tv CNN Newsroom Live FOX Business May 13, 2019 6:00am-9:00am EDT
if you think about politicians, celebrities, when you see personal pictures of themselves you trust them a little more if you like the pictures. cheryl: that's it for fbn:am, mornings with maria starts right now. maria: good morning to you, happy monday, thanks for joining, i'm maria bartiromo, it is monday may 13th, rough start to monday this morning, china trade turmoil this morning all over markets, the white house is expecting china to retaliate on tariffs and that increase there. futures taking a big hit this morning, all night as well on the trade fears, we are expecting a triple-digit decline right out of the gate this morning. uber's rough ride, second day of trading this morning for the ride-sharing giant after disappointing debut. ipo went lower, what the road ahead looks like for uber. wal-mart and target, what they are reportedly looking to add to their shelves. ball-bouncing beater before dropping in for historic win.
mornings with maria begins now. ♪ maria: top story this morning, heightened tensions over u.s.-china trade. futures pointing to selloff right out of the gate this morning, the market is down almost 300 points. china says this morning it will never surrender, but it is still unclear how it will retaliate after the u.s. raised tariffs to 25% beginning on friday, last friday. stocks rebounded from early losses late in the day friday, latest round of talks, take a look at where we ended yesterday, friday, rather, dow jones industrial average up 114 points, nasdaq up 6 and a third and s&p 500 was up 10 and two-thirds points so a real rebounded, sounds like the markets were trusting the
president's approach, although this morning once again they see selloff underway, on sunday morning futures i spoke with lindsey graham of the president's handling of china trade negotiation, here is what he said. >> this is the best chance of my lifetime to get china to change their cheating ways, tariffs and tools that bring china to do table. i'm standing 100% with the president, we will have short-term pain in america to get china to change behavior and if we don't get china to change they will destroy our economy over time so i'm 100% with the president. maria: joining me now wealth adviser president, mark avalon. good to see you this morning, thanks for joining us. what's your reaction going on with u.s. and china, is the president right to push back? >> of course, he's right to push back and senator graham made good point that this will cost short-term pain. ultimately we will find out if the american consumer and the american voter is going to tolerate or stand for that. we are not used to that in a
short run here but the president is looking forward and he's looking forward to the next decade or two where if we don't take the stands now, the chinese are intent on beating us economically and that's why the talks are broken down, we start today gain footing, we start today move the ball forward, they didn't like the way that looked, it's not part of end game, we have approaches and we have to make sure that we have the fortitude to sit through the economic pain that this inevitable cause. maria: by the close things come back so it feels like there is a belief in this strategy and yet do you want to stay out of stocks right now while this -- while this fixes itself? >> i think the china trade talks will be a permanent condition, even if we get an agreement it's not going to be one and done, so investors are starting to realize that, they are baking it into assumptions and that's why you haven't seen the stock
market fall through the floor when we had bad news last week, i think the underlying strength of the u.s. economy is what's giving president trump the ability to negotiate and that underlying strength in the economy is keeping at least for now with stocks along with fed, i don't think investors should run for the door because trade headlines are uncertain. i think it's a new permanent condition that we will have to get used to. maria: what are you doing in terms of your clients and how you're allocating capital right now? what are you doing in the face of this? >> i think you have to look beyond the immediate news noise, there's been so many headlines throughout the duration of the bull market that legitimately could have scared you, greek bank failures, brexit. this china trade talk is real, but it's something we are going to work through and investors may be able to trade a little bit in the short run but in the end it's going to prove to be another blip in for now a bull market in stocks and we don't see that ending especially as
long as the federal reserve is accommodative as it is. maria: senator rand paul is raising concerns about turmoil, yesterday explained why he wants the president to make deal with china sooner rather than later. watch this. >> my concern that the great benefits to have tax cut which have low unemployment and incredible growth can be erased by tariff war as we rachet it up with china. we are in the middle of this and the playing is negotiating with the chinese, he can't back out. maria: pretty unbelievable that china backed out of all of the things that they had agreed upon in the deal last week. >> yes, senator paul in the interview also went onto say that the benefit of the tax cuts that some of his kentucky companies have benefited are starting to get eaten away at by the tariffs and they're at inflection point and he went onto say that it was the tax
cuts that allowed the companies to have the balance sheet strength to withstand the first round of tariffs, the question is if they jumped them up to 25% how will american corporations react, thus far the tax rut gave retailers a great boost and allowed them to tariff hits, not the full effects of the tax cuts will offset that. maria: would you change your mind if the president puts taxes or tariffs on remaining of chinese goods that are so far not taxed? >> if that escalates into something even more from the chinese and then we retaliate and then all-out trade war, that could change the global macro economic situation and, yes, that would be cause for reconsideration, but until this thing blows up i think we should look at it as a series of ongoing negotiations that could go on for comments.
maria: we want the to look at retail sales, commerce department to release results for april this thursday, center piece of economical der as investors are looking any sign of consumer spending and how well things are going, good morning, jackie. >> good morning to yo maurp, the focus with china trade is in the the backdrop will be on retail number and interesting because we saw the blip and decline in february, rebounded in march, economists are looking for 2 tenths of a percent increase in april as well and they'll be looking to see how strong condition assumer spending is, this is the gauge for that and that's really important in the environment that we are in right now. industrial production is also going to be in focus that will give us a sense of what happened with manufacturing and another interesting thing eric: talking about retail, i want to bring this up because there are reports out there that change like wal-mart and target, they are actually looking to bring cbd into their stores, cbd, relaxes you, distresses you, doesn't necessarily get you high
and does relieve pain, companies are reportedly talking to companies that manufacture the gummies, the drinks to put them on the shelves, maybe that will boost sales as well, maria. maria: yeah, this is becoming a trend, others who have done that, certainly legal in california. >> exactly. kroger and safeway, they are exploring it as well, not just targets of the world, the super market chains too. maria: all right, we will see you in a little bit. cheryl casone with details there as he looks at iran, cheryl. cheryl: yeah, big story right now, maria. mike pompeo postponed trip to russia overnight. right now he's heading to brussels, hold talks on iran with european allies, discussions as iran called u.s. military forces, quote, target, iranian military commander adding if americans make a move we will hit them in the head. pompeo heads to russia to meet
with vladimir putin and prime minister sergey lavrov. two saudi arabian oil tankers in strait and saudi press agency said the vessel suffered significant damage in act of sabotage, the attack as tankers were about to enter the persian gulf. this actually comes as the united states is ramping up and has ramped up military presence in that region in response to growing threat from iran. remember, the uss lincoln is in the area. there's oil up almost a dollar right now. and from friday to today, uber investors hoping that, well, they day 2 of trading is better than days. shares of uber flopped, fell below 8% 45 bucks a share. rival lyft having problems of its own. lyft is down 14%. now, in addition to investor pressure, both companies also
facing pressure keeping drivers, while trying to lower costs and losses, these companies are confronting high driver turnover, many say it is because of low wages, so we will see if the second day is a charm for uber, you to say, maria, going public last week wasn't great timing for uber. maria: yeah, i mean, everybody was so surprised. wow, uber is down, it did lose $1.8 billion last year, going into ipo, we knew that the companies lyft as well are money losing, so -- >> they have to make -- we we wanted to see profit. that maybe a long ways away. maybe not never but a long way. maria: cheryl, thank you, quick break, coming up 2020 in focus, capitalism versus socialism on the ballot, we are breaking it down right after this. buzzer-beater, raptors defeat 76ers in dramatic fashion, all highlights in sports when we come back.
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maria: big show this morning, newt gringrich is here, chairman joe lieberman is here, big story around iran this morning. ohio congressman brad joining us, along with judge andrew napolitano, actor, investor dean is with us as well. don't miss a moment of it, big 3 hours, we want to look at emerging scene going into 2020 for politicians and business leaders, capitalism versus socialism. all week this week on fox business, closer look at debate and this morning we layed ground work explaining what a social system really looks like, joining the conversation this morning wall street journal assistant editorial page editor james freeman and pwc partner mitch roschelle. >> great to see you, guys, a
conversation that's going to be had on the network all week and something that we have been talking about. the way i look at it like this, 10 years if you said we were going to have socialist candidate on the platform, people would have looked at you like you were literally absolutely crazy. now it's a serious part of the conversation and gaining momentum in terms of a dialogue. washington post business columnist said this in book, america's capitalism doesn't survive. decade, quote, 80% of americans agreed with the statement that free market economy is the best system, today it's 60%, lower than in china. one recent poll found that only 42% of millennials supported capitalism and another majority of millennials said they would live in socialist country than capitalist one. i mean, that's really astounding when you think about it and you turn back and say, do people really understand what it is that they are talking about here, the differences, let's actually review them for the people watching at home, so capitalism versus socialism, private ownership versus
government ownership, individual goals versus the collective goals, right, high competition, low competition, individual wealth versus wealth shared by all. i think one of the best examples is health care in this country, closest that we've come having conversation, people actually didn't get what they wanted, they ended up paying more. they ended up not being able to see the doctors that they were seeing previously. it had a tax on small business in terms of their cost rising as well, so if you continue to sort of change system, to implement the reforms, the question is you can distribute the wealth that we have now but can you keep the engine going further, to push the ball further and remember we have a big population, we are one of the wealthiest countries in the world for the people that we support but at the same time you have to keep that going and those are the things that we will discuss, we will talk about innovation, we will talk about the kind of developments that come out of this country, the work the corporations are here
doing and really lay it out so that the people that are on the side of the socialist system do want to see that kind of reform really understand what it is they are getting into. it's extreme case but venezuela is a good example. maria: great analysis, jackie, really well done, right now you see capitalist who is made money free enterprise system writing essays and remarks about how capitalism needs to change, james, even though capitalists who enriched themselves over 20, 30 year period are now questioning the very system that got them there. >> yeah, disturbing, part of it is there's been a lot of misinformation unon the inequality front, a lot of the measurements to say it's horrible, it's growing, it's worst than it's ever been, they don't consider after tax, after
government levels, what is the income level, you look at those measures, they maybe haven't changed at all, inequality is part of what makes capitalism work. there's not a rewarded for doing more, for innovating, creating the new invention, you don't get those inventions, you mentioned venezuela, i mean, how many great inventions have come out of venezuela in the last -- none. maria: i would point back to europe. how many great innovations have we seen coming out of europe? what italian company, what spanish company can you name that are in the top, you know, hundred or 50 in terms of innovators in technology, in biotech medicine. we also should consider, capitalism and the free-enterprise system particularly in couple of years has lifted so many out of poverty. >> yeah, no question about it. when you put capital at risk no matter how small it is, you create wealth perhaps if you're successful but if you are successful one of the things
that you create is jobs and i think the thing that's lost in debate putting capital at risk things that create jobs and creates wealth not just for the person, for the capital at risk, for those employed and income inequality is something that's clearly debated. i'm with james, if we make marginal tax rate 90%, we will create more income inequality and not less. maria: i think it's important to explain what socialism is because a lot of the democratic hopefuls, they say i'm not a socialist, they are endorsing or supporting socialist programs. >> yeah, i guess if you want to read the glases half full, it's nice that they feel compel today call it medicare for all because they know that still socialized medicine or single-payer health care or no choice health care is not going to be appeal to go people. even though they get rid of medicare, they feel like that brand has got to be used in instead of saying full-on
socialist system. >> in we were to nationalize insurance, what about all the jobs displaced as a result, what do they become government employees? >> 180 million americans get insurance from private insurance companies. be sure to tune in. we are looking forward to fox business town hall this week, capitalism versus socialism. 2:00 p.m. eastern, join charles and all of the fox business stars as we participate in capitalism versus socialism this week. first, though, immigration debate is on, senator lindsey graham telling me in an exclusive interview his plan to address the border crisis, we are at el paso border two weeks and what we saw was stunning at the border, talk about expensive lunch, the price tag coming up, stay with us.
