Transcripts For FBC Cavuto Coast To Coast 20240713

Virtually all subpoena 500 sectors are down. S p 500 sectors. Thisjackie deangelis is here wat breakdown. Reporter good afternoon, neil. October has gotten off to a rocky start i would say. The fundamentals of the u. S. Economy had been holding up but the data is signaling that there are some cracks there. Today es nonism manufacturing number is important, showing slowing growth in the Services Sector. Reading of 52. 6 is down from 53. 4 in august. Fed cutting Interest Rates, reacting sharply, forecasting another quarterpoint move lower at the fomc meeting at the end of the month. The number is essentially neutral but it indicates sloyer growth here. We earlier saw a slip in manufacturing as well. You combine two of those things there is definitely a red flag. Meantime bed, bath beyond, increasing number of stores it is planning to close. In april it said it would close 40 stores. Now that number bumped up to 60. Retailing in general, 4600 store closures for the year announced by u. S. Retailers. That is well above the 2017 we saw. Brickandmortar is struggling to compete with online sales. The bulk of consumer driven tariffs have not kicked in. Theyre expected around december 15th. That will make it even harder for retailers. Neil . Neil okay. Im sorry. I thought we would throw to a bite or something. Jackie, thank you very much. That is where we stand. We were off a lot worse as jackie pointed out but the slowdown fear is followed by Interest Rate cut expectation. Were showing you the volatility in the course of this past week here but the expectations are for the next Federal Reserve meeting we went thinking we would have 40 likelihood of Interest Rates being cut to now close to 90 sentiment building on that. I always find that kind of interesting, socalled fed funds futures contracts that take a bet on rates because people are betting with real money there. Whether that is warranted or not that is it has the treasury down 1. 54 . We started the day at 1. 6. We got as low as 1. 56 . Stocks are in a bumpy ride. A lilies so for the timebeing. A read from former dallas Federal Reserve advisor Danielle Dimartino booth. Danielle, the expectation has grown now mightily that come the next meeting well get a rate cut. Do you agree with that . I certainly do, and biggest problem for investors, majority of those on the federal open Market Committee including jay powell himself do not agree with that. There is anxiety in the marketplace right now that the fed might not cut rates in october and that would really shock the markets. We had one of the most dovish members of the fed, chicagos Charlie Evans coming out and saying they had cut enough. This proceeded todays report on the Services Sector which employs four out of every five americans. We saw Employment Index within that hit that 50. 4 level that shows Services Employers are on the cusp of starting layoffs which would, they would follow their manufacturing counterparts down that path. This is not good news for fed members who want to hold the line and stay in a neutral stance. Neil yeah. You know what is interesting about that, glad you mentioned it. Not just an overall report that shrunk to 50. 4, that Employment Index with the new orders index, also was a little softer than earlier thought. Now it appears to me, even with thedown draft it es not nearly as bad as it is on the manufacturing front. How does it normally go . If we havent repealed slowdowns, at least in recessions but, is the normal pattern, the factory goes one way, a matter of time before services go that way . Or is there a wide gap . Look, so most people like to lean on the fact that the United States is only 11 manufacturing. While thats true, manufacturing always drives the train to your point. This is a process. It begins with manufacturers then it seeps into the first sector of services which is transportation. Weve seen 5000 truckers lose their job. It wasnt but nine months ago we were talking about the fact there is a trucker shortage in this country t bleeds first into transportation. Then you see it seep into other areas of the economy. Weve seen lots of store closures coming up. That will be expedited. What is curious, Service Managers queried in the report pointed out tariffs are affecting their business in addition to the labor market and uneven outlook for the employment, for the economy, excuse me but the fact that Services People are trading, are specifying the tariffs is really unique right now. Neil you know, danielle, you are probably aware the president doesnt believe that. He doesnt think this is a result of the trade situation as much as it is the Federal Reserve on monday, that is what he was saying and then saying the concern over impeachment. Youre saying this trade thing is now getting to be a more pressing concern . It certainly is and, the president needs to open his ears because this is not, these are not his opponents in the media for example who is making these statements. These are people who are running companies, who are having to make very difficult decisions headed into the critical Holiday Shopping season. They know more tariffs are coming down the pipeline. Some are choosing to be preemptive, Closing Stores in front of the holidays. These are things unseen. Take a composite of manufacturing report we got out earlier this week, and manufacturing report, it has the lowest self since 2009 when we were in recession. This is not a drill. This is the real thing. Corporate america is talking directly to the president. I think he should listen. Neil danielle, i always learn a lot, thank you very, very much. Danielle dimartino booth, having a good read of the fed having served on it. She was talking about retail, that is sort of unheralded selloff that people are not focusing on because some of these are aberrant examples but you heard at the beginning of the week forever 21 when it was saying it would be closing down stores and essentially closing down period. Then we got word that kroger, the big grocery chain is laying off hundreds of folks. Bed, bath beyond closing 60 stores, disappointing pace of turn around that was much bandied about. Split read on low end like costco, nordstrom, the highend. It is not across the board. But we wanted to add that to put in perspective. In the end what will decide whether you get into pronounced slow down when we get into recession, were nowhere, it would be you, consumer, show up in Consumer Sentiment surveys that telegraph a problem there. So far that is not the case here. But were just sort of connecting a lot of these dots. Theyre not all consistently going in the same direction. Meanwhile the president is still saying that ahead of talks with the chinese on that trade deal, he is not too worried about it. China is coming in next week. Were going to have a meeting with them. Well see. But were doing very well. Some of the numbers i think are being affected by all of the nonsense, all of the politics going on in this country by the democrats. I have a lot of options on china but if they dont do what we want, we have tremendous, tremendous power. Neil to greg ip of the wall street journal. What do you think of what the president is saying . Maybe all this other political theater, referring to the democrats and impeachment push, that it is contributing to this craziness here in the u. S. , the markets and everything else, what do you think of that . Actually i think, if you look at the data closely most of the things that are hurting u. S. Are actually originating abroad. As i wrote this week, that is a little bit of reversal of the usual script. U. S. Is still Worlds Largest economy. Historically u. S. Developments that pulled the rest of the world in recession. For example, the tech bust in 2001 and housing crisis in 2018. Now you have problems with china, britain, brexit and problems in germany. Those are spilling back on to our shores. If you look for example, at ism indexes weve been talking about, the weakest part are the export indexes. Business investment, major negative in the second quarter, likely another negative in the third quarter, that seems to reflect the problems of the trade war affecting our trade partners that hurts demand for trade orders and hurts sentiment here. Most of the story what is going on here is not really a domestic american story. Neil that would be not a first but certainly unique in this whole, Trump Presidency that now it will be Global Markets that could be leading us if that is a case that is a worry right there. It is and for a couple reasons. One is, first of all, we dont have the ability to change what other countries are going to do with their policies but the other is, so for example, china wants to slow their economy down they want to stop a financial bubble, we dont have the means to stop that. If you look around the world none of us have a lot of ammunition to deal with recession. Interest rates in europe are negative. Japan theyre negative. Federal reserve has 200 basis points of ammunition. There is not a lot of dry powder if event in the United States spill into the u. S. Youre seeing a little bit of nervousness in the stock market now. American companies are watching developments unfold. Theyre worried about things like oil and gas market pulling down the fracking sector. Theyre saying who will come to our rescue . Neil right now betting seems to be, why were off the lows of the day, were down better than 300 points, i dont know whether you agree with it, greg, the expectation the Federal Reserve will come to the rescue even though it has fewer arrows in the proverbial quiver, that it will cut rates, maybe a quarter point as soon as this month. What do you think of that . I dont know what is going on in the market. Things can change hour to hour for variety of reasons. As you and dan elle were discussing there is high probability that fed will cut Interest Rates next month. Survey data, things like purchasing manager es index, dont forget those are surveys, theythey dont tally up the production numbers. First jobs number tomorrow, the first hard number we get for the month of september. That is weighing on feds mind. They are not pushing the panic button. If hard data on retail production and retail sales basically echoes what were seeing in the surveys, yes i think the fed will have to cut rates. Whether that comes to the economys rescue im not so sure. Remember it is not just a case that they have only 200 basis points of ammunition yet but longterm bond yields are 1 1 2 . They have discounted easier Monetary Policy. At best only ratify the expectations. Knot obvious to me how that provides a really big oomph to the economy going forward. Neil im glad you mentioned that. We were talking about a fed funds rate that will be higher still from what you get for your money for 10 years. And that generally, telegraphs some problems down the road. We shall see. Greg, always good chatting. Thank you very, very much. Thank you, neil. Neil as greg and i were talking here, apple ceo tim cook is on the wires right now. Hopes on this trade mess that cooler heads prevail. That the trade barriers are ultimately normalized. Tariffs return to zero or thereabouts. Might be Wishful Thinking on his part given the back and forth continues and now widened to the europeans, wto agreeing yesterday to the United States concern about the europeans getting a little too tough with us. So allowing the United States and saying that the United States is perfectly justified to put tariffs on seven 1 2 billion dollars worth of european goods. Anyway tim cook is saying he is favor of adjustment of world trade deals to reflect modern times. He didnt exactly spell out what that would be and what that would mean. The read from David Stockman about this who has warned about a lot of this after this. 