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tv   Cavuto Coast to Coast  FOX Business  July 23, 2019 12:00pm-2:00pm EDT

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earlier this morning, that is helping the market. of course we also have a budget deal. we can borrow and spend up the wazoo for the next two years. how about that? my time is up, neil. it is yours. neil: we are still monitoring the president. he might talk about the deal. everyone in washington talking about the mueller pile-on. mueller expected to testify tomorrow in capitol hill. nobody talking about the debt pile-on, that shows no signs of reversing itself. is boris johnson ready to take action. forget about brexit. what will he do about iran? forget $15 a minimum wage, can we make it 20. how a key member of "the squad" is causing a squabble. the debt deal keeps the lights on for couple years but at a price.
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hillary vaughn. reporter: source familiar with republican leadership in congress, says it is best-of-three really bad options they had. it is what they wanted to do, put the budget drama on the backburner for the next two years. here is the deal house speaker nancy pelosi worked out with the white house. raise spending caps by $320 billion, including $22 billion for defense and 27 billion for discretionary spending. all that comes at a cost. the committee for a responsible federal budget blast its price tag, estimating the two year agreement could add $1.7 trillion to the national debt. white house economic advisor this morning admitting the republicans didn't get to rein in spending as much as they would have liked. >> we never get spending restraint we like to get but i must say in the difficult atmosphere today, one of the key
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things that steve mnuchin, treasury secretary steve mnuchin, we got a two year extension on the debt limit. there is no threat to the credit standing. by the way in terms of the overall budget numbers, they're really manageable. reporter: senate democrats also aren't thrilled with the deal even though they essentially got dollar for dollar spending non-discretionary funds matching defense spending republicans negotiated. >> i will take a closer look to see if anything disqualifies it. the alternative of shuts down the government or defaulting on america's debt is not acceptable. reporter: the pill is hard for some in the republican party to swallow. the real wild card is what the president does when congress sends the legislation to his desk. neil? neil: we have ralph norman. he says congressional leadership needs to wake and realize this
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whole thing this, debt ceiling treatment, even though both sides are signing off on it could be a big mistake. congressman, your concern is what? >> neil, when will we stop kegging the can down the road. i've heard it since i've been in congress. we can't default on our debt. a two year deal basically gives congress a blank check to spend. raising all the budget caps, $320 billion in the red is not acceptable. it is not a option. this is a moral issue. national economic security and national security go hand in hand and when will we start the process being financially solvent? one thing we could do, we could have recess coming up, sit up here, next 45 days, as long as it takes to negotiate. i can't understand why we want to go on recess it is that
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pressing. october 1 is the due date as far as the debt ceiling. i'm disappointed in it. nothing surprises me in congress anymore. neil: you know i am noticing right now in order to get this, i think about the fifth or sixth time since 2014 that a budget deal waved caps in place to avoid the very kind of thing you mentioned. this president under this president, not blaming him exclusively, running at a pace 23% worse than it was a year ago. this seems out of control? >> it is out of control and every republican i hope will vote against it. i know that is unlikely. again why are we saddling our children and grandchildren with 22 trillion, god knows what it will be in the next two years. it is not morally right. it is not right. now is the time to start. democrats are in control of congress. now the time to debate. let them shut the government
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down if they don't agree particularly to the discretionary cut, but increase that more than our military is not fair, it is not morally right. neil: would it be wise for both sides to entertain cuts? i know military spending is near and dear to but as an example shouldn't republicans be open to that to force democrats to be open to cut in some non-defense areas. >> absolutely. neil, in any private business you can find 10%, 15%, 20% cuts easy. in congress it is like falling off a log to find that. i'm on the budget committee. we had maybe five meetings, zero talk of any type cuts. 5% has never been discussed. so there is no appetite. i think that if you poll the american people, it's a top priority. but it is up to us to make a tough call. i'm an easy no on this vote. neil: how many other nos do you think are out there?
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>> i think probably, freedom caucus will meet tonight on it. we'll see. very few of the freedom caucus i would think. as far as other republicans i can't speak for them. now is a perfect time to start to make this, our country solvent. i don't know a better time. democrats are in control. if they won't cut along with republicans, we can agree on some amount of cuts. it hadn't been on the discussion table at least in the budget committee. neil: congressman, thank you very much. to the congressman's point, it does keep the lights on for two years. the ceiling would be in effect until summer of 2021. the fact of the matter he pointed out it piles up spending in the process. if stocks are worried about this, they have do have a funny way of showing it. they're used to this. we're in the middle of earnings season. some big names include
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coca-cola, united technologies, hasbro, continue to report numbers by and large better than they were thought. few exceptions to that. the trend is their friend. here to detail that is gerri willis. hey, gerri. reporter: neil, dow got boost after coca-cola and united technologies showed strong earnings. coca-cola hit a new high of coca-cola zero sugar and coca-cola coffee. shares are up almost 6% right now. pretty good. united technologies, not only beating estimates but also raising full-year profit and sales guidance. shares higher here. the maker of pratt & whitney engines raising exposure to rising federal spending with acquisition of raytheon. after the max grounding that is helping utx. this comes as apple surges on news it plans to buy intel
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smartphone chip division for more than a billion dollars. the move will help apple win a front row seat to the race to 5g. the dow up, but off session highs after weaker-than-expected existing home sales. the national association of realtors reporting june sales dropped 1.7%. investors will be watching visa when there is a report after the bell. earnings keep on colling. neil? neil: indeed they do. read on earnings, competing economic growth we've been seeing, maybe not as much growth as we've been seeing, existing home sales down in june 1.7%. they were expected to barely budge. international monetary fund is upgrading u.s. forecast. we have senior fellow veronique de rugy. they have been bumpy but by far
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better than expected. >> i have to say economists are knot very good telling you whether particular day point is a blip or a trend. it is hard to tell you what is going on. yes the market is bumpy. it has been bumpy for quite a long time. i think we also need to remember that the stock market isn't the economy and the economy isn't the market either. it depends what you're looking for, right? seems the market in the short term is always looking and responding to these short term signals and but in the long-term, what is going to matter how this economy is doing. neil: some of them are talking about headwinds, not dramatic headwinds but trade is often mentioned, some of them citing the fact this is something if it drags on much longer could have an affect. i believe of the s&p 500 companies a dozen stated that. it is blessed a few but it could be a factor.
