Skip to main content

tv   Mornings With Maria Bartiromo  FOX Business  February 14, 2019 6:00am-9:00am EST

6:00 am
tomorrow's deadline. president trump insisting that he will make decision on any border wall proposal after he reads it. end of era, will stop production of super jumbo jet and we will tell you why and implications, demanding a refund, gavin nesom putting funding and asking for 3 and a half billion dollars back to the federal government. danger in the air, a delta flight making emergency landing after hitting some severe turbulence. more with inside the plane. mornings with maria begins right now. ♪ ♪
6:01 am
maria: top story this hour, investors are watching trade optimism about a deal between china and the united states, futures are pointing to investigators, steven mnuchin and u.s. trade representative robert lighthizer expected to meet with chinese president xi jinping in hopes of hammering out a deal. reports that the president is suggesting deal by 60 days should the two sides seem to be close in terms of progress, the commander in chief highlighted progress with china yesterday. >> we have a big team of people, very talented of people over in china right now negotiating on the china deal, it's going along very well, we will see what happens, i think it's going along very well. they are showing tremendous respect and something which a lot of countries didn't use to
6:02 am
show the united states, they are showing us respect now. big difference from the old days, i will tell you that. so the deal with china is going very well, the economy is fantastically. maria: joining me right now ae director dan blumenthal. >> yeah, happy to to be here. maria: of course, the president has talked about tariffs and trade issues but the bigger issues we know the theft of intellectual property and forced transfer of technology, espionage given what we learned about huawei and zte, what's your take and what can get done? >> i think they can make a short-term deal that may, indeed, either freeze tariffs or even reduce tariffs. that's just the short-term, the long-term story is going to be pretty ferocious u.s.-china competition for the industries
6:03 am
of the future, that's not going anywhere. maria: that's a really good point. how is the u.s. going to get a step up here because china apparently is ahead of the united states in a lot of important industries in particular ai? >> it is certainly getting ahead and the president signed executive order that's trying to get the united states back on its feet in terms of catching back to china on ai, so much what china has done structural manipulation of economy, the stealing of intellectual property, the ha nippulation of standards of telecommunication and that can't be dealt with in bilateral negotiation in term. maria: yeah, but you can't separate them. these are real issues, how is the u.s. supposed to go about that, what would you like to see even if we were to see a short-term deal with promises for the long term?
6:04 am
you don't think the president would agree that something only includes china buying more soybean. >> well, i don't think he would agree to that. i think what's going to happen mostly is that his chief trade negotiator lighthizer is trying to get restructural reforms that we are talking about, the structural reforms that stop the intellectual property theft, and even if it's not accomplished in the short-term deal the united states will continue on separate track that pushes back against bad behavior by china on the technology front. so i think it's going to go to track no matter what the short-term deal is. maria: are you expecting the president to push this deadline out past march first? >> that's what he indicated and i think he wants to give a little bit more time and he wants to get involved himself, he said, with xi jinping and that's probably right in terms of cementing any framework or short-term deal.
6:05 am
again, i think that you focus on the short-term and the current tariff war and market access issues, but the united states is just not going to let up as a national security matter on dealing with china aztec threat. maria: right, they shouldn't, by the way, because these are important issues and we know that china has been doing this, it's been costing american companies billions, dan, good to see you this morning, thank you for your unsight. >> thank you for letting me be here. maria: dan blumenthal. appear toll unveil streaming service next month. >> maria, we know that this is going to be this really transformation at least that is what tim cook the ceo of apple wants to take apple from a hardware company to a service's one. it's streaming, huge part of it, apple signed with a dozen original creators, including oprah and spielberg but will be offering at the end of march,
6:06 am
end of april, services and products from other places, pbs, also lionsgate stars and others. the unclear are netflix, some sources say that netflix and apple have not agreed on any terms, the other one seems to be in question is hbo so one of the focal points there is that amazon prime has signed deal with hbo which apparently let hbo keep most of the company and that conversation is less certain, one thing is clear, this stock will be traded a little bit more as investors begin to gauge whether or not tim cook can pull off this transition, another thing we have been reporting along with our colleagues tat wall street journal is that apple really wants to save journalism, with that in mind, they are planning to publish a lot of newspapers, but again the fight is about money, how much apple keeps, how much the publishers keep, for example, record according to colleagues that apple wants to
6:07 am
keep 50% from revenues and as we know washington post and others with successful digital pay walls. that may or may not work. maria: i will tell you, dierdre, it's getting more competitive. >> it's going to have content for a long time, we thought it's disney content but now at tend of the day they are adding others. they are disney, apple, amazon prime, it's becoming a crowded space. maria: incredible. dierdre, see you in a bit. one year since deadly shooting in parkland, florida. cheryl, good morning to you. cheryl: seems like yesterday, frankly, florida governor ron desantis has ordered flags to fly half staff, the governor calling for grand jury to look
6:08 am
into whether school districts are complying, security measures put in place after the shooting. 17 students and staff were killed at stoneman douglas high school sparking debate over gun control and the safety of our schools. air bus is ending production of jumbo jet, sales for the world's largest jet is slumping. the a380 slashing order. beat almost stock at almost 4%, cisco manage today avoid major fallout from trade dispute with united states and china. some products were made in china and imported to the united states and we heard from a lot of companies reporting earnings, the forecast on the fears of the
6:09 am
tariffs has certainly been a story line. maria: cheryl, thank you, when we come back bullet train battle, president trump and california governor trading barbs on twitter and now president trump wants federal funds back. after strong winter storms cause nightmare for to passengers, we have the video in two-minute's time.
6:10 am
for every other full-size pickup. and this year, it's déjà vu all over again 'cuz only the ford f-150 with its high strength, military-grade aluminum alloy body gives you best-in-class torque, best-in-class payload... and you got it, baby... best-in-class towing. still leading the pack. this is the big dog! this is the ford f-150. it doesn't just raise the bar, pal. it is the bar. my dbut now, i take used tometamucil every day.sh it traps and removes the waste that weighs me down, so i feel lighter. try metamucil, and begin to feel what lighter feels like.
6:11 am
6:12 am
driverless cars. all ground personnel please clear the hangar. trips to mars. $4.95. hydroponic farms. robotic arms. ♪ $4.95. delivery drones or the latest phones. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. maria: welcome back, big show this morning, coming up west virginia senator and member of appropriations charlie along with tennessee congressman and ranking member chuck is here. take us inside those negotiations on the border deal.
6:13 am
pwc partner neil is with us as well. big show ahead, don't miss a moment of it on this valentine's day. california governor gavin newsom scaled back on project. president trump tweeted this, he said california was forced to cut back on project, they owe the government 3 and a half billion dollars, we want the money back, whole project is a green disaster but then governor newsom fired up, fake news, we are building high speed rail connecting central valley and beyond, this is california's money allocated by congress for this project. we are not giving it back. the train is leaving the station, better get on board. also desperately searching for wall money. decision also one of the top editorials in journal this morning with headline death of california dream. joining us right now wall street
6:14 am
journal james freeman along with forbes media chairman and former republican candidate steve jobs, we are happy to have dierdre bolton this morning. great to have everybody. you are not steve jobs, don't try to be steve jobs. sorry about that. >> steve jobs monetary policy. >> great to be here. maria: let's talk about the op-ed in the article james, your take. >> yeah, this is maybe a preview of the green new deal, this was one of the old green deals that didn't work out so well, you mentioned 77 billion-dollar cost when this started out they said it was going to be 33 billion, now that was obviously a sum now close to 80 billion and i'm proud of my colleagues and mainly alicia finally that's been on this for years and we would get letters from california officials when we would say the bullet train to nowhere makes no sense, it's not
6:15 am
going to be economic, it's going to have to be heavily subsidized and so when the governor is talking about oh, no, we are building the train, he has decided to keep one useful unprofitable root, no economic, political decision, it's going to waste more money but not as much as originally planned. >> a rock in a hard place. what did he have to do? instead of full-out retreat the best thing is limiting it. >> the whole thing was jerry brown's pyramid, built pyramids for themselves. evidence that it's not going to work. whole thing of mass transits makes no sense at all. tells you where you have to go and where you get to where you go, you still have to have a car and people love the flexibility of the automobile, get over it. maria: sounds like the big green deal coming out of washington alexandria ocasio-cortez.
6:16 am
>> 77 billion, i will tell you it would cost 110 billion. >> newsom wants to spend money on other things. what we are seeing tax cut, this is the first moment where politicians are responding to reality, maybe we have to be more sense i believe. that would be the hope here. >> the governor said in the speech that we have to get real, i hope he gets real about single-payer for health care, that's the pyramid right now. maria: also sanctuary city and the cost around that. there's no secret about how much that was going to cost, all of a sudden it's too expensive and they can't afford it. >> if it had worked for the original price of 32, maybe interesting if you talk to enough people who drive in california, a certain amount of interest at 33 but maybe not at 77 and then the 77 doesn't work.
6:17 am
>> well, they don't like highways in california amazingly. a state with 38 million people in the highway system made accommodate 8 to 20 million people, that's what happens when governments are in charge of infrastructure, they always fall behind. the railroad system in the country freight railroad system, the best in the world, private hands, government doesn't get too involved in it and it works. maria: you say it doesn't work in california in. >> well, what doesn't work in california is this whole idea that mass transit can get around the fact that they need more sophisticated highway system, designed 18 to 20 million people and they haven't kept up on it. they could have done a whole slew of things with traffic mess. maria: if he can you not use the money for this reason, for rails, would he be force today give the money back?
6:18 am
>> the california governor -- there's column in editorial that méxico will pay for the wall. maria: right, right. >> sticky fingers, that's why he kept that thing in valley, has no use whatsoever just to keep federal money. maria: coming up raising to overt government shutdown, then tesla is stepping up his game, automaker adding new safety features that would protect your dog, back in a moment with that.
6:19 am
6:20 am
comcast business built the nation's largest gig-speed network.
6:21 am
then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast.
6:22 am
maria: welcome back, battle over border security head today vote today, lawmakers racing to overt government shutdown. president trump reportedly expect today sign the bill, he's also looking for other ways to fund the finishing wall. >> as we review the new proposal from congress, i can promise you this, i will never waiver from my sacred duty to defend this nation and its people. we will get the job done. the wall is very, very on its way, it's happening as we speak, we are building as we speak. maria: joining me right now west virginia senator shelley, good to see you, senator, thank you so much for joining us. you have been involved in the talks from the very beginning, let me ask you, do you expect the president, first, to sign this today? >> i think the president will sign this. we have given him a good down payment on most important aspect
6:23 am
and that being wall, provides for more border agents and technology, i think the president will sign this and i'm encouraging him to do so. maria: i want to ask you to tell us more about that, where specifically is this extra money that the president is referring to that he can use to pin together a bigger, bigger sum for a finished wall and how much money are we talking about? >> well, first, let's look at what's in the bill, 1.375 billion which would provide for 55 miles of new fencing barrier wall and that is the largest amount that we've ever had in a single bill moving forward. the president, i believe, after he signs this will begin to look at other pockets of money possibly in the dod budget and others that would provide for fencing to obstruct narcotics and other things and so i think he has flexibility there.