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. the day well finally get something done. No, just a sec. 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There are new Cyber Threats out there everyday, so protecting yourself isnt a one time job, its an ongoing need. Now is the time to make sure that you have the right plan in place. Dont wait. [announcer] norton 360 with lifelock. Use promo code get25 to save 25 off your first year and get a free shredder with annual membership. Call now to start your membership or visit lifelock. Com tv neil all right, we have a lot coming up in the next hour. The president will be at the villages a big retirement community, i mean big. As some countries it seems to promote his medicare plan. He already issued a executive order about protecting americans from democrats medicare for all proposals. I dont know the details for that, some of the other solutions he has. He is cognizant that democrats gained what they did in the Midterm Election because of health care issue. Republicansrepublicans were caut flatfooted and ultimately lost the house of representatives. This could be a way to address that well see. Americans spent more on taxes last year than food, clothes, health care combined. David stockman is here, the former reagan budget director. He has been a big critic of all the spending going on in washington and well address that but, david, when americans overall personal books are weighed down by this kind of spending, it is hard to think how they will ever make things right themselves, what do you think of it . Well, i think youre right. 18,000 a family is a pretty, you know, hefty burden but really im sad to say you havent seen nothing yet because were heading into a horrendous fiscal crisis in the 2020s and were going to have a choice in the upcoming election between the biggest spender to inhabit the oval office in the last 50 years and the Elizabeth Warren who is even worse. So you know, this is, pretty dire outlook. Weve been sleep walking really for the last two or three decades. The fed has enabled politicians to essentially escape fiscal responsibility entirely, to sort of go on budgetary vacation because it is bought up such massive apartments of debt, trillions of dollars. That is monetizing the debt. That drove down the Interest Rate. It is, you know, 1. 6 on the 10year today. So nobody in washington thinks there is any problem with a 22 trillion National Debt but let me tell you, whats happening, this thing is careening out of control at a rate that is being totally ignored by the Mainstream Press and by wall street. Heres the number. In the last 90 days the net debt of the federal government is up by 600 billion. In 90 days, 600 billion. Not a day, not a president ial term, 90 days. That is how out of control this thing is. Trump has increased his four budgets, talking about spending now, not even going after the tax cut that didnt work, that was a bust, im talking about spending. 185 billion per year in the four budget that he has put into place. If you put the same dollars of purchasing power, that is 2019 the numbers for bill clinton are 40 billion a year in his budgets. For obama, it was 75 billion a year in his eight budgets. For bush the younger, it was 120 billion a year. So trump is just in a league all of his own. How can we do this neil many will quibble with you whether the tax cuts were a waste of time. Many will say if we wouldnt have gotten the oomph for the economy, without them. Leaving that aside neil neil we can argue. If you dont monday i i want to talk about you about debt. Youre not a fan of president with the debt he racked up. Youre convinced Elizabeth Warren would be worse. Why is that . Medicare for all, all kinds of estimates center 30 trillion over 10 years. Call it 3 trillion a year. Where are you going to get the money . She will cancel all or 90 of the student debt. You know, news flash, the budgets in future years assume 1. 6 trillion of student debt out standing is paid back. It is basically today from loans from uncle sam. She is going to cancel all that. The Green New Deal i cant even begin to put a number on that. Neil you think all of her ideas on a wealth tax, wall street tax, higher tax for guys like you just walking around, you dont think that will cover it, right . No. But she is on to something there. That is why i think you know theyre sleep walking on wall street. You know whats happened in the last week is that the House Democrats threw biden under the bus with this crazy ukrainian thing. Then yesterday bernie had his emergency and he basically stented Elizabeth Warren into the nomination. You know neil you could flip that around a lot of people say she is unelectable. That is always risky to do. They said the same thing about donald trump. Said same thing about barack obama. Im careful what im asking you is, if that were the case, she emerges as likely nominee, there are many on the street say thats good, there is no way in heck shell win. What do you think of that . Oh, i think the street is engaging in Wishful Thinking. She is on to something with this wealth tax. Heres why. When the democrats used to go for soak the rich, raising the income tax, they forget that 170 Million People file income tax. 96 million actually pay and even though they say were only going to raise the top rate, it scares the hell out of tens of millions of voters and republican machine does a good job of increasing the fear level. Now look at the wealth tax. There are only 83,000 families in america with more than 50 million in net worth. And there is only 600 billionaire, despite everything you read. In terms of politics she is on to something. I think that is going to be a help to her electability. Neil i dont think you can dismiss what she is saying. People are doing that to their own hazard. Well watch what happens. David stockman, good to see you my friend. Very good. Neil corner of wall and broad the dow is down about 19 points right now. This is the worst start to a quarter weve seen since the meltdown. Again it is very early, very early in the month as well. We should also posit here a lot of this improvement off the worst levels of the day has to do with expectations that the Federal Reserve will come to the rescue, and miraculously cut rates sometime this month, even before the planned meeting. That might be a leap of faith. The betting was 40 thinking it that way last time. The betting today . 90 . Stay with us. Do you have the coverage you need . Annual enrollment ends december 7th. Nows the time to get on a path where you can take advantage of all the benefits of an aarp Medicare Advantage plan from unitedhealthcare. Call today to learn more. These Medicare Advantage plans can combine your hospital and doctor coverage. With part d Prescription Drug coverage, and extra benefits. All in one plan. For a low monthly premium, or in some areas no plan premium at all. And youll get more for your medicare dollar. 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Annual enrollment ends december 7th. Lets get you on the right path. Call unitedhealthcare today or go online to enroll, and take advantage of our choice of plans, like aarp Medicare Advantage. [sfx mnemonic] neil president calling on china to ininvestigate joe biden. Latest on that front, blake burman. Reporter as he was leaving the white house earlier this morning the president was asked on the south lawn what exactly was hoping for when he spoke with ukraines president zelensky on july 25th and brought out biden in the phone call and the president started responding by saying hopes ukraine investigate s. Well i would think if they were honest about it, it would start a Major Investigation into the bidens. Its a very simple answer. They should investigate the bidens because how does a company that is newly formed, all these companies, by the way, likewise china should start an investigation into the bidens because what happened to china is just about as bad as what happened, with ukraine. Reporter as you heard there president investigate suggested that china should investigate the bidens. The president takes issue with this picture here. Hunter traveling to china on Board Air Force two with his father as vice president. Days later hunter biden joined a Equity Fund Board way received money from china. The president has been claiming 1. 