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tv   Mornings With Maria Bartiromo  FOX Business  November 13, 2017 6:00am-9:00am EST

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assets. geri: we are watching. thank you so much. nearly time here for mornings with her reappears do we say good morning to you, maria maria bartiromo. "mornings with maria" starts right now. >> good morning, everybody. happy morning tea. it is monday, november 14th -- 13th. major steps forward. in manila this morning. the final stop on his tour throughout asia. commander-in-chief took the opportunity on trade deals in the region. >> we also seek economic partnership on fairness and reciprocity. the united states and fair election on november 8th has been moving ahead really brilliantly on an economic assets. companies moving to the united states. they want to be there. that bodes very well for your
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region. maria: president trumbull make a major trade announcement from the white house this wednesday following his return to washington. meanwhile, knowledge blitz on capitol hill. debate in full swing as republicans push to get tax reform finished by the end of the year. dear congressman peter king told me he will vote no on this legislation. >> they are hard-working, middle and upper middle income people. the family may be making $400 million. they broke in her neck for the last 20 years. they are not hedge fund people. i'm not going to vote for that. maria: the quest for a deal on organ hatches plan to introduce amendments to change 401(k) contributions. general electric taking the stage in the spotlight this morning. the company said to hold an investor day in new york today look at the stock at $20.79 a share. among the top questions today.
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will ge keep its dividend or cut it? what to expect out of a possible dividend cut this afternoon. features indicate a lower opening for broader averages after another record a week last week. such a pullback 30 points at nasdaq, s&p 500 negative. major indices look like this and began looking at largely some pressure on stocks with the exception of the ft this morning up 10 points. the cac and the dax lower. asia overnight mixed with the shanghai composite up half of a percent but the nikkei average down one and a 3%. uber bored hasek asks her way for a multibillion dollars investment by softbank. what it means for the future of the most valuables are dead. new england pitchers made a mockery of the denver broncos last night but he was on players new to honor his navy family member that stole the show. highlights from mile high this
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morning. joining me to talk all about it, ms. lansky partner lee carter is here. kellyanne company partner and rose qwest ceo of managing partner, great to see you. happy monday. >> i took a little personal offense to the denver broncos comment. it's really tough to beat the patriots have been on a roll and are the defending champs, but whatever. he focused on the thriller in manila. >> we talk about donald trump's wardrobe. >> script when he's reading these deals. trade to host a trip overall? >> it is really a great trip. so many moments. the president was forming strong relationships across the board. again, you would take away from it what you want to take away from it. if you don't like the president he will focus on his trees, kim
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jong un. if you do like the president, the focus on effective seemed like he was strong on china. some of the announcement he will make trade deals and we will on one day when he announces what he's going to announce about trade. maria: they're talking about about this morning anticipated not. former special assistant, president trump and former press secretary to vice president pence, with us this morning. former ambassador to the u.n., his assessment of fox news judicial analyst judge andrew napolitano is here. plus president about ms. economic council of the risers, jason furman will join us as well. big program ahead. you don't want to miss a moment. president trump says he will be delivering a major statement on trade at north korea when he returns to washington later in the week following the asia trip you'll make the announcement wednesday. the president sees the announcement wednesday in manila with prime ministers from japan and australia.
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watch. present will be announcing for the most part in a statement from the white house as opposed to the probably do that on one day. we've made some very big, further than anything you know. in addition to 300 billion sales including china that was 250 billion in going up very substantially from now. we've made a lot of good progress today. almost everybody, those deficits will be met very quickly and very substantially. maria: so overall, it pretty good successful trip. lee, you think so. >> i think there's no question, especially talking to republican and independent voters. they really feel this is a very important trip coming in delivering on the america first agenda that he went over there and did have strong conversations about trade.
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a lot of folks encouraged a fielder's progress and how they are diplomatic relationships and strong handling of north korea and they are hopeful about china and japan. on the other hand when you look at how democrats are responding, they are very critical saying he didn't come up strong enough when he was in vietnam on human rights. other issues that can help it didn't happen rather than what did happen. his agenda when he was going over there was trade in north korea and he never said anything else. he did deliver. >> i think a bipartisan issue really is north korea and whatever side of the aisle you're on, that's a major threat to us. it's great the way he teamed up with allies in the region to show some force to north korea. if you can solve that problem or at least put the issue to bed, it makes things back home a lot easier. trade your absolutely right. meanwhile back on the massive push to tax reform.
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the president said that, my advisers use a home, make sure to push this agenda cabin. you've got house republicans voted on their package this week in senate republicans beginning a markup of their tax bill. fox business is now learned orrin hatch plans to introduce amendments to the bill this week that would change 401(k) and ira classification despite the differences between the bills from a director president kerry called told me yesterday in an extended interview he's confident to have the votes and they will get this done. watch. >> the full house will start debating their version of the tax bill this week. the senate will be an committee for the entire week. we think by the time they leave by friday and go home for thanksgiving, we will have the bill out of the senate. so hopefully by the time we can do thanksgiving recess, we will have the tax bill completely out of the house and through the senate finance committee. trade to a couple differences like for example of that 20% corporate tax rate for one year.
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what he thinks space? what goes? when you put these two bills together, the house and senate. democrats up to the conference committee. this is the normal way bills are legislated in the house and senate. the house has their version. the senate has their version. they will both get through a final version will probably end up at the conference committee and those competencies will decide what stays and what goes, pick and choose a different part they think are important in the pics didn't come up with a compromise bill that will go back to both chambers in both chambers will vote on the exact same bill msi wind up with the tax law. tray to let me get down and dirty on the details because you got $1.5 billion agreed upon in the budget to spend on tax cuts. 1.5 trillion. $900 billion of the business cuts. so is it fair to say that you are raising taxes on people like me, people like you and millions of others in new york, new
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jersey, california is a way to pay for a 20% are appropriate? >> what people are missing is where the trillion and a half dollars net. within this bill, was hidden in this bill, not really hidden, you have to go through and do the math is over $555 trillion worth of tax cuts and then there's over $3 billion worth of baserunners. so there's a lot of moving pieces within the bill to get to the trillion and a half dollars. so you have to look at the ability in its entirety. you can't just say that x or y. it's a combination of everything they get this to the trillion and a half. try to understand not because the corporate readable impact everybody. the elimination of the amt you hope a lot of people. the fact remains when you eliminate the state and local income tax deduction i am getting a tax increase. if you're in new york you're getting a tax increase.
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you are raising taxes on some people to pay for corporate tax cut. >> remember what our object device. the president had two main object is. number one, middle income americans deserve a tax cut. they deserve to keep more of their hard-earned income. both bills do that. number two, we lowered the business tax rate for corporate and we lowered for pastors, small and medium-sized businesses in america. we need to do that because we're not competitive competitive with the rest of the world. >> so there you go. a corporate tax cut. that's the bulk of the plan, kevin. people will see higher taxes. >> unequivocally. did mention that reputedly, especially when it comes to small and medium-sized businesses. you can see that when he was mentioning it in your clip. one of things fascinating about the interview is we need this corporate tax-cut to also
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increase pressure because companies will start spending more money, more people, equipment, you name it they will go out and spend the money and that will help boost the economy past 3% gdp level for two quarters in a row. that's the narrative they will stick on and then they will try to address would have been an 81, and then again in 86 when they were redoing not. orin hatch situation is a great situation and on the dividend side. dividends are double tax, so companies pay taxes and give it back to you when you pay taxes on dividend, so this is a great thing i think is addressing which is the retirement crisis that we are having in america because the average baby boomers turning 65 next year. maria: do you agree he should be the key moves on 401(k)s? if they can where he or she nuts about this.