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what do you think? >> of course it could be a factor. the dow transports is trending down in a way that signals, people, investors were worried about commerce. it is true. we were told that no one was going to trade wars were easy to win and food for the economy. it is been going on year-and-a-half. we don't have any deals. usmca is not anywhere seeing light of day. the deal with china your guess is as good of as mine if we're going to have it. people are talking about there are no super visible signs on the overall economy, when you look at industries downstream, they are hurting and these prices are hurting. while you don't see it in the overall economy, because our economy is so big and trade is a small part, yes, of course it drags, it drags, there are a lot of structural problems in the economy that people should be worried about. the spending deal that you just
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talked about. neil: right. >> these are things that should worry investors. neil: not today i guess but veronique, always good to see ge you. thank you very much. we're looking at iran right now. now that boris johnson won conservative party won the election to be prime minister of britain, people say what will he do about brexit? the more immediate concern, the more immediate crisis what to do about the seeds sure of the british ship, after this. i'm really into this car,
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>> we are going to energize the country. we're going to get brexit on on october 31st. we'll take advantage of all the opportunities it will with a new
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spirit of can-do. we will believe in ourselves, what we can achieve. we will ping off the self-doubt and indignity. neil: former prime minister of britain takes office. not in britain. a lot of people are saying what is he going to do about brexit. the more immediate concern what will he do about iran? the seizure of this british ship. now threats from the iranians they will keep doing it. the read from joe lieberman, former senator from connecticut. vice-presidential candidate with al gore in 2000. >> good to see you neil as always. neil: everyone is focused what will he do about brexit, brexit but right now the next 48, 72 hours is about iran, isn't it? >> absolutely right. i don't think there is much doubt what will he do about brexit. prime minister johnson has to pull the united kingdom.
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neil: he said hook or crook. >> deal or no deal. critical to world stability right now, and to great britain's standing in the world, what will he do about the fact that the islamic republic of iran has taken control of a british tanker without cause. neil: yeah. >> my guess there is a lot of private intermediation going on to try to work this out diplomatically but i think the best thing that boris johnson could do, i hope from my own point of view he does it, is to basically join president trump, say iranians are acting in a way that means i've lost my confidence in the iran nuclear deal. the uk is pulling out of it. we're joining the trump program of maximum pressure on iran. neil: you would think iran would know that you could sabre rattle
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with the united states all you want but sabre rattle with people still stubbornly sticking with a deal that is falling apart is suicidal but it looks like iran wants to do. >> it is and i think it's a real misstep by iran. they're into, at a very desperate point because the trump sanctions and pressure on them are really hurting them. they're having a lot of dissent and unrest from their own people. neil: why would they do this kind of stuff, senator? >> to make themselves look strong in front of their own people, but by taking control of a british ship, they have invited britain to join with president trump and leave the european allies. that really is the death knell to the iran nuclear agreement. i'm happy about that because i think its with a bad agreement. the iranians didn't want that to happen but i think their own actions brought that about. neil: let's switch into politics
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with you. elizabeth warren without a plan today. she want to forgive college debt. it is a very long proposal. it is detailed, it is long overdue, but canceling student loan debt, you have to find ways to pay for it. she wants to raise corporate taxes back to what they were at a minimum. and to after rich individuals, what do you think about that? no i know a lot of people in the country have a heavy debt on education. we can't afford to do everything through the government. maybe there is some ways to lessen that debt but cancel all the debt, it runs against, not only what is sound economics for our government, if i can use that phrase today when you think of the debt deal but it runs against american values, really. if you get an education and you can't pay for it, you take a loan, you don't expect the loan to be forgiven. if it is onerous, maybe the government can help you lessen
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the pressure. neil: no one is taking her on. in fact when they had the last debate, they're all in favor of programs like these, big spending initiatives, i'm wondering if they're pushing themselves right off of a cliff? >> oh, i worry about that. this is a dynamic. people like say sometimes if you're negotiating with a room, you negotiate with the people in the room but you forget about everybody else outside. when you're in a primary in either party there is a tendency to play to the relatively small number of americans who are voting in the primaries of that party, smaller, happen to be in the room. neil: they so align themselves to the extreme on this the normal strategy of you run to get your base vote, general election you move back in the middle, they will have to do a long marathon run to get back, right? >> well i agree and i personally you know, my original hero was
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john f. kennedy. he was very much involved in the clinton presidency, the campaign, democratic party as expressed -- neil: neither of those gentlemen would get the nomination. >> they would have a real hard time. boy, that is something dramatic about the democratic party today. it also says something ominous because i still think america is a mainstream country. other people on the right, there are people on the left, but the majority of people are sensible, center-right, center-left. they want the government to work and they're not going to go for a candidate or a party that promises that their taxpayer dollars will pay for anything or everything in the imagination of candidates. neil: at least early polls, someone else will pay for it. if you and i went out to dinner, you treated, i would order two appetizers, multiple deserts,
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but i would be thinking twice if i was responsible for the bill. since you left washington, the debt essentially doubled. >> yeah. neil: with this latest deal, senator. it will continue be climbing. >> i agree. bygone days when the clinton presidency ended in 2001, as a result of the clinton-newt gingrich bipartisan budget agreement the u.s. government was in surplus. neil: right. >> we've lost it. our kids will pay for it. so this is, this is an unsettling agreement in that bay. but i have got to say, thank god there is something that the republicans, white house, congress, agree on. neil: you think this will go through? >> it will go through. it is a win-win, win, for everybody. the truth is the only way we will deal with the rising debt is not involved in these numbers directly. it is, are you going to take on increase in entitlement spending. nobody wants to do that politically, including the
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president which is sort of surprising, republicans, paul rye gran, always said we have to deal with entitlement spending. president trump didn't say that. part of why he got elected. neil: depends what we'll saddle my kids. depends on the day what i will saddle my kids. senator, you say we have to keep focused on education, school choice. >> yes. neil: you're a big advocate on that, it makes you stand out on among independents and democrats, but the rap against it, even those in the democratic party running for president are saying it is bull, it is just bull. >> it is not bull. we're the political will, must have to be mustered at state level. one case at the federal level, d.c., what we call the opportunity scholarship program. has worked. it says the parents of lower income kids whose kids are in a school the parent are convinces
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is not good for them, not getting a education, the government will help you take the kids out of the school, put them in a private or religious school where it is better for them. where that has been tried, a lot of kids are doing better education alley. these are not kids -- neil: give them that choice. >> it is lottery basically. not merit selection. the poor kids, give them a choice. the education system is not just about the public education system. because the public schools did a great job with me. i will always be grateful to them. they're failing a lot of our poorest kids. we have to give them options for the future. democrat are es hesitant to take take this one on because of teachers unions. but it is about the kids. neil: you will get earful from those. they're emailing already. >> thanks for bringing it up. neil: have a wonderful summer. the dow not doing a whole lot. we're up about 56 points.
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we'll go through the debt deal in a little more detail right after this. ♪ all in one place. because when it's decision time... you need decision tech. only from fidelity.
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[inaudible]. whatever they call it income. is not enough to support our families. should be $20 an hour. 18 to $20 an hour at this point. it is not us. it is not us. everything has gone up. cost of food has gone up. the cost of things we need has gone up already. neil: you might recall, i said this was going to happen, as soon as we pushed for $15, the next push would be the $20 level because it is natural. rashida tlaib the latest should be the goal. waiters should not be living on tips. they make up for a lower minimum wage because of the tips. be that as it may, this is real. it could be something that
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everyone is going to want to keep very close eye on. meantime the senate is holding its first-ever hearings whether banks should be able to finance legal cannabis companies, those directly involved of it, even ancillary companies that have popped up over the last year. right now it has gotten into the hundreds. edward lawrence with the latest. reporter: the senate banking committee is considering letting banks do service with the cannabis industry. one credit union in oregon testified they handle $300 million in cash each year alone. supporters of this say it will be an additional revenue stream to some smaller banks out there. that is because cannabis can only be made and sold in the same state that is legal. the smaller banks are expected to embrace the business and take on the risk. the larger banks might shy away because of money laundering laws they have to deal with, and they
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don't want that risk. senator jeff merkley seas this needs to be addressed. >> there is nothing good about forcing the world to operate on cash. it is an invitation to money laundering. it is an invitation to organized crime. it is an invitation to robbery. it is an invitation to cheat on taxes or your employees. let's fix this. reporter: critics say passing the safe banking act is a backdoor for the cannabis industry to legalize marijuana nationally. he says opening up industry through legalizing banking, will cause buyers to invest in more potent drugs, to causing more problems. >> it took us 100 years to reverse impacts of tobacco industry, who cast doubt on advocates with industry funded bunk science. we have the obligation not to repeat those mistakes.
