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tv   Mornings With Maria Bartiromo  FOX Business  February 20, 2019 6:00am-9:00am EST

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pickup truck set on fire. we have the story. the company updating home security product allowing them to work with its voice assistance. users did not know that devices already had microphones in them, the backlash and what google is saying about that. a new way to get tesla model 3, reportedly gearing up leaking program, timeline for self-driving cars, maybe sooner than you think, mornings with maria begins right now. ♪ ♪ maria: futures indicating the market will open lower this
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morning, fiction -- mix showing right now. nasdaq is higher up 1 point this morning. markets are watching and anticipating the federal reserve, we will be watching for any clarity on interest rates this afternoon from the central bank as it release it is minutes from the january meeting this afternoon, that at 2:00 p.m. eastern what's most important here, what will the federal reserve say about the balance sheet, there's news speculation the balance sheet unwind will be done by the end of 2019 where the fed caps off the balance sheet at 3 and a half billion dollars, we will be talking about that. earning season, cbs reporting quarterly results within the hour, company's revenue at 54 and a half, $5.85 billion, earnings. joining know talk about chief investment strategists, nancy tangler. thanks so much for joining us.
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how really is important in terms of the direction for markets next? >> i think there's definite negative upside surprise when people withdrew minutes and think there's a rate hike on the table for 2019. we think there is, the market doesn't think there is, the balance sheet wind down, that's kind of in the pricing, i don't see this as big surprise. maria: the fed gave us the pivot and suggested that only one rate hike. >> we are base that china will be stronger than people expect in the second half of this year, we have seen not just monetary stimulus from beijing but fiscal stimulus. we think they will do whatever they can to get consumer back in the game. maria: ripple effects across the world. what about earnings, we are expecting a slowdown in terms of earnings, this year pretty
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dramatically, i know you had the stimulus last year, two -- two things about that i have been on air with you and that would be great place to be. the consumer will get -- tax-paying consumer will get $85 billion in lower tax payments, we expect to that trickle through the retailers and group and we have written a piece, that number was going to be reversed, watch wal-mart and cosco and you saw what happened with wal-mart yesterday, we don't think earnings are stuck here, if you look based on history and companies that hire foreign earnings are doing better this year than those that are lower. that means stocks are sticking out, it'll be volatile, they are slowing down. >> you make a good point, retail sales numbers were so weak, a real surprise and we get numbers out yesterday which look very
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strong and that could have been more indicative of what's going on. how do you allocate capital? >> i want to be less exposed to develop europe and i think china is interesting but we are focusing on large cap, multinational big companies here in the u.s. we think that quality is where you want to go, that's been a theme, we've been able to use that to our advantage. maria: market had the best january in 30 years, are people getting complacent at this point. you would enter right here. >> i would be -- i would be careful. >> we have the chance to getting high-quality companies, morgan stanley, lower valuations, salesforce.com, and so we are just waiting, we added to cbs and tiffany, we are looking for opportunities but we are not full going in. maria: we will leave it there, nancy, nancy tengler there this
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morning. problems at google, facing backlash this morning after users were shock today use that microphone was in devices. dagen mcdowell weighs in on that, good morning. dagen: good morning, maria, virtual assistant would now work with its home security and alarm system, well, the big sure user didn't know that a microphone even existed on their security devices to start with. huge oops for google, so on tuesday google admitted originally telling business insider in a statement that it made, quote, error, here is part of the statement, the on-device microphone was never intended to be a secret and should have been listed in the text specs, that was an error on our part. but that's the issue that this microphone would never disclose in any of the product materials
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for this device, google has said that the microphone has never been on and it was only -- it will only be activated when users specifically enable that option. the microphone was originally intended in the nascar for the possibility of adding new security features to the device, but, again, in what world does google not pay attention to security issues and privacy issues like revealing a microphone that's embedded in a device whether it was on or not, google's old slogan used to be don't be evil, it should be don't be dumb, maria. maria: well, that's the thing. people need to understand that these things are recording or, you know, able to listen in or watch you when you don't know it like the iphone 10, most people don't realize that the camera is always on. dagen: this is a huge error for google because no one had no way of knowing.
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maria: that's ridiculous, thanks, dagen. cheryl casone with that story. cheryl: where is spring, maria, good morning, big winter storm in parts of midwest and the east and that's today, the storm brought up 5-inches of snow to the west earlier this week and so it's likely going to affect travel. meanwhile lighting strike forces delta airlines to make emergency landing, the flight down to atlanta and milwaukee, all passengers on board were okay and then a truck in louisiana al struck by lighting bursting into flames, look at this, the driver able to pull out and get out in time. miraculously he's okay. travel and southwest airlines, they are apologizing to their customers after canceling hundreds of flights in recent days, the airline was force today take out planes to
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service, but the union that southwest trying to divert attention to safety issue. tit for tat continues. according to no internal e-mail no decision has been made of timing but a website says looks like the leasing program is going to launch in the next 2 weeks and model 3, tesla has hit milestone, 200,000 of these vehicles according to blm -- bloomberg, tesla vehicles will drive themselves by the end of the year, what do i do, not show up? you and i talked about this before, self-driving technology still makes me very nervous e specialfully the car can completely drive itself, i'm not sure i'm ready for that. maria: incredible where things are going.
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senator cory booker thinks they should set up shop in new jersey after putting plug in headquarters. former starbucks ceo howard schultz slamming the radical left as the 2020 field grows wider, much more stay with us ♪ (butcher) we both know you're not just looking for pork chops. you're searching for something more... ...red-blooded. right this way. you thirst for adrenaline, you hunger for raw power. well, you've come to the right place. the road is yours, dig in.
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maria: coming up right now pennsylvania congressman is here with us. former ceo of toys"r"us along with take two interactive software joining us this morning. the company behind popular video game theft auto.
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dr. mike is here. corey book e say that is newark is ready to open amazon after its pulled plug in new york. newark was 20. mitch, is newark an option for amazon? >> you have mass transportation, a lot of millennials like to recommute from the city, it's possible. i thought it was a viable candidate in the final rounds. >> listen, the problem was that amazon can bunked it will process, they said they were going to do an h2q, they want to see what everyone was willing to give but only half themselves and i think that's the biggest issue you have, this is textbook
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definition, corporate welfare that they were looking for when other companies such as alphabet, such as apple haven't asked that of new york city and the problem is that you just high in the sky expectations, they will again rate $27 billion, all these jobs, listen, that was just -- who knows if they were actually going to do that, right? maria: they promised 25,000 jobs, i think. >> we don't know if they were new yorker jobs and they could have brought people in here. so the problem is you had government officials here giving up as much as they humanly can to am done. you to see true colors of politicians and cory booker is one of them. >> i don't think amazon ever had intention of doing splitting headquarters in two parts, i think it was a big game that they were playing and so they set it up in case there was pushback somewhere like new york to try to win up google who has
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already taken over like the west side of manhattan in terms of buildings, the entire chelsea market, adjacent building, they are building like a secondary headquarters over somewhere in the west village here, one, i think it was -- they were playing new york and two i said this yesterday, mayor michael bloomberg was running the city this would have never happened because he's a businessman and he know that is you have to placate those people who might push back on these kinds -- handing out perks to a corporation like that. >> remember amazon gains on requesting the requested proposal process, they got information on cities that they wouldn't have otherwise wouldn't have get. maria: that's a good point. >> i have spoken to mayors across the country and had to sign pretty -- maria: that was one thing.
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i saw one of the issues for pushback in new york was the company facial recognition plan because they've got all the data on citizens from facial recognition. it's becoming a big issue. kevin: jeff bezos, he has two homes outside of seattle, new york and washington, d.c. where did they pick? new york and washington, d.c., right, and we have the talent here. that's unbelievable talent, great researching universities. i mean, they were going come here regardless and they are still going to come here. you talk about the west side -- maria: they were going to do 2. dagen: i think that they did it for other reasons. i think that they did it to collect data on not just new york city but all the -- by the way, jeff bezos looks like a mess right now with the mistress and girlfriend problem.
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he will get down to brass tax, because if amazon continues to foul up and struggle like the whole foods issue now that that are back to raising prices, he will have to hunker down. maria: and the national inquirer. maria: former ceo howard schultz blaming far-left activists for decision. politicians made a mistake. kevin: i think everyone can agree, politicians -- maria: made a mistake by offering too much. kevin: yeah, exactly, if you talk to other cities said wow, we wouldn't have given what new york did. the question is do politicians messed up by giving too much or securing amazon and not being able to follow through, that's the question, but the problem is it was an option process and
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amazon only came with half of what they agreed to. maria: all right, really important subject and we will keep talking about it. quick break, did you want to say something? dagen: i was going to make a reference for aoc but i can leave that for another hour. >> 3 hours. maria: bernie sanders latest contender to announce candidacy yesterday. speculations around joe biden and michelle obama. selling hot chocolate in border wall, young boy with backlash by raising money by selling chocolate.
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head to 2020, vermont senator bernie sanders announcing he's entering the crowded dem cratic primary race after losing nomination to hillary clinton in 2016. sanders' campaign raised more than $4 million in just 12 hours after the announcement yesterday, president trump weighing in on sanders and 2020 yesterday. >> i wish bernie well. it'll be interesting to see how he does, i think what happened to bernie maybe was not so nice, i think he was taken advantage of, he ran great 4 years and he was not treated with respect by clinton. you have a lot of people running but only one person is going to win, if you know who that person is. [laughter] maria: coming as recent poll show that is top democratic 2020 front runners former vice president joe biden and former first lady michelle obama. real clear politics reporter philip, good to have you on the program this morning, thanks so much for joining us, how would you assays the field right now?
