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tv   Cavuto Coast to Coast  FOX Business  March 15, 2019 12:00pm-2:00pm EDT

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way that's according to reuters i want to make that clear. by the way i'm also saying that the s&p about 28.20 at the major breakout, and i say we go back to all-time highs i'll make my case later on but for now neil cavuto, take it away. neil: yeah, because i can't do all of the work around here. charles: [laughter] neil: a little more sweat equity charles: i'm getting paid hourly now. neil: you'd love that wouldn't you. all right, thank you very much, my friend. we are following a lot of developments including this crackdown on facebook and they are saying the company is saying that it's cooperating with the police on this new deal and investigation but we're taking no chances across the globe particularly in this country with new york new york city and chicago, atlanta, philadelphia, all deploying extra police officers for example, the mosque but not only there in new zealand they're still on a high terror alert not quite convinced this is over a lot of canceled flights president trump is
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talking with new zealand's prime minister later today over the phone to fox news national security foreign affairs on this , obviously new zealand they're not convinced this is over. what do you make of it? >> because of the experience, i mean, this is the first major terror attack in new zealand, and remember how in 2001 we're not really convinced this is over. they're having their experience but more importantly, neil is that they're exchanging now information with all of the intelligence communities around the world and that's very helpful not just the u.s. and arab and muslim countries so trying to figure out what they should be addressing their concern in the future. neil: we talk about for example, in new zealand in one of the toughest gun control countries, i mean country, not just in certain cities, on earth, but obviously, that's a different issue of what i want to get into is what now it signals, and a response. you always worry a tit-for-tat and on and on how do you see
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this being received? >> well number one let me make that statement basically. what we have discovered now with this attack on the mosque is that there is a real extreme trend which is militant and is doing violence. that is very clear, and if you analyze it well and we need to analyze. by the way we need to understand the plans of the extremist on all sides, i repeat on all sides what we're discovering is they are using the method that the jihad had used any extremist has used in the past which is to attack, provoke a response, and then have the cameras, i mean, at the end of the day, this person, we don't have much information about him but he's going to be in court, i think, and then there will be the cameras and then their message will be much bigger so that's why we have to be very very attentive and we need to understand their plans that's the most important point. neil: i wondered too what measures or what we've learned from islamic extreme attacks on
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u.s. entities in the past to say nothing in reverse, what extra precautions you would recommend taking. >> well what new zealand is doing now what many of our cities are doing now in terms of protecting the mosques is what we need to do in the same we its affected the synagogues and the churches, that's the first reaction you have. second is you need to counter the ideology that has influenced the mind of this individual. doesn't matter where it's coming from but we need to understand the ideology and therefore to counter it long term. neil: one day at a time as you often remind me, thank you very very much. >> thank you. neil: a quick peak at the corner of wall and broad right now before we go on to discussing things like national security, and i'm not missing the fact that the dow was up smartly right now, and the middle of a month that's been a little less rewarding for the dow but very rewarding for the s&p and nasdac , to more on that in a second, and you know indications that boeing is turning itself
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around and the fact that it is going to be introducing some new cockpit software for some of these jets that have been frozen in the next 10 days, that would deem to be a helpful development in the middle of all of this we shall see. meanwhile the president of the united states is meeting with a lot of his national security officials at the pentagon. edward lawrence is at the white house with the very latest on that. >> hello, neil good afternoon, yeah the president is still at the pentagon at this hour getting a briefing on national security no doubt hearing what happened the latest the u.s. has intelligence from new zealand the president earlier this morning offer offering to new zealand anything, anything assistance that new zealand needs from the united states we will offer to them. the president also saying that he is going to talk on the phone with the new zealand prime minister later this afternoon. the white house releasing a very stern statement earlier this morning saying "the u.s. condemns the attacks adding we stand in solidarity with the people of new zealand and their government against this vicious
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act of hate." 49 people are dead another 20 critically injured two people are in custody for questioning, three people actually in custody one a rested, and two others are in custody for questioning and national security advisor john bolton echoes the feeling at the white house. >> we're obviously greatly disturbed by this what seems to be a terror attack, this hate crime in new zealand, we've been in touch with our embassy overnight. we're still getting details but the state department and others are following up on it. we're very concerned. >> and the white house also monitoring the bill that the house and senate has passed, stripping the president of the power to make his national declaration, national emergency declaration on the border and that bill arrived at the white house last night. we do expect it to be signed later on this afternoon the president saying he is going to veto that bill. the first veto of his administration, it does not appear in the house and senate they have the votes to override
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that veto so we're expecting that in a few hours back to you. neil: do you know whether he's going to make that veto public sometimes when he would sign a regulation to end regulation for example, or some new initiative he would have in the oval office and all that to make a big thing about it is that what he's planning? >> you know and that's one of the discussions that's going on here at the white house. it seemed like some folks inside the white house are leaning towards making this open it's something we're watching later on this afternoon, but we do believe possibly this bill signing or this veto signing could be open, so there's something we'll get back to you on but again we're looking this afternoon in a few hours the president likely to sign this veto, his first. neil: edward great reporting as always my friend edward lawrence at the white house you saw from that clip that john bolton denies some of these reports that north korea might be suspending its nuclear talk to the u.s. so they are in the press saying they are disappointed in the hanoi summit and more disappointed in the folks around the president
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including the secretary of state for whom the north koreans had some choice words to the former u.s. navy information operations officer, greg keely. greg good to have you. >> hi, neil good to see you. neil: what if they reignite that program? in other words they start launch ing missiles again? >> look, i think what we need to be clear about here, neil, is that north korea has no chips on the table and then to say we're going to stop talking to that gangster regime in the united states is just more of the same. i think president trump will get criticized abdomen rightly so, as was the secretary of state and that being said, president trump and this administration went in, offered the north koreans the opportunity to come in, and let's be very clear. north korea kills people by tying them to a steak and letting dogs devour them so i'm not sure what we expect would
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happen but we did make them an offer, we offered them to come into the cold and now i think we need to look at the next step. neil: to your point, we don't know who mislead whom, and the north koreans said they did not ask for an immediate end to all sanctions, just some of them. the white house position was that they asked for all sanction s to be dropped before they would continue with the discussions. it doesn't matter now because nothing happened but i'm saying the odds of a summit, a personal meeting seemed to be next to nil l, i would assume. >> i think one thing we need to dispell right now is that kim jong-un is not president trump's twin. he's apart from that he's no one 's friend. you can't denuclearize incrementally and it's like me trying to lose weight after thanksgiving every year, i'm trying to lose two pounds a week it doesn't work. neil: but you could say that,
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right, greg, you could say there was hope for progress here because he was releasing the remains of american soldiers in the korean war, he was meeting with the south korean counter part three times over the last roughly 18 months so he was appearing to do things that we had never seen before. could the irony be that despite all of this hard work on the part of the white house to ease friction that we could see more friction than ever? >> yeah, i think, neil that's spot on. look, you've touched on all of those touchpoints. we saw some give out of the north korean regime, but as we seen so many times in the past, they're just backtrack backtrack backtrack. they know they got the support of china, they know they got the support of russia and now what we need to do as a nation, we need to step back a little bit and understand we don't need to act unilaterally here. this is a global press. this guy is a murderer and we need to engage in the global
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community. he's a global threat. it's time for a blockade and strong embargoes and time for sanctions that actually have remember we're trying to buffer sanctions, but we need to look at this from a global point and a state perspective just acting unilaterally because we tried, we made the offer and they rejected it. neil: greg thank you very very much always good chatting. >> neil great to see you. neil: same here, all right in the meantime, it could be a while now before we get a china deal, but is the delay going to be worth it? this is one of those days given the run-up in the dow that it is showing since the last close i believe but the fact of the matter is or i'm sorry since the end of the month, so we haven't reached the end of the month when is the last time i could have told you that boeing is the big reason for the advance? after this.
