tv After the Bell FOX Business January 31, 2019 4:00pm-5:00pm EST
fortune 500 company, you're looking for mortgage company, go to cbre for your commercial real estate needs. ♪ [closing bell rings] the best january in 30 years. that does it for the countdown. connell mcshane. connell: you're right. across the board investors awaiting details from the high-level china trade talks that are happening in washington, d.c., as we speak. president trump meeting with the vice premier of china at the white house and having that meeting right now. now cameras have been allowed in. we'll bring you comments from that meeting as soon as we get them. the market has some of them already. seemed to help the dow at the end of the day. it closes down by just four or five points as we settle in here. it was down more than that earlier. nasdaq, meantime doing much better today. in fact on pace, to lauren's point for the best january in 30 years. the nasdaq closing up by 1.4%.
the s&p also higher by 1%. so that is how the markets close but that is just the star of it. all three major averages up two of the past three months with december the obvious exception. good to be with you. i'm connell mcshane. this is "after the bell." melissa is off today. we have a lot to do. amazon earnings, we'll have that, big impact on the market. comments from the president as well. we'll start with susan li on the floor of the new york stock exchange. susan. >> we finished above 25,000 for the month. yes the best january since 1989 for all three benchmarks. the best month for the markets since 2015. about earnings and positives report cards, includes boeing yesterday. today facebook really powering technology shares. but major averages as i mentioned propelled by the federal reserve saying they will be patient. they said that eight times yesterday during the press conference. that helped liquify the markets. we've seen gains so far in the
month of january. as for actual advancers, best performers for you, boeing, goldman sachs. financials are back in vogue. small caps up a few thousand. best month since 1987. unitedhealthcare as well, struggling with the forecast in the first quarter. goes to show, connell, companies are still making money in this environment. we could have u.s.-china trade deal. back to you. connell: we're watching that. speaking of companies making money, to breaking news, amazon numbers are just being released as we anticipated they would. you no the stock, amazon, had run up before the earnings came out. it is adding to those gains. deirdre bolton is in the newsroom with the figures. what do we have,. >> connell, beat on top and bottom line. let's bring you earnings. amazon reporting $6.04 a share. that is better than what wall street was looking for,
$5.68 a share. that is up 165% from a year ago, i want to highlight same quarter year ago there were tax issues. i don't want to harp on that 165% increase quarter over quarter too much. that is clear beat. why we're seeing the stock higher in the after-hours trade. revenue, also a beat. 72.4 billion is what the company reported. wall street looking for 71.87. and that represents a gain if you're doing quarter on quarter, 19, 20%, year on year. the number i'm still waiting for, aws, amazon web services. call it the plumbing behind most of companies, software, data storage, data management. wall street is looking for a figure of 7.23 billion, which is increase of 42% quarter on quarter. that hasn't come out, what i told but earnings an sales is out, exceeding on both fronts, connell. connell: we'll come back to you
especially if we get anything on aws. let's start our coverage with jack hough, baron's, editor, and jack hough, you go first on amazon. if that is apples to apples on the bottom line, 6.04, 5.6, just on profit, that's a good number on amazon on profit, right? >> i definitely want to look into it. we used to joke about amazon being a not-for-profit, we're pretty far from those days. all of sudden amazon is whisper number company on the bottom line. they give guidance. here is what our operating profits probably look like. investor say no way, we think you will come in well above that the past few quarters, it come in billion dollars over its own guidance range. when you look at the long-term forecast for wall street on this company, four years from now this company is expected to generate as much free cash flow as apple.
