Transcripts For FBC Mornings With Maria Bartiromo 20240712

Countries, targeting the development of treatments and vaccines. You heard it here first, back in april, when senator tom cotton joined me on sunday morning futures. You believe that they are stealing intellectual property right now as we speak. I have little doubt that the Chinese Intelligence Services are actively trying to steal americas intellectual property as it relates to the virus that they unleashed on the world. Maria and now we have the of usual word. Breaking the official word. The u. S. Ordered china to close the consolate in houston as reports come in of documents being burned on the site. We have the late echt. Markets looking at a lower opening for the broader averages, futures indicating a decline at the start of trading, 88 points lower on the dow, nasdaq lower 17, s p 500 lower by 10 and a three quarters. The dow and s p 500 continued a winning streak yesterday. The nasdaq took a breather. The nasdaq was down. Its one of the busiest days for earnings this morning, big names reporting including microsoft and chipotle. Many are looking at tesla. The Company Reports earnings tonight. Federal agents are headed to chicago after another night of violence, as violent clashes continue in portland. Our weeklong look at instagram stars continues this morning. Today jack king is here, his astounding illusions have earned him 23 million followers. The magic behind his success, coming up. Mornings with maria is live right now. Global markets are under pressure. The fq100 is down 54, the cac down 53, the dax lower by 41. This as concerns of a coronavirus spike grows in europe. In asia markets were mostly lower with the exception of china, the shanghai composite up a third of a percent, the hang seng down 2 and a quarter percent. Some of the top stories right now. We begin with a fox business alert, the u. S. Ordered the Chinese Government to close the consolate in houston, hours after the announcemen announceme broke out at the building. A state Department Spokesperson said it ordered the closure to protect americas intellectual property and information. Local reports say classified documents were being burned at the cons late. Firefighters consolate. Firefighters itsconsidered chi. China is vowing to retaliate. President Trump Holding his first covid19 briefing in more than two months and issuing a warning about the pandemic which has killed more than 142,000 americans. It will probably unfortunately get worse before it gets better. We are in the process of developing a strategy thats going to be very, very powerful. The world is suffering but were going to get it taken care of. Maria meanwhile, on capitol hill, lawmakers are hashing out the details of a new stimulus package, Mitch Mcconnell says the fourth round of assistance will include another round of direct payments to american families. Mcconnell and the Trump Administration said they want to target low income and Unemployed People with this next round. A violent night in chicago, 14 people were shot last night outside of a funeral on the citys south side. Police say an suv pulled up and just started firing. The shooting follows several days of gun violence in the city. The mayor said she will work with federal agencies to fight the violence but is vowing to keep officers out of the city. Unlike what happened in portland, what we will receive is resources that are going to plug into the existing federal agencies that we work with on a regular basis to help manage and suppress Violent Crime in our city. Ive been very clear that we welcome actual partnership but we do not welcome dictatorship. We do not welcome authoritarianism. We do not welcome unconstitutional arrests and detainment of our residents. Maria federal officers are under fire in portland this morning, accused of using unlawful tactics. Today a judge will consider a temporary restraining order to restrict federal Law Enforcement in the city. Investors are eyeing the busiest day for Second Quarter earnings this morning, futures indicating a decline at the start of trading. Later, microsoft and tesla will report after the close tonight. Tensions with china a focus this morning. Yesterday the dow industrials up on stimulus and vaccine hopes. But closing off of the highs of the session by 4 00. The nasdaq in the red after hitting an alltime high earlier in the day, a reversal of fortune by the close, dow industrials finishing up about 160 points, the nasdaq was lower by 86. Joining me right now is chief investment officer, steven auf. Also joining is dagen mcdowell, Cabot Phillips and Francis Newton stacy. Great to see everybody this morning. Thank you for being here. Steven, lets kick it off with you. Is earnings the focus or Something Else . Whats driving markets this morning and over the near term . Yeah, i mean, near term its going to be pretty choppy, maria, as ive been saying. Were not seeing a sharp recovery on the industrial financials, the value side of the market. Most of the earnings are coming out and people are a little disappointed, i think. On the other hand, its not falling apart either and everyone is looking forward to when we get through this crisis. We know that stocks are going to be worth a lot more, thats the challenge for investors right now, on a two to three year view, stocks are going a lot higher, pretty clearly. The problem is, in the near term, weve got a lot of chop. The growth side of the market has already had a great run and the stocks have to grow into the prices. So i think were kind of just chopping wood and then weve got to get through the election. So its a choppy market from here, i think, to at least november. Maria a lot of important events you just mentioned there. I want to ask you about valuations. You mentioned these companies are going to grow into their earnings. The shares in u. S. Companies right now are the most expensive that theyve been in almost 20 years. When you look at valuations, particularly in technology and biotech, is it time to less sense up . Is it time to start selling or do you say just hold on with this choppiness . Maria, weve been holding there. You know, weve cut our overweights on stocks in general, though were still overweight. Unlike the tech bubble in the 90s which you and i both managed through, these stocks actually have earnings and cash flows, theyre not like just clicks and things and so youve got a chance here. Maria a great point. I think the stocks are big growth compounders. We dont see them as being terribly expensive but theyre not cheap anymore, thats for sure. They were cheap back in march. So i think theyll grow into their prices easily enough. I wouldnt recommend people unload these stocks here, across the board. I mean, theres some that are maria i think you make a really good point. Francis newton stacy, jump in here. Because back in the 90s we were couldn counting clicks toe website. Now were actually counting revenue. Yes, or were counting unemployment or were counting the fed. My question to you is do you think with the recent uptick in Commodity Prices and decline of the dollar, do you think we have growth going down, inflation going up, or a deflationary risk Going Forward and how do you allocate given the two different scenes . Well, first of all, theres no risk of inflation here. Remember, all this money thats going into the economy globally from fiscal monetary is simply replacing money that would have been made. Its not like excess cash in the economy really. Its keeping the economy liquid. Inflation risk is very low. Look at whats gone on in the bond market. It tells what you the expectation is there. So i dont see inflation as a risk at all. And by the way, maria, with these rates so low, valuations on stocks could go quite a bit higher, actually. In fact, thats one of the reasons to like stocks here. Theyre probably one of the best investments around, particularly just the dividend story is attractive relative to bond veeldz. Yields. Maria the yield on the 30 of year, 1. 9 . When you try looking at dividend payers versus where rates are right now, its pretty extraordinary. Real quick, steven, is markets are markets worried about china. Obviously things are getting heightened here in terms of the discussion between the Chinese Communist party and this administration. I think, maria, markets expect continued back and forth with china here. You know, under the covers, things are moving along fine. U. S. Companies are doing okay over there. But chinas a big part of the Global Economy and weve got to at some point get to some kind of pox with them over the next few years. The News Headlines affect markets but i think longterm well be okay. Maria all right. We will watch that. Steven, its great to see you this morning, thanks so much. Thank you, maria. Maria as always. Have a good day. We are just Getting Started this morning. Coming up, Republican National Committee Chair woman Ronna Mcdaniel is here, with the gop set to hold their convention in jacksonville next month. The ceo of petco is here. At 7 00 a. M. We have the top stories investors are watching this morning in the world on wall street. Connect get state treasurer sean wooden joins us on growing diversity. Phillip Morris International ceo is here on the companys Second Quarter earnings. At 8 00 a. M. We have House Intel Committee Ranking Member devin nunes on the durham probe. Plus, marco rubio is here on the threat from china as the department of Justice Charges two chinese nationals with hacking data from u. S. Firms. It is insta star week, looking at one influencer whose visual tricks are leaving the social media world speechless. Dont miss it. All that coming up, right after this. This is decision tech. Find a stock based on your interests or whats trending. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. Maria now this fox business alert, the u. S. Ordering the closure of the chinese consolate in houston. The state department issuing a statement saying we have directed the closure of prc consolate general houston in order to protect American Intellectual property and americas private information. The news coming after local reports overnight that consolate officials were burning documents in the courtyard upon learning of their eviction. China says earlier, saying earlier it will retaliate with, quote, firm Counter Measures should the u. S. Proceed with the move. Joining me right now is retired general and the author of the book stealth ha war, how china k over, general spalding. Thank you for being here. Good morning, maria. Thank you. Maria what an extraordinary story that they started burning documents. What is your reaction to what has taken place in terms of the u. S. Closing down, demanding that the china consolate close down in houston . Well, it seems when i originally saw this, i thought immediately they must be burning documents because theyre getting ready to be evicted and sure enough thats what it is. But i think the interesting thing that im hearing is that they were involved in some of the political activeism thats going on in the United States. So it is interesting to note that they had to call the Fire Department because they had so many documents that they were burning. Maria thats unbelievable. I means we are now cracking down on these hackers but we understand how this has been going on for so long. The u. S. Yesterday accused two former engineering students for allegedly Hacking Computers and stealing trade secrets for more than a decade. The hackers allegedly stole for profit for themselves and for the chinese intelligence, recently targeted firms involved in covid19 vaccine research. You know, we talked about this for some time and this has been going on for a while. I spoke earlier this year with senator tom cotton on sunday morning futures who pretty much predicted this and talked about the importance of protecting intellectual property. Listen to this. You believe that they are stealing intellectual property right now as we speak. Lets talk a bit about that because the whole world is looking for a vaccine and i wonder, is china trying now to come out of this trying to save face, look better than the rest of the world, while coming up with a vaccine before the United States. Whats happening right now with regard to that kind of science . Well, maria, the Chinese Communist party has been stealing americas intellectual property for decades and theyre not going to magically stop in the middle of a pandemic. In the middle of a pandemic, whats the most valuable intellectual property in the world . Its the research that our Great Companies are doing on prophylactic drugs, therapeutic drugs and ultimately a vaccine. I have little doubt that the Chinese Intelligence Services are actively trying to steal americas intellectual property as it relates to the virus that they unleashed on the world because of course they want to be the country that claims credit for finding those drugs or finding a vaccine and then use it as leverage against the rest of the world. Maria general, he was spoton, that was back in april. Our viewers knew this was coming. How are we going to stop china from continuing to steal intellectual property . Well, the whole point of the National Security strategy is to begin to decouple them from the innovation, technology, talent and capital of a free society. You know, everybodys worried about the Economic Impact of decoupling with china. But in reality, what you have is these things, these four incredible things that come out of democracies going into Stateowned Enterprises which are less efficient than marketdriven enterprises and also going into the graft of the Chinese Communist party. So were actually i believe going to see a net gain in our economy over time as we begin to get them out of our system. Maria well, you know, weve gone two andahalf years back and forth on a trade deal. The president has gone back and forth with u. S. Officials here and officials in china and every