tv Maria Bartiromos Wall Street FOX Business September 18, 2020 9:00pm-9:30pm EDT
i'm elizabeth macdonald. you've been watching "the evening edit" on fox business. we thank you for joining us. we hope you have a good weekend. come back monday night and have a good one. ♪ ♪ ♪ >> from the fox studios in new york city, this is maria bart to proe mow's "wall street." maria: happy weekend with, everyone. welcome to the program that analyzes the week that was and help position you for week ahead. the jonathan ward is here, we will talk about china with dr. ward, then later, bobby van's steakhouse owner, talking about his effort to save new york city's restaurant industry. but first, let's take a look back at this edition of "the
week's talkers." let me get your thoughts on what took place in los angeles. >> well, the level of animosity against the prison is so high that these types of acts are almost inevitable. the rhetoric that we hear all over these days is going to lead to acts like this. maria: how many chinese nationals will start working for oracle? >> i'm pleased this is going to be undergoing a national security review in the united states, i will be kept9 call until i can see all the details. maria: are you expecting other countries to join these others like, for example, oman? >> we are expecting to see other peace agreements in the future, and this is bad news for iran. you have a president who tore up a nuclear deal that would have permitted iran to get nuclear weapons. maria: what might we learn to these other outreaches to obama
officials? >> they would be able to hide behind things we didn't know. maria: debt is going to become an issue -- >> if it were true that we could always print out money, why wouldn't we do it all the time? maria: how would you assess things, larry? >> i think it sets up a pretty good september jobs report when we get around to getting that in a bunch of weeks. maria: the ipo market got a huge pop this week as the cloud-based management company snowflake had the biggest public offering of the year and the largest ipo ever. it was up 111% on its daewoo, what that saw -- debut, david
bonn soften, it is great to see you this weekend, thanks for being here. >> thanks for having me, maria. maria: look, i know the cloud is hot in terms of markets and growth, but was that all that snowflake was about? what's your take on the incredible performance we saw this week of this ipo, snowflake? a warren buffett company? >> it had nothing to do with how hot the cloud is, it had to do with a bubble and euphoria and something that's about to blow up in people's face. i say it dramatically because it needs to be dramatic. we all lived through this in the late '90s going into 2000, and this company is trading at 156 times sales. not earnings, okay? so they have no expresences whatsoever -- expenses whatsoever for 156 years and give you all of the money back
in 156 years, you can yet your investment back. now, obviously, they're going to grow a bunch along the way. we made fun of valuations that were at 100 times sales, those were extravagant. this is a bubble, and this is not going to end well. maria: yeah. it definitely did show you, though, that the liquidity is there. the ipo market seems to be hot again. maybe that particular name you can question in terms of that move. i get that and the fact that it's based on sales, not even earnings, that's a great point, but what about the fact that ipos have been doing well? does that show some help for the liquidity and interest in this market? >> well, there is ample liquidity, but we really don't need the ipo market to confirm that, right? the stock market did very well
post-financial i crisis for eight, nine, ten years with a lot of liquidity but with the ipo market not doing well. i think, unfortunately, sometimes it can just be a referendum on maybe sentiment and some of the euphoria that investors fall into. the liquidity is there, the corporate bond market shows us that, the high-yield spreads show us that. the fed is going to make sure those liquidities function around capital markets for quite some time. maria: let me ask you about the backdrop in terms of the economic growth story. what are you expecting? we saw under a million, 800,000 jobless claim ares this week. what's your take on where we are in this e ea -- recovery? >> the thing we keep telling clients is it isn't so much about where the covid news goes to dictate how the economy does, it's where the policy response ends up being. that's the hard to predict
element. we see cases dropping, we see hospitalizations really significantly dropping, and yet you have states like new york and california that have some of the best metrics, the lowest positivity rate and yet the most stringent restrictions. so the economy is hard to forecast. the elements that were most hurt by the so covid lockdowns, they continue to struggle, and i think a lot of that is policy driven. we need these cities to reopen, we need more people to participate in economic activity to feel that there is a continueed acceleration. maria: yeah. well, look at this census data we got this week where it basically shows income equality was actually narrowing before covid showed up. you had the lowest earners seeing their wages go up much more than the rush, and i think
the higher rages showed real growth and impact from the president's policies, tax cuts and deregulation. i think it's really worthwhile to mention that the census bureau reported the median household income in 2019 grew 6.8%. that is a big number. >> yes, you had a big move-up in the median household income, and we already know we had the lowest unemployment in african-american demographic and the hispanic unemployment was the lowest it had been. all of those metrics were exactly going in the right direction. the problem with the covid moment is the worst impact it's had has been in the bottom earners. they went after the service workers, after people that wear a uniform to work, and it's one of the reasons why i've been screaming for new york city to reopen and other places like that. those bottom wage other thankers are the -- earners are the ones
hurting. maria: don't go anywhere, the china story is here to stay, we're going to talk about china and the ban on tiktok and wechat with dr -- when we come back. stay with us. all otc pain relievers including voltaren have one thing in common none are proven stronger or more effective against pain than salonpas patch large there's surprising power in this patch salonpas dependable, powerful relief. hisamitsu.
