Transcripts For FBC Mornings With Maria Bartiromo 20240713

Here. Good morning. Maria you have gdp, adp, alphabet of numbers and economy that is front and center in the 2020 election, right, lee . Question, theres no question about it, a lot of people are talk how its giving the president so much cover right now with everything that is going on, the democrats have to be careful how they treat this because this is an issue that the American People find dear to their hearts, a lot of Economic Data in favor of the president. Maria if theres one person thats coming across as well as anybody opposite the president would be Tulsi Gabbard and i know that youre a big supporter of Tulsi Gabbard, omid, does she look at the economy as driving force, is that part of her platform as well . Theres no doubt about it. The way she gets there is difference, start with foreign policy, we wasted 6 trillion over 18 years on regime change wars, we have a trillion dollar deficit, but 6 times that have gone to wars have havent made us safer, what can we do with money like that to put in the pockets of the American People and do programs that people say we dont have the money for. She comes across. Its hard for the group of democrats to even touch the economy because its vibrant right now, they dont want to go there, kevin, look at the startup situation, look at the valuations in the private market. I tried to forget and i tried to look at lens of investors, in the history of modern times in politics, theres never been a president that loses mandate when youre full employment, regardless of impeachment or circus or anything else, this president s policies have driven the economy through dynamics i havent seen in my whole investment like, im looking at lens through investment and foreign, while we are under 4 unemployment the chance that he loses the second mandate in my view is zero, whether you like him or you dont. Because of the economic story, also in private market. Absolutely, and i echo kevin, we know each other and i couldnt agree more. The democrats are trying to make about trump the individual, lets see if they try it again. Lee Elizabeth Warren is trying Something Different with economic story, exploit idea of wealth and inequality, shes saying the economy is not work for everyone, thats the story that shes shes tried a number of different messages for a long time, thats the one shes going with right now. Maria ge is hitting the tape, beating estimates on the top line, stock is at 9. 37, bottom line right here, being on the bottom line, pardon, beating bottom line, we go into lauren right here and the stock is trading up, up 2 and a third percent on ge, weve got the earnings at 15 cents a share, we are getting the revenue out as well which locks better than expected but we are watching the stock move as the numbers are hitting the tape and this, of course, one of at one point was the metric to look at for the overall economy, its just not the case anymore, is it . I think ge is actually a crime scene, i dont think the equity has any value, i know its controversial to say that, if i was going to buy this thing i would buy the debt, i can never figure out the Balance Sheet, thats why its been dead money so far. The Balance Sheet is horrific, you cant understand it, so if you will take chance, buy debt, convert to equity but before this story is over. Maria even after asset sales you still feel that the Balance Sheet is confusing for you . Very. I cant find an analyst that can really drill into it and many opportunities in the market, 8 to 9 its where its been, its dead money. The debt is something to look at. This is a company if youre not comfortable analyzing Capital Structures you should stay away from it as retail investor. Maria stock is trading up on the beat, expectations so low in terms of what they can achieve, any win is going to be bid up. You know, i dont know they beat and youre getting 2 , youre being rewarded 2 and the stock has never moved much past during the controversy, i just look at and say its really option, equity is an option that this Management Team can fix over the next 3 years, why take the risk when theres so many other companies doing so well with Free Cash Flows, this is this is like going to las vegas buying the equity. Maria the company also raising some guidance here, maybe thats whats pumping up the stock, we will keep watching ge shares on this beat and pretty active this morning and moving up 2 and a half percent on General Electric. Boeing on the hot seat, ceo muilenberg facing critical questions, concerns that employees had about the grounded aircraft, muilenberg apologizing to families of the victims, watch this. Lock, i practiced law a lot of years, you had your lawyers look over this document and they read a Senior Leader after the crashes occurred saying they lied to regulators, mr. Muilenberg, how in the hell did nobody bring this to your attention in february when you produced this to the department of justice, how did you just read this a couple of years, youre the ceo, the buck stops with you, did you read this document and how did your team not put it in front of you runin with their hair on fire, saying weve got a real problem here . How did that not happen and what does that say at the culture of boeing if they didnt give it to you and you didnt read it and if you didnt say, i want to read and see what happened, your testimony earlier here today, well, we are not sure what they were talking about because hes not at boeing anymore, how did you not in february set alarm fire to say we need to figure out exactly what happened, not after the hearings, not after the pressure but because 343 people have tied and we dont want another person to die, lee carter, your reaction. One of the important things when a ceo is in this position is they really address the issue at hand, i think apology was weak at best, i think ted cruz really got the best of him, everything that he responded from that point forward seemed like it was so overrot with legalese, he didnt really seem to get what was at stake, he didnt seem to acknowledge the concerns that we all have, people are afraid and the buck step with him and i dont think i dont think he did the best job that he could have going in there, it was impossible situation for him to face, but youve got to go in there and talk about all of actions, all of the things youre doing to make sure people are safe now, people are afraid and this is his business, this is his future, i dont think he did a job. Maria so in order to do that by yearend, you will need conviction here and probably more pushback if, you know, if, in fact, they will get the plane back up in the air, what do you think . I dont see a comeback, i think First Quarter is the first maria the company did say year end. Its a regulatory issue, faa, its not up to just them, i would say theres a human tragedy, he failed the test. Hes worried about his personal liability and he has to balance that, with that said its duopoly, its either us or them. I have to be so careful because thats a financial risk to the company, theres a communication risk, he doesnt really go out and show emotion and doesnt say that i get the tragedy, i get the lives impacted and this will never happened, he just failed the test, i think that will have Financial Impact on him and the company. Maria real quick. Is this a structural fix or software fix . The reason stock is bullet proof everybody assumes that its a software fix and will be resolved in 1, 2. So its going to be a really interesting, right now 99 of people say its a software fix, but at the end of the day its structural, yikes. Maria a lot of earnings that we need to talk, facebook and apple reporting after the bell tonight as you see the stocks are fractionally up this morning, other big names, you heard General Electric, lyft and starbucks releasing quarterly numbers this morning, so far it feels like to Third Quarter, kevin, better than feared . I love the earnings, domestically its on entire and internationally its starting to look like it can be in recovery mode and if theres a trade deal the market will not stop and thats why its been bullet proof, people are thinking phase one looks good, phase 2 sometime next year. Maria we will see about the china deal, we are following the bouncing ball but theres definitely optimism, signed at apec on november 17th, check futures this morning, market thats searches for direction a bit, but in the negative column, dow industrials down 9 points, of course, we are wrapping up 2day Federal Reserve meeting today, day 2 of the Central Banks meeting where we are expecting a cut in Interest Rates for the third time this year, 25 basis points, we are also waiting on the gdp, this ts the Third Quarter gdp, out in 2hours time, estimates call for growth, thats way down from what we saw earlier in the year, of course, on gdp. Whats your expectation . I know this is backward looking number, i feel like the gdp is an important barometer. It is also for confidence, its starting to come in a bit, we did have the tax reform that juice the economy, now we have issues that are way down that the fed acknowledges on a global scale mostly based on manufacturing, i still think the growth is there, i tend to agree with kevin, i think the economy is generally strong, lets wait a few more quarters before we run to any extreme conclusions, by in large, i still think its a positive story but things are coming in a bit aamongst every metric, so maria do you worry, kevin, that cap x has slowed down quite a bit, consumer thats showing strength whetherst usmca, managers starting to sit on cash . Yeah, theres been a slowdown on manufacturing, thats evident, the consumer carrying the economy, 70 of it. This number, this data set on a single basis is not enough to be concerned about, we will still end up in 1. 8, 1. 9, maybe 2, averaging out in 12 months, its not a slowdown, not a signal of recession and thats why the market remains bullet proof. Maria we will take a look at the ge numbers, better than expected and the stock is on the move, Lauren Simonetti with the numbers and the analysis now. Lauren. Lauren on the move big time, 5. 4 on the premarket for perspective for the quarter, that just wrapped for ge, the stock is down 15 , we got a double beat as you noted, match, beating on the bottom line by 3 cents a share, revenue shy, stronger than expected, larry now at the helm of ge for a year and he said this, in the press release and this might be whats moving the stock, we are raising our industrial Free Cash Flow outlook again even with external headwinds from 737 max and tariffs, so in the Second Quarter, ge burned through a billion dollars in cash, looks better going forward, he made those comments and also ge makes the engine for the troubled 737 max jet, the company is saying that they are optimistic with the negative news in the backdrop, one other piece of negative news is Industrial Company and you have 2 quarters of contracts manufacturing sector, maria. Lauren all right, lauren, thank you, stock up nonetheless, short break, california in flames, crews are scrambling on getty fire. Also game of world series, we are back with details on that. Managing type 2 diabetes . Dimitris on it. Eating right and getting those steps in . On it dimitri thinks hes doing all he can to manage his type 2 diabetes and heart disease, but is his treatment doing enough to lower his heart risk . [sfx glasses clanking. ] sorry. Maybe not. Jardiance can reduce the risk of cardiovascular death for adults who also have known heart disease. So it could help save your life from a heart attack or stroke. And it lowers a1c jardiance can cause serious side effects including dehydration, genital yeast or urinary tract infections, and sudden kidney problems. Ketoacidosis is a serious side effect that may be fatal. A rare, but lifethreatening bacterial infection in the skin of the perineum could occur. 