time they did another iteration of a trade deal, the chinese kept saying no, were not even admitting that were stealing intellectual property. They dont even admit it, general. Now youve got the rest of the world taking notice as well. Secretary of state mike pompeo continuing his trip this morning, his tour of europe, recently arriving in denmark. He spoke with british officials yesterday, speaking on the importance of pushing back on chinese influence. Let me ask you, general, in terms of the rest of the world, are they with us against china . So this is the thing that the media has completely missed. Starting in the First Quarter of 2018, we began a Diplomatic Campaign with our allies and partners. This u. K. Decision is not a flash in the pan. Its taken over two years to put into place. I was in europe last fall, in berlin, in brussels, talked to the german government, talked to the eu, talked to nato. They are all beginning to understand, because of this Diplomatic Campaign, the challenge the Chinese Communist party poses to their democracies. Maria yeah, i mean, look, youve got the u. K. Banning huawei from this 5g infrastructure. Youve got india banning particulabanning tiktokand 58 o. Youve got hong kongers pushing back on the overreach coming out of the ccp. Is this china versus the free world . It absolutely is. Were beginning to resolve into a bipolar world again. Whats happening is chinas gathering all of the authoritarian regimes to itself and a lot of the emerging market economies with the belt and road initiative. They recently signed a strategic agreement with iran. In the United States, what we have been doing slowly, methodically since the First Quarter of 2018 is beginning to gather the democracies behind us. What were looking at is the beginning of a free trade world and a not free trade world led by china. Maria yeah. Real quick, before we go, general, what about Corporate America . You know, companies out there still want to sell widgets and Everything Else to the population in china. Are they getting it, the National Security risks are real . No, theyre not. They still think that they need to be incentiveized by doing business in china, doing business with the communist party. Thats a problem. Maria yeah, it sure is. Its great to have you. Please come back soon, sir. 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Weve developed as we go along, some areas of our country are doing very well, others are doing less well. It will probably unfortunately get worse before it gets better. Something i dont like saying about things but thats the way it is. Maria that was President Trump yesterday in his first Coronavirus Briefing for some time, issuing a grim warning for americans. Hes also addressed the race for a vaccine yesterday. Two vaccine candidates are entering the final stage of Clinical Trials this morning. This was achieved in record time. It used to be years before you were in a position like we are right now. Four other vaccines will enter final trials in the following weeks and were mass producing all of the top candidates so the first approved vaccine will be available immediately. Maria so this is his first Briefing Since may. Dagen mcdowell, when i was watching the briefing yesterday i felt like, wow, things might be poised to get worse from here and sure enough he said its going to get worse before it gets better. Your reaction. Dagen the president even based on his polling needed to stand up in front of the American People and lead and lead on his own and he did that. If you noticed during the briefing, no one else was on the stage, no one else spoke. And that he needed to present that he is in charge and be realistic with the American People and i think what came across is its really up to each individual. If you believe in the freedoms that are granted to us, that youve got to take responsibility for yourself, your family and your loved ones and wear a mask and social distance and not go to bars, working with the private sector, walmart and all these retailers are banning people from coming into stores unless theyre wearing a mask and then the private sector being involved really around the globe in the development of this vaccine. So again, i think it comes down to personal responsibility. That came across yesterday. Maria yeah. And then he was asked, cabot, where is everybody . Where is dr. Birx. He said shes right outside. Your reaction to that yesterday, cabot . Cabot well, i thought it was certainly the right tone, one that i think should have been coming out earlier. I think it was a tactical error for the president to stay away from addressing the American People for so long. We saw that indicated in some of the polling. I thought this message should have been earlier, for the fact of the expectations game. Overpromising and under delivering, early on it was a more positive message, that things would go great. When things took a downturn, the American People said this isnt what you promised us. If this was the message from the beginning, putting the onus off on the individual, i think the message would have resonated better from the early start. I think probably part of him being up there alone at the beginning is probably due to the riff there is between he and fauci. I dont think it was part of a broader strategy. Dagen the reason its important for the president to get out in front of the American People on this, because when he is absent from talking about the virus regularly, you have the democrats calling it the trump virus and kind of gleefully standing on the suffering and hardship of the American People to basically boost their own political posture and standing. So im waiting for all of those in washington, around the country, to callut tututhe e wereerer feer gnors g trsha gg covntovosidit peit pitientitss ck intoo nng n n n n n h n homea kikillkillki mllllyyf o o o eldv noves, firppsovernono drewuomo. Uo. Those five goverovrserrsrs all sos lsear abo t t and and andd ak reltedltlt fromromrororohosesess horrhorr es by dem governors. Maria yeah, its a great point. Well take a break. When we come back its all about the 2020 race. It is heating up and all of this will be part of it. Thats for sure. Rnc chairwoman Ronna Mcdaniel is reacting to joe bidens economic plan, it comes with a big price tag and of course higher taxes. Well talk about it when we come right back. vo the time is coming for us to get out and go again. To visit all the places we didnt know meant so much. But were all going at our own speed. At enterprise, peaceofmind starts with our complete clean pledge, curbside rentals and lowtouch transactions. With so many vehicles of so many kinds, you can count on us to help you get everywhere you want to go. Again. Whenever youre ready, were ready for you. Enterprise. I have the power to lower my blood sugar and a1c. Because i can still make my own insulin. And trulicity activates my body to release it like its supposed to. Onceweekly trulicity is for type 2 diabetes. Its not insulin. It starts acting from the first dose. And it lowers risk of heart attack, stroke, or death in people with known Heart Disease or multiple risk factors. Trulicity isnt for people with type 1 diabetes or diabetic ketoacidosis. Dont take trulicity if youre allergic to it, you or your family have medullary thyroid cancer, or have multiple endocrine neoplasia syndrome type 2. Stop trulicity and call your doctor right away if you have an allergic reaction, a lump or swelling in your neck, severe stomach pain, changes in vision, or diabetic retinopathy. Serious side effects may include pancreatitis. Taking trulicity with sulfonylurea or insulin raises low blood sugar risk. Side effects include nausea, diarrhea, vomiting, belly pain, and decreased appetite, which lead to dehydration and may worsen kidney problems. Were committed to helping ensure trulicity is available and affordable. Learn more at trulicity. Com. Maria welcome back. Good wednesday morning, everybody. Thanks so much for joining us, im maria bartiromo. It is wednesday, july 2 27bd. Lets take a look at markets 6 32 a. M. On the east coast. Futures indicate a lower opening for the broader averages. The dow futures down 112 points, the s p futures down 11, but the nasdaq continues that fiery winning streak, it is up again another 10 of points this morning, this after the dow and s p 500 extended their winning streak yesterday but the nasdaq took a breather, yesterday was down 86 points while the dow was up 160 yesterday on wall street. European indices are under pressure as concerns of a coronavirus spike grow. The fq100 is down 65, cac down 67 and dax index in germany lower by 64. In asia overnight markets were mostly lower with the exception of china. The shanghai composite slightly higher on the session overnight. Meanwhile, a tsunami warning in alaska followed a powerful earthquake off the coast. Jackie deangeles with the details. Good morning, maria. The u. S. Geological survey says the 7. 8 magnitude quake struck the Alaska Peninsula late last night. It was centered 65 miles south, southeast of perryville, alaska. Just hours after the quake, a tsunami warning was issued but has since been called off. So far, there are no reports of any injuries or damage. And boeings 737 max reportedly not expected to fly again until october. Hillary, delaying passengerflig. The federal Aviation Administration is still preparing a proposed directive to clear the troubled plane for flight. And the max was grounded in march of last year after two fatal crashes ahead of the opening bell were looking at boeing shares down 1 and a quarter percent. And heres a look at whats trending this morning on foxbusiness. Com. More than 6,000 United Airlines employees have opted to take voluntary severance package as the Airline Tries to reduce the Financial Impact from the pandemic. Uniteds total operating revenue fell 87 to 1. 48 billion compared to 11. 4 billion last year. The Senate Banking committee has approved President Trump nominees judy shelton and Christopher Waller to join the federal reserve. They now go to the full senate for a confirmation vote. And walmbout 428 million on a new round of bonuses for its employees working throughout the coronavirus pandemic. The company also Closing Stores on thanksgiving day, giving workers the day off, maria. Maria that is good, actually. Jackie, thank you so much. Jackie deangeles. We are in countdown mode to 2020 and the election. Joe biden unveiled his 775 billion proposal to help families with child care during the coronavirus pandemic. This plan calls for rolling back tax breaks on Real Estate Investors and the Campaign Says 3 million new jobs will be created as a result of this. The former Vice President outlined the initiative in a News Conference yesterday. He also took the opportunity to take some swipes at President Trump. Watch. This man simply doesnt understand, he cant deal with our economic crisis without serving and saving and solving the Public Health crisis. Hes unable to explain how hell actually help working families hit the hardest. You know, hes quit on you. Hes quit on this country. Maria joining me right now is the chairman of the rnc, Ronna Mcdaniel. Its good to see you this morning. Thanks very much for being here. I guess first lets start with your reaction to joe biden. He says hes going to create 3 million jobs. Well, joe biden is going to crush the middle class of this country with all the proposals hes rolling out. 4 trillion in tax increases, that will be a tax increase on 82 of americans. 2 trillion in climate spending which will end our energy independence, make us more dependent on countries like iran and kill 10 million jobs in this country and now hes talking about another 800 billion in his new plan he unveiled yesterday which would eliminate the doubling of the Child Tax Credit that the president put in the tax cuts and jobs act. Joe biden is a disaster for america. He is proving to be a washington politician. Every answer to every problem is raising your taxes. It will crush our country, coming out of a pandemic that is not the answer to grow our economy. President trump has it right because hes done it before and hes already doing it as we saw the good jobs numbers last month, as youve seen him put out the ppp plan that allowed Small Businesses to get funding, to keep their employees. I think joe biden is completely wrong. He would be a disaster for america and he would tax and bankrupt our country. Maria ronna, you said something really important. I want to make sure our audience understands. You just said that under joe biden, 86 of americans will see higher taxes. You know, hes been going about this whole taxing the rich, which plays politically for the populace but when you actually get down to it and look at the numbers, you cant afford to spend 2 trillion here on a green plan and another trillion dollars here on child care without raising taxes on everybody. And so its important to recognize that once you start the spending plan, youre not going to just be able to raise taxes on the rich because theres not enough money. Exactly. Theres not enough money. So everyone, everyone right now will have a tax increase under joe biden. Coming out of a time where were dealing with this pandemic, where weve had unemployment because of the pandemic, something by the way that we should be united around. I think its really shameful to see democrats continue to try and politicize a crisis like weve never seen before that the president has navigated us through so well with his leadership, getting the ventilators, getting the testing uptospeed, the ppe, but this is all hands on deck and youre starting to see the democrats more and more try and lay the blame at the president s feet for something that came from china where w. H. O. Didnt inform us quickly enough and the president has been on the front lines of this and leading us through this every step of the way. And you saw nancy pelosi yesterday call it the trump