Transcripts For FBC Mornings With Maria Bartiromo 20240714

And louisiana congressman whip Steve Scalise on the new immigration rules coming out of the white house and Energy Secretary rick perry. The president promoting turning natural gas into plastics, you dont want to miss any of those fine gentlemen. Lets take a look at the market, futures pointing to low e open this morning, 86point loss on dow futures, losses across the board after bruising week last week and bruising start of the week with dow shedding 390 points, Goldman Sachs issuing warning on trade, does not believe u. S. And china will reach deal before 2020 election, treasury yields tumbling in yesterdays selloff amid global worries, trade fears, you take a look, 1. 3 , i said this yesterday, 1. 3 is the record low on 10year treasury, we are not far away, jon, your reaction with what really started last month in terms of a trade war and now currency war . Jon worried that we could be heading toward a recession, i was looking for confidence calls yesterday and youre starting to see ceos facing this question from analysts, how do you position if youre going into a recession, they are not saying we are but analysts want to know, wall street wants to know can companies handle down hurn and downturn, its going to be business driven, businessinvestment driven and we saw big slowdown in Second Quarter and the worry that all uncertainty over trade is leading executives to say, you know what, im going to hold off on putting the new plan or investing in new bit of software. Dagen is there anything, we will get to budget deficit in a second and widening and the spending bill, anything that people in washington be it politicians or Federal Reserve can do at this point other than just trying to put together a trade deal . Well, i think thats what needs to happen is just remove uncertainty. Leave some path forward and we know what things will look like in the next few months, next few years, its really Business Investment that you have to be watching right now and with more certain landscape they can be making plans for investment with more comfort. Dagen jessica, you have election in little more than a year and i dont know how like you get certainty in that time frame because, again, the uncertainty also introduces who will be running the country in january 2021. Goldman sachs releasing their view that we wont get a trade deal,back of america revised their prediction 1 and 3 chance going into a recession. If hes running into an election with economic good news, obviously thats win in his back, even if he doesnt have a trade deal he kind of won the economic battle or his ideas have worked out for americans, if youre going into an election with a recession, that seems near impossible especially when you have low favorability numbers and all of the other issues running towards President Trump. Dagen on the flip side and ive said this repeatedly, that the democrats have to be careful, though, and not to make it political that they dont look like they are rooting for a bill mahr. Hes comedian and in outrage business as we are all in the business. I do not feel this way, i watch probably too much coverage but the democrats are not trying to talk down the economy and thats how they are going about this, bill mahr is outreach comedian but other people are saying that too. Jon is right about business driving driving the downturn potentially leading to recession but politically the trade deal and whats going on in the country, we have seen a lot of coverage out of iowa, a lot of interviews with farmers and hurt by trade and usmca is sitting there. Democrats are now picking through it and making modifications to it, that needs to get done, i think, democrats are hesitant to give trump any sort of win, that eventually can hurt President Trump. Jon they know theres an election and squeezed if the economy is hurt, so, you know, their idea is that they can slowwalk this thing, theyre playing a very long game against the United States, the twist here is that the president has support on challenging china politically on both sides of the aisle that the chinese havent been playing fair in Global Business environment for decades, so we have support on that but it could be hurting his most important card in this game which is the economy. Politicians right and left were basically lying to the American People in terms of jobs getting shipped overseas, production getting shipped overseas and the American People lost their jobs, middleclass jobs and traded. Ive said, traded safety and security and a safety net and their middleclass jobs for an hourly job, say a cosco and cheap garbage rate in china in their backyard, speaking of next round of tariff, they will impact Womens Clothing more than men according to wall street journal, jon, because the value of girls clothe asking double of that of men, your reaction to this because 10 on 300 billion in goods is not that much but, again, we are starting to see because of this fight all of these knockon effects, again, uncertainty fomenting pull back in Business Investment. Jon i dont know how tom feels women being better dressed than men, the value of my clothing, i can see cheaper. The important thing is the next rounds of tariffs will hit consumers generally, its distributed in a different way, depending on what youre buying, the Trumps Administration first couple of rounds of tariffs were aimed more on the business side and now hit consumers going into holiday season, the second half of the year, thats going to be another challenge for the economy. I was hearing on the panels Consumer Confidence is up, right, thats been a line straight like this when President Trump came and started under the obama years, but if that start go away and being felt as consumers, its easy as we sit in manhattan to say its happening to iowa farmers, i dont know if its in the conscious of everyone else, but if it is youre bottom line, youre going to amazon to order clothes and it cost a lot more and you can have less especially going to holidays thats something people remember when they go into an election. Jon i think its important that we avoid sounding too down on the economy. Theres a couple of really important points to make, one is Unemployment Rate is under 4 , if you want a job out there, you can get one, thats good for for the vast majority of americans, the other thing is while the costs could be rising, it is the case of inflation is very low, so we are not seeing the cost of dresses and shoes skyrocket despite tariffs are coming on, theres a lot of forces that are holding down prices, i dont want to sound like its all dark. Dagen i want to move on to the budget because i brought it up earlier, the Treasury Department reporting the u. S. Budget gap up 27 exceeding last years total, this well, i want to get toms reaction on this because, again, fiscal responsibility used to be kind one of the hallmarks of the Republican Party but under this administration its been spending right and left and center. Another example of where trump has completely moved the party just in the few short years on the scene, right, it was all about the fiscal hawks in congress, we are not hearing that, trump is not a pennypinscher and we are seeing the results of that, however, i will say politically, you know, this might be damaging for republicans but given where the democrats are and what they are running on and what theyre proposing trump looks like a pennypinscher when in general election setting, you want to spend trillions an trillions of dollars on all free programs, politically its not that big of a i dont think its a big deal for trump but demonstrates how far the dial has been moved here just in the past few years because republicans were fiscal responsibility, deficit, tea party in 2010 and not anymore. Dagen from a practical perspective the budget deal and spending deal does give the economy balance, does it not, if you do get a downturn in terms of spending because of the budgets deficits that we are running, but it does, because youre getting additional you know, one of the drivers of growth in the last couple the last year or two years has been federal spending, military spending as part of there, so it was inevitable that they were going to turn around and spend more money in election year, they want to be pumping money into this economy, you know, i think the fact that neither side cares about about budgets right now, its not just a political issue, its a wall street shooshes while the nobody cares on wall street either. Dagen no, not yet. [laughter] some day, maybe not. We can talk about the potentially negative yield in the United States and what that means because has turned the Banking System on its head and the world, we will dig into that, speaking moving onto hong kong demonstrations, forcing the airport to halt departures for the second day, we have the latest there, plus amazon and ice, whole foods demanding company cut ties with immigration and Custom Enforcement agency, the message straight ahead. Hmm. Exactly. Liberty mutual customizes your car insurance, so you only pay for what you need. Nice. But, uh. Whats up with your. Partner . Not again. Limu thats your reflection. Only pay for what you need. Liberty, liberty, liberty, liberty can the past help you write the future . Can you feel calm in the eye of a storm . Can you do more with less . Can you raise the bar while reducing your footprint . For our 100 years weve been answering the questions of today to meet the energy needs of tomorrow. Southern company dagen a Police Officer shot and killed in california, Cheryl Casone has the details, hey, cheryl. Cheryl yeah, dagen, happened last night in riverside near the 215 freeway, 34yearold andre moy killed and two other officers wounded, shots after traffic stop, police shot suspect who died at hospital, officer moore, two wounded officers listed in Critical Condition this morning. Massive manhunt manhunt for person who shot Police Captain in connecticut, captain anthony was off duty at the time, the suspected gunman shot another man and turned on officer, police are urging people to stay inside while they search for the shooter, captain injuries are not considered life threatening. Well, New York Stock Exchange, glitch delayed release of end of day prices for dow industrials and s p 500, problem fixed late last night, series of technical problems in the last few years, finally t, mblr changing hands, automatic for undisclosed amount, take on the roughly 200 staffers, verizon took over company, of course, if theres the year to date prices, you can see on verizon, t, mblr is great if you want to vlog about cats, cheese, mac and cheese. Dagen we dont have any real friends anymore, have to go online [laughter] dagen im just joking. I should hold back on the jokes at 6 16 in the morning because i will get myself into trouble, right, jon, just joking . Coming on eye on markets, yields could be in lowest level of all time, why its impacting markets and why Small Business optimism is up, starbucks rolling out Pumpkin Spice lattes earlier than ever when you can score one, straight ahead. vo the hamsters, run hopelessly in their cage. 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Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. Dagen welcome back, checking market this is morning, we have 70point loss on the dow futures coming off a rough start to the week yesterday, losses, steep ones in stocks, we are waiting on cpi numbers, Consumer Price index for july and taking a look at Small Business, the optimism index making small gains in july, Small Business owners are feeling better despite the talk of an economic slowdown, their main concern finding qualified workers joining us now investment chief u. S. Economist, good to see you this morning, talk about what this optimism index means for the broader economy and also maybe the markets, fixed income and the stock market. Yeah, im really happy, first of all, to see the number today because when we look at the larger Business Sentiment indices, we have actually seen deterioration lately, really since the beginning of the year and so we needed to really just get this reality check that its not all doom and gloom, good news, Small Businesses still seeing solid demands when it comes to our economy, i think what we need to think about when we are looking at investors is the economy was so strong last year, we know that its falling down and so for Interest Rates, that means we are continuing to move lower, we have been on the forefront for calling for lower Interest Rates, youre really going to all those retirees out there looking for income, its a real collage for them to find that. Talk to us about the recession outlook, we were talking about this at the open, a lot of economists are saying that they are not forecasting recession but they are saying the possibility of one has gone up, whats your forecast . I think thats exactly right, you know, first of all, we think about recessions, theres no real reason why in and of itself we would need to have a recessions, shock or some adverse Financial Market events that causes us to have that, so when we look out the horizon right now Financial System doesnt have the bubbles that its had in the past proceeded recessions, you know, you look at some sort of nonu. S. Coming like default, all of the issues, i think, are very hard to predict but right now the underlying economy and the consumer remain strong its hard to forecast where we are coming from low growth, thats the thing that i worry about when we go into next year, period of stagnant disappointing growth. Back to Small Business for a second, we