens, dictators, sometimes i hate to say it dictators and they all start off by saying, mr. president, i'd like to congratulate you on the incredible economy that you've created, the greatest anywhere in the world by far. [cheers and applause] >> the leading voices of the democrat party are left-wing
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extremists who reject everything our nation stands for, omar has a history of launching vicious antisemitic screams. and tlaib used the f-word to describe presidency and your president, that's not nice, even for me. representative alexandria ocasio-cortez. she's conducted outrageous attacks against men and women of law enforcement, so representative ayana pressley, she thinks that people with the same with the skin color all need to think the same. tonight i have a message for hate-if i would extremists who are constantly trying to tear
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our country down, if they don't like it, let them leave, let them leave. [cheers and applause] >> fi any 2020 democrat is a vote for radical socialism and the destruction of the american dream, frankly, the destruction of our country. maria: crowd is getting loud. >> whether it was or whether it wasn't, amazing has this has blossomed in framework, he's leaning into it, the democrats and the squad are leaning it. it's a battleground, trump reframed it and to go back, if you don't like america you can leave, that issue is going to resinate with a lot of folks around the country, it's now an issue, about socialism versus
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capitalism but also patriotism, do you love this country and trump feels this is a winner for him. and we will see more and more as the campaign goes on. maria: republican who is trying to unseat aoc, businesswoman and jamaican immigrant wanting to unbeat aoc in her own district. does she have a shot? >> well, no, tough district for republicans to run in, again, aoc won her primary with 14% of the vote, she'll get a challenger now but it's a heavily democratic district. >> the issue can this candidate bring up the amazon situation and rally people in new york about all those lost jobs. maria: yeah. >> because aoc has dna at the crime scene in terms of amazon taking off. maria: good point. all those jobs. a lot of -- >> overlapping the congressional district.
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maria: there's netflix earnings, the stock is down big this morning, down 10 and a half percent, lost significant number of subscribers in the u.s. first time in nearly decade, blaming downward trend of second-quarter content, the stock is coming down. >> i'm not surprised by this, there was going to be point where there was many competition in the field too, the whole idea of cutting the cord was that your bill should be cheaper, if you're subscribing to every service, they will not end up being cheaper, they are going for content and there's a lot more to choose from. maria: you the behemoth like a disney coming out and putting content from netflix. >> that's certainly an issue and users will see where am i getting the most content for value that i'm getting, they will switch and adjust bills that way. >> viewers have a finite wallet
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that they are willing to pay for subscriptions and netflix just content, all the other stuff on broadcast or cable, so you're competing for that and then you also have satellite radio, you have music streaming services, how much americans and people around the world want to pay and i think they are bumping up against saturation point. maria: you're right, markets are down this morning, china trade story hitting road block, at odds over chinese telecom giant huawei, buyer of homes drops, you know, i've had andy a number of times, chief security officer at huawei, we are not an arm of the chinese government. if you're not an arm of chinese government why is china so interested, why is this a major point? >> look at all the chip makers
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who do business with them who are actually on the sidelines right now, it's sort of a bigger issue than just that one company because it runs across the entire ecosystem of chips and semiconductors and the like. >> mike pompeo, the u.s. government's position that they are a arm and this is a national security threat. we will see how the commerce department works through licenses, exemptions, if they can do enough on the limited bases to to get back on track. maria: chinese government can decide, well, let's, dictate what goes on, wherever the huawei chips are, they have the ability to do that. we've known that there are have been open doors, back doors, they are called, in a number of
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huawei deals. >> they're just never going step up to the plate and add mid to what's going on and that's part of the problem. maria: we will talk about that, plus votes on the floor, congress bringing two major debates to the table, sun concerning contempt and the other articles of impeachment, the result this is morning, summer is heating up, we have the fan right here on the set, americans bracing for triple-digit weekend, when will it break later this hour. stay with us. most people think a button is just a button.
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maria: welcome back, house democrats putting more pressure on trump administration with controversial vote, cheryl casone in details, cheryl. cheryl: that's right, secretary
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ross was on with maria yesterday here is what he said. >> it's just more political theater and doesn't really have any substance and basis, we produce over 14,000 pages of documents, what's at issue here is about a dozen documents roughly 15 pages, all of which the courts didn't find necessary to make their conclusion. maria: well, justice department released statement states quote, this is more than a political stunt. notorious drug lord could pay for u.s. border wall, u.s. judge ordered joaquín chapo guzmán to spend life in most secure prison in colorado, hand over nearly $13 billion of his drug money to
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the united states, well, republican senator ted cruz and ben sasse propose that that cash is used to fund border wall. the bill is called the el chapo act. heat of demonstrations and protests, police fired teargas, protestors were heading to governor's mansion. demonstrators are calling for resignation for governor ricardo rosello of private messages in which he used homophobic and has -- misogynistic language. incredible story. >> look, drug trafficking is part of the problem, if we can use that money in a positive way i think it certainly will happy, we chuck a little bit. maria: good idea. >> absolutely. maria: what else should you use that money for?
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>> for a lot of different things, certainly securing is border is what the government wants to do. maria: what's holding things up later this hour, wait till you see what the wall street journal is reporting, flame on, spacex newest spacecraft malfunctions on takeoff, amaidsing video when we come back. i switched to liberty mutual, because they let me customize my insurance. and as a fitness junkie, i customize everything, like my bike, and my calves. liberty mutual customizes your car insurance, so you only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ can't see what it is
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check it out! now you can schedule a callback or reschedule an appointment, even on nights and weekends. today's xfinity service. simple. easy. awesome. i'd rather not. maria: welcome back, futures are lower this morning, take a look, dow futures indicating decline of better of 40 points at the tart of trading, s&p futures down 3, and nasdaq lower by 18, nervousnesses over china story, the president talking about
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trade deficit with china and taking a shot at former vice president joe biden at rally in north carolina, watch. >> the european union is terrible to us on trade, frankly they are as tough or tougher than china. with china, $507 billion, many, many years they've been taking and guys like biden, we would stop that, he was there for 8 years, no, trump is stopping it. [cheers and applause] maria: wall street journal reporting that u.s.-china trade talks are stuck, stalled over questions of huawei, spoke with andy about connection. we have spoken about the relationship between huawei and government, why would the
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chinese government want ban lifted so much? >> we do not want or we do not speak for the chinese government and they don't speak for us. we still welcome the opportunity to talk directly with u.s. government to work out these proven risk-mitigation measures. maria: joining right now jon hilsenrath, we want this particular data, send it asap under law in china they have to do so. >> right, that's at the heart of what is holding u.s. trade talks with china right now. u.s. national security officials want huawei to be separate issue, not have anything to do with trade negotiations, they see it as national security issue and not trade issue, the president when he met with president xi a month or so ago agreed that the u.s. would resume some to huawei and we are kind of stuck right now in negotiation offense who can -- negotiations of who can sell to
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huawei. maria: you wonder if this will play out and play into markets, do we need to see some resolution here? what is the resolution, president trump and secretary pompeo have been clear regarding huawei. >> the markets are getting the idea that this is will be a long and drawn-out process. it's striking to me what happened when the president talked about putting tariffs on méxico a couple of months ago, the markets reeled, people started worrying about the u.s. economy slowing down, the federal reserve changes view on interest rates, you're not seeing that kind of reaction to these simmering trade disputes with china. i think when it comes to china we are in it for the long haul and investors are getting used to that idea. maria: let me turn to the fed, the fed reported that the u.s. economy grew at modest rate in recent weeks with ongoing trade
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uncertainty, jon, are you looking for quarter point or half on july 31? >> looks like it would be a quarter point, some of the argument for cutting rates has dissipated in the last few weeks, the economy looks pretty strong, the consumer spending data that have come out have been robust. if the fed was or worried about the economy significantly slowing, that's got to be off the table, the main arguments for the fed cutting rates, one is we are talking about all of the time, the inverted yield curve, long-term interest rates, lower than short-term interest rates, that's the sign of low inflation and slowdown in the economy and the fed wants to reverse that, so i think that's one of the main reasons why they'll probably do something in july but it's going to be a trim, it's not going to be a full shave. >> jon, good morning, it's mitch, one of the things that i was really waiting for hot
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anticipation what came out yesterday, i mean, you look at it and looks good indication, it really pans in the country, it was generally optimistic, what's your take on whether or not there's nuggets because chairman powell referenced waiting for it as well but that's going to influence any decisions on their part. jon: yeah, i guess you and jay powell were in anticipation. i have nothing else to do -- maria: you have to get out a little more. >> it's hot out and i like to stay in the office. [laughter] >> you know, i think it was a positive report, the fed does look at anecdotal comments on the economy, it supports the idea that, you know, we are not hitting the wall. growth is slowing this year, you know, we are in the 3% terrain last year, looks like we are closer to 2% this year, but, you know, as i said the consumer is going pretty strong. business investment, you know, might have lost a little bit of an edge because of all of the trade uncertainties because, you know, this month the economy,
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this expansion has become the longest expansion on record, i mean, it's just nothing in the data that says that's about to end and that's an important issue of the fed, jay powell and here, you know, his interests are aligned with president trump's, he said his main objective right now is to keep this expansion going as long as it can and the data suggests that this expansion is still going and, you know, for the president, that's the most important thing too if he wants to get reelected, he has to keep growth going and keep tun employment rate low. you know, coming back to interest rates, i think the fed might trim but it's just to steady things, they're not in any kind of emergency mode right now. >> and they're not in emergency mode, jon, i'm jackie, is the market going to react really negatively? >> well, you know, i think it's market conditions that are really driving the fed right now, so i agree with you, i
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think that jay powell has on several occasions really gotten expectations up for something in july if he doesn't follow through, stocks will probably sell off, you know, and then focused on the bond market, there's this puzzle, why are long-term rates lower than short-term interest rates, in the past that's been a dangerous signal and they want to work their way out of that. it's the easiest way to do that. >> jon, tom, back to president trump and china, he raised the prospect of slapping additional 325 billion in tariffs on china, what -- what are the prospects of that, how real is that and what might that do? jon: well, right now it looks like they are in a stalemate, you know, they're talking about talking but they are not really getting anywhere in part because of this hua, -- it's effective
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way to fight back against the high niece and other trade partners and see it as source of revenue at a time when we are heading toward trillion dollar deficits, so i think he is prepared to go in and raise them if he doesn't see the kind of progress that he wants, right now we are not seeing that progress. maria: all right, we will leave it there, jon, great to talk to you. jon hilsenrath, journal there joining us, coming up face app, the popular russian app could be security risk, urging people not to use it. business of the cloud, bill joins me next to discuss technology growth and trade, exclusive on earnings coming up. your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events. all in one place.