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>> so what he's doing is increasing the limit for 8000 in addition to the 16,000 people over age 5032 from $8000 to $9000 good the problem is they are going to have to pay taxes then it's going to be a roth contribution. whatever they gave us tax free. this is a very positive development. >> long-term or people that are having pretax dollars? >> i think it's better they are not taxed on the earnings they are getting. 10,000 in turn to 30,000. they are not paying taxes could >> lower tax rate when they retire. i'd rather take my money now. >> they are tax-free. you very pay taxes on them. he's making you pay taxes up front so you don't have to pay taxes on the backend. you will not have to pay taxes on those gains unless the new congress loses their mind. train to your thoughts on this
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plan. >> i think it's really sticking it on the state level to new york that i completely agree on the biggest tax cut that will boost the economy. it will help small businesses. >> at a summit backing of tax states. >> you mentioned in your interview the people in new york are really going to get it stuck to them because they have to pay them they can get a deduction on that. double impact people in new york and california. >> will pay taxes in new york. there's a lot of people that don't meet certain thresholds in new york that don't pay. >> this is going to put pressure on blue states to figure out what they're going to be and what they're going to do about it. more and more people and i think it's important and not a bad thing is for states to reconsider their plan. traders weigh down peoples is going to see an exodus for low
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tax states. we will talk more about that coming up. watching ge. investors bracing as john flannery outlines his vision to get the company back on track in an investor meeting today. greenlight for over reaching an agreement for a multibillion dollars investment. softbank investing. but that means waiting investors. back in a moment right here. alerts -- wouldn't you like one from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. and i'm the founder of ugmonk. before shipstation it was crazy. it's great when you see a hundred orders come in, a hundred orders come in, but then you realize i've got a hundred orders i have to ship out. shipstation streamlined that wh the order data, the weights of , everything is seamlessly
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maria: welcome back their powerful earthquake striking the iraq iran border. lauren simonetti with the details. >> at morning pre-330 people killed in parts of iraq and iran after a major earthquake hit rate near the border of the two countries. many fear the death toll could rise as the rescuers continue to search for a bit answer might be trapped under the rubble. 723 magnitude quake injured more than 1700 people. uber clearing the way for a massive investment from softbank after former ceo travis kalanick and major investor benchmark reached an agreement over control. softbank trying to keep at least a 14% pace in uber. the investment and total $10 billion. major takeover battle had been the u.s. industry. sources telling readers qualcomm
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plans to reject rival $103 billion takeover offer as early as today. they apparently think the $70 bought my money and that does not reflect uncertainty over whether they would get regulatory approval. he's willing to launch a takeover battle if you take a look at the shares qualcomm is down 1% this year. pride comes surging almost 50%. in sports, the lots for super bowls have featured over two teams. the denver broncos and the new england patriots last night and the patriots showed was boss. jan lewis returns to kick off 103 yards for a touchdown and a 14-3 lead. ignite for tom brady with 266 yards including a trio of touchdown passes who says their winning streak took five teams beating the broncos final score
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41-15. meanwhile, broncos defended does it today and runs out of the tunnel before the sunday night game against the patriots with his brother-in-law the u.s. navy chief petty officer. he's been outspoken about players standing for the national anthem. we did see three players mail yesterday. look at a show of patriotism. >> that's nice. veterans day weekend. >> in fact, turn on a couple of games this weekend to say what they really do it on veterans weekend in a couple of them did it. they on their knee. >> it was started by the seattle seahawks were everybody stood and you had some of the most vocal people taking any of the seattle seahawks said that they stood for the military so i was really disappointed some of the other players decided to go against date because the seattle seahawks players said the reason they stood for the national anthem is because bits of the
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military, want to honor the military. this was never about the military to vent even though colin kaepernick said it was about the flag. this was a weekend to unite behind their issues. >> at this point, what do you think they want? why do they keep kneeling? >> i think it has just become the cool thing to do. my daughter's new york state volleyball championship game on the other team melt during the national anthem. >> about what they're doing? >> i would argue it's the cool thing to do. >> i think a lot of people think it's an antitrust protest. i think that's unfortunate because if the intention was to raise awareness for black lives matter what people felt about the police force, they lost the narrative and the people need to reevaluate what it is they are saying. your message has to be clear and it's got to be a call to action and this just isn't doing that. maria: grade-point.
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the senate in the house version of tax aforementioned closer to the final stage. investors worried about a bill. when the markets are trading down at the tax bill gets close. barbie's new home, house borough reportedly offering to take over mattel. we will have the details next. i accept i don't conquer
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maria: welcome back. features indicating averages. dow industrials down 50 points. a lot of the morning. markets edged lower as investors watching tax reform out of washington to the senate beginning its mark about the tax plan released today. the house hoping its vote on it own version of the plan have been spared the end of the week. joining us to weigh and the strategists have dean hackman. good to see a.
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thanks for joining us. what's going on with markets here? talking about in reaction was all of a sudden we get close to the actual formation in markets have been trading down. peanut oil, we we think there will be volatility. certain aspects of both versions come in the house the senate bill that are very controversial here in new york you are being impacted by taking away and that could lead to as much as tax or for new york city residents of 17%. that's pretty punitive. you know, we think there's some volatility for the market to wrap their arms around both of these bills. also some provisions to delay the enactment of the corporate tax rate. that could create volatility is low, maria. >> you bring up volatility. one thing we haven't seen. it's been a slow steady climb and if we talked back in march or april and said we are discussing a tax bill in november, we would've called
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that markets will have a major crash event, yet here we are. i would argue corporate earnings have been strong enough to hold us here. not necessarily the next leg up, but double this year until we get news on the. >> i do agree. what we are seen as a 10% earnings bump in 2017. we expect the we expect attacks are from another 10% increase in earnings in 2018. i think you are right about all of that. some of the more extended parts of the market like technology, for example, which is the number one performing sector this year as a little bit of a pullback in it, but outside of that we see other sectors such as energy, for example, one of the most underrated stories here is brad has got up over $64, approaching 57. we think if you get a lift out of energy, which is indicating stronger economic growth,
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certainly earnings could really propel the market higher. >> one of the biggest overhangs we see next month the federal reserve possibly raise rates one more time. i'm looking at the two-year treasury. it is at its highest levels we've seen since 2008. would you make of this rising interest rate interest rate environment where should people go? >> a lot of people focus on the two to 10 year to 10 that has merit, but look at the spread between the five between the five and 10 year really comprised only about 35 basis points differential bear. that is all signed its long economic growth is strong. we expect the fed to raise rates in 2017 in december. we also think they will raise at least twice as many as three times in 2018. we think that is the wild card if they raise as many as three times and get a little concerned about that. >> last week alan alan greenspan
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during dusk and the reserve chairman asked us if the reform plans would move the needle and economic growth. what happens next? here's what he had to say. >> the federal debt is rising at a very rapid pace than there is nothing in this bill which will essentially stop that from happening. so, my view is width premature fiscal stimulus, whether it's tax cuts or expenditure increases. >> interesting you would say expenditure increases. that's why they wanted to a corporate rate cut so businesses are spending more money on expenditures. >> well, if anyone knows about expanding economy and getting too, alan greenspan would. we think that going forward the corporate tax reform is critical. we wouldn't be surprised if the race had of said 25% versus 20%.
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we think that's going to lead to the bill passing. >> 20% was his redline. >> you did it although he also said he's willing to make deals. the american people would be okay if he saw compromise happening. the american people are starting to get confused because there's so many different things people are focusing in on. mortgage deduction, what does this mean for me personally? i'm curious what you think the most important thing the american people are investors look at in this whole bill. >> they all look at their own individual situation and here in new york is different from what we will ask you in the midwest. homeownership is something that's interesting and i think taking away the mortgage interest deduction is a big issue for a lot of people across the country. maria: for sure a major topic of discussion. do still like equities? >> was still at equities. maria: we will leave it there.
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thanks so much. dan hackman. former vice president joe biden says he is unsure about a 2020 run for president. but is he really what the future of the party needs and wants today? plus come in the international station getting a various national delivery. ice cream pizza in space. back in a minute. . . ♪
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market-moving breaking move. general electric cutting dividend by 50%. the stock is moving but trading up in this early going. we will see how this impacts the stock going forward and if the entire market trades down. ge cutting dividend by 50%. kevin kelly, you expected them to cut -- >> yeah, people were worried about this. they are currently having a crisis specially with unfunded liabilities. they are trying to divest assets. one of the things to take to note and why they are cutting, they had a high yield to begin with. the market was anticipating that they wing going to have to cut the yield. the stock has been down 30% this year. they can focus on the future and divesting those assets. let's see how this actually trades out throughout the rest of the day. >> usually big huge blue chip
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stocks, this is a 50% cut. i doubt -- i don't believe that the market was pricing this in. maria: i don't think so. mike: i think it open it is door to more negative news on ge, why they had to cut it this much. maria: it was not price into the market. i think people were 50/50 on this. kevin: the interesting aspect is they are cutting by 50% because they have only cut it twice before in the future of the history of the company, the great depression and great recession, this is a company issue why they are cutting it. they are not going to blame it on macro concerns. cut it by a big percent, so you don't have to do it and you can focus on the future. that's why they choose 50%. maria: this would have been a huge story for mom and pop just a year ago. you know, ge has been the company that you just put your money in like a pension and you
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forget about it and here you have the company cutting dividend by 50%. >> yeah, ge has to look at the narrative that they're going to tell. this isn't just about the stock price but who they are as a company and it used to be one of the big-respected companies. the question is this going to be a company for the future. maria: yeah. >> the top 100, very few of them have made it past the 50-year mark. this is one of the companies that you to wonder, are they going to continue to be a leader. maria: they want to focus on the three businesses, largest businesses at their investor day-to-day, aviation, health care and power. mike: ge grew up by acquisition, now they are breaking that apart. they want to focus on three main areas. i would look to shareholders in ge. nelson phelps.