6:24 am
i'm not sure of the exact amount, we will wait to hear what he has to say about but this is all within the framework of securities, securing our border and preventing the trafficking of drugs an sexual trafficking. maria: i understand that, i understand that there's something like half a billion dollars in confiscated drug money, is it much more than that? is it more than half a billion dollars? >> i would say it's more than half a billion dollars if you're looking at that pocket possibly that's what you're looking at i. if you're looking at somewhere else, you could be looking at more money. >> the whole immigration debate dealing with the dreamers, for example, the president could really ditch democrats by saying make the dreamers illegal and go on offense? >> if we keep it as clean as possible and get over hump of 7
6:25 am
months of funding we could look at bigger package. we have to do something about the daca, the dreamer folks but there are other loopholes as you know in the immigration system that we really need to fix, we need to look at a bigger package and this is where, i think, the president could be forceful. >> james freeman at the wall street journal, to follow up on steve's question there, there was never kind of a moment in these negotiations with the democrats say, okay, we will give you wall money but we want permanent status for the dreamers, we want more h1b visas, we want more guest worker, anything on the policy end, they really never asked about that -- >> i was surprised it didn't become part of the conversation, early on it looked like it might be a way to boost the border and the barrier money from the zero that nancy pelosi promised but i think what we -- what came to -- came to be is many folks particularly on the
6:26 am
appropriation's committee felt that border security must include a barrier and so daca was taken off the table as a bargaining chip. >> senators dierdre bolton following on james' point, i've been speaking with business people saying e-verify was down during shutdown. >> this was encompassing everything, more border agents, customs agents, 600 more customs agents, more money to screen trucks and cars coming in. for me addiction issues with heroin and fentanyl and other things, this is very much a comprehensive bill and i think it gives good flexibility in there in case we need more ice beds, the president can move up and we can reprogram money to homeland security to get the number of beds up there. so i think it's a compromise.
6:27 am
it's not everything but it's a satisfactory way to move as down payment for president. maria: during your conversation, senator, did you get a sense that there was an increasing desire to work with the president or did you still feel that resist, resist? i'm wondering if there's real division within democrat party, nancy pelosi was digging in but i felt different sentiment from freshmen and others on the democratic side, what did you feel during your talk? >> well, it was interesting, if you look at comments that was made two weeks ago, republicans and democrats basically said it's leader pelosi and the president would let us negotiate as congress which is what we do every day, we could come to a logical conclusion and that's exactly what happened so within our small 17-might--
6:28 am
while we have a problem it's better. maria: good to have you on the show this morning. >> thank you all. maria: coming up a midnight flight nightmare after severe turbulence injured passengers. the quarterback joe flacco traded to broncos, the fallout right here. ♪ ♪
6:29 am
to be nobody but yourself in a world which is doing it's best to make you everybody else... ♪ ♪ means to fight the hardest battle, which any human being can fight and never stop. does this sound dismal? it isn't. ♪ ♪ it's the most wonderful life on earth. ♪ ♪
6:30 am
6:31 am
6:32 am
maria: welcome back, good thursday morning, everybody, thank you so much for joining us, i'm maria bartiromo, happy valentine's day, top story right now 6:32 a.m. on the east coast. china trade talks are underway. u.s. trade representative lighthizer and steven mnuchin meeting with chinese counterparts in beijing trying to make deal before march first deadline, new report says that the day could fly, we are looking for opening, take a look. dow industrials up 100 points. s&p 500 is up 8 points and nasdaq up 26, another third of a percent higher on the nasdaq after the market finished higher yesterday, across the board
6:33 am
gains, take a look. 17-point move higher, 1 half of 1%, s&p 500 was up 8 and nasdaq up 5 points. i europe this morning momentum continues, dax up 39. asian markets fractional moves in korea. heading for a vote, lawmakers to vote for suiter -- security deal today. >> as we review new proposal to congress, i can promise you that i will never waiver from my sacred duty to defend the nation and its people. maria: latest coming up on the bill, danger in the air, delta flight makes emergency landing, we have pictures from inside the plane. new features from tesla this morning, rolls out security
6:34 am
features to protect car and your dog, plus the teen trading super bowl winning quarterback joe flacco, fallout on both teams, first top story this half an hour, markets are moving in hopes of trade deal with china and deal to avoid government shutdown. joining us capital founder ben, happy to see you. >> happy valentine's to you and my wife. maria: thank you so much. we know your focus on activism but first give us broader outlook, what are you looking at in terms of moving markets, what's important to you? >> we said we need today play defense and now we have a big correction, and now we have snapback, prices this year driven by technicals and feds backing off of rates. we still rates will move higher. we have seen the lower-quality companies the fastest in
6:35 am
december, moved back higher, the companies that we follow generally across the board are giving guidance and investors need to play defense, does create opportunities on the long and short side, for us we are seeing opportunities on the short side given high valuations particularly for lower-quality businesses. >> i'm wondering how many opportunities there are, the big question for people when interest rates rise, how many companies are not going to be profitable or are not going to be sustainable, how many are riding this monetary wave and are not real businesses. >> we think a lot particularly in tech sector where we had success last year and this year looking at companies justifying caps by spending heavily now and losing hundreds of millions of dollars today in the hope that in the future will be profitable. they are capital-dependent business on equity oh or cheap
6:36 am
credit. when equity market and fed pulls back they would be struggling a little bit. >> how many can be rescued, let's pretend the trade issues are dealt with, border is dealt with and we get investment moving again which slowed down in fourth quarter because of uncertainty is that going to rescue the companies even if interest rates go up? >> that's clearly what we have seen in january and february, that was to my point i made earlier, a lot of companies that sold off really hard late last year have rebounded even stronger the beginning. >> in terms of their own businesses, are they going to actually see higher revenue and not just ride the hopeful wave of better times ahead? >> we do think the consumer is sort of struggling to keep inflation and wages have been slow growing, we do -- maria: we are talking about the best economy we have seen in a long time, look at where
6:37 am
unemployment is, look at where sentiment is. economic growth is even -- even where the earnings have been better than expected for the fourth quarter. >> true, i think earnings have been dated by share buybacks, the chief interest rates have allowed companies to lever up and buy back their stock, we look at the earnings quality, the quality between gap and nongap earnings and low-tax rate and lower share count or topline organic growth adding real value to the bottom line is where we try to discriminate between a good, bad business. >> you are investing in companies that are research heavy, can you give us an idea that maybe people at home could begin to think about or act, is there anything in the market that's widely held, this is a buyer or this is a sale? maria: or even on the short
6:38 am
side. >> it's technology spin on auto businesses, drive time that couldn't go public a number of years. maria: i have seen the commercials. >> they are trying to create a new way to sell a car, you go to vending machine and buy a car, they are losing $300 million a year, they are dependent low subprime quality buyers to come in and sell loan which is are profit which we don't quite understand how they do that but right now yesterday the fed had put out research auto delinquencies are at multiyear high and auto loans are, you know, trillions of dollars, we are starting to change that a little bit, consume rers struggling to make payments when they own a car that's depreciating. >> how many consumers will be hurt as rates go up and suddenly mortgage payments go up on all the mortgages that are still out, is it less bad this time? >> it's hard to say, certainly i lived through that and we all listed through that.
6:39 am
maria: you don't know it does bad as '08? >> certainly there's sign that is we are heading in that direction, quantum debt outstanding to consumer and for the country larger than it's ever. >> you were talking about how auto loans, the number is creeping up but mortgage is not so much. >> yeah, look, we are not housing experts to say, i'd rather -- stay to what i know on the auto sector but, look, i'm not predicting financial crisis today or tomorrow, i don't have the crystal ball but do i get back to my belief that investors need to play defense, we are in later stage of cycle here and you have to be careful and the price you're pay if for stocks that you own in portfolio. maria: we are going to see the health of the son assumers, retail sales numbers out, any
6:40 am
expectation there? >> no, consumers i think did pull back a little bit in november and december when they looked at equity portfolios and saw them down 20 or 30%. maria: retail holiday scn was a pretty good one. >> yeah, i think, you know, all the factors don't necessarily come into play to our view on looks at particular companies that are problematic, we don't have anything in retail sector. they certainly quite be good but, again, i think where we are in the cycle my main message is investors need to be playing defense and careful. maria: we will take a look at carvana. good to see you, ben joining us there. scary scene in the sky for delta airlines meanwhile, cheryl casone on headlines, cheryl. cheryl: not a line you want to hear, drama on two separate delta flights, first flight to seattle, 3 people rushed to the hospital after severe turbulence forced emergency landing, that
6:41 am
turbulence tipped over a drink cart caused mess in cabin, injuries on board still unclear. the flight from california safely touched down in nevada and delta has apologized for that and then another emergency on a delta flight in new york city, an overheated battery reportedly from a pen caught fire, passengers were put on a different plane. the plane was on its way to houston. shares of delta airline down 4% in the past year. well, elon musk knows customer is always right, potential customer last october sent tweet asking musk for a dog mode, like puppy mode in the tesla model 3, the model comes with feature that keeps the air-conditioner on that keeps pet cool while the driver is running errands.
6:42 am
hey, this guy is safe, tesla rolled out asecurity feature that blasts classical music if the car detects it's being broken into, yeah, they made that up and i didn't. maria: in the car? there's that too? come on. cheryl: that's exactly what i was thinking, i was trying to be polite. happy valentine's day, maria. growing number of scammers using cupid's arrow to target victims, people tricked for sending money, the victims lost 140 million and so ftc -- maria: incredible. that really is, you know what it reminds me, cheryl, dierdre, i want to get your thoughts on this is senior scams.
6:43 am
>> the age range is more older americans that are getting scammed, maria. maria: there you go. >> no, that's really fine. with the report seems like people over 70 who were targeted, most vulnerable, lost the most money and next level down was people between about 40 and 70, so -- maria: $140 million. >> that's a lot of money. [laughter] maria: record production in texas, latest numbers on oil output after this, major meltdown in court, very angry game last night, we will tell you what got him so heated. i know that every single time that i suit up, there is a chance that's the last time.
6:44 am
300 miles per hour, that's where i feel normal. i might be crazy but i'm not stupid. having an annuity tells me retirement is protected. annuities can provide protected income for life. learn more at retireyourrisk.org annuities can provide protected income for life. that have made the rx the, crleading luxury suvhnology of all time. lease the 2019 rx 350 for $449 a month for 36 months. experience amazing at your lexus dealer. ♪ ♪ put your data to work on the cloud that drives business.
6:45 am
the ibm cloud. the cloud for smarter business.