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reporter: this is the first step in the senate for in hearing. the bill is introduced in the house and senate. the house passed theirs out of committee. back to you. neil: bring you up to date on mark esper, who will be next defense secretary of the united states, securing enough senate votes to do so. this ended one of the longest periods of the american history where the pentagon has not had an approved leader. he will take over tomorrow. more after this.
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neil: all right. if this is a sign of things to come, it could explain why things are looking dicey on the tray front. chinese investment in the united states has dropped 90% amid all this back and forth, particularly when it comes to real estate. it is not exclusively real estate, i want to stress that. it could be a wrinkle for the housing market particularly on the high-end where chinese are big buyers on the new york market. it is a problem to take a look at this, this doesn't portend good things for housing but another headwind issue, isn't it? >> it is a headwind. the other headwind with china is the tariff situation. of 5000 or so products hit by tariffs, half of them go into the construction of a house. we're dealing with that element in terms of housing. neil: how much does that lift the average price of the house from what to what?
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>> $200,000 per $1000. neil: wow. so it is significant. do a lot of homebuilders try to pass it on? >> we have this. we're in okay market. homebuilders are using incentives, to get buyers to come to the market to get to the table. so the profit marginses are very, very slim right now for most american homebuilders. neil: jerry, what i bring this up, i go on anecdotal stuff i can see. homes continue to list and continue listing, not moving. traffic not tepid not across the country, but certain parts of the country. i'm always surprised about this. job market is never been stronger. interest rates almost have never been lower, so that shouldn't be happening. >> you have a housing affordability crisis. family formation is right on track after the recession. the first part of the recovery was very high. would you expect serious demand
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but during the course of the recession, when state and local governments needed to increase revenues, they increased regulatory burden on homebuilders incrementally. 256789% of the cost of an american home to be built is regulatory compliance. neil: haven't a lot rolled back? >> federal ones have, but not state ones. for example, in san diego county, california, it is 40% of the cost of a house. neil: are you kidding? what kind of things? >> zoning, environmental compliance over and above the state, even above the national compliance, all kinds of things like that. neil: the overall environment as you see it, how would you define it? >> i would say right now we're still in a positive environment but that we're starting to get a little bit leery. builder confidence remained fairly steady which is good but when you look out, starts are 5% less than they were year-over-year compared to last year. building permit are starting to decline.
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more of a futures indicator. neil: right. >> we're starting to watch things very, very carefully. housing affordability for the first time in my career is becoming an issue in the presidential election. virtually all democratic candidate have something to address it. the president to his credit, set up a task force to look at housing affordability. neil: but the latest period, existing home sales, sliding close to 2% rate, 1.7% rate. they were expecting that to barely budge. does that alarm you? >> anytime it goes down it alarms me. we want to look at longer frame than one month. something we'll take a look at. it is surely not good news. neil: how much is the tax thing impacting? you heard flight from expensive places, new york, everyone going down to florida, seeking out low taxed environments because write-off limitations, deductions in high-priced states, high-taxed states is just not worth it? >> i think you're talking about the very high-end of the market in that regard. neil: you don't have to be too high-end if it is limited to
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10,000, is that correct? >> that's correct. people can move freely is pretty much high-end market. people are leaving salt states. neil: will that continue? >> it will. people get fed up paying taxes. unless state and local governments change their tune a little bit, there is real motivation for some of these people to leave the state. neil: to get them to change their tune is nearly impossible. >> i think we're starting to see some nascent nimbyism. we're starting to see in places like san francisco, people are saying, we need to do something to make housing more affordable. maybe we could be the platform for bipartisanship senator lieberman was talking about. neil: hope springs eternal. jerry howard, national homebuilders ceo. boeing set to unveil how
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much the whole 737 max grounding hit its bottom line. we'll know pretty soon. as jeff flock reports, these are issues that could spill over way beyond that company. sir? reporter: talking about housing. this is another downwind for the economy. this boeing situation which kind of continues to unfurl. as you report, neil, tomorrow, before the bell we'll get the earnings. not going to be pretty but some analysts estimated a little better going forward. look what you're looking at right now. this is what it looks to have $30 billion worth of product you can't sell. these are undelivered boeing 737 maxes. they were making 52 a month. they're putting them in the parking lots, employee parking lot outside of seattle there near the factory. they're making 42 a month. that is one of the reasons they took a big charge, they're going to in the second quarter, they have higher production costs. same number of workers, they
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haven't laid anybody off. they're not making as many planes. not taking people in. aircraft orders down 28% in april -- 39% in april, 28% in may. look at durable goods orders, down 3% almost in april and down 1.3% in may. you know boeing in addition to the impact on the airlines has got 13,000 suppliers and so big impact there. but mostly the impact on the airlines. take a look at the performance year-to-date for the airlines that fly the 737 max. that would be like american and alaska air. you see what they're doing today. year-to-date though they have not performed tremendously well. along with united and southwest which are also big 737 max users. the dow, keep in mind is performing at about 16% year-over-year, year-to-date. and the airlines not as well as,
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as good as that. jetblue, we show you that one. why? because they don't fly many boeing aircraft. they're pretty much airbus. they're up 19% year-to-date. so, neil, tomorrow will not be a pretty site when they unveil their earnings but maybe they will be better than people think. some people buying in. neil: they ratcheted down expectations to the point it might surprise on the upside. thank you very much. jeff flock on all of that. >> thanks, sir. neil: meanwhile you've got puerto rico they're issuing search warrants to the governor, what he knew and when. in costa rica, people dying from tainted alcohol. dominican republic, problems with tourism. people are looking at this idyllic part of the world and saying you know what? the catskills looks just great, after this.