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Strongve is one of a kind brilliant unbreakable Engagement Rings now 20 40 percent off shop unique bridal styles at zales, the Diamond Store maria welcome back, massive getty fire sparked by tree branch falling on power lines, first ever extreme red flag warnings, fierce winds intensifying up and down the state, thats what we find fox news senior correspondent, live in santa rosa this morning, claudia, good morning to you. Good morning to you, maria, thats right, we are in a critical window right now with this latest wind event but winds really have not picked up yet but expect gust of 60, 70 miles an hour will challenge firefighters on the line working to hold the containment number and keep hot embers from flying, as you mention extreme fire dangers consist, continue to exist down in los angeles where crews on the 650getty fire are mopping up hot spots and making sure blaze doesnt roar back to life, Surveillance Video shows the moment it started early monday morning when high winds blew a branch into a power line. This was simply put in act of god, the tree branch far enough to spark cause off the line which is intact but you can see the damage on it, most likely caused the sparks to fall and begin this fire and then we were off to the races. Utility companies have been turning off the power to prevent these kinds of fires but in Northern California another round of blackouts has people fed up, some have been without electricity since saturday and are having to search for places to charge their phones, get gas, buy food and ice, many businesses without generators have had to close creating hardships across the board. Everybody who is losing money so its not a good situation for anybody. Yeah, its a safety issue too because cell towers are out of power and and that has many residents concerns that they might not get Text Messages warning them that they need to evacuate if the fire continues to grow, it has now grown more than 76,000 acres and just 50 contained, a week after it started, maria, in the meantime hundreds of thousands of people are still under mandatory evacuation orders both here and in Southern California as well. Back to you. Maria we will get back to you. Coming up uber and lyft standing together to fight california laws. Waiting on the Central Banks decision over china trade, market this is morning, we are going preview the fed meeting when we come back [ applause ] thank you. Its an honor to tell you that Liberty Mutual customizes your Car Insurance so you only pay for what you need. I love you only pay for what you need. Liberty. Liberty. Liberty. Liberty. Wheeveryone is different. Ta, which is why Xfinity Mobile is a different kind of Wireless Network that lets you design your own data. Choose unlimited, shared data, or mix lines of each and switch any line, anytime. Giving you more choice and control compared to other top wireless carriers. Save up to 400 a year when you switch. Plus, get 50 off when you buy any new lg phone. Xfinity mobile. Click, call or visit a store today. Maria busy day for markets this morning, earnings, Federal Reserve decision on Interest Rates which we will get this afternoon, and Third Quarter gdp, futures ahead of that are negative fractionally speaking, s p flat by down by 1 point, trade agreement between u. S. And china might not be completed in time for next months meeting between President Trump and president xi jinping in chile, joining us peter anderson, good to see you, peter, thank you very much for being here. Youre welcome. Maria with all the backdrop in terms of the economic story, how do you allocate capital . I think the china trade situation will eventually get resolved. We have full employment now, but imagine if we do have a resolved china dispute how much more enthusiastic u. S. Companies can become. Just turning onto usmca that maria had mentioned in passing, what do you think that impact will have on the markets, i was on the hill yesterday and democrats i spoke to said the farmers and constituencies love it, the units are against it. One, how do you handicap the usmca and 2, does get passed or doesnt get passed . Well, im on the side that i think it will get passed because even though the unions do have power i think the logical thing to do is to pass that bill and when that does pass i think as i was saying before, employment, more Capital Expenditures that will fuel more growth in this country as unbelievable as it seems because right now i think we are doing exceptionally well, the fed is wrestling frankly if we would do any better and i think Many Companies are on hold because they are waiting for that corral spring to unleash which would be when the china trade situation does get resolved. Peter, let me ask you about the coil spring, what matters most in Big Companies and Small Companies doing businesses in china, two things, it protection which we dont have in phase 1, access to middleclass market which we dont have in phase 1, how long is it going to take to get those two . Right, right, you know when this was first announced, the whole issue with china trade i think we were all you know, negotiating with china takes more than just jumping on or airplane and reading brochure of culture, im not losing the optimism because it makes logical sense for both sides to work out a mutually agreeable arrangements. Maria we will see if they can put that enforcement mechanism, thats the key, they need to have some kind of an enforcement mechanism to ensure china doesnt break all the promises like its done in the past, i understand that what is theyre negotiating right now and they are negotiating in terms of phase 1. Usmca im hearing positive things, even democrats we had henry who said, his quote, we will pass it this year, we will see. Apple and facebook will report earnings after the bell today, Analysts Expect apple to report earnings of 2. 84 a share, facebook meanwhile expected to report earnings of 1. 91, revenue of more than 17 billion, peter, what will you do with stocks given the valuation, given expectations of potential more scrutiny from washington on big tech, how do you want to invest around these stocks . Well, you know, maria, i have never owned either one of the stocks and continue to stay away from them, i think there are more opportunities but let me say a couple of things about apple, i jokingly say that having created 11 phones, they have created the same phone 11 times, the reason i joke about that is its just addons, i think they really do have to come up with something creative and im on the sideline particularly because of the tv elements they are watching, thats very high risk, how can you model the success of Something Like that, i stay away from apple and facebook as you said i think the regulatory actions are very, very scary and who knows how those are going to turn out and those are difficult to model as Portfolio Manager you like to take stocks and have pretty good sense of the handicap of whether or not its going to go up or down and those move sideways. Maria tell that to investors who bid up apple, we have the october jobs report out on friday, the economy expected to have added 85,000 jobs in the economy with the unemployment rising to 3. 6 , you all agree that this has lots of noise in it because you have the gm strike, boeing situation in terms of air bus, the boeing situation in terms of 737, is this a concern that job growth is slowing to this number or do you think too much noise in it. Too much noise, doesnt change the outlook, still going to go into next year, 4 uninformation employment, the economy is on fire, no other way to describe it. Maria thank you so much, sir. Youre welcome. Maria fox business will carry Federal Reserve decision live at 2 00 p. M. Eastern, join us for that, make sure you join us friday, coverage of october jobs report, all hands on deck, jobs friday, we love jobs friday. Meanwhile setting scope, House Democrats unveiling resolution, power to make key decisions, we are taking a closer look at that, plus origins of the probe, we talked with lee smith coming up. Then the world series going to game 7 not without controversy, straight ahead, stay with the magic moment. Us. Maria welcome back, good wednesday mornings thank you so much for joining me, wednesday october 30th, top stories right now 6 33 a. M. On 2 the east coast, third caught this year, we are looking at a state of the economy, gdp number at 8 30 a. M. Eastern, join us for that, a lot going on, in the face of all of that earning season rolling on this morning, General Electric with a double beat, ceo larry kudlow says it will add on value to stakeholders. Look at the stock, up better than 7 right now, markets, though, look like this, more of a flat situation for broader averages, s p 500 down 1 and nasdaq up 3 quarters of 1 . S p hit a new high yesterday before snaps a 4day winning streak, the dow finished slightly lower, dow industrials down 19 points at the close yesterday, s p down 2 and nasdaq down 49, Global Markets this morning look like this, the european indices are mixed, cac quarante in paris up 12, dax index in germany lower by 24, in ash overnight, markets lower across the board, it was really on some report that is the u. S. China trade deal might not be read. [reading ready in chile, we are following the bouncing ball of what happens with the china deal, obviously the two sides are in talks and more talks scheduled for this week. Top story this half an hour, impeachment inquiry, House Democrats are lining the next step as adam schiff is being accused of blocking impeachment witness from answering questions from republicans. Hear what they had to say . To coach the witness to decide whether or not, what we we will be able to ask the witness, to not let us ask questions, ive never ever had that and to see someone coach a witness, this isnt the first time, schiff is good at coaching witnesses, he also met with the whistleblower. Joe biden selfbragged about it and flew over there and in 6 hours hes leaving with the 6 billion of our taxpayer money if they dont fire the guy thats looking into his son, if thats not a quid pro quo, i dont know what is, they dont want you to look over there. Maria house plans to hold the vote tomorrow, not on impeachment but on the resolution and the parameters for moving moving the impeachmet process forward. Joining me right now the author of the new book on the best seller book, the plot against the president , the true story of how congressman devin nunes uncovered the biggest political scandal in u. S. History, the author is joining us right now, lee, great to have you, congratulations on the book. Thank you very much, maria. Maria our audience knows how i feel about what went on in 2016 and i talked about it a lot in the last 3 years, do you connect any dots to the fact that they are trying hard to come up with something against President Trump right now and completely ignoring what we already know was some wrongdoing by key players in our intel agencies back in the Election Year in 2016 . Absolutely, here is why people were calling impeachment process, inquiry, i see it as a secret ritual conducted by a cult, i mean, they are doing most of this in secret, i think its worthwhile that Speaker Pelosi as the high of the cult and adam schiff of high priest of the cult and the purpose of the cult is to protect the swamp, the swamp and what the swamp has done and President Trump was sent to the American Voter to drain the swamp and its the role of madame pelosi and mr. Schiff to protect the swamp, what they are talk about impeachment is ridiculous, bears no connection to reality just as russia gate, theres no connection to reality. Maria just like Steve Scalise just said, look over here, nothing to see over here because we know william barr is conducting a Serious Investigation into the origins of russia probe as is john durham, former National Security adviser Michael Flynn say it is fbi manipulated his 2017 interview, your new book the plot against the president say its part of multifaceted conspiracy to destroy flynn even before he joined the president s legal team. Take up facts to what happened with general flynn, he was actually the first person of anybody tied to donald trump to be surveilled. I mean, we talked a lot on the program about George Papadopoulos and carter page but it was Michael Flynn who was the first person who was surveilled, correct . Thats absolutely correct, maria, youve had congressman nunes on the show and youve been covering the story since well before the election, you and i have spoken about this, you have the details of the very well, started in late 2015, early 2016 when they started targeting general flynn, then this rolled into a larger operation against the president , that started to include or at that time candidate trump and it started to include other trump advisers, carter page and George Papadopoulos, and if you look at the specifics of the operation they waged against trump, we see ukraine in the middle of that, thats why i believe its important to look at what is happening now regarding ukraine and the procedure taking place on the hill as continuation, its not just its not russia 2. 0, its the same thing, they are continuing the operation and has offensive purpose to take down trump, to protect the swamp, but theyre also defending against what they did, i entirely agree, theyre quite concerned about what u. S. Attorney john durham is doing, they are concerned about what general flynns lawyer powell has turned up and worried all along on what congressman nunes have dug up. Maria for those people who may not be so closely, you know, watching this and like you are, like i had been as well, in very simple practical terms, tell us what this cabal of people did it and whey they did it . Well, they targeted the trump team, i mean, i think i think the essential point and one of the important point my book makes is we talk about the fbi and the doj and the bad things that people did in Law Enforcement, thats absolutely true. One of the most important things to keep in mind, though, however, is that the prime beneficiary, primary beneficiary of spying on the Trump Campaign which is what the fbi and doj did, they spied on the Trump Campaign to try to find an october surprise, the primary beneficiary of that was hot the fbi, was not the department of just, it was the Clinton Campaign, in fact, the Clinton Campaign got the fbi to break into the Trump Campaign, to find an october surprise, to destroy trumps candidacy after the election, thats when they rolled into a coup. This is very simply one Political Campaign trying to destroy the competitor Political Campaign. Hillary clinton trying to destroy donald trump and hillary had incredible sources and partners because obviously her husband was president and they have the clinton machine, how far up the lines do you think this goes because every time i ask people and i do this all of the time, what do you think the master mind is, all of the attention goes to the cia because we know it was really the cia that would be able to get all of the international diplomats, quote, unquote, like alexander and josef, how far up the ladder do you think it goes, is it john brennan, is it president obama . Well, i mean, we certainly we know, we know that u. S. Attorney durham is certainly looking at the cia, i imagine weve heard former cia director john brennan saying hes supposed to be interviewed, i make the case in my book certainly in a chapter that congressman nunes, he titled the chapter obamas dossier which is what he calls the assessment in 2017, obama asked for this and brennan used it as steele dossier to set up donald trump by blaming that donald trump won the presidency, won the election not by, not by virtue of American Public but rather thanks to vladimir putin, this has created a tremendous amount of problem and