say what you will about amazon's growth rate, it is enormously profitable. amazon is headed there. connell: almost joked about with amazon. now it's a different company, john and you know, beats on revenue this quarter which i point out which amazon is known to miss on that side. five of the last eight quarters heading into this particular reporting period amazon's revenue figure was below expectations. this time a little above expectations. as jack says, john, the profit number was a big one. what do you take away at first glance from these results? >> results are great. i think while the results are great. i think as you guys know, i'm so, so fullish on amazon, especially in the long term. i will give you one major rhine why. we know now, cloud computing in the u.s., 2017, market size is roughly 150, $200 billion. i will give you a another
number, 2017, market size for groceries in the u.s. is 1.3 trillion. amazon is amazon shifted their model to tackle grocery space and if physical space with the amazon ghost store in san francisco. which is a store you go to just like whole foods and traders joe's. instead of you waiting in long, you're picking off items on the shelf, throwing them in your backpack, walking out. connell: right. >> it is an unbelievable experience. wall street has not really taken this stuff into account as much, especially in the long term simply because we haven't seen it enough yet. it will mean even more growth mid to long term. connell: do you agree with that, todd, not that they're going down that path, we know they are, but it is the right path to go down? i point out viewers, the stock
is off initial highs. go back to deirdre with more information on the outlook, maybe the aws figure if we get it. todd, what john is bringing up the path amazon is boeing down, how different of a company it is, is that the right way to go? >> i think john is is right. i think he is wrong what wall street anticipation is it is showing fair value. one of the greatest companies it is. they have some different ways to make money. the cloud service is biggest of all. they will continue to grow, i'm one of the guys saying they didn't used to make money. now i'm a buyer. connell: would you buy more at these levels, todd? >> i would not be buying. i expect to test the lows, one more time. but i would be look to buy on a
pull back. connell: what do you think of the stock valuationwise? largest company by market value. selloff happened with the rest of technology. it has on roaring back this year. >> hope stocks. money being made right now, stocks. amazon is still kind of a hope stock. it is ambitious valuation. you only have to be hopeful for next couple years. we can now see the light at the end of the tunnel. we see the free cash flows. they're rapidly ramping up. this is no longer story stock what we talk about 10 years from now. this money is here now, increasing rapidly. connell: here is the issue. todd, take this one. on the outlook, this is one of the reasons the stock is not off to the races as we thought initially it might be. it beats top and bottom line in the last quarter but its outlook looks light on revenue for the first quarter. amazon sees it between 56 and $60 billion. we had an estimate of just under
$61 billion. so, that a worry, todd there? that is not a great outlook from amazon's point of view on the sales side? >> i think the outlook is fine, connell. here is what you really want to look at. the stock rallied from 25% from the bottom. even a train stops at a station for a break. the stock anticipated numbers. they got the numbers. again a little bit of a light read going forward i don't think it's a big deal. everyone knows the power of amazon what they're capable of doing. that won't be a problem. big rally 25% from the bottoms. at some point there is profit-taking. connell: pretty much flat. we'll wrap it for the moment. we'll come back later in the hour to amazon which is one of two very big toll stories we're following. outlook on revenue looks light. the other big story, high level talks with president trump
meeting with the top trade negotiator of china in the oval office. to edward lawrence live for us at the white house. what is the latest, edward? reporter: they're back in meeting between liu he. they're, delegation read a letter from president xi to president trump, saying we're at a critical stage in the talks. added both sides will work with mutual respect going forward. trade representative robert lighthizer says nothing will work unless enforcement is written in a deal. he said they made progress. he will go to china early february to continue these talks. earlier the president said he is hopeful a deal could be done. but he believes a finalized deal could happen between he and president xi. on the note of intellectual property and protecting intellectual property which is a big deal for the u.s. delegation
the chinese for the very first time have actually said intellectual property will be protected. the chinese minister of commerce, or commerce ministry spokesperson said for the very first time they will heem mentally, aggressively protect intellectual property rights of companies. this is a change from earlier. just listen to what he says. >> it's a lot of work, this is very comprehensive deal. this is not what we're talking about, they will buy corn that will be it. hopefully they will buy corn, lots of wheat, lots of everything else we have. they're talking about heavy technology, heavy manufacturing, financial services and everything else. reporter: that obviously president of the united states. the president saying that he would go on to protect intellectual property. connell: edward we'll interrupt you from your own building for breaking news. moments ago the president in the oval office meeting with liu he. >> long discussions. this is going on for quite some time, it will be by far if it happens the biggest deal ever
made, not only biggest trade deal ever made, it will be the biggest trade deal by far but the biggest trade deal by far. the two largest countries doing a trade deal. won't be anything that matches that we'll see what has. we've done very well. we had a very, very strong relationship, as my relationship is with president xi. i think we'll start by reading the letter that president xi sent to me and to us. it puts us off to a good foot. and then we'll also repeat a couple of the remarks that the vice premier stated, and then we are going to have mr. lighthizer speak for couple seconds. then we'll get back to business. you can go and have fun and write your stories. thank you very much for being here. we appreciate it. if i could start by reading the letter from president xi. maybe speak louder. >> message from president xi to president trump.