6:46 am
6:47 am
maria: welcome back, headlines across america now, the houston chronical reports today new report texas crude oil production has broken the 1970's record, texas oil wells produced more than 1 and a half billion barrels of crude last year according to annual report, broke record 1.28-barrels -- 2.8-barrels set in 1973. to leaders impose ban on e-scooters, the city council voting from preventing companies to setting up and offering the scooters, the albuquerque
6:48 am
journal that new mexico house passed minimum wage, could climb to $10 an hour this summer. it would set up future wage increase each summer, interesting there, steve forbes. >> you bet. what it does and the journal is on it too, setting up underground market for labor when the people can't pay these kind of a mandated wages, guess what, they work off of the books that way you don't pay taxes and then also hurts job opportunities especially in the state like new mexico which is not your richest state in the union. why they go against all the evidence what you see in europe and elsewhere and opportunities for the kids and make a lot of small businesses lawmakers, amazing. >> yeah, the time asking weird too, not that there's ever a good time for government to set price of labor, companies are looking for workers, raising
6:49 am
wages, earnings rising faster than inflation so it's especially now a problem that doesn't need government solution. maria: all right, we will take a break, when we come back, quarterback joe flacco trading and drama on the court, steve kerr ejected from game last night. we will tell you what it is. ps and helps stop the progression of joint damage. for people with moderate to severe psoriasis, 90% saw significant improvement. taltz even gives you a chance
6:50 am
at completely clear skin. don't use if you're allergic to taltz. before starting, you should be checked for tuberculosis. taltz may increase risk of infections and lower your ability to fight them. tell your doctor if you have an infection, symptoms, or received a vaccine or plan to. inflammatory bowel disease can happen with taltz, including worsening of symptoms. serious allergic reactions can occur. for all the things that move you. ask your doctor about taltz. woman: friction points, those obstacles that limit a company's growth. i try to find companies that turn these challenges into opportunities. it's these unique companies with creative business models that will generate value for our investors. that's why i go beyond the numbers. that will generate value for our investors. this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments
6:51 am
in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today.
6:52 am
maria: welcome back, broncos making trade with ravens for new quarterback, jared max on sports, jared, good morning. jared: broncos are still looking for a starter that they can stick with and they will get joe
6:53 am
flacco from baltimore ravens, johnson took job in mid-season in baltimore. 10 million-dollar in salary cap space. trading super bowl mvp to broncos. steve kerr normally a cool but last night fourth quarter not the case, warriors last to blazers. golden state with a flagrant foul and the warriors lose by 7. milwaukee brewers try to keep home field advantage when it comes to playing chicago cubs, the brewers are now presales, they tweet any claim that presale is intent to get brewers tickets are pretty accurate.
6:54 am
tomorrow 9:00 a.m. central time. tickets only available to wisconsin residents initially. last year brewers hosted the cubs in one-game playoff miller park, chicago only 90 miles away. wwe hall of famer, wrestler, booker, lawsuit against activeition -- activation blizzard and last year call of game of duty, activation on persona. hey, he didn't give them per permission. >> people are addicted to fortnite, 100 million like 7 years for call of duty. >> everybody plays that. i know baseball teams are involved in it, anybody play?
6:55 am
>> i've never played. >> i hear it a lot in my living room, i do not play. >> maybe less graphic. >> a lot less gruesome which is why parents -- >> whatever to donkey kong. >> my kids use today play that back in the day. >> donkey kong. going back to football, what's with denver broncos? >> he keeps going for older quarterbacks and nobody seems to make it work, it worked for the vikings and not to broncos, flacco appears to be on the downside of the here. >> that's what they said that about peyton manning. i'm a broncos fan. >> really? maria: good stuff, jared. jared: happen valentine's. maria: catch jared fox news
6:56 am
24/7, radio siriusxm 115, tomorrow dagen mcdowell will be live from daytona, she's headed there now, she's interviewing nascar star stars, jeff gordon ahead, don't discuss dagen mcdowell tomorrow. robot bites the dust after 15 years on the red planet, next hour mornings with maria. as a fitness junkie, i customize everything - bike, wheels, saddle. that's why i switched to liberty mutual. they customized my insurance, so i only pay for what i need. i insured my car, and my bike. my calves are custom too, but i can't insure those... which is a crying shame. only pay for what you need.
6:57 am
♪ liberty. liberty. liberty. liberty. ♪ . . . i hear it in the background and she's watching too, saying [indistinct conversation] [friend] i've never seen that before. ♪ ♪ i have... ♪
6:58 am
6:59 am
my dbut now, i take used tometamucil every day.sh i have... it traps and removes the waste that weighs me down, so i feel lighter. try metamucil, and begin to feel what lighter feels like.
7:00 am
maria: welcome back. good thursday morning, everybody. thanks so much for joining us. i'm maria bartiromo. it is thursday, february 14th. your top stories. headed for a vote, lawmakers are set to vote on the border security bill today, racing to avert a government shutdown. president trump say he will make the decision after he reads it. robert lighthizer and n steven n mnuchin meeting with chinese counterparts in beijing. >> we have a team of people in china right now, negotiating on the china deal. it's going along very well. we'll see what happens. i think it's going along very well. maria: we're looking at a higher opening for stocks this morning. there's a gain of better than 90 points at the start of trade, s&p 500 is up 7 right now,
7:01 am
nasdaq is up 26. cokcoca-cola earnings hitting te tape right now. revenue is above expectations, earnings in line with estimates at 43r 43 cents a share. yesterday at the close, dow industrials up 117 points at 4:00 yesterday, one-half of 1%. s&p up 8 and nasdaq up five and three quarters. in europe, markets are higher. fq100 up 28, cac in paris up 35, the dax index also higher by 35 points. asian markets mostly lower overnight. the breakout was korea, the kospi index up better than 1%. a clash on the hill, democratic congresswoman ilcongresswoman i, we'll have details on this fight. google says it will invest billions to expand in the country. we'll tell you where and how
7:02 am
coming up. joining me to break it down, deedeirdre bolton, james free fn and steve forbes. great to see you this morning. >> good to be with you. thank you very much. >> good to be here sounds like they have a budget deal. i wish they would stop spending so much. at least they agreed to what to spend it on. maria: $22 trillion in debt. this week we learned the latest number. >>.>> you're saying we deserve a credit down grade? what's going on? >> the president's gotten a lot of wins. one nonwin is the lack of spending restraint. let's hope this year or next we see some of that. >> the only way you'll get real spending resnrain restraint in e is reform of entitlements. most of the proposals on reform
7:03 am
is a root canal without anesthesia. there's no way you're going to take away existing benefits. maria: i feel like president trump is the kind of president if he were reelected he would attack it next term. >> he would attack it, instead of a root cay canal approach, e positive approach, a new social security system for younger people, where part of the payroll tax goes to your own personal account. when those kids retire in the future they'll have more benefits than they get from the currenciecurrent system. maria: what else would you do? would you lower the age for the current people who are taking it? >> no, don't do anything that smacks of taking away any benefit. that's a political loser, trench warfare. go for younger people. americans spend almost $400 billion a year out-of-pocket on healthcare, huge consumer market.
7:04 am
a whole new industry starting to rise up and it's going to profoundly change healthcare. >> in the private sector, jamie dimon, bezos, warren buffet, i haven't heard anything since, there was talks we're going to try to figure this out. >> most every company has higher premiums. >> of course. >> you have to pay the copays that are higher. that's why having health savings accounts, that's creating consumer markets. consumers are aware of what things are starting to cost. >> this new cbi report, healthcare cost increases were very moderate. that's maybe the beginning of a positive trend. maria: big story. what were you going to say? >> there's a surgery center of oklahoma, they don't take insurance. their rates are so low, oklahoma state employees go there, even though they don't get reimbursed, they save money from what they would at a regular hospital. they post prices online.
7:05 am
you'll see more of that. maria: you'll have to see acknowledgement of the spending at some point. our top story this hour is the clock is ticking to avert another government shutdown. it is unlikely. the house is set to vote today on border security legislation compromise. president trump reportedly expected to sign the bill, saying he does not want to see another shutdown. >> we're going to take look at it when it comes. i don't want to see a shoulddown. shutdown would be a terrible thing. i think a point was made with the last shutdown, people realized how bad the border is, how unsafe the border is. i think a lot of good points were made. i don't want to see another one. floss reason for it -- there's no reason for it. we'll look at the legislation when it comes and i'll make a determination then. maria: joining us right now is tennessee congressman, chuck fleischman. it's good to see you. thank you for joining us. >> good morning. maria: what happens next? you are expecting the president to sign this today? >> i hope so.
7:06 am
i really do. i want to give the benefit to the president. i spoke to the white house yesterday. of actually reading through this document to make sure as he said there are no minefields in there. i agree with him for being cautious. but yes, ultimately i think we need to look at where we are. it's a very difficult situation from where we were three weeks ago, we have made progress on the wall, on i.c.e. the bill does a lot of other things that are not talked about. it protects the pro life riders in the last republican congress. it has unprecedented aid for israel which i think is very important right now. there's a lot of good in the bill. are there some things in the bill that i don't like? of course. but this is not the bill that i would have drawn but this is the bill that i think we need to keep the government open and keep the american people safe. maria: let me ask you. the wall can only -- you can only build 55 miles in one year, right? you can only allocate or use $13 billio$1.3 billion in one y.