virus. Thats so shameful. I think americans should reject not only the massive tax increases but what theyre putting forward with this, the pandemic as well. Maria so i mean, the president was very serious about masks yesterday. We are now understanding that masks actually do help. Were a month away from the Republican National convention. Jacksonville, sheriff Mike Williams is raising concerns about safety surrounding the event. In a statement he said with a growing list of challenges, be it finances, communication, timeline, i cannot say with confidence that this event and our community will not be at risk. This coming as coronavirus cases surge in florida, the rnc is planning Outdoor Events at the convention. Ronna, why do a crowded jampacked convention to begin with . The democrats say, look, were going to do it virtually. Why not just do it virtually as well, knowing the risks that we all face of standing close together and not social distancing . Well, we really have made a lot of changes and, maria, we are looking at circumstances on the ground in jacksonville. The first three days will be open only to delegates, a very small number. We will wear masks, we will social distance, there will be testing. Delegates really want to come out and support this president and talk about why he deserves four more years and i think we can balance doing that in a healthy and of safe way, just like we are with opening our economy. You know, people are at the grocery stores. We have to go to walmart like you just said. Were figuring out how to navigate this pandemic and opening up america, having a convention, but doing it with the health and safety precautions that are being given to us by local officials. Maria well, we certainly are going to be living with this. We know that. Were going to have to adapt because people need their livelihood as well. Youve been on a fund raising run. President trumps Reelection Campaign raising 20 million in the First Virtual fundraiser. This coming as the Republican National committee raised nearly 37 million in june. The party now has a record 100 million of cash onhand. How do you allocate that capital, ronna, and what are you hearing from donors in terms of the reception youre getting . The Fund Raisings been incredibly strong at every level. The major donors, all the way down to the small dollar donors who are giving 40. And what were seeing is the enthusiasms incredibly high. The president did a zoom call last night with i think 300,000 people on it. Beyond that, maria, its not the cash onhand that makes a difference. Its what im investing in. We have 1500 staff on the ground, we trained close to 1. 5 million volunteers. Youre seeing stories about us outpacing democrats on voter registration, youre seeing democrats raising warning flags that joe biden has no ground game. The investment we made early in these states is paying off because were already seeing that pay dividends with voter registration, turning out our vote and organizing towards november for this all too critical election where there will be more mail voting. Maria all right. We will leave it there. I did not hear nancy pelosi say the trump virus. Thats absolutely unbelievable. Yeah, you made a great point. Ronna, thank you so much for being here. Ronna mcdaniel joining us there. When we come back, the changing face of retail during coronavirus, the ceo of petco is here. You know i have a warm spot in my heart for him. Ill tell you why when we come back. Celebrating instagrams biggest stars, one influencers illusions is leaving the social media world breathless. Youre watching mornings with maria live on fox business. Introducing stocks by the slice from fidelity. Now you can trade stocks and etfs for any amount you choose instead of buying by the share. All with no commissions. Stocks by the slice from fidelity. Get your slice today. Maria welcome back. Retailers attempting to slow the spread of coronavirus across the country, now petco joining the list of major retailers like walmart, best buy and starbucks, requiring shoppers to wear face coverings in their stores nationwide. Joining us now is the ceo of petco, ron coughlin. It is great to have you this morning. Thanks very much for having me. With coronavirus cases surging across the country, was the face mask require machines an easy requirement an easy decision for you to make at this point . Good morning, maria. I hope youre well. I hope dustys doing well as well. Maria hes doing great, thank you. Glad to hear. It was not an easy decision on one hand, but on the other, in terms of the safety of our customers and safety of our partners it was. I was actually in omaha yesterday and a gentleman walked into the store without a mask on and i walked up the to him and i had to admit i was a little worried about it and i said we require a mask, can i get you one. He said thank you very much, took the mask and had a great shopping experience. Some of our stores are giving out 50 masks a day. If you think about that, on 5 positive rate for sake of argument, one out of 20 masks might be somebody who has the virus and thats inhibiting it being passed to other customers or our partners. So its absolutely the right decision. Maria ron, how has business been . I mean, obviously the loss of foot traffic has been a major issue, not just for retail but restaurants as well. How tough has this hit been and do you expect to bounce back the second half of the year and into 2021 . Theres really been three cycles for us. The first one was the stockup and business was very, very strong as consumers started to stock up. Then we had the reside in place and our brick and mortar declined but our ecommerce took off at that window. And then since june, whats really happened is youve seen a shift in disposable income towards people taking better care of their pets which is awesome for the pets and good for our business. So since june, our business has been up near double digits. And you talked about traffic. Theres a dynamic of trip consolidation happening. So theyre taking less trips but theyre buying more on each trip in our stores and then on ecommerce what were seeing is them taking advantage of options like Curbside Pickup or straight ecommerce or repeat delivery and our ecommerce business is up over 100 . So our business is thriving right now thanks to our great team. Maria and Everybody Knows i love petco so much and you because i adopted dusty because you found her, adoptions from the Petco Foundation have been through the roof throughout this pandemic. Theres dusty doing really well, loving her new home in new york with me. Tell me about the adoptions and how its going. I cant tell you how grateful i am for you, to you, for helping me find dusty who lost it all in houston after the hurricanes but found love once again with my family. We couldnt be happier and thank you for taking dusty. That is exactly what we hope to do is find an animal in need and a loving parent like you. First im bummed because i was going to bring my dog, yummy, to the set this time. Next time when youre open for business in new york, ill bring yummy. Fostering is up 30 . Maria sure. I want to meet her. You cannot its hard to find a dog in a rescue right now. My daughter volunteers and theyre nearly empty. We expect pet ownership to be up about 4 this year, which is obviously good for the pets and good for our business. So its been a good time for adoptions and for fostering and that makes us very happy. We estimate the foundation has saved about 50,000 lives this year alone, so they do important work and you know glu suzanne, e does a great job. Maria oh, my goodness, dagen, how about that, 50,000 lives were saved. Ron said you cant even find a rescue right now because theres such demand. Dagen, weigh in. Dagen you can find them if you are willing to adopt and rescue a larger dog. The shelters are usually filled with larger dogs and i would argue pitbulls or pities get a really bad rap. Theres dale. I had to leave my dogs with my dad. My dogs are with my dad, trying to heal his heart. Theres ddog, i got him from north shore animal league. But and theres ramone too. But ron, wouldnt you agree that dogs need a large dogs need a loving home too . They do. And sometimes you make a good point, dagen. The shelter that my daughters volunteering in, there was a mastiff and he had some issues because his parent died and hes a more difficult dog but for the right loving home he is a phenomenal type dog to put in that home and we need to find homes for them as well. You make a great point, dagen. Maria thanks for doing what youre doing, we so appreciate it and thanks for joining us. Ron coughlin from petco. Well be right back. Ok . Thats 15 percent on top of what geico could already save you. So what are you waiting for . Dj khaled to be your motivational coach . Yo devin remember to brush in a circle motion. Thank you. Dj. Khaled. Tiny circles, devin. Do another one. Another one. Is this good . Put in that work, devin. Dont give up. Geico. Save an extra 15 when you switch by october 7th. Maria yes, it is time for the morning buzz, first up, hey alexa, can i get your number. The loneliness of quarantine is getting to some as a new study shows 28 of people are admitting to being attracted to amazons Voice Recognition software. Cabot, go figure. Cabot a lot of people have been complaining about getting in fights with their significant other throughout the quarantine. This seems to be the opposite issue. I think the real reason, because alexa doesnt talk back, theres no other argument to be had because alexa just license. Thats what people love just listens. Thats what people love. Anything you say or do with alexa can probably be heard in a warehouse somewhere by a worker. Careful what you say when youre in love. Maria bringing the restaurant home, tgi phis offering an online butcher shop where you can purchase a selection of ready to cook meals and turn your kitchen into the restaurant. Frances, you in . Frances sure. I think people are probably sick of their own food or the regular takeout that they get all the time and this is a really smart pivot for tgi fridays because they can keep everybody interested in their whiskey glaze sauce and have people craving it when things open up again. Maria its a good idea. All right. We will take a break. When we come back, a coronavirus mansion, the Beverly Hills estate built with all the amenities to outlast the covid19 pandemic, well show you to you next hour, right here. Mornings with maria is live on fox business. As a caricature artist, i appreciate what makes each person unique. Thats why i like liberty mutual. They get that no two people are alike and customize your Car Insurance so you only pay for what you need. Almost done. What do you think . I dont see it. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Maria welcome back. Good wednesday morning, everybody. Thanks so much for joining us. Im maria bartiromo. It is wednesday, july 22nd. Your top stories right now 7 00 a. M. On the east coast. Breaking news this morning, overnight the u. S. Ordering china to close its consolate in houston, as reports come in of documents being burned at that consolate. Meanwhile, china is trying to steal covid19 research now. We know this for sure. Two chinese nationals are accused of hacking into companies here in the United States and other countries, targeting the development of treatments and vaccines. You heard that here first back in april when senator tom cotton joined me on sunday morning futures. You believe they are stealing intellectual property right now as we speak. I have little doubt that the Chinese Intelligence Services are actively trying to steal americas intellectual property as relates to the virus that they unleashed on the world. Maria President Trump meanwhile making a grim prediction on the coronavirus yesterday. It will probably unfortunately get worse of before it gets better. Maria yes, the president urging people to wear masks and saying a vaccine remains a top priority for his administration. Coming up at 8 10 a. M. Eastern this morning, fda commissioner dr. Stephen hahn is here. We will talk about that vaccine coming up. Markets are under pressure this morning, take a look at futures indicating a decline at the start of trading this morning, the dow down 84, nasdaq is up 20 of points, s p 500 weaker by 8, this after the dow and s p 500 continued winning streak yesterday, the nasdaq took a breather with a decline on the session of 86 points. It is one of the busiest days yet for Second Quarter earnings, big names are reporting today including microsoft, chipotle and many will look towards tesla. Tesla reports tonight after the close. Plus, this morning our weeklong look at instagram stars continues, next hour zach king, his astounding illusions earned him over 23 million followers. The magic behind his success coming up. Mornings with maria is live Global Markets this morning also with a negative tone, take a look at european indices under pressure as concerns over the coronavirus spiking grows, the fq100 is down 56, dax is cac is down 56 as well. In asia overnight markets were mostly lower. The shanghai composite closed slightly higher while the hang seng was down 2 and a quarter percent. Joining the conversation this morning, dagen mcdowell, Cabot Phillips and Frances Newton stacy. Great to see everybody this morning. Dagen great to see you. Maria some of the top stories were watching this morning, we begin with a fox business alert. The u. S. Is ordering the Chinese Government to close its consolate in houston, hours after that announcement a fire broke out at the building. Things were burning. A state Department Spokesperson said it ordered the closure to protect americas intellectual property and information. But then local reports say that classified documents were being burned at the con consolate. Firefighters were not allowed on the property because its considered chinese territory. China is vowing to real yates, calling it an retaliate, calling it an unprecedented provocation. This comes after the Justice Department charged two chinese hackers yesterday, accused of targeting research on coronavirus vaccine. Federal Officials Say they stole hundreds of millions of dollars worth of trade secrets and intellectual property from u. S. And foreign countries. The doj says the stealing of the information was to benefit the Chinese Government. They did not say whether they were able to steal covid19 research or data. President Trump Holding his first covid19 briefing in a few months issuing his warning about the pandemic which has killed 142,000 american. It will probably unfortunately get worse before it gets better. We are in the process of developing a strategy thats going to be very, very powerful. The world is suffering but were going to get it taken care of. Maria meanwhile, on capitol hill, lawmakers are hashing out the details of a new stimulus panning. Mitch mcconnell says the fourth round of assistance will include another round of direct payments to american families. Mcconnell and the Trump Administration said they want to target lower income and Unemployed People. A violent night in chicago, meanwhile. 