5 billion though the Washington Post fact checker disputed that figure. In any event the president was asked if he has asked president xi to investigate biden . Listen. I havent but, certainly something we can start thinking about because im sure that president xi does not like being, under that kind of scrutiny where billions of dollars is taken out of his country by a guy that got kicked out of the navy. He got kicked out of the navy, all of sudden he gets billion of dollars. You know what they call that . They call it a payoff. Reporter the Biden Campaign responded this morning saying quote, what donald trump said on the south lawn of the white house was this elections equivalent of infamous, russia, if youre listening moment from 2016. A grotesque choice they say of lies over truth and self over the country. Neil . Neil blake, this is the third foreign country he has referred to that could potentially interfere in the next election or could look that way. Maybe that wasnt his intention but of course we know about the ukraine situation. Looking into joe biden. We know about the australian Prime Minister, when they discussed about the Mueller Report and maybe how they could disparage it or dispute it. Now this case with china. It is like he is doubling down on it because he is convinced he is in the right and that this is not the equivalent of a high crime or misdemeanor . Reporter certainly doubling down in that press conference yesterday, neil, he was pressed, the president was by jeff mason about the call. The president talked about you know about corruption in ukraine, burden sharing he talked about but he had not specifically answered just yesterday afternoon what exactly he wanted when he was talking to zelensky about biden. So that question was put directly to him today. You saw the answer, quote, Major Investigation. That is when he pivoted to china, making news as well saying oh, by the way china needs to investigate. You have to wonder neil, if, certainly an if, if this could factor into the trade discussions . Neil immediate thing i thought of was just that. If you bring me something here, that could be a fear but well have to watch it closely. Blake burman, thank you very, very much. We told you it has not been a good year so far for ipos. It was probably overpriced referring to offerings that have not gone well. He is looking right after this. This is the family who wanted to connect. To go where they could explore and experience adventure in unexpected places. Who were inspired by different cultures and found that the past can create new memories. Leading them to discover were woven together by the moments we share. For everywhere you go, expedia has everything you need, all in one place. Neil when stocks are down, looking volatile, that is reflection on the economy, right . Anything pegged to that doesnt look good. Oil, for example, not looking good again today. 8th straight session. Weve seen it fall a little bit. That does not mean that gold hasnt drawn investors though. Sort of a flight to quality, whatever you want to make it. That is certainly not inflationary call but a safe place to park cash. More so yesterday when we were up 2 today. Up a third of a percent. There is a story in the wall street journal today, dont hold me to that publication, a number of analysts saying you get 2,000. Who knows, right now its a draw, pretty much stocks backs and forth, not so much. Lets get the read on various slowdown fears building with our own charlie gasparino, and former Securities Exchange Commission Chairman harvey pitt who joins us out of washington. Harvey, welcome to you. Charlie, welcome to you. Thank you. Neil charlie, first to you, this slowdown building, what do you think . Wework ipo, a lot of people are talking about it. Bankers are trying to work something out to finance it to stop wework from going into bankruptcy. The bonds stablized but still trading a at huge discount. People think softbank will have to bail them out with more capital, because softbank in its portfolio holds similar companies, known as unicorns. Once known potentially great ipos. The wework implosion when you scrape the bottom of the barrel, a little bit, whatever klee chair you cliche you use, investors are wary of the whole market of new companies with lots of debt, maybe a lot of promise but not a lot to show for it. So part of the reason why the market is selling off, part of the reason why people get nervous about ipos, this deal raised a lot of eyebrows and caused a lot of conner is nation in the markets. Neil im thinking peloton debacle in its own way. Uber, uber. I had not too long ago, harvey, ken fisher, the billionaire investor on, saying he has never been a fan of ipos in general. It is probably overpriced. But he was saying maybe this inside crowd, we have the skinny, well give you allotment of this, the history on them is they dont do well. Some stand the test of time. Facebook after diving comes back all of that, but theyre the exception, not the rule but he does think that authority should look into these more than they do. What do you think of that . I think it is very difficult because the question it seems to me is one of overpricing. To put it bluntly, there is potentially a lot of greed here. People have a great idea. They have got a company. They think there will be demand and then they start pricing it at levels that are way too high to be sustained. And one of the decisions that was made at the very outset of federal regulation was, the government shouldnt set prices for corporate stocks. I think thats a good decision. Neil but should it watch, harvey, those who might rig the system or fear that they might artificially inflate demand or expectations . That i think is something that can be done. I think people can look at. What the techniques and methodologies are for pricing. What kind of Due Diligence was done . In a sense the sec has already made that a little easier by letting all companies now test the waters before a public offering, to see what the real demand there is. Yeah. We should point out with wework, and one other question i agree with harvey 100 , you cant really regulate irrational exuberance. Very true. The market has irrational exuberance and loss, not protecting people from losses. Neil might not be the company or underwriters, but they have to hype it. Rewind the tape on wework a little bit. Jpmorgan was main underwrite ir. They had bank loans with jpmorgan that were totally secured. They pulled the ipo because jpmorgan made them disclose all their issues. When people started seeing the issues, Institutional Investors backed off. If you ask me, that is not an sec issue. That is the market working well. How did wework get to where they were . There was degree of irrational exuberance. They had loans to jpmorgan were collateralized. Jpmorgan didnt go out on a limb. The system kind of worked here. When they disclosed what they did and investor class backed off. Didnt like what they have seen. Theyre back to square zero. They have to figure out whether they have a business or much of a business or going into bankruptcy. Whether they need capital, a lot of people think softbank which owns a chunk of them neil a lot of chunks. Because they own similar securities. Neil on that you hear, we always talk, the president arrived in florida by the way. He will offer an alternative to the medicare for all plan that democrats are espousing but on a day like this, where markets trying to stablize after crazy swings, little more than an hour 1 2 ago, how closely did you Pay Attention to the market at the sec . Obviously when it is down you have to pay a little more attention than you would like, how did it come into play for you . It comes into play very importantly. There is no doubt that the regulators have to look at how the market is functioning. One of the things that were seeing now is that the markets are really dysfunctional. Theyre dysfunctional in the sense that volatility is now at extreme rates. We are in the month of october which traditionally is one of the most volatile months in general. But were also seeing the market react almost excessively to every nuance in the news, every political idea and so on. There is no sense of longterm investment anymore in our markets, and that has to be a concern. That was the sec after harvey pitt. Harvey, you know, they got rid of specialists and stop gaps, that the New York Stock Exchange used to place on neil i dont mean to blow smoke, harvey was great at policing that made sure the little guy got a shot. Bill donaldson came in, made this electronic. What are they trading now . In decimals . Computers control everything. Neil were trying to see if we pick up audio out of president. He is in florida, addressing a group at the villages. That is where gasparino will retire soon. Bigger than most countries. He is championing this idea republicans have medicare plan of their own of the he already told, on verge of issue as executive order met at protecting americans from democrats, medicare for all proposals with a proposal to counter that proposal. Well see. More after this. Brokerage accounts. And zero minimums to open an account. At fidelity those zeros really add up. Maybe ill win saved by zero 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. Its soft. The kohler walkin bath features an extrawide opening and a low stepin at three inches, which is 25 to 60 lower than some leading competitors. The bath fills and drains quickly, and the door ensures a watertight seal, so you never have to worry about leaks. 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And financing is available for qualified purchasers. Youre smart,eat you already knew that. But its also great for finding the perfect used car. Youll see what a fair price is and you can connect with a truecar certified dealer. Now youre even smarter. This is truecar. Neil call it tariff titfortat. The french are promising to go after us when we slap 7 1 2 billion dollars terrorist in europe, affects everything from jetliners, wine and cheese. I hope it doesnt extend to process the meats but you never know. Edward lawrence is in washington. Hey, edward. Reporter the additional hows the u. S. To impose 100 tariffs on those specific items. However the u. S. Trade Representatives Office decided on two categories, a 10 tariff category and a 25 tariff category. Were not just talking about plane and plane parts. That is the connection with all this. So it could affect everything from french wine. Youre talking about cheese from italy, like parmesan and. And they say it has Significant Impact on both economies. White house Economic Advisor Peter Navarro says not so fast. I want to make a key point there is no titfortat retaliation. There should be no fears of that. Under the ruse of wto which were complying with here. We get to do this. They should not do anything back. Reporter but the European Unions trop trade negotiator says that the eu will respond to the u. S. Tariffs. Says this, if quote, our readiness to find a fair settlement remains unchanged but if the u. S. Decides to oppose wto authorized counter measures, it will push the eu into a situation where we have no other option but to do the same. You see there is a parallel case in the wto where the eu wants to put 12 billion of