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say what you want about him. he will be in the board meetings. ge will come back better off but right now my feeling on the open for the stock is that we haven't seen -- kevin: ceo's exact comments, he said with this action we will be discussing we are acting with urgency to make ge simpler. obviously they are going to keep pit. maria: the dow 30 when they created the dow 30. does ge stay in the dow? kevin: i think it could. the issue is what's going to happen next year. and so we are seeing analysts across the street saying some of the parts of the business they have is between 11 or $15, possibly 18 to $20. the market has already adjusted for where ge should be and now time to execute on their new capital allocation program that
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they are talking about and if we read through semen's earnings it's getting headways. maria: good point. the right decision to align dividend payout to cash flow generation. obviously the cash flow generation is a lot lower today than it was just three years ago given the sales of some key divisions, gerri willis telling the story. >> that's right, maria, something of a desperation move by john felonry who -- flannery who has been in the role for about three months. biggest drop in earnings in 17 years, 50% dividend cut. this impacts individual investors out there, people who have been standing fbi company for a long time despite problems, individual investors have held to ge for a long time. they will sell majority stake in
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baker hughes. the presentation released at 8:30. premarket call to institutional investors, we will have to wait and see what kind of broader impacts this might have, but obviously this stock a bell weather, a company that many of us have followed for years and you've got to think that the reason they are doing this, maria, at the end of the day is to fund the turnaround that they are talking about and this would be the second turnaround in just eight years, strategic turn around. we will see if it actually workses. >> it's certainly a much smaller company than it was, mike. mike: he wants to align the dividend with the cash flow generated. an easier move for new ceo than old ceo. we are no longer borrowing money to pay dividend. here where it is. the dividend roughly town 2 and
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a half percent. still in line with a lot of dow stocks. >> seventh largest dividend payer in the dow. maria: wow. kevin: as of last dividend issuance but the stock has come down and yielding 4.7% before this cut, so now -- if you look at the s&p 500 yields 9.5%. it almost doubles. they are going to market rate. people cannot be solely focused on the dividend with the pane because they do have a lot of liability, specially when it comes to ge capital, pension liabilities, they are extremely leveraged, this is a good thing. >> we had someone tell us in earlier hour here that actually there were worries -- when you compared the debt of this company, it's just out of control, so lots of concerns about ge right now. maria: and we will wait for that investor but the news is out at this point, they will focus on the three main divisions,
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aviation, health care and power and the management team right now is saying that they're acting with urgency to making ge simpler and smaller and that's what they've been doing in terms of all the sales of assets. mike: if you look at stock performance it's been abysmal but if you look at other names, they've had huge moves. move that needed some sort of a change. kevin: they are getting rid of baker hughes investment. they recently made that. they came in at the wrong time when that happened so you have seen that they haven't been making the best business decisions, for them to get simpler to focus on some core division, that's going to be better for them. >> this gives them money to fund that turnaround if they can make it. maria: they have been focused on energy, that was jim immelt's baby, energy, that was what was
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behind baker hughes investment. john flannery, new ceo has a new goal here. >> new goal and possibly new investors because a lot of individual investors may not be happy with this move. maria: nelson, you have to give him credit, been able to move gigantic moves -- i'm talking about dow chemical and now general electric. >> if you look at his track record, not his first rodeo. he's done this before, if you look at results, he usually comes out on top. kevin: he's down 35% low this year on ge. [laughter] maria: he's been trying to push management now for over two years -- kevin: dan is in honeywell and he's done well on that. in this industrial space specially in a rising interest rate environment, i would stick with the winners than the losers. maria: that's right. this is a large industrial
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company but not as large as it was. it's just fascinate to go me to look at ge today and the different company that you're talking about aviation health care and power versus what it was just five years ago which was a gigantic industrial, they had media, so ge -- >> more layoffs. they didn't say the number but we are expecting even more people to lose their jobs. maria: what do you make of the stock reaction up 1 and a quarter percent this morning. kevin: you mentioned the three divisions they are focused on, they are not the leaders, if it's aerospace it's definitely boeing or honeywell, they are not leaders in respected division, so this maybe will help them focus on that. >> your question on the stock reaction, if you told me it was 10 or 15% dividend cut i would say for certain you would get a rally. i'm surprised that with a 50% cut you have this type of reaction. maria: me too.
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we will keep watching that, gerri, thank you. nasty toxic air new delhi stopping flights to the city. you can now take a seat on a golden louis vuitton toilet. yes, back in a minute. "volatile markets." something we all think about as we head into retirement. it's why brighthouse financial is committed to help protect what you've earned and ensure it lasts. introducing shield annuities, a line of products that allow you to take advantage of growth opportunities. while maintaining a level of protection in down markets. so you can head into retirement with confidence. talk with your advisor about shield annuities from brighthouse financial
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to anybody but something has got to happen. former candidate bernie sanders echoed the sentiment calling for change in an interview just yesterday. >> so to say independence, say to young people overwhelmingly, say to working people, we don't want you to come into the democratic party is absurd and recipe for failure. now in my view the democratic party needs to make fundamental changes. maria: joining us this morning special former assistant to president trump mark lauder is here. >> thanks for having me back. maria: we want to talk about your side of things, let's look at the democrats as we approach an election next year 2018 and on the heels of a big victory that the dems had just last week. >> well, i don't put too much stake in virginia and new jersey outcomes. virginia has voted for a governor of the opposite party of the president every year since 1977 except for one, new jersey by very few accounts that
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are at least credible accounts will be considered a bell weather state and virginia trending democrat nick recent years. they basically held serve. kevin: i think you're bringing a great point specially about virginia because they voted for hillary clinton as well as barack obama, so i think we can't read too far into it but are you concerned about the agenda and what's getting done in washington and what that impact will have on next year's elections because right now, you know, we are seeing the senate and the house being on two, you know, in the same book but two different pages on tax cuts? >> i think what you're seeing the legislative process working. you have basically the same framework for both house and senate and slight differences on both of the bills and they will get together and work those out. i will compare it to a supporting event, right now i think we have too many people that are trying to say that after every play the game has been decided, this is how -- this is how the system works,
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you've got to broad framework in place, focusing on middle class, focusing on corporate tax cuts, a few tweaks around the edges but i'm confident they'll get it done by christmas. >> one of my questions and i think the voters too, the republican party doesn't seem to be united around one ideal anymore, you see have seen fractures in the party and my question is, the american people are looking for something different, straight-talkers, somebody who they can trust, how will the republican party reinvent themselves and look into the midterm elections as well? >> i think that's one of the reasons that president trump was elected in 2016 and while senator sanders and vice president biden are trying to figure out what the democrats are going to stand for, the democratic party abandoned american workers many, many years ago. that's something the president tapped into and that's what you see in his agenda, renegotiating trade deals so they are actually
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fair for american workers where it's cutting taxes for middle class, reinvigorating the economy so we don't have to consider less than 2% growth to be the new normal, we can get to 3% growth, 4% growth and that's where the president is focused and when people see that, when they head to the polls in 2018 and beyond, they typically vote with their pocketbooks. maria: you don't think the principles have changed because for the longest time we are thinking that the republicans rs are the party of lower taxes and we know that in this tax plan there's a big portion of people that are actually going to pay higher taxes and we thought that the republican was the party of fiscal discipline and we saw the budget which is a half a trillion dollars and same thing with budget? >> what you are going to see is get the growth, a lot of projections are based on static scoring than dynamic scoring. we will see more people going to
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work, those kinds of things. but you also have and you saw is president's budget blueprint that he released earlier this year that was proposing significant cuts to many agencies and consolidating programs that are outdated and finding ways to cut that spending, so as you work through this process, you address the spending side and the tax revenue side through tax cuts, this is still a party of fiscal discipline. maria: you think the tax bill will get done through year-end, mark? >> they are focused on it. you will have a vote in the house of representatives, the senate will come back the week after thanksgiving and have their vote then. maria: all right, we will be watching, mark, good to have you on the program. thank you so much. if you're just joining us, general electric has cut dividend by 50%, we are watching the development there, they are having investor day today. the stock is trading up on the news, 50% dividend cut out of ge, back in a moment ♪
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maria: welcome back, we were markets this morning after ge cut dividend to 50%. dow industrials expected to be down 40 points. nasdaq, s&p 500 also negative. of course, we are watching ge which, of course, is trading up. it's high in the morning, better than 2%. company has cut dividend by 50%. the ceo is saying that we are acting with urgency to make ge simpler and stronger and more manageable. the stock trades higher in the face of 50% dividend cut, they're having an investor day-to-day, they got the news right out from the get-go this morning. we are also watching alibaba the company may have invented the single's days but the rivals are reaping the benefits from the frenzy, number two giant, hauled
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$25 billion throughout the sale of so-called single's day, largest shopping day in the world out of china. delivering a big beat on renew on better than 6er in the premarket. mattel shares are soaring this morning. mattel has struggled with weak sales despite big brands like barbie, fisher-price. up 26% at the officer from mattel. struggling sales, barbie and hot rods. we will go to lauren -- we are going to general electric. that's the story of the day and that is leading this market actually higher up 2 and a quarter percent. mike: this is amazing and the
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market is looking for a buyer right now, buyers are coming into the stock in front of this analyst -- now since we are around $21, the 22-dollar level from a technical perspective was key level that ge held. remember it bounced off that several times, broke down below it, went beneath $20 a share. right now you're getting positives, people are looking at this as positive, people are looking to buy the stock on the news. maria: it's the kitchen sink. let's sell as much as we can, take the dividend 50% which is significant, really significant and yet we have a rally in the stock. stay with us, a lot to come here. from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. and i'm the founder of ugmonk. before shipstation it was crazy. it's great when you see
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maria: welcome back. good monday morning, thank you so much for joining us. i'm maria bartiromo, happy monday to you, monday november 13th, top stories right now 7:00 a.m. on the east coast. breaking news general electric has cut dividend by 50%. company says it did not make the decision lightly but acting with urgency to become simpler and stronger, the stock is trading up on the news. the new dividend is projected to pay out 12 cents a share, half that of the current 24 cents a share, more on the breaking news out of ge this morning ahead of important investor day, they are getting the news out and quickly. president trump in the philippines this morning. final stop in tour throughout asia, opportunity to tout the work that his administration has done on trade deals in the
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region. >> we've made some very big steps with respect to trade, far than anybody you know, in addition to $300 billion in sales including china that was 250 billion and growing substantially from that. we have made a lot of big progress on trade, we have deficits with almost everybody, those deficits are going to be cut very quickly and very substantially. maria: president trump says he will make a major trade announcement from the white house on wednesday following return to washington this week. meanwhile it is an all-out blitz on capitol hill. debates as republicans push tax reform before the end of the year. very latest including senator orin hatch's plan. all coming up. markets under selling pressure despite rally in ge shares after the company cut dividend in
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half. s&p and the nasdaq also in negative territory right now. in europe major indices also lower. cac quarante in paris down half a percent. we had economic data out of germany. it was pretty good. nonetheless stocks are down. in asia overnight stocks. >> mixed at the close, winners hong kong and china, down 1 and a third percent. always lowest prices, well, not so fast. may be costing you more to order from wal-mart online rather than just go to a wal-mart store. higher prices on dot com. the huge amount that company brought in just ahead on single's day. plus ready to negotiate your next contract alone, why not ask for health care or for life, maybe a private plane for life, the staggering demands nfl commissioner roger goodell is reportedly making for his next
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big contract. all the stories coming up this morning and joining me to break it all down pollster and president of maslansky + partners lee carter is here, kelly&kevin managing partner kevin kelly and rosecliff ceo mike murphy. >> i want to get such a negotiation strategy after viewership is down and we are going to make demands. mike: reverse psychology. maria: not happening. kevin: ge has lost a hundred billion dollars in market value this year, last time they cut the dividend was 2009, they cut it by 68% and the last one is jeff immelt on that day called it the worst day of his tenure as ceo when he cut the dividend last time. maria: things have gotten worse since that day. kevin: he's to blame. this is probably his worst day as private citizen because now
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the new ceo is cutting it based off of his actions. mike motorcycle immelt cut it under his watch and flannery is coming in, we are throwing the baby, we are putting this behind us, i think that's probably why the stock is having the reaction. maria: the company said it did not make decision lightly. payout of 12 cents a share, half of what the currently payout is, cutting dividend 50% and they want to make a smaller, simpler company, kevin, they will have investor day-to-day and focus on three areas, aerospace, power and health care. kevin: as i mentioned earlier, those are areas they don't lead in, they need a simpler company which is what they are trying to state to shareholders, that they can focus attention on that. they are talking about divesting specially in the oil space. baker hughes which has not panned out well to them.