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much for joining, i'm maria bartiromo, thursday july 18, top stories right now before 6:30 a.m. on the east coast, earn physician focus this morning, united healthcare raising forecast after beating expectations, morgan stanley, next one to watch. netflix losing subscribers in the u.s., this is a first decline in the u.s. in nearly a decade. we are looking at netflix stock trading down almost 11% this morning, just about 11%, futures meanwhile indicating a lower opening for broader average, take a look at the dow, dow futures down 40 and nasdaq by 17, stock fell as earning season exposed weakness in outlook for some companies, people are wondering what growth looks like in the second half of the year. industrial and energy stocks were biggest drags yesterday, yesterday the s&p was down about 20 and nasdaq lower by 37.
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global market this is morning look like this, ftse down 30 points and cac quarante lower by 20 and dax index down 32. in asia overnight, nikkei average in japan down 2% overall, shanghai composite better than 1%. south korea central bank lowering interest rates for the first time in 3 years cutting growth forecast for the year as well, bracing for a dangerous heat waves, many areas of the united states to hit triple digits this weekend, we have the forecast coming up and then this, face app security concerns, lawmakers are calling for investigation into the popular russian developed app, concerns about what happens to your data, setback for spacex to tell you about, the ship bursting into flames during testing, all the stories coming up this morning. first toptory this half an hour, the big business of technology and cloud computing, the company
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reported revenue of $7.4 billion and cloud revenue of 1.93 billion and up 40% from a year earlier, joining me right now ceo, bill mcburman. pleasure to see you. >> good morning. maria: characterize the quarter for us, i know the cloud business is important at sap and important in general. >> cloud was up 40%, cloud business was in double digits, our operating income and total revenue was up in double digits, we like the triple doubles when things come in strong, overall the business is in really good shape and we are excited to have a command performance in the back end of the year. maria: what are you expecting for second half, tall expectation that things will slow down quite a bit. >> interesting, i was actually in china in a meeting with lee
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when a whole g20 was going on in japan and clearly in asia you do see some supply chain dislocation, so, for example, companies that are moving their manufacturing out of china to places like vietnam, malaysia and even méxico to avoid this tariff scenario, so there is some global trade dislocation out there and what we see at sap, when that happens, you can have some decisions postponed as decision makers say, wow, i have to build somewhere else. i have different supply chain manufacturing and the whole value chain comes into material, we tend to do better believe it or not in time of changes and uncertainty, we are looking for a very strong second half. maria: have you seen an impact on the tariff situation on your company?
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>> our experienced has not experienced it, it's our customers that are experiencing it and primarily you are seeing this in china and other parts of asia as the business is now moving from china in some regards, so we have like 70 million businesses, you have to keep in mind in china, but if large companies start moving manufacturing and changing the supply chains to avoid the tariffs and they are going to other places, that is going to form a very interesting dynamic in asia, it will be a software opportunity for us but also be challenging, i think, on china and in the region in general, they'll be a lot of change. maria: so what are you expecting in terms of growth overall, i mean, europe as had hard time generating any growth, most valuable in europe, what are you seeing in europe right now. >> our business is unique, we have a very unique brand position in europe and digital transformation is at a fever pitch, if you talk to any ceo, they're very, very careful about
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how they invest, but they know they have to invest in digital transformation. so in europe, what you're seeing now is not just the idea of operating the companies better, they know they have to connect with experiences, so how do i connect my employees, my products to my customers and how do i create mass customerrization at scale so i can offer services to my consumers otherwise you will lose market share and not grow. we have new solution and new innovations to accommodate that in my part of the world. that's why we are growing double digits in europe and nobody is. maria: do you see impact of the slowdown in europe from your customers? how are bookings looking in the future? >> as you look at bookings, pipeline for software business or pipeline for cloud business, we rigorously manage this, the
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pipelines are excellent and that's why i have, in a resalute way, 4-year guidance and more than ever our customers need sap to lead them through the change. maria: you're collaborating with microsoft and adobe to take on sales force, you have microsoft partnering up, how is this impacting in. >> yeah, well, we have a way of handling our own business, so we have the sap cloud franchise so we can put everything we do in the cloud and we can offer our customers white-glove service and we will do it all for them but we recognize that it's an open ecosystem, so if our customers are teaming up with microsoft, that's great, we are teamed up with microsoft, we have embraced the hyperscale model and the sap platform is the connecting issue that puts all of this together, i'm happy
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if microsoft and adobe team up with sap, i'm also happy to partner if that's in the interest of the customer. we will get good business, good partnerships and continue to grow the company in double digits in the second half and beyond. maria: meanwhile you have amazon. >> yeah. >> aws also wanting a piece of all of it. >> absolutely, that's why we have to be open and embrace the hyperscalers and the system, as the market-leading software company, we have to go where the customer wants us to go and i care deeply about our shareholders and making sure we deliver our promises, that's why today i'm super excited to get in front of our whole company and rev it all up, command performance. maria: you are so good at that, you get everybody excited, i'm sure it's going to be great. let me ask you about management portfolio sap becoming recent
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addition to active investor, how does that change your thinking in terms of how the company goes now? >> it's a very fine investor and adviser and i'm excited to have them into the sap stock. what elliot wanted and what all of our investors want is they want sap to take the operating margin performance to the company and improve it 500 basis points between now and 2023. so elliot management like many other investors wanted that and i'm going to make sure that they get it. so that combine with cloud gross margins which is another reason, maria, that we are interested in embracing the hyperscalers because we can with their infrastructure provide higher margin performance to our shareholders, so this embraced strategy actually drives margins and delivers greater value for shareholder. maria: are you able to take customers from oracle and
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increase market share? >> it's so easy, one of the things we did this quarter we improved cloud gross margins by 4 percentage points, one of the ways we did that is by getting our company off oracle. no secret that we made bold moves in realm and the companies that we acquired run oracle, taking that out, 21st century in and as we do that we will take a 100 million in costs out of the equation, not only run better, not only help customers but do it at much lower costs. maria: that's what all the analysts are talking about because of acquisitions you're able to take market share from oracle and grow margins like you just said. >> look, s4hana, signature system in economy today is ripping everybody in the entire software industry, if we could do that really well, we will continue the growth trajectory
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and improve on margins as we said we would and have a command performance in the second half and beyond. sap is one of those unique rare franchises that will continue to grow and grow and grow. maria: let me ask you about technology and overall regulation, amazon facing antitrust investigation in the e, over the company's role in selling products and marketplace operations, executives from facebook, google, amazon, apple faced grilling on capitol hill this week and last week i spoke about president trump and asked him about regulating the technology industry and i thought that was interesting what he said, you will probably see legislation before competition, listen to this. >> twitter is -- is just terrible what they do, i've had so many people come to me, sir, i can't join you on twitter. 100%.
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maria: would you rather see competition or legislation -- >> you may need legislation in order to create competition. maria: do you want to see legislation for tech, how do you see this, this bigger hand from government now? >> well, i believe strongly that you have to protect the consumers and the privacy of their data which is why sap has always said, the data is the customers' data, it's not sap's data. we were the first company in the world to be recognized by british institute for protecting data of customers and their consumers, we happen to be the best in the world at it. maria: is it going to impact you if you see actual regulation? >> absolutely not. in fact, we are one of the dynamic leaders, you know, one of our great partner is am and tim cook and i were on the statementing together recently in orlando saying this clearly, the data is the customers' data, you to protect the data, so we have been doing that from the
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very beginning, companies that also do that are our friends and our partners and i do think this is going to become one of the really important things in the new economy. maria: you are expecting regulation of some sort? >> i'm saying it's entirely possible and it's understandable, you to make sure that the consumer is protected, there's no doubt about that, you know, we have a very big focus as you know on experience management and this idea of an omni channel, e-commerce world and the data of all consumers, whether it's social interactions or actually transactional volume as they buy things, you know, companies need to understand that data is the consumers', not yours, only can you use that if you're given the permission to do do and in the best interest of the consumer and not you, i'm all in favor of doing the right thing for customers and their consumers. maria: all right, we will leave it there. i know that we stared about stimulus in europe, you want to
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see fed rate cut in 2 weeks? >> look, i do think there's a lot of attention right now on doing the rate cut and i would like to see it because the american economy is doing very well and i don't think anybody can argue that, but we also have a very, very interesting trade environment right now so why not pump it up a little bit and give business infusion of confidence and drive shareholder value. i'm in for it. maria: thank you, ceo at sap. coming up it is hot, hot, hot, millions of americans braising for weekend and how to beat the heat, deploying baby shark. ♪ maria: take a bite out of crime, details when we come back.
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obviously. retirement, we're going with a long-term play. makes sense. pet insurance, wait, let me guess... flea flicker. yes! how'd you know? studying my playbook? yeah, actually. maria: welcome back, breaking news right now, iranian state television reporting that the iran revolutionary guard has seized a foreign tanker with 12 crew members accused of smuggling oil, hitting the tape now, the report says that fuel was being smuggled by iranians to foreign customers and was intercepted in the straits of
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hormuz. senate minority leader chuck schumer seeing red over face app. >> popular app, senator schumer calling on fbi which app makes people look older or younger, it's really gone viral. the russian company developed face app and denied that transfer to russia, we shall see. united health raised earnings guidance for the entire year 2019 and also reported better than expected earnings, beat on both top and bottom line, stock up as you can see 1 and a quarter percent on premarket, ibm's latest results beating expectation but revenue slipped for fourth straight quarter, you can see a little bit of pressure, also this, san francisco making changes, they have pulled proposed ipo from
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november ballot, the measure would have increased taxes on companies that enter the public market like uber, like lyft, those companies are based in san francisco, opponents, broad and would hit competition in the city. san francisco with a similar tax measure in 2020 ballot, stay tune, not over. spacex setback in quest to send humans into space, erupted into a fire ball during testing, the rocket was a prototype of much larger one that spacex is hoping to use to send people to mars, right now they are investigating the cause of the very fiery explosion as you can see on your screen, maria. maria: all right, cheryl, keep watching that, breaking news from iran, we are waiting on morgan stanley, big name reporting, the numbers as soon as they hit the tape and reaction, get the fan out, summer is heating up, millions of americans bracing for-triple
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digit weather weekend, when will this break, later this hour, stay with us. can't see what it is 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.