mr. president, i give you my best wishes as new round of level of discussions being held between our two countries on the trade issues. i ask liu he bring you a summary. right now china-u.s. relations are at a critically important stage. last month we had a successful meeting in argentina in which we agreed to work together to build a bilateral relationship based on coordination, cooperation, and the stability. that was followed by the two conversations we had through a phone call and a letter of congratulations we sent each other on the 40th anniversary of our diplomatic relations -- by the agreement we reached. our economic teams have engaged in intensive negotiations and made good progress. i hope -- will continue to act in the spirit of mutual respect
and cooperation and step up our by meeting each other halfway in order to reach earlier agreement that works in the interests of both sides. such an agreement will send a proper signal to our two people and broader international community. it will serve to ensure healthy development of china-u.s. relations and contribute to steady growth of the world economy. mr. president, in our last phone call, you said you wanted china to buy more agricultural products. i have made some arrangements about which you might have been briefed. as i often say i feel we known each other a long time ever since we first met. i cherish the working relations and personal friendship with you. i enjoy our meetings an phone calls which we could talk about
anything important to us, to work together and accomplish things meaningful for the people of our two countries and the world at large. mr. president, if there is anything you could always approach me through various means. i hope we'll keep close contact in vary produce ways. as the chinese new year draws near, my wife and i wish to send our new year greetings to you, to melania and your family. may you enjoy a happy and prosperous new year. >> that is a beautiful letter. we appreciate it. you may go with the press statements and then, i'm going to ask you to say a few words, bob. please. >> the vice premier said president xi attaches tremendous importance to his personal friendship with you and hopes to see your continued success. over the past two years in
office you have made tremendous accomplishments on both the domestic and diplomatic front. thanks to your policies of tax reduction and your -- with u.s. economy as i heard from my american colleagues over dinner last night, now enjoy high growth and low employment with unprecedented prosperity. and it is because of your -- [inaudible]. directly facilitated a major breakthrough in the relationship between the u.s. and the dprk. and under this particular guidance of you and president xi and you, mr. president, it is hopeful that china and the u.s. will have the possibility of striking a deal. and we, might trip to the u.s. this time is to follow through on the importance of -- between you and president she to accelerate the 90-day
consultations between china and the united states in the hope of a striking a comprehensive deal and we have been working conscientiously with ambassador lighthizer over the last couple days and our discussions are going well. we have achieved, the importance, towards the direction of striking a extensive deal which would be reached between you and president xi. >> well thank you, very much. bob, maybe you can say just a few orders as where we are, how we're doing what we're discussing. then maybe i will ask the vice premier to say a few words. and we'll get on with our negotiations. >> great, thank you, mr. president. mr. vice premier? [inaudible] >> he speaks very good english. >> based on many months of negotiations we had two very intense and very long days of
discussions. your team was, all your team was involved. i think we made progress. we have much work to do if we're going to have an agreement but we made substantial progress. we focused on most important issues which are the structural issues, that is protection of u.s. intellectual property, stopping forced technology transfer and intellectual property protection and agricultural and services issues and enforcement, enforcement, enforcement. both side agree this agreement is worth nothing if we nothing without enforcement is your instruction from the beginning. we're focusing a lot more issues to cover. we focused on structural issues, the ones you have been so focused on. we talked about enforcement, enforcement, enforcement. >> you will be going in early february with your group to china? >> we are -- mr. president, we're more or less in continuous negotiations. there will be a brief pause for
the chinese new year. on the chinese watch, but our people will be in contact going back and forth with papers and with discussions. the secretary and i will be going over there shortly. then we'll see where we are. at this point it is impossible for me to predict success but we are in a place if things work out we could have that. >> okay. thank you very much, i appreciate it. we look forward to that we look forward to the trip but you're really discussing it anyway whether you're in china or here, we have a thing called the telephone and other means of talking. so i know you're you're spending a lot of time. i want to say the vice premier is a friend of mine. he has become, he is truly one of the most respected men in asia. one of the most respected men in all of china. strangely one of the most respected men anywhere in the world. it's a great honor to have you, with us. if you like to say a few words, please do.