u. S. Imports under tariffs because of subsidies to boeing. That decision on that case will happen in a few month. These tariffs from the u. S. Go into effect on october 18th. Neil . Neil thank you, my friend, very, very much. President meanwhile is saying this entire impeachment push has him energized. He is psyched about it. After this. Sometimes your small screen is your big screen. And with the Xfinity Stream app, which is free with your service, you can take a spin through on demand shows, or stream live tv. Download your dvrd shows and movies on the fly. Even record from right where you are. Keep what you watch with you. Download the Xfinity Stream app today and get ready for Xfinity Stream tv week. Watch shows like south park and the walking dead october 7th through 13th. Neil all right in an interview with the new york posts Michael Goodwin says the president United States that the entire peach is energizing him. Michael is Pulitzer Prize winner and stellar week of columns. I want to touch on this interview with the president. He is saying that this is engaged him, this has jazzed him. Do you believe that . Yes, i believe he is energized by it. I love it. He joked maybe it is a character defect but i love it. Neil separately you hear storiess querying friends how serious this is. It gets draining. That it is eating away at him. Is it . Sure. I think the Mueller Investigation did that, he, this was a cloud over him the entire time. And then thats cleared up and almost immediately another cloud is injected over him. These are very serious issues. That is why i requested the interview with him because it is not clear to me if he has a plan to fight back because this will be a daily assault now. Theyre going after pompeo. Theyre going after barr. There will be a flood of accusations 24 hour news cycle coming at you everywhere. It will be whackamole i think within the White House Press office. Neil does he worry though that, poll are all over the map, you remind me of that, michael, that a significant number of americans, more so than the case a few weeks ago, are open to these hearings and that something might be sticking here . Well look, i think we cant discount the, just the volume of the Media Coverage and the tone of it is so big, if you come near a newspaper you will see a headline neil obviously he feels that is the media out to get him and all. Sure. People are getting that, right . Its a walltowall blanket coverage across the country. A lot of people in the east coast dont appreciate that much of the news the entire country gets originates from the east coast media, whether it is broadcast networks, New York Times news service, associated press, Washington Post news service, all of these opinion columns, news articles from washington originate from a handful of media organizations all of which are biased against donald trump. Neil when did you talk to him . I spoke to him wednesday night. Im sorry, tuesday night. Neil tuesday night. We were in the middle of this still market thing and concerns about the economy, his biggest trump card, no play on words, that might be looking, was he worried about that . Thinks, basically there are three reasons why he is confident in terms of 2020. The first is the economy. You know, country is doing well. He is right about that. Neil so he not worried about this bump and all that . He didnt express any. Neil okay. The second, i truly believe he thinks that the democrat are overplaying their hand. There is no there there on this ukraine call, to try to impeach him will just fall flat. Finally he sees it motivating his supporters, pointed to the fundraising haul which they had, 125 million in one quarter, a record for any neil galvanizing his base. Actually galvanizing republicans right . He said evangelical pastors called him, saying which is a bedrock of his support, they are more determined than ever to reelect him. He has seen a lot of good news within the blanket walltowall coverage of bad news. Neil including the hit in the polls to joe biden, right . Elizabeth warren has now emerged. Does he actually secretly want her to be the nominee more than joe biden . Did that ever come up . I dont think so. I think for him it is knocking out every frontrunner. It is going after every frontrunner in that classic trump way. You hit me, i hit you back 10 times. Neil what do you think he meant, michael, raising china again today . Maybe you can look into biden, the talk he did the same with the australian Prime Minister . Mentioning it in phone conversation with the ukrainian Prime Minister, what do you think he is up to here . I think he is just calling attention to these issues. I dont know that he really expects china to do anything or even perhaps ukraine but i think neil he is not hiding anything. He is doing it. He saying i, right. Every time he says it, it is reminder. Neil so he thinks this is not impeachable event, doing and saying this kind of thing . No. He thinks there is nothing on there. He is smart about this. Impeachable is a political word. It is is not a legal word. Neil absolutely. He is playing this i did nothing wrong and i have nothing to be afraid of on this. Neil wish we had more time because i did want to get into your comments that Hillary Clinton may be crafting a run. Well see. That is for next time. Always good to see you. Michael good win can just pick up the phone to get to the president of the United States. I have tough time getting the guard to let me in the building. President is talking about medicare in a big event in florida. This is very big issue whether the republicans were caught flatfooted offguard with alternative of their own. That might be a step in the right direction. Well see. After this. Do you have the coverage you need . Annual enrollment ends december 7th. 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It, too, was showing some of the same soft signs that we were getting, for example, out of Manufacturing Sector, and since the Services Sector is a much bigger part of our economy, the worry was maybe we have some worrying to do. The only thing that will upset that was this expectation because it was so surprisingly weak, maybe the Federal Reserve has to intervene and cut rates sooner than expected. The betting seems to be on people who put money down on this stuff, through feds funds futures contract which bore me as i explain it, the expectation is 90 or better they are going to do so. Last week at this time, it was at 40 . Anyway, bulls bears host david asman is here, evening edit host Elizabeth Macdonald here as well. I ended with you. Let me begin with you. Your thought about the market so far reversing course. Was it the fed expectation that came to the rescue . They dont have much room to rescue. Yes, i think its that. Its bull and Bear Sentiment as well. Neil every time you mention that, you have to give him royalties. [ speaking simultaneously ] so you know whats really surprising to me is the s p is still up 15 year to date. We have thrown the kitchen sink, the oven and the sewing machine at it and are still seeing pretty good numbers. Neil remarkable. Its striking to me. I just in terms of the sector, what im watching there, i mean, when i saw that u. S. Export number tilt downward, into recession territory, i thought ooh, the ism, services is going to come down because the goods manufacturing [ inaudible ] closer to that. Im really surprised the dow is hanging in like this. You are forcing me to rain on a parade here. Im very happy when we have a green box at the bottom right hand of the screen instead of a red box. Neil i hear from people who say you should forget dont forget there are a lot of people who make money shorting the market. When you herald a green up day in the market, you are actually telling people who short the market i stopped neil isnt that interesting . The only person who calls me davie the point is, there is a slowdown happening. The Service Number was less than its still growing but neil thats the difference from manufacturing. Exactly. More folks are signing up for unemployment. Thats not good. Tomorrow we will get the real jobs number. Neil thats going to be even more crucial. The economy i think needs a jolt right now. It needs some kind of jolt. Whether its usmca trade deal, nancy pelosi said she wants to do it, the president is skeptical as to whether she really means it, but it needs something. Maybe it will be something on the china front. China is still moving the market i think more than any other single issue, even the fed, but i do think one reason it turned around was because of expectations that we will have another rate cut at the end of this month. Neil im wondering on the china thing, too, whether china is analyzing all of this, you know, he needs this more than we do. Yeah. You know whats happening is asia, china is exporting a lot into asia. You know, the thought was, you know, it needs the u. S. Its really redirecting into other parts of asia. I think it behooves the president to really think about this because you are stress testing the bull hes championed and this is a real bear market hug on the bull right now, the lack of a china trade deal. So we have been talking about this, is he in a vulnerable spot, should he get it done. Theres way more headwinds against the market than tailwinds. It would be a nice tailwind to get that deal going. One thing the president i think read, charlie gasparinos favorite newspaper, the wall street journal here, had a piece the other day on how china factories are actually doing better than u. S. Factories right now in terms of the number of hires, their productivity, et cetera. That is a reverse from what it was just a couple months ago, because the president did revitalize the Manufacturing Sector, created 500,000 jobs as a result of deregulation and everything. Thats now beginning to slow down, and when china factories are doing better than our factories, i think that will get the president s attention, maybe force him to do some extra work on the china deal. Neil i want to bring jim lecamp into this, i call him jimmy. Always good to have you, my friend. You know, we were talking about whats happened in the Manufacturing Sector, Services Sector. In the middle of all that, all this kind of distressing retail news, bed, bath beyond closing 60 stores, krogers getting rid of a few hundred workers, this on the heels of forever 21. Im not saying this is indicative of the entire Retail Sector and it doesnt jibe with Consumer Sentiment surveys that