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maria: futures this morning are lower, we are expecting pretty good selloff right out of the gate u better than 1% as investors worry about the breakdown in talks between the u.s. and china, the president is inviting u.s. -- i'm sorry, china is inviting u.s. negotiators to continue trade talks according to white house and we will watch to see what happens next right now because china says it will retaliate, that's why you have the markets down, 294 on the dow. headline as cross america this morning, la times reporting this morning pot smuggling arrests at
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fetch at least $20,000 a piece, one from 1954 featuring superman and the other man from atlanta. fun stories there. >> yeah, was that patrick duffy, was he the man from atlanta, maybe he was -- maria: coming up crisis at the border, president trump slamming democrats this weekend over immigration in late-night tweet. senator lindsey graham tells me plan that he will unveil this wednesday, border battle coming up next, miracle miramar, pilot landing plane without front wheels, everybody is safe, story coming up.
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maria: good monday morning, welcome back, thank you so much for joining us, i'm maria bartiromo, it is monday may 13th, your top stories 6:30 a.m. on the button on the east coast. rising tensions with china, once again top story. beijing says, it will, quote, never surrender as trade negotiations hit a wall, uncertainty hitting global markets hard this morning, we are expecting 300 point selloff right out of the gate this morning, futures decline of 294 points on the dow, this after big comeback on friday finishing in the green for stocks, take a look, dow industrials had been down big in the morning but ended up 114 points on the dow at the close, s&p was 10 and two-thirds and nasdaq up 6 points on friday, it was the s&p 500's worst week of the year still, worst week since march for the major indices, in europe
mixed performance, take a look at indices, ftse down just 4 points, flat, cac quarante is down 29 and dax index in germany lower by 91. in asia overniepght, -- overnight, china was the hardest hit. hard landing jet safely touching down without front wheels, the pilot is being held as hero this morning. we will bring you the details and push to declassify, senator lindsey graham telling me in an exclusive interview, close to have sensitive document declassified that authorities knew dossier lacked any corroboration at all, a look at the story coming up. nail-biting finish to game 7 between raptors and 6ers, watch.
>> off leonard. maria: more this morning on the historic buzzard-beater, crisis at the border, the president tweeted this last night. the constitutional crisis is democrats refuse to go work, let them start by fixing mess that immigration laws have caused at southern border, in an exclusive interview i spoke with lindsey graham about his plan he's going to break news on wednesday when he drops a bill to fix the crisis at the border. senator, what can you tell us about the package that you've been planning to unleash? >> word out on the street in central america if you bring minor child with you to america we can only hold a minor child for 20 days, we release everybody including the adults, they never show up to hearing because it's 3 years from now, we will change the asylum law that you have to apply in the country that you live or méxico, we will stop central american applications being made at the border, we are going to go to
100 days, hold minor children for 100 days so we can process the entire family without letting them go, we are going to increase judges by 500, we have almost 900,000 backlog asylum claims and if you're unaccompanied minor we will send you back as if you lived with méxico which would be change in our laws, this should stop 90% of the illegal immigration from central america. maria: senator plans to drop the bill on wednesday, we will see what happens after that. this is certainly one of the soonest case that is we will see change in terms of loopholes in the law. joining us republican strategist jason johnson to talk more about that, jason, thank you very much for being here this morning. what do you think, is that going to be nufer to stop the flood of illegals comeing in, i was stun today see how many children were at the border with parents or even without parents, these two kids right here, one was 8 and one was 10, they were alone, they actually crossed the border
alone, they said their mother was with them and went to get them something to eat and she left. there were other kids that we know from the mayor of el paso who told me that there's a renting program going on, mothers are renting out their kids so smugglers can come across the border with their kids and after they cross the border, they have to send them back or leave them, one 3-year-old was found in the grass, he had name and number on sneakers alone. >> this has become a partisan issue what you were laying out. kids literally being used as crutches to get across the border and we hear nothing from the democrats. i am so thankful to hear that senator graham is laying a solution on the table, he's right, the folks south of the border particularly in central american countries have figured it out, what's going on, they are gaming the system, now he's putting a solution on the table
to take that incentive off the table and with senator -- excuse me, with president trump continuing to pressure, i love the tweet that he put out last night, constitutional crisis the democrats not acting, we will see. we have a legislative solution on the table. will chuck schumer step up and actually negotiate, try to play ball, will nancy pelosi on the house actually step up and do something or are they going to continue to ignore what's a security issue and frankly a humanitarian crisis. it's to be determined. maria: it's true. >> jason, mitch roschelle, good morning, one of the things that's interesting obviously this is highly political and it's clear that the house doesn't want to give the president a win in any possible way. but is there something that the house could do that it would look like a win to them that in the end will help solve this problem? >> i -- i get that, you know, we
are close, it's amazing that we are, we are close to 2020 and that everything is political and just as you said, the democrats don't want to do anything that could be perceived as -- maria: it's not right. >> it's not. and, maria, what you brought up a moment ago, what makes this different, we all know republicans have been guilty of using the immigration and border security issue as political football tool, let's be rail. this is different, right, we are no longer talking about only our mostly, you know, young single men coming across the border looking for a job as you pointed out, maria, we have children being put in harm's way, being trafficked by the cartels across the border, surely, surely nancy pelosi as good of a politician as she is, she's been there for, i don't know how long, could see that she can do the right thing
here and at least make the situation such that there's not incentive to use these kids, that can be a win-win politically. maria: you would think they would say something about this, you would think that they would say something about this and make sure people understand they recognize this is a crisis, james. >> you would think that there's no request for wall money in here, if it's just a solution to this obviously broken asylum law and judges who will not allow the president even his legal authority to set asylum policy, but if there's no wall requested, if it's just changed to the law, judges, maybe more detention areas in terms of beds, food, shelter, jason, you were saying, i guess you're not optimistic, do you think this is maybe the package that forces the house to act? >> i do think it's the package and i'm not real optimistic when it comes to politicians as
general rule of thumb. you the new york times editorial board opine that there's a problem, there needs to be more money, we've had multiple polls in the last weeks that show that in some cases the majority and in almost all cases of plurality of americans regardless of party identification, crisis or serious problem at the border, so democrats in the house -- maria: it's become among the most important issues to voters but not only are the democrats not doing anything about it, they're also trying to change the reality when it comes to the fisa abuse. president trump tweeted this last night, they are trying to take down attorney general despite millions of dollars spent, democrats are acting like lunatics, they knew there was nothing before the report started, it's all a big hoax, the biggest in american history.
senator lindsey graham provided update of declassifying documents and deep dive that his committee, senate judiciary committee is doing on fisa abuse, watch this. i don't know why the president hasn't done it yet, he said that he will do it, he told me that and others, do you expect him to do it and what will we learn from those documents? >> well, i think you'll learn that the fbi was on notice that christopher steele was not a reliable informant when it came to trump, that he was being paid for by the democratic party, that his work product had not been vetted and that he was out to get trump and they used the dossier anyway, i think he is going to learn a lot how the counterintelligence investigation, that papadopoulos working with the russians, they put it in the head that the russians stole clinton emails. all of this will be coming sooner rather than later.
maria: yeah, and that's another thing, jason, you would think that any american on either side of the aisle would be outraged that a cabal of people, fbi, took it upon themselves to put the finger on the scale and change an election by trying to take down donald trump. it's now obvious to all. >> yeah, you think back to the first time you heard donald trump use the term deep state and i will admit that even i thought, come on, that's a bit extreme. if you can't see now that such a thing exists, then you're blind and you don't want to see and you don't want to hear and senator graham as he layed out, look, there's a guy you know, you've known him for a long time, maria, if he says he will sink teeth into it, he's going to. the democrats are word. what i don't get is how the democrats in the house don't see the connection here. they ought to want to move off
of the whole mueller thing given what's going to come to light in the future and they're not, they continue to talk about the russian hoax and, you know, collusion where there was none and connected directly to not acting on the border, they've got a real problem politically and they will run into real, real political trouble in 2020 if they don't start actually dealing with issues. maria: that the american people care about. jason thank you so much. good to see you. amazing that they hold william barr in contempt for not releasing 100% of a report that he did release and the only thing that wasn't release was grand jury information if he were to release it, he would be breaking the law. >> yeah, and the number of democrats who have gone over to read as they are allowed, the version, only the grand jury material redacted which can't disclose, it was zero, i believe friday night. i don't know from the weekend.
maria: jerry nadler could do it as chairman of the committee but he hasn't done it. >> smallest businesses under pressure currently from u.s. job market because of the taifs are, cheryl casone with those details in headlines, cheryl. cheryl: shares affecting markets as we just saw, job growth at companies, maria, at the lowest level in nearly 8 years, that's according to wall street journal report, number of people working at companies are fewer than 20 workers grew by less than 1% in march and april, that's compared to last year and we have seen this much we have not, so rough numbers coming out, smaller businesses. passenger jet landing without front wheels, the pilot being praised after it landed and the
video showed rising from under the plane, all 82 passengers and crew members on board arrived safe. meanwhile boeing 737 plane made emergency landing in tennessee after reporting mechanical issue, passengers on flight were safely transferred to another aircraft. >> it's still alive, case close. still open until i saw. >> opening weekend took 58 million. disney avengers game earning top spot. 2.48 billion, it is closing in
on avatar, record 2.78 billion for now, maria. maria: what a film. cheryl, thank you, breaking up facebook, another 2020 presidential candidate vowing to tackle the social media giant, those comments coming up next, plus, the big new york times piece on it, celebrating mother's day, the san diego padres honors moms using twitter with unexpected consequences, the teen last their own handle after changing, we will be right back.