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hey! i live on my own now! i've got xfinity, because i like to live life in the fast lane. unlike my parents. you rambling about xfinity again? you're so cute when you get excited... anyways... i've got their app right here, i can troubleshoot. i can schedule a time for them to call me back, it's great! you have our number programmed in? ya i don't even know your phone anymore... excuse me?! what? i don't know your phone number. aw well. he doesn't know our phone number! you have our fax number, obviously... today's xfinity service. simple. easy. awesome. i'll pass.
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maria: welcome back, headline as cross america this morning, atlanta journal constitution reports deeper findings, glitch with thousands of drivers with suspended licenses, computer with burp in system, unsuspected drivers out on the road with suspended licenses, admitting 2,000 old and previously records were sent to state by accident, not every case resulted in driver's license suspension.
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san francisco chronical writes, berkeley becomes the first u.s. city to ban natural gas in new homes, the city council unanimously vote to go okay the move to ban gas from new low-rise residential buildings, that begins january 1. the natural gas ordinance requires all new single-family homes, town homeses and small apartment buildings to have electric infrastructure. and south florida sun, city deploys continuous loop of baby shark in hopes of deterring homeless from camping in and out water front park. ♪ ♪ maria: ask any parent this may very well do the trick. baby shark will keep the homeless away. they admit this is temporary fix and working on permanent solution. it's funny.
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[laughter] >> it's going to work. maria: yeah. >> san francisco has gotten really incredible in terms of the homelessness there, by the way. wow, hot and dangerous temperatures moving across the country this morning, fox news meteorologist janice dean live in weather center, give us the news. >> it's going to be hot for millions of people today through the weekend where we have heat warnings for millions of folks where it's going to feel well over 101-degrees for the next several days, dangerous heat, we want to make sure everyone is taking care of everyone, kids, bring your pets inside, take care of the elderly, temperatures well into the 90's for all of the big cities including new york city, including boston, these are high temperatures but with the heat index it's going to feel well over 100-degrees for so many people, so here is today across the central u.s., 108, 110-degrees over portions of the midwest and the central u.s. and in moving up towards the east coast this weekend, that's where we are really going to see the heat across new york city up
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towards boston, even new england, that could cause power outage concerns, know where your cooling centers are, all right, that's a big deal, light-weight clothing, light-colored clothing, i'm telling people to stay indoors, air-conditioning, drink plenty of water, don't leave kids or pets in hot car, dangerous, potentially deadly, there's forecast today, 94 in houston, 85 in new york but the heat is moving north ward and get towards northeast by week's end into the weekend and we have threat for severe thunderstorms across portions to have northeast back through the upper midwest, the big story is the heat, the good news for the northeast is it will break next week, but the weekend will be really, really warm and potentially dangerous. maria: okay, we will get ready for it. have to manage it. janice, thank you. janice dean at the weather center, my exclusive interview with senate majority leader mitch mcconnell reacting to president trump's speech last
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night and a lot more. morgan stanley, numbers and analysis next hour right here mornings with maria, back in a minute. -driverless cars... -all ground personnel... ...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. . . . most people think a button is just a button. ♪ that a speaker is just a speaker. ♪ or - that the journey can't be the destination. most people haven't driven a lincoln. discover the lincoln approach to craftsmanship at the lincoln summer invitation. right now, get 0% apr on all 2019 lincoln vehicles plus no payments for up to 90 days. only at your lincoln dealer.
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flo has it, i want it, it's a whole thing, and she's right there. -yeah, she's my ride. this date's lame. he has pics of you on his phone. -they're very tasteful. maria: welcome back. good thursday morning, everybody. thanks so much for joining us. i'm maria bartiromo. it is thursday, july 18th. your top stories right now, 7:0. earnings are in focus once again. morgan stanley is due out any moment right now. the estimate calls for a profit of $1.14 a share on revenue of $9.99 billion. stock is up going into the numbers, up about 1%. we'll bring you the numbers an full analysis coming up. microsoft, a name to watch this morning. this as the technology giant warns of hundreds of attempted election related hacks from other countries. we're watching netflix, the streaming giant takes a big hit after reporting a loss of u.s. subscribers and slow growth overseas. the stock down better than 11% this morning.
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futures are lower, indicating a decline of the start of trading of about 17 points on the dow, down almost a point on the s&p and down 10 points on the nasdaq. stocks were down yesterday as earnings season exposed weakness in growth outlooks for some companies. industrial and energy stocks the biggest drags. plaintiffs in worries a that the -- there's worries that the economies and profits will slow down the second half of the year. dow industrials were down 116 points, nasdaq lower by 37. global markets look like this. european indices are mixed. fq100 down 21, cac up 13, dax lower by 38. trade fears continue to drive markets down in asia. worst performer was japan, nikkei average down 2%. exports fell for the seventh month in a row in japan, driven by a he decline in chip making tools and automobile parts to china. border crisis, 2,000 additional troops headed to the southern border. we have the latest. nancy pelosi is warning a deal to raise the debt ceiling is
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needed by tomorrow. deadline is looming. we're looking at where we could be headed from here as the clock is ticking this morning. plus, lay away for teen, find out the retailer that is going after cash-strapped teens and millennials with a buy now, pay later approach. all those stories coming up this thursday morning. joining me to break it down, jackie deangeles, tom bevin and mitch rochell. great to see everybody this morning. >> good to be here. maria: we're waiting on morgan stanley earnings. your take on what the banking sector has looked like so far? it's been a mixed story, i guess. what's your take in terms of what you're seeing? bank of america yesterday. >> very strong from an economic perspective. the consumer has been driving the earnings for all the banks that have been reporting. the consumer is part of the economic expansion we're seeing in the u.s., that bodes well for the economy. may not bode well for the banks. some of the pieces of their business are falling because the
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yield curve is not exactly cooperative for the banking industry. i think it's good for the economy. maria: what happens when the fed krut' cuts rates in two wee, we'll talk with tom brown coming up this morning. joining us this morning, my exclusive interview coming up with senate majority leader, mitch mcconnell. ken laingone is here as well as james langford. joining us right now is tom brown and tom, it's always a pleasure to see you. how would you characterize the banks so far in this quarter? >> i think it's a pretty good characterization. very strong results. you're talking about 15 to 18% returns on equity. bank of america yesterday, 17% earnings per share growth. so i think the industry and the big banks in particular are doing very well. maria: you called b of a a long time ago, you've been liking that stock. jp morgan chase, you mentioned
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bank of america, wells fargo, citigroup, helping to lift the sector after beating estimates. what about the second half, we have the federal reserve going to cut rates in two weeks, what does that do to all of this? >> earnings go down. not down on an absolute basis but certainly the flatter yield curve and lower interest rates on an absolute basis are going to be tougher for net interest margins and for them to grow their earnings per share. >> if you're running one of those banks and you know that the yield curve is flat, if not slightly i'm verted, and rates are going to come down potentially, how do you adjust the business model a little bit for the rest of the year to try to pick up revenue and earnings in other parts of the business? >> you do what bank of new york did yesterday and what brian moynihan said yesterday which is we're going to be tighter on expenses. but there really are no options. now, a negative inverted yield curve is not normal. so it will change and that's
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what i think they have to do is just wait it out until we get back to a more normal environment. >> you look at some of the big banks, the stock prices year-to-date, citigroup, 36% increase, goldman sachs, 27%, b of a, 18%, i'm wondering if you feel like the stocks are a little overdone here, even though we're seeing strong earnings. >> heck no. [ laughter ] maria: you want more. >> they had the worst december that they've ever experienced. the book ends are very important. we're coming off of a period where the stock's peaked in about may of last year relative to the market on an absolute basis. we're just beginning to recover. on average, you're paying 17 times earnings for a company in the s&p 500 and for a large bank, you're paying 8 to 11 times earnings. so still looks to me like -- maria: why are they trading at such a discount to the rest of the market then? >> there's so much concern about an inverted yield curve and a recession. a recession brings higher
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losses. that's the biggest swing factor for bank earnings is a higher loan loss provision. just don't see that. no signs on my radar screen. >> no one talks about it in any of the earnings releases. in fact, delinquencies and some of the banks were better than expected. >> right, right. maria: are you saying you don't expect a recession? >> no. i think the only thing that shows you or would scare you about a possible recession is the inverted yield curve. but besides that, again, you mentioned the strength of the consumer, it's incredible with employment being as strong as it is and incomes being -- going up a and the balance sheets are better than we've ever seen. so it's a strong environment for the consumer. maria: when you look at a company like morgan stanley which we're waiting on coming out with earnings any second here, wealth management has been real important. they've done a great job in terms of gathering assets. is that where the growth in the business is, wealth management? how do you characterize this
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move? ubs was really the first to really bone up on wealth management and gain assets. >> yes. if you think about it, maria, 10 years ago and how much goldman sachs and morgan stanley have changed, it's really incredible. goldman sachs spending a billion three to become a retail bank and morgan stanley really converting the company into more of an asset manager than an investment bank. it's really been remarkable. maria: he's done a great job with that, certainly when you compare to where the ceo was in the throes of the recession, the worst financial crisis we've seen. so do you expect a good number from morgan? what are you expecting in terms of the most important issues to look at once the number hits the tape. >> what most people will be focused on is the revenue number you mentioned, just under $10 billion. i think it would be nice to see it over $10 billion. but there's a lot of just -- the short-term swing factors will take that one way or the other. maria: any stocks you want to own right here? i know you like b of a.