14 people were shot last night outside of a funeral on the citys south side. Police say an suv pulled up and started firing. Last nights shooting follows several days of gun violence in the city, 25 people were shot on monday. The mayor says she will work with federal agents to fight the violence. Shes vowing to keep officers out of the city. Time for the word on wall street where we discuss whats driving markets. How to allocate your money and the economy, of course. Joining us now is chief strategist, david nelson, Frances Newton stacy and steve d udash. Tensions with china obviously heightening, the u. S. Ordering china to close its consolate in houston as reports come in of documents being burned on the site. The state Department Says the closure is to protect American Intellectual property. David, your reaction . Is this a market mover . I dont know if its a market mover but its certainly been going on for some time. Look, chinas going to remain an adversary in every sense of the word, its not just trade, its not just the economy. But its Foreign Policy as well. The theft of intellectual property goes well beyond Just Technology and healthcare. Look at their j31 strike fighters, almost an exact clone of the lockheed margin f35. That points to me as an investor to areas like defense. Maria thats right. Theyre stealing military data, agriculture data, medicine data. Its every sector, pretty much. Meanwhile, it is the busiest day for Second Quarter earnings. Investors are waiting on microsoft and tesla today. Steve, whats your expectations for the overall earnings season and any thoughts on what were going to hear tonight . How have earnings been so far . Yeah, a little known company, no one talks about, teslas got their earnings tonight. Listen, it might be the most statistically meaningless Earnings Report ever out of that company because, one, i mean with the virus situation everyones numbers are off. Two, it doesnt matter what they say. The same outcome happens every time lately. Short sellers are going to get burned. Robin hood investors will buy a bunch more andy lon and elon wie worth a few billion dollars more by the end of the day. The real question are they able to massage numbers enough to get inclusion in the s p 500. A lot of people think thats what the real word on the street people are talking about is can they get there. We believe they probably will. To our investors, i get this question every day. If youre buying a stock or a company that you feel has the potential to continue to surprise on the upside, to continue to beat earnings, then go for it. Buy into a company like this and dont listen to anyone else. If youre just buying it because its up and thats the only reason why youre buying it, do yourself a favor, google few lip prices tulip prices, get a little history lesson. Maria or google 1999 when we were all counting clicks for the website instead of earnings and revenue in the 90s. Steve, the stock has taken off and its at 1,600 a share on tesla. Just from a valuation standpoint, do you want to wait or do you want to buy . You are thinking like a logical, rational person when you ask that question. Thats not whats going on right now. We both know this, this is an emotional based situation with the stock price. It doesnt matter that theyre producing x number of cars in a single quarter and thats what im saying, we joke a little bit here, but thats why this earning report doesnt matter a ton right now because people arent basing their investments theyre not basing the stock price based on reality or by productivity like how many widgets they sell. Its based on emotion right now and thats where its dangerous. Right now, when this Earnings Report comes out, its just a matter of how much theyre able to massage the numbers to get in or not get into the s p 500. Thats the only important part. Meanwhile, you have microsoft earnings tonight. Maria well wait for those numbers. Go ahead. Microsofts report that one, i cant wait to see. The buyer stuff is their numbers will be screwy. The forward projections, thats where as investors were going to get a real feel of what a bigtime company that has true numbers is projecting for the next quarter and for a tech sector thats been so hot the last however many months now, that gibbs us some real indication of whats going to happen in the next few months. Look at the footnotes. Thats the best thing tonight. Maria microsoft will really give us a sense of what businesses are doing in terms of cap ex, in terms of investing in software, cloud related businesses. So thats going to possibly be a market mover tonight. Weve got the hopes of another stimulus package, frances, covid19 vaccine progress also driving the action. Whats important here in terms of moving the market . What do you want to hear out of a stimulus package . Frances so i would really like to see the payroll tax cut. I know its not very popular. The thing is, when we come out of coronavirus, the Small Businesses are going to be the ones that suffer the most. And there was a statistic that only that 55 of Small Business woulds fail with a three month closure and were going to have were rolling back the openings and the pressures on Small Business and i dont know if everybody understands the trickledown effect from the supply side economics which is basically Small Businesses build the middle class. Joe biden is about supporting the middle class and trump is about supporting the middle class. I think the payroll tax cut could be a bipartisan way of doing this. Deficits, of course were concerned, but here we are. Modern monetary theory. We have to print our way out of it and as far as the vaccines, i think the vaccines are going to handle the psychological perspective. Its hard to say who is going to be the winner there with the studies going on and of course we hope theyre safe, given the accelerated schedule. But theres two there are two components, the stimulus is the mechanical component of taking risk out of the markets and then of course the vaccine is the psychological component. So hoping for the best there, maria. Maria do any of you believe that markets have started trading on the election or are we were 105 days away from the election but we know a little bit about the policies coming out of joe biden and he wants to raise taxes and perhaps if Elizabeth Warren has her way, put a wealth tax in there. Do markets trade down on that plan . The president has been very clear, he wants to cut taxes. Go ahead, david. What i would say, the election is probably the biggest risk for the marc the market ri, not just because we might lose a tax cut and youll see s p earnings fall from 170 for next year all the way down to 1 150 , that would be a big hit. If mailin ballots are going to be at record levels, on Election Night were probably not going to know who the president is. It could be days, perhaps weeks before we know who will be in the white house in 2021. Markets didnt like that in 2000. Maria thats not good. And markets dont like the uncertainty with Something Like that. They would react. Maria that is not good. I dont think we should be taking weeks to find out who the president is and this ballot harvesting of ballots is wrong. Well certainly wait to see how these markets trade on all of these policies, david nelson, steve dudash, Frances Newton say stacy, thank. Violence in chicago, 14 people injured in a shooting overnight, now the federal government is sending in their own officers, the mayors response coming up. Best buy boosting pay, thats ahead. You are watching mornings with maria, live on fox business. Massmutual healthbridge is a free Life Insurance program just for healthcare workers fighting covid19. Apply today at massmutual. Com healthbridge in a highly capable lexus suv at the golden opportunity sales event. Lease the 2020 nx 300 for 339 a month for 36 months. Experience amazing at your lexus dealer. Maria welcome back. Violence in chicago continues, a shooting last night outside of a funeral home on chicagos south side left 14 people injured and several others in serious condition. The department of Homeland Security is now planning to send dozens of federal agents to the city. Mayor Lori Lightfoot speaking yesterday on how she plans to work with those federal officials and avoid controversy like in portland. Unlike what happened in portland, what we will receive is resources that are going to plug into the existing federal agencies that we work with on a regular basis to help manage and suppress Violent Crime in our city. Ive been very clear that we welcome actual partnership but we do not welcome dictatorship. We do not welcome authoritarianism and we do not welcome unconstitutional arrests and detainment of our residents. Maria who said anything about dictatorship and authoritarianism. Dagen mcdowell, you had 14 people shot last night, you had 25 people shot on monday. This is just the last couple of days in chicago. Dagen the language the democrats are using, theyre trying to paint President Trump as aduefu adolf hitler. Mayor Lori Lightfoot tweeted this, a few hours before that shooting at a funeral home. Under no circumstances will i allow Donald Trumps troops to come to chicago and terrorize our residents. The terror comes from criminals that this mayor and other people who are left wing and liberal refuse to condemn and prosecute. The terror is coming from criminals. Were living in a world of left winwing lunacy where enforcing e laws and fighting crime and protecting the residents are abomabominations. Some of these individuals are so antitrump they literally are procrime. Thats how insane this world is. Maria and even more than that, theyre literally bidding for the Chinese Communist party, i mean, nancy pelosi called the coronavirus, cabot, the trump virus. I mean, is she working with the Chinese Communist party now . Cabot well, for Many Democrats if that means opposing President Trump they dont have a problem with that. Many of these issues so out of touch the democrats are ahead of the election. The Defund Police for example, for the average american, suburban moms for example which the Democrat Party will have to win over they are swayed and moved by safety in their communities and when they look on tv and see the record numbers of crimes start to increase, the last thing they want to do is defund the police. In chicago, the fact that the mayor would have the gal to say the government is terrorizing, not their own citizens. More people have been killed in chicago than in the iraq and afghanistan wars combined. For her to i think this is a losing message politically as well as morally. Maria yeah. Well, were going to keep watching this obviously. We want to take a short break but weve got breaking news on a pact with pfizer, between pfizer and the u. S. Government for 100 million covid19 vaccine doses. Were going to talk with stephen hahn, the commissioner of the fda coming up. First, diversity in Corporate America, well take a closer look at how companies should address this Pivotal Moment in the United States. Plus this, a coronavirus mansion, Beverly Hills estate built with all the amenities to outlast the covid19 pandemic coming up. You are watching mornings with maria live on fox business. My name is janelle hendrickson, and im an area manager here at amazon. When you walk into an amazon fulfillment center, its like walking into the Chocolate Factory and you won a golden ticket. Its an amazing feeling. My threeyearold, when we get a box delivered, he gets excited. He screams, mommys work when the pandemic started, we started shipping out all the safety stuff that would keep the associates safe to all the other amazons. All of these are face masks, weve sent well over 10 million gloves. And this may look like a bottle of vodka. When we first got these, we were like whoa [laughing] with this pandemic, safety is even more important because theyre going home to babies, theyre going home to grandparents. So, our responsibility is to make sure that they go home safe every single day. So, our responsibility find your getupandgo. Find pants that arent sweats. Find your friends. Find your sense of wander. Find the world is new, again. At chevy wed like to take you there. Now during the chevy open road sales event, get up to 15 of msrp cash back on select 2020 models. Thats over fiftyseven hundred dollars cash back on this equinox. Its time to find new roads, again. But what if you could stdo better than that . K. Like adapt. Discover. Deliver. In new ways. To new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back. But bounce forward. Thats why were helping you stay ahead and adapt with a network you can count on, 24 7 support and Flexible Solutions that work wherever you are. Call or go online