were talking about trade and impact trade is having, how are Small Businesses feeling about trade and how is that impacting them . Its impacting all of us, the bigger companies, these large multinationals with International Production chains and International Revenue chains are much more impacted by not only the tariffs but just uncertainty. Hard to think about investing when you dont even though what countries are going to have trade agreements with one to 3 years out. Quick followup, dagen, in your introduction you mentioned that not having enough qualified employees, tell us what they are locking for and where we are falling short . Yeah, we continue to have the skills mix matched throughout the country, a lot of people say to me what would make the economy better and i think its more flexibility when it comes to labor. If youre looking for a job and not finding locally, consider moving someone else. When we look at where we are seeing growth right now, its happily, i think a lot of Small Business and the labor market continues and productivity gains, whats the outlook for stocks, can we expect to see a rally going into the next of the year. We had volatility heightened, thats not going any time soon. Now we are talking about currencies and i think the Economic Data in the second half of the year will be weaker than the first half of the year, you will get challenge on the earning front. Jon where should you put your money . Im still thinking of higher yield, we need to look back towards income product that is give us more outside gains than just dig deeper into the higher yielding areas because when we have the economy thats still relatively strong, corporate defaults are low, you know, the economy is still worth investing in. You have to get capital structure. Dagen i try to explain when we talk about currencies and why thats worth to investors, when you have a foreign currency falling dramatically or depreciating the nation that is have borrowed in foreign currency, say the dollar, you will have difficulty repaying those debts if your own currency is depreciating, right, jon, you have seen play out in stocks and then you have negative fields in 15 trillion worth of debt around the globe that has negative view on it, that also turns to Banking System up on its head, if you will, and i dont think that in modern times have we ever seen anything like this and investors dont really know how to handle it or play it. Negative fields are certainly a new phenomena that i havent seen in 30 years. But in terms of currencies, one to have worries today is youre seeing currencies in countries like argentina and new pockets of trouble for u. S. Economy and u. S. Investors, u. S. Dollar gets stronger and makes more expensive to export to other countries, not just hurt bank stocks but could hurt the real economy here, though, i will say if we are going into a slowdown or downturn or whatever you want to call it, i dont think its going to look like in 07, 08 when they collapsed. The contours will be different. Shallow slowdown where growth modestly dips. Something important to remember, our last recession was so devastating combined with financial crisis, it goes about saying the recessions are not good but people hear a recession and then literally panic and prior recessions where 2 to 4 quarters and were not as severe, one quarter of negative growth, and it would not be the same catastrophic system wide paralysis that weve had. Dagen longest expansion on record, people are looking for the bad and not looking not paying to the attention good. Jon thats what analysts are asking in conference calls, how would you weather a downturn, whats your backup plan, so to speak. Dagen thank you, breaking news out of hong kong checking flight services, now suspended for second day, delivering ipo, reportedly to detail offering next month, the latest coming up. Fun fact 1 in 4 of us millennials have debt we might die with. And most of that debt is actually from credit cards. Its just not right. But with sofi, you can get your credit cards right by consolidating your Credit Card Debt into one monthly payment. You can get your Interest Rate right by locking in a fixed low rate today. And you can get your money right. With sofi. Check your rate in 2 minutes or less. Get a nofee personal loan up to 100k. Mothat a handle is just a is jushandle. Ir. Or that you cant be both inside and outside. Most people havent driven a lincoln. Discover the lincoln approach to craftsmanship at the lincoln summer invitation. Right now, get 0 apr on all 2019 lincoln vehicles plus no payments for up to 90 days. Only at your lincoln dealer. Or trips to mars. 4. 95. Delivery drones or the latest phones. 4. 95. No matter what you trade, at fidelity its just 4. 95 per online u. S. Equity trade. Dagen welcome back im Dagen Mcdowell in for maria bartiromo, it is tuesday august 13th, top stories at 6 30 a. M. Eastern. Breaking news out of hong kong, the airport there reportedly closed for a second day, tensions rising as more activists fill the terminal, futures are pointing toward a lower open as trade worries and falling bond yields weigh on investors, we have a 58point loss on dow futures, this follows yesterdays selloff led by financial stocks, material, energy, taking on the Global Action markets are down in europe and england, france and germany, losses across the board there, same story in asia overnight. The following the selloff on wall street, protests in hong kong hitting hang seng down more than 2 . Post mates getting ready to go public, the steps the on demand Delivery Service is take and when you might be able to order up some shares, plus, autumn coming early, starbucks pumpkin latte hitting stores later this month just in time for like the latesummer 90degree temperatures and dunkin is trying to beat starbucks to the punch. Breaking news out of hong kong, all flights are canceled for second day in a row as demonstrators demonstrate days long sitin, many alleging Police Brutality over the weekend, joining me fox news senior strategic analyst chairman for study of war and retired fourstar general jack keane, general, always a pleasure to see you, what do you make of these ongoing protests in hong kong and how that plays out in china and our relationship and trade negotiations with china because its all connected . Well, first of all, i mean, the people of hong kong really have drawn a line here, they believe that their personal freedoms and liberties are what the issue is here, theres been a gradual erosion for 10 years and when they when china came up with the the extradition law, they drew the line and china was busting their judicial system which was based on democracy and something we are similar with, thats whats the issue here and what they are trying to do is get the worlds attention certainly to put pressure on china, china issue is simply this, while the protests are going on in hong kong and may have some impact economically in hong kong, is that spreading to Mainland China and china to this day is still controlling the narrative quite a bit, the initial protest when there was no violence involved whatsoever were not exposed to the mainland chinese, since there has been some violence, thats what the focus has been on in terms of National Television in china and what they are trying to make certain of is that theres no empathy developed among the mainland chinese for whats taking place in hong kong, a million mainland chinese travel to hong kong every month, so the fact that theyre not able to get in there or maybe some of them cant get out of there is likely aggravating them as opposed to having sympathy for the protestors, so i dont see Mainland China taking any action until such time as they believe this is jeopardizing their control and hold over the mainland Chinese People which is really their major issue. Dagen general, how do you think it impacts our negotiations with china, any pressure thats on president xi jinping . Well, i think there is some pressure on them but i think its unfortunate that the president and his team hasnt spoken very loudly and similar sympathy and you look at the difference china and United States is, fundamentally at its core are clash of values between the countries, very similar with what we had with soviet union during cold war and front line for them right now is right in hong kong, i think we should be standing up for for the protestors who are fighting for their liberty and for their freedom and for due process in their judicial system and we havent truly done that, so i think that would actually put more pressure on president xi and add to the leverage that the United States wants to have over china as opposed to possibly back get away from those at the same statements because we think it would complicates negotiations. Ii want to turn to russia, general, President Trump trump confirming Nuclear Cruise missile exploded during testing in russia last week riding on twitter this, the United States is learning much from the failed missile explosion in russia, we have similar, though, more advanced technology, the russian skyfall explosion has people worried about the air around the facility and far beyond, not good. The explosion believed to have killed at least 7 people, the wall street journal has an editorial about it today writing the reality is that russia under Vladimir Putin is breaking out of arms control restraints to develop new weapons and the means to deliver them, he cant be trust today follow new treaties as his violation show, the salient question is whether the u. S. Will also develop weapons and defenses to prevent mr. Putin from gaining a military advantage, what is your reaction to this, what do you make of it . Well, first of all, the russians do have capability of developing advanced technology, they always have, particularly anything that concerns rockets and missiles, i believe whats happened here, the russian Safety Standards are far below the International Best in class standards of particularly the United States and theyve had repeated incidents dealing with issues like this, what they are developing is a Cruise Missile which i think ive used or seen many times fired from submarines and surface ships and also from airplanes and you can fire them obviously from ground stations as well, but this missile as opposed to having a normal field propelent would have Nuclear Reactor and unlimited range and large swaths of the globe and deliver missile at unexpected location and make it very difficult to ever track it and therefore intercept it, so thats the goal, the problem is they had problems last year with a missile test failure, now weve had problems with the fuel system, the United States, scientists and engineers looked at this a number of years, dagen, and abandoned it after trial and experimentation themselves thinking that the technology is not achievable, remains to be seen whether they will do it the larger issue is what they are talk about, russia seems to be pulling away from any sort of arms control and wants to build advanced technology to take advantage of the United States capabilities and clearly the United States has got to match them because what we are after is we want to avoid conflict and after 40 plus years of the cold war, the thing that has instructed us, the best way to avoid the conflict is to have capable deterrence, in other words, impose costs on russia if they ever intend today pull a trigger against the United States and make that cost unacceptable to them. Dagen well, then are you in terms of increasing defense spending that thats part of it, is it not, general . Yeah, i think the putin pays attention to more than anything else, our rhetoric, other actions that were taken is the Defense Budget, in rearview mirror, Reagan Defense bill in 1980s, serving in the soviet union in kgb and he saw how the Defense Budget influenced the soviet union, the u. S. Defense budget, certain enabler and the fact that trump team has got Defense Budget buildup is the right thing to take because after 19 years of 9 11 wars and budget decline we have got to catch up because theres erosion of military capabilities, we are doing absolutely the right thing by pouring money into defense. Dagen general, great to see you, thank you so much for the insight nice talking to you, dagen. Dagen always a pleasure and informative, general jack keane, thank you. Whole foods workers asking amazon to cut ties with ice, Cheryl Casone has details, hey, cheryl. Cheryl group of anonymous whole foods workers sent letter to Company Amazon calling on it to stop giving business with the controversial government contractor, the Data Analytics company that helps track immigrants, much of the criticism of Cloud Computing supporting, latest push from amazon workers. Well, mark your calendar, postmate to release ipo next month, the on demand food delivery to go public in Third Quarter, post mate was recently valued at 1. 