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>> still like b of a. still like citi. there's an incredible number, there's an eight large banks where the combination of their trailing 12-month difficult depend yield, plus the amount that they're reducing their capital stock is over 9% and they're trading at less than one and-a-half times tangible book value. so it's an industry that is generating a lot of excess capital. they're using it to return to shareholders and the valuations of the companies overall are low and particularly relative to the market. >> tom, we were talking about the big banks but how about regional banks. they get lost in the headlines during earnings season. is there anything in the regional banks that's interesting to you? >> sure. i love what i would call niche regional banks. we had one last night that reported their earnings, tri-state capital. what they do is they have no branches. they're just a business lender on one side and they make
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personal loans on the other side. a company that's growing 15 to 25% a year on the bottom line. so there are -- there's still 5200 banks in this country and what i love about being an analyst for 30 years is that there's always a great story out there. you can always find a good, well-managed company that's doing something different. maria: there could be a deal in a lot of those regionals, right? these companies are not facing the cap that the largest are in terms of acquiring more deposits. >> you were talking about that yesterday. maria: yes, i was, with antoine schultz. he thinks we'll see a lot of deals in the small and regional banks, do you think that. >> you can always say yes because there's 200 deals a year. maria: there you go. >> i'm going to go yes. maria: we hope you'll stick around. morgan stanley numbers are coming out. we want your reaction when they do. thank you. securing the border, 2100 troops headed to the u.s./mexico border.
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senator james lanford will weigh in coming up. and american eagle rolls out a lay-away planta plan targeting shoppers. we'll have details following this. ♪ i've got the eye of the tiger. ♪ a fighter. ♪ dancing through the fire. ♪ because i am a champion. ♪ and you're going to hear me onar. ♪ the songwriting process. oh, here we go. i know i can't play an instrument, but this... this is my forte. obviously, for auto insurance, we've got the wheel route. obviously. retirement, we're going with a long-term play. makes sense. pet insurance, wait, let me guess... flea flicker. yes! how'd you know? studying my playbook? yeah, actually. (carrying up to 50 times its tbody weight.essly marches on. it never questions the tasks at hand. but this year, there's a more thrilling path to follow.
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fun fact: 1 in 4 of us millennials have debt we might die with. and most of that debt is actually from credit cards. it's just not right.
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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. maria: welcome back. a deadly fire at a japanese animation studio. cheryl casone with details this morning. cheryl: at least 13 people are confirmed dead, maria, 10 others presumed dead in the suspected case of arson. about 35 others were injured. some of them critically. police in japan say the suspect that started the fire is being treated at one of the hospitals there. there's no word on a motive for this attack. 2020 election day more than a year away but microsoft says it has already detected nearly 750 attempts to infiltrate u.s. political party's campaigns and
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think tanks. microsoft won't name the targets but they say all of them are protected by the company's service that identifies cyber threats. there's microsoft, a little lower in the premarket of course. that's a company that's on earnings watch for us this week. american eagle is helping cash-strapped consumers. the outfitter planning to offer a buy now, pay later service. shoppers will be able to make a sure, pay in installments. analysts say buy now, pay later encourages shoppers to spend more money, appealing to younger shoppers who have less disposable income. back in the day, they called it lay-away, maria. maria: yeah. or use your credit card. cheryl: you could pay that one in installments. but okay. maria: that's funny. anything to give the younger shopper to spend money. >> it's sort of a reinvention of an old consistent isn't concept. what's interesting is consumers are out there and they're spending and they're using and swiping credit cards and that's
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what's so important right now. i think the fed will look at that also, watching the inflation target very closely and it will say, you know, things don't seem as bad as they did, say, two or three months ago. maria: you're right. happy to have tom brown this morning with us and tom, when you look at the housing market as through the eyes of perhaps bank of america or wells, what is happening with the consumer in terms of housing? >> so the single family housing starts came out yesterday and the single family starts were strong, multifamily was weak and i do think we had over-building nationally in the multifamily sector. but the single family sector with these mortgage rates doing pretty well. maria: quick break. we're waiting on morgan stanley earnings and we're looking at the budget battle. then this, oklahoma senator james lankford will join me next on the shutdown showdown coming
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up. netflix nail biter, the company loses subscribers in the u.s., what's behind that decline, we'll talk about it as the stock is down 11.5% right now. stay with us. ♪ you can find me. ♪ in the back of a jacked up tailgate. ♪ watching all these pretty things. ♪ get down in that georgia clay.
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can't see what it is 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.
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maria: welcome back. that buildup at the border, the pentagon is sending more than 2,000 national guard troops to the southern border. they will bring the number to nearly 6,000 at the border. during his rally in north carolina last night, the president doubled down on the need for tighter border security and that wall. >> unemployment among hispanic americans where we're doing really well, you know why, because they want a strong
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border. they want it because they understand the border better than anybody. they want that strong border. they want that wall that's being built right now. [ cheering and applause ] >> they want that wall. and they really do. they understand the border better than anybody. and they don't want criminals coming in. they don't want crime coming in. they don't want to lose their jobs. maria: this as a new political morning consult poll is showing a majority of voters, 51%, support the president's plan for deportations and i.c.e. raids. joining me right now is senate finance and homeland security and appropriations member, oklahoma senator james lankford. good to see you this morning. thank you for joining us. what are you expecting in terms of the troops going to the border? do you expect that we're going to see a change in this crisis situation any time soon? >> no, it's continued support for what's happening there. the troops are not going for law enforcement activities. we have customs and border
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patrol, we have law enforcement there. they're going for humanitarian relief, additional assistance, some of the next layer behind all the law enforcement. we have to have additional law enforcement individuals to be able to help us through this process. with this many thousands and thousands, upwards of 4,000 a day that are crossing the border illegally, we've got to have places to be able to help manage all these folks, ways to be able to process them in the best way possible. maria: it's just incredible. we're showing pictures of me in el paso. i took the show to the border a couple months ago. it was incredible to see the kids put in dangerous positions. what are you going to do as the colleaguings ocolleaguings -- cn the left don't seem to see the dangerous situation it appears to be. >> that's the painful part of the journey. for months the trump administration said this is a humanitarian crisis, we're having children trafficked. democrats were saying it's manufactured, this is because of president trump and the rhetoric. now they're seeing the
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humanitarian issues, finally voting for additional support that we've been asking for for months. they won't acknowledge the human trafficking that's going on where we have thousands of kids that are being repeated in the border, where they come across with one adult, then sent back across an bring another adult across. some of these children, we don't know where they are. some children were report todd have been purchased in other villages, and they have no idea where to return the kids. the loophole is if you cross the border with a child, you get into the country. that encourages adults that want to get into the country to get their hands on a child and be able to bring them across so they can get in the country. we've got to close that loophole and so far democrats said they want to leave the border open, they want to leave that exposed. over half of the adults that are coming now are bringing a child with them and the vast majority of minors that are coming a across now that are males claim to be 17 years old. we don't know if they're 25 or if they're 17. they have no documentation. when they walk across the bore
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border, they say i'm 17 because if they say that, they're going to get in. maria: someone is training them to say what they're training. what are you going -- someone is training them to say what they're saying. you look at the democratic party, they can't get together. they're divided with the progressives turning up the heat and then the moderates are fighting with republicans. so do you just need to win another election in 2020 to -- in order to get the wherewithal to change the loopholes? >> there are several things that have to happen. one is democrats have to big out if they're for open borders or not. they said they're not for open borders but the new progressives clearly are. they want to abolish i.c.e. there's a couple things that have to happen. the administration is working with guatemala and mexico to be a third country for asylum seekers. if you're coming from anywhere but mexico, as you come through guatemala, you have to request a asylum in mexico.
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that's the international norm. that's what happens all over the world. when you seek asylum, you come to the next country that will accept you. doing i.c.e. enforcement, what the president is asking to do is enforcing deportations where the individual has gone through the due process system in a court of law and they said no, you don't qualify to be here. if you want to come to the united states you have to do it illegally. enforcing interior is the other way to get this going. maria: we let in, what, a million people legally that go through the process, getting the green card, et cetera, every year. is that right. >> 1.1 million people, that's about 700,000 that go through citizen pshiship every year. it's amazing ceremonies. maria: you're talking about a million apprehensions on the illegal side. i have to turn to the clock and ticking and the potential shutdown slowdown. nancy pelosi set a deadline for tomorrow for a deal on spending
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and a debt ceiling. they're hoping to avoid a government shutdown before the congress recesses on august 5th. last month, the homeland security committee advanced the government shutdown act. tell me about that. >> we've been trying to get a budget deal, just the top-line number, doesn't get the details oint. won it. we can't get the first number, if we get that done next week, we go on to the 12 appropriations bills. we've had 21 government shutdowns in 0 40 years. this is not new. what i propose is simple proposal. if we get to the end of the fiscal year, we shouldn't hold federal workers hostage in the process. they don't know what their job prospect is. the american people shouldn't feel it. congress should. what i pushed is a simple criteria. get to tend of the fiscal year, congress has to stay in continuous session until we get the budget done. at the same time, we have a
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continuing resolution that keeps budget spending the exact same as last year but congress can't leave. weekends, weekdays, we're in session, no one can travel until the budget negotiations are done. it's pretty stored. most people can't leave work until the work is done. congress leaves on weekends even when they're shutdowns. if we stay here, we'll get negotiations done. maria: you think that will be enough to keep people in town to work on this. it's a spending problem, largely. it is once again the pushback on military spending? >> it is. democrats want to spend as much on nonmilitary as we spend on l military. we as republicans have pushed back and said we should spend on what is strategic, what we need to spend on, that if we need to -- it doesn't make sense. democrats continue to push what they call dollar for dollar increases. if you want to do more defense spending, you've got to increase everything else. i think we should be more strategic. that has been the big fight. maria: in terms of the defense
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spending, what's the argument to continue to raise the number on defense spending? i recognize we've got more issues today in terms of foreign affairs than we ever have when you look at iran and you look at china and the other threats out there. but make the case for keeping the spending levels where you want them on defense. >> so on defense, we're still trying to recover from the time of the obama administration where they did drastic cuts in defense. that was their focus, where they can push dollars away from defense. we're recapitalizing. we need our troop levels to be correct. we're facing different threats now as we have a rising china, way havwehave a rising iran, weo make sure we're prepared to be defensive, to say don't attack us, don't come at us because we're fully ready to defend ourselves. it deters people from engaging in war. if we show our safes wea severad not ready, that encourages
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people to bring the battle to us. maria: is the fight between aoc and pelosi or the squad and pelosi is that just noise or is this underlying a fundamental difference in governing. >> it's a fundamental difference. the progressives are trying to take over the house. they are really the leaders of the house. the house doesn't move unless they give permission to everyone else to move. they are fund raising to be able to primary most democrats in the country, so they've not only taken on the position in the house, they're trying to take out every other democrat and bring in people that agree with them. so this is a fundamental that we're watching i in the democrat to a more socialist left. one house member said nancy pelosi is the moderate in our conference because so many of the new democrats are so far left and they're returning the conference. maria: nancy pelosi is really not a moderate. >> she is certainly not a moderate. maria: senator, thanks so much.