>> we look forward to that. a little back and forth, ultimately i will meet with president xi, maybe once, maybe twice. it seems to be coming together. i do appreciate the fact that you said so much about our farmers and that you will be doing purchases quickly about the farmers. that is wonderful. >> meeting. [inaudible] >> [inaudible] >> five million tons of soybeans. wow. per day? that is going to make our farmers very happy. that is a lot of soybeans. that is very nice. they said some other things. we'll put out a release for the press. but the relationship is very, very good between china and united states, and personal relationships are very good. the vice premier with myself and president xi. and with our representatives, it is been very, very good.
we read a lot of things. sometimes you hear good. sometimes you don't hear good. but i think the relationship that we have right now with china has never been so advanced. i don't think it ever has been better. tell you it has never been so advanced. essentially we never had a trade deal. we'll have a great trade deal. but we never really had a trade deal with china. now we'll have a great trade deal with china if it all works out. we look forward to it. it wit be great for both countries. no not that just this will be great for both countries. you've done a lot opening up china to financial services industry. it has been happening very much, very rapidly. hopefully we get that done for the farmers and manufactures. likely for the united states. it will be an honor to be with
you. i will see you today, i will see you a lot over the next month, that i can tell you. that have you he much. that is a great honor. president president mr. president, when do you want to meet with president xi? >> we haven't set up meeting. we're working where everybody is. we'll meet to discuss final issues. it may be a lot. it may be a small amount. i have feeling they are agreed to pretty quickly by both countries. both countries would like to see a positive result. >> have you seen enough progress what you heard from the team so far from ip and technology? >> very much technology transfer, i.t. we have made tremendous progress. that doesn't mean you will have a deal. but i can say there is a tremendous relationship and warm feeling and we made tremendous progress. reporter: mr. president did you talk to the intelligence chiefs about the displeasure -- >> i did. they said they were totally misquoted and it was taken out of context. what i do is, i would suggest that you call them. they said it was fake news.
so which -- reporter: ran exactly what they said to congress. >> excuse me. didn't surprise me at all. we're to talk about china. reporter: fact they didn't bring up the border as the world threat assessment, did that undermine or undercut -- >> didn't undermine anything. we need a wall. if we don't have a wall we'll never have security in our country. reporter: we'll r never bring it up as national security assessment. does that undercut. >> next, please. reporter: [inaudible] >> so nice you said soybeans, that is tremendous purchase. our farmers will be very happy. when is the soybean taking place? >> [inaudible]. >> they have already started. >> [inaudible] >> so they started on smaller scale and today they're starting very big. i very much appreciate that. tell president xi and on behalf of the agricultural industry and
behalf of our farmers, frankly, we appreciate it very much. that is a very big order. >> [inaudible]. like u.s. farmers very much. >> like the u.s. farmers. we have good product. you can use it and -- >> buy more. >> i really appreciated that. that was really fantastic to see. that is before we make a deal. it's a fantastic sign of faith. reporter: mr. president was the -- discussed during negotiations. >> we haven't discussed that yet but it will be. reporter: how will it be discussed? >> i'm sure at some be. that wit very small compared to overall dial. that will be discussed. anything else? reporter: [inaudible] >> excuse me? reporter: [inaudible] >> it's possible. we'll see how it is. we haven't discussed it yet. when president she and i meet we want to have it down so we have
certain points we can discuss, and, i would say agree to but we're not quite at that stage yet. all of these representatives and these representatives are coming to a conclusion, except for certain very important points. and we want to make it comprehensive. we want to make a deal, that we can look at, be proud of for many years. not where we have to go back to renegotiate or left things out. whether intellectual property, or whether any of other things we discuss all the time, we want to try, as you say have everything included. we want to have it very comprehensive. reporter: what is the point you feel you need to negotiate one-on-one? >> which really have discussed many of those points today, but i would say probably more than any other thing, every singer fell point that you discussed at the newspapers and on television. those are the points that we're discussing. i don't think i ever heard of any point that was discussed by folks that really represent and