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maria: welcome back, the president just tweeted on china, here is what he said. there's no reason for the u.s. consumer to pay the tariffs which take effect on china today, this has been proven recently when only 4 points were paid by the u.s., 21 points by china because china subsidizes product to such a large degree, tariffs can be completed avoided if you buy from a nontariff country or you buy the product inside the usa, best idea. that's zero tariffs, many tariff companies will be leaving china for vietnam and other such countries in asia. that's why china wants to make a deal so badly. they'll be nobody left in china to do business with, very bad for china, very good for the usa, but chain as -- china has taken advantage of the u.s., our
presidents did not do the job therefore china should not retaliate, will only get worse, writes the president. the chinese have said they will retaliate so we are all wait to go see what that means from china's standpoint. we want to look at facebook and breaking up facebook, social media giants cofounders called for that last week in big new york times piece, lauren simonetti with all the details. lauren: he pulled no punches as we all know, facebook needs to be broken up, regulated and the company and mark zuckerberg have too much power calling it unprecedented and un-american, this obviously gaining traction in campaign trail, here is kamala harris. >> facebook has experienced massive growth and has prioritized its growth over the best interest of its consumers, especially on pricing.
>> they should be broken up? >> we have to seriously take a look at that, yes. lauren: she's not the only one, she went onto say, facebook, utility, that's why it's right for regulation, few people can get by without facebook, i don't have facebook and i get by just fine. do i want to point that out. this idea is getting a lot of traction and i want to give you, facebook is responding, this is what nick, new head of global affairs said on cnn yesterday. >> all the message to send to american business, but when grow businesses and make them ever more successful and allow billions of consumers to use for free which it wasn't when it was brought by facebook, somehow it should be penalized for that success. we do need new rules of the road but i don't think it was be sensible for anyone, not for facebook's point of view or society's point of view as a
whole if we would start dismantling the company. lauren: i will end it with this, one way to look at this, this way they can stifle the competition, if there's regulation you can't have a start-up that facebook can't buy, start-up. maria: interesting conversation, republicans don't want to see more government, when you have a company that's really breaking out privacy laws or breaching our trust, then what? >> well, i think that we ought to be talking how do you allow more up-starts to compete with them. maria: short break, when we come back insane plain buzzer-beater, thrilling game to end 7, raptors moving on after issuing off the 76ers next.
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president is tweeting this morning on u.s.-china trade, he just said this, i say openly to president xi and all of my many friends in china that china will be hurt very badly if you don't make a deal because companies will be forced to leave china for other countries. too expensive to buy in china, you had a great deal, almost completed and you backed out, writes the president. meanwhile amazing ending to nba playoff series in toronto last night, jared max with big drama of the night. jared, good morning. jared: good morning, maria, hard to imagine never been buzzer-beater before in deciding game 7 of nba series, raptors and 6ers all tied at 90 until. >> dropped by leonard. [cheers and applause] jared: four bounces on the rim through the hoop, leonard score, game on wednesday, western
finals tomorrow, steph curry, seth and the blazers. oh, madre. we thought it would be acute idea to change from padres to madres, they gave up twitter handle. somebody scooped it in. they got their team handle back, close call. major league baseball as always, the league goes pink on mother's day. did you watch game of thrones last night, aaron rogers wrote on instagram, a few seconds, crazy episode tonight, maria. maria: big congratulations for you, you also had fun weekend with horses, tell us about that? >> amazing experience, derby in new jersey, we raised $6,000 for great group called the brooklyn
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maria: welcome back. good monday morning, everybody. thanks so much no for joining u. i'm maria bartiromo. it's monday, may 13th. we're got to show you the markets. trade turmoil this morning once again, china is threatening to retaliate for tariffs increases on goods, $200 billion in goods. now facing a 25% tariff versus 10%. president trump just tweeted on this this morning, saying china should not retaliate, it will only get worse. futures taking a big hit this morning, take a look at the trade fears. we're at the lows of the morning, down 300 points on the dow futures, s&p down 35, nasdaq down 122. even after a big comeback on friday, friday the markets staged a comeback near the end of trading.
markets were lower, ended up 114 points on the dow industrials, s&p was up 10, nasdaq up 6. materials, consumers staples, financials fueling the turnaround on friday. in europe this morning we're looking at mostly lower performances across the board. the fq100 is down 3 points. the cac in paris is down 27. in asia overnight, he declines across the board as you can see, china was i hit amid the trade uncertainty, down 1 and a quarter percent, hong kong was closed for a holiday. the kospi index was down 1 and a third percent overnight. healthcare in america, 44 states sued drug maker tev pharmaceuticals and other manufacturers over alleged price fixing. uber's rough ride, the second day of trading this morning after a disappointing debut. the stock was down 2 and a third percent many it was priced at 45, opened at 42 college admissions sca scandal, fell aty
huffman is expected to plead guilty today. joining me to break it down, james freeman and mitch rochell. great to see everybody this morning. >> we're figuring out -- the markets are trying to figure out how much the tariffs are going to cost. tax foundation says over the long haul, if all of the tariffs get put in place, all of the threatened ones, it could knock out half of the growth expect fredfrom the 2017 tax reforms. >> others are saying that the companies dealing with these tariffs, they absorbed the first 10%, they'll absorb the rest as well. if you look at this for short-term pain for a long-term gain, that's the president's strategy. maria: i don't know how you move the needle on things like stolen i.p., forced transfer of technology. if this is a cultural thing, how do you get the chinese to change it. >> whether you like the tariff
negotiating tactic or not, the reality is our economy's in a stronger position right now than it's been the past decade. if you do a trade war, you do it from a he position of strength maria: all important points. joining the conversation, newt gingrich is with us this morning, along with united against nuclear iran chairman, joe lieberman. senior judicial analyst, andrew napolitano is here, along with actor dean dean kane. the top story, u.s.-china trade, china is threatening to retaliate for tariff hikes on goods but also inviting u.s. negotiators to continue talking. president trump tweeted about this moments ago. he says this, i say openly to presidents xi and many my friends in china that china will be hurt badly if you don't make a deal because companies will be forced to china for other countries, too expensive to buy in china, huh a great deal, almost completed and you backed out writes the president. joining us rights now is ohio
congressman brad windstrop. thank you for joining us this morning. >> thank you. maria: what do you expect the impact to the economy will be from these tariffs? >> i think like we're seeing this morning, there's a he kneee jerk reaction that takes place in the markets, like you were saying, i think there will be short-term pain and long-term gain. i look at these things as a military officer, i look at the big picture. you have china that's been cheating, stealing, as you mentioned, they've been embedded in our universities and companies and at the same time they're enhancing their military. we've got to do something about this economic imbalance that's taken place or we're going to have a national security issue on our hands if we don't already. >> congressman, james freeman here at the wall street journal. we've seen polling that suggests that people don't realize they've got a big tax cut this year. i'm wondering if they are going to see or feel the impact of these tariffs. i'm sure you're hearing from
producers, farmers. do you hear from consumers about this issue? >> yeah, i definitely do. let's take the farmers for example. farmers, they say look, we'll ride with this for a while, we understand this may be a problem but if we can get a better end result, we're all for it. i think they're still hanging with the president on this, that they see the bigger picture. i hope that most do across the country. we're real any a type of cold war right now and i think people understand that and this is just one of the tools in our toolbox that we have to use if we're going to, one, get a better economic situation moving forward, and if we're going to make sure that we are a secure nation. maria: the president just tweeted on this. he says the unexpectedly good first quarter, 3.2% gdp, was greatly helped by tariffs from china. some people just don't get it, the president writes. so i mean, the growth that we saw in the first quarter, we saw strength on the corporate side as well as the consumer side. how much of it -- he's saying that part of it was because of the tariff revenue.