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>> it's always changing, what we saw is you have two of the huge, you know, new york individuals, you joe biden and you also have michelle obama and at this point because 2016 was such a disaster, democrats are looking around everyone from mayors, dog catchers to businessmen, former politicians and are thinking why not jump in, i've got nothing to lose. kevin: phillips isn't one of the best things going to democrats and any candidate now they have gotten rid of the super delegate so a bernie could have actually won but precluded from winning because of super delegates and everyone feels that they have a true shot at getting nomination. >> i think that what we saw the super delegates, they have been changed and also much less of a strong party structure in the dnc because in 2016 party officials, they were completely humiliated. they allowed hillary clinton to become nominee and they saw that
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she was completely defeated in 2020. so i think the other thing that's incredibly interesting here it's not a repeat of 2016 but we need to have some of those issues that made bernie sanders revolutionary, things like medicare for all, things like free college, we need to see whether they make it revolutionary as those pings become party orthodox and interesting to see if you can still stand out. >> philip, mitch roschelle, you used the word party, the question is which party is it, he's technically independent and the question is he going to run as independent or is he going to run as democrat? >> right now it seems like bernie sanders is competing for the democratic nomination, right now he's criticized howard schultz for running to make a third-party bid, i don't think he's going to go that third-party route. as we saw he made so much money in 24 hours, $4 million by comparison kamala harris, another rising star on the left
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she made like 1.4 million, bernie sanders clearly has significant grassroots support and it'll be interesting to see if he can bring this thing home because it's not just him versus hillary clinton, it's bernie sanders versus kamala harris, versus sharod brown, elizabeth warren, that's just in progressive lane. maria: yeah, that's right. dagen: he has done a number of, bernie sanders, fellow democrats where he has pulled them all so far left. >> absolutely. dagen: he has gotten kamala harris and elizabeth warren and cory booker and kirsten gillibrand among many to sign onto medicare for all proposal which eliminates private insurance in the country and democrats can say it's just broad strokes, no, it's not, you read the bill, it's on file and essentially kick more than 150 million americans off their employer health insurance, do away with medicare advantage, rip up medicare, rip up medicaid
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as we know it and they are all buying into it and that's going to hurt them all because i don't know how you'd have a chance against a republican. >> every democratic analyst and operative that i talk to will admit that the entire field has shifted so far left and more liberal candidates than we have seen before. bernie sanders has shifted the poll so much, you have kamala harris in new hampshire who has to say, hey, wait a minute, i'm not a socialist, now this is a question -- this is a question in american politics. we saw incredible moment of realization where he admitted that party has moved so far left that left him behind and in the past he might have been a great candidate, he was good on social issues and fiscally conservative, moderate, but the party has moved onto past him and the question is moved past
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modern and independent voters? maria: he said the stakes are too high to cross our fingers and hope the democratic party nominates moderate who can win over enough independents and republicans and fellow democrats than any open oant can oust trump no matter how far to radical left they are it's a fallacy. do you think he would get more support with comments like this or a lot of people say an independent can't win? >> i think democrats are losing their minds right now. there's so much frustration with how wart schultz. polling show that is the initial polling show that is he would be taking more votes from democrats than he would from republicans and so if you're a conservative you to sit back -- you are going to want to two to starbucks now and enjoy this layout. but i don't know what howard schultz' decision points are.
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he says he doesn't want to help president trump get a second term but the polling doesn't really show a lane for him to become a successful third-party candidate. maria: you don't think he has a shot as independent. what about if he were to switch and become a democrat, he wouldn't get past the party leadership? >> that's an interesting question because right now in order to be competitive in this democratic primary field, you have to be incredibly progressive and even he says things that you are moderately in favor of business, if you come out and talk about debt and deficits which are something that schultz has done and something that democrats as recently of 2004 howard dean was front runner by running on balance budget proposal but now those things are -- that aren't a lot of candidates that want to take seriously and i don't think schultz would be able to as a -- as a centrist candidate make a play for the nomination in the democratic party. maria: incredible. philip, thanks so much, great insight, we will see you soon.
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coming up billionaire boss, trump administration to cancel funds for california high speed rail, border battle coming up. leader nicolás maduro has his own ideas. roger waters weighs in next up.
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maria: welcome back, good wednesday morning, i'm maria bartiromo, it is wednesday february 20th, top stories right
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now 6:32 a.m. on the east coast. futures are inching lower this morning in premarket, investors are awaiting the release of federal reserve minutes later today, a lot of information about where the fed stands in terms this afternoon. down 3 points on the s&p and down 2 points on the nasdaq. major indices took on minor gains yesterday president's day weekend, dow industrials picking up 8 points, s&p up 4 and the nasdaq was up 14. in europe this morning indices look like this. it is higher across the board, ftse 100 up 9 and a half points, cac quarante up 12 and dax index up 30 points, quarter percent. asian markets finished higher overnight across the board, best performer hong kong and korea up better than 1%. fight over funds, the trump administration has pulled nearly $1 billion from california's high-speed rail, the governor says it's retribution over border wall battle, the administration is pulling the funding right now.
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then a young europe, a boy is called names for using hot chocolate stand to raise money for the border wall and he's mocked online and roger waters slammed virgin founder richard brunson, we will tell you coming up. charlotte russe could start shutting down stores and operations unless the buyers step up to save the company, joining us right now to talk more about retail former ceo of toys"r"us and hbc, former target vice chairman and ceo of store ch advisers, gary storch. >> good morning. maria: retail sales number we got last week was very weak, let me get your take on what's going on because wal-mart reported yesterday online sales up 4.2%
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driven by gains in grocery, toy sales, what's going on in retail, jerry. >> of course, there's winners and losers. the people who are doing it right, mastering the internet and adding value to customers, 4.2% out of wal-mart, 6% out of target, 7% out of cosco, 18% in the u.s., so when you add up all the numbers, you know, the way -- the store sales gain was 6% for the holiday season. of course, there's poor performers but that's because they are not keeping up with consumers, jcpenneys, macy's, kohl's. some are becoming yesterday. maria: how do you explain the number down? >> but i think there's something missing there. first of all, the yirpt --
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internet has happened. there's no way if you look at the numbers that the internet was down, only report from washington can say that, that's ridiculous. the internet underperformed, department for december, absurd, why can't that be true? raw data says sales were up but they applied negative 10% because it was december. i'm not sure the discount factor was correct. among other things, black friday, in november this year and they were used by all accounts nothing with that report, i choose to put it on the -- >> not typical of what's going on in retail right now. maria: you're not buying that? >> they are growing and can double over the next year. when you look at retail sales, there's less than 10%, wal-mart was able to use strategy, 2100 stores where you order groceries online and you pull up.
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so is that how a charlotte russ exchanges business model? how do they fix -- >> something else is happening, payless shoe stores, toys"r"us, the cost, the rise of the internet, inability to keep up in that environment, decline in physical traffic brick and mortar stores and the mall. the origin, though, comes into effect that all the companies have one thing in company, hedge funds. so at a time when the world changed, leverage at the time, we talk big cash machines like the world change, internet happened, you have to invest huge sums in the internet, more beautiful than ever, you can only do that with money, so all the firms who are leveraged had no make and didn't make any difference, didn't matter if you
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had best management in the world. they couldn't do anything about it because they didn't have the money to spend, wal-mart did have the money to spend, they have been spending it and you're starting to see the results. dagen: do you think that these larger retailers, a wal-mart, an amazon, even a target, other large retailers that compete with amazon will snapping up a lot of chains, amazon, for example, owns zappos, shop box, wal-mart bought the novus which was fairly young men start-up and there's an opportunity there. >> really good guy -- >> largest acquisition. dagen: no wal-mart. >> am done -- interesting story, great point because we have wal-mart on e-commerce side, stronger e-commerce and amazon
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buying bricks and mortar, why do they do that, one reason to keep with wal-mart in groceries, ultimately grocery is perishable food. i thought that will never work, ship groceries from a centralized price, groceries are around the corner from everyone's store. wal-mart has the stores to do it, approving it now, groceries is one of the best performer of latest quarter. amazon is looking like how do we get amazon in groceries, last ones that amazon hasn't conquered, well, we can try to ship it from whole sailers and centralized locations, they started that way, does not work, they bought whole foods so they can be around the corner of people's homes and that's why they are expanding whole foods. maria: so is that the growth story within retail grocery, where are the growth stories in retail? >> the growth story are people who are doing it right in value in the internet, big believer in people like cosco, wal-mart,
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tjmaxx is worth more than target, tjmaxx is worth than the entire department store sector. the whole thing is the price. dollar general, valued player, those companies can keep winning. maria: we can't let you go without asking for toys"r"us. what are your thoughts here? do you think toys"r"us will come back? >> i think there's room for major toy chain and given my prior comments, toys"r"us did not go bankrupt because consumers didn't want to shop at toy shore, the problem is highly leveraged in an environment where investment was required. you start over again, let's do it right this time i think you can do it. maria: do you want to be involved? >> i can't comment on anything like that but it's a beautiful day. [laughter] >> it may snow later. maria: sounds like you would like to see toys"r"us come back? >> all the people worked so hard, whole careers in the
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business. who wouldn't to see it come back? fantastic brand. maria: great to see you. >> my pleasure. maria: thank you so much for joining us. i knew that fourth quarter was stronger than those numbers and i'm really glad -- yeah. and then everybody who came out, such a strong quarter, those numbers made no sense. the trump administration wants california to pay back billions of dollars meanwhile for the failed bullet train, cheryl casone on headlines, cheryl. cheryl: we are talking big numbers, maria, the trump administration says it wants back 2.5 billion and says it will cancel grant for another billion dollars in high-speed train that would have linked los angeles and san francisco. california is one of 16 states that's suing over building border wall. democratic governor gavin nesom it's political retribution.