represent you well. it is every single one of those points have been discussed in our transactions and our trade deal, in this trade deal. >> mr. president, you said earlier you wanted to postpone this, what do you mean by that? you want to extend the deadline or what did you mean? >> we haven't talked about extending the deadline. that deadline is march 1st. that deadline did, i don't think we have tokes tend. now at a certain point, this is very complex and very large, it is largest transaction ever made to be perfectly straight. we have to get this on paper if we agree. there are some points we don't agree to yet but i think we will agree. when president xi and myself meet, every point will be agreed to. one of the things we discussed in argentina was fentanyl. this is not a trade deal but a fact that president xi was extremely good when he said they would criminalize fentanyl,
because fentanyl is killing a lot of our great american people. and if they did what they are going to do, it would very much halt or at least, i think it would stop fentanyl coming into this country which would be a tremendous thing. so that is a separate than the trade deal but a very important thing. reporter: mr. lighthizer, enforcement, how do you envision a enforcement mechanism? >> i think we'll have strong enforcement language both ways. they want enforcement too. they want it both ways. we'll have a strong enforcement language. this is a very sear ruse deal. this could be done very quickly and easily, it wouldn't be comprehensive, it would be small. i just want to end saying as sign of good faith for china, to buy to buy that much of our soybeans and other product, that they have just committed to us, prior to the signing of the deal, is something that makes us very proud to be dealing with
them. farmers have been notified by me and my representatives, sonny perdue, secretary of agriculture that is a big number to hear. >> very good news. >> will you let the farmers know. >> i will -- [inaudible]. >> nor than even soybeans. that was other things we discussed before the press came in. they discussed other things they're buying. sonny, let everybody know. that would be great. were you surprised to hear that? >> pleased to hear that. >> that will keep farmers busy. that will keep them busy. that is a big order. let's keep going. let's start our discussions. we'll ask the media to leave. thank you all very much. we appreciate it. thank you very much, everybody. thank you. [inaudible]. >> i think so. steve --
>> ambassador lighthizer. >> are you going? are you going? ask mnuchin. she wanted to know about mnuchin. >> we have tentative date we need to confirm in next couple days. [shouting questions] reporter: what about the summit? >> end of february. >> thanks. >> early next week. p probably state of the union, okay? >> thank you, guys. >> come on. keep going. >> could be one way or the other. >> come on, guys. connell: never know exactly when to get out of these things. that is president trump from the oval office speaking to reporters gathered there after his meeting with china's vice premier liu he. as you heard in our coverage the two talked about progress made in the trade talks and what might be next, including a possible face-to-face meeting between president trump and
chinese president xi xinping. the president says that might happen. he is open to having more than one meeting with president xi but that has not yet been set up. all right, deirdre bolton is here from the newsroom. jack, todd, also back with us to react to that we'll get to amazon, our other big story, but it is interesting, deirdre, if you listen to what everybody said there investors could have different interpretation. there was progress talked about. i was struck by robert lighthizer's emphasis on structural issues and enforcement. he kept saying enforcement, enforcement. >> he is the china hawk in the room. if anything according to our sources he is concerned president trump who is known as a deal-maker will make a deal that is a little bit too easy. we heard the president with very optimistic tone, talking about the comprehensive trade policy and really lauding the chinese for starting to repurchase soybeans again. you have done reporting from out in the midwest, that is our
biggest agra export. soybeans. i do know at least from our sourcing that u.s. trade representative robert lighthizer he really wants to crack down on these issues we've been talking about, intellectual property, forced technology transfer but in some ways or in all ways i guess, that really goes against the way the chinese government operates with his businesses. so in some ways, people say what is problematic, part of what we're asking, even if we're on higher ethical ground, is actually not the way anybody in china does business. connell: interesting, maybe public lobbying of his own boss, to deirdre's point, let's not cut a deal too soft, what you do you take from the what you heard? >> i think problem government solved. i heard the chinese delivered a stump speech for president trump. it is glowing praise. if you say nice enough things