remain relatively upbeat but how widespread is this slowdown . What do you think . Well, its not that widespread. Its in the Manufacturing Sector more than anything else. When you talk about what people call a retail apocalypse, its not a retail apocalypse. If you look at retail sales, they are continuing to trend higher. The consumer is spending money. The economy is slowing down. The consumer is slowing down. The jobs market is decelerating a little bit. The main pain is in manufacturing. It shouldnt surprise anybody. Look, the dollar is very strong. I just heard you talking about chinese manufacturing doing better than american manufacturing. They weakened their currency and our currency is very strong. It shouldnt surprise us that their manufacturing is doing a little better relative to ours but its not the biggest part of our economy it is in theirs. So you know, we are slowing down, i expect we will continue to slow down. I do think that manufacturing will spill over into the Services Sector. But i dont think we will have a recession. I think we are kind of walking a little bit of a fine line and walking just north of it, but i dont see a recession yet, and i dont see a retail apocalypse either. Neil to that point, i want to expand to dave and elizabeth, this idea that we are going to get a rate cut now. Thats almost a given. It will be this month and it might even be upwards of half a point. What do you think of that . I think the Federal Reserve board is going to cut rates. My concern is that the Federal Reserve board medicine isnt really working very well anymore, nor is the medicine thats being applied by the other Central Banks around the world. We are getting close the a point, where ultralow Interest Rates that have pushed up real estate values, bond values, stock values, art, collectible cars, guitars, whatever you want to call it, they pushed up the value to these things for the last ten years. Now we keep applying this medicine, its just not working that well anymore. Real estate cap rates are very very low. The stock market valuations are not particularly cheap, even after this big selloff. Bond prices are at alltime highs. So yeah, will another Interest Rate cut help, probably. Will it help a lot, probably not. Neil what do you think . I agree 100 . The thing that is really forcing us to do what were doing with regard to the fed, obviously i think the fed do a little more right now. They made a big mistake in december, they never admitted it, by raising rates when they should have been at least keeping them the same if not lowering them a bit. But we cant ignore whats happening overseas. Jim is right, though, whats happening overseas is they continue to look to negative Interest Rates to get them out of the hole, and thats not going to do it. They have to do what we did. They have to lower their tax rates, they have to get rid of a lot of the regulations they have. Instead they are going in exactly the opposite direction. They have these regulation czars over there creating more regulations than they had before, the tax rates keep going up plus they have the valueadded tax. Some people want to start that here on the democrat side. I think that would be a disaster. But we did the right thing with the fundamentals of the economy. They are not. They are focusing on Monetary Policy and its not working but its affecting our Monetary Policy. Neil one thing thats come up is now the renewed interest in impeaching the president. It just sort of picked up from the Mueller Probe and now they feel they have a lot more ammunition. Nothing gets done in this environment, period. Whether you are for or against doing so. In that uncertainty, wall street kind of stumbles. What do you think . Yeah. Theres that debate, right. Is the real crisis how we govern ourselves . The democrats are underwater in terms of the legislation enacted. Their policies enacted, i think its trending around 58. It was 61 in the prior congress. Mitch mcconnell neil what do you mean . 58 of the House Democrats laws have been enacted year to date. In this Congress Versus 61 in the prior. So you know, the fed excuse me. Let me back up. The president railing against the fed is i think ineffective. The fed rate policy, we have been asked this for ten years what the fed is doing. Its sort of the United States of amnesia. We have been doing this for a long time. By the way, corporate rates are at 56year lows. Thats how cheap it is for companies to borrow. You can make it as cheap as you want. Its really the macro environment about confidence. The mood elevator is not a fed rate cut. The mood elevator would be trade deals getting done. That would be the tailwind to push the market up. Neil final question, jim. If we dont get a trade deal before the election, then what . Im talking about a china deal. Yeah. I dont think we are going to get a china deal because i think it would give him too much ammunition to either side to criticize him. I think hes going to drag this along. Not only that, the chinese are willing to let their people suffer a lot more than we are. I think they are going to hold pat. I think what the president s going to do, it is an election year, i think hes going to put in a payroll tax cut and it will be really difficult for either side to say no, we dont want to vote for a payroll tax cut, thats something everybody is going to get behind because theyre not going to want to be seen as though the party that voted against it. That payroll tax cut, boy, it will boost the economy a little bit next year and it may be a little bit the little bit of stimulus he needs to get the consumer reenergized and going again, and i think it would be a positive for the economy and for the president. The president has got to know he won 2016 because he carried pennsylvania, ohio, michigan and wisconsin. The chicago fed is now saying for five straight months, Business Activity is going down in a number of those states. Also iowa, indiana, michigan, illinois and wisconsin. Its an issue. Can he get the deal done and what would it look like. Neil what would it look like. After all this, they will want to go through it here. Guys, thank you very much. Theyre not going anywhere. Jim is. Or jimmy. Great having you, my friend, as always. By the way, talk about what the president could have up his sleeve. We are getting indications in his prepared remarks speaking to an audience in the villages in florida, which is like its own country. You have a place there. Anyway, hes talking up not doing the democrat thing when it comes to medicare for all, among some of the things hes warning about, medicare is under threat like never before, almost every democrat in washington has backed a massive Government Health care takeover that would obliterate medicare. His proposal is to make sure we protect the medical standards that we have for americans and the Health Care Industry that is second to none, but without the government institutionalizing it. Its how he says it, how he sells that, because he knows quite well that democrats seized control of the house on that very issue, health care. He hopes to make it a republican one. After this. Do you want me to go first or do you want to go first, brea . You can go first. Audible reintroduced this whole world to me. So many Great Stories from amazing people. Makes me wanna be better. To connect with stories that im listening to thats inspiration. With audible originals, theres something for almost every taste in there. Everything you ever wanted to hear. Our ability to empathize through these stories can be transformational. Its my own thing that i can do for me. Download audible and start listening today. Neil all right. The president is about to sign an executive order thats meant to bring medicare costs down as questions over medicare for all are piling up. In fact, one of the reads hes been talking about, it would be an executive order protecting americans from democrats medicare for all proposals. Obviously, that was sort of tongueincheek but as he arrives at the villages in florida, hes talking to an audience that would be very very much interested in all of that. White house Health Policy adviser for president barack obama and President Trump. Doctor, good to have you. Good to be with you. Neil what do we expect here, this backandforth on whether its medicare for all or more role on the part of the government, its very clear the president feels that republicans missed the boat on this in the midterms because it ended up being a galvanizing issue, one that certainly polls well for them and contributed to their taking over the house. So he doesnt want to be late on this now. What do you think is the settled issue here . Well, what im seeing with this president different from other politicians out there is hes not waiting for all the special interests to line up and approve everything and modify and water it down. Hes moving ahead. Weve seen so much done right now to fix the medicare program, to heal it, to make it more efficient. To cut the waste, standing up for vulnerable populations. Look what hes already done with kidney dialysis patients. Look what hes already done with hiv patients. Look what hes already done with Medicare Advantage. I mean, right now, we are seeing this intense focus on health care by this administration. Neil but hes not for medicare for all. He thinks that would be a sham. So hes incentivizing it, what would he have to do . If you could just speak as a doct doctor, what would he have to do . You have to cut the waste. Medicare for all is a sugar high. We are in the campaign season. People like to make these promises with no financial backing to it. Theres no way to pay for anything like that. Its a broken system. Look, medicare is already running on fumes. So if we are already spending 48 of all federal spending on health care, in its many hidden forms, what are these medicare for all advocates proposing we increase that to, 90 . 85 . Look, we have other National Priorities and if were going to do something, lets cut the waste, create competitive markets, and more people will be able to move into health care by it being affordable. Neil i have Elizabeth Macdonald and david asman with me. I would like them to join in this conversation, what he said there about hes making such important points and its spoton. The journal of american medicine already put out a warning article saying if you do medicare for all, you will remove out of the system 151 billion to community hospitals. They will go into collapse. Hospitals will go into collapse under medicare for all. So hes right about waste, because if you do medicare for all, theres no incentive to cut the waste. It continues to skyrocket higher. Neil the idea was the central entity would be able to use its size. It never happens. It doesnt happen inside the government. Wait. I want to show this trend because its really key. Watch how the retailers are disrupting their 3. 