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by the way, no train, it'll never happen. a 7-year-old in boy texas is called little hitler, the boy's parents setting up stand outside a strip mall in austin, texas. >> we've had a lot of supporters and some that -- are you going to stop selling? >> i'm not going to stop until the wall is built. cheryl: the boy has raised $5,000, we should add both parents work for rnc. richard brunson taking heat for organizing benefit show to raise funds for food and medicine for venezuela. roger waters is slamming the event says the u.s. and other nations should stay out of venezuela's business, president nicolás maduro is holding two
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competing concerts this weekend. meanwhile a position leader juan guiado to deliver and telling trish regan it will get to american people. >> we will have a fantastic opportunity saturday to accept important humanitarian aid that the government in venezuela has ford bitten and we have a fantastic example -- cheryl: maduro refused to allow aid from neighboring countries that are recognized. maria: what a story, incredible. cheryl, thank you, coming up lowering the voting age, one state considers making the voting age as young as 16 year's old. the shocking reasons why, next up.
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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. [indistinct conversation] [friend] i've never seen that before. ♪
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maria: welcome back headline as cross america this morning, arizona republic writing about controversial dna database bill that would scale back to patient care professionals only. under this revised deal dna would be collected by those required by law to submit their fingerprints and provide care at nursing facility. the orlando center announcing driverless buses will soon begin operating in orlando, local officials reveal that two of the driverless buss are expected to go into service by spring, the vehicles can hold up 15
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passengers and reach speeds of 16 miles an hour and the arizonan reporting that lawmakers are seeking to lower voting nature the state to 16 year's old so that teenagers can protect their future, according to paper lawmakers want to get age lower ahead of 2020 elections, state senator saying, one state senator saying the teens should have participate in ballot. announce the plan along with lawmakers, dagen, what do you think ant that? >> people who actually -- surprise anybody that it's happening in oregon, though, right in. >> yeah. that came to my mind, seems parse to the course. maria: incredible, actually it's 16 year's old too long, is a 16-year-old following the issues. dagen: i didn't finish my thought but to the extent that somebody wants to participate in electoral process, i'm all for that, really that they that
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engaged? >> exactly. dagen: are they even driving? >> they can't buy a beer. dagen: that's good, you don't want drunk teenagers voting, that would be a disaster. maria: amazing, the new key to fighting depression may come in a form of a spray, dr. mikhail varshavski to talk about that coming up.
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maria: welcome back, nasal spray developed by johnson johnson & n to fighting depression, a form of well-known street drug, a panel of experts trying to
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convince fda to approve it. joining us right now dr. mikhail varshavski also known as dr. mike. what do you think about this? >> you know, we haven't had a breakthrough of treatment of depression in about 25 years, it's about time that we get pharmaceuticals that can mitigate types of depression but before everybody runs away from the story we need to hold their houses, why, a drug that will be used in very specific subset of patients for severe-treatment depression. this isn't first line medication. i don't want patients run to go their doctors and saying i've been taking medication for years, let's try this new thing, this is not what this is for, very specific instances, we don't yet know the long-term profile of this, there's a lot of questions to be had, so when patients see ad like this come out, there's a lot of press happening, they get very excited, i want them to know if they're curious ask your doctor, have the conversation and only then will we make steps.
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>> it's a very heavy drug, i mean, that takes down a horse. >> sure. >> ramifications are huge let alone as street drug and nasal spray. >> that plays role on how it's activated. if you take high dose, you get i -- here is why there's a lot of hype around this, the drug acts quickly, traditionally medication fsri's take weeks for start working and this is difficult in patient who is have suicidal and need help now. we have seen results happen 4 hours, 24, that's why psychiatrist all around the country are interested in see
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the long-term safety profile. again, we have all the questions, johnson & johnson is currently doing trails on this but we will see where it goes here but i don't want people to jump the gun early. maria: forget the treadmill, push-ups are health. >> yeah. maria: new study rather out of harvard the th10 school of public health finding that men with the ability to do over 40 push-ups have a 96% lower cardiovascular than those who can barely do 10 push-ups, what do you think? >> so obviously that's the case. i always tell my patients they should be exercising doing push-ups, official recommend sags to do both weighted exercises like push-ups where you're using both weight and cardio, the reason why -- [laughter] >> can only do 39.
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>> i don't know. [laughter] but what we found in the study which is interesting, being able to do 40 push-ups is tied to better cardiovascular disease outcomes than those with really good aerobic capacity, let's throw you on the treadmill and see what outcomes are going to be, in reality push-ups are easier alternative, get on the floor and do push-ups. maria: i like that, mikhail varshavski there. cbs earnings are out, better than expected on cbs. we have the stock in the last couple of months, then southwest cutting first-quarter forecast, all that next.
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maria: welcome back. good wednesday morning, everybody. thanks so much for joining us. i'm maria bartiromo. it is wednesday, february 20t february 20th. your top stories right now, 7:0. a warning from china, state media there says that new tariffs would be catastrophic for global markets. this morning, futures are pointing to a lower opening for the broader averages, dow industrials down 25 points, s&p down 1 point, nasdaq is up, just about a point, though. investors are wait on the federal reserve minutes, out today at 2:00 p.m. eastern. we're looking for insight into the fed's decision to pause raising interest rates and the path of winding down the $4 trillion balance sheet. the markets closed near the flat line yesterday as earnings continue to stream through. yesterday at the close dow
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industrials were up 8 points cvs health reporting earnings above expectations. global markets european indices are higher across the board. the sack in paris is -- cac in paris is up 16. best performers in hong kong and korea. cbs just out with earnings, the results were mixed. profit beating expectations but the revenue is coming in light and the stock is sliding big-time, down 4 3/4% right now. cbs shares looking like a 5% decline at the start of trading this morning. we are bracing for severe winter weather this morning, millions of americans are in the storm's path. we've got the forecast coming up. the gaming battle, fortnite facing new h new competition. we take a look at the state of the industry this morning. strauss zellnick joins us live.
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joining me to break it down, dagen mcdowell, kevin kelly and mitch rochell. great to see you this morning. >> good morning. >> good to be here, especially when we've seen great earnings season and we're starting to see it bifurcate when it comes to a cbs, right, they're in a tough spot. everyone was getting to the healthcare side because it's done so well but now we're starting to see the earnings aren't backing up the thesis. maria: the forme former ceo ofr us was here and said retail is doing very well. retail sales number we got last week, he basically said it's not true. >> it's completely inconsistent with all the traffic reports, all the anecdotal and real evidence of how the season went, so -- >> i mean, i think everyone across the board has completely dismissed that december retail number because it was so -- it was so flabber gastingasting agt
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the hard data we're getting from the private side. dagen: there's a story in the journal today, something i've been watching is quite frankly the complacency about interest rates, about what the federal reserve did. everybody is sitting back, thinking that oh, the fed's not going to hike interest rates in the next 12 months and they're going to really reduce -- basically reduce the balance sheet pullback and if you look at the 10 year, it closed at 2.64% yesterday. there's a real, real ignorance in some ways in particularly the bond market, the longer term treasury market and maybe even the stock market about what the federal reserve is going to do and the direction of interest rates. seems like they can only go up from here. that would be, again, depending on how high, that would whack stocks in the face too. maria: now the thinking is one rate hike in 2019. >> the fed fund futures, almost 90% of the folks are saying nothing.
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maria: you're saying it could be more than one. dagen: again, if the economy is better than we think, then the federal reserve is going to have to step up, whether we see it in the earnings, whether we see it in some of the economic indicators. maria: 90%, no rate hike, that's amazing. we'll keep waifing that. we get the minutes today at 2:00. investors are watching the u.s./china trade situation. top negotiators from washington and beijing working to hammer out a deal to end the tariff fight. chinese state media is reporting that renewed u.s. tariff woulds be catastrophic for the global stock market. this comes after president trump's comments about extending the deadline just yesterday. >> i think the talks are going very well with china, you're referring to. the talks are going very well. the group just came back. now they're coming here. i can't tell you exactly about timing, but the date is not a
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magical date, a lot of things can happen. maria: joining me right now is pennsylvania congressman and house budget committee member, dan muser. thank you for joining us. >> thanks for having me. maria: do you believe we will get a deal done with china and what do you think are the most important elements of the deal. >> we talk a lot about chinese buying more soybean. the bigger issues as we talked about every day are the i.p. theft and forced transfer of technology and even espionage. >> the president is certainly very determined to get this done as is his administration. he's got some very good people of course working on it. you know, we've got a big problem with china and that's not news to anyone. we have trade with china in the $650 billion range, which is actually a little bit less than canada and mexico. yet at the same time, we have a trade deficit with canada of $4 billion and we have a trade deficit with china of
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$350 billion. so this problem is not created by the u.s. or certainly not president trump. it was created by china and we do have intellectual property issues. we have patent issues. we've got quite a few issues and the president's determined to correct this. right now, he's put 10% tariffs on $200 billion of product. that's supposed to last until march 1st. president's already extended an olive branch stating if we can't get it done on march 1, we can give you more time at 10%. if not it's going up to 25% many this is a problem that's existedded for decades. president trump is determined. maria: do you worry that going up to 25% is going to impact the chinese economy and as you see the editorial today out china, it's going to be catastrophic on the global market according to the chinese op ed zo zoo.