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♪ maria: welcome back. the commerce department enacting new prohibitions on the chinese chinese-owned apps wechat and tiktok. they're asking google and others, app stores, to remove them. it also bans money transfers made in the united states through wechat. i spoke with commerce secretary wilbur ross, he broke the news on "mornings with maria" to tell us what's behind that ban. >> data on locality, data on what you're streaming toward what your preferences are, what you're referencing.
every bit of behavior that the american site is indulging in becomes available to whoever is watching on the other side. maria: joining me right now to talk about that is the atlas organization's jonathan ward with. thank you so much for being here. what's your take on all of this, jonathan? earlier in the week the chinese communist party says they want to own a minority stake in whatever ends up being the outcome. this is totally against what donald trump, the president, has been saying to us about tiktok. where do you think this is going? >> that's right, maria. i think it's not acceptable to have the communist party retain the hands in tiktok. if we have these concerns over data, which are very real, you can't have a hostile government building a sophisticated data file on young americans. they just issued a policy
directive from the central commission of the communist party towards all private enterprises, operators and investors in private interprizes saying they have to strengthen, you know, an adherence to party participate in national strategies and build a backbone of people that can be reliable and useful at key moments. it's absolutely explicit, what the party seeks to do. and, you know, we can't have them having a hand in the future of young americans. and now but a ginning is getting into the deal and i saying what they will and won't allow, so this is no longer between the united states,es the chinese government is involved in this. and we have to remember all the other aspects of this relationship that have been taking shape over the summer. there was a very important report released by the pentagon that showcases china's military power. they now have the world's largest standing ground force, the world's largest navy with 50
more ships than the united states, the largest coast guard, the indo-pacific's largest substrategic missile forces, and they're building a military that's designed for conflict with the u.s. they're already involved in conflict with india and japan. how do we start walking this back and decreasing their ability to rise as a hostile superpower? i think these actions on tic doc and wechat -- tiktok, these are all very important steps, and we still have a giant american tool kit that can be deployed against the economic, industrial and technological aspect of the people's republic of china. maria: yeah. >> the treasury has not yet been fully unleashed here. maria: well, and you've said in the past when we've spoken about this, that you believe this economic soft war, you know,
this fight, whatever you want to call it between the united states and china, is going to play out in the corporate boardroom, it's going to play out in companies. and it count seem like many s&p 500 large global companies that are american companies but have operations all over the world have gotten the memo, jonathan. they're not necessarily recognizing the national security risks that you cite, but instead focused on the growth potential and selling to 1.4 billion people. >> i think that's very dangers. and it's time for the american people to start calling corporations to the table here and understanding exactly how they're exposed to china, way overexposed. i think they're assessing supply chains, but they have much bigger problems, and it's got to become part of our national conversation. we have to fix this relationship with china in terms of we have to regain the initiative, recognize it's a hostile power, and i think everybody in government understands that, but the boardrooms and c suites and
such, they need to be part of this conversation in a constructive way, need to share ideas for how they're going to help us win. maria: they're about to take ant group public. this is going to be the largest ipo arguably ever. it's going to go public in hong kong, and they're using wall street banks. goldman sachs, morgan stanley, etc., they want them to raise money for this chinese company. there's been pushback in the united states, the president saying don't invest in chinese companies, they're tied to the military, same thing with the railroads executives which larry kudlow wrote a letter to, and yet there's a lot of big business in terms of raising money for chinese companies, many of whom may well be tied to the military, because the military is the priority in china. >> that's right the, we can't do that. we didn't have american bankers in the ussr managing wealth and economy. working on these issues, i mean, we didn't -- we were never financing or funding our
adversaries to this degree. and we have to get wall street to understand this picture. you know, that's going to be a big process, and i think we have to get treasury more into the game. treasury went through a renaissance in terms of how it works on national security. after september 11th, all these tools were deployed to cut down terrorist financing. i mean, if you apply some of this stuff to the chinese military industrial complex, congress has done a lot, but treasury has a lot it could do because the financial restrictions placed on china i could be enormously helpful to the united states. maria: we will keep watching this developing story. jonathan, thanks so much for your insights. jonathan ward joining us. when we come back, the owner bobby dan's steakhouse is here, he's going to walk us through the reality of the restaurant business right now.