5 trillion Health Care Industry. Walmart, cvs, krogers, waiting for costco to get in. They are setting up their own clinics inside their retail stores, dental care, xrays, health exams. Its astonishing to me how rapidly the retail space is moving into health care. Doctor, the last time there was a full audit done of medicare by the agency that monitors medicare and medicaid, they found 10 waste and fraud. Its a 600 billion, 700 billion program, i dont know what the latest number is, it just keeps going up, that would be at least 60 billion a year thats in waste and fraud by that one system. Can you imagine if we expand that system which is just focused on seniors to the entire country, i would assume, i dont know what you think, but i would assume that that 10 figure would apply so we would be wasting hundreds of billions of dollars a year on waste and fraud. Well, the combined numbers now for medicare and medicaid are actually approaching 1 trillion. Now, if we are spending 48 of all federal spending on health care, do we want to throw good money after bad into a system thats littered with fraud and other problems . No. We need to let competition work. Lets let the free market work and let doctors have what they believe is important, and that is patients to be empowered. Look, these folks that want medicare for all, they have a good heart. I get that. Lets applaud that. But it just doesnt work. Any country thats done it has massively tightened the belt year after year and 10 or 20 years down the road, you have a massively underfunded and Dilapidated Health care system. I dont think we want that. Neil the rap against republicans on this subject is they really dont care about this. They are trying to, you know, respond to the inroads democrats have made with this because say what you will of obamacare and the cost and medicare for all and the clear cost of that, they remember it was democrats who came up with the idea of protecting those with terminal conditions, those with serious diseases, cancer, whathave you, and republicans were johnnycomelatelies to that. How do republicans shake off that image that this is not a near and dear issue to them . I couldnt agree more. Look, obamacare failed to Lower Health Care prices. Getting rid of it does not Lower Health Care prices. It doesnt fix anything. So what we need are real solutions. I think the republicans have been scrambling for a bit and now were seeing this administration move forward without letting the special interests write the rules. Neil but the special interests invarably do. The Insurance Companies do. You can ask anyone with any serious disease. They are the ones calling the shots with their doctors, no one else. You look at the kidney care policy that secretary azar announced. The kidney companies hate this thing, why, because its going to cut the waste and go direct. We are seeing more and more stuff like that through Medicare Advantage, and ill tell you, secretary azar and seema are some of the smartest people i have met on health care. They are doing good work. Neil we will watch it very closely. I want to thank you for fashion the time here. We are waiting to hear from the president of the United States on this medicare plan of his own, again, trying to limit the governments role here, get the republicans back on a page he says should be their issue because they will have a kinder, costefficient approach. Its happened before. Even democrats when they came up with the Affordable Care act were saying as much even though it wasnt affordable. More after this. Announcer fidelity is redefining value with zero account fees for brokerage accounts. And zero minimums to open an account. At fidelity those zeros really add up. Maybe ill win saved by zero im working to make connections of a different kind. Adp helps canyon ranch place the right people in the right jobs, so employees like dave can achieve what theyre working for. This is the family who wanted to connect. To go where they could explore and experience adventure in unexpected places. Who were inspired by different cultures and found that the past can create new memories. Leading them to discover were woven together by the moments we share. For everywhere you go, expedia has everything you need, all in one place. Neil all right. We are waiting to hear from the president. We are going to be monitoring that very very closely. Also googles ceo just sitting down with ivanka trump. By the way, Hillary Vaughn is there in dallas with more on that. Ivanka trump will be a special guest of trish regans i believe tomorrow night. Ahead of all that, hillary. Hey, hillary. Reporter hey, neil. We just saw googles ceo sandar picha, along with adviser to the president , ivanka trump, signing the pledge to American Workers. This initiative started by President Trump last year that over 350 companies have signed on to, including apple and microsoft. Now google. Part of their pledge they made today involves an initiative that would expand an i. T. Certificate Program Opening up the potential for 250,000 job openings in the u. S. Im proud to be here today to sign the pledge to americas workers to take this commitment even further. As part of this pledge we commit to providing 250,000 new training opportunities for American Workers over the next five years. Reporter this announcement includes or part of this expansion involves a 3. 5 million grant that google is pledging to this program to expand it to over 100 community colleges. Heres what the program is. Its essentially a sixmonth Training Program that trains people to be suitable or qualified to apply for i. T. Support positions around the country. It takes six months to train. You dont have a college have to have a College Degree to do it which means you can essentially land a job that makes a median salary of 50,000 with absolutely no student loan debt. This is an initiative that ivanka trump has been spearheading around the country, making sure that training options are available to workers to fill positions that remain vacant. A lot of those positions are i. T. Support positions. And i want to highlight three students that we met today, because when google says that theyre committing today to signing our pledge to americas workers, and creating 250,000 new training opportunities, we have three people who are direct beneficiaries of that who are here today. Reporter neil, i talked to three of those students who have participated in the program and they say it has been a game changer. It allowed them to get involved in the i. T. Industry. Neil thank you very, very much. Meanwhile, look at the corner of wall and broad, the dow up about 60 points right now. Expectations again that the Federal Reserve will come to the rescue and help everybody out, but again, its relying on fewer and fewer arrows in that quiver there. We will see what happens. Also take an update on tesla. Sold a lot of cars, just not as many as most on the street thought and all of a sudden, its getting shocked. After this. 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 im working to make each day a little sweeter. Adp simplifies hr, benefits, and payroll for magnolia bakery, so employees like sarah can achieve what theyre working for. 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. neil all right. We told you about stocks coming back. The flight to quality that we saw, quality or just an alternative we saw in gold has come down quite a bit today. Its still attractive today. Analysts are talking about 2,000 an ounce gold in the next few months. Thats just conjecture out there. Again, not nearly the robust gains we saw yesterday, particularly at this time. Also take a quick look at Interest Rates here. Bonds which we talk about a lot of people say hey, maybe thats our bubble today, tenyear note at 1. 53 , that refers to a lot of people maybe, maybe finding some flight to quality there but not nearly as much as we did earlier today when we got down i believe to 1. 49 . Keep in mind, i think in midjuly we were at 2. 2 or Something Like that. That was then. This is now. Anyway, more issues for some auto makers. Tesla sinking after missing on deliveries. They were good, they were strong, but they didnt meet those expectations here. Then the gm strike that continues to affect sales, or could. A lot of the sales figures we have are prestrike so the 6 uptick there again does not reflect this better than two and a half week outage of workers there that has prompted thousands more to get laid off in places as farflung as mexico and canada. Weve got John Layfield joining us on this and what could be rattling that sector on the day were looking at the Services Sector after the Manufacturing Sector. John, you got to wonder, whats happening with all these sectors . I think its a global slowdown thats becoming evident. Im not sure that the u. S. Can lead the globe anymore because you look at the manufacturing index, we are in a manufacturing recession. Look at the job numbers that we are having this year, if we have 1. 