7:07 am
is that right? are there plans for the next window of opportunity when the issue gets on the table to raise those numbers? >> absolutely. some people called this a down payment on the wall. i call it a continuing installment payment on the wall. the wall is being built. it's under construction. i've seen it in several venues. that's very important. so this is continuing the progress. as much as i would like to see? absolutely not. remember what speaker pelosi said a few weeks back, no money for the wall. ladies and gentlemen, there is a lot of money tore th for the wa. there will be more money for the wall and the barrier and other key national priorities. >> steve forbes here. do you think the democratic far left will go bonkers that the president got $1.4 billion, he didn't get the 5, but more than what they wanted to give him. >> i wish you could talk to the poor folks on the democratic far left, you would talk sense into them about the mandatory
7:08 am
spending problems you alluded to earlier in the show. they're not going to support this. they can't because it's a defeat for them. and they're not -- >> this is a defeat for them. >> any appetite on doing something on h1b visas for high tech and the dreamers? >> not the dreamers. the democrats took daca off the table early. >> the republicans can push it back for the future, can't they, put it on the table and say you keep talking about it, democrats, the president could run with the issue, really put them on defense. >> well, they are on defense. and i think what they're probably going to do, steve, is ultimately put some type of bill on the floor that can't pass or can't pass both houses and won't get signed by the president to run for political cover. and that's not the way to deal with the national crisis of immigration. in regard to the visas, we want to make sure that america legally continues to attract the
7:09 am
best talent the world has. we've done it in the past. we have to get back to a point where we can attract on a very strong merit-based system, good talent. we don't want to lose that talent when it comes here because they will go elsewhere and that will hurt the country. maria: that's why the tech sector is upset with this administration, james. >> i would hope eventually these immigration issues, which all these politicians keep telling us are important, actually get addressed. but congressman, i know the appropriations committee is not the place to look for spending restraint but getting back to steve's question, i'm wondering is there an appetite, do you see a possibility this year and next that -- after that big spending blowout of the last year, maybe there's some moderation imposed? >> well, i'd suggest actually the appropriations committee is the place where exactly you would want to look for spending restraints and spending cuts. >> i'm not optimistic that you
7:10 am
and your colleagues are going to do it but you think it might happen 1234. >> the vast majority of the spending is created by the mandatory spending, that's 70% of our budget. appropriations budgets are getting squeezed. 1980, 70% of the spending was on the discretionary side. appropriators had more money to allocate for defense, for education, whatever you wanted. maria: we understand that, congressman. we understand that. >> so the appetite is there to be responsible, use restraint on the discretionary side. but my concern is we fall right under the constraints of the budget control act. right now in fiscal 2020, what is that? it's a dreaded sequester where we have to address it right away. >> what's so wrong with the sequester. that was that one wonderful time where the government spent less money than it had the previous year. i think for two years in a row, right? >> the problem was it just
7:11 am
addressed the discretionary side of the budget and continued to squeeze national priorities. defense was squeezed. when you saw the draconian effect on our friends and the men and women who fight in uniform, i talked to generals, to admirals, enlisted personnel who said please break this dreaded sequester. we are in a situation where we're hurt. >> any hope for entitlement reform in a trump second term? maria: not in an election year, we know that. >> donald trump is a problem solver. he's courageous. he takes on issues that republicans and democrats have not taken on for years. whether you agree or disagree with him on the trade issue or whatever issue,ism gracious, he', immigration,he's been willd address the issue. >> is the republican caucus looking at ideas on entitlement reform or is it something they're going to wait on? >> we've been looking at it for years.
7:12 am
that becomes an i got you game in american politics. once people start talking about the mandatory side of the equation, and we have to add in other things on that. in addition to the entitlement programs, you've got interest on the national debt. god forbid if interest rates creep up and they're higher than they were, fortunately we've not seen them go through the roof, if you're a borrower, it's going to kill us. maria: before you go, are you expecting a deal with china by march 1? do you think the deadline is going to get extended? >> well, first of all, the president was right to address the chinese situation. it's a disgrace. so i'm going to let his administration continue to do that. i deally we would hav -- idealle would have a deal by march 1s march 1st. if not, talks could continue. fortunately, china is starting to realize they can no longer abuse the united states. the key issue in the negotiations, we want to protect our intellectual property. if someone in the country
7:13 am
produces something, creates something -- maria: how are you going to do that? isn't this a culture? they've been stealing for decades? how will you get a commitment to change that? >> the first thing is to get a commitment and go back to a trust but verify trade policy. maria: okay. congressman, it's good to see you this morning. thanks so much. >> always a pleasure. maria: drama on capitol hill, congresswomacongresswoman iilhas with elliott abrams. wait until you see this. google set to spend billions of dollars here at home in a major expansion. we'll bring it to you, next up. ♪ all i want to know. ♪ what do you need. ♪ when you nod your head yes but you want to say no. ♪ what do you mean. ♪ hey, yeah. ♪ ♪ driverless cars. all ground personnel please clear the hangar. trips to mars.
7:14 am
$4.95. hydroponic farms. robotic arms. ♪ $4.95. delivery drones or the latest phones. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. to be nobody but yourself in a world which is doing it's best to make you everybody else... ♪ ♪ means to fight the hardest battle, which any human being can fight and never stop. does this sound dismal? it isn't. ♪ ♪ it's the most wonderful life on earth. ♪ ♪
7:15 am
7:16 am
maria: welcome back. google announcing a major
7:17 am
investment in the usa. cheryl casone with the details. cheryl: google is going to spend about $13 billion to expand its data centers and offices in the united states this year. this will create more than 10,000 construction jobs and tens of thousands of jobs to the company's workforce. among the changes, do ge googlel double the head count in virginia and georgia and they will open data centers in ohio, nebraska and nevada. paul manafort's plea deal is now void. he could face more jail time than he bargained for. a federal judge ruled that manafort intentionally lied and made false statements to the fbi and the grand jury. hanmanafort's lawyers have denid this. there is a hearing scheduled for next month. nasa is saying good-bye to the opportunity rover on mars after
7:18 am
a 15-year mission. the 400-pound, $400 million rover was designed to last only 90 days. nasa suspended efforts to revive the rover after there was a planet-wide dust storm last summer that cut off communication with the rover. opportunity has sent ground-breaking images of mars' surface back to earth. the curiosity rover is still on mars and they're going to be sending another one in 2020. the dream of going to mars continues. maria: that's cool. cheryl: the pictures have been great from rover. we're going to miss that one. maria: coming up, a recall alert. ford is recalling more than 1 million pickup trucks that can down shift without warning. levi strauss plans to go public this year, details on that ipo. back in a moment. ♪ can't you see. ♪ can't you see. ♪ what that woman's been doing
7:19 am
to me. ♪ i'm going to find me. ♪ i'm a veteran
7:20 am
7:21 am
and the army taught me a lot about commitment. which i apply to my life and my work. at comcast we're commited to delivering the best experience possible, by being on time everytime. and if we are ever late, we'll give you a automatic twenty dollar credit. my name is antonio and i'm a technician at comcast. we're working to make things simple, easy and awesome.
7:22 am
♪ baby, i need your loving. ♪ got to have all your loving. ♪ baby, i need your loving. ♪ got to have -- maria: expecting a big open this morning. 2019 on track to be a big year for the ipo market. levi strauss the latest company to file for a initial public offering. they made the announcement yesterday. joining us now to assess the story is head of financial services, neil darr. good to see you. >> hello. hillary.maria: tell us what's d the big boom in ipos this year. >> last year we had over 200ipos. they did pretty well in the
7:23 am
marketplace. december came, a lot of market volatility, government shutdown. we've been boxed out for a couple months. i think once year-end earnings come through, i think you'll see a big flow of ipos into the back end of the first quarter, second quarter. maria: talk about what's behind that. is it the deregulatory efforts by the administration? is it the tax cut plan? >> well, there's a lot of good companies out there that need access to capital. you have a lot of private equity sponsor backed companies that will come into the marketplace. there's a lot of large tech companies that it's time for them to come into the marketplace. you'll see some of that activity. i think there's a general atmosphere in relation to getting deals done before maybe the economy slows down. maria: the wall street journal headline this morning, bank mergers get faster under trump, this coming after last year's deal between sun trust and bb & t, creating the sixth largest bank. >> we're wondering, are these specific policy changes or just kind of a different tone and expectation in the market that
7:24 am
washington is not going to attack some merger agreement? >> on an overall basis we're living in a bit more of a deregulated environment from a business standpoint. you see that on the ipo and m&a side, absent government shutdowns and things. i think with this bank merger, look, we've been talking about this for a while, that the big banks have -- are able to invest in data, technology, innovation, marketing, while the regionals can't do as much. so there's a classic synergy play with a merger of these sizes. >> you expect to see more to come it sounds like? >> i think this will be the first of quite a few that will come into the marketplace. they have to compete with the large banks. the large banks are able to do so much more from an investing standpoint. >> will we get back to normal where the u.s. has more ipos than china? >> we're trying. >.>> venture capital, you can incubate a capital, know you
7:25 am
have an exit instead of having to hold it for ten years. >> you're seeing companies looking more to the ipo markets as a mechanism to get capital. we have a lot of private markets that give us access to capital to fuel some of these growth companies. >> one of the strange things that's happened, in the last 20 years, the number of listed companies has declined in half. is that going to reverse now? >> again, we've had the private markets that have actually funded a lot of these companies as well. we've had different dynamics. maria: was it also because some companies didn't want to go public because of the regulatory environment. >> that clearly existed. post sarbanes, there has been a feel that in relation to -- there's a lot to do, there's a lot of expenses associated with being a public company and liability for management. >> any more reform on sarbanes-oxley? >> we'll see. >> liberation. >> we'll see. >> any movement in congress or among regulators to try to chip away more at that, which really killed the ipo market. >> well, in many respects regulation and actually -- it's
7:26 am
put more rigor around new companies coming to market and i think you'll see most of that -- there has been relaxation in relation to the jobs act from a couple years ago, was meant to spur ipo activity in a more deregulated environment. >> so it's definitely a big year for ipos or is it still a little bit of a holding pattern as people wonder how china gets resolved, how global growth is, what happens with interest rates or is it kind of baked in the cake. maria: how much uncertainty is out there? >> i think if we have a good business economy there's a lot of companies that will want to come out in the second and third quarter and want to get in before a downturn in the economy. maria: are you seeing that in financial service as well, fin tech oring in like that? >> fin tech, technology in general is fueling a lot of these companies coming into the marketplace. we'll continue to see that. maria: good to have you on the show. coming up, a fiery exchange on capitol hill. congresswomacongress ilhancongrr
7:27 am
clashes. fortune is out with the top best 100 companies for employees. wegman's number three. we'll count it down, tell you who took the top spot, couling up. coming up. ♪ i told you a thousand times. ♪ you can't knock me on my feet when i'm already on my knees. ♪ i'm flat on the floor with my head down low. those obstacles that limit a company's growth. i try to find companies that turn these challenges into opportunities. but by going out in the field, and meeting management, suppliers, competitors. in the end, it's these unique companies with creative business models that will generate value for our investors. that's why i go beyond the numbers.
7:28 am
[indistinct conversation] [friend] i've never seen that before. ♪ ♪ i have... ♪ i have... metastatic breast cancer is relentless, but i'm relentless too. mbc doesn't take a day off, and neither will i. and i treat my mbc with everyday verzenio- the only one of its kind that can be taken every day. in fact, verzenio is a cdk4 & 6 inhibitor for postmenopausal women with hr+, her2- metastatic breast cancer, approved, with hormonal therapy, as an everyday treatment for a relentless disease. verzenio + an ai is proven to help women
7:29 am
have significantly more time without disease progression, and more than half of women saw their tumors shrink vs an ai. diarrhea is common, may be severe, and may cause dehydration or infection. before taking verzenio, tell your doctor if you have fever, chills, or other signs of infection. verzenio may cause low white blood cell counts, which may cause serious infection that can lead to death. serious liver problems can occur. symptoms may include tiredness, loss of appetite, stomach pain, and bleeding or bruising more easily than normal. blood clots that can lead to death have also occurred. talk to your doctor right away if you notice pain or swelling in your arms or legs, shortness of breath, chest pain or rapid breathing or heart rate. tell your doctor if you are pregnant, breastfeeding, or plan to become pregnant. common side effects include nausea, infections, low red and white blood cells and platelets, decreased appetite, headache, abdominal pain, tiredness, vomiting, and hair thinning or loss. i'm relentless. and my doctor and i choose to treat my metastatic breast cancer with verzenio. be relentless. ask your doctor about everyday verzenio.
