One hundred thousand cases a day. New york expanding the list of states on quarantine list as well. Markets this morning the first day of the Third Quarter, futures indicating this morning we are going to see a decline at the start of trading to kick off Third Quarter. Dow futures down 109 points and s p futures down 9 and a quarter. Yesterday u. S. Markets closed strong Second Quarter in the green in hope of additional stimulus. S p 500 yesterday up 47 points at 4 00 oclock on wall street. Markets had their best quarter in more than 20 years, take a look. Secondquarter numbers, up 17 on the dow, 30 on the nasdaq. Defunding the police, new york city cutting the Police Budget by 1 billion, some including like alexandria ocasiocortez says it isnt enough. Ray kelly will join me live at 7 30 a. M. Eastern joining me on the movement and what it means for already rise in crime throughout the country. A new era of trade begins the u. S. Mexicocanada trade agreement is in effect. Wilbur ross will join as well as tensions with china. Global markets this morning look like this. The cac quarante down 45 and dax by 49. Germanys Manufacturing Sector contracting in june, purchasing manager index to 3month high. In asia overnight, markets were mixed. Markets in hong kong closed today as its the anniversary of handover and marked with protestors, Consumer Confidence did see a rise in the month of june as you see the nikkei average was up 3 quarters of 1 . Shanghai composite in china up one and a third percent. Some of the top stories that we are watching this morning, breaking overnight, Hong Kong Police making their first arrest under new Controversial National security law, a maintain into custody for holding a hong kong independence flagless than 24 hours after approved measure. The sweeping legislation to crack down on decent and imposes prison terms on anyone convicted of success, subversion or terrorism. The arrests coming on the 23rd anniversary of britains handover of hong kong to china. Prison for life. Warning for dr. Fauci, could see major surge if social distancing guidelines are ignoredle. We cant just focus on those areas that are having the surge. It puts the entire country at risk. We are having 40,000 plus cases a day, ill not be surprised if we go up to a hundred thousand a day if this does not turn around and so i am very concerned. Maria it comes as several states set new records and roll back reopening plans. Texas reporting singleday record of nearly 7,000 covid19 cases. California reporting more than 8,000 cases. New cases on monday alone. Governor newsom expected tosome tougher stay at home measures in an effort to curve ahead of holiday. Now people coming from covid hot spots, california, georgia, idaho, louisiana, mississippi, nevada and tennessee will also have to quarantine for 14 days or face a fine before going out in about in the 3 states. Remdesivir shortens the Recovery Time to covid19 the only drug that has been approved by the United States. Gilead scientists which make remdesivir charges 3,200 for each treatment. Up 1 and a half percent this morning. New york city cutting 1 billion from the Police Department for next years budget, reducing overtime and trimming size of the board by more than 1100 officers. The boys are summer are back, Major League Baseball officially returns today. Players have a few weeks to get ready for new season. They hope to return next year. And futures pointing to lower opening this morning for stock prices. We are coming off strong Second Quarter, of course, best quarter in more than 20 years as stocks rebounded from the initial coronavirus downturn, the market had a great Second Quarter. Treasury secretary Steven Mnuchin and Federal Reserve chairman jay powell pledging stimulus during house hearing yesterday as many efforts are set to expire. Joining me right now mainstay capital chief investment strategist david, joining the conversation michael lee, michael strategies, Arkansas Governor Mike Huckabee and former president ial nominee himself steve forbes. Tell us about the sectors youre seeing more growth. What are you expecting to be the winners, how do you allocate capital in Third Quarter after we wrapped up such a Second Quarter . We had a great Second Quarter. All kinds of records were set for market indexes and markets actually hit their high around june 8th and we have been moving sideways since then. Thats what we expect going into the Third Quarter. So, you know, the areas that have continued to do well, it, cloud stocks, ecommerce did well during the lockdowns. As we have the renewed concerns about covid, those will continue to do well and they are doing well over the longterm, so we have the barbell strategy for equity strategy with those those sectors on one side, those stocks on one side. On the other side, what weve had since april are the energy, they got beaten down a lot of the market, february and early march. Theres a long road ahead of us but those areas are doing now in recovering and thats on the other side of the barbell, so we have the mixture now of the longterm secular growth stories on one side of the barbell and the cyclical on the other side. Maria steve, jump in. Steve yesterday joe biden appeared in badly, what is possibility of huge possibility change in november which would not be good in terms of regulation, taxation alike, when is that going to weigh on the markets or is it starting to do so . David