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in puerto rico now. a judge issued warrants linked to the embattled governor as protesters won't back down. they want to find out what happened to that hurricane dough, a lot of dough, potentially disappeared, billion dollars worth. bryan llenas in san juan. reporter: hey, neil, i'm in front of the governor's mansion. this is where a lot of protesters have been in the last 10 days. you see the orange barrier. this is the side of the governor's mansion. there have been 11 days straight of peaceful protest. last night it got out of hand. look at video. tear gas was launched at protesters. after police gave them four warnings not to throw rocks. 99% of the protests were peaceful but some people don't listen. one of the casualties of last night's protest was this vehicle. this is crossover suv, a tear
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gas canister went into the suv, lighting it on fire. we spoke to the owner, of that suv. her mother was watching tv, seeing protests from los angeles. called her son, said i think your car is on fire. take a listen. >> it is what it is. things going on, it will have side-effects. unfortunately this is one of the side-effects. reporter: neil, in all of that was after historic day of protests. 500,000 puerto ricans, the largest demonstration in this island's history, blocking highway traffic there on the main art sisterry here on the island. neil, this is what is going on here right now. they are a committee, here in the legislature, is starting a report to see if they have enough to impeach governor ricardo rossello over corruption and mismanagement. a judge in puerto rico issued search warrants when it pertains
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to the governor and 11 aides, that group chat gate scandal where they spoke and made fun of hurricane maria victims and said misogynistic and homophobic things about their own opponents neil: bryan llenas. a lot of cruise lines are not going to puerto rico. you look at the dominican republic, a little too dangerous. they're not out of the woods. you're looking at costa rica, hearing about tainted alcohol killed a dozen. what do you do? hotels.com planner, wondering about the fears and where the heck do you go, what do you tell them? >> we're not seeing the puerto rico, costa rica, dominican republic, okay an occs down double digits.
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we've been sending them to the bahamas. it is right from florida. it is our go-to for people that have gotten nervous about those other destinations. neil: i can remember a lot of people were getting nervous, remember we had terror attacks in paris, london, both cities. it put as chill temporarily on visits abroad. i wonder if this is a temporary phenomenon? what do you think? >> it definitely is. if you look at the terrorist attacks in north africa to tunisia, algeria, places like that, now that the pound has gotten weaker that is on the top five most favored destination for brits right now reporting from london. so what happens is, tourism calls down. some resorts will go into bankruptcy. value investors buy them pennies on the dollar. they offer better value to tourists because there is not as much debt on the property. so they can lower rates by over
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half, 70% off. there is always going to be that value travel tourist that wants that great deal. we're seeing that uptick in north africa travel again, to areas in greece, turkey, as you remember a year ago they were having the same problem with bootleg alcohol killing people. >> you're right. tim, we'll watch it closely. thank you. >> thank you. neil: would today, shoulda, couldda, fake meat craze is up 700% since its offering. hit another red today. we're the slowskys.
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neil: charlie gasparino with latest on merger if it ever
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comes to pass with t-mobile and sprint. it is like a soap opera. >> it is like shakespearian, not a sonnet, a speech mcbeth, tomorrow and tomorrow, tomorrow creeps in this petty pace. seems like it is every day. now we can safely say this is make-or-break week. neil: this week is? >> this week. we're hearing the announcement is thursday. tomorrow is the mueller hearing. neil: okay. >> makan delrahim, the head of the antitrust division wants some sort of a spectacle. it is a big deal. neil: his group don't want it to happen. >> his staffers. in order to get through that, he did this wild sort of deal, and i have written about this on foxbusiness.com, where they actually got some divested assets, convinced as of now, could change, you never know these guys, charlie ergen of dish to buy divested asset to create a fourth wireless carrier, potentially antitrust
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concerns, combined sprint t-mobile with at&t and verizon, now you have dish in the mix. that is what we're talking about here. some last minute snags, just so you know, it can always blow up. when you see the press announcement, might be wednesday, if you get media visor, anti-trust will come out with something on thursday. then you know it is done, done, done but the last minute snags, from what i understand they're looking at possibly repricing this thing. it was known as a 26 billion-dollar deal when it first got announced a year ago t will not be worth that much now. why is that? the because the parties are giving up significant assets to make this fourth carrier. they will give up assets. they will divest spectrum. neil: can they give up so much it is not worth it? >> i think that is what held this up. now they're at a place, dish will not be so big to compete against them, be a killer competitor, they can live, they will have, they will have a valuable asset in sprint,
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t-mobile, will have a valuable asset in sprint. the justice department gets to approve the deal, larry kudlows, everybody wants in the white house. they think it is good for 5g. it saves sprint because they have financial issues. you do get the fourth carrier. the other thing, you make a great point, is it too much they're giving up? they're making sure charlie ergen doesn't sell his company fattened up with spectrum, other assets to charter, comcast, potentially dangerous players to compete against sprint t-mobile and wireless. they're looking for a remedy where charlie ergen can't sell for 10 years. neil: he would need something to do this, right? >> remember, they're working on this they have something over on him. he is sitting on wireless spectrum, billions of dollars. neil: he was supposed supposed o something with it. >> he didn't do. the quid pro quo, we give you
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extension. we don't demand it back. this is very complicated thing. what we hear aiming thirst. if they want to pop it tomorrow, i don't see that. who would want to compete with mueller. even though mueller will say no comment 15 times, 1500 times. that's wherewer we're going hearing thursday. how many times i said hearing thursday on this deal, like tomorrow? neil: got to be this week, right? >> how are you? neil: i'm fine. very nice to see you. you're on top of this story. >> i'm so glad. neil: no. >> not going to say it. neil: you take care. >> pumpkin spiced lattes? neil: it is hot. >> you know what you need on this show, a great actor, p.j. byrne. neil: that is enough. >> someone said they cut my mic. neil: charlie gasparino. he is still the best in the business but he is tedious.
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the dow is up 56 points. a lot more, including latest candidate promises, they're costly, very costly, after this.
