Larry kudlow discuss whether trump can close that gap. New jerseys Pension Fund Manager is slashing in half because of high fees and market underperformance. Hearing from the chairman coming up. A big story making the rounds here today. It will be another big wave of earnings after the close of priceline, activision, linkedin and kraft heinz. Lets start with the bank of england Interest Rate cut move and among other moves and affecting businesses back here. We have a report on the tourism industry. Steve . Pay attention. This is really down in the weeds and really interesting. Monetary policy stuff. In addition to the rate cut and more qe, the bank of England Governor Mark carney put a clever detail in to help banks, help the economy, and also, offer lesson to the federal reserve. Few are talking about it but carney exempted excess federal Bank Reserves and created by qe and when they create them, through qe, banks have to set aside capital for against them. Even though theyre totally safe and that reduces their profitability and ability to lend. Its a push me, pull you kind of thing to help the economy on the one hand with qe and hurt it through Bank Regulation and what he did, got rid of it. Why does the matter . Something that fred critics talked about for the u. S. They sit on safe central Bank Reserves to reserve against. If yellen follows carney, she could free up banks on the Capital Requirements and make room to help the economy. Carney by the way spent 13 years with Goldman Sachs banker. Could be fed folks out to there to listen to him. Steve, could you say that again in 140 characters . No, sorry, kelly. Cant be done. They may eliminate reserve requirements on safe assets and its a way that you can i okay. Got it, got identity. Holding on to the stuff thats safe, you dont have to put any money in the central bank. Right, rye. Freeing up the ability to maybe use it towards other purposes . Dont have to reserve it against capital. Thats what they have to do now. Got it, got it. Talked about in the u. S. And never movement. Do you think there would be any Movement Just because the bank of england went this route . I think if they show that it makes quantitative easing more effective and leads to lending and better economic outcomes, i think the fed i dont know why they havent done it but its something certainly that some of the smarter people that follow Monetary Policy say should be considered here. All right. Thank you very much. Fascinating. Now the fallout of brexit on the tourism industry. Assumed this might mean we might be elbowing aside fewer british tourists in times square . Kind of depends on who you ask, guys. The u. S. Government says tourists from the uk make up the Largest Group of overseas travelers to the u. S. Spending 4. 6 billion here last year. But with the sterling weakening, theres concerns that the u. S. Is too expensive. The travel industry seems to be mixed on brexit. On the q2 analyst call trip adviser said brexit is partly responsible for softness in june and july. And last week, American Airlines told analysts on the call that while they havent seen any Short Term Impact of brexit on the companys revenues, they do expect currency fluctuations to have a negative effect on the airlines saying down the road its business travelers that theyre watching most closely. Meantime, the travel trends index gathering data of airlines, hotels and travel sites they say that International Travel is muted in the u. S. And slightly down in the next six months. Guys, back to you. All right. Thank you. Probably does mean less travel. Appreciate that. Joining me are john wiener, john corepina and Rick Santelli out there. Jonath jonathan, we had a lot of wait and see today. Not a lot happening ahe of the jobs data tomorrow for a guidance. What is your read on this recent trend of sideways action . Seems like we have been in the wait and see mode for a while. Right . After through brexit, we had a market selloff and rebounded quite quickly and now stuck in the range here. S p has been in the 15, 20point range and looking forward for a catalyst in the market. Was it the economicalen car . Earnings season . Unemployment number of tomorrow . Seems right now that investors so complacent. The news, the headlines every single day doesnt really seem to spark investors to get back in the market. Now, yes, like i said before, coming off the brexit and i think investors are waiting to see the outcome of that and how that plays in the next few months and quarters and also its august. Traditionally slow in this period of time. So it seems like were going to get through this month with not a lot of volatility. Youre laser focused on helping people retire. How tough is that to do with super low Interest Rates and high equity prices . This is a pretty tough market to be the supermarket. Clients come to us to build portfolios so its like we can just put it in the s p and let it go. We think now that with a 19, 20 pe between, you know, depending on who youre talking to, this is traditionally high. We dont see any reason for the markets to go a lot higher. Without earnings going up. We had a good earnings season, pretty good just less negative. So we dont see a whole lot of upside and we are also not market timers. If you were for the past four or five years you were murdered. So were in it. You have to pick your Asset Allocation right and risk and be patient in this market. Ron, you mentioned that equities look like theyre fully priced at least but what asset class isnt . If youre building a portfolio of different asset classes, does it leave you anywhere to go where theres bargains . Yeah. Thats a good question. First off, we have income clients and luckily had the income producing stocks. They have done fantastic this year. What hasnt done