85 billion, then theres this, get ready, whether you want to or not for Pumpkin Spicey really, really early, hits stores august 26th, the earliest its ever been made available, but if thats not soon enough for you, dunkin announcing fall menu august 21st, coffee, doughnuts and muffins, sugar, caramel drizzle, cinnamon. Dagen maybe im telling folks something they already know, you know who is a big fan of Pumpkin Spice latte cavuto. I dont know if if he moved to another delicious drink. I love them just not in august. Dagen no, thank you, cheryl, thanks. Coming up beto orourke on texas minds, why one local newspapers says he should drop out of president ial race, plus crazy crash, a cargo crashing into an la fitness and ends up right in the pool. [ soft piano music playing ] mm, uh, what do you do for fun . Not this. Oh, what am i into . Mostly progressives name your price tool. Helps people find Coverage Options based on their budget. Flo has it, i want it, its a whole thing, and shes right there. Yeah, shes my ride. This dates lame. He has pics of you on his phone. Theyre very tasteful. Dagen headlines across america this morning, the Times Free Press report this is, Tennessee Republican senators argue over near total abortion ban proposal. Sharp divide among abortion rights opponents over proposed near total abortion ban that would be one of the nations strictest, follows the controversial fetal heart bill, legislation passed republican controlled house but sputtered in gop dominated senate. Car crashes into window in north seattle gym lands in swimming pool, no one was injured, the car making quite a splash yesterday. When police say the 70yearold driver apparently tried to set his parking brake but hit the gas instead, 3 people were in the pool at the time, one swam over the get the driver out and the Houston Chronical writes this, beto, come home texas needs you, editorial urging beto orourke to shift gears, drop his bid for the white house, for democratic nomination and come home to run for senate, paper reminding that run against ted cruz was inspiring, he showed what was possible, jessica and tom, jessica, you first, what is your reaction to this . Beto, go home but youre still not going to win. [laughter] you agree . Not even senate. John cornyn is more popular than ted cruz, do i think people who are running for nomination not gaining traction need to look at senate races, poll out of colorado showing up John Hickenlooper up 51 if he ran for senate, that might be near in montana, huge fan, we could have complete dem tag team there if he would team with john tester. A number of stories talking about texas and how competitive it is. Thats right, thats because what beto was able to do last time around in surge of democratic voters. President ial years obviously a different thing and john cornyni agree is no ted cruz. Jon is texas at play in 2020 president ial election . I think most people think that it is in play, its going to be uphill battle for them but not out of reach. Because of the suburbs. Texas is now a lot of suburbs, more suburban than rural almost. Dagen will h, hurd not running, huge loss. Comfort food. They answered 410 questions in 8 categories about vehicle quality. And when they were done, chevy earned more j. D. Power quality awards across cars, trucks and suvs than any other brand over the last four years. So on behalf of chevrolet, i want to say thank you, real people. Youre welcome. Were gonna need a bigger room. Brad, ive got an idea for a song. Nationwide has this app. You can pay your bills, even start an auto claim. So what i was thinking. Let me guess. Start a claim right from your app. Have you been looking in my notes . To the wait did frowe just winners. Prouders everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. Now you can share it between lines. Mix with unlimited, and switch it up at anytime so you only pay for what you need. Its a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you preorder a new samsung note. Click, call or visit a store today. Dagen welcome back, unique and millennialgeared spin, the company usinghigh Quality Ingredients from instant soup cups to broth, gravy. Joining us founder and ceo robert, robert, tell us, where was was there a niche that you were trying to fill, something missing in the soup aisle, what is it . So when we launched the brand 2 years ago we saw opportunity to innovate the very stale categories and big brands dominated for decades, so we inspire today launch bou, we started with bou, young brand names, and moved into other products like soup cups, gravy cubes and miso cubes but inspiration to bring alternative to category. Dagen Food Industry is tough to get to, what about raising money, did you have trouble raising money at all . We didnt have trouble raising money fortunately because we have been in industry before. I had a food business in the uk and a lot of people that are want to go invest in food and beverage industry. So weve done 3 rounds of funding so far and weve been fortunate to bring on great investors. Dagen youve made great inroads, youre in whole foods. Kroger, we are about 85,000 locations and about to launch in walmart next week. Dagen congratulations. I think people need to eat, people are far more Health Conscious than they were 10, 15 years ago and we are playing in that space in category, and just, i think, just in general its a great jon whats it like breaking into the u. S. Market with the product and how does that compare to breaking into the market on earlier product that is you say you were involved in . I think for us we were focused on bringing Something Different to the category and really innovating, so we were able to break into the market very quickly, people loved what we were doing, they loved our innovation, its not easy for everyone to break into the market, you need to be adding Something Different, so i wouldnt advise launching another water brand, for example, its a very competitive space. Dagen how did you identify this opportunity, how did you know, i know that you as you said, started, had a food business in the uk, how did you identify how did this come, get in front of you . Great question. So i had a longstanding relationship from our manufacturer in the uk from our last business and when we moved to the United States 4 years ago i went to see them, soupbase manufacturer in new jersey and we started talking about the soups category and we realized that there was an opportunity to really innovate and bou came about. I was struggling to open your ginger messo broth cubes because i wanted to yes. [laughter] i will translate for southern for you. [laughter] have you found that your main consume certify millennial or where are you guys selling the most . Sure, so we are trying to bring that young millennial brack into the category because typically most people dont know what a bou cube is, a lot of people dont cook anymore, they are young but we appeal to everyone whether its kind of busy moms on the go, young millennials, grandmothers who cooked with cubes forever, we kind of appeal to everyone. Dagen walmart next up, robert, thank you so much, robert, bou, love the name because it has applications. My dogs name is bo, focus on tariffs, coming up wall street journal article says Womens Clothing will get hit harder, we will take a look. father kids. Change of plans vo defy the laws of human nature. At the summer of audi sales event get exceptional offers now fun fact 1 in 4 of us millennials have debt we might die with. And most of that debt is actually from credit cards. Its just not right. But with sofi, you can get your credit cards right by consolidating your Credit Card Debt into one monthly payment. You can get your Interest Rate right by locking in a fixed low rate today. And you can get your money right. With sofi. Check your rate in 2 minutes or less. Get a nofee personal loan up to 100k. Dear tech, lets talk. We have a pretty good relationship. Youve done a lot of good for the world. Potential to do so much more. Can we build ai without bias . How do we bake security into everything we do . We need tech that helps people understand each other. That understands my business. Weve got some work to do. And we need your help. We need your support. Lets expect more from technology. Lets put smart to work. 2,000 fence posts. 900 acres. 48 bales. All before lunch, which we caught last saturday. We earn our scars. We wear our work ethic. We work until the works done. And when it is, a few hours of shuteye to rest up for tomorrow, the day well finally get something done. dagen good morning. Im Dagen Mcdowell, in for maria bartiromo. Its tuesday, august 13th. Your top stories at 7 00 a. M. Eastern. China trade, more turmoil in the markets. New warnings on the Economic Impact the dispute and now a new report says the next round of tariffs will impact Womens Clothing more than that of men. Investors eyeing trade. Futures point to a lower open. A 20 point loss on the dow futures at the moment. Thats off the lows of the morning so far. This following yesterdays selloff led by financials. The bank stocks very hardhit in the last week, materials and Energy Stocks lower yesterday as well. Nearly 390 point loss on the blue chips yesterday. We have losses across the board in europe as well. Lower in england, france and germany and it was the same story in asia overnight. The four major asian markets following the selloff on wall street on monday. The hang seng in hong kong the hardest hit as protests continue to cause major disruptions there. A loss of more than 2 on the hang seng. Border crisis, the white house issuing new rules that would deny green cards to immigrants who use certain types of public aid. We discuss. Get into the details. The nfl making a play for gambling. Find out what the league is doing to get in on the big business of Sports Betting. Plus, unlimited pasta for life. Olive garden adding a new pasta pass this year. Find out what it will cost you and if youre lucky enough to score one. Here to break it down with me this morning, real clear politics cofounder and president , tom bevin. Democratic centrademocrat strata tarloff and john hilsenrath. Jessica, thank you for when im having a brain cramp im here for you, my love. Dagen thank you for eloquently finishing my sentence or asking a question for me. I appreciate that. It was worth waking up at 4 00 a. M. To be here with you. Dagen john, whats on your mind this morning in terms of markets . Whats the one thing people need to know at 7 00 in the morning . Well, we talked about this in the first hour. I think its the idea that economists and the markets are telling us the risk of a recession is rising. Were not saying theres going to be a recession but theres a risk out there. I think thats why bond yields are well below 2 . Dagen and the fed will likely cut again in september. Simply because the markets are telling the Federal Reserve it knees to do that. It looks like they will. The r other thing we need to watch out for is cpi numbers, Consumer Price numbers come out at 8 30. If those numbers show inflation is picking up, it creates a little bit of a produc problem e fed to cut Interest Rates. Dagen thank you for that. Ahead, red lobsters ceo is here to talk about the state of the Restaurant Industry. A louisiana congressman, Steve Scalise will talk new immigration rules. Northern gray cofounder Mark Mcmillan on made in america products and where you can find them. Harley finklestein is here to talk about retail. And rick perry on the president promoting turning natural gas into plastics, you dont want to miss any of these guests coming up. To our top story this hour, beijing fighting back. President xijinping refusing to back down on the ongoing trade feud, ramping up counter attacks against the u. S. China weakening the value of the yuan. A truce farther out of reach and President Trump suggests the next round of talks might be called off. Here now former white house trade official and incoming partner at aiken gump, cleat williams. What do you think of the possibility that a deal with china gets done and wha is it contingent on, what do we need to watch in terms of developments between now and september 1st. Thank you. I think that obviously were in a little bit of a down period right now. But i do think Everyone Needs to be careful not to overreact to this. There have been lots of ups and lots of downs. So im certainly less optimistic than i had been but i dont think were in a situation where things have really changed that much over the last couple weeks and months. The president has been clear that he was going to escalate things if things werent going in a positive direction. I think he called into your show, talking about 10 tariffs a while ago. China always reacted when the United States has done this. Things havent changed fundamentally. What ive seen in the last couple weeks has been interesting. The president did mention talks may or may not happen. But those still havent canceled. Thats a glimmer of hope. You have the fact that on friday after the president talked about huawei, the white house was quick to clarify, he was only talking about the government contracts. He wasnt necessarily talking about the licensing. China, who reacted to the tariff, but didnt react to the currency manipulation decision and the broader issues of the economics and i think if you look at the economy, its still in both sides interest to try to fix this. One of the most interesting things to me on currency is theres a lot of talk, is china, is china not a manipulator. The bottom line is, as soon as they stopped intervening in their markets, their currency dropped very quickly and what that shows you is they have a soft economy and because they have a soft economy, its still in their interest to do a deal. Again, i think that theres reasons to be pessimistic but theres still glimmers of hope out there. I dont think this is a done deal one way or another. This is tom be vin. We were talking about how chinas playing sort of a long game but President Trump obviously facing reelection in just over a year, china has been a signature issue of his. He has seemed to be no backing down. How do you see this playing out with whats going on with the election coming up and how much wiggle room President Trump has in terms of getting this under control, because of the impact it has on reelection. It was