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neil: debt on arrival, a debt ceiling deal which has both parties which means it's going to pass. tom brady getting a lot of heat for jumping off a cliff with his daughter. cory booker jumping on the president's looks as things get ugly when you talk about the other guy being ugly. neil: all right. this is not the first time congress has done this, but it's another reminder that it cannot get over this. the propensity to spend and take out any hint of discipline. the latest agreement that keeps the government lights on for at
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least another two years so you don't revisit this for another two years means the spending gets more excessive and the debt gets, well, bigger. at the pace we are going, we will break all records. blake burman with the latest from the white house on who's writing off on this and if there could be any surprises from this. hey, blake. reporter: a couple different ways to look at this deal. first off, you got the debt limit portion of it which the debt ceiling now is going to be lifted for another two years. then there's also the spending side of this, which this deal is yet another reminder that republicans and democrats here in washington, if they can do one thing well, it is spend. let me show you the breakdown of this budget deal that was negotiated by treasury secretary steve mnuchin, white house negotiators, top house democrats, calls for defense spending to jump next year and the following year. non-defense spending rises $27 billion for next year, then again a couple billion after that. when you look at the big picture here, the trump administration right now, the office of
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management and budget, says there is going to be a trillion dollar deficit this year. they are also projecting and predicting trillion dollar deficits as long as president trump is in office. add to that more spending, sequestration caps are gone. i asked larry kudlow earlier today how all of that amounts to fiscal conservatism. listen. >> the spending increases were very modest, $20 billion some odd on both sides so that's okay. if your ten-year treasury is running at 2%, that tells you the bond market is really not concerned about the business situation. reporter: so that's how he is justifying the spending increases today. meantime, the treasury secretary steve mnuchin will be briefing republican senators at lunch about this deal. senator john kennedy is one who has voiced concerns about all of this runaway spending. >> cutting spending around here
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is like going to heaven. everybody wants to go to heaven but nobody's quite ready to take the trip. i got a lot of questions. reporter: got a lot of questions. there's going to be a lot of republicans all across this town who are going to be none too pleased with an increase in spending on really both sides when you look at domestic spending and non-defense spending as well. add it all up, it's just more spending in general. we should note that even though they have got this cap deal, still down the line they have to appropriate all of this money which is try to figure out where exactly to put it and spend it. so more budget fights are almost assured later in the fall here in washington. neil: 12 individual bills to go through one at a time so just getting this is just the first hurdle. any chance the president could surprise folks and say nope, that's it, i'm not going to do this? reporter: it's a good question. in fact, i ran it by a white house official earlier today and i said does the president as of right now, as things stand right now, this was this morning, does
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he intend to sign this if it were to get to his desk. i was told flat out absolutely yes, the president will sign it, but remember, he has already backed off of one spending deal and that has some here in d.c. wondering what the president might do next, if he will fully embrace it, especially after the voices of some republicans will grow louder and louder with this. but i was told this morning indeed, the president will, at least as of now, the caveat always here around the white house, intends on signing. neil: we shall see. blake burman, thank you very, very much. the fact that both sides agreed on this, they don't love this, is probably a sign that they will go ahead and pass it but it will add to our debt at about $1 trillion a year. that might be a conservative figure. that's been the pace at which we have been running. in fact, this administration right now is running at about a 30% clip faster than the obama administration at this stage. now, anything can happen,
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possibly will. let's get the read from david dietze. we have democratic strategist david burstein. i better be careful who i refer to here. and kat, this idea people are used to it, debt is debt, no one seems to be bothered by it, people put money on it like the bond market. they're okay with it. so don't worry about it. >> i think that's the attitude but we have to make it clear that's not just democrats. i don't think that republicans get to call themselves fiscally conservative or fiscally responsible anymore. this would add to the discretionary spending cap by $320 billion over two years and offsets less than a quarter. off -- neil: beyond the caps in place. very important distinction. >> offsets less than a quarter of that. that's not fiscal responsibility. that's madness. yet we see conservative politicians when campaigning talk about democrats overspending but they're not looking at themselves.
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i don't understand how there can be anyone still falling for the idea the republican party is fiscally conservative. neil: neither is right now. one of the things i caught from larry kudlow saying the bond market doesn't seem to be worried right now. he kept saying right now. he's right, right now it's not a worry, should it be? >> it doesn't worry until it does worry. remember, it wasn't that long ago when we talked about the bond vigilantes and if there's a whiff of inflation, if there's some sort of problem with the economy, the bond yields can start going up. the sad thing is now with debt payments low, because interest rates, this is the time to show some backbone and get fiscal discipline. later it will be more difficult when interest rates start moving up again. neil: we should refinance the whole thing. you know, it's interesting in this environment, you have, again, i agree with kat, no one is a saint in this picture, but a lot of the candidates running for president to a man or woman are advocating a lot more spending. the debt notwithstanding. the numbers don't add up how you pay for it.
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but they counter look, republicans were driving us to drink and debt so what's wrong with us doing the same. >> i think a lot of the problem here is we have totally abandoned this mentality, remember bill clinton ran on this as an issue, as a centrist democrat. this used to be an issue for centrist democrats. even centrist democrats have moved off this issue because i think everyone's gotten so numb to the question of how we actually do this, because remember, not only have we been running up these deficits now for years and years, but we also haven't had a regular appropriations process that we've gone through, you know, almost no one who is -- the only way we get these things done, get anything done, is over these budget deals and holding people hostage. this is such bad governance on every level to do it this way, to have these crs, will they or won't they negotiation over literally the entire budget, and at some point hopefully we will stop this but frankly, i don't see any end to it. neil: you know, kat, one of the
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things that illustrates the point you have senator elizabeth warren today working with representative clyburn in the house to cancel student debt. this is very popular with virtually all the democratic candidates so we are going to compound this with more spending plans. they argue you do stuff like this, it's going to lift up the gdp and all that. i don't know about that. but i do know you are digging in deeper. >> yeah. i have never really understood when i hear a politician say they are going to cancel student debt, how are they going to do that? they going to bring marianne williamson in, she rubs crystals on it and it goes away? from private banks here, you can't just make it go away. this isn't harry potter. it's also true that education has gotten more expensive as the government has gotten more involved. neil: what does something like this to do to mitigate that? >> it would make it worse. neil: what do you think? >> this is one of the worst cases of government picking winners and losers. what about small business owners who tried to create jobs for others, run into troubles, where is their debt relief?
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how about taxpayers who have a bad situation, should they be able to not pay their taxes. why this? neil: you talk about small business and i'm sure they're not a fan of what congresswoman outlined today, hiking the minimum wage to $20 an hour. obviously that sounds appealing. what do you think of that? >> look, the reality is we have been having this minimum wage fight over a long period of time, and the number that actually costs to have a living wage -- neil: seems to be a moving target. >> it is a moving target. that's why the minimum wage isn't the right way to mitigate that. i understand why it's popular, because it's something people can actually understand. there does need to be broader economic policy that helps us address this gap. neil: isn't the sanders campaign a good example of that? they were made aware they're not paying everyone $15 so they are going to do the $15 thing but have them working fewer hours. >> absolutely. it's almost as if economic forces are real things that are
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going to influence outcomes regardless of how much you wave your arms around and yell about them before going back to one of your three homes you earned through capitalism. this isn't a matter of being nice or not, you know, not wanting to pay people more. it's just that there are certain realities with these economic forces that can't be ignored whether you try to or not. neil: now, it's a competitive work force right now, so a lot of these challenges, in these states jobs go begging at $12, $13 an hour. >> has two other effects many see as negative. people are concerned about the rush to -- of technology. this accelerates that. of course, other people are sad to see the jobs go offshore. again, this pushes many jobs offshore because of higher wages here. neil: if we had one of these candidates winning, you see things through the prism of wall street. the president has said kiss my tax cuts good-bye, kiss the bull market good-bye because now all
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that higher tax, higher regulations come back in. what do you think of that? >> well, i think wall street can adapt to any of these types of programs if we have a long-term gradual phase-in of whatever is deemed appropriate. it's going back and forth from left to right, right to left, that makes it very difficult to run business and invest properly. neil: what do you think? >> let's not forget where this bull market started. it was under president obama, who i believe was a democrat, has been criticized for bringing too much regulation to things and regulation i think -- neil: to be fair, i agree, it can did start with him but we had nowhere to go but up after that meltdown, right? >> yeah, but -- neil: i agree, but obviously, this president thinks he's put it on steroids here, the market and economy and all that. you worry that something like this, these are big increases that would be coming for people. >> i think the problem is, you know this better than anyone, because you have been covering this for a long time, when a market -- neil: you're reminding me how old i am.