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>> clearly china's growth has slowed. their economy is suffering. it's very much in their interest to come to terms. again, i like the president's position. we are in a he position to finally bring some corrections here. i think that the folks on the chinese side of things are seeing that. and i'm pretty confident that we're going to come to a resolution. maria: all right. let me move on to the nafta talks because president trump is encouraging members of congress to approve his new usmca deal, the deal with canada and mexico, nafta 2.0. it was signed by all three countries at the g-20 summit in november. your state of pennsylvania, largely dependent on nafta. are you supporting usmca? >> you know, i am. i do think it's brought reforms, modernizations to nafta. it was a win-win-win, all left that trade negotiation pleased. canada wanted very much to keep
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the act 19 mediation process in place. we needed to open up canada for dairy, which is very important to my district and to my state. from a mexico standpoint, there's a stronger country or origin manufacturing requirement and a need for wage increases. so we all compete on a fair playing field. it's a win-win-win and i do support it as a member of congress. maria: a lot of people think it's a win-win but at the same time a lot of your colleagues on the democratic side said they're not going to vote for it and they're going to wait until it's changed. they want sweeter deals for unions and labor initially you thought the unions were happy with the deism yo deal. you knows your colleagues on the left don't want this president to have any success. >> the unions aren't happy with it. the democrats unfortunately in congress are playing a lot of politics here. we've seen this with the -- with our border funding issue.
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hopefully their constituents call in to those 20, 25 members that are -- maria: is he going to have to change it to get your colleagues' votes? >> well, they'll have to be specific as to where they're looking for changes, so we would deal with that, should they be specific. but it's a strong initiative. it helped workers. it brings back manufacturing. it provides what each country came to the table to -- and was asking for. the president and his team did a very good job here and we're going to do our best to bring that out in congress. maria: congressman, let me -- go if we can get to -- the president's goal is not higher tariffs and the goal with china is certainly not to get to 2 a . the goal is to reduce tariffs. this is not about raising tariffs, it's about lowering tariffs worldwide. if we do that, maria, we will
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truly have an economic boom for many years to come. maria: well, maybe, but you've also got a big old debt hole that we're all watching. i want to ask you about the debt, given you're on the budget committee. because as debt rises, interest costs are now -- could top a trillion dollars at some point for the year. let me tell you what the committee for responsible federal budget is saying about the current $22 trillion in debt that this country faces. obviously this is a record high. interest payments are going to rise from $325 billion last year to $928 billion by 2029. that is a three-fold increase if tax cut spending increases are extended, interest will exceed a trillion dollars and set a new record as a share of the economy for the year. so what do you do about this? >> well, you know, the tax cuts created a great economic advantages. people in my district are
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receiving over $1,000 a year and our businesses are that much more competitive. the amount of deficit that the tax cuts have created is greatly over-stated. the tax cuts haven't paid for themselves yet. but it adds up to about $160 billion, a far cry from the $900 trillion of deficit or excuse me $900 billion of deficit that we are dealing with on an annual basis. we do have some serious long-term spending problems that, yes, i am on the budget committee, that we plan to deal with to the best of our ability. maria: but how can you deal with them? we know that much of the growth in spending is the entitlements. i'm not blaming the tax cut plan. what i am looking at is this crazy spending that has been going on these last couple of years. do you see any areas to actually rein that in, to put a dent in this or is this going to take a
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massive agreement around things like social security, medicare and medicaid? >> and i know you know this and i also know you know that over the eight years of the obama administration we raised our deficit or increased our deficit by $9.5 trillion. maria: obama doubled the debt, you're right. >> right now -- yeah, with not a lot to he show for it. so we do need to bring the spending into a responsible machiner and seek a balanced budget. it's not going to happen overnight. yes, there really are two different budgets. one is discretionary spending, one is nondiscretionary spending. we are going to have to look at some long-term planning, something government frankly isn't all that great at. but we absolutely need to do it to bring some fiscal responsibility. and again, not over the next two years, but we need to start now. the sooner we start, the easier it will be and the less burdensome it will be to people.
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but you know, the whole idea is to be able to do this in a smart manner so people really don't feel it and people like myself, 15 years from now maybe i see some changes but the people who are receiving social security now that have paid into it need to be secure that they will continue to receive it. maria: understood. >> at the current levels. we can afford to do that. they paid into it, they should get it. for the next generation, it needs to be corrected. maria: thanks very much for joining us. we appreciate it. >> thank you. maria: president trump just tweeted, we want to tell you what he has to say this morning. crazy bernie just entered the race. i wish him well writes the president this morning. coming up, winter storm warning, millions across the u.s. bracing for bad weather. plus how the record jet stream winds impacted a flight to london. we have the story. fortnite getting competition from apex legends, what it means for the business of online gaming coming up.
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$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. cvs health out with mixed results earlier this morning. the stock is getting impacted. cheryl casone has the details. cheryl: the expectations, they posted an adjusted process that beat expectations but revenue of $54.4 billion, it missed the street's forecast. cvs also forecasted earnings for full year 2019 below analyst estimates. remember, this is the cvs, aetna merger that we're looking at here. shares of cvs are sharply lower in the premarket. down about 5%. first look we've gotten since that grouping together of the companies. now to southwest airlines. they say the cost of the government shutdown is worse than expected for their bottom line. the airline announcing the shutdown has cost it $60 million
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in revenue this quarter. it originally predicted the hit would be 10 to $15 million. shares of southwest trading much lower in the premarket, down more than 3.5% right now. well, let's go to travel. millions are bracing for a winter storm sweeping across parts of the midwest and the east today. the storm already bringing up to 5 inches of snow to the west earlier in the week. the snow is likely going to affect travel conditions at several of the nation's busiest airports. meanwhile, jet stream winds from the southwest to the northeast have reportedly helped a plane, a passenger plane break the sound barrier. it propelled the aircraft to a whopping 801 miles per hour. it was a virgin atlantic flight from los angeles to london. it arrived in london 48 minutes early. could we do that every flight, always? maria: good stuff. thank you so much. looking for clarity, we are going to talk about the federal
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reserve releasing the minutes later today. the market reaction as well. want to see what the fed says about rate hikes and about the unwind of the balance sheet. a massive contract hitting the diamond, details on baseball pros manny m machado's eye dap-g deal. back in a moment. ♪ may have lost this battle, live to fight another day. ♪ now i'm falling in love [ telephone rings ] [ client ] - hey maya. hey! you still thinking about opening your own shop? every day. i think there are some ways to help keep you on track. and closer to home. edward jones grew to a trillion dollars in assets under care, by thinking about your goals as much as you do.
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a get your questions answered by awesome experts store. 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. maria: welcome back. president trump just tweeting, he says this this morning. the press has never been more dishonest than it is today. stories are written that have absolutely no basis in fact.
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the writers don't call, asking for verification. they're totally out of control. sadly, i kept many of them in business. in six years they all go bust. i'm pretty sure the president is not referring to this program. [ laughter ] ha. maria:program.the federal resers this morning. we're awaiting the release of the fed's minutes. we're looking for insight on what the fed is thinking about winding down the balance sheet. joining us now is head of investment solutions group, keith banks. keith, it's great to see you this morning. how important is the federal reserve news today an what are u expecting we'll hear. >> i'm not sure today will be overly insightful. i think what happened is the fed was spending too much time worrying about wage inflation and what that would do in terms of driving overall inflation and i think what we've seen is they've since reconsidered that. as you said in your intro, maria, the big pivot was one of
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the major catalysts for why the market went from where it was in december to where it is today, up 11.23%. maria: we're wondering how slow the economy is. we had the former ceo of toys r us on. he said don't believe the retail sales number last week. actually, the economy is running pretty strongly. so does that threaten this whole pivot idea? >> you know, we agree the economy's healthy. we think you're going to get between 2 to 2.5% real growth this year in the economy. but we don't think that level of growth is going to take inflation to a level that will concern the fed. so we think inflation will stay below their objective of 2%. i think it's around 1.7, 1.8% now, if you look at the pce deflater. we need to see the economy healthy to justify the earnings growth expectations that are in the market right now and i think the fed as they said, they'll watch the data, they'll be p patient, and we'll see how the year plays out. >> i'm glad you're bringing this
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inflation point up because we're seeing a little in the average hourly earnings. the problem i think with the fed is the asset inflation. they're talking about asset inflation and possible bubbles. do you think that's what could make the fed move in the second half of this year to raise rates as they've indicated? >> it's a good point. i think if we see the markets continue to move, our own forecast from our cio office as well as bank of america, merrill lynch research, is we could move toward a 2900 toward the end of this year on the s&p. if the markets continue to do well and we get 2.5% growth, will the fed kind of sit down again and say is it time to move further toward normalization? possibly. i'm not sure at that point in time that will be a real big negative for the markets, if earnings are coming through, if it looks like we're going to get a reasonable 2020, which we think we will, so there's -- as you know, it's a lot of
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ingredients that go into the cake. have you to sort them out to figure out the implications of any one move. >> what about the unwind of the balance sheet. it's automatic at $50 billion a month and we're hoping that we see something in the minutes that sheds light on whether or not they're going to reverse that. if they do slow down that pace, do you think that changes the dynamic in the capital markets at all? >> i don't think so. i think what the capital markets want to hear and see, it is not on auto pilot, that they have the ability depending on what the data tells them to slow that down. i think the initial thought was we'ring doing four rate hikes and by the way, the balance sheet unwinds on auto pilot so there you go. i think a lot of people believe and i think you may have said it that the end game is $3.5 trillion to 3.7. you can get there by the end of this year in a very natural way. i don't think people are going to be overly wound up. unless they indicate for some reason they feel a need to accelerate that which we don't