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>> thank you. maria: james lankford joining us. be sure to stick around with my interview with mitch mcconnell, coming up live this morning at 8:00 a.m. eastern. join us for that. we'll be right back. your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity. lick fast like a cookie dough ninja. 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 through fordpass rewards. it all adds up. don't you love math? so get here asap because tasty deals and summer go fast. get in or lose out on 20% estimated savings on select ford models, plus earn complimentary maintenance through fordpass rewards.
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maria: blakeing news, morgan stanley out with second quarter numbers. let's get to lauren simonetti with the numbers. lauren: this is a double beat, earnings per share, $1.23 versus the estimate, maria, which was $1.14. revenue was a beat, coming in at $10.24 billion in the second quarter versus the expectation of $9.99 billion. the stock is down 1%. trading revenue in the quarter, down 17% at $2.73 billion. investment banking revenue big for morgan stanley, coming in at $1.59 billion. and asset management net revenue, $3.22 billion. most of the business that morgan stanley gets, most of the revenue from those businesses comes from fees.
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so i'm looking also to see if we get anything on fees just yet. but this is the last of the major banks to report and it looks like the numbers, although the stock reaction is a little better now, still negative. the numbers on the top and bottom line did beat, maria. maria: maybe the reaction is because of the decline in trading revenue, lauren. thank you. lauren simonetti. tom brown is with us this morning from second curve capital, an expert of the sector. your reaction. >> my first reaction, that's a better mix of an earnings beat than you would expect, just hearing the revenue side of things. it was a tough trading quarter, so that's not to be -- i we're t surprised about that. the fees were impressive. maria: it's interesting to see trading under such pressure. you have a market at record levels, right? this market continues to go higher, an economy that's doing well, yet trading has been dogged for the last several quarters. >> i'd say last several years. coming out of the great
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recession and the passing of the new regulations, the banks have been put much capital, proprietary capital at risk on the trading desk. >> the retail side of the business is also competition, people flocking to discount trading firms as opposed to the bigger firms, is that impacting the revenue? >> there's so many factors impacting. we've got movement from active to passive. there's just a lot of changes going on in the asset management business. maria: morgan is going back and forth. the investor reaction was positive a second ago, now it's negative again. we'll keep watching this. is this a stock you would buy right here? >> it would be, because i like all the big banks in this environment. maria: it's not your favorite. >> not my favorite. maria: your top 10. good to have you. tom brown from second curve capital. we want to turn to the president's fiery campaign rally last night in north carolina. at one point he blasted the 2020
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democratic candidates. watch this. >> sleepy joe's not looking too good. pocahontas is gaining a little bit because we probably used the hoke hon takepocahontas a littl. that's okay. we'll bring it out of retirement very soon. bernie, let me save you time and effort, bernie. you missed your time. it got taken from you four years ago, bernie. not doing too well. he's not doing too well but that's okay. i've got to hand it to him, he's up there ranting and raving and going like a lunatic. and then you've got a young guy, buttigieg, buttigieg. they're saying how to say this name boot, edge, edge. he's a beauty. he runs a failed city. a vote for any democrat in 2020 is a vote for the rise of radical socialism and the destruction of the american dream. maria: tom bevin is here for
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real clear politics. you have to give him credit in terms of pointing out some of the truths in some of the policies in the left. he's funny. >> trump is the ultimate showman. he puts on a show. the crowd loves it. you can see them reacting to the name calling and nicknames. maria: what about the fundamentals. >> exactly, that is the core of his argument, right, and we saw this just in your interview with senator lankford. these radical socialists are running the house of representatives. nancy pelosi is considered the moderate and she is no longer driving the bus. and so that's the core that this election that will be fought around. trump is betting it all. he's putting all the chips in on the idea that this was a winner for him again, particularly in those rust belt states where the election is going to be decided among the sort of middle class voters. maria: tom freedman in the new york times yesterday said, look, stop, stop to the squad. do you think they understand what they're doing to the
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democratic party? do you think they understand that it shouldn't be all about them? it feels like they want more attention on tv than actual policies. >> i don't think they really do i think they're making it so extreme in terms of what happens in the election, it's going to end up hurting them. i think it's as you said before, it's really all about them, all about the headlines. for aoc it's all about getting herself out there and thinking about what her next move is and unfortunately that's going to be a problem for the party. maria: do you a agree with that? >> i do. these are folks that are not interested in compromise. they're interested in revolution, interested in moving the party to the left. nancy pelosi is trying to protect her majority. you've got 34 house democrats who won in trump districts that are up for re-election. alexandria ocasio-cortez and the squad don't seem to care about those folks. >> forget about trump's base but the middle of the road democrats and middle of the road republicans, does this not activate them to get out there and support candidates who speak
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to them as opposed to what they're speaking to, which is not them. >> sure. trump is such a unique figure. you see the clips on tv. he fires up the base and fires up the democrats incredibly. they watch the stuff and can't wait to go to the polls. the question is t folks who really don't pay attention to elections, don't get engaged until the final 10 or 12 weeks, how are they going to react to the economy if it stays good, his policies and his style and whether that stuff that makes people cringe when he uses nicknames or they hear the chapters, whether that will keep the folks at home or bring them in one direction or another. maria: we have to talk about jon stewart, he is slamming senators for delaying the vote on the 9/11 victims fund last night. watch this. >> pardon me if i'm not impressed by rand paul's fiscal responsibility signaling.
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he stands at the last minute after 15 years of blood, sweat and tears from the 9/11 community, to say it's all over now, we're going to balance the budget on the backs of the 9/11 first responder community. maria: does anybody here disagree with that? it's hard to disagree with him. what do you think? >> fiscal restraint is not in vogue in washington right now. maria: the 9/11 compensation fund, i mean, come on. >> exactly. we're spending tons of money on tons of other things that are probably less important than that. so why not go ahead and fund that. in rand paul's defense, and jon stewart makes fun of him, but rand paul -- this has been an issue that he has brought into congress and he's been consistent on. maria: i fee like he's been the only one -- i feel like he's been the only one. >> it's a broader conversation we certainly need to have. this isn't the place to make the point, you could argue that for sure. maria: not the place now to
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start talking about pulling in spending when in fact this 9/11 compensation fund is important and there are people out there suffering. >> i can't find any of the tea party folks who were put on this planet to bring fiscal responsibility and trying to balance the budget, they all voted ways differently than they campaigned for originally. maria: we'll take a quick break. when we come back, netflix stock is plunging this morning, the company hit by a loss of subscribers in the u.s., what the company is saying about that now. hot digity air airbnb celebratg the frontin frankfurter accommo. stay with us. ♪ might as well jump. ♪ might as well jump. ♪ go ahead and jump. ♪ jump. [ dogs barking ]
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maria: welcome back. drug overdose deaths appear to be falling in the united states. cheryl casone with headlines. cheryl: preliminary data shows that overdose deaths for last year fell for the first time in nearly three decades. 68,000 overdose deaths were reported last year. the number topped 70,000 back in 2017. the improvement in part driven by a drop in deaths from heroin and prescription pain killers. intake gram is expanding its hidden like test. when you hit the heart on an instagram post, if you don't know. the company confirmed on twitter it wants to find out if hiding the like counts that people get
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can help users in brazil, ireland, australia, italy, new zealand and japan. instagram says they want followers to pay attention to users' photos and videos and not the number of likes they get. yes, folks, it's not all about you. it's about other people. okay. had to throw that out there. here's an idea you can relish. if you love hot dogs, why not spend the night in one. yes, oscar mier is offering fans a chance to sleep in a 27-foot long weiner mobile. the hot dog hotel open from august 1st to the fourth in chicago. $136 a night. i hope it has air conditioning. maria: fun funny. cheryl: i dare somebody on the show or maybe i'll go do it, check it out. maria: yeah. why not? cheryl: i'll go sleep in it. maria: thanks, cheryl. would you do it? >> a bargain. >> i would do that. [ laughte.[ laughter ] manufacture give umaria: give .