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in order to get back to a situation where the dividend is in jeopardy, they need to cut a lot of things. maria: this is not a small thing. this company has only cut its dividend 3 times in its 125-year history, mike. mike: huge deal and the fact that you all thought of ge that was a company that was acquirer and the fact that they're selling companies, a lot of managers waking up to the news morning licking their chops to go in and see how they are going to buy distressed general electric assets. this is a big part of it, what they sell, what price they can get for it and a smaller ge, i don't know if that's very appealing or not. maria: appealing time to buy the stock, the stock is trading up. let me say, lee, that this move is expected, was expected because of the cash flow deterioration this year.
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it's expected to save 4 billion cash a year by cutting this way. >> he predicted this, but at the same time, the investor day is going to be critical because the message this morning saying it's going to be a smaller simpler company, that's an interesting move. also, how are they going to find themselves to have confidence and reputation for a company, your trust in a company drives stock price. if they're not able to give explanation we might feel action in the stock. maria: report that's in the journal this morning, they gave the journal important details as far as what they're going to discuss at the investor day, the morning the company is issuing this statement, we understand importance of this decision to our shareholders and we have not made it lightly. we are focused on driving total shareholder return and i believe this is the right decision to align dividend payout to cash flow generation and kevin as i mentioned, the cash flow generation has deteriorated this
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year. kevin: highly levered. you look at the debt on this company, pension debt, ge capital, significant levered, if they divest in that they would take a hit and worth actually less, it's interesting, it's a good move. maria: we will watch this and investors feel that the water is safe to go in again because they are buying the stock up this morning, despite the company that cut dividend in half. let me move on because president trump is talking trade in the philippines this morning, commander in chief held several meetings with world leaders including controversial leader duterte, here is what he had to say. >> it's our interest to keep our engagement close and ensure that a strategic partnership delivers resource for our peoples. >> we've had a great relationship. this has been very successful.
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the conference has been handled beautifully by the president in the philippines and your representatives. we really had a tremendous time, all of the leaders. maria: i want to bring in fox news contributor american enterprise institute senior fellow and former u.s. ambassador john bolton. thank you so much for joining us this morning. >> good morning. maria: your reaction to the president's trip to asia? >> he has made issue, the key issue, not trade issue for me, the key issue north korea's weapon's program, we really don't know what the chinese have committed to or not committed to. it's possible that china really hasn't moved at all. it's possible that they've got something in the works that understandably they don't want to discuss in public yet but that to me is the big test n. vietnam, the philippines, big stres in strategic field whether the philippines will turn away from china where president dutertes are made move where we are going get cooperation from
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vietnam, for example, being able to use naval base that we had during vietnam war to counter chinese efforts. so there's a lot at stake here in addition to trade talk. >> hey, listen, we will help you with regime change, we will do whatever it takes as long as you keep japan at bay in the south china sea? >> i wouldn't make that deal in a million years, the chinese are acting in a completely arbitrary fashion in the south china sea, we have a vital interest in keeping those waters international waters. in the chinese, they've already declared a capital, if they make it into a lake sovereign chinese lake they control every barrel of oil that comes from the middle east that goes to japan, south korea and taiwan that goes
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through the south china sea. so this is not anything that we should be making concessions on. >> one of my big questions, if you read a lot of articles that have been written about the trip, a lot of people calling into question whether it's a failure, whether or not the president is overstating the success of this, what do you think that we should be focused on? i get that north korea is really important, they can't make that announcement. overall, if you were to assess this, how would you say success or not? >> yeah, i think it's a success. look, the trip of japan, despite the fish food which show it is level of sophistication, shows we are close with shinzo abe, prime minister, i thought the president's speech to the south korea national assembly was a ten strike and he handled the very difficult relations with a president moon jae-in who doesn't see the north korea the same way we do.
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china is still a question mark and on the trade deals, look, all presidents exaggerate their influence on trade. here is a news flash, the united states government does not make business deals, businesses make business deals and then the government announces them and takes credit for them. that's what presidents have done since franklin roosevelt at least. maria: he's traveling with business number of people. president from boeing, health care, number of ceo's with him and you have to look at the fact that they were together, they have have a common goal to do deals. >> yeah, sure. a new book of business tat paris show, sounds impressive, people say incredible boeing dribbles sales out over the year and what the real result comes at the end of the year, not what the press release at the paris air show is. mike: ambassador, it's mike murphy, you talk about businesses making business deals, that's president's point
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here, a lot of the deals that the united states has been part of on the trade side have been bad for the united states, i look at it as a positive if he's over there getting better deals for the american people, i think that is a business move but it applies to politics here. >> i don't think it applies to businesses at all. the point of wto and nafta and tpp, negotiating with other governments didn't do very well and also in the implementation of those deals, many of which are not free trade, managed trade, countries have violated them, china and the wto is a perfect example and taken advantage of and under prior administrations the u.s. government has not responded adequately government to government. if he changes that, i think that is significant. maria: all right, we will leave it there. always a pleasure to see you. john bolton, when we come back, could the town in arizona become the next silicon valley, bill
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gates with futuristic city which he will fund. move over black friday, alibaba's single's day, more on studded event among nicole kidman. back in a minute.
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>> confident that we are going to get votes, we got the bill out of ways and means committee with 24 votes on thursday last week. 24-16. so far every vote has gone the way we thought it would go. we are optimistic that we are going to continue to get the votes. look, time is going to tell but we will be in the senate finance committee this week and the full house this week. maria: white house chief economic adviser gary cohn expressing optimism on tax reform on me yesterday sunday morning futures on fox news this comes as senate finance committee begin it is mark-up of bill today. lauren simonetti with more details. lauren: hey, maria, senator orin hatch, plans to introduce amendments that will propose changing 401(k) contributions.
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this is obviously expected to be met with heavy criticism, new york congressman peter king telling maria bartiromo that he vote no on that bill. >> if you look at it, hard-working middle -- upper and middle-income people. a family making over 400,000, they have broken their neck for the last 20 years working the way up. they were not born with silver spoon in their mouth, these are not hedge-fund people, they are going to get screwed. i didn't run for reelection so i could go to my constituents and say, i raised your taxes to help people living in other states that already get subsidized. lauren: house republicans to bring the bill to the floor later this week. we we wanted to bring you the story about polluted air in
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india, united airlines has stopped flying there and schools, they have been closed since last week. the government has banned most construction and industrialized activity until the air quality improves. united says it's monitoring advisories as recent combats public health emergency, taking a look at shares at united, down about 20% so far this year. microsoft founder bill gates looking to build a smart city in arizonament one of gates' investment companies has acquired 25,000 acres of land, 15 miles west of phoenix to create a smart city that they'll call belmont, it will have cutting-edge technology for communication and infrastructure as well as data centers and autonomous vehicles, space for 80,000 apartments along with public schools, offices and retail stores, speaking of retail, single's day in china over the weekend, celebrated by e-commerce site alibaba show
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cases deals commonly in black friday, reported sales of $25.3 billion, 40% jump from last year alone and it's also more than double last year's black friday and cybermonday sales in the u.s. put together. alibaba's founder, he's actually helped ten different people become billionaires, group have created this weeb of people with a combined wealth of $52 billion, partners that cover areas like shipping insurance and online payments, feedback into alibaba generating revenue for the partners, if you take a look at shares, up three quarters of 1%. maria: that's interesting. the amount of exposure and the reach of alibab acreating all the billionaires, kevin kelly, i know you own alibaba. kevin: yeah and ge, in 2017 you had online sales in china grow
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at 29% here in the united states, it grew at 16% and they have a bigger market and it's going to continue going forward. so listen, the tail wind is behind them. maria: amazing. >> wal-mart owns 10% of maria: how they are raising prices online? when was the last time you heard that wal-mart raising the prices? the details on the retail's tactics.