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see. maria: how do you want toal locate capital right now. >> we're still overweight equities. we made some shift last month. we reduced our exposure to developed international markets because europe has got issues right now. we're overweight the u.s., we're overweight large cap, still very diversified and our feeling is that as the economy demonstrates it will grow in that 2 to 2.5% and you see earnings following, the equity markets will outperform fixed income but stay with high quality, we like large capitalization stocks, we like companies that have stock, havee cash flow and pricing power. by mid-year this year this expansion will be the longest in history, will eclipse the 1991 to 2000 one. we think this can go on for a while. maria: europe is talking about 1% growth for the economy of europe. >> germany was marginally -- would bwould out of a recessione
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0.3%. maria: keith banks joining us there. andrew mccabe shocking claim, he said it's possible president trump is a russian asset. okay. right. then game on, the new video game apex legends challenging fortnite, the big business of online gaming coming up. back in a moment. ♪
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maria good wednesday morning. welcome back, everybody. thanks so much nor joining us. i'm maria bartiromo. your top stories right now, 7:3. markets are inching lower in the premarket. investors are awaiting if release of the federal reserve minutes later today. dow industrials down 20 points, s&p a 500 down 1, and the nasdaq is higher, just by 2 points. this all after the major indices took on minor gains yesterday. s&p 500 up 4, the nasdaq was up 14 at the close yesterday. in europe this morning the indices are higher across the board. fq100 up 11 points, cac in paris up 13, the dax in germany up 41, a third of a percent higher in germany. asian markets finished higher overnights, across the board. best performer hong kong in korea, up better than 1%. the victim of conspiracy, that's what carlos ghosn's lawyer is
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saying about his client. the former nissan chairman. we've got more on those details coming up as he sits in a jail, continues to be in jail since november 19th. then a massive contract hitting the diamond, details on baseball's manny machado's eye-popping deal. playing for keeps, the ceo of take two interactive, the company behind grand theft auto, he'll join me live. we'll talk about his plans to take down r fortnite and apex legends coming up this morning. first our top story this half hour, former fbi deputy director andrew mccabe making serious allegations about president trump and this supposed tie to russia in an interview on cnn last night. watch this. >> do you still believe the president could be a russian asset? >> i think it's possible. i think that's why we started our investigation and i'm really anxious to see where director mueller can prove that. maria: joining me right now is fox news senior judicial analyst judge andrew napolitano. how does he keep getting away
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with this nonsense. >> i sighed when you ran the clip because law enforcement does not go on possibilities since anything is possible but on probabilities. so the answer may have been technically correct. it's possible. to the extent that anything is possible. is there evidence there and is it probable? he's trying to sell a book. he is really putting himself in a bind thanks to a very new aggressive chair of the senate judiciary committee and rightly so in my view, senator lindsey graham who is basically saying this guy is contradicting what rod rosenstein told the president, what rod rosenstein told us and he's contradicting what jim comey said. i'm going to put them under oath and find out who is telling the truth. he's in my view buying himself more trouble than selling books is worth. maria: see, the problem is, they do not have an answer to why they launched an investigation into donald trump. >> or if they do, they can't or won't reveal it. maria: they keep saying stuff like he's a russian asset.
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there's absolutely no -- >> that's not credible. maria: it's absolute ridiculousness. >> when he says possible, he's either hiding something that he can't reveal or he doesn't know what he's talking about. because again, law enforcement goes on problemmabilities, is something more likely than not. the probable standard comes directly from the constitution, it's the contusion for getting a warrant, is it probable there's evidence of crime here, no, sir it is possible. anything is possible. maria: that's why they had no evidence to wiretap carter page except a salacious dossier. they used it to wiretap him. >> the fbi has been seduced by the ease with which a warrant can be gotten under fisa. far lesser standard than the probable cause standard. so they can get a warrant from sai, claim they're starting a national security investigation. maria: and they did.
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>> and slowly and 2k3wr5 gradua, without transparency, move it into a criminal investigation. a criminal investigation they could never have started under the proper probable cause standard. dagen: these comments in these interviews that he's giving for this book are almost mind-boggling in their falsehoods, that he went in front of congress after jim comey was fired, i'm talking about mccabe, and said the president was completely within his authority to do what he did in terms of letting jim comey go and now he's out saying this. he can't reasonably explain why this conversation about the 25th amendment with rod rosenstein isn't in the book, what he's saying about what he told the gang of eight about the counter intelligence probe into the president, according to katherine hai hairage's reportis confusing. it was months before he said he
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briefed them, there's so many -- maria: the probe was launched before july. officially it was july 31, 2016. they were investigating president trump beginning in march. >> the gang of eight is a select group of members of congress, the head, the chair and the ranking member of the intelligence committees of both houses, as well as the majority leader, minority leader, speaker and minority leader. so the eight most important people in the congress in this area that the fbi is required to report to even not reporting to the president. but required to report to them. he said yesterday that he did this to which our people said big deal, they knew about this months before you say you reported it. look, this is going to sound cold. it's not a crime to lie on television. it is not a crime to lie in selling your book. it is certainly a crime to lie to congress or to lie under oath. >> not being held accountable, we've had time and time again where they were under oath dis
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let's say lindsey graham -- dagen: let's say lindsey gram callegrahamcalls these gentlemet of congress, what if they don't show up. you need an attorney general that will prosecute them. >> senator graham is not going to ask them to come in. he's going to subpoena them. he used the word subpoena the other day. dagen: if they ignore it -- >> if they don't show up, they could be arrested. maria: william barr said he will seek the truth. he is on the job, the new attorney general. what else somebody should ask andrew mccabe, if donald trump was a russian agent, a russian asset, why after he fired jim keep, why did andrew mccabe march into the office and say can i be your new fbi director. you want to be an fbi director of a russian agent? interesting. >> he describes the interview as bizarre. that's his characterization of it. there's no record of what was
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said. it clearly was a job interview. obviously the president decide d not to hire him. maria: it's amazing robert mueller is not looking at any of this. >> he may be and we don't know it. senator graham is determined to get to the bottom of this and i believe also thanks to senator graham, these interrogations will be in public. we will be able to see and evaluate for ourselves who we think is telling the truth. dagen: we still have the i.g. horowitz report to come out about this very investigation. we still haven't seen that. maria: where is john huber from utah, also charged with this. >> where are all those people we're supposed to indict. maria: thanks so much. manny's massive deal, slugger machado signing with the san diego padres inside one of the biggest contracts in mlb history next. video games facing increased competition from online hits such as fortnite and apex
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prosecutors. cheryl casone has the details in headlines. cheryl: the new lawyer for the former nissan chairman says ghosn's arrest was a result of a conspiracy. ghosn's lawyer also dismissing the case as an internal company matter, saying it should have been resolved inside of nissan. he also said that ghosn's trial might not get underway until after the summer. ghosn was arrested in november over alleged financial misconduct. well, the san diego padres reportedly signed free agent short stop manny machado to a 10 year, $300 million deal. that makes it the biggest free agent contract in the history of american sports. the 26-year-old is reported to be in discussion was the new york yankees and philadelphia phillies but the padres signed him. meanwhile, baseball is one of america's hottest sports. the number of people who play baseball is up 21% from 2014 while other major sports are seeing a decline. major league baseball credits
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programs lik like play ball. and finally, there is this. a haircut in vietnam with a political twist. a barber offered to cut your hair -- is offering to cut your hair in the style of president trump or north korean president kim jong un. you decide. [ laughter ] cheryl: it is orange. this is his way of honoring the second summit between the two leaders next week. if this ends on february 28th, that is the end of the two-day summit. maria: that is great. cheryl: yeah. go get your haircut. maria: how do you like those haircuts? >> you could pull off the trump haircut. >> i've been looking to mix it up a little bit. i think this is a great way to do it. if you like sound fiscal policy, there's no better way than to get the trump. maria: would you do the hai trp hair or the kim hair?
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>> i don't think i could pull off the kim hair. >> i could pull off the kim hair. dagen: you could do it. >> this is not a bet we're taking on, kevin, let's just be clear. >> i'm willing to raise the stacks. fig ouwe'll figure out a bet. maria: coming up, i sit down with the ceo in charge of some of the biggest hits in gaming. back in a moment. ♪
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...you get more than just savings. 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. maria: welcome back. we are talking about the fastest growing business in the entire entertainment industry, one of the biggest names in the video game industry, take two interactive software, responsible for some of the top selling games of all time,
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including grand theft auto. joining me now is the ceo, strauss zellnick. great to have you on the program. we were talking about the strength of this industry and it is incredible. young people and old people. this is really what you're seeing in terms of growth within entertainment. characterize it for us. >> look, the average gamer is 35 years old. and people consume for the rest of their lives, that which they fell in love with at the age of 17. so as the cohort ages, the cohort grows. that's why we expect the sector will probably continue to grow at a rate faster than gdp for the foreseeable future. maria: you reported record earnings. you had a very strong quarter. your stock went down because some of your other competitors like ea, like activision traded down. tell me what happened the other day when the stock traded down. >> our view is the sector has been re-rated. not much more than that. we guided up. we said not only did we have a great quarter, we're going to have a great year.
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red dead redemption had the biggest opening weekend in the history of entertainment off all types. we're firing on all cylinders. that's our job. that's what we can do. and the market will eventually reflect the fundamentals. maria: were the expectations up here for some of your competitors and then there was a disappointment elsewhere? >> i think -- maria: your company got caught up in that. >> certain analysts may have taken the view that interactive entertainment has become a fast business. it's still an entertainment business. that means you put out titles. some work, some don't work. over time, most titles will have a decay curve. maria: what about competition from hit games like fortnite. let's talk about that. you've got apex legends. how much is fortnite you cuting into the business? >> we think that other people's hits -- by the way, we would love to have all the hits. we can't seem to get all of them. we have some of the biggest like grand theft auto. other people's hits probably large the audience.