about him long enough you might end up with a cabinet job. connell: the notes given to liu he, don't speculate, don't forgive to give the president a compliment to. are you serious about problem being solved or we're on our way to deal? >> there is myth to think there is a grand deal that solves 1001 problems in disagreements or in play here between the u.s. and chinese. we need a agreement that we'll discontinue to tariff standoff between each other. we con work on problems going forward. i think this is hopeful sign. connell: todd, you're talking about the farmers in the midwest, what they're looking for? >> again, connell, first thing the grain market sold off late today, which indicates they're not as optimistic as president trump laid out in the, this afternoon. so i think there are some issues still done. i do say there will be a deal done. how good of a deal will be, i don't know. but the real problem with the
soybean farmers is not necessarily a deal right now. the problem they have had two years of great crops. they have oversupply and not any bad weather. there will be a deal. it will come through, whether it will be by march 1st or july 1st who knows. but again, the overall picture is very simple. trump will get some sort of a deal done. he will resolve what he thinks to our advantage. that is what will happen. we'll continue to go forward. tomorrow it may not be as positive with the market as we saw at the close. the grains closed much lower this afternoon. connell: that is interesting. other big story is amazon. deirdre, you were covering reaction to this, if anything, the stock really turned lower, down 2%. >> it has. talking about half an hour ago, numbers for the fourth quarter came out. beating street on top and bottom line. we saw the positive reaction. we're seeing it come off a little bit. high lighted connell, earlier really about the guidance. four first quarter revenue, just
a little lighter, 56 billion, to 60 billion. that is what amazon is saying. they expect sales to be. wall street looking for 60.77. slightly pedantic, but you can see the range is sliding lower. silver lining here a lot of that seems to be currency related. not necessarily that somebody else is getting a competitive advantage. i wanted to bring you quickly to the aws cloud number we were talking abouts. that exceeded wall street expectations for fourth quarter. connell: 7.4 billion, which is better than expected. a lot of good in this but the outlook for revenue as deirdre said a little bit light. stock down 2%. meantime a lot more to get to as we continue what has been a busy news day, not even in the 2020 race, and already being scrutinized. that is the situation for howard schultz, former ceo of starbucks. and he is having to now address a ton of critics, we'll talk about that. negotiations continue on capitol hill as lawmakers scramble to
>> we are building a lot of wall. i'm not waiting for this committee. i've told a lot of people, i don't expect much coming out of the committee because i keep hearing the words, we'll give you what you want but we'll not give you a wall and the problem is if they don't give us a wall it doesn't work. without a wall it doesn't work. connell: so president trump again in an appearance stressing importance of his proposed border wall while nancy pelosi insists there will be no money for a wall with any kind of legislation. with that let's get to fox news senior capitol hill producer chad pergram, live in place as usual on capitol hill. i don't know, where do we go from here is the question, chad? >> absolutely. where we to from here, where we
have to get to, the deadline comes up earlier than everybody thinks. the real deadline is the 15 of february. let's look at realpolitik here for a moment. house of representatives have new rule under democratic control, they need2 hours to see text of legislation before they put it on the floor. then you have to get this through the senate -- 72-hours. real deadline, week from tomorrow, february 8th, latest the 10th. i was told appropriators, members of this conference committee they were speaking separately, having separate conversation. staff were meeting what they were doing, the term, they were clearing out the underbrush. there might be more robust meetings next week. they don't have a lot of time, connell. the good news there are seven bills that they're looking at here. six of them are settle but that one bill, the dhs bill, is the key thing. they have to resolve that. that is going to be the key, connell. connell: so is the committee, you talked about it this is
touchstone for things, the president it is interesting to hear him he is talking about it, i will not wait for this committee. so what can they actually get done or, maybe there is other issues they can work on? what is the future of this committee? seems like the president is looking to bypass it in some ways? >> chuck schumer, the democratic leader said he wants president to stay out of this. appropriators are pretty good working out these deals inside the halls of congress. that is why they're appropriators. three types of members about congress, democrats, republicans and appropriators. there will be red lines in this for democrats. they will not agree to more i.c.e. agents. they will not agree to i.c.e. beds. i talked to republican pretty operators couple daysing a the words wall, might perceived to be a wall wouldn't necessarily appear in the legislation. all this will be in the eye of the beholder. you will have things that tinker around the edges of border security. some republicans might say that counts as a wall.