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to 12 cents a share. company says it did not make the decision lightly. the new dividend is now 12 cents a share per outstanding share, half of that, 24 cents. joining us by telephone brian and brian, you are upgrading ge this morning on the heels of this news. >> yes. basically there are no expectations in the stock, we've had to go from 28 to 20 in the last few months. half of that was the power seg rent and the other half i would call it experience by a lot of analysts who had a birating on it and recommending for a long time. no expectations at this point. when i look at the valuation, the fair value of the stock even with the current problems is 22, closer to $25. maria: do you like the tax that the company seems to be taking to really just focus on three
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main industries, aerospace, health care and power? >> it makes sense, those were the bulk of the company already. does make sense to have greater focus and also the history of is go in with companies and focus. mike: 21 to 25, aren't there a lot of better places people watching at home as far as seeing growth in the industrial space rather find the bottom here for general electric? >> it's a great question. there's the absolute question and then there's the relative question, frankly when you look at the market and you look at the broader industrial sector, there isn't much left, you know, in the market last year i'm with her to him with a question mark to maga to let's all pay up for a tax cut that hasn't happened yet so really we don't have many
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other names that we are recommending beyond united technologies and ami-tech. kevin: as we have seen honeywell has left ge in the dust specially on aviation side, siemens has been killing it off on the power side, they have over 3% dividend yield. you know, where do you think that g egos from here in regards to competing against those -- i see it as dead money. where do you think the company can go from here? are they going to do mergers and acquisitions in those space to generate the growth to hit price targets? >> no, two things. first of all, i'm very glad you brought up honeywell. the fair value of assets, you know, the mistake a lot of people have made is let's take current results and extrapolate into the future, the reality is you should look at normalized earnings, i'm glad you brought
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up lun well, what made one of the best-performing stocks over long time and a great turn around story was when cody was not -- went to honeywell. the best way flannery could do is look at cody and they stopped changing the story every 90 days and focused on doing a few things well. maria: wow, that's interesting. >> if they do, that will be john flannery's path to real success. i hope they do it. kevin: actually investing in the company, they are operating on all cylinders and because of management. maria: jeff cody has done an incredible job. let me ask you this because investor day today and john flannery, new ceo has made a pledge to sell $20 billion,
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additional, part of the pledge is the transportation unit which makes locomotives and how many jobs will be affected? 295,000 employees at the end of 2016, what kind of a layoff situation are we talking about here? >> right. you know, i don't know that you'll massive number of bodies out the door. they simply went with the business somewhere else. they've already been doing this for the last couple of years trying to cut out layers, overlapping processes, i think when you see announcements like this, part of it is something new, usually a big part of it is stuff they were already doing. maria: oh, okay, we will be watching that of course, we are
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also expecting that there's going to be news in terms of exiting the baker hughes stake, they own 53%. >> over time, yes. maria: brian langenberg who updated share this is morning. we will take a break, roger goodell requesting a 50 million-dollar paycheck including with life-time jet and whether he will get them next? we will break down the latest paintings including the famous paint from da vinci, wait till you see what else is going to auction. back in a minute.
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maria: welcome back good monday morning. i am maria bartiromo. your top stories right now 7:30 a.m. on the east coast. a jolt for ge shareholders.
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general electric is cutting the quarterly dividend by 50%. what it means for the future of the company in the investor day today. we have all the details on ge which is trading up after a 50% splash. new york congressman told me he will vote no on this legislation. >> right now i'm definitely voting no. when people in the administration and the house and senate leadership say that that when we lost that. in new jersey. the answer to that is to pass a tax reform bill. those are the areas that are to be hurt the most. including the plan to introduce a new amendment changing the rules for 4o1k contribution. walmart is charging more on its website than it stores. the nfl conditioner demands private jet and lifetime health insurance for his
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family. and a $50 million salary to match. the broader markets this morning. it is accepted to expected to be done about 70 points. in europe this morning they are lower across the board as well. they're down 1%. in the ft 100 has switched now to negative territory. stocks were missed at the close. japan was down one and a third%. your chance to solve the da vinci code from the comfort of your own home. how much it is expected to fetch when it goes on sale. the battle off of the field. robert caddell once a major bump up in salary to remain the league's chief.
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that's up from his current million dollar contract. he wants a private jet for life and health care for his family for life. the dallas cowboys owner not happy with the proposal. jerry jones has threatened to sue if the deal goes through without the final approval from the league's teams. judge, good to see you. judge, good to see you. i'm a long-suffering giants fan. >> it's interesting to see that the owners are weighing in here. my they have more influence over the content. roger caddell a lot of us know has a notoriously tin ear when ten-year when it comes to politics. he has blown it with the fans on the kneeling even though i have defended the right for
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the players to kneel. neil. and he has imposed excessive grossly excessive penalties for off field behavior. he's in a weakened position. the other side is this is a private entity and as supply and demand in these guys can pay them anything that they and he think he is worth and this is in the middle of that negotiation and if you don't aim high you are not going to hit high. the jerry jones situation is very interesting. the nfl charter gives all the power to pay the commission to compensation committee. jerry jones until last thursday was one of them. the other four removed him. he is no longer on the compensation committee because of the forceful weight way in which they had attempted to block roger caddell. but goodell. but for getting the contract renewed.
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has all the authority to negotiate with roger caddell. when he bought the dallas cowboys he agreed to accept nfl rules the nfl rules in the rules are the compensation committee not all 32 owners decide how much he makes. i want people to get paid whatever they can get. at this point in time it's now in the public. 30million was his former salary. at a time when the ratings are down. if the seller is 30 and he's demanding 50 and he ends up with 33 or 34 we would say
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that as is a fair increase perhaps produced by that. the owners only care about one thing in the store. he has done so well by them. that's why you are seeing him go through with the compensation committee willing to keep him on board he has delivered for them. up to this year he has helped make these billionaires richer. he has given them a tremendous return on their investment. what can happen to is can happen to ratings and money that they could make on tv he is feeling right now. do they really had cause to get rid of him do they have they've all of this with a heavy hand in the owners.
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they don't have to renew his contract. they would be crazy not too. he has made them the sports moneymaking machine in the world. the nfl has been. up until this year. is there no accountability does not take responsibility for the way it was handled. apparently at least for the other four members of the compensation committee they are still willing to look favorably can i tell you that they would rather do a deal with some of that they know and has managed it. thirty-two billionaires.
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who are they going to get to replace him to run and manage 32 strong personalities. two years ago that then biggest supporter among the owners was his biggest enemy. jerry jones could be back being money. if you look at it from a perspective of some of the players salaries versus what the commissioner gets maybe a puts it more in line you are worth $49.5 million per year he's get a need to structure deals on the digital right side. he will negotiate with facebook and amazon where they are airing thursday night games. now he's going to do it with the other medium platforms.
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more than that they need someone who is majoring going to fans to watch the game. he just has to give the owners a return on investment. you make money without the radiance. thank you so much. we will take a break. when we come back walmart is pushing for higher prices the sales tactic to get with amazon. even higher than your stores. wait till you see this.
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>> two men recovering this morning after been a step just trying to stop a robbery at the mall of america. it happened in the men's department right near the christmas display. they were lining up to see santa. the victim confronted the suspect he pulled a knife and started to stab him. they prompt the family member to rush over and they were also stamped. the suspect was eventually brought on down by other shoppers. the two men injured are expected to survive. all of that at the mall of america. gossip columnist liz smith has died at the age of 94 of natural causes. she is entertained millions of readers.
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she was clued in on the enter circles and she broke the news the news of madonna's presidency. the news goes on. in 1976 and it ran there until 1991. walmart reportedly launching a new sales strategy hoping to drive store traffic and also boost online profits as it and many others compete with amazon. walmart now charges customers more to buy some products online than it does in stores. these products include kraft macaroni cheese as well as colgate toothbrushes. if you want to flush hundred thousand dollars down the drain here's a way you can. louis vuitton toilet could be yours.
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welcome back it is art auction season. joining me right now is the president as the president of witmer fine art advisors. michael, it's good to see you. before we get some of these incredible works. the art market is on fire. we are having a very busy and good week in the art market. the italian renaissance change the world forever. there were three principal artists of the renaissance. there are only about 20
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leonardo da vinci paintings in the entire world. this is one of 20 and the only one that will come to the market. he did a lot of studies. he did not finish a lot of his products. some of the paintings are missing and this is the one that is left. sixty last suppers will also be going out. nine by 11 feet. and is just that 60 last suppers. and classically work all he is taking a subject that is sacred and meaningful to much of the world and trying to show what was going on with mass production. how we cut it mass-produce everything. it is expected to bring $50 million and it probably well.
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this is an original one. very beautiful painting. i think it should bring at least 25 million if not more. it was when he was having a good day. it is in excellent shape. very few of these are left in private hands. and then there is also a chagall. he was an artist that went to his own his own way. the other is a respected work is not exactly abstract. it is is a great modern work of art.