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>> paul ryan, one of his first jobs, he drove the weiner mobile around the country. maria: only to become speaker of the house. >> if you take a like feature away, i think you kill the whole purpose of the app. i'm glad they're testing it. i'm not sure it's so wise. maria: i don't know why they came up with that idea. >> without the like, have you no intake gram. >instagram. >> that's the whole point. >> people want to be stroked. that's what it's for. >> the most important story that cheryl talked about, the opioid overdose deaths. we're maybe getting -- finally getting a handle on the opioid crisis in this country. it's been raging for decades. maria: it's definitely a priority of the administration. we'll take a break. when we come back, content concerns, netflix losing customers, the reason behind the slowdown and why the stock is down 11% this morning. back in a minute. ♪ we could have had it all. ♪ rolling in the deep. ♪ you had my heart and
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maria: welcome back. netflix earnings, the stock is down 10% after reporting underwelunderwhelming growth. joining us right now is the wall street journal's technology reporter, tim higgins. what do you think is going on at netflix. >> it's a content issue. the second quarter didn't have anything as exciting as what you're seeing right now. stranger things just dropped. second quarter, maybe people weren't as excited. this is worrisome to some invelvetteinvestors when there'o be greater competition, competitors who have in the past been selling some of the greatest hits to netflix, giving them the content they need to
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bring in customers. now they're pulling it back. friends, the office, these things are leaving the service in coming years. >> tim, this is tom bevin. netflix spent billions of producing original content. how much of an investment are they making that? is that going to continue. is that going to accelerate or is that a drag on their business? >> they've been funding this through debt, billions of dollars are going into it. one of the things netflix is saying, now that the shows they've been spending big on, the office, and friends, they're going elsewhere, now they'll have money they can invest in their own programming. and they're confident if you look at the numbers in the current quarter, if you look at stranger things, 40 million households looked at it the last time i looked at the numbers, so they're confident they'll rebound in the third quarter, predicting 7 million new subscribers will join. they think it's going to even out. the concern is that the second quarter is kind of a sign of things to come in the years to
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come as more competition aand tharrivesand the content is hart from the previous suppliers. >> good morning, mitch rochell. one of the things we talked about at the top of the show is the feeling we're at the saturation point with all of the subscriptions and subscribers don't want to subscribe to that many things. is it inevitable we'll see a consolidation where content providers and access points start consolidating? >> you're hi hitting on this big point. there's only so much time in the day and how many services can you subscribe to and netflix talked about who it sees as competition and it's people sleeping. [ laughter ] >> this is definitely going to be an issue going forward, right? >> tim, ne netflix doesn't havea live component to its offerings, it's about picking programming options on demand. i actually canceled netflix and got a service that gives me
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streaming news so i can watch while i'm on the go. how important is that to its success ultimately? >> they're experimenting with all sorts of different kind of content. you're seeing that across all of the new players, trying to figure out what is the right way to reach customers, whether it's format or content or trying to repackage. so it's an interesting time for the creative types because everybody's trying something. maria: what about cryptocurrency? let me switch gears, ask you about facebook on capitol hill yesterday, facing questions from the house financial services committee, several members of congress are warning facebook of issues with its plan, the level of trust, public trust. watch this. >> i have serious concerns with facebook's plans to create a digital currency and digital wallet and its efforts to enlist partners that expand its reach like mastercard, pay l pal, uber, lyft and spotify. facebook is apparently trying to
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create a new global financial system that is intended to rival the u.s. dollar. >> people call this the libra. it's not the libra. if it finally happens, nobody is going to call it a libra. this is a zuck buck. this is zuckerberg's family. bitcoin, 46% of the transactions according to one academic study are for drug dealers and other operations. >> what today's discussion is about is trust a and whether we can trust your company. i think you're pretty low on the trust spectrum currently for very good reason. maria: ouch. tim, what do you think? >> i spent time on the hill. there's not a lot of subjects that can unite both sides quite like this. and that's going to be a challenge for facebook as they move forward here. you don't just have the politicians but you also have ring la tori agent -- regulatory agencies raising concerns about this.
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a tough couple days for facebook in dc, no doubt. maria: would you expect this to have legs long term, or no? >> one of the things here that we see, clearly going into the presidential elections, trump has signaled that the social media companies are going to be in the crosshairs and this is just facebook waving a flag and inviting more opportunities for criticism and kind of picking at them. it wasn't just facebook on the hill this week, as you know. really big tech in general is under the microscope, whether it's amazon or it's google, facebook. these companies are raising a lot of concerns among democrats and republicans for various different reasons, but uniting them in this idea of has big tech become too big. maria: there's a lot of scrutiny there. tim, good to see you, thanks so much. still ahead my exclusive interview with mitch mcconnell, that's next on "mornings with maria." stay with us. ♪ just dance. ♪ going to be okay.
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yeah, actually. accusation. . maria: welcome back. good these are morning. thanks for joining us. i'm maria bartiromo thursday, july 18 top stories this morning at 8:00 a.m., president trump sounding off, about he was in full campaign mode during a rally in dplj last north carolina the economy democrat skwaed 2020, in between. >> leading voids of the democrat party left wing extremists reject everything nation stands for omar has a history of launching vicious antisemitic -- >> get her out -- >> the fword to scribthe presidency, and your president that is not nice even from me,
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representatives alexandria ocasio-cortez [booing]. >> conducted outrageous attacks against men and women of law enforcement. so representative pressley, [bo. o]. >> thinks people with same skin color all need to think the same i have a suggestion for hate filled stanlt trying to tear our country down never have anything good to say i say if they don't like it let them leave let them leave. >> vote for any democrat in 2020 is a vote for the rise of radical socialism and destruction of the american dream. maria: joining me right now fox business exclusive is
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senate majority leader mitch mcconnell thanks for many here the president rally you heard what he said your reaction, to some of the president's commentary. >> well, look he is right about the -- the squad want to go turn us into a socialist country what he should have added however is a lot broader, than just four of them. you know the speaker, the democratic leader senate a whole lot of others including presidential candidates have all signed up, for things like the green new deal, takeaway your job, being medicare for all would takeaway your private health insurance, and in order to make any efforts to pay for that maria they have to go after the top 10%, of tax pairs in america 70% revenue federal government comes from would slow economy down i think the president is own to something we are having a big debate now and next year, about what we want america to be like do we
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really think socialism applies here time of great prosperity 50-year low unemployment what election i think is about. >> senator lankford said it is making nancy pelosi look like moderate hardly a moderate you are right voted for she said yes to the new green deal you have got to put her in that category alexandria ocasio-cortez is turning attention to you calling you complicit in advancing racism pulling out race card when it comes to you. >> look i think time to lower a rhetoric related to that all across america everyone knows that is on in sense, you may not know this your viewers may not know i was there, when martin luther king give a that i have a dream speech i was there, as an observer when president johnson signed voting rights act i've got nothing to apologize on this front we ought to tone wrest
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do -- rhetoric down across country throwing around words like racism, you know kind of routinely applying it to almost everything let's talk about the issues. >> yeah. >> the issues are, as we would talked about in the first discussion, here, where they want to take america, they want the take america, into a socialist country i think important to remember you don't have to have a military coup to have a socialism company margaret thatcher said the problem with socialism soon you run out of other people's money giving away free this free that who is going to pay for that all of us productive parts of society the president is on to something we are going to have a a big choice next year direction this oun ougthis dowc out to taik. >> when you say free everything a portion say i deserve that i should have that free not recognizing that, you know, nothing is free, and somebody has to pay
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for it the tax increases ticl down. >> we have to make the argument, you know that is what a campaign is about. we have to make the argument. and if we can't successfully make the case against that kind of stuff ought to go into another line of work. >> media seems to be, in some ways complicit cnn reporter asked i if it would be racist to tell your wife transportation secretary elaine chao to go back to her home country taiwan what did you think of your wife being brought into this debate. >> i am glad he is not willing to go back home as viewers may not know she came at age 8, not speaking a word of english two different cabinets president bush 4 president trump i am rowed of her she is not intoed in going home imano glad not a story elaine chao a gust we pressure her success as well matters of the moment shutdown showdown hours
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speaker nancy pelosi setting a deadline tomorrow for deal on spending debt ceiling we know this is a spending problem congress and president hoping to avoid government shutdown before recess august 5 of congress white house projecting a one trillion-dollar deficit in 2019. something has to give; no? >> look, of the up pleasant alternatives we have in reaching agreement with are very liberal house of representatives, getting a deal between president and speaker is the best option prevents chaos, shutdowns did she faults i am hoping secretary of the treasury speaker representing the president democratic majority in the house can come together on an agreement that we can all lock on to support, because it will give us a chance to run the government, in an orderly fashion, for the next year and a half i am hopeful optimistic such an agreement will be reached, that democrats control the house we have to deal with them this is one thing that we need to come together on.
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maria: what should that deal look like? there is the continuing pushback, on the spending on the defense. >> well we -- we don't want to -- send defense in the wrong direction the president has done a growth job plussing up defense we don't want that to stop in order to get deal with house democrats we will probably end up having to spend more on domestic side than we would like to but that is compromise that is what happens in divided government if you don't control hole government the best option actually really is for the president and for the speaker to reach an agreement here that we can vote for, and end the uncertainty for the next year and a half. maria: so you are expecting then to raise the debt ceiling again. >> of course, he we will never have america -- >> the committee for budget said last time we went down the road, and raised the debt
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ceiling statutory budget caps before august recess last deal in february '18 added 420 billion it continued if continuing would cost two trillion dollars says macguineas your reaction to that how does this end? you keep raising the debt ceiling adding to debt. >> raising debt ceiling america can't default that would be a disaster, we are spending more than i would like to, but i don't get to ignore did house the president doesn't get to ignore the house. so of the options that we have available standing up for national security the single most important responsibility the federal government comes first, that is what house and senate republicans and administration are committed to doing. we don't control the whole government therefore we will have to allow more spending on the domestic side in order to get a bill through the house,
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than we would like that is the nature of compromise. >> particularly given the new threats that we are seeing today, from iran, to china, russia, and beyond. i mean would you say these are some of the most significant threats the country has ever faced. >> maybe not ever, but certainly very significant, the iranians are acting out as they have since 1979 various destructive ways across middle east we immediate responses to actions directly or surrogates as president directed i think he is doing the right thing. >> where specifically would you see opportunities to cut back not of including defense obviously. >> it is hard to do that with this particular house. they mefr metnever met a spendig bill they are not for we are doing the best we can to keep down even more spending that would occur if democrats were able to elect a president take
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senate all would be off no restraint whatsoever. >> stand pie we want you to talk about china a new story in the "the wall street journal" this morning that it was really huawei that -- that is having the china trade talks really stall facing questions over huawei we are learning now the treasury secretary mnuchin will hold talks with china over the phone later today, what is the answer here? secretary pompeo has been on this program, making the case that huawei does he represent a national security risk. >> it does. huawei represents a national security risk, and i don't think we ought to -- do anything, to make it easier for them to operate and do business here in america. maria: so what -- >> or in european for that matter talking to them about it as well. maria: what about that are you going to be giving less information to our friends in europe in they have huawei in their infrastructure. >> i am unclear how we enforce this i do believe europeans agree with us that huawei is a
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threat that is a good first step and i hope whatever arrangement we ultimately end up with, with china does not allow huawei to have that kind of access to our technology. >> you know interesting, to look at europe because it feels like yeah maybe europeans agree on huawei but skret sketchy when it comes to iran are europeans with this president when it comes to iran. >> it has been difficult they did not agree with decision, to back out of the iranian nuclear detail, by the way, i think the president did a right thing, it was a terrible deal we continue to encourage them, to -- to back us up. and there is reluctance to pull out of the deal bad deal made by previous administration. >> senator stay with us a short break i am going to ask about border and immigration right now, we are talking with senate majority leader mitch mitch mcconnell we will be right back.