we even heard former director of National Intelligence James Clapper saying that that Intelligence Community assessment has led to all of the Different Things weve had today and that was ordered by barack obama. Maria pretty extraordinary that this big lie of coordination with russia is still going on and Hillary Clinton told Tulsi Gabbard a russian asset. Meanwhile, is it fair to say that she actually did collude because her Campaign Paid for the dossier and the dossier came from russia . Certainly one of the scandals is that theyve got Law Enforcement, certain section of Law Enforcement to help them spy on the Trump Campaign, i think the real lasting damage thats been done here is that Hillary Clinton paid for a Conspiracy Theory that has been injected into the American Public, we have been living with this for more than 3 years, thats what the impeachment process is about, its a continuation of the stigmas that the clintons put into the American Public sphere starting in late 2015 early 2016. Maria great to have you on the show and congrats on the book, lee smith, check out the book, the plot against the president. Coming up down to the wire, the world series taking all the way 7, now without controversy, thats next. Maria welcome back, Fiat Chrysler in talks again. Cheryl csa group, the combination would create auto giant with 50 billion, pulled out an agreement with renault back in june. Well, Johnson Johnson disputing fda finding that baby powder had traces of asbestos in it, test bid the fda found no asbestos, fdas findings prompted Johnson Johnson to recall 33,000 bottles but j j says additional tests also confirmed the product doesnt contain asbestos, right now its up 3 in the premarket, and then we will be watching tonight, im sure, because the world series is headed to game 7 after an emotional nationals win last night in houston, their home turf, the nationals pulling up demanding performance, 7 runs, taken out, the game was not without controversy we should add when shortstop trey turner called for interfering at first base, emotional and heated on the game last night. 8 00 p. M. On fox. He got no matter what happens tornado, you to hand it to the nationals, favorites going into the series, they have rocked it and theyve done it on the astros home turf, you have to say pretty amazing. Maria yeah, amazing. Cheryl, thank you. Cheryl you bet. Maria made in america, a company keeping customers cozy, the source of unique apparel may surprise, made in america next. O take advantage of all the benefits you can get. 2 3 of employees said that the workplace is an important source for personal savings and protection solutions. The workplace should be a source of financial security. Keeping your people happy is what keeps your people. Thats Financial Wellness. Put your employees on a path to Financial Wellness with prudential. Performance comes in lots of flavors. dramatic orchestra theres the ampedup, overtuned, feedingfrenzyof sheetmetalkind. And then theres performance that just leaves you feeling better as a result. Thats the kind lincolns about. 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Call now to start your membership or visit lifelock. Com tv maria welcome back, we are celebrating made in america as we always do, my next guest turned family inspiration into a sustainable direct to consumer fleece wear business that keeps customers warm year round, joining me right now chief executive officer lauren stevens, chief operating officer kathy. Before we get to these product that is you brought, tell us how you did it, how did you start this company, was it your own money, tell us how you did it . We are selffunded from start, we thought there was a gap in the market for fleece to thing, we thought we need to elevate the fabric and make it stylish. Maria how fantastic. You opened in new york city this year, rotating popup store at the hudson yards mall, is it going to be just popups or you get this online . Right now we are all direct to consumer, we do popups as you mentioned in brooklyn, im sorry, in new york and we have one in boston as well. We are really progressing online right now so we will maintain that, at some point down the road might be an opportunity to touch and feel our maria okay. Brick and mortar store maybe on the horizon. Maybe down line. Yeah, weve been successful direct to consumers so far and company through instagram and community on social media and its just the power of instagram is truly amazing and the women that follow us are super dialed in, they are loyal, they love them, we almost have developed friendships with some of them and allowed us to grow a company and theyve been just so supportive. Maria i love the fact that you produce in brooklyn. Yes. Maria you are women owned and operated and youve got a product that we all love. Youre right about instagram, i love instagram. This is one of your best sellers. Everything is named after a town in brooklyn . I love. This feels really cozy. Thats one of the best sellers, our fabric allows it to stand up really well which differentiates from other fleeces, i think, flagship look, people see friends they are wearing, we hear customers and hearing that from a lot of people. Maria whats the difference Something Like this to Something Like this, this is also one of your best sellers. Turtle neck is cobble hill turtle neck. This is a little bit more soft, cozy, like a teddy sleep kind of and Caramel Color with nice oversize hood and you can throw this over on pretty much everything. Maria what do we know about pricing . So best sellers are each 158, our prices range from 78 to just about 200 for some of the others ones. Maria okay, have gotten a lot of whats been the response from customers . Customers are loving that they can wear this from morning to noon tonight no matter what the the day entails. Im wearing this now and going to my kid halloween parade and im not going to change. You feel like you go from all the situations in life and you dont need to change and feel polished and put together. Maria we talk about tariffs all of the time, how hard it is or expensive for you to be producing in brooklyn and not having to deal with a having a cheaper manufacturing plant in mexico or in china . Yes, weve seen a small impact due to tariffs, we are determined to sale in u. S. Maria thank you so much, ladies. Thank you. Maria we will be right back. Imagine a world where nothing gets in the way of doing great work. Where an American Icon uses the latest hr tools to stay true to the family recipe. Where a music studio spends less time on hr and payroll, and more time crafting that perfect sound. Where the nations Biggest Party store can staff up quickly as soon as its time for fun. This is the world of adp. Hr, talent, time, benefits and payroll. Designed for people. We can go down this what do you think . Its good its refreshing. At northwestern mutual, this is what our version of Financial Planning looks like. Tomorrow is important, but shes only seven once. Spend your life living. Find an advisor at northwesternmutual. Com. Problems. Nobody likes problems. But why is that . At ibm, problems actually inspire us, to fix things, to change things, to push the world forward. Which is why so many people who dare to take on problems work with ibm. Maria welcome back. Good wednesday morning, everybody. Thanks so much for joining us many im maria bartiromo. It is wednesday, october 30th. Your top stories right now. The economy in focus today. Were getting the first look at the Third Quarter gdp this morning, comes out at 8 30 a. M. Eastern. Economists are expecting growth in the Third Quarter of 1. 6 . We will also count down to the Federal Reserve decision today. Were expecting an Interest Rate cut by the fed many. The third cut this year. We will get that news at 2 00 p. M. Eastern this afternoon. Meanwhile, earnings season rolling on. General electric with a double beat this morning. Ceo larry kulp says he remains confident it will unlock value for ge shareholders as their transformation accelerates. Look at the stock. It had been up 7 out of the gate when the numbers first came out. It is up 5 right now. Technology in focus after the close, apple and facebook are set to report their Quarterly Report after the close. The stocks are higher this morning. Investors are on edge. Futures are a little changed to lower. Dow industrials down 4 points, s p flat, nasdaq just went into positive territory, up 2 andahalf. The s p 500 hit a new intraday high yesterday before pulling back and snapping a four day winning streak. The dow and nasdaq finished slightly lower yesterday. Take a look at european indices. Fq100 is down 6, cac is up 14 and the dax in germany lower by 22. In asia overnight, it was red across the board. There was a report that the u. S. China trade deal might not be ready to be signed in chill e next month. The plan is to sign it november 17th. Well see about that. The shanghai composite down half a percent. Warner media is giving details on a the new hbo max service. How it stacks up against the competition. At t Parent Company is down a fraction. All those stories coming up. Joining me to break it down is amid malik, lee carter and kevin oleary. Great hour so far. Great to see everybody this morning. Hes whats on your mind. Im loving earnings. We keep trying to bring them down each quarter and every quarter we exceed the estimates, 70 of the companies have beat them again in this cycle which is great. I think at the end of the day, we all await the outcome of these negotiations with china for the next leg up. When that happens, we dont know. If they dont sign on the 17th of november, id be disappointed with phase one. Maria you wouldnt know it if you were in washington that this is one of the most important issues because its all about impeachment. Its all about impeachment, 24 hours a day, seven days a week, thats all people in the media and in the beltway are talking about. Its not what people outside are talking about. People are living their lives, goofeeling good about the econo. The democrats have to be careful how they plays this right now. Maria i think voters are going to say they didnt do anything, wheres usmca, wheres china, and vote many of these people out in 2020. Whats the point to you . I totally agree. You cant have domestic policy undermine international negotiations, thats what were seeing right now. If you get usmca and a china deal, youll have the market continue to rip and the economys going the go gang busters. Maria weve got fed decision day, gdp and the adp, well get the jobs numbers today at 8 15. All thats coming up. Our top story this hour is the boeing 737 max crisis, ceo Dennis Muilenburg is facing scrutiny from senators this week in the aftermath of the fatal crashes within five months that killed nearly 400 people. The first hearing yesterday before the senate came one year to the day after the lion air crash in indonesia, the first of the two crashes. Muilenburg off poll jived for the companys mistakes. Regulators around the world should rigorously scrutinize the max and only approve its return to flight when they are completely satisfied with its safety. Weve made mistakes. And we got some things wrong. Those pilots never had a chance. These loved ones never had a chance. They were in flying coffins as a result of boeing deciding that it was going to conceal mcast from the pilots. I can tell you that we have a respectful relationship with the faa but we do have our differences of opinion sometimes. But we discussed those. We work it out on how were going to comply and its not a cozy relationship. Its a professional relationship. It is disconcerting to hear someone who is to be the leader of a company to say i wasnt a aware or i didnt know or hadnt read that, nobody made me aware of that. I depended on that. You know, we call that passing the buck. And it is your responsibility if youre going to lead the company to have that awareness. Maria that of course was ten sigh senator, tennessee senator marsha blackburn. She joins us now. We saw that sound bite of you questioning Dennis Muilenburg. What was your overall reaction after you heard him speak and the entire testimony was over . Yeah, you know, after sitting through the hearing yesterday, i felt like that what had happened was boeing tried to manipulate or rig the system to get an outcome that they wanted. When they went into the simulators and i never got a straight answer as to whether they had the same engineers that developed the mcast system developing the simulators, but in those simulators they only used highly trained pilots. They did not use a variety of skillsets and a variety of different pilots from different types of training into those simulators and of course those simulator hours can apply to your flying hours that are required to be a pilot. So that was something thats was of concern to us. The fact that he seemed to be unaware of what had transpired, you would think after the first crash they would have conducted a solid review and would have said, look, we know there are bugs in the system, we intend to fix them in 2020. Why wasnt it fixed immediately . Maria so is this a structural issue . Is this a communication issue . Or just human error . Maria, i think it is a structural issue, a Communications Issue and a cultural issue. As you well know, every corporation has a culture. They have a culture that seems to permeate through this company as to what their value set is. In my opinion, what it seemed to us they were trying to rush this product into the marketplace. They had concerns from their chief technical pilot and from some of these highly skilled test pilots and that that was not communicated to the leadership of the company and the emails that have been revealed, the Text Messages have shown there was that communication issue and then transmission of that information. Maria i want to get onto the impeachment