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is there a skill you can toss about in terms of high end mid- end. we are seen works come up. now going up to over a hundred million dollars. they refer to the art collecting. maybe you want to invest in art. toss about art as an investment. do you think things will go higher. they say it is down. it is not going up that much. now all the sudden they are taking a look.
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our their masters and now on the auction block? >> know it is not old master time. it's interesting that you would even see someone like that enter this field where you have obviously the da vinci paintings as well. they want to seize the moment. the economy is doing pretty well. and they want to sell this painting why they can. check out the auctions. general electric cut its dividend by 50%. he did not take this decision lightly. three major divisions.
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nonetheless trading up on an upgrade as well as this news been out. that as next our warnings with maria right here. yeah, my dad says our insurance doesn't have that. what?! you can leave worry behind when liberty stands with you™. liberty mutual insurance.
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i am totally blind. and non-24 can make me show up too early... or too late. or make me feel like i'm not really "there." talk to your doctor, and call 844-234-2424. maria: welcome back. good mopping morning. thanks so much for joining us he happy monday to you, i am maria bartiromo.
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it is money november 13 your top stories right now 8:00 a.m. on the east coast breaking us. >> general electric has cut dividend by 50%, the company says it did not make this decision lightly it is ookting with urgency to become simpler stronger projected pay out 12 cents a share half that of current 24 cents going to focus on three areas at investor day today more on breaking news coming up we should point out ge shares are hi, but well off the highs of the morning, earlier, when news first came outf stoke up 2% one analyst said the worst is out, broader market futures lowering opening for broader averages low of the morning dow down 76 points a third of a percent s&p 500 down a quarter foors nasdaq down a third of a percent. >> europe ft 100 down fraction cac quarante in paris down almost 1% dax in germany economic data off the europe as well as asia, let's check
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markets overnight a mixed story, nikkei average worst in japan down better than 1% major step forward president trump is in manila, the final stop on tour throughout asia commander in chief took opportunity to out to the work the administration has done, on trade deals in the region. >> we will be announcing for the most part, things -- make from it the white house. as opposed to -- do that on wednesday we have made some very big steps with respect to to trade far bigger than anything you know, in addition to about 300 billion in sales to various companies including china, that was 250 billion going up for substantial from that, a lot of big -- >> the president tweeted on meeting this morning what he says from manila great day bilateral meetings asean summit on trade turning around
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for great deals for our country leaving philippines tomorrow after many days skwabt meetings work in order to make america great my promises rapidly being if you will fulfilled will make a major trade announcement from the white house this wednesday following his return to washington all-out blitz on capitol hill over tax plan, debate is in full swing, as republicans push to get tax reform finished by the end of the year, the latest on quest for deal including senator orrin hatch's plan to introduce amendments changing 401(k) contributions congress up patriots a mockery of broncos one move to honor navy family member stole show highlights from mile have i, to break it down, the president -- lee carter kel and company managing partner kevin kelly rosecliff ceo managing partner mike murphy. >> happy to be mere. >> you don't think much mockery. >> i don't. >> no, i mooern i beg to differ, i mean the patriots
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have been on a roll the broncos don't have quarterback, so -- >> what word would you like to use? >> i think it was a very efficient performance by patriots, lived down their expectations. maria: all right. >> got a lot to talk about ge can you go to dividend by 50%, this is a major deal, mike murphy the stock is up. >> the stock is up, having a rebound after performing poorly i think this analyst call that comes up this morning is going to be very important to see what exactly they are looking to do as far as, going forward. how are they going to get growth going to focus on key areas where is the growth why would somebody put a dollar into the company right now at this point in time? i want to hear. maria: kevin there is 95,000 employees as of end of 2016. the focus on three areas aerospace health care power does that mean more job cutting coming. >> possibly they need tee focus on cash flow one of the things they have to evaluate is do they need to add more people or cut people, and if they are looking to grow, then
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it is probably keep the same head down the but to divest they are you could see payrolls come off you saw them leave connecticut, and go to massachusetts. they are making a will have the decisions. maria: for sure we will stalk about that, one of the major stories at a of the day president trump winding down five kin asia trip second day in phillipines blake burman in washington with more on the president moss over to you. reporter: maria, good morning to you it is the issues of trade and north korea that continue to dominate the president's trip, earlier today as he was set to meet with ladders of as awes, a-- australia and japan teased announcement said coming on wednesday regarding the results of his overseas trade discussions. >> we have made some very big steps with respect to trade probably bigger than anything you know, in addition to about 300 billion in sales to various companies including china we have -- going to be
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cut, very quickly, and very substantially. reporter: on that second ash north korea animus continued over weekend as president sent out a tweet when said the following i quote here he said, why would kim jong-un insult me calling me old? when i would never call him short and fat? well i tried so hard to be friend maybe some day that will happen thank you now the president seemed to move past that sunday in vietnam, during the press conference, when he was asked about the possibility of becoming friends with the north koreaaround leader? >> i think anything is a possibility. strange things happen in life. . that might be a strange thing to happen. but it certainly is a possibility. . reporter: now the president very clearly feels this has been a successful trip maria tweeted out a while ago i quote here he said we will leave philippines tomorrow after many days of constant meetings work in order to # make america great again my
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promises are rapidly being fulfilled we will turn attention on wednesday to what that president might release about those trade deals. maria: blake, thank you we will continue following in a, blake burman. reporting from the white house. it is a cyber week for tax reform, something we have been talking about all year house republicans plan to vote on tax package by end of this week, senate republicans begin work on their he own bill that is the markup the white house is optimistic congress can make deal before christmas, but one flash point remains over state and local tax deductions, the house version would cap 10,000 dollars, the senate bill eliminates the -- the state and local deduction entirely, white house and gop leaders insist the plans would still deliver release in high tax statess but others including new york congressman peter king disagree. >> hardworking middle income americans deserve a tax cut deserve to keep more hard earned income, both wills do
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that. >> want people keep more a what they earn regardless where they live including highly taxed state why keep home mortgage deduction chishl repair 10,000 dollars property tax deduction. >> encouraging rich to be hardworking middle upper middle income people so many he families may make over 400,000 dollars in late 40s, early 50s they broke next 20 years, working their way up he, and they -- there are big hedge fund people they say are hardworking people, and they are going to get screwed by this bill i am not going to vote for it. maria: joining us right now former chairman of president obama's council economic adviser now professor at harvard kennedy school good to see you thanks for joining us. >> good to see you. >> shots to on how bills treat state and local tax deductions what is your take on tax bills that we're hearing about? >> well pretty awkward when you have the president of the
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united states selling this as at the largest tax cut in history, when you have the speaker of the house and senate majority leader until changed language recently saying that is tax cut for every single middle-class family then you have provisions like this, part of a bill that raises taxes on tens of millions of households how do you do that tens of millions of hourdz your taxes are going up even though we dry this as biggest tax cut in history i think real issue trying to push this forward. >> when you look at overly package 1 1/2 trillion dollars to spend on truts approved in the budget, 900 billion dollars, of that number is biscuits, corporate rate coming down, pass-through rate, are you saying they should not be so focused on cutting corporate taxes? >> i am saying if you paid for those he corporate tax cuts, then you wouldn't have had to drain so much money in that area. and if we had a serious conversation about how to
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reform our tax code rather than claiming that this is a big, big tax cut a massive tax cut largest trut in history nonis true this is been debunksed, so having a conversation that isn't about the actually legislation, the legislation would be raising taxes on many, many families. >> jace. >> jason mike murphy over last 8 years we have seen deficit double at the corporate tax cut the premise of it is to fuel growth. do you not see -- having tax code here in this country that is competitive with the entire world? >> don't you he see that as way -- >> -- your the deficit was 10% of gdp when president obama starting 3% gdp when he left. maria: but -- doubled -- >> the -- >> i didn't say in relation to gdp. >> the deficit you said
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deficit. maria: let's talk about in general, in general -- >> president reagan. >> debt about doubled under president obama from 10 to 20 trillion do you agree. >> make said "deficit" in reagan wouldn't up on percentage basis more than president obama why? discuss a he had huge tax cuts that raised the debt went back president reagan a year after huge tax cut raised taxes in 82, raised them in 83, et cetera, even then debt went up a lot, that is what is going to happen here. cbo numbers have debt going up nearly 100 percent of gdp a month ago, a month ago house republicans voted to pay for this plan. over 220 republicans voted for the same thing that i support now, why won't they still do that? . >> yeah so -- so jason i think the issue we are trying to get at if we were covered well under obama administration why
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were we having surpluses we had deficits deficits deficits if we look back to 70s, 80s, 90s we were running some surpluses we have got to figure out how to balance it if we are going to take in 3 1/2 trillion in taxes, but going to spend 4.1 trillion, in -- in for the government expenditures how do we balance it reconcile this can you give me an item congress needs to look at to do this democrats are coming to the table but do they have a an idea that they can figure this out. >> right you are right since 1970 we have run surpluses four times four times in late 90s, after three budget bills that did a combination of revenue and spending, to bring the deficit down. that is the type of approach we should take if we want to deem with deficit put revenue on the table, spending on the table if we don't want the deal with deficit we want to reform tax code that is just fine but let's not make that deficit problem even worse, while reforming tax code that
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is speaker ryan's position, speaker ryan's position until a month ago he reversed his position president trump put zero across from tax cuts. >> treasury should put out a model showing that congressional scorekeepers put out a model showing that models don't show tax cuts pay for themselves, why, why have we why have republicans changed their positions from a month ago. >> where specifically would you cut back where do you cut extending then? >> -- you know in this bill, we should not be doing as big a tax cut, so you know the corporate rate. >> you don't think corporate rate going to 20% is a good idea? >> if 28% -- what -- >> you don't think cutting corporate taxes is a good idea to 20% then? >> i don't think we can afford 20% -- >> the business roundtable main business lobbying group until a few months ago asking for 25% rate maria you have a
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-- rate in the mid to high 20s, and you combine that with expensing with integral reforms would give us a very competitive international tax system, would cost a whole lot less. >> average tax -- is 22%, i mean it is lower than 28% so i don't know that that is equal to equal in terms of he competitiveness west of the world has much lower corporate rate you know that. >> a most countries have vat, so ireland has 12 1/2% corporate rate 23% vat, like sales stacks not proposed here those countries raise more taxes than united states they make up for it in other ways in tax system so i guess i turn the question back to you. our taxes right now 17% gdp would you like them to be 25, to 30% gdp, like all those
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countries you just cited? >> jason you are talking about -- >> the answer we're not ireland we are not -- >> that is different than corporate tax rate talking about so ireland, companies it is cheaper for companies overseas to invest in united states than companies in the united states to invest here so that is the issue, if we all go to vat would be great ireland has a good idea on that a low corporate tax rate thens consumers, citizens have higher -- that would work well here for us. so i think your highlighting what we should be doing like ireland is doing. >> i think good argument for switching from no corporate tax to something like a vat that is not what this bill does though, all countries that loader corporate tax rate they did not do it by creating types of huge deficits that this would be leading to here. moreover, by the way, that 22% maria that is for all countries that has places like estonia, and ireland in it if you look at countries like
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germany, japan, they have tax rates nibble the low 30s. competitive in that -- >> i don't know that u.s. is wanting to become germany. >> thank you so much for joining us we appreciate it. >> thanks for having me. >> we will be right back. from the very beginning ... it was always our singular focus, a distinct determination. to do whatever it takes, use every possible resource. to fight cancer. and never lose sight of the patients we're fighting for. our cancer treatment specialists share the same vision. experts from all over the world, working closely together to deliver truly personalized cancer care. specialists focused on treating cancer. using advanced technologies.