7:30 am
♪ ♪ our new, hot, fresh breakfast will get you the readiest. (buzzer sound) holiday inn express. be the readiest.
7:31 am
welcome back. good thursday morning. happy valentine's day, everybody. thanks for joining us. i'm maria bartiromo. it is thursday, february 14th. your top stories right now. china trade talks are under way. robert lighthizer and steven mnuchin meeting in beijing today, trying to make a deal before the march 1st deadline. there's optimism over the talks leading to markets trading up this morning. dow industrials up better than 100 points right now, s&p 500 is up 9, a third of a percent, and the nasdaq is up 31 points right now. on top of the big day yesterday, all the major indices higher with the dow jones industrial average up another in the triple digits, 117 points higher yesterday at the close. the s&p was up 8 points and the nasdaq was up 5 and three quarters points. in europe this morning, the momentum continues. fq100 up 32 points. the cac in paris is up two-thirds of a percent, and the dax index in germany up 25.
7:32 am
asian markets mostly lower overnight. korea was up better than 1%. the others lower by a fraction. heading for a vote, lawmakers are set to vote on the border security bill today, racing to avert a government shutdown. >> we're in very good shape. we're going to take a look at it when it comes. i don't want to see a shutdown. a shutdown would be a terrible thing. maria: we have the latest on the bill coming up this morning. recall alert, ford motor recalling more than a million pickup trucks over the possibility that you could lose control of the vehicle. what you need to know, coming up. the best companies to work for, salesforce and cisco systems make the top 10. we'll tell you who came out at number one, coming up. disney's bringing back frozen, the p company dropping the first trailer for the sequel, frozen 2. we've got it right here. our topl top story this half ho, crisis in venezuela. elliott abrams clashed with ilhan omar during a hearing yesterday. watch this. >> yes or no, do you think that
7:33 am
massacre was a fabulous achievement that happened under our watch? >> that is a ridiculous question. >> yes or no? >> no. >> i will -- i will take that as a yes. >> i'm not going to respond to that kind of personal attack. maria: juan guaido and the country's congress have named new boards of state oil companies. joining us right now kelly jane torrance. it's good to see you. thank you for joining us. >> thanks for having me. maria: let's talk about the fiery exchange. your reaction? >> it was just embarrassing i think for representative omar. these hearings are meant to have the experts, the people who know what's going on on the ground and are of course implementing u.s. policy to inform congress and through them of course the american people. and with a line of questioning that frankly was not serious, representative omar's not doing congress or the american people
7:34 am
well. there's a lot going on right now in venezuela as you and your viewers know. representative omar didn't ask questions about that. this was first of all rehashing things that happened many years ago but really not giving elliott abrams, who of course she called mr. adams at one point, not giving him a chance to give the information he's there to give. if she disagrees with him and his policies, that's fair. and she should ask questions about what the policy is in venezuela and how it's being implemented. that's not what she was doing. >> do you think there's still a lot of -- seems to be a lot of democrats who still are favorable to maduro in venezuela, even though it's a mess, they say it's socialist so we can't be too hard on it. they have problems because of the u.s. is that kind of crazy attitude part of the far left of the democratic party today? >> it is, steve. code pink p whic which of course represents the far left democratic base actually held a
7:35 am
rally recently outside the white house, protesting what they called a u.s.-led coup. people are calling this a president trump-led coup. no one's calling it a justin trudeau led coup. the canadian prime minister is supporting and recognizing juan guaido. canada was very central to the negotiations that led to him being recognized. so, yes, the far left of the democratic party i think they are bothered by the fact that a socialist country has been revealed for what it is. and i find it kind of disgusting really that there's no concern amongst these people for the millions ovens way lains who had to -- of venezuelans who had to leave the country. >> do you get the feeling that the u.s. has a real policy now that -- the cubans are very good, sadly, at security and they're going to try to keep this guy in. what do we do next to get maduro
7:36 am
to leave? >> this is very interesting. i think a lot of stuff is going on behind the scenes. now, president trump actually met yesterday with the colombian president who has a strong interest in seeing a resolution to this, besides the fact that colombians care about their neighbors in venezuela. over a million people have fled venezuela into colombia. this is a humanitarian crisis. president trump remarked there's a lot going on in screens wa vet people don't know about. i took that to be a hint there's support of the opposition behind the scenes. i think that the western support, throughout the world, even spain, which actually sold arms to maduro's regime has come around and has recognized juan guaido as the real president of venezuela. i think that kind of pressure is going to work. when you have sanctions that are finally being accepted by most countries around the world, it
7:37 am
starves the evil regime of the power to do anything. if it doesn't have money it can't keep torturing opposition. >> do we know where ma rush dough and hencmmen have deposited money? can we start seizing those assets? >> that's one thing treasury has been working on, identifying where that money is and being able to get it. of course, the military -- maria: a subject for omar yesterday, rather than going back, this is a more relevant question. >> i guess just on that theme of how long can he hang on, obviously now he's having difficulty making money off oil. our colleagues at the journal pointed out that china is now kind of hedging its bets, working with or at least getting to know guaido, reaching out. that would suggest that the smart money is starting to think that maduro is leaving. >> you know, i agree, james. as we saw, juan guaido named new
7:38 am
board members to citgo which is of course -- oil is where venezuela gets the bulk of its money. it's interesting, because maduro actually jailed the president and a bunch of executives of citgo, they've been in jail now for over a year. maduro's obviously taken control of citgo but juan guaido is trying to take it back. i think that's the key is the money. i think the military is already -- nobody wants to kill their own countrymen. i think the military is already waiverring. if the military doesn't have money to pay them, the military has less reason to fire on its own people. the united states and its partner along with the opposition leader are smartly targeting the regime where it will hurt and trying to end this without any more bloodshed. maria: let me switch gears, take you to the u.s. we have a new fox news poll out, they say voters prefer
7:39 am
capitalism to socialism. republicans have a much better view of capitalism than democrats. so your response to this, given the fact that we're seeing all these socialist-like policies out there on the left like medicare for all and 70% tax rates and this green new deal. >> yeah, it's unfortunate. i think the democrats in a way have done a good job of communicating what they believe, which of course is ridiculous, is that you can have socialism without any cost. i mean, with this new -- with the green new l deal, you had actually a former democratic economist saying well, the u.s. government can just print money to pay for all this. talking about venezuela. their idea was to print money. you've got over a million percent inflation there. this just isn't sustainable. the democrats have really -- they've tried to tell americans -- and it's worked on the democratic side -- that you can have these things for free.
7:40 am
i think the republicans do -- they're trying, but they need to do a better job of explaining that there's one reason that the united states is the most prosperous country in the world and it's capitalism. maria: i love the piece that the editorial board of the journal wrote on socialism and listing -- who's afraid of socialism and listing some of the plans. is it 145 million people get their health insurance from private insurers, is that the right, 145 million people? >> yes. you're talking about everybody -- almost everyone who works in the private economy, between the corporate plans we have, between the individual group market, you're talking with medicare for all, both the bill that bernie sanders introduced last year and the one that got most democrat as co-sponsors, says private insurance goes away, it is illegal and medicare goes away, everyone is forced into a new
7:41 am
government plan. maria: there's no explanation for this. when bernie sanders throws out medicare for all, there's no explanation that currently 145 million people get insurance from private insurance companies and the entire insurance -- private insurance industry goes away. >> it's not just that people care about having an insurance industry. they want choices. maria: they want insurance. >> they want options. they want to be consumers. they don't want to be in the government -- >> what republicans should emphasize is other countries control costs through rationing. you don't get the care or the surgery when you need it. is that what we want in this country? >> i'm from canada originally. i can tell you, that is the case. in canada, there's private insurance, if you have money, that can take pressure off the season. no, you can't. it's illegal to have private medical care in canada. i think there's a lot of myths about this stuff that americans
7:42 am
unfortunately aren't being told about by the people who don't want them to know what this would look like in practice. maria: good to see you this morning. thanks so much. a recall alert from ford, more than 1 million f-150 pickup15p trucks are recalled because of an issue that could raise the risk of a crash. disney brings back frozen, disney releasing a trailer for frozen 2 this morning. we'll give you a first look, next up. ♪ won't you take me to funky town. ♪ won't you take me to funky town. ♪ won't you take me to funky town. ♪ won't you take me to funky town. -jamie, this is your house? -i know, it's not much, but it's home. right, kids? -kids? -papa, papa! -[ laughs ] -you didn't tell me your friends were coming. -oh, yeah. -this one is tiny like a child. -yeah, she is. oh, but seriously, it's good to be surrounded by what matters most -- a home and auto bundle from progressive.
7:43 am
-oh, sweetie, please, play for us. -oh, no, i couldn't. -please. -okay. [ singing in spanish ]
7:44 am
-please. -okay. at&t provides edge-to-edge intelligence, covering virtually every part of your manufacturing business.
7:45 am
& so this won't happen. because you've made sure this sensor and this machine are integrated. & she can talk to him, & yes... atta, boy. some people assign genders to machines. and you can be sure you won't have any problems. except for the daily theft of your danish. not cool! at&t provides edge to edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & this shipment will be delivered...
7:46 am
maria: welcome back. ford motor announcing a major recall of f-150 pickup trucks. cheryl is on headlines. cheryl: ford is recalling f-150 pickups. transmission can down shift into first gear and cause a crash. there's been five accidents so far, including one report of whip lash. this recall affects f-150s from the 2011 to the 2013 model years. they have to have the six speed transmission, that's the key. ford's f-series pickup the best selling vehicle in unite the und states. fortune magazine out with the annual list of best companies to work for. topping the list it's not a tech company, hilton hotels.
7:47 am
rounding out the top five, sales salesforce, wegmans, food market and workday and kimpton hotels and restaurants. parents everywhere, get ready. disney finally released the first trailer for frozen 2. >> ♪ cheryl: yeah, lot of buzz about this. two new characters were revealed in the trailer that's prompting speculation about who they are. elsa and anna will return to theaters in november. the original 2013 film earned more than $1.2 billion globally.
7:48 am
no word yet, maria, if there will be another song that little 5-year-old girls will sing over and over and over. maria: 5-year-old girls or even older people like me. cheryl: 40-year-old girls. maria: i love it. [ laughter ] maria: thank, cheryl. coming up, love and jewelry made in the usa, we're taking a look at one company making hand-craft jewelry perfect for your one of a kind love story. back in a minute. ♪ she don't need a man's touch. ♪ she wants to lead -- its for my future. annuities can provide protected income for life. learn more at retire your risk dot org. to be nobody but yourself in a world which is doing it's best to make you everybody else... ♪ ♪ means to fight the hardest battle, which any human being can fight and never stop.