some democrats say that doesn't account as a wall yet they agree on same thing. conference report which is the final thing, once you put the conference committee together, house proposals are together, senate proposals are together, blend it all together, you move that across the house and senate floors. connell: talk about sausage being made. that is what it looks like on capitol hill. chad, that gives us something to talk about with our next guest. shelley moore capito from west virginia is working to come up with a deal. start, senator, with chad's point about semantics, about whether there would be something in this legislation about the wall without saying it's a wall. is that kind of what you guys are talking about? >> i think we're talking about setting aside things we agree on, technology, more resources and personnel and other things and let's look where we're focusing where our biggest disagreement is which is obviously the wall. we had in my bill that i passed, i'm chairwoman of the department
of homeland security appropriations bill, we passed a bipartisan bill in june that had 1.6 billion for pedestrian fencing. it was the way it was termed. in my view that is a wall. in the president's view that is a wall. connell: okay. >> so i think some of it is semantics, i think if you turn to the profession as, look at president's plan, in conjunction with the border patrol folks a wall is part of it, a barrier, vehicular obstruction, levee -- connell: you have the confidence that you can get to as chad says, next friday, essentially what you guys have to work with if you want to get it done by the deadline? you can get to that point with something that looks or essentially is a wall? you think you can -- >> i think we can. i think we want to. i think there is the will. we had our first committee meeting yesterday with everybody around the table we certainly want to do it. we have seasoned appropriators on there as well to move this process. they have solved hard issues before. where i think if we could, maybe
be left to our own devices i think we could do quite easily. connell: meaning? talking about the president, the president himself or speaker? >> and speaker. connell: speaker said, you know what she said, forget it, no money for a wall. so your point that is not helpful? >> i believe we need a barrier, wall, however you want to term it. they're congested where they are used in congested areas. it will not be across the united states or in large, large numbers. she knows that. so i'm hoping that her conference can convince her, that we can convince the president we all got a win here. let's move on. connell: you're saying at end of this, listen mr. president, this is not $5.7 billion for a literal wall, in terms of how it is written this, it x-amount of money for a barrier, that is what you think you will have to convince him of? >> in reality the president asked for 5.7 billion but it is not all physical wall. some of it is fencing.
some of it is gates. some is levees. it's a whole different thing under border security, a large umbrella. we'll seal where this leads. the president obviously is in the room already, so is the speaker. connell: last quick question, if it all doesn't work hypothetically, would you support the president declaring an emergency? >> you know i don't want to see it get to that, i really don't much i have serious questions about it. in all likelihood i see urgency of preventing illegal immigration into this country. at the end of the day i would probably support him declaring an emergency yes. connell: senator capito, thanks for joining from us capitol hill. >> thank you. connell: former starbucks ceo howard schultz has been hearing it. it continues over his potential run for president as an independent. michael goodwin from the "new york post" responds to all of that, coming up next. >> it is an interesting phenomenon in the last week or
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>> i have succeeded in america. i always thought that was something to be celebrated. i can't find the answers why people are all of sudden chastising me for being successful. connell: that is the former ceo of starbucks, howard schultz, defending all success he had in business. he is at least thinking about a run for president as an independent, yielding some horrified reactions from many democrats. let's bring in "new york post"
columnist, fox contributor, michael goodwin to react with that. boy, it has been some week, which an attack on wealth which we've seen before. but to howard shultz's point, success. you get hard with that. >> the only surprising thing is that he is surprised. where has he been for the last four or eight or 10 years of the obama years? i mean wealth was constantly under attack. that was the basis for so many of president obama's policies, whether it was tax increases, obama care itself was all about redistribution. so i'm, occupy wall street. connell: yes, a lot of that came out, for better or worse in 2018, downturn we had in the economy, which kind of raises the question whether a centrist-like howard schultz is socially liberal, economically moderate or conservative centrist can really be successful in this day and age? >> well look, i think in the democratic party the answer is no. connell: what about in a third
party? >> i think that is, that's why he decided to do this. michael bloomberg is an interesting case. bloomberg thought about running as an independent. concluded he couldn't win. now he is torturing that as, just a spoiler. it wasn't a spoiler when he was thinking about it. only because he couldn't win. because if there is, nobody has majority of the electoral college it, goes to the house of representatives. connell: right. >> each state gets, each delegation gets one vote. so clearly, whoever controls the house, now that would be a democrat in this case. connell: can you imagine? we're getting way out of ourselves. so i think that is, that is the fear though, a lot of democrats see, in a howard schultz, independent run will split the anti-trump vote. connell: do you agree that their fear is well-placed or may be over looking the fact that a run from howard schultz could also take some trump votes away from trump? >> yes. look, you can never say really in advance for certain. i think another impact that