today. Maria welcome back. Addressing race and diversity in Corporate America. Since the killing of george floyd tensions are rising across the country amid calls for justice. My next guest wrote an oped to ask for social change. Joining us now, treasurer sean wooden. Tell me where we are and what inspired you to write this article. Where we are on this in america. We are at a crossroads in america once again around race and i was inspired to write the oped based on a conversation at the dinner table with my son after Ahmaud Arberys killing, after Breonna Taylors killing and he asked me whether or not it was safe to jog in our neighborhood and hes a runner. And so that was my personal call to action. And as a treasurer, i have a front row seat to wall street and Corporate America. I understand the role and influence and privilege that they hold in our society and i understand that they can do good and thats why i have called for a coalition of the willing, not the perfect, but ceos that im convening around addressing systemic racism. Maria i dont understand why so few leading ceos and cfos are black. What is the issue . What is holding this back from having more africanamericans in the Corner Office . I think there are lots of reasons for it but it starts from the pipeline in Corporate America and a lack of a developed pipeline for diverse talent. It starts in the mentoring and sponsorship in corporations and making people with talent have the opportunities to rise. And it starts from a commitment at the top, quite frankly, and thats why ive been so focused on Corporate Board diversity as well as the csuites. But diversity should be treated as a business imperative. Theres an article in the wall street journal recently that talked about how kind of diverse and inclusive environments are higher performance workplaces. Theres a study, i think it was boston consulting group, that showed that fortune 500 companies with diverse board as compared to those without outperform their peers. So theres a strong economic argument for diversity and that business imperative i think with that kind of leadership will help drive change. Maria yeah, i love that point. Its a great point. Dagen mcdowell, jump in. Dagen maria talks about the representation or lack thereof in leadership roles in Corporate America among black individuals, black men and women. But i will go to the root of the problem. Im curious what you think about this. And i talked about this repeatedly for a long time. Where your most Progressive Companies in this nation, particularly in technology, have poor representation in just among all employees for black americans. If you look at facebook as just one example, among technical jobs at facebook those are held 1. 7 of those jobs, 1. 7 are held by black individuals. Even among just the overall all roles, its still under 4 . Where are these liberal Progressive Companies in providing opportunity to black americans . I agree with you, although i will note that this is not a liberal, progressive, left, right issue. Right. We should approach this work as an American Issue and a country still trying to reach our true ideals and technology industry, horrible, but there are no standouts in this regard. I was a partner in a Large Law Firm and less than 1 of partners are africanamerican. This is a problem across sectors and we do have the talent that exists. I believe a critical piece thats missing and ive seen it is the lack of intentionality to actually reflect what america looks like and to identify talent. Ill give you an example. I think when developing younger talent within organizations, theres a propensity for people to mentor, to take under their wing people that look like them. And when you dont have africanamericans who are in more senior roles, that disadvantages africanamerican young professionals. And so this is a problem that we have to be very thoughtful about and we cant treat it as a political issue. Its an American Issue. Dagen just to be clear, i only call out the Technology World because they do tend to be much more progressive than other parts of Corporate America. And they like to talk about their progressive ideals and im just trying to force all of these companies to walk the talk and to do more and that its unacceptable, the poor representation of black americans at every corporation. You raise an excellent point and its a conversation that ive been having as part of this call to action with ceos about translating all of the words, right, weve had a lot of great kind of pr operations, expressing words around race and diversity and Police Reform and these things in america and its about translating those words into concrete actions, to make change thats meaningful and those are the dots that im working to connect as we speak and its technology, its pharma, you can go on and on. Maria yeah. Yeah, for sure. Sean, thank you for doing what youre doing. We will check back with you. Thanks very much. Treasurer sean wooden joining us this morning in connecticut. The department of health and Human Services announced an agreement with pfizer to produce and distribute 100 million doses of a Covid Vaccine, the government will pay 1. 95 billion, this agreement also allows the government to acquire an additional 500 million doses, pfizer has been collaborating with a German Company to develop a vaccine. The stock is up this morning, both of them, pfizer up about 5 on this news. Biotech is up 7 and a quarter percent. Well speak with the commissioner of the fda, dr. Stephen hahn coming up. Well be right back. Maria welcome back. Good wednesday morning, everybody. Thanks so much for joining us. Im maria bartiromo. It is wednesday, july 22nd. A look at markets right now. We have markets mixed here, largely lower, the dow industrials down 56 points, s p 500 down 5 and a quarter. The nasdaq is up 21 points as tensions rise with china. Futures are off of the lows of the morning with the nasdaq looking toward gains this morning once the opening bell sounds. This after the dow and s p 500 extended a winning streak yesterday but the nasdaq took a breather, yesterday the dow industrials were up 159 points, about two thirds of 1 . The nasdaq was lower by 86 and the s p 500 was up 5 andahalf points at 4 00 on wall street. Global markets this morning largely under pressure as the concerns over coronavirus spike across the country, those concerns are growing, the fq100 is down 53, the dax in germany lower by 48. In asia overnight markets were mostly lower with the exception of china. The hang seng index was down 2 and a quarter percent. Snap shares are under pressure this morning following earnings last night. Jackie deangeles now with the details. Thats right, maria. This is really interesting. Snaps earnings took that hit from the covid19 pandemic. The Company Reported a wider quarterly net loss of nearly 28 from last year to 326 million. Now, the owner of snapchat also disappointing investors after the number of daily active users missed the streets estimate but revenue did climb 17 . Shares of snap are lower in the premarket by more than 7 . And attention costco shoppers, its popular half sheet cakes are back. The company shocked fans in may when it suddenly decided to discontinue the sweet treat. Customers filed complaints. They signed change. Org petitions. It actually worked. The costco Instagram Account posted this image yesterday from an undisclosed location of the companys beloved half sheet cake with the caption costco sheet cakes are back by special order only. We reached out to costco for comment but havent heard back. All right. And heres whats trending this morning on foxbusiness. Com. Best buy is increasing its starting hourly wage to 15 an hour and giving employees a 4 raise as coronavirus drives its sales. The company says its Second Quarter sales are up about 2 andahalf percent and the online sales have jumped 255 . Mens warehouse owner says its laying off 20 of its workforce and closing up to 500 stores as a result of financial losses its seeing from the pandemic. Verizon and walmart partner up on a new venture that allows yahoo users to purchase groceries from their email inbox. Maria its getting easier and easier. Jackie, thank you so much. Phillip morris, the company hind marlboro cigarettes seeing a stock boost after Second Quarter earnings beat expectations. The company reinstating full year guidance as sales of the heated Tobacco Products continue to post strong numbers through the covid19 pandemic. Joining me now is the ceo of phillip Morris International. Andre, its great to have you back. Thank you so much for joining us. Thank you for having me. Good morning. Maria characterize the quarter for us, not just in the United States, what you saw across the world, andre. Well, i think that was a rather unprecedented quarter, i would say, because due to the pandemic obviously we have no reference points for us to navigate and compare. So we saw due to the confinement clearly change in the habits of consumers. So it is true that our sales of comcome combustable cigaretts were hit during the quarter. We came out of the quarter better than expected and most importantly, heated tobacco product as you mentioned at the introduction continued to grow despite the fact that we had to take our field forces off the ground during the restriction period, especially in europe, but also many other countries. And we had we moved to more digital interaction with consumers including remote coaching when they acquire the product and essentially the whole performance of our heated toe batobacco product exceeded r expectations, continued to grow and actually we added almost 900,000 new consumers during a very, very difficult quarter. Thats i think the highlight. Yes, please. Maria no, no, go ahead, what are the other highlights . Obviously, now we see in europe restrictions easing, although were far from being back to normalcy, as you know. We had obviously in certain developing countries, especially southeast asia, also an impact on consumers due to the confinement, we had a lot of people that are daily income workers that didnt have access obviously to daily salary so we saw a decrease in consumption but there also the situation is easing up now. So i think moving forward, assuming that we will not have a repetition of National Confinement or restriction and i hope and will hope this will not happen, we assume we will have some local restrictions if theyre epicenters of the pandemic again. So we now have to evaluate what is the real economic aftermath of the crisis and i must admit, and other companies are in the same situation, its very difficult to exactly quantify. But somehow we have more reference points now, if we go to the 2008 crisis, where we had economic depression. I think we know much better how to navigate this environment, although it will have an impact both on consumption and some downtrading, obviously until the economy recovers. So the second important aspect maria so you are expecting some so you are expecting some downtrading, maybe second half of the year. I wanted to ask you about digital and online in terms of delivery. Do you see increasingly customers buying the Tobacco Products digitally . Do you think this is going to sustain once were out of this pandemic . Well, Tobacco Products, cigarettes are rarely sold online. Very, very few markets that authorize the sales because its an exciseable product, to avoid crossing borders and so on. So when i refer to digital, it was not about sales of consumable products. Its much more our heated toe bay coproduct tobacco product, where people couldnt physically go to the store to buy the product, have a guided trial, learning how to use the product and also what is benefits of the product and also the fact that this is not a riskfree product and it is containing nicotine, so its addicting. So we moved a lot of these interactions to digital. Also, the product is electronic. There are questions consumers have, also aftersale surveys and that we moved fully to digital almost and consumers reacted very positively to that. So i think overall, after covid, both in terms of purchasing habits of consumers, weve seen more ecommerce purchases and as far as as long as the pandemic is around and it will be around for a while, unfortunately, we will see this. Also the other aspect of that is, as companies we learn to work remotely and phillip Morris International, were trying to integrate now the learnings of the Remote Working into the daytoday work as we all come back to the offices. So i think Going Forward we have much more of a mixed world. Maria i wanted to ask you about the heated Tobacco Products in europe and emerging markets. There is some conversation about a slowdown happening in japan. But before we go there, andre, what can you tell us about the safety of vaping . Because there is some concern on the part of parents about the safety of vaping. What can you tell us . Well, you know, there has been a lot of controversy around vaping in the u. S. So what i would say is i mean, the issue started clearly with what we call a valley, so essentially people inhaling an aerosol that created lung problems and we also had unfortunately and regretfully deaths. But this product after investigation by about the fda and center for Disease Control proved to be much more related to people putting an oil, and our lungs are not made to dissolve that. Thats why it happened. If we have properly manufactured, especially closed system products, then if they are properly manufactured i think although the product creates nicotine and they are addictive, in terms of relative safety to cigarettes, clearly they are better products than cigarettes. In terms of safety of the product themselves, they shouldnt create a problem. Maria this is an issue that is important because parents are seeing their kids use vaping products. Andre, its great to see you. Thank you so much. Well be right back. 