>> well, he is saying that. there's a lot of revenue coming from that. he expects to have even more if we go you through with the tariffs the way he's implementing right now. he talked about taking some of the tariff money and buying some of the products that we produce, especially in agriculture, and helping those around the world that are in need. and that will help our great farmers. so he's looking at a lot of different ways, other presidents haven't talked about. maria: it's true, you just wonder how far you really want this to go. senator rand paul raised concerns this weekend about the u.s.-china trade relationship, explaining why he wants the president to make a deal as soon as possible. watch this. >> my concern is that the great benefits of the tax cut, which have low unemployment and incredible economic growth could b erased by the tariff war. we're in the middle of this and the president is playing a negotiating battle with the chinese and i think he feels that at this point if can't really back out.
maria: so what do you think, congressman? how far should the white house take this. >> i think there's many people that would say that china has more to lose than we do. i think that's one of the things that the president is considering in all this. senator paul is right, it is a concern. tariffs are a tax. we all understand that. we want to make sure that we proceed carefully and cautiously and have time to rebound from whatever may happen but i think that as the president moves forward, he's understanding the big picture and the long-term gain and i hope that we end up where we should be and where he wants to be. >> congressman, jackie deangeles here. great to see you. my question is about china reneging on the deal. we were talking about this on the break, why do we think they saw the terms in writing and were spooked by them. a lot of people say china feels its sovereignity is at stake and doesn't want to look weak when compared to the united states. the question is, even wit this k and forth had, do you think it's possible for china to get over those feelings and be able to
negotiate any kind of deal? >> that's going to be a tough problem for them internally to figure that out. of course they don't want to look weak. i think president xi wants to come out of this saying we made a deal with the united states of america. i think it's important to them. they know what the impact of the businesses in china are, american businesses in china, and what their exports have done. so i think that they want to get a deal. you're right, they don't want to look weak in all of this. their media is well-controlled. their people are only going to know so much. i think they can go a ahead. i think they probably did get a little t bit spooked by this. they see that we've got to change a lot of what we're doing and on our side, we're trying to say not only are you going to play fairly, but how do we make sure there's retributions if you don't. maria: it's funny to watch the democrats tackle this issue. most people agree that the president was right to push back on china. so let's talk 2020 for a second. because the president just tweeted this yesterday. he says china is dreaming that
sleepy joe biden or any of the others gets elected in 2020. they love ripping off america. so i mean, when the democrats talk about whether it's the chinese situation or the economy, you know, oh, sure, 3.2% growth in the first quarter but we're not feeling it. i mean, it's going to be tough to push back on this president for his policies, given the fact that so far most people agree with him and they have moved the needle on economic growth. >> there's no doubt about it, the economy is feeling it, we're seeing it everywhere we go. at the same time, you are having democrat that's say it's important to be tough on china. i think that's helpful to the president. i really do. and it helps him make his case and i think that it's nice see there's one thing that we can be in unison on when it comes to dealing with china. and i hope we continue that. >> congressman, good morning, mitch rochell. as a member of the house ways and means commit tick committees beyond tariffs if there's any policy you're trying to push
through. were you trying to get technical corrections done. i'm the accountant in the room so i'm curious about this. any chance in this congress you'll be able to get anything accomplished to clean up some of the vee items in the tax bill tt needed to be fixed. >> i hope so. i think chairman p nei chair ne, there are things he wants to get done. he would like to have a decent legacy as chairman of the ways and means committee. i hope it's only one term, but nonetheless i think there's things he want to get done and work with both sides of the aisle. he knows he can't do it if he doesn't have republican support, both here and in the senate. so i think we may be able to get some things done. saw us do some irs reform and some other things already in this term. coming out of committee. i hope that continues on other fronts. maria: so far, chairma chairmal has wanted the president's tax returns. >> that's one issue that i have to disagree with him and know
we're not necessarily going to come to common ground on that. he has pushed on that he's probably got a lot of pressure to push on that. in the other areas, he has really reached out to republicans. he's also had democrats reach out with lighthizer and i think that that's been good. they've been very pleased with the wha way he's engaged with h. there are positives there. it won't be 100%, i don't think, at the same time i think he wants to get some things done positively. >> just one last thing on the tariff issue that trump tweet, the president's tweet saying that tariffs are actually a a reason our economy is growing. that can't be right. >> well, that might be a little bit of a stretch. but i think what he's saying is the revenues that are coming in from tariffs. but we'll see what the retaliation looks like from china. and what that may lead to. but i think that that point he was making is that it's bringing in some revenue through the tariffs. maria: we will leave it there. congressman, good to see you.
thanks so much. >> you bet. thank you. maria: coming up, drug prices in america, 44 states filing a lawsuit against drug maker teva alleging price fixing. the stock is sliding this morning, down 9%. we're going to get into it when we come back. and then uber on the market day two, investors hoping for a smoother ride after a disappointing debut on friday. the stock is down 3 and two-thirds percent already this morning. stay with us. ♪ you know it's going to be forever. ♪ or it's going to go down in flames. ♪ you can tell me when it's over. ♪ if the high was worth the pain. ♪
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leaving sweden in 2010. you was rearrested last month when eecuador revoked his politl asylum. he is also accused of allegedly hacking into a pent i don't kno computer. questions are swirling around nissan. nissan on track to announce its lowest annual operating profit in 10 years tomorrow. and the challenge is coming in the questions about whether nissan's new ceo is the right executive to fix the company. ghosn is facing charges of financial misconduct. he has been released on bail in tokyo as he awaits his trial. chairs oshares of nissan is dows year. amazon is rolling out the robots at its warehouses. they have added technology to scan goods that come down a conveyor belt and then put them into boxes. amazon's considered installing two machines at dozens more
warehouses, removing at least 24 jobs. that would amount to more than 1300 cuts across a 55 fulfillment centers. and finally this for your morning, if you think you pay a lot for that cup of coffee right now taxer a look at this. one coffee shop in california is selling a cup of coffee for $75. clasp coffeer cough coffee roass imported the coffee from panama. clasp is the only place in the u.s. to own the coffee and the beans are going fast. yeah. maria: come on, cheryl. cheryl: i swear. maria: and you -- you thought starbucks was expensive. >> $800 a pound? maria: $75 a cup? >> there better be gold in there. >> and dump half in half in there and dilute it. >> and there goes the taste. a little sweet and. maria: when we come back, a rough ride for youtube rer.
the weaker than -- uber. the weaker than expected launch on friday leaves investorsor cog up short. then the college admissions scandal. actress felicity huffman will plead guilty to consisten conspr today we're told. her punishment coming up. back in a moment. ♪ dreaming. ♪ that some day he'd be the star. ♪ a superstar, but he didn't get far. ♪ he still found out the wrong way my digestive system used to make me feel sluggish
maria: welcome back. well, the week is kicking off in a downward move. take a look. we are expecting a pretty big selloff at the start of trading this morning as investors worry about the impact of tariffs, the 25% tariff went into effect on friday and even though we saw a comeback by the end of the day
friday, this morning markets are worried about how china will retaliate. dow industrials right now down 330 points, s&p dow 38, nasdaq down 132. then uber rough ride on friday for the company's debut. the company's second day of trading being watched closely this morning. uber started publicly trading on friday at $42 a share. the stock is down 4 and-a-half percent. it was offered at $45, priced at $45. it opened lower than the actual offering price. joining us now is financial senior partner and director of research, ivan fineseseth. your reaction to uber's performance. >> well, these both -- lyft and uber are premium priced but they create this category of transportation as a service and there's going to be the need for investors to allocate money to that sector because it's a growth opportunity. and both these companies have
niche opportunities to expand their business, for example, lyft is going very strongly in healthcare transportation, giving people rides to doctors who couldn't get there on their own. lyft also has an enterprise console that a business can arrange rides for employees and customers who can't normally arrange -- don't use the app on their own, pry mayorly older people. -- primarily older people. there's a huge opportunity in the healthcare service. and also transportation as a service is going to not only include uber and lyft but companies that create technology for autonomous vehicles such as google's waymo, gm crews. maria: ford's got argo too. how come the stocks are trading down then? >> one, they came public and they're highly valued. their opportunity is based on future growth, not current profitability. so it is going to be a long-term
theme. and we also are going through a very difficult market right now. so probably the timing was a little off. but there's been a huge demand for these companies to go public, for foreign investors to be able to invest as the transportation as a service concept. >> more probably, the ipo market with the volatility in the stock market right now as a result of the trade war, do you think this pumps the brakes on other big ipo unicorns that may be coming up this year, especially in the shared economy? >> somewhat. but overall there's a lot of pent-up demand for a number of leading companies to go public, that investors want to participate in their success and in theory a successful ipo is priced to give the investors between a 10 or 20% initial pop for the compensation to an investor to take the risk of investing in a newly public company, which doesn't have any trading history and many you cases have limited operating
history. they try to price them to maximize the capital raise for the company and to give the investors some level of cushion and opportunity for taking the >therisk. >> last week was a volatile week for the markets. you had the drivers protesting, uber drivers pe specifically, saying they wanted a larger share of profits when it comes to the rides they're going. that's going to be an ongoing issue. have a company that isn't profitable and the employees, they want a bigger share and they want more money. can this company ever get to profitability? >> well, the strike really didn't amount to much. i mean, unfortunately for the drivers they're not really part of a collective bargaining agreement, not very well organized. yes, the drivers are always going to want more compensation and really the majority of drivers for both uber and lyft are part-time people looking to supplement their income. there are some portion of
full-time drivers who drive the bigger cars that have a premium price. so that is really the opportunity, it's in the opportunity to drive like the big suvs and luxury cars which have a higher premium price and both companies create opportunities for drivers to potentially access the leasing or ownership of those. maria: sounds like you're bullish on the category. >> i'm very bullish on the category. i don't know anybody who doesn't use the service, you look at the app and say i'm here, i want to go here, so the convenience factor and utility factor is tremendous. it has changed car ownership. millennials today -- urban based millennials are not buying cars, they're using these services, changing the way people travel. it is convenient. and it has a lot of opportunities to develop niche markets and eventual growth. maria: what about the broader markets, ivan? any opportunity here with these bill selloffs or you want to stay away from stocks right now until we figure out what's going
on between u.s. and china? >> i think these selloffs, these trade related selloffs are buying opportunities. i think president trump was emboldened to take a tougher stance against china between the strong gdp numbers we got and the strong employment number we got last week. i think that emboldened him to be tougher with china. right now i believe president trump does have the upper hand, just look at -- our markets as of friday down 2.5% from its high in the past week where the china stock market is down 11-poin11 --1.5% since the all-. time is not on president trump's side. he has the upper hand. i believe it's in both country's best interest to have a trade deal so i think we could see a significant snapback. so i'd say right now these selloffs are a buying. maria: you think something gets done. >> absolutely. maria: great to see you. thanks so much. coming up, healthcare in america, 44 states have pushed
back against drug maker v.a., . flash flooding in texas and louisiana, towns under water weeks before hurricane season, all right after this. stay with us. ♪ the wall street shuffle. .♪ hear the money rustle. ♪ watch the greenback stumble. exactly, nothing. they're completely different people, that's why they need customized car insurance from liberty mutual. they'll only pay for what they need! [ gargling ] [ coins hitting the desk ] yes, and they could save a ton. you've done it again, limu. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪
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your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity. maria: welcome back. good monday morning, everybody. thanks so much for joining us. i'm maria bartiromo. it is monday, may 13th. your top stories right now. rising trade tensions with china, once again unraveling markets. beijing says it will never surrender, quote, unquote, to outside pressure as trade negotiations hit a wall. president trump is warning china should not retaliate. chinese say they will. the uncertainty hitting global markets hard. futures indicate a selloff. dow futures down 320 points
right now, s&p futures down 38 and the nasdaq futures right now lower by 130 points, 1 and three quarters percent lower on the nasdaq. after a big comeback on friday, stocks finished in the green when all was said and done. it was still the s&p a 500's worst week of the year but at the close on friday dow industrials were up 114 points. in europe this morning, as you can -- there's the chart. as you can see, the last week, european markets are lower although fq100 is down just 6 points, the cac in paris is down 31, and the jee german dax indes down 95. asia overnight, declines across the board. shanghai composite down better than 1%. hong kong was closed for a holiday as you can see. extreme weather is slamming the south this morning. heavy rains causing devastating flooding in texas, mississippi and louisiana. we have the latest. a guilty plea, felicity huffman set to make it official today in the college admissions scandal.