inquiry. Real quick, before we leave this subject, is there anything you want to make sure that you hear today in this day two of the boeing testimony from your colleagues in the house . Right. They need to speak a little bit more to the simulator issue, how that simulator was built out, first of all, and then the pilots that they put in there to pull the testing information that was then transmitted to the faa. Maria so based on what you know today, do you want Dennis Muilenburg to step down . That is going to be a decision that shareholders are going to make. I am incredibly concerned about what transpired with this situation and that the first event occurred and then there was a second there are 346 people that lost their lives and it is just heartbreaking. Maria senator, let me move on to the impeachment inquiry. House democrats are outlining the next step, theyre planning to hold a vote tomorrow on the resolution and the parameters for moving the allot process forward impeachment process forward. In a practice at this l call way, can you practical way, can you explain what this means. What this means is theyve been caught conducting a Kangaroo Court in adam schiffs basement and pelosi has finally said we need to take a vote on something. So were going to have this resolution and it says, you know, if adam schiff wants to call somebody in and do it in public, he can. But he doesnt really have to. And she is just trying to find a way to now legitmize an investigation. Theyve been called out. Theyve been caught. They developed a Kangaroo Court. Now theyre trying to put legitimacy around it. What theyve done is an illegitimate investigation in the house. Maria i dont understand. Youre saying that youre going to have this vote and it says ad dam schiff can do things publicly but he doesnt have to. They that is basically what the resolution will do. You can do it but you dont have to do it. And i maria why would he do anything publicly . Hes doing everything behind closed doors. Why would he do anything publicly if its a choice. Theyve said from day one they were going to impeach donald trump and theyre trying to find a way to do it. They tried votes in 2017, 2018, 2019. The Mueller Report was supposed to do it for them. It didnt. They said oh, weve got a phone call, okay, now we need to find some people to put some teeth in the phone call. Oh, were doing these hearings. Oh, we better conduct a vote because its not an impeachment inquiry if we dont have a vote. Shes been called out on that. So now shes trying to put this horseback in the barn, if you will. And tennesseeans arent buying whawhat nancy pelosi is saying. Maria the republicans and democrats are sparring over the testimony of. Al ex an deeofalof alexandew republicans for questioning his patriotism. Heres what she said. I want to Say Something else about whats bein been going one last several hours and last night, and that is shameful. That is questioning the patriotism, questioning the dedication to country like Lieutenant Colonel vindman who will be coming today and others who have testified. We need to show were better than that as a nation. Their patriotism, their love of country, were talking about decorated veterans who served the nation, who put their lives on the line and it is shameful to question their patriotism, their love of this nation and we should not be involved in thats process. Maria so what about that . And unfortunately, we dont really know what he said because its behind closed doors, so whether we questioned it or not, we really have no idea. Youre right. You do not question somebodys love of country and their patriotism but i want to circle back to something i heard lee say in my ear piece. And this is the comment she made about people are living their lives. That is so true. When you look at a state like tennessee, unemployment is down to 2. 3 . And you have people working. You have jobs that are taking place in middle tennessee, 2. 3 . Maria they dont want to see this fighting. This is a robust economy. They are not paying attention to the dc story of the day. Theyre paying attention to the story of their lives. And they are so excited that the economy is good, that there is jobs opportunity. College kids are getting jobs. Graduates are getting jobs. Mom and dads are getting pay raises. Maria is this partly to muddy up the waters, because we know that william barr and john durham are zeroing in on what took place in the origins of the russia probe. Youre in the judiciary committee. Are you going to have hearings in terms of bringing people down to find out what the heck went on and how they came to come up with donald trump colluding with russia in the first place . We look forward to hearing from mr. Horowitz, mr. Barr, mr. We look forward to finding out how this thing got started in the first place and we look forward to the hearings and having the American People see those from beginning to end. I chairman Lindsey Graham is going to be doing it in public. Hes not going to be doing it in the basement of the cap capitol behind locked doors and a leaking out only p what he wants people to be aware of. President trump deserves to have the ability to he defend himself and have you due process. Maria senator, good to see you. Thanks so much. Coming you, border arrests doubled, hundreds of thousands of migrants apprehended this year. Whats driving the surge, next. Does your broker offer more than just free trades . Fidelity has zero commissions for online u. S. Equity trades and etfs, plus zero minimums to open a brokerage account. With value like this, there are zero reasons to invest anywhere else. Fidelity. Audreys on it. Eating right and staying active . 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Lower a1c and lower risk of a fatal heart attack . On it. With jardiance. Ask your doctor about jardiance. Maria welcome back. Arrests at the southern border hit the highest level in more than a decade. Cheryl casone on headlines now. Cheryl thats right, maria. Border patrol agents arrested more than 851,000 migrants in the 2019 fiscal year, more than double the Previous Year when agents caught fewer than 400,000 people. The surge was driven largely by Central American families that were seeking asylum in the u. S. 76,000 of those were apprehended and those were unaccompanied children. Well, a former juul executive is suing the company, claiming that it knew 1 million nicotine pods were contaminated when they were shipped to retailers earlier this year. The executive alleges he was fired one week after he asked juul to recall the pods or at least warn consumers about the problem. The suit was filed on the many same day that juul said it was laying off 500 of its workers. And then switching gears, hbo making some waves in the streaming industry of. The Entertainment Channel announcing its new platform, hbo max. Its going to debut in may of 2020. Its going to cost 14. 99 a month. The service is free for current hbo customers. Game of thrones fans, listen up. Hbo max is going to offer the prequel series to the mega hit. Great. We get to do more game of thrones stories. Hbo announced a deal to be the online home to south park. So how many channels are we willing to pay for, how many apps are you willing to pay for. Maria what do you think . Any time you see one of these happen, thats a negative ding on the netflix stock. The more competitors that come into the market, the more theyll pull away from he netflx and they lose the licensing of content. Now they have to get the content origination business. Thats very expensive. Other people have an advantage because theyve been doing it for many years. This is going to hurt netflix stock. Maria i think disney with its library of content from marvel to lucas, pixar, and now fox, how do you beat that . Netflix is going to have to spend 13 billion every year for original content. I think the breakout story in that is 500 million for south park. You want to be in the content business and just have this bidding war. You need to own the for matt. Thats what that format. Thats what that tells me. Thats whats going to occur. Youre going to have such extreme cap ex. Im not sure thats worth 500 million. You would rather make the content and let everybody bid you for it. Maria i dont know about the value of the content but, man, have they been good on china. [ laughter ] maria theyve been terrific. They really have. Maria when we come back, investigating amazon, thousands signing a pet for congress to probe the companys ring surveillance system. Inside the legal battle next with judge andrew napolitano. And thousands calling for a Haunted House to be shut down. 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[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 maria welcome back. So now thousands are calling on congress to crack down on amazons ring cameras. The group fight for the future organized a petition in response to amazon partnering with you Law Enforcement across the country to share ring camera footage. The Deputy Director of the group said we cant trust amazon to do whats necessary to protect us. Joining us right now is judge andrew napolitano. This is an important story. It has to do with facial recognition. This is a story of if you buy the product from amazon or anybody, amazon could Service Somebody elses product, where you can see someone on your iphone who is at your front door and you can tell them take a hike, call the police, tell them where to drop off the package, that is obviously stored in a cloud and local police are getting access to the cloud. So theres two questions here. One is a delicious bit of irony. Who would expect the congress to protect our privacy. Congress writes laws that allow the government to invade our privacy all the time. The other more serious observation that i have is that this is not an amazon problem. This is a problem with the police. So local municipalities can say to their police department, youre not going to get this information about people in this town from amazon unless you have a search warrant because thats what the Fourth Amendment requires and you took an oath to uphold the constitution like the rest of us. So i think this group, though i share their values, is aiming at the wrong target. Its not amazon because theyre in the business of selling data. Theyll sell to anybody that wants to buy. Its the police who dont have the right to acquire this. Maria oftentimes, even on my block, when theres a robbery, when theres a question about someone being around, police will come to my door, neighbors doors, say can we look at your cameras. How is that different . I guess this video is in the cloud and they have access. You have the right, knowing you, you would cooperate. They still have to subpoena for the data. They they have to go through the process. They have to ask in the traditional way. Well, under the law, in order to he get this information they have to have a search warrant, a search warrant requires probable cause. As they did in old days when they looked at surveillance camera. This group ponte pointed d they dont get the search warrant. They say whats it going to cost. Wheres the money coming from . To marias example, you have the right to say im not going to show you whats on my front door and then if they can show probable cause, they can subpoena it. They dont have to subpoena it from you. They ca can subpoena it from yor server. Maria i wonder if Law Enforcement has access to all the cameras that you see all over the place, even on private homes. Can they just turn a button and like turn on those cameras . How accessible are those cameras. My friends in the Intelligence Community tell me they have access im holding up my iphone to everything thats in there. Whats in here . Financial, medical . Legal, professional. Intimate. Without a warrant. Under the constitution they have to get a warrant but because their intelligence and not Law Enforcement they take the position they dont need the warrant. If you know this and its disclosed and its transparent in the market, let the market decide. If you tell me everybody can watch me on the phone and i still wish to carry it for screeconvenience, its the mark. This particular camera is getting popular because Law Enforcement is recommending it for this very reason, saying that they can get this kind of information. Its a shark tank deal. It first appeared on shark tank. It was sold to amazon for 1. 2 billion. I wanted the deal. He wouldnt give it to me. I could have owned 20 of this thing. He showed up on shark tank on this. The nuance hes making, the distinction hes making in the contract format where its between you and the private business, i agree about market forces. Here, the federal government is coming into the private contract and a usurping that data. And shining the light of transparency on it and let us know and let the market decide. All of this intervention by politicians, deciding what feature sets technology should have, it smells like france or germany. Thats a fascinating free market argument. If they say were going to protect your front door but were going to share this information with police, its my choice. In order to have the protection, yoi have thoughto reveal thingsi might not want to reveal. Maria its a slippery slope, to have access to everyone who comes to your door. Where i dont want to go is hi, im from the federal government, im here to help you. Ronald reagan said those are the nine most dangerous words. Maria coming you up, facebook earnings in foes cuss, the company focus, the company reporting numbers after the bell tonight. Whats at stake. And a Halloween Costume leader is here in the stewed tie studis for you and your pet. Thats why dusty is making an appearance. Back in a minute. You know i love you. Ill always be true. So please, love me do. Liberty mutual customizes your Car Insurance, so you only pay for what you need. I wish i could shake your hand. Granted. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. About being a scientist at 3m. I wanted them to know that innovation is not just about that one aha moment. Science is a process. It takes time, dedication. Its a journey. Were constantly asking ourselves, how can we do things better and better . what we make has to work. We strive to protect you. At 3m, were in pursuit of solutions that make peoples lives better. Maria welcome back. Good wednesday morning, everybody. Thanks so much for joining us. Im maria bartiromo. It is wednesday, october 30th. Your top stories right now. We are on countdown mode to the Federal Reserve decision. Were expecting a an Interest Rate cut today from the central bank. Thats woulthat would be the this year. It should be 25 basis points. Earnings season rolling on this morning, technology is in focus with apple and facebook reporting their quarterly numbers after the close tonight. What you need to know ahead of those numbers. The economy front and center, were getting the first look at the labor market with the adp report coming out in 45 minutes. The estimate is for 120,000 jobs added to the economy in the month of october. After that well get the first look at Third Quarter gdp, economists are expecting growth in the Third Quarter of 1. 6 ahead of all of that, markets are near the flat line. We have turned positive. The dow industrials up 3 points, the s p is up 1 and a quarter, nasdaq currently up 9 points. The s p 500 hit a new intraday high yesterday before retreating and snapping a four day winning streak. The dow and nasdaq finished lower yesterday. Global markets, take a look. European indices mixed today. Fq100 up 1 andahalf points, cac in paris is up 16, the dax index in germany us is lower by 13. The brexit drama continues, Prime Minister Boris Johnson getting his election set for december 12th. In asia overnight, red across the board after a report that the u. S. China trade deal might not be ready for signage in chile by next month. Were expecting the president to meet with president xijinping on november 17th at the ap after c meeting in chile. A Haunted House that is too scary. Find out why some people in tennessee are asking som lawmaks to shut it down. The Worlds Largest cots actual manufacture costume manufacturer is here in studio with the hottest costumes of the year, one of which will be modeled by a special guest. All that coming up. Our top story, facebook earnings. Theyre expected to report Third Quarter earnings after the bell today. Estimates show revenue of better than 17 billion for the quarter, this after the Company Reported it is under fire for free speech concernses. The wall street Journal Editorial Board out with a an editorial this morning, the facebook pressure campaign, taking aim at those criticizing Mark Zuckerbergs statement supporting free speech. They write this, the media anger about the free speech policy is especially odd. Shouldnt reporters want to know what candidates are saying so they can dissect and report on it. He media and political elites think theyre advancing the Public Interest in demanding mrn the political scales. In the process, theyre showing why so Many Americans have lost trust in them. A good op ed this morning. Kevin, your reaction. Im a huge advocate for facebook. The one narrative that nobody talks about regarding this company is how Many American jobs it creates. Most of my companies, and ive got a very large portfolio of private companies now, over the last decade ive invested in their number one spend is on all the platforms facebook allows them to create and acquire customers with. We dont talk about that. We talk about russian elections being rigged and privacy issues. Facebook is the engine of american entrepreneurship. So im getting a little tired of watching the executive apologize all the time and im really sick of having politicians tell me what the feature set should be. None of them understand the market. Dont touch this platform. Its creating jobs for my companies. Leave it alone. Thats my message. I will take the other side of that, just slightly. So i totally agree with you on the free speech stuff and i echo the sentiments of the wall street journal. We shouldnt s ask this guy to regulate content. The tail risk on this stock is the regulatory one. Its about the advertising. Your private Companies Put most of their spend there. If theyre a monopoly and colluding to raise prices on advertising, thats an antitrust violation theyre going to have to worry about 47 state attorneys generalses that are coming after them on this one. Let me push back on that issue. Go back to 1985, the same words were spoken that you just spoke about ibm, the number one Market Cap Company on earth. It didnt require politicians to turn it into what it is today, a shadow of itself. The market did that. We dont need politicians telling us what the feature set should be on any technology platform. The market does the job. The minute its not relevant, people stop spending on it and thats going to happen to facebook too. The last thing i want is somebody to tell me well, i want to separate inp take gram from fume. Instagram from facebook. No, you dont. I need that the way it is for my companies. If people are concerned about privacy, they dont have to use facebook. Were good on the russia stuff. I think antitrust on advertising is a good deal. Ill counter with microsoft. They got pressure from the courts in order to change their behavior. I think thats whats going to happen here. The problem is, when you have exeat r tosser, facebook just aa competitors, facebook just acquires them. We need to be concerned not on russia but with what theyre doing with the data. Why dont you want to whack amazon and google . Why not have politicians decide how they should be broken up or what future sets they have. Youll end up like europe with no technology companies. I think the big danger is its so popular to say were going to regulate these companies, i think americans out there think that this is an easy fix, a lot of democrats especially think its an easy fix and thats the danger right now. I dont think its being thought through. I dont like the fact that the of government thinks they know how to run anything. They should be kept to doing what theyre good at. Let companies speat for customers. Compete for customers. We have a long history of busting monopolies, its for the better of the free market. Maria do you think google is a monopoly with 90 market share. I know you want a competitor in the market and let it work out that way but what about that . I mean the point is, when you look at the spend of a company thats doing lets say 5 million of sales which is my world, we spend money on amazon, we spend money on google, we spend money on facebook and every quarter we analyze where we got our best returns. The market is healthy, competitive. We dont need anybody tellings us how to spend our money. We look at the feature sets the companies develop. They speat with each other. Theres no monopoly in digital advertising. Im debunking it right now. Its not true. I really dont want maria are you an investor in facebook . Absolutely. I have been since the thing went public. Im a huge advocate. Im tired of having a politician tell me well decide whats good for you. Where is the line . Sorry. Where is the line. The per markets the market. Ibm is my best example. It got ripped to pieces. Youre lucky you didnt own that stock. Politicians say dont work on digitization and cloud services. Now they have to buy it. No politician did that to ibm. We dont need a politician telling us what a product should do and how it should do it. Ever. Thats my at tied. Attitude. Thats my attitude. Im pushing back. Maria beijings refusing to spell you out farm buys, it could be a Sticking Point in the trade negotiations. On usmca, the Trump Administration wants direct control of where the caps are made as part of the deal. Beijing, they want the tariffs lifted, they dont want any number in terms of how much agriculture theyre going to buy. It just raises the question about anything. Youve got to keep squeezing chinese heads. Do not stop. These guys dont play by the rules. I live in a horrible world where i get a company, its a hit in america, its an ip we own. We manufacture in china. Two years later its knocked off and i cant protect my ip and theyre selling my product to the chinese middles class and i dont get access to that market. My message to the add a medicine strayings is dont stop administration is dont stop. Keep squeezing until we have ip and have access to their market. Dont stop. I concur and one of the best ways for our government to help our negotiators is to pass the usmca. That gives us leverage in negotiations with china. It improves our trade and our economy while doing so. And it is a massive improvement over nafta. Maria let me ask kevin a sensitive subject, obviously, this is about your wife, linda, previously charged in connection with a fatal boat crash. Theres an update today. She will not be facing jail time but instead a possible fine. Can you talk at all about this ongoing situation . Its a horrific accident. Its exactly that. Nobody wanted this to happen and both drivers of both boats were given marine you violations. Theyre not criminal charges. Out of respect for the families that were involved in this and the people that were injured, i really dont discuss it much because i want the process to just play out and as it should. But i have a lot of respect for their privacy as they grieve. Because its a horrible accident. Just that. Theres nobody to blame. Its sad that it occurred. And im just my heart goes out to those families. And thats what i tell everybody. Maria its a very sad story, youre right. Thank you for addressing it. Quick break and california is on fire once again, incredible pictures. Winddriven wildfires burning up and down the state. Crews are scrambling to contain the flames. The very latest out of california coming up. Then its just too scary, the push to close a Haunted House, some labeling the halloween attraction a torture chamber. Whats making them scream so much, next. Stay with us. Rieu more ha rumor has it. Rumor. Rumor has it. Rumor. You rumor has it. Rumor. Rumor has it that move us forward. Every day, invesco combines ideas with technology, data with inspiration, investors with solutions. Because the possibilities of life and investing are greater when we come together. Strongve is one of a kind brilliant unbreakable Engagement Rings now 20 40 percent off shop unique bridal styles at zales, the Diamond Store anna, do you yes those plans . I just wanted to show you something ive been wor. James r. And associates. Anna speaking. James r. And associates. Anna. [phone ringing] baker architects. This is anna baker. At northwestern mutual, this is what our version of Financial Planning looks like. Tomorrow is important, but youre ready to bet on yourself today. Find an advisor at northwesternmutual. Com. [maniacal laughter] gold. Gold right, uh. Thank you, for that, bob. But i think its time we go with gbtc. Its bitcoin exposure through a traditional investment account. Nice rock. Its time to drop gold. Go digital. Go grayscale. But shouldnt somebody this is be listening . Pression. So. Lets talk. Were built for hearing whats important to you, one to one. Edward jones. Its time for investing to feel individual. Maria welcome back. High winds threatening to spread wildfires in california already raging up and down the coast. Cheryl casone with te headlines now. Cheryl the high winds are putting more residents on alert today for another wave of evacuations. Crews are battling the 650acre gety fire. Theyre making sure smoldering doesnt reignite there. Thats in Southern California. Utility companies forcing blackouts to reduce the chance for more fires sparking. The winds are likely going to really start to whips especially in Northern California today. Well, mattel still has some game. Shares are rallying in the premarket. They breezed past estimates from wall street, earned 20cents a share in the quarter, compared with two cents a year ago. Hot wheels and barbie sales drove up revenue, plus the cfo is going to be gone. There was a big investigation on that. The stock is up 20 right now in the premarket. Finally, this. What is the line between a Haunted House and torture . Thats what one woman from North Carolina is asking. She started a petition to shut down what people are calling an extreme Haunted House. We talked about this before. People, you have to get a physical, you have to sign a 40 page waiver, personally interviewed before you enter the home. The thing can go up to 10 hours. Anybody who finishes makes it through gets 20,000. Of course, nobody has been yet to claim the prize. This thing is so scary that frankly that petitions got like 43,000 signatures, they want to get rid of it, its so bad. Happy halloween. Maria and to you. Looking your scariest, my next guest has the top Halloween Costumes for you and your bet and dusty is here. Lets see if she comes right over. Come here, dusty. Dusty. Come on, dusty. Spooky, scary, skeletons, shout startling, shrilly screams. They just wont leave you be. 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. Performance comes in lots of flavors. dramatic orchestra theres the ampedup, overtuned, feedingfrenzyof sheetmetalkind. And then theres performance that just leaves you feeling better as a result. Thats the kind lincolns about. Maria well, happy halloween, everybody. We are doing the big business of halloween and its not just for people. Dusty has her costume on this morning. Americans are expected to spend 490 million on their pets this halloween according to new report by the National Retail foundation. It. Is also predicting that americans will spend 8. 