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>> when any environment gets used to something a certain way, right, any kind of dip, a dip that, to a level that still might be historic a couple of years ago, will be received very poorly by people. neil: friendliest president for the markets was bill clinton. think about it. >> yeah. >> that's the criticism. that's the criticism. neil: you always have to go there. he was friendly. look at this. lawsuits are coming. all right. a lot more coming up. we will get these fine folks' read on a couple developments, not least of which is these talk in the markets, it's up and away but you do have iran, a couple of developments with mueller tomorrow and maybe they are going to force him to say stuff that maybe wasn't in that report. you have a lot of worries out there. why this man, though, could really be the epicenter of those worries, after this. jardiance asks:
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donald trump is a guy who you understand, he hurts you and my testosterone sometimes makes me feel like wanting to punch him which would be bad for this elderly out of shape man that he is if i did that, physically weak specimen. but see what i'm talking? that's his tactics. you don't beat a bully like him fighting him on his tactics, on his terms, using his turf. he's the body shamer. he's the guy that shows, tries to drag people in the gutter. neil: but he still wants to beat him up. anyway, it is something about the discourse of the campaign when joe biden does it, the president does this back and forth, you know, go behind the building and we'll go at it. back with me, david dietze,
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david burstein and kat. as a woman, do you find this argument stupid? >> oh, no. it's actually the most important issue to me. i'm a single issue voter. i vote for whoever i think could win in a street fight. obviously, this is ridiculous. the way that cory booker discusses is ridiculous. it's the kind of thing that i haven't really heard since high school from the mean girls, they will be like i don't want to be mean but jessica's nose is big and i hate her. i'm like you were just mean. you're saying you aren't going to stoop to his tactics but you did and of course president trump does do this and i don't like it when he does this, but don't say you're not going to do it if you're doing it. call it what it is. neil: they all take a cue from the president. when he was running, he had nicknames and said stuff about the other candidates and i remember when marco rubio went down that route, it torpedoed him. i'm wondering where this goes, whether we could raise the debate here but i guess not. >> well, yes, this is coming from the president who got into, we can all remember the famous
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debate between him and marco rubio about where there was no problem. and the reality is that this is -- neil: lincoln [ inaudible ]. >> the founders were in duels and all this kind of stuff, right. i would say to people, people who call for more civility in politics should remember that politics is a substitute for war. this is how we used to decide who is in charge. neil: but when you see this play out from your perch, whether you're republican or democrat, you always think they will get into the real arguments, what are we going to do about this debt, what are we going to do about all this stuff but it devolves into this other nonsense. >> that's right. there are a couple things going on. one, of course, mr. booker, senator from my home state, is throwing a hail mary. he's declining so fast in the polls, he needs to get out in front -- neil: he's saying he wants to clock a 72-year-old guy. >> exactly. therefore, he gets himself on tv
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and maybe that will help his poll numbers. second, imitation is the highest form of flattery. this type of strategy has been working for mr. trump so the dems are taking one out of his play playbook. >> no one is as good at it as he is. i wouldn't want to be in a roast battle with him. he would make me cry. neil: yeah, it might work there but who knows if it can repeat itself. >> because he lacks empathy for other people. we have seen that time and time again. he has a deep lack of empathy. neil: you don't know that. >> i have seen it on the basis of what he's done. he's able to insult people without feeling bad about it. neil: loser. i'm kidding. let me ask you guys something else on a more substantive note here, whether you like it or not. elizabeth warren, who we're told, i remember a little bit of this, had not predicted economic meltdown but warned a lot of the stuff that was going on in housing at the time, she is now saying a lot of the same flashing lights are there for a repeat of that. what did you make of that? >> i read the piece.
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i found that it lacked a lot of context. for example, she talked a lot about consumer debt but left out the fact that americans are now more able to pay that debt -- neil: government debt by the way, entirely. >> right. she's missing a lot of context. i felt she was trying to bamboozle me on purpose. i didn't appreciate that. neil: kate happcould it happen ? things happen again, history doesn't repeat itself but it rhymes, right? >> it seems to me that was more of a hope on her part rather than an actual prediction that holds any water. i mean, here's the thing. we know that normally presidents get re-elected if you have a strong economy. i think she's trying to place seeds of doubt as to how strong this economy is. neil: you are a jaded guy. >> unemployment, the dow, you know, consumer spending, it's hard to argue that we don't have a strong economy right now. >> but we also know these kind of markets do not -- these kind of conditions do not go on and on and on and at some point, may
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not be tomorrow -- neil: that's the level of frothiness i would have associated before the housing meltdown, right before the implosion in the internet, i don't see that. there might be other factors but what do you think? >> but i think it is really important in times of prosperity to take, we seem to be very bad about doing this in this country, try and take measures for if we get ourselves -- neil: you will never be wrong at least raising your hand saying this is a worry. >> eventually everything will happen. i think the strongest argument is why is the federal reserve cutting interest rates next week. what do they see that's causing them to actually provide more monetary stimulus? neil: this worries me. everyone i know is looking forward to it and the cut. i'm looking at it saying man, i don't think this is a good thing. >> what don't we know. that's the scary thing. neil: if you are the president, you're not worried about this. he keeps quoting the market, keeps quoting economic boom, keeps quoting record low unemployment levels and all that. but he would have to have a good
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run to keep it going, right? because dating back to president obama's fed, this is a long recovery. he's juiced it. i don't take anything away from him or president obama. but for it to keep churning like it is a year and a half from now -- >> absolutely. he's going to need that economy because he's not very popular on other issues. but he is popular on the economy. people do give him credit for that. right now, really all democrats have to hope for in this area is to do what elizabeth warren did. they can't say it's not great now. they have to say but it's going to be bad in the future and sort of make those predictions, say they are the one to be able to stop it. that's the only option they have. at least in this area of policy. neil: all right. we will watch very, very closely. in the meantime, the next prime minister of britain is expected to be boris johnson. they don't have a hollywood period between getting the job and moving in to ten downing place. it's like a day later. man, that's quick. wish we did that. after this.
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>> it is deliver brexit, unite the country and defeat jeremy corbyn. that is what we're going to do. hi i'm joan lunden.
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-- energize the country. we are going to get brexit done. neil: boris johnson is going to be the new prime minister of britain, chosen by his party today, sworn in and moving into ten downing place tomorrow. talk about no rest for the weary. lot of people focused on what he's going to do about brexit. we think his more immediate concern might be the uk tanker that is being held by the iranians and the crew of better than a dozen in a pickle wondering if and when they will ever get out. "washington examiner" editorial director hugo borden on what this could mean. what do you think?