her possible sentence could include prison time. the ultimate job for a college student, getting paid to drink beer. details on a new internship from netti light coming up this morning. our top stories this half hour, drug prices in america, now 44 states have filed a lawsuit accusing drug makers of inflating prices, some more than 1,000%. shares of the company at the center of this suit is teva t i. pharmaceuticals. your reaction. >> ordinarily, the justice department would indict or would sue in a case like this but the justice department, anti-trust division, decided not to do anything. you have 44 state attorneys general agreeing to file the same lawsuit in federal court in connecticut which is where teva's american headquarters is
located. maria: it's an israeli company. >> perhaps that tempered the enthusiasm for the justice department to get involved. there are two allegations here, one of which is serious, the other is economics. they can raise the prices all they want. that's not actionable. if they do it in conjunction with each other, that's classic price fixing which the statutes prohibit. federal statutes prohibit. so it's unusual. state attorneys general going into federal court to enforce federal law where the federal justice department cha has chosn not to do so. that makes it different. maria: when we talked about the epipen crisis and spoke with the ceo of mylan labs she blamed the pharmacy ben filtfarm benefit m. she said it's the structure of the payout is like you've got all these middlemen. what about that? >> she might have a point because teva doesn't make a product that you would get in a
drugstore. it makes things that go into that product. so if you were to say what drugs are affected by what the government says teva did in this lawsuit? hundreds of everyday things that we buy or that doctors prescribe for us are affected by this because teva is so integral to that process. >> you're saying they're in the supply chain of pharmaceuticals. >> yes, yes. now, question. does the supply chain of pharmaceuticals determine the ultimate consumer price? answer: rarely. that's why this is a conspiracy case. the allegation is that teva and a bu bunch of others -- maria: a teva's stock is down. >> the mylan situation had a situation where the fda was not approving some competitors and allowed some people to charge a lot. here, you don't think of generic drug makers having a lot of leverage. maybe this is a tough conspiracy
to pull off. i'm wondering, if it is occurring, is it because there are not as many competitors in this market as we might like? >> look, it might be occurring because a lot of states attorney general all want to be governor of the state so they like to file litigation had that seems good and feels good for consumers. there may be a proof problem as to why the federal doj didn't do this. there might not be enough evidence there. i'm calling it teva, that's the character from fid lette fiddlee roof. it's teva. >> we talked about healthcare in this conversation about socialism versus capitalism and overhauling the system. i'm wondering if a case like this isn't an example of how congress can go in and regulate and change things a little bit, you don't have to throw the whole system out but you can work on issues like this, certainly. >> well, i hope that congress doesn't regulate prices because politicians don't know the first thing about prices.
that's got to be supply and demand. congress has regulated of to prevent an agreement to fix prices. but look, if this agreement is as pla blatant as these 44 attos general claim it is, it's mind boggling that we didn't know about it before and that the doj -- >> this is a reason to be skeptical. the trump justice department, unlike a lot of other trump departments, has not been -- has been hesitant to use powers, very active on anti-trust. he's obviously talked a lot about lowering drug prices so the fact that the federal justice department didn't swing at this pitch maybe makes you skeptical of the claim. >> i p am skeptical of the claim. it was filed on friday. there's a long way to go before there's any test to the validity of their evidence. >> and they filed it in connecticut. >> they filed in federal court in connecticut, that's where teva is located. maria: we'll watch that.
investors don't like it. the stock is down 8.5%. want to get your take on the college admissions scandal today. felicity huffman is expected to plead gility today on charges related to that scheme. lori loaf lanlaurieloaf laughlin is expected to not pled not guilty. >> those who plead gil you at gy get the better deals. she's not in the first group to plead guilty but she's in the second. the evidence of guilt is overwhelming. it's a crazy case. there are times when this was considered not a crime, it was considered lauditory. i don't know where it's going to go. except that the longer you wait before you plead, the less generous the government will be in giving you a.
maria: you figure that, yeah. >> those who plead guilty earlier, are they doing it in exchange for something or they're trying to be accomodative to -- >> they have promised to reveal if they know it others who have been doing this. when singer's lawyer walked out of the courthouse, he whic whisd to one of our colleagues, molly lieon, my client helped 650 people. there are 30 defendants in the case. maria: we're hearing that felicity huffman could be sentenced to four to 10 months in prison. >> that is an unbelievably good deal when facing 20 years in jail. she wouldn't have gotten that deal but for litigation. that president trump signed a couple months ago which gives federal judges -- judges love to have the leeway. i was forced to sentence people to jail for longer than in my heart of hearts and understanding of the law that they should have gotten but the law forced me to do it. if i didn't do it, the appellate
court reversed it. thanks to the case he signed, this judge has leeway to go from zero to 20. in the old days that 20 would be 17 and-a-half years. maria: judge, thank you so much. the president tweeted about the boston red sox. he says has anyone noticed that the red sox all they have done is win since coming to the white house. [ laughter ] maria: the white house visit is becoming the opposite of being on the cover of sports illustrated, the president writes. by the way, the boston players were great guys, writes the president this morning. on the boston red sox. coming up, a dream job for a frat brat and frat bros, nati light's search for interns willing to drink cheap beer and get paid for it, next. ♪
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maria: welcome back. could be a tough day at the office this morning. take a look at futures, indicating a selloff of 300 plus points this morning. s&p futures down 38, nasdaq down 130 points this morning as investors react to uncertainty around china-u.s. trade dealings. china says it will retaliate after the president instituted 25% tariffs on $200 billion worth of chinese imports. we've got powerful rainstorms causing severed flooding in parts of the south as well.
cheryl casone on headlines now. cheryl: the louisiana and mississippi governors declaring states of emergency. hef you i have rains causing flash flooding in cities like nor cleans, inundating streets and stranding cars. houston also seeing widespread flooding after heavy rain there. thousands of homes and businesses losing power, dozens of flights have been canceled throughout the southeast. well, i-hop is catching heat for its mother's day promotion. the restaurant tweeted a son he sonogram image of a stack of pancakes inside a womb. this is what they wrote, if you have pancakes in your tom, tom doetumtum,does that make you a e mummum. this could be the dream job for college kids. getting paid to drink cheap beer. natural light or natty light as
it's called, i didn't know that until today, is looking to hire summer interns to drink beer for $40 an hour and there's a recruitment video. >> once hired our intern will have a pretty cool list of responsibilities including attending sporting events, gorilla marketing, traveling to cool places, and of course managing the natty light social channels, all the while recording a weekly blog of the awesomeness. cheryl: gorilla marketing in quotes there. if you need to apply, no need to send references, they say it's like going to work for your dad's accounting firm. you have until may 19th to apply. maria: what? drink beer for $40 an hour. cheryl: frat boys re. mariaboy rejoice.maria: that's. >> i'm sure the brothers of university of michigan will be lining up for that gig. >> you don't need a resume. >> how do you -- >> i don't know how you apply
without a resume. >> i think a case-off is in order to see which of the frat bros are left standing. maria: bitcoin soars like superman, we talk to dean kane about cri crypto's bounceback ad the best way to invest in it. back in a minute. ♪ doing everything i can. ♪ holding on to what you i can. ♪ because i'm a super man.