well is googles, the tech sector or the bio tech sectors. Thats the growth sides. Look over five to ten years, thats the growth side more than the value side. But pick your market. Pick your need and then allocate towards it. Right now we like bio techs, the technology, but we like a basket. We dont want to make any big bets here. That would be risky. Rick santelli, lets go back to what happened this morning with bank of england. I thought the british Economy Holding in there okay, maybe a rough quarter or two here. They came out with a bazooka. Well, they definitely came out with more of a shot than many anticipated. Isnt so much about the rate but its sort of is. You know, mark carney doesnt like negative rates. You know, their 10year guilt down 16 basis points. Boon yields down 6 basis points and further negative territory. I dont get it. I agree with your first statement and that was a bit couched. Postbrexit world is way better on any front. Why he didnt keep the powder dry is beyond me. I think the big story of the day is the boiling frog story and thats metlife. We have talked about this. Whether its metlife, all of the stories by smart people that deal with pensions insurance, trying to create a future for people to retire, pensions are out of vogue. So people end up with annuities and not able to have enough horsepower to generate the return. This is all boiling frog. These are all big mile stoeston nobodys paying attention to. State of illinois, basically a junk rating. Their Pension Funds about funded to the tune of 30 . This isnt we are pushing the sewage down the road into much worse territory but we dont notice it right now and these are the things to be talked about right now. Yeah. I agree with rick. Go ahead, ron. Weve been what we have been doing for years and years is we have been lottering low Investment Grade bonds and lower on the lower scale, getting our 4 . Not paying attention to the negative Interest Rates. Its somewhere a nightmare. The reason england reduced the rates is worried about a recession. No ones going past the short term but everybodys afraid of whats going to happen with brexit and we have no idea. Wed rather be in the u. S. On the fixed side. We dont want to take the chance and think be patient with the equity side. Jonathan, meanwhile, the price of oil fluctuated around the last couple of sessions. How much is that moving stock prices generally here . I think it has. A lack of anything else that investors basing anything of. We saw it top up towards the 50 level and then slightly below 40. Nice level trading right here. I think investors happy to see it rebound off the recent lows a couple of points. All right. Crude currently up 2. 5 . Markets still broadly lower. Thank you. Well leave it there for now. With about 50 minutes to go in the session today and again other than a dollar index moving higher, not terribly a lot of moves here and talking about some historic things, bank of england for 322 years, today as low as its got. New low. Absolutely. Up next, legal battles for control of viacom slowing down efforts to sell a part. Well have the latest. Also, new polls show Hillary Clinton widening her lead over donald trump as the republican camp shows signs of stress. Supporter barney frank and adviser larry kudlow going to be here to have at it. Youre watching cnbc. Will your business be ready when growth presents itself . American express open cards can help you take on a new job, or fill a big order or expand your office and take on whatever comes next. Find out how American Express cards and services can help prepare you for growth at open. Com. Welcome back. Lets take a look at square. That stock is popping on a narrower than expected revenue loss and mobile Payments Company saw 42 year over year processes. And the loans jumped 123 in the same period last year. Remember we were asking would it hold on to the gains . Looks like it has here today. Check out other movers. First solar disapointing earnings guidance. Also reporting a drop in quarterly profit. We told you about that yesterday. Thanks to 86 million restructuring charge. Twentyfirst century fox, affiliate fee revenue disappointed and so did the increase. Down nearly 6 . Disappointment on the scale of the buy back. Thats one of the things working there. Staying in media, the battle for control of viacom raging on slowing down stakes of paramount pictures. Yulia boorstin has the latest developments. Hey, mike. Thats right. This morning, ceo philippe dow man said hes moving forward with paramount despite Sumner Redstone and his daughters opposition to the plan. Dauman said he narrowed down the process to a handful of prospects. The process has slowed down in recent weeks but we have reason to believe the Favorable Court developments last week will create a better environment to allow us to progress with several parties toward a highly beneficial transaction to present to our board. Now, daumans talking about the fact that judges have allowed cases to proceed. Theyre now three trials scheduled for october in massachusetts, delaware and california. These debates of redstones mental competence and whether the dismissal of dauman and other directors can proceed. Redstones National Amusements today issued a press release criticizing daumans leadership and dauman is sticking with the plan to try to strike a highly beneficial transaction for paramount. Guys . You know, julia, i guess the question still hangs over whether, in fact, even absent this dispute with the redstone family, it is a great idea to try to sell a stake in paramount right here. Does anyone think its a great solution for viacom as a whole . Well, i have just been talking to people about this in hollywood and its very hard to certainly sell a stake in a paramount while this is going