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neil: like i said boeing stock is up, it's up more than $11 that accounts for nearly a 3% rise and this is one of the times where boeing's rise is helping the stock market and now it was mitigated when it was falling through the floor here and lost about at its worst $30 billion in market cap. that was then, the promise of a software upgrade for those plane cockpits was enough that at least for the time being to propel the stock the other way and maybe the dow as well let's go to charlie gasparino, gary, we never want to get ahead of ourselves here lindsay but the promise was at least with boeing maybe things stabilize, what do you think? >> yeah, i think that's what the market is really looking for it took a big beating and i think the aerospace and defense
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market industry overall really is a strong market and there's only two major players and it's boeing and airbus, and so these guys are going to come back and i think once these planes get back out there the fix is in, you're going to see the stock continue to rise higher. neil: what if there is proven problem with the plane though, gary? >> first of all from the short run boeing is up 120 dow points and now off the software news, the issue is -- probably i think it has to do with we have a very strong market right now and any reason to move something up it feels like the markets doing the trick this is a matter of how long it takes and how much uncertainty there is, and whether the lawsuits become very big. if they can get just remember the market is a forward-looking mechanism always looking at the positive side of things. this was the strongest stock in the dow for the past couple years and it can easily become the strongest stock again because they're, they have order
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s they've gotten is unbelievable. neil: last i heard it was 5,000 orders. >> if we start hearing of order s being cancelled, different story, haven't seen it yet at all. neil: what do you think? >> when you look at the macro picture as well, and you take, you step back and okay they're going to say they deal with this situation, it's isolated. the macro situation is really different with boeing. we have a president for the next two years that's committed to defense spending and we have a good market and we also have an administration that is, you know , the bush administration remember they went after arthur anderson and put it out of business? that was sort of a line drawn in the sand. no administration has tried to put a company out of business, plus you've got the fact that if the justice department is not going to weigh in in a way that destroys the stock, you've got regulation, this is a de regulatory administration, i think macro, everything is positive for boeing if they get a handle on the lawsuits that's always a key, right?
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and it's kind of contained to this. neil: well you don't want that obviously but you've mentioned, you know, some of the other stuff the president is doing and there was before any of this, momentum that a deal with china and that not too long ago they're thinking the end of this month, now maybe april, and not a given and the market hangs on that. is their view that the more it's pushed back, the more deal, any deal will be scrutinized and it better be a good one. >> you know what i think the market thinks is that a deal or an agreement is going to get done this year at some point. neil: does it matter to you how substantive it is? >> no the market doesn't care. you know, the intellectual property, forced transfer, technology, those things i don't really think the stock market cares about it, they want this to move past it. neil: but if you don't have those things addressed in a deal it's not really a great deal. charlie: but the market is priced i believe and i've been doing a lot of reporting on this
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, a kick the can down the road modest deal so it doesn't move on something like that. neil: so that you don't get more substantive matters addressed? charlie: we get substantive matters, what i reported yesterday, on your show, and we have a whole story on this fox business.com is the notion that the market takes a major moveup in the mid-term, and trump and his people are saying 2,000 and now here is the issue. neil: in one day? charlie: no but over a period of time. neil: two days. charlie: maybe three minutes but let me make one other point there is a lot of talk they're looking to push this out a little further to get publicity because they know that trump thinks really thinks he's going to get a market bounce he would like to have it in the summer where it's just a little closer to the election. neil: and i was mentioning to charlie yesterday gary this notion that the republicans the fact that he won the rescued kuwait in the gulf war was wrap ped up in 91. >> too early.
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neil: too early? so we learned something from an 89% approval rating that doesn't help you a year and a half later so what do you make of that period, and this politically that are closer to 2020 than not >> i think this is 100% right on it and pushing it off. i believe they've got the fed on their side, they see the markets going up let's put it off and put it off and put it off and get us close with the election but i have to tell you i think that it's diluted by now. every day as i manage money and watch the market there's a bit of news from mnuchin or trump, this is good, this is bad, next week, next month, i mean it's almost like two years now. neil: how i don't think they talk to each other. i don't know there's an announcement every six hours when the news comes it's going to be an okay deal. china will say it's the greatest deal ever and we'll move on. >> it just skyrocketed recently and the market is going higher. charlie: first of all trade
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deficits go up generally when the economy is better so i really think the markets react to surprises and a surprise that's on the upside, i think it has -- neil: what about on the downside charlie: that's a problem too but i'm saying a surprise on the outside they can get something tangible and spin that out is going to be good and i think they can push that now the real question is when you talk about g. w. bush is the other thing he was hurt with is it was already baked in by the time he was running for office with the economy, he didn't understand how people were there. he was tone deaf. the economy was actually coming back. we were out of a recession when he was running but he never got that. neil: all this would have to continue one thing, right? through november of 2020, right? the markets can slow down that and i don't see that on the horizon do you? >> right exactly when you go into elections a strong economy will definitely benefit trump
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going into november of 2020 and i think him and his team needs to be really pushing that note. neil: don't you think given the strength of the economy and the markets he should be like on easy street with this? >> he should be. he should be touting that. exactly, i agree with you and the consumer look at the services side of the economy. the manufacturing side of the economy has been a little bit weak but the services side has been very strong. it's a good point. neil: knowing the economy and what's going on here but i think he stomps on his own message and that's what hurts because any other guy running an economy like this, whether you want to give the president credit or not should be up 10 points. >> if he would leave all the noise alone and just talk the economy, the unemployment figure for everybody as well as hispanics, i mean the numbers are fabulous compared to where they have been. it's a winner but all this other stuff gets in the way. charlie: it's not like it's nothing. he does have an existential
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threat as robert mueller and people are combing through his tax returns back in 1999. that could be the democrats are driving so i get why, but one of the things, the economy is slowing okay? there's no doubt when you look at gdp numbers it looks like it's coming down. it'll be a slower quarter. the smart is something. neil: there will be no rate increase. charlie: the stock market is something you can point as being up and if he keeps the markets okay through 2019 -- >> every dow point is going to matter, every job is going to matter into next year especially when you have the left very very left and it really will be a fight of capitalism versus socialism. neil: real quick, lindsay, the argument used to be for any presidential election it's how we're doing in the summer 2020, how does the economy look to you >> i think to your point we're going to have a slow first half of this year and things are going to pick up in the second
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half of the year and that hopefully will drive into 2020 and help trump. charlie: i think it's baked in even before that. if he gets it through mike march or so? >> right, it's next year. charlie: let's remember what happened with mccain as we headed toward that election. anything is possible. the day that matters is -- charlie: i think that's like so unique. neil: you never know. anything can happen. any more words of wisdom to share? there will be a new dawn, all right right now we're up about 196 points, stay with us. charlie: it is what it is.