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entertainment is not a substitution property, not a property that you must have. if there's a number of things you want, if you can afford it will consume them all. just by way of example, our last fiscal year, fortnite was a huge hit then, grand theft auto online had a massive year. we think it's great that there are other hit titles in the markets. hillarythe.maria: how do you ks going? how do you keep this kind of growth. >> our challenge is to get up everyday and think about how do we entertain, cap a captivate or consumers. maria: new games. >> we are driven by quality. we're driven by a mission to entertain and the people who work at take two pursue their passions and their passion is to be at the forefront of the business. we find that revenues, monetization, profits and the like always follow that passion and the quality of our work. maria: what is a realistic growth level for the company, let's say the next five years. >> well -- maria: or three years.
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>> i think that the industry will continue to grow. we have enormous tail winds. we have to execute day-to-day. we have an incredible lineup. in the next fiscal year we have a huge title coming from one of 2k's biggest franchises and the red dead redemption online is still in beta, still rolling out, still gaining traction. the early engagement looks terrific. maria: 23 million units is incredible. >> still selling. maria: look what's happening on the streaming side. we have reports that google is looking to report a netflix style streaming service. what do you make of those developments? >> i think streaming, which is a technology business model of course, is likely to be important to our business, probably within the next two or three years. that should bring our properties to people all over the world who don't have dedicated gaming machines. how big will it be? very hard to say? is it a positive? yes. it won't help you if you have a flop. it will help you if you have a hit. we aim to deliver a lot of hits. maria: what about streaming for
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take two? >> we're right there, wherever the consumer is. we were one of the first companies to embrace digital distribution. that's now 45% of our net bookings from zero ten years ago. we were one of the first companies to launch add-on content delivered digitally for grand theft auto for. we're one of the leading companies that engages consumers after the initial launch of the title. maria: can you further monday ties after the people have the game? >> monetization goes up when you entertain people. recurring consumer spending was 22% of our overall net bookings. our focus is on engaging and captivating, not on monday p at thmonetization. we're not a data company that happens to provide entertainment. we're not a monetization business that happens to provide entertainment. we're an entertainment company first and foremost. monetization follows. maria: there is a lot of data.
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you recently said china trade talks could help the video game industry. talk to us about that. we're in a race in terms of a.i. and data with china right now. >> we think there's a lot of opportunity in asia broadly and china more specifically and we're cautiously optimistic about where the trade talks may take us. we have a terrific title in china. we have the number one pc sports title in partnership with 10-cent. with 43 million registered users. so we think that's just the tip of the iceberg in china over time. we do have to comply with local regulations. maria: does the growth at take two largely come from the u.s. or is it an international story even more so? >> it's very much an international business. i think over time a lot of the growth will be outside the us. right now it's about 60% domestic, 40% international for our sports business. that's growing from an international perspective. overall we're close to 50/50 domestic and international. maria: how do you change the
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titles in terms of being exposed to different cultures? >> well, we localize our titles. there's language localization for our titles. we do more and more of that. we find the more localization we do, the better a title will do locally. in certain instances, for example in spain, which is a good market for our basketball product, we will add a local commentator and that person will have a following in the spanish market. that will sell more titles, more units. maria: i don't know what's making you look younger than you ever have, whether it's this business or your new book, becoming ageless. i know you've been into wellness for a long time. tell me about the book. >> i was encouraged by my publisher to write a book that sort of talks about my interest in wellness and health and fitness and so i did. and it says the four secrets on the front. i'm not sure they're secrets but the idea is go to your doctor, focus on health, have a healthy diet, move, get some exercise and have a spiritual life. maria: good to see you.
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thanks so much. we'll be right back. 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.
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are all waiting on federal reserve minutes today due outlet 2:5 pm eastern today, insight into fed decision on pause in terms of parching raising interest rates path of winding down balance sheet people believe that unwind he done by year-end, market near flatline yesterday dow industrials up 8 points close s&p 5 hn up four nasdaq up 14. as you can see, fractional moves higher yesterday global markets this morning, higher ft 100 up a faction 0 points cac quarante up 10, dax in germany up 40 points up one-third of a percent, in asia overnight gains across the board there as well best was hong kong korea, each up better than 1%, move over apple samsung major inventory to unfail new phone look at promotion a preview, fresh privacy concerns for google this morning the giant updating home security products, allowing them to
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work with the voice assistance there is one problem, user didn't know devices already have microphones in them backlash google is saying now about that microphone that didn't tell us about. >> take a look at that a burberry a model with a wearing a noose outrage on burberry this wednesday with morning to break it down fox business network dagen mcdowell benchmark managing partner kevin kelley pwc partner mitch roschelle great to see you -- >> fashion. >> -- noose around the neck? >> sorry -- >> no, it is not funny one model said suicide is not funny it is not funny but i don't know what to say about that. dagen: you have to about a stone-cold idiot for somebody to have to say nooses idea of
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lynching in poor taste. >> talking about it anything to do with getting brand out there. >> they have removed that from the lineup, apparently, a lot going on today though. >> p a quick point about the fed i think one of the ramifications that markets are focusing on is should they raise rates will that impact the dollar we have seen earnings season companies have two main concerns trade and strong concurrency dollar has been strong, and impacted their sales so especially when talking about europe and emerging markets can't necessarily afford a stronger dollar to do trade with i think that will be pretty interesting. maria: yeah. >> but as you said earlier, the -- fed funds futures 90% folks thinking no rate hikes if anything in minutes deviates from that markets are going to react. maria: yep amazing 90% right now gone -- from -- >> what 50%. >> 3 or for hikes to especially with -- economic data.
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>> a jobs' report, has validated the fed decision in december, that is why it was so fascinating to see a capitulation from the fed. >> you raised issue 6 weighingness in europe as well, compared to the united states, the story that journal yesterday i meant to bring up, that there is -- in terms of evidence of the weakness, around the global particularly europe and japan investors around the world are paying governments to hold more than 11 trillion dollars of bonds, because of the negative interest rates paying the government to own their debt, that is just -- a -- kind of exemplifies insanity what is happening. >> look at the 10 year, 63, compare to -- to germany and japan -- you know negative close to negative, really shows you, why -- capital keeps flowing to united states. >> charter compelling with the story yesterday because it visually tells you my worry with that i've got no wiggle
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room if anything changes and we don't have a lot of wiggle room here either, it is in fact being o if we were needing to cut interest rates, there already so low, there is no wiggle room. >> you know what they could do yikes buy -- mortgage securities again we talk about reduction in balance sheet? blow it up. >> market -- >> blow it up. >> jobs, artificially suppress interest rates via market manipulation, my -- sense is no. >> only way -- >> how are you grandma? >> i move grandma. >> this afternoon we hear from fed top story this hour 20-20 vision, senator bernie sanders becoming latest democratic contender for president campaigned saying raised more than four million dollars in just 12 hours after announcement running a new poll shows joe biden former first lady michelle obama favorites to 2020 democratic presidential nomination former starbucks ceo howard schultz
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firing back says no democratic with an unseat president trump to discuss co-host of the five juan williams op-ed today good to see you thanks for joining us what do you think about what howard said no democratic right now is going to unseat president trump. >> i think he is running for president and running for the democratic nomination wants to elevate himself, one can do it. >> you think going to become a -- he is going to the democrats and try to get that -- >> i think he is a democrat. >> you are right. >> democrat, and i think thought that he couldn't win democratic nomination trying to run in a different lane as independent whatever but really democrat, hopes to about able to each if he doesn't official become a democrat maria, woo democrats to say oh but we need howard schultz nobody else can win his line. >> that is the point not able to get through the radical left in the democrat party, isn't it true that he won't
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because he is because he is saying he in addition the middle? >> you know i love coming on this show the radical left that you speak about is pretty mainstream this juncture why bernie sanders says what he was proposing in 16 tie accepted by most americans medicare for all help with student tuition student debt. >> you think that is mainstream. >> i don't have to think i can look at numbers fox pols reuters gallup polls, medicare for all think like healthy help students tuition debt so many issues minimum wage,americans think this is right. >> i don't know about that. >> 15 dollar minimum wage. >> i don't know they do like that, but, again, it is a matter of cross counties will it work in our community, that is what people are testing. but the ideas themselves are not radical. >> and because of that, bernie
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seems to about doomed too many progressives in his lane seems like it would negate his chances at winning back primary. >> that is right, so when he announcesed yesterday he said he is father so many ideas. >> grandfather. >> [laughter]. dagen: again polls, against on how you ask the question. and kidser family foundation i hold up intentionally survey found 56% of americans claim to favor medicare for all and falls by 19 percentage points when you explain to them, that it involves taking away private insurance in 24 country, again how do you ask the question? and the bernie sanders proposal for medicare for all the one that kamala harris endorsed the one elizabeth warren endorsed that kirsten gillibrand cory booker endorsed does away with private insurance. >> here itself the thing what you mys i guess jay i have read the plan.