in the midwest yesterday, talked to a lot of farmers. Most of them are sticking with the president and theyre saying you know what, its about time someone took on china and took on some of these unfair trade practices and it was surprising to me. I was speccing more blowback than i got. The truth is, this last round of tariffs is going to start to hit consumers. And i was also talking to some folks in the Retail Industry and they said for the most part a lot of the tariffs on the initial products were things they could get from other markets but that this last set was really stuff that they could only get from china and that they werent going to have much choice but to pass on that cost. So its not clear how consumers are really going to react. Im curious. I still think its in the president s best interest to if he can get the right deal, to do that before the election, to show we can get some of these problems fixed, maybe not everything. I think thats a better place for him than to go into the election with 500 billion of tariffs in place, especially on consumer goods. This is difficult. Its clearly popular to be tough on. Dagen i want to add to the point of consumers feeling these tariffs that men and women will feel different pinches from the new round of tariffs according to the wall street journal. All apparel imported from china will face a 10 tariff. The value of Womens Clothing imported from china is more than double that of mens. More expensive clothing for women will start september 1s september 1st. I know you had a question, john. Thats your newspapers reporting, so and women make a lot of the Financial Decisions in the home, so its interesting how that could impact peoples buying and Decision Making and confidence. I think as we look at these tariffs coming on, were going to find different effects across a range of different industries. We have a lot of companies, including apple, we reported, fox reported a few weeks ago applying for exemptions from the tariffs. So its going to be a very rocky and uneven landscape. What i wanted to ask cleat, speaking of rocky and uneven, is the president it seems to be a winning political issue for him to go after china. I think everybody agrees the chinese havent been playing fair and on an even playing ground for many years. The president has said germanys an even bigger offender than the chinese. Hes gone after canada. Hes gone after mexico. Do you think how do you think the president kind of seizes trade policy playing out sees this trade policy playing out . Does he want to extend the battles beyond china or is he seeing the best bet is to focus on china and leave everybody else out of this. I hope thats what hes starting to see. Thats a conversation we had when we were in the white house. My advice is, you need to focus on china. You need to try to put the problems with the other behind you and focus on sort of what is the most problematic threat to the u. S. Economy. And so i think one thing we really need to watch is what is the progress we get on usmca. Obviously, if were able to get that deal across the finish line, that strengthens our hand with the allies. What is the progress we get on japan . Can we move things forward with the u. K. . Can we dial things down with the eu . I think you might see the white house shift its focus to those issues. So when you gave him that advice, i think the really important question is how did he respond . Did he agree with you or did he think you were off base on that . Well, hes concerned about unfair trade practices all over the world of. But i think if you look at the order of magnitude of whats going on with china, it is of a greater magnitude than anywhere else. I think you heard him say the eu and others are as bad as china but chinas a lot bigger. I think thats a recognition right there that its a bigger problem for our economy. Dagen i think that you have to Pay Attention to the actions and the policy versus the rhetoric. I would agree with that. Dagen thats the most important thing, of where are we actually taking steps and i think that the federal ban on buying from huawei starts today, does it not . Thats correct. Dagen yeah. Cleat, thanks so much. Cleat williams. Great to see you, as always. Thank you. Dagen coming up, immigration crackdown, it could get a lot more difficult to get a green card in the United States. We have the details, straight ahead. Plus, pasta lovers grab your fork and run. Olive garden offering a limited pass takelimbpasta for life dea. When you can get one, after the break. All right brad, once again i have revolutionized the songwriting process. Oh, here we go. I know i cant play an instrument, but this. This is my forte. Obviously, for auto insurance, weve got the wheel route. Obviously. Retirement, were going with a longterm play. Makes sense. Pet insurance, wait, let me guess. Flea flicker. Yes howd you know . Studying my playbook . Yeah, actually. Dagen a friend of the dayton shooter set to face federal firearm charges in court tomorrow. Cheryl casone has the details. Cheryl the 24yearold is accused of helping the accused gunman conor bets by body armor and a 100 round magazine used in the deadly attack. Federal prosecutors dont believe collie was involved in planning the mass shooting. He was arrested for allegedly lying on a federal firearms form he used to buy a pistol. Well, the nfl is officially getting into the betting business. The league signed an exclusive deal with sport radar to distribute official league day takdataused for bets. The nfl a has taken a slow approach to Sports Betting since the u. S. Supreme court voted in favor of legalizing sports gambling last year. Other sports have been jumping on the bandwagon. Finally, if you love pasta, who doesnt, how about macaroni for life . Olive garden is offering for just 400 a lifetime pasta pass. Thats unlimited pasta but only 50 are going up for grabs and they go on sale august 15th at exactly 2 00 p. M. Eastern time. If you dont get that deal, then for 100, olive garden customers can buy the unlimited pasta pass, that is good for nine weeks. Because who doesnt love pasta, dagen . But really its about the bread sticks if you go to olive garden. Dagen classic, never gets old, classical to action marketing, like a limited supply, get them while supplies last and it creates a frenzy. Cheryl its perfect. Dagen like im in a frenzy over pasta. Exactly. Thank you, cheryl. Coming up, the Restaurant Industry, more on that, also in faufocus at red lobster. The ceo is here to discuss consumer tastes, trends and his take on the minimum wage. Plus, nike stepping into the subscription market for the first time, geared towards kids, details on that new Service Straight ahead. It wasnt a rock. Was a rock lobster. Rock lobster. Fun fact 1 in 4 of us millennials have debt we might die with. And most of that debt is actually from credit cards. Its just not right. But with sofi, you can get your credit cards right by consolidating your Credit Card Debt into one monthly payment. You can get your Interest Rate right by locking in a fixed low rate today. 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Dagen the Restaurant Industry specifically seafood, Consumer Trends change and delivery apps are gaining popularity and chains must adapt and grow to survive. Our next guest knows that firsthand. Joining me right now, kim lopdrup, red lobsters he ceo. Hows business . Im pleased to say we just finished our latest financial year, same restaurant sales were up, ebtida was up strongly. Were celebrating our fifth anniversary as an independent company. Weve been following a strategy to lead us to grow and we are opening new restaurants again. Its a great time for red lobster. Dagen where specifically are you opening the restaurants . That gives us a sense of the economic hot spots. Sure. Last month we just opened our first restaurant in beijing, china. Next month we are opening in deer park, new york. In september, north las vegas. In october, staten island, new york. And more deals underway. Dagen john, youve got a question . First, i want to say, im kind of disappointed we didnt all get lobster here for breakfast. Sorry. Next time. I wanted to ask you, how are you competing in an environment where there are so many newen tractentrants into the fast casl restaurant business. When you go in a mall or anywhere else, theres a lot of you new chains out there and how does an established brand like red lobster compete against that . We are really differentiated. Were the only brand designed to delight seafood lovers. Our menu is based around that. Were one of the most unique brands in the industry. But that said, we have to change with the times and keep up with changing consumer needs. The need for convenience is growing dramatically. For example, last year our offpremise business grew 55 and actually has been accelerating month by month. The current run rate is higher. We just signed we did that in a variety of ways but it included signing up for delivery with grubhub, door dash and uber eats. We signed a deal with post mates. By the end of the month well be live in 85 of restaurants with what we call dispatch delivery, meaning you can order delivery on our website, get delivery by door dash, pay a lower fee and get points on my red lobster rewards. Talk to me about the 15 minimum wage push. We were talking about one of the challenges that businesses are facing now is the labor shortage, trying to find good people to i assume thats part of the challenge for your business as well. Fortunately, from the earliest days our founder was focused on hiring the very best people and developing them and retaining them. Thats been in our dna since day one. We pay above average wages in the industry. Our benefits are above average. We have promotional opportunities that go beyond what you get in other companies. You have line cooks and dishwashers winding up be Vice President s, supervising 10,000 people. We actually were just named to forbes list of americas best large employsers. We are doing way better than industry average on retention. If you go into our restaurants youll see more longserving employees than just about anywhere. Are immigrants and important part of your workforce . Well, we do hire legal immigrants. We are very careful about documentation and thats absolutely critical. We do require documentation to ensure that people can legally work before we hire them. Dagen beyond everify . We rely on the everify system. Dagen jessica, you had a question . I was looking at the five pillars for your company that you put forward for when you went to independence. Im interested in corporate social responsibility. Now, values based marketing is the way brands are getting ahead. Can you talk about your csr program and how that yo affects people that work for you and your Loyal Consumer base. Consumers are more focused on that than ever and the younger workforce is very focused on that. Weve made commitment, we have 100 of seafood today is traceable to a known, trusted source, is from a sustainable source, and is sourced in a responsible way. Thats 100 of our seafood today. We believe were very unique in that. In fact, a lot of people want to know where their seafood is from. You can go to our website and see that today. Go to www. Redlobster. Com seafood w www. Redlobster. Com seafoodwithst andards a and you can see where the seafood is from. Its a discretionary purchase, buying a lobster. Any signs the economy is slowing down or softening . Our seafood feasts are selling well. We introduced new feasts. People love those things. On the other hand, there absolutely are consumers who are under financial pressure. We l follow what we call a barbell strategy, meaning we try to offer things at the high end of the menu for people who are celebrating, their anniversary, they want something special, but we also have great value offers at the other end of the menu. For example, our weekday wins, early dine offers with really great actually, abundant feasts for 15. The most popular one on monday is endless shrimp monday at 15. Ar 15there are other great one s well. We introduced value lunches for under 10. Power bowls are made with super foods, you can get it topped with seafood and starts at 9. 99. Dagen vegan, quote, seafood, unquote options, are you introducing plant based options . First of all, im personally Health Conscious. Seafood is likely the most important food one can consume for good health. But that said, we accommodate people with a variety of dietary preferences. We have a great online tool for looking, if youre concerned about allergens, where you can see what items have what. But we also accommodate special requests in our restaurants. So we can accommodate people with any dietary need. You can go, dagen. Dagen im dagen. Kim lopdrup, good to see you. Thank you for having me. Dagen coming up, the new green card rules, the Trump Administration announcing a regularegulation that could makt harder for immigrants to get a green card. House minority whip, Steve Scalise, is here, next, to discuss it. Plus, nikes new service, the sneaker giants plan to keep your kids in kicks. Details, straight ahead. I got my hands up. I need ani an alibi. I need a witness who can testify. You got the wrong guy. Im only guilty of a damn good time. Dont miss your golden opportunity to experience our most advanced Safety Technology on our full line vehicles. Now at the lexus golden opportunity sales event. Lease the 2019 es 350 for 379 a month for 36 months and well make your first month payment. Experience amazing. Liberty mutual customizes your car insurance, hmm. Exactly. So you only pay for what you need. Nice. But, uh. Whats up with your. Partner . Not again. Limu thats your reflection. Only pay for what you need. Liberty, liberty, liberty, liberty dagen welcome back. Im Dagen Mcdowell, in for maria bartiromo. It is tuesday, august 13th. Your top stories at 7 30 a. M. Eastern. Futures are pointing to a lower open but off the lows of the morning, a 52 point loss on the dow futures as trade worry, hong kong protests and falling bond yields weigh on investors. This following yesterdays massive selloff, led by financials, material stocks and Energy Stocks. 