7:49 am
does this sound dismal? it isn't. ♪ ♪ it's the most wonderful life on earth. ♪ ♪ it's the latest winisn't just a store.ty it's a save more with a new kind of wireless network store. it's a look what your wifi can do now store. a get your questions answered by awesome experts store.
7:50 am
it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome.
7:51 am
maria: welcome back. high end jewelry and nautical decor coming together, that is the story behind chart metal works. these made in the usa products contributing to one couple's inspiring love story. joining us right now is the founder and vp of operations,
7:52 am
charlotte and the pr managerrer, christian. great to have you on the program. thanks so much for joining us. >> thanks for having us. maria: it's so pretty. i know a lot of these are matched. what inspired you to start the company? >> i was working in the financial industry for about 20 years. i was getting a little bored of that and making jewelry on the side. i was making jewelry and my friends were really encouraging me to do something more. but i knew i didn't have a unique enough idea. and so i sort of took an inventory on myself and decided who i was, what i wanted to buy, what i would wear, and i started looking around my house and i had a lot of charts because i had a small boat in casco bay. i started cuttings them up. i showed my friends. i cut up the charts and put them in the jewelry. i showed my friends. one of them asked me if i could make a necklace for her
7:53 am
featuring where she got married. maria: i love that. so they're different. they're each different then. >> everything is completely unique and different. maria: this is bermuda. >> it's all about your store. maria: that is awesome. christian, the company has hand crafted one of a kind jewelry for a maine couple, you know quite well. tell us about that. >> the couple's name is neil and kathy jandro. they were in the heart of maine and portland. in the beginning of their relation shim, they decided to go on dates in the portland area, decided to check out restaurants. it is the food capital of the nation really in portland. and i gifted them for their wedding this past september a pair of couplings that featured maine on one and one on ireland, that's where they had their honeymoon. they love going there. and then i also gifted cas casse necklace, a necklace with a chart of portland. so, yeah, it's a great love
7:54 am
story. perfect for valentine's day. maria: you have to pick it up and actually look at it and read it and see and it's lovely to see. how is it making your products in america? we talk a lot about the tariffs and about the cost involved. in terms of the whole economic story in terms of producing in america -- >> i don't find that challenging at all. everything we do is purchased in america. everything that we make is hand-crafted in portland, maine. we employ nine people. and we hand-craft in pewter, sterling silver and bronze. like i said, we can capture any location in the world. maria: tell us about the products that you brought here. >> yes. so we have a great line of jewelry for ladies and men. this is our number one best seller here, the bangle. great products for men. men are a little difficult to buy for. maria: cuff links are a great idea. >> yeah, yeah. maria: that goes over well with the maps. >> you can feature two different
7:55 am
locations. barware, the ever popular bar maria: you've got the corks. >> the wine coast'er's been a huge hit. maria: what is this map? >> this is a map of boston. it can be a place from anywhere from your world. maria: weddings a big target audience. tell us about that, what's more popular for weddings, probably the barware. >> the barware, the key ring for the bridesmaids, bangles. maria: corporate sales is an important venue for you. >> he yes, yes. we do a lot with corporate sales. we have a paperweight that we do that's p popular, th popular, ts popular. >> the company's logo can be one side, the other side can be the location where the headquarters is located. maria: it was important for you to produce and made in usa. >> absolutely. maria: ladies, congratulations. >> thank you. maria: beautiful products. thanks so much for showing them.
7:56 am
check it out. still ahead, sweet holiday, we will have some of krispy kreme's conversation heart donuts here on set on this valentine's day, next hour, right here, "mornings with maria." stay with us. ♪ i'm falling even more in love with you. ♪ letting go of all i held onto. ♪ this is not a bed.
7:57 am
it's a revolution in sleep. the sleep number 360 smart bed is on sale now, from $899, during the ultimate sleep number event. it senses your movement, and automatically adjusts to keep you both comfortable. it even helps with this. so you wake up ready to hit the ground running. only at a sleep number store. during our presidents day weekend special, save 50% on the sleep number 360 limited edition smart bed. plus, 36-month financing. ends monday. sleep number... proven quality sleep
7:58 am
7:59 am
maria: welcome back.
8:00 am
good thursday morning. thanks for joining us. i'm maria bartiromo. thursday, february 14 happy valentine's day to you, top stories just before 8:00 a.m. on the east coast, china trade crosswalks under way u.s. trade representative robert lighthizer treasury secretary mnuchin meeting with chinese counterparts in beijing trying to make a deal before march 1 drinan a hot in uthes lawmakers to vote on border security bill racing to avert a government shutdown with less funding the president is doubling down object that border wall. >> a big wall it is a strong wall. it is a wall that people were aren't going through very easy would be able to climb mount everest easier i think but it is happening. >> latest coming up from white house, looking at higher opening for stocks this morning futures indicated optimism about both deals, dow industrials up 100 points, s&p 500 up nine nasdaq up 29 points almost one half of a
8:01 am
percent, this on top of strong day yesterday, in fact take a look at close yesterday, the dow industrials, picked up 117 points, the subpoenap 500 up 8 nasdaq up 5, at the close yesterday, in europe this morning momentum goes on ft 100 up 32 points cac quarante in paris up 36. dax in germany up 26, asian markets mostly lower, kospi in korea breakout better than % upside. >> a check on health of thes consumer december sales out the 30 minutes' time expecting increase 2/10 of a percent when we get january numbers, j.d. powell releasingless of the most dependable car brands, porsche toyota tied second place, who took the top spot we've got it, of course, it is valentine's day today we have a special treat, you can share with your loved ones coming up all that right here joining me to break it alldown fox business network david boltonwrote assistant
8:02 am
editorial page james freeman steve forbes great to see everybody a lot to talk about this morning. >> china, hoping for a deal, also, hoping to avoid another government shutdown i think the vote has to happen tonight right. >> i don't think there will be a shutdown i don't think a shutdown. >> china you stuff, i think this is one of those uncertainties that if reflected if we get a deal lower trade barriers. >> a discussion to deep talking we don't have to have deals we have some sign of progress. >> i think when this is finally done i think next two or three months there is the president would describe going to be huge i think usual going to see huge multibillion-dollar deal natural gas oil china needs hundreds of billions of dollars the chinese also going to maker purchases going to make spread around u.s. to start showings political
8:03 am
support in this country. >> a big point, that you don't hear enough about, what china boysing to buy in terms of oil, from the united states, now u.s. is largest producer. >> it is. >> you want to see china go with u.s. over -- russia. >> russia and middle east. >> yooe. >> always good, i mean one can tell you good to have three suppliers instead two of. >> the liquid natural gas market for us could work out nicely on our side on theirs. >> talking about it right now top story investors watching china trade story mnuchin and you have had thes trade representative lighthizer expected to meet with chinese president xi jinping this week, in hopes hammering a keel before official march 1 deadline the president said he is willing to let that slide, and perhaps take another 60 do as to continue negotiations, the president said he remained optimistics about the trade talks. >> we have a big steam of people very talented people in china right now, negotiating on the china deal, going look
8:04 am
very well we will see what happens but i think going along very well showing tremendous respect, and something a lot of countries didn't used to show united states sheer showing respect now big difference from old days i will tell you that. maria: joining me right now hudson institute chinese strategy senior fellow director mike, good to see you thanks for joining us. >> good morning. >> u.s. i want to hear really from you and your analysis here is how much of this deal is going to deal with some of the big elephants in the room bigger issues away from trade that, of course, is the intellectual property theft, the forced transfer of technology then espionage we know so much more about today, given what has tan place at huawei. >> well these as you say the big issues, but you the chinese -- they are pretty strong tough do not agree with us if in trouble desperate, so they have neither admitted any intellectual property theft at
8:05 am
all. they have denied any about forcible technology transfer ever occurred if it has it is low level people, who president xi has not supported so when other partner won't admit to wrongdoing, you can see how tough the talks are from our point of view. >> that is the key point, and isn't it true that this is more like a culture, if they won't admit doing it how do you expect this administration to really modify the needle on them stopping doing it. >> i agree with president he has a wonderful team at work, however, more time is probably going to be needed so chinese can see just how serious the president is. they respect him they are almost afraid of him, i have seen translations of not just art of the deal but earlier book back in year 2000 when he first talk about china ripping us off books well-known in fortune they think they are going to outsmart him through patience through getting our wall street lobbyists shall we say to support cosmetic deal i
8:06 am
hear lot if chinz they want a cosmetic deal no enforcement no verification just aspirations a lot of promises, that is frankly the way it looks as of today. maria: i mean we have heard it right from companies now, i mean we had on former ceo of microsoft, steve ballmer tells me right out that it -- like 90% companies in china use microsoft operating system only one percent pay for it that cost microsoft 10 billion dollars a year in profits, these this is an extraordinary number. we have also heard from motorola solutions tabout mobile we know trade secrets theft has happened because we are speaking to companies that are getting impacted what do you need to see to really believe that the chinese are taking this seriously? >> well be size mission of past wrongdoing everything on table saying a new system of intent courts, companions like microsoft can file a suit they claim 70% of suits already are
8:07 am
in favor of the foreign company, so saying going to expand number of judges make it easier to file suits in case of intellectual property theft small concession nothing like scale what would be needed, i think what bob lighthizer has been telling people in case of japan talks went on for years even with japan, democracy rule of law still kind of cheating on the side. so he thinks we are underestimating the task we face chinese have influence operation in america, to lobby against tough deal we don't have that in china. we don't have an ambassador who has the cell phone numbers of all chinese leaders china ambassador in washington very active, he went for -- to dane's ranch in montana opened beef deal got credit for nothing like that in china, the balance of influence is very different, about works in china's favor longer talks go
8:08 am
on. >> i want to get back to opening of the markets in a second but when i was in davos this year, one of the ministers from china seemed very optimistic opening up market in china for a financial services, you know already ubs given the -- the contract that they can own 51% bank in china with the okay to do so one hundred percent in three years, so they seem very apt to open financial services doesn't do anything for the president's manufacturing base what about other industries do you think we will see opening up of market 1 potent 4 plan people away from financial services or just financial services -- >> no, not just financial services part of president trump's soft of genius to focus on american companies making profits having more access to chinese customers, also manufacturing there. this has been a huge problem informally at the local level excuse me maep valentine's day to you at local level norms
8:09 am
obstacles on our companies making profits, this is one of the key issues, issue here china can have some give they have leaked their demands that they want to have more american investment companies operate in china even on list which investment banks they want to let in first this i also a 10-year-old issue, called bilateral investment treaty by insiders, here a long list of what they call negative list, sectors of the chinese economy that americans cannot go into at all. >> that is right. >> there is room for movement there. >> right certain industries deemed one hundred percent off limits, quick before you go. >> entertainment is an example. maria: and defense, so before you go tell us what you think a deal will look like a deal done what is most likely deal in next couple weeks. >> most likely deal what i call cosmetic deal appears to deal with all issues
8:10 am
comprehensive, both sides can push it but respective no enforcement no penalties no renewal six months to look into it most likely what mnuchin i think wants has been clear about it a tougher deal would work reduce friction long term slow china's effort to get supremacy over us in technology that kind of deal much harder will take longer would i be more for extension of the talks to get that kind of a good deal. >> we will be watching thanks for insights. >> thank you. >> in washington the race to avert a government shutdown own looks unlikely at this point house set to vote today on that border funding deal blake burman live at the white house with the very latest. reporter: good morning to you i am told president trump this morning has yet to make final decision whether or not he willor if he won't sign this final spending bill that was proud up on capitol hill that should nt be much surprise
8:11 am
considering the final technicality wasn't posted until very late in evening last night before text was posted shelby wrote the following last night i talked to the president, he was in good spirits i told him that i just signed the homeland security conference report and that it is a down payment on his border wall this is only the beginning of a multiyear effort white house i am told wants to be able to go over full text advisories in billing experts at department of homeland security the president saying yesterday he wants to make sure that there aren't too many about obstacles in this bill. >> we will be looking for land mines, because you could have that, you know, known before to people we have fot gotten it will yet it will be sent to us some point we will take a very serious look at it. reporter: more than 1100 pages long so some in congress kind
8:12 am
of want to hit pause button have a short term spending bill so they can give it a look over but at this point the way things you are going to play out on capitol hill the senate acquits likely to take this up later this afternoon, with house to follow after that, big question is whether or not, this is suitable for president trump or not. maria: down to the wire again, thank you so much blake burman is at the white house. coming up -- j.d. powell with list of most reliable brands for 2019 see this first we are going to tell you who took top spot. >> valentine's day, with krispy kreme donuts, we'll be right back. ♪ ♪ take my heart and please don't break it love was made for me and yyou ♪ walking around here in their hundreds. so how do you stay financially well for all those extra years? well, you have to start planning as early as possible.