9 million jobs which it looks like we are going to have, the current projection, that will be the lowest that the United States has had in ten years. So youre seeing a slowdown globally. You are seeing a lot of things that you cannot possibly handicap globally. You cant handicap the iran escalation in the persian gulf, brexit, the china trade war. Add all that together, its just uncertainty out there. You have still by far the best economy out there but it is slowing. David the best thing, John Layfield about whats happening with our country, you are now in washington. You are going to take on that capitol. I got to push back a little bit. I think the United States neil brave man, pushing back when hes on remote. David hes nowhere near me. We were the ones that showed the world how to grow because we have been growing strong. We have an amazing jobs market still despite the slowdown. I agree with you theres a slowdown. But the europeans keep trying to do things by overregulating and overtaxing and hoping negative Interest Rates will drive them out of the slump theyre in. Its not going to happen. Theyve got to look to the United States and what we did by lowering tax rates, by getting rid of too much red tape and regulation. We showed them the way. I think we can still show them because theyre not going to get anywhere with negative Interest Rates alone, are they . No, i dont think they are. We are still the light on the hill. Its just it dimmed a little bit as far as growth. We are still the best economy in the world, and to answer your question about d. C. , i feel like i need a shower just coming to the studio here. Weve got a lot of problems. But that adds to a lot of our uncertainty. A lot of whats coming out of our politics adds to that uncertainty. For one of the first times we have Central Banks not working in coordination. They are working against each other. You look at the eu, they are actively rooting against Boris Johnson and the potential Boris Johnson will be successful. You look at whats going on in china, with the United States, its no longer we are no longer in sync hoping each other grows. We are in a trade war. We actually have Central Banks that are not working and that certainly hurts as well. Liz i hear what youre saying, john. I think sometimes i feel like a lot of coolants are needed and perspective. We have been in a record historic expansion, 11 years on. We have had panic attacks, maybe more than five dozen at 5 or more. John is right. Neil in that course of time . Liz in the course of that time. We are in a brave new world of Like Central Bank hand holding, they are the First Responders every time the market has a hiccup which its not the way to go. What im wondering about is this. I think the u. S. Economy will continue to grow. Its just the new normal now, 2. 5 , 2. 25 . Thats what the fed one of them says. John . I think youre right. I think that new normal is what we are getting toward. President trump thought we could get 4 , 5 , 6 growth. Thats hard for a mature economy like the United States to do. Its not as hard say in india where you still have an emerging economy, or in china even though the numbers are certainly fudged but an emerging economy. David we did it in the 80s. We did it in the 80s after the reagan tax cuts. We had about five years there of growth over 4 . At one time we had growth of 7 , i think 1984. If you have the right policies. If you do have stimulus, because we were a mature economy back then, too, but if you have stimulative economic policies, really put in there, you can grow great guns. I think you could argue, david, to push back just a little bit, that the size of the economy has grown since 1980. It is a little bit prohibitive. Remember also in the 1960s after the kennedy tax cut, we had 6. 4 growth, a couple years we had over 6 growth with around 3 unemployment. We have had phenomenal success. I think at some point, though, we also have a problem here with government debt. We are at record spending right now, the most profligate spending we have ever had in our countrys history with the kind of growth we have and the spending we have. At some point we have to pull that back. So yes, if government can get ahead of the debt, government can get ahold of these regulations and the tax code without having to pass free pizza for everybody, i think theres a chance we can grow at a higher rate. Yes. Neil that would be amazing. That would get me to vote for it. John, if i can switch gears with you, if you dont mind. Someone told me you might know something about this subject. I dont know. Wwe, the smackdown is moving to fox on friday. Im wondering, this is sort of, i even see the crowds here every morning ahead of the publicity for this sort of thing. Its very very early in the morning and there are throngs out there. But wwe isnt alone out there. There are new competitors popping up. What do you make of all this . I make of this its the biggest launch ive ever seen. I have been with wwe since 1995 in one capacity or another. I have never seen a bigger launch than what they have done with their partnership with fox. I think its huge. I think the card that is there thats going to be at the Staples Center friday night for in live show with the rock being there, hulk hogan, all these incredible stars that are going to be there, the matches theyre going to have, to me its almost a wrestlemania type feel. Its one of the biggest shows they are putting on. Its going to be an incredible launch. As far as the competition, thats nothing new. Vince mcmahon had this from the 1980s when they first pressed to go nationwide. He was fighting against regional territories. Jim crockett in the carolinas, minnesota, texas. Vince mcmahon had a zero sum game with those guys. He ended up winning that game. In the 90s with ted turner when they went to a global platform. This is nothing new with this new competition. The good part about this competition in the 1990s when we were in what they call the monday night wars with ted turner and wcw, which Vince Mcmahon won, by the way, and ended up buying wcw, created stone cold steve austin and the rock. Im excited about it. Neil when you were bigger than life name, i notice all the video they show of you, you are never smiling. You are always scowling. I know you as a very warm, friendly guy. Which is the real layfield . Am i a nice guy playing a jerk on television . Neil you would know. Its amazing. Just amazing. Thats you. Longer hair back then. Liz throwing haymakers. Neil go ahead. I grew up in west texas, when oil prices were bad, cattle prices were bad. It was a poor area at the time. There were a few rich oil guys then that would drive around in their deloreans. They just rubbed the money they had underneath poor peoples faces. I hated it. When i came up with the character for wwe, i thought if i hated that character as much then, people will hate that character now. Thats what i based my character on, was those people i knew. I was always a bad guy in wrestling. I really enjoyed being that evil persona out there. Neil theres something about professional wrestling that does it, we should apply it to business news. Cover the bond market, its going down, brother. Thats horrible, isnt it . [ speaking simultaneously ] neil john, you were afraid to take on david. I understand that. David next time. Neil were running out the door. We are awaiting the president s remarks on this whole medicare thing. Its a kinder, gentler not medicare for all, we are told the president is proposing here, but to draw attention to the fact that any one of the prominent democratic candidates, what they are proposing is going to cost you a lot more. He will make that pitch in florida in a matter of minutes. But only when i know im taking i love one ng risks. Thats why its important to get screened by life line screening to find out if your at risk for stroke or Heart Disease not knowing. Is a risk im not willing to take life line screening is the easy and affordable way to make you aware of undetected Health Problems before they hurt you. Did you know 4 out of 5 people who have a stroke, their first symptom is a stroke . Thats why we use Ultrasound Technology to literally look inside your arteries for plaque that builds up as you age and increases your risk for stroke and Heart Disease. So if youre over 40, call to schedule an appointment for five painless screenings that go beyond annual checkups. Call today, and youll only pay 149 an over 50 savings. Thats as close as i want to get to heaven right now. Life line screening. The power of prevention. Call now to learn more. On a scale of one to five . One to five . Its more like five million. Theres everything from happy to extremely happy. Theres also angry. Im really angry clive actually, really angry. Thank you. But what if your business could understand what your customers are feeling. And then do something about it. Turn problems into opportunities. Thanks drone. Customers into fanatics change the whole experience. Alright who wants to go again . I do i do i have a really good feeling about this. You cant start a business, you cant find a new opportunity unless you know how to sell. You have to be your best salesperson. A lot of people who started companies or have an idea, they are afraid to go out there and try to start selling it. They think they have to go out and raise money. They think they have to go hire this whole staff of people. The best businesses start off when its just you, you have you start the company, you take that first step, and you go out and find customers. Neil all right. Mark cuban giving his advice on how you achieve the american dream. Sometimes you have to do it starting alone. Cheryl casone in for Charles Payne on all that. Cheryl his comments ring so true for so many people, especially those Small Business owners. I have had so many friends, as have you, that have wanted to do their own thing. They didnt want to work for corporate america. They wanted to make jewelry or open up a yoga studio. These are friends of mine that actually made it happen. Its a lot of work but if you love what you do and you really believe in the course that you want to take with your business, there are so many opportunities. You know, if you go to any of these banks around the country, they are so willing to loan you the money to get you started and get you off the ground, whether you are a veteran, whether you are a mom that has left the work force and you came back into the work force. I mean, theres all these programs out there and so much support i think from frankly the evil wall street, neil, i think its great hes talking about the fact that you can do it, and while you have to go it alone, i think that support system for any Business Owner is important. Neil the ones who have had great success, they all started in the worst of times, when taxes were much higher, the economy was much worse. You can go microsoft, apple, dell, you can do anything cuban was doing, they all start in what looked like the worst of environments. The rest is history. Cheryl tell Liz Macdonald she and i will start a shelter at some point together. Animal shelter. Neil dave and i are doing the yoga thing. That is what we do. David i would like to get into pizza. Neil you have to get into this, people. Lets do this. We will take a quick break. Only in america. All right. In the meantime, we are told the president is coming out to address this crowd at the villages in florida. Hes talking about medicare. Not necessarily for all, but its going to make it about your choice. This is a state