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pricing surging, back above $7,000. it's up nearly 90% since the beginning of the year. we look at the cryptocurrency platform life token which lets users give back while they spend money, know exactly where the money is going. joining us now is dean cain. great to see you. >> like i was saying before we came to air, i wish i bought bitcoin -- it's up 90%. i wish i bought at the beginning of this year. a friend of mine may have purchased it at the height. he's not happy about that. i think cryptocurrencies are here to stay. maria: you do? >> i do. i wish i invested early in bitcoin and i wish that i made all that money. maria: it seems like it makes sense to have a digital currency given where we're going and where we see where the leadership is in the economy in terms of technology. how do you know which one is going to be the leader? there are a lot of cryptos. >> there are a ton. one thing i love about life labs and life token, 30% of their
entire share, if you will, will go to charity. i think that's great and fantastic. it's the only cryptocurrency that does that. it's transparent. you know where it's going. they've done a lot of work already. that's what's going to make this, at this time in our world where everyone is concerned about that -- amazon has something similar to that. when you buy something from amazon, you want to donate to charity, you can click. i might have bought something on amazon yesterday. maria: very nice idea. >> looking at the notes here, dean, when you do give to charity, transparency is the issue. i think about humanitarian aid, something awful happens on the planet and people he throw money at it. no one knows where the money goes. does that help solve the problem? >> very much so. you hear how people are ripped off. they give money and there's fake things. life labs they're cognizant of that and they make sure where
your money goes -- you can see where it goes. there's no like someone took off with this money and didn't help haiti. you find out where it goes. maria: i like that. we wanted to have you on to talk about capitalism versus socialism. we're doing a special week on the topics. this week on fox business. you're an investor, you're an entrepreneur. tell us how you see things, because you were helped by the capitalism system. now you've got true capitalists questioning capitalism. >> i don't understand that at all. it blows my mind that we could even be having this conversation. the only reason we can have the conversation is because capitalism has done so well, people are like there's so much to go around and wonderful stuff for everybody. my son is 18 years old. he's a true capitalist. i don't think these people who are talking about socialism really know what it is. maria: that's what we said earlier. >> socialism is free healthcare, free housing, a job. maria: free college. >> free everything and i can stay at mom and dad's health
insurance until i'm 26. that's not what it is, not by any stretch of the imagination. ask people talking about socialism, what do they want to do for a living they give you an answer, and you say no, you have to be this instead. that's what socialism is. maria: bernie sanders, they're all stepping away from the name socialism. you have the socialist programs, it's a government take-over of industries. >> and it's actually, as you mentioned, it's the millennials, it's the kids that are sort of up and coming that support it that haven't really lived, haven't really experienced the system and as you said, dean, they look at this and they say it's great. i'm curious you mentioned your 18-year-old is entrepreneurial and he's a capitalist. how does he interact with his friends? what are they saying? what is it that they -- is sort of pushing them? they have votes. they count. it's an important part of the election. >> i don't think they have those conversations that often, to be honest. i think they're talking about silly little 18-year-old things. i don't really hear them going on and on about socialism.
my son didn't want to be -- didn't want to get a participation trophy. he wanted a championship. he's a je fighter. he goes on to fight to win an award, reward for his hard work. he works hard to get better and there's incentive. he wants to compete. that's what you get with capitalism. you get incentive. without that, when you talk socialism, there's no incentive. why do i want to work hard, no offense, for you to have -- i want to work hard so my family is taken care of, my son. that breeds invention and hard work. capitalism breeds hard work. you get what you earn. socialism, you get what you demand and how much can i take, how much can i fleece the system. maria: that's why people don't understand what it is. bernie sanders is down-playing the socialist label while on the campaign trail, almost taking advantage of people who don't understand it. >> he was recently attacking disney after the success of
avengers end game, saying you ought to that that money and essentially readies tribut read- redistribute it to other people in the company. your industry is not an accident that we have this enormous motion picture industry in the united states, it's not an accident that veins yeah la vent have one. i think that's what i wish mr. sanders would appreciate, is we have incentive to create the amazing films. whether you love avengers or not, but it's quite a creation. >> i don't want to get myself in trouble, but it was okay. maria: superman was better. >> you've taken risks in your life and from those risks you have rewards and that's the thing that socialism wipes. it wipes out the risk/reward. >> what was bernie sanders' job before he was a politician? he didn't have one. he has always been politically
connected. that works in socialism. maria: come back soon, please. tune into fox business thursday at 2:00 p.m. where we have a socialism versus capitalism town hall hosted by charles payne. we'll be back, right here. kevin kevin kevin kevin kevin kevin kevin kevin kevin kevin trusted advice for life. kevin, how's your mom? life well planned. see what a raymond james financial advisor can do for you. touch shows how we really feel. but does psoriasis ever get in the way? embrace the chance of 100% clear skin with taltz, the first and only treatment of its kind offering people with moderate to severe psoriasis a chance at 100% clear skin. with taltz, up to 90% of people quickly saw
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>> good monday morning. thanks so much for joining us. i'm maria bartiromo. monday, may 13 top stories right now 8:00 a.m. on the east coast, trade you turmoil on markets china threatening to retaliate, for tariff increases on goods 200 billion dollars of goods, 25% on friday, president trump tweeted china will be hurt badly if president xi does not make a deal. the rising today tensions impacting futures this morning we are expecting a decline start of trading, 350 points we are now at lows of the morning right here, as you see the dow futures down 349 that is one and a third percent s&p futures down 42 points one and a half percent nasdaq down 152 points right now that is 2% lower, on nasdaq, friday a
huge turnaround by the end of the day, in fact, the dow and nasdaq were lower, heading the dow had intra-day swing 549 points at close dow industrials up 114 points s&p was up 10 points nasdaq was up 6 the close on friday, in europe this morning, we are seeing the selling accelerate ft 100 down 10 cac claque down 33 dacs in germany down 108 in asia overnight we did have some u.s.-china trade fears impacting markets shanghai composite was down 1 1/4% weaker than expected auto sales out of china nikkei average down two-thirds of a percent the hang seng closed in hong kong for a holiday uber had a rough ride first debut second day of trading ride-sharing giant a she had bump after disappointing debut worsening down 5 2/3% right now, uber now 39 dollars and change. breaking up facebook calls to dismantle the social media
giant increasing with key democrats are saying about this idea, walmart target are quietly exploring a controversial product we tell you what the giants are reportedly looking to add coming up stories right here monday morning joining me to break it down fox business network jackie deangeles james freeman, pwc partner mitch roschelle. >> good morning china trade thing is wreaking about havoc. >> worsening right now 350 points even uber worsening sois when sentiment you sell first think later, and you might want to sell things that maybe your -- feeling like are not going to go up much more but i don't know, does uber getting caught in this spiral of -- of a sales -- sell-off? . >> yeah pressure obviously, some pressure in u.s. markets, more so in china, i think a question we've been talking about the president and his strategy, on the china side, you are seeing people at the margin moving to apply from
other countries, u.s. exports sorry i should say imports from china lately going down, imports from other countries rising, as president suggested, in a tweet people responded to tax substituting products from somewhere other than china. >> you think import from vietnam? >> elsewhere? >> if he can't get a deal one thing ought to think about reconstituteing some version of the trans-pacific partnership don't call it that i understand he said that was disaster one of the worst ever, but i think he wants to have freer trade with other countries if going to maintain tariffs with china. >> how do we get a detail with no talks on table no at a time for talks next opportunity to be end of june maybe at g20. >> that is true, that is being talked about maybe president xi and president trump can meet at g20 china, is inviting says inviting the u.s. officials to continue talking i don't know what that means you are right no date is set. we have a big show
conversation around that, of course, joining the conversation this morning former speaker of the house newt gingrich, this morning, connecticut senator -- united against nuclear iran chairman lieberman here stuart varney don't miss a moment a big hour kick hour off with u.s.-china trade investors watching trade sensations as beijing said will never surrender to outside pressure blake burman with the latest right now at the white house this morning, as usual good morning to you. reporter: good morning to you trade war continuing over weekend in into this morningt theh president trump warning some would even say threatening thing one point this morning, already in a host of tweets, the president saying that china should not retaliate, or else it will quote only get worse. >> among tweets from president today he writes quote i say openly to president xi all friends in china the china will be hurt very waddle if you don't make a deal badly because companies fovd to lever china for other countries too expensive to apply in china you had a great
deal almost completed, and you backed out. >> also says the tariffs have been good for growth here at home, writing the unspepdly good first quarter, 3.2% gdp was greatly helped by tariffs from china, some people just don't get it now over the weekend the president top economic adviser larry kudlow says they feel the economy won't bee too badly hurt from trade war said the administration will help out the farmers. >> i think this is a risk we should and can take, without damaging our economy, and any appreciable way, i will note as others have maybe this is part of your lightning round bullets, to have to burdens on farmer agricultusector we get t helped before loss exports i think thourgs 12 billion dollars will do it again if we've to if number show that up. >> maria the vice premier of china said when he gave
interview to chinese media there tr a few different conditions for a trade deal, one he said deal has to be bad secondly as well the purchases from china have to be he realistically to what demands of the markets are and he also said that the tariffs will have to go away. it is tougher to see when that happens, or if that could happen, any time soon. maria: i don't know that the president was even planning removing all tariffs at all, even with a deal. so we will see, blake thank you blake burman at the white house this morning stay on trade also turn to 2020 presidential election, president trump tweeted last night about former vice president joe biden said china dreej "sleepy joe" joe biden or any others get electing 2020 love ripping off america joining us former house speaker fox news contributor author of the new political thriller collusion newt gingrich with us good to see you mr. speaker thank you for joining us. >> is if i am glad to be with you. >> what do you think about that zha what this is about
you think china, figures maybe, they are days are numbered with donald trump and they could it with a it out? >> no, i think the chinese are costing -- frankly even if you i think trump is not getting reelected i personally think he is going to get reelected even if you thought he wasn't you are talking january 2021. their economy is not going to take battering trump can delive deliver if they rv to negotiate remember biggest customer has huge advantage in negotiations the other side needs the sale we don't need the sale the chinese do. and basic argument trump makes i agree with, is that we've had a very one-sided relationship, they have you'd intellectual property theft, they have taken enormous advantage they have a closed market. they don't allow many of our high-tech companies to compete. they subsidize in many cases,
and so the chinese are faced with a real cries, because we're telling them we are going to change the rules of the game, that have grow techsly favored you, they are saying we don't want to change the rules of the game, we like the fact they favor us, and that is what the core of this argument is, not anything complicated, the details are complex but the core principle is simply china got to be this big and this wealth because all the rules of the game favored them and we tolerated behavior that is intolerable when i -- the president said enough chinese have a big problem. >> newt look at markets the chinese have a big problem yeah i get that are we go of going a big problem is this going to cut into economic growth take away all benefits from tax cut plan look at our markets down 400 points right now. >> look, i think the market is responding psychologically, the undergo momentum of the american economy is fine, is going to accelerate.