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neil: all right, he's the democratic party's new sensation the mainstream media reaction to this, he is starting a three-day iowa campaign facing a lot of criticism, over past gop donations, with other people in
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the gop are raising to anyone's guess but he does have a blank slate a lot of people don't know much about this texas congressman, and that could work for you too, to axios white house reporter on that. good to have you back. >> good to be here. neil: and not being known generally by the public and i think, you know, barack obama, it could help you, so is he another barack obama? >> well that's exactly it and i want to, i think to point you to what former governor mike huckabee said. he said he shouldn't be discount ed because, i mean even though he doesn't have a huge amount of experience, he does have that x factor and he really has the ability to grab media attention and i can tell you from our reporting a lot of people who are close to president trump feel the same way, and especially if he is able to become the nominee. it's going to force the white house in many ways to spend a
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lot of money in texas and that's not something they're planning to do. neil: you know, because he, it's 38 electoral votes and again this used to be a democratic state right up through 1976, jimmy carter the last democrat to win it. is it legitimately in play, or is that kind of stuff democrats say to get republicans words, spending a lot of money. >> well i think it really plays out. we saw what he was able to do in that senate campaign against senator ted cruz, someone who no one thought would really be, you know, a real challenge to senator cruz and he was able to raise a record 80 million in that campaign race and it brought him to national attention and now he's a celebrity essentially and it's what made him able to launch this presidential campaign, and so i think that it really could be in play and that he could have the potential to turn texas
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blue and it would really force president trump and his 2020 campaign team to pour a lot of money into the state if he becomes a real key player here. neil: do you think joe biden should be worried? >> definitely the thing that o' rourke has is age, to both president trump and someone like a candidate joe biden and whereas someone like joe biden has some of that more mainstream ideas while a lot of other candidates in this crowded democratic field are a bit more progressive, he hasn't tied himself to a policy yet that labeled him as a far left liberal so someone like joe biden would really see danger in a candidate like beto. neil: we're going to have a fun year. it will be. neil: without reporter, joining us on this, we have a lot more, coming up including some chill ing details of the pilot of that ethiopian airlines, he had better than 8,000 hours of
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flying experience, i mean the guy was a pro's pro, and he was frantic with this thing, what we're learning about his last six minutes living, and those of the other 156 on that same plane , last sunday. i knew about the tremors. but when i started seeing things, i didn't know what was happening... so i kept it in. he started believing things that weren't true. i knew something was wrong...
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neil: all right, boeing, the stock is moving up largely because of a software fix in the next 10 days we've got jeff flock at chicago's midway airport with more. hey, jeff. reporter: it's a little complicated neil so stay with me if you will but yes that's the headline software fix maybe in 10 days reported by the press that drove the stock up but here is what they're trying to fix, and that is something to do with the way this thing crashed, the latest discovery from the crash site believed to be something called a jack screw. what that is is a fairly large
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device that controls the horizontal stabilizer on the tail. this is the thing that causes the aircraft to pitch up or pitch down. the mcas, this is where it gets complicated, that's the maneuver ing characteristics augmentation system this is a system designed to keep the aircraft from going to a stall. for example, if the aircraft is taking too sharp an angle of descent what it would do is push the nose down so that the plane would straighten out. the problem is if it gets bad data, and it says the plane is in this kind of an angle of decent which would be bad but instead it's this way but if it was this way it pushes the nose down and straightens things out but if it was already okay and pushed the nose down that potentially could cause a crash. here is what the software update does. it would take the current system which has only one piece of data coming into it, one sensor and they would put multiple sensors out there, so if there was bad data coming in, and it said the
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plane was like this when it wasn't it would give it other sources of better data and it wouldn't potentially cause a crash. that's where we stand right now. you reported earlier though on the last seconds of this, we're not going to know anything about this until we get the details of that black box. here is the tic tock of last six minutes of that flight. at about a minute in that experienced pilot reports a problem. he's calm at that point but at that point, that's where things go south. at about two minutes in, the plane is pitching up and down, up and down, again and again. at three minutes in the plane is accelerating tremendously beyond safe speed perhaps indicating that pilot was trying to gain control of this pitching plane. at five or perhaps six minutes in, it goes off radar, as we said we won't know precise times on that until we get the data from the black box which is now being analyzed in france. i hope that made sense. it makes a bit of sense to me.
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obviously, makes some sense to the stock market at the moment if they think that that fix will help, doesn't bring anybody back to life. neil: i'm wondering, why proposing this fix, is the company acknowledging that there was something clearly to fix? reporter: they said going into it the reason the fix wasn't out until now is they were debating with the faa about what exactly to say what the fix should be and they said until then, we warned everybody about this, after the air crash so it's safe they should be able to deal with it. well maybe it wasn't. neil: maybe it wasn't all right jeff thank you very very much, jeff flock now to a former faa senior official who says the faa should not have grounded the plane, keep in mind, they're all grounded, thousands of them, as a result of this, and that would include those that were going to be delivered for order, i'm including those, that might not be now. let's get the read on all of this from scott brenner. scott you are in the camp that
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there was no reason to ground all. why? >> because i don't think we have the data to prove that. i mean, the faa has a long history of saying before we make any major decisions we need a ton of data to support that and we have two crashes, and the more that we learn about them, the more dissimilar they are, the first one it appears to be a maintenance issue, where they had a bad sensor and they didn't replace it correctly. the second one, we're not really sure what happened. we're not even sure who was actually flying that aircraft. you had the one pilot who had the 8,000 hours, and then you had another pilot who had around 250 hours, so we're not really sure who was flying that aircraft and the ethiopians have been less than transparent during this whole process. neil: you know, one of the arguments for shutting down the fleet for the time being was out of abundance of caution and you've heard that. what do you make of that argument that if there was doubt or there even is the remote
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possibility of a link between the lion air crash last fall in indonesia and this crash with the ethiopian airlines last week that that made sense? >> well i think, you know, neil i think it was more of a political decision, and for a political decision it was the correct one, but unfortunately, i think it really sets a bad precedent where you can now get political leaders to exert enough pressure on an industry, a particular product and regardless of what the data says you can shut that down or knock that product out of the marketplace, so i just think that it's a bad precedent to make these decisions without the data to support it. neil: if it turns out to be a problem that the software fix or whatever they're calling it, does the job, then would you be more inclined or i know how you're feeling, don't take them out of action, but you think that would ease a lot of potential buyers who right now are planning to buy thousands of
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these things over the next couple of years, and that will relieve and continue to do so. >> yeah, absolutely i think this is an incredibly safe aircraft and i think the president kind of hit on it the other day when he said airplanes are becoming too complicated. i think what we have to remember is that as technology advances aircrafts become safer because they're more automated but at the end of the day you still need a pilot who knows how to fly that aircraft. every pilot that learns how to fly a 737 goes through what they call five memory sequences and those are sequences where if the plane gets into trouble it could result in a catastrophic failure what happens here is one of those sequences, so you had a pilot over in the lion air company who had a similar problem. he took the proper procedures and landed his plane safely. obviously, with the ethiopians that did not happen, so i'm not really sure where the fault lies , are we having a problem
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with training or was there an actual problem with sensors and faulty sensors not working properly? neil: very interesting, we'll see what happens thanks for taking the time. absolutely, neil. neil: all right we've got a lot of big changes going on in these companies that are with the government over privacy issues already face number three and we're also hearing that the what's app are leaving is privacy the focus and is the rift with mark zuckerberg the reason? you.