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. Maria welcome back. Charged for defending property, missouri governor mike parsons says he would pardon the st. Louis couple who brandished guns on their front lawn when protesters swarmed their property. Listen to what was said about the charges from the st. Louis circuit attorney. The circuit attorney for the city of st. Louis is an elected official. She works on our tax dollars and she has taken it upon herself not to protect law abiding citizens against criminals but to protect criminals against law abiding citizens. Maria joining me right now is fox news senior judicial analyst judge andrew napolitano. Great to see you. Your reaction . Well, the charge of brandishing a gun, if you read the full charge, its brandishing a gun for an unlawful purpose. The mccloskeys surely brandished their guns but it was for a perfectly lawful purpose. Missouri has a Castle Doctrine which basically says you can use a weapon to keep intruders off your property and out of your house. And when Justice Scalia wrote the heller decision, the modern definition of a right to keep and bear arms, he said its a personal right and it applies in the home and in the land around the home. So theres really no legal basis for this charge. But its a very serious charge. I think the prosecutor herself, maria, has some doubts about the charge and ill tell you why. Because at the same time she announced it, she said she would not oppose letting the mccloskeys go into a pretile prl diversion program. At the end of the six months, the charge is dismissed. From my experience, prosecutors never, ever, ever, ever, add as many ever as you want, make the proposal at the same time they make the charges unless they have doubts about whether or not they can prove the case. Missouri is pretty good on gun rights. But its another example of state officials wearing away, attacking the federally protected right to keep and bear arms. Maria i see. Let me switch gears, judge. Ive got to ask you about Jeffrey Epsteins situation. A lawyer for epsteins alleged associate, ghislaine maxwell, now asking for a gag order. They want a gag order on her case in order to protect her chances of a fair trial. President trump was asked about her and the case during yesterdays covid briefing. Heres what he said. I just wish her well, frankly. Ive met her numerous times over the years, especially since i lived in palm beach and i guess they lived in palm beach. But i wish her well. Maria he said he didnt know anything about it but that he wishes her well, judge. Where are we on this case . What do you think . Well, shes innocent until proven gil ti guilty, obviouslye publicity because of the connect to epstein. Look at how the fbi leaked information about the president. The feds are the best leakers in the world. She cant get a judge to silence the lawyers of her victims. They have a First Amendment right and theyre not in the case. But when the feds try to poison the jury pool, whether its fbi agents, federal prosecutors or some people in between them in the federal government, they do affirmative harm to the constitution. Shes entitled to a fair trial. Shes entitled to have a jury, a fair jury, not a poll lieutenantepolluted jury,decided these crimes. Maria we will everybod will l, judge. We will be right back. We have congressman devin nunes top of the hour. Stay with us. Maria welcome back. Luxury realtors not letting the pandemic get them down, getting creative to put house hunters into that dream home. Gerri willis with that report. Thats right, realtors have found a new market, people afraid of covid19. Listen. Looks like just another Beverly Hills mansion on the market with all the bells and whistles. Pool, check. Oh, and a fountain. A grand entryway, yes, this house has it too. Want to play cards . You can do that as well. We just came on the market and we are priced just under 19 million. People come through the property. They dont want to leave the downstairs. But wait. Theres a difference. This is a covidfriendly home. Theres a covid cleaning room in the garage, complete with automatic bootie dispenser for when friends visit. You can grab a mask and a bottle of water and a robe. The Movie Theater is a zoom room, complete with space for kids to do homework and mom and dad to do business meetings with popcorn of course. The design of the home of the future, not just mansions, will look more like this house with the exception of one thing. A special delivery from the famed Beverly Hills hotel which by the way is right around the corner. Free dinner for three months. So you can have the famous mccarty salad and Chocolate Souffle five nights a week. Better yet, you never have to leave the mansion. Maria pretty cool stuff, gerri. A souffle every day, would you. Gerri willis, thank you so much. Well take a break. 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Book your free virtual or inhome Design Consultation today. Good wednesday morning. Thanks for joining us. Im maria bartiromo. Wednesday, july 22, top stories 8 15 a. M. On the button on the east coast, we have breaking influencing this morning, overnight u. S. Ordering china to close its consulate in houston, as reports come he in of documents being burned on that site. Meanwhile, china trying to steal of covid19 research two chinese nationals accused of hawking into companies in the United States other countries. The development of treatment and vaccines for covid19, you heard that first back in april, when senator tom cotton joined me on sunday morning futures. You believe that they are stealing intellectual property, right now, as we speak. I have little doubt that Chinese Intelligence Services are actively trying to steal americas intellectual property as it relates to the adviser that you say they in learned on the world. Unleashed on the world. Grim prediction on coronavirus yesterday. It will probably, unfortunately, get worse before it gets better. President urging people wear masks saying that a vaccine remains a top priority for his administration. Coming up 10 minutes time fda commissioner dr. Steven hahn is here more on the announcement that u. S. Government is turning to pfizer to produce 100 million does of the covid19 vaccine futuresoff the lows this morning following the vaccine news pfizer deal take a look where we stand dow futures right now down 68 points, the nasdaq is up 9, s p futures down about 6 1 4 after dow s p 500 continued winning streak yesterday nasdaq decline of session of 86 at 4 00 on wall street today one of the busiest days for earnings wig names reporting Second Quarter tonight we will g get microsoft chipotle cfx looking for tesla after the bell has been on electrifying run this year reports earnings tonight, plus weeklong look instagram stars continues zach king is here mornings with maria is live right now. Fox business alert u. S. Ordering cloud cover of the chinese consulate in houston after reports officials were burning documents in the court yard upon laerpgs of eviction china said it will retaliate with firm countermeasures should United States proceed with this move this coming as u. S. Accusing two former engineering students of Hacking Computers and stealing trade secrets from more than a decade, the hackers allegedly stole for profits for themselves as well as Chinese Intelligence Services, recently articulated firms involved in covid19 vaccine research. Joining me right now california congressman house intel he Committee Ranking member house ways and Means Committee member devin nunes always a pleasure to see you. Thank you so much for joining us. Great to be with you this morning maria. I want to talk about china first, i know that you have done a investigation into chinas predatory behavior you have been doing this now for four years, weve talked about this a lot over those years, and the probe continues. What do you make and what can we understand about this closure of the houston consulate . Well, quite unusual for ng like this to take place if you go back to when President Trump days campaigning i dont think American People nor chinese nor anyone believed United States was finally going to take china on. So what is happening here is because of the chinese predatory activities spying, stealing all the things that they are doing, im giving i have not been briefed on this just happened last 24 hours something bad was happening, by chinese operatives in the area only thing to force them to close the skwut pretty unusual. So far we know, of countless situations where chinese hackers, hacked into our data or just stole data he indictments for professor head of Tennessee Department of a harvard working for ccp, you had another he arrest university of arizona Cleveland Clinic walk us through what Chinese Communist party has been doing now for decades, and why this president made china one of his main priorities. The way i would look at this they developed probably the most powerful capability over the internet. They have done this in a variety of ways, but if you go back, when House Intelligence Committee republicans, first brought this to nations attention about a decade ago, and that was the prevalence of huawei gte technologies proliferating around the globe being subsidized Chinese Companies Telecom Companies subsidized around the globe. At that time it took our interest a red flag why would with something offer something free like this when you look at it, it was a way to set up, little nodes across the globe in order to grab peoples communications in countries communications, so overtime developed a very sophisticated system the second issue now using some capabilities coming in targeting our universities, and our companies. And take all that together, stealing intellectual property i can give you, example after capital i have a company in my district that that makes the type of equipment. They found exactly replicated copies in china that china was trying to sell, that was just a Small Agricultural Company Agricultural equipment company, so they are very good at stealing peoples secrets. Maria jea you have also gaited how they have put mill bases across the world, makes it easy to control trade, wherever that is is that right . Yeah they have been very bras when an theyve done recently, i think we all know about what is happening in hong kong, what they have done in South China Sea essential claiming entire South China Sea involves a dozen other asian countries, really brazen activity getting into conflicting with india under radar opened up a base, military base, in the indian ocean at entrance to suez canal kind of unusual everybody kind every ignoring we were investigating in this committee, i just want to give credit where credit is due this administration the Trump Administration has said number one not going to take in nightmare from you we want to get along do a trade deal not going to have huge disparities in trade gaps, and we are not going to let you steal our intellectual property, so, our government has a whole government approach taking it very seriously as we should i am glad it is finally happening. You have done a great job on this as you have on the origins of the russia probe lets get to it last week declassification fbi dominate showed fbi new early in january steele dossier was garbage ghi agents interviewed subsource as i reported, now for months, the subsource told the fbi that it was garbage the dossier was not to be believed that it was just made up. And in fact, Jim Comey Andrew Mccabe kept going renewing renewing warrants to spy on the trump campaign. Where are we in this investigation . As we await the release of john durrhams investigation on origins of the russia probe i expect dooilts we know incriminate outsider what happens you we made 14 criminal referrals we have addition referral we made asking for investigation, so weve been very clear House Republicans have been very clear this is what we expect, we dont know what durham is up to i believe is a good thing, are, that you should have a separation of powers between legislative branch and executive branch, but our investigation, continues, maria, and i would i would think draw your attention to something is that happened last week, so we have known that steele supposedly had sources we long inspect ladies a lot of times joked steele basically made this up supposedly had six sources what happens as things declassified there was a Court Case Involving steele in london on monday where we now see direct links between Brookings Institute leadership and creation possibly of the steele dossier and dissemnation of the steele dossier at the time we know there were Text Messages backandforth basically the leading center left, institution, here in our Nations Capital it has northbound of fellows, they focus on National Security. I think they have really questions needed to be answer hered about what on earth was president of brookings doing texting backandforth to steele why accepting dossier . There is a lot here, then lets not forget last four why are years brookings was cheer leader for the dossier they are out there defending this dossier they had this fake group called law fair group out there daily basis all there for number one attack House Republicans in our investigation, four years running, by the way, got everything wrong. Absolutely i know. Al defending one thing always defending dirtiest cops you have the former president brookings now group stood up sitting there chaer leading on dirty cops a lot to answer for we also dont know are any steeles sources were they related somehow to brookings . I think brookings needs to answer those questions. Wow. So Brookings Institute now in the spotlight we are going to keep following that let me ask you this, congressman. Mueller did an investigation, which, of course, cost 40 Million Dollars hype talked about while doing it but you knew that the fbi heard from the subsource, you saw these declassified dominates so jid John Ratcliffe you new fbi new early on dossier was garbage how come