and in fact, if we rebuild manufacturing as we have been under trump i think over 400,000 new manufacturing jobs we are going to end up substituting american products i tell you look at 5g huawei pursue chips in u.s. not produce chips in china a range of these issues where you may actually see bigger american economy, not a smaller one. and, again, i'm not a they are ethical free trader net was adam smith wrote the wealth of nations when why our advantage we ought to about open markets when not to our advantage we ought to have closed markets. >> speaker gingrich the president taking hard line with china unprecedented in many cases economists saying if any time to view this the negotiations play out even if it brings volatility to the stock market it is now because there is strength in this
economy. >> right. the truth is, the europeans are totally messed up with a system that doesn't work, and increasing pressure on europe, to fall apart as they are with great britain for xm the chinese aren't going to have a lot of alternative markets. and ultimately we can take a fight with china on economics a lot better than the chinese can take a fight with us. >> a uh-huh. >> their stock market will suffer worse i know this goes against the spirit of a daily show i apologize, i don't worry about ups and downs in the stock market. maria: right. >> i worry about long term patterns and long-term pattern right now fors u.s. is remarkable the truth as larry kudlow said we are engaging in a prosperity cycle, and every reason to believe it is going to continue and accelerate we may be the only country in the world that can withstand this pressure, because our domestic economy has been liberated
entrepreneurs are going a back to work. >> james freeman at "the wall street journal," i want to ask you about -- how do you get a deal with china we mentioned, liu negotiating vrn thinks reformer things asked for seemed fairly reasonable then we read paper has a story about china demanding that the deals of the trade agreement not be disclosed publicly. >> saying they don't want to legislate against intellectual property theft. i mean, obviously, some of these demands we can take more seriously than others. >> first of all, understand, the people's liberation army runs entire units designed to steal. i mean this is not some ran don behavior by three teenagers in beijing entire units people's liberation army
do nothing o full time except steal american intellectual property so you are asking, to undertake changes in behavior, that are excruciating the reject seen of the communist party chairman military commission president of china in that order. this is ultimately they are there are no moderates in china. maria: there i also a rule that no company can have any important big innovation before going to the military, first all innovations have to be used for military, that is the priority, so this is -- this is so much bigger than just trade. and i -- i agree with you, especially -- china is like building up, military bases across the world pb, setting up islands south china see military bases on those islands. >> well that is why i wrote a paper recently for members of congress.
maria: yeah. >> outlining, that the real wsh 5g huawei is the first worldwide struggleing with china, where they've had a very clever very intelligent strategy my hat off to them they are smart people we need to understand this is egg o going to be if a big, long term struggle they are not going to cave they are not going to suddenly turn around say ojee let us be nice people. >> see if it takes economic growth out of goods numbers the mueller report fallout president tweeted last night despite two years, millions of dollars spent, the democrats are acting like crazed lun it's the since results mule report made public they knew there was nothing before report started big hoax biggest american history on "sunday morning futures" yesterday exclusive interview with senator lindsey graham update on did he claying dominates related to steele dossier fisa abuse watch this. >> i don't know why did president hasn't done it yet,
he said that he will do it, he told me that, and others. do you expect him to do it i with a will we learn from those documents? >> well, i think you will learn that the fbi was on notice that christopher steal was not a reversibly informant when it came tro he was paid for by democratic party work product had not been vetted he was out to get trump they used the dossier anyway i think you are going to learn a hot how counterintelligence investigation opened up, papadopoulos working withruns they put it in his head that lurns stole clinton e-mails, all this will be coming sooner or later. >> so newt, your reaction? >> is a first of all, lindsey graham is doing a very good job chairman of the judiciary committee laying out right framework my view as a historian is simply, you had an attempted coup d'état from
obama about through attorney general to the fbi we're going to learn more and more how it was. >> thank you so much, we are just getting headlines china is issuing a statement on proposed tariffs going to raise tariffs on u.s. all the months in for you right after this. ♪ . >> $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade.
caused leg down in futures china is specifying details of retaliatory tariffs beijinging raising import tariffs on 60 billion dollars of u.s. goods, raising the rate from 5% to 25%, on more than 5,000 u.s. products, the increased tariffs take effect june 1 futures extended losses on this news beijing announcing last 10 minutes futures decline start of trade 5:1500 points 2% lower on dow s&p futures down 58 points also 2% the nasdaq down almost 3%, it is down 206 points right now 2.7% china plans to set import
tariffs against 60 billion dollars, of u.s. goods, this is likely going to impact the chinese economy, as well as the u.s. economy, it is clear, this is getting worse. with retaliatory tariffs uber a tough day on friday falling below the offering price in premarket trading this more than, it is down, again, deirdre bolton on the floor with uber now trading down 6.6% at 38 and change, after priced at 45 this is one story in a whole sea of red down there, how does it look? >> yeah, maria to your point we are watching uber trade lower in this premarket, it has the unfortunately distinction this company of basically having one of the worst ipo days ever on friday we knew this i noted down stats first day dollar loss u.s. history basically ever, so it looks like we are set up for that day two here, of course, a lot of investors concerned about the fact that while the company has sales does not yet have a profit,
that is a problem when you come to the public market, we are watching lyft trading lower as well, you will recall maria lyft going public towards end of march really casting this long shadow over uber's ipo even people say uber so mistimed coming public especially with all you have been discussing with guests about china, it is probably cause for delay uber billions of dollars walmart target not quite selling cbd oil based products yet but gearing up sources say for the day when they will, quietly meeting twraerlz of numerous products, and creams. >> thank you, over weekend china said, it will not be forced to swallow any bitter fruit chinese announced that they are going october raising tariffs on 60 billion dollars of u.s. goods market has taken another leg down, on this news, because this is going to cut into growth. >> yes, absolutely. i don't think you are being
impose tariffs on 60 billion dollars of u.s. goods, effective june 1, earlier president trump warned retaliation against tariffs will only make the situation worse certainly has made things worse in terms of of markets dow industrials right now down 500 points minute ago down 474 right now, s&p futures down 55 nasdaq down 195 points, that is 2 1/2%, joining us right now brandsy wine golder fixed about income portfolio manager jack
mcintyre stocks sl people buy treasuries should have treasuries in asset allocation probable time to be adding to that now that china is sort of retaliating, a matter of time until trump sends out a tweet saying we are going to escalate it or something to that effect, so, yeah, you need something that is port in the storm u.s. treasurys sort of that role. >> do you think yields stay where they are expectation on yields. >> i have been establish on treasurys before escalation of trade traced i think inflation will stay low i expect 10 year treasurer yields lower to that 210 area. >> 210. >> yeah. >> i am a big believer in disinflationary influences versus cyclical where is inflation wages moving higher something preventing that from heading into inflation. >> if it goes to 210 two year at 20 does it invert will invert. >> for different reasons. >> because flat inverted
because of inflation expectations are so anchored, i am not sure the growth scare that normally is embedded in a curve. >> you think next move from fed a cut. >> i do, i think we are seeing now, is going to escalate i know everybody talking about the china in worse shape than u.s. in terms of these strayed escalation remember other things tighten financial conditions if u.s. equities continue to sell off a huge amount of wealth tried up in equities tightening financial conditions if dollar rallies safe haven currency that is tightening of financial conditions pointing towards reason to own u.s. treasurys. >> if more people treasury players buyers think fed is going to go cut does that start to lower short-term rates below 2. >> it could but i think the bar if very high for the fed to cut right now just -- i didn't think so until the last
from powell talked about inflation sort of being transitory i think tells us bar has to be high even to cut or tighten rates. >> the -- u.s. currency rising china falling so maybe consumers are going to notice these tariffs after producers? >> yeah i think gobing a bit interesting right if companies are able to pass on the higher tariffs a tax on consumer, but if the dollar strengths maybe going to help offset, some rise, in price, but going to be interesting this administration, does not want a strong dollar, i mean the trading negotiations, they are bringing currency into play so again going to see uncertainty here for a while. >> you come into work see is a market down 500 points what do you do? >> i am going to stand pat going i don't want to be reactionary this is environment headlined riv good
or bad i was surprised last week equities radical off lows monday and friday i think we need to do more downside in terms of where price action goes, so we are going to sit here and watch, and you know we just added treasurys recently going to kind of sort of ride this out maria: we will be riding out as well, thank you so much jack mcintyre from brandy wine breaking news futures tanking this morning, on new information that china will place retaliatory tariffs on 60 billion dollars u.s. goods into china market down 471 points on dow right now next we look at iran he former connecticut senator joe lieberman will weigh in on china and iran among other places. back in a minute. . >>
tariffs 60 billion dollars u.s. goods in effect june 1 from 5% to 25%, futures have extended losses on news take a look futures indicating a decline start of trading 460 points on dow industrials, s&p down 53 nasdaq futures down 188 points, 2 1/2% joining me is former connecticut senator former democratic vice president candidate great to have you thank you for joining us way about the to get to iran let's start with china, they said that they would retaliate they are retaliating what is your reaction, to this how big of an issue is this gotten for u.s. economy. >> well this is predictabling not just typically trade negotiations, president trump has decided to challenge some of the policies of china and not just on the tariffs, but really more importantly i think to the administration, and to u.s., is the so-called
structural economic policies government supports industries demand earn mens doing business give technologies to chinese government so we are into a if not a trade war certainly trade tit-for-tat, that hurts both economies it will begin to affect the markets, but both economies frankly, are strong including ours, which is at high point right now. so we can take it. but it we should not let it go on too long. >> how do you stop it when you look at things that chinese pulled out on or backtracked out of, things like forcing transfer of technology, things like, you know, putting into law that it is against the law to steal intellectual property they don't want to go that extra step making it a law that is cultural thing as i said a long time how do you o motive t move the needle on that i
think we got to move the needle saying to them policies they have been following for decades now, no longer fit them they are a mature economy they are the second aggravagrea economy in the world after ours if they continue to procure these policies is is going to turt them economically america is not going to apply their is to have we're not going to sell there, that is not good for them we will really intertwined with them here is the problem. a lot of this comes down to people, leaders, president trump president xi. for both in their own interest to have an agreement because the continuation of this trade war between u.s. and china, can cause problems for both economies. on the other hand neither one of them wants to look like they lost their the competition. >> they are going to save face. >> they got to both to save