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neil: you know, we got the dow close to 200 points boeing has turned things around that could change any moment any day but what's interesting is what's going on with technology and within that subset what is going on with microsoft, and it's on pace for a record close and you know the market cap gained 3.5 and microsoft and amazon, they're in a tough battle here but microsoft on fire in the meantime, facebook's future in question we've got a lot of key executives who are bolting from the company and some people worry when you have the number three at the company a product developer at the company leaving , others considering leaving, whether the company's problems are affecting morale and they are just getting out while the getting is good so is there a brain drain there and could that be a worry going forward, we got susan li,
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connell mcshane, and lance, is it true to be worried? >> no, 34,000 people working for the company they have a very deep bench they will keep moving people in, but chris cox is one of the originals, and when it was called "the facebook" the chief engineer and chief product officer was just handed the reigns of instagram, what's app all these products, messenger. >> well because last fall, you know, kevin sistrom, he founded it and they left him and his co- founder left because they didn't like the direction, you know, because facebook was trying to pull instagram much closer into facebook and doing the same things that it did and they kind of liked running things separately and now of course we have this big shift into privacy. mark zuckerberg just published his privacy what we call privacy manifesto which is steering the entire company hard into encryption, it was a foundation,
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less sharing, and we don't know if chris cox did not agree with any of this or if he just felt that it was his time to go. neil: but he's going right after he was the king. or thereabouts. i'm wondering, susan, from that, if you're a facebook shareholder of course the shares are getting beaten up on this story whether that's justified. >> well, you know, i did a double take when i saw that from the tape yesterday as well because he is part of the inner circle and also, he's a successor of mark zuckerberg and for a man with the intrigue that has so much power as facebook by the way, it makes you wonder how much pressure and how much power that mark zuckerberg himself is stepping in and exerting at this point and whether or not there's probably more to come especially with his big shift to privacy. >> i think why it really matter
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s and i don't think we necessarily know unless you're on the inside, the actual why, like someone like chris cox would leave but if you combine say hypothetically, because he disagrees with the direction the company is going and to the encryption and product messaging and what have you if you combine that with the founders of instagram leaving now with the founders of what's app being out , so the people that had say companies that were taken over by facebook and they think well, what you're doing with my company is not exactly what it was intended to be and now you have chris cox someone from there from almost the beginning saying the overall direction of the company is not what it should be if that's the why then maybe you do have wider issues here. >> here is the thing facebook has to change and we went through two years of data mishaps, you know, some really cambridge an a lit it kanye west no one is ever going to forget that they were careless with our data so long. neil: why would you leave when you know your boss is trying to protect more problems from happening? >> and it is interesting,
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because chris had control, one of the projects he was working on was lowering the filter bubbles, fake news, hate speech on the platform it could be burn out, or it could be something -- neil: well the new push would override it. >> but also, neil, consolidation of power. you know, that mark zuckerberg wants everything on the same page, wants it all to work the same way, which drains power from some of its lieutenants and the other, you know the leaders of the other product, let's keep in mind, that they were around for a long time. they were there and the products working as they wanted them to so it wasn't like mark zuckerberg buys them, and changes them and they jump ship. it was years, so i'm actually not surprised that it finally happened, but you know, i think that facebook has no choice right now, but to make some fundamental shift, mark zuckerberg is taking a hard line on that and yeah, i'm sure there are disagreements within there and by the way speaking of other departures i am still wondering
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why sheryl sandberg i hate to say it but i'm still wondering why she's still there because if anybody, you know is kind of might have been the person to fall in the shortfall of the data stuff over the last couple years it might have been here. >> either one of them either mark zuckerberg or sheryl sandberg are going to fall that they would kind of -- neil: well you have to go with the flow, right? susan li the message out of facebook is we've got to do something about data breaches and all this other stuff and a lot of our customers, you know, security or the basics, but now you can go too far with thatnd i guess just to reit between the lines some of these dismissals or resignations i should say are based on we don't like that direction but it's the only direction choice we have. how is that received? >> well look its been two years of scandals with facebook whether you want to include the 2016 the russian meddling and then the cambridge analytica and then these questionable partnerships that might end up
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in an sec and department of justice criminal investigation but look i think facebook at this point is facing this existential threat what do we do at this point if they have a lot of data as well, they know with the slowing growth in usage with the news feed or instagram and they need to switch and turn to a new direction so i feel like mark zuckerberg feels like he needs to do this right now in order to save his business and legacy and the company that's founded. >> i don't think they are actually slowing down they have 2.3 billion users. >> but the last few quarters i think that is a reality. >> i think it's a reality in the u.s. market, as far as that. >> gdpr they lost 2 million users as well the last quarter. >> but here is the thing. here is the thing what is coming down the pike for them and everybody else in this business is regulation, so if you are not way ahead of that, you're going to get caught and you're not going to know how to shift things. neil: didn't he invite it when he was up? >> every single tech leader
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knows that now is the time. they're not going to stand there and argue. they are going to say we welcome it because other big tech giants have the scale to manage it. they are going to do it but also going to get ahead of it and do what they need to do now. >> seems like there's more of that than anything else because as susan said we have seen some movement in europe but here in the u.s. , correct me if i'm wrong there's nothing really happening there's more talk than anything else but i guess -- neil: being scrutinized. >> that's what i understand yes >> but congress hasn't done anything i don't know if they know what to do about it they go up to the hill and talk to the congress people. neil: they are the ones to break them all up. >> that's a whole other we could go into that can of worms and that's a whole other thing but the reality is that there's a lot of fact finding, congress people don't understand this technology super well but i firmly believe that within the next 18 months we will have some kind of tangible regulation, but
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it's going to take time, and if we have a change in administration things are all going to get shifted again but i think that the tech companies would rather be prepared and make their own changes as facebook is. >> are they real changes or just like changes for the sake of pr? that's the question some people are asking about to move into encryption, to private messaging is this a real business strategy shift that mark zuckerberg and sheryl sandberg and the company truly believe in or is it just to make it look good? neil: we don't know now. we do know they are selling first and asking questions later when it comes to facebook stock and also the president is on the verge of formerly vetoing that measure to kill his emergency measure along the border wall and he is convinced he has the votes to avoid that veto being over written. a little more after this.