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maria: back in fox business ask exclusive senate majority leader leader mitch mcconnell pentagon sending 2000 national guard troops to the southern border that additional troop will bring number to nearly 6,000 what are you sppg in ter expecting in terms of results. >> i am amazed we have had as much difficulty as we have getting our democratic colleagues to do anything about the obvious crisis at the border just as an example a couple weeks ago we passed a border supplemental for humanitarian relief didn't deal with wall didn't deal with other issues that are important the speaker almost couldn't get that through the house all the people the president is talking about last night the squad won't vote for humanitarian relief we have seen people packed in fafs totally incapable of handling
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the humanitarian crisis what created the crisis there are deficiencies in the asylum laws that allow this buildup to our needed to be changed by statute we have not gotten any cooperation it would be safe to say the president a had more cooperation out of the mexicans than he has out of democrats in congress. about dealing with the crisis at the border. >> incredible really is, and senator, lindsey graham joined me sunday basically said i am going to have legislation i am going to bring it down to the floor for his committee to vote on it before the recess. but what does that mean are we going to see fundamental change flores agreement asylum standards change how does this or going to continue to see detention centers, supposed to about 3 85 people it is 900. >> i don't know what it takes to get democrats' attention lindsey is bringing a bill out of committee i hope gets
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democratic support i wouldn't bet on it two presidential candidates on the committee to deal with statutory problem that contributings to the asylum humanitarian cries at the border see what it looks like i lope not party-line vote would indicate they have no desire to solve this problem, it makes you wonder since they are talking about openly borders, whether they want us to have any kind of border security at all. i mean some of the things they are saying in the presidential election is just astonishing eliminating ice basically not having any effort to secure the border. what nonsense every country is involved in trying to secure their border, immigration is not a uniquely american problem. >> alexandria ocasio-cortez said eliminate all department of homeland security. >> yeah, look.
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the democrats won house last near why difficult to get a solution on this problem because they basically like open borders they basically want people who got in the country illegally to be put on path to citizenship kind of shoi reward for breaking the law we have very deep-seated differences with this issue they won house we have divided government that is why you are seeing maria the difficulty, in getting a solution here. maria: the department of homeland security having created after 9/11 now former late-night host john stewart slamming rand paul,for delaying the vote on fox news watch this senator. >> pardon if i am not impressed in any way by rand paul's fiscal responsibility virtue signaling now stands up the last minute after 15 years of blood, sweat and tears from 9/11 community, to say that it is all over now now we are going to balance the budget,
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on the backs of the 9/11 first responder community. >> reaction senator? >> well i think short answer we are going to pass the 9/11 emergency bill, we always deal with this tragedy, and we will do that we will do it shortly. maria: i want to get to the fight for 15 in a second but speaking of bringing things to the floor are you expecting usmca to come to the floor any time? nancy pelosi seems sitting on it they don't want president trump to have a victory obviously, this is important piece of legacy if you can't get this done how, are we going to have any confidence in any other trade deal gets done? >> yeah, it is a problem, i can't bring it up first in senate if i could under procured would i or procedure i would it would be rat ratified in the senate has to start in the house remember why most democrats are on tried i had to join up with president obama over
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opposition harry reid and unanimous north americans to get trade promising authority not just for president obama but next president as well, so most democrats, are not good on trade issues they don't seem to understand how trade benefits the american economy, until you see that reflected in the difficulty the speaker is having, in making a decision to take it up. i am hoping she will. i am hoping she will do it sometime soon. i am hoping we get democrats to pass it we can't pass it republicans only, in the house. maria: you are going to have to stay with nafta i guess if it doesn't come to the floor right president says there is a plan b, it is prenafta that would hit the economy. >> no i think no i don't think we ought to walkway from nafta if we can't get this done we ought to get this done an improvement the administration did a good job of updating nafta to the advantage and united states to get this done. >> about wages let me take you to fight for a 15 house to
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vote on whether to lift federal minimum wage to 15 dollars a year could set tone for 2020 give your stance. >> it would cost according to cbo between one and three million jobs lost we don't need to loss jobs we don't have enough jobs now there are more people looking for work than jobs available would did he -- would depress the economy at a time of economic boon not doing that in senate. >> do you want to see legislation. >> we are taking a look at it a very complicated field, and we are watching what develops in committees. >> mitch mcconnell, a quick break with health care in america home depot founder langone, dr. robert grossman joins me to discuss high cost of medical care following 100-million-dollar donation to
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maria: i'm theed health higher following strongest report gerri willis with details. >> largest health shoour getting on top line and the bottom line narrow beat coming in 316 shares higher, the company being about med kay
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business doing well, a big part of the business, boosting 2019 eps the arbiters, ebay double beat here, surprising coming in 60 cents versus 56 cents a share, that the company shares up 5% this morning, they are saying they will review stub tub ebay business two new board members pressure from outside investors finally big a steak in e-commerce platform you can see there. and netflix big story really they had a beat on their bottom line 60 cents versus 56. all about subscriber growth that was the disappointment for netflix. they did manage to come o above 160 million for the first time but ad 2.79 million versus expectations in addition of 5 million subscribers, didn't happen
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they lost 126,000 subscribers in u.s.. back to you. maria: thank you so much, on wall street we are looking at lower opening for the broader averages quick break high cost of health care, we are talking with home depot cofounder ken langone, joining next on pressing issue of prices and the success of initiative yu langone the 100-million-dollar donation to make nyu medical school institutituition free th next. well...if you run a business, it means a lot. for starters, we provide you with financing options for your customers. that way, you can help them buy the things they love instantly
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100-million-dollar donation to new york university to make medical school free joining me in a fox business exclusive is the cofounder of home depot nyu langone member steadier robert grossman, congratulations to you a hundred million dollars to nyu langone i want to ask why you did it wasn't just about making it free it was about the availability of doctors. right? >> i did it because when he got the job first day, 11 years ago i said what are we doing he said one big draem to have this place tuition free i said we are going to do it take some time but we will do it his idea, as everything else that happened since he took over i got to broog this guy is most unbelievable leader i have ever had the opportunity to work with in my life. >> that is great. >> he is smart to go with it. >> i want to talk about
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leadership what you've done it wasn't just a hundred million dollars from langone he encouraged others to put money in. >> you can't have a better partner, are right? by far. >> wait. >> would never have happened without ken make no mistake. >> 350 million. >> 450 million dollars. >> total. >> and you've got criticized for it. >> i was told i was irresponsible you should not give money to kids from wealthy family i had a simply thought kids are going to give up from 6 to 13 years of life hard work, depending what the specialty dedicateing life to this best years of lives, out of college 20s, 30s, and i just felt that it was their efforts not their parents' effort they are the ones going to be doctors not parents, but it was this guy here, poor kid
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from bronx. >> success story. >> from your brooklyn long island when you got money had ability to offer free medical school tell us how you allocated it you've got innovations right now at nyu langone using artificial intelligence robotics tell us about it. >> we thought it was very important to be focused, on student debt and to become tuition free, because these students and their families were financial pressure we surveyed first year class after we gave the tuition free about nine months into the into their course. and the thing that they most appreciated reduced anxiety so about wellness for the students and their families. the debt burden -- is
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enormous. >> yeah. >> average medical school student graduates with about 200,000 dollars worth of debt a little less than that very difficult to pay back as ken was saying, because, after they finish medical school, they intern andres -- and three to five years debt accumulates compounds it is enormous burden for them. >> you even got the bezos he family involved. >> no, no, not for that they gave us god bless them jackie mike bezos give a us substantial gift specifically for the brooklyn program. >> brooklyn program. >> hospital. >> -- this -- >> initiative yu -- the brook berlin in consolidation in hospital talk about that you got great success in terms can have lutheran that acquisition, what you have done in brooklyn you've got one happening in two weeks. >> exactly.
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so we are -- going to do a partnership and full asset merger with winthrop in long island we are very careful with what with hospitals we associate with. the cultures have to align, and -- but for us, we have a lot of patients in brooklyn patients in i don't think island so it is very -- >> including you. >> but i would say in brooklyn we did something incredibly special ken and i are very proud of what happened we took underserved hospital sunset park has the largest concentration of medicaid in the united states, and after three years their metrics are as good as our campus on manhattan. >> about congratulations, you know. >> that is -- these people have a right everybody talks about health care, these people have the right to the same quality health care that
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i get. when you come into our place doesn't matter who you are what you are the same quality of care hopefully highest possible. >> you know, as you are talking i am thinking, what an incredible story, what a story you have had, and yourselves a well coming from nothing, to build up incredible careers, and you know you look at a guy like mayor de blasio says there is a lot of money in the city just in wrong hands you have not been able to give away 100 million dollars, had you not had the resources that you have, ken. >> maria, i will tell you the thing that bothers me the most. i am truly the american dream my grandfather couldn't read couldn't write when he died couldn't read couldn't right this is a aggravate country there will never be another america do we have issues things to fix yes, but in health care fixing the things that we need to fix making them the best not better, the
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best. so i am a strong advocate and passionate about this country. grandma grandpa thanks for coming to america we are all children of immigrants. >> i appreciate that yes. >> just as good -- >> and good-looking how much better -- >> look what is going on the fact that you have the resources, after working so hard your entire life, to give away this money, to make a better situation for underserved people then you've got socialist ideas in the 2020 democratic race candidates many young people interested in what they have to say understand this selling something like, about medicare for all you say. >> well, i think what has been to have you look what has beneath the hood right a good slogan but how does it really work? and how would it affect everyone's health care, and when you look at it, i don't think the idea really works
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very well in the united states. united states is a very different country, than scandinavia and europe, european countries we have much more cultural diversity much more many more gradients between rich and poor we have more obesity, diabetes but our health care system the people who have insurance actually like their doctors, satisfied with health care to say we are going to change a system, where majority of people actually like their care and want to keep their doctors, to me is a flawed idea. >> 180 million people get insurance from private sector ken, and medicaid fre for all wipes it up. >> we are living longer i am 84 in september walking arorn i think i have mort marbles. maria: love that. >> this is a quality care in
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the country this is care that everybody gets access to, this notion that in new york city somebody walks into a hospital and is turned away because they haven't got insurance card is nonsense. it is nonsense you don't do that we don't do it anybody doesn't do it. >> i like what you said when you first decided to give away the 100 million dollars nyu langone you said this is bigger than home depot. >> yeah home depot is spectacular fabulous, but this touches 370 million lives why in carry going to have a shortage 50,000 primary care physicians 2030, 30,000 pediatricians 30,000 ob's 120,000 doctor shortage not so much issue affordability as availability. >> right. >> and by the way, i wouldn't have happened, this maria what we did wouldn't happen except for home depot that iss where juice came from. >> what you wrote eloquently in your book capitalism i love
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capitalism you got a bernie sanders 2020 democratic candidate who says look i am vigorously defending medicare for all yesterday fired at critics said debate over medicare for all about agreed of the health-care industry rather than right health care plan. >> let me tell you about this guy and about us he is talking about doing something, we are doing something. it is a is a big difference he sits with a microphone pontificates talks about this that bernie show record go back in your life show me what you did for somebody else think pitch at ross's memorial the other day perot did. he didn't talk about it. write down to the lit left person needed a break this was a genius of ross perot genius of people wanting the world better we do it don't talk about doing it. >> you are back from dallas spoke at ross perot's funeral
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were close. >> i loved him i tell you i wish that day had never come. >> he was -- well -- >> okay. >> it was good of you to speak. >> go it was biggest honor of my life! he was he was the very precious human k. >> what would he say going one proposals. >> he would tell america the greatest country own earth he was fabulous patriot loved america health care in america roscherie murray loved everything america passed it on most wonderful family in the world but -- he was awesome he made things happen! for the little people not just headlines this best kept secret in new york. weigh don't -- >> i don't need credit. >> yes do you. >> the institution is a fantastic institution all about the people of the
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institution no one person. does anything, frank, and we are incredibly proud of you all the people who work there. >> absolutely. >> changing people's lives, and impact health care every day. >> an can he impressive institution, i am proud to say i am a board member. >> we are going to take more about the policies of today, and what you are hearing on the left as well as the incredible success story back in a minute. (vo) the ant mindlessly marches on.