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>> here is the thing. you have to really separate out the idea i think this is what the word of the weaning aspirational with regard to green new deal whatever they say you can go down and say that deutsche work that is not realistic that is not practical but the idea is there has been no discussion, about in being inequality helping with medical bills under two years republican majority on hill republican in with white house you are getting democrats saying let's start this conversation, and i think that is why you get such positive response from people. >> kamala harris said on cnn about medicare for all the ideas that everyone gets access to medical care you don't have to go through the process of going through an insurance company having them give approve going through paperwork all delay that may require, who of us has not had that situation where you have gone you got to wait for approval doctor says well, i don't know if your insurance
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is you going to cover this eliminate all of that. that is what she said. >> move on. >> guess what most americans would say boy i don't like it if if i am emergency situation go to emergency room i am asked what company are you insured by and do you have -- people say you know what is ridiculous take care of me, that is human instink. >> people get insurance from private. >> i don't think anybody is going to go realistically do away with private insurance. dagen: they are the whole point that is the program. maria: her point is they are. >> kamala harris said one point therefore go it is ridiculous it is not ridiculous. dagen: let me be clear about something it is in the bernie sanders plan the bill, that she cosponsored it says in there private insurance will not be allowed to exist. >> is it illegal. >> that is what says makes it illegal. >> agrees he wrote op-ed in the hill at title america
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needs radical solutions. >> we do. >> i mean when you look at basis for that maria was looking at for example the slow sale over the holiday why? guess what. >> they weren't slow. >> slower than anticipated, then you have high number of people who are delinquent on car payments right now look at rising amount of student debt in the country, credit card debt. maria: how do you -- afford green new deal if all de alexandria ocasio-cortez green new deal opens dialogue you are light about income inequality how much green new deal 36 trillion dollars i think number that we've talked about? dagen: gagillian. >> should individual not accountable. >> for what -- >> you talk about delinquencies going up on car payments, solve it all take care of everybody -- >> i think. maria: to the left -- >> i think we've got a
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situation where we've such rising income inquality very hard for middle class to make go of it looking for solutions they want support this is not going to -- >> avoid any big. >> let me say we give subsidies to the rich tax cut the supply-side rising tide it hasn't listedz all boats. >> hurd middle class most -- >> againlits look at the polls. >> right now, the affordable care act is more than 50% popular with american people rising for so many years it was like we're not sure about it now americans want it and republicans have not alternative. >> i agree with you on this, there is an opportunity for a joe biden to come in and pushback on made sure for all i am doing away with all private insurance simply say you liked affordable care act i have a plan to fix it, and -- >> that would be great. dagen: from this -- government take -- government take over --
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>> dagen you have the opportunity here to start a conversation, where there have been silent absolute lack of attention to income inequality whether people feeling can't afford 400 dollars in case of emergency, what the fed reported -- this is where americans are at where why looking for solutions to issues. >> owe a don't think capitalism lifts people out of poverty. >> of course, it does what do you mean. >> you are talking about programs that are socialist. >> i am not are you telling me norway denmark britain germany france all socialist countries now? no. dagen: you know what. maria: i think i am saying that. dagen: democrats -- >> i don't think you want to go there say that these countries are --s. dagen: the tax the middle class and lower income citizens if those countries are tax to do their eyeballs so if that is the future of this country then they need to about honest about it.
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maria: honest about what medicare for all means that it does away with private insurance industry. >> i think you guys are -- are really behind the curve in terms of where the political energy in the country is i think you will see it not only in the course, by the way, of the democratic primaries as we approach, but guess what donald trump is a populist who speaks -- remember donald trump said i am never touching any of these safety p net programs argument with with paul ryan donald trump is going to play to populist base race or income. dagen: can make that argument say i am going to six social security medicare when going bust by 2026. 2026 is when existing medicare goes bust can make that argument say we are going to fix what we've got but not going to be venezuela with our socialist government take over health care. >> scare tactics that is the way we are going. >> read the bill you. dagen: read the bill.
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>> you are heading your head in the sand as world moves along. >> juan williams coming up growing problems at google us user discovered a microphone built there devices nobody new about it backlash is next. i hear it in the background and she's watching too, saying [indistinct conversation] [friend] i've never seen that before. ♪ ♪ i have... ♪
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all. that is where i am concerned potential for icing here mainly a rain event as storm trgs brings in relatively warmer air, of course, across the west look at all this snow across rockies so watching carefully next couple of days, much country getting some kind of wintry weather flash flood concern to remain next 12 to 24 hours maria, certainly travel delays will be imminent in some big cities along the east coast we will keep you
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posted. >> you were so right about the temperatures in that last storm. >> absolutely. maria: you said going to about talking about this a long time still are because so cold, the temperatures no, are they going to about similar to that in this storm. >> so this one is just your till about run-of-the-mill winter storm not really, really cold northern plains going to deal with windchill below zero but certainly not the polar vortex dealing with couple weeks ago. maria: great to see you janice dean in weather center going faithfuling black after users executive order hidden microphone inside devices the response to that next worries from walmart the multibillion-dollar merge may not happen back in a moment. ♪ ♪ time to have fun, anything goes rooster crows♪
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. >>. >>. >> to buy this from walmart, and there are surprise antitrust concerns, i don't think either company really anticipated this, and it seems as if neither walmart as ready to give up on either brand, and so that is going to come back, destroys walmarts strategy maria to get into faster growinging markets likely to about lower for the day back to you. >> thanks so much we will check back, what are you watching. >> i think fascinating on cvs side outlook one of the reasons ripe tor destruction we have seen that happen with amazon, that is the pharmacy the pharmacy benefit manager side of the ledger a cause for concerns when it comes to cvs to walgreen beats alliance outlook you take down starting
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to see merges in space case you have to get economies of scalp if fighting off amazons of the world. >> do you think more deals. >> no question. >> this late in the cycle, banks looking to a fund i think and private equity sitting, i think you can see deals also, i think you can see smaller companies that are trying to get bigger to get scale compete with larger companies. >> well we will see what we hear from fd that is a major factor. >> yeah. >> every one waiting to see till minutes from fed to read through tea leaves see especially because they capitulated after six weeks in december, in january, so -- >> as far as i can see the international story i mean europe china, slowing, u.s. seems very strong. >> but back on fed interesting no longer giving explicit guidance when they do press conferences now more focus on minutes to try to figure out
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what they are it can being talking about as relates to the rest of the year used to about this time, three more not doing that anymore, so i think people are going to focus on the minutes. >> yeah the rates, because we have talked about the 10 year, golden rule that you take 20 and minus 10-year treasury rate and get kind of a p.e. multiple of the market you saw happen coming down from 3.25 all the way to where we are at right now corresponding with trading levels. >> quick break then trade turmoil china state media saying new tariffs will be catastrophic for the global markets as president trump, continues extending that march 1 deadline to strike a deal with china burberry backlash apologizeing for a hoodie featuring a noose outrage coming up. >> ♪ ♪ ♪
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remember when we all used to go to the cafeteria and just chow down midday? -you mean, like, lunch? -come on. voted "most likely to help people save $668 when they switch." -at this school? -didn't you get caught in the laminating machine? -ha. [ sighs ] -"box, have a great summer. danielle." ooh. danielle, control yourself. i'd like to slow it down here with a special discount for a special girl. danielle, this one's for you. i'm maria bartiromo, 8:30 a.m. this morning, on wednesday, federal reserve in focus futures searching for direction this morning in premarket, take a look, dow industrials down 29 points right now s&p 500 down two and a quarter the nasdaq is up, but by a point we are awaiting release of the federal reserve minutes today, where we will find out what the fed says about raising interest rates as well as the balance sheet,
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and how they will unwind that balance sheet european indices are higher across the board. take a look at ft 100 up 15 points cac quarante in paris up 13 dax in germany up 52. asian markets higher as i see across the board. it is day euros waiting for samsung will unveil devices a rumored smartphone we've got preview, those products coming up, then backlash over burberry, outrage after fashion brand unveils a hoodie with a noose. serious swag insider oscars00 thousand dollar gift bags what is in that gift bag ahead of the oscars this weekend top story the federal reserve in focus, the fed minutes out today, 278 pm eastern taking a look at the insight on traditional bank decision to keep rates steady what the fed is thinking when it comes to winding down the four plus trillion-dollar balance sheet what dallas federal president
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robert kaplan told me about the future of monetary policy. >> explain twhus the fed's mission is currently? >> yeah, listen our dual mandate is maximum sustainable employment and price stability put another way we want to keep this expansion going. we've been talking about a number of these issues, decelerating global growth tightening financial conditions certainly since october, they have eased a bit in january, some weakness in domestic industries and u.s. economy talking about these a number of months that led us to make this decision to pause for some period of time i think the raright stance. >> dennis gartman good to see you thanks for being here. >> good to about here. >> what are you expecting from the fed today? >> who probably explanation as to why they have slowed down
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or been become more patient with what had been a relatively intransigent recalcitrant attempt to take 50 billions out of adjusted monetary base on monthly basis they have stopped that, i think they got a little pan iconicy when they saw equity markets october november certain a problem that was incumbent late in december i think getting the an explanation as to why announced why they are going to about a bit more patient i think it is long overdue i think the right policy stance to have for them to have taken rather than to have been as consistent as they have been with taking 50 billion dollars out they have taken fuel away from expansion and stock market they got a little antsy to about stpd i think we are going to get explanation as to why. >> are you surprised dollar hasn't gotten weaker that the fed actually capitulated dollar remained strong. >> no given the fact that our 10 year is 2.57 or so 10