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neil: at the top of the hour, welcome back to fox business network. i'm neil cavuto. we are getting word the
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president is set to formally veto that measure from the senate and the house that expressed by lopsided margins they don't think there's an emergency at the border, they don't think it was the right thing to do. some, including a dozen republicans in the senate. but the president now is going to make his move and formally veto that. we are expecting around 3:30 p.m. we don't know whether or not it will be a public event. we do know he's confident he has the votes to avoid an override in congress. let's go to the republican new york congressman who supports what the president is doing. >> great to be with you, neil. neil: the president is going to fight fire with fire. he's convinced he's on the right side on this. you agree with that? >> i agree there is a crisis at the border and he's using his emergency action to deal with that. what i don't agree with is the institutional problem that we have by delegating this
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authority to the president in really an unchecked manner, where congress doesn't have to weigh in on each and every one of these emergency declarations. i hope that will change as we go forward. neil: so he does this, i guess he can avoid an override for the time being. what are relations going to be like, you think, with republicans? >> well, obviously we come at these from the same point of view on our base ideology and philosophy so i don't think it will have long-term damaging impact but obviously this is something we wish to avoid, it was something i did not encourage the president to do in regards to pursuing emergency action, but reality is he has the authority, there is an emergency at the border, he took action and we should move forward on it to mitigate the crisis and the emergency going forward. neil: i understand what you are saying. a dozen or so republicans joined democrats to say he went too far. their argument is when it comes
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to issuing emergencies of any sort, declarations of any sort, be careful what you wish for because a democratic president will do the same. many argue the president could do that when it comes to daca and other issues. do you agree with that, that at least in that sense it's a slippery slope? >> i do. that's why i want to amend the national emergencies act. there's legislation, bipartisan legislation i authored in the house to do exactly that. regardless of the president in the future, that if there's a national emergency, the president is going to have to act but congress should have to go on record in each and every one of those situations and agree with the president in order for that emergency action to go forward in perpetuity. if we don't agree, then the president will take action but that comes to an end after 60 days under our proposed legislation. neil: speaking of legislation, i want to draeaddress the preside budget that has put aside $8.5 billion for more wall funding and the like.
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he's obviously eager and quite willing to pick a fight with democrats or whomever on this issue and make it a 2020 campaign issue. what do you think of that? >> i don't think it's about politics. i think the president is right because i do agree with him there's an emergency at the border, there's a crisis in the country when it comes to our ports of entry and keeping us safe. you just saw 27 million people could have been killed by the fentanyl that was just seized at the border recently. that is a direct threat to our fellow american citizens. that is a crisis, that is an emergency. so the border security measures need to be fulfilled and making sure we are keeping american citizens safe. neil: you know, i could switch gears a little bit. we are hearing some mixed messages out of the north koreans and ourselves about what went down in hanoi. we obviously know no deal was signed. now we are getting reports that the north koreans just might rev up their missile program. again, they referred to the gangster type of approach that
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the president's men and women, not so much the president himself, had in dealing, you know, with the north koreans, particularly secretary of state. they are angry at him. what do you make of that? >> well, hopefully the north koreans hear this message loud and clear. you do that, you leave us no option but to take care of this situation from a unilateral perspective of americans keeping the korean peninsula safe and keeping the american citizens safe from a nuclear weapon being detonated on american soil. i hope they don't go down that path. that's why when our president goes to hanoi, we should speak in one voice as democrats and republicans, we wish him success. let's negotiate this out so there's not a nuclear weapon that can be detonated on american soil issued by a north korean regime. neil: if the north koreans conduct one more test, any test, all bets off? >> they are playing with fire. i will just tell you, it is that serious. we cannot accept a nuclearized
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north korea regime that has the ability to deliver a missile to american soil. i want to be very clear where i stand on this. that would be an unacceptable situation and i would be a strong advocate to make sure that doesn't occur. neil: congressman, thank you for taking the time. we do appreciate it. >> good to be with you. neil: we are getting more updates on the multiple mosque shooting yesterday in new zealand. 49 people killed, dozens more injured. there are measures being taken around mosques in this country. we are keeping a very close eye on that. also keeping a close eye on facebook, having nothing to do with the brain drain we were talking about earlier, but everything to do with the video that purportedly showed that attack, how it got streamed on its services. with these technology companies, this goes from bad to worse. you look at facebook, youtube, twitter, they all had this
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video. some of them still do. >> yeah. it's terrible and you know, i would just encourage anybody who is watching your show now, don't watch the video. i have not watched it, but i have seen colleagues respond and they have watched it and this killer wants people to watch it. the killer wants to sow division where there is already sort of political fracturing in the united states and other western countries, so don't give him what he wants. we need to stay unified. take this opportunity to not develop an opinion about motives or anything else that the killer may have had. don't voice an opinion. just turn down the opportunity to watch this horrific video because it exploits the lives that are being lost, these precious muslim individuals who were in a house of worship trying to worship god to the best of their knowledge and ability and it's just a tragedy. neil: what i'm wondering is how it is these guys can't take it down. these sites can't take it down. >> they can take it down. they have the ability to take it down. it's just a matter of doing
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that. i saw that it was on youtube and youtube is owned by google and they talk about how there's different ways they can catch extremist content and violent content, then whenever they pick it up, they see that it is streaming, that they do take it down, but this video absolutely, if it's streaming anywhere, there's no reason for it to be online and all of these -- neil: believe me, i'm no tech expert so i will defer to you, but i'm told even when the company formally tries to take it, if you have taken that video or seen that video, and you send it to a friend or share it with someone, that's when it gets difficult. that's when it gets weird. the companies say they can't, again, i don't know if this is true, they can't control that. >> yeah. if it's privately owned, if you have already captured it in some way. that's a loophole that needs to be addressed. neil: it's happening on twitter and youtube. >> yeah. it's just a gigantic loophole that needs to be addressed.
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you have got to have personal responsibility in not watching this. this is bad, not to overstate it, but this is bad for your soul to watch something like this. don't watch it, don't share it, but we really do need to figure out what loopholes exist so these tech companies can cooperate with the government authorities to make sure because this really does create an environment that you can have copycats -- neil: no, no, you're right about that. but there's already a move afoot to say maybe we stop livestreaming all together. easier said than done, given the popularity of gaming and the like. just try that one on for size. what do you make of that? >> well, no, i don't think that that's necessarily the way to go. i think that there's been steps you can probably take before we get there. but certainly in the age in which everybody wants quick information and they like to have live videos and you see members of congress that are streaming live and using different content to be able to connect directly with their
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constituencie constituencies, so we are already moving in this direction. that creates opportunities to adapt the technology and also create new legal infrastructure so we can take care of this because you don't want to have copycats and i just feel for these families of these victims now who are having their last moments of life being watched and gawked at online and it just needs to be addressed. neil: rebeccah, thank you very much. if we find out any more on this we will pass it along. i mentioned secretary of state mike pompeo two minutes ago. obviously he has a very different take than the north koreans on whether things have collapsed between the two countries but he is addressing these global climate change protests. one is happening outside the coliseum in rome. they are going on in asia, they are going to be happening in the nation's capital. then they will pick up over the weekend. he says despite all the protests, there are far bigger threats. after this.