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news all morning general electric has cut its dividend by 50%. will pay out 12 cents per quarter half of the current 24
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cents as you see stock off highs nonetheless trading up, chief investment officer with us, on the phone right now thanks very much for joining us. on the phone: thank you. >> you have a neutral rating on this stock tell us your feeling about this dividend cut 50% where the stock goes now? on the phone: i have been calling for dividend cut for quite sometime i believe this is the first on the -- he and i think this could -- the stock, what -- john vision for the future so talking about just focusing on -- health care, and -- this is one of the world's most -- the market, and they need seismic shift. maria: but i mean you have a neutral on it does that mean would you be poised to upgraded at some point? on the phone: i am waiting to hear what they have to say i
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am optimistic, i mean i have had for a number of turned out i am waiting for the opportunity to make the call -- >> ivan mike murphy here flannery lowered guidance substantially now cutting dividend, is there another possibly shoe to drop coming from new ceo of ge. on the phone: yeah i believe there will be significant writedowns, this is probably -- guidance some time, until they have a clearer vision. but revenue and income -- so i would expect a write down, much -- started new direction. >> you say you want to hear from what is going to be what is it wah don't hear that is going to make you say this is a company of the future or something you are going to say
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you know what i am going to downgrade even further? on the phone: you want to hear -- helped, about aerospace is another, another area, so would have plenty of cash to make positions, hopefully be growing -- want to hear his vision for cash and cash flow. >> we will leave it there ivan thanks for weighing in we appreciate it we will watch what comes out of that investor day, i'van joining us there, 348 people killed in iran, seven others in iraqat a major earthquake hit near border of the two countries, lauren simonetti with details now. >> devastating many fear that could rise as rescuers continue to search for victims who may be trapped under
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rubble 7.3-magnitude quake also injured more than 7,000 people, this are reported that more than 70,000 are in neither of shelter. >> uber cleared way for multimillion-dollar investment "wall street journal" reporting former ceo has agreed to give up control of seats limiting power wants major reforms only if this deal goes through last month in saudi arabia, maria spoke to the ceo of softbank investment advisers. >> not looking to take down -- a billion or billion and half primary investment. there is -- substantially an tublt to provide liquidity to share holders issues employees, secondary shares to softbank, and we are late stage discussions to
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potentially apply some secondary shares from early investors. >> upper board saet deadline to hold ipo in 2019 o delivery nasa launching unmanned rocket to be to the international space station from virginia k cargo includes 80 kinds of ice cream frozen fruit bars even pizza, the rocket is due to arrive at space station tomorrow company -- apropos 17 cernan last man to walk on moon he died this january. maria: thank you lauren coming up good deal for goodell nfl commissioner contract demands reportedly private jet lifetime health insurance for family 50-million-dollar salary to match growing outrage among owners and players on those demands. ♪
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maria: well back new england paits celebrating veterans day with 12th road win jared max with details now. >> good morning nfl sunday began with every player on atlanta falcons wearing did he cal, initials of fallen u.s. service member ended with two-time navy chief petty officer running out to field in denver with brother-in-law who plays for broncos 30-year-old brian, wearing his naval uniform american flag in left hand, the pregame introduction said got to be something we remember the left rest of our lives we wouldn't have freedoms if it wasn't for them u.s. military, broken dose didn't have much after pregame lost 5th in a row, 3 depressived passes from tom brady, away from fox boro
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41-16 new england 7 and two, more than a quarter million people mind facebook page boycott nfl asked fans not watch in solidarity with veterans, three nfl players still need during national anthem, at 49ers giants game santa clara 49ers reed and goodwin knelt while on sideline giants vernon took a knee. >> pittsburgh stealers wide referee brown tweeted to brave men and women who fought to protect our country we thank and salute you -- >> ben rorogues -- >> goodell worth compensation nearly 50 million dollars according to report from espn roger goodell asked
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nfl compensation committee back in august, to raise his salary from 30 million dollars, to 49 1/2 million dollars. now the nfl spokesperson says this request was never made in writing. nonetheless, roger goodell also reportedly asking fire lifetime use of private jet health insurance for his family, over the course of his lifetime this is according toe. spn nfl saying requests never -- have not been made to better give negotiations skill classes that is something else, after the year he had. >> one owner says we are not making 40 million dollars, he should not be making that, and maybe one says maybe should be a level step he doesn't make more than any other player possibly does the fact he made the request in august -- tough right now. >> middle of the whole skirmish.
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>> before season kicked off. >> that is the point. >> and protesters i think last season we are starting with colin kaepernick one-alarm fire, five-alarm fire then -- >> you have -- against nfl by colin kaepernick need to decide is he the man to take him on in that suit. >> ohio state university fans holding a sign, letter i, recently a glitch many a headache, i, showing up as a question mark. >> you think about switch in this country had because of this i have been unproductive, e-mails out from iphone, of course, that you can tell when people are traveling posting on twitter, so this is this has been a big, big boondoggle. >> thanks to buckeyes' fans teaching be what this is about i had no idea i didn't care
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about that. >> thank you. >> good to have you back in new york jared max watch sports reports 24-7 sir us radio xm. >> the company has cut quarterly dividend for the third time, in the last 125 years, the second time great depression what the decision means for the future of the and then a as annual investor day gets under way we expect to hear focus on three main areas of ge, back in a moment. six in the morning.