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yooier -- 2.75. >> a fact 10 year 2.75 rate 10 year in japan negative money has to go where wl trade recompensed why should not capital continue to come to the united states, so honestly i am not surprised i am actually surprised euro not weaker than where it is not stronger. >> mitch roschelle how volatility would markets be if something in fed minutes, and second about half of that question what would be in those minutes that would be a surprise to the readers. >> if there is a surprise, the surprise would be that they did not become more patient that language was -- that they were going to continue with 50-billion-dollar instruction adjust monetary base if that were to about language, what is going to happen to the stock market we would be down 500 points so fast would make your head spin volatility would return i think the fed is col zabt of that fact i think it understands that fact although fed tells you don't
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have watch stock market, of course, it does it understands that i don't expect to see anything untoward coming from this afternoon's fed meetings in fact i expect to see that there will be more patient than probably the language thus far anticipated. . >> it is dagen mcdowell. in terms of looking at 10-year yield it is down like 2.64% 2.63%. and then you look at rally in the stock market the money fog into treasurys flowing into stock markets, this new year, something has got to give her does it not? because -- maybe -- i mean you talk about you are not getting paid to hold government debt in other countries, maybe that is part of the reason people have been buying treasurys here nevertheless, it seems like bond investors are betting the economy is not as strong as stock investors might think. >> well that is probably true dagen, i suspect bond investors i have always thought bond investors were a
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little more sophisticated usually more pessimistic about world than stock investors that is incumbent in being a bond trader a bond investor, and i suspect that bond investors are looking i suspect the amount of capital coming into united states, despite trade deficit having a capital inflow money seeking higher returns here in the united states i look at 2.75, .6510 year say from my standards remember long bond trading 14 1/4% yield 10 percent, 0% yield 2.65 on 10 year seems low given inflationary rights in the united states pretty good given if fact your earning negative rates as you explained earlier this morning earning negative rates in asia and in europe, why should not money continue to flow here so it they may rates may look cheap may get lower. maria: let's pull out for a second because you know so far we're worried about a global economy slowing down and, yet, we are really not seeing that evidence in the united states,
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i recognize a what is going on in europe talking about one percent growth or something in china slowing down, but are we getting fooled by this pivot in a way i think what dagen is bringing up are rates artificially you know are they going to actually go up? and if you see that, will the fed rethink this in terms of this pivot? >> maria we have been talking about rates going up for years, and years and years years. maria: not happened yeah okay. >> it is not happening mark this down this is important. rates will go up whether they start to go you will. until then -- >> all right -- everybody i know i started in career as bond trader on the floor chicago board of trade i remember the long bond trading 14 and a quarter since 1982 rates have been skiment going lower despite if fact the budget deficit con sift endedly gone higher eventual will try between eventually loo and probability a chasm of
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continuing lower rates. maria: did kind of happy ten year only got to not even 3 and a quarter percent stock market fell out of bed. >> out of bed did not like that at all did it i. dagen: no the i am saying even if rates go a little bit hi it is 3 and quarter still -- >> a point look how many buyers jumped in at 3.25 wanting as much as 3.25 paper boom it dropped under 3 immediately. maria: dennis great to see you. thank you. >> thanks for having me on always an honor. maria: honor for us, dennis gartman joining us gold prices edging higher so far this year, gold up nearly 5%, stuart varney weighs in on that next then move over iphone fans today is the day android users have been waiting for a preview of sam song's latest greatest smart phones, back in a moment. >> ♪ i am every woman ♪ ♪
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. maria: welcome back gold surngdz on global growth worries ten-month high joining us host of "varney & company" stuart varney to weigh in good morning to you. >> good morning is that what is doing it global growth worries -- slowing down so gold goes up? really? >> voo i mean a hedge, you know right so i mean i i don't know the even think of gold as commodity maybe i want to hoarded gold don't you see it that way. >> i traditionally gold goes
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up when inflation is a real problem, well inflation is no at it a real problem now, so i assume gold is going up because of global economic or political problems. it occurs to me that maybe about what is going on in british politics the moment is part of the reason for gold's rally, i am sure you know maria but i think overnight three conservatives resigned from prime minister may's government, that follows seven labor people resigning from labour party the other day, it is really thrown british politeness into absolutely convulsion this brexit thing looks like a total mess, maybe that is the chaos that is behind part of the gold rally. because we are seeing chaos develop in british politics this moment there is a new independent group heaven knows how much support they will get looks like a fourth or fifth political party old world of british politics isgone i think creating a little worry shall we say. maria: maybe that is what the
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worry is. >> maybe. maria: do you think another referendum? >> i haven't a clue. >> incredible just to start the whole question and process again to do another referendum some people want that they think that is -- this time say no, not leaving. >> if a second referendum i am property sure they would say no, we stay pretty sure whether that referendum will take place or not i haven't faintest idea. >> i know a lot coming up 15 minutes stu we see you then feds minutes out i know you are all over in a "varney & company" top of the hour 9:00 a.m. eastern after "mornings with maria" burberry backlash outrage after company in valleys a sweatshirt with a noose move over iphone fans android users waiting for samsung's latest and greatest smartphones coming to the market back in a minute. ♪ that's why this is the view for every other full-size pickup. and this year, it's déjà vu all over again
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galaxy in san francisco among products a followable smartphone joining us cyberguy. >> what are you expecting from samsung today? out in california expecting i haven't phone to gettic about run for money so far, a slew of what appear knock-offs coming out not only flagship the s10, s10 plus s10e rumored model phones from samsung one being smaller one having 5g super fast a wireless, and also a followble phone seen videos we think a sure bet why do i want my smartphone to fold in half, we are talking about a screen that folds in half i think the answer to
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that is it is depending on he consumer what people are able to do with that screen so obviously, it makes you of easier device to take around carry more portable then the ability to unfold it and into half a giant display compared to another phone that wouldn't have foldability with that, perhaps interactivity with your phone if screen on one side back side the other screen towards you maybe people might come together look each other in the eye across the phones interact with phone. >> we have heard of apple airpods wireless ear phones apple came out you with extremely popular samsung not missing a beat on this galaxy bugs coming out later announcement about those, you know it is a -- a year to keep an eye on samsung this might be the time that they are doing really well well i felt
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phone sales softening apple shaping up top of the company with refocus on their attention to more about apple services at this time. >> really interesting. >> yeah i was going to say is this making people upgrade do refresh we have consistently worried about that with iphone, that nobody is actually doing the refresh cycle most was price point pain can this new galaxy phone get people over that hump? >> the yeah i think i think a good question. i don't know that we are chasing each phone model any longer i think seeing longe cycles not annual cycle on any phone looking more two, two and half year cycle upgrading phone remember what used to pro pel that two-year contract we signed up for wireless carriers wouldn't out the door, they trickled back in here and there, but really comes down to much higher sa societal prices not paying off with features to phone you sit
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there saying gosh nearly 1,000 dollars now or plus for a phone is it worth up grading that as often so i think we are going to see softening of cycles regardless of the manufacture of the phone i think going to see a lot of people spending more attention on things that they have been waiting on electronically. >> mitch. >> you mentioned the phones 5g, and 5g far from ubiquitous at this point is this a marketing gimmick or going to have any functionality. >> good point, so for those who don't know what 5g is super fast way of getting wireless we now have 4g lte what also appears to about fast internet we do have 5g going to about a major cities some carriers rolling out, very small sectors in major markets 5g later not a player this year as a consumer 5g not
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something you need to look for as consumer just yet that might be why apple decided to not put 5g in any of their phone cycles at this moment. >> a big deal but we know there are no well there are no apple phones right now for 5g. >> not yet. >> all telecom guys speaking about it we are talking about that coming up good to see you. thank you so much, president trump tweeted about immediate side "new york times" reporting is false they are a true enemy of the people. writes the president, burberry apologizing luxury fashion house facing backlash unveiling a sweatshirt with a noose a change at tesla the stock is down 1% now. back in a minute. ♪ i've always been amazed by what's next.
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maria: welcome back. breaking news this morning. tesla replacing its top lawyer. cheryl casone with the details. >> tesla's general counsel is leaving the company, only two months after taking the job. "wall street journal" reports he found that tesla isn't the right cultural fit. he's going to be replaced with long-time insider jonathan chang who helped the company navigate some of its biggest legal problems. more than 50 senior executives have left tesla in the past two years. well, google admitting it made a mistake in not disclosing its home alarm product has a microphone. earlier this month, the company says software update would make
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it voice control but that meant the device had a built-in microphone, something google failed to mention to anybody. google said the microphone was not meant to be a secret, it's only activated when users specifically enable it. burberry facing backlash for sending a model down the runway wearing a hoodie with what looks like a noose around the neck. this is at london fashion week. the creative director says the design was inspired by a nautical theme but the company's ceo says he's deeply sorry for any distress. he promised to take steps to make sure a similar incident doesn't happen again. finally this. it may be an honor just to be nominated but another perk for the oscars nominees was the $100,000 gift bag. 25 oscar nominees are going to receive an everyone's a winner swag bag with items like a $20,000 luxury vacation, you could pick iceland, the amazon,
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costa rica, panama. also, there is a luxury golden bow tie and diamond ring and new this year, some cannabis-infused skin care products and chocolates to help calm those overwrought celebrity nerves. if none of that appeals to you guys, there is also this plunger. the oscars are sunday. maria: hilarious. the cannabis thing is interesting. >> what if there's a drug test to be in a movie and you put some of that face cream on or something? maria: well, it's legal in california. >> it is, i guess. maria: we say this every year. you have to pay taxes. >> they all forget that. they get a 1099. maria: yes, they do. you have to pay taxes. that's probably the cutest thing
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in there. the galapagos trip was the best part of the bag. great show today. >> always awesome with you, maria bartiromo. maria: have a great day. seize the day. "varney & company" begins now. stuart: good morning, everyone. how much did amazon founder jeff bezos pay for "the washington post"? $250 million. how much is "the washington post" being sued for? $250 million. yes, folks, this is the covington case. attorneys for one of the students, nicholas sandman, says the young man was smeared by false and defamatory articles published by the "post." the president is tweeting about it this morning, saying in part covington students suing wapo. go get 'em, nick. fake news. all right. things are a little more calm on the china trade front. the talks still going on in d.c. president trump hinting that the march 1st

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