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when you look at the top five threats to this nation, where do you rank global warming? or climate change? >> i wouldn't put it in the top five. >> why? >> because i can count to five that gets tmore risk. i can give you a whole list of threats i think we can effect change on in a way that will really make a difference for the security of the american people. neil: secretary of state not convinced climate change is a top five worry to him. students protesting worldwide might beg to differ. they are arguing climate policies aren't going far enough to protect the environment. we have the independent womens for forum policy director and
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democratic strategist with us. the perception is on the part of the secretary of state there are bigger worries in this world. do you agree? >> that's all relative, i guess, but it shows to me how out of touch not only the secretary is but this administration and this president, because from day one, they have made climate change as if it's not an issue, some joke or some made-up hoax and we have seen statistics, we have heard from experts and we have seen from polls the american people flat out care about this issue. it is important. i know first-hand because we are dealing with it in a real way in south carolina from the thousand year flood we had to the storms we continue to have that impact people's lives. neil: liz, what do you think? >> i'm not sure what polling he's looking at, because i just looked at the latest gallup poll that finds the percentage of americans who think the environment is the number one problem facing the country is 3%. >> i never said it was the
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number one issue. i never said it was the number one issue. i never said it was the number one issue. i said it is an issue. >> secretary pompeo is absolutely right. it's not a top five issue. it's not a top ten issue. the problem is the kids who have been born into the greatest prosperity ever known to man have been indoctrinated into thinking the world is going to end in 12 years because of the weather. this is nothing new. there has been fearmongering for decades saying new york city would be under water. neil: the mayor is worried if something doesn't happen -- >> sounds like you disagree that climate change is real. you don't think climate change is real. neil: i don't want to get sidetracked. what i want is to get a sense, hadley, will this become a very big issue in 2020? what i think the secretary of state was trying to say is there are far bigger issues and they are worth discussing, for now this one is not. is he whistling past the environmental graveyard? what do you think?
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>> i think it's going to be only an issue for 2020 on the democratic side. it will be something that the left side of the aisle continues to push but unfortunately, the two parties and the two sides will talk past one another, even if we can determine that climate change is real, that it is man-made and there's something we can do about it, the biggest question remaining is what should we do about it and what trade-offs are involved. i think that's the policy discussion that needs to be taking place and it's unfortunate because this is a pattern that we have seen in public policies where conservatives might say the nature and scope of the problem is different from what the progressive party is suggesting and then progressives, of course, pivot and say you don't believe this is a problem at all. we can recognize that, we can be concerned about the environment without going to extreme policy solutions that unfortunately will raise energy costs on the backs of low income people. neil: if you don't mind, i would like to switch gears. this is courtesy of reuters, we are getting word the president is going to speak on national
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security and on the u.s. southern border at 3:30 p.m., at which time we do expect the president to formally veto that emergency measure slapdown he got from congress, particularly the united states senate, where 12 republican senators bolted from him. he is going to make the argument that first of all, i have enough votes to prevent this thing from getting overridden and he will make it a 2020 campaign issue. what do you think? >> he should. he made immigration his red meat issue in the 2016 election, and somehow or another, it worked to rouse up his base and get him elected with some help. i think he's going to do it again. i think that's smart for him. i'm so thankful that republicans in the senate have seen through the fog and they realize there will be life after trump and they are preparing for that, and they don't want to have this battle because the senate map looks better for democrats in 2020 than it did in 2016. neil: they are also concerned about the slippery slope of the nature of power they are giving this president will be the same
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one given presumably a democratic president. >> absolutely. neil: do you think that's a legitimate fear? the president has made it very clear he's not happy with those republicans so could there be some tempest in a teapot among just republicans? >> right. well, i think of course that's why you had republicans joining some democrats and saying wait a minute, if we go down this path, what is a president elizabeth warren hypothetically going to do with that power. that also shows how disingenuous it is for the democrats to say there's no emergency on the border, if they want actually to take this power president trump is taking in the future to use funds that have been -- >> the republicans voted no. >> the republicans don't think it's an emergency. neil: this is the president's first veto, he probably does have the votes to avoid it getting overridden, but is it your sense it's changed the debate and the context here? we have gone through better than two years here without him doing this. is this a preview of coming attractions? >> oh, i don't think so.
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i do think many of the republicans who voted with democrats on the senate resolution are not seeing this as something that will be a trend of disagreement with the president, this is something that again, like you said, a concern about executive overreach which i think is legitimate. we have got layers to this. whether or not you believe there's a crisis at the border, that's the worthy of a national emergency, that the president has the legal authority to declare a national emergency or that the president should have the authority, there is concern that maybe we should be looking to review other laws that delegate executive authority to the president even in the face of a lack of congressional action. so i think the disagreement isn't just along party lines and it isn't just about the immigration issue but there's multiple layers at work. neil: guys, i want to thank you for your patience with breaking news. i was just coming in as we were speaking. you all handled it very well. i do appreciate that. just to update you 20 minutes after the hour, in about two hours, the president of the united states is going to do something this one has not done
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since he's been president of the united states. he's going to veto a measure taken on the part of the senate and the house to declare an emergency at the southern border wrong and not proper and not the way to go. he is going to argue this is the way to go. that there is urgency at the border and there is an emergency at the border. he is going to explain that publicly. usually presidents veto something quietly and send it on back to the house. he is not. more after this. (bird chirping) lots to do, hope you fuelled up. sure did. that storm sure ripped through. yep, we gotta fix that fence and herd the cattle back in. let's get at it. (whistle) (dog barking) (♪)
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termites, we're on the move.24/7. roger.