390 point loss, thereabouts, on the blue chips yesterday but more than 1 losses a across the board. In europe, theyre selling to tell you about. In england, france and germany, losses of half of 1 or more. In asia overnight, it was red across the board as well following the selloff on wall street monday. The hang seng and hong kong the hardest hit as protests continue to cause major disruption. The International Airport shut down for a second day as activists fill the terminal. China trade, more turmoil and new warnings on the Economic Impact of the dispute, now a new report says the next round of tariffs will impact Womens Clothing more than mens. Border crisis, the white house issuing new rules that would deny green cards to immigrants who use some types of public aid. The fallsout ahead. Fallout ahead. Nikes latest innovative offering for parents with growing kids, what it will cost you to have a new pair delivered every month. Plus, made in america, a store that only sells items made right here in the us of a. Clamping down on immigration, the Trump Administration issuing a regulation that would deny green cards for legal immigrants who use certain social welfare programs. This as a new poll from Pugh Research shows the majority of americans, 72 , say undocumented immigrants should be allowed to stay in the country if certain requirements are met. Joining me now, House Minority whip, louisiana congressman, Steve Scalise. Congressman, fantastic to see you, as always. What do you make of this move by the Trump Administration to deny green cards to legal im p immis who draw from some social programs . Good morning, dyingen. Good to be dagen. Good to be with you. If you look, there are a lot of the Trump Administration has been doing to move towards a merit based system of immigration which i think most people want to see us do. If you look, this isnt out of line that with other things that are being done to discuss the breakdown, frankly bankruptcy of our social Network Programs. All of these programs are going bankrupt if we dont fix them. Some of the welfare programs, where work is available for ablebodied americans, to have to go back to work if theres a job ready for you instead of being able to sit an some of those programs that taxpayers are funding and be paid not to work while turning down jobs. Its something hes been working on to address the potential bankruptcy of these social Network Programs that are going bust because theyre not being run properly and we need to get to a merit based system of immigration. Dagen i wanted to point out, the use or potential use of benefit programs like medicaid, sometimes types of housing assistance, food stamps bodies qualify an applicant. School lunch programs, homeless shelters, the Childrens Health Insurance Program would not disqualify. Its not all social welfare programs. Yeah, and again, if you look at what the president worked with congress on a few years a ago to address some of the problems with the welfare system where if somebody is ablebodied ands choosing not to work, were not talking about the single mom working three jobs, were talking about the 28yearold who is sitting on his moms couch, being paid in taxpayer benefits while theres a job hes turning down, thats got to end as well. None of these could be looked at in isolation. Again, our whole immigration system is broken. We know it. We have a crisis at the border. We also have a number of things that Congress Needs to take up to address these loopholes, interior loopholes where were not properly dealing and giving our Border Patrol agents the tools they need to secure americas border. All of it ultimately needs to be focused on a merit based system where coming to america to seek the American Dream is something that works for everybody. Right now it doesnt. Dagen congressman, the timing of it seems more plight politin financial. Ill point to this. In this country we have way more job openings than people who are unemployed. The distear at thi disparity isa million between the jobs that are available and the number of people who are unemployed. I think its a million andahalf in the most recent reading. We also have research thats been done over time that shows immigrants and their children use less welfare than third and higher generation americans. Well, look, im glad that we have this great economy where there are more job openings than people looking for work. Thats something weve been celebrating for a few years now. Its only because President Trump worked with a Republican Congress the last congress to cut tax rates, to make our country competitive again, to get regulations under control which were crippling the ability for middle class jobs, especially in the blue collar fields to happen. Now weve got this robust none of this can be looked at in an isolated lens. What the president did on work requirements for americans, not just immigrants, was something i thought was important to say that if youre down work and if youre turning down work and youre taking benefits while the programs are going broke, thats got to be changed. Dagen but foreigners coming into the United States are looking to come here, generally have to prove they have enough income to prevent them from becoming whats called a public charge. And the denial of visas on the grounds that the applicants could become thats not the case. Dagen let me finish. The denials of visas based on the grounds that would potentially become a public charge have increased during the Trump Administration, up to more than 5500 in fiscal 2018. Well, again, like i said, you cant just look at one change or one proposal isolated in its own little silo. There are a lot of other things that the president s been doing to get to a system where we can secure our border. Weve got over 3,000 people a day coming a across our border illegally. Not all of them are coming here to seek the america dream. We know we have drug traffickers, gang members coming across. Were catching a lot of them and finding that out. How many others are we not catching . The president s been trying to get control over the border and secure americas border. I think most americans support that. Whether you came here legally, illegally my great grandparents came from italy, seeking the American Dream. Right now, youve got some people waiting over 10 years to come here legally and theyre watching every day when 3,000 people are coming across the border illegally. Lets make the system work better for people that are waiting the right way. Dagen this new rule is not go i if we fix that, it wone years and years to come to here legally. Dont look at an isolated piece. There are a lot of things that have been done to try to get to a true merit based system where the legal system works again, which it doesnt. Dagen on the surface, because the new rule from the Trump Administration targets legal immigrants who are seeking green cards, this is legal immigration, so it sends the message that are you trying to reduce the number of legal immigrants coming into the country. Not at all. In fact, the number there is a number, over 1 Million People a year we let in legally. I think youre aware of that. And that numbers not trying to be changed. What the president s trying to do is move, for example, the visa lottery where 55,000 visas are given out a year to people randomly selected, in many cases from countries who dont like us. When at the same time were educating some of the best and privatest in america and if theyre her here on a green card their education visa expires, they graduate, theyre an engineer, every Company Wants to hire them, we force them to leave to compete against us. How about you get rid of the visa lottery and move over towards merit based, same number, not reducing the number, just making it work a lot better to get back to that whole goal of coming here to seek the American Dream. Dagen one criticism for years during the Obama Administration was the rules coming out of the executive branch in terms of regulation and reregulating industries and this ishow is this any different . Is this something that, one, is probably going to be challenged by a many Democratic State attorneys general but also something that could be overturned when the next when another president comes into office. Its much better if were able to work with congress to get this done. The problem is, pelosi made it clear, she doesnt want to address immigration laws. The president back in december when we had a Government Shutdown over funding of the wall, the president said look, ill put d daca on the table whh is one of the things the left said they care about, when they were give a chance to help solve the problem, to help the people that are here currently illegally, trying to become legal, we had a proposal to fix that and a they said no. Its better if congress is able to act with the president to fix it. When youve got one party thats literally saying were not going to vote for anything, it makes it hard for the president to get that done through congress. Hes obviously looking at administrative options too. Eye deally working with congress ideally working with congress is the better way to do it. If pelosi doesnt want to play ball, kind of hard to get that done. Dagen i want to talk about guns in the United States, the aftermath of the shootings in el paso and dayton. The mayor of san jose is proposing a law that would require gun owners to carry Liability Insurance. Congressman, as the victim of a shooting, a man who fought for his life, your reaction to what to this proposal and whats going on in this country. Look, whenever you see somebody trying to put roadblocks in front of people who are legally carrying firearms to protect themselves, is the same mayor going to propose that criminals have to carry Liability Insurance too. When youre only going law abiding citizens, it tells you what the objective is. Lets focus on the root of the problem. Why are people getting guns that maybe they shouldnt have been able to get. Whether its people with criminal records that didnt get put into the system, like in the charleston shooting, the Sutherland Springs shooting where the background sis l testimony didnt work. If you system didnt work. If you see people that want gun controls, they want to put laws on the books that make it harder for a law abiding citizen to buy a gun. I think it tells you what their intention is. Dagen is there one new rule on guns in the country that you would get behind . I dont want to talk about proposed legislation but any one thing that you would support . In fact, i just voted last year for the fix nix bill. There were real flaws in the background check sis many testimony. Things i mentioned, real shootings, park land, charleston, where they werent getting fed into the background check system so people that shouldnt have been able to buy a gun were able to buy a gun. Lets fix those problems, not go and pass bills that wouldnt have stopped the last shootings, but would have made it more difficult for law abiding citizens to get a gun to defend themselves. Theres Mental Health issues in the country. Everybody knows it. Lets find out ways to deal with that better before the next shooter. The best thing to do would be to put resources in the department of justice and Homeland Security to go online and root out a lot of these people that are recruited and radicalized online that ultimately become mass shooters too. We can work on that. Dagen congressman, great to see you. As always. Congressman Steve Scalise. Hope to see you in person next time. Take care. Well be right back. Stay with us. This is jamie. Youre going to be seeing a lot more of him now. Im not calling him dad. Oh, nno. Look, [sighs] i get it. Some new guy comes in helping your mom bundle and save with progressive, but hey, were all in this together. Right, champ . Im getting more nuggets. How about some carrots . You dont want to ruin your dinner. Youre not my dad thats fair. Overstepped. Sleep number 360 smart bed. St sale of the year on the can it help keep us asleep . Yes, it senses your movements and automatically adjusts to keep you both comfortable. Save 50 on the sleep number 360 limited Edition Smart bed. Plus 0 interest for 24 months on all beds. Only for a limited time. Dagen parents looking to save some time in the shoe stores have a new tool to get their kids sneakers. Susan lee is covering this store. Its also a Smart Business proposition, called recurring revenue. Thats right. The nike Subscription Service is called the Nike Adventure Club for kids from 2 to 10. Its a boxed set of sneakers that arrive in the mail for the parents each year. So lets bring it up. For 20 a a month you get four pairs of sneakers a year, six pairs a year will cost you 30 a month. 