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♪ ♪ maria: welcome back. saving new york's restaurants in focus this weekend. this week a group of eatery owne city guidelines for indoor dining scheduled to begin on september 30th. they are saying the 25% cap is too low for them to stay in business. joining me now is joseph smith, the owner of bobby van's steakhouses and organizer of the protests. it's great to have you. thank you so much for joining us. >> thank you, maria, for having me. maria: so governor cuomo says that restaurants can open at 25 capacity beginning september 30th. you say that's not good enough. tell us what you facing. >> we're facing, for the last six months, six months of rent, electricity, insurance and numerous other things that we've never been able to get a penny for. we were given some stimulus, that has been eaten up already.
the same governor allows upstate new york to have 50%, the same governor allows the hamptons to have 50%. why is new york city, manhattan, being victimized, and why are we not allowed to have 50%? i mean, we're dealing with adults, which is our customers. they're not children. they know to wear a mask, they know to wash their hands, they're given certain guidelines that we can live by. some of them are not going to work, but why can with we not have people standing at the bar? they say you can't have anybody -- maria: unbelievable. yeah. i mean, what do you think is behind this, joseph? i why can't you have anybody at the bar if they're wearing masks? >> oh, i -- the only thing i can think, it's political. i really don't think it's anything other than there's no other reason.
it's been proven that son on-site dining, they've been wearing masks, the servers, the customers, up until they get to eat and drink, and now all of a sudden he's going to say it's going to close down in -- the outside is going to close down in about four weeks. you have 25% inside, how are you going to pay your bills? your payroll? the unfortunate part about it -- maria: this is an incredible story, and you have personally lived the american dream. you've seen what it takes to work hard and gain success. you migrated from ireland to america 50 years ago with $50 in your pocket. within ten years you owned 12 successful restaurants, and you were doing $100 million in sales annually. joseph, you're a self-made entrepreneur, we love your story. unfortunately, are you seeing that american dream get trampled on right now because of
politicsesome -- politics? >> i'm seeing it dying because of politics. and i know about politics. i worked with the peace process going on. i know how it works in washington, and this is all about the democrats trying to give the president the black eye. the last people to go back to -- the less people that go back to work, the worse he looks. and we are being victims. we have to have a voice in city council. city council can't be making decisions for restaurants, and cuomo cannot be making decisions. he's not a businessman. he's never around a business. and the other one, we all know who, he hasn't got a clue in gracie mansion. there's 14 million restaurant people in this country. the second biggest employer. and what have we got? maria: you're right. unbelievable. and, joseph, do you think these politicians who want the president to look as bad as possible and the economy to be
as closed as possible on november 3rd, do you think they understand the impact to jobs of their constituents? you had 300 people working within your restaurants. you had to let 290 go? >> yes. actually, i had 400 people working, and 380 got furloughed. so we we need someone, we we need to have a voice on the council representing restaurants because there's another group that make decisions like putting 10% on a customer 's bill. i would never dream of that, because if you put that on a customer's ooh bill, they're going to take that off the waiter and bartender's tip. maria: we'll be watching the developing story, and you made a great case. we so appreciate your time, joseph. thank you. >> they'll thank you very much, maria. it's been a pleasure. maria: and to you.
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for "mornings with maria." set the tone with us every weekday on fox business. join us. that'll do it for us, thank you so much for joining me, i hope you have a great rest to have weekend. thanks so much, we'll see you again next time. ♪ gerry: hello and welcome to the "wall street journal at large." well, all of a sudden it seems that everyone who's ambitious in politics is learning how to speak spanish. joe biden visited florida this week for the first time since he became the democratic nominee. he was speaking at an event to mark hispanic heritage month, and all that was missing with us a mariachi band. ricky martin, the king of latin pop, and luis