8 billion on halloween for themselves. So joining us right now, the king of the business, rubys Costume Company coowner and executive Vice President , howard beige. It is great to have you. Thank you so much for having me. Maria thank you for joining us. Dusty is not sure about halloween. Shes only one. She has this super woman costume on. Thank you for that. Tell us about this is your super bowl of the year. Oh, yes it is. We all look forward to tomorrow. Youre going to see some of the great costumes out there this year. Maria tell me about some of the big costumes, most popular this year. If we look at the number one costume this year is actually spiderman. There are several different varieties. This is far from home, the red and blue suit. This was from the Academy Award winning movie, into the spiderverse. Maria thats a great one. And of course, the iron spider from avengers end game as well. So youre going to see several different spidermen this year. Maria what are the prices of those Halloween Costumes. These typically retail for between 20 and 25. Maria do you really see a lot of costumes for pets . This dusty, my audience knows this, dusty is a he rescue. I took dusty in in february of this year a all due t all duo petco foundation. These a little more than one. Can you imagine, some person actually abandoned her in the streets of houston. I mean, it was just then she got sick. Then i took her back and took her in and shes my best buddy right now and shes likes the super woman costume. How often do you see pets wearing costumes . Today you do see, particularly for halloween. Maria shes likes the costumes over there. Theyre members of the family so we have the same theme that the family will dress up as. So if you see the whole family dressed up r, lets say in wizard of oz, youre going to see the dog dressed up. Maria what are the costumes over there. Youve got trex from jurassic world. Maria thats what dusty doesnt like. Its a great costume, inflatable costume. Then penny wise from the movie it, chapter two. And scoops ahoy from stranger things. And joker. Maria she doesnt like joker and trex. These are popular this year. Maria tell me about the company and how you pinned it onthe Halloween Costumes. That has to be hard. The company was started in 1951 by my mom and dad then its myself, there were two brothers and a sister that took over the company in 1972 and we now have the Third Generation in the company. So its three generations and we try to predict what is going to be hot about a year andahalf in advance. Maria wow. We do the licensing. A lot of our costumes are licensed from the major studios. We do all of the licensing, one andahalf to two years in advance. Maria you predicted the joker would be hot. Obviously, the joker is bringing home the bucks in the movie theaters. Lets see the joker there. Joker is an extremely popular costume. Maria that is a good costume. Thank you. An extremely popular costumes this year and it all happened in the past few weeks. Maria whats the price of the joker costume . I like thats costume. The joker costume is 49. 98. Its a full suit, with jacket, pants, mask. Its adult size. Maria do people wait for the last minute to get theirs costumes or do they plan like you do like a year in advance. Typically in this industry, 50 of the costumes are sold the last 10 days. Maria she doesnt like the trex. Sorry. Theres a study this week about millennials buying costumes just for social media. Do they actually go trick or treating or are they buying it just for social media, taking pictures of themselves. The millennials for themselves are actually buying costumes theyre wearing to parties but are big participants in social media. The children of the millennials are dressing up for trick or treating. Maria tell me a little more about the hottest costumes for kids, youve got the kids ones here. The costumes from spiderman and avengers end game with captain marvel, ironman. Maria this is a cool one. Captain america. Maria i like that one. You have the muscle chest. Maria that is so cute. I liv love that one. Superheros like wonder woman and batman are popular and the muscle chest built into the costume. Maria nice, thats good the way you build the muscle into it. You feel heroic. Maria it looks great on them. Going on baby shark was one of the really came out. We do this in every size, from newborn, infant, all the way to adults and pet costumes for baby shark. Maria all right. Ghost busters is very big, jojo and star wars, this is a sith trooper, a red Storm Trooper from star wars. Those are some of the top costumes. Maria the team really likes all theses costumes. Okay. Great. This is fun. Well, happy halloween to you, howard. I wish you a very good one. Thank you so much. Thank you so much manufactur. Maria dusty, i this the costume. Its trex shes having a problem with. Still ahead, waiting on the Third Quarter gdp, the number comes out in 30 minutes time, thats next hour, right here, mornings with maria. Stay with us. Driverless cars, or trips to mars. No commission. Delivery drones, or the latest phones. No commission. No matter what you trade, at fidelity youll pay no commission for online u. S. Equity trades. At fidelity youll pay no commission when i lost my sight, my biggest fear was losing my independence. Mmm. Good. So ive spent my life developing technology to help the visually impaired. We are so good. We built a guide that uses ibm watson. To help the blind. It is already working in cities like tokyo. My dream is to help millions more people like me. Maria welcome back. Good wednesday morning. Thanks so much for joining us. Im maria bartiromo. It is wednesday, october 30 your top stories right now 8 00 a. M. On it be east coast u. S. Economy in focus we are getting first look at labor market about with adp report coming out less than a minutes estimate for 120,000 jobs in october. After that we get a look at the first look of the Third Quarter gdp in 30 minutes time expecting growth 1. 6 gdp Third Quarter out shortly as well countdown to Federal Reserve decision on Interest Rates we are expecting the fed to cut rates a quarter point today that will be third cut this year we are expecting that, today, 2 pm eastern, earnings season rolling on in midst General Electric double beat ceo remain confident will unlock value for shareholders stock up almost 7 right now technology, of course, in focus after close apple fact to report earnings we will tell you what you need to know ahead of numbers as we await the if he had decision gdp futures are mixed you do futures down 5 s p futures up 1. Nasdaq futures up 11 1 2 s p hit new high yesterday before retreating snapping 4 day winning streak dow nasdaq violate lower on the session you can see there. Global markets this morning take a look at ft 100 actually, higher right now 3 points cac quarante up 13, the dax in germany lower by 28. In asia overnight drains across the board take a look, about fractional movers pretty much across the board, shanghai composite down one half of 1 ahead what have we are expecting to be a deal with china, signed in the next month we will see about that, continued mixed signals there our top story this hour earnings on technology, facebook the social media giant out with Third Quarter numbers after the bell estimates show earnings 1. 91 a share revenue 17. 37 billion dollars, this accommodation as social media giant under fire over privacy antitrust concerns, cofounder Andreesen Horowitz author of it book what you do iss who you are been horowitz great to have you thanks so much. Nooek your you believe early investor were in facebook, tell us, about your take on the company today as you watched it grow, from this small unicorn to where it is today. Yeah, you know, my pattern i will be careful not do any forecasting on it anything like that yeah look it started out this is one of the things that is interesting about watching it whole way starts out in social network way to share pictures with friends now under fire about like who is going to win election. Like it is quite a Transformation Company only 15 years old. Do you expect now that these companies have and you guys, you and Mark Andreesen have been so prescient on this student what have has taken place last 20 years are you surprised what has taken place today talking about companies not necessarily just facebook that they are more powerful than they have been before what do you think in terms of their size, and power . Look i think surprised everybody. Just how important it became so fast, how like what it maintenance two billion users an International Company with International User base, people are communicating in ways they never have in particular i think facebooks case you have a Public Square with kind of social norms for thousand people we used to have now two billion people. The norms dont work people dont obey them anyway what do we like then an international community, it is not u. S. Community so it is kind of a situation we have not faced before. Do you expect a bigger regulatory hand for Companies Given under fire for privacy breaches now people like congressional people like devin nunes suing twitter, for you know, censoring conservative speech Tulsi Gabbard suing going same reason. I think that people are you know, people are up in arms, and i think that they are misinterpreting what is possible a little bit like when i read it sounds like, you know, like we can roll back clock on technology and stop social media, now like even if you like blew up facebook or whatever, like social media still going to be there probably going to be in form of 10 cent or you know a company where you really dont have regulatory control so i think you have to be kind of measured how you think about how we get to the future. Then also i think, look it is a systems problem it is not a good versus evil Mark Zuckerberg probably most earnest committed ceo in technology, and you know hasnt taken a salary like a decade, hasnt tan Stock Options not doing it for personal gain really wants facebook to be the right thing so i think, you know the correct way to approach it understand a new phenomenon nom here. I think people agree with you on that the way he came across in testimony last week we as you pictures of him walking in the testimony how do you see china i am glad you mentioned 10 cent how do you see china if in face of this on one hand, 1. 4 billion people in china American Companies want to get there exposure there to pug market youve got rules in china that is communist Company Tracking citizens, and using facial recognition to do that, you are forced to change the Search Engine if google or change the way you do business to you know, appease chinese communists. Daryl morey not a tweet a retweet immediately deleted you see like the furry of the reaction so not something where you used to hear in fact china employs more people to spends more surveying people than on National Defense different feel how you run a society one thing we have to consider is, platforms for communicate like, we hamstring them, and kind of shut down those companies, defeat those you are a own companies than the companies we are going to be using the chinese products and those rules are not rules that i think anybody here is going to like. Mark andreesen years ago was famous for saying software will eat everything. Yes. Unfortunately he was right about that. He was right about that because Software Product for every industry every company, and this is where a lot of growth has been in the private market as well you see so many things across your desk talk about this it is a bit of a roller coaster for ipos with valuations where they are in private markets are things getting excessive in terms of evaluation how do you value what you are seeing and where in particular i want to really get this from you where do you see the growth in the private market at this point . Yeah so you know like i am not one to kind of speculate on whether we are in a bubble or not in a bubble or this or that or the other like i think historically, the tech multiples are not it is not like 1999. Ing having been ceo in 1999 i remember what that was those were off the charts. These are not off the charts. In terms of these of growth in private sector it is very interesting one of the Fastest Growing is sin tech, that is driven by a few things one is that you know the trust that consumers have in banks, just really waned after 2009 crisis younger cohorts 20, 25 years old probably dont have a credit card dont trust banks dont trust that system, and so the good news for new companies is that creates an opportunity for them to go grab consumers in a way you couldnt have before with new products, with products that dont charge exorbitant hidden fees Interest Rates. Is that why you see apple money Tech Companies trying to come out with financial products. Absolutely, i think that, you know, almost in Many Companies that we see are becoming sin tech uber moved into that direction other day. And i think we are going to see more of that for sure. You wrote a book a new book i titled what you do is is who you are. Focus on corporate world how executives can help build a culture can weather any storm financially, the wisconsin climate Business Roundtable saying shareholders are not only ones important stakeholders are more important tell me why you wrote the book the point you are trying to make here. There is a lot of criticism how companies are run these days so forth what i find in my work is that nobody like the tools to how you build a cultures not really that well articulated, like about very hard you are talking about how people biography wh behave when you are not look coulding they show up to meetings on time return a phone call when doing a business deal is it on might have had for price or paper what are behaviors they are not your kpis Mission Statement those kinds of things, how you move that shape that overtime has booeb complex the bigger the company is the faster it grows the more complicated it is, so i thought there was real need to help people, with their issues. At this point what do company ceos need to understand betters . Do you think what we were talking about in terms of Business Roundtable not just about money . Um, you know i think that gets overstretched we have gotten to this world where it is like shakespearean good versus evil something bad happens, that is a bad ceo so forth, but like there really is much more kind of he greek tragedy humans against gods the gods are system the systems get very, very complex you get two billion people, on a social network these kinds of things, so you know, the the thing that i try to help with like how do we make the system better as opposed to how do we cut somebodys head off. I love the fact you said that is one of the hottest areas of growth we are talking about libra with facebook ceo zuckerberg defending critic critic in congressional hearing last week what how should our viewers look at libra versus other currencies crypto world. Start with problem libra aims to solve facebook would like payments money in their social networking system very convenient you can do all kinds of things with good friends Even Exchange money so forth, but money has a problem, traditional money that it doesnt scale beyond a country. Boundary. So the idea with libra is that you have kind of a way to do kind of payments of Money Exchange that is international. They are doing it in a way using a new technology, known as cryptocurrency basically is a software that is not necessarily owned by a company it is just kind of an open source service. Maria it is software. Trust the code. Great tough thank you so. How are you feeling . 