mueller didnt know how come we are getting all these things now so public understands, fully what went on Robert Mueller had access everything to he had to know this, how come we had all those months of Robert Mueller we had he had access to all of these papers documents that are now finally being being disclosed declassified yet he took all of that time everybody talking about how important the Mueller Report is, where were these documents from mueller . Were not sure that mueller even really knew what the hell was going on because he clearly when he testified about a year ago today, he testified if you remember this a long time ago a lot of water under the bridge since then he didnt even know what was in his report couldnt answer most basic questions he wouldnt even respond about fusion gps how involved in the a creation of steele dossier did nothing on dossier withs whatsoever i am not sure the fact he couldnt answering our questions means that he probably did not know what was going on means other people were running that investigation. He was more like an avatar so to speak. He wrote oped in Washington Post about roger stone, more come on testify to congress you can come brief us you can sit down with with our lawyers. He probably didnt write that oped is my guess, Lindsey Graham invited him to testify to the United States senate, mueller hasnt been seen, since a year ago, except for this goofy oped that was in the Washington Post. But look, quick before we go adam schiff chairman of the committee now the intel he committeeure Ranking Member what does he have to say now after all those months where he said publicly over and over again, that this president committed collusion in plain sight . That is adam schiff . They wont this every day i mean you have nancy pelosi speaker of the house who called majority leader essential insinuating majority leader republican has something with putin in russia democrats told lies long enough maybe driven themselves crazy that they actually now believe it, i dont think they do. I think they just know they have a complicit media in this country on their side, by the way, media complex have dossier too they knew damn well the dossier was phony going back to 2016 they were involved in this, creation of it. So, when you look at what democrats are doing here, maria they see a russian here a russian there essential dont really see them, but they are telling people they see them because they want half of america to believe, that trump and republicans had something to did with russia when key was they were the ones had something to do with russia. Totally missed china real adversary here devin nunes joining us in washington next fda commissioner here dr. Stephen hahn on President Trumps warning you are watching mornings with maria live on fox business. Th a higher risk of stroke due to afib. Not caused by a heart valve problem. So if theres a better treatment than warfarin, i want that too. Eliquis. Eliquis is proven to reduce stroke risk better than warfarin. 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We are in the process of developing a strategy that is going to be very, very powerful we have developed as we go along, some areas of our country are doing very well others are doing less well. It will probably, unfortunately, get worse before it gets better. Something i dont like saying about things but that is the way it is. Maria well President Trump on escalating Coronavirus Crisis yesterday meanwhile, the department of health and Human Services announcing a deal with pfizer to produce distribute 100 million doses Covid Vaccine could acquire additional 500 million doses as well pfizer working with biotech to vep that the commissioner food and Drug Administration dr. Stephen hahn thanks for joining us assess the situation after people saw the president come out, for the first time, in another press conference yesterday First Time Since may, maybe we are thinking things are getting worse that he is coming out again where are we in this dr. Hahn . Thank you, maria great to be back with you appreciate given the opportunity. The president was spoton in what he said we have to take this seriously. The virus is still with us. We need to take the appropriate Public Health measures this is how america is going to remain open and we must remain open facial mask wearing social distancing handwashing all things president mention the Important Message to American People right now, everything that weve seen all the data that weve seen as White House Task force is that if we follow those very common sense approaches to Public Health we will have a decrease in the cases of covid19. So really important part of this message, but i think the president was right. This is serious. It may get worse before it gets better. We just need to take measures right now that is what we can do to combat the virus. Tell us what you are working on the pharma sector because there are also there is a lot of work happening with therapeutics so we can take therapeutics use it as abridge until we actually do have a vaccine where are we on that . And explain therapeutics for us. We have a very robust therapeutics pipeline in 24 country great Public Private partnerships the American Research Clinical Research machine responded beautifully right now we are overseeing at over 140 Clinical Trials, that are looking at therapeutics for treatment for covid19 in addition to that there are more than 450 in the pipeline just give you a couple examples, you know are remdesivir was authorized by fda reduces hospital stay dexamethasone has been shown to have amazing 0 reduction in mortality, in this hospitalized sick patients as mr. Had a Convalescent Program take antibodies from one who recovered from illness give it o to one sick we are waiting on effectiveness results from that problem a great demand for that doctors are writing it, finally aub in about of incline cal trials where you can sinthetically generate aides give to people who he had covid19 that is important because that can act as a bridge i think can be given not just as treatment, but could also potentially if data support it be given as injection to preventive prophylaxis against acquiring disease robust pipeline and that gets us to the vaccine. Maria meanwhile there are cases more widespread than previously thought, according to new study, from the cdc the number 6 effect offed people anywhere from two to 13 times higher than reported, study noting 40 infected people do not developmental symptoms could pass the virus to others. I think that is why Public Health message about mask wearing hygiene, et cetera, is so important this is different than what weve seen with other viruses a significant, 40 a large number asymptomatic people have virus dont know we want to make sure they are in tune to this to protect vulnerable, i think the cdc data are really important. Maria yeah. Because. Maria hold that thought i got to ask you about upcoming flu season i got to ask but flu season we will be right back with more stephen hahn stay with us dr. Hahn. Re. Re. And now that you can lease or buy a new lincoln remotely or in person. Discovering that feeling has never been more effortless. Accept our summer invitation to get 0 apr on all 2020 lincoln vehicles. Only at your lincoln dealer. 49i found you good job. Now im gonna stay here and you go hide. Watch your favorites from anywhere in the house with the Xfinity Stream app. Free with your xfinity service. Now any room can be a tv room. Stream live tv, on demand shows and movies even your dvr recordings. Download the Xfinity Stream app today to stream the entertainment you love. Xfinity. The future of awesome. Maria we are back with fda commissioner dr. Stephen hahn sorry about that in your opinion middle of a comment he in terms of therapeutics but i want top ask you about, the o upcoming flu season please finish your thought there, dr. Hahn. Well just about the pipeline a bridge to vaccine, and as you know the vaccine trials are ongoing right now, we expect to see data when trials are finds fda at that point will basically call the balls and strikes ubs with respect to the to safety efficacy our solemn will promise to the American People. Have so what can you tell us dr. Hahn about upcoming flu season a lot of people are wondering are we going to see a return of high coronavirus numbers . Is it going to be worse because of the coronavirus, and when should we be getting flu shots or should we . What is your take on the upcoming flu season . Yeah, i think we what we can say we need to be prepared for that. I learned long time ago, maria, that cancer doctor i dont have a crystal ball we need to have in place, what we need to respond to flu plus covid so i will give you a couple examples fda is doing we are evaluating the number of different tests that can test, simultaneously, at the same time, for flu and covid so that if someone goes in to see dr. Flu season conditionbe made determination whether flu or covid19 we are working closely with cdc manufactures of flu vaccine to make sure that we have enough flu vaccine available so again, follow the cdc guidelines with respect to the to flu vaccine we definitely want more people to be vaccinated gebz flu we are waiting for covid 129 vaccine as well. The other part is that there are medications to give, to reduce the severity of flu weve been working with manufacturers to make sure that there is adequate supply of those as well, no crystal ball maria but obviously, we want to be prepared so americans can have the right medical countermeasures in place for covid19, and for the flu. Maria so if i were to get a flu shot does that make me any more protected against covid19 . Well the vaccines are specific for influenza versus covid19. Maria okay. To i would think not, but that doesnt mean one should not get flu vaccine, flu is also a significant Public Health problem in the country. Maria understood you, when do you recommend people get flu shot do we do it earlier this time in august, or any thoughts . So, i would wait for the cdc guidance coming out with a robust guidance about flu season for this upcoming year i would definitely follow their recommendations, fda roll in this help ensure supply of vaccine and therapeutics. Quick dr. Hahn before you go you and i talked about china in the past, they are trying to steal our covid19 vaccine data. Your reaction to what has taken place with charges against the hackers . Yeah, i think we need to take very seriously, to anybody who is trying to look at data that we have, i fda has very robust Cyber Security program we take very, very he seriously the protection of confidential commercial information, it is something that is we absolutely have to do. Number one it is National Security issue, two, i have the is also a Public Trust Issue we need to make sure, that those data are safeguarded so those who develop, manufactures, can put that in place once we determine it is safe and effective. Dr. Hahn great to see you this morning thanks very te much for joining us great information from you, as usual. And we will see you soon fdc commissioner stephen hahn well be right back senator marco rubio on the other side. Now is the time for a new bath from bath fitter. Every bath fitter bath is installed quickly, safely, and beautifully, with a lifetime warranty. Go from old to new. From worn to wow. The beautiful bath youve always wanted, done right, installed by one expert technician, all in one day. Weve been creating moments like these for 35 years, and were here to help you get started. Book your free virtual or inhome Design Consultation today. Maria fox business alert breaking overnight u. S. Orders cloud cover of a chinese consulate in houston, texas, that news coming as a fire broke out at chinese consulate in the houston last night local reports say this officials were burning documents in the court yard upon learnings of eviction. Member of the senate foreigning rooefgs select technologies Appropriations Committee marco rubio great to talk with you this morning, you have done a good job in terms of trying to hold China Communist Partyaccountable you said china houston consulate massive spy center forcing to it close i dont think roefr due a report now china is considering closing u. S. Consulate in wuhan tells us what is going on at consulate in texas senator. Thank you, this consulate is basically kind of a node of massive spy operation commercial espionage defense espionage also influence agents to try to influence congress, are use businessmen as fronts in many cases to try to influence congress other political leaders state and local level so it is long overdue it will be closed the secretary of state probably already has ambassador called him in told him we are going to do this told him why given agents we know who they are 72 hours to leave the country if they dont leave within 72 hours will be he arrested as sfies you will see every time every country does it when your embassy you consulate is closed they start destroying everything in there plan of destruction for us marines in charge of doing that if someone closes our employee will burn documentsspread documents destroy computers we saw something similar in San Francisco now what will happen chinese will respond, they will close one of our facility seminar in china probably wuhan. So unbelievable weve been talking about this now for years, and durk the president s talks the trade talks with chinese officials bent going backandforth saying we want ip theft stopped chinese officials would not agree is this a strategy is theft of strategy to grow for china . Yeah, absolutely. Look, they are also investing billions of dollars in industry they are trying to become an Industrial Power on pare or greater than the United States particularly, in the new industries that will dominate 21st is this your statement in addition steel secrets you can imagine you talk earlier about vaccines, so we are investing billions of taxpayer dollars, in