12 pairs, thats a lot of shoes for a 10yearold, that costs 50 a month. Each sneaker would cost around 60 or so, a savings of around maybe 10 per pair of sneakers. This is smart, dagen says, and a lot of analysts are jumping onboard. You get recurring revenue. You get recurring monthly revenue, you also get them young. You get them hooked on nike shoes so when theyre older they will stick with the brand. We know that teenagers say nike is their number one brand. Their core customer is below the age of 35. There are other people that are testing out the Subscription Services like urban outfitters, american eagle. Some say this is brett smart for nike to pretty smart for nike to get in early. You kill the middleman, the retailers, so if this catches on you think of this possibly as a model for adults as well. Nike has relationships with a a lot of retailers. So i wonder what kind of friction thats causing with thats why theyre starting with the kids. Its only for kids right now. The convenience for the parents, but if its successful you can imagine that this might be something that will be for adults as well. My kids, i let them wear down until their feet wearing out at the bottom. Podiatrists say you should replace them three times a year. Three times a year. I cant afford to have children. I have three kids and were constantly buying shoes. This is something i would definitely do. Dagen other Shoe Companies probably have this on deck now that knee you ky has done it. Coming up, made in america, a march he gemarketplace highlighs manufactured in the good old u. S. Of a, details after the break. S in 8 categories about vehicle quality. And when they were done, chevy earned more j. D. Power quality awards across cars, trucks and suvs than any other brand over the last four years. So on behalf of chevrolet, i want to say thank you, real people. Youre welcome. Were gonna need a bigger room. Who used expedia to book the Vacation Rental which led to the discovery that sometimes a little down time can lift you right up. Expedia. Everything you need to go. Expedia. At comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welcome to the neighborhood, guys. There is reward. Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. Dagen welcome back. Made in america, northern grade sells a variety of american med brands. The company has produced more than 40 weekend popup marketplaces around the country. Selling products manufactured only in the u. S. Joining me now, northern gray cofounder, mark mcmil mcmillan. Good to see you. Tell me about it. We started back in 2010 while i was living in minneapolis at the time. The idea was to get local, regional brands, some of the socalled Heritage Brands that have been around for decades and create a really cool experience and shopping event. Some brands on the east coast and west coast found out what we were doing and they said hey, can we come too. Hey, why not, the more the merrier. We did it. Consumers showed up, consumers spent a lot of money. Brands are happy. Consumers are happy. It was more mens focused apparel, accessories but when you add in music and food, coffee, a little alcohol, it makes for a unique experience. So fast forward from that one weekend in minneapolis, weve done 44 of these marketplaces all around the country. We did one in russia. And weve done eight Concept Stores primarily here in new york with our latest one we opened on 32nd street. Dagen thats incredible. I know youve got a question, tom. When you do these popup shops, first of all, how do you decide who youre going to include and how do you find the brands you want to include and how do you go about organizing the popup shops, advertising, getting consumers to be aware they exist . When we first started out we were more focused on the male consumer. But as weve grown, weve really expanded beyond that in terms of adding in home goods and womens apparel and jewelry and accessories and things like that. But along the way, ive gotten know hundreds of brands, diverse brands from all around the country and really developed close personal relationships with them. So theres definitely not a shortage of willing participants either in our marketplaces or in our physical stores. Can i talk a little about the appetite for American Made goods . Obviously we talk constantly about where everyone is shipping and we just did a segment about nike and at the end dagen got in there, not made in america. What are you hearing from consumers about this . What can the price differential be, like can you hike up the price of it more for an American Made good and consumers are happy to go along with it . Shirk . Sure, sure, our new ste just opened, a spent a lot of time there. Were steps away from penn station. Talk about diversity. Youve got everybody. Because we are new, a lot of people walk in and they want to know whats going on. What is this place . And as soon as i tell them that everythings made in america, its always a positive reaction. Dagen i love it. Regardless of race, gender, political ideology, its a platform everybody can get behind. Dagen mark, thank you so much. Stay with us. Well be right back. Ge. Content on their endless quest, to nowhere. But perhaps this year, a more exhilarating endeavor awaits. Defy the laws of human nature,at the summer of audi sales event. Get exceptional offers now. With sofi, get your credit cards right by consolidating your Credit Card Debt into one monthly payment. And get your Interest Rate right. So you can save big. Get a nofee personal loan up to 100k. Managingaudreys on it. S . Eating right . On it staying active . On it. Audrey thinks shes doing all she can to manage her type 2 diabetes and Heart Disease but is her treatment doing enough to lower her heart risk . 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On it with jardiance. Ask your doctor about jardiance. The type 2 diabetes pill thats on it. Learn more at jardiance. Com dear tech, lets talk. We have a pretty good relationship. Youve done a lot of good for the world. But i feel like you have the potential to do so much more. Can we build ai without bias . How do we bake security into everything we do . We need tech that helps people understand each other. That understands my business. Weve got some work to do. And we need your help. We need your support. Lets expect more from technology. Lets put smart to work. Stories with 8e 8 00 a. M. Eastern investors eyeing trade, protests, bond yields falling futures pointing to a lower opening, 62point loss on the dow futures, following yesterdays major selloff. In u. S. Markets all three major market gage down more than 1 , leading the way lower, financials Materials Energy stocks, checking on Global Market action in europe losses across the board as well the dax biggest loser the moment in germany more than 1 in ebb asia overnight red across the screen following selloff of wall street all four asian markets lower hang Seng Hong Kong hardist hit protests continue to cause major disruptions at the airport there. China trade turmoil new warnings on Economic Impact of the dispute a report says next round of tariffs will impact Womens Clothing more than mens, trouble on high seas a carnival cruz ship earns worst Health Inspection score ever. Is if find out the issues that led to the failing grade and what is being done about it. And the strength of the American Consumer major retailers reporting earnings this week we have a preview to break it down with me realclearpolitics cofounder president tom ben democratic strategist Global Economics editor at wroj Jon Hilsenrath bottom of the hour Consumer Price index. Fed tie into those this started courting Interest Ratesi likely to contract them if Inflation Numbers soft more incentive if Inflation Numbers move up some forecast that makes it a little bit regardeder for fed to move market can move on that. Dagen we will watch it have you here waiting for it, yes, thank you. Coming up also, in next hour hopfy ceo here, the host of Varney Company Stuart Varney dont miss, top story this hour, we are stay on futures and markets Goldman Sachs you can about take a look a u. S. Futures the moment off 80 points on the dow futures, Goldman Sachs issuing a warning on trade, saying it does not believe u. S. And china will reach a deal before the 2020 election. Etreasury yields tumbling in yesterdays selloff on worries about Global Growth and again negative yields around the globe, joining us now u. S. Bank Wealth Management chief Investment Officer Eric Friedman good to see you what where can you hide again i want to point out a story in the the wall street journal, it is not only is there volatility in the stock market, but volatility is also increased in a host of Asset Classes volatility in treasury market even volatility in commodities like oil where do you go to hide in this environment . Good morning thanks so much for having me on we do think this is a time that diverseification will benefit i am sure you are not surprised to hear that from Financial Adviser very narrow market for a long time if you owned u. S. Assets you really you really have done well, and where we have been advising make sure a balanced portfolio bond, Interest Rates have come down the time investors start reaching for yield we told investors dont do that this has environment you need to have bond like scomour that exp Government Agency bonds we think worth having a portfolio we are waiting we think probably more downside not viewing this as a cycle ending economic slowdown, so again expecting things a little bit lower in prices but looking forward to some good opportunities when that happens. What is the earnings backdrop behind this . We have been talk lot this morning about the economy slowing down. Were getting retail earnings coming out second half of the year how are the earnings numbers going to play out . 90 market s p 500 is reported Second Quarter earnings have been better than expected i note they have been better an more than down beat expectations, so as we turn into second half of the year would i say Third Quarter is a tougher period for earnings. Especially, because we are constantly against a more difficult time stories corporate profits peaked Third Quarter last year so as we go you know quote unquote samestore sales for a lot of retailers second half of this year they are up against more did i comps not materially difficult environment i would say down 3 to 5 where street is, we think that is reasonable, also anticipating a bounceback in q4 as welcome fairs half 2020 so i would say there is there is a little pessimism built into second half this year but, again, expectations for a mild rebound in 2020 we think is reasonable. You say 3 to 5 that is pretty tame are days of double digital earning increases over . Probably for this year, although we do think there is opportunity for some bounceback, in 2020. Again, just the headline prompts more challenging deeper into 2019 our expectation that Economic Data will start to shore up improve in the really the first half of 2020, sko you could start seeing companies, really reporting better numbers in early part next year, so i do think it is more challenging, for earnings to pick up in doubledigit territory for the rest of this year, but it could get better, starting in 2020. Good to see you. Thank you so much Eric Friedman joining us the war of words, between President Trump, and his brief Communications Director Anthony Scaramucci continues Edward Lawrence live at the white house with the latest. Reporter this happened as quickly as tenure at the white house scaramucci former White House Communications drivering u las a, 11 days ago support this president now this. I think you have to consider a change top of the took into account when someone acting like this when is one that is um lax intellectual curiosity to take ideas from friends. You are no longer ative support of President Trump and reelection bid. I think pretty obvious from over weekend the guys, actually dissembling sounding more nonsensical. When you creative the president had been part of his team that is lowhanging fruit for president donald trump, the president tweeting about mooch saying scaramucci like many others had nothing to do with my victory is upset i didnt go or want him back in the administration, he is desperately wanted to bee i seldom have time to returning his many calls he just wands to be on tv the mooch responded on twitter saying basically, antibullying or bullying is not part of the presidency he said the president shouldnt bully on twitter this escalated quickly especially on social media. Dagen . Edward thank you so much for that [laughter] edward lawyers white house tom laughing i want your april reacti political reaction. He was fired because he called up a new yorker reporter maybe after having a few drinks screamed into the phone it was recorded, is though he was the one in that case doing bullying this is part of the sort of reality tv serious that is donald Trump Presidency having finest people doesnt always have finest people, scaramucci is a guy desperately wants to be on tv he is getting his 11 days 150 minutes whatever we call it, again, we had omarosa before him there are oergs ongoing drama doesnt amount to much in grabbed scream of things, just makes for sort of an interesting couple days story. Dagen out is about attention, and antonio scar mutuali scaramucci about attention President Trump took the bait basically shined a bright ray of sunshine on the mooch as he is known. Absolutely, attention is name of the game here it is a reality tv presidency wants xa cable news hit anthony. Whatever. Big brother whatever it maybe i will say not to get to a series serious some issues are legitimate that voters thinking about right now. This started because he came out against the president for the center of comments about congressional efforts. If you look at midterms where white suburban women were polling for them right now in terms of supporting the president these are real issues, that he needs