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>> boris comes in with a lot of challenges and you mentioned the iranian tanker, but that's a pretty small one compared with brexit. he also comes in with a lot of advantages. the first one is that the party really supports him. they absolutely hated or loathed theresa may by now. she was very weak, she squandered a big lead in parliament, she had not delivered brexit. he comes in with the support of his party, but the other thing that he comes in with is a much stronger bargaining position with europe. she basically gave europe a veto over any exit deal because she said she wasn't going to leave without an exit deal. so all the europeans had to do was say no, we don't accept that, no, we don't accept that, and force her to come back with more concessions. what boris has said is we are leaving on the 31st of august, come what may. so that puts pressure on europe. they have a lot to lose. there are some strong cards that britain has to play in the negotiations and they know that they've got a lot of money, billions and billions and billions of dollars to lose if
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they don't actually try and play ball. neil: but you know, time waits for no one when it comes to this british ship deal. it could be a signal, how it will handle things and maybe if he handles this one forcefully or correctly by the british public, maybe his own party, it could be, you know, a feather in his cap. how do you see that going? >> well, look, there are not that many cards to play for britain. you know, it's not like he can send a fleet out there to intimidate the iranians. the royal navy is tiny, so much to the point there was a period during which american coast guard personnel were on royal navy ships. but there's no doubt that what boris will do is hang tough, he's likely to increase british presence out there in an international force but i think it will go on for a long time. he cannot, i think, make the
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mullahs back down. all of this is part of the mullahs' efforts to undermine president trump's position and divide europe from president trump on the iran deal. i don't think that's going to happen. there's one aspect of this that may seem like not a very nice aspect but the crew on the ship are not actually british citizens. it's a british flag, you know. they will be somewhat less domestic pressure on boris johnson and somewhat less alarm about whether those sailors are kept by the iranians for a more extended period of time. it might not be pleasant to think about or say but i think that's probably the case. neil: it's been mentioned. we will watch it closely. hugo, thank you very much. it looks like apple is sort of going beyond its niche here saying that it's intending to buy intel's 5g modem chip. that's a big business. the fact of the matter is, if apple then gets to own the means
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of production as well as the chips that power it, that's a game changer for apple. after this. 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.
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neil: welcome back, everyone. huawei is at the center of this whole china trade thing, right? are they going to be part of it, are they going to limit how much u.s. manufacturers, particularly semiconductor companies and those that depend on this technology for 5g, can play with this or not, and right now, that really is the epicenter of this
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whole debate. edward lawrence on capitol hill with more on that. how's it going, ed? reporter: really, we are at a stalemate with the u.s. trade delegation over huawei. the chinese are waiting to make a move until they see sales of technology to huawei. the u.s. is waiting for china to buy agriculture before we make a move. it might be several more weeks until the chinese actually see some movement on that front. a source with knowledge of the situation tells me that because of national security concerns, the sales, or approving sales to the chinese telecommunications manufacturer is a very slow process. even though the companies may hold a temporary license to sell technology to huawei, there are many layers of eyes that have to make sure it doesn't compromise national security. that's taking longer than usual. public documents show that the average wait time to sell to a company on the entity list is between 18 and 23 days. that's three or four weeks. white house economic adviser larry kudlow saying we are in that process.
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>> let me be as clear as i possibly can. huawei's still on the entity list, so we'll move ahead and process applications for telecom sales, chip-related sales that do not yip piimpinge on nationa security sales. reporter: china wants huawei off the blacklist all together before they'll talk about removing concessions bathat wer taken out of the trade deal back into the trade deal. back to you. neil: thank you very, very much. there is the mueller hearings to consider tomorrow. robert mueller expected to testify to two different house committees. everyone says it really is depending on what they can get him to say beyond just the 438-page report itself that he says he will be limited to and
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only talking about. former republican congressman bob barr on that. you might remember the congressman was there during the clinton impeachment proceedings. good to have you. >> always good to be with you, neil. thank you. neil: things always come up in hearings that weren't planned or weren't necessarily telegraphed. that could be the same case here. what are you looking for? >> well, what i would be looking for is to see whether or not mueller sticks to his guns and says nothing beyond the report itself that was issued many, many, many weeks ago. if he does, if he does say nothing, then the whole democratic exercise here of having him come forward will be shown very clearly to not be about substance but to be about politics, pure and simple. if on the other hand, he does say something in addition to what was in his report, then he's going to be shown to be somebody who is not believable so he loses credibility. so either way, the democrats lose credibility or he does.
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so the winner in all this i guess, if there is a winner, will be the republicans because they don't really have a dog in the fight and if he says something, they can attack him. if he doesn't, they can attack the democrats. neil: the justice department kind of already put out a warning for mueller to stay within the boundaries of the report. that wasn't accidental, the day before his appearance. what do you make of that? >> i think it's very timely and very important, what the department of justice told mr. mueller is that insofar as the report itself, included information on ongoing investigations. it also referenced executive privilege material, therefore, you are not pursuant to your obligation as a federal prosecutor authorized to go beyond that. if mr. mueller is as straightlaced as his supporters
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like to say he is, he ought to heed that. neil: did you have the actual report to go on when your hearings on bill clinton started? >> we had -- we had the entire starr report. not only the public report that judge starr sent to the congress, but all of the background material which took up files, i mean, file after file after file, which i and a number of other republicans on the judiciary committee looked at, but nobody else did. neil: now, the reason i mention it, a lot of people have not read this report, particularly most americans, so a lot of this will be news to them that comes out or revelations that come out about something that's deemed to be breaking the law in some people's eyes, just a revelation to others. do you think this risks hurting the president as far as dinging him in the polls or revelations come up that are not necessarily
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impeachable but embarrassing to the point he drops something? >> i don't think this is going to harm the president at all, unless mr. mueller comes up with some bombshell which is highly unlikely and would be highly unethical if he did. the president isn't going to be harmed by this. the democrats are pursuing this for political reasons. if mueller goes up there and says oh, excuse me, it's 6:00 instead of 5:00, then that will become for the democrats, big news and it will justify in their eyes moving forward with another impeachment exercise. neil: much like yours didn't go anywhere in the united states senate, you think the same would happen here, if they even got that far? >> it clearly would not go anywhere in the senate. as a matter of fact, the entire environment in which impeachment is now being considered and the term thrown about, it doesn't even have the impact that it did one generation ago.
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we saw that several days ago with al green's impeachment resolution on the house floor. doesn't mean anything anymore because it's lost its currency. neil: you know, very quickly here, i always wonder what saved bill clinton was the strong economy, the strong markets. i don't think richard nixon was as lucky at the time, you know, the senate and the house were certainly wagons around him. i'm not saying that's exclusively the case but the backdrop is very similar. this president enjoying strong economy, strong markets, and this notion that no matter what's revealed here, unless it's just off the chart, nothing's going to happen. >> nothing is going to happen. the democrats are going to do what they are going to do regardless of what happens tomorrow. they are going to keep these issues alive through the election. the president has marked out his territory and he's not going to change his position one iota either. neil: congressman, we will see
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how it plays out. thank you for taking the time. >> certainly. neil: he's probably the most celebrated athlete on the planet but not when it comes to being a dad. did he miss something here? the video that's gone viral but now has a lot of folks second-guessing tom brady as a father. - why are drivers 50 and over switching
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you're missing out. - [narrator] to get your free, no obligation quote and see how much you could save, call the hartford at the number on your screen that's the number on your screen. or go to the website on your screen. the buck's got your back. neil: netflix is looking now at its longest daily losing streak in five years. been nine days in a row now that shares have dropped. in that period it's dropped 19%. still, even with that, year to date it is up 15%. not so fortunate what's going on in the home sale front. existing home sales dropping unexpectedly and whopping in the latest period, most expected it down .2%. we are monitoring that.