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hey rick, all good? oh yeah, we're good. we're good. termites never stop trying to get in, we never stop working to keep them out. terminix. defenders of home. neil: all right. that crash of ethiopian airlines happened last sunday. we are five days into this, right. now we are just learning the airline's ceo is on the line saying the black boxes that were sent first to germany, then to france, they didn't want to go to the u.s., that it's going to take some days, some days. this could be beyond the
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one-week point before they even open these things up and get something from them. apparently there has been arguing and bibbickering among french authorities about the protocol to use once they start examining all of this. i don't know what that means or if there's any protocol at all to examining black boxes after a crash. they were hell-bent that the united states did not handle this. they wanted to make sure anyone but did. now it's in france's hands to do so. the french obviously seized on this quite rightly. they launched investigations if any french citizens were involved. i believe three french passengers were among the victims on this flight. right now, the back-and-forth ov has brought us to this point, almost a week after the crash, no one has been able to get to the bottom of those black boxes. meantime, focusing on developments closer to home, joe montana saying he worked with
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that college get you in at any cost ringleader, rick singer. not aware that they were part of any scheme here. we are aware this is a widening sort of hunt for those who were and how the schools involved could not have known. some of their coaches and athletic directors, in fact, did plead guilty, not directly to the schools themselves. let's get the read from former m.i.t. admissions officer, who says this is giving all admissions program, including those i would assume at the prestigious m.i.t. a black eye. very good to have you. thanks for coming. >> thank you for inviting me. neil: how do you police against something like this? apparently this rick singer orchestrated a lot of this and would guarantee to parents i can get your kid, i don't know if he included m.i.t., i know it's one of the gold schools he did look at. what do you think of what happened and could it have happened in --
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>> i think he's really done a terrible, terrible disservice to admissions. i think what he found was loopholes and weaknesses in a very complex system that's kind of broadcast around the country with athletic recruitment and exploited those loopholes and found weak individuals at each of those institutions and brought those people in with him, with the families and the children as well. i think what this has to do with, this is i think where most of the scrutiny is going to start coming in, is schools that utilize athletic slots so essentially a coach brings to an admissions officer a small number of students who are applying and says these are the kids that i want and the admissions officer trusts that coach to say you know, i vetted them, i know exactly how they will contribute to my program and brings those kids into the incoming freshman class. so we didn't have that at m.i.t. we don't have slots in our
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recruitment. we're very different but in the programs that have specific coach admissions officer interactions, i feel they were ripe for exploitation and we are just starting to see just how weak that system was overall. neil: you're right, in a lot of the cases that i have read about, that was what happened. a coach or athletic director would relay to the admissions committee i need a lacrosse or soccer player, this person is very good. do you think those areas should be tightened up, you find out that there's nothing being compromised here or what is this athletic director or coach basing it on, how would you know, what would you do? >> i think that's an excellent question. i feel it's a hard question to answer from the admissions officers' perspective. we trust coaches to be able to bring us validated athletes where through their lens, through their expertise, they have helped us to determine that this is an incoming student who's going to contribute significantly to the athletic
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program. so the truck broke down there with these coaches who essentially brought in fabricated, photoshopped completely fake prospective athletes and pulled the wool over the eyes of admissions officers. neil: do you think that now admissions offices all around the country look at photos much more closely? i think the acceptance rate is 5 out of every 100 who apply. how do you police that and as a man or woman, how are they to do that? >> for me the first step is a s trust. we work with some of the most spectacular coaches in our athletic director was, you know, just one of the most ethical people i have ever worked with. she ran a tight ship with coaches and we ran a tight ship
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as well in our office. one of the things i think is going to probably come out of this is much closer discussions with admissions officers and coaches to say well, you are bringing me the student but i need external validation that the student's going to be like who she says she is and who he says he is. i think as well, what's going to have to happen is that the athletics teams and admissions officers are just going to have to broadcast to the prospective students that you need to document everything. get like real photographs, put together the videos -- neil: they are still in a separate pool. i'm not trying to minimize that. those accepted into say m.i.t., obviously engineering smarts, math smarts, that's largely how most get in, based on that. but should there be a common standard that's pretty tough on everyone? >> so the ivy league uses a particular system like this for
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essentially a common standard with regard to academic index of the way they look at applicants and the way they vet applicants. i think across division 1, there are so many programs and the size of the programs and the number of staff that are involved in developing the athletic prospects, i think each school's going to have to kind of go in and establish, a, their own code of ethics here, b, the code of what's the best practice, and c, really work to try to repair some of the damage that's been done. neil: well put. thank you very, very much. >> thank you. neil: continuing to watch this. those who have been fairly or unfairly looped into this. it's not over. meantime, it's not over at tesla. they unveiled this midsize electric suv and the reaction from the markets is meh.
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for all the things that move you. ask your doctor about taltz. neil: tesla has a new suv model out and it's as if the
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collective auto world, the investment world, is saying no big deal, other companies are doing the exact same thing with that. robert gray has the very latest from l.a. robert? >> thanks so much. no big surprises and a lot of questions still remaining after the model y unveiling. ceo elon musk had tweeted out some of the details and we saw that come to fruition in the prototype as they are entering the lucrative and growing crossover suv segment, but the lower price point than their rival luxury makers, a selling point for tesla but big questions remaining. the first big issue, production. they didn't say where they are going to make it and of course, will he be able to deliver them on time for the fall 2020 release date. after all, musk says right now, he's had a lot of issues as we have well documented as he continues to focus on the model 3. >> -- extreme challenges with the model 3 production, we have to basically allocate all
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resources to model 3 production because otherwise we are going to die. like 2018 is probably felt like aging five years in one, honestly. it was really intense. >> another big concern, of course, cash flow and burn rate for tesla. even with $2500 model y deposits to help fund him, analysts see the need for tesla to borrow more money. they have half a billion dollar note coming due in november. moody's out with a note today saying tesla's creditworthiness facing meaningful pressure. they are already in junk status. lake avenue financial, analyst says he drives the model s but he's very concerned over closing the retail locations, many of them, musk waffling over that. no update on that sales strategy coming for the model y, so no clarity on that situation. more competition coming. during the model y unveiling, ford launching a salvo at tesla
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saying quote, hold your horses and in that tweet, an electrified mustang logo signaling the expected crossover suv on that platform. the question is how quickly can he get it to market before some others in the lower price crossover suv range get their own electric vehicles on the market. neil, back to you. neil: incredible. great reporting. robert gray in los angeles. as robert pointed out, it's not as if there's a shortage of other vendors, suppliers, auto companies pushing the electric thing that used to be largely the domain of elon musk and tesla. one tech analyst still says tesla still has an edge against some of these other guys. he joins us right now. john, given the fact that so many now including ford are looking in the case of a mustang electric version of that, should tesla be worried that it's fumbled while others have been building? >> i really don't think so. the reason why comes down to two
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or three main contributing factors here. i think the number one thing that the market largely is really not seeing right now when you look at tesla stock is that tesla has just overtaken themselves with their largest challenge ever and that's on manufacturing. now that that's behind us, behind tesla, one of the biggest sources of revenue in the next five years for tesla, in my opinion, based on my analysis, is going to be tesla transitioning from a largely manufacturing heavy company with, as we know, roughly 20% or so gross margin every quarter, to in the next five years, a company that is largely driven from a revenue perspective by a mobility as a service in terms of revenue source. that means tesla beginning to compete and in my opinion, overtake some of the companies like lyft and uber that as we all know, have grown substantially over the last few years. and the reason being is that
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tesla, now that their manufacturing woes are put behind them, tesla is one of the leading manufacturers of autonomous vehicles and tesla in the event last night, elon musk stated that they are going to be fully ready this year with complete end-to-end full self-driving. neil: do you believe that, though? i don't mean to besmirch the guy, but he said a lot of things and they haven't come to pass. reason why i mention it is that i was talking to a friend of mine who wanted to buy a tesla vehicle and he was actually asking me, i should have said i talked to john meyer, he was saying neil, do you think tesla will be around, i want to buy one of their cars but will they be around. i bet he's not alone. what do you think? >> you bring up a valid point. elon musk has had a pretty hit-or-miss track record with hitting timelines. that's why it's important for folks like you and i to take a look at the realities of where
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the hardware and software is today. so if you have a friend or you know someone who has a tesla, asking for a ride and the reality is if you are going on a highway, these vehicles are self-driving on highways with cars changing in front of you and -- neil: but it's not just the fact they are self-driving electric vehicles. you think on just the electric part, everyone from mercedes to volvo to bmw, obviously toyota has quite a few in its lineup, have this technology. you are upping it to the future being driverless cars but electric, right? >> i think it's actually both. i'm glad you brought that up. tesla as it relates to electric technology, they have also a massive head start in this with their proprietary battery technology as well as their proprietary giga factory where they are manufacturing these
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batteries. what's so interesting now that so much more the automotive market is adopting electric vehicles, i think what we are already seeing and what we will continue to see is many legacy players like ford, gm, chrysler, et cetera, begin to actually looks towards tesla to license their battery technology because it's simply so superior as far as range, reliability and really the life span, and ultimately, these legacy car manufacturers who have been really only focused on combustion engines, they are going to need superior battery technology or else no one's going to want to buy the cars if the range is going to be so low or the batteries are going to have to be replaced so often. that's one of tesla's biggest underrated strengths right now. there's really no one else in the entire world that has battery technology as superior as tesla. neil: maybe someone buys them outright, makes it easier. all right. john, thank you very, very much. good read of things. he should have talked to my buddy on this thing.