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. In the last year, of cybercrime every second. When a criminal has your personal information, they can do all sorts of things in your name. Criminals can use ransomware, spyware, or malware to gain access to information like your name, your birthday, and even your Social Security number. [announcer] thats why norton and lifelock are now part of one company, providing an all in one membership for your cyber safety that gives you identify theft protection, device security, a vpn for online privacy, and more. And if you have an Identity Theft problem, well work to fix it with our Million Dollar protection package. 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 maria quell well october adp due out in moments expecting increase jobs 120,000 spriest in october adp report gives insight into what we are going to expect for Labor Department report the Labor Department report out friday similar expectations dont forget a gm strike you had a boeing situation, 125,000 adp to Lauren Simonetti with more on that looks like fractionally better than expected. A little bit better than expected 120,000 came in 125,000 trends in september, 135,000, in august 157,000 so we are seeing job gains slow down a little bit, of course, this could be looked at as a precursor to the big october jobs report from the government expected to show 85,000 jobs added, in month of october. Maria markets are pretty steady on heels of this number looking at a mixed open for the broader averages betterthanexpected youre thoughts on aadb. Signing jobs generally dont move markets you need three in a row to show a trend i think pretty good stability continue under 4 unemployment these are kind every microreports deal different issues we have to deal with in this print but jobs right now, are looking at we are full employment in america doing quite well about he domestic. Gdp i think last two quarters in a row First Time Since recession, again i totally agree with you, holistically just something to be wire of so many headwinds could be solved quickly if we get some of these deals done. You need to print below 1. 7 on gdp before anybody is concerned about recession the politics versus the environment, i dont see a recession into election, and, therefore, i want to stay long equities. Yeah. That is the way i look at it. Maria h. Maria of course a president nt white house wants market to go up economy to do well got to believe will do whatever it takes to make sure that is steady. No question whenever the market seem to start reacting with trade president reacts there is absolutely no question that president is committed to this economy. And the other thing i think that is really important right now people need to keep that in mind, is that the more democrats are against economy saying recession is coming this economy isnt working doesnt necessarily look good for them. And i also think that people are hearing a little bit of the boy who hypochondriacal wo who cried way, shape or form things are feeling good we are at with regarded low unemployment people in Small Businesses cant find people to work. You have to hand it to policy they deregular lated economy it is deregulation state and federal level getting Small Business virtually to keep expanding wonderful time to be server whether you like trump or dont policy is working. Maria for sure move the kneeled on Economic Growth with deregulation of tax cuts does he wind that back down with trade uncertainty. I think what we will get is slow increase towards a real ip access to Chinese Market that is going to accelerate s p arranges i this could be worth as much as 5 increase on equity values if we had a deal. If you get a deal think markets goes up 15 . Yes, i do. I guess art laffer said get ready for dow 30,000 if a china deal. I dont see deregulation in the state of florida. That is. In the state of california. They think they can make rules in california we will talk about that wreaking when we come back big tech apple geezer up to report earnings after the bell thrive cupertino, california a preview of items analysts are warming, pain is temporary but home run, it is forever how bud light change one fan sacrificed bones to save his beers, that is next. Delivery drones, or the latest phones. No commission. No matter what you trade, at fidelity youll pay no commission for online u. S. Equity trades. At fidelity youll pay no commission ive been a caregiver for 20 years. No two patients are the same. Predicting the next step for them can be challenging. Today were using the ibm cloud to run new analytics tools that help us better predict and plan a patients recovery. Ultimately, its helping thousands of patients return home. And who doesnt love going home. Epstein investigation. Dr. Michael baden former new york city medical examiner on fox friends cast doubt on official cause of death of jeffrey epstein. I think that the evidence points to a homicide rather than suicide. Why . Have there are multiple three fractures hyoid bone thyroid cartilage very unusual for suicide more indicative of strangulation homicidal strangulation. Have new york city prison cell in august facing trial on federal sex trafficking charges involving underaged girls. Well, boeing ceo iss either to get back on hot seat on capitol hill Dennis Muilenburg House Transportation Committee 10 a. M. Eastern muilenburg grilled by you you lawmakers yesterday over deadly 737 max crashes, families victims holed up photos of loved ones during that testimony very emotional day for families. Talk baseball folks world series headed to game seven after washington nationalize beat 72, turner called out umpire ruled he interfered with fis baseman first time postseason history the road team won first six games in best of seven series, remember this guy jeff adams now star of very own bud Light Commercial the guy we couldnt stop watching stopped the home run ball without dropping beers game seven tonight first pitch. , by the way, he has huge bruise on chest. I can imagine ball going fast. Asked is there a big bruise he goes yeah distill there saved the beers. My hero. Jeffrey epsteins stor significant we will talk about that want to look a ot ma the Technology Giant fourthquarter results ratify the bell servers looking it is a iphone sales popularity of wearable devices hi, susan. Good morning. The Biggest Company in the world hitting a record recently reported rults after the bell usually moves last report cards we have gotten a drop expecting a drop in profits for apple today but quarter the quarter they were robert includes 10 days of iphone 11 sales we know several outlets including news reported that apple has to increase its production, in order to meet the what they say is overwhelming exciting demand right now for iphone still makes up 54 , of apples sales we know they have been transitioning shifting to more Services Apple Tv Plus Streaming Service debuting this friday november 1, wearables they are now selling airpod pros, starting today as well hopefully clarity in terms of how well they are doing are they making up for interestings slowing iphone sales we are colloquialisms u. S. China trade tariffs iphones ipaedz possibly facing 15 tariffs december 15 we will hear from tim cook hopefully on Earnings Call airpods, starting in september reminder to you, that we will speak to tim cook for thoughts on earnings today back to you maria that is great. Thank you so much, exclusives coming up today we are awaiting vansed reading Third Quarter gdp economists forecaster being Economic Growth 1. 6 . The number right after the break. Stay with us. Heading into retirement you want to follow your passions rather than worry about how to pay for longterm care. Brighthouse smartcare℠ is a hybrid Life Insurance and longterm care product. It protects your family while providing longterm care coverage, should you need it. So you can explore all the Amazing Things ahead. Talk to your advisor about brighthouse smartcare. Brighthouse financial. Build for whats ahead℠ i am maria bartiromo. It is wednesday, october 30 we have breaking news this morning u. S. Economy we will get the first look at Third Quarter gdp, we are expecting a growth rate of 1. 6 Third Quarter the numbers out momentarily markets right now flat going were it as we await gdp, we are also looking ahead to this afternoons Federal Reserve decision end of the twoday fed meeting happens today 2 00 expecting cut in Interest Rates 2. 15 pm eastern s p up a half point nasdaq up up 1. 9 number betterthanexpected to Lauren Simonetti better better gdp. Keep an eye on markets see how it reacts to betterthanexpected number so the first read that were getting for how fast the economy grew in the Third Quarter 1. 9 better than coupled, but slower than we had 2 Second Quarter 3. 1 in the First Quarter. So this like i said is better than expected but look at numbers on your screen they are not moving, because the question now investors are asking is what does jay paul Federal Reserve do with this data. We as you in the adp report that job Growth Continues but manufacturing is weak spot so they have toaway stronger Consumer Spending with weak manufacturing, and figure out does the economy deserve or need a third rate cut for 2019. So it seems like the economy is losing speed not as much speed as some thought but not into recession how would i underline this first read Third Quarter gdp. Maria lauren this you he we willdeep deeper into numbers gdp up 1. 9 Consumer Spending up 2. 9 Business Investment down 3 for the Third Quarter joining us right now to talk about that the president of macroman of Stephanie Pomboy always a pleasure to have you thanks for joining us reaction. Is it is very hard for me to dig into numbers without some of the detail but obviously, headline print is better a continuation however of the deceleration we have seen so far this year, the capex continues to be a key area of weakness, offset somewhat by consumer real question for me inventories in this number that has potential to really swing things one way or the other. We have been trying to unwind a fairly substantial inventory over hanging if there was less progress made in reducing inventories would have helped boost this number, that actually sort of perversely is a bad thing because it leaves us with that much more going stockpile in Fourth Quarter has to be like dedicating 2. 9 better than expected down from prior quarter again a continuation of this broad deceleration we have seen, i think is kind of noteworthy in the face of the shift in fed policy, i mean the whole reason why the fed in theory abandoned right hikes quantitative tightening to provide stimulus to the economy it appears that the most of the liquidity they have added has gone into Financial Assets rather than into real growth. Maria what is your take, he kevin, on the other numbers like Consumer Spending up 2. 9 capex down 3 let me also tell you final gdp Second Quartered is unrevised up 2 solid number Second Quarter. Very good actually the real issue for investors to decide what fed is going to do 25 base points cut about to get is baked in do these sway them to stop, because i dont feel cuts are necessary anymore the economy is doing a little better than even those that said it was going to slow with a rate it is not slowing as facility as people thought, trade uncertainty is holding back capex. That is irrefutable could be resolved when we get through next year, that is the weakness that everybody is talking about the consumers really on fire still, i cant see fed cutting again that is what numbers tell me. Federal reserve will wrap up twoday meeting today we will know 2 00 today if 90 expectation is right that is another cut, for the fte funds rate 25 basis points, again a lot of people expect that, but done for a while what about you i see this current fed making decisions based on global macroeconomic concerns not just what is going on in u. S. If they did what i thought they should do would stay stagnant i think they are going to cut because they look at Global Economy very concerned about trade as we heard them say many times do i believe they might do another cut i think will probably priced in consensus, not kind of growth we are going to see on some metrics described the market wants one the question is whether that is good monetary part time i dont think it is we spoke about that before i think we are on a smarter course with economy deregulation should stick to that economy is fundamentally strong. You mentioned this as inventory numbers Third Quarter up 69 billion in inventory. Second quarter 69. 