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also monitoring what's going on in berkeley, california right now. the first u.s. city that is banning natural gas in some new homes. robert gray is in berkeley with the latest. robert? reporter: hey, neil. thanks so much. that's right. the folks on the berkeley city council telling us that natural gas is the second biggest contributor to greenhouse gases and that's one of the reasons they are going after cars. they are implementing this ban beginning january 1st, it will affect residential construction, buildings below four stories tall. this is following recommendations of the california energy commission which says electricity is more cost efficient and effective than natural gas. this will affect mostly condos and townhouses, maybe some 2,000 units over five years. they don't build a lost sit of e families homes. the city is pretty much built out. the council member who proposed the measure says it will save installation and other costs, claiming it's about seven grand cheaper to install all electricity versus natural gas hookups and says it's safer.
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calling the san bruno pipeline explosion back in 2010. >> i think for new buildings, because it can be done cost effectively, to start from the beginning i think it's okay to require it. i wouldn't do that for existing buildings. people already living there, they already have what they have. reporter: larger buildings will not be affected at least initially. no plans to do so. but until the tech gets better, regulators and developers do agree that would be costly for consumers. >> it could add a huge amount of expense to build an apartment at a time when apartment construction costs in the bay area are higher than anyplace else in the world right now. reporter: kennedy says those costs would be passed to the consumer in both housing costs and in their monthly bill. he estimates it could be $50 to $80 a month in the six-story building he's working on that we toured. it's right near the uc berkeley campus. that could hurt in a region where they are already paying on average some 50% above the national average for both electricity and natural gas.
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long-time developer says he wouldn't be surprised to see san francisco follow suit. philadelphia and oakland have already inquired with the city council here as well. we may see other cities following suit. back to you. neil: thank you very, very much. the dow had a sudden surge here. we can only trace this to what appears to be a bloomberg report, negotiators are heading to china on monday to work out a trade deal. again, that's the only catalyst we see that can turn what had been a 60-point gain in the dow into something more like 146 points. within earshot again of another record. that record would be the one reached last monday, when we hit 27,359. now under that by about 35 points or so. more after this. truecar is great for finding new cars.
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neil: all right. stocks jumping right now. we can only trace it to this bloomberg report that u.s. negotiators will be heading to china on monday for these talks. as david dietze reminded me, all you need is any kind of news, pro or con, and you can move the markets very, very fast, anything having to do with china. david, on the markets, this is yet another reminder as the prospect of china talks go, so go stocks. >> this is the second most important issue affecting the market after the federal reserve -- neil: they're linked, actually. >> absolutely. the way we have been playing it, we think ultimately strong incentive to both sides to reach a deal. the chinese economy is slipping and this is a key issue trump would love to have nailed down in time for the 2020 election. so if there's any sort of, you know, fallback, markets come back, we say hop in there, but of course, we would not be buying on a spike just because an airplane is in the direction of china.
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neil: could be the wrong airplane. if the president were to get a china deal, does that change the environment for the democratic candidate? that would be a very big win. >> i think it would help him, for sure. he's been very good at being able to spin these deals into wins for him and i think it could be a substantive accomplishment. there has been bipartisan agreement on these things. there are some surprising people who said they agree with, you know, tom friedman had this whole thing this weekend over that and says he's agreed on the crackdown with china. it would help with those sliver of voters that will really decide this election who are the people who may find the president's behavior objectionable but they don't really care about that as much as they care about the economy and they feel like the economy is doing well. neil: let's go on to more important issues. tom brady. i don't know if you have seen this by now. take a look at this. all right. well, he has been social media
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shamed for, you know, jumping off a cliff. doesn't appear to be an extremely tall one. with his daughter. then we found out it wasn't his daughter. no, i'm kidding. what do you make, kat, when you look at that? >> people are overreacting so much. the kid's alive, right? like everything's fine. neil: they are saying oh, you just missed, you were dragging her off. >> he wasn't dragging her off the thing. the reason people are mad is because it's tom brady and he's a divisive figure because of how good he is at football. not everyone is a patriots fan. neil: the super bowls. >> there's that. the only thing that offended me about this video is i'm sick of watching cliff diving videos. there are people i follow on instagram who seem to be on vacation all the time, they all have a cliff diving video. i'm upset it was a little hacked, he could probably do a little better, but come on. i used to do stuff like that when i was a kid. me, also, still alive. neil: still alive. what do you think? is this much ado about nothing?
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>> i think it's just so great we see a picture of a great athlete spending time not only with his kid but also with his daughter. neil: i don't know the kids were around there saying come on. >> why criticize a guy for being a family man and doing something really great with his daughter? i think -- neil: you can't win these days. >> i actually think there's a problem with social media shaming but there is also a problem with parent shaming in general. people are criticized on social media left and right for what people are doing with their kids. i just became a parent for the first time. i'm newly sensitive to this. everyone wants to do their own thing and is entitled to parent how they want. plenty of people have parented plenty of different ways and they have all been fine. people need to stop being so concerned with other people's kids and spend more time thinking about their own kids. neil: focus on your own. in the meantime, this is something i find very offensive, pulling some of these plates
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that seem to be body shaming. depending how much you put on, you get up to mom jeans, but macy's pulling them because they found this was too controversial. >> look, i feel like if you are someone who is upset about this plate and you see it and it triggers you, you probably have underlying issues to begin with and it's more about the issues than the plate. neil: you have never been fat, have you? >> i have also never been triggered by a plate or a cup. neil: i just think people cop an attitude. >> or a fork. yes. none of those. none of those. neil: but they are pulling it. you can say all right, you don't like it, don't buy it. >> it just underscores the power of social media now. this just echoes what happened with nike the other day when they had a flag some people deemed racist and how the social media populism can force companies to change on a dime. neil: it is, you don't like it, don't buy it. you know, what happened to boycotts?
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>> look, there have been some instances of products that have been really offensive. i think some of this stuff doesn't really rise to that level. maybe actually it's selling better now that there's controversy. neil: you will never know. you will never know. you're just saying chill. >> i'm saying chill. generally saying chill. neil: good to know. guys, thank you all very, very much. we will be monitoring the markets and everything else. in the meantime, talking about stocks, the ten-year treasury note has picked up a little bit, at 2.07% on this word these negotiations will resume. presumably, they are reading strength into that, right? >> absolutely. tends to go up with a stronger economy. there you go. neil: all right. more after this. ♪ limu emu & doug mmm, exactly! liberty mutual customizes your car insurance, so you only pay for what you need. nice! but uh, what's up with your partner? oh! we just spend all day telling everyone how we customize car insurance because no two people are alike, so... limu gets a little confused when he sees
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...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. neil: all right. we were just shy of all-time highs on the dow a couple of seconds ago. now up about 166 point, buoyed by this bloomberg report that a u.s. trade delegation will be going directly to china, obviously to commence talks.
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at least what the sentiment seems to be that lifted stocks, pushed back bond yields on notion we get a trade deal, the economy is firing on all cylinders again. who knows. i know this guy has a pretty good idea, my buddy charles payne. charles: hey, neil thank you very much. pretty exciting this afternoon. i'm charles payne. this is "making money." stocks are jumping on reports that the u.s. trade delegation is heading to china for face-to-face meeting with their chinese counterparts. rates are at near all-time highs. the question, is it too late to get in? we'll have experts about when to bank and chase profits. some are calling for $20 an hour minimum wage. some say the booming the economy will crash and burn. how will this influence the presidential platform in 2020. ant testify fa, domestic

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