this race for a vaccine, so taxpayers create baseline these guys come in steal it for free, start their research, from that point forward. So it cant continue so we have seen this over and over again whether forceed intellectual property transfers whether they come in through Front Company buy innovate American Company steal secrets that way or in this case hack into a computer do all three very aggressive about it more than anyone else in the world it is not a small part of the advances they have made to this point many big leads they have made in technology are result of stealing it from us or someone else. Maria unbelievable, you mentioned that hacker situation the u. S. Accusing two former engineering students, students for allegedly Hacking Computers stealing trade secret more than a decade hackers stole for profit for themselves as well as for chinese intelligence, recentlying targeted firms involved in covid19 vaccine research, senator tom cot op your colleague told us about this, literally back in april, folks importance of protecting american data, here is what he said in terms of intellectual property. You believe that they are stealing intellectual property right now. As we speak, lets talk a bit about that because the whole world is is looking for a vaccine. And i wonder is china trick now to come out of this trying to save face look better than the roest of the world while coming up with a vaccine before the United States. That is what happening right now with regards to that kind of snooinz maria China Communist Party has been stealing americas but will property for decades not going to magically stop in middle avenue pandemic in middle of a pandemic what is most vuvenl intellectual property he Research Great laboratories Life Science Companies are doing on prophylactic drufgs therapeutic destruction ultimately vaccine i have little doubt Chinese Intelligence Services are actively trying to steal americas intellectual property as relates to the virus that they unleashed on the world, of course, they want to be the country that claims credit for finding those drugs finding a vaccine, and then use it as leverage against the rest of the world. Maria unbelievable senator, this is exactly what they are doing how are we going to stop it . Because i know that the ccp is very effective at creating lobbies, they lobby universities, and give all grant money to universities do what they say they lobby hollywood, and that enables them to dictate how a movie is produced they lobby academia so youve got all lobbies in america, basically agreeing with the ccp how do you stop it . Well you know for the better part two years i have been part of this road show along with fbi, court and other means we have brought in academia brought in if chamber of commerce, brought in Telecommunication Companies sort of reading into this threat you are right what there is still resistance out there you have companies built an entire Business Model around doing business with china, inc. , under Trump Administration we have come a long way last three years nowhere near a where we needed to be in terms of being aware of this threat addressing it we have come a long way i think there are encouraging signs both in academia other places, about this tleet, now we still have places nba others clearly want to be able to make money off Chinese Market dont really want to say anything that offends chinese but you have seen a growing amount of awareness in places that was there isnt two or three years ago the administration, and allies here in congress, quite frankly, both parties on this issue, that have deserve tremendous credit for continuing to push this issue we are going to continue to do that we are nowhere near where we need to be on it. Maria and you deserve a lot of credit for introducing the bills that you have you introduced the will recently about increasing he oversight of chinese other Foreign Companies listed on american exchanges what do investors need to know understand better about these chinese stocks that are trading in the u. S. . By the way massive rally in the last couple of months. I think they deserve to know same thing about every other company on stock market part of the would be we dont have equality in essence Chinese Companies get to do things in the United States they have access to markets they have access to equity markets, but we dont have sez to theirs they dont even play by our rules when they have access to our markets if you just went back to basic notion china no longer a poor developing country now, a developed country, second largest economy in the world, no more of the unfair stuff, we get we get to do in their country when they get to do here if were not allowed to do it there they are not allowed to do it here second cant come to america kik business under special rules give advantage whether stock market anywherewhere else over american compensates we cant do that we are deindustrializing our countries will pay a tremendous price if we do not reverse that. We need jobs back part of that job creation is going to come, from the manufacturing, some of the things we need here. Like amazing that most americans learned that, you know, ares the 70 or 90 active ingredients in prescription drugs are made in china we cant rely on China Communist Party for the antibiotics you not be a great power you cannot be a military power you cannot be a geopolitical power you cannot be an economic power if you are not an Industrial Power. A nation that is to have an industrial capacity, and it has to identify certain Core Industries that are critical to your economic National Security and you must have a xh domestic capacity to do that if you dont, then you become a very gedependent country very vulnerable one. Industries what they need coronavirus stimulus round four you have been kneedeep in talks Mitch Mcconnell says economy needs another shot of the adrenaline to keep recovery going, the major concern, still over payroll tax cuts, let me know tell us what you think is most important, in terms of the fourth bill here what do you have and colleagues talk about now senator . Well, first of all i am also concerned about the debt i will tell you given this pandemic if we dont do something, the economy is going to suffer, lasting structure damage very hard for this country to have growth it is going to need to get the debt under control going to last a decade we need address it got to get people back to work a more targeted second round of ppp i think theerngs to help people get back to work better than that debate what do you do for individual americans, do you increase the a unemployment, or do you continue this extended unemployment by another number of months we are hearing from Many Employers that it is making it harder to retire heem we cant ignore that when they raise this they have to be taken into account president pats a payroll tax cut depends on people being back to work kids in school we have to invest in things in in country that allow us to open school style of the price for not getting kids in school is extremely high. Well, president wants 70 billion dollars for public and nonpublic schools is that the right number senator . How do you make sure kids get back to school but in a safe way. Well it is a high number a lot of money, i am sure can help go a long ways i dont know exact right number somebodying severe working through i inspire you School Districts will tell you not enough but better than nothing will ten establish right things schools northeast to have in place to safely open again at some point this fall. All right final question do i believe you and colleagues can agree on something this president will sign it before you leave for next recess on august 8th . I do, i do because i think everyone knows what a obeying deal this is look it will be messy kicking streaming namecalling noise that is how we make sausage in our republic i do believe at the end of the day we will have a package everyone will like a lot of things in it everyone will have a couple things they dont like only way to pass a law we have to pass something president will sign democrats in house will support of and democrats and republicans in the senate vote for not easy to do i believe we can get it done. Yeah, all right, senator, thank you for leadership, thank you for joining us this morning. Thank you. Good to see you, sir. Thanks for having me back. We will keep watching senator marco rubio thank you so much well be right back stay with us for our star of the day. Maria welcome back, social media imagine zach king one of the most wellknown on instagram more than 23 million followers with vicious illusions, incidentally slight of hand, integrate to have you thank you so much for joining us. Thanks for having me. First, tell us how you got started, zach, and walk us through your business tell us how you do it. So, i actually started you know over 10 years ago a dade ago on youtube, it was an amazing place, because, you know, unlike today kids growing up understand that you can become instagram famous make money doing it a business back then just kind of signing um platforms posting Photos Videos short stories it has transformed into a business over the years, that is the exciting part five years ago i was wondering could this support my team my family. But really leveled down become a steady business which is exciting. Were looking at videos they are so cool how is this done . So, you know i call visual a imagination learned imagine david blaine david copperfie copperfield, that is not what it is here you are not seeing me do actual there is the a pe visual manipulation, of computer i love technical nicks to me really going back to a simple story telling principle when you blend that with that magic, i think that is what really brings that wonder that creativity to the concepts. It is great one of your most particular is harry potter flying trick. Tell us about it how able to do this . So, you know we figured out there is a fun part, where you can fly if you tilt a mirror angle other people done this look like raising star wars, are pull mirror under bike what he saw that we could do that take it to like harry potter to that level a broomstick attach mirror below beginning portion flying across the street we show how done long bord mirror set up legs duplicate indicated a fun tricky play on favorite franchises started, balance this off the world there are so many harry potter fans as well. You are making money on this zaching . Yeah so we have a full team a business Production Company los angeles, and you know part of our work is doing commercials getting quarter billion views every month across platforms so a small portion we allocate to working with a brand putting some sort of Product Placement in there, and making fun sponsorships to allow us to continue making the next crazy magic video that is the Business Model for us as well as asked to do a project exciting. Maria i love it. You cant have a Business Model without talent youve got it zach thanks so much for joining us this more than, zach king best of luck we will be watching stay with us. Well be right back. In new ways. To new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back. But bounce forward. Thats why were helping you stay ahead and adapt with a network you can count on, 24 7 support and Flexible Solutions that work wherever you are. Call or go online today. Simon pagenaud takes the lead at the indy 500 coming to the green flag, racing at daytona. Theyre off. In the kentucky derby. Rory mcllroy is a two time champion at east lake. Touchdown only mahomes. The big events are back and xfinity is your home for the return of live sports. Alert breaking overnight u. S. Orders cloud cover of chinese consulate in houston, texas coming as fire broke out there last night, local reports say the skwut officials were burning documents, in the courtyard learning of eviction there is a report that china is considering closing the u. U. S. Consulate in wuhan. Dagen u. S. Government willing to crack down on theft of intellectual property americans secret on u. S. So i will but burning document stlegd shredding them. A China Communist Party has been stealing date spying on citizens for decades first president able to poke back at china and say were not going to take this anymore. I think if nothing else hopefully raise awareness for American People ask why chinese, in if america a survivor of a Chinese Labor camp told me exactly what she sprngsed daily torturing going to medical checkups having blood tests so could see if a candidate or Organ Harvesting talks about fellow prisoners disappearing coming back with scars had or ganz moved sold to highest bidder in china we can push back by increasing in this case depends on them 54 said would may 5 more made in america to keep from buying in china that is a thing americans can do join with politicians standing up to china more now that is what we can do to increase dependence on chinese weaken their power around the globe. Ran video this weekend on sunday of the camps where youve got tibetans muslims uyghurs being tortured forced to learn Chinese Culture but now they are doing slave labor according to provides we saw yesterday. A lot to talk about Francis Cabot dagen, great to see all of you great show thanks for joining us we will be right back. Maria thank you dagen mcdowell, kevin phillips, stacy great to see you, everybody have a wonderful day, Varney Company begins right now. Stuart i just finished up cleaning the coffee that i spilled all over the beautiful set. Maria i am sorry. Im sorry to hear that. Stuart good morning maria, im ready to go. Good morning, everyone. There is precious little love between the worlds two biggest economies and we have a new flareup between the u. S. And china this morning, the trump team has ordered china to close its consulate in houston, texas by friday read this is to protect intellectual property. Local tv Shows Chinese officials