8:13 am
we all need to plan, for 18 years or more, of retirement. i don't have a whole lot saved up, but i'm working on it now. i will do whatever i need to do. plan your financial life with prudential. bring your challenges. want a performance car that actually fits your life? introducing the new 2019 ford edge st. capability meets power. in the first suv from the ford performance team. the new 2019 ford edge st ♪ ♪ i can do more to lower my a1c. because my body can still make its own insulin. and i take trulicity once a week to activate my body to release it, like it's supposed to. trulicity is not insulin.
8:14 am
it starts acting in my body from the first dose and continues to work when i need it, 24/7. trulicity is an injection to improve blood sugar in adults with type 2 diabetes when used with diet and exercise. don't use it as the first medicine to treat diabetes, or if you have type 1 diabetes or diabetic ketoacidosis. don't take trulicity if you or your family have medullary thyroid cancer, you're allergic to trulicity, or have multiple endocrine neoplasia syndrome type 2. stop trulicity and call your doctor right away if you have symptoms of a serious allergic reaction, a lump or swelling in your neck, or severe stomach pain. serious side effects may include pancreatitis. taking trulicity with a sulfonylurea or insulin increases your low blood sugar risk. common side effects include nausea, diarrhea, vomiting, abdominal pain, and decreased appetite. these can lead to dehydration, which may worsen kidney problems. i choose once-weekly trulicity to activate my within. if you need help lowering your a1c, ask your doctor about once-weekly trulicity.
8:15 am
maria: it has been one year since the he dleld shooting in parkland, florida cheryl casone has headlines. cheryl: that is right, maria. florida governor ron desantis
8:16 am
has ordered flags to fly half-staff, to honor the victims declaring today marjory stoneman douglas remembrance day governor is calling for grand jury to look into when school districts are complying with security measures in place after the shooting 17 students substantive were killed at stoneman douglas high school sparking a nationwide debate over gun control the safety of schools. airbus is ending production of its iconic a380 super jumbo jet sales for woermdz's largest passenger jet slumping competition from smaller fuel-efficient aircraft, emirates chose to slash current order. and traditional candy hearts have be mine on them not around we reported this krispy kreme is filling void with donuts have phrases on top
8:17 am
like dme, extra be play on on them from cake batter strawberries cream raspberrior chocolate the last day you can being buy them producers with "mornings with maria" got us some to say happy valentine's day to team and maria bartiromo. >> happy valentine's day. >> i lol you by the way. >> -- so cute. >> you can only get them today but i hope it comes back somebody bought the brand this year you can't have your conversation hearts if you have these -- >> jelly donut husband's favorite. >> taking it home for him. >> ahh. >> my valentine's day gift -- >> [laughter] >> okay -- i got cake batter
8:18 am
really sweet but good. >> the box to go. >>, by the way, i posted this picture on twitter but posted on instagram it is tvt, rollback thursday in honor of valentine's day posted a picture from high school prom. >> did you? >> all right. >> -- 18 years old. >> i am i got to check it out. >> check that out instagram on mine and yours. >> mine too yeah, you did ubt. >> --. >> the pick. >> all right. >> let me take -- go -- >> thank you for the donuts. bre investorsing watching, key economic data futures higher ahead of producer price index december retail sales released in a few minutes we've got numbers dow industrials up 118
8:19 am
points then revving competition list of most reliable car brands for 2019 buick scoring number five we are countering down the top of on the list back in a minute. ♪ ♪ my experience with usaa has been excellent. they really appreciate the military family and it really shows. with all that usaa offers why go with anybody else? we know their rates are good, we know that they're always going to take care of us. it was an instant savings and i should have changed a long time ago. it was funny because when we would call another insurance company, hey would say "oh we can't beat usaa" we're the webber family. we're the tenney's we're the hayles, and we're usaa members for life.
8:20 am
♪ get your usaa auto insurance quote today.
8:21 am
to be nobody but yourself in a world which is doing it's best to make you everybody else... ♪ ♪ means to fight the hardest battle, which any human being can fight and never stop. does this sound dismal? it isn't. ♪ ♪ it's the most wonderful life on earth. ♪ ♪ it's the most wonderful life on earth. comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more
8:22 am
than your customers thought possible. comcast business. beyond fast. maria: welcome back markets rallying take a look at infuriatings indicating a gain 16 points dow industrials, good feelings about deal between china and u.s. as well as border deal joining us anderson capital management certified financial analyst peter anderson good to see you thanks for joining us, how are you looking at markets right
8:23 am
now. >> i am optimistic during break talking about this i think you don't have a choice but be optimist u.s. economy strong everybody clouded by political policy distracting the market in general things look very, very strong valuations are low, and earnings look great. maria: can i ask if u.s. looks great i think it does there are signs of slowing in europe, there are signs of slowing certainly from china and even leaking out to asia pac region we heard from australia can u.s. remain strong even if he isolated case. >> i think they can that is why i advocate buying u.s. stocks, stocks that have most revenues based on u.s., consumers because, that is the strongest part of the world right now i consider that to going forward to stay the same stay very, very strong in spite of what is going on internationally. >> i want to say you make such important point euro growth
8:24 am
right now forecast to grow 1% this year, and even though china did have really good economic data this morning exports strong overnight up 9.1% want to get that out we hadn't reported that yet. >> slow growth o oversees good news from china in u.s. you have a lot of indices of sentiment downward small business owners consumers not as optimistic as they were, can't that be a leading indicator that it is the people are concerned worried not going to spend and invest. >> i think one of the problems is you know markets strategists a lot have come on the air talked about giving advice but you know when you go to a doctor's office for instance, you leave with action plan, strategists these days give you kind of a balanced outlook on things, on the positive side they will tell you this on negative side tell you this, a lot of investors are look being for definitive action
8:25 am
recommendations not are getting it i think fuels into. >> isn't that a bullish fine a great buying opportunity. >> it is depends on how that is done, i mean if you have a adviser telling you maybe should you by he on the other hand maybe this isn't right time to come in a lot of people on sidelines getting more cash on sidelines. >> investors missed whole bull market in 2009. >> they have, but i think that is reminiscent of the fourth quarter and 2018 where people were shell-shocked advisers weren't telling much it is easy to give advice when markets up very, very difficult to give it when it is down that is what you are paying for advice when what should i do when i am deer in highlights not sure whether i should go long or short more advisers to g definitive action plans rather than giving balanced opinions. >> if pessimistic buy if
8:26 am
optimistic stay on sidelines. >> kind you of where it is if the optimistic stay fully reinvested i stayed fully invested fourth quarterly much to chagrin of clients things are working in our favor. >> we leave it there greatest to have you about to get mike data may actually give more info on the story coming up futures pointing higher ahead of the january producer price detection december retaliate sales out in few minutes we bring those numbers right after this break.
8:27 am
8:28 am
♪ ♪ our new, hot, fresh breakfast will get you the readiest.
8:29 am
(buzzer sound) holiday inn express. be the readiest.