we will start to have impact on the markets leading up to the elections. Markets hate uncertainty, as you know, steve and theres more uncertainty as who will be in office its we look at the data over time, we look at the studies over time, theres a lot of belief as to how much impact whether its republican president or a republican or democrat as president but in the leading weeks up an months to election, as we get closer is the uncertainty. Markets want certainty of the election. Something very different happened, but it was about placing certainty on it. So that uncertainty will start to create more volatility in the markets leading up to november. Maria yeah. Steve not just uncertainty but the tax increase. Maria go ahead, steve. Thats a good point. You have two different policies here. Steve, youre talking about a tax increase should biden win the election . Steve should biden win the election, not to mention all of the deregulations and the new president if it is biden, coming in and taking away all those executive orders which pushed back the regulatory barriers that we had. Maria thats a good point and what about that, david, is there a view on wall street at this point in terms of where this election goes. We know what we have seen in the polls, do you expect that markets start trading down if they start believing that the policy changes significantly, steve makes a really good point. Joe biden has been talking about raising taxes and the most important Economic Voice that hes going to have according to my sources is elizabeth warren, whether shes the treasury secretary or stays in the senate, shes going to be a key voice in Economic Policy and she wants wealth tax, she wants higher taxes overall. David we talked about the impact that the Federal Reserve and other stimulus measures have had on the markets in the Second Quarter, over the longterm the stock markets trade on corporate earnings, corporate earnings are impacted by things like taxes and regulation, so if there is a change in how regulation is impacted, how taxes are impacted and thats adverse to corporate profits, that is adverse to the stock market, clearly. Maria all right, real quick on junes job report, the expectations call for 3 million jobs added last month as the jobs market rebounds and you saw job growth in may. Is this price intoed the market, any thoughts on the jobs report and impact tomorrow . David if you look at what happened in may we were expecting decline of 8 million, adding jobs. If we have that kind of result again, would be very positive surprise even anything better than what is expected, so clearly what we are seeing is the economy is recovering faster than many had expected, we are seeing a lot of positive Economic Data come through there. Theres concerns about covid but the economy is recovering a lot faster than many had expected by this point in time as we head in Third Quarter. Maria all right, we will leave it there. David, pleasure to see you, thank you so much, david kudla, big show, commerce secretary wilbur ross is here to talk about hong kong, Chinese Company threats and usmca. Next hour former nypd commissioner ray kelly to talk about growing Defund PoliceMovement Starting with new yorks new budget and then in the 8 00 a. M. Hour florida senator Foreign Relations committee marco rubio talks about Chinese Companies posing a threat to National Security. Hes introducing new legislation this morning and then next digital founder jimmy lai on the growing unrest in hong kong, all that coming up but first the word on wall street, its coming up macys earnings and whats in store for Third Quarter. Stay with us for that. Then american salutes, one company honoring veterans waving the American Flag high and strong, youre watching mornings with maria on fox business. Mission Control 5 4 3 2. Ignition and liftoff. vo audi etron. The next frontier of electric. They get that no two people are alike and customize your Car Insurance so you only pay for what you need. What do you think . I dont see it. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Which we cant control, and lets now look at our goals. In other words, we only want to take as much risk as is necessary to achieve our goals. Maria fox business alert, protest erupting in hong kong as sweeping National Security laws strip the city of its freedoms and that goes into effect today. Today is also the 23rd anniversary of hong kongs handover to china, day historically marked by prodemocracy protest, Hong Kong Police made first arrest overnight under the new National Security law using Water Cannons to fight the crowds and when youre arrested for this it could mean prison for life. Joining me right now the former u. S. Ambassador to Asian Development bank curtis chang, good to have you this morning, sad day for hong kong frankly. Your reaction to this new law and really the police are in force right now. Yeah, very much, i think for all of those people who like me visited and lived in hong kong its a very sad day for hong kong and really for the hong kong people. My focus is on the business and economic side of things. I think really now whats happening protests but also hong kong business, International Businesses have to take time and assess what is the impact to have law under Business Operation in hong kong which i think many are hopeful continue to be Business Center but the new law does not bode well in the near term for hong