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a new digital tax that could make things even worse for facebook. talk about a creative way to raise money. we are talking millions and millions of dollars. after this. as the one who is always trapped beneath the duvet i'm begging you... take gas-x. your tossing and turning isn't restlessness, it's gas! gas-x relieves pressure, bloating and discomfort... fast! so we can all sleep easier tonight.
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neil: i don't know, if you can't beat them, tax them, i don't know if that applies here but
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there is a plan moving forward to tax the digital giants. it could expand. lauren simonetti has the details. lauren: the message being received is that america's big tech companies may have gotten too big for europe. austria are pressing ahead with this 3% tax on the ad revenue within its borders of tech giants including facebook, google, amazon as well as alibaba and others. austria had been wanting to do this for awhile but were waiting on the european union to see if the bloc as a whole could reach a wider agreement on a digital tax first. it did not, but some eu countries like austria and france have. earlier this month, paris announced a 3% tax on the french revenues of some 30 major tech companies, most from america. the u.s., not taking these new taxes lightly, warning it may file a complaint with the world trade organization.
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here's a quote from a u.s. treasury official. the whole theoretical basis of digital service taxes is ill-conceived and the effect is highly discriminatory but nonetheless, very popular in some european countries. so this is another headache for big tech companies. neil: they find ways to get revenue one way or another. no government ever tried to get a handle on the spending behind it. that is just me, lecturing. i will save you that. lauren simonetti. allan greenspan has a warning on spending on social security. stay with us. nah. not gonna happen.
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actuaries of the social insurance system say that in order for the actuarially solvent through the life of the programs, we would have to cut benefits by 25% right now and
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extending into the future. that is such a politically difficult problem. neil: all right. alan greenspan, former federal reserve chairman, talking with maria bartiromo about fixing social security and entitlement programs, which he says very few at this rate would be entitled if it continues losing money the way it has. what to do about it? cns news editor terry jeffrey with us now. good to have you back. what he's essentially saying is this can't continue. you can say that about a host of other big government programs and the way they're structured. but that with people living longer and fewer paying in who are younger, we've got a grenade on our hands. do you agree with that? >> he's absolutely right, neil. we have seen this coming for a long time. one way of looking at it is this. in 2017, according to the board of trustees of social security, there were only 2.8 people
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actually working and paying some social security payroll taxes for every single person getting benefits. so in practical terms, if you have a family where the mom and dad both work and they have a teenaged kid who goes out and works part-time in a fast food restaurant, there is some stranger somewhere whose entirety of his or her social security benefits are coming from the taxes that the three people in that family pay. and we are at a point now where all of the taxes that come in for social security are not enough to pay for the benefits going out. so we have to either take regular tax revenue or borrow money which is basically what the government is doing, to actually fund the social security -- neil: or we can start phasing in benefits later for those who live longer, all of that, grandfather that in. we have already done that to a degree, raising the retirement age over recent years. apparently that's still not enough. needs testing has come up, that was met with some resistance.
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the possibility of making it limitless, right now, the tax on which you have a fica payment due or whathave you. maybe all those could be considered. the president himself is not too keen on these ideas and doesn't want to scare older people, but should you present it to younger people as something that would sustain the program for them as well? >> well, i think you should. unfortunately, i think if you look at the politics of it, obviously every single person who has gone to work in their lifetime in this country has paid into social security and medicare, expecting when they reach retirement age to get a benefit. so the politics of cutting back on that benefit after people believe they paid into it is pretty dire. ironically, the republican party which ought to be the fiscally conservative party, if you look at the demographics, older people are more likely to vote republican and conservative than younger people. so the people who have the most interest, the retiring baby boom generation, who are the ones who are going to help make social security even more insolvent in
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the coming years, who are the most likely republican voters, are also the ones who are most likely to be hurt by an immediate reform. neil: you know, you could grandfather a lot of this in. i remember with the grace commission, remember that in the '80s with ronald reagan, came up with ideas to help social security, and he implemented a good many of them under the idea being that you could gradually raise the ages of people coming into the system, not so much for those already at that age, but that alone would do something but i remember at the time that was met with a great deal of resistance. it seemed to work, seemed to do the trick, seemed to add about 15 years shelf life to social security beyond what we were looking at then. how do you think the parties could address this that would be in a way not damaging anyone, make sure that everyone does get social security, it's a government promise program, it's not unfixable. >> it's not unfixable. they say that they would have to increase the payroll tax if they were going to make it solvent by
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2.78 points or as greenspan said, cut benefits 25%. neil: in other words, no cap on the income that would be taxed, that's another thing comes up a lot. >> right. i think the idea of phasing in reform so they are not hitting people right away, but that they actually work in making it more solvent, it needs to be done. personally, i believe that when you look at the fiscal situation of the united states, the next four years, even under trump's new budget, we're running trillion dollar plus deficits. the country, everybody knows, cannot sustain this. social security, medicare and medicaid are the main drivers of deficit spending and the debt. if we don't get it under control, we are going to have a much bigger catastrophe to deal with than simply people being upset about the reforms in social security. neil: i'm wondering they don't like the idea of that but i always think there's got to be a mutual feeling we are all going
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to address this together. a lot of people say i want the rich to pay this or the rich say i'm not going to pay anything for this because i have acquired a lot of income and wealth over my life. so nothing moves. but i think ross perot, one of the great services he did for our country was to remind people about the unsustainability of a lot of this. i think that's a smart argument that could work. >> yeah, personally what i would like to see, unfortunately i don't think it's politically realistic at this point, is a move to personal retirement accounts where people aren't giving their money to the government, they are actually investing it, they retire, they control that money. paul ryan had a great idea 15 years ago, jon sununu co-sponsored it in the senate. george bush wanted social security reform, not that kind of reform. when you look back, it's very sad we didn't get that. wish we did. neil: it's the third rail. anyone who thinks about it is throwing granny off a cliff. thank you very, very much.
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hope springs eternal. we will change this. we have the dow up 75 points. waiting for the president of the united states to do something. it's not been done yet, and that's veto a measure he's pretty confident he has the votes to prevent an override. charles payne right >> charles: good afternoon, everyone: coming up the markets in rally mode, capping off a solid week adding to the monster gains for 2019. i'm tell you i think we are in a midst at this very moment tea breakout that can lift the major indices to all-time highs. we will also take a look at the magic numbers and the stocks of the day coming up. one of them up more than 1,000% from the first time i mentioned it on fbn. and president trump promising his first veto any time now this after a dozen republicans joined with democrats to block his emergency declaration for border wall. the latest in a new string of conflicts between the white house and some on the republican side i

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