8:30 am
maria: welcome back thursday morning, everybody. thanks for joining us. i'm maria bartiromo. thursday, february 14 we have breaking news on economy right now, we are just getting out, 24 morning, the ppi -- >> producer price index down -- 1.2% line to on retail sales worse than expected on retail sales number coming out estimated for retail sales was -- okay. so the retail sales down 1.2% versus estimate up 2/10 of a percent ppi is estimate of up one-tenth but down one-tenth of a percent worse numbers than expected the inflation numbers nonexistent the retail sales number is worse than
8:31 am
expected down n .2% versus estimate up two-tenths of a percent gains up 87 points off best levels watching fushts data hitting the tape line to for december retail sales of 1.2% joining us right now vice president in senior credit officer moody's, good to have you on the program this morning. >> thank you for having me. >> thank you so much for joining us when you see number like that retail sales down 1.2% estimate called for gain 2/10 of a percent how do you read it? >> legislator than we expected, the issue with retail is that you know it has been up and down, up and down pretty good october november year-over-year number i don't having coupling december sales to be 5% all data pointing towards that to be year-over-year when mastercard numbers came out about three weeks ago, spending was up 5.1% so, so we expected pretty
8:32 am
good decembers consumer sfs sentiment vick environment we have a positive outlook on retail. >> you do? >> we do changed outlook to positive in october primarily because we are seeing a lot of gains on he retailers spending etch customers e-commerce sales gaining a lot of momentum. maria: this is the biggest drop in nine years. in december, james freeman i am wondering if this has anything to do with market volatility that tough market story that we had in december basically dictated perhaps people's activity. >> when you have declining stocks doesn'ts make people bullish optimistic algaer to spend we have seen lately -- pessimistic sentiment indicators but real data comes in it is surprisingly good, this is not one of those cases i am looking at the market kind of slugging itslugging it
8:33 am
off do you think saying december, maybe temporary blip or saying the economy is not as good as we thought means interest rates are not going up soon. >> december was a pretty volatile month for stock market interest rate, when way headed the fed came out said you know on hold, so you know home improvement guys big part of retail home depots lowe's, saw slowdown in december because of that, but consumer sentiment stock market decline by 20% we are in a bear market territory, does impact consumers psychologically whether they want to spend. >> 35 days talked 800,000 federal workers who weren't getting. >> i had report was delayed supposed to get earlier. >> go ahead. >> january, numbers could be soft too because of the government shutdown lasted into january. >> i was surprised in this report says online and mail
8:34 am
order retail sales dropped close to 4% so 3.9% to be technical biggest drop since november 2008 any time i see a reference to 2008, makes me a little uncomfortable as anybody who lived -- >> every one is wondering is this replay of 2008 worst-case scenario? we will see if it is a blip don't you think it is a blip? >> i think it is probably a blip. because we're still looking at retailers upcoming fairly well we look at operating profit dollars, expecting a 5 to 6% increase in profit that is primarily because e-commerce are gaining momentum for the brick-and-mortar guys that doesn't i mean everybody is listed up because smaller guys are definitely you know, having a lot more pain. they don't have financial flexibility, or the financial wherewithal to invest in e-commerce, and actually you know, amazon is obviously
8:35 am
growing great. >> tell a of two cities. >> it is a tale of two cities has and have-nots, most retailer having problems ones balance sheets don't support a decline in top line, these are you know, private equity retailers that have a lot of debt on balance sheet. >> but the sorry i was going to in terms of the stocks retail has done well this year along with the rest of the market after bad end of the year. it looks like so far, not much change in the stock market do you think the outlook for stocks doesn't change either most people will see it kind of a polyp related to these short term events? >> we look at the bond market the equity market obviously related in ways. i think coming off pretty low base the retailer stocks pretty good year last year considering what was going on, we think that that continues into this year, just because
8:36 am
operating profit numbers look pretty good the bigger guys driving the bus walmarts, lowe's, et cetera, see if a slowdown the mortgage rates going up -- that could definitely impact sentiment in terps of housing we have seen softness in housing market but -- >> sounds like looking for a snapback here. >> yes, i think definitely looking are '19 positive outlook retail '19. >> not worried questioned equality, corporate credit you are not worried. >> corporate credit lower rent definitely still have you know 17 names in retail that we cover that are in the cwa lower territory means challenged either maturities coming up, liquidity issues that again depends on how open the capital markets, ma tur tees. >> lower spruk having problems doing better than they were,
8:37 am
still -- >> for malls? malls, the malls doing fine short hills mall in new jersey pretty crowded. >> high end the high end. >> the high end -- experience, spending a lot, is right they will do fine the b, c, d, lower grade malls, nobody goes to malls not place kids used to hang out they are on phone more social media than hanging out in malls. and online you know you know what you are going to apply already not like you are browsing four or five different ways in a mall spending more time that changed dynamic of that. >> things have gotten better online, there are sights now that you can -- you know just send pictures, and they know your size that is why a new report, today, from research says store closures in 2019 up 23% from same time last year,
8:38 am
are you expecting more store closures, brick and mortar to get -- >> they are having bankrupts we expect more store closures the cadence probably lower than it was a lot sears is going to close he probably you know a lot of stores, of may be 400 stores. >> it has a new game plan the after bankruptcy smaller stores less clothing lampert says and then a will sell or lease some 425 remaining stores focus on appliances and tools that is right strategy. >> i think that you know sears has been -- trying to liquid three or four years not nothing new. but appliances? yeah appliances great if you have good service offering, more touch and feel if you buy appliance you want to explain how to use it work it a good warranty it is hard to find people today the labor market
8:39 am
is tight. >> i was at sears mall down the road from short hills mall, recently, the morale was very good the staff, i expected a lot of long faces, company like that, but it was actually, a very good experience, but i am wondering you were talking about temporary blips are we back to normal as far as those lower noninvestment grade companies being able to borrow obviously, the high end credit market very tough in december, november, is it now pretty much available capital. >> again, it is a tale two of cities there are certain names have find it difficult to refinance, if you are investment grade obviously you have no problems, at&t issuing bonds, last week, a big number of them, so the markets pretty open. but it is you know pretty selective if you are a company that again, it depends on if you are a great company bad
8:40 am
neighborhood you know people look at you -- >> you don't need money you can get the money. >> exactly the issue is, if ira department store, everybody rushes to department stores same brush, even if doing well so you know getting financing for that is a problem, and neiman-marcus is a prime capital they have got big maturities coming up in two years they have got to take care of them next year, some negotiations didn't go too well so, you know, we will see what happens there, so there are names, petsmart a big name that doesn't have maturities coming up but, you know, has a lot of debt. and there again situations where you have a lot of debt on the balance sheet, and they can't get sales that they need. maria: here is a couple headlines from retail sales report, mail order only sales down 3.9% biggest drop since november are 0, receipts gas stations down 5.1% biggest
8:41 am
decline there since fall 16, we see restaurants bars down 7/10 of a percent hobby musical instruments bookstores plunged 4.9% that certainly is an indication of -- >> the bookstores have been declining every month, every report primarily because commerce battle guns sales are down. >> the only thing that was up auto dealerships up 1% after advancing 7/10 sale building material stores up 3/10 of a percent. >> burning, remodeling doing well we think if you look at food, improving a big part of retail that we look at, off price tjx's of the world doing well, the value convenience is doing well, are discounters doing well. >> trends for future among
8:42 am
boutiques anything rising in my view fashion new product new service -- >> there are, millennials all about fresh, branding, and the buzz, right. >> technology? >> technology, you are going to have mobile site, go in want to get what they want, exactly, and quick, so those are kind of brands that are coming up, these are new brands but they have a lot of buzz, taking sales out of old school guys out there. maria: interesting a great wrap-up thank you. >> thank you very much. >> coming up next, andrew mccabe speaking out former fbi deputy director con firms he ordereded an investigation into president trump we have the very latest coming up start your generals jayme powell en avails list most reliable rides hitting a road we till you when brands topped the list. back in a
8:43 am
8:44 am
8:45 am
8:46 am
. >> welcome back fox news poll show how americans feel on issues from border deal to socialism. >> most of it brings joy to my heart. let me start with a view of socialism versus capitalism
8:47 am
25% think socialism favorable good 57% think capitalism is good a good one next one 78% believe that they have achieved or are on the way to achieving the american dream i think that is really, really good. there is another good one, what would you what message would you send to the government. >> 55% said leave me alone, 34% said lend me a hand there is one bad one in my opinion, it is a tie do you want a national health insurance program run by federal government and paid for by taxes 47% yes, 47% no. don't like that one. maria: you know why i think people don't understand what the federal program will mean what it will look like, they don't understand that the private insurance industry goes away. even while 145 million people get private insurance from privateions companies. >> absolutely right what is the answer to that? i think 150 million americans get health insurance privately provided by employer.
8:48 am
maria: right. >> that out is that what half people want i can't believe. >> it james said um team times medicare for all means. >> keep your health plan we promise you will not get to keep your doctor medicaid for all movement is saying. >> i voted echo of that sometime ago, you can keep this you can keep that. . >> i know you have a lot more see you 10 minutes. >> "varney & company" top of the hour 9:00 a.m. eastern after "mornings with maria" join stu artist fantastic panel. >> the most reliable rides of 2019, which car brand took top spot on j.d. powell's list most reliable cars in america how can you miss that kfc upping game check out latest a mac n' cheese bun there is a catch back in a minute. ♪ this isn't just any moving day.
8:49 am
8:50 am
this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today.
8:51 am
8:52 am
maria: welcome back, now there is former deputy fbi director andrew mccabe speaking oilt ordering an investigation into president trump. cheryl: that is right in interview with cbs 60 minutes he said he ordereded an obstruction of justice investigation into president trump as president fired then fbi chief jim comey. >> i was very concerned that i was able to put the russia case on absolutely solid ground, and indelible fashion were i removed reassigned
8:53 am
fired case could not be closed or vanish in the night without trace i want to make sure our case was on solid ground if somebody came behind me closed it tried to walk away from it, they would not be able to do that without creating a record of why they made that decision. >> mccabe was fired last year two days before he planned to retire 50' birthday and collect full pension. >> annual list most reliable car brands lexus in is for vehicles from 2016 model year, 8th straight year top spot porsche toyota tying for second chevrolet, crowning out top five. >> another story for you kfc edition of the menu mack and achieves zinger using mac and cheese to replace bun on crispy chicken sandwich bacon on it only available in
8:54 am
singapore if smart will bring it to our set. >> i am glad you don't have mack and cheese buns on top of donuts. cheryl: i wouldn't do that to you or myself. >> why? >> [laughter] >> singapore, thanks, still ahead watching earnings big names coca-cola, nvidia 6 flags regarding the we break down numbers tell you what rally looks like now when we come right back. ♪ ♪ baby, its, you, baby make -- ♪ ♪ ♪ just makes two ♪ can you help with these? we're more of the plan, invest and protect kind of help... voya. helping you to and through retirement.
8:55 am
8:56 am
8:57 am
8:58 am
♪ >> a complete reversal right now reversing course after that retail sales number we call that one right we were questioning why, the markets were holding on to gains when retail sales were down 1. %. the worst decline for reare tail sales in nine year in the month of december. markets went from up, about 100 point to nows down 40 points, of course, coca-cola also an issue that stock is under pressure after reporting earnings earlier and that -- is also part of the impact here. gerri willis on floor of the new york stocks exchange look at all of this reversal. hey, jared. >> coke losing its business morning shares are down nearly 4% and why dps many earnings
8:59 am
report coming in bang on expectations at 43 cents share. but, in fact, this company has expectations in each of the six past quarters. the real story is her, the forecast for full year profit growth below expectations. that is driving shares of this company lower. what's going on behind the scenes rising freight and modty costs weighing on the company. a lack of truck drivers also hurting operations here. this cause company to raise prices and that in turn is leading to lower demands. so coca-cola shares down 3.6 this morning. you remember just days ago we reported orange vanilla coke a new flavor and believe they've had a new flavor for coke so innovation would help here. >> these numbers really tell a story of a big slowdown at the end of the year. >> consumer spengtding is two-thirds of our my so yeah, not surprised that we're seeing negative start to the day. smtion it will probably be. markets are going to get become to look into the future good stuff is coming on trade.
9:00 am
i think this will turn around and cloud will dissipate. a 3% year on gdp great to see you everybody. happy valentine's day and to you james freeman. >> thank you for the the donuts great to see you "varney & company" begins right now. stew take it away. >> share the donuts get that clear. >> we're bringing you a box. >> good morning maria, good morning everyone. i'll say it again, it seemed like this market just wanted to go up. january was terrific. february turning out pretty good too. and on this valentine's day until half an hour ago, it looked like we were going up some more. look at this. when we open a half hour from now, we'll be down 50 maybe 60 point on dow it was going to be -- an hour ago, a triple digit bane but then came retail sales figures for december. down 1.2% and stock market evaporated in news background a vote on 11 page bill to

65 Views

info Stream Only

Uploaded by TV Archive on