kong. Maria you have so much going on here and its really not just hong kong, i agree with your sentiment because hong kong was a financially hub for the world and it just no longer is. Overnight the federal Communications Commission took action against chinas technology threat, deeming hauwei and zte as National Security threats, meaning the companies cannot use federal funds to purchase equipment from hauwei or zte, the relationship between china and the United States clearly changing, what is the impact of this new ruling from the sec in your view . Sec ruling focuses whether Telecom Companies can access kind of Financial Support for purchase, maintenance of equipment from hauwei and zte and i i want to take a step back and the focus is on what will happen in the near term but not just 27 years, 5 years which was time with hong kong was supposed to remain autonomous and be able to run its own affairs. Focusing on the business side, now the time where u. S. Companies really have to rethink and reassess the operations, hauwei and zte ruling also underscore the importance of not just looking at supply chain and staffing and Regional Headquarters but also locking at their ikea exposure and should companies not just using hauwei or zte but many other apps, things like zoom, even, that people have rightly expressed concerns about in terms of security. Maria well, look india, australia, japan are also having challenges with china today. Maria and very good point. Yeah, very good point about those about that tik tok and zoom, india has banned the applications because of the National Security risk. I want to get your take on legislation marco rubio is introducing today. He launched a bill to give Refugee Status to those at risk of persecution and would require state department to designate as refugees especially humanitarian concern for hong kong residents who are suffering persecution. What do you think about that and a time that we have so many people unemployed. 45 Million People have applied for Unemployment Benefits, we will get the latest numbers tomorrow k the u. S. Afford to get the hong kongers who are facing what they are today . You know, i tell you im very supportive of this bipartisan bill. Its not just senator rubio, senator menendez and when you look at the legislation, ive only seen the descriptions of it. Remember, there are still 23 years in which hong kong supposedly will have the system of one country, two systems and i think its absolutely right not just for the United States but also the uk, canada, australia and other countries to think about what we can do to hong kong people. I would go further to encourage u. S. Government and others to welcome not just people feared for persecution but welcome entrepreneurs and others who will invest from hong kong. What made hong kong great are its people and its time for the world to think what can they do to help people, outside of hong kong to build businesses also. Maria clearly china wants a bigger reach and bigger control over hong kong, breaking another promise in terms of keeping autonomous for 5 years like you said weve got 20 plus years left. We will be watching, ambassador curtis chin. Stay tune because jimmy lai will joining me live at 8 30 a. M. Eastern and we will speak with senator marco rubio about the legislation that he is introducing today. He is coming up as well. First 2020 race is heating up. What new polls are showing and why the voter Enthusiasm Gap could be deciding factor. We are back right after this break. Stay with us. The best tv experience just got better because now you can watch all your favorite hulu shows and movies on xfinity. Youre only a voice command away from Award Winning shows like the handmaids tale, to new hits like little fires everywhere. And fx originals you can only watch on hulu. Thats just the beginning of what you can experience with hulu on xfinity. Tv made simple, easy, awesome. Maria former joe biden at first onmara press event in nearly 3 months and says he will not hold any more rallies for the rest of the campaign. President trump canceling alabama rally as well due to coronavirus surges across the country and a new poll from usa today, biden holding 8point lead but the same poll showing President Trump in enthusiasm with nearly twice as many trump voters excited, quote, unquote about their candidate. Governor huckabee, your reaction to this. Ive been questioning how its possible that the law and order president is trailing during what has been an incredible moment for the destruction of property and crime rising across our country . Mike i think a lot of it has to do with the fact that the president has had difficult time getting on track with the balance message, but this news about the enthusiasm issue is huge and i cannot emphasize enough that if your voters arent that excited to go vote for you they very well may stay home and the difference between joe biden and he is enthusiasm and President Trump is the difference between a saltine cracker with slice of cheese at steaming sizzling plate of fajitas, the people who are for trump will swim across a river at flood stage and the people who are for biden might sleep through the whole thing. Maria well, you know, you make a good point in terms of the enthusiasm and steve forbes, i want you to weigh in here because you are seeing these numbers and 4 years ago people were talking about Hillary Clinton in the lead and they just