4 billion, and says the business inventory change couldnt. 05 Percentage Points from gdp change for Third Quarter, 69. 0 billion Third Quarter Second Quarter 69. 4 billion. That was less than supposed to detract the margin helps slain why the number was better than expected zero progress unwinds inventory. 69 the 69 billion emotionally in o change whatsoever this is an issue going into Fourth Quarter because we also got updated monthly, Inventory Data yesterday. And that was stronger, you know more retail inventory exactly where you dont want it going into the Holiday Season inventory alltime record highs could be a drag obviously, on Fourth Quarter gdp, and Profit Margins for companies in those areas. Which sort of gets me into that whole i know we have earnings numbers coming out later i think this is we have talked about this a lot maria i look at the government profit data did not will get Third Quarter profits this one way or another dont come out with that number until revision to first estimate in general Government Measure of profits has been reasoning way below numbers s p shoes that is a function every buyback government numbers are not affected by buybacks if you take away buybacks real earnings in the economy are not nearly as strong as investors perceive them to be sets up a potential comeuppance for the market when that gap is eventually resolved if it has been every time in the past. Which the s p numbers have run ahead of the government profit measure. Maria i think the negative is business spending down obviously, consumer stays strong in. You know why occurring trade war. That is uncertainty about. Absolutely. Everybody knows that totally transparent the question is all data sets we looked at does it change anybodys decision on whether to stay long u. S. Equities, my answer is no, you stay long u. S. Equities, the. 8 something 2. 8 yield on s p versus what else would you invest . Again stephanie is on the other side. My point on the whole idea that this is all trade related is that if you i mean, if you have a toothless trade deal with china how does that rally alleviate the issue for these companies . And also, at the end of the day, it really comes down to what can they sell . What is consumer what is the end consumer demand . If they as you that consumers were willing to buy dont you think would be increasing production selling more . Regardless of the trade issues . If your mandate billions have this mandate to make 5 for pension you get all pluses options places to make 5 does anything you see today change your mind about staying long u. S. Equities making 2. 8 yield maybe hoping for 200 basis points cap gains next year i say stay long. You are asking wrong person case i think were heading into 2008 all over again in terms of overvaluation of on market so i mean. Very chicken little of you [laughter] shakes an important structural point though about how cheap that is for companies to take on on Balance Sheets highest level ever then repurchase stock. What makes you think rates go up actually it is the best counter, we are in a position now no one has the political will fortitude to ray of rates even if right thing to do because we are in artificial recovery. You are managing 20 billion dollars, what are you doing with that totally understand points wealth taken i think she is saying some point music stops like it always has. I have heard that story for a decade, within this if you shorted this market two years ago you loss at lot. I totally agree. You are seeing important crack around edges right where you expect to he so a it front lines of risk, the union korn stocks have gotin pummeled, this wework think i think type of the ice berk for tip of iceberg if you give enough they can lose way no infinite valuations. What are cracks you see you said headed toward 2008 all over again. In terms of the stock market, potential for correction in the stock market. How significant would you expect. 50 . 50 what. I the time frame in terms of now long to get 50 i think once you start down turn going will accelerate quickly going to snowball quickly thanks to you know vehicles like etf, et cetera. But i would expect you know i think this idea if we get a china trade deal for example, i think that would be the moment market will rally on that, and that is when you come in, around the you sell because the reality is i focus a lot on the consumer because it is trillion lions share u. S. Economy to get at a story right probably get u. S. Economy right that consumer is not nearly as strong as people think. American consumer on a china trade deal 46 sales s p 500 now foreign, primarily in asia so if all of a sudden you clear the way for ip and cleared to access to the market, a lot of the growth in earnings, is not going to be u. S. Consumer it is going to be our ability to sell Chinese Consumer fist market is willing to wait willing to pay for that, when it comes. You know in a way never occurred before in last 25 years, we have never got access to chinese middle class. I guess unlike you i dont think there is any chance we are getting a deal on this. I dont agree. You dont that i deal on china. I think we get a deal toothless doesnt address intellectual property issues if we get a deal that addresses intellectual profit it is not going to have enforcement or they are going to cheat whatever i dont think there is any chance china is going to relent on that. Maria could i dont disagree about china not relenting this is a culture stealing intellectual property for decades how do you change a culture a deal with them buying more grig products is not the deal america wants exactly true. Stephanie pomboy joining business her sobering view. California law would reclassify contract he workers as fulltime employees gunfire willis looking at all that now. Good morning that is right so what we have is big uber, Lyft Doordash 90 Million Dollars, to get initiative on california ballot to set would go against this law that reclassifies contract workers fulltime employees spending a lot of money have to get 600,000 signatures to get it on the plat a high hurdle but as you see this is important to those to those employers, also, this morning Fiat Chrysler Fiat Chrysler are pujois may merge in talks to tie up as soon as tomorrow record to go reuters, Fiat Chrysler up half a per went psa board expected to meet today four months ago if you had chrysler abandoned plants for a merger i was riveted by your conversation trades here like the economic numbers they as you not seeing much in dow futures, but positive comments down here, maria back to you. Maria thank you so much, gerri willis coming up advance reading third or got gop better than expected u. S. Economy sees growth 1. 9 first look at Third Quarter we are getting two more revisions Stuart Varney ways in on that College Athlete compensation story Details Behind the bid allowing athletes to profit why their names. Back in a minute. Plus zero minimums to open a brokerage account. With value like this, there are zero reasons to invest anywhere else. Fidelity. There are zero reasons to invest anywhere else. Sometimes, they just drop in. Obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Maria welcome back Third Quarter gdp better than expected up 1. 9 joining me Stuart Varney to weigh in pretty good number. I would say very good 1. 9 annualized basis that is pretty good, more to the point, personal consumption up 2. 2 . That is an indicator of how the consumer is doing. And the consumer is doing very well, as we head into the Holiday Season, one more number, adp 125,000 new private sector jobs reported, again, that is pretty strong you add it all up, and it looks like about this economy is beginning to turn the corner and start to expand a little bit more. Great hopes for the Fourth Quarter First Quarter next year you know me i am optimistic about the economy right maria. You absolutely are as am i there is a concerning issue in the gdp number, absent it is, of course, the capex spending down 3 . It is down i am not trying to explain that. But you are quite right it is a negative. Compared to all other stuff that was in this report, on balance i think positive report. Sure is there are two more revisions i know you have more analysis top of the hour 9 00 a. M. Earn after mornings with maria join stuart college aekt compensation story Details Behind ncaa bid allowing College Athletes to benefit from their name. Back in a minute. Hmm. Exactly. 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At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Welcome back fox business alert former secretary of state exxonmobil ceo tilson arrived at exxonmobil clielt change trail in new york city taking the stand we will talk, more about that, as we understand the developments there, we are also looking this morning at ncaa another step toward College Athletic companies will allow them to did he have from use of name images like necessariz did not specific if that means cab paid. Defense back jack brewer a pleasure to see you thanks for being here. Equates to be back with you what do you think about this . You know that is complex situation. Because the devil is in details here ncaa for so long pushed back on this i think california put the backs to the wall now other states come forward as well but this is really going to change the way athletes are krutdz a lot of recruited a couple things if a kid going to school in a place like new york or california pb, those schools are going to benefit tremendously by being able to give you know bigger name likeness contracts to these athletes another thing california mentioned in their bill is hiring agents i think given an athlete opportunity to hire agent allows them to be represented big thing. One thing has kind of peeved me off a little bit i must say senator burr North Carolina comes out and calls to actually tax, the scholarships of College Athletes i just think despicable a lot of democrats find it hard to come across to the republican party, you have a man sitting here talking about, taxinging College Athletes while normal academic scholarship students continuing to to school never heard one word about taxing them, academic student can make as much money as they want that is ridiculously. Burr tweeting out yesterday he said if College Athletes are making money off likeness in school sharp should be treated like income i will drove legislation that suggests scholarships given to athletes who choose to cash in, Elizabeth Warren her take on it this is a good start now it is time to allow them to join a union and get paid, jack. I mean i think the union idea is great a lot of College Athletes dont have financial background to representative themselves when they Start Talking about endorsement deals i am big on Financial Literacy you know that i teach progressively athletes now but we need to put in place some of the measures that prep athletes to go out, negotiate their contracts but senator crossed line o infomercial College Athletic played db for wake forest to talk about penalizing athletes when you legality normal students make as much money as they want, i mean decembs pickble. 20 years ago no social media now if a star College Sports star you can use your own platform to promote yourselves as anybody would so what is wrong with reflect theing that in relationship with ncaa. Quick then. Piggyback off that great idea allowing this but ordinary income independent of scholarship where they have agents i think taxing that income not scholarship would you be okay with that. That is not what he said. I am just asking. That is not what he said. Go ahead. That is not what he said i would agree with that i am a ci am a capitalist to a on shark tank come up with ideas their own likeness a lot there. Yeah, thank god for that at the end of the day, for the senator to come out right away, and talk about passing legislation, that is going to tax their scholarship . Most kids will be making minimal amounts of money think about it if you are you know a local kid, playing for some school midwest down south not big name not a starter you are not going to make a ton of money. Great to see you see you soon. Thank you. We will be right back. Stay with us. In the last year, there were three victims of cybercrime every second. When a criminal has your personal information, they can do all sorts of things in your name. Criminals can use ransomware, spyware, or malware to gain access to information like your name, your birthday, and even your Social Security number. [announcer] thats why norton and lifelock are now part of one company, providing an all in one membership for your cyber safety that gives you identify theft protection, device security, a vpn for online privacy, and more. And if you have an Identity Theft problem, well work to fix it with our Million Dollar protection package. 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 maria its been a great show. The new law in california that makes uber and lyft employees, not independent contractors, doesnt pass the smell test. Maria thank you so much for joining us, everybody. Varney and company. Stuart good morning, everyone. [laughter] you were second. Youre a great broadcaster, maria, let me be very clear. Kevins truly great. Maria thank you. [laughter] stuart all right, kevin, well have you on my show soon. Between july and september, the economy expanded at an annual rate of 1. 9 . The General Motors one month strike came during the Third Quarter may have had a negative influence x that 1. 9 follows