on. Who wants to be involved a legal battle . Seems like the companies that would be most interested in buying a percent of viacom is overseas. We have heard of Chinese Companies and others expressed interest. Its less about the actual value of paramount. It was one of the weakest parents of the company in the Earnings Call and theres a lot of talk about how it was really hurt by the bad performance of the teenage mutant Ninja Turtles sequel. They have work to do on paramount said they on the call and theres questions about buying in right now. Whens the impact of a report almost for dauman to step down in a month and the first indication to orchestrate something to leave and now that thats been widely reported, what happens . Well, i think the fact that there are three lawsuits that are ongoing explain why that would have to have settlement talks. Maybe one to figure a judge but three it makes sense for them to try to have a conversation and negotiate between the two parties. I think theyll probably have more negotiations. But these are such complicated issues and so much drama here, so many relationships. Who knows what will happen . Well, we know youll stay on top of it. Yulia boorstin, thank you very much. Meanwhile, just over 40 minutes left in the trading day, we have the dow modestly lower. Down about 18 points. The other indexes hugging the flat line. Nasdaq as has been the case for a wril, still the strongest. The chairman of new jerseys Investment Council which oversees the states Pension Investments here to explain that move coming up. Also, is the contest of Hillary Clinton and donald trump heats up, well have our own showdown right here at the stock exchange. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Itslexus performance iny to streetlegal form. Taking for a limited time get great offers on our complete line of f sport performance vehicles. At the lexus golden opportunity sales event. Welcome back. Shares of metlife are down 9 today after its earnings miss last night. The life insurer with a 90 of quarterly profits. The prospects for the business resulted in noncash charge of about 2 billion lower Interest Rates playing a role in that. Metlife ceo looking to back out of the u. S. Retail business. It sells individual variable annuities and selling a chill in the space. Absolutely. This is not limited to metlife. Meantime, republican congressman coffman is not happy with the partys president ial nominee and launching a campaign in colorado to stand up to trump. Heres the ad thats reportedly set to start airing tomorrow. People can me, what do you think about trump . Honestly, i dont care for him much. And i certainly dont trust hillary. Im a marine. For me, country comes first. My duties always to you. So if donald trump is the president , ill stand up to him. Plain and simple. And if hillary wins, ill hold her accountable every step of the way. Im mike coffman and i approve this message. Work hard and serve you, thats what ill do. Well it seems to be working in terms of getting attention already. For more on the state of the party amid rumors of a trump intervention, we welcome senior contributor and unofficial adviser to trump larry kudlow and hillary advisory, barney frank. Holding her accountable. What if trump wins . Ill stand up to him. Oh. Doesnt this, larry, in a way work . Let me throw this out there. Donald trump is out there as a total maverick. Isnt it better if hes able to give the gop contenders a real obvious way to say to their constituents, we are not with him, were doing our own thing and does that help the gop letting the local guys apply to the constituents and donald trump does the mavericky thing . Happens all the time and yeah. I mean, except for paul ryan whos a friend of mine. I tweeted today i personally endorse paul ryan. Im not sure he cares but i did. Sure. Look, these guys have to go their own way to be reelected. Barney grang, frank, you went your own way . Well, very decidely in at least one respect as you will remember but i always supported the president ial candidate of the party. I never had the problems that so many republicans have with donald trump. But i want does that establishment, plays differently with the democrats have a way to choose the standard bearer and this is unusual. This is not the norm for the republicans. It is true that, for instance, bill clinton was going to beat bob dole, the money went into the republican congressional race and this distancing of, repudiation of a candidate, i dont think youve seen this on the republican side in this measure, 64 was more. A little of this on the democratic side in 72. Mike coffman represents as a republican a district with the largest hispanic population. This is a man who has won the district. He may have a larger hispanic population outside of florida than any republican and what you see the fact that i think donald trump lost hispanic voters and why Coffman John Mccain is also scrambling for the first time in his career since he first won again because of the hispanic population. What can you tell us, larry . Whats happening on the inside . Are people really upset . This story is just wrong. Okay . Newt gingrich put this out some place and then starts naming names and Reince Priebus and Rudy Giuliani and Rudy Giuliani made it clear there was no intervention. Should there be if the poll numbers have done what they have done . No. Look. I cant predict the outcome. I think trump is much different candidates than the republicans have had. An outsider. Okay . I think he is a tough guy. All right . But putting that aside, similar stages, back in 1988 with papa bush and 1980 with ronald reagan, my year, trump is doing much better. They were down 20 plus and i know trump has lost ground and made bad mistakes in the last week or t