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♪ is monday, november 13, top stories right now 8:30 a.m. on the east coast. breaking news this morning, general electric has cut its dividend in half by 50%, the company says it did not make this decision lightly, but is acting with urgency to become simpler stronger, the new dividend projected pay out 12 cents a share, currently 24 cents, we are live at the company investor day coming up next where they focus on three main areas for attention at ge that includes aerospace health care and power. rest of the market lower futures a lower opening for broader averages at lows of the morning down 80 points on dow industrials, as new skepticismism has arisen over tax plan where we are with tax reform passage, dow industrials down 80 s&p 500 confound a quarter of a percent nasdaq down, better
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than a third of a percent, in europe similar story under pressure ft 100 down a quarter of a percent cac quarante in barris down better than 1%, the dax in germany, you can see economic data out this morning, down almost 1%, in asia overnight, stocks mixed at close, with asia doing well shanghai composite up half a percent hong kong up a quarter of a percent nikkei average a hilt in japan down one and a third pers overnight tax reform push looking to get a bill passed by end of the year i spoke with chief economic advisory gary cohn yesterday about where we stand now. >> we need to be able to compete with the rest of the world we need to allow our companies to be able to sell their products around the world, the tax rate that our are paying makes they can noncompetitive when they bk academy of you know very well they are going to grow their businesses, going do and an expand brooi mirror equipment hire more people and going to
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pay them higher wages, that is how we are going to brother the economy, that is how we are going to pay for tax bill maria: latest fr on push including senator orrin hatch's plan to introduce atms changing 401(k) contributions wailt till dagen hears about this qualcomm fighting back chipmaker reportedly plans to reject, broadcom 103-billion-dollar officer you see qualcomm shares down one half of 1%, kick off right now with our top story this half an hour that is ge, set to answer, to shareholders, as annual investor day later today, after announcing this morning that it will cut dividend in half, in midtown manhattan we are joined right now live with details good morning to you. >> good morning, maria. if you are allowed to see may be seeing cranking people walk in behind me as you appointed out where shareholders are meeting to talk about changes, that ge is going through, you have been covering dividend cut reading that statement
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but, of course, part is we understand and this is coming from ge management, the importance of this decision, to our shareholders, this is only the third time maria as you know well, in the company's 125-year history that ge has made this kind of a decision, so i think investors here today we have been speaking with one or two on the way they have been very, very brief, i will say, but they are looking forward to hearing more from john flannery the new ceo you know took that position, in august. he is a ge vet he has been inside that company, and leadership rolls various loirl roles past 30 years really signaling he is the new sheriff in town focusing on three key areas, of business, he's got a lot of make to up do we know health care, power, aviation going to be focal points one of the areas, that we assume we are going to hear more and more cuts in is really what jeff immelt prior ceo vision of was that digital
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ge they just had a lot of problems with lot of software the software that communicates with locomotives with engines, this is just proven to be an area of great cost and great hassle quite frankly to the company so it seems as if flannery will make changes there and cuts, i know this in october the company already said it was going to not hit profit target, and it is actually signaling other changes for example they stopped production on new headquarters in boston, grounded corporate jets said job cuts will be coming headlines we are paying attention to as we speak with people here but seems like a new sheriff in town new era at ge stock suffering so much down more than 35% year-to-date, as we have been following the dow s&p 500 record highs s&p 500 up 15% ge severally lagging the markets most people here the too all
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institutional investors could you please describe on ge company they could count on people saying maybe immelt is suspending especially on digital products something he felt he needed to do to modernize ge because of glitches execution issues i am real hearing from people here from digital side prevented that are the apple of the company from taking off. maria: all right, thanks we should point out, that in this investor this investor presentation, today they are lowering guidance this is hidden the company is saying that it is expecting earnings of a dollar to 1.07 a share down from 1.16 a year, hidden headlines 50% dividend cut kevin kelly is fact lowering guidance for the year free-cash flow 67 billion dollars. >> that is pretty interesting given if fact that since 2012
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they will have 7.5 billion dollars used in generated on free-cash flow basis, and so to fund really the dividend so now that is coming down. if you look at what is happening here they reiterated in presentation oh, 20 billion did i divestitures focused on baker hughes own 63% of that figure out what they do a key cog. >> decisions when they can get out of baker hughes situation that is coming. >> that is coming socks the new dividend yield also is indicative of a 2.4% yield, that they keep it at 12 cents, 12 cents every quarter, just for comparable purposes you have honeywell at 2% dividend right now, trading at 20 time earnings look to see what the forward p.e. value is of ge i got to do it on new estimate, but pretty interesting. >> trading roughly at this
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price 20 times reduced second time in four weeks they have reduced guidance from 1.60, 1.70 to 1.15 range now down to 1 dollar to 1.07 at this price a company trading roughly 20 times next years earnings if hit projects tough to argue cheap at this point in final. >> down 35% this year also down 36%, on average, over the 126 years that jeff immelt ran this company. >> correct three areas focusing on aviation power health care, last year, those three areas 58% of the revenue that general electric generated so you have to wonder where does rest of the revenue come from how need they going to -- the revenue by focusing on three areas. maria: good point. >> you are seeing first heads starting to roll reducing from 18 people down to 12 people, so that is pretty significant. >> have as we speak.
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>> because they are consolidating this business lines don't need that big a board you have to see what siemens has been saying, main competitor overseas they are saying they are seeing headwinds when it comes to power unit so that is going to be a drag, so we will want to see what they also say about that, now we know health care is a growing area, aviation is a. >> energy was growing two years ago a lot about energy two years ago from immelt saying this is going to drive this company where the growth is look what is happening now they are backpedaling out of that. >> ge was -- cut dividend 2009 a 68% cut only cutting 50% is near a worse at a for him, by the way, with sell-off, glad i mentioned the board, this has to be one of the -- advisers, announcing the company activist investor trying to push for change cutting number from 18 to 12. >> i mean the company is getting smaller but if you
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look back, you have to question, and i don't know who all the board members were, but seems like there was a lot of overspending here at general electric now, they are trying to clean house a good thing, but i think what you are going to see maria the push and pull, between one campus saying all the negative i want to buy ge, under armour 21 a share versus people saying dividend cut from 4.7 to 2.4 i am out i want to sell here. >> 16 out of 57 on presentation, is solely focused on dividend highlights if they kept dividend the same, over 100% of their free-cash flow, would go to the dividend, and now at this rate, it is still high 60 to 70%, of dividend, is coming from their -- >> 8 billion dollars -- >> let me say if you are going to spend 60 to 70% free-cash flow giving back to shareholders how are you going to ignite growth go forward interesting aspect especially
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taking off, titans aviation space boeing honeywell. >> not enough. >> i don't think 50% cut in dividend was expected i some some was priced into the market but 50% is a huge number. >> it is not -- as we see what the actually is it not right is seems like it was -- at least, necessary. now it is may be not enough. >> 8 billion dollars this dividend. >> also just to get back on power side of the business, they actually have to stay in that bought, petitioning french government, m&a transaction would be a mea culpa if they got out already doing mea culpa baker hughes side of the allergic. >> all right we leave it there keep watching the stock trading up, this morning on all this news, in investor presentation is out doing a ge investor day today more headlines may very well come out bulk is out, that is at the cut dividend by 50%, and, of course, saying free-cash flow 67 billion dollars, also
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taking guidance lower, for 2018 coming up setting the stage for takeover battle why. >> caller: reportedly ready to a reject massive 103-billion-dollar offer from rival broadcom today also potential deal in the works in toy business hasbro and mattel back in a moment. ♪
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maria: welcome back, tyson topping forecasts briefing from strong demanded for protein lower comforts to buy animal feed lori at new york stock exchange big story is ge. >> hi you mentioned
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tyson foods. dividend cut, upgraded stock this morning, after hearing that they are cutting the dividend 50%. >> i am sure good news for you, other folks -- ge stock in the background there -- >> really. >> the stock is down 36% last 16 years but you are right i do have ge stock in days at cnbc that lower. >> i think it is changing of the guard, it is attempt to usher in new era, to this
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gigantic company, 126, revenue i think trying to new era, that is going to be a lot more to make them competitive with amazons, microsoft, googles, since ges day. >> certainly, this if you just buying for the first time ever, yes this looks good, that is it. >> first time ever -- not a bad price any know you have more in 10 minutes varney & company right after "mornings with maria." >> coming up, rocking the backs office, despite competition from exorcise how much super hero hauled in we've got it for you stay with us. ♪ ♪
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♪ maria: well we bring qualcomm board of directors unanimously rejecting broadcom unsolicited proposal kwau unequal says board believes the proposal under values qualcomm stock as you see, fractional moves in premarket, on broadcom and qualcomm. this would have been a big deal kevin. >> would have been bigger deal you have seen broadcom become a bigger company because a lot of acquisitions in the space but what is interesting qualcomm is in hand to hand combat right now with apple, concerning some patent litigation what this has to do with us basically, how you get data and information on your phone from i think wireless modem. apple, is fighting tooth and nailed by a off price per phone kwal unequal strike deals over in asia, president trump was over there,
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reaffirmed, that they are doing deals with chinese manufactures best technology i think qualcomm wants to get through the apple fight and see where the chips lie. >> i think, speaking of chips, good segue -- the internet of things connected devices forget just e-sports gage there is a demand for chips in everything from cars to, appliances -- so look at movement in intel, at movement in advanced microdid he vices video the chip area place to watch an over heated area in my opinion an area come up a lot in price, but it is the demand isn't going away with the fact that technology, is coming into all of our lives, is you are going to need chips forward. >> a very good point why wouldn't qualcomm reject this deal, when they are at peak right now, of business, in terms of the need and demand
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for chips. >> i am reading right now from press release no company better positioned internet automotive edge computeer networking semi conduck oar industry we continue to grow, leave the recognition to five g, what ceo said i think that highlights the fact that they reinvent, budget is huge spend significant amount of free cash flow in that reinventing highlighting, but back to intel you mentioned, the internet automotive, bought for a significant amount of money to he focus on autonomous driving broadcom announcing taking headquarters from singapore to u.s. stay with us.
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>> welcome back two main stories cutting dividend to 12 cents shares and rejecting unsoliciting takeover proposal these are two main stories of the day and then tax and the i think ceo has a tough job to do when you're reshaping the opinion of a company the reputation of a company he's got
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to lay out a clear vision that's going to instill confidence in the company for the future and not easy to do. >> real quick loving. >> good to see you everybody right to stuart varney we go and over to you. >> stuart varney i like it a lot thank you very much indeed. decision day for grand dad stock, that would be general electric, and embarrassment dare if the nfl and the president -- [laughter] he issue ors a classic rocket man tweet. [laughter] what a way to start a monday morgue and good morning everyone. look e-look at this g.e. will cut its dividend in half and stock has gone up not much but it had been up more. separately wall street journal says a refocus of the whole company but no breakup anyone over 30 remember the good old days when it was a stock for widow and orphan new guy john plans new era starting now. all right the nfl well there's a new era but it is not good.


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