face will figure out a way to do that really that is in their mutual interest and i would say this the chinese have to begin to step back on so, so called structural policies that are just not fair anymore. >> not even just a business situation this is also about military, i mentioned, something earlier, that i had heard yesterday on my sunday morning program, civil military fusion this is basically a rule in china, whereas if you are innovator technology company with new idea, before going forward with it you have to first check with the military in china, to see if the military needs that technology, that is their priority not just about being he bigger than united states, in terms of people, of course, they are 1.4 billion people but being number one in many of the important industries that u.s. wants to be number one in so they are right there competing with us on so many levels even militarily. >>ive not heard of civil
military fusion not impossible it is -- they have a controlled economy the government replies a large role in it. and their military the people's liberation army, is a business, too it runs businesses, it is like, the -- irgc i am iran unlike our defense department doesn't run businesses, so it -- it is truly human history when new technologies are created, they tend to be when they can be used for military purposes. >> makes perfect sense. >> civil military fusion idea, turns it upside down, but let me go to your larger point, china is a -- it is not a communist company in old-fashioned away anymore but still a country in which the government plays a large role they have dominant they have plans government investors they want to about fires in 5g technology they want to be first in pharma in the future,
so they are going to be competitors i think what trade negotiations are really saying is okay. let's compete. u.s. and china. but you got to play by some rules everybody else plays by. >> there is no rules in terms of espionage they have got huawei telecom throughout the world, obviously, they are sending information data back to china, whether they are in countries in africa, or countries in europe, so this is a lot bigger than just a trade sayings we have been talking about, you mentioned iran i want to talk about pressure on iran u.s. air force says b-52 bombers have den deployed to the middle east as message to iran. this comes as u.s. announced no longer extending waivers to countries doing any business with iran, 8 countries now losing that opportunity. joe you are out with new op-ed former u.n. ambassador mark wallace on foxnews.com titled this trump should toughen sanctions on iran in it you write, to truly achieve maximum pressure on regime president trump needs to make sanctions airtight across
iran's economy this means, plugging the gaps on other critical pillar of iran's energy export dependent economy petro chemicals tell us more. >> okay. so the main point of the op-ed in the fox news web site but also generally my feeling united against nuclear iran, thank you to trump administration, thanks to president trump he had the guts to take us out of a bad nuclear agreement with iran. that is the beginning. big change. second, he imposed sanctions on iranian revolutionary guard increased sanctions iran hurting has begun to threaten us i appreciate very much that president is basically said with action sending american military focuses over to the region don't think you are going to strike at us and not
have us strike back at you. so now you've got the iranian government last few days, saying, one president rouhani says this is going to beive to on our people going october like iran-iraq war in 80s conditions were miss rabl in iran that shows you how seriously we are hurting in iranian government, really has a choice, either they are going to come back to the table and negotiate, a good nuclear agreement, and stop supporting terrorism, or i think they are going to face an uprising by their own people the possibility of a regime change. and in my opinion would be best of all. maria: where do we go now secretary of state mike pompeo is on his way there now making a stop in brussels to talk about this threat from iran how do you see this playing out the? >> well, i think we had to told tough we are holding tough irrain yans on defensive
your crain allies russians chinese who signed that iran nuclear agreement are complaining that we've -- come out of it, but i think in this one with iran, we've got the -- you might say momentum on our side, this is not going to be yaez easy not without risk we changed reality on the ground i think we got to stick with where we are the russians will always we've got to understand try to take advantage of every situation to our deathmetriment not our allies secretary pompeo talks directly with president putin next couple of days are really important. >> what should be said during that meeting? >> well i think in -- i have enough confidence in mike pompeo to believe he will say this to say that we have decided that that iran nuclear
agreement is dead. and nobody is going to bring it back, and if iranians our enemy supporters of terrorism, supporting aggression through the the middle east they are threatening us, long term, that russia better understand that this we have decided this is a priority national interest, in my opinion it is the most significant threat iran constitutes most significant threat to u.s. there is in the world and, therefore, really the basically say to president putin stay out of this! now he is tooan come into it in a calculating way to keep iran going. maria: apparently even came into it on venezuela, right? >> way out of his part of the world. maria: exactly there is a story today large but it is to be expected, that some oil tanks rs two owned by saudi arabia were victims of
sabotage over the weekend although iranians put out a diversionary statement pretty clear they are suspect number one we are in a major conflict in the middle east between iran one side and our allies saudi arabia emirates egypt et cetera, israel on the other side we've got to stick al alize against enemies. >> do we have a he coalition against any of this you locate at partners in europe for example, do they get the iran threat, and what about the china threat? because i know that when secretary of state mike pompeo came back from poland a couple months ago he was trying to explain to the european countries our friend, not to use huawei telecom they have already paid for it already you know put huawei entrepreneur in place, but pompeo was basically saying look if you have huawei kel tom we need to share less with you not sharing as much information, do we have the coalition across the world. >> it is not the same as it used to be not the same as it was let's say cold war with
russia when we were clearly on the side of -- of the europeans and we were on same side western europeans. part of it china is intertwined with world economy in a way soviet union never was, if i am not mistaken, china actually does more trade with european union than it does with us today. and, therefore, we got to stand tough with allies and say to them basically you can't always do what may bring a few more euros, this is our security, on the line we've got to stand together, so far we've had an effect on their relations european relations with china their basically trying to walk a neuro line in some ways between us and china or a closer to us that is one of the great tests that is why, the -- the strength and
persistence of trump administration including secretary pompeo john bolton really important in months ahead. >> facing another test as chinese have announced, that they will increase tariffs on 60 billion dollars worth of goods, beginning june 1. senator it is good to see you. you, too, maria. >> thank you so much chair lieberman joining us the markets deteriorated further on breaking news chinese will pull the in place, 60 billion dollars, of new tariff on 60 billion dollars worth of goods coming from u.s. into china, that tariff applies 25% dow futures down better than 500 points on retaliatory tariffs coming out of china stuart varney will weigh in when we come right back. stay with us. >>
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maria: futures extended losses this morning, china has announced it will officially retaliate on tariffs beijing imposing tariffs on 60 billion dollars worth of goods, and go into effect on june 1, markets are down 486 points on dow right now we are watching uber as well, second day of trading this morning after disaster friday broke issue price down another 5% right now. as you see 6 1/2% lower uber joining me host of "varney & company" stuart varney to weigh in all above looks like a tough day at the -- ofs this morning stu. >> i think you can say that for sure maria. i am wondering is uber being swept down in the general down market that we've got today because of china trade? or is it special problems to
uber and lyft are surfacing after public introduction last friday? i see uber on the screen now 38 dollars a share went out 45 on friday. with a private valuations, put on company before they went public? were they too high? were they so high because of a scramble from general investors want to get in on ground floor something new bid up bid it up to he evaluation about 120 billion one stage that was clearly too high a private valuation, because they are below 70 billion, and as for lyft they suffer from same problems, very high private valuation and then not making any money, and hard to see how they are going to make money, i am troubled by all this because i really like these two companies. what they are doing, in the marketplace of transportation. but unless they come up with a definite path to profitability
in the future i think theory getting off a hard time recovering from where they are now and other new tech companies coming to market this year will have also a very hard time when is unicorns not a dot.com when it makes serious money. >> your comments about path to go profitability important uber lost 1 poinl 8 billion dollars in ebitda last year growth investors buy into it if think see that path we don't see that path to kt profitability. >> i would like to see it i lover technology lover the company but not going to invest until i see profit. >> bigger issue china i know you have a lot more 10 minutes see you top of the hour "varney & company" every day 9:00 a.m. eastern after "mornings with maria" don't miss stuart we have breaking news that we are covering this morning, the dow plummeting more than 500 points a moment ago, on news china issuing retaliatory tariffs on 60 billion dollars worth u.s. goods into china we are taking
losses this morning we are looking at decline start of trading, 516 points, after beijing announced it will impose tariffs on 60 billion dollars worth of goods new increases tariffs go into effect june 1, markets took another leg down, as you can see, james freeman, many of the companies that are delectibling impacted by this trading down sharply this morning. boeing jets one of the most important exports u.s. has into china caterpillar same apple iphone stocks trading down on idea that the products are about to get much more expensive. >> this is sands in the gears of commerce so more expensive for consumers obviously, more expensive for producers as
they apply components now as they sell into china, so the president saying that this is helping the economy, is -- long term we know higher tariffs add costs reduce investment reduce incomes the question is will this work as leverage to force the better deal we want. >> yeah because president has another whole 300 billion 350 billion dollars worth of goods, that he has threatened, could see a tariff as well so far, that he hasn't touched. >> but that is counterpunch right waiting to see what china would do now they have got it so next step we watch for. >> already said, i think last week mitch, that the plans are in place we have begun looking at this. >> it will be about everything we import from china will be subject to tariff amount. >> nancy lazar from cornerstone says taking 2/10 of a percent out of american economy does that jive with what you are thinking.
>> the question short term long term long term, yes, in short term actually -- the trade war has been positive for gdp growth, that is short term number not a long term number. >> quick break when we come back we are digesting news of china retaliatory tariffs watching markets fall out of bed down 495 points on the dow. more in a minute. >> okay, i picked out my dream car.
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hurts us. i think the big question is how long xi jinping can hold the hard line. maria: good point. china's economy is going to worsen. >> it's definitely going to get worse in terms of the market before it gets better. maria: we will leave it there. thank you all. great show. have a great day. go seize that day. "varney & company" begins right now. stuart, take it away. stuart: i will try to seize it. maria: tough day to do so. stuart: good morning, maria. good morning, everyone. late-breaking news on trade is not going down well on wall street. reportedly china will impose tariffs on $60 billion worth of u.s. products. this is their retaliation for america's imposition of tariffs on chinese goods last friday. there is no firm date for resumption of talks. it is a stalemate. it is a standoff. stocks down all across the board. last week was the worst week for stocks this year and it's red all over again this monday morning. the dow will drop over 500 points. the s&p's going to be dow