to be paying attention to can we be honest, scaramucci saying the president acting worse or differently than he has done before to break with president . Same guy same thing scaramucci decided to a risk on president 2016 after hollywood take comes out people o fundamentaleded voted for him give him a shot i dont like hillary whatever it maybe four years in you of known what Trump Presidency looks like then you have, these kinds of comments i am not saying anthony wants anything more than a bunch of hits or tv show but there are issues with president s comments now that he has been president. Dagen i will throw this into the mix, that page six edited by emily smith New York Post is reporting the question is did nikki haley recruit the mooch to resistance over weekend scaramucci broke with trump on twitter, and he apparently was he curiously page six told the mutually dying with fellow trump turncoat nikki haley same rows 10 days ago in deep discussion wrn who leaked that. Nevertheless i want to throw that into the mix, since i happened to see it at 2 a. M. I dont think we should debate what this tells us about Anthony Scaramucci as far as what it tells us about the president matters so much why is he engaging, in in. He cant help himself. Right. Again like if you take shots at him, he said this repeatedly if you punch at him he is going to punch back not going to stand by let some guy who worked for him 11 days, insult him not going to again he did take the bait. There are plenty of people you know 320 Million People in this country have a right to punch at the president , the president should not be targeting specific individuals on twitter, or in a speech you know we will all loss our breath if we have that there is a why now infer nice story why is Anthony Scaramucci doing this now. He says, i wonder i am guessing just asking the question, you see, steve ross, head of related, the company that they own soulcycle equinox but haveup last couple booekz that frifr steve ross is having for President Trump raising the question if scaramucci is worried about getting invited to parties in the hamptons you know what i mean if you get alienated, scaramucci supported president obama raised money for president obama supported mitt romney, and then supporting in order scat walker then jeb busch then President Trump. Son program went after donald trump when running for presidency i would say kind of all over the place, leave it at that coming up retail roundup, a slew of big brands, set to report this week, including macys, alibaba, and the biggy walmart the trade feud taking a toll on consumers shopify ceo joins us to weigh in on the state of real. Plus, above and beyond the culinary giant launching partnership with beyond meat to bring planned based menus to come on stay in hospitals and schools. Bust up. Dagen get thchipotle employees quarterly bop uses announcing more than 2600 qualify to owner up to extra week of pay a crew Bonus Program according to chipotle if the teams meet certain criteria predetermined sales cash flow every quarter they will have the opportunity to earn up to extra month pay each year. Come on now. A speed bump for shares of uber Company Stock hitting alltime low, Jackie Deangelis at New York Stock Exchange with more, hey jackie. Good morning to you dagen, prices are even lower than they were at that record close yesterday. Remember, uber priced it by 45 dollars it is trading well under that level, missed earnings double mislast week, investors are worried about the path to a profitability ceo says they are on it numbers are not showing that trade 36. 60 premarket, beyond meats is saying that it is going to be working with aer ar marks hospital businesses a company that serves two bllg meals each year says 60 Consumers Want them looking at what is happening with beyond meat saying we need to get into this business launching its own line of soy based Meat Products to offer competition and consumers more options. Dagen jackie thank you for that Jackie Deangelis on the floor of the New York Stock Exchange, coming up retail woes bunch of big brands on tap to report earnings this week, but the looming tariff threat may it be taking a toll on pocketbooks, shopify chief operating officer joins us with his outlook, and rough waters carnival cruz ships failing its this is follows this this is centers for Disease Control cdc receiving worst san contiguous grade in ships history cruise line is trying to fix things coming up. All right brad, once again i have revolutionized the songwriting process. Oh, here we go. I know i cant play an instrument, but this. This is my forte. Obviously, for auto insurance, weve got the wheel route. Obviously. Retirement, were going with a longterm play. Makes sense. Pet insurance, wait, let me guess. Flea flicker. Yes howd you know . Studying my playbook . Yeah, actually. To the wait did frowe just winners. Prouders everyone uses their phone differently. 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We think retailers having a special moment right now our perspective is a bit different we reported q2 earnings we saw almost 14 billion dollars sales go through the business on shopify a couple things were seeing one is we are seeing consumer want to buy direct direct from manufactures from brands, tommy john underwear, on shopify incredible right now the second trend we are seeing more and more we are seeing retail shift to mobile we saw something, 70 transactions happened on mobile in q2, 80 traffic happened, so from our perspective retail is shining right now. Dagen what are these companies doing though to drive sales . I was talking to somebody earlier in the break about just advertising on podcast, you know that is special targeting of millennial shopper, but clearly these brands like are doing something right, it is across a number different media avenues. One of the things you are seeing with brands is really innovativeive entrepreneurial modern dont have a playbook sort of inventing as they go pod casting social Media Advertising just things like google, facebook ads influence marketing getting on television you are seeing a lot more Online Retail brands advertising tradition immediate yumdz like tv consumers beginning to prefer to buy directly from them than intermediary less than intermediary adding a ton value they are not just they have is distribution theent in gives everyone distribution. We talk about death of brickandmortar retail would i like perspective as is one on the other side of that do you see brickandmortar retail dying do you see any brickandmortar retailer doing a good job adjusting adapting. Perspective on brickandmortar i think is different we think brickandmortar retailers having a bit of a moment right now most people associate shop 70 with ecommerce 800,000 Online Stores on platform 100,000 brickandmortar stores we power we are seeing Cross Section brands like are also opening up Retail Stores as well i think what you are seeing from modern retail brands they are completely omni channel believe future retail is retail everywhere on line offline marketplaces social media platforms physical retail is a great way to get people to engage with your brand in a physical way, and i think going a good job too even a lot of direct to consumer Mattress Companies in new york city yesterday Walking Around soho Mattress Companies you can try even though you complete transaction on cell phone or computer later on i think we are seeing new revolution selling everywhere shopify is focused on. Harley great to see you. Thank you so much for being here always a pleasure, next time in person i hope, harley finkelsein shopify Consumer Price index coming out less than four minutes what it means for what the Federal Reserve does the market for your pocketbook, or wallet, rocking the boat Carnival Cruise ship earning worst Health Inspection score ever how the cruise line is trying to fix the problem. Every single day. But what does changing whats possible mean anyway . Well. If you run a business, it means a lot. For starters, we provide you with Financing Options for your customers. That way, you can help them buy the things they love instantly and pay over time. And that turns them into serious fans. Hang on, theres more. Want Customer Insights . Weve got those, too. We use data to show you what your shoppers have already bought so we can tell you what they might consider buying next. And you can offer them the perfect products. That ceo gets it. 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Equity trade. Dagen welcome back i am Dagen Mcdowell in for maria bartiromo. Tize, august 13, we are waiting for breaking news, on the Consumer Price index yeah, the cpi, it out for july, and about 20 seconds from now here the expectations, economists are expecting to see a rise of 3 10 of a percent monthovermonth a gain yearoveryear 1. 7 very tame inflation core rate concluding food inferentialing expectand e mean for markets what does it mean cpi gained a point 3 monthovermonth and up 1. 8 yearoveryear a little bit hotter yearoveryear on top line, Lauren Simonetti is standing by with your core number, and everything else, lauren . Hey there dagen okay. So to reiterate what you said,. 3 gain monthovermonth for july, Consumer Prices obviously, this is not the number that would include the chinese tariffs that have been threatened that would be in the future if that does go through, yearoveryear a little bit hotter than expected here 1. 8 yearoveryear print came in 1. 8 print expectation was 1. 7 percent, looking for energy prices, they rose 1. 3 , food prices unchanged, as for your core number . Up 2. 2 yearoveryear so that, too when looking at annual numbers, a little bit hotter than expected. Coming into this report we had the market down 4 points for the borderer market 50 no dow down 84 now for dow 8 for s p 10year treasury yields to see how investors are responding there that would be helpful. As of from what i see we have 10 year at 1. 65 kagen back to you. Dagen thank you so much Lauren Simonetti so just to reiterate top line number gain 3 10 of a percent,. 8 yearoveryear hotter than expected core rate gaining yearoveryear 2. 2 , Jon Hilsenrath, does this change the what the fed does next month i know i am putting you on spot. I dont think it changes what fed does next month i think we are likely to get another rate cut, but, you know, with tariffs coming on potentially putting upward pressure on Consumer Prices, in the months ahead. We could see becoming more uncomfortable for the fed to keep cutting Interest Rates. Now, if the economy really slows down, the fed is going to respond to that, more than i think it is going to respond to headlined numbers we have been very low on inflation for a very long time, if that can tolerate inflation going above that 2 target for a while but just it complicates the conversation a little bit, you know. The Inflation Numbers were soft late last year early this year. And that is one of the reasons a lot of people not just president were saying the fed was too tight it need to be cut in Interest Rates. They were trying to look through that they said were going to see firj were now seeing that firj i think are firming we get another rate cut in september makes december may be more complicated. I will throw this out there the talking point that you hear from democrats, because they sometimes they like to highlight inflation and if peoples wages are not keeping up as they have been we have been people have been they are real incomes have been rising adjusted for inflation average Hourly Earnings for all private sector nonfarmworkers slipped onetenth of a percent in july for june production nonprvshgs wages fell 10 of a per alienate, i know one month phenomenon will go out in talking points memo. The thing on talking points what matters is inflation adjusted earnings, and they are up from a year ago 1. 3 so rising people are still able to keep more of their paycheck than they did a couple years ago so it is pretty good news all in all. Dagen i was citing monthovermonth, 1. 6 is real earnings for production no, no, all employees 1. 