he carried in 2016, hopes to carry again. They have a republican governor now. They elected a republican senator in rick scott. The president hopes to keep that going in his favor. And this pitch to an audience that is very interested in what he has to say. We are told the president is going to distinguish what republicans are planning, what he specifically is offering that is not medicare for all. The president of the United States. Well, thank you very much. Special place, really special place, but where im disappointed, i said we could have had 25,000 people if we did it outside. They said did you see all the people outside . They all want your seat. Thats the way life goes. And youre not giving it up. I know you too well. Youre not going to give it up. Please sit down. Lets enjoy it. Lets enjoy ourselves. You got tremendous crowds out there. Thank you. I love your leg. Look at that. He has my name tattooed on his leg. How did you get to the villages . How did you get here . Huh . Thats great. Im thrilled to be here. One of the most famous and Thriving Communities anywhere in florida and really, anywhere in the world as far as im concerned. The villages. [ applause ] in fact, i was thinking about moving to the villages but i just couldnt leave maralago. I couldnt leave it. I got stuck at maralago. I dont know. But this has been a great area for us and its been a great part of our victory. I dont know if we got 100 but it was pretty close, right . Anybody in there didnt vote for us, right . No, we love it. We met the folks that built the villages and that run the villages and theyre out here some place and theyve done a fantastic job. Where are they . Theyre here some place. Stand up, please. What a job youve done. Great job. Great job. And that was started with your grandfather and your father and you folks, and what a great job youve done. You know, my old days, i would have been jealous. Now i couldnt care less about them. Amazing. Its amazing how being president can do that to you. So in my campaign for president , i made you a sacred pledge that i would strengthen, protect and defend medicare for all of our Senior Citizens and you see its under siege but its not going to happen. Today ill sign a very historic executive order that does exactly that. We are making your medicare even better and were not letting anyone, it will never be taken away from you. Were not letting anyone do that. You see these people on the other side, these people are crazy, by the way. Theyre totally crazy. They want to take it away and give you lousy health care. Its pretty incredible. You want to keep your doctors, right . Remember with obama, president obama, right . He said you can keep your doctor, you can keep your plan. That didnt work out too well for those people. 28 times he said hes trying to forget. You better never forget, okay . Never forget. As long as im president , no one will lay a hand on your medicare benefits and thats what were here to do today. This order is the latest step in my administrations drive to ensure the worlds best health care for all americans. Together were creating a Health Care System that protects vulnerable patients, makes health care more affordable, gives you more choice and control and delivers the high quality care americans deserve, and thats what were doing. Were strengthening our Health Care System to a level that nobody thought would be possible. Our economy is booming. Were doing fantastically well. I think it gets a little bit hurt by politics. But our country is so strong and our economy is so powerful that even politics and even when you have the donothings, i call them really the donothing dems. They cant even affect it very much. Weve created over six million new jobs since the election. The Unemployment Rate has reached a 51year low. Think of that. Think of that. Soon its going to be a historic number like so many of the other numbers. 2. 5 Million People have been lifted out of poverty. That means more americans that now have, and thats what its all about, they have a great way of life. They have Affordable Health care options and millions of seniors are enjoying better, healthier and more prosperous retirements. I should be retiring with you. I should be in this audience clapping. But i didnt trust anybody to be standing here because i know what you have. [ applause ] [ crowd chanting ] thank you very much. Its true. I didnt trust anybody. Its very important. And nobodys done more in two and a half years, their first two and a half years, than what weve done. Whether its right to try, whether its tax cuts, no matter what it is, nobodys done what weve done. Not even close. Were delighted to be joined today by a man who is really, really good, he ran one of the largest Drug Companies and really successfully and i took him out. Look, thats where, you know, like thats where the money is. Well, thats where the knowledge is. He ran one of the biggest, most successful companies, i said alex azar, come on out. I want to get you to be the top person in charge of this. I said so let me ask you, how much bigger is this than the company you ran, like hundreds of times bigger. Its a monster. Its a monster. And what a job. Alex azar. You know who he is. Wheres alex . Wherever you are. Alex, thank you. And he works with administrator seema verma who has been so incredible. You have to stand up. What a job. They know the most intricate little quarter sentences, you wouldnt believe it. I said what about this, and they would tell me unfortunately, its always like a little roadblock but we figure our way around. Somebody else who is going to be lowering your drug prices with us in a very very short distance, we are going to be buying them from a slightly different source, a little bit unconventional. Lot of people say im unconventional. Sometimes you have to be unconventional. Alex, when are we going to let Governor Ron Desantis and your incredible first lady, casey desantis, when are they going to be able to do what we want to do . Alex, when are they going to be able to do what we have to do . Soon. Alex says soon. Theyre going to have a big fat beautiful surprise for you. That has been an incredible couple and a great governor and the job theyre doing is phenomenal, and i was honored to be very much involved in that campaign. If he was doing a lousy job i probably just wouldnt have shown up today. But hes doing one of the best jobs in the whole country. Ron desantis. And also, helping ron, casey, jeannet jeannette nunez, your lieutenant governor. Thank you. Thank you. Thank you. Thanks, jeannette. Great job. Florida attorney general ashley moody. I saw you down there. Thank you. Thank you. Thank you very much. And a few warriors we have with us. You know ron was one of our warriors. He was in congress and he was fighting the russian hoax. That was the russian witch hunt hoax. And he was so impressive, that when he said you know, id like to run for governor, i said i would rather keep you right where you are because they will come up with another crazy idea. But im glad i did it. And it worked out well. But we have warriors back in washington and you have five of them right here. Gus bilirakis. Where is gus . Thank you, gus. Great job. The legendary neil dunn. Neil, thank you. These guys are warriors. Ross spano. Thanks, ross. Micha michael walts. Great job he does on television. All of them, they do a great job. They are defending us. Theyre not defending me. Theyre defending us. That was the greatest election victory maybe in history and theyre defending us. And a man with one of the best names in the history of politics, daniel webster. What a name. If i had that name, i would have been president ten years ago. Thank you. Thanks, daniel. Thanks to everybody. Great job. They really are, theyre warriors. They go back and they fight and they fight corruption when you see this going on it is pure corruption. As we gather this afternoon, medicare is under threat like never before, you know that. People running for office, you will not be very happy here. Almost every major democrat in washington back ad massive Government Health care takeover that would totally obliterate medicalmedicare. These democrat policy proposals may go by different names. They have all these wonderful names. Like, [laughter] it will never end. Im sorry i smiled. Fake news is back there. Look at all of them. [booing] they say its terrible. Its terrible, the president smiled. They want me to admonish you. Who said that, lock her up . Stand up please. [applause] im admonishing you, never, ever say that again. That is okay. Sit down. [laughter]. He is admonished. Now they cant do their fake number on us. Thank you. By they may go by different names, singlepayer, socalled public option, but theyre all based on the totally same terrible idea. They want to raid medicare to fund a thing called socialism. Any socialists in the room . I dont think so. Not too many. Nobody . Nobody . Not too many in the villages. Youre not big on socialism down here, right. These geniuses, these real estate geniuses. Everyone of these plans involves rationing care, restricting access, denying coverage. Slashing quality and massively raising taxes. They want to raise your taxes. They also want to have open borders. Some people can come in and do whatever they want to do. They have no idea who is coming in by the way. They have no idea. But you know in these countries, now were getting along great with the countries. Mexico gave us 27,000 soldiers guarding our border. And numbers are way down. 27,000. I want to thank the mexico government, the president. Congressional democrats extreme agenda would destroy our booming economy, very quickly. One of the most disturbing proposals from leftwing politicians, draining health care to finance open borders we just discussed. That is how they want to finance it. Leading democrat pledged to give Free Health Care to Illegal Immigrants. They put foreign citizens who break our laws, who endanger our country, put them way ahead of american citizens like you who obey our laws. I will never allow these politicians to steal your health care to give it away to illegal aliens. [cheers and applause] and now in new york i hear they passed a new regulation if you use the word illegal immigrant, did i hear correctly . They want to charge awe fine of 250,000. In other words, sell your home in the villages because you happen to say we dont like Illegal Immigrants pouring in our country illegally. We want people to come into our