someone like a schultz would have, is that he would tend, i believe to moderate the democrats candidate, because if he is going to talk about defending wealth, opposing medicare for all, all the big agendas that the democrats want to propose on the far left, it will be harder i think, you will have two people opposing that. so i think it will be harder for the democrat to go straight and hard left on all of those issues. connell: that is interesting. because in that scenario, schultz potentially dropses out of the race and more moderate democrat is nominee, maybe. >> it could have all kind of ramification. connell: quick take for you, michael before we let you go, breaking story following with president trump, meeting with the chinese vice premier, in oval office. he talked about progress in the trade talks, as i brought up you heard trade rep robert lighthizer talk about enforcement, enforcement. which leads me there is work to do on a deal with between the
u.s. and china. where do you think we're headed? >> enforcement is obviously the key. all kinds of deals with china have never been enforced. wto never enforced it. even when they're cited they don't abide by it. clearly i think it is trust by verify. connell: you don't want to fall apart once you get it inside. >> that's right. if you want it to deliver, if you believe in principles of free and fair trade you have got to make sure it is enforced. >> is it your sense we're heading towards something here? months ago there was a lot of pessimism out there, boy president is hammering everybody. this not going anywhere fast. seems tied changed, optimism, next couple months we could see some sort of a deal? >> there have been two he will developments. one is it is clear that this is hurt china a lot. connell: yes. >> it is hurting xi politically at home. he is clearly president for life. nonetheless there is some
unhappiness with the situation in the economy there. so china needs a deal now too. i think that is different. also i think, we shouldn't overlook the federal reserve. the president criticized the federal reserve and said to me and to others that you know, china's bank is accommodating. it is hurting me in the struggle against china because if we're going to tighten while they're not going to tighten, while europe is not going to tighten, then american businesses are disadvantage. so now the fed is pulling back. connell: yes. >> i think that is another, another arrow for the president, i think he was proven to be right about that everybody else said, oh, you can't criticize the fed. in fact they all joined in. jerome powell has now come around. connell: interesting. you think it is because of. could be because of that? >> i think that is factor. connell: good to see you as always, michael goodwin. the weather, boy, below freezing temperatures we see sweep across the good part of nation. look at chicago's. pictures out of there are amazing.
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fidelity. open an account today. connell: the breaking news at the hour at least in terms of stock prices would be amazon. there is the stock price, down, but just slightly. this is a mixed report for amazon. it beat the street in terms of earnings per share, $6.04 last quarter, better than expected. revenue also better than expected. but looking forward into the current quarter, its revenue forecast a little bit light compared to expectations. but you know, all things considered with the run-up this month in the stock, not much of a reaction after hours. we'll see how it does tomorrow. you know it's a cold winter. the death toll now, at least 13 from this polar vortex slamming the united states, bringing temperatures lower than anywhere else, lower than antarctica. to mike tobin in the city of chicago. mike? reporter: you announced the tragic news with that death
toll. i like to bring in good news. it seems we are through the worst of it. we have warmed up to negative one degrees. the wind isn't that bad now so it doesn't feel that bad. as you look at these remarkable scenes of all the water that has spun up against these structures here and frozen, and we look out to the lake, you can see one of the things with the temperature is you don't have giant plumes of steam coming off the lake. that is because the air temperature and the water temperature are a little more equalized. before when the water temperature was warmer than the air, you had that remarkable scene of all the steam coming up. a beautiful view right now to the skyline, the city has big shoulders here. the people who had to be out in this stuff say it is brutal cold temperatures that made their jobs very difficult. we are talking about first responders, firefighters. you get a lot of house fires in weather like this as people use space heaters and one guy put a charcoal grill in his garage to try to get the house a little bit warmer. that started a fire. your power crews, of course you have all sorts of power outages
from the increased demand. you have power lines coming down with the ice. they had to bring out warming trucks and keep rotating people through. the bad news, as i tell you it's getting warmer, we expect the snow to start here any minute. not out of the woods yet. connell: something else. david: breaking news right now. president trump just wrapping up a high level trade talk, trump saying he wants to make a comprehensive deal as president xi calls relations between u.s. and china critical. let's go straight to the white house now, where blake burman is standing by with the very latest. including this beautiful letter that he got from president xi. tell us about it. reporter: well, yeah, the white house had been saying leading up to this they believed progress was being made and today, i think we saw just that. after two days of negotiations between top trade negotiators with the united states and china, it culminated in the oval office between a meeting with president trump and the vice premier of china,