3 that is good news that means people are the earnings keeping up with inflation, and then some. Reporter exactly. I will let you respond the end of the hour, i guarantee you will hear this talking later. From where . To energy in america President Trump heading to pittsburgh area to tour the plant the facility once completes will turn natural gas into plastic, the project bying estimated 6,000 construction jobs 600 jobs expected. Great to see you. Mr. Secretary is this one plant of many that you see on the horizon in terms of creating jobs in this country. Particularly in that area in Appalachian Region looking at we handle up to four plants of this size about 100,000 jobs created. There is a plant that is ptt folks that are over on ohio border about to make a final Investment Decision there. So a couple of these big plants, 6,000 employees as you said, somewhere north of six billion dollars, a lot of Economic Impact for this region. Making natural gas into those valueadded products that you see inferring from wind turbines, to solar panels to high end medical Technology Like heart valves this is really important valueadded products that are going to be coming to United States manufactured in United States jobs quality being created in Appalachian Region. Dagen mr. Secretary i want to move to oil prices, they have been falling on fears of slowing Global Growth, if we can take a look at the price of crude oil the moment is below 55 dollars a barrel. And one concern this is great news if if you drive a gasoline powered vehicle or any business that clearly energy comforts are a big concern. But if you are in the oil business, are you concerned about job losses in say Leveraged Energy Production Companies given where oil is now . Is that something that you are hearing from some people in Energy Business . Well, certainly folks that are highly leveraged or in a little different position maybe. But here is what we have to keep that in mind, this is a every changing industry it is an industry that innovation and technology really drives. The idea that you can be up and producing a well six to nine months in Permian Basin versus old offshore projects that took you know, three to five years, to get up and going, so there are their ability to be very nimble, is very much on the front burner of days oil and gas industry. And you are also seeing this technology be able to make it more economically about feasible to produce this. So what may have been back you know, three, four, five years ago, in efficiencies that maybe oil and you need more dollars, of per barrel to break even we are seeing that being lowered today so that is not to say that, you know, there are folks out there that are concerned about you know 55 dollar oil they would like to see it higher, what were really interested in is having stability in the marketplace that is where america and american producers have been so important to the stability of oil and gas prices, if you had not had the the shale burn Hydraulic Fracturing Technology Drilling Technology to marketplace would you see well over a hundred dollar barrel of oil most likely World Economy in some type of a recession. I have said that puts United States as now number one producer in the world. That it puts us in a much stronger position to take on threats. Overseas. And you are seeing u. S. Landg laid into 36 countries five different continue nepts from geopolitical standpoint the United States is in a vastly different place than a decade ago, and the european continent European Union we think probably two billion dollars worth of savings per year because american landg is able about to compete against the other l g courses natural gas sources, in that part of the world and lower the cost to power their economy over there so it is this is a this is a good story all the way around. Dagen from allied to a threat i want to talk about President Trump did confirm, advanced Nuclear Power cruise mil exploded in testing in russia last week the president wrote on twitter the United States is learning much from the failed missile explosion in russia we have similar those more advanced technology thank you russian skyfall explosion of has people worried about air around the facility and far beyond, not good. The explosion believed to have killed at least seven individuals. As head of Americas Nuclear arsenal what is being done to update Americas Nuclear weapon to complete with globally threats there secretary. Well the National Defense act requires us to keep our flat modern if you will, and that is ongoing fleet modern, ongoing the three National Labs that work on our our Nuclear Weapons we have a very intensive program in place today to make sure that our weapon not only are modernized but will work as he hopefully we never, ever have to see whether they work or not, but the National Labs are right at the epicenter making sure technology is finest in the world will work as advertised if required. Dagen mr. Secretary good to see you. Thank you so much. Secretary. Good to be with you coming up how will hostility morning monday morning Stuart Varney weighs in trouble on seas Carnival Cruise ship earns worth Health Inspection score ever how the cruise line plans to fix the problem. Dagen welcome back hong kong he protests flights out of honoring honoring airport cann canceled a second day in a row. Dagen i am i like hong kong. Used to live there. I have a daughter adopted from hong kong a remarkable place, i always thought of it as not exactly a bastion of freedom but certainly an area of liberty attached to to the southern shore of china. If they are in this kind of mess really worries me i think worries a lot of americans certain a lot of investors unconfirmed reports of chinese troops pla Peoples Liberation army massiving just beyond the border . Oxygeni. Hong kong pushed to brink no return as you pointed out you know cities are have taken protests to departure lounge the airport about closed down another day seems like, confrontation is in the works. Some form of nasty confrontation is in the works, looks like it is coming i dont see how you back down either way. If there is that kind of confrontation, i dont see how any kind of trade deal can get pushed through. At this point, that would seem to be receding into way, way distant future the way i see it. How about you. Dagen stu again i think more and more to your point that people think that a trade deal as the tension builds in hong kong and the problems there, and host of other issues, that we dont get a trade deal until after the election and that is next year at the earliest. That is drupg world trade big time disrupting our markets big time really hong kongs not hong kongs problem it is xi jinpings problem. He has to fix that in his backyard before he can do anything with us, nasty situation. As i said i know hong kong very well, i grieve for it. I do. I cant wait for your show every day monday through friday, stuart we will see you top of the hour, Varney Company, 9 00 a. M. To noon, mr. Varney to alley have to all of us. Rough waters for cash val cruz earning one of the he worse Health Inspection scores ever where it fell short sparking controversy where rapper drake that i mispronounced that nothing more. Rapper drake new tattoo beatles fans are twisting and shouting. Oh, yeah, all right, take it easy baby she is an american girl. Oh, come on. Flo dont worry. Youre covered. dramatic music and youre saving money, because you bundled home and auto. Sarah, get in the house. Were all here for you. All all day, all night. dramatic music great job speaking calmly and clearly everyone. Thats how you put a customer at ease. Hey, did anyone else hear weird voices while they were in the corn . No. No. Me either. Whispering voice jamie. What . Thats it. Im calling kohler about their walkin bath. Nah. Not gonna happen. My name is ken. How may i help you . Hi, im calling about kohlers walkin bath. Excellent happy to help. Huh . Hold one moment please. [ finger snaps ] hmm. 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On the phone long nightmare i keep saying this on deals forever and forever, this thing, from what i understand from sources close to both companies both viacom, cvs is done, the parties have reached a merger agreement agreed two things that were holding up Exchange Ratio that is the price of how much you get you in own cbs versus how much you get if you own viacom shares both companies separately traded entities controlled by National Amusements run by Redstone Family Sumner Redstone out of pocket ailing mogul sheri runs the show you put them together, and both sides have to get certain amount of stock, cbs Bigger Company so cbs gets more more value than viacom that is what they were working out last couple days delayed decision yesterday a lot of people thought he was coming down till today, they worked that out other thing wording out the keeping joe ianela. The announcement i hear announcement coming after the bell today, to see how long joe is locked in they want to keep him in company even though bob the ceo of viacom is running the show, joe will be report to go him they wanted to keep him in company, because he is a savvy financial manager so all this stuff will be laid out i believe, in a press release that is being written right now, for what i understand not before the bell, so we are not seeing anything official jet about it you never know sometimes, when markets start going up stocks go crisazy they but out something faster because market is demanding more from what i hear the schedule to release announcement after bell also, management exactly what will be the role how long will he stay with dpraen what i understand from sources close to both companies, this deal is done, it just needs to be stamped approved, and press released that should come after the close of bell back to you. Dagen i am putting you on spot looking at stock both are slightly lower viacom down quarter 1 cbs barely lower what with the road ahead for company. Great question, there are two schools of thought, out there, if you look at media landscape they will be combined 30billiondollar company sounds like a lot right unless you think about who else plays in media amazon, apple companies had market caps approaching a trillion dollars, how does a pure content play like cbs not that big does name advicecom cbs or cbs viacom that will be interesting to see have you they word that want to make it like merger of he equallies bob is running the show see how they do that, but the future is interesting they are not that big there is a lot of bigger players people think talk Shari Redstone wants to expand a lot of people pi that is wishful thinking, that what she really wants is monetize her assets for her kids, and grandkids, you know the trust for the family, and sell this thing to you know a tech player the question is will tech being bite . They havent been on anything have they, developing their content so it is interesting about what is going to go forward here in era of core cutting name cbs sounds like a lot to old time journalists like us kids dont care anymore, right dont watch tv forces they are dealing with. No loyalty gasparino. We are fossils. Is this on that note Charlie Gasparino thank you for calling m see you later in the day President Trump just tweeting this, through massive devaluation of their currency and pumping vast sums of money into their system the tens of billions of dollars u. S. Is receiving a gift from china, prices not up, no inflation. Farmers getting more than china would be spending fake news wont report exclamation point Jon Hilsenrath i want your reaction to that. Reporter a lot to pull apart in that one on devaluation it is case chinese yuan has been losing some value in the last few months i dont know if i would call it massive devaluation they went through a long period appreciating currency from 2002, 2003 until with 2012 picking up losing value, since then, i wouldnt call it a massive devalidation in terms of gifts from china on tariff i think the president is referring to, a lot of reporting that weve doned on others have done suggests that the tariffs are being eaten different parts of supply chain yes chinese are paying some of it, but so are some americans suppliers so it fits into it hits american corporate Profit Margins into certain extent feeds consumers not the like one side dagen on that note, i want to get final thoughts from everybody. Start with you, tom. Whatever you want to talk about. Final thought. I want to talk about something i tweeted out yesterday. Its gotten a lot of retweets and i think its important. We talked all of last week, fixated on the shootings in el paso and dayton. Meanwhile, again in chicago last weekend, four more people killed, 43 more wounded by gunshots. Doesnt get National Attention but is a constant problem. Theres no talk about how to solve the problem, no attention paid to it. Its going to keep happening. Its unfortunate. Dagen really unfortunate. I did see that on twitter, too. Jessica . Very unfortunate, the shootings still weighing on us as well. All human life to be valued equally, no matter how it is lost. I just want to say i spent three hours and not been asked about joe bidens gaffes so its been a wonderful time spending this morning with you. It was notable. Dagen what do you think, do you think dana said yesterday his democratic opponents might go after that on the debate stage in september. I was on danas show yesterday, ed rollins who works for a trump pac, i think the other contenders, we talk about the top echelon here, i dont think it really matters how people in the bottom half are able to use this, are weighing their options because going straight at him is not effective. That failed in both debates for people. You are going to have to find some way to casually imply that you are going to be a better person to take on donald trump and its kind of time for a change, pass the torch, that Eric Swalwell ineffectively made. Dagen simone sanders, who works on the biden campaign, made a very, very strong passionate defense of joe biden. I feel that way as well. Dagen authenticity. Yes. Dagen john, final thought . Lot of uncertainty in the markets right now about how the economy will fare. Trade, trade, trade. Thats what we will talk about for the next six months. Dagen before i go, made in the usa, lc king, east tennessee, been in business more than 100 years. Jack king, follow him and buy their awesome mens clothing. Thank you so much. Tom, jessica and john. Mr. Varney, take it away. Stuart i shall. Good morning, dagen. Good morning, everyone. Hong kong is the story of the day. Its the market mover, too. Late developments. No flights out of the airport now. Very few arrivals either. Protesters using baggage carts as barricades in the departure area. Reports of Chinese Military vehicles assembling just across the border, and the chief executive carrie lam says hong kong has been pushed to the brink of no return. Sure looks like a confrontation coming. Well see. Heres another market mover. Interest rates. Look at this. The yield on twoyear treasuries is above the yield on tenyear treasuries. That is considered a signal that recession is likely. Well