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maria: welcome back home depot facing backlash from shoppers boycotting stores after cofounder said he would debt a large part of 4 had a-billion-dollar fortune to president trumps's campaign donated millions to trump past few years he back with me home depot could founder nyu ken langone dr. grossman ceo nyu langone joining the conversation host of "varney & company" stuart varney good to see you this morning. >> you, too, maria thank for having part of the show can i say to my good friend mr. langone, i too have lived the american dream, and everyoning absolutely fabulous country. i didn't hear come here with very much i am on maria's show talking to ken langone what a country. >> stuart varney --
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>> can i jump into the conversation about socialism for a second. >> please do. >> i hope you don't mind that i am a refugee from socialism i came to this country, from a socialist country i came here willingly, i think that this trend towards socialism has already hit its high watermark in america. because in the cold light of day, and that is a presidential campaign coming socialism will be rejected, because it is profoundly un-american i think ken you and i agree on this. >> if people understand what it is. >> go back venezuela was one of the wealthiest countries in south america aggravate natural resources biggest pool of oil. >> richest in latin america. >> chavez elected by democratic process poor people believing everything he said was going to happen what happened was, he came in, what happened with the money that would come to the private
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sector to buy goods and services competitive rates government people talk money stole it. that is what happens in socialism, this doesn't work, i you pray to god american people see through this nonsense going on right now. >> they are not explaining what the cost is they are not when you hear bernie sanders talking about medicare for all elizabeth warren talking about free everything, they are not explaining that there is a cost to all of this and at some point taxes will go up not just the top 1%. >> stuart said something. >> like europe isn't it, isn't that exactly what is happening in europe. >> look what is happening -- in society. >> in europe. >> it -- europe is at a situation right now doesn't know how to get -- italy for example -- the hope is greece is now going to right, hopefully there is a trend, that will bring it back but you said about your life my dad was a plumber went through 8th grade mother worked in school cafeteria 7th grade
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hardly born with silver spoon what happened to me could only happen in capitalistic society if you are willing to work your butt offed go valentine's day give it all you got you might succeed. >> capitalism awards, we compete for the goodies in society that brings out the best. >> of course, but the question is, do you think people understand the difference? >> what i worry about the biggest concern i have in america today, is quality of public education if we educate people better than we are, they are going to understand how it works a lot better okay. >> a great point first of all, we are hearing all issues in this 2020 election, health care, immigration, et cetera, i don't hear one peep about education u.s. number 35 in the world. >> you are right. >> i don't care one squeak how to grow this pie what is the democrat what is the socialist message on growing our economy.
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because without growth in our economy you got no life. >> absolutely right we just saw 3.1% growth going to continue conversation i know you have to get ready for your show see you 10 minutes. >> thanks for kind words. >> great to be with you -- >> "varney & company" 9:00 a.m. eastern after "mornings with maria" you are right in terms of education, and in terms of focus there, why? >> he wouldn't be the accomplished individual he is with what he has done with life for other people if he didn't have benefit of a solid education, couldn't have done. >> it you've got all attacks on left what did you think about the terrible treatment bern marcus got because he donated to trump campaign. >> bernie has given away two billion dollars so far i don't know how much stock bernie has left if any he will never want for a thing rest of his life don't misunderstoodstand started out in ten manhattans
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about newark went to pharmacy school the rest is history. >> you get from bennie marcus ken langone talking about robotic surgery doing. >> it we are -- doing a lot of robotic surgery also, usi artificial intelligence in a different way thought about artificial intelligence is that it will replace it will help doctors with diagnoses it will replace health radiologists making -- >> not going to replace my doctor. >> going to help your doctor o other thing artificial intelligence will really enable it will enable to us increase the speed of ct scans
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mri scans up to 10 times. >> getting ahead of disease ahead of things, and ensuring that you've gotten the times, more accurate in terms of of the mri. >> 10 times faster may result in needing less equipment. >> yeah. >> when may result in better scans four congresswoman in a war of words what do you think. >> a phase that will pass i think will happen what they are talking about is nonsense. i am going to give them credit for the belief hopefully they really want to make life better for people i will say that is their motivation i got to get a plug in want to saint pat's i found out feet of of saint camilous update electron saint of hospital brokers, a saint in his corner. >> you donated all that to saint pat rooibs kathe-- st.
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patrick's with a head to rally i worked with cardinal raising money if you get to new york one of the great attractions. >> beautiful. >> i mentioned four horsemen of congress, pushing ban how do you think the plays out? >> it is very difficult to understand how the impact on academic med centers if you have medicare for all understand that a lot of research including nih research is subsidized by clinical revenue. and in medicare for all if you look at it, hospitals academic hospitals would see a revenue decrease on average before 11% that is in sustainable. >> there you go, thank you for the facts, on this story, dr.
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robert grossman. >> to bernie. >> go ahead. >> giving away all money home depot committed to veterans programs i think we spent 250 million so far on it, more to come. bernie's, right as american citizen to believe this what he wants to believe like four people here i my disagree with what they say but their right to say what they want to say bernie believes in -- trump bernie believers doing a good job bernie's money paid taxes on it i don't know how much home depot, but kids like people at work 42000 people, they are the people led by bob that give the quality of care. >> and to say all money in new york but in wrong hands, mayor de blasio is stust w-- jut wow. >> he thinks he can spend better. >> ken langone and friends created free medical school for all those people, and continuing to do so thank you
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so much for coming on, and two my guests on wall street we will be right back. stay with us. most people think a button is just a button. ♪ that a speaker is just a speaker. ♪ or - that the journey can't be the destination. most people haven't driven a lincoln. discover the lincoln approach to craftsmanship at the lincoln summer invitation. right now, get 0% apr on all 2019 lincoln vehicles plus no payments for up to 90 days. only at your lincoln dealer.
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no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. ♪ maria: welcome back. going to be a lower opening for the broader averages. final thoughts from this all-star panel? >> i still think it's all about earnings. we heard from the big banks but also, we're going to be looking at these company-specific stories. for example, netflix. it's not really a barometer of what's happening in the economy, more about that business or you look at microsoft reporting, ibm had some trouble with the cloud, maybe microsoft will do better. stories like that are less troublesome than broader economic stories that might indicate, you know, we're in for a bit of a slump. maria: ken langone just told me maybe we will grow 2%, 2.5% this
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second half of the year. it's still a very good number. most people are expecting a little bit of slowdown. tom? >> two thoughts. one is, what an hour of television. ken langone, mitch mcconnell, lot of news made. that was great. then there's a lot being paid attention to trump and his rally and what he's saying and this back-and-forth. meanwhile, we talked about it a little, what's going on in congress right now with the debt ceiling and getting a deal done and actually congress working, very important. keep an eye on these negotiations between trump and pelosi. you heard mcconnell say it's really between those two. they got to set the number, then they can actually dig into the details and pass the appropriations bills. otherwise we may have a shutdown. he said we're not going to default but that could have big ramifications for the economy and for the election. maria: there are 12 appropriations bills that need to be dealt with. mitch mcconnell said there's absolutely no way the u.s. will ever default. >> right. >> i would also like to see usmca passed but --
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maria: that's a question. a lot of senators i speak with are not even expecting her to bring it to the house floor. got to go to the house first. >> which is amazing, because we started the show talking about china. if we had any kind of deal with china, the chance of it getting ratified by the house and then ultimately the senate, china knows that. china is looking at usmca and saying why are we negotiating with these guys, they will never ratify the legislation. i'm going to go back to earnings. if you look at the bank earnings, there's something in there that's really important. how strong the consumer is. our economy is driven on the consumer. so talking ourselves into recession is silly. if you look at those bank earnings and retail sales number couple of days ago, i think that bodes well for the economy for the rest of the year. maria: yet, what are we, a week and a half away from what's going to be a monumental fed meeting where we are going to see a rate cut. could be as high as 50 basis points. >> that would really, really shock me. i still don't think we get the 25 basis points even though the market does. we'll see what happens.
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maria: all right. we have to watch that. >> one more final thought. happy birthday, jackie. maria: happy birthday, jackie deangelis, of course. and cheryl casone. great to see you. thank you so much. great show. that does it for us. "varney & company" begins now. stuart, take it away. stuart: good morning, maria. good morning, everyone. last night in north carolina, the trump rally was fiery, raucous and in my opinion, politically very smart. the president went right after the four radical young democrats known as the squad. he concentrated his remarks on them and in effect, made them the leaders of the democrat party. for a business guy he's learned politics rather quickly, hasn't he. the response this morning is predictably extreme. kamala harris